Currency translation

In the accounts of individual companies, foreign currency receivables and liabilities are translated at the exchange rates as of the balance sheet date. Currency translation differences amounting to -3.2 million Euro (2002: 4.5 million Euro) are shown in the income statement.

The restatement of financial statements in accordance with IAS 29 was not necessary as the Group has no major subsidiaries located in hyperinflationary economies.

In the consolidated financial statements, the financial statements of all companies not located in the Eurozone are translated in accordance with the following principles:

• Balance sheet items are translated at the middle rate as of the balance sheet date.
• Income statement items are translated at average annual exchange rates.
• Differences arising from the use of different exchange rates for the balance sheet and the income statement are recognized with no effect on net income.

Differences arising from the translation of net assets at exchange rates differing from those effective at the end of the previous year are set off against equity capital without any effect on net income.

The exchange rates of major currencies used for currency conversion developed as follows:

Differences arising from the use of different exchange rates compared with the previous year are shown in the “Statement of Changes in Fixed Assets” with respect to fixed assets and in the “Development of Partners' Equity” with respect to equity.