Appropriation of available earnings

The Board of Directors proposes to the Annual General Meeting of Shareholders on April 14, 2014 to allocate retained earnings as follows:

CHF 1,000	2012 Approved	2013 Proposed
Carried forward from previous year	110,372	121,184

Net profit	10,824	19,565
Change in reserve for treasury shares	5,484	11,373

Available retained earnings	126,680	152,122

Dividend paid as approved by the annual general meeting of shareholders on April 17, 2013: CHF 0.50 per share with a nominal value of CHF 0.10 each (total 10,991,802 shares eligible for dividend)	(5,496)

Dividend proposed: CHF 1.50 per share with a nominal value of CHF 0.10 each (total 11,081,736 shares eligible for dividend)¹		(16,623)

Balance to be carried forward	121,184	135,499

¹ These numbers are based on the outstanding share capital at December 31, 2013. The number of shares eligible for dividend may change due to the repurchase or sale of treasury shares and the issuance of new shares from the conditional share capital reserved for employee participation plans. At the end of 2013, a total of 71,149 options were exercisable before the date of the dividend payment.

The Board of Directors also proposes to the Annual General Meeting of Shareholders to allocate the capital contribution reserve as follows:

CHF 1,000	2012 Approved	2013 Proposed
Carried forward from previous year	13,591	2,597

New shares issued upon exercise of employee share options	(2)	–

Subtotal	13,589	2,597

Allocation to free reserve and payout as approved by the Annual General Meeting of Shareholders on April 17, 2013: CHF 1.00 per share with a nominal value of CHF 0.10 each (total 10,991,802 shares eligible for payout)	(10,992)

Balance to be carried forward	2,597	2,597