Dear Shareholders,
During fiscal year 2006/2007, the Supervisory Board monitored the Management Board in accordance with the Corporate Governance Code. In this respect, the Supervisory Board was able to keep abreast of all significant business transactions and the development of the Group. During the reporting period, a total of seven Supervisory Board meetings were held, of which three meetings were held as part of a telephone conference call. All of the Supervisory Board members were present at all of the meetings.
At each of the individual meetings, the Supervisory Board analysed the current business developments together with the Management Board. Accordingly, board members conferred regarding the strategic orientation of the Group. If individual transactions required the consent of the Supervisory Board under the terms of the Articles and Memoranda of Association or pursuant to statutory requirements, then the Supervisory Board reviewed the transactions and decided on whether to issue its consent.
The discussion topic at these meetings was the commercial or business situation of MAGIX AG and its subsidiaries. In addition, the current and long-term development of individual business sectors as well as the product, sale and marketing strategies were discussed. The Supervisory Board and Management Board were informed each month in writing regarding the current course of business. Independent of the individual meetings, the Management Board kept the Supervisory Board chairman continuously informed of important events and significant decisions.
Given its size of 3 members, the MAGIX AG Supervisory Board also did not establish any committees during this fiscal year.
The Supervisory Board also extensively examined and addressed the topic of the German Corporate Governance Code during this fiscal year. The Management Board and Supervisory Board have taken the requisite courses of action in order to comply with the Code recommendations as far as possible. The few exceptions will be listed together with under the statement issued in conjunction with the Management Board pursuant to § 161 of the German Stock Corporation Act (AktG). They may be downloaded from the Group's website
In fiscal year 2006/2007 the individual Supervisory Board meetings focused on the following topics:
At the meeting held on 6 December 2006, the preliminary annual financial statement for fiscal year 2005/2006 was reviewed and discussed, the final version of which was approved by the Supervisory Board at its meeting of 11 January 2007.
The key agenda items for MAGIX AG’s first public Shareholders' Meeting were discussed and approved at the meeting on 1 February 2007. Directly following the Shareholders' Meeting of 23 March 2007, the Supervisory Board convened again and held a follow-up discussion regarding the organised event.
At the Supervisory Board meeting of 5 April 2007, the Supervisory Board performed, inter alia, an analysis of the outcome of an efficiency review undertaken by the Supervisory Board at the end of the last calendar year.
The course of business and the preliminary figures of the third quarter were mainly discussed in a meeting on August 1, 2007.
At the final meeting for 2006/2007, the forecast for the fourth quarter and the budget for the upcoming fiscal year were stipulated.
The Supervisory Board duly engaged the accounting firm of Ernst & Young AG Wirtschaftsprüfungsgesellschaft/Steuerberatergesellschaft, Berlin, to audit the annual financial statements and consolidated financial statements for fiscal year 2006/2007. That firm thereupon audited the annual financial statements and consolidated financial statements as of 30 September 2007 as well as the management report including the relevant bookkeeping, and issued its unqualified audit opinion. The audit report was submitted to the Supervisory Board and personally explained by the auditor (Wirtschaftsprüfer) who was responsible for completing the audit, together with the Management Board.
The reports were reviewed in detail by the Supervisory Board. This also included the Management Board's recommendation on use of the profits. The Supervisory Board agreed with the results of the annual financial statements and consolidated financial statements audit and the management report and approved the annual financial statements and consolidated financial statements for fiscal year 2006/2007. After the Supervisory Board's final review of the annual financial statements, consolidated financial statements, management report and recommendation on the use of profits, no objections were raised. Thus, in its conference call held on January 14, 2007 the Supervisory Board approved the annual financial statements submitted.
There were no changes in the membership of the Management Board or Supervisory Board.
The Supervisory Board thanks the Management Board as well as all employees of the Group for their commitment and the work performed in fiscal year 2006/2007.
Berlin, January 2008
The Executive Board
