Que el Señor le conceda misericordia en aquel día.

As in 2011, Drägerwerk AG & Co. KGaA prepared its Group financial statements for fiscal year 2012 in accordance with International Financial Reporting Standards (IFRS) promulgated by the International Accounting Standards Boards (IASB) and the inter- pretations of the International Financial Reporting Interpretations Committee (IFRIC). Drägerwerk AG & Co. KGaA applied all the IASs/IFRSs adopted by the IASB as of Dec- ember 31, 2012 to its 2012 Group financial statements, provided that these standards were endorsed by the European Commission and published in the Official Journal of the European Union by the date of publication of the Group financial statements and that app- lication of such standards is mandatory for fiscal year 2012.

Dräger has applied the following revised standards issued by the IASB for the first time in fiscal year 2012:

– In line with the amendment to IFRS 7 “Disclosures – Transfers of Financial Assets (issued 2010)”, additional disclosures are required for the transfer of financial assets that were not derecognized and for the transfer of financial assets in which the trans- ferring entity retains a continuing interest.

The following amendments of existing standards, which have already been endorsed and which become effective for fiscal years beginning on or after July 1, 2012, were not applied to these financial statements:

– The amendments to IFRS 1 “First-time Adoption of IFRS (issued December 2010)” include two adaptations. The removal of fixed application dates for first-time adopters and also regulations for preparing IFRS financial statements after reporting periods during which it was impossible to prepare fully IFRS-compliant financial statements due to hyperinflation.

– The amendments to IAS 12 “Income Taxes (issued December 2010)” include an excep- tion for the recognition of deferred tax on investment properties.

– Due to amendments to IAS 1 “Presentation of Items of Other Comprehensive Income (issued June 2011)”, the individual other comprehensive income items are to be divided into amounts that can be reclassified to the income statement and those that do not

138

require reclassification in the future. Income taxes pertaining to these items are also to be divided correspondingly. These changes must be applied for fiscal years starting on or after July 1, 2012 and will result in an extended breakdown of other comprehensive income.

– The amendments to IAS 19 “Employee Benefits (issued June 2011)” pertain to the abo- lition of the corridor approach and consequently the statutory recognition of actuarial gains and losses in other comprehensive income. In addition, the expected return on plan assets and the interest expense on pension obligations are replaced by a standardized net interest component. In the future, total past service costs will have to be recognized in the period of the related plan amendment. Furthermore, the requirements for ter- mination benefits are being amended with regard to the definition as well as the date on which the associated liability is recognized, and the obligations to disclose infor- mation and explanations are being amended and increased. These changes must be applied for fiscal years starting on or after January 1, 2013. Earlier application is per- mitted. Dräger will apply these changes starting with fiscal year 2013. These changes will likely result in a EUR 587 thousand decrease interest income from plan assets in the Group financial statements 2013.

– The amendments to IAS 32 “Financial Instruments – Presentation (issued December 2011)” pertain to the netting of financial assets and liabilities. This is not expected to have a material impact on Dräger’s Group financial statements, although this is still being assessed by management.

– The disclosures in the notes regarding the netting of financial assets and liabilities are dealt with by the amendments to IFRS 7 “Financial Instruments – Disclosures (issued December 2011)”.

– IFRS 10 “Consolidated financial statements (issued May 2011)” focuses on the intro- duction of a standardized consolidation model for all companies, which is based on the parent company controlling the subsidiary. The amendment also includes special purpose entities, the consolidation of which had previously been governed by SIC-12. A material impact on Dräger’s Group financial statements is still being assessed by management.

– The new IFRS 11 “Joint Arrangements (issued May 2011)” states that a company must disclose the contractual rights and obligations arising from the joint agreement. According to the amended definitions, there are now two types of joint arrangements: joint activities and joint ventures. Joint ventures are no longer permitted to choose whether to apply proportionate consolidation; equity method must be used at all times. This is not expected to have a material impact on Dräger’s Group financial state- ments, although this is still being assessed by management.

– IFRS 12 “Disclosures of Interests in other Entities (issued May 2011)” combines the disclosure obligations of IAS 27/IFRS 10, IAS 31/IFRS 11 and IAS 28. This is not expected to have a material impact on Dräger’s Group financial statements, although this is still being assessed by management.

– IFRS 13 “Fair Value Measurement (issued May 2011)” aims at improving measurement continuity and reducing complexity. It describes how to define fair value, how to determine the measurement method and which disclosures must be made. The scope of application of measurement at fair value is not expanded; the standard explains noTes of The dräger group for 2012

– IAS 28 “Associates and Joint Ventures (issued May 2011)” explains how to recognize the equity of joint ventures and associates using the equity method, which must be applied in the future.

– IFRIC 20 “Stripping Costs in the Production Phase of a Surface Mine (issued October 2012)” clarifies when costs for the disposal of mine spoils have to be initially reported as assets and how these assets have to be recognized at first-time application and there- after.

Further standards were published, which become effective for fiscal years starting on or after January 1, 2013 and which have not been endorsed yet:

– Improvements to and clarifications on accounting questions relating to IFRS 1, IAS 1, IAS 16, IAS 32 and IAS 34 were published in line with the “Improvements to IFRS 2009-2011 (issued May 2012)”.

– The amendment to IFRS 1 “Government Loans (issued March 2012)” stipulates how IFRS first-time adopters must recognize a public loan, which is issued with an interest rate below the market rate, at the time of transitioning to IFRS. This amendment provides IFRS 1 with the same relief for first-time adopters as IAS 20 “Accounting for Government Grants and Disclosure of Government Assistance”. As Dräger is no IFRS first-time adopter, this will not impact Dräger’s Group financial statements.

– In June 2012, amendments to IFRS 10, IFRS 11 and IFRS 12, which had been pub- lished but not yet adopted in EU law, came into effect. They clearly stipulate the transi- tioning rules in IFRS 10 and the requirement to adapt comparative information pur- suant to IFRS 10, IFRS 11 and IFRS 12 to the most recent comparable period. In addi- tion, comparative information on unconsolidated structured units in periods prior to the first-time application of IFRS 12 does not need to be provided. This is not expected to have a material impact on Dräger’s Group financial statements.

– Additional amendments to IFRS 10, IFRS 12 and IAS 27 were published in October 2012 and redefine the consolidation provisions for investment companies. As a result, invest- ment companies are classed as an independent company type that may be ex empted from the consolidation provisions stipulated under IFRS 10 Consolidated Financial State- ments. Instead, investment companies are required to measure their investments at fair value. This is not expected to have a material impact on Dräger’s Group financial statements.

– IFRS 9 “Financial Instruments (issued November 2009, amended December 2011)” deals with the classification, recognition and measurement of financial assets and lia- bilities. This standard replaces the sections of IAS 39 that describe the classification and measurement of financial instruments. According to IFRS 9, financial assets are now only classified into two measurement categories: at fair value and at amortized

140

cost. Most of the regulations regarding financial assets in IAS 39 still apply. The man- agement is currently evaluating the effects of these amendments on Dräger’s Group financial statements.

The provisions of Art. 4 EC Regulation No. 1606/2002 of the European Parliament in conjunction with Sec. 315a (1) HGB (Handelsgesetzbuch – German Commercial Code) governing a company’s exemption from its obligation to prepare group financial state- ments in accordance with German commercial law have been met. To ensure that the Group financial statements are equivalent to consolidated financial statements pre- pared in accordance with the German Commercial Code, all disclosures and explanations required by German commercial law above and beyond the provisions of the IFRSs have been provided in accordance with Sec. 315a (1) HGB.

The Group financial statements were prepared in euros. Unless stated otherwise, all figures were disclosed in thousands of euros (EUR thousand); rounding differences may arise as a result. The balance sheet is classified according to the current/non-current distinction; the income statement was prepared according to the cost of sales method. Where certain items of the financial statements have been grouped with a view to enhanc- ing the transparency of presentation, they are disclosed separately in the notes. The single entity financial statements of the companies included in consolidation were pre- pared as of the balance sheet date of the Group financial statements on the basis of uni- form accounting policies. This did not apply to one (2011: two) minor companies with a different calendar year, for which the financial statements would be carried forward to the Group reporting date in the event of a material development.

3 ameNDmeNts to BalaNce sheet reportiNg as agaiNst the preVious year’s fiNaNcial statemeNts

Drägerwerk AG & Co. KGaA has amended the way in which three forms of data are report- ed in the balance sheet. The amendments do not impact the statement of comprehen- sive income or earnings per share.

– From the current fiscal year, Dräger reported equipment leased out under property, plant and equipment, rather than separately under other non-current assets. The pre- vious year’s reporting was adjusted accordingly.

– IAS 12 “Income Taxes” does not differentiate between actual income tax provisions and income tax liabilities. In order to adjust the balance sheet to the preferred prevail- ing accounting practices, Drägerwerk AG & Co. KGaA included the previously sepa- rately recognized income tax provisions in income tax liabilities and the previous year’s reporting was adjusted accordingly. The amount of information contained in the bal- ance sheet was also increased, as “liabilities” previously referred to both liabilities and provisions in accounting terminology.

– Other liabilities to employees and for social security are non-financial liabilities. They were therefore reclassified from other current financial liabilities to other current lia- bilities. The previous year’s reporting was adjusted accordingly.

€ thousand December 31, 2012 December 31, 2011 January 1, 2011

Property, plant and equipment 11,651 10,058 9,262

Other non-current assets (11,651) (10,058) (9,262)

Non-current assets 0 0 0

Non-current income tax provisions (2,317) (562) 0

Non-current income tax liabilities 2,317 562 0

Non-current liabilities 0 0 0

Current income tax provisions (42,113) (39,876) (41,584)

Current income tax liabilities 42,113 39,876 41,584

Other current financial liabilities (41,299) (33,602) (31,483)

Other current liabilities 41,299 33,602 31,483

Current liabilities 0 0 0