Exchange rate effects

The translation of items in the local financial statements of our subsidiaries results in exchange rate effects to be taken into account in interpreting the income statement. The income statement items are translated at annual average exchange rates based on ECB fixings. Exchange rate movements partly offset each other in 2006, and the effects on income and expense items largely offset each other at the level of results. On balance, the negative exchange rate effect at the level of profit before tax including hedging costs was only € 6 m.