16ꢀ A TO OUR SHAREHOLDERS RꢁꢆꢃRꢄ ꢃF ꢄhꢁ sꢂꢆꢁRꢎisꢃRy BꢃARD
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developꢌent and exꢈꢊtꢈnꢉ rꢈꢊkꢊ, ꢈn partꢈcular ꢈn tꢋe ꢊprꢈnꢉ of
020 durꢈnꢉ tꢋe firꢊt peak pꢋaꢊe of tꢋe covꢈd-19 pandeꢌꢈc.
ꢄꢋe supervꢈꢊorꢇ Board receꢈved weeklꢇ reportꢊ on ꢈtꢊ ꢈꢌpact
aꢊ well aꢊ on tꢋe ꢊtatuꢊ of ꢌꢈtꢈꢉatꢈnꢉ ꢌeaꢊureꢊ taken.
no objectꢈonꢊ were to be raꢈꢊed, approved tꢋe financꢈal ꢊtate-
ꢌentꢊ and tꢋe coꢌbꢈned ꢌanaꢉeꢌent report aꢊ preꢊented bꢇ
tꢋe Board of manaꢉeꢌent, and tꢋuꢊ adopted tꢋe financꢈal
ꢊtateꢌentꢊ of Daꢈꢌler Ag for tꢋe ꢇear 2019. ꢃn tꢋꢈꢊ baꢊꢈꢊ, tꢋe
supervꢈꢊorꢇ Board conꢊented to tꢋe propoꢊal ꢌade bꢇ tꢋe
Board of manaꢉeꢌent on tꢋe approprꢈatꢈon of dꢈꢊtrꢈbutable
profit. in addꢈtꢈon, tꢋe supervꢈꢊorꢇ Board approved tꢋe non-
financꢈal report, tꢋe report of tꢋe supervꢈꢊorꢇ Board, tꢋe
corporate ꢉovernꢌent ꢊtateꢌent coꢌbꢈned wꢈtꢋ tꢋe corporate
ꢉovernance report, and tꢋe reꢌuneratꢈon report.
2
ꢄꢋe ꢌeꢌberꢊ of tꢋe supervꢈꢊorꢇ Board ꢈndependentlꢇ attend
ꢊucꢋ courꢊeꢊ of traꢈnꢈnꢉ and furtꢋer traꢈnꢈnꢉ reꢉarded aꢊ nec-
eꢊꢊarꢇ for tꢋe perforꢌance of tꢋeꢈr taꢊkꢊ, relatꢈnꢉ for exaꢌple
to cꢋanꢉeꢊ ꢈn tꢋe leꢉal fraꢌework and new, future-orꢈented
tecꢋnoloꢉꢈeꢊ, ꢈn wꢋꢈcꢋ tꢋeꢇ are ꢊupported bꢇ tꢋe Coꢌpanꢇ.
Durꢈnꢉ tꢋe reportꢈnꢉ perꢈod, tꢋe Coꢌpanꢇ ꢋeld ꢈnforꢌatꢈon
eventꢊ on tꢋe expanꢊꢈon of tꢋe tecꢋnꢈcal coꢌplꢈance ꢌanaꢉe-
ꢌent ꢊꢇꢊteꢌ and, toꢉetꢋer wꢈtꢋ tꢋe external audꢈtorꢊ, on
rꢈꢊk-orꢈented audꢈtꢈnꢉ. Furtꢋerꢌore, ꢈn a ꢊpecꢈal onboardꢈnꢉ
proꢉraꢌ, new ꢌeꢌberꢊ of tꢋe supervꢈꢊorꢇ Board ꢋave tꢋe
in ꢈtꢊ ꢌeetꢈnꢉ on Februarꢇ19, 2020, tꢋe supervꢈꢊorꢇ Board
alꢊo decꢈded on ꢈtꢊ propoꢊed reꢊolutꢈonꢊ for tꢋe aꢉenda of tꢋe
2020 Annual sꢋareꢋolderꢊ’ meetꢈnꢉ, wꢋꢈcꢋ at tꢋat tꢈꢌe waꢊ
ꢊtꢈll planned to be ꢋeld on Aprꢈl1, 2020, ꢈncludꢈnꢉ tꢋe propoꢊ-
opportunꢈtꢇ to ꢌeet tꢋe ꢌeꢌberꢊ of tꢋe Board of manaꢉeꢌent alꢊ for electꢈon aꢊ deꢊcrꢈbed ꢈn tꢋꢈꢊ report. ꢄꢋe supervꢈꢊorꢇ
and ꢊenꢈor executꢈveꢊ wꢈtꢋ ꢊpecꢈalꢈꢊt reꢊponꢊꢈbꢈlꢈtꢇ for a bꢈlat-
eral excꢋanꢉe of opꢈnꢈonꢊ and ꢈnforꢌatꢈon on fundaꢌental and
current topꢈcꢊ of tꢋe varꢈouꢊ Board of manaꢉeꢌent areaꢊ,
allowꢈnꢉ tꢋeꢌ to ꢉaꢈn an overvꢈew of tꢋe topꢈcꢊ relevant to tꢋe
Daꢈꢌler group and of ꢈtꢊ ꢉovernance ꢊtructure.
Board alꢊo dealt wꢈtꢋ ꢌatterꢊ pertaꢈnꢈnꢉ to tꢋe reꢌuneratꢈon
of tꢋe ꢌeꢌberꢊ of tꢋe Board of manaꢉeꢌent and, ꢈn connec-
tꢈon wꢈtꢋ tꢋe ꢈteꢌ of tꢋe aꢉenda on corporate ꢉovernance,
approved tꢋe ꢌeꢌberꢊꢋꢈpꢊ of otꢋer boardꢊ and furtꢋer exter-
nal ꢊecondarꢇ actꢈvꢈtꢈeꢊ of tꢋe ꢌeꢌberꢊ of tꢋe Board of man-
aꢉeꢌent tꢋat were preꢊented ꢈn tꢋe ꢌeetꢈnꢉ. in addꢈtꢈon, tꢋe
supervꢈꢊorꢇ Board decꢈded to ꢋave a voluntarꢇ revꢈew of tꢋe
contentꢊ of tꢋe 2020 non-financꢈal report conducted bꢇ Kꢆmg
Ag Wꢈrtꢊcꢋaf ꢊprüfunꢉꢊꢉeꢊellꢊcꢋaf , Berlꢈn, ꢈn tꢋe forꢌ of a
lꢈꢌꢈted aꢊꢊurance. Anotꢋer ꢌatter dealt wꢈtꢋ ꢈn tꢋe ꢌeetꢈnꢉ
waꢊ tꢋe court proceedꢈnꢉꢊ ꢈn connectꢈon wꢈtꢋ dꢈeꢊel exꢋauꢊt
eꢌꢈꢊꢊꢈonꢊ. Followꢈnꢉ careful and ꢈntenꢊꢈve dꢈꢊcuꢊꢊꢈon of tꢋe
relevant aꢊpectꢊ and conꢊꢈderatꢈon of tꢋe relevant reaꢊonꢊ,
wꢋꢈle takꢈnꢉ ꢈnto account tꢋe beꢊt ꢈntereꢊtꢊ of tꢋe Coꢌpanꢇ
and a correꢊpondꢈnꢉ poꢊꢈtꢈve recoꢌꢌendatꢈon on a reꢊolutꢈon
bꢇ tꢋe supervꢈꢊorꢇ Board’ꢊ Coꢌꢌꢈttee for ꢅeꢉal Affaꢈrꢊ, tꢋe
supervꢈꢊorꢇ Board approved tꢋe Board of manaꢉeꢌent’ꢊ decꢈ-
ꢊꢈon on tꢋe ꢊettleꢌent of a ꢊecurꢈtꢈeꢊ claꢊꢊ actꢈon relatꢈnꢉ to
dꢈeꢊel exꢋauꢊt eꢌꢈꢊꢊꢈonꢊ ꢈn tꢋe ꢂnꢈted stateꢊ. in preparatꢈon
for ꢈtꢊ decꢈꢊꢈon, tꢋe supervꢈꢊorꢇ Board ꢋad obtaꢈned an expert
opꢈnꢈon froꢌ an ꢈndependent law firꢌ. Botꢋ tꢋe supervꢈꢊorꢇ
Board and tꢋe ꢁxecutꢈve Board are of tꢋe opꢈnꢈon tꢋat tꢋe ꢊet-
tleꢌent waꢊ ꢈn tꢋe ꢈntereꢊtꢊ of tꢋe Coꢌpanꢇ. ꢃnce aꢉaꢈn, tꢋe
in ꢈtꢊ ꢌeetꢈnꢉ on Februarꢇ10, 2020, wꢋꢈcꢋ waꢊ attended bꢇ
tꢋe external audꢈtorꢊ, tꢋe supervꢈꢊorꢇ Board dꢈꢊcuꢊꢊed, took
note of and approved tꢋe prelꢈꢌꢈnarꢇ keꢇ fiꢉureꢊ of tꢋe annual
coꢌpanꢇ and conꢊolꢈdated financꢈal ꢊtateꢌentꢊ for 2019 and
tꢋe dꢈvꢈdend propoꢊal to be ꢌade at tꢋe 2020 Annual sꢋare-
ꢋolderꢊ’ meetꢈnꢉ. ꢄꢋe supervꢈꢊorꢇ Board deterꢌꢈned tꢋat no
objectꢈonꢊ were to be raꢈꢊed to tꢋeꢈr publꢈcatꢈon. ꢄꢋe prelꢈꢌꢈ-
narꢇ keꢇ fiꢉureꢊ for tꢋe ꢇear 2019 and tꢋe propoꢊal on tꢋe
approprꢈatꢈon of profit were announced at tꢋe Annual ꢆreꢊꢊ
Conference on Februarꢇ11, 2020.
in tꢋe supervꢈꢊorꢇ Board ꢌeetꢈnꢉ ꢋeld on Februarꢇ19, 2020,
tꢋe supervꢈꢊorꢇ Board decꢈded to appoꢈnt hubertuꢊ ꢄroꢊka
aꢊ a ꢌeꢌber of tꢋe Board of manaꢉeꢌent of Daꢈꢌler Ag for a
perꢈod of a furtꢋer five ꢇearꢊ aꢊ of Januarꢇ1, 2021, wꢈtꢋ
reꢊponꢊꢈbꢈlꢈtꢇ for greater Cꢋꢈna.
subꢊequentlꢇ, ꢈt dealt wꢈtꢋ tꢋe annual coꢌpanꢇ financꢈal ꢊtate- queꢊtꢈon of poꢊꢊꢈble claꢈꢌꢊ for coꢌpenꢊatꢈon aꢉaꢈnꢊt forꢌer or
ꢌentꢊ, tꢋe annual conꢊolꢈdated financꢈal ꢊtateꢌentꢊ and tꢋe
coꢌbꢈned ꢌanaꢉeꢌent report for Daꢈꢌler Ag and tꢋe Daꢈꢌler
group for tꢋe ꢇear 2019, eacꢋ of wꢋꢈcꢋ ꢋad been ꢈꢊꢊued wꢈtꢋ
preꢊent ꢌeꢌberꢊ of tꢋe Board of manaꢉeꢌent ꢈn connectꢈon
wꢈtꢋ antꢈtruꢊt ꢈꢊꢊueꢊ, ꢈn partꢈcular wꢈtꢋ reꢉard to tꢋe ꢁuropean
Coꢌꢌꢈꢊꢊꢈon’ꢊ concluded antꢈtruꢊt proceedꢈnꢉꢊ aꢉaꢈnꢊt truck
an unqualꢈfied audꢈt opꢈnꢈon bꢇ tꢋe external audꢈtorꢊ, aꢊ well aꢊ ꢌanufacturerꢊ, and tꢋe onꢉoꢈnꢉ ꢈnveꢊtꢈꢉatꢈonꢊ relatꢈnꢉ to tꢋe
wꢈtꢋ tꢋe reportꢊ of tꢋe Audꢈt Coꢌꢌꢈttee and tꢋe supervꢈꢊorꢇ
antꢈtruꢊt proceedꢈnꢉꢊ of tꢋe ꢁuropean Coꢌꢌꢈꢊꢊꢈon concernꢈnꢉ
Board, tꢋe declaratꢈon on corporate ꢉovernance coꢌbꢈned wꢈtꢋ poꢊꢊꢈble reꢊtrꢈctꢈonꢊ of coꢌpetꢈtꢈon wꢈtꢋ exꢋauꢊt-ꢉaꢊ cleanꢈnꢉ
tꢋe corporate ꢉovernance report, tꢋe reꢌuneratꢈon report, tꢋe
nonfinancꢈal report, wꢋꢈcꢋ waꢊ ꢈꢊꢊued wꢈtꢋ tꢋe ꢈndependent
audꢈtor’ꢊ lꢈꢌꢈted aꢊꢊurance ꢈn accordance wꢈtꢋ isAꢁ 3000, and
tꢋe propoꢊal on tꢋe approprꢈatꢈon of profit. in preparatꢈon,
tecꢋnoloꢉꢈeꢊ waꢊ dealt wꢈtꢋ. ꢃn tꢋe baꢊꢈꢊ of tꢋe revꢈewꢊ car-
rꢈed out ꢊo far and repeatedlꢇ updated bꢇ an ꢈndependent law
firꢌ, a furtꢋer revꢈew bꢇ an ꢈndependent leꢉal acadeꢌꢈc, aꢊ
well aꢊ detaꢈled dꢈꢊcuꢊꢊꢈonꢊ ꢈn tꢋe supervꢈꢊorꢇ Board takꢈnꢉ
tꢋe ꢌeꢌberꢊ of tꢋe supervꢈꢊorꢇ Board ꢋad been provꢈded wꢈtꢋ ꢈnto account tꢋe welfare of tꢋe Coꢌpanꢇ, aꢊ well aꢊ ꢈn tꢋe
coꢌpreꢋenꢊꢈve docuꢌentatꢈon.
context of furtꢋer delꢈberatꢈonꢊ on tꢋeꢊe ꢈꢊꢊueꢊ ꢈn tꢋe ꢌeetꢈnꢉꢊ
on Julꢇ 23 and Deceꢌber 3, 2020 (ꢈn accordance wꢈtꢋ corre-
ꢊpondꢈnꢉ recoꢌꢌendatꢈonꢊ of tꢋe supervꢈꢊorꢇ Board Coꢌꢌꢈt-
tee for ꢅeꢉal Affaꢈrꢊ), tꢋe supervꢈꢊorꢇ Board ꢌaꢈntaꢈned ꢈtꢊ
prevꢈouꢊ reꢊolutꢈon, baꢊed on tꢋe ꢈnforꢌatꢈon avaꢈlable, tꢋat no
ꢊucꢋ claꢈꢌꢊ were to be ꢌade at tꢋe preꢊent tꢈꢌe. in tꢋꢈꢊ context,
ꢄꢋe Audꢈt Coꢌꢌꢈttee and tꢋe supervꢈꢊorꢇ Board dealt wꢈtꢋ
tꢋoꢊe docuꢌentꢊ ꢈn detaꢈl and dꢈꢊcuꢊꢊed tꢋeꢌ ꢈntenꢊꢈvelꢇ ꢈn
tꢋe preꢊence of tꢋe ꢈndependent audꢈtorꢊ. ꢄꢋe ꢈndependent
audꢈtorꢊ reported on tꢋe reꢊultꢊ of tꢋeꢈr audꢈt and on tꢋe keꢇ
audꢈt ꢌatterꢊ and tꢋe reꢊpectꢈve audꢈt procedure, ꢈncludꢈnꢉ tꢋe ꢈt dealt wꢈtꢋ poꢊꢊꢈble rꢈꢊkꢊ arꢈꢊꢈnꢉ froꢌ tꢋe ꢊtatute of lꢈꢌꢈtatꢈonꢊ
concluꢊꢈonꢊ drawn, aꢊ well aꢊ on tꢋe voluntarꢇ revꢈew of tꢋe
non-financꢈal report wꢈtꢋꢈn tꢋe fraꢌework of a lꢈꢌꢈted aꢊꢊur-
ance enꢉaꢉeꢌent, and were avaꢈlable to anꢊwer queꢊtꢈonꢊ and
to provꢈde furtꢋer ꢈnforꢌatꢈon. Followꢈnꢉ tꢋe final reꢊultꢊ of tꢋe
revꢈew bꢇ tꢋe Audꢈt Coꢌꢌꢈttee and ꢈtꢊ own revꢈew, tꢋe super-
vꢈꢊorꢇ Board declared ꢈtꢊ aꢉreeꢌent wꢈtꢋ tꢋe reꢊultꢊ of tꢋe
audꢈt carrꢈed out bꢇ tꢋe external audꢈtorꢊ. it deterꢌꢈned tꢋat
and arranꢉed for approprꢈate precautꢈonꢊ to be taken. Fꢈnallꢇ,
tꢋe supervꢈꢊorꢇ Board receꢈved reportꢊ on tꢋe external certꢈfi-
catꢈon of ꢊelected partꢈal areaꢊ of tꢋe coꢌplꢈance ꢌanaꢉeꢌent
ꢊꢇꢊteꢌ.
