Board of Directors’ proposal for the appropriation of retained earnings

In the fiscal year, COMET Holding AG had total income of CHF 13.6 million (prior year: CHF 15.8 million). The difference compared with the prior year resulted primarily from lower dividend income. Total expenses in the fiscal year, at CHF 4.4 million, represented a decrease of CHF 2.1 million from the year-earlier level. An absence of foreign currency translation losses led to correspondingly lower financing expenses. Amortization of rights to trademarks and names related to FeinFocus was offset (as in the prior year) by passing the expenses through to the user of the rights. The shareholders’ equity of COMET Holding AG at the end of the fiscal year was CHF 114.7 million (prior year: CHF 113.5 million), representing an equity ratio of 65.1% (prior year: 91.2%). On April 20, 2016, a five-year, CHF 60 million bond was issued. The bond has a coupon rate of 1.875% and is listed on the SIX Swiss Exchange (ticker symbol COT16; security number 32 061 943).

At the Annual Shareholder Meeting, the Board of Directors will propose to allocate retained earnings as follows:


In thousands of CHF	2016	2015
Earnings brought forward	65,210	55,883
Transfer from distributable paid-in capital reserve	74	0
Net income for the year	9,226	9,327
Retained earnings available for distribution	74,510	65,210
Earnings carried forward	74,510	65,210

At the Annual Shareholder Meeting, the Board of Directors will also propose to make a distribution to shareholders from distributable paid-in capital as follows:


In thousands of CHF	2016	2015
Distributable paid-in capital brought forward	27,117	34,248
Transfer to statutory earnings reserve	(74)	0
Additional paid-in capital from increase in capital stock	477	1,381
Distributable paid-in capital reserve	27,520	35,629
Repayment of CHF 12.00 per share from distributable paid-in capital (prior year: CHF 11.00 per share)	(9,295)	(8,512)
Distributable paid-in capital reserve carried forward	18,225	27,117

In order for additions to the distributable paid-in capital reserve to be distributable free of Swiss anticipatory tax, they must be confirmed by the Swiss Federal Tax Administration, on the basis of the audited annual accounts, as being paid-in capital reserves distributable free of this tax. At December 31, 2016, for a total amount of CHF 477 thousand, this confirmation had not yet been received or not yet applied for. From prior years an amount of CHF 74 thousand was not accepted by the Swiss Federal Tax Administration as being distributable free of this tax and was therefore reclassified to the statutory earnings reserve.

The Board of Director’s proposal for the appropriation of retained earnings covers all shares outstanding. No distribution is made in respect of any shares held as treasury stock at the record date. The actual total amount of the distribution may therefore be correspondingly less than shown above.