Declaration of Conformity with the German Corporate Governance Code pursuant to § 161 of the German Stock Corporation Act (AktG)
The Board of Management and Supervisory Board of HORNBACH HOLDING Aktiengesellschaft hereby declare pursuant to § 161 of the German Stock Corporation Act (AktG):
I. Future-related section
The recommendations of the "German Corporate Governance Code" in the version dated June24,2014 and published in the Federal Official Gazette on September30,2014 will basically be complied with in future. No application will be made of the recommendations in Points 3.8 (3), 4.1.5, 4.2.3 (4) and (5), 4.2.5 (3), 5.2 (2), 5.3.3, 5.4.1 (2) and (3) and 5.4.6 (3) Sentence 1.
These deviations from the recommendations are due to the following considerations:
a) Point 3.8 (3):
In Point 3.8 (3), the Code recommends agreeing a specified deductible in any D&O insurance policy taken out for supervisory board members. For supervisory board members as well, this should be based on the legal requirements for management board members arising due to the Act on the Appropriateness of Management Board Compensation (VorstAG) dated July 31, 2009. No such deductible has been agreed at the expense of Supervisory Board members. This would reduce the attractiveness of Supervisory Board activities, and thus also the company’s chances in the competition to attract qualified candidates. The recommendation made in Point 3.8 (3) is therefore not followed.
b) Point 4.2.3 (4) and (5):
No application is made of the recommendations in Point 4.2.3 (4) ("severance payment cap") and (5) ("change of control compensation cap") of the Code. The deviation to Point 4.2.3 (4) and (5) is due to competition-related factors. Apart from that, it still has to be definitively clarified whether and how the recommendations in Point 4.2.3 (4) are legally enforceable.
c) Point 4.2.5 (3):
The compensation paid to the Board of Management is not presented separately for each member. The Annual General Meeting held on July 8, 2011 resolved to uphold the more guarded approach towards reporting management board compensation. For the same reason, no use is made of the "model tables" included in the "German Corporate Governance Code".
d) Point 5.2 (2):
In Point 5.2 (2), the Code recommends that the supervisory board chairman should not simultaneously chair the audit committee. We deviate from this recommendation. Given the outstanding expertise and industry experience of the Chairman and the fact that he also holds the same position in the Audit Committee of HORNBACH- Baumarkt-Aktiengesellschaft, the largest subgroup, we deem this deviation appropriate.
e) Point 5.3.3:
In Point 5.3.3, the Code recommends that the supervisory board should form a nomination committee composed exclusively of shareholder representatives which proposes suitable candidates to the supervisory board for its election proposals to the Annual General Meeting. The company’s Supervisory Board has not formed such a committee. Based on our experience to date, the establishment of such a committee would not appear to be necessary.
f) Point 5.4.1 (2) and (3) and Point 4.1.5:
The company deviates from the recommendations made in Points 5.4.1 (2) and (3) and in Point 4.1.5. In the interests of the company, in terms of the composition of its Board of Management and Supervisory Board, as well as of other management positions, HORNBACH HOLDING Aktiengesellschaft accords priority above all to the knowledge, ability and expert experience of the individual in question.
g) Point 5.4.6 (3) Sentence 1:
In Point 5.4.6 (3) Sentence 1, the Code recommends that the compensation of supervisory board members be reported in the notes to the financial statements or the management report on an individual basis and broken down into its constituent components. Given that the amount of compensation paid to the Supervisory Board is governed by the Articles of Association, we see no need to disclose individual compensation packages.
II. Past-related section
Period since submission of previous Declaration of Conformity on December 19, 2013 through to publication of new version of Code on September 30, 2014:
The recommendations of the “German Corporate Governance Code” in the version dated May 13, 2013 and published in the Federal Official Gazette on June 10, 2013 were complied with in the period since the submission of the previous Declaration of Conformity on December 19, 2013 through to publication of the new version of the Code on September 30, 2014 with the exception of the deviations already listed and substantiated for the future in Section I – to the extent that such refer to recommendations with unamended content in the version dated May 13, 2013.
Period since publication of new version of Code on September 30, 2014:
The recommendations of the "German Corporate Governance Code" in the version dated June 24, 2014 and published in the Federal Official Gazette on September 30, 2014 were complied with apart from the deviations already listed and substantiated for the future in Section I.
Neustadt an der Weinstrasse, December 2014
HORNBACH HOLDING Aktiengesellschaft
The Supervisory Board The Board of Management
Statement of Compliance
(as of December 2014; PDF, 33 KB)
(as of 2013/12/19; PDF, 26 KB)
(as of 2012/12/20; PDF, 24 KB)
(as of 2012/05/16; PDF, 98 KB)
(as of 2011/12/21; PDF, 25 KB)
(as of 2010/12/17; PDF, 26 KB)
(as of 2009/12/18; PDF, 23 KB)
(as of 2009/05/20; PDF, 22 KB)
(as of 2008/12/17; PDF, 26 KB)
(as of 2007/12/04; PDF, 24 KB)
(as of 2006/12/06; PDF, 23 KB)
(as of 2005/12/08; PDF, 46 KB)
(as of 2004/12/09; PDF, 22 KB)
(as of 2003/11/26; PDF, 24 KB)
(as of 2002/11/27; PDF, 12 KB)