Consolidated balance sheet

In CHF ‘000

Note

30.9.2011

30.9.2010

Intangible assets

3

24,051

14,773

Property, plant and equipment

4

18,202

14,916

Other non-current assets

5, 21

11,817

12,202

Deferred tax assets

16

2,683

2,196

Non-current assets

56,753

44,087

Inventories

6

29,069

31,134

Trade receivables

7, 21

32,426

36,885

Income tax receivables

446

761

Other receivables, prepaid expenses and accrued income

8, 21

3,680

5,715

Other current financial assets

213

0

Cash and cash equivalents

21

14,235

8,061

Current assets

80,069

82,556

Total assets

136,822

126,643

Equity attributable to equity holders of Schaffner Holding AG

56,929

55,985

Shareholders’ equity

56,929

55,985

Non-current provisions

9

6,556

7,080

Deferred tax liabilities

16

1,935

2,664

Non-current borrowings

10, 21

441

18,137

Non-current liabilities

8,932

27,881

Current provisions

9

3,521

4,882

Current borrowings

10, 21

34,559

1,749

Income tax payables

1,928

1,867

Trade and other payables

11, 21

30,953

34,279

Current liabilities

70,961

42,777

Total liabilities

79,893

70,658

Total liabilities and shareholders’ equity

136,822

126,643

The accompanying notes are an integral part of the consolidated financial statements.

Consolidated income statement

(year ended 30 September)

In CHF ‘000

Note

2010/11

2009/10

Net sales

17

183,686

188,939

Cost of sales

-126,175

-129,669

Gross profit

57,511

59,270

Other income

355

469

Marketing and selling expense

-16,354

-15,934

Research, development and application expense

-14,100

-12,582

General and administrative expense

-14,033

-14,662

Restructuring costs

0

-949

Operating profit before amortization of customer relationships

13,379

15,612

Amortization of customer relationships1

3

-568

-612

Operating profit [EBIT]

12,810

15,000

Finance income

15

10,680

1,100

Finance expense

15

-12,613

-4,087

Profit before tax [EBT]

10,877

12,013

Income tax

16

-727

-30

Net profit for the period

10,150

11,983

Earnings per share in CHF

19

Basic

16.03

18.87

Diluted

15.43

18.68

1 In a strict classification by function of expense, amortization of customer relationships would be presented under marketing and selling expense.

Consolidated statement of comprehensive income

(year ended 30 September)

In CHF ‘000

2010/11

2009/10

Net profit for the period

10,150

11,983

Exchange differences

-4,028

-3,213

Movement in cash flow hedges

-306

-115

Income tax

0

0

Total comprehensive income for the period

5,816

8,655

The accompanying notes are an integral part of the consolidated financial statements.

Consolidated cash flow statement

(year ended 30 September)

In CHF ‘000

Note

2010/11

2009/10

Net profit for the period

10,150

11,983

Depreciation and impairment of property, plant and equipment

4

3,374

3,468

Amortization and impairment of intangible assets

3

1,916

1,937

(Gain)/loss on disposal of property, plant and equipment and intangible assets

-44

96

Change in provisions

9

-1,137

2,143

Change in inventories

344

-7,986

Change in receivables

6,406

-19,739

Change in current liabilities

-3,529

15,860

Change in deferred tax

16

-1,214

-2,456

Finance expense for convertible bond

0

223

Share-based payments expense

889

820

Exchange differences on intra-Group items

650

1,508

Change in deferred consideration payable

0

-469

Other non-cash income

0

-30

Cash flow from operating activities

17,805

7,358

Purchase of property, plant and equipment

4

-6,901

-5,306

Disposal of property, plant and equipment

176

164

Purchase of intangible assets

3

-1,434

-1,423

Acquisition of subsidiaries or businesses, and contingent consideration

2

-10,558

-44

Change in loan receivables and non-current financial assets

-19

594

Cash flow from investing activities

-18,736

-6,015

Purchase of treasury shares

20

-7,356

-1,094

Disposal of treasury shares

20

26

0

Proceeds from exercise of share options and purchase of restricted shares by staff

20

4,411

219

Repayment of excess share premium

-2,842

0

Proceeds from borrowings

13,360

19,771

Repayment of borrowings

0

-42,716

Cash flow from financing activities

7,599

-23,820

Effect of exchange rates on cash and cash equivalents

-494

-87

Change in cash and cash equivalents

6,174

-22,564

Cash and cash equivalents at 1 October

8,061

30,625

Cash and cash equivalents at 30 September

14,235

8,061

Free cash flow1

9,646

749

Included in cash flow from operating activities:

Interest paid

-872

-1,789

Interest received

82

71

Income tax paid

-344

-16

1 Cash flow from operating activities less net investment in property, plant and equipment and in intangible assets. The accompanying notes are an integral part of the consolidated financial statements.

Consolidated statement of changes in equity

In CHF ‘000

Share capital

Share
premium

Translation
reserve

Retained
earnings

Treasury
shares

Hedging
reserve

Total
shareholders’
equity

At 1 October 2009

20,668

59,326

-8,854

-23,760

-75

0

47,305

Exchange differences

-3,213

-3,213

Movement in cash flow hedges

-115

-115

Net profit for the period

11,983

11,983

Total comprehensive income

0

0

-3,213

11,983

0

-115

8,655

Treasury shares

-47

-924

-971

Issue of restricted shares

120

120

Share option plans

820

820

Redemption of convertible bond

56

56

At 30 September 2010

20,668

60,202

-12,067

-11,824

-879

-115

55,985

Exchange differences

-4,028

- 4,028

Movement in cash flow hedges

-306

-306

Net profit for the period

10,150

10,150

Total comprehensive income

0

0

-4,028

10,150

0

-306

5,816

Treasury shares

-2,034

-1,181

-3,215

Repayment of excess share premium1

-2,842

-2,842

Issue of restricted shares

-147

443

296

Share option plans

889

889

At 30 September 2011

20,668

58,249

-16,095

-3,855

-1,617

-421

56,929

1 CHF 4.50 per share.

Share capital

The issued share capital of Schaffner Holding AG consists of 635,940 ordinary registered shares with a nominal value of CHF 32.50 per share. The issued shares are fully paid. Each share carries one vote at the General Meeting. All shares not held by the Company or one of its subsidiaries attract dividends.

There is also authorized unissued capital of 21,340 shares with a total nominal value of CHF 693,550. This is reserved for the Schaffner share option plans (see note 18 on page 77).

Share premium

The share premium (also known as additional paid-in capital) represents the excess of the issued share capital’s market value over its nominal value. The increase in share premium in the year under review resulted from the granting of conversion rights under the share option plans (see note 18 on page 77).
In the reporting period, share premium was reduced by CHF 2,842,000 through the repayment of CHF 4.50 per dividend-bearing registered share from this capital reserve.

Translation reserve

Shareholders’ equity is carried at historical exchange rates. The resulting foreign exchange differences are recognized directly in shareholders’ equity as a separate line item until the disposal of the subsidiary in question.

The accompanying notes are an integral part of the consolidated financial statements.