Annual Report 2007 - Muehlhan AG

ManageMent divisions share Group ManaGeMent report Group Consolidated FinanCial stateMents
Report of the
Supervisory Board
Muehlhan AG looks back on an eventful 2007 fiscal year.
After the successful initial public offering during the 2006 fiscal year,
the company had to rise to new challenges and make trend-setting
strategic decisions during the past year. In doing so, the primary
objective was to permanently overcome potential hurdles and
shape the orientation of the company for the future. As the
Supervisory Board, we accompanied the work of the company’s
management during the reporting year to the extent specified by
law and by the Articles of Incorporation.
Review of management of the company
and supporting advice for the Executive Board
by the Supervisory Board
during the 2007 fiscal year, the Executive board provided
regular reports to the Supervisory board in writing and verbally
regarding the commercial development of Muehlhan
aG and of the Muehlhan Group. in doing so, special attention
was given to the company’s complex market situation
in light of general economic development. the Executive
board also provided comprehensive reports regarding the
financial position of the corporation and of the subsidiary
companies, their earnings performance, and corporate
planning. in a total of five joint meetings, the Supervisory
board and the Executive board discussed personnel and
business policy processes and a collective course. additionally,
the Supervisory board attended to the situation of
the Group in several internal telephone conferences.
Key topics at all the meetings were the strategic orientation
of the Muehlhan Group and the resulting operational
implementation. at the same time, the development of the
company’s four main areas of business in the international
markets was discussed. other key topics were the current
state of business performance and finances.
the Executive board provided required additional information
to the Supervisory board without delay verbally and
in writing. Even between meetings, the Supervisory board
was in direct contact with the Executive board, so that individual
questions about important developments and business
transactions at Muehlhan could be discussed and
decided without time delays.
Focal points during the 2007 deliberations
the following topics were discussed as focal points during
the meetings of the Supervisory board during the 2007
fiscal year:
the successful ipo in the year 2006, and thus the acceptance
of the business model by the capital market,
aroused expectations for the year 2007, which Muehlhan
was unable to fulfill to the extent in the short-term. in addition,
Muehlhan came under pressure at an early stage as
a result of individual factors like the challenging business
development for the uS subsidiary companies.
from the beginning, the project difficulties at the California
Golden Gate bridge were a subject of the deliberations
between the Supervisory board and the Executive board
such that the subsidiary company Certified Coatings
Company was able to assert the legal claims in a timely
manner and in close coordination. during the course of the
fiscal year, the Supervisory board regularly informed itself
about the current developments for the project. there was
a similar regular exchange regarding other elements of uS
activities, including the situation for the offshore service
provider Meaux and the continued weakness in the marine
sub-markets in the uSa. the Supervisory board included
the various individual factors in its considerations when
it engaged in the evaluation of the recommendations of
the Executive board for a restructuring of the american
subsidiary companies. in the deliberations with management
of the Muehlhan Group, the Supervisory board
was able to procure comprehensive insight into the extent
and effectiveness of the measures, and to support them.
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