ANNUAL REPORT 2017
Notes to the Financial Statements of feintool international holding ag
as at December 31, 2017
Feintool International Holding AG has its headquarters in Lyss, Switzerland. The 2017 financial statements were prepared in accordance with the provisions of Swiss accounting law (Art. 32 of the Swiss Code of Obligations). The main applied valuation principles that are not required by law are described in the following.
Treasury shares are recognized at the time of acquisition at cost as a minus line item in equity. In the event of resale, the profit or loss is taken to equity and reported under free retained earnings.
Capital participation plans
Treasury shares are used for share-based payments to the Board of Directors and employees. They are recognized at a fixed price in the regulations for the issue and transferred to the entitled beneficiary. The corresponding expense including social security contributions is reported in personnel expenses.
Omission of cash flow statement and additional information in the Notes to the Financial Statements
Feintool International Holding AG prepares its consolidated financial statements in accordance with a recognized standard for accounting (IFRS) and consequently omits additional disclosures in the Notes to the Financial Statements and a report on the cash flow statement in these financial statements as set forth in the statutory provisions.
1 Trade and other receivables
1) Interest bearing receivable related to zero balance cash pools
2 prepaid expenses and accrued income
3 property, plant and equipment
4 intangible assets
5 financial assets
1) On April 13, 2017, Feintool International Holding AG, Lyss, acquired Schuler (Tianjin) Metal Forming Technology Center Co., Ltd. in Tianjin (China). The name of the company was then changed to Feintool Automotive System Parts (Tianjin) Co., Ltd.
2) The headquarters of Feintool Holding GmbH was moved from Amberg, Germany to Bayreuth, Germany on February 10, 2017.
3) Feintool Holding GmbH holds a 60 % stake in Feintool System Parts Ohrdruf GmbH. The remaining 40 % is held by Feintool International Holding AG.
4) On May 10, 2017, the company Feintool Intellectual Property AG, Lyss which was placed in liquidation on March 21, 2016, has been removed from the commercial register.
5) The share capital of Feintool Precision System Parts (Taicang) Co., Ltd. was increased by kUSD 3 200 on January 6, 2016.
6) On October 12, 2016, Feintool International Holding AG, Lyss, founded Feintool System Parts Most s.r.o. in Prague. The headquarters was moved to Most (CZ) on September 13, 2017.
7) The dissolution of Feintool (Chongquing) Technology Co. Ltd. was applied for on January 1, 2015.
8) On October 12, 2017, Columbo GmbH, Amberg, merged with Vireo GmbH, Jena.
7 Current interest-bearing liabilities
1) Interest bearing liabilities related to zero balance cash pools
8 trade and other current payables
9 accrued expenses and deferred income
10 non-current Provisions
Non-current provisions include provisions for insurance payments in the amount of kCHF 370 (previous year kCHF 533) and provisions for anniversary benefits of kCHF 147 (previous year kCHF 131).
11 share capital
12 Conditional capital – employee stock option plan
The disclosure of the conditional capital is represented in Note 27.2 on page 67 of the Notes to the Financial Statements.
13 AUTHORIZED SHARE CAPITAL
The disclosure of authorized share capital is reported in the Notes to the consolidated financial statements under Note 27.3 on page 67.
14 treasury shares
The disclosure of the treasury shares is represented in Note 27.4 on page 68 of the Notes to the Financial Statements.
15 operating income
16 financial income
17 reversal of valuation allowance on investments
18 personnel expenses
Feintool International Holding AG employed 40 staff at the end of the year (previous year 35).
19 other operating expenses
20 financial expenses
1) Besides bank charges, other financial expenses include lead syndication commissions (annual amortization of establishing cost for the syndicated loan), valuation expenses from swap transactions and market making costs.
21 Contingent liabilities in favor of third parties
1) The pledging of the shares of key subsidiaries in accordance with the syndicate agreement means that most of the Group's assets have been indirectly pledged in prior period.
22 Major shareholders
The disclosure of the major shareholders is represented in Note 34 on page 74 of the Notes to the Financial Statements.
23 SHAREHOLDINGS OF GROUP MANAGEMENT AND THE BOARD OF DIRECTORS INCLUDING RELATED PARTIES
1) Held directly and indirectly; the 5 000 shares with a value of CHF 595 000 as remuneration for the 2017 financial year were assigned on January 4, 2018.
2) The previous members of the Board of Directors, Wolfgang Feil and Dr. Kurt E. Stirnemann waived re-election on April 25, 2017.
3) Held by a subsidiary of Muhr und Bender KG and Dr. Thomas Muhr Beteiligungs AG. On October 2, 2017, Muhr und Bender KG and Dr. Thomas Muhr disclosed official that it had reduced its holding of Feintool shares of 615 000 and had therefore fallen below the minimal reporting treshold of three percent.
4) Heinz Loosli was employed as CEO until August 31, 2016. He assumed the position of member of the Board of Directors on April 25, 2017. The 264 shares as remuneration for the financial year were assigned on December 20, 2017.
24 Liabilities to employee benefit plans
There was no liability to the pension fund as of December 31, 2017 (previous year kCHF 137).
25 Unrecognized lease liabilities
As at December 31, 2017, there were unrecognized lease liabilities of kCHF 2 194 (previous year kCHF 2 110).
26 Events after the balance sheet date
There were no significant events after the balance sheet date.
27 PROPOSAL by THE BOARD OF DIRECTORS
The Board of Directors will propose to the Annual General Meeting that a dividend of CHF 2.00 per registered share be paid (previous year CHF 2.00 per share) from the capital reserves in respect of the 2017 financial year. This corresponds to a maximum total dividend distribution of kCHF 8 926 (previous year kCHF 8 926). The amount of the dividend distribution depends on the amount of the dividend-eligible shares at the time of the distribution. No dividends will be distributed on treasury shares.