1 PFLEIDERER AG NINE-MONTH FINANCIAL REPORT 2007

Explanatory Notes on the Report
on the First Nine Months Ended September 30,
2007
1. Basis of preparation
The condensed interim consolidated financial statements of Pfleiderer AG as of September 30, 2007,
have been prepared on the basis of IAS 34, Interim Financial Reporting, as required by International
Financial Reporting Standards (IFRSs) and the related Interpretations of the International Accounting
Standards Board (IASB) as adopted by the EU in accordance with Regulation (EC) No. 1606/2002 of
the European Parliament and of the Council on the application of international accounting standards.
The interim financial statements do not contain all the explanatory notes and disclosures required for
year-end financial statements and should therefore be read in conjunction with the consolidated
financial statements for the year ended December 31, 2006 (www.pfleiderer.com).
The requirements of the Standards applied have been complied with in full and result in the
presentation of a true and fair view of the net assets, financial position and results of operations of
the Pfleiderer Group.
2. Summary of significant accounting policies
The accounting and measurement, as well as the explanatory notes and disclosures, are based on
the same accounting policies applied in the 2006 consolidated financial statements. For information
on accounting policies other than those presented in the following, please refer to the consolidated
financial statements for the year ended December 31, 2006.
Prior-year comparative figures
To enhance comparability, the prior-year comparative figures relating to discontinued operations in
the statement of income, the segment reporting, and the statement of cash flows were reclassified in
accordance with IFRS 5. Such prior-year comparative figures were not reclassified in the balance
sheet in accordance with IFRS 5.40. Operations already disposed of and deconsolidated during the
reporting period are presented as discontinued operations in the prior-year statement of income.
Basis of consolidation
The interim financial statements include the financial statements of Pfleiderer AG and its majorityowned
and controlled subsidiaries as of September 30, 2007. All significant subsidiaries that are
controlled directly or indirectly by the Company are included in the interim consolidated financial
statements.
24 PFLEIDERER AG NINE-MONTH FINANCIAL REPORT 2007