HOCHDORF Holding Ltd

Notes to the financial statements 2016

Information in accordance with article 959c et seqq. CO

1. Company, name, registered office

HOCHDORF Holding Ltd, Siedereistrasse 9, 6280 Hochdorf LU
The holding does not have any staff.

2. Principles

General information

These financial statements have been prepared in accordance with the provisions on commercial accounting from the Swiss Code of Obligations (articles 957-963 b CO, valid from 1 January 2013).

The additional requirements for large companies according to article 961 d para. 1 CO (additional information in the notes, cash flow statement and financial report) are waived, as a consolidated financial statement according to Swiss GAAP FER is being issued.

Cash and cash equivalents

Cash and cash equivalents include cash and deposits on postal and bank accounts. They are recognised at their nominal value. Short-term securities are measured at the market price on the balance sheet date.

Accounts receivable

Receivables are measured at nominal value less value adjustments. Identifiable individual risks are taken into account with appropriate value adjustments.

Securities and financial assets

Financial assets include loans to group companies. They are measured at their acquisition costs less possible value adjustments.

Own shares

Own shares are entered in the balance sheet as a deduction from equity at cost at the time of acquisition. At subsequent resale, the gain or loss is recorded in the income statement as financial income or expense.

3. Information on balance sheet and income statement items

3.1. Shareholdings

   Capital in 1,000Capital and voting share 
Switzerland. Milch-Gesellschaft Ltd, HochdorfInactiveCHF100100100 %100 %
HOCHDORF Swiss Nutrition Ltd, Hochdorf ProductionCHF30,00030,000100 %100 %
HOCHDORF Nutricare Ltd, Hochdorf TradeCHF1,2001’200100 %100 %
HOCHDORF Swiss Whey Ltd, Hochdorf InactiveCHF100100100 %100 %
HOCHDORF Baltic Milk UAB, LT-MedeikiaiProductionEUR5,7925,792100 %100 %
HOCHDORF Deutschland GmbH in liquidation DE-SiegburgTradeEUR---200---100 %1)
Marbacher Ölmühle GmbH, DE-MarbachProductionEUR2,0002,000100 %100 %
Uckermärker Milch GmbH, DE-PrenzlauProductionEUR10,00010,00060 %60 %
Ostmilch Handels GmbH, DE-Bad HomburgTradeEUR1,0001,00026 %26 %
Ostmilch Handels GmbH Frischdienst Oberlausitz KG, DE-SchlegelLogisticsEUR515126 %26 %
Ostmilch Frischdienst Magdeburg GmbH, DE-MeitzendorfTradeEUR252526 %26 %
HOCHDORF America’s Ltd, UY-MontevideoTradeUYU3,2837260 %60 %2)
HOCHDORF South Africa Ltd, SA-Cape TownProductionZAR50050090 %90 %
Pharmalys Africa S.à.r.l., TN-TunisAdministrationTND120n.a.51 %n.a.3)
Pharmalys Laboratories SA, HochdorfTradeCHF100n.a.51 %n.a.4)
Pharmalys Tunisie S.à.r.l., TN-SousseProductionTND3,300n.a.49 %n.a.5)
  1. Liquidation completed at the end of 2016.
  2. Capital increase of UYU 72,000 to UYU 3,283,200 as of 12.8.2016.
  3. Formation on 30.11.2016.
  4. Purchase of 51 % as of 19.12.2016.
  5. Purchase of 49 % as of 19.12.2016 with contractual guarantee to purchase additional 2 % in 2017.

3.2. Short-term liabilities

Third-party performances2550
Other (government bodies)2790
Outstanding purchase price debt for acquisition of company (non-interest bearing)45,8000

3.3. Long-term interest-bearing payables

Syndicated loan115,00055,000
Outstanding purchase price debt for acquisition of company (non-interest bearing)105,5000
Loans of shareholdings925195

Maturity structure

Up to 5 years221,42555,195
More than 5 years00

3.4. Other operating expenses

Property insurance, fees018
Administration and IT–185–30
Marketing and sales–790
Other operating expenses–18–1
Bank charges, agency fees–34–208

4. Shareholders

>3 %31.12.201631.12.2015
ZMP Invest Ltd, Lucerne12.37 %10.50 %
Weiss family and Innovent Holding AG, Wollerau5.35 %5.21 %
Stichting General Holdings, Amsterdam4.08 %
Argos Investment Managers S.A., Geneva3.90 %

By signing the purchase agreement for Pharmalys, Mr Amir Mechria acquired conversion rights to a maximum of 430,000 shares or 29.97 % of current issued shares of HOCHDORF Holding Ltd and notified HOCHDORF Holding Ltd accordingly on 1.11.2016.

5. Release of hidden reserves

Release of hidden reserves (by way of the reorganisation on 1.1.2015 transferred to HOCHDORF Swiss Nutrition Ltd)01,781,950

6. Transactions with own shares

Business year 2016  Business year 2015  
1.1.2016 balance24,000 sharesat price 157.511.1.2015 balance5,143 sharesat price 136.75
Purchases BY 201621,353 sharesat av. price 216.60Purchase BY 201544,708 sharesat av. price 148.04
Sales BY 201620,981 sharesat av. price 188.14Sales BY 2015 25,851 sharesat av. price 140.54
31.12.2016 balance 24,372 shares at price 205.8331.12.2015 balance 24,000 shares at price 157.51

7. Contingent capital

As of 31 December 2016, HOCHDORF Holding Ltd had contingent capital in the nominal amount of CHF 7,173,800, corresponding to 717,380 registered shares at nominal CHF 10.

8. Shareholdings of the Board of Directors and the Group Management

As of 31 December, the members of the Board of Directors and the Group Management (including related persons) held the following number of shares in the company:

Board of Directors

Number of shares
Number of shares
Josef Leu, Chairman, Personnel and Compensation Committee1,5501,290
Dr Anton von Weissenfluh, Vice Chairman, Personnel and Compensation, Market and Strategy Committee1,3001,203
Meike Bütikofer, Market and Strategy Committee531441
Dr Walter Locher, Audit Committee1,4001,200
Urs Renggli, Audit Committee, until 6 May 2016n.a.5,628
Michiel de Ruiter, Market and Strategy Committee, from 29 November 20160n.a.
Niklaus Sauter, Audit Committee, Personnel and Remuneration Committee400114
Dr Daniel Suter, Audit Committee, from 6 May 2016160n.a.
Prof Dr Holger Karl-Herbert Till, Market and Strategy Committee150150
Board of Directors Total5,49110,026

Group Management

Dr Thomas Eisenring, CEO 825600
Marcel Gavillet, CFO1,2301,300
Christoph Peternell, COO400200
Werner Schweizer, Managing Director Dairy Ingredients165165
Michel Burla, Managing Director Cereals & Ingredients300300
Frank Hoogland, Head of Global Marketing & Sales00
Fons Togtema, Managing Director Baby Care3232
Dr Karl Gschwend, Managing Director Strategic Projects114114
Group Management Total3,0662,711
Total of Board of Directors and Group Management8,55712,737
in %0.60 %0.89 %

In the reporting year, no shares were allotted to the Board of Directors or to Group Management. Acquisition is made directly on a private basis.

9. Contingent liabilities

HOCHDORF Holding Ltd is liable as joint and several debtor by way of assuming the debt for the credit line a bank institute awarded to Uckermärker Milch GmbH for EUR 10 million.