Annual Report 2001 - Bohler Uddeholm materializing visions

purchase of a maximum of 1,100,000 bearer shares, and may only be exercised on or before
14 November 2002. In accordance with this authorization, the minimum repurchase price equals
1.00 € and the maximum repurchase price not more than 30% above the average market price
for the three calendar months preceding repurchase.
In accordance with § 65 Par. 1 Nr. 8 of the Austrian Stock Corporation Act, the resolution
passed by the Annual General Meeting was published in the official gazette of the “Wiener
Zeitung” on 30 May 2001.
The Managing Board of BÖHLER-UDDEHOLM AG has decided to utilize the authorization
granted by the 10-th Annual General Meeting of the Company on 14 May 2001, and to repurchase
up to 660,000 shares of bearer stock or 6% or share capital. The Supervisory Board of
BÖHLER-UDDEHOLM AG granted its approval to this action on 29 September 2001.
The repurchase of shares of BÖHLER-UDDEHOLM AG in conjunction with this program will
take place on the Vienna Stock Exchange. No offering will be published for the repurchase of
shares. It is expected that these repurchased shares will be used for a stock option plan, as announced
at the Annual General Meeting. The Company retains the right to sell any shares not
used for this program. No shares will be withdrawn in conjunction with this repurchase program.
Furthermore, the Company will not trade its own shares for gain.
The number of options granted or planned as part of this stock option program for key
employees or members of the Managing Board equals 20 options for each share of individual
investment (members of the Managing Board of BÖHLER-UDDEHOLM AG: maximum 1,000 shares
each; other participants: maximum 500 shares each). Each option represents the right to purchase
one share of BÖHLER-UDDEHOLM AG common stock. Further details on the stock option
plan were published in accordance with § 95 Par. 6 of the Austrian Stock Corporation Act in
connection with § 82 Par. 9 of the Austrian Stock Exchange Act. Plans call for this stock option
plan to be offered to a total of 62 persons. As of 31 December 2001, no options had been
granted.
NON-CURRENT LIABILITIES
Severance and pension provisions
As a result of statutory obligations, employees of Austrian group companies are entitled
to receive a one-time severance payment upon redundancy or at retirement. This payment is
dependent on the number of years of service and relevant salary/wage at the end of employment.
The provisions for severance payments are calculated as of the balance sheet date according
to the “projected unit credit method” based on an interest rate of 6.5% p.a. (previous year:
5.5% p.a.) and future salary increases of 3.0% p.a. (previous year: 2.3%). The expected retirement
age was increased by one year (men: 61, women: 56). Severance obligations for foreign
group companies are calculated according to comparable methods.
BÖHLER-UDDEHOLM Annual Report 2001 55