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New investment opportunities are examined by the Executive Board and, if necessary, presented to the Supervisory Board at regular Supervisory Board meetings. Investment decisions are made by the Executive Board and then submitted to the Supervisory Board for approval within the framework of a decision paper. Moreover, the Executive and Supervisory Boards discuss develop- ments on the capital and credit markets as well as the effects of these not only on the Company’s strategy but also in terms of raising equity and obtaining borrowed capital. The Supervisory Board and its committees also discuss other topical issues with the Executive Board as required. Transactions requiring the approval of the Supervisory Board are discussed and resolved upon at the scheduled meetings. For transactions requiring approval, teleconferences are also conducted with the Supervisory Board or its committees and circular resolutions are passed in writing. Corporate Governance 2013 The Government Commission on the German Corporate Governance Code published the German Corporate Governance Code on 26 Febru- ary 2002 and approved amendments and additions to individual rec- ommendations and suggestions, most recently on 13 May 2013. Going forward, the Government Commission will continue to monitor the development of corporate governance in legislation and in practice, and will adapt the Code as needed. Working methods of the Executive and Supervisory Boards The Supervisory and Executive Boards performed their statutory du- ties in financial year 2013 in accordance with the applicable laws and the Articles of Association. The strategic orientation of the Company was coordinated between the Executive Board and the Supervisory Board, and the progress of strategy implementation was discussed at regular intervals. The Executive Board informed the Supervisory Board regularly, promptly and in detail of business developments and the risk situation. Detailed information on the main areas of focus of the Supervisory Board’s activities in the 2013 financial year can be found in its report on pages 14 to 19. In financial year 2013, there were no advisory or other contracts for work or services in existence between members of the Supervisory Board and the Company. Differentiated rental system One key component of our leasing concept is a differentiated rental system. While individual owners in city centres are often concerned with achieving the highest possible rents for their property (which re- sults in a monostructured retail offering), we ensure an attractive sec- tor mix and long-term optimisation of our rental income through com- bined costing. The rent our lessees pay is dependent on their sector and turnover. Indexed minimum rents (based on the consumer price index) provide a guaranteed minimum level of income for Deutsche EuroShop AG during economic slowdowns. The concept of shopping as an experience We have outsourced center management to an experienced external partner, Hamburg-based ECE Projektmanagement GmbH & Co. KG (ECE). ECE has been developing, planning, implementing, leasing and managing shopping centers since 1965. With 189 shopping centers currently under management, the company is Europe’s market lead- er in this segment. We consider professional center management to be the key to the success of a shopping center. Not only does it ensure uniform opening hours and a consistently friendly, bright, safe and clean shopping atmosphere, it also makes shopping an experience with occasionally extraordinary presentations of merchandise, pro- motions and exhibitions. The 500,000 to 600,000 people who visit our 19 centers on average every day are fascinated by the variety of sec- tors represented but also by our wide range of car shows, casting shows, fashion shows and attractions for children. These transform shopping centers into marketplaces where something new and spec- tacular is always on offer. Working methods of the Executive and Supervisory Boards The strategic orientation of the Company is coordinated between the Executive Board and the Supervisory Board, and the progress of strat- egy implementation is discussed at regular intervals. The Executive Board is required to inform the Supervisory Board regularly, prompt- ly and in detail of business developments. The Executive and Super- visory Boards examine the Company’s net assets, financial position and results of operations, as well as its risk management, regularly and in detail. In this context, the formal conditions for implementing an efficient system of managing and monitoring the Company are checked, as is whether the means of supervision are effective. The significant factors affecting the business are determined by the Ex- ecutive Board, which notifies the Supervisory Board. The committees advise on the development of the portfolio properties, their turnover trends, accounts receivable, occupancy rates, construction measures and liquidity, as well as investment cost trends for our new develop- ment projects. The sales trends and payment patterns of tenants are observed in detail so that consequences can be drawn from these wherever required. DEUTSCHEEUROSHOPGESCHÄFTSBERICHT2013/INVESTORRELATIONS 113