Matth. Hohner AG

Notes to the Consolidated Financial Statements for Business Year 2010/2011
Reimbursements
At balance sheet date an amount of TEUR 0 (prior year: TEUR 45) was recognized for reimbursement claims
against the “Bundesagentur für Arbeit” resulting of phased retirement agreements. The reimbursements are
included in the other receivables in the prior year.
Other receivables (non-current)
The other receivables (non-current) are at an amount of TEUR 383 (prior year: TEUR 439) at balance sheet
date. There have not been any bad debt allowances for these receivables, since the creditworthiness of the
debtors is ensured and payment receipt for the outstanding receivables is expected.
7. Cash and cash equivalents and short-term investments
Bank balances are subject to floating interest rates for short-term deposits. An amount of TEUR 206
(prior year: TEUR 366) was used to secure a revolving line of credit, and was therefore restricted in use
for the group.
8. Payments in advance and prepaid expenses
On the balance sheet day payments in advance in an amount of TEUR 197 (prior year: TEUR 162) and prepaid
expenses in an amount of TEUR 7 (prior year: TEUR 6) are accounted.
These assets concludes issues that are booked in the reporting year and concerning the following business
year, amongst others licences, insurances, fair costs.
9. Equity
Subscribed capital
The capital stock of Matth. Hohner Aktiengesellschaft amounts to EUR 7,950,000.00 as in the prior year and
comprises 3,000,000 no-par value bearer shares with a computable value of capital stock of EUR 2.65 per share.
Upon the Supervisory Board’s approval, the Management Board is authorized to increase the Company’s capital
stock by a total of EUR 3,975,000.00 on or before November 27, 2011, either in a single transaction or using
several partial increases, by issuing new bearer shares in return for cash contributions or contributions in kind.
Shareholders shall be granted a subscription right.
However, the Management Board shall be authorized, upon the Supervisory Board’s approval, to exclude
shareholders’ subscription right
• in the event of a capital increase against cash, if, for the purposes of §§ 203 Section 1 and 2, 186 Section 3
Sentence 4 German Stock Corporation Act (AktG), the total amount issued as new shares fails to fall
significantly short of the stock price of Company shares issued on identical terms at the time the amount
to be issued is set. Such exclusion of subscription rights shall be limited to a total maximum of 10 % of
the Company’s capital stock existing both at the time such authorization takes effect and such authorization
is exercised. Any shares sold or issued during the term of such authorization due to other authorizations
reflecting immediate or analogous application of § 186 Section 3 Sentence 4 German Stock Corporation Act
(AktG), resulting in subscription rights being excluded, shall be credited against such limit;
• in the event of a capital increase against contributions in kind for the purpose of acquiring companies,
business units, investments in companies, or other assets;
• To exclude residual amounts from the subscription right.
Furthermore, the Management Board is authorized, to repurchase shares of the corporation until November 15,
2015. The authorization is limited to the repurchase of shares up to a proportional amount of the equity capital
of EUR 795,000.00. This is about 10% of the existing equity capital of EUR 7,950,000.00. The time limit only
applies for purchasing and not for holding the shares.
The share repurchase is made via the stock exchange or by a purchase offer publicly addressed to the
shareholders of the corporation so that the equality principle (§53a Stock Corporation Act) is observed. If the
share repurchase is made via the stock exchange, the nominal value of each share paid by the corporation
(without additional expenses of acquisition) may not exceed more than 15 % or undercut more than 15 % of
the average closing price of the shares of the corporation in the Regulated Unofficial Market of the stock market
in Stuttgart on the ten trading days preceding the purchase. If there is no closing price on a trading day, the bid
price is used instead, if there is no bid price the appraisal price of this trading day is used.
Notes to the CoNsolidated FiNaNCial statemeNts Notes to the CoNsolidated FiNaNCial statemeNts
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