The Board of Management is responsible for Group reporting.

The annual consolidated financial statements as well as the interim consolidated financial statements (quarterly financial statements) were prepared in accordance with Generally Accepted Accounting Principles in the United States of America (US-GAAP) until the year 2006. Since 2007 the International Financial Reporting Standards (IFRS) have been applied.

The consolidated financial statements for both annual and interim periods include the financial statements of the company and all of its material, majority-owned subsidiaries. Intercompany transactions and balances subsidiaries relating to these majority-owned entities are eliminated. Significant investments in which the company has 20% to 50% of the voting rights or the ability to exercise significant influence over the operating and financial policies of the investee (associated companies) are accounted for using the equity method.

For corporate law purposes, the Annual Financial Statements are also prepared according to the regulations of the German Commercial Code, which in turn form the basis for taxation. In compliance with the requirements of the German Commercial Code, the Annual Financial Statements of the company provide a true and fair overview of the net assets, financial position and earnings situation of the company in accordance with generally accepted accounting principles.

Adequate consideration is taken of risks. The company has developed and implemented effective control and management systems for early recognition of potential risks and for the evaluation and correct handling of existing risks. This risk management forms an integral component of the entire planning, controlling and reporting process and aims at the systematic identification, assessment, control and documentation of risks. With reference to predefined risk categories, risks arising from management of the divisions and business units are identified and evaluated with regard to the probability of occurrence and the possible level of damage. Management regulates the reporting of relevant risks by means of specified threshold values. Measures to avoid, reduce and protect against risks are developed and implemented in the course of risk management. Risks are continually monitored within the framework of a risk monitoring system.

The aim of the risk management system at the Groupis to enable company management to recognize significant risks at an early stage and then take appropriate action. Observance of the uniform Group guidelines, as defined in the company's Risk Management Manual, is checked by internal auditing. In addition, external auditors monitor the risk early warning system integrated into the risk management system for its fundamental suitability for early recognition of developments that could jeopardize the continued existence of the enterprise.

The Consolidated Financial Statements are prepared by the Board of Management and examined by the auditor and the Supervisory Board. The Consolidated Financial Statements are made publicly accessible within 90 days of the end of the financial year, which in the case of the company corresponds to the calendar year. For the purpose of greater clarity, the Annual Report is also published in an interactive form on the Internet. Interim reports are also made publicly accessible within 45 days of the end of the reporting period.

The Consolidated Financial Statements contain detailed information on stock option programs and similar securities-based incentive systems at the enterprise.

The company publishes a list of third party companies in which it has a financial interest that is not of subordinate importance to the Group.

Notes on relationships with shareholders considered to be “related parties” pursuant to the applicable accounting regulations are provided in the Consolidated Financial Statements.