Transactions in foreign currencies are recognised at consolidated companies at the spot rate applicable at the time of the transaction. Monetary assets and liabilities stated in a foreign currency are translated at each balance sheet date at the rate valid on the balance sheet date. Non-monetary items measured at historic cost in a foreign currency are translated at the rate valid on the date of the transaction. Non-monetary items measured at fair value in a foreign currency are translated at the rate valid upon the fair value being determined. Any resultant exchange rate gains and losses are recognised directly through profit or loss as other operating income or other operating expenses.

The annual financial statements of foreign group companies are translated into euros (the reporting currency of the Group) in accordance with the functional currency concept. This involves the respective national currency at all companies thereby affected in view of the fact that they conduct their business in their national currencies as independent foreign entities within the Group in financial, economic and organisational terms. Modified reporting date rates are used to translate the financial statements of foreign companies. This involves assets and liabilities being translated from their national currencies into euros at the mean exchange rate valid on the balance sheet date (reporting date rate). Income and expense items are translated using annual average exchange rates. Currency differences resulting from the translation of the equity of the foreign companies or from the application of differing translation rates for the balance sheet and the income statement are recognised directly in equity as retained earnings (differential amount from currency translation).

Currency translation has been based on the following exchange rates:

Due to the disposal of the Polish subgroup in the previous financial year, the relevant reporting date rates have been omitted. The exchange rate upon the disposal of the Polish subgroup amounted to 3.206 (Euro / PLN). The average rate for the 2007/08 financial year was calculated up to the date of deconsolidation.