2.b.        Translation of foreign companies’ financial statements into euro

The translation into euro of the financial statements of foreign subsidiaries not belonging to the single currency, none of which has an economy subject to hyperinflation according to the definition given in IAS 29, is carried out at the year-end exchange rate for the balance sheet and at the period average exchange rate for the income statement. Any exchange rate differences resulting from the translation of shareholders’ equity at the year-end exchange rate and from the translation of the income statement at the average rate for the period are recorded in the item “Other reserves” under shareholders’ equity.

The main exchange rates used are the following: