Page 5 - Annual Report 2019

Supervisory Board Report
Group Management Report
Consolidated Financial Statements
Annexes

The Annual General Meeting appointed Munich-based Deloitte & Touche GmbH Wirtschafts-
prüfungsgesellschaft as auditors of the single-entity and consolidated financial statements for
fiscal 2019. They audited the HOFTEX GROUP AG financial statements and the consolidated financial
statements for the year ending 31 December 2019 as well as the Group management report,
the accounting system and the accounting-related control system and issued them with an
unqualified audit certificate. Upon completion, all audit reports were immediately sent to the
members of the Supervisory Board.

The Company’s auditors were present at the 18 May 2020 annual report meeting of the Supervisory
Board, in which they engaged in a thorough discussion of the HOFTEX GROUP AG financial statements
and the consolidated financial statements for the year ending 31 December 2019, as well as the Group
management report, the Management Board’s proposal for the appropriation of the net retained
profits and the audit reports. The Supervisory Board duly noted and approved the audit findings.
Following the Supervisory Board’s careful review of the single-entity and consolidated financial
statements, the Group management report and the proposal for the appropriation of profits, no
objections were raised. The Supervisory Board approved and thus adopted the annual financial
statements prepared by the Management Board of HOFTEX GROUP AG as of 31 December 2019.
The consolidated financial statements and the Group management report were also adopted. The
Supervisory Board endorsed the Management Board’s proposal for the appropriation of net retained
profits.
The Management Board submitted to the Supervisory Board its report concerning the Company’s
relationship with its affiliates in fiscal 2019 as stipulated by Section 312 AktG (subordinate status
report) and the auditor’s report on the same. The auditor issued the report with the following
unqualified certification:
“Based on our duly performed audit and assessment, we hereby certify that:
1. The factual information contained in the report is accurate and
2. The consideration received by the Company for each legal transaction disclosed in the report
was not unreasonably high.”
The Supervisory Board duly noted the report and the findings of the audit of the report, reviewed
both reports and discussed the findings of each with the Management Board and the auditors. The
Supervisory Board concurred with the findings of the audit of the subordinate status report prepared
by the auditors.

At the end of the report, the Management Board declared that, based on the circumstances known to
it at the time the legal transactions were made with these affiliates, the Company received adequate
consideration for each legal transaction and neither took nor refrained from taking measures
in the best interest of the controlling company. Based on the findings of these discussions and its
assessment of the subordinate status report, the Supervisory Board raised no objections to this
declaration.

The members of the Supervisory Board would like to thank the Management Board and the entire
Group staff for their dedicated and successful efforts during the 2019 fiscal year.

Hof, May 2020

The Supervisory Board of HOFTEX GROUP AG

Tom Steger
Chairman of the Supervisory Board

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