Annual Report (PDF) - Feintool

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Report and Proposal of the Board
Report
In the reporting period, Feintool International Holding took up both direct and indirect
participations in new companies. As of October 1, 1999 it acquired 100% of the shares in
Heinrich Schmid Maschinen- und Werkzeugbau AG in Jona, Switzerland. This was followed
by the establishment of Mühlemann Holding AG in Biberist, into which Feintool International
Holding incorporated its stakes in Mühlemann AG in Biberist and Mühlemann U.S. Operations,
Inc. in Antioch, Tennessee. On January 1, 2000, all of the shares in IMA Automation GmbH
and in mhk Montagekomponenten Vertriebs-GmbH in Amberg, Germany, were transferred to
BalTec Holding AG, a subsidiary of Feintool International Holding. In line with previous practice,
Feintool International Holding took over the patents and brand rights for the business of
IMA Automation GmbH and mhk Montagekomponenten Vertriebs-GmbH. It will license the
rights it has acquired to its subsidiaries. Finally, Limatec AG in Grenchen was integrated
into Baltec Holding AG as of April 1, 2000.
These transactions had an impact on the balance sheet of Feintool International Holding.
The book value of the investments rose from CHF 98.3 m to CHF 122.0 m. Long-term loans
granted to subsidiaries went up from CHF 17.3 m to CHF 52.9 m. A convertible bond worth
CHF 62.6 m was issued in February 2000 to finance the acquisition projects.
In the second financial year after being quoted on the stock exchange, Feintool International
Holding upped its earnings by 37.8% to CHF 30.7 m. This increase is due to higher income
from dividends and licenses as well as currency gains on the sale of treasury stock.
In addition, Feintool International Holding used its cash in the form of loans to subsidiaries,
which resulted in substantial interest income.
Proposal
The Board of Directors submits the following proposal for application of profit to the General
Meeting of Shareholders:
Retained earnings – opening balance 4,379,136
+ net income 1999 19,444,794
Total profit available to the General Meeting of Shareholders 23,823,930
– Distribution of a gross dividend of CHF 12.– per registered share 6,623,016
– Transfer to reserves 10,000,000
Retained earnings – closing balance 7,200,914
CHF