Daumann Heavy Construction Quarterly Shareholder and Board Report

[{Daumann Heavy Construction}]

Daumann Heavy Construction Quarterly Shareholder and Board Report

*redacted parts are visible only to Board Members

Q1 827 A.S.

After a tumultuous 826 Fiscal year, it can be unequivocally said that Q1 presents Daumann with a promising outlook. Herebelow is a brief summary of Daumann's actions and important events in the first 3 months of year 827.

• Shareholder confidence and economical situation
  

Daumann [DHC] stock value has increased by 14 % and begins to reach pre-826 levels. The currently ongoing reorganisation spearheaded by Daumann's Generaldirektor Albert Kelsen has managed to lower Daumann's operating costs by 4 %. Revenues from mining operations are up by 8 %, while revenues from Trading Division are up by 2 % and Manufacturing Divison are down by 3 %. Daumann's cash-flow situation has significantly improved.

Losses to piracy and terrorism lowered by 20 %, the highest reduction noted is in the Unioner-affiliated piracy bracket. Highest piracy and terrorism losses remain attributed to the Red Hessians, Xenos, Coalition and unaffiliated pirates.

Daumann has contracted several high profile mining and transportation operations in the past quarter which were a significant success. Ad hoc premiums will be paid to the captains of the Bavaria, Konigsberg and Brandenburg trading vessels. We've accumulated over 96 hours of flight hours [//faction activity//], with few incidents.

Daumann covoy Epsilon-4 in front of Planet Denver

Hirings are up across all Divisions with notable mentions of several Mining and Trading captains.

• Security Division enhancements
  

As a result of the current hostile situation in the Omegas, Daumann has heavily invested into it's Security Division and established a new Convoy Security Division (CSD) sub-branch. Daumann has also managed to secure licenses from the Rheinland Military which allow the pilots within the CSD to operate [redacted number] of 90-ARKM-N60E "Sleipnir" Rheinland Very Heavy Fighters, [redacted number] of 19-ARKM-N82 "Mjolnir" Rheinland Super Heavy Fighter and [redacted number] of 140-ARKM-N58 "Bergelmir" Rheinland Bombers as well as [redacted number] of "Oder"-class Gunboats. Daumann's Security Division has acquired several new experienced pilots.

• Rugen Accords and Bretonia license
  

One of the largest feats in the past quarter is the negotiation and the following ratification of the Rugen Accords with the Kingdom of Bretonia which has secured Rugen's future for the foreseeable future as well as improved Daumann's relations with the Kingdom of Bretonia.

Daumann has also managed to secure Military Material License which allows Daumann to transport Armaments, Light Arms, Marines, Military Vehicles, MOX, Munitions, Nuclear Devices, Plutonium, Side Arms, Maltese Light Arms, Prisoners and Criminals within the Kingdom of Bretonia. This license is valid until 19th September 827.

[REDACTED PORTION]

• Political capital and military relations
  

The current ruling coalition as a whole is not overly-sympathetic to Daumann however, long-standing military and other construction projects remain unaltered. The relationship with Büro des Marinenachrichtendiensts can be considered highly unfriendly to Daumann. Additional measures against espionage should be taken as a result. Relationship with the Rheinland Military and specifically the SMR and RMK branches remains good. Further cooperation should be explored, especially in the ongoing operations against the Rotte Hesse and training of CSD pilots. Keeping the Omega artery safe is of primary focus to Daumann and Rheinland as a whole.

Daumann has donated money (or other favours such as local construction contracts) either directly or via proxy to campaigns of several key Bundestag members across all political parties. At the moment Daumann is a chief fundraiser of the Imperial Party of Rheinland and enjoys a strong relationship with it. Generaldirektor Kelsen is a member of the IPR and its Bundestag representative. Daumann has strong expectations based on this relationship.

• Risks
  

The current political instability is unfavourable to Daumann. It is of priority to seek and procure a stable and friendly regime as soon as possible. High competition from foreign megacorporations remain an issue and government contracts need to be protected at all costs as they represent large portion of Daumann's income. Close attention should be paid to other Rheinland corporations and their projects.

• Relocation of R&D Division
  

Beginning with the second quarter of 827, Daumann will begin moving it's sensitive R&D projects to Ennibeck station in the Omicron Delta system. The extra-regional status of Ennibeck allows Daumann to conduct wider scale of research projects unburdened by Rheinland's domestic laws and strong oversight. This will allow Daumann to research and produce at a faster rate than previously possible as well as conduct experiments which would otherwise not be possible on Daumann's other installations. Counter-espionage measures will be taken.

Procurement of one "Corvo" Civilian Deep Space Explorer should be considered for the most sensitive R&D projects.

[END OF REDACTED PORTION]

• The future
  

Daumann is entering the next quarter with high ambitions. Daumann will focus on improving and strengthening relations with other Sirius wide corporations. Several high-profile convoys are in the planning stage. Additional hirings will be conducted with increased focus on the Security division. Daumann will continue to assist all branches of Rheinland security forces with subdual of the Red Hessians and other criminal factions. Construction Division also plans further modernization upgrades and various work-safety related upgrades to create a better work environment for all its workers. Daumann will also focus on developing stornger cash reserves in its HolsteinBank subsidiary. DHC is currently preparing for a mandatory renewal of it's Rheinland-wide license [//officialdom request//]

This report has been produced by the Generaldirektor Albert Kelsen and independently audited.

[{Daumann Heavy Construction}]

Daumann Heavy Construction Quarterly Shareholder and Board Report

*redacted parts are visible only to Board Members

Q2 827 A.S.

Many events have occurred in the past three months. Here below is a brief summary of Daumann's actions and important events in the second quarter of 827.

• Overall situation in Rheinland and Daumann's economic performance
  

The most important milestone of the second quarter is unquestionably the Imperial revolution. The people of Rheinland have shown their will and cast down the old Federal Republic, giving a rise to the reconstituted Empire of Rheinland. Daumann Heavy Construction has proudly voiced its support of the Emperor and His government. This rebirth of the Empire was however neither painless nor without opposition. The old Federal government continues to oppose the legitimate government of Rheinland's people and Hessians forces have grown bolder, managing to capture the Cologne system. The resulting loss of the Cologne corridor constitutes a major obstacle in the trade with the Confederal Gallia. Of certain importance is also the open treason of ALG Waste Disposal manifesting itself in the open support of the so-called Federalist forces.

Nonetheless, Daumann finds itself committed to the war effort against the Rote Hesse and supports the government's anti-insurgency mission against the Federalist forces disrupting peace and committing crimes against the Rheinland and its people. This combat needs also reflect in an increased number of governmental manufacturing contracts. Fabrication of military vessels and equipment has markedly increased compared to last quarter.

In inter-House terms, Daumann has established stronger ties with the House of Bretonia, helping the House in the building of its Cambridge shipyard. Economic ties with the Reformed Empire of Kusari remain strong. Trade with the Republic of Liberty has decreased due to the Liberty's refusal to recognize the Empire and generally unfriendly outlook towards Rheinland.

As a result of the immediate upheaval following the revolution, [DHC] stock has lost significant value, nonetheless some of the losses were already recovered by the time of this report.

Daumann has once again conducted several high profile mining and transportation operations in the past quarter which were again constituted significant success. Of particular importance is the Holmium-Magnets trade convoy which has brought important building materials sourced from Gallia. This convoy has allowed Daumann to create a sizeable stockpile of these critical materials.

Daumann covoy Gamma-6 in Tau-53

Hirings have remained steady.

• Security Division
  

Daumann's Convoy Security Division (CSD) continues to play an integral part in the defense of Daumann's interests.

[REDACTED PORTION]

• Political capital and military relations
  

Political capital has greatly increased in the re-established Empire. Daumann continues to be a strong ally of the new government and enjoys a strong support in return. The protectionist policies of the new regime directly favor DHC. As a chief supplier of the Rheinswehr, Daumann holds an irreplaceable role in the Empire's manufacturing process. Strong and open support of the Empire is in Daumann's interest. Relations with the Military itself remain good and cordial. The introduction of the Generaldirektor into the ranks of Imperial nobility will without a doubt be beneficial to the company.

• Partnership with Montluc Advanced Engineering
  

Daumann has established a mutually beneficial partnership with Montluc Advanced Engineering. Said partnership includes distribution rights to Gallic ships and manufacturing contract for a Bustard-carrier vessel. Relationship with MAE should be maintained and cultivated.

• Risks
  

Daumann's open support of the Empire makes it a target of the Federalist forces and causes a diminished trading activity with the Republic of Liberty. Nonetheless, the influence of Daumann's participation in the building of the Empire brings more than makes up for any possible losses incurred by Daumann's unambiguous stance in the civil war.

[END OF REDACTED PORTION]

• The future
  

While the conflict in Rheinland has an undeniably negative impact on Daumann's situation, the Empire's anti-corruption initiatives and focus on the people of Rheinland rather than foreign corporations will make up for any short-term losses Daumann might incur. Daumann Heavy Construction will continue being the leading manufacturing, mining, trading, and research company in Rheinland while maintaining the highest degree of corporate social responsibility.

This report has been produced by the Generaldirektor Albert Kelsen and independently audited.

---

Daumann Heavy Construction

DHC Discord