Behind the Scenes Annual Report 2008 – Backstory The DFS Annual Report 2008 is divided into two separate volumes: Volume 1 Thematic parT Volume 2 Financial parT You can download or order both volumes of the Annual Report at www.dfs.de. The business year 2008 DFS Deutsche Flugsicherung Flugsicherung GmbH, Langen Report of the Supervisory Board In the 2008 business year, the Supervisory 2008 on the situation and development of Board performed its functions as pre- the corporation in accordance with Article scribed by legal provisions and the Articles 90 of the German Stock Corporation Law. of Association. The Supervisory Board regu- In 2008, there were five ordinary and two larly advised and monitored the activities of extraordinary meetings of the Supervisory the Board of Managing Directors and was Board. comprehensively involved in decisions of fundamental importance to the company. The Supervisory Board was supported by the audit, personnel and project commit- In the reporting period, the Supervisory tees. The three committees met to inten- Board was newly appointed for the next sively discuss draft proposals and to pre- Robert Scholl, Chairman scheduled term of office. pare resolutions for the Board's plenary meetings. On the Shareholder side, Jörg Hennerkes, Dr Dieter Knoll and Dr Michael Zumpe In addition to the quarterly reports on the retired from the Supervisory Board as of situation of the corporation, the Superviso- 22 April 2008. With effect from 23 April ry Board dealt with the following topics: 2008, Rainer Münz, Robert Scholl and Christiane Wietgrefe-Peckmann were n the annual financial statements of 2007, appointed as new members; in addition, management report and audit report on Dr Norbert Kloppenburg, Reinhard Kuhn the annual financial statements of 2007 and Hans-Dieter Poth as representatives of the Shareholder. and Otto Fischer, Holger Müller, Petra Reinecke n the annual and business plan for 2009 and Peter Schaaf were elected as new with the medium-term planning until employee representatives to the Supervi- 2013, including financial planning and sory Board in elections held between 7 staff planning. and 11 April 2008. They succeeded Karl- Heinz Gatz, Walter Keppler, Volker Röhrich Furthermore, the Supervisory Board and Martin Rumpf. addressed the following key issues: In the 62nd and constitutional meeting of n the changes in the distribution of the fourth term of office on 6 May 2008, responsibilities, the management sys- the Supervisory Board elected RoberT tems and the organisational structures Scholl as Chairman of the Supervisory as part of the strategy and structure Board. analysis; Within the scope of the quarterly reports n the involvement of DFS in the tender for and subsequent deliberations in the Super- the American FAA Contract Tower Pro- visory Board, the Board of Managing Direc- gram and the change to the Articles of tors reported to the Supervisory Board in Association; 4 n the membership in the Single European Sky ures. Through its commitment to the Single ATM Research Joint Undertaking; European Sky, DFS is making a major contribu- tion to the further development and strength- n the construction of air traffic control towers ening of the technical and operational integra- at the international airports of Frankfurt and tion of European air navigation service pro- Berlin-Brandenburg International (BBI); viders to promote mobility and environmental protection. The Supervisory Board has deter- as well as mined that the Board of Managing Directors has paved the way strategically for the future n the adjustment of DFS rules of internal pro- and reacted with appropriate measures to the cedure. slowing trend in traffic growth brought about by the international economic crisis. The Supervisory Board discussed the 2008 financial statements and the management The Supervisory Board wishes to thank the report with the assistance of the audit reporT Board of Managing Directors, the staff coun- prepared by SUSAT & Partner oHG Wirtschafts - cils and all members of staff for the outstand- prüfungsgesellschaft in accordance with Article ing performance delivered in 2008. 53 of the German Budgetary Principles Act. The comprehensive risk management firmly established in the company was included in the audit. The auditors participated in the discus- The Supervisory Board sions and answered questions, giving an account of the key results of their report. Overall, the Supervisory Board found no exceptions to be taken after completion of its examination. Robert Scholl Chairman The Supervisory Board could see from the reports by the Board of Managing Directors that the high safety level in German airspace was maintained despite increasing traffic fig- 5 DFS Deutsche Flugsicherung Flugsicherung GmbH, Langen Members of the Supervisory Board Chairman Rainer Münz Robert Scholl Ministerialdirigent Ministerialdirektor Federal Ministry of Transport, Building Federal Ministry of Transport, Building and Urban Affairs and Urban Affairs Hans-Dieter Poth Deputy Chairman Colonel (GS) Michael Schäfer Federal Ministry of Defence DFS Deutsche Flugsicherung GmbH Employee representative Petra Reinecke DFS Deutsche Flugsicherung GmbH Otto Fischer Employee representative DFS Deutsche Flugsicherung GmbH Employee representative Peter Schaaf DFS Deutsche Flugsicherung GmbH Dr Norbert Kloppenburg Employee representative Member of the Managing Board KfW Bankengruppe Dirk Wendland DFS Deutsche Flugsicherung GmbH Dr Reinhard Kuhn Employee representative Ministerialrat Federal Ministry of Defence Christiane Wietgrefe-Peckmann Regierungsdirektorin Holger Müller Federal Ministry of Finance DFS Deutsche Flugsicherung GmbH Employee representative Correct at April 2009 6 Members of the Advisory Council Chairman Prof Dr Elmar Giemulla Ulrich Schulte-Strathaus Ulrich Kasparick President Secretary General Parliamentary State Secretary Aircraft Owners and Pilots Association AEA – Association of European Airlines Federal Ministry of Transport, Building and AOPA Germany Urban Affairs Klaus-Peter Stieglitz Winfried Hermann Lieutenant General Member of Parliament Chief of Staff, Air Force Christine Alig German Bundestag Federal Ministry of Defence Chairwoman BARIG – Board of Airline Representatives in Norbert Königshofen Hans Joachim Suchan Germany e.V. Member of Parliament Administrative Director German Bundestag Zweites Deutsches Fernsehen, Uwe Beckmeyer 3sat and ARTE Member of Parliament Eric Kroese German Bundestag Special Advisor to the Minister on Aviation Policy Ralf Teckentrup Ministry of Transport, Public Works and Water President of the Executive Board Prof Dr Wilhelm Bender Management (Netherlands) Condor Flugdienst GmbH Chairman of the Executive Board Fraport AG – Frankfurt Airport Services World- Dr Klaus Lippold Hans-Joachim Tonnellier wide Chairman of the Committee on Transport, Chairman of the Board of Management Building and Urban Affairs Frankfurter Volksbank eG Markus Beumer German Bundestag Member of the Board of Managing Directors Daniel Weder Commerzbank AG Wolfgang Mayrhuber Chief Executive Officer Chairman of the Executive Board and Chief skyguide Charles-Louis d’Arenberg Executive Officer swiss air navigation services ltd Chairman of the Board Deutsche Lufthansa AG Belgocontrol Friedrich-Wilhelm Weitholz Ralf Nagel Chairman of the Executive Board Michael Eggenschwiler Senator for Economics and Ports of the Free Eurowings Luftverkehrs AG President Hanseatic City of Bremen ADV – German Airports Association e.V. Ernst Welteke Eduard Oswald Former Minister of State Wolfgang Faden Former Federal Minister Former President of German Bundesbank Chief Executive Officer Germany Member of Parliament Allianz Global Corporate & Specialty AG Chairman of the Finance Committee German Bundestag Permanent guest Dirk Fischer Robert Scholl Member of Parliament Dr Karl-Friedrich Rausch Chairman of the Supervisory Board German Bundestag Member of the Board of Management for Federal Ministry of Transport, Building and Passenger TransporT Urban Affairs Horst Friedrich DB Mobility Logistics AG Member of Parliament German Bundestag Prof Klaus-Dieter Scheurle Correct at April 2009 Managing Director Credit Suisse Securities (Europe Limited) 7 DFS Deutsche Flugsicherung GmbH, Langen Group management reporT for the business year ended 31 December 2008 Operating environment Overall economic situation Business activities The economy has been slowing down since DFS Deutsche Flugsicherung GmbH (DFS) is the middle of 2008. A number of industrialised responsible for air traffic control in Germany. It countries were already in a recession. In par- operates one of Europe's largest radar control ticular, the deepening of the crisis in the global centres in Langen, near Frankfurt. Further con- financial markets accelerated this trend. In the trol centres are located in Bremen, Karlsruhe previous year, the global economy posted and Munich. DFS also performs air traffic con- growth of only approximately 2.0% (estimate: trol at the 16 international airports in Germany. December 2008), industrialised countries The Berlin Senate decided to discontinue flight grew by only approximately 1.4%. It is antici- operations at Berlin-Tempelhof Airport in 2008. pated that the negative impact on the real Apart from performing air navigation services, economy stemming from the financial and DFS also operates and develops air traffic property markets will intensify and dominate management systems, surveillance systems the year 2009. as well as navigation aids. The company col-