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Changes to the number of issued shares outstanding 

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In addition to the reserves in the financial statements of Allianz AG required by law, revenue reserves include the retained earnings of consolidated subsidiaries and amounts resulting from consolidated net income for the year. Revenue reserves also include foreign cur- rency translation adjustments in the equity section. In the case of ac- quisitions prior to January 1, 1995, differences arising on first-time consolidation have been taken to revenue reserves. 

Other reserves represent unrealized gains and losses on invest- ments available-for-sale and derivatives used to hedge a net invest- ment in a foreign entity. 

The Board of Management will propose to shareholders at the Annual General Meeting the distribution of a dividend of ¤ 1.50 (2002: 1.50; 2001: 1.50) per qualifying share for fiscal year 2003. De- tails on the recommendation for appropriation of profit are given in the Group management report. 

## 14 Minority interests in shareholders’ equity/ earnings 

The primary subsidiaries included are the AGF Group, Paris, the RAS Group, Milan and the PIMCO Group, Delaware. 

The interests of minority shareholders are made up as follows: 

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## 15 Participation certificates and subordinated liabilities 

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Participation certificates include ¤ 85 (2002: 450) mn in respect of those issued by Allianz AG. The balance of “Participation certifi- cates” represents the guaranteed total redemption price that Allianz AG has to pay upon redemption, by the holders of the 1,175,554 “profit participation certificates” issued by the company, which are still outstanding. The distributions payable on the profit participation certificates for the last fiscal year are included in “Other liabilities”. A total of 4,923,111 own participation certificates, which are not recalled, are deducted from participating capital. 

In November 2002, Allianz AG made a voluntary public offer to holders of the then outstanding 5,723,154 participation certificates to exchange their certificates for Allianz shares. The exchange ratio was 10 shares for 8 participation certificates; by the end of the exchange period on January 16, 2003, a total of 4,918,488 participation certifi- cates had been exchanged for 6,148,110 shares. The shares for the ex- change offer came from Allianz treasury stock. 

In connection with the increase of the share capital with partici- pation rights in April 2003, the participation capital was increased in accordance with the participation certificate conditions from nomi- nally ¤ 29,302,548.48 by ¤ 13,674,521.60 to ¤ 42,977,070.08 by issu- ing to the holders of profit participation certificates 2,670,805 new participation certificates with profit participation rights. The new par- ticipation certificates were offered to the holders of participation cer- tificates at a price of ¤ 59.20 per participation certificate. The 2,295,294 new participation certificates with a nominal value of ¤ 11,751,905.28, which were attributable to the participation certificate 

