oerlikon

Duration of mandate and lead auditor's term of office

KPMG AG was elected as auditor by the General Meeting of May 23, 2003 for the first time. At the 33rd General Meeting of May 23, 2006, they were confirmed in that role for a further year. The lead auditor, Mr. Herbert Bussmann, conducted audit work on behalf of Oerlikon for the first time upon the examination of the company's 2005 financial statements.

Auditing fees

In the calendar year 2006, KPMG AG invoiced the company for CHF 2.3 million for global auditing fees.

Additional fees

In the calendar year 2006, KPMG AG invoiced the company for CHF 1.0 million for additional services.

Supervisory and control instruments pertaining to audit

The Audit Committee of the Board of Directors conducts a thorough annual assessment of the performance, remuneration and independence of the auditors and Group auditors and submits a proposal to the Board of Directors for the election of external auditors by the General Meeting of shareholders. On the basis of an integrated strategic audit plan that encompasses both the internal and external audit, the Audit Committee conducts an annual examination of the auditing plan for the upcoming annual financial statements. Once the auditing work has been completed, the results are analyzed and discussed with the external auditors through a comprehensive management letter. The results of this constitute the basis for determining the following year's audit plan.

The Chairman of the Audit Committee meets regularly with the lead auditor and other representatives of the audit company. They also participate in meetings of the Audit Committee dealing with the relevant agenda points.

In the reported year, KPMG AG participated in one meeting of the Audit Committee.