Combined statement of total recognised gains and losses COMBINED FINANCIAL STATEMENTS REED ELSEVIER ANNUAL REPORTS & FINANCIAL STATEMENTS 2003 45 Combined shareholders’ funds reconciliation 2003 2002 2003 2002 £m £m € m € m Profit attributable to parent companies’ shareholders 334 181 484 288 Exchange translation differences (232) (187) (620) (604) Total recognised gains and losses for the year 102 (6) (136) (316) For the year ended 31 December 2003 2003 2002 2003 2002 Note £m £m € m € m Profit attributable to parent companies’ shareholders 334 181 484 288 Equity dividends paid and proposed (304) (282) (441) (448) Issue of ordinary shares, net of expenses 14 30 20 48 Increase in shares held in treasury (18) (1) (26) (2) Exchange translation differences (232) (187) (620) (604) Net decrease in combined shareholders’ funds (206) (259) (583) (718) Combined shareholders’ funds at 1 January 2,640 2,899 4,039 4,757 As originally reported 2,659 2,917 4,068 4,784 Prior year adjustment in relation to presentation of shares held in treasury 27 (19) (18) (29) (27) Combined shareholders’ funds at 31 December 2,434 2,640 3,456 4,039 For the year ended 31 December 2003