The calculation of the dividend to be distributed to preferred and common shareholders is based on certain factors: particularly profitability, financial position, capital requirements, business outlook, the Company’s general economic environment and the share of net profit to be issued to participation certificate holders (including minimum dividend). As participation certificates are entitled to receive ten times as much as the dividend paid to preferred shareholders, it must be remembered when determining the dividend for preferred and common shares that an increase in the dividends of these shares will always result in an increase of the dividend for participation certificates. In the case of an increase of dividends, a little less than half of the total amount paid to participation certificate holders and shareholders together is generally paid to participation certificate holders.

In future fiscal years, Dräger plans to issue around 30 percent of group net profit (less minority interests) to the Company’s shareholders and participation certificate holders (corresponding to the share in net profits for participation certificates [without minimum dividend, after taxes]) once Dräger has achieved an equity ratio of 30 percent, subject to the above-mentioned determining factors and the Company generating sufficient net earnings.

As Dräger’s equity ratio was 32.3 percent in fiscal year 2010, exceeding this target value, the annual shareholders’ meeting agreed to the suggestion of the Executive Board of the general partner and the Supervisory Board of Drägerwerk AG & Co. KGaA to distribute a dividend of EUR 1.13 per common share and EUR 1.19 per preferred share for fiscal year 2010. The dividend for series A, K and D participation certificates therefore comes up to EUR 11.90 each, equating to a total distribution rate of 30.1 percent based on group net profit (less minority interests).