Annual Report 2010/11 - Sonova

3.6 Summary of changes in shareholders’ equity
1,000 CHF
Share
capital
FINANCIAL STATEmENTS OF SONOVA HOLDING AG 163
General
reserve
Reserve from
capital
contributions
Reserve for
treasury
shares
Retained
earnings
Total share-
holders’
equity
Balance April 1, 2010 3,305 112,016 26,353 578,053 719,727
Dividend paid (79,195) (79,195)
Capital increases (incl. share premium)
from conditional capital 21 36,482 36,503
Reclass of reserve from capital contributions (79,573) 79,573
Decrease in reserve for treasury shares (21,047) 21,047
Net profit for the year 231,131 231,131
Balance March 31, 2011 3,326 32,443 116,055 5,306 751,036 908,166
During the financial year 2010/11, an additional 423,648 registered shares with a par value of CHF 0.05 each, or a total par
value of CHF 21,182 were issued from the conditional capital (which was created for the purpose of an equity participation
for key employees of the Sonova Group) for a total net consideration of CHF 36,503,258. In the financial year 2010/11, the
conditional share capital with a par value of CHF 320,234 (6,404,675 shares) decreased by CHF 21,182 or 423,648 shares
(previous year CHF 28,933 or 578,661 shares), thereby leaving CHF 299,051 (5,981,027 shares) for distribution. Based on
the remaining conditional capital, a total of 1,725,184 (previous year 2,142,314) employee stock options were outstanding
as of march 31, 2011, which can be exercised until February 2016 .
With the new capital contribution principle effective as of January 1, 2011, Swiss companies are able to distribute additional
paid-in capital in the form of dividends without Swiss withholding tax consequences to its shareholders. This requires
companies to separately account for the reserves from capital contributions in a separate line within the legal reserves.
Sonova Holding AG is building the capital contribution reserves in two steps in which the distributable legal and free
reserves are allocated, the latter is subject to the shareholders approval. Share premiums received in 2010/11 have been
directly allocated to the capital contribution reserve. The impact on the equity resulting from the capital contribution
principle is shown in the appropriation of available earnings.
The treasury share reserve differs from the treasury shares in the consolidated financial statements due to Warrant
Appreciation Rights (WARs). Derivative instruments such as WARs are not recorded in the financial statements of Sonova
Holding AG (off balance sheet transaction).
4. Notes to the income statement
4.1 Investment income
This comprises dividends received from Group companies and other investments.
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). The net income from investments exceeds the net profit in the current year and therefore, no income
taxes are due.