DAIH, Latin America
In fiscal 2001, our share in the loss of DAIH was EUR 296 million, compared to our share in the loss of DAIH of EUR 5
million in fiscal 2000, primarily as a result of a loss at Disco caused by the decreasing value of the Argentine Peso. The
devaluation of the Argentine Peso also caused losses on Disco loans denominated in US dollars. In addition, the loss was
also a result of the write-off of minority interests in the results of DAIH of EUR 22 million and a correction in deferred
taxes of EUR 13 million. The fiscal 2001 operating income of Disco were negatively affected by the economic crisis and
political instability in Argentina. In fiscal 2001, Disco was able to control its operating expenses, but its net sales and
gross profit decreased compared to fiscal 2000. Santa Isabel improved its net sales and gross profit in fiscal 2001
compared to fiscal 2000, but its operating expenses were higher than in the prior fiscal year. Operating income for
Santa Isabel in fiscal 2001 increased compared to fiscal 2000.
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