We make our customers successful. - Oerlikon Barmag

Notes to the consolidated financial statements
31.12.03 31.12.02
Bank Finance Convertible
Maturities of long-term debt
Within 1 year
loans Mortgages leases bond Total Total
(short-term portion) 9 720 2 788 4 002 – 16 510 26 424
1 to 2 years 5 671 320 3 977 84 818 94 786 17 103
2 to 5 years 7 774 – 12 315 – 20 089 131 698
After 5 years 1 610 – 8 885 – 10 495 12 945
Total long-term portion 15 055 320 25 177 84 818 125 370 161 746
Total long-term debt 24 775 3 108 29 179 84 818 141 880 188 170
Short-term and long-term debt by currency
EUR 51 906 73 053
USD 173 14 600
CHF 87 981 108 244
Other currencies 2 103 10 577
Total 142 163 206 474
Conditions of the 21 ⁄4% convertible bond 2000-2005 with an original
issued amount of CHF 230 million:
Each bond with a nominal value of CHF 5 000.00 can be converted
from June 26, 2000 up to maturity on June 26, 2005 or at an
earlier repayment date, free of charge into 39.68254 registered
shares of Saurer Ltd. with a nominal value of CHF 11.50 each. The
conversion price is CHF 126.00 per registered share. For fulfillment
of the conversion right 1 825 400 registered shares of Saurer Ltd.
with a nominal value of CHF 11.50 each have been reserved from
conditional capital (resolution of the General Meeting of Shareholders
of May 17, 2000). In accordance with IAS 32 the conversion
right is valued separately and reported in shareholders' equity.
In subsequent periods the liability component continues to be
presented on the amortized cost basis, until extinguished on conversion
or maturity of the bond. The equity conversion component
was determined on the issue of the bond and is not changed in
subsequent periods.
The convertible bond is reported as follows in the balance sheet: 2003 2002
Valuation of the liability as at January 1 104 481 131 476
Bond stock repurchased –15 683 –32 530
Amortization of issue costs 714 739
Interest expense (Note 5) 4 064 5 498
Interest at 21 ⁄4% –2 144 –2 945
Foreign currency translation –6 614 2 243
Valuation of the liability as at December 31 84 818 104 481
The market value of the convertible bond stock was 100.05% of
the nominal value as at December 31, 2003 (2002: 97.75%). The
calculation of interest expense for the convertible bond is based on
the effective market yield and the relative coupon of an equivalent
bond without conversion right at the time of issue.
During 2003, bond stock with a nominal value of CHF 25 000/
EUR 16 442 was repurchased (2002: CHF 50 720/EUR 34 572). The
value of the conversion rights, shown separately in shareholders’
equity, was reduced in proportion to the nominal value of bond
stock repurchased. The transaction resulted in a loss of EUR 533
(2002: gain of EUR 3 285) (Note 5). The nominal value of the outstanding
convertible bond at December 31, 2003 was CHF 138 100/
EUR 88 645 (2002: CHF 163 100/EUR 112 127).
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