Estimating operating taxes based on charts below:

• What is the operating tax rate?
• What is the after-tax operating profit?( Apply the operating tax rate to operating profit to determine after-tax operating profit.)

-Determine the marginal tax rate.

- Determine statutory taxes on EBITA. (This will differ from the estimated tax charge. The

estimated tax charge uses earnings before taxes as its base.)

• Segment the remaining tax items into operating taxes related to current, ongoing core operations and nonoperating taxes.
• Evaluate whether or not a component is ongoing and related to core operations is subjective.
• Comment on why you have classified each component a particular way.

Other operating income (in million euros) 2008 2009

Gains on disposal of non-current assets 14 10 Profits on sale of businesses 8 - Income from release of provisions 44 38 Income from release of valuation allowances for doubtful debts 6 2 Write-ups of non-current assets - 3 Sundry operating income 88 87 Total 160 140

Other operating charges (in million euros) 2008 2009 Write-downs of miscellaneous assets 4 - Losses on disposal of non-current assets 17 22 Goodwill impairment losses - 46 Sundry operating expenses 54 97 Total 75 165

Earnings before taxes on income and analysis of taxes

in million euros 2008 2009 Earnings before tax 1,627 885 Current taxes 570 239 Deferred taxes -176 18 Taxes on income 394 257

Main components of tax expense and income

in million euros 2008 2009 Current tax expense / income in the reporting year 583 259 Current tax adjustments for prior years -13 - 20 Deferred tax expense / income from temporary differences -144 47 Deferred tax expense / income from changes in tax rates 5 3 Increase / decrease in valuation allowances on deferred tax assets 8 -13