During the difficult financial year under review, the Supervisory Board continually advised, monitored, and supervised the management of the company. The Management Board informed the Supervisory Board regularly, without delay and comprehensively, both orally and in writing, of all issues important to the Group with regard to its situation, business development, key financial indicators, and market developments. In addition, detailed reports and explanations were given to the Supervisory Board regarding the prevailing risk situation, and on the Group's risk control and risk management measures taken. The Supervisory Board also received comprehensive reports on the develop- ment of business segments, and on operative and strategic planning. The Supervisory Board was informed about, and involved in, all important decisions. All material events were discussed and examined in detail; where a Supervisory Board resolution was required, the proposals and documentation were submitted to the Supervisory Board, and a decision taken. Between the meetings of the Supervisory Board, the Chairman of the Management Board kept me informed, on a continuous and regular basis, both orally and in writing, on all material devel- opments of the company. The Chairman of the Management Board maintained close contact with myself in order to discuss key issues and impor- tant decisions personally. Activities of the plenary meeting of the Supervisory Board The Supervisory Board met on five scheduled occasions during the financial year under review. During the scheduled meetings, the members of the Supervisory Board received reports and explanations by the members of the Management Board, and discussed these in detail. Dealing with the challenges brought about by the financial markets crisis was a focal aspect of deliberations and reporting during all meetings. Specifically, this included monitoring the prevailing develop- ments in Aareal Bank's business and regulatory environment, and the bank's necessary response. A further key aspect of the Supervisory Board's work was the reporting on the internal growth programme, together with related discussions and the implementation of measures. Reports and extensive discussions covered the programme as Report of the Supervisory Board of Aareal Bank AG, Wiesbaden Ladies and gentlemen, dear shareholders, During the financial year under review, the crisis affecting international financial markets subjected the financial sector to turbulences on an unprecedented scale. To date, Aareal Bank AG successfully weathered the resulting challenges. The Supervisory Board takes this as a con- firmation of the viability of Aareal Bank Group's business model. 42 Aareal Bank Group ­ Annual Report 2008 | Report of the Supervisory Board