Navigation aid

Deutsche EuroShop - Annual Report 2006

History:

Declaration of conformity

In December 2006, the Executive and Supervisory Boards of the Company jointly submitted their updated declaration of conformity with the recommendations of the Government Commission on the German corporate governance Code for the 2006 financial year in accordance with section 161 of the AktG (Aktiengesetz - German Public Companies Act). The declaration was made permanently available to the public on the Company’s website at www.deutsche-euroshop.com.

Joint declaration by the Executive and Supervisory Boards of Deutsche EuroShop AG relating to the recommendations of the Government Commission on the German Corporate Governance Code in accordance with section 161 AktG

The Executive Board and the Supervisory Board of Deutsche Euroshop AG declare that the Company has conformed and will conform with the recommendations of the Government Commission on the German Corporate Governance Code published by the Federal Ministry of Justice in the official section of the Federal Gazette on July 4, 2003, as amended on June 12, 2006, with the following exceptions:.

• Deutsche EuroShop AG will not broadcast the Annual General Meeting via modern communication media, e.g. the Internet (section 2.3.4).

The Company has decided not to broadcast the Annual General Meeting via modern communication media as a result of the need for confidentiality expressed by a large number of shareholders and the low demand in relation to the costs that is expected due to the size of the Company and the number of shareholders.

• The D & O insurance does not include a deductible for the Executive Board and the Supervisory Board (section 3.8 (2)).

The Executive Board and the Supervisory Board of Deutsche EuroShop AG have acted in a responsible manner and have managed and supervised the Company in line with the principles of adding enterprise value ever since the Company was established, and thus before the official introduction of corporate governance guidelines. The Company therefore believes that the agreement of a deductible is not necessary, in particular as this has no effect on the level of the insurance premium.

• The compensation of the Executive Board members does not include stock options (section 4.2.3 (3)). No stock option programmes or similar securities-based incentive systems are in place at the Company (section 7.1.3).

Share price performances is dependent on various factors that do not necessarily reflect the Company’s actual business performance. This could counteract the long-term incentive effect of stock option programmes. For this reason, the Company has not launched any stock option programmes or similar securities-based incentive systems to date.

• The compensation of the Supervisory Board is specified by resolution of the Annual General Meeting. Membership in committees is not taken into account when determining the compensation of the Supervisory Board (section 5.4.7 (1)). The compensation does not contain any performancerelated components (section 5.4.7 (2)).

Additional (performance-related) compensation of the Supervisory Board means that it is not possible, in the Company’s opinion, to ensure that Supervisory Board and committee work are independent of financial interests.

• The consolidated financial statements are publicly accessible within 120 days of the end of the financial year (section 7.1.2).

It is important to the Company to publish audited annual financial statements that have been approved by the Supervisory Board. An earlier publication date is not possible due to the schedules for the preparation, auditing and adoption of the annual financial statements.



Hamburg, December 2006

The Executive Board and the Supervisory Board
Deutsche EuroShop AG




Continue reading: Management Report

Back to: Outlook