HOCHDORF Holding Ltd

Notes to the financial statements 2017

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 
Schweiz. Milch-Gesellschaft Ltd, HochdorfInactiveCHF100100100%100% 
HOCHDORF Swiss Nutrition Ltd, HochdorfProductionCHF30,00030,000100%100%
HOCHDORF Nutricare Ltd, HochdorfTradeCHFn/a1,200n/a100%1)
HOCHDORF Swiss Whey Ltd, HochdorfInactiveCHFn/a100n.a.100%2)
HOCHDORF Baltic Milk UAB, LT-MedeikiaiProductionEUR5,7925,792100%100%
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 Americas Ltd, UY-MontevideoTradeUYU3,2833,28360%60%
HOCHDORF South Africa Ltd, SA Cape TownProductionZAR50050090%90%
Pharmalys Africa S.à.r.l., TN-TunisAdministrationTND12012051%51%
Pharmalys Laboratories SA, HochdorfTradeCHF10010051%51%
Pharmalys Tunisie S.à.r.l., TN-SousseProductionTND3,3003,30051%49%3)
Snapz Foods Ltd, HochdorfTradeCHF100n/a65%n/a4)
Zifru Trockenprodukte GmbH, DE-ZittauProductionEUR200n/a100%n/a5)
  1. Merged with HOCHDORF Swiss Nutrition Ltd as at 01.01.2017
  2. Merged with HOCHDORF Swiss Nutrition Ltd as at 01.01.2017
  3. Acquisition of an additional 2% shareholding as at 31.03.2017
  4. Formation on 19.10.2017.
  5. Purchase of 100% as at 31.10.2017

3.2. Short-term liabilities

Third-party performances58255
Other (government bodies)153279
Outstanding purchase price debt for acquisition of company (non-interest bearing)96,38845,800

3.3. Long-term interest-bearing payables

Syndicated loan0115,000
Long-term financial liabilities (bonds)343,4900
Outstanding purchase price debt for acquisition of company (non-interest bearing)0105,500
Loans of shareholdings95925

Maturity structure

Up to 5 years218,585221,425
Over 5 years125,0000

3.4. Other operating expenses

Administration and IT expenditure-392-185
Marketing and sales expenditure–1-79
Other operating expenses-15-18
Bank charges, agency fees-92-34

4. Shareholders

ZMP Invest AG, Lucerne14.51%12.37%
Weiss family and Innovent Holding AG, Wollerau5.35%5.35%
Stichting General Holdings, Amsterdam4.08%4.08%
Taaleri plc, Helsinki3.14%
Maurer Group, Hunzenschwil3.01%

5. Release of hidden reserves

No hidden reserves00

6. Transactions with own shares

Business year 2017  Business year 2016  
01.01.2017 balance24,372 sharesat price 205.83 01.01.2016 balance24,000 sharesat price 157.51
FY 2017 purchases13,004 sharesat av. price 279.91FY 2016 purchases21,353 sharesat av. price 216.60
FY 2017 sales/allocation 1,243 sharesat av. price 303.22FY 2016 sales 20,981 sharesat av. price 188.14
31.12.2017 balance 36,133 shares at price 232.2231.12.2016 balance 24,372 shares at price 205.83

7. Contingent capital

As at 31.12.2017, HOCHDORF Holding Ltd had contingent capital in the nominal amount of CHF 7,173,800,
corresponding to 717,380 registered shares at a nominal value of 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
Dr Daniel Suter, Chairman, Audit Committee296160
Dr Anton von Weissenfluh, Vice Chairman, Personnel and Remuneration Committee1,3551,300
Dr Walter Locher, Audit Committee, Personnel and Remuneration Committee1,5531,400
Michiel de Ruiter, Market and Strategy Committee460
Ulrike Sailer, Market and Strategy Committee, from 05.05.2017104n/a
Niklaus Sauter, Audit Committee, Personnel and Remuneration Committee456400
Prof Dr Holger Karl-Herbert Till, Market and Strategy Committee210150
Josef Leu, Chairman, Personnel and Remuneration Committee, until 05.05.2017n/a1,550
Meike Bütikofer, Market and Strategy Committee, until 05.05.2017n/a531
Board of Directors Total4,0205,491

Group Management

Dr Thomas Eisenring CEO 1,243825
Marcel Gavillet, CFO1,3011,230
Christoph Peternell, COO71400
Werner Schweizer, Managing Director Dairy Ingredients138165
Michel Burla, Managing Director Cereals & Ingredients36300
Frank Hoogland, Managing Director Baby Care710
Folkert Togtema, Chief Sales Officer19232
Dr Karl Gschwend, Managing Director Strategic Projects71114
Group Management Total3,1233,066
Total of Board of Directors and Group Management7,1438,557
In %0.5%0.6%

According to the compensation regulations, 20% of the fees of the Board of Directors and 20% of the variable profit-sharing of Group Management is paid in the form of shares. Shares are allocated at the average price on the allocation date. Other trading is carried out 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.