Technologies · Systems · Solutions - Dürr

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Schenck Australia Pty. Ltd.
8. Currency translation
The ordinary shares acquired in the 2004 reporting period were taken over in a squeeze-out.
Carl Schenck AG and its subsidiaries are global leaders in the manufacture of systems and
plants for process control procedures, the automation of production processes and balancing
of revolving parts and assemblies.
As of October 29, 2004, Carl Schenck AG, Darmstadt, acquired a further 25% of the shares in
Schenck Australia Pty. Ltd., North Ryde (Australia), for a purchase price of € 13,629 thousand,
giving rise to goodwill of € 11,596 thousand. In the 2004 reporting period, € 2,029 thousand of
the purchase price was paid in cash; the outstanding purchase price is recorded under other
provisions of € 9,800 thousand or under other liabilities at an amount of € 1,800 thousand, as the
final purchase price depends on the continuing development of the company. As a result, Dürr
held 100% of the shares in Schenck Australia Pty. Ltd. as of December 31, 2004.
The purpose of the company is both the sale and maintenance of products in the area of oscillating
conveyors/oscillating sieves.
In the 2004 reporting period, five companies were no longer included as they had been merged
with other subsidiaries. Overall, the changes in the consolidated Group are immaterial for the
net assets, financial situation and results of operations of the Group. A full list of the Group’s
equity investments is filed with the commercial register at Stuttgart district court (HRB 13677).
Financial statements denominated in the foreign currency of the subsidiaries included in the con-
solidation are translated into euros on the basis of the functional currency concept pursuant to
IAS 21 (The Effects of Changes in Foreign Exchange Rates). The functional currency is the local
currency for all foreign subsidiaries of the Group, since these companies operate independently
from a financial, economic and organizational viewpoint. Accordingly, assets and liabilities are
thus translated at the exchange rate as of the balance sheet date, while income and expenses are
generally translated at average annual rates. Any currency translation differences are recorded
without effect on income in the other comprehensive income within equity (see the consolidated
statements of equity).
In the individual financial statements of Dürr AG and its subsidiaries, receivables and liabilities
in foreign currency are valued at purchase cost. Any exchange rate gains and losses are included
in the income statement under other operating income and other operating expenses. In the
2004 reporting period, currency translation differences resulted in gains of € 15,820 thousand
(2003: € 10,003 thousand) and losses of € 15,591 thousand (2003: € 7,524 thousand).
The following main exchange rates are decisive for currency translation in the Group (equal to € 1):
Closing rate Average rate
Dec. 31, 2004 Dec. 31, 2003 2004 2003
US dollar 1.3640 1.2499 1.2456 1.1410
Pound sterling 0.7071 0.7039 0.6797 0.6928
Australian dollar 1.7489 1.6746 1.6927 1.7381
Canadian dollar 1.6430 1.6384 1.6157 1.5873
Brazilian real 3.6206 3.6094 3.6016 3.4406
Renminbi yuan 11.2891 10.1807 10.1563 9.2906
Korean won 1,412.29 1,500.00 1,406.02 1,362.50
Polish zloty 4.0877 4.6854 4.5168 4.4437