SWX Swiss Exchange: Disclosure Of Bond Redemption And Share Capital Reduction In The 2002 Annual Report Of Phoenix Mecano AG

The SWX Swiss Exchange (SWX) has ascertained that Phoenix Mecano AG failed to comply with its obligations under Art. 66 of the Listing Rules (LR). In contravention of IAS 39, Phoenix Mecano AG posted redeemed bonds to cash and cash equivalents for the 2002 business year, thereby exaggerating this item by 30%. As a consequence, the increase in cash and cash equivalents reported in the cash flow statement was also too high. In addition, contrary to IAS 7, an instalment of the share capital reduction that had not been paid out by end-2002 was reported in the cash flow statement under cash flow from business operations although no cash flow of this magnitude occurred.

SWX has issued a reprimand for these infringements of the Listing Rules. At the same time, SWX has established that Phoenix Mecano AG included in its 2003 annual report published on 23 April 2004 a correctly amended version of the details pertaining to 2002 for which it had been reprimanded.