Annual Report - Sonova Holding AG

3.5 Reserve for treasury shares
A reserve for treasury shares in the amount of CHF 2,182,937 (previous year CHF 319,368) was established which is equal to the cost
price (see Note 3.1). The increase in the amount of CHF 1,863,569 was debited to retained earnings.
3.6 Summary of changes in shareholders’ equity
1,000 CHF
Balance April 1, 2005
Dividend paid
Capital increases (incl. share premium)
from conditional capital
Increase in reserve for treasury shares
Net profit for the year
Balance March 31, 2006
During the financial year 2005/06, an additional 338,525 registered shares with a par value of CHF 0.05 each, or a total par value of
CHF 16,926 were issued from the conditional capital (which was created for the purpose of an equity participation for key employees
of the Phonak Group) for a total net consideration of CHF 6,447,175. In the financial year 2005/06, the conditional share capital
with a par value of CHF 429,326 (8,586,520 shares) decreased by CHF 16,926 or 338,525 shares (previous year CHF 28,010 or 560,200
shares), thereby leaving CHF 412,400 (8,247,995 shares) for distribution. Based on the remaining conditional capital, a total of
1,842,693 (previous year 1,852,250) employee stock options were outstanding as of March 31, 2006, which can be exercised until
January 2011.
4. Notes to the income statement
Share
capital
3,301
4.1 Investment income
This comprises dividends received from Group companies and other investments.
17
3,318
4.2 Taxes
The tax expense consists of Swiss federal taxes on non-investment income (the company is exempt from income taxes in the canton
of Zurich).
General
legal
reserve
142,818
6,430
149,248
Free
reserve
98,000
98,000
Treasury share
reserve
319
1,864
2,183
Retained
earnings
47,558
(19,840)
(1,864)
45,274
71,128
Total
shareholders’
equity
291,996
(19,840)
6,447
45,274
323,877
Financial Statements of Phonak Holding AG
97