Financial statements 2009

3. Notes to the balance sheets

3. Notes to the balance sheets

3.1 Investments

3.1 Investments
          Percentage held
Company Location Activity Share capital 2009 2008
Nagravision SA CH – Cheseaux Solutions for Digital TV and audio products kCHF 12 000 100 100
NagraCard SA CH – Cheseaux Secure smart cards kCHF 100 M 100
Lysis SA CH – Cheseaux No activity kCHF 100 100 100
Nagravision Iberica SL ES – Madrid Sales and support Digital TV kEUR 3 100 100
Nagra France SAS FR – Paris Solutions for Digital TV and audio products kEUR 32 833 100 100
Nagra Kudelski (GB) Ltd GB – St. Albans Sales and support kGBP 1 100 100
Nagravision GmbH DE – Hildesheim Services kEUR 25 100 100
Nagra USA, Inc. US – Nashville Sales and support kUSD 1 010 100 100
Nagra Public Access AG CH – Zoug Physical access holding kCHF 15 000 100 100
Nagra Plus CH – Cheseaux Analog Pay-TV solutions kCHF 2 000 50 50
NagraID SA CH – La Chaux-de-Fonds Smart card production kCHF 4 000 100 100
Nagra Trading SA CH – Cheseaux Trading of set-top-boxes kCHF 100 M 100
SmarDTV SA CH – Cheseaux Chipsets for iDTV and conditional access modules kCHF 1 000 100 100
Kudelski Financial Services Holding SCA LU – Luxembourg Finance kCHF 37 050 100 100
Kudelski Luxembourg Sàrl LU – Luxembourg Finance kEUR 13 100 100
Leman Consulting SA CH – Nyon Intellectual property consulting kCHF 100 100 100
Nagravision Asia Pte Ltd SG – Singapore Services kSGD 100 100 100
Kudelski Malaysia SDN. BHD. MA – Kuala Lumpur Services kMYR – 100 100
Abilis Systems Sàrl CH – Plan-les-Ouates Research & development for mobile phones kCHF 20 100 100
Nagravision Shanghaï Technology CN – Shanghaï Software integration for Digital TV KUSD 200 100 100
Quative Ltd UK – London IPTV Solutions KGBP 1 000 100 100
TESC Test Solution Center GmbH DE – Munich Services kEUR 25 100 100
Nagravision Italy Srl IT – Milan Services kEUR 10 100 100
Nagra Travel Sàrl CH – Cheseaux Travel agency kCHF 50 100 100
NagraID Security SA CH – La Chaux-de-Fonds Display cards kCHF 100 50 50
Acetel Co Ltd SK – Séoul Digital broadcasting solution provider kKRW 1 460 17 15
Thema SAS FR – Paris Worldwide brokerage for existing audio-visual thematic channels kEUR 46 10 10

M = merged company (effective January 1, 2009, Nagravision SA absorbed NagraCard SA and Nagra Trading SA)

3.2 Other receivables

3.2 Other receivables
In CHF'000 31.12.2009 31.12.2008
Other accounts receivable 3 12
Prepaid expenses and accrued income 2 591 –
Third party loan – 1 605
Withholding tax 44 147
     
  2 638 1 764

3.3 Cash and cash equivalents

3.3 Cash and cash equivalents
In CHF'000 31.12.2009 31.12.2008
Cash at bank and in hand 5 912 8 673
Short-term deposits – –
     
  5 912 8 673

3.4 Change in shareholders' equity

3.4 Change in shareholders’ equity
In CHF'000 Share capital General reserve Reserve for treasury shares Available earnings Total Shareholders' equity
As of December 31, 2007 521 594 75 727 380 260 161 857 862
           
General reserve allocation   2 700   -2 700 –
Dividend       -15 703 -15 703
Share capital increase 2 366 221     2 587
Net income       48 321 48 321
           
As of December 31, 2008 523 960 78 648 380 290 079 893 067
           
General reserve allocation   2 460   -2 460 –
Dividend       -7 921 -7 921
Share capital increase 7 975 399     8 374
Net income       42 834 42 834
           
As of December 31, 2009 531 935 81 507 380 322 532 936 354

Treasury shares

Treasury shares
  Number of bearer shares Purchase cost Impairment reserve Book value
    CHF '000 CHF '000 CHF '000
As of December 31, 2007 20 155 380   380
         
Adjustment to stock market value as at December 31, 2008 – – -155 -155
         
As of December 31, 2008 20 155 380 -155 225
         
Reversal of last year adjustment to stock market value – – 155 155
         
As of December 31, 2009 20 155 380 – 380

No transaction occurred during the last two financial years.

Composition of share capital

Composition of share capital
In CHF'000 31.12.2009 31.12.2008
48'563'478 / 47'765'974 bearer shares, at CHF 10 each 485 635 477 660
46'300'000 registered shares, at CHF 1 each 46 300 46 300
     
  531 935 523 960

The Registered Shares are neither listed nor traded on any stock exchange. The Bearer Shares have been listed on the main market of the SIX since 2 August 1999 (ticker: KUD, security number: 1 226 836; ISIN CH0012268360).

Conditional share capital (article 6 of Articles of incorporation)

Conditional share capital (article 6 of Articles of incorporation)
In CHF'000 2009 2008
Conditional share capital as of January 1 107 478 109 844
Increase of conditional share capital 10 000 –
Employee share purchase plan -134 -450
Exercise of options -4 –
Shares allotted to employees -7 837 -1 916
     
Conditional share capital at December 31 109 503 107 478
     
Of which may be utilized as of December 31 for:    
– Convertible bonds:    
10'000'000 bearer shares, at CHF 10 each 100 000 100 000
– Options or share subscriptions to employees:    
950'278 / 747'782 bearer shares, at CHF 10 each 9 503 7 478
     
  109 503 107 478

The shareholders of Kudelski SA met in an Extraordinary General Meeting on September 30, 2005 and approved an increase of the conditional share capital of up to a total amount of CHF 100 million, through the issue of 10 000 000 bearer shares of a nominal value of CHF 10, to be issued as and when rights are exercised to convert the bonds of Kudelski SA and its subsidiaries. Furthermore the ordinary 2008 General Meeting approved an increase of the conditional share capital for options exercises or share subscriptions to employees up to a maximal amount of CHF 17 477 820 consisting of 1 747 782 bearer shares of a nominal value of CHF 10.

Authorized share capital (Article 7 of Articles of Incorporation)

Authorized share capital (Article 7 of Articles of Incorporation)
In CHF'000 31.12.2009 31.12.2008
3'768'164 bearer shares, at CHF 10 each 37 682 37 682
3'200'000 registered shares, at CHF 1 each 3 200 3 200
     
Authorized share capital as of December 31 40 882 40 882

The Board of Directors is authorized to increase the share capital in one or more stages until April 22, 2010, for the purpose of acquiring companies or parts of companies.

Major shareholders

Major shareholders
  Voting rights   Shareholdings
  31.12.2009 31.12.2008   31.12.2009 31.12.2008
Kudelski family pool 57% 57%   24% 23%

3.5 SHORT-TERM Provisions

The short-term provisions includes the unrealized exchange gains in foreign currencies for kCHF 1 111 (kCHF 0 at December 31, 2008).