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## 26 Income (net) from investments in affiliated enter- prises, joint ventures, and associated enterprises 

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Associated enterprises account for ¤ 2,774 (2002: 3,432; 2001: 1,388) mn of the income (net) from investments in affiliated enterprises, joint ventures, and associated companies. 

## 27 Other income from investments 

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Income from revaluations includes income from the reversal of im- pairment charges. 

## 28 Trading income 

Trading income includes expenses amounting to ¤ 1,359 mn (2002: income ¤ 412 mn; 2001: income ¤ 1,385 mn) from derivative finan- cial instruments used by insurance companies for which hedge ac- counting is not applied under IAS 39. These include gains on deriv- ative financial instruments embedded in exchangeable bonds issued amounting to ¤ 2 (2002: 387; 2001: 880) mn. In fiscal 2003, equity exposure was substantially reduced through the use of derivatives and direct sales. Futures and put options on indexes were used for hedging. The change in the market value of the derivatives of this macro hedge are recognized as trading income in the income state- ment, while the corresponding changes in the fair value of the un- derlying equities are directly recognized in shareholders’ equity with no impact on the income statement. They are recognized in the in- come statement only at the time of their realization in the capital mar- ket. The use of derivatives for macro hedges resulted in a loss of ¤ 1,351 mn. Also included are losses totaling ¤ 10 mn (2002: income ¤ 25 mn; 2001: losses ¤ 461 mn) arising from the use of other deriv- ative financial instruments by insurance companies. 

Trading income amounting to ¤ 243 (2002: 1,507; 2001: 1,592) mn includes income from trading activities of banking business *) tota- ling ¤ 1,485 (2002: 1,081; 2001: 244) mn. 

This is comprised as follows: 

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*) After eliminating intra Group transactions between segments 

