Annual Report - Sonova Holding AG
Annual Report - Sonova Holding AG Annual Report - Sonova Holding AG
Key assumptions used for value-in-use calculations of material goodwill amounts: Cash-generating unit 1,000 CHF Unitron Group Hansaton Akustische Geräte-Gesellschaft m.b.H. Lapperre BHAC NV Phonak Ibérica S.A. CAS Produtos Médicos Ltda. Metro Hearing Inc. The discount rates applied are pre-tax. Based on the impairment tests, there was no need for the recognition of any impairment in financial years 2005/06 and 2004/05. 22. Provisions 1,000 CHF Balance April 1 Changes through business combinations Amounts used Reversals Increases Exchange differences Balance March 31 thereof short-term thereof long-term Carrying amount of goodwill 68,545 33,271 15,724 8,038 14,995 19,234 Currency Multiple EUR EUR EUR BRL USD Basis for recoverable amount Value in use Value in use Value in use Value in use Value in use Value in use Provision for warranty and returns 30,224 364 (13,698) (1,220) 15,696 1,863 33,229 25,434 7,795 Discount rate 9% 8% 8% 8% 18% 9% Other provisions 8,996 1,810 (2,225) (3,665) 39,814 677 45,407 12,361 33,046 Projection period 5 years 5 years 5 years 5 years 5 years 5 years Total 31.3.2006 39,220 2,174 (15,923) (4,885) 55,510 2,540 78,636 37,795 40,841 Consolidated Financial Statements Long-term growth rate 1.00% 1.00% 0.50% 1.00% 1.00% 1.00% Total 31.3.2005 32,870 (15,915) (1,320) 24,768 (1,183) 39,220 26,339 12,881 Up to financial year 2004/05 accrued liabilities for vacation pay and for bonus and incentive compensation have been classified under provisions. These liabilities in the amount of CHF 28.0 million have been reclassified to accrued expenses (refer to Note 24). Prior-year figures in the amount of CHF 24.3 million have been adjusted to reflect this reclassification. On average, Phonak grants a 15-month warranty period for its products. During this period, products will be repaired or replaced free of charge. The provision is based on turnover and past experience of warranty claims. In some countries, extended warranty is sold against a corresponding fee. The timing of cash outflows of this provision is expected within the next one to three years. Other provisions include liabilities for the present value of estimated earn-out payments resulting from the variable purchase price from companies bought in the amount of CHF 16.5 million. The timing of the cash outflows is expected within the next one to five years. In addition, other provisions include a provision for reimbursement to customers in the amount of CHF 14.3 million. The timing of cash outflows is expected within the next one to two years. 71
Among various other items, other provisions also include a provision for the expected costs for settling pending disputes and claims, which have arisen in the normal course of Phonak’s business. The main claim relates to a patent dispute. The timing of cash outflows is uncertain since it will largely depend upon the outcome of administrative and legal proceedings. 23. Short-term debts 1,000 CHF Current maturities of mortgages Current maturities of long-term debts Total Unused borrowing facilities The book value of short-term debts approximates to fair value. At March 31, 2005, current maturities of long-term debts mainly related to bank loans with an average interest rate of 1.1%. During the financial year 2005/06 these bank loans have been repaid (refer to Note 26). 24. Other short-term liabilities 1,000 CHF Other payables Accrued expenses Deferred income Total 72 Consolidated Financial Statements Notes 25 31.3.2006 12,253 12,253 69,118 31.3.2006 17,976 67,824 6,148 91,948 31.3.2005 7,186 23,603 30,789 Other payables include amounts to be remitted in respect of sales taxes, value added taxes, social security payments, employees’ income taxes deducted at source and customer prepayments. Accrued expenses include, among other items, salaries, social expenses, vacation pay, bonus and incentive compensation and accruals for outstanding invoices. Accrued expenses for vacation pay relate to both unconsumed holiday days as well as to payments for holidays required by law in certain countries. Prior-year figures are adjusted to reflect the reclassification of vacation pay and bonus and incentive compensation from provisions to accrued expenses (refer to Note 22). 50,288 31.3.2005 12,113 67,575 6,248 85,936
- Page 24 and 25: Capital Structure Changes in capita
- Page 26 and 27: Left to right: Robert F. Spoerry, D
- Page 28 and 29: Andy Rihs (born in 1942) has been C
- Page 30 and 31: Dr. Valentin Chapero Rueda (born in
- Page 32 and 33: Share and option ownership of membe
- Page 34 and 35: Highest total compensation The high
- Page 36 and 37: Investor Relations Calendar July 6,
- Page 39 and 40: SUSTAINABILITY Phonak’s managemen
- Page 41 and 42: Our customers buy a better quality
- Page 43 and 44: Corporate Governance Phonak’s Boa
- Page 45: Push your performance
- Page 49 and 50: Consolidated Income Statement 1,000
- Page 51 and 52: Consolidated Statement of Cash Flow
- Page 53 and 54: Notes to the Consolidated Financial
- Page 55 and 56: equity method, the investment in an
- Page 57 and 58: Short-term debts Short-term debts c
- Page 59 and 60: Employee benefit plans Phonak has v
- Page 61 and 62: 5. Segment information Profit or lo
- Page 63 and 64: 6. Consolidated Income Statement by
- Page 65 and 66: 9. Financial income/(expenses), net
- Page 67 and 68: 11. Earnings per share Basic earnin
- Page 69 and 70: 17. Inventories 1,000 CHF Raw mater
- Page 71 and 72: 19. Investments in associates and j
- Page 73: 1,000 CHF Cost Balance April 1 Chan
- Page 77 and 78: 27. Other long-term liabilities 1,0
- Page 79 and 80: 29. Acquisition of subsidiaries Dur
- Page 81 and 82: 30. Related-party transactions 1,00
- Page 83 and 84: The amount recognized in the consol
- Page 85 and 86: Summary of outstanding and exercisa
- Page 87 and 88: 35. Number of employees At March 31
- Page 89 and 90: 38. List of significant consolidate
- Page 91: Cherish the cheers
- Page 95 and 96: Income Statement 1,000 CHF Income M
- Page 97 and 98: Notes to the Financial Statements 1
- Page 99 and 100: 3.4 List of significant investments
- Page 101 and 102: Appropriation of Available Earnings
- Page 103: Launch a laugh
- Page 106 and 107: Phonak AB Hornsbruksgatan 28 SE-117
- Page 108 and 109: Impressum Concept Althaus & Weil AG
Key assumptions used for value-in-use calculations of material goodwill amounts:<br />
Cash-generating unit<br />
1,000 CHF<br />
Unitron Group<br />
Hansaton Akustische Geräte-Gesellschaft m.b.H.<br />
Lapperre BHAC NV<br />
Phonak Ibérica S.A.<br />
CAS Produtos Médicos Ltda.<br />
Metro Hearing Inc.<br />
The discount rates applied are pre-tax.<br />
Based on the impairment tests, there was no need for the recognition of any impairment in financial years 2005/06 and 2004/05.<br />
22. Provisions<br />
1,000 CHF<br />
Balance April 1<br />
Changes through business combinations<br />
Amounts used<br />
Reversals<br />
Increases<br />
Exchange differences<br />
Balance March 31<br />
thereof short-term<br />
thereof long-term<br />
Carrying<br />
amount of<br />
goodwill<br />
68,545<br />
33,271<br />
15,724<br />
8,038<br />
14,995<br />
19,234<br />
Currency<br />
Multiple<br />
EUR<br />
EUR<br />
EUR<br />
BRL<br />
USD<br />
Basis for<br />
recoverable<br />
amount<br />
Value in use<br />
Value in use<br />
Value in use<br />
Value in use<br />
Value in use<br />
Value in use<br />
Provision for<br />
warranty and<br />
returns<br />
30,224<br />
364<br />
(13,698)<br />
(1,220)<br />
15,696<br />
1,863<br />
33,229<br />
25,434<br />
7,795<br />
Discount<br />
rate<br />
9%<br />
8%<br />
8%<br />
8%<br />
18%<br />
9%<br />
Other<br />
provisions<br />
8,996<br />
1,810<br />
(2,225)<br />
(3,665)<br />
39,814<br />
677<br />
45,407<br />
12,361<br />
33,046<br />
Projection<br />
period<br />
5 years<br />
5 years<br />
5 years<br />
5 years<br />
5 years<br />
5 years<br />
Total<br />
31.3.2006<br />
39,220<br />
2,174<br />
(15,923)<br />
(4,885)<br />
55,510<br />
2,540<br />
78,636<br />
37,795<br />
40,841<br />
Consolidated Financial Statements<br />
Long-term<br />
growth<br />
rate<br />
1.00%<br />
1.00%<br />
0.50%<br />
1.00%<br />
1.00%<br />
1.00%<br />
Total<br />
31.3.2005<br />
32,870<br />
(15,915)<br />
(1,320)<br />
24,768<br />
(1,183)<br />
39,220<br />
26,339<br />
12,881<br />
Up to financial year 2004/05 accrued liabilities for vacation pay and for bonus and incentive compensation have been classified<br />
under provisions. These liabilities in the amount of CHF 28.0 million have been reclassified to accrued expenses (refer to Note 24).<br />
Prior-year figures in the amount of CHF 24.3 million have been adjusted to reflect this reclassification.<br />
On average, Phonak grants a 15-month warranty period for its products. During this period, products will be repaired or replaced<br />
free of charge. The provision is based on turnover and past experience of warranty claims. In some countries, extended warranty is<br />
sold against a corresponding fee. The timing of cash outflows of this provision is expected within the next one to three years.<br />
Other provisions include liabilities for the present value of estimated earn-out payments resulting from the variable purchase price<br />
from companies bought in the amount of CHF 16.5 million. The timing of the cash outflows is expected within the next one to<br />
five years. In addition, other provisions include a provision for reimbursement to customers in the amount of CHF 14.3 million. The<br />
timing of cash outflows is expected within the next one to two years.<br />
71
Change language