The Supervisory Board intensively supported the Executive Board in implementing MVV Energie’s corporate strategies in fiscal year 2002/03. It performed the duties incumbent upon it by law and by corporate charter and supervised the Executive Board in managing the MVV Energie Group.

The Executive Board informed us about important corporate events as well as about the status and development of the enterprise in three ordinary sessions and five extraordinary sessions. Significant business events and questions were thoroughly discussed. In addition, we received information on important happenings and decisions through quarterly financial reports as well as through oral and written briefings between sessions.

We were regularly informed about developments in key financial indicators and have also fulfilled our duties with respect to risk management. We were also provided with detailed information on measures that required the approval of the Supervisory Board in timely fashion so that we were able to debate our decisions properly and to weigh them carefully.

The auditing commission convened three times in fiscal year 2002/03. The commission on human resources met five times during this period.

Key Issues of the Supervisory Board

Key issues of the Supervisory Board‘s work included acquiring participations, conducting various projects within the framework of planned and rapid expansion of a renewable energy segment, monitoring current developments in other segments and at major participations as well as appointing new members to the supervisory boards at various participations. Moreover, we have thoroughly examined the medium-term and strategic planning for the MVV Energie Group.

Another important point of discussion was the conclusion of a letter of intent between MVV RHE AG and the Mannheim central powerplant (GKM AG). This letter of intent concerns taking over operative facility management at MVV Energie’s energy from waste plant (MHKW) in Mannheim and incorporating an operation & maintenance enterprise, in which to bundle the facility-management capacities for all of the MVV Energie Group‘s energy from waste plants and biomass powerplants.

New Members Appointed to Executive Board

Fiscal year 2002/03 was marked by significant personnel changes in MVV Energie‘s Executive Board. Mr. Klaus Curth, who as personnel director was responsible for social and general services as well as data processing, retired as of December 31, 2002. He had been a member of the Executive Board since December 1, 1989. We appointed Mr. Hans-Jürgen Farrenkopf as his successor as of January 1, 2003. We would like to thank Mr. Curth for his long and successful work as a member of the Executive Board of MVV Energie.

As of September 30, 2003, Mr. Roland Hartung, the chief executive officer and who as commercial director was responsible for the resource recovery programme, retired from the Executive Board for reasons of age. Mr. Hartung had been a member of the Executive Board since July 1, 1988. The Supervisory Board had been actively engaged in selecting a successor early on. At its meeting of March 21, 2003, Dr. Rudolf Schulten was named to the Executive Board as commercial director responsible for the resource recovery programme and as chief executive officer of MVV Energie as of October 1, 2003.

The Supervisory Board would like to express its gratitude and admiration for Mr. Hartung’s outstanding contributions to the corporate development as chief executive officer of the MVV Energie Group during the past 15 years. With the IPO in 1999, which numbers among the most important milestones in Roland Hartung‘s career, the foundation was laid for the rapid growth of the MVV Energie Group through acquisitions, new windows of opportunity and internationalisation.

Furthermore, we have created a new position on the Executive Board based on the results of a structural and organisational comparison of our Executive Board with that of others companies that we commissioned last year. The new director will be responsible for marketing and sales as well as for value-added services and will strengthen the sales orientation of the MVV Energie Group. At our meeting on June 26, 2003, we named Mr. Karl-Heinz Trautmann to this new position on the Executive Board as of October 1, 2003.