Hornbach-Baumarkt-AG Group

14 REPORT OF THE SUPERVISORY BOARD
It was not necessary to convene the Mediation Committee
established pursuant to § 27 (3) of the German Codetermination
Act (MitBestimmG).
Personnel-related matters
On March 11, 2013, Jürgen Schröcker, a member of the Board
of Management since October 1, 2004, informed the Chairman
of the Supervisory Board and the Chairman of the Supervisory
Board Personnel Committee that he would like to tackle
new professional challenges upon the expiry of his management
board contract as of December 31, 2013. Jürgen Schröcker
stood down from his position on the Board of Management
as of March 31, 2013. His duties as Marketing Director
were assumed by Steffen Hornbach, Chairman of the Board of
Management, as of April 1, 2013. The business allocation
plan for the Board of Management was amended accordingly.
Annual and consolidated financial statements
KPMG Aktiengesellschaft Wirtschaftsprüfungsgesellschaft
(KPMG), Berlin and Frankfurt am Main, audited the annual
financial statements of HORNBACH-Baumarkt-AG and the
consolidated financial statements as of February 28, 2013, as
well as the management reports of HORNBACH-Baumarkt-AG
and the Group and provided them each with an unqualified
audit opinion. The consolidated financial statements were
prepared in accordance with International Financial Reporting
Standards (IFRS) as adopted by the EU.
Moreover, KPMG confirmed that the early warning risk management
system conformed to requirements and that no risks to the
company’s ongoing existence had been identified.
Key focuses of the audit in the 2012/2013 financial year
included select IT-related processes and checks (e.g. audit of
SAP release change), the functionality of internal controls of
key financial reporting processes, the audit of the ongoing
value of non-current assets (IAS 36), the assessment of stores
with negative store results, the audit of the existence and
measurement of inventories, the audit of the completeness
and measurement of provisions, the audit of the recognition
and measurement of deferred and current tax assets and
liabilities, the audit of the recognition of the premature repayment
of the corporate bond executed in the year under report
and of the newly issued bond, compliance with credit terms in
connection with group financing, the delineation of the scope
of consolidation, the correctness of the annual financial
statements included in the consolidated financial statements,
the consolidation of capital, the completeness and accuracy of
note disclosures, and the completeness and consistency of the
disclosures made in the management report accompanying the
separate and consolidated financial statements.
The financial statements and audit reports were provided to
all Supervisory Board members in good time. They were examined
in detail at the meeting of the Audit Committee on
May 22, 2013 and at the subsequent meeting of the Supervisory
Board held on the same day to approve the financial
statements. The auditor took part in these discussions. He
reported on the principal audit findings and was available to
provide further information and to answer questions. Based
on the findings of the preliminary audit performed by the
Audit Committee and of our own examination of the documents
provided by the Board of Management and the auditor,
we did not raise any objections and endorse KPMG’s audit
findings. We approve the annual financial statements prepared
by the Board of Management for HORNBACH-Baumarkt-
AG and the Group as of February 28, 2013; the annual financial
statements of HORNBACH-Baumarkt-AG are thus adopted.
We endorse the appropriation of profits proposed by the Board
of Management.
Furthermore, the Supervisory Board reviewed the report from
the Board of Management on relationships with associated
companies pursuant to § 312 of the German Stock Corporation
Act (AktG). Neither this review nor KPMG’s audit gave rise
to any objections. KPMG granted the following audit opinion:
“Based on the audit and assessment we have undertaken in
accordance with professional standards, we confirm that
1. the factual disclosures made in the report are correct
2. the performance of the company in the transactions listed
in the report was not incommensurately high.”