Report by the Supervisory Board

In fiscal year 2008, the Supervisory Board performed its tasks in accordance with the law, the Articles of Association, the German Corporate Governance Code, and the bylaws. We advised and supervised the Executive Board in its management of the Company. The Executive Board informed us in a regular, timely, and comprehensive manner, orally and in writing, regarding the business strategy, corporate planning, the course of business, risk management, and the Company’s situation and profitability. It explained any deviations between actual and planned developments. The full Supervisory Board and the relevant committees discussed and examined in detail significant business transactions on the basis of the reports submitted by the Executive Board. Between Supervisory Board meetings, the Chairman of the Executive Board and the Chairman of the Supervisory Board discussed all matters of importance to the Company, including the Company’s strategy, business development, and risk management.

In the four regular Supervisory Board meetings, we regularly focused on current business developments, major individual business transactions, and measures by the Executive Board requiring Supervisory Board approval. We granted all necessary approvals after thorough examination and in-depth discussion. Three resolutions were taken in writing on the basis of detailed preparations and documents.

In the meeting on February 21, 2008, we elected a new Chairman of the Supervisory Board and a new additional Deputy Chairman of the Supervisory Board, and addressed the annual and consolidated financial statements for 2007, the proposed resolutions for the Annual General Meeting on April 30, 2008, the Company’s further strategic development, business developments, and the integration of C-BONS Hair Care, as well as business developments at the La Prairie Group. 

We used the Supervisory Board meeting on April 30, 2008 to prepare for the Annual General Meeting, to discuss and examine the Group's interim financial statements as of March 31, 2008, and to discuss current business developments.

In the September 4, 2008 meeting, we addressed the Group’s interim financial statements as of June 30, 2008, as well as business developments in Germany. Additional items discussed at the meeting included issues relating to the due and proper conduct of business operations (compliance) and the investigations by national antitrust authorities in Europe involving a number of companies, including Group affiliates.

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