Dieser Abschnitt ist nur in englischer Sprache verfügbar.

Notes to the financial statements of Sonova Holding AG as of March 31, 2018

1. General information

The financial statements of Sonova Holding AG, with registered office in Stäfa, comply with the requirements of Swiss Law on Accounting and Financial Reporting (32nd title of the Swiss Code of Obligations, ‘SCO’). The company does not have any employees.

2. Accounting principles

2.1 Financial income/expenses

Financial income/expenses consists primarily of realized/unrealized foreign exchange gains and losses as well as interest income/expenses.

2.2 Financial assets

Financial assets contain loans to third parties as well as to Group companies and are recognized at cost less adjustments for foreign currency losses and impairment of value. Loans granted in foreign currency are translated at balance sheet date.

2.3 Investments

Investments consists mainly of participations in fully consolidated Group companies. They are in general subject to individual valuation. Certain investments are subject to a group valuation approach due to their homogeneity in nature.

2.4 Bonds

Bonds are valued at nominal value. Any bond premium/discount is accrued/capitalized and released/amortized linearly over the term.

2.5 Treasury shares

Treasury shares are recognized at cost and deducted from shareholders’ equity. The gain or loss from sale is recognized in the income statement as financial gain or financial loss.

3. Information on income statement and balance sheet items

3.1 Bonds

On October 11, 2016, the Sonova Group issued bonds in three tranches with different coupons and terms:

  • A two year variable rate bond (floating rate note) with a nominal value of CHF 150 million (ISIN CH0340912135) issued at 100.40% with interest at 3-month CHF Libor plus 50 bps p.a. paid quarterly. The loan pays an interest between 0.00% p.a. (floor) and 0.05% p.a. (cap). The maturity will be on October 11, 2018 (disclosed under short-term liabilities).
  • A three year fixed-rate bond with a nominal value of CHF 250 million (ISIN CH0340912143) issued at 100.15% with 0.00% interest payment and maturity on October 11, 2019 (disclosed under long-term liabilities).
  • A five year fixed-rate bond with a nominal value of CHF 360 million (ISIN CH0340912150) issued at 100% with interest of 0.01% p.a. and maturity on October 11, 2021. Interests will be paid on an annual basis (disclosed under long-term liabilities).

3.2 Treasury shares

In accordance with the acceptance of the annual general meeting on June 13, 2017, 92,000 treasury shares have been cancelled with the effect of a decrease in share capital. Consequently the reserves from capital contribution increased by the same amount. The average selling price amounted to CHF 117.34 and the average purchase price to CHF 158.51.

Number/1,000 CHF

 

 

 

Number

 

Treasury shares at cost

Balance April 1, 2017

 

100,190

 

12,863

Purchase of treasury shares

 

318,675

 

50,512

Sale/Transfer of treasury shares

 

(323,243)

 

(37,928)

Cancellation of treasury shares

 

(92,000)

 

(11,789)

Loss from sale of treasury shares

 

 

 

(13,122)

Balance March 31, 2018

 

3,622

 

536

3.3 Contingent liabilities

1,000 CHF

 

31.3.2018

 

31.3.2017

Guarantees given in respect of rental obligations of Group Companies

 

1,173

 

2,038

In the 2015/16 financial year, the Group entered into an agreement for a credit facility in the amount of CHF 150 million with an option to increase to CHF 250 million. The terminal date of this credit facility is July 31, 2018. The credit facility was not used at the balance sheet date.

The Swiss Sonova entities form a VAT group and, hence, every company participating in the group is jointly and severally liable for VAT debt of other group participants. Further Sonova Group companies participating in the cash pool are jointly and severally liable for any debit position or outstanding overdraft in connection with them.

3.4 List of investments

Company name

 

Activity

 

Domicile

 

Share/paid-in capital 1) Local currency 1,000

 

Shares held by Sonova Holding

 

 

 

 

 

 

 

 

 

 

 

Switzerland

 

 

 

 

 

 

 

 

 

 

Sonova AG

 

A,B,C,D

 

Stäfa

 

CHF

 

2,500

 

100%

Phonak AG

 

A

 

Stäfa

 

CHF

 

100

 

100%

Phonak Communications AG

 

B, C, D

 

Murten

 

CHF

 

500

 

100%

Unitron Hearing GmbH

 

B

 

Stäfa

 

CHF

 

20

 

100%

Verve Hearing Systems AG

 

A

 

Stäfa

 

CHF

 

100

 

100%

 

 

 

 

 

 

 

 

 

 

 

EMEA (excluding Switzerland)

 

 

 

 

 

 

 

 

 

 

Sonova France SAS

 

B

 

Bron-Lyon (FR)

 

EUR

 

1,000

 

30% 2)

SCI Du Triangle De Bron

 

A

 

Bron-Lyon (FR)

 

EUR

 

46

 

100%

Sonova Holding GmbH

 

A

 

Fellbach-Oeffingen (DE)

 

EUR

 

153

 

85% 2)

Sonova Italia S.R.L.

 

B

 

Milan (IT)

 

EUR

 

1,040

 

100%

Sonova Nederland B.V.

 

B

 

Vianen (NL)

 

EUR

 

227

 

100%

Sonova UK Ltd.

 

B

 

Warrington (UK)

 

GBP

 

2,500

 

100%

Boots Hearing Care Ltd.

 

B

 

Conwy (UK)

 

GBP

 

0 3)

 

51%

Sonova Belgium NV

 

A, B

 

Asse Zellik (BE)

 

EUR

 

15,311

 

100%

Sonova Denmark A/S

 

B

 

Middelfart (DK)

 

DKK

 

11,075

 

100%

Sonova Nordic AB

 

B

 

Stockholm (SE)

 

SEK

 

200

 

85% 2)

Sonova Sweden AB

 

B

 

Stockholm (SE)

 

SEK

 

100

 

100%

Sonova Norway AS

 

B

 

Oslo (NO)

 

NOK

 

1,854

 

49% 2)

Sonova Ibérica S.A.U.

 

B

 

Alicante (ES)

 

EUR

 

7,000

 

100%

Hansaton Akustische Geräte GmbH

 

B

 

Wals-Himmelreich (AT)

 

EUR

 

450

 

100%

Sonova Polska Sp. Z o.o.

 

B

 

Warsaw (PL)

 

PLN

 

100

 

100%

Warsaw Service Center Sp.Z.o.o.

 

A

 

Warsaw (PL)

 

PLN

 

100

 

100%

Sonova Hungary Korlátolt Felelösségü Társaság

 

B

 

Budapest (HU)

 

HUF

 

5,000

 

100%

Phonak CIS Ltd.

 

B

 

Moscow (RU)

 

RUB

 

4,000

 

100%

Audition Santé SAS

 

B

 

Cahors (FR)

 

EUR

 

28,800

 

15% 2)

HIMSA A/S

 

A

 

Copenhagen (DK)

 

DKK

 

250

 

25%

For significant indirect investments refer to Note 34 of the consolidated financial statements of Sonova Holding AG.

Description:

A Holding/Finance: The entity is a holding or finance company.

B Sales: The entity performs sales and marketing activities for the group.

C Production: This entity performs manufacturing for the group.

D Research: This entity performs research and development activities for the group.

1) Share/paid in capital may not reflect the taxable share/paid-in capital amount and does not include any paid-in surplus.

2) The remaining shares are held by a subsidiary of Sonova Holding AG.

3) GBP 133

Company name

 

Activity

 

Domicile

 

Share/paid-in capital 1) Local currency 1,000

 

Shares held by Sonova Holding

 

 

 

 

 

 

 

 

 

 

 

Americas

 

 

 

 

 

 

 

 

 

 

National Hearing Services Inc.

 

B

 

Victoria BC (CA)

 

CAD

 

0 3)

 

100%

Sonova United States Hearing Instruments, LLC

 

B

 

Warrenville (US)

 

USD

 

0 3)

 

85% 2)

Sound Pharmaceuticals, Inc.

 

A

 

Seattle (US)

 

USD

 

13,105

 

31%

Sonova Canada Inc.

 

B

 

Mississauga (CA)

 

CAD

 

0 3)

 

85% 2)

Phonak Mexicana S.A. de C.V.

 

B

 

Mexico DF (MX)

 

MXN

 

94,050

 

85% 2)

AudioNova Mexico S.A. de C.V.

 

B

 

Mexico DF (MX)

 

MXN

 

66,100

 

99% 2)

CAS Argosy Participações Ltda.

 

B

 

São Paulo (BR)

 

BRL

 

37,106

 

100%

 

 

 

 

 

 

 

 

 

 

 

Asia/Pacific

 

 

 

 

 

 

 

 

 

 

Advanced Bionics Medical Instruments (Suzhou) Co., Ltd.

 

B

 

Suzhou (CN)

 

CNY

 

4,617

 

70% 2)

Sonova Australia Pty. Ltd.

 

B

 

Baulkham Hills (AU)

 

AUD

 

750

 

100%

Sonova New Zealand (Wholesale) Ltd.

 

B

 

Auckland (NZ)

 

NZD

 

250

 

100%

Sonova Japan Co., Ltd.

 

B

 

Tokyo (JP)

 

JPY

 

10,000

 

100%

Sonova Hearing (Suzhou) Co., Ltd.

 

C

 

Suzhou (CN)

 

CNY

 

46,249

 

100%

Sichuan i-Hear Co., Ltd.

 

A

 

Chengdu (CN)

 

CNY

 

42,802

 

100%

Sonova (Shanghai) Co., Ltd

 

B

 

Shanghai (CN)

 

CNY

 

20,041

 

100%

Sonova Taiwan Pte. Ltd.

 

B

 

Zhonge City (TW)

 

TWD

 

3,100

 

100%

Sonova Singapore Pte. Ltd.

 

B

 

Singapore (SG)

 

SGD

 

250

 

100%

Sonova Korea Ltd.

 

B

 

Seoul (KR)

 

KRW

 

50,000

 

100%

Sonova India Private Limited

 

B

 

Mumbai (IN)

 

INR

 

2,439

 

64% 2)

Sonova Operation Center Vietnam Co., Ltd.

 

C

 

Binh Duong (VN)

 

VND

 

36,156,000

 

100%

Sonova Vietnam Company Limited

 

B

 

Ho Chi Minh City (VN)

 

VND

 

2,088,000

 

70% 2)

For significant indirect investments refer to Note 34 of the consolidated financial statements of Sonova Holding AG.

Description:

A Holding/Finance: The entity is a holding or finance company.

B Sales: The entity performs sales and marketing activities for the group.

C Production: This entity performs manufacturing for the group.

1) Share/paid in capital may not reflect the taxable share/paid-in capital amount and does not include any paid-in surplus.

2) The remaining shares are held by a subsidiary of Sonova Holding AG.

3) Shares without par value

3.5 Significant shareholders

At year-end, the following significant shareholders were listed in the share register (with shareholdings in excess of 3% of the issued share capital). Significant shareholders may also hold non-registered shares which are reported under “Not registered”.

 

 

31.3.2018

 

31.3.2017

Beda Diethelm

 

10.19%

 

10.17%

Chase Nominees Ltd. 1)

 

8.59%

 

8.54%

Hans-Ueli Rihs

 

5.71%

 

5.84%

Nortrust Nominees Ltd. 1)

 

4.41%

 

4.63%

Andy Rihs

 

3.08%

 

3.16%

Registered shareholders with less than 3%

 

35.93%

 

35.42%

Not registered

 

32.09%

 

32.24%

1) Registered without voting rights.

3.6 Shareholdings and participations of the Board of Directors and the Management Board

 

 

31.03.2018

 

31.03.2017

 

 

Shares

 

Restricted Shares 1) 2)

 

PSUs/RSUs 2)

 

Options (incl. SARs) 2)

 

Shares

 

Restricted Shares 1) 2)

 

RSUs 2)

 

Options (incl. SARs) 2)

Board of Directors

 

42,720

 

66,126

 

 

 

2,558

 

31,215

 

65,462

 

 

 

12,788

Management Board

 

62,892

 

 

 

56,137

 

613,440

 

52,243

 

 

 

56,026

 

533,765

Total

 

105,612

 

66,126

 

56,137

 

615,998

 

83,458

 

65,462

 

56,026

 

546,553

1) These shares are subject to a restriction period which varies from June 1, 2018 to June 1, 2023 depending on the grant date.

2) For further details see also Note 30 in the consolidated financial statements.

For further details to shareholdings in the company by members of the Board of Directors and by members of the Management Board, in accordance with Swiss Code of Obligation article 663c, refer to the Compensation report of Sonova Holding AG.