6 Property, plant and equipment and financial assets

The development of fixed assets in 2003 summarised in the balance sheet is shown in the Statement of Fixed Assets Movements.

In the 2003 fiscal year, 6 companies relating mainly to the core business, residential real estate, as well as the additional business, project development, were consolidated for the first time. These were newly established companies or companies which either started up or extended their business operations in 2003. Successive acquisitions of shares in a company in the amount of € 49.9 million were made exclusively in cash as were the acquisitions in 2002 (€ 312.2 million). In all cases they were accounted for using the purchase method. Goodwill was not acquired in any of these transactions.

In 2003 impairments of € 32.5 million (2002: € 6.7 million) were recorded. They relate to the balance-sheet items “Land and land rights including commercial and other buildings” (€ 26.1 million), “Land and land rights including residential buildings” (€ 4.0 million) as well as “Land and land rights excluding buildings (€ 2.4 million), whose market values were less than their carrying values. The market values were determined using the discounted cash flow method. Furthermore, an impairment of € 3.6 million was recorded on one company shown under Other investments.

All assets for which an impairment was recorded are classified as assets to be held and used. The impairments are mainly recorded in Cost of sales in the income statements.

As of December 31, 2003, future revenue from non-cancellable operating leases was due as follows:

	2004	2005	2006	2007	2008	ab 2009

	€ million	€ million	€ million	€ million	€ million	€ million

Future leasing receipts	36.7	33.4	33.6	33.6	33.6	38.7

The net book values of all leased assets (cancellable and non-cancellable operating leases) amount to € 4,642.4 million compared to € 4,955.8 million in 2002. The corresponding gross book values as at December 31, 2003 are € 7,487.2 million (2002: € 7,819.1 million).