Jan 01 Fe b Mar Apr Q2 May Jun Jul Q3 Au g S ep Oct Q4 N ov Dec The w ork of the Boar d of Director s The activities of the Boar d of Director s and the division of responsibilit y bet w een the Boar d and Group M ana g ement are g o v erned b y formal pro- cedures documented in a writ ten ins truction, which is adopted b y the Boar d each y ear after the Annual G ener al M eetin g. Accor din g to these procedures, the Boar d should determine , amon g other thin g s, the Group ’ s o v er all s tr ate gy , corpor ate acquisitions and propert y in v es tments abo v e a cert ain le v el, and es t ablish a fr amew ork for the Group ’ s oper ations throug h the Group ’ s bud g et . The procedures include a w ork ins truction for the President and CEO , as w ell as ins tructions for fnancial reportin g. The procedures also prescribe that an annual e v aluation of the w ork of the Boar d of Director s should be carried out . The Boar d held ten meetin g s in 2012, of which t w o took place b y tele - phone and t w o w ere held per capsulam. The auditor s participated in the Boar d meetin g in F ebruar y 2012, where the y presented the audit . The w ork of the Audit Commit tee The Boar d of Director s has es t ablished and appointed an Audit Commit tee , which oper ates under the ins tructions for the Audit Commit tee and meets with Securit as ’ auditor s at leas t four times per y ear . The Commit tee sup - ports the Boar d’ s qualit y -control w ork in terms of fnancial reports, and its internal control o v er fnancial reportin g. Specifcally , the Commit tee monitor s the fnancial reportin g, the efec - tiv eness of internal control, internal audit activities and the risk mana g e- ment sys tem. The Commit tee also s t a ys informed about annual s t atutor y audits. It assesses the e xternal auditor ’ s independence and appro v es the per formance of non-audit ser vices. The Commit tee presents its fndin g s and proposals to the Boar d, prior to the Boar d’ s decision. F or det ails re gar din g member s, independence and at tendance , refer to the t able on pa g e 36–37 . The Commit tee met four times durin g 2012. The ma jor topic s discussed are lis ted abo v e . * In addition to the topic s lis ted, other areas are discussed continuously , such as oper ational per for - mance , updates from divisions, s tr ate gy , mark et and competition, acquisitions, insur ance , credit risk, t ax mat ter s, le gal mat ter s, fundin g and refnancin g. ** Includes a s t andin g a g enda with updates on accountin g, treasur y , acquisitions, risk/insur ance , le gal, t ax, internal control, enterprise risk mana g ement , audit / consult anc y cos ts and auditor independence . *** Held per capsulam. **** T elephone meetin g s. Boar d of Director s Audit Commit tee (MA) M ana g ement Assur ance Q3 meetin g * • Q3 interim report • U pdate from Audit Commit tee • Business plan 2013 St atutor y meetin g • Appointment of commit tee member s • Authorization to sign for the compan y • W ork procedures (Boar d, Audit and R emuner ation Commit tees) Q1 meetin g * • Q1 interim report • U pdate from Audit Commit tee • Ta x • Acquisitions • Appro v al of Group policies Q1 meetin g • Q1 interim report • U pdates** • External auditor audit plan and fees • I n t e rnal (MA) Q1 2012 audit activities • Internal (MA) audit plan 2012 Q2 meetin g • Q2 interim report • U pdates** • External auditor half - y ear report • Internal (MA) Q2 2012 audit activities Q3 meetin g • Q3 interim report • U pdates** • Impairment tes t • Corpor ate g o v ernance report • Internal audit function assessment • External auditor early w arnin g report • Internal (MA) Q3 2012 audit activities Bud g et meetin g (oper ational visit) • Divisional business plans and bud g ets 2013 • Oper ational visit / present ation Q4 meetin g * • Q4 and full- y ear report • U pdate from Audit Commit tee • Audit report • Euro bond • R emuner ation • The share bonus scheme • Corpor ate g o v ernance report • A w ar din g of M elk er Schorlin g Scholar ship M eetin g *** • R emuner ation guidelines • Share bonus scheme proposal • Notice con v enin g the A GM 2011 Q4 meetin g • Q4 interim report and full- y ear report • U pdates** • Corpor ate g o v ernance report • External auditor report • Internal (MA) Q4 2011 audit activities and action plans M eetin g *** • R emuner ation guidelines • Share bonus scheme proposal • Notice con v enin g the A GM 2012 M eetin g **** M eetin g **** M eetin g *** • Annual R eport Q2 meetin g * • Q2 interim report • Financin g • T echnology solutions • U pdate from Audit Commit tee 35 Securit as Annual R eport 2012 G o v ernance and mana g ement Boar d of Director s ’ report on corpor ate g o v ernance and internal control