Proposals and recommendations to the Annual General Meeting

Having stated all of the above, the Supervisory Board endorses the report of the Management Board. We propose that the AGM adopt the 2020 Annual Accounts audited by EY Accountants LLP. In accordance with Article 6 (2) of the State-FMO Agreement of November 16, 1998 and the current dividend policy, we propose that the AGM approve the allocation of €205 million net loss  (2019: €120 million net profit) as follows: €6.1 million to the other reserves and the remaining net loss to the contractual reserve. Regarding the 2019 results, the General Meeting of Shareholders - at the proposal of the Supervisory Board and Management Board - allocated the distributable part of the profit of €2.7 million to the contractual reserve, however, we propose to allocate this amount to the other reserves, based on more insights. We recommend that the AGM adopt our proposals.

The Supervisory Board will inform its shareholders on the status of the search for a new CEO.

We trust that the AGM will also discharge the Management Board for its management of FMO and the Supervisory Board for its supervision during the reporting year.