HOCHDORF Holding Ltd

Notes to the annual financial statements for 2018

Notes 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 under Article 961 d (1) of the Swiss Code of Obligations (CO) (additional information in the notes, cash flow statement and management report) are waived, because the company prepares its consolidated financial statements in accordance with Swiss GAAP FER.

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

Accounts receivable are measured at nominal value less value adjustments. Recognisable individual risks are taken into account by means of corresponding 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 
 PurposeCurrency31.12.201831.12.201731.12.201831.12.2017 
Switzerland Milch-Gesellschaft Ltd, HochdorfInactiveCHF100100100%100% 
HOCHDORF Swiss Nutrition Ltd, HochdorfProductionCHF30,00030,000100%100%
HOCHDORF Baltic Milk UAB, LT-MedeikiaiProductionEUR05,7920%100%1)
Marbacher Ölmühle GmbH, DE-MarbachProductionEUR2,0002,000100%100%
Uckermärker Milch GmbH, DE-PrenzlauProductionEUR10,00010,00060%60%
Ostmilch Handels GmbH, DE-Bad HomburgRetailEUR1,0001,00026%26%
Ostmilch Handels GmbH Frischdienst Oberlausitz KG, DE-SchlegelLogisticsEUR515126%26%
Ostmilch Frischdienst Magdeburg GmbH, DE-MeitzendorfRetailEUR252526%26%
HOCHDORF America’s Ltd, UY-MontevideoRetailUYU3,2833,28360%60%
HOCHDORF South Africa Ltd, SA Cape TownProductionZAR50050090%90%
Pharmalys Africa S.à.r.l., TN-TunisBoard of DirectorsTND12012051%51%
Pharmalys Laboratories SA, HochdorfRetailCHF10010051%51%
Pharmalys Tunisie S.à.r.l., TN-SousseProductionTND3,3003,30051%51%
Snapz Foods AG, HochdorfTradeCHF10010065%65%
Zifru Trockenprodukte GmbH, DE-Zittauproduction,EUR200200100%100%
Snapz Foods USA Inc., WilmingtonTradeUSD50n. a.65%n. a.2)
Bimbosan AG, Welschenrohr, SwitzerlandProductionCHF350n. a.100%n. a.3)
  1. Sale of 100% as at 31.05.2018
  2. Formation as at 29.05.2018
  3. Purchase of 100% as at 30.04.2018

3.2 Short-term liabilities

TCHF31.12.201831.12.2017
Services provided by third parties15758
Other (government bodies)2153
Outstanding purchase price debt for acquisition of company (non-interest bearing)096,388
Total15996,599

3.3. Long-term interest-bearing payables

TCHF31.12.201831.12.2017
Syndicated loan131,0000
Long-term financial liabilities (bonds)343,490343,490
Loans of shareholdings9595
Total474,585343,585

Maturity structure

TCHF31.12.201831.12.2017
Up to 5 years349,585218,585
More than 5 years125,000125,000
Total474,585343,585

3.4. Other operating expenses

TCHF31.12.201831.12.2017
Administration and IT expenditure–366–392
Marketing and sales expenditure–1–1
Other operating expenses–2–15
Bank charges, agency fees–48–92
Total–417–500

4. Shareholders

>3%31.12.201831.12.2017
ZMP Invest AG, Lucerne14.51%14.51%
Weiss family and Innovent Holding AG, Wollerau5.35%5.35%
Stichting General Holdings, Amsterdam4.23%4.08%
Taaleri Plc., Helsinki3.14%3.14%
Gruppe Maurer, Hunzenschwil3.04%3.01%

5. Release of hidden reserves

TCHF31.12.201831.12.2017
No hidden reserves00

6. Transactions with own shares

Business year 2018     Business year 2017    
01.01.2018 balance 36,133 shares at price 232.22 01.01.2017 balance 24,372 shares at price 205.83
FY 2018 purchases 8,110 shares at av. price 140.00 FY 2017 purchases 13,004 shares at av. price 279.91
FY 2018 sales/allocations 13,291 shares at av. price 264.62 FY 2017 sales/allocations 1,243 shares at av. price 303.22
31.12.2018 balance 30,952 shares at price 209.30 31.12.2017 balance 36,133 shares at price 232.22

7. Contingent capital

As at 31 December 2018, 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 at 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
31.12.2018
Number of shares
31.12.2017
Dr Daniel Suter, Chairman, Audit Committee895296
Dr Anton von Weissenfluh, Vice Chairman, Personnel and Remuneration Committee1,8091,355
Dr Walter Locher, Audit Committee, Personnel and Remuneration Committee1,7131,553
Michiel de Ruiter, Market and Strategy Committee22546
Ulrike Sailer, Market and Strategy Committee233104
Niklaus Sauter, Audit Committee, Personnel and Remuneration Committee620456
Prof Dr Holger Karl-Herbert Till, Market and Strategy Committee339210
Total – Board of Directors5,8344,020

Group Management

Dr Thomas Eisenring, CEO 2,3091,243
Marcel Gavillet, CFO1,8021,301
Christoph Peternell, COO17071
Frank Hoogland, Managing Director Baby Care29071
Dr Peter Pfeilschifter, Managing Director Dairy Ingredients; from 01.04.201863n. a.
Werner Schweizer, Managing Director Dairy Ingredients; until 31.03.2018n. a.138
Michel Burla, Managing Director Cereals & Ingredients; until 31.12.2018n. a.36
Folkert Togtema, Chief Sales Officer; until 31.03.2018n. a.192
Dr Karl Gschwend, Managing Director Strategic Projects; until 31.01.2018n. a.71
Total – Group Management4,6343,123
Total – Board of Directors and Group Management10,4687,143
in %0.73%0.5%

According to the remuneration regulations, 20% of the fees of the Board of Directors and 20% (30% as of 2019) of the variable profit-sharing of Group Management are paid in the form of shares. Shares are allocated at the average price on the effective date before allocation. 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.