English - Siegfried

Contingent liabilities for additional purchase price paymentsand royalty payments in connection with the acquisition of thePenick companies are as follows:If annual sales of the acquired products exceed USD 30 millionprior to 2013, an additional payment of USD 14 million is dueto the seller. Royalty payments of 5% are due on annual salesexceeding USD 45 million until 2014. It is not expected thatthese sales limits will be exceeded.23. Maturity of rental and lease paymentsIn 1000 CHF 2006 2005Operating Finance Operating Financeleasesleases leases lleases2006 239 52007 636 3462008 540 2682009 476 5222010 168 28Later 10Total payments 1 830 – 1 403 5Less interest -Total finance lease liabilities 524. Transactions with related partiesAs the parent company, Siegfried Holding AG directly orindirectly owns all investments in the Siegfried Group. TheCamellia Group is the largest shareholder, with interestsof 33.35% in Siegfried Holding AG. During 2006 there wereno transactions between the two groups.The companies belonging to the Siegfried Group are listedunder «Scope of consolidation» (Note 1). All transactionsbetween the Group companies have been eliminated aspart of the consolidation process and are not described inthis note.For the reporting year, the members of the Board ofDirectors were paid a total of CHF 0.5 million (2005:CHF 0.5 million).At the end of the year CHF 40000 were receivable fromthe three members of executive management, otherwisethere were no outstanding receivables or liabilities fromtransactions with related parties.The expense related to the Employee share plan was forthe Board of Directors CHF 83000 (2005: CHF 27000)and for the executive Management CHF 21000 (2005:CHF 7000).No benefits were paid out to departing Board members orexecutive management. No further post employmentbenefits were paid to former executive management andmembers of the Board of Directors.Fromer, Schultheiss and Staehelin (where Dr ThomasStaehelin is a partner) billed the Siegfried Group CHF 20000(2005: CHF 105000) for legal services. No further paymentswere made to the members of the Board of Directors orthe executive management.25. Subsequent eventsNo events requiring disclosure occurred between the balancesheet date and the date of the audit report.26. Employee Share PlanThe total costs for the Employee Share Plan in 2006amounted to CHF 0.5 million (2005: CHF 0.2 million). In thereporting period, 7996 shares have been purchased from theplan. The total funds accumulated as of December 31, 2006entitle plan participants to receive 3 404 shares.Compensation of the members of the Board ofDirectors and executive management In 2006, the threemembers of executive management were paid a total ofCHF 1.8 million (2005: CHF 1.4 million), including employercontributions to pensions of CHF 0.2 million (2005:CHF 0.1 million) and excluding employer contributions tomandatory state pensions.Financial Statements Siegfried Group83