Group has strong liquidity position

The principles and aims of financial management presented in the 2007 Annual Report starting on page 38 are being pursued unchanged. The US dollar became the Groups most important currency in which debt is denominated in financial year 2008. Including hedging transactions, it accounted for approximately 71% of net debt at the reporting date. It increased primarily because debt denominated in euros declined after we received the repayment of purported state aid plus interest in July.

The effects of the current financial crisis are minimal for our financing requirements and refinancing options because our credit quality is highly rated and we currently have a strong liquidity position that will in fact improve further due to the traditionally very strong fourth quarter. However, in view of the deteriorating global economic environment and the impact this has had on the Group, Standard & Poor’s revised the outlook for our rating to negative on 27 October 2008. Moody’s placed our long-term rating under review at the end of October.

At the reporting date of 30 September, the Group had unsecured firm credit lines totalling around €3.7 billion, of which €245 million had been used. Average drawings on these lines stood at around 17.8% in the first nine months of 2008 (previous year: 1.5%). In addition, we have a short-term financing facility worth €1 billion in the form of the commercial paper programme launched at the start of the year. The average monthly amounts utilised under the programme amounted to up to €500 million in the reporting period.