Report of the Board of Partners

During fiscal 2003, the Management Board and the Board of Partners held regular and detailed discussions on the progress of the company, its Business Groups and Divisions, and on major individual business transactions on the basis of oral and written reports from the Management Board. Corporate policy was formulated in consultations between the two bodies and updated where necessary in joint deliberations. Key topics included the acquisition of substantial areas of business of Burgmann Dichtungswerke and the purchase of Chem-Trend. The risk situation and risk management were also topics considered by the Board of Partners.

In fiscal 2003, four scheduled meetings of the Board of Partners were held. A consensus was reached in all cases where decisions required the participation of the Board of Partners under the Partnership Agreement; decisions relating to major projects were taken on the basis of written submissions.

At the Partners Meeting on June 28, 2003 Dr. Bettina Hahne stepped down from the Board of Partners. We would like to thank her for many years of dedicated service. The Partners Meeting of June 28, 2003 elected Dr. Ulrich Freudenberg as a new member of the Board of Partners.

The Board of Partners expresses its appreciation to the Management Board and the workforce for their commitment and performance during the year under review.

The consolidated financial statements for 2003 were audited by KPMG Deutsche Treuhand-Gesellschaft, Mannheim (Germany) and were approved without qualification. The Board of Partners approves the consolidated financial statements and, following examination, concurs with the auditor’s findings.

Weinheim, April 15, 2004

For the Board of Partners

 

Dr. Reinhart Freudenberg
Chairman