DHL 1998 Annual Report Download - page 87

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Report by the Supervisory Board of Deutsche Post on the 1998 annual report
The Supervisory Board performed the duties assigned by legal mandate
and statutes. In financial 1998, it held five meetings.
The management has regularly informed the Supervisory Board in writing
about developments in sales and turnover and about the income situation
of the company. The Supervisory Board was informed about all important
business transactions. All measures requiring the approval of the Super-
visory Board were discussed at length. The Chairman of the Supervisory
Board kept in constant contact with the Chairman of the Board of Man-
agement and was informed about all important business transactions.
At the meetings held by the Supervisory Board, the Board of Management
gave a detailed account of the development of the business and of the income
of the company and its business divisions. The Board of Management an-
swered all questions posed by the Supervisory Board. In addition, numerous
other reports provided the Supervisory Board with comprehensive
information about the company’s general situation as well as about issues
of particular importance to the development of the company. The topics
discussed in length by the Supervisory Board included a series of interest
acquisitions as part of the growth strategy of Deutsche Post, approved
by the Supervisory Board in 1997, the acquisition of a majority share in
Deutsche Postbank AG; a first strategy report by the Board of Management,
and an update on preparations for the stock market flotation scheduled for
the year 2000.
The company’s growth strategy focussing on internationalization, expan-
sion of the product basis and value-added services, is being implemented
primarily through acquisitions, participating interests and cooperation
arrangements. Important corporate development milestones were the par-
ticipation in DHL, the market leader for express mail services, the acquisi-
tion of and participation in European parcels and logistics companies with
the aim of setting up a pan-European parcel network, and the take-over bid
submitted in December 1998, for the logistics group DANZAS AG, which
has meanwhile been accepted by the shareholders.
In the financial services area, with the purchase of the remaining 82.5% of
the shares of the Deutsche Postbank AG – in addition to the 17.5% already
in hand – an alliance reaching far beyond the existing contractual relations
could be created which provides the foundation for a joint offensive sales
strategy and creates additional opportunities for the realization of new in-
come and growth potentials.
The General Committee of the Supervisory Board held four meetings. The
agendas included preparing the meetings of the Supervisory Board with an
in-depth discussion of the key issues. At its four meetings the Personnel
Committee discussed a range of human resources issues including the
Corporate Principles and the Management Guideline. The Committee for
Miscellaneous Affairs held five meetings and discussed and agreed upon
the 1997 Annual Financial Statement, the salient points of the 1999 business
plan, the acquisition of participating interests,the economic situation of the
Josef Hattig,
Chairman