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260 Notes to Consolidated Financial Statements

(in millions of €, except where otherwise stated and per share amounts)

The weighted-average assumptions used for determining the NPBC for the ﬁ scal

years ended September 30, 2008, 2007 and 2006 are shown in the following table:

The discount rate assumptions reﬂ ect the rates available on high-quality,

ﬁ xed-income investments of appropriate duration at the balance sheet date. The

expected return on plan assets is determined on a uniform basis, considering long-

term historical returns, asset allocation, and future estimates of long-term invest-

ment returns. For ﬁ scal 2007, the Company decreased the assumption for the

expected return on plan assets for the majority of its principal pension plans due

to changes in asset allocation and revised future estimates of long-term invest-

ment returns. For ﬁ scal 2008 the expected return on plan assets remained primar-

ily unchanged. As of September 30, 2007, the assumed retirement ages for the par-

ticipants of the domestic pension plans were increased with regard to increased

retirement ages in the German State Pension Insurance. Other actuarial assump-

tions not shown in the tables above, such as employee turnover, mortality, disabil-

ity, etc., remained primarily unchanged as of September 30, 2007.

Experience adjustments, which result from differences between the actuarial

assumptions and the actual occurrence, did not affect the DBO in ﬁ scal 2007 and

ﬁ scal 2006.

Year ending September 30, 2008 Year ended September 30, 2007 Year ended September 30, 2006

Total Domestic Foreign Total Domestic Foreign Total Domestic Foreign

Discount rate 5.3% 5.1% 5.6% 4.7% 4.5% 5.0% 4.6% 4.35% 5.1%

Germany 5.1% 4.5% 4.35%

U.S. 6.29% 5.95% 5.7%

U.K. 6.0% 5.0% 5.0%

Expected return on plan assets 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.7% 6.7% 6.7%

Germany 6.5% 6.5% 6.7%

U.S. 6.97% 6.95% 6.95%

U.K. 6.7% 6.7% 6.75%

Rate of compensation increase 2.7% 2.25% 3.5% 2.7% 2.25% 3.4% 2.6% 2.25% 3.3%

Germany 2.25% 2.25% 2.25%

U.S. 3.96% 3.95% 3.25%

U.K. 4.0% 3.7% 3.9%

Rate of pension progression 1.6% 1.5% 2.0% 1.2% 1.0% 1.8% 1.3% 1.0% 2.1%

Germany 1.5% 1.0% 1.0%

U.K. 3.1% 2.8% 2.8%