Corporate governance stands for accountability in managing an enterprise as well as for dedication to increasing sustainable shareholder value.

This not only includes internal and external control mechanisms, but also organisational flows as well as principles and guidelines of a company’s business policies. Corporate governance that is proper and clear-cut will foster trust in the management and supervision of enterprises among investors, business partners, employees and the public.

In February 2002, the Government Commission on the German Corporate Governance Code first published the basic principles of corporate management, control and transparency in one set of standards/code. It is largely based on legal regulations governing corporate management and supervision in Germany. Moreover, this code makes recommendations that go beyond legal regulations, from which companies, however, may deviate. It is mandatory for the executive and supervisory boards of publicly listed enterprises to submit an annual declaration of compliance in accordance with Art. 161 of the German Stock Corporation Act (AktG), indicating whether they have complied with these recommendations or to what extent they have deviated therefrom. Furthermore, this code provides suggestions from which companies can also deviate without disclosing their reasons. The German Corporate Governance Code is regularly updated and adapted to changing conditions/changes in the regulatory framework as required. The last time that this occurred was on May 21, 2003.

MVV Energie is committed to value-based corporate management and has provided for efficient and responsible oversight and control in its corporate group. We have regularly informed our shareholders and the public openly and comprehensively about current and planned courses of business. We have been making use, inter alia, of our Investor Relations´ Internet web site (www.mvv-investor.de) to furnish timely and uniform information. At this site MVV Energie‘s most important financial events and their dates can be found on its publicly accessible company timetable. Our accounting practices are also oriented towards national and international standards: The consolidated financial statements of MVV Energie AG are prepared in accordance with the principles of International Financial Reporting Standards (IFRS), while the financial statements of MVV Energie AG are in line with those of the German Commercial Code (HGB).