Download IFRS Financial Statements 2006 - Marquard & Bahls AG

*)
M arquard & Bahls AG 2006
I F R S F i n a n c i a l S t a t e m e n t s
7 5 . 0 0 0
2.352.3591 . 6 5 2 .
7 . 0 70 4 0
7 5 . 4 16 4. 6 5 1 45 20
. 34 . 64 45 6
1 5 0 . 2 4 6 1 . 6 5 2 . 0 4 0

*)
IFRS Financial Statements 2006
C o n t e n t s
03 , C o n s o l i d a t e d S t a t e m e n t o f I n c o m e
04 , C o n s o l i d a t e d B a l a n c e S h e e t
06 , C h a n g e s i n S t o c k h o l d e r s´
08 E q u i t y
, C o n s o l i d a t e d S t a t e m e n t s o f C a s h F l o w s
09 , N o t e s t o t h e I F R S C o n s o l i d a t e d
F i n a n c i a l S t a t e m e n t s 2 0 0 6
27 , C o m m e n t a r y o n t h e C o n s o l i d a t e d I n c o m e
S t a t e m e n t
34 , C o m m e n t a r y o n t h e C o n s o l i d a t e d
I n c o m e B a l a n c e S h e e t
* Marquard & Bahls AG , Holding
)
page 02_03

*)
Marquard & Bah ls AG
I F R S- C o n s o l i d a t e d S t a t e m e n t o f I n c o m e fo r t h e P e r i o d J a n. 1 – D e c. 3 1 , 2 0 0 6
( K) N o t e s
2 0 0 6
2 0 0 5
1. * Revenues (8 ) 11,803,172
* less Petroleum-tax-settlement (8 ) –969,144 10,834,028 8,510,279
2. * Own work capitalized 4,682 2,600
3. * Other operating income (9 ) 79,993 37,037
4. * Cost of sales (1 0 )
a) Cost of raw materials and supplies
and purchased goods –10,205,979
b) Cost of purchased services –91,712 –10,297,691 –8,086,839
5. * Personnel expenses (1 1 )
a) Wages and salaries –130,060
b) Social Security –18,936
c) Social benefits (defined contribution plans) –3,729
d) Social benefits (defined benefit plans) –2,636 –155,361 –131,595
6. * Amortization and depreciation on intangible and
tangible fixed assets –74,361 –68,961
7. * Other operating expenses (1 2 ) –178,187 –149,989
R e s u lt f r o m o p e r a t i o n s 213,103 112,532
8. * Income from investments in subsidiaries 171 146
9. * Income from securities and financial assets 813 278
10. * Interest income and similar income 5,850 4,804
11. * Depreciation on financial assets and marketable
securities –259 –54
12. * Interest expenses and similar expenses –44,560 –37,596
13. * Result from equity valuation 2,689 3,089
14. * Gain/loss on revaluation of hedged foreign currency loans 1,132 838
15. * Result from changes in value of financial instruments 2,315 –1,220
F i n a n c i a l i n c o m e (1 3 ) –31,849 –29,715
N e t i n c o m e f r o m o p e r a t i o n s b e f o r e
i n c o m e t a x 181,254 82,817
16. * Income tax (1 4 ) –31,008 –21,681
C o n s o l i d a t e d n e t i n c o m e 150,246 61,136
* thereof:
* Profit attributable to equity holders of the parent 133,597 51,525
* Profit attributable to minority interest 16,649 9,611

*)
M arquard & Bah ls AG
I F R S - C o n s o l i d a t e d B a l a n c e S h e e t a s o f D e c e m b e r 3 1 , 2 0 0 6
A s s e t s ( K)
N o t e s
D e c. 3 1 , 2 0 0 6
D e c. 3 1 , 2 0 0 5
A . N o n - c u r r e n t a s s e t s
I. * Intangible assets (1 6 ) 21,758 25,472
II. * Tangible assets (17 ) 982,745 918,993
III. * Investments accounted for using the equity method (1 8 ) 18,861 18,700
IV. * Other investments (1 8 ) 26,771 11,985
V. * Deferred taxes (1 4 ) 18,935 17,521
VI. * Other non-current assets and receivables (1 9 ) 42,735 23,442
tota l n o n - c u r r e n t a s s e t s 1,111,805 1,016,113
B . C u r r e n t a s s e t s
I. * Inventories (2 0 )
1. * Inventories, raw material and supplies 4,951 4,405
2. * Inventories, goods and finished products 452,518 432,012
3. * Advance payments 492 4,004
457,961 440,421
II. * Current receivables and other assets (2 1 )
1. * Trade receivables 536,728 624,530
2. * Receivables – affiliated companies 1,440 1,236
3. * Receivables – associated companies 3,710 3,023
4. * Receivables owed by related companies 9 0
5. * Current tax assets 24,298 22,165
6. * Other receivables and current assets 27,824 29,164
7. * Construction contracts 8,596 5,678
602,605 685,796
III. * Derivative financial instruments (2 2 ) 104,524 22,450
IV. * Treasury stock (2 3 ) 2,554 2,554
V. * Cash and cash equivalents (2 4 ) 72,910 86,181
tota l c u r r e n t a s s e t s 1,240,554 1,237,402
T o t a l 2,352,359 2,253,515
* Marquard & Bahls AG , Holding
)
page 04_05

L i a bilit ie s a n d St o c k h old e r ´ s E q u it y (K)
N o t e s
D e c. 3 1 , 2 0 0 6
D e c. 3 1 , 2 0 0 5
A . E q u i t y (2 5 )
I. * Common stock 75,000 75,000
II. * Additional paid in capital 8,280 8,280
III. * Revenue reserve 127,967 125,670
IV. * Reserve for changes in value –1,037 –4,105
V. * Reserve for revaluation 336 336
VI. * Retained earnings 322,184 200,837
VII. * Currency translation adjustments –3,513 15,553
VIII. * Minority interests in consolidated subsidiaries 49,995 38,896
tota l E q u i t y 579,212 460,467
B . N o n - c u r r e n t l i a b i l i t i e s
I. * Non-current liabilities (2 6 )
1. * Non-current liabilities due to banks 252,139 236,722
2. * Non-current liabilities due to associated companies 951 0
3. * Other non-current liabilities 146,196 163,092
399,286 399,814
II. * Non-current provisions (2 7 ), (2 8 ) 75,073 74,872
III. * Deferred taxes (1 4 ) 107,797 99,161
Tota l n o n - c u r r e n t l i a bi l i t i e s 582,156 573,847
C . C u r r e n t l i a b i l i t i e s
I. * Current liabilities (2 9 )
1. * Current liabilities due to banks 280,391 363,439
2. * Trade accounts payable 556,628 538,870
3. * Current liabilities due to affiliated companies 1,228 750
4. * Current liabilities due to associated companies 404 826
5. * Current liabilities due from related companies 1 0
6. * Current tax liabilities 126,142 140,345
7. * Liabilities due from construction contracts 7,989 1,841
8. * Other current liabilities 35,418 25,424
1,008,201 1,071,495
II. * Derivative financial instruments (3 0 ) 85,892 58.958
III. * Current accruals
1. * Tax accruals (3 1 ) 15,805 21,205
2. * Other current provisions (3 2 ) 81,093 67,543
96,898 88,748
tota l c u r r e n t l i a bi l i t i e s 1,190,991 1,219,201
T o t a l 2,352,359 2,253,515

*)
M arquard & Bah ls AG
C h a n g e s i n S t o c k h o l d e r s ´ E q u i t y 2 0 0 6
( K) N o t e s
Share
capital
Additional paid
in capital
Revenue
reserve
Reserve for
changes in
value
E q u i t y J a n . 1 , 2 0 0 5 75,000 8,280 114,886 -3,545
+/- Changes in valuation
method 0 0 0 0
+/- Correction of errors
E q u i t y J a n . 1 , 2 0 0 5
adjusted 75,000 8,280 114,886 -3,545
+/- Exchange differences on translation
of operations outside the Euro zone 0 0 0 -2,727
+/- Fair value remeasurement of availablefor-sale
financial instruments 0 0 0 0
+/- Fair value remeasurement of cash
flow hedges 0 0 0 2,166
+/- Changes in scope
of consolidation 0 0 0 0
S u b-tota l
C h a n g e s i n e q u i t y 0 0 0 -560
+ Net profit (loss) 0 0 0 0
- Dividend payments 0 0 0 0
+ Increase in stockholders´ equity 0 0 59 0
- Decrease in stockholders´ equity 0 0 0 0
+/- Allocation to/from retained earnings 0 0 10,725 0
E q u i t y D e c . 3 1 , 2 0 0 5 (2 5 ) 75,000 8,280 125,670 -4,105
E q u i t y J a n . 1 , 2 0 0 6 (2 5 ) 75,000 8,280 125,670 -4,105
+/- Exchange differences on translation
of operations outside the Euro zone 0 0 0 0
+/- Fair value remeasurement of cash
flow hedges 0 0 0 3,068
+/- Changes in scope
of consolidation 0 0 0 0
S u b-tota l
C h a n g e s i n e q u i t y 0 0 0 3,069
+ Net profit (loss) 0 0 0 0
- Dividend payments 0 0 0 0
+ Increase in stockholders´ equity 0 0 933 0
- Decrease in stockholders´ equity 0 0 -15 0
+/- Allocation to/from retained earnings 0 0 1,379 0
E q u i t y D e c . 3 1 , 2 0 0 6 (2 5 ) 75,000 8,280 127,967 -1,037
* Marquard & Bahls AG , Holding
)
page 06_07

O t h e r c o m p r e h e n s i v e i n c o m e
Reserve
for
revaluation
Currency
translation
adjustments
Sub-total other
comprehensive
income
Accumulated
income
Equity attributable
to minority
interest
Total
336 -11,421 -14,630 163,310 27,497 374,342
0 0 0 7,711 0 7,711
-37 -37
336 -11,421 -14,630 170,984 27,497 382,016
0 26,958 24,231 0 2,960 27,192
0 0 0 0 0 0
0 0 2,166 0 1,482 3,648
0 16 16 -404 811 423
0 26,974 26,414 -404 5,253 31,263
0 0 0 51,525 9,611 61,136
0 0 0 -10,335 -3,265 -13,601
0 0 0 0 44 104
0 0 0 -208 -244 -451
0 0 0 -10,725 0 0
336 15,553 11,784 200,837 38,896 460,467
336 15,553 11,784 200,837 38,896 460,467
0 -19,073 -19,073 -104 -2,346 -21,523
0 0 3,068 0 313 3,381
0 0 0 26 2,704 2,730
0 -19,073 -16,005 -78 671 -15,412
0 0 0 133,597 16,649 150,246
0 0 0 -10,785 -6,114 -16,899
0 7 7 0 890 1,830
0 0 0 -9 -998 -1,022
0 0 0 -1,378 0 0
336 -3,513 -4,214 322,184 49,995 579,212

*)
M arquard & Bah ls AG
I F R S- C o n s o l i d a t e d S t a t e m e n t s o f C a s h F l o w s a s o f D e c e m b e r 3 1 , 2 0 0 6
( K) N o t e s
2 0 0 6
2 0 0 5
Liq uid assets
as per balance sheets Jan 1. (2 4 ) 88,735 127.544
N et in co m e 150,246 61,136
+ I n co m e t a xes 31,007 21,681
N et in co m e b efo r e t a x 181,253 82,817
+ Depreciation and amortization 75,639 69,274
+/- (Gains) losses on retirements of non-current assets –5,634 2,634
+/- Changes on non-current provisions 5,130 3,510
+ Interest paid 44,560 37,596
- Interest received –5,850 -4,804
+/- Changes in other non-cash items –8,269 23,915
+/- (Gains) losses on de-consolidated of subsidiaries –26,503
+/- Changes in inventories and receivables –44,695 -421,116
+/- Changes in debt capital
(without financial debt) 69,559 341,404
- Income taxes paid (3 8 ) –27,820 -31,097
- Interest paid –49,350 -36,989
+ Interest received 6,264 4,530
Fr e e o p e ra tin g c a s h flo w (3 8 ) 214,284 71,675
- Cash outflows for additions to property, plant
equipment and intangible assets –220,557 -165,715
+ Cash inflows from sales of property, plant,
equipment and other assets 16,252 7,567
- Cash outflows for additions of consolidated
subsidiaries (less received financial capital) -5,283
+ Cash inflows for reversal of consolidated
subsidiaries 40,834
(less submitted financial capital) –530
Cash flow from investment
activities (3 8 ) –164,001 -163,431
- Payments from divided distribution –16,899 -13,601
+/- Changes in share capital 872 3,300
+/- Cash inflows from borrowing 47,714 92,715
- Retirements of current debt –75,112 0
- Retirements of non-current debt –21,201 -42,996
+ Cash inflows from other financial liabilities 3,929 3,645
Cash flow from financing activities (3 8 ) –60,697 43,063
* Change in cash and cash equivalents due to exchange
rate movements –2,857 7,230
* Change in cash and cash equivalents due to changes
in scope of consolidation 0 2,654
C h a n g e s in C a s h P o sitio n –13,272 –38,809
L i q u i d a s s e t s
as per balance sheets Dec. 31 75,463 88,735
* Less marketable securities 2,554 2,554
* Liquid assets (2 4 ) 72,909 86,181
* Marquard & Bahls AG , Holding
)
page 08_09

Notes
C o n s o l i d a t e d F i n a n c i a l S t a t e m e n t s o f M a r q u a r d & B a h l s A G 2006
( 1 ) B a s i s o f P r e p a r a t i o n o f t h e Fi n a n c i a l
S t a t e m e n t s
The consolidated financial statements of MARQUARD & BAHLS AG for the 2006 financial year
were prepared in compliance with section 315a para. 3 HGB (“Handelsgesetzbuch” or German
Commercial Code) under application of and in accordance with the International Financial
Reporting Standards (IFRS or IAS) and their interpretations (IFRIC or SIC) as adopted by the
European Union.
The consolidated financial statements were prepared in Euros.
In order to improve meaningfulness and clarity, changes in the value of derivative
financial instruments, to the extent that they arise from commodity forward contracts, are
reported as part of sales or cost of sales. The classifications “Gain/loss on revaluation of hedged
foreign currency loans” and “Group profit before tax” are reported as additional items. In addition
- with corresponding adjustments to the amounts reported in the prior year - non-current prepaid
expenses (prior year: K€ 5,384) and current prepaid expenses (prior year: K€ 8,135) are now
reported under non-current and current receivables and other assets. Receivables and payables
included in the prior year under inventories (K€ 5,678) and other current provisions (K€ 1,841)
from construction contracts are now reported as separate items under current receivables and
current liabilities. Receivables from derivative financial instruments of K€ 3 reported in the
balance sheet in the prior year under non-current and other assets were reclassified to current
asset financial derivatives. In addition, current liabilities to affiliated companies of K€ 750 and
current liabilities to associated companies of K€ 826 included in the prior year under other current
liabilities were reclassified to their own category within current liabilities. The interest component
of K€ 1,037 that formed part of the increase in the provision for dismantling costs and was
reported under other operating expenses in the previous year is reported under interest and
similar expenses from the 2006 financial year onwards.
In preparing these consolidated financial statements, MARQUARD & BAHLS has
applied all IFRS that have been approved by the International Accounting Standards Board
(IASB) and endorsed by the EU by the balance sheet date of 31 December 2006 and which are
obligatory for financial years commencing from 1 January 2006.

Accordingly, the following IFRS and changes to IFRS have not been applied:
,, IAS 1: Presentation of Financial Statements, disclosures relating to management
of capital
,, IFRS 7: Financial Instruments, disclosures relating to financial instruments
,, IFRIC 7: Applying the Restatement Approach under IAS 29, Financial Reporting in
Hyperinflationary Economies
,, IFRIC 8: Scope of IFRS 2
,, IFRIC 9: Reassessment of Embedded Derivatives
The above IFRS are being applied in the consolidated financial statements from 2007.
As a result of the initial application of these new standards, MARQUARD & BAHLS does not
expect any material effects on the balance sheet, income statement or cash flow statement.
Marquard & Bahls has been successfully operating in the international energy and oil
business for several decades. The main business areas are mineral oil trading, tank terminals,
aviation fueling and renewable energies. We also operate in the areas of service stations, lubricant
trading, energy contracting, bunker supplies and petroleum analysis.
The full address of the registered office is: Admiralitätstrasse 55, 20459 Hamburg,
Germany.
The consolidated financial statements and management report for the year ended 31
December 2006 were proposed by the board of directors on 19 March 2007 and are to be approved
by the supervisory board. Until they are approved, changes to the consolidated financial statements
remain possible.
The consolidated financial statements of MARQUARD & BAHLS AG together with a
separate listing of holdings and the management report in compliance with section 315a HGB
are made publicly available on the trade register of the Hamburg district court (HRB 51271) and
the Federal Gazette.
( 2 ) G r o u p o f c o n s o l i d a t e d c o m p a n i e s
The consolidation group at 31 December 2006 encompasses a total of 107 fully consolidated
companies (prior year: 106 companies). 26 affiliated companies (prior year: 27 affiliated
companies) are not consolidated, as these companies, both individually and combined, are of
subordinated significance to the presentation of a true and fair view of the balance sheet,
income statement and cash flow. These companies are stated in the balance sheet at cost.
19 companies (prior year: 26 companies) are valued using the equity method. Eight associated
entities (prior year: six associated entities) are stated at cost instead of the equity method due
to their subordinated significance. Four companies (prior year: two companies) are proportionally
consolidated. The interests in these companies, Oiltanking Stolthaven Antwerp N.V., Antwerp,
Belgium, Indian Oiltanking Limited, Mumbai, India, Consorcio Terminales, Lima, Peru, and Oiltanking
Odfjell GmbH, Hamburg, Germany amount to 50 % in each case.
An overview of the composition of the consolidation group is set out below:
* Marquard & Bahls AG , Holding
)
page 10_11

C o n s o l i d a t e d g r o u p
3 1 / 1 2 / 2 0 0 6 3 1 / 1 2 / 2 0 0 5
* Fully consolidated companies
* Inland 47 49
* Foreign 60 57
T o t a l 107 106
* Companies valued under the equity method
* Inland 11 18
* Foreign 8 8
T o t a l 19 26
* Proportionally consolidated joint ventures
* Inland 1 0
* Foreign 3 2
T o t a l 4 2
As a result of the proportional interest in each of the joint ventures, the following assets, liabilities,
expense and income items (without the investment, interest and tax items) are to be added to
those of MARQUARD & BAHLS:
A s s e t s , l i a b i l i t i e s ,
e x p e n s e a n d i n c o m e i t e m s ( K)
3 1 / 1 2 / 2 0 0 6 3 1 / 1 2 / 2 0 0 5
* Non-current assets 80,412 30,457
* Current assets 25,453 13,346
* Current provisions and liabilities 24,811 14,941
* Non-current provisions and liabilities 31,446 11,339
* Cash 994 700
* Income 65,312 38,017
* Expenses 52,362 33,497
A significant change in the consolidation group arose from the sale of 50 % of the interest in
Oiltanking Stolthaven Antwerp N.V., Antwerp, Belgium. As of 1 July 2006, this company is partially
consolidated into the group financial statements (up until 30 June 2006: full consolidation). With
a disposal price of € 36.9 million for the interest and the disposal of the assets and liabilities
set out below, a profit on disposal of € 24.1 million arose:
( K)
2 0 0 6
* Non-current assets 37,152
* Current assets 4,785
* Cash 531
* Provisions 11,797
* Liabilities 17,852

The following table provides an overview of the material income statement and balance
sheet items of the significant associated entities included at equity:
( K)
2 0 0 6
2 0 0 5
( 3 ) B a s i s o f c o n s o l i d a t i o n
* Marquard & Bahls AG , Holding
) page 12_13
* Revenues 264,311 375,201
* Result for the year 6,600 5,574
* Non-current assets 55,674 48,383
* Current assets 55,218 48,720
* Provisions 6,119 8,119
* Liabilities and accruals 76,035 64,062
* Equity 29,985 24,933
The assets and liabilities as well as the items of the income statement of a total of
eight (prior year: six) associated entities not valued under the equity method are immaterial
both individually and in aggregate.
All material subsidiaries, in which MARQUARD & BAHLS indirectly or directly holds more than
50 % of the voting rights, have been fully consolidated in the group financial statements. In the
case of two companies, they have been consolidated as a result of the factual exercise of control.
For these companies, Oiltanking Seraya Pte. and Oiltanking Odfjell Pte., both of which are in
Singapore, all commercial and operational decisions are made by the members of the board of
directors appointed by MARQUARD & BAHLS.
Material participating interests are valued using the equity method if a significant
influence can be exerted; this is fundamentally the case where between 20 % and 50 % of voting
rights are held.
According to IAS 31.2, a joint venture exists if two or more partners carry out an
economic activity under shared control. Control is the power to govern the financial and economic
policies of an economic activity so as to gain benefits from it. Joint control is defined as the
contractually agreed sharing of control over an economic entity. In accordance with the benchmark
method, material jointly controlled entities are accounted for in the consolidated financial
statements by proportional consolidation in accordance with IAS 31.30. One immaterial joint
venture was stated at cost.
In accordance with IFRS 3 “Business Combinations”, the capital consolidation is carried
out using the purchase method. Under this method, the cost of the purchased interest is offset
against the proportion of equity attributable to the parent company at the time of the acquisition.
Any difference between the purchase cost and the attributable proportion of equity is allocated
up to the amount of the fair value, independently of the attributable proportion to the
subsidiary’s assets and liabilities. Correspondingly, the interests of the other shareholders are
stated at the fair value of the share of equity attributable to them. The remaining difference,
if it is a debit balance, is recognised as goodwill. Negative goodwill arising on consolidation is
taken immediately to the income statement.

In relation to the goodwill balances offset against reserves as stated in the HGB
consolidated balance sheet as at 31 December 2003, MARQUARD & BAHLS has made use of
the exemption available under IFRS 1 and maintained the offsetting of the goodwill balances
in the IFRS opening balance sheet as at 1 January 2004. Negative goodwill balances arising on
consolidation prior to 1 January 2004 have been included in opening balance sheet retained
profits.
All material receivables and liabilities, revenues, expenses and income as well as intercompany
profits and losses within the consolidation group are eliminated. Unrealised losses are
eliminated in the same way as unrealised profits, but only to the extent an impairment does not
exist.
*) D i f f e r e n t B a l a n c e S h e e t D a t e
The company Indian Oiltanking Limited, Mumbai, prepares its financial statements to 31 March
every year. For consolidation purposes, interim financial statements to 31 December 2006
and 2005 were prepared. Two associated entities prepare their annual financial statements to
30 September every year. The recognition of these companies in the balance sheet under the
equity method at 31 December 2006 was based on the financial statements for the year ended
30 September 2006. Interim financial statements to the group balance sheet date were not prepared
on the grounds of immateriality.
*) F o r e i g n C u r r e n c y C o n v e r s i o n
The financial statements of the foreign companies included in the consolidated financial statements
are converted in accordance with the concept of the functional currency. As all of the
companies are economically independent, the conversion of the balance sheets is performed
using the rate as at the balance sheet date. The individual items of the income statement are
converted at the average rate for the year.
Differences arising from conversion of assets and liabilities compared to the converted
values of the prior year as well as conversion differences between the income statement and
the balance sheet are reported directly to the “Cumulative translation adjustment” reserve
under equity, without passing through the income statement. In the year of deconsolidation, the
foreign exchange differences are transferred to the income statement.
MARQUARD & BAHLS has made use of the exemption available under IFRS 1 and
eliminated existing exchange differences on foreign companies, whose currency is not the Euro at
the time of transition to IFRS, from the balance sheet item “Cumulative translation adjustment”
and increased the retained earnings reserve correspondingly.
149,6 00,000 km
D i s t a n c e E a r t h – S u n
M a i n t a i n i n g i n d e p e n d e n t t r a d e a n d f r e e d o m i n d e c i s i o n m a k i n g i s t h e b a s i s
o f o u r s u c c e s s .

The average rate for the year is determined by taking the mid-rate of the daily currency
rates of the past twelve months. The development of the significant exchange rates against the
Euro is set out in the table below:
Balance sheet rate
average rate for the year
C u r r e n c y 3 1 / 1 2 / 2 0 0 6 3 1 / 1 2 / 2 0 0 5 2 0 0 6 2 0 0 5
* EURO / US-Dollar (USD) 1.3178 1.1835 1.2555 1.2442
* EURO / Singapore-Dollar (SGD) 2.0213 1.9688 1.9940 2.0698
* EURO / British Pound (GBP) 0.6714 0.6871 0.6818 0.6838
* EURO / Schweizer Franken (CHF) 1.6080 1.5553 1.5729 1.5481
Foreign exchange differences from net investments in foreign business operations in
2006 amounted to – € 1.3 million (prior year: € 5.1 million), which in accordance with IAS 21.32
were reported directly to equity.
( 4 ) S i g n i f i c a n t R e c o g n i t i o n a n d
M e a s u r e m e n t M e t h o d s
*) C o n s i s t e n c y
The recognition, measurement and consolidation methods set out below have been applied
consistently in all periods reported in these financial statements. They have also been applied
consistently by all of the companies included in the consolidated financial statements.
*) C h a n g e s i n R e c o g n it i o n a n d V a l u a t i o n M e t h o d s
In order to improve the presentation of the consolidated financial statements, under IAS 23 and
in compliance with IAS 8, borrowing costs are being capitalised from the 2006 financial year. Via
this change in accounting policy, the economically comparable circumstances of “purchase by
contract for services and labour” and “self-build” of new tank stores and tank storage equipment
are also subject to comparable accounting presentation. The change in accounting policy was
applied retrospectively. At 1 January 2005, borrowing costs from prior years that had not yet
been charged to the income statement as depreciation amounted to K€ 12,853. Taking account
of deferred tax liabilities, an increase in the retained profit in the balance sheet of K€ 7,712
arose. The following effects on the items of the opening balance sheet and balance sheet at 31
December 2005 as well as the 2005 income statement arose:
( K)
0 1 / 0 1 / 2 0 0 5 2 0 0 5
3 1 / 1 2 / 2 0 0 5
* Non-current assets 12,853 1,620 14,473
* Profit for the year / retained profit 7,712 971 8,683
* Provision for deferred taxation 5,141 5,790
* Interest expenses –2,585
* Depreciation 965
* Deferred tax expense 649
* Marquard & Bahls AG , Holding
)
page 14_15

*) C o r r e c t i o n o f E r r o r s
In three cases, accounting entries that were based on the accounting treatment as at 31 December
2005 were objectively incorrect. In compliance with IAS 8, these errors were corrected retroactively
for the 2005 financial statements – taking account of deferred taxation in each case.
The individual items relate to the following circumstances:
,, In respect of the company East Anglian Fuel Oils Limited, London, Great Britain,
goods for resale were stated at 31 December 2005 at an undervalued amount (market value): in
addition, inventories in two regional stores were omitted entirely. The retroactive correction of
these errors led to an increase of K€ 986 in the value of inventories at 31 December 2005 and a
corresponding reduction in cost of sales. The profit for the year increased accordingly.
,, In relation to the company Oiltanking Malta Ltd., Birzebuggia, Malta, tax credits
for transacted investments were determined at an amount that was understated by K€ 5,953
in 2005. Following the correction, the consolidated financial statements of OILTANKING GMBH
to 31 December 2005 were adjusted. The non-current receivables and the consolidated profit
for the year increased and taxes on profits decreased accordingly. Taking account of minority
interests of K€ 1,786, the retained profit in the balance sheet increased by K€ 4,167.
,, In addition, in respect of the company B.W.O.C. Limited, London, Great Britain,
revenue and purchased goods amounting to K€ 37,511 were incorrectly offset against each other
in the prior year. This error was adjusted in the 2005 consolidated income statement.
*) E s t i m a t e s
The preparation of the consolidated financial statements requires that, to a certain degree,
estimates and assumptions are made which will influence the assets and liabilities recognised
in the balance sheet, the disclosure of contingent liabilities at the balance sheet date and the
reporting of income and expenditure during the period of the report. The actual amounts to be
accounted for can deviate from these estimates. The estimates and assumptions on which they
are based are subject to continual review. Corrections of estimates are reported in the period in
which the estimate was reviewed and, where appropriate, additionally in subsequent periods if
the adjustment also relates to later periods.
*) R e v e n u e R e c o g n i t i o n
Sales are recorded at the point in time at which the goods or services are provided. In the case of
the supply of goods, this takes place at the point in time of the transfer of risk, for tank storage
handling and aviation fuel supplies this is the point in time of supply. Storage revenues are
apportioned by time.
In the heating contracting segment, sales income is realised in the amount of the
monthly instalments agreed with the customers. In addition, income is recognised in the amount
of the estimated balance due at the end of the year.

In the case of partial completion of contracts by a proportionally consolidated entity,
revenue is recognised to the extent of completion of each contract or after reaching a contractually
agreed level of partial completion.
Interest income is apportioned by time.
*) C o n s t r u c t i o n C o n t r a c t s
Revenues and profits from construction contracts are recognised according to the degree of
completion (“percentage of completion method”). Construction contracts qualify as longterm
if the performance of the contract covers a period of at least 12 months, taken from the
point in time of the commencement of the work until the point in time at which the work is, in
substance, completed.
The degree of completion is derived from the relationship between the contract costs
incurred by the end of the financial year and the current estimated total contract costs as at
the end of the financial year (“cost-to-cost method”). Losses arising on construction contracts
are recognised in full, irrespective of the degree of completion reached, in the financial year in
which the losses are identified.
Construction contracts that are accounted for under the percentage of completion
method are, where appropriate, after deduction of the requested advance payment, reported
under the item “Construction contracts” as part of current receivables or current liabilities.
*) I n t e r e s t o n E x t e r n a l F u n d i n g
Interest on external funding is reported as an expense. External funding costs incurred during the
construction phase of tank storage projects are capitalised together with the costs of construction
(€ 4.0 million, prior year: € 2.6 million).
*) I n t a n g i b l e F i x e d A s s e t s
Intangible fixed assets acquired for cash with a determinable useful life are capitalised at their
acquisition cost and systematically amortised using the linear method over their useful lives of
between three and 15 years. Intangible assets acquired for cash with an indefinite useful life are
not systematically amortised, but are reviewed annually for indications of impairment.
In accordance with the requirements of IFRS 3 “Business Combinations”, goodwill is no
longer systematically amortised, but is reviewed annually for indications of impairment. IFRS 3
is to be applied to all business combinations after 31 March 2004, but can, however, be applied
earlier, if the goodwill has been treated in accordance with IFRS 3, with reference to IAS 36
“Impairment of Assets”. As a result of IFRS 1 “First-time Adoption” combined with IFRS 3 “Business
Combinations”, from 1 January 2004, systematic amortisation has not been carried out. All
goodwill offset against retained earnings in accordance with the requirements of HGB remains
unchanged in the IFRS opening balance sheet. In accordance with the impairment tests carried
out as at 30 June 2006, impairment write-downs amounting to K€ 586 (prior year: K€ 0) were
necessary.
* Marquard & Bahls AG , Holding
)
page 16_17

*) T a n g i b l e F i x e d A s s e t s
Tangible fixed assets are stated at their acquisition or production cost less accumulated
systematic depreciation. The linear depreciation method is applied. Additions during the year are
depreciated on a time-apportioned basis. Low-value assets are written off in full in the year of
acquisition. Additions and balance sheet recognition of technical plant and assets in the course
of construction include planning and engineering services provided from within the group.
Where significant parts of a fixed asset have different useful lives, they are treated as
separate tangible assets and systematically depreciated (component accounting). Costs arising
from the obligation to remove a tangible fixed asset when its use has come to an end are
capitalised as part of acquisition costs at the time of acquisition or production.
The useful lives of the intangible and tangible assets are set out in the following table:
U s e f u l l i v e s o f t h e
i n t a n g i b l e a n d t a n g i b l e a s s e t s
( in years)
U s e f u l l i f e
* Licences, trade rights and similar rights
(excluding software)
3 to 15 years
* Software 3 to 10 years
* Office buildings 12 to 50 years
* Operational buildings 12 to 40 years
* Petrol station buildings 10 to 25 years
* Tank constructions 40 years
* Jetties 30 years
* Pipelines 30 years
* Petrol station equipment 3 to 16 years
* Heating equipment 15 years
* Other technical plant and machinery 10 to 25 years
* Operating and other equipment 4 to 10 years
The production cost of internally created assets encompasses the individual costs as well
as the attributable material and production overheads including depreciation and amortisation.
In addition, external funding costs during the construction phase are included in the production
cost under IAS 23.
Expenses relating to advance and basic planning arising in the context of investment
projects are capitalised. They are depreciated according to the useful life of the investment
project.
Maintenance and repair costs are treated immediately as an expense. Regular major
overhauls are capitalised as part of the related long-term asset under the concept of component
accounting and depreciated over the period until the next major overhaul. Costs in respect of
measures that lead to an extending of the benefit or an increase in the potential future benefits
of an asset are capitalised as a matter of principle.

*) L e a s i n g
In respect of leasing transactions, MARQUARD & BAHLS acts almost exclusively as a lessee.
Lease agreements in the heating contracting segment are, in some cases, classified as finance
leases with the consequence that the leased heating equipment is capitalised as economic
property at the amount of the present vale of the lease instalments during the non-cancellable
term of the lease and at the beginning of the lease period a corresponding liability to the lessor
is recognised in the balance sheet. All other leasing contracts are treated as operating leases;
the ongoing lease instalments are charged immediately as an expense.
*) E n t i t i e s v a l u e d u s i n g t h e E q u i t y M e t h o d
a n d O t h e r F i n a n c i a l A s s e t s
Material equity investments over which a significant influence can be exerted are accounted for
by use of the equity method. In doing so, the accounting policies of MARQUARD & BAHLS are
also fundamentally applied to associated entities.
Investments in non-consolidated subsidiaries are stated at their acquisition cost, as
no active market exists for these companies and their fair value cannot be reliably determined
at a justifiable expense. Loans are stated at their amortised cost. All financial assets are written
down where they are subject to a permanent diminution in value. Where it can be demonstrated
that the reason for the diminution in value no longer exists, the write-down is reversed.
*) I m p a i r m e n t o f F i x e d A s s e t s
Long-term assets are reviewed for recoverability as soon as current market developments and
budgeted figures indicate potentially that the net book value of an asset or a group of assets
may exceed its attributable value. If the net book value exceeds the higher of the net disposal
proceeds and the present value of the estimated future cash flows from the use of the asset, a
write-down impairment is applied.
back.
If the reason for the impairment write-down no longer exists, the asset value is written
In the 2006 financial year, there were no triggering events.
In the context of the annual impairment test, goodwill and other intangible assets
with an indefinite useful life of the cash generating units were reviewed for their recoverability.
According to IAS 36 “Impairment of Assets”, a reduction in value via an impairment write-down
must be carried out if the recoverable amount of a cash-generating unit is lower than its carrying
amount. MARQUARD & BAHLS identified its cash generating units as the individual operative
companies in each country (profit centre).
MARQUARD & BAHLS determined the recoverable amount as the value in use for all
cash generating units. In doing so, the starting point was the expected recoverable cash flows
over a projection period corresponding to the interpreted long-term business policy and longterm
investment of 15 years. This projection encompassed, for each cash-generating unit, all
significant parameters from a cash flow perspective. For each of the business areas, uniform
* Marquard & Bahls AG , Holding
)
page 18_19

projection premises such as significant exchange rates, the development of staff costs, planned
investments and maintenance costs were taken as a basis. These were expanded to include the
projection data specific to the business area, which are based on the known and contractually
fixed key data at the time of the determination of the value in use. To the extent that they are
not set by known contracts, growth parameters were not assumed.
The expected cash flows were discounted using a rate of 12 %, taking account of interest
and capital repayments. The net present value of the cash flows resulting from the discounting
was compared with each of the net book values of the cash generating units. This is determined
as the difference between the attributable assets including goodwill and liabilities.
The impairment test in accordance with IAS 36 in the 2006 financial year gave rise to
an impairment write-down requirement of K€ 589 (prior year: K€ 0).
*) I n v e n t o r i e s
In accordance with IAS 2, inventories are valued at the lower of the purchase or production cost
and their market value at the balance sheet date. In determining purchase cost, the average
value method is generally applied. There were no material valuation corrections required at
31 December 2006.
As a departure from this policy, the inventories of the companies that were classified
as commodity broker-traders are valued in accordance with IAS 2.3 (b) at fair value (market
value) less selling expenses.
*) R e c e iv a b l e s a n d o t h e r A s s e t s
Receivables and other assets are stated in the balance sheet at their amortised cost. In order to
account for individual risks, specific valuation write-downs are made.
*) D e f f e r e d T a x a t i o n
In accordance with IAS 12, deferred tax assets and liabilities for all temporary differences
between group accounting values and tax values are recognised. In addition, deferred tax assets
are recognised in respect of useable tax losses. The effects of changes in the rate of taxation
on deferred tax assets and liabilities are reflected in the charge for taxation in the period in
which the tax legislation is changed. Valuation adjustments are made where the realisation of a
deferred tax asset is improbable.
*) I F R S C o n v e r s i o n R e s e r v e
The IFRS conversion reserve includes all changes in equity not passing through the income statement
and included in the opening IFRS balance sheet at 1 January 2004 as a result of the conversion
from German accounting regulations to the International Financial Reporting Standards (IFRS
and IAS) and their Interpretations (SICs and IFRICs) as issued by the International Accounting
Standards Board (IASB) and adopted by the EU.

*) R e s e r v e f o r C h a n g e s i n V a l u e
The reserve for changes in value includes changes in the fair value of financial instruments from
cash flow hedges, of interest swaps and of net investments in foreign business operations, together
with the related deferred tax effects.
*) R e s e r v e f o r R e v a l u a t i o n
The reserve for revaluation is connected with the transition consolidation of a company,
which was brought in to the consolidated financial statements for the first time under the full
consolidation principles in the 2004 financial year after the increase in the holding in voting
rights from 49 % to 100 %. The change in equity of the company determined under IFRS, to
the extent that it relates to the purchase of the first tranche, was recorded in the reserve for
revaluation.
*) P e n s i o n P r o v i s i o n s
MARQUARD & BAHLS has taken advantage of the exemption available under IFRS 1 and included
all actuarial gains and losses arising from defined benefit commitments at the time of conversion
from HGB to IFRS in the IFRS opening balance sheet (fresh start).
Defined benefit pension and healthcare provision obligations are valued using the
projected unit credit method as required by IAS 19 “Employee Benefits”. In doing so, adjustments
to future salaries and pensions are taken into account. The service cost for the beneficiaries
arises from the systematic development of the benefits provision. Differences between the
systematically determined pension obligations and the present value of the benefits and pensions
at the end of the year are allocated over the average remaining working lives of the beneficiaries,
to the extent that they exceed 10 % of the obligation. The pension obligations in Germany are
determined by taking account of the biometric calculation principles in accordance with the
2005 Heubeck reference tables. Pension obligations outside of Germany are determined taking
into account country specific accounting principles and parameters. Deduction of the as yet
unaccounted for actuarial gains and losses results in the pension provisions.
The defined contribution obligations of MARQUARD & BAHLS are charged as an
expense in the period in which payment is made.
*) O t h e r P r o v i s i o n s
Other provisions are accounted for in accordance with IAS 37 “Provisions, Contingent Liabilities
and Contingent Assets”, and IAS 19 “Employee Benefits”. A provision is recognised in the balance
sheet if the group has a legal or constructive obligation arising from past events and it is probable
that an outflow of economic benefits will be required to settle the obligation. If the effect
is material, long-term provisions are discounted. The discount rate applied is 5.5 %.
Costs arising from the obligation for the rectification of environmental damage are
provided for if the claim is probable and the costs can be reliably estimated. The provisions are
adjusted via the income statement as a result of knowledge gained from continual investigations
and also during the course of the rectification measures. The amount of the individual provisions
is influenced by factors such as the degree of contamination, the required rectification measures
and further requirements of authorities or private individuals.
* Marquard & Bahls AG , Holding
)
page 20_21

*) L i a b i l i t i e s
Long-term liabilities and financing liabilities are stated in the balance sheet at amortised cost.
Short-term liabilities are recognised at their repayment or fulfilment value.
*) F i n a n c i a l I n s t r u m e n t s
As well as originating financial instruments such as trade accounts receivable and payable and
financial receivables and liabilities, derivative financial instruments are also classified under
financial instruments.
*) D e r i v a t i v e F i n a n c i a l I n s t r u m e n t s
Derivative Financial Instruments are predominantly used for hedging purposes against risks from
changes in market prices of goods for resale and foreign currency exchange rates as well as interest
rates. The transactions are entered into on international commodity futures markets as well as
with banks and trading houses with first-class credit ratings, within the context of determined
limits. Only marketable instruments with sufficient market liquidity are used. Consequently, material
credit risks do not exist. The use of derivative financial instruments is subject to constant
risk control.
In accordance with IAS 39, all derivative financial instruments are stated at fair value in
the financial statements, whereby the fair value states the effect on profits that a realisation of
the derivative at the balance sheet date would have, independent of the underlying transaction.
As a result of the volatility of value determining market data, the derivative financial instrument
fair values determined as at the balance sheet date can differ substantially from the currently
realisable amounts. The fair value of the foreign currency forward contracts is calculated on the
basis of applicable spot rates at the balance sheet date combined with premiums and discounts
relative to the agreed forward contract rate. In the case of interest swaps, valuation is performed
on the basis of fair values provided by the contract partners. The market value of options and
futures for commodities are determined daily by reference to the corresponding futures contract
market.
Derivatives are included in the balance sheet at fair value in accordance with IAS 39
classified as derivative financial instruments or liabilities from derivative financial instruments.
Initial balance sheet recognition takes place on the day of the trade and they are removed from
the balance sheet on the day of their realisation.
Changes in their fair values are recognised immediately in the income statement,
expenses and income that arise from unrealised gains and losses on derivative financial instruments
for the hedging of foreign currency risks are reported under the income statement item “Result
from changes in value of financial instruments”. The unrealised gains and losses from these
transactions are counteracted by an opposing movement in value of the recorded underlying
transaction.
Derivative financial instruments are entered into almost exclusively on the basis of
standardised outline contracts for financial forward contracts.

Hedge Accounting is practised only for the hedging of interest rate change risks in
respect of underlying transactions bearing interest at variable rates by entering into interest
swaps: The effective part of the change in fair value of these interest swaps is reported under
the reserve for changes in value after deduction of the effects of deferred tax. Ineffective parts
are reported in the income statement. In addition, hedge accounting takes place for the hedging
of net investments in foreign business operations. Foreign exchange fluctuations from the
hedged volume of the loans that are denominated in the same currency as the net investment
are reported directly to the reserve for changes in value net of their deferred tax effects and
without passing through the income statement.
*) O r i g i n a t i n g F i n a n c i a l I n s t r u m e n t s
Investments in non-consolidated subsidiaries are stated at their acquisition cost, as no active
market exists for these companies and a fair value cannot be reliably determined at justifiable
cost.
Outstanding loans, receivables and liabilities are stated at amortised cost. This relates
specifically to
,, Loans
,, Trade accounts receivable and payable
,, Non-current and current other assets and liabilities with the exclusion of receivables
and liabilities relating to tax and construction contracts
,, Securities
The fair values of the originating financial instruments to be provided additionally in
the notes to the financial statements correspond with the amortised cost values or deviate by
only negligible amounts. In the absence of an active market, it was not possible to determine the
attributable fair value of one of the loans reported under other non-current liabilities. A determination
of the attributable fair value by means of other valuation methods was not carried out.
Initial balance sheet recognition of all originating financial instruments takes place on
the day of the trade. The accounting entry takes place as soon as MARQUARD & BAHLS has
entered into a contractual relationship in respect of a financial instrument. Removal from the
balance sheet takes place on repayment or expiry of the financial instrument.
*) E m b e d d e d D e r i v a t i v e F i n a n c i a l I n s t r u m e n t s
One group company has entered into refreshment and replenishment agreements with the
national strategic petroleum reserve. These agreements provide that for a fixed period, the company
takes fixed quantities of mineral oil products at fixed prices, in order to replenish them and keep
them fresh. For the same period, the same products at the same prices or qualitatively different
products, taking account of price differentials, are to be supplied back to the strategic petroleum
reserve. The return of goods obligation is valued in accordance with IAS 39.10 et seq., as an
embedded derivative at its attributable fair value (market value).
* Marquard & Bahls AG , Holding
)
page 22_23

7 7 8,7 00,000 km
W e a r e c o m m i t t e d t o o u r s h a r e h o l d e r s , e m p l o y e e s a n d
b u s i n e s s p a r t n e r s , b u t n o t b o u n d t o o t h e r i n s t i t u t i o n s .
D i s t a n c e S u n – J u p i t e r
*) R i s k M a n a g e m e n t o f F i n a n c i a l R i s k s
The risk management of the group concerns itself, in addition to operative risks such as activity,
country and environmental risks, primarily with market risks, which, specifically, are caused by
fluctuations in foreign exchange rates, interest rates and commodity prices. It is group policy
to continually observe, quantify and hedge against these fluctuations, with the aim of avoiding
risks that endanger continued existence and to avoid fluctuations in cash flow and income that
are determined by commodity procurement and sale price as well as by foreign exchange and
interest rates. The hedging of these market risks is achieved to a high degree with derivative
financial instruments.
*) L i q u i d i t y R i s k
Liquidity risk denotes the risk of being able to procure sufficient financial resources in order to
meet liabilities as they arise. An essential instrument for the controlling of liquidity risk is an
exact financial projection, prepared by each of the operative companies. In this manner, funding
requirements and bank credit lines are determined.
The financing of operating resources is performed by the group Treasury department.
A daily offsetting of group internal balances is carried out by the central clearing function.
Companies with cash surpluses make them available to companies requiring funds. This reduces
the volume of external financing and achieves an optimal net interest charge.
*) C r e d i t R a t i n g R i s k
The credit rating risk denotes asset losses that can arise from the non-fulfilment of contractual
obligations of individual business partners. The credit rating risk of the business partners is
hedged largely by pledges, trade credit insurance, bank guarantees and letters of support.
In relation to derivative financial instruments the credit rating risk is restricted to
transactions with a positive market value and, in respect of these, to the replacement cost.
Derivative transactions are entered into almost exclusively on the basis of standardised contracts
relating to financial futures transactions. Accounts receivable from brokers on commodity
futures markets are transacted via secured accounts. A broker credit rating risk does not exist.
*) D e f a u l t R i s k
The maximum default risk at 31 December 2006 amounts to approximately € 740 million
(prior year: approximately € 720 million).

*) C h a n g e i n V a l u e R i s k
As a result of the volatility of the price of mineral oil products, goods inventories, contracts for
the sale and purchase of goods and goods related derivative financial instruments are subject to
a continual risk of change in value. Priced physical positions (procurement and sale contracts,
inventories, as well as return of goods obligations) are therefore, to the extent that no natural
hedging exists, hedged by corresponding opposing transactions in this context via commodity
futures markets and as a consequence secured against risk. Only to a limited degree are the
management of the operative companies entitled to enter into controlled risk positions.
In this context, commodity future contracts are transacted in USD.
*) F o r e i g n C u r r e n c y R i s k
The largest foreign currency position in the group is in US Dollars.
A natural foreign currency hedge arises in the business segment MABANAFT from funds
received from the sale of goods in US Dollars being used for the purchase of goods in US Dollars.
In the business segment OILTANKING the foreign currency risk is hedged in the context of a
‘double strategy’. At the level of the subsidiary companies, open foreign currency positions from
the issuing of loans are hedged with the help of cross-currency interest rate swaps. Countering
this at the group level is a “natural hedging”, whereby the issuing of loans is financed by
private placement which brings about opposing foreign currency effects. For a partial amount
of € 36.3 million (prior year: € 40.7 million) of such investments in foreign business operations,
hedge accounting in accordance with IAS 39 is applied (cash flow hedge). Other open positions
are mainly hedged by entering into currency swaps. Hedge accounting for currency swaps does
not take place.
Investment finance is controlled by the group finance department. The taking out of
loans is, in part, executed in the operative companies in the currency of the company’s income,
in order to avoid exchange rate risks.
*) I n t e r e s t R i s k
MARQUARD & BAHLS differentiates between cash flow risk (the risk that interest income and
expense change disadvantageously) in respect of variable interest bearing financial instruments
and net present value risk in respect of fixed interest financial instruments. The cash flow risk is
hedged by entering into interest swaps, whilst the net present value risk remains unhedged.
In respect of non-interest bearing financial instruments, no interest risk exists. In the
case of an increase of 1% in the interest rate, the net interest charge from the variable interest
bearing financial instruments would increase by approximately € 0.1 million per annum (prior
year: approx. € 3 million per annum).
( 5 ) S i g n i f i c a n t A s s u m p t i o n w i t h s i g n i f i c a n t
R i s k o f C h a n g e i n V a l u e
The consolidated financial statements of MARQUARD & BAHLS AG also include the following
material items, whose method of valuation is substantially dependent on underlying assumptions
and estimates:
* Marquard & Bahls AG , Holding
)
page 24_25

*) I n v e n t o r i e s a n d R e t u r n o f G o o d s O b l i g a t i o n s
Inventories and obligations for the return of goods are valued under the broker-trader option
and also as embedded derivatives at their fair value (market prices). The value actually realised
can differ significantly from the value recognised in the consolidated balance sheet as a result
of volatile market prices. The material risk is limited by implemented hedging instruments. The
book value of inventories at the balance sheet date amounted to approximately € 458 million
(prior year: approximately € 440 million) and the book value of the return of goods obligations
amounted to approximately € 16 million (prior year: approximately € 18 million).
*) P e n s i o n P r o v i s i o n s
The actuarial calculation of the pensions obligation is based upon assumptions in respect of
discount rates, expected returns on scheme assets, salary increases, pension increases and mortality
rates. In addition, changes in the assumed trends in health costs are taken into account. These
assumptions can differ from the actual data, specifically as a result of a change in economic
environment and a change in the market conditions as well as changes in the assumptions on
which the trends in health costs are based, e.g. from health reforms.
A change of 0.1 % in the assumed discount rate leads to a change of approximately
K€ 500 in the present value of the pension obligation. This variance does not give rise to a material
influence on the future expense for pensions.
The book value of the pension provisions amounted to approximately € 36 million at
31 December 2006 (prior year: approximately € 36 million).
*) F i x e d A s s e t W r i t e - d o w n s
In the context of the annual impairment test, goodwill and other intangible assets are reviewed
for their recoverability.
The recoverability review involves performing a valuation on the basis of the entity’s
projection using market or entity specific discount rates and expected growth rates and foreign
currency exchange rates. The related assumptions can be subject to changes, which could lead
to valuation corrections in future periods. The intangible assets recognised in the balance sheet
as at 31 December 2006 amount to approximately € 22 million (prior year: approximately € 25
million).
*) P r o v i s i o n s f o r E n v i r o n m e n t a l P r o t e c t i o n
Provisions are made for the rectification of environmental damage, provided the related claim
is probable and the costs can be reliably estimated. The amount of the individual provisions is
influenced by factors such as the degree of contamination, the required rectification measures
and further requirements of authorities, businesses or private individuals. Changes in these factors
could lead to the necessity to adjust the amount of the provision. The major part of the provisions
relates to obligations for the rectification of environmental damage at the production facilities,
old locations and waste disposal sites of the business. As at 31 December 2006, provisions for
environmental protection of approximately € 7 million were included in the balance sheet (prior
year: € 9 million).

*) R e a l i t i o n o f D e f e r r e d T a x A s s e t s
The calculation of deferred tax balances is performed on the basis of tax rates, which, according
to current legislation, will apply at the point in time at which the temporary differences will
reverse as well as estimates of taxable future earnings. Possible changes in tax rates or future
income differing from the assumed amount can lead to the realisation of deferred tax assets
becoming improbable, making a valuation correction necessary. Deferred tax assets recognised
in the balance sheet at 31 December 2006 amounted to approximately € 19 million (prior year:
approximately € 18 million).
*) U s e f u l L i v e s o f F i x e d A s s e t s
Tangible fixed assets and intangible fixed assets acquired for cash with limited useful lives are
recognised at their purchase or production cost and systematically depreciated or amortised on a
linear basis over their useful lives. In determining the useful lives, factors such as consumption,
ageing, technical standards, contract periods, changes in demand and availability of raw materials
are taken into account. Changes in these factors can bring about a shortening of the useful life of
an asset. In this situation, the remaining net book value would be depreciated or amortised over
the new remaining useful life, which would lead to higher annual depreciation or amortisation
charges. The total book value of intangible and tangible fixed assets at 31 December 2006
amounted to approximately € 1,005 million (prior year: approximately € 944 million).
( 6 ) M a t e r i a l A c q u i s i t i o n s
There were no material acquisitions in the 2006 financial year.
( 7 ) M a t e r i a l D i s p o s a l s
By contracts dated 20 March 2006 and 21 July 2006, MARQUARD & BAHLS disposed of a 50 %
interest in Oiltanking Antwerp N.V., Antwerp, Belgium for a cash price of € 36.9 million with
economic effect from 1 January 2006; the loss of control and the resulting transition from full
consolidation to partial consolidation took place on 1 July 2006. A book profit of € 24.1 million
arose from the sale of the interest.
In addition, in the 2006 financial year, the 50 % interest in the heating contracting
company WGB-Wärme GmbH & Co. KG as well as the 50 % interest in the company with unlimited
liability was sold at a price of K€ 3,935. A profit of K€ 2,423 arose from the deconsolidation.
384,400 km
D i s t a n c e E a r t h – M o o n
O u r f i n a n c i a l s o u n d n e s s a n d o u r f l a t d e c i s i o n - m a k i n g s t r u c t u r e s g i v e u s
t h e a b i l i t y t o c a p t u r e m a r k e t o p p o r t u n i t i e s .
* Marquard & Bahls AG , Holding
)
page 26_27

Commentary
C
o f M a r q u a r d & B a h l s A G 2006
o m m e n t a r y o n t h e C o n s o l i d a t e d I n c o m e S t a t e m e n t
( 8 ) R e v e n u e s aft e r D e d u c tio n of Min e ra l Oil Ta x
Revenues by business segment are as follows:
S a l e s a f t e r d e d u c t i o n o f
m i n e r a l o i l t a x ( K)
2 0 0 6
2 0 0 5
*)
* Oiltanking 341,282 316,995
* Mabanaft 10,465,225 8,175,567
* Cargo and barge trading 3,609,120 2,850,300
* Wholesale trading 4,865,270 3,534,752
* Retail trading 1,949,415 1,753,914
* Heating contracting 41,420 36,601
* Skytanking 19,674 15,972
* Other 7,846 1,745
T o t a l 10,834,027 8,510,279
The revenues of the business area OILTANKING include revenues from construction
contracts of K€ 43,529 (prior year: K€ 43,528).
Revenues by geographical region are as follows:
S a l e s b y r e g i o n ( K)
2 0 0 6
2 0 0 5
*)
* Germany 3,850,056 3,811,309
* Europe 5,282,218 3,996,812
* Asia 78,285 70,504
* North America 1,574,932 585,807
* South America 48,536 45,847
t o t a l 10,834,027 8,510,279
Revenues are reported after the deduction of mineral oil tax of K€ 969,144 (prior year:
K€ 1,140,679).

( 9 ) O t h e r O p e r a t i n g I n c o m e
O t h e r o p e r a t i n g i n c o m e ( K)
2 0 0 6
2 0 0 5
*)
* Cost refunds 11,165 5,481
* Compensation refunds 1,824 2,237
* Foreign exchange gains 20,581 17,402
* Income from the sale of interest in Oiltanking Stolthaven 24,080 0
* Income from the sale of interest in WGB 2,423 0
* Income from the reversal of provisions 2,813 2,480
* Amounts written back on tangible fixed assets 82 656
* Rental income 1,509 1,272
* Receipt of written-off receivables and removal
of liabilities 1,487 860
* Profit from disposal of fixed assets 3,195 549
* Sundry 10,834 6,100
T o t a L 79,993 37,037
Income from foreign exchange differences is reported on a gross basis. In respect of
the reported income from foreign exchange differences, there are opposing foreign exchange
losses, which should be evaluated as one item from an economic perspective.
The sundry other operating income includes a number of individual items.
( 1 0 ) C o s t o f S a l e s
*)
C o s t o f s a l e s ( K)
2 0 0 6
2 0 0 5
* Cost of raw materials, supplies
and purchased goods 10,205.979 7,999,975
* Cost of purchased servives 91,712 86,864
T o t a l 10,297,691 8,086,839
( 1 1 ) P e r s o n n e l E x p e n s e s
P e r s o n n e l e x p e n s e s ( K)
2 0 0 6
2 0 0 5
*)
* Wages and salaries 130,060 109,653
* Social contribution, pension charges
and support 25,301 21,942
* (of which for pensions) (6,365) (6,332)
T o t a l 155,361 131,595
* Marquard & Bahls AG , Holding
)
page 28_29

Pension charges include predominantly expenses arising from payments into defined
contribution pension schemes. The interest element from the valuation of pension obligations is
also reported under this item.
( 1 2 ) O t h e r O p e r a t i n g E x p e n s e s
O t h e r
o p e r a t i n g e x p e n s e s ( K)
2 0 0 6
2 0 0 5
*)
* Selling expenses 14,980 15,638
* Freight costs 35,335 12,041
* Service recharges 4,205 2,778
* Writing-off and valuation correction of receivables 4,550 4,692
* Storage costs 19,052 11,672
* Loss on disposal of fixed assets 938 3,182
* Auxiliary personnel expenses 6,458 6,845
* Third party costs 9,465 6,049
* Legal and advisory costs 9,753 10,014
* Foreign exchange losses 8,248 14,053
* Rent and occupancy costs 6,012 6,329
* Operating taxes 9,314 13,232
* Motoring expenses 6,298 5,647
* Insurance 6,351 5,885
* Bank charges 5,605 6,080
* Postage and communication costs 4,159 4,332
* Travel and representation costs 9,045 8,249
* Sundry 18,419 13,271
T o t a l 178,187 149,989
Sundry expenses include a number of individual items such as expenses for office supplies,
charges, subscriptions and IT expenses.
( 1 3 ) F i n a n c i a l R e s u l t
F i n a n c i a l r e s u l t ( K)
2 0 0 6
2 0 0 5
*)
* Income from investments 171 147
* Income from companies accounted for using the
equity method 2,690 3,088
I n v e s t m e n t r e s u l t 2,861 3,235
* Income from fixed asset investments in securities
and loans 813 278
* Other interest and similar income 5,849 4,804
* Interest and similar charges –44,560 –37,596
* Amounts written off of financial investments –259 –54
N e t i n t e r e s t –38,157 –32,568
* Change in value of derivative financial instruments 2,315 –1,220
* Gain/loss on revaluation of foreign currency loans 1,132 838
O t h e r f i n a n c i a l R e s u l t 3,447 –382
T o t a l –31,849 –29,715

In the year under review, income from companies accounted for using the equity
method includes profits amounting to € 3.7 million (prior year: € 3.7 million) and losses of € 1.0
million (prior year: € 0.6 million). The dividend distributions of the companies included “at equity”
amount to € 2.5 million (prior year: € 2.5 million).
Interest and similar charges relate predominantly to short-term trading finance in
respect of MABANAFT and long-term investment loans in respect of OILTANKING.
The result from the change in the value of derivative financial instruments comprises
positive changes in value of K€ 7,758 (prior year: K€ 2,500) and negative changes in value
of K€ 5,443 (prior year: K€ 3,900) in respect of currency and interest swaps as well as crosscurrency
interest swaps.
The gain/loss on revaluation of hedged foreign currency loans includes the income
statement proportion of the foreign currency valuation of a loan included under other long-term
liabilities (+ K€ 7,578, prior year: - K€ 10,268) and the fair value adjustment of a cross currency
interest swap (- K€ 6,446, prior year: + K€ 11,106) for the purpose of hedging the loan.
( 14 ) T a x o n P r o f i t s
Short and long-term deferred tax balances for German companies are determined using a total
tax rate of 40 %, comprising corporation tax of 25%, solidarity surcharge of 5.5 % and an average
trade tax rate of 18 %. The deferred tax calculations of the foreign companies were based on the
country-specific tax rates.
The total tax charge comprises the following:
T a x o n p r o f i t s ( K)
2 0 0 6
2 0 0 5
*)
* Current tax 14,539 13,985
* of which domestic tax 6,373 7,053
* of which foreign tax 8,166 6,932
*Deferred tax 16,468 7,696
* of which domestic deferred tax 6,516 –3,015
* of which foreign deferred tax 9,952 10,711
T a x o n P r o f i t s 31,007 21,681
The effective tax rate in the 2006 financial year amounts to 17 %. An analysis of the
difference between the actual charge and the expected tax on profits arising from a consolidated
tax rate of 40 %, comprising corporation tax, solidarity surcharge and trade tax is set out below:
* Marquard & Bahls AG , Holding
)
page 30_31

Reconciliation of theoretical
to actual income tax expense ( K)
2 0 0 6
2 0 0 5
*)
* Group profit before tax 181,254 82,817
* Expected tax on profits with a group tax rate of 40 % –72,502 –33,127
* Differences from varying tax rates 15,298 8,661
* Trade tax effects –1,038 –809
* Adjustment of deferred tax balances as a result of changes in tax rates 1,528 –573
* Non-taxable income 30,066 10,138
* Permanent differences –859 860
* Non-deductible expenses –3,098 –2,368
* Tax from previous years 915 –191
* Movements from valuation adjustments to
deferred tax assets –1,300 –5,900
* Results from equity investments –284 997
* Other tax effects 656 –80
* Consolidation effects –389 711
T a x o n P r o f i t s –31,007 –21,681
In accordance with the balance sheet orientated determination of deferred tax balances,
the following deferred tax assets arise under IFRS for the individual balance sheet items:
D e f e r r e d t a x a s s e t s ( K)
2 0 0 6
2 0 0 5
*)
* Intangible assets 852 290
* Other non-current assets 205 354
* Other participating interests and remaining investments 2,604 0
* Receivables and other assets 4,754 1,068
* Tax losses brought forward and tax credits 35,880 33,732
* Provisions and liabilities 42,467 30,472
* Other 5,439 4,082
S u b - T o t a l 92,201 69,998
* (of which long-term) (47,414) (43,972)
* Valuation corrections –30,451 –27,529
* Offsetting in individual companies –42,815 –24,948
d e f e r r e d T a x A s s e t s 18,935 17,521
Due to the results of the past and expectations regarding similar results in the future,
it is probable that future taxable profits are sufficient for the realisation of the deferred tax
assets. In respect of the element of deferred tax assets for which this assumption is not valid, a
corresponding valuation write-down was applied.

In accordance with the balance sheet orientated determination of deferred tax balances,
the following deferred tax liabilities arise under IFRS for the individual balance sheet items:
D e f e r r e d t a x l i a b i l i t i e s ( K)
2 0 0 6
2 0 0 5
*)
* Intangible assets 202 239
* Tangible fixed assets 85,434 95,670
* Other participating interests and remaining investments 301 1,993
* Receivables and other assets 37,472 16,200
* Provisions and liabilities 17,605 7,965
* Other 9,598 2,042
S u b - T o t a l 150,612 124,109
* (of which long-term) (101,358) (93,893)
* Offsetting in individual companies –42,815 –24,948
D e f e r r e d t a x L i a b i l i t i e s 107,797 99,161
The amount of tax losses not recognised is set out below:
T a x l o s s e s ( K)
2 0 0 6
2 0 0 5
* Domestic losses
* Corporation tax 7,704 12,776
* Trade tax 77,615 68,204
* Foreign losses 44,983 35,681
The domestic losses can be carried forward indefinitely; the foreign losses can
predominantly be carried forward indefinitely. Foreign losses of K€ 9,346 expire from 2011 and
later.
It is assumed that future profit distributions and disposals of participating interests
will not give rise to material tax charges. Consequently, no deferred tax liabilities have been
recognised in respect of these items.
In total, deferred tax balances of K€ 475 were recognised without passing through the
income statement. In doing so, deferred taxes of K€ 624 from the fair value adjustment of interest
swaps and K€ 1,445 from the cash flow hedging of foreign net investments was reported directly
to the reserve for changes in value without passing through the income statement. An amount
of K€ 2,544 was recorded on the foreign currency offset account without passing through the
income statement.
* Marquard & Bahls AG , Holding
)
page 32_33

( 1 5 ) A v e r a g e E m p l o y e e N u m b e r s
During the 2006 financial year, MARQUARD & BAHLS had an average of 3,798 employees
(prior year: 3,707 employees), of which an average of 752 employees (prior year: 529 employees)
were in joint ventures. Included in the total number of employees are 946 employees (prior year:
1,084 employees), of which 804 are industrial employees (prior year: 954 industrial employees),
of the Moldavian group company.
The structure of the average employee numbers of the group is set out below:
2 0 0 6 2 0 0 5
A v e r a g e e m p l o y e e n u m b e r s
Number % Number %
* Employees
* Industrial 2,193 58 2,248 61
* Salaried 1,605 42 1,459 39
T o t a l 3,798 100 3,707 100
* Distribution by Region
* Germany 721 19 709 19
* Europe (excluding Germany) 1,573 41 1,672 45
* North America 377 10 331 9
* South America 500 13 482 13
* Asia 627 17 513 14
T o t a l 3,798 100 3,707 100
* Distribution by Business Segment
* Mabanaft 1,494 39 1,601 43
* Oiltanking 1,942 51 1,780 48
* Skytanking 235 6 186 5
* Other segments 127 3 140 4
T o t a l 3,798 100 3,707 100
108,200,000 km
D i s t a n c e S u n – V e n u s
O u r f o c u s i s n o t s h o r t - t e r m p r o f i t m a x i m i z a t i o n , b u t o n l o n g - t e r m ,
p r o f i t a b l e g r o w t h .

Commentary
o f M a r q u a r d & B a h l s A G 2006
C o m m e n t a r y o n t h e C o n s o l i d a t e d B a l a n c e S h e e t
( 1 6 ) I n t a n g i b l e F i x e d A s s e t s
I n t a n g i b l e
f i x e d a s s e t s
( K)
Licences,
trade and
similar
rights
Goodwill
Advance
payments made
on intangible
assets
T o t a l
*)
Purchase cost
As at 01.01.2005 38,591 0 70 38,661
* Change in consolidated
group membership 5 2,777 0 2,782
* Foreign exchange movements 1,210 0 0 1,210
* Additions 3,151 1,348 7 4,506
* Disposals –1,244 0 0 –1,244
* Transfers 169 0 –49 120
As at 31.12.2005 41,882 4,125 28 46,035
* Change in consolidated
group membership 870 1 0 871
* Foreign exchange movements –1,208 0 0 –1,208
* Additions 1,285 0 18 1,303
* Disposals –1,523 0 0 –1,523
* Transfers 5 –326 –28 –349
As at 31.12.2006 41,311 3,800 18 45,129
Amortisation
As at 01.01.2005 16,596 0 0 16,596
* Change in consolidated
group membership 1 0 0 1
* Foreign exchange movements 777 0 0 777
* Amortisation 2005 3,938 14 0 3,952
* Disposals –763 0 0 –763
* Transfers 0 0 0 0
As at 31.12.2005 20,549 14 0 20,563
* Change in consolidated
group membership –173 0 0 –173
* Foreign exchange movements –768 0 0 –768
* Amortisation 2006 4,989 88 0 5,077
* Disposals –1,288 0 0 –1,288
* Transfers –40 0 0 –40
As at 31.12.2006 23,269 102 0 23,371
Net book value 31.12.2006 18,042 3,698 18 21,758
Net book value 31.12.2005 21,333 4,111 28 25,472
Net book value 31.12.2004 21,995 0 70 22,065
* Marquard & Bahls AG , Holding
)
Seite 34_35

As at 31 December 2005, intangible fixed assets included an amount of K€ 2,777 in
respect of a difference arising from a preliminary purchase price allocation which was allocated
in the prior year as goodwill arising from the capital consolidation of a Belgian subsidiary
acquired in 2005 in the aviation fuelling segment. In 2006, K€ 326 of this difference was allocated
to an equity accounted investment of this subsidiary. The remaining difference of K€ 2,451 was
conclusively assigned to goodwill.
( 17 ) T a n g i b l e F i x e d A s s e t s
T a n g i b l e
f i x e d a s s e t s
( K)
Land
and
buildings
Technical
plant and
machinery
Other assets,
operating
and
office
equipment
Advance
payments
and assets
under
construction
T o t a l
Purchase cost
As at 01.01.2005 147,693 1,081,058 66,768 64,468 1,359,987
* Change in consolidated
group membership 0 3,156 529 331 4,016
* Foreign exchange movements 4,263 62,139 3,010 2,153 71,565
* Additions 6,038 60,791 8,117 74,420 149,366
* Disposals –368 –9,353 –6,761 –99 –16,581
* Transfers –2,634 76,167 1,463 –75,155 –159
As at 31.12.2005 154,992 1,273,958 73,126 66,118 1,568,194
* Change in consolidated
group membership –5,213 –58,809 –923 2,925 –62,020
* Foreign exchange movements –3,866 –37,703 –2,038 –2,538 –46,145
* Additions 4,598 53,686 8,710 131,080 198,074
* Disposals –286 –10,004 –5,099 –185 –15,574
* Transfers 6,549 80,197 343 –87,066 23
As at 31.12.2006 156,774 1,301,325 74,119 110,334 1,642,552
Depreciation
As at 01.01.2005 58,176 467,923 42,039 385 568,523
* Change in consolidated
group membership 0 2,682 276 0 2,958
* Foreign exchange movements 656 21,632 1,591 40 23,919
* Depreciation 2005 5,935 52,376 6,642 55 65,008
* Disposals –300 –5,751 –4,446 –55 –10,552
* Write-backs 0 –656 0 0 –656
* Transfers –6,224 6,241 –16 0 1
As at 31.12.2005 58,243 544,447 46,086 425 649,201
* Change in consolidated
group membership –2,941 –27,690 –747 0 –31,378
* Foreign exchange movements –796 –13,651 –1,084 –50 –15,581
* Depreciation 2006 5,841 56,503 6,939 0 69,283
* Disposals –190 –7,880 –3,496 –110 –11,676
* Write-backs –82 0 0 0 –82
* Transfers 462 –443 21 0 40
As at 31.12.2006 60,537 551,286 47,719 265 659,807
Net book value 31.12.2006 96,237 750,039 26,400 110,069 982,745
Net book value 31.12.2005 96,749 729,511 27,040 65,693 918,993
Net book value 31.12.2004 89,517 613,135 24,729 64,083 791,464
The significant investments in technical plant and machinery relate to increases in
capacity in the tank storage facilities in Singapore, Malta, Amsterdam and the US Gulf coast. In
addition, investments were also made in petrol stations and heat generating equipment.

Technical plant and machinery includes heat generating equipment amounting to
K€ 189 (prior year: K€ 1,899) that has been capitalised in the balance sheet under finance
leases.
The additions to assets under construction relate principally to commenced capacity
expansion measures at the tank storage locations in Amsterdam, Antwerp, Malta and also the
US Gulf coast.
( 1 8 ) I n v e s t m e n t s a c c o u n t e d f o r u n d e r t h e
E q u i t y M e t h o d a n d o t h e r I n v e s t m e n t s
I n v e s t m e n t s
( K)
Equity
accounted
entities
Interests in
affiliated
companies
Participation
interests
Loans to
entities in
which a
participating
interest is
held
Fixed asset
security
investments
Other
loans
Other
investments
T o t a l
Purchase cost
As at 01.01.2005 24,248 8,421 126 1,702 134 3,781 14,164
* Change in consolidated
group membership 390 -3,286 0 0 335 0 -2,951
* Foreign exchange movements 388 247 0 0 16 127 390
* Additions 4,229 1,084 58 1,859 0 709 3,710
* Disposals -2,558 -2,530 -51 0 -3 -1,656 -4,240
* Transfers -3,355 3,349 6 -1,678 0 1,719 3,396
As at 31.12.2005 23,342 7,285 139 1,883 482 4,680 14,469
* Change in consolidated
group membership -1,240 -4,026 0 0 0 8,770 4,744
* Foreign exchange movements -318 108 -5 -1 -12 -44 46
* Additions 5,064 7,909 3,715 438 2 376 12,440
* Disposals -3,204 -51 0 0 -106 -2,433 -2,590
* Transfers 325 0 0 148 0 -148 0
As at 31.12.2006 23,969 11,225 3,849 2,468 366 11,201 29,109
Amounts written off
As at 01.01.2005 4,055 3,697 28 0 108 963 4,796
* Change in consolidated
group membership 0 0 0 0 0 0 0
* Foreign exchange movements 5 0 0 0 16 0 16
* Write-downs 2005 649 0 0 0 0 54 54
* Disposals 0 -2,392 -28 0 0 -29 -2,449
* Transfers -67 67 0 0 0 0 67
* Write-backs 0 0 0 0 0 0 0
As at 31.12.2005 4,642 1,372 0 0 124 988 2,484
* Change in consolidated
group membership -3 -67 0 0 0 0 -67
* Foreign exchange movements -3 0 0 0 -12 -1 -13
* Write-downs 2006 1,020 0 0 109 0 150 259
* Disposals 0 -51 0 0 -107 -167 -325
* Write-backs -548 0 0 0 0 0 0
As at 31.12.2006 5,108 1,254 0 109 5 970 2,338
Net book value 31.12.2006 18,861 9,971 3,849 2,359 361 10,231 26,771
Net book value 31.12.2005 18,700 5,913 139 1,883 358 3,692 11,985
Net book value 31.12.2004 20,193 4,724 98 1,702 26 2,818 9,368
* Marquard & Bahls AG , Holding
)
Seite 36_37

*) O t h e r I n v e s t m e n t s
Investments in affiliated companies and other participating investments are stated at their
acquisition cost less impairment write-downs.
The composition of other loans is as follows:
O t h e r i n v e s t m e n t s
Nominal amount
Recipient
Term
Interest rate
( %)
Book value
( K)
*)
* KE 8,770 Oiltanking Stolthaven 2007–2018 5,735 8,770
* KGBP 35 Business partner 2007 0 35
* KUSD 1,739 Petroperu 2007–2010 0 660
* KE 766 Various Various Various 766
T o t a l 10,231
The loan to Petroperu does not bear interest. It was discounted at 8.25 %.
The other loans to various recipients relate mainly to loans to petrol station tenants
(K€ 217) and loans amounting to K€ 439 provided as finance in the heating contracting segment.
All of the other loans bear interest at market rates.
( 19 ) N o n - c u r r e n t R e c e i v a b l e s a n d o t h e r
n o n - c u r r e n t A s s e t s
The non-current receivables and other assets comprise the following items:
*)
N o n - c u r r e n t r e c e i v a b l e s a n d
o t h e r n o n - c u r r e n t a s s e t s ( K)
2 0 0 6
2 0 0 5
* Trade accounts receivable 238 162
* Receivables from employee benefit insurance policies 5,524 5,651
* Tax receivables 29,477 12,070
* Prepaid expenses 5,294 5,384
* Other long-term receivables 2,202 175
T o t a l 42,735 23,442
The non-current tax receivables relate solely to taxes on profits. They include mainly
investment tax credits amounting to K€ 29, 474 (prior year: K€ 10,697).
The non-current prepaid expenses relate predominantly to rent paid in advance and
investment subsidies to petrol station tenants.

( 2 0 ) I n v e n t o r i e s
Included under inventories are goods for resale and, to a small extent, raw materials and supplies
as well as replacement parts, additives and heating oil dye. In the case of companies that are
classified as commodity broker traders, goods for resale are stated at their attributable fair value
(market prices) less sale costs (€ 425 million, prior year: € 395 million); the remaining goods
for resale and raw materials and supplies are stated at their purchase cost or fair value at the
balance sheet date, if it is lower than the purchase cost. At the balance sheet date, write-downs
to the lower attributable fair value amounting to € 18.5 million (prior year: € approximately
10 million) were applied.
( 2 1 ) C u r r e n t R e c e i v a b l e s a n d o t h e r
c u r r e n t A s s e t s
*)
C u r r e n t r e c e i v a b l e s
a n d o t h e r c u r r e n t a s s e t s ( K)
2 0 0 6
2 0 0 5
* Trade accounts receivable 536,728 624,530
* Receivables from affiliated companies 1,440 1,236
* Receivables from associated companies 3,710 3,023
* Receivables from entities in which a participating interest
is held 9 0
* Tax receivables 24,298 22,165
* Other receivables and current assets 27,824 29,165
* Receivables from construction contracts 8,596 5,677
T o t a l 602,605 685,796
In the main, the current receivables and other current assets do not bear interest or
bear interest at low market rates.
Accounts receivable from affiliated companies and from associated companies include
a small amount of trading receivables.
The tax receivables arise predominantly from tax refund claims in respect of advance
payments of tax, which exceed the actual tax liabilities for the year under review, as well as
sales tax. In total, K€ 14,991 (prior year: K€ 12,941) relates to taxes on profits.
Other current receivables and other assets include i. a. receivables from broker transactions
(K€ 2,813, prior year: K€ 8,008), supplier debit balances (K€ 1,816, prior year: K€ 1,220),
damage compensation claims (K€ 4,848, prior year: K€ 6,347), and receivables from a number
of individual circumstances. Also included are current prepaid expenses amounting to K€ 9,106
(prior year: K€ 8,135).
Revenues included under receivables from construction contracts in the period under
review amounted to K€ 43,529 (prior year: K€ 43,528). In respect of projects running at the
balance sheet date, the total of the costs incurred and reported profits amounts to K€ 8,178
(prior year: K€ 4,201). No advance payments received were reported at the balance sheet date
(prior year: K€ 35), the amount of receivables from retentions amounted to K€ 419 (prior year:
K€ 1,061).
* Marquard & Bahls AG , Holding
)
Seite 38_39

Valuation write-downs to current receivables and other assets in the amount of € 12.8
million (prior year: € 13.6 million) have been made. The related expense charged under other
operating expenses in the year under review amounts to € 4.6 million (prior year: € 4.7 million).
( 2 2 ) D e r i v a t i v e F i n a n c i a l I n s t r u m e n t s
The derivative financial instruments relate to interest swaps, cross-currency interest swaps, forward
currency contracts and commodity forward contracts, inward and outward supply contracts,
and similar contracts, as well as embedded derivatives. Hedge Accounting under IAS 39 is
not applied.
The interest derivatives relate to an interest swap in respect of a nominal amount of
€ 4,000,000. The market value at 31 December 2006 amounts to K€ 103 (prior year: K€ 0).
The cross-currency interest swaps comprise the following:
C r o s s - c u r r e n c y
i n t e r e s t
s w a p
Currency
Nominal
volume
31/12/2006
Market value Nominal Market value
( K) volume
( K)
31/12/2006 31/12/2005 31/12/2005
* Cross-currency interest swap USD 67,626,000 1,847 0 0
T o t a l 1,847 0
*)
The following foreign currency forward contracts are reported:
F o r e i g n
c u r r e n c y f o r w a r d
c o n t r a c t s
Currency
Amount
31/12/2006
Market value
Market value
( K) Amount
( K)
31/12/2006 31/12/2005 31/12/2005
*)
* Sale SGD 46,150,000 20 0 0
* Sale USD 82,254,363 1,083 0 0
* Sale CHF 13,840,000 18 14,890,000 10
* Purchase SGD 4,500,000 14 0 0
* Purchase USD 7,500,000 2 21,140,416 137
M a r k e t v a l u e s 1,137 147
The composition of the commodity forward contracts is as follows:
C o m m o d i t y f o r w a r d c o n t r a c t s
( K)
Market value
31/12/2006
Market value
31/12/2005
*)
* Capital market positions 11,538 4,188
* Swaps 2,134 10,066
* Purchase and sale contracts 74,762 5,642
* Embedded derivatives 13,004 2,404
T o t a l 101,438 22,300

( 2 3 ) S e c u r i t i e s
Securities are stated at their amortised cost. They relate to fixed interest bearing securities,
which fall due in 2007.
( 2 4 ) C a s h a n d C a s h E q u i v a l e n t s
Cash and cash equivalents include cheques, cash balances and bank account balances. The bank
account balances bear interest at normal market rates.
( 2 5 ) E q u i t y
*) S h a r e C a p i t a l
The fully paid share capital of MARQUARD & BAHLS AG amounts to € 75,000,000. It is subdivided
into 2,500,000 no par value shares.
*) A d d i t i o n a l P a i d i n C a p i t a l
Additional paid in capital includes an amount of € 5,343,750 of the group parent company
reported in accordance with section 272 para. 2 HGB and SGD 6,250,000 of the group apportioned
additional paid in capital of Oiltanking Odfjell Pte., which relates to the introduction of capital
by the external shareholders to strengthen the capital base in 2001. Positive goodwill balances
arising on consolidation from subsidiaries acquired up until 31 December 2003 have been offset
in this account.
*) R e t a i n e d E a r n i n g s
The retained earnings reserve encompasses the IFRS conversion reserve created at the time of
conversion to IFRS on 1 January 2004 as well as other retained earnings reserves accounted for
under the local accounting law of the relevant companies. They include predominantly profit
allocations from the result for the year or earlier years, against which, in particular, positive
goodwill balances on consolidation of subsidiaries acquired up until 31 December 2003 have
been offset.
*) R e s e r v e f o r C h a n g e s i n V a l u e
The reserve for changes in value developed in 2005 and 2006 as follows:
R e s e r v e
f o r c h a n g e s
i n v a l u e ( K) 01/01/2 0 0 5
Change in
cash flow
hedge re:
interest
swaps
Change in
cash flow
hedge re:
foreign net
investments Other 31/12/2 0 0 5
*)
* Fair value of cash flow hedges -4,972 2,836 -4,545 0 -6,681
* Other 0 0 0 2 2
* Deferred tax 1,426 -670 1,818 0 2,574
T o t a l -3,546 2,166 -2,727 2 -4,105
* Marquard & Bahls AG , Holding
)
Seite 40_41

R e s e r v e
f o r c h a n g e s
i n v a l u e ( K) 01/01/2 0 0 6
Change in
cash flow
hedge re:
interest
swaps
Change in
cash flow
hedge re:
foreign net
investments Other 31/12/2 0 0 6
*)
* Fair value of cash flow hedges -6,681 1,525 3,613 0 -1,543
* Other 2 0 0 0 2
* Deferred tax 2,574 -624 -1,445 0 505
T o t a l -4,105 901 2,168 0 -1,036
In the 2006 financial year, an amount of K€ 316 was transferred from the reserve for
changes in value to the income statement.
*) R e s e r v e f o r R e v a l u a t i o n
The reserve for revaluation is connected with the transition consolidation, which was brought in
to the consolidated financial statements for the first time under the full consolidation principles
in the 2004 financial year after the increase in the holding in voting rights of a company from
49 % to 100 %. The change in equity of the company determined under IFRS, to the extent that
it relates to the purchase of the first tranche, was recorded in the reserve for revaluation.
*) P r o f it f o r t h e Y e a r
For distributions to the shareholders of MARQUARD & BAHLS AG, according to the German
commercial code, the result stated in the annual financial statements of MARQUARD & BAHLS AG
under German accounting law is the authoritative amount.
For the 2006 financial year, the board of directors of MARQUARD & BAHLS AG proposes
to distribute a dividend of approximately € 11.8 million (prior year: € 10.8 million) and retain
the remaining profit for the year in reserves. This corresponds to a dividend of € 4.72 per share.
As a result of the distribution of the dividend, there are no consequences for MARQUARD &
BAHLS in respect of taxes on profits. The recognition of the dividend as a liability under financial
liabilities will not take place until after the passing of the resolution at the annual general
shareholders’ meeting of MARQUARD & BAHLS AG.
*) Fo r e ig n C u r r e n c y C o n v e r sio n Diffe r e n c e s
The difference arising from foreign currency conversion which reflects movements in exchange
rates and their effects on tangible fixed assets, provisions and various components of equity was
offset with an amount of K€ 1,300 from the valuation of foreign net investments not passing
through the income statement. Deferred tax of K€ 520 in respect of this item was also reported
under the foreign currency offset account without passing through the income statement.
*) M i n o r i t y I n t e r e s t
Profits and losses from the result for 2006 relating to minority interest of € 16.6 million (prior year:
€ 9.6 million) were accounted for. In total, the composition of minority interests is set out below:
*)
M i n o r i t y
i n t e r e s t ( K)
2 0 0 6
2 0 0 5
* Share of minority interest in equity 40,013 31,414
* Share of minority interest in profit for the year 9,982 7,482
T o t a l 49,995 38,896

( 2 6 ) L o n g - t e r m L i a b i l i t i e s
Long-term liabilities comprise the following:
*)
L o n g - t e r m l i a b i l i t i e s ( K)
2 0 0 6
2 0 0 5
* Bank liabilities 252,139 236,722
* Liabilities to associated entities 951 0
* Other long-term liabilities 146,196 163,092
T o t a l 399,286 399,814
Other long-term liabilities include principally a private loan issued in 2004 in the USA,
which runs until 2019 and has a nominal value of USD 130 million. A partial amount of USD 30
million is repayable from the year 2010, with the remaining amount falling due at the end of the
loan. In addition, long-term liabilities arise from leasing contracts classified as finance leases as
well as income collected in advance in the heating contracting segment.
All of the liabilities bear interest. The interest rates lie in the range of 3.59 % to 6.04%.
The reported loans with interest rates below the market rate are immaterial in their amount and
stated at nominal value in the balance sheet.
At 31 December 2006, the financial liabilities have the following maturities:
F i n a n c i a l l i a b i l i t i e s ( million)
3 1 / 1 2 / 2 0 0 6
*)
* 2008 42
* 2009 31
* 2010 127
* from 2011 199
T o t a l 399
At the balance sheet date, MARQUARD & BAHLS has confirmed unused credit lines
with banks with a term of under one year amounting to € 536 million (prior year: € 778 million)
and long-term unused credit lines of € 510 million (prior year: € 100 million).
149,598,000,000 km
D i s t a n c e E a r t h – S a t u r n
W e k n o w t h a t c h a n g e i s t h e n a t u r e o f b u s i n e s s , a n d w e l o o k
t o i t w i t h c o n f i d e n c e . .
* Marquard & Bahls AG , Holding
)
Seite 42_43

( 2 7 ) L o n g - t e r m P r o v i s i o n s
Long-term provisions developed as follows:
L o n g - t e r m
p r o v i s i o n s
( K)
Pensions
Compensation
Environment
Dismantling
costs
Other
T o t a l
*)
0 1 / 0 1 / 2 0 0 6 36,336 6,107 2,296 29,419 714 74,872
* Change in membership of the
consolidated group -870 -2,685 0 -954 -67 -4,576
* Exchange differences -180 -1 0 -69 -55 -305
* Consumption -1,915 -85 0 -47 -585 -2,632
* Reversal -92 0 0 -26 0 -118
* Increase 3,089 556 0 2,813 1,421 7,879
* Adjustment -47 0 0 0 0 -47
3 1 / 1 2 / 2 0 0 6 36,321 3,892 2,296 31,136 1,428 75,073
The environmental provisions relate to the elimination of toxic waste, rectification and
water pollution control measures. Further, these provisions include costs for decontamination,
emissions control and inspection.
The dismantling costs relate to the obligations arising on the expiry of rental contracts
for tank stores, petrol stations and heating supply contracts to remove the installed tank facilities,
petrol stations and heat generation equipment.
In respect of the dismantling costs and environmental provisions, the outflow of
economic benefits is long-term and the provisions are therefore discounted and reported in
the balance sheet under long-term liabilities. Uncertainties exist in particular in relation to the
dismantling costs regarding the actual costs arising.
Other provisions relate to a number of individual items.
Within the long-term provisions, an amount of approximately € 2 million falls due for
payment within one year.
( 2 8 ) P r o v i s i o n s f o r P e n s i o n s a n d
s i m i l a r O b l i g a t i o n s
Provisions for pensions relate exclusively to provisions for defined benefit pension obligations.
They relate principally to benefit entitlements under the company pension scheme, which
MARQURD & BAHLS has granted to employees in Germany in the past. In addition, pension
provisions relating to pension obligations arising from conversion of salaries amounting to
K€ 5,473 (prior year: K€ 5,828) are included.
The amount of the pension benefits is based on the number of years’ service and
income. The benefit entitlements in Germany are – with few exceptions – financed exclusively by
provisions. In relation to entitlements arising from salary conversions, employee benefit insurance
policies have been entered into.
At approximately 84 % (prior year: 86 %), the predominant part of the pension provision
relates to Germany. A total of 204 domestic employees (prior year: 207) are entitled to pensions.

The valuation and balance sheet recognition of the pensions obligations and the
expenditure necessary to meet these obligations is carried out in accordance with the projected
unit credit method prescribed by IAS 19 “Employee Benefits”. Under this method, not only the
known pensions and acquired benefits as at the balance sheet date are accounted for, but also
the expected future growth of these determining values.
The development of the present value of the benefits arising from pension commitments,
all of which have been determined in accordance with IAS 19, taking account of future
salary increases is set out in the following table:
D e v e l o p m e n t
o f p r e s e n t v a l u e ( K)
2 0 0 6
2 0 0 5
D e f i n e d b e n e f i t o b l i g a t i o n
a t t h e B e g i n n i n g o f t h e Y e a r 42,330 39,100
* New commitments 759 426
* Change in membership of the consolidated group -657 392
* Service cost: present value of the benefit earned in the
financial year 449 594
* Interest charge on already acquired entitlements 2,105 1,912
* Actual gains and losses 64 1,450
* Pension payments –1,499 –1,544
D e f i n e d b e n e f i t o b l i g a t i o n
a t t h e E n d o f t h e Y e a r 43,551 42,330
*)
A reduction of 0.10 percentage points in the interest rate to 4.90 % increases the
above stated defined benefit obligation (DBO) at the valuation date of 31.12.2006 to K€ 44,074.
This represents an increase of 1.20 %.
The long-term development of the defined benefit obligation from the time of conversion
to the IFRS accounting regulations stated in the balance sheet under pension provisions is set
out in the table below:
D e v e l o p m e n t o f
f u n d e d s t a t u s
( K) 31/12/2 0 0 6 31/12/2 0 0 5 31/12/2 0 0 4 31/12/2 0 0 3
* Defined benefit obligation 43,551 42,330 39,100 32,871
* Scheme assets 1,464 0 0 0
* Funded status 42,087 42,330 39,100 32,871
* Gains and losses not yet reported in
*)
the income statement 5,766 5,994 4,698 0
B a l a n c e s h e e t a p p r o a c h 36,321 36,336 34,402 32,871
Obligations for defined benefit entitlements amounting to K€ 1,464 were reduced
by the present value of existing employee benefit insurance policies that are pledged to the
employees; the amount by which the present value of this scheme asset exceeds the pension
provision was charged to the income statement in the amount of K€ 59.
* Marquard & Bahls AG , Holding
)
Seite 44_45

The total expense for defined benefit pension commitments, reported under personnel
expenses, comprises the following:
*)
N e t p e n s i o n c h a r g e ( K)
2 0 0 6
2 0 0 5
* Service cost: present value of the benefits earned in the
financial year 449 594
* Interest charge: increase in the present value of already
acquired entitlements 2,105 1,912
* Amortisation of actuarial losses 288 154
T o t a l 2,842 2,660
For the 2007 financial year, a total expense for defined benefit pension obligations of
approximately € 3 million is anticipated.
Apart from the expected return on assets, the assumptions on which the costs
and actuarial valuation of the obligations are based are set out as weighted averages in the
following table:
Assumptions for costs and
actuarial valuation ( %)
Germany
2 0 0 6
Germany
2 0 0 5
Foreign
2 0 0 6
Foreign
2 0 0 5
* Discount rate at year-end 5.00 5.00 5.50 5.50
* Long-term salary increases 2.00 2.00 3.50 3.50
* Long-term pension expense 2.00 2.00 0.00 0.00
* Contribution basis dynamic 1.25 1.25 0.00 0.00
* Fluctuation 0.00 0.00 0.00 0.00
The assumptions applied for each country were determined under uniform principles on
the basis of the significant economic conditions. Due to the uniform balance sheet recognition
of the pension obligations of MARQUARD & BAHLS, a uniform discount rate was applied outside
of Germany.
( 2 9 ) C u r r e n t L i a b i l i t i e s
Current liabilities comprise the following:
( K)
2 0 0 6
2 0 0 5
*)
F i n a n c i a l l i a b i l i t i e s
* Bank liabilities 280,391 363,439
O t h e r c u r r e n t l i a b i l i t i e s
* Trade accounts payable 556,628 538,870
* Current tax liabilities 126,142 140,345
* Liabilities to affiliated companies 1,228 750
* Liabilities to associated entities 404 826
* Liabilities to entities in which a participating interest
is held 1 0
* Liabilities from construction contracts 7,989 1,840
* Other current liabilities 35,418 25,425
T o t a l 727,810 708,056

Bank liabilities include current account overdraft balances and the current element
of capital repayments on long-term loans. The liabilities bear interest at between 4.48 % and
6.50 %.
None of the trade accounts payable bear interest.
The tax liabilities relate to mineral oil tax, sales tax (VAT) and customs duties as well
as payroll and church taxes. In addition, current tax liabilities included liabilities for taxes on
profits amounting to K€ 574 (prior year: K€ 154).
The other current liabilities, to the extent of K€ 2,636 (prior year: K€ 2,448) relate to
other loans, K€ 5,183 (prior year: K€ 5,114) relates to advanced payments received, K€ 4,504
(prior year: K€ 2,929) relates to subscriptions to the national strategic petroleum reserve,
K€ 2,795 (prior year: K€ 894) relates to customer credit balances and K€ 6,265 (prior year:
K€ 7,475) relates to liabilities in connection with wages and salaries. A number of individual
liabilities are also included. The liabilities are predominantly non-interest bearing.
( 3 0 ) L i a b i l i t i e s f r o m D e r i v a t i v e
F i n a n c i a l I n s t r u m e n t s
Liabilities from derivative financial instruments comprise foreign currency and interest swaps,
cross currency interest swaps and commodity forward contracts. With the exception of cash
flow hedges for some interest swaps, hedge accounting under IAS 39 is not applied.
The composition of the currency swaps is as follows:
C u r r e n c y
s w a p s
Currency
Amount
31/12/2006
Fair Value
Fair Value
( K) Amount
( K)
31/12/2006 31/12/2005 31/12/2005
*)
* Sale SGD 46,200,000 -152
* Sale USD 7,584,642 -7 66,557,927 -265
* Purchase SGD 29,000,000 -2 3,000,000 -6
* Purchase USD 197,799,534 -4,526 3,000,000 -1
F a i r V a l u e -4,535 -424
At the balance sheet date, the following interest swaps were in existence:
I n t e r e s t
s w a p s
Currency
Nominal
Volume
31/12/2006
Fair Value Nominal Fair Value
( K) Volume
( K)
31/12/2006 31/12/2005 31/12/2005
EURO 70,071,119 -1,390 99,226,157 -4,364
SGD 78,785,347 -1,261 87,051,667 -2,081
USD 5,000,000 -1 310,000 -61
-2,652 -6,506
* Marquard & Bahls AG , Holding
)
Seite 46_47

At the balance sheet date, cross currency interest swaps comprised the following:
C r o s s c u r r e n c y
i n t e r e s t
s w a p
Currency
Nominal
Volume
31/12/2006
Fair Value Nominal Fair Value
( K) Volume
( K)
31/12/2006 31/12/2005 31/12/2005
SGD 96,000,000 -953 0 0
USD 207,064,820 -20,407 170,663,000 -16,377
HUF 1,120,000,000 -77 1,280,000,000 -41
-21,437 -16,418
The composition of liabilities from commodity futures transactions is as follows:
C o m m o d i t y
f u t u r e s t r a n s a c t i o n s
( K)
Fair Value
31/12/2006
Fair Value
31/12/2005
* Capital market positions -12,844 -4,002
* Swaps -2,666 -9,116
* Purchase and sale contracts -41,160 -669
* Embedded Derivatives -366 -21,635
* Other -233 -188
*) T o t a l -57,269 -35,610
In some cases, hedge accounting under IAS 39 was applied to interest swaps. For all
other derivative financial instruments, hedge accounting was not applied.
( 3 1 ) T a x P r o v i s i o n s
Tax provisions developed as follows:
T a x p r o v i s i o n s
( K)
*)
0 1 / 0 1 / 2 0 0 6 21,205
* Change in membership of consolidation group -2,155
* Consumption -12,123
* Reversal -269
* Increase 9,883
* Foreign currency adjustments -737
3 1 / 1 2 / 2 0 0 6 15,804
The tax provisions relate to taxes on profits and other local taxes in the amount of
K€ 9,063 (prior year: K€ 13,408).

( 3 2 ) O t h e r P r o v i s i o n s
Other provisions developed as follows:
O t h e r
p r o v i s i o n s
( K)
Personnel
Environment
Late
Invoices
Return
Obligations
Other
T o t a l
*)
0 1 / 0 1 / 2 0 0 0 26,714 3,269 14,119 18,463 4,978 67,543
* Change in membership of
consolidation group -807 0 0 0 -5 -812
* Transfers 47 0 -10 0 10 47
* Exchange rate differences -166 0 -433 0 -85 -684
* Consumption -21,245 -330 -11,883 -18,131 -3,195 -54,784
* Reversal -1,058 0 -549 -332 -756 -2,695
* Increase 28,440 180 22,703 15,912 5,243 72,478
3 1 / 1 2 / 2 0 0 6 31,925 3,119 23,947 15,912 6,190 81,093
The provisions for personnel expenses include mainly provisions for wages, salaries and
social security contributions, pre-retirement arrangements, employment anniversary obligations
and other accrued personnel costs.
The provisions for environmental protection measures and reconstruction obligations
relate to the removal of toxic waste, rectification and water pollution control measures. These
provisions also include costs in respect of decontamination, emissions control and inspection.
The provision for return obligations relates to borrowed quantities of trading goods.
They are stated at fair value.
Other provisions relate to a number of individual items.
( 3 3 ) C o n t i n g e n t L i a b i l i t i e s
C o n t i n g e n t l i a b i l i t i e s ( K)
3 1 / 1 2 / 2 0 0 6 3 1 / 1 2 / 2 0 0 5
* Guarantees 9,525 14,600
* (of which, in respect of associated companies) (5,423) (9,780)
Up to the time of the preparation of the balance sheet, there were no claims arising
from guarantees.
Fixed assets with a book value of € 128 million (prior year: € 321 million) provide security
for liabilities by the granting of charges and encumbrances on real estate.
In addition, liabilities of the companies consolidated into the group financial statements
are secured by charges on inventories and investments. At 31 December 2006, their carrying value
amounts to approximately € 183 million (prior year: approximately € 45 million). Guarantees
have also been given and assignments on receivables granted.
* Marquard & Bahls AG , Holding
)
Seite 48_49

The secured liabilities relate to bank liabilities and trade accounts payable, as well as
return obligations.
( 3 4 ) O t h e r F i n a n c i a l O b l i g a t i o n s
Purchase order commitments in respect of investments at the balance sheet date amount to
approximately € 76 million (prior year: approximately € 36 million).
Rental and leasing charges in the 2006 financial year amounted to approximately
€ 19 million (prior year: approx. € 19 million). These expenses relate to the rental of floor-space
and buildings at tank storage facilities and petrol station sites as well as rent for administrative
offices. The analysis of future rental and leasing payments is set out below:
R e n t a l a n d
l e a s i n g p a y m e n t s
( million)
< 1 y e a r
1 – 5 y e a r
> 5 y e a r
* Future rental and leasing payments 18 69 179
On the exercise of existing rental agreement extension options, in particular for tank
storage locations, the annual rent expense increases by approximately € 28 million.
( 3 5 ) L e a s i n g
Via one of its subsidiaries in the heating contracting segment, the company is a lessee in respect
of heat generation equipment. The leasing contracts are normally entered into for a term of
15 years, corresponding to the heat supply contracts. The majority of the long-term leasing
contracts provide options for their extension, some leasing contracts include purchase options.
The obligations from leasing contracts during their non-cancellable rental period are set out in
the following table:
L e a s i n g
( K)
F i n a n c e L e a s e
O p e r a t e L e a s e
*)
* Term:
* < 1 year 36 395
* 1– 5 years 160 263
* > 5 years 63 0
T o t a l 259 658
* Included interest element -59
P r e s e n t V a l u e o f O b l i g a t i o n 200
( 3 6 ) E n v i r o n m e n t a l P r o t e c t i o n
The activities of MARQUARD & BAHLS are subject worldwide to all locally applicable environmental
protection laws and conditions. These usually include upper limits for the emission of
pollutants into the air and water as well as requirements for the handling of dangerous materials
and waste and their disposal. Additionally, as a result of legislation or precedents set by local
courts, companies or private individuals are able to make demands applicable to MARQUARD
& BAHLS. The board of directors assumes that the group acts in accordance with all applicable
environmental laws and requirements.

In order to confirm this, the board of directors of the parent company, Marquard & Bahls AG, has
put a framework of policies in place regarding the environment, health and safety and quality
(HSSE framework), which is binding worldwide on all operative units. The implementation of the
framework is reviewed by internal audit.
A group-wide information system provides all up to date necessary information to the
board of directors regarding significant events in respect of inventory holdings, handling and
transport of MARQUARD & BAHLS goods.
At 31 December 2006, MARQUARD & BAHLS was obligated in various locations under
the local authorities to rectify environmental damage. It is group policy to recognise provisions
for all costs for the rectification of environmental damage, provided that the claim is probable
and the costs can be realistically estimated. The provisions are adjusted through continual
investigation and from knowledge gained during the course of the rectification measures. The
amount of the individual provisions is influenced by factors such as the extent of the pollution,
the required rectification measures and the additional requirements of authorities, companies
or private individuals. The provisions for environmental damage measures amount in total to
€ 6.7 million in the year under review (prior year: € 9.4 million). Of this amount, the provision
for the largest individual case at group locations in Belgium amounts to € 3.6 million (prior year:
€ 5.9 million).
Potential changes in the law could, in the future, lead to MARQUARD & BAHLS being
exposed to further rectification requirements. From the current position, the company is unable
to provide a further estimate of the additional expense or the range of any possible expense
over and above the amounts already provided. The likelihood of such an expense being material
is considered to be small.
( 3 7 ) R e l a t e d P a r t y D i s c l o s u r e s
MARQUARD & BAHLS receives only an immaterial level of services from its non-consolidated
affiliated and associated companies and also provides services to them only to an immaterial
extent. The total income and expenses from such services supplied and received each amount to
less than K€ 100 (prior year: less than K€ 100).
In the 2005 and 2006 financial years, a shareholder of MARQUARD & BAHLS AG granted
two loans of € 2 million each to a group company, bearing interest at the market rate. The loans
fall due for repayment in 2010 and 2011. The interest charge amounts to K€ 111 (prior year:
K€ 33).
All goods and services supplied to and received from related parties were transacted at
prices as if they were with a third party (‘arm’s length’).
The remuneration of the ten members of the management of the company, comprising
the board of directors and authorised company representatives as well as the directors of the
companies OILTANKING GMBH and MABANAFT GMBH & CO. KG, and the three members of
the supervisory board amounted to K€ 13,847 (prior year: K€ 9,132). In addition, an amount of
K€ 80 (prior year: K€ 85) was charged in respect of management pension obligations.
* Marquard & Bahls AG , Holding
)
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In the 2006 financial year, an amount of K€ 8 (prior year: K€ 95) was charged in
respect of long-term obligations to other related parties.
existed:
At the balance sheet date, the following receivables from and payables to related parties
R e c e i v a b l e s
a n d p a y a b l e s ( K)
3 1 / 1 2 / 2 0 0 6 3 1 / 1 2 / 2 0 0 5
* Accounts receivable from affiliated and associated
companies 5,150 4,259
* Accounts payable to affiliated and associated
companies, as well as participating interests 1,633 1,576
* Other liabilities 4,000 2,000
* Liabilities to minority shareholders 0 74
* Other short-term provisions for obligations to
management 3,817 6,000
* Other long-term provisions for obligations to related
parties 2,251 2,253
* Long-term provisions for obligations to management 803 723
( 3 8 ) S u p ple m e n t a r y Dis clo s u r e s t o t h e C a s h Flo w
St a t e m e n t
The liquid assets reported in the cash flow statement relate exclusively to the cash and cash
equivalents stated in the balance sheet.
In the cash flow statement, cash movements for the 2006 financial year as well as for
the prior year are analysed, separated by cash in and out flows arising from ordinary activities,
investment activities, and financing activities. Effects arising from changes in group membership
and foreign exchange movements on cash balances are reported separately.
Under the item income taxes paid, payments to both domestic and foreign tax authorities
are reported.
Cash flows from investing activities include additions to tangible fixed assets and fixed
asset investments, as well as own work capitalised.
Reported under financial activities are funds received from capital increases and cash
out flows as a result of dividend payments.
Cash flows from ordinary activities include the effects of payments of taxes on profits
after tax refunds of € 27.8 million (prior year: € 31.0 million) as well as interest payments of
€ 43.0 million (prior year: € 32.4 million).
As a result of the sale of the 50% interest in Oiltanking Antwerp N.V. for a price of
€ 36.9 million, a cash flow of € 36.4 million arose from the assets of € 42.5 million (of which
cash of € 0.5 million) and liabilities of € 29.7 million being removed from consolidated net assets.

( 3 9 ) S ig n ific a n t Ev e n t s a f t e r t h e
B a l a n c e S h e e t D a t e
There are no significant events after the balance sheet date.
In April 2006, the new Bolivian government announced the nationalisation of the
country’s hydrocarbon resources as well as the businesses active in the production, transport,
refining, storage and distribution of mineral oil. This nationalisation is to be implemented
via majority holdings of the Bolivian state oil company in these companies. The activities of
MARQUARD & BAHLS in Bolivia can also be affected by this nationalisation. As these planned
nationalisations are not without compensation and should take place via the sale of business
interests at market prices determined by expert valuations, only a relatively low risk exists for
MARQUARD & BAHLS.
( 4 0 ) B o a r d of Dir e c t o r s a n d S u p e r vis o r y B o a r d
B o a r d o f D i r e c t o r s
* The board of directors of the company comprises:
* Aart W. Lokhorst, Seevetal (CEO)
* Dr. Claus-Georg Nette, Hamburg (CEO)
S u p e r v i s o r y B o a r d
* The supervisory board consists of:
* Hellmuth Weisser, Hamburg (Chairman), Kaufmann (business diploma)
* Rolf A. Kirchfeld, Hamburg, Bankkaufmann (banking diploma)
* Dr. Klaus Asche, Hamburg, Kaufmann (business diploma) (until 14 June 2006)
* Benedikt Niemeyer, Düsseldorf, Kaufmann (business diploma) (from 14 June 2006)
M a r q u a r d & B a h l s A G
H a m b u r g , 1 9 M a r c h 2 0 0 7
A ar t W. Lokhor st
Dr. Claus-Georg Net te
, C h i e f E x e c u t i v e O f f i c e r , C h i e f F i n a n c i a l O f f i c e r
* Marquard & Bahls AG , Holding
)
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*)
Co l o p h o n
Published by _ Marquard & Bahls AG (Hamburg)
Contact _ Corporate Communications, corporate_communications@mbholding.com
Concept & Design _ Karin Warzecha (Oering/Holst.), Cornelia Horn (Hamburg)
Illustrations _ Bernhard Kunkler (Freiburg)
The IFRS Financial Statement is also published in german. The german version is authoritative.