Report of the Supervisory Board for the 2015 financial year

HSH Nordbank looks back on an eventful 2015 financial year. The positive agreement in principle with the EU Commission meant not only that the replenishment of the second-loss guarantee by the federal states from € 7 to 10 billion was approved, but also a decision was taken on the future of the Bank. This event was significant given the backdrop of a continuing difficult market setting, in particular the still difficult situation in the shipping sector and volatile US dollar exchange rates. Speculation about the wind-down of HSH Nordbank ahead of the EU decision also did not fail to impact on the Bank’s business situation. This agreement in principle in October 2015 is all the more significant as it gives the owners, staff and clients a foundation for making dependable plans and strengthens the basis for the future of the Bank. At the same time it confirms the efforts made in recent weeks and months to resolutely build up the client business and reduce legacy assets in a risk-conscious manner and to rapidly implement the restructuring measures initiated. Amid this setting characterised by uncertainty the Supervisory Board advised the Management Board in the management of the company and monitored its management activities. Apart from questions relating to the Bank’s strategic alignment, which were discussed jointly with the Management Board in the course of a separate workshop, the Supervisory Board always kept itself informed on the economic and financial performance overall and of individual business segments. Deviations from planning in the course of business were explained to the Supervisory Board.

The Management Board informed the Supervisory Board regularly, punctually and comprehensively about business policy and other fundamental questions of corporate governance and planning, the financial performance, the income situation as well as the Bank’s risk, liquidity and capital management, about major legal disputes and transactions and events of considerable significance to the Bank. The Supervisory Board was involved in decisions of material importance for the Bank. The Chairman of the Supervisory Board and the Chairs of the Risk Committee and Audit Committee were moreover kept informed by the Management Board of important topics and of upcoming decisions, including between scheduled meeting dates. Where resolutions were required between meetings, these were passed by the Supervisory Board in writing.