Page 19 - Annual Report 2019

Supervisory Board Report
Group Management Report
Consolidated Financial Statements
Annexes

3. Statement on Corporate Governance pursuant to Section 289f(4) of the
German Commercial Code for the 2019 fiscal year
Guidelines on promoting the participation of women in leadership positions pursuant to Sections 76(4),
111(5) AktG

The Management Board and Supervisory Board have defined target gender quotas pursuant
to the “Law on Equal Participation of Women and Men in Leadership Positions in the Private and
Public Sector”. The Supervisory Board’s target for the gender quota of the two-person Management
Board is still 0%. The Supervisory Board resolved to appoint at least two women members by
31 December 2021. There are currently four women on the Supervisory Board, Renate Dempfle
and Melanie Liebert representing the shareholders and Johanna Falasa and Carmen Teismann
representing the employees. The Management Board of HOFTEX GROUP AG has set a target of 20%
for the top management level below the Management Board on or before 31 December 2021.
The gender quota for the top management level is currently 33% women. No target has been set
for the second management level, as HOFTEX GROUP AG in its role as a holding company has a
flat hierarchy; there is therefore no continuous second management level.

4. Risk and opportunity report

The Hoftex Group is faced with numerous risks every day as part of the commercial undertakings of
the individual business sectors and, consequently, the subsidiaries or that arise due to external
influences. At the same time it is important for HOFTEX GROUP AG to identify opportunities for the
Company and to use these to achieve the Company’s targets and increase the competitiveness of
HOFTEX GROUP AG and its subsidiaries.

It is the management's responsibility to identify any risks at an early stage and implement suitable
measures to address them. The Hoftex Group established a corresponding risk management system
to enable this.

The matrix below shows the risks and opportunities of the Hoftex Group:
Strategic risks and market risks Operating risks

• Sites and countries • Production

• Competition • Purchasing and logistics

• Price • Personnel
• Market trends and sales • Project management
• Procurement market • Research and development
• Sales
• Information management

Financial risks Compliance risks

• Currencies and interest • Regulations and laws
• Receivables • Environment
• Liquidity • Code of conduct
• Inventory write-downs • Information security and data protection
• Tax law

• Capital markets

We will not go into each item in detail in the following. Instead, we will explain the areas with
relevant risks and opportunities.

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