2005 Annual Report Julius Baer Holding Ltd. - GAM Holding AG

lion to CHF 28 million due to capitalization of capital
increase expenses and the costs for long-term incentive
plans.
On the liabilities side of the balance sheet, the
amount due to banks increased by CHF 300 million
because of a long-term loan. The rise in outstanding
bonds by CHF 75 million to CHF 525 million is the
result of the ordinary repayment of the 1998/2005
bond in the amount of CHF 150 million and the taking-up
of a long-term subordinated loan with equity
character at the Group level in the amount of CHF
225 million. Accrued expenses and deferred income
climbed from CHF 53 million to CHF 73 million, primarily
on account of higher performance-based payments
and expenses related to the capital increase.
In contrast, other liabilities dropped from CHF 9 million
to CHF 5 million.
In accordance with the resolutions of the Extraordinary
General Meeting of Julius Baer Holding Ltd. on
10 November 2005, the share capital was increased
from CHF 5.5 million to CHF 11.2 million. This
change reflects the ordinary increase of share capital
by CHF 3.77 million to CHF 9.06 million through
issue of 37 696 358 new registered shares, the creation
of authorized share capital in the amount of
CHF 2.10 million in order to issue a maximum of
20 997 271 registered shares to grant UBS AG a
stake of up to 21.5% in the share capital of Julius
Baer Holding Ltd., as well as the authorization of the
Board of Directors to sell and/or transfer the
2 672 800 treasury shares existing at the time of the
resolution as well as any other own shares held by
Julius Baer as partial consideration for the acquisition
of the three private banks and certain other companies
from UBS AG. The new share capital structure as
of 31 December 2005 is presented in the detailed
table on page 111 of this annual report.
As a result of the higher share capital, the general
legal reserve increased by CHF 4 649 million to CHF
4 853 million. In view of the complete liquidation of
treasury share holdings, the reserve for treasury
shares was eliminated. Other reserves were up from
CHF 239 million to CHF 352 million as a result of the
addition of CHF 120 million in accordance with the
resolution of the 2005 Annual General Meeting.
Retained earnings brought forward of CHF 7 million
and net income of CHF 393 million result in total
retained earnings of CHF 400 million that are available
for allocation at the Annual General Meeting on
12 April 2006.
JULIUS BAER HOLDING LTD. 141