Auditors

Duration of the mandate and term of office of the auditor in charge
By a decision of the Shareholders’ General Meeting of 27 May 2011, KPMG AG, Zurich, were appointed as statutory auditors for the accounting and financial statements of Phoenix Mecano AG and as Group auditors of the consolidated financial statements of the Phoenix Mecano Group for a period of one year. KPMG AG, Zurich, first assumed the mandate as statutory and Group auditors in 2006; the auditor in charge, Mr Roger Neininger, has also been in office since the 2006 Shareholders’ General Meeting. The auditor in charge is replaced every seven years.

Auditors’ fees
In the reporting year, KPMG received fees totalling EUR 776 000 for auditing the financial statements and consolidated financial statements.

Additional fees
KPMG received additional fees of EUR 429 000 in the reporting year: EUR 398 000 for tax consultancy and
EUR 31 000 for legal advice.

Audit supervision and control instruments
Phoenix Mecano has a dedicated full-time Internal Auditing Department and a Board of Directors’ Audit Committee. The external auditors attended both Audit Committee meetings in the reporting year. They inform the Audit Committee, both orally and in writing, of the outcome of the Group audit and the audit of the financial statements of Phoenix Mecano AG. Specific observations relating to the audit are presented to the Board of Directors in the form of a comprehensive report.

The Audit Committee assesses the statutory auditors’ performance annually based on the documents, reports and presentations they produce and the relevance and objectivity of their observations. In so doing, the Committee also takes into account the opinion of the CFO. The amount of the statutory auditors’ fees is regularly reviewed and compared with the auditing fees of other industrial companies. It is negotiated by the CFO and approved by the Audit Committee. All services performed outside the scope of the statutory audit mandate are compatible with the audit duties.