Consolidated Financial Statements - L. Possehl & Co. mbH

Dr Lutz Peters
Letter from the Advisory Council
LADIES AND GENTLEMEN,
The Executive Board of L. Possehl & Co. mbH has kept the Advisory Council informed on a regular basis during
fi scal year 2005 regarding the course of business, the earnings and fi nancial position of the company, investment
activities and possible corporate acquisitions.
The Advisory Council has advised the Executive Board and performed the duties incumbent
upon it in its role as the corporate supervisory board. The Advisory Council has been
comprehensively informed about important business transactions within the scope of the
regular reporting procedures as well as outside of the advisory council meetings. A timely
and detailed relaying of information regarding the progress of business as well as the
economic position of the company and the individual Group companies was thereby
assured. The chairman of the Advisory Council also remained in close contact with the
Chairman of the Executive Board of the company.
The Advisory Council convened for four ordinary and two extraordinary meetings in fi scal
year 2005. During these meetings, the Advisory Council discussed in detail the company
situation, the completed and pending corporate purchases and disposals, the consolidated
fi nancial statements of the company and the corporate strategy. The Advisory Council reviewed all important individual
business transactions and made decisions regarding any events brought forth that required its approval.
Of particular signifi cance were the discussions and approvals regarding the acquisition of the company currently
trading under the name of Harburg-Freudenberger Maschinenbau GmbH, the majority acquisition of Hako Holding
GmbH & Co. KG and the acquisition of the remaining 19.9 % of shares in Possehl Electronics N.V. Detailed advice
was also provided regarding the disposal of the 10 % share in Süd-Chemie AG and the management buy-out of
Bewehrungstechnik Pätau-Possehl GmbH.
The annual fi nancial statements and the consolidated fi nancial statements were prepared according to the
principles of the German Commercial Code (HGB). BDO Deutsche Warentreuhand Aktiengesellschaft,
Wirtschafts prüfungsgesellschaft, Hamburg, audited the individual and consolidated fi nancial statements of
L. Possehl & Co. mbH, the management report and group management report and provided them each with an
unqualifi ed auditors’ certifi cate.
In its meeting of May 4, 2006, in the presence of the auditors, the Advisory Council provided detailed advice as
to the auditors’ report as well as the main points and results of the audit. The Advisory Council agreed with the
results of the audit without any objections.
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