Report by the Supervisory Board
The Supervisory Board and the Executive Board worked closely together during 2006/07 for the benefit of the company and in accordance with the principles of good corporate governance.
The financial position and strategic development of the company as well as major events and investments were discussed extensively and candidly at these meetings. Specific issues and decisions were evaluated between the meetings in discussions between the Chairmen of the Supervisory Board and Executive Board. The investments planned by the company were deliberated and analysed in detail at the Supervi-sory Board meetings, and the Executive Board requested and received the approval of the Supervisory Board for all investment and sale transactions after providing verbal and written reports. In particularly urgent cases, the Supervisory Board passed its resolutions in writing.
The activities of the Supervisory Board during the 2006/07 financial year focused above all on examining the long-term business opportunities for the company together with the Executive Board and thereby set-ting the course for the profitable expansion strategy of IMMOFINANZ AG. In order to finance the its in-vestment programme, the company carried out a capital increase in May 2006. It is an impressive confir-mation of the positive development of the company that the entire proceeds from this capital increase have already been invested in a large number of acquisitions or development projects and generated excellent results in 2006/07.
The Executive Board provided the Supervisory Board with regular, timely and comprehensive verbal and written reports and information on all key issues concerning the development of business and the risk position of the company. This enabled the Supervisory Board to monitor and support the management activities of the Executive Board on a continuous basis.
The Supervisory Board held five meetings during the 2006/07 financial year.
The Audit Committee of the Supervisory Board met once during the reporting year. In the presence of the auditor, the Audit Committee discussed the annual financial statements, consolidated financial statements and recommendation for the distribution of profits, and recommended that the Supervisory Board approve the annual financial statements. The Audit Committee obtained a statement of independence from the auditor and issued a recommendation for the election of the auditor for the 2006/07 financial year.
The Supervisory Board of IMMOFINANZ AG supports compliance with the Austrian Corporate Govern-ance Code, and thereby also endorses the principles of responsible corporate management and control as well as the achievement of a high degree of transparency for all stakeholders of the company. A summary of the measures taken by IMMOFINANZ AG to implement the Austrian Corporate Governance Code is presented in the annual report and on the homepage of the company.
The annual financial statements and management report of IMMOFINANZ AG as of 30 April 2007 (2006/07 financial year), which were prepared by the Executive Board, as well as the consolidated finan-cial statements and consolidated management report as of 30 April 2007 (2006/07 financial year), which were prepared by the Executive Board in accordance with International Financial Reporting Standards (IFRS), were audited by KPMG Austria GmbH Wirtschaftsprüfungsund Steuerberatungsgesellschaft and awarded an unqualified opinion. All documentation for the financial statements as well as the audit reports, management letter and recommendation for the distribution of profit were discussed in detail by the Audit Committee in the presence of the auditor and presented to the Supervisory Board. The Supervisory Board has examined this documentation as required by § 96 of the Austrian Stock Corporation Act and accepted the annual financial statements for 2006/07, which are therefore considered approved in accordance with § 125 (2) of the Austrian Stock Corporation Act. The Supervisory Board also declared its agreement with the consolidated financial statements and consolidated management report, and approved the recommen- dation of the Executive Board for the use of retained earnings. The annual report by the internal audit department did not identify any risks which, in the absence of controls, could have a material effect on the continued existence or development of business in the company. Consequently, there were no grounds for objections.
Particular attention was paid to the valuation of properties located outside Austria during the 2006/07 fi-nancial year. The international valuation companies Colliers and DTZ were commissioned to value the properties owned by IMMOEAST as well as selected objects in the IMMOWEST portfolio. The methodology used and opinions prepared by these experts were discussed at length by the Supervisory Board and Executive Board.
In conclusion, the Supervisory Board would like to thank the management and employees of IMMOFINANZ AG for their commitment and performance during 2006/07.
Vienna, 23 July 2007
The financial position and strategic development of the company as well as major events and investments were discussed extensively and candidly at these meetings. Specific issues and decisions were evaluated between the meetings in discussions between the Chairmen of the Supervisory Board and Executive Board. The investments planned by the company were deliberated and analysed in detail at the Supervi-sory Board meetings, and the Executive Board requested and received the approval of the Supervisory Board for all investment and sale transactions after providing verbal and written reports. In particularly urgent cases, the Supervisory Board passed its resolutions in writing.
The activities of the Supervisory Board during the 2006/07 financial year focused above all on examining the long-term business opportunities for the company together with the Executive Board and thereby set-ting the course for the profitable expansion strategy of IMMOFINANZ AG. In order to finance the its in-vestment programme, the company carried out a capital increase in May 2006. It is an impressive confir-mation of the positive development of the company that the entire proceeds from this capital increase have already been invested in a large number of acquisitions or development projects and generated excellent results in 2006/07.
The Executive Board provided the Supervisory Board with regular, timely and comprehensive verbal and written reports and information on all key issues concerning the development of business and the risk position of the company. This enabled the Supervisory Board to monitor and support the management activities of the Executive Board on a continuous basis.
The Supervisory Board held five meetings during the 2006/07 financial year.
The Audit Committee of the Supervisory Board met once during the reporting year. In the presence of the auditor, the Audit Committee discussed the annual financial statements, consolidated financial statements and recommendation for the distribution of profits, and recommended that the Supervisory Board approve the annual financial statements. The Audit Committee obtained a statement of independence from the auditor and issued a recommendation for the election of the auditor for the 2006/07 financial year.
The Supervisory Board of IMMOFINANZ AG supports compliance with the Austrian Corporate Govern-ance Code, and thereby also endorses the principles of responsible corporate management and control as well as the achievement of a high degree of transparency for all stakeholders of the company. A summary of the measures taken by IMMOFINANZ AG to implement the Austrian Corporate Governance Code is presented in the annual report and on the homepage of the company.
The annual financial statements and management report of IMMOFINANZ AG as of 30 April 2007 (2006/07 financial year), which were prepared by the Executive Board, as well as the consolidated finan-cial statements and consolidated management report as of 30 April 2007 (2006/07 financial year), which were prepared by the Executive Board in accordance with International Financial Reporting Standards (IFRS), were audited by KPMG Austria GmbH Wirtschaftsprüfungsund Steuerberatungsgesellschaft and awarded an unqualified opinion. All documentation for the financial statements as well as the audit reports, management letter and recommendation for the distribution of profit were discussed in detail by the Audit Committee in the presence of the auditor and presented to the Supervisory Board. The Supervisory Board has examined this documentation as required by § 96 of the Austrian Stock Corporation Act and accepted the annual financial statements for 2006/07, which are therefore considered approved in accordance with § 125 (2) of the Austrian Stock Corporation Act. The Supervisory Board also declared its agreement with the consolidated financial statements and consolidated management report, and approved the recommen- dation of the Executive Board for the use of retained earnings. The annual report by the internal audit department did not identify any risks which, in the absence of controls, could have a material effect on the continued existence or development of business in the company. Consequently, there were no grounds for objections.
Particular attention was paid to the valuation of properties located outside Austria during the 2006/07 fi-nancial year. The international valuation companies Colliers and DTZ were commissioned to value the properties owned by IMMOEAST as well as selected objects in the IMMOWEST portfolio. The methodology used and opinions prepared by these experts were discussed at length by the Supervisory Board and Executive Board.
In conclusion, the Supervisory Board would like to thank the management and employees of IMMOFINANZ AG for their commitment and performance during 2006/07.
Vienna, 23 July 2007
Helmut Schwager
Chairman of the Supervisory Board
Chairman of the Supervisory Board
print page
recommend page