G ROUP MANAGEMENT REPORT Risk Report 89 Maturities of the derivatives portfolio Derivatives (Trading and non-trading) *) Market segments Principal amounts at maturity Positive  replacement values *) < = 1 year 1 — 5 years > 5 years Total ¤ mn ¤ mn ¤ mn ¤ mn ¤ mn Interest-based derivatives 1,504,577 860,397 550,761 2,915,735 38,050 FX-based derivatives 339,596 258,328 50,691 648,615 13,122 Stock index derivatives 89,072 101,305 10,039 200,416 5,879 Credit derivatives 11,735 65,550 7,211 84,496 1,321 Other transactions 2,161 3,403 1,992 7,556 548 Total 1,947,141 1,288,983 620,694 3,856,818 58,920 *) Before netting Value-at-risk is only one of the instruments used to character- ize and control the risk profile of the Dresdner Bank Group. In addition, the bank also uses operational risk indicators and  limits, which are specifically adapted to the risk situation of the trading units. Trading is controlled by setting value-at-risk and operational market risk limits. Current limit utilization is de- termined and monitored by Risk Controlling on a daily basis. Limit breaches are immediately indicated to the management concerned so that corrective action can be taken. Market risks in the trading portfolio: the risks from Dresdner Bank’s trading activities increased slightly compared to the pre- vious year. This is mainly due to the fact that positions for in- terest-bearing instruments were built up moderately. Market risks in the non-trading portfolio: this risk mainly comprises the risk of interest changes and is analyzed on the basis of sensitivity and value-at-risk indicators. As in the case of trading, the bank controls this risk by setting value-at-risk lim- its. At the end of 2003, the value-at-risk for interest rate risks in the banking portfolio of Dresdner Bank Group decreased slightly by 2 percent to 31.2 million euros. Derivatives business by market segment Counterparties by industry segment Positive  replacement values 12/31/2003 12/31/2002 ¤ mn ¤ mn Banks 38,611 47,738 Other financial services providers 16,063 11,673 Insurance companies 411 484 Small industry 741 327 Telecommunication, media, technology 489 745 Transportation 457 276 Raw materials 148 667 Real estate 108 112 Government 1,119 676 Other 773 1,714 Total – before netting 58,920 64,412 Total – after netting and security 14,251 17,212 Currency risks  at Dresdner Bank are limited by applying the fol- lowing principle: all loans and deposits in foreign currencies are refinanced or reinvested in the same currency with matching maturities. Liquidity risks As part of the Group liquidity policy, Treasury and Risk Controlling of Dresdner Bank established principles for liquidity management. This liquidity policy meets both regula- tory requirements and internal standards. The liquidity risk lim- its set include a reporting process for limit breaches and provi- sions for emergency planning. Liquidity control and liquidity risk management are tasks attended to by the treasury. Liquidity risk measurement is based on the liquidity man- agement system. This system models the maturities of all cash flows and draws up a scenario-based liquidity balance sheet, tak- ing into account available prime-rated securities.