GoingPublic Special Kapitalmarkt Schweiz 2018-e

magazine cover
Editorial

True to itself
Content
Summiteers

Swiss IPO Market in full Swing in 2018
“The Swiss Capital Market is very efficient and well positioned”

Interview with Patrick Förg, Head Origination, Primary Markets, SIX
Playing it safe
Stefan Meyer, UBS Global Wealth Management
Why more defensive Investment Strategies are currently the smarter Choice
View beyond the Rim of the Plate
Hans-Jakob Diem, Jacques Iffland, Lenz & Staehelin
Pitfalls for Issuers with Cross- Border Listing
“Investor Targeting is the Basis for strategic IR”

Interview with Cédric Baumgartner, Managing Director, EQS Group
Influence of Corporate Compliance grows on the Capital Market
Prof. Dr Christian Hauser, University of Applied Sciences HTW Chur
How Companies can gain a competitive Advantage through Compliance Reporting
In Accordance with international Standards

Exemptions from the Prospectus Requirement under the new Financial Services Act
Integration of Duty and Freestyle
Linda Moers, hw.design
Can‘t Reporting be completely rethought?
“The English Language is an integral Part of Capital Market Communication”

Interview with Marlen Schrader, Member of the Management Board and Chief Sales Officer, EnglishBusiness
Cash is King

Selected Swiss Equities offering Dividend Income and Growth
“The Listing on the Stock Exchange increased Investor Awareness“

Interview with Jan Luescher, CEO, ASMALLWORLD
Strong international Financial Centre with many Pools of Capital

Issuer Survey among Swiss Companies
“The ICO has ushered in a new Era of Corporate Financing”

Interview with Marc C. Riebe, CEO, eLocations
Partner Portraits
Company Index/Imprint

Oktober 2018 – 12,50 EUR (D) – www.goingpublic.de 2018 Pﬂichtblatt an allen deutschen Wertpapierbörsen Das Kapitalmarktmagazin GoingPublic Magazin Special Capital Market Switzerland (Vol. 6, 2018) A buzzing market There’s no place like home True treasures Swiss primary market Swiss issuers about the advantages Dividend and growth shows its strengths of the domestic market stocks beyond the SMI

Editorial Editorial True to itself Svenja Liebig, Editor GoingPublic Magazin A simmering trade war between the US and the rest of the world, an authoritarian governance structure in Turkey, an uncertain Brexit – although uncertainties increasingly rule the geopolitical sphere, global share indices are (still) basking in the sunshine. This is also having a signiﬁcant impact on Swiss listings – there were nine new additions to the local capital market, ﬁve of which are true IPOs by our deﬁnition. It is highly likely that we will be able to welcome at least two candidates to the Swiss market in the autumn – all in all, a more than positive provisional result for 2018. Of course, compared to US or Chinese IPOs, the Swiss primary market continues to be an “also-ran”, just like all of Europe. For the Swiss market landscape, however, this stock market year has been a nearly historic one. As much as Switzerland is known for its highly capitalised, globally active companies, it is showing that SMEs are also seen positively on the capital market. With the German-Swiss machine manufacturer Klingelnberg, a traditional family company stepped onto the ﬂoor for the ﬁrst time in a good while. Gratifying – according to the newest study by Credit Suisse, the family factor is a guarantee of success for many companies. In Switzerland, family-run businesses enjoy the beneﬁt of the Takeover Act, according to which the acquisition of a listed company is clearly regulated (more on this in the interview with the SIX Swiss Exchange on page 14). But how much does Switzerland really need SMEs, with all of its multi-billion franc corporations, which are considered the main pillars of their local economy? From the outside, Switzerland is often only praised for these top players. But doesn’t a healthy capital market thrive on its diversity? This doesn’t just include international mega caps, but also domestic SMEs that give the ﬁnancial market its distinctive appearance. For the capital market ecosystem to be well-balanced, the conditions must be equally advantageous for all. Excessive regulation, such as in the form of MiFID II, which has been in effect in the EU since the beginning of the year, harm exactly this diversity. Because for small and mid caps, which need more attention than blue chips, this will make visibility on the market even more difﬁcult (due to factors such as research restrictions). A Swiss equivalent to MiFID II, FIDLEG, will enter into force in Switzerland in 2020. This law allows for increased individual room for manoeuvre in some areas. In order to remain competitive, Switzerland should and must largely adjust itself to EU norms, all while staying true to itself. This makes the Alpine republic even more attractive for investors and other ﬁnancial intermediaries in international competition. I hope you‘ll ﬁnd this issue informative! Special “Capital Market Switzerland 2018“ 3

Content The Swiss financial centre is known for its global players and is opening itself up more and more for the digital transformation – with the SIX Digital Exchange coming in 2019! Interview with Patrick Förg, SIX Pages 12–16 Despite increasing financial risks, company profits are steering towards a new record. In this environment, an investment in dividend titles is advantageous. Stefan Meyer, UBS Pages 18–19 3 Editorial True to itself Introduction & Background 6 Summiteers Swiss IPO Market in full Swing in 2018 12 “The Swiss Capital Market is very efficient and well positioned” Interview with Patrick Förg, Head Origination, Primary Markets, SIX 18 Playing it safe Why more defensive Investment Strategies are currently the smarter Choice Stefan Meyer, UBS Global Wealth Management Being Public/Investor Relations 20 View beyond the Rim of the Plate Pitfalls for Issuers with Cross- Border Listing Hans-Jakob Diem, Jacques Iffland, Lenz & Staehelin 22 “Investor Targeting is the Basis for strategic IR” Interview with Cédric Baum- gartner, Managing Director, EQS Group 24 Influence of Corporate Compliance grows on the Capital Market How Companies can gain a competitive Advantage through Compliance Reporting Prof. Dr Christian Hauser, University of Applied Sciences HTW Chur For issuers with transnational listings, it’s important to anticipate pitfalls to avoid unpleasant surprises. Hans-Jakob Diem (Photo), Dr Jacques Iffland, Lenz & Staehelin Pages 20–21 4 Special “Capital Market Switzerland 2018“ 28 In Accordance with inter- national Standards Exemptions from the Prospectus Requirement under the new Financial Services Act Dr Christoph Heiz, Dr Wolfgang Müller, Andrea Sieber, Dr Alexander Vogel, Meyer lusten berger Lachenal 30 Integration of Duty and Freestyle Can‘t Reporting be completely rethought? Linda Moers, hw.design 32 “The English Language is an integral Part of Capital Market Communication” Interview with Marlen Schrader, Member of the Management Board and Chief Sales Officer, EnglishBusiness Financing & Investment 34 Cash is King Selected Swiss Equities offering Dividend Income and Growth 38 “The Listing on the Stock Exchange increased Investor Awareness“ Interview with Jan Luescher, CEO, ASMALLWORLD 40 Strong international Financial Centre with many Pools of Capital Issuer Survey among Swiss Companies 44 “The ICO has ushered in a new Era of Corporate Financing” Interview with Marc C. Riebe, CEO, eLocations Service 46 Partner Portraits 50 Company Index/Imprint

Thank You.* *) The Special “Capital Market Switzerland“ was published with the support of:

Introduction & Background Summiteers Swiss IPO Market in full Swing in 2018 Switzerland is known for its large, highly capitalized companies. Thanks to these heavyweights, the market cap of the leading SMI is as large as that of the German DAX – and that with only around 200 Swiss share issuers in sum. A strong basis for a capital market: this year, after all, there were more new entries than there have been for a long time. In additi- on to generous equity investors, there is also no shortage of venture capital investors. Conditions like in the land of milk and honey? Nevertheless, the market still has to face challenges. By Svenja Liebig T he Swiss Performance Index, or SPI for short, is the overall Swiss index and contains almost all of the shares traded on the Swiss Stock Exchange – cur- rently it comprises 205 issuers. However, the SMI, which represents the 20 largest Swiss equities, including luminaries such as Nestlé, Roche, Swatch, Richemont and the major banks Credit Suisse, UBS and Julius Baer, is much better known. It represents between 80 and 85% of the equity market and thus serves as the basis for investment products such as options, futures, structured products or ETFs. Hand in hand As a non-EU member, the Alpine Republic continuously proves that friendly rela- tions with the European member states are includes indispensable. This also Fig. 1: Weighting in the SMI legislative adjustments occasional in order to make the Swiss market EU-com- pliant as far as possible. In order to remain internationally competitive, the Swiss Stock Exchange operator SIX adjusted the weighting of its indices in autumn 2017 – they now comply with EU directives. This 0% 4% 8% 12% 16% 20% 24% 18% 1 Nestlé 2 Novartis 3 Roche 4 UBS Group … 19 Swatch Group 20 Swiss Life Weighting before capping Weighting after completion of capping (estimation) Source: Six Group, 18.9.17 6 Special “Capital Market Switzerland 2018” p u o r G x S © i : e c r u o S means that companies with a high market value, such as Nestlé or Novartis, will only be included in the index at a maximum of 18% (see ﬁg. 1). This is primarily intended to avoid excessive cluster risks from indi- vidual stocks. In the Swiss Leader Index (SLI) with the 30 largest Swiss stocks, the four most important stocks were capped at 9% from the outset. Even though Switzerland, due to its special non-EU status, has certain leeway in the design of its laws, a noticeable regulatory pressure still weighs heavily on the Alpine country. MiFID II, which has been causing various upheavals on the German market for some time now, will also have an inﬂu- ence on Swiss issuers and investors (see also the interview with Cédric Baumgartner, EQS, page 22). As a non-EU member, sitting between the chairs in the EU regulatory jungle can be both a curse and a blessing. 30 years on the pulse of the ﬁnancial markets Otherwise, the Swiss equity market is quite respectable international in an

IPOs in Switzerland 2018 – Overview of all new Shares Introduction & Background Blackstone Resources AG Lalique Group SA Obseva SA Security number Sector Date of Listing Market Cap Proceeds A2DNTB Biopharma- ceuticals July 13, 2018 Security number Sector Date of Listing A2DRU4 Commodity Holding Julye 9, 2018 CHF 604 million Market Cap CHF 335 million Secondary Listing Proceeds Listing Performance since Listing -9% Performance since Listing -38% Sales 2017 0,02 Mio. CHF Sales 2017 0,01 Mio. CHF 20,00 CHF 17,50 CHF 15,00 CHF 12,50 CHF 200k 100k 0 9,00 CHF 8,50 CHF 8,00 CHF 7,50 CHF 20k 10k 0 23. Jul 3. Aug 15. Aug 25. Aug 5. Sep 17. Sep Security number A0M1KL Sector Date of Listing Market Cap Proceeds Luxury Goods June 25, 2018 CHF 320 million Listing Performance since Listing +4% Sales 2017 CHF 129 million 54,00 CHF 52,00 CHF 50,00 CHF 10k 5k 0 7. Aug 15. Aug 23. Aug 31. Aug 9. Sep 17. Sep 25. Jun 9. Jul 22. Jul 6. Aug 20. Aug 3. Sep 17. Sep Klingelnberg AG Security number Sector Date of Listing Market Cap Proceeds Polyphor AG CEVA Logistics AG A2JNTA Mechanical Engineering June 20, 2018 CHF 450 million CHF 241 million Security number A2JK4Q Security number Sector Biotechnology Sector Date of Listing May 15, 2018 Date of Listing Market Cap Proceeds CHF 345 million Market Cap CHF 155 million Proceeds A2JHXF Logistics May 4, 2018 CHF 803 million CHF 1.3 billion Performance since Listing -3% Performance since Listing -15% Performance since Listing -29% Sales 2017 EUR 290 million Sales* CHF 7 million* Sales 2017 CHF 6.7 billion 52,50 CHF 50,00 CHF 47,50 CHF 45,00 CHF 2M 1M 0 40,00 CHF 37,50 CHF 35,00 CHF 32,50 CHF 30,00 CHF 1.500k 1.000k 500k 0 2,00 EUR 0,00 EUR 8,00 EUR 1000 500 0 2. Jul 16. Jul 6. Aug 20. Aug 3. Sep 17. Sep 4. Jun 25. Jun 16. Jul 6. Aug 27. Aug 17. Sep 28. Mai 18. Jun 16. Jul 6. Aug 27. Aug 17. Sep Medartis Holding AG Sensirion Holding AG ASMALLWORLD AG Security number Sector Date of Listing Market Cap Proceeds A2JGBF Medtech March 23, 2018 CHF 940 million CHF 144 million Security number Sector Date of Listing Market Cap Proceeds A2JGBW Sensors Manufacturer March 22, 2018 CHF 1.08 billion CHF 318 million Security number Sector Date of Listing Market Cap Proceeds A2JE3W Social Media March 20, 2018 CHF 54 million Listing Performance since Listing +66% Sales 2017 CHF 105 million Performance since Listing +75% Sales 2017 CHF 148 million Performance since Listing -37% Sales 2017 CHF 5 million 80,00 CHF 70,00 CHF 60,00 CHF 50,00 CHF 1.000k 500k 0 70,00 CHF 60,00 CHF 50,00 CHF 40,00 CHF 3M 2M 1M 0 20,00 CHF 15,00 CHF 10,00 CHF 5,00 CHF 200k 100k 0 Apr '18 Mai '18 Jun '18 Jul '18 Aug '18 Sep '18 Apr '18 Mai '18 Jun '18 Jul '18 Aug '18 Sep '18 Apr '18 Mai '18 Jun '18 Jul '18 Aug '18 Sep '18 Source: GoingPublic Research, based on closing price 15.9.2018; *) Polyphor sales refers to H1 2018; Charts: Onvista Special “Capital Market Switzerland 2018“ 7

Introduction & Background p u o r G x i S © : o t o h P comparison: Like all other major global benchmark indices, the SMI has risen steadily since the ﬁnancial crisis of 2008. The SMI also has the same “year of birth” as its German “brother”, the DAX: both were founded in 1988 and this year both celebrated their 50th anniver sary. Since 1988, the value of the SMI has even increased sixfold – the index reached its all-time high in January of this year with over 9,600 points; its low, however, was in 1991 with around 1,200 points. Highly capi talized companies such as the aforemen tioned Nestlé and Novartis even brought Europe‘s top 1 & 2 companies in the leading index of the Swiss Confede- ration. IPO boom or ﬂash in the pan? With all this nostalgia, a look at the present does not do any harm: the IPO market has been looking very positive so far this year. With nine new IPOs by the summer break, the Swiss experienced their strongest year on the stock market in a long time. Compared to larger capital markets such as the USA or China, the ﬁgure looks insigniﬁcantly low, but over here an almost double-digit ﬁgure is rather uncommon and therefore all the more remarkable. All in all, there have been fewer IPOs in the past, but there have been many billion-dollar IPOs as of late: such as the more than CHF 2 billion transaction of Sunrise 2015 or the IPO of Landis+Gyr last year, which also amounted to more than CHF 2 billion. More class than mass is usually the motto of the Swiss. put its stock exchange plans to a hold – and was acquired shortly afterwards. In addition, only two of the new issuers, Sensirion and Medartis, have so far shown price gains on the stock exchange – the remaining new issuers are still below their issue price at the time of the start of trading as of the editorial deadline (see table on page 7). Self-promotion for a lively second half of 2018 fell through. As always, however, the overall picture needs to be considered: In the global con- text, the Swiss are deﬁnitely doing very well for the year to date. According to the IPO half-year report of auditing company EY, the number of IPOs worldwide fell by a total of 26% in the ﬁrst half of 2018 – and the issue volume by 19% to EUR 45 billion. Switzerland, on the other hand, was able to achieve signiﬁcant gains. In addition, in- teresting new issues are still pending until the end of the year: with the industrial group SIG Combibloc, a tradi tional Swiss company will shortly be returning to the stock exchange – and according to recent rumours from ﬁnan cial circles, train builder Stadler is also considering an IPO on the domestic stock exchange. Stable economy & high cash ﬂows as M&A drivers The Swiss M&A market has also been experiencing continuous growth for some time now. As far as the number of deals is for new Good market conditions, high valua- tions and low volatility gave the primary market a good boost in the ﬁrst half of 2018, which obviously stimulated other companies‘ appetite for a going public as well. And investors also seemed to be willing and able to pay generous valua- tions issuers. However, the situation deteriorated somewhat towards the middle of the year. “We have noticed that things have become more challenging since the second quarter,” stresses Patrick Förg, Head of Origination in the SIX prima- ry market interview starting on page 10). Only a few months ago, the transmission division of the Oerlikon Group, GrazianoFairﬁeld, had to (detailed team SMI Long-Term Chart Punkte 7.500,00 5.000,00 4.000,00 3.000,00 2.000,00 1.500,00 LOG 88 90 92 30.06.1988 94 96 98 00 04 02 06 7.606 Kurse Source: Tai-Pan (c) Tai-Pan Kurs:8.913,28 08 12 10 (-23,43 / -0,26%) 18 14 16 18.09.2018 8 Special “Capital Market Switzerland 2018”

Introduction & Background Fig. 2: Development of the Oaklins M&A index for Switzerland 120 100 80 60 40 100 28 34 20 38 97 24 29 44 110 106 35 38 114 39 confidence 30 30 34 focus 93 96 95 24 27 29 29 29 26 40 39 39 41 42 41 financing 0 JAN 2015 JUL 2015 JAN 2016 JUL 2016 JAN 2017 JUL 2017 JAN 2018 JUL 2018 Source: Oaklins Switzlerland, “M&A Outlook Schweiz”, 8. Ausgabe, Juli 2018 concerned, at the end of 2017 the previous year‘s ﬁgure was exceeded by almost 36% – with a total transaction volume of CHF 68.4 billion. The favourable ﬁnancing environment has generally made it easier to ﬁnance acquisitions with debt capital. According to M&A consultant Oaklin, substantial cash holdings and the high market capi- talizations of many issuers are also helping to make own shares an attractive acquisition currency. Increasing eco- nomic growth with forecasts of more than 2% this year is also boosting the takeover market. The brisk activity on the local M&A market is also due to the high innovation and transformation pressure caused by digital change. Many companies want to and have to react to the rapidly changing market environment: securing the neces- sary technologies and the cor responding know-how through acqui sitions and in- vestments is therefore a common strategy of many companies to withstand this (performance) pressure. In addition, upcoming succession arrangements and 10 Special “Capital Market Switzerland 2018” Swiss company therefore remains inde- pendent for the time being. for No fear of the ﬁntech hype When it comes to the pressure to innovate and transform, Switzerland plays an inter- nationally signiﬁcant role, not least because of the Crypto Valley, which is known beyond its borders. Despite the recent Bitcoin losses, the “Valley” in the tax-privileged Zug is the ﬁrst port of call for blockchain and crypto currencies. Last year alone, more than CHF 270 million ﬂowed into the ﬁntech sector through ICOs (see ﬁg. 3). Although ICOs are certainly no substi- tute for IPOs, and the boom that prevailed especially in 2017 seems to be slowing down again, an ICO is an interesting alter- native especially the early-stage ﬁnancing of start-ups. You can also read ﬁrst-hand about the experiences of a Swiss start-up on the subject of ICOs in an interview with eLocations on page 44. In addition to technical know-how, which has been in the works for many years in the Crypto Valley and which makes many other European neigh- bouring countries look pale, the Swiss do not lack one thing above all in this ﬁntech environment: ﬁnanciers. According to a ﬁntech study by the Lucerne University of Applied Sciences and Arts, venture capitalists are increasingly entering the market. For example, the Swiss Entrepre- neurs Foundation has set up a fund of over CHF 500 million; and the SIX is also launching a CHF 50 million fund to promote start-ups in the ﬁnancial sector. In com- generational changes are driving consoli- dation – especially in SMEs. The local M&A market experienced a real bang in May: the long takeover battle between French building materials group Saint-Gobain and Swiss specialty chemi- cals company Sika was ended. After more than four years of battle over a takeover, the French ﬁnally decided not to take over their Swiss competitor. The tradi tional Fig. 3: Venture capital investments and ICO volume in the Swiss FinTech sector s d n u o R f o r e b m u N 100 80 60 40 20 0 8 17 2015 7 12 10 2 2016 Source: IFZ FinTech Study 2018 i l l i m F H C n n o i e m u o V l 500 400 300 200 100 0 59.8 45.9 24.2 271.3 22 26 20 7 2017 Seed ICO 2015 2016 2017 Series A Series B

parison to its German neighbours, Swiss institutional investors seem to be clearly determined to provide risk capital for young ﬁntech talents. Conclusion Without a doubt, 2018 will go down in the history of the Swiss stock market as an extraordinarily strong IPO year. But this does not mean that the years before were not worth mentioning: the Swiss have been proving for a very long time – at least since the launch of the SMI – that they have a healthy capital market in internati- onal competition, regardless of the num- ber of transactions. Quality over quantity would be the appropriate slogan here. It remains to be seen whether investors will continue to be prepared to pay high prices for new issues in the future – also with re- gard to how the current new entrants will assert them selves on the stock market. Ul- timately, the equity story must be convinc- ing and performance must be “delivered.” Introduction & Background m o c . e b o d a . k c o t s – s n a h n e s i E © : o t o h P Geopolitical risks, such as U.S. policy, the economic situation in Italy or the presumed Brexit, will certainly not make the environment any easier in the coming months. And even though the Swiss ﬁntech industry is in marvellous condi- tions thanks to a great amount of venture capitalists, things are becoming more challenging here as well. As can also be observed in many other countries, the biggest adjustment screws in the techno- logy sector are above all to convince cus- tomers of inno vative services and pro- ducts. Start-up promoters may pave the way, but in the market itself, growth com- panies have to assert themselves indepen- dently. In spite of all of this, the Swiss ﬁnan cial market as a whole is, as usual, rock solid and crisis-resistant. On the following pages we would therefore like to show you in more detail the special features of the Swiss capi- tal market in the form of interviews, guest contributions and issuer opinions. ADVERTISEMENT

Introduction & Background “The Swiss Capital Market is very efficient and well positioned” Interview with Patrick Förg, Head Origination, Primary Markets, SIX Patrick Förg sat down for an interview with GoingPublic Magazine. Many highly illuminating topics were discussed, such as the features that set the Swiss capital market apart, why a listing is attractive for SMEs, and the new SIX Digital Exchange. backed IPO. With the “Swiss German” mid- size company Klingelnberg, a classic family company has again, after a long time, decided to take its ﬁrst step onto the stock exchange ﬂoor. Talking about family companies: to what extent do mid-size companies play a role in the Swiss capital market? Luckily for Switzerland, the country is home to many global companies, such as Nestlé, Novartis and Richemont. Large I X S © : o t o h P GoingPublic: Mr Förg, by mid-July 2018, nine companies listed on the Swiss exchange – in the whole year 2017, there were “only” six listings. How would you explain this increase? Förg: We have fundamentally good market conditions with relatively high valuations and a relatively low volatility. These are elements that contribute to a positive stock exchange climate. In addition, we are currently experiencing a solid eco- nomic environment, especially concerning factors such as decreasing unemploy- ment, low interest rates or strong company results. This all has a positive effect on the capital market. Nevertheless, we have been seeing increasing challenges ever since the second quarter. Some IPO transactions were cancelled, postponed or in dual tracks situations sold to a strate- gic buyer, such as the recent spin-off of the drive systems division of the Oerlikon Group in Switzerland, which was taken over by an industrial buyer shortly after holding off the IPO project. Which particularities have you been able to observe thus far in the Swiss IPO market? On a positive note, this year’s trans actions have so far been diverse, which applies to both size and sectors. Whether medtech, biotech, hightech or logistics – so far, we have seen IPOs from different segments. The economic background was also rather broad – thus, we saw a Private Equity- ABOUT THE INTERVIEWEE Patrick Förg is the Head Origination in the Primary Markets team at SIX, Securities & Exchanges. He and his team are responsible for the listing/IPOs of companies and the positioning of the Swiss exchange as a destination for both Swiss and international companies. To achieve this, Förg manages relationships with all of the interest holders involved in the listing process by acting as a capital market partner and central source of expertise on the equity and debt capital markets. Before joining SIX, Förg worked for twelve years in the Corporate Finance & Treasury department at Holcim (now LafargeHolcim). 12 Special “Capital Market Switzerland 2018”

Introduction & Background Fig. 1: Low Volatility Paves the Way for IPOs SIX Listings (compared to volatility) 30 25 20 15 10 5 3 2 7 8 1 4 5 6 9 0 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 11.200 11.000 10.800 10.600 10.400 10.200 10.000 9.800 9.600 9.400 9.200 1 2 ASMALLWORLD (Mar-18) Sensirion (Mar-18) 3 4 Medartis (Mar-18) CEVA Logistics (May-18) 5 6 Polyphor (May-18) Klingelnberg (Jun-18) 7 8 Lalique (Jun-18) 9 ObsEva (Jul -18) Blackstone Resources (Jul -18) VSMI SPI Source: SIX; Aug-18 international groups may be listed here, but are active worldwide. They make up the lion’s share of the Swiss stock market capitalisation. Further approximately one hundred well-established companies are represented, which exhibit a market capitalisation of between CHF 100 million and CHF 1 billion. Many of these mid-size companies are true gems. We hope that, just like with the Klingelnberg IPO, an ever- growing number of family companies at home and abroad will take into consideration the positive aspects of going public, and that this step will help them set the course for their future. To ensure that the visibility of small and mid-size companies remains high after their IPOs, we also support them with our “Stage Programme” as required. Why do family companies often shy away from the trading ﬂoor? Some common reasons include loss of control, the fear of activist shareholders or the wish to avoid unwanted publicity; however, as I see it, being listed on the stock exchange offers many advantages to family-owned companies. The associated boost in the company’s future viability alone is a good reason to step onto the trading ﬂoor. Around a fourth of the listed companies in Switzer- land are family-controlled, with similar levels of family ownership seen on an international scale. The structuring of minority shareholder laws has a huge impact here – that is, the more effectively the fear of giving up control is contained, the more enthusiastic family companies will be about an IPO. In Switzerland, we have takeover laws that regulate the take- over conditions for listed companies. Therefore, clear provisions apply to the acquisition of companies listed on the Swiss exchange, and the law also gives companies a good amount of leeway, for example through opting-up and opting- out clauses, which can be embedded into the company articles/statutes. Close to 30% of the SIX-listed companies make use of this option. Where is there, in your view, still room for improvement of the Swiss capital market? In terms of taxes, the Swiss capital market has some features that set it apart from other capital markets by a fair margin, such as pertaining to the levying of withholding taxes. These issues need to be addressed. Furthermore, I believe that we could do bet- ter on the topic of risk-taking, which is rather low in the German- speaking region – though this should not be taken as a blanket statement, since we have many biotechno- logy companies in Switzerland that show no revenues and can actually be classed as “risky”. These biotechnology companies are deﬁnitely in a position to raise ﬁnancing. And where do you see the greatest po- tential on the Swiss capital market, parti- cularly from an international perspective? 14 Special “Capital Market Switzerland 2018”

The Swiss Firm to Lead You Worldwide Meyerlustenberger Lachenal Ltd. (MLL) is one of the most reputable international business law ﬁrms in Switzerland. Our 100 experienced and dynamic lawyers form a strong team of specialists that stand for innovative and solution-focused services. Capital Markets Expertise As a recognized representative of the SIX Swiss Exchange MLL advises banks, issuers and investors on all capital market transactions including capital raising, structured ﬁnance, fund formation and related regulatory matters. MLL is also highly specialized in FinTech matters and has become a leading ﬁrm in advising clients on ICOs and digital transformation. Contacts Dr. Christoph Heiz, LL.M., christoph.heiz@mll-legal.com Dr. Wolfgang Müller, MBA, wolfgang.muller@mll-legal.com Dr. Alexander Vogel, LL.M., alexander.vogel@mll-legal.com Andrea Sieber, LL.M., andrea.sieber@mll-legal.com Meyerlustenberger Lachenal Ltd. Attorneys at Law www.mll-legal.com Zürich | Genève | Zug | Lausanne | Brussels

Introduction & Background m o c . e b o d a . k c o t s – d r a h c o l c e t s e e c © l : o t o h P The Swiss capital market is very efﬁcient and well positioned, with many internatio- nal investors. The economy of Switzerland is substantially smaller than the one of Germany or France, but the market capita- lisation of the Swiss exchange is almost at the same level as the ones in Frankfurt or Paris. That we have an extremely strong capital market is also proofed in the IPOs of the past. Last year, there were two huge IPOs in the name of Landis+Gyr and Galenica, which generated a total of over CHF 4 billion. Also in 2018, we saw the IPO of CEVA Logistics, which exceeded the CHF 1 billion boundary in terms of capital raised. An idiosyncrasy of the Swiss IPO market is that we see fewer transactions than other European stock exchanges – however, the average trans action is twice as big. This goes to show that we can handle large transactions. An additional feature of the Swiss exchange is the time factor. After submitting an application to The economy of Swit- zerland is substantially smaller than the one of Germany or France, but the market capitalisation of the Swiss exchange is almost at the same level as the ones in Frankfurt or Paris. be listed, a decision is made within a maxi- mum of 20 business days. You would not receive a prompter acknowledgement from the regulatory authority of any other stock exchange. As a result, you can go from an IPO project kick-off meeting to your ﬁrst day on the trading ﬂoor within just 100 to 150 days! Would you say that Switzerland is an international ﬁnancial centre at its core? Absolutely, yes. We are characterised by a cross-border mentality. That is why, according to a study conducted by the Boston Consulting Group, Switzerland is by far the market leader in cross-border wealth management – and that is just one example of our excellence. Furthermore, Swiss companies operating on a global scale often only generate a small part of their revenue in their country of origin. But that just goes to show how our company culture is built around internationality. It can also be seen in our multilingualism: we are able to effortlessly switch between different languages – from English to German or French, or even Italian. By the way, companies can produce and ﬁle all listing- related documents in one of these four languages. Industry 4.0, artiﬁcial intelligence, cryp- tocurrencies – at the moment, a lot of different factors point towards radical change. What are the biggest challenges and opportunities for the Swiss exchange in times like these? The Swiss exchange is operated by SIX, which also has a central innovation department; this should develop into the catalyst for innovation in new infrastruc- ture services of the Swiss ﬁnancial centre. 16 Special “Capital Market Switzerland 2018” In addition to its organisational strengths, SIX runs a venture fund of CHF 50 million to support innovation at the Swiss ﬁnancial centre. Collaboration with the banks in the area of innovation will be stepped up when it comes to infrastructure. We are developing individual banking groups to target speciﬁc customer needs more effectively. This involves the establishment of a competence centre for relevant disruptive technologies (block- chain, advanced analytics, etc.). services with And furthermore... At the centre of it all is the SIX Digital Exchange. It will provide complete and integrated end-to-end services for the origination, trading, handling and safe- keeping of digital assets. This will enable the tokenisation of existing securities and the integration of assets not included in today’s ﬁnancial systems, known as non- bankable assets. The ﬁrst services will be launched around mid-2019, and in doing so, we will create a new ecosystem within a regulated environment. We want to create a bridge between the traditional and the new world. Existing and new market parti- cipants will be given the option to orient their business models according to the opportunities provided by the new environment. How will this incorporate institutional investors? Until now, digital assets have seen little to no money from institutional investors. A large part of the money for digital invest- ments has come from private individuals, which is plain to see from the example of ICOs. With the SIX Digital Exchange, we want to institutionalise and professionalise the sector. This also means that we want to earn the trust of institutions. In my opinion, that would also have huge potential, since it could revive both the Swiss and European start-up cultures. Pension funds in particular, which have a considerable amount of cash and cash equivalents at their disposal, could diversify their investments in non- bankable assets in the future. In other words, the SIX Digital Exchange is about trust, regulation, professionalisation and security. Many thanks for the discussion. The interview was conducted by Svenja Liebig.

Introduction & Background Playing it safe Why more defensive Investment Strategies are currently the smarter Choice Despite increasing ﬁnancial risks, company proﬁts are steering towards a new record. This environment is more favourable toward payers of quality dividends that display growth and companies that are improving their proﬁts through a successful realignment. By Stefan Meyer defensive investment strategies, since the global economic cycle is now at an advanced stage. Diversiﬁcation that is as broad as possible also helps to reduce risks. m o c . e b o d a . k c o t s – n o i t i d a r T r o t c e V d n u i s u c s © : n o i t a r t s u l l I the following respective Fair absolute assessment and considerable dividend yields The price/earnings ratio (PER) for the Swiss Performance Index (SPI), which is based on the estimated company proﬁts for twelve months, currently stands at of 16–17x. Therefore, the assessment is only just above the 30-year average of 15x. The dividend yield is actually attrac- tive right now: with an estimate of over 3% for the current ﬁnancial year, it is signiﬁ- cantly higher than the average of 2.4 % since the turn of the millennium. Of The latent risks in the world have multiplied, which has brought about currency ﬂuctuations on the stock market. To account for this, we have realigned our tactical investment strategy, adopting a more defensive approach. First record proﬁt since 2006 in our sights However, the reporting season for com- panies in the ﬁrst half of the year was robust, and the companies listed on the Swiss Stock Exchange are again steering towards new record proﬁts. For months now, market expectations have been set on an increase in proﬁts of approximately 28% vs. the previous year. We consider this growth rate to be within reach – though the ﬁrst new record for proﬁts since 2006 would still be attained even if we were to fall a few percentage points short. The Swiss economy and companies are signiﬁcantly exposed to international uncertainties because they only have a small home market, yet have an above- average presence abroad. We estimate that Swiss companies generate 90% of their proﬁts abroad. Admittedly, the global economy currently remains robust. Nevertheless, we recommend investing more cautiously and favouring more 18 Special “Capital Market Switzerland 2018” ABOUT THE AUTHOR Stefan Meyer is an equity research analyst at the Chief Investment Office of UBS Global Wealth Management. He has worked as an equity research analyst at UBS for over 25 years and currently covers Swiss shares from Zurich after two long-term stations in Asia.

Introduction & Background m o c . e b o d a . k c o t s – e r u t c i p - e e g a m © l : o t o h P particular interest are dividend yields compared to bond yields. As long as interest rates and bond yields do not bounce back considerably, the PER of the shares does not need to fall back to its historical average value or lower. In addition, the solid development in proﬁt will also have a positive impact on dividend growth. We do not consider the gradual, moderate price increase for debt capital, in the form in which we anticipate it, to be problematic, since the average debt ratio of Swiss companies is moderate. Our preferred investment focus for the Swiss stock market is on high-value dividend titles. Dividend strategy and self-help are the most attractive Our preferred investment focus for the Swiss stock market is on high-value dividend titles. Dividends with growth remain of particular interest in light of the record lows for CHF interest rates and bond yields. Furthermore, dividends are an integral and defensive component of the performance of the stock market. In the last 20 years, over half of the total yields of the SPI was attributable to dividends, while the rest was attributable to share price gains. The growth factor is nonetheless important, because shares based purely on yield can no longer proﬁt from the sustained robust economy again allows for more revenue and proﬁt growth. The topic of realignment is also interes- ting in terms of stimulating growth. Swiss companies implement extensive restructuring measures to boost their growth again currently offer attractive investment opportunities. The companies that have succeeded in this area have taken matters into their own hands when it comes to a signiﬁcant part of their economic improvement and are, accordin- gly, not as dependent on positive eco- nomic performance. interest rates and falling that Traditional defensive investment strategies A typical strategy is to concentrate on defensive sectors during economically difﬁcult phases. These include the basic consumer goods and telecommunications industries as well as the health and care sectors. The proﬁt development of com- panies from the defensive sectors was slightly negative only twice since the year 2000, and the average yearly revenue variation was 7%. Even though the global economy during this period only expe- rienced a recession from 2001 to 2002, the operating proﬁts of companies from the cyclical sector ﬂuctuated twice as strongly, at 15% per year. The ﬂuctuations were particularly sizeable in the ﬁnance sector. Another defensive strategy is focussing on companies with a strong track record, i.e. companies with net debts lower than their EBITDA. This is considered to be very solid, particularly in the defensive sectors. Conservative investors only choose companies with good net cash items in their balance sheets. Low exchange rate ﬂuctuations and assessments A further defensive strategy is investing in shares with a historically low level of exchange rate ﬂuctuations. This includes shares with an annual volatility of below 20%. A more aggressive method of investing defensively is by way of shares valued favourably in a historical comparison. This includes, ﬁrst and foremost, cyclical shares, whose proﬁts are very sensitive to economic conditions but carry a lower proﬁt risk regarding their share price due to their previous assessment. Should they, in fact, see a drop in proﬁts, most of it would already be included in the price. Even if the dent in proﬁts endures for a while, such shares still have particular price potential. On the other hand, we expect below- average price performance from compa- nies in sectors currently facing difﬁcult market conditions, companies with their own speciﬁc corporate challenges, and shares with unattractive assessments. Special „Kapitalmarkt Schweiz 2018“ 19

Being Public/Investor Relations View beyond the Rim of the Plate Pitfalls for Issuers with Cross-Border Listing It is quite frequent that foreign companies seek a primary listing on a stock exchange in Switzerland or that Swiss companies seek a primary listing abroad. Such cross-border listings may result in unintended surprising situations that should be considered and addressed in advance. By Hans-Jakob Diem and Jacques Iffland m o c . e b o d a . k c o t s – . I D T L . E T P C H P R O M O T O H P © : n o i t a r t s u l l I I n an increasingly globalized world with globalized capital markets, it is not surprising that the number of cross- border listings has become signiﬁcant. Currently, there are 13 non-Swiss com- panies with a primary listing on the SIX Swiss Exchange, including, for instance, KTM Industries and COSMO Pharmaceuti- cals. A number of foreign IPO candidates may follow suit. On the other hand, the number of Swiss issuers with a primary listing abroad is even higher and includes a diverse universe of companies such as Coca Cola HBC (listed on the London Stock Exchange), EDAG Engineering Group (listed on the Frankfurter Wertpapier- börse) or AC Immune (listed on NASDAQ). The reasons for such cross-border listings are manifold. In some cases, the cross-border listing is the mere result of a re-domiciliation, in other cases the issuer jurisdiction. has an important part of its business in the listing Probably most frequently, the equity markets for a spe- ciﬁc segment or industry sector are perceived to be larger, more active and more liquid in the listing jurisdiction than the home market. However, irrespective of the reasons that may lead to a cross- border listing in a speciﬁc case, unintended legal issues may arise that should be addressed in advance. Foreign companies with a primary listing in Switzerland Foreign companies that consider a primary listing in Switzerland will (in general) welcome the fact that the Swiss takeover law and the Swiss rules regarding disclosure of signiﬁcant shareholdings will become applicable as a result of the main listing in Switzerland. This means, in 20 Special “Capital Market Switzerland 2018” that particular, the mandatory offer regime imposed by Swiss law will apply, which gives the investors a mandatory exit at a minimum price if any shareholder or group of shareholders crosses one third of the voting rights of the issuer. While the applicability of Swiss takeover law will generally be perceived positively both by the issuer and the investors, it has to be noted that open questions arise as regards enforceability. A prominent example is the case of SHL Telemedicine, an Israeli company whose shares are mainly listed on the SIX Swiss Exchange. In January 2018, the Swiss Takeover Board held that a group of share- holders had crossed the threshold and was due to make a mandatory bid. Despite the fact that the ruling was later conﬁrmed ABOUT THE AUTHORS Hans-Jakob Diem is a partner and heads the Corporate and M&A practice group at Lenz & Staehelin in Zurich. He is regarded as a leading expert in mergers and acquisi- tions as well as capital market transactions. Dr Jacques Iffland is a partner at Lenz & Staehelin in Geneva. He is a specialist in corporate law, securities regulation and M&A, and regularly advises listed com- panies, investors and financial intermediaries in these areas.

Being Public/Investor Relations m o c . e b o d a . k c o t s – k r a m r o g e R © : n o i t a r t s u l l I by the Financial Markets Supervisory Authority, the controlling shareholders failed to submit the mandatory offer. the Takeover Board Consequently, sanctioned the shareholder group in September 2018 by suspending their voting rights in SHL Telemedicine, as foreseen by the Swiss takeover rules as a possible remedy. It remains to be seen, however, if this sanction that was imposed by a Swiss authority under Swiss takeover law will be recognized or enforceable in respect of an Israeli company under Israeli corporate law. This case, which has not yet been ﬁnally determined, illustrates that practical difﬁculties as regards enforceability of the Swiss takeover rules in respect of foreign issuers with a main listing in Switzerland may arise. Swiss issuers with a pure listing abroad Contrary to foreign issuers whose equity securities are mainly listed on the SIX Swiss Exchange, the Swiss takeover law and the Swiss disclosure rules do not apply to Swiss issuers with a pure listing abroad. This may mean that the Swiss issuer is vulnerable to unsolicited take- overs because the takeover law of the listing jurisdiction does not apply to it either, as is the case, for instance, if the Swiss issuer is listed on a stock exchange in Germany, France or the United States. This may also diminish the negotiation power of the shareholders or the board of directors in an M&A context. More gene- rally, the non-applicability of any takeover regime will generate legal uncertainties for all parties involved and could result in lengthy and costly legal proceedings. To mitigate the situation to a certain extent, the Swiss issuer may introduce share transfer or voting rights restrictions in its articles of association or try to replicate certain (U.S.) takeover devices in its articles of association, by providing that any shareholder who acquires shares above a speciﬁed threshold can only exercise its voting rights if it submits an appropriate offer (under terms speciﬁed in the articles of association) to all shareholders. These regimes are, however, complex and largely untested or not really effective in practice. Finally, the Swiss issuer can list its shares on a Swiss exchange, on top of its foreign listing, to create the Swiss exchange listing required for the applicability of the Swiss takeover rules. Such an additional Swiss listing will be treated as a main listing for Swiss law purposes, as a secondary listing is only possible for foreign com panies. This latter way of a dual listing was recently chosen by the Geneva-based life-science company ObsEva. Initially only listed on NASDAQ, ObsEva conducted a dual primary listing on the SIX Swiss Exchange in mid- 2018 with the stated purpose “to secure for its shareholders the protection offered by the Swiss takeover rules.” Conclusion In summary, it is worth noting that cross- border listings may raise issues regarding the applicability or enforceability of a meaningful takeover regime. While a foreign issuer with a main listing in Switzerland will generally welcome the protection offered by the Swiss takeover law and disclosure rules, they should be aware that the enforceability may not be fully ensured instances. Swiss issuers, on the other hand, that seek a listing abroad should consider a dual listing on the SIX Swiss Exchange to make sure that they do not “fall through the cracks” and can avail themselves of the protection offered by the Swiss takeover law and disclosure rules. in all ADVERTISEMENT Displaying Relationship banking for the capital markets. PASSION. BankM - Representative Ofﬁce of FinTech Group Bank AG Mainzer Landstrasse 61 D - 60329 Frankfurt am Main www.bankm.de Contact: Dirk Blumhoff / Ralf Hellfritsch T +49 (0)69-71 91 838-10 info@bankm.de

Being Public/Investor Relations m o c . e b o d a . k c o t s – k á s r i J b u k a J © : o t o h P “Investor Targeting is the Basis for strategic IR” Interview with Cédric Baumgartner, Managing Director, EQS Group The Markets in Financial Instruments Directive (MiFID II) stipulates new methods for companies in the EU and with it efﬁcient investor targeting. For issuers in Switzerland as well, direct contact with this target group is becoming increasingly important. However, this often poses complex challenges to IR managers in light of limited time and ﬁnancial resources. In an interview with Cédric Baumgartner of the EQS Group, we look into how these can be solved most efﬁciently. GoingPublic: Mr Baumgartner, the Investor Relations Ofﬁcer in the USA concentrates on addressing institutional investors. Is this also the future of IR in Switzerland? Baumgartner: In Europe, investor rela- tions is undergoing change, not least due to increased regulations in recent years. Access to investors became signiﬁcantly more difﬁcult in 2018 due to MiFID II. For this reason, those responsible for IR will have to intensify their communication with institutional investors. In contrast to their colleagues in the US however, they continue to be responsible for press announcements and the organisation of the general meeting. Thus, IR managers in Switzerland will also have a much wider range of duties in the future. This makes the challenge even greater when new tasks are added, doesn’t it? That’s absolutely right, since the search for and targeted approach of investors takes time and effort. Therefore, I’m convinced that automation and digitali- sation will also become increasingly important in Europe whenever the goal is efﬁcient investor communication. Which brings us to the topic of investor targeting. What exactly does this entail? 22 Special “Capital Market Switzerland 2018” ABOUT THE INTERVIEWEE Cédric Baumgartner is the Managing Director of EQS Group. He was formerly responsible for digital projects in the areas of investor relations and corporate commu- nications at Geberit.

Investor targeting is the competition for investors and is essential for strategic IR work. It includes everything that contri- butes to the identiﬁcation and analysis of potential and existing investors. Of course, in this context the shareholder ID is essential, since it provides important ﬁndings on the composition and changes in shareholder structure, thus making an efﬁcient analysis with peer group com- parisons possible. Though these ﬁndings really just set the IR manager’s work in motion. If I know who is investing in my sector, my next step is to think about how and where I can reach this stakeholder. How is that? If I know who is investing in my sector, my next step is to think about how and where I can reach this stakeholder. Interacting with this target group is just as important as identifying it. In connection with this, for example, the planning of our own road shows gains importance, especially in light of MiFID II. Could you please explain this in detail? Until now, it wasn’t easy for small-cap and mid-cap companies to get qualiﬁed access to investors. This situation has got worse with MiFID II since many funds, asset managers and other investment entities are not prepared to pay for corporate access and research on low-capitalisation assets. Thus, a scenario threatens in which these issuers completely disappear from the focus of institutions if they are not themselves active. However, the company organisation often reaches its limits here. But awareness on the capital market must be guaranteed. What is the way out of this dilemma? For this company, there is no way other than to take investor contact into our own hands. The complex challenges can Being Public/Investor Relations approach. IR managers can access their data from anywhere any time, and thus easily analyse investor proﬁles, observe the shareholder basis or plan road shows, for example. Due to the rapid availability of the data, it’s possible for IR represen- tatives to tailor management brieﬁngs to investor discussions. What else must IR managers watch out for? The quality of results of investor searches and analyses is very dependent on the database: only high-quality and up-to- date international data deliver good results. This is why IR managers should not rely on external investor databases alone. They must also continually update the data and add memos or meeting minutes to proﬁles. One last question: how should a plat- form be constructed so that it supports investor targeting? First of all, necessary technical conditions must be put in place and all IR tools combined in one platform, for a uniﬁed approach. This is the only way to ensure a modern operation that saves time and money and also avoids errors in meeting regulatory obligations. Such an investor targeting system must mature and grow. The more information it contains on investors, the more promising its com- munication strategies. Issuers can’t start soon enough with the development of such an ecosystem; time is short since MiFID II took effect. Mr Baumgartner, many thanks for the discussion. The interview was conducted by Svenja Liebig. For small-cap and mid- cap companies, there is no way other than to take investor contact into our own hands. only be mastered through automated processes. Many small-cap and mid-cap companies have used isolated solutions to fulﬁll reporting obligations or to keep insider lists, thereby forgoing synergy effects. Only one entire system can guarantee this, such as the EQS Group’s COCKPIT, which displays digital processes for the identiﬁcation and analysis of inves- tors, the communication of capital market participants and the monitoring of IR activities. The IR manager would be completely active in the digital world. Is that right? That’s correct. A platform that represents complete IR work ﬂows provides great value, particularly due to the interaction of activities. This means that IR managers have access to their own ecosystems, which take on their own character by connecting with an investor database, the company’s CRM system, and – if available – the share register. What advantages do digital solutions offer for investor targeting in particular? They increase efﬁciency and make more structured actions possible. Automation provides the basis for a targeted investor m o c . e b o d a . k c o t s – n a n a h c t i © : n o i t a r t s u l l I Special “Capital Market Switzerland 2018“ 23

Being Public/Investor Relations Influence of Corporate Compliance grows on the Capital Market How Companies can gain a competitive Advantage through Compliance Reporting At ﬁrst sight, corporate compliance and investor relations don’t seem to have much in common. In a time when economic scandals are piling up, compliance is becoming a more widely debated topic among investors as well. Therefore, a compliance management system can help companies to gain a competitive edge on the capital market. One requirement for this is regular, thorough compliance reporting. By Prof. Dr Christian Hauser Limiting uncertainties Effective compliance management is relevant to both existing and potential investors, because breaches of law are an uncertainty factor that can inﬂuence their investment decisions. Introducing a compliance management system alone will not be enough to remove these uncer- tainties completely. In many cases, there is an information asymmetry between management and investors with regard to corporate compliance in a company – a classic principal-agent problem.3 Only through targeted compliance reporting m o c . e b o d a . k c o t s – i l o n N E o c N © i : o t o h P Criminal activity, such as bribing a foreign ofﬁcial, can increase com- pany revenues for a short time and thus be seen as supposedly useful. However, if the offences come to light, it causes serious harm to the company – its economic value drops due to the accrual of legal costs, fees and payments for damages, as well as reputational damage. 1) HTW Chur, Korruptionsrisiken erfolgreich begegnen – Strategien für international tätige Unternehmen, 2012, p. 22. 2) HTW Chur, Whistleblowing Report 2018, p. 19. 3) Junc Lars, Corporate-Compliance-Berichterstattung in Deutschland, Dissertation, Springer-Verlag, 2010, p. 21 ff. By introducing a compliance management system, the risk of violations can be reduced. An important prerequisite for this is the clear and credible acknowledge- ment that company management does not tolerate breaches of law, even if they are seemingly beneﬁcial to the company.1 The introduction of internal reporting channels, such as a web-based reporting system, are part of best practi- ces because such channels increase the number of relevant reports,2 thus also contributing to a reduction in risk. specialised ABOUT THE AUTHOR Christian Hauser is a professor of general business administration and international management at the Swiss Institute for Entrepreneurship at the University of Applied Sciences HTW Chur. His research focuses on corruption prevention, business integrity, international entrepreneurship, corporate governance, support for small and medium-sized enterprises and private sector development. 24 Special “Capital Market Switzerland 2018”

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Being Public/Investor Relations m o c . e b o d a . k c o t s – s o m m A i t E © : o t o h P can this information asymmetry be offset, investors’ uncertainties appeased and capital costs reduced in a best-case scenario.4 This special reporting is therefore a fundamental part of investor relations and belongs to non-ﬁnancial reporting as part of an integrated reporting approach. Noticeable trend towards additio- nal reporting A recent study shows that the signiﬁ- cance of compliance reporting has grown considerably over the last two decades. This study examined how the infor- mational environment of compliance, integrity and ethics in corporate re- porting in DAX30 companies changed from 2000 to 2015. The results were telling – in 2000, none of these terms were mentioned once in a single annual report. Fifteen years later, the terms were used on average more than 50 times per report.5 The authors believe that the more reporting on compliance topics stems from increased compliance efforts on the part of com- comprehensive 4) Ibid, p. 225. 5) Montag Pia/Böhm Jennifer, Entwicklung der Compliance-Berichterstattung, ZRFC 04/2017, p. 162. 6) Ibid, p. 164. 7) According to Article 49 para. 2 of the Listing Rules. 8) Withus Karl-Heinz, Transparente Compliance Management Systeme, in: Everling Oliver/Schaub Peter/ Stephan Rolf (Hrsg.), Transparenzrating, Springer-Verlag, 2012, p. 161. 9) Ibid, p. 173. panies; these efforts are linked to growing societal interest and a changing legis- lative environment.6 A study on compli- ance reporting currently being con- ducted at the University of Applied Sciences HTW Chur, Switzerland, illus- trates that major Swiss corporations in the ﬁnancial community are also providing more information about corpo- rate compliance. There is as yet no statutory disclosure obligation for this in Switzerland. The Regulatory Board of the SIX Swiss Exchange could, however, require that listed companies provide information on corporate compliance in their annual reporting.7 No fear of facing risks Because it is worth it to report on cor- porate compliance even without a legal obligation, here are a few tips on what makes for good reporting. It is important that reporting focuses on concrete compliance sub-areas that are actually relevant to the company due to the speci- ﬁc nature of its business.8 Reporting must also contain comprehensive and mean- ingful information about the company’s compliance management system, where all risks are addressed and the measures implemented to manage these risks are explained. With this, companies can get a leg up on their competition in the capital market who do not openly communicate compliance risks and measures.9 The scope and quality of the information provided about corporate compliance is critical, as is the assurance that it is up-to-date and reliable. The compliance reporting can then be proven to be up-to-date if information is provided on the website in addition to the annual ﬁnan cial statements. These days, best practices also fall into the same cate- gory as corporate compliance. The relia- bility of information for investors can be increased by having the compliance management system audited by an inde- pendent body according to recognised principles such as the ISO standard 19600 “Compliance Management Sys- tems.” Summary Despite the introduction of a compliance management system, potential investors can only be convinced of a company’s compliance efforts if comprehensive compliance reporting is also being conducted. Taking the aforementioned points into consideration, this kind of reporting is a suitable way to show inves- tors that all legal risks are combated by adequate measures and that breaches of law are thereby prevented. If a company says nothing about corporate compli- ance, however, they are increasing un- certainties on the capital market – with the potential consequence of increasing equity costs. 26 Special “Capital Market Switzerland 2018”

Being Public/Investor Relations In Accordance with international Standards Exemptions from the Prospectus Requirement under the new Financial Services Act In contrast to the legislation in the EU, in particular the EU prospectus directive (Prospectus Directive of the European Union), current Swiss law does not provide for uniform and comprehensive rules on prospectuses. The provisions on prospectuses are currently scattered over a number of different laws and self-regulations. The Financial Services Act (FinSA), which was passed by the Swiss Parliament and is likely to enter into force on 1 January 2020, will change this situation as it contains comprehensive rules relating to prospectuses for the offering of securities and the admission of securities to trading, which will apply to all types of ﬁnancial instruments. By Dr Christoph Heiz, Dr Wolfgang Müller, Andrea Sieber, and Dr Alexander Vogel As mentioned, the exemptions are largely based on the exemptions contained in the EU Prospectus Directive, but with some more liberal tendencies (e.g. according to m o c . e b o d a . k c o t s – k c o t x © : o t o h P T he new act provides that a pros- pectus must be published in ad- vance by anyone who offers securities to the public or applies for admission of such securities to trading on a trading venue. However, the FinSA will provide for a number of exemptions from the requirement to prepare a prospectus, which are largely in line with the current Prospectus Directive of the European Union and existing regulations of SIX Swiss Exchange. The exemptions can be divided into three categories, namely exemptions according to the type of offer, exemptions according to the type of securities, and exemptions the admission to trading. in connection with Type of offer The list of exempted transactions includes public offers limited to professional clients such as ﬁnancial intermediaries, large companies, companies with a profes- sional treasury, and – subject to certain yet-to-be-speciﬁed criteria – wealthy private clients and family ofﬁces. Further- more, offerings addressed to less than 500 (private or professional) clients and offerings with a minimum investment amount of CHF 100,000 or of securities with a denomination of at least CHF 100,000 each are excluded. Also, de minimis offerings with a total value of less than CHF 8 million over a period of twelve months are exempted. ABOUT THE AUTHORS Dr Christoph Heiz, LL.M. (top left), is a lawyer and partner at Meyerlustenberger Lachenal AG. Dr Wolfgang Müller, MBA (top right), is a lawyer and partner at Meyer- lustenberger Lachenal AG. Andrea Sieber, LL.M. (bottom left), is a lawyer and partner at Meyer lustenberger Lachenal AG. Dr Alexander Vogel, LL.M. (bottom right), is a lawyer and partner at Meyer- lustenberger Lachenal AG. 28 Special “Capital Market Switzerland 2018”

Being Public/Investor Relations m o c . e b o d a . k c o t s – n g i s e d _ k s © : n o i t a r t s u l l I Securities that are admitted for trading on a non-Swiss trading venue, provided that the relevant non-Swiss law is recognized as appropriate with regard to regulation, supervision and trans- parency Securities for which admission is sought for a trading segment which is open only to professional clients trading for their own account and for the account of professional clients Moreover, the exemptions from the obliga- tion to publish a prospectus based on type of offer and type of security shall also apply mutatis mutandis to the admis- sion to trading. Summary With the entering into force of the FinSA, Switzerland will have comprehensive rules on prospectuses which comply with international standards. The exemptions are also based on international regu- lations and are in part more liberal than the current EU regulation. As the FinSA also contains options for future adjust- ments of relevant limits and thresholds, the Swiss prospectus law can develop dynamically in line with international standards, taking into account the Swiss particularities. Similar to the exemptions regarding the type of offer, the Swiss Federal Council may pro vide for further exemptions from the prospectus requirement for other types of securities, taking into account recognized international standards and foreign legal developments. Admission to trading Finally, there are exemptions to the prospectus requirement in connection with the admission of securities to trading on a stock exchange, which, like the other exemptions, are based on the corres- ponding European regulation. The FinSA provides for the following four exemptions in connection with the admission to trading: Equity securities which, over a period of twelve months, represent less than 20% of the total number of equity securities of the same class, and which are already admitted to trading on the same trading venue Equity securities issued upon conver- sion or exchange of ﬁnancial instru- ments or as a result of the exercise of a right attached to ﬁnancial instruments, provided that such equity securities are of the same class as the equity securities already admitted to the relevant stock exchange Special “Capital Market Switzerland 2018“ 29 the EU Prospectus Directive, the threshold for public offerings to private or unquali- ﬁed clients is currently 150 while the FinSA sets the threshold at 500). More- over, FinSA provides that the Federal Council may adjust the various thresholds (e.g. number of investors or total volume of the offer) in the future, taking into account international standards and legal developments in other jurisdictions. Type of security The FinSA includes an extensive list of types of securities which can be offered publicly without triggering an obligation to publish a prospectus. Among others, the following securities are exempted from the obligation to publish a pros- pectus: Equity securities that are issued outside a capital increase in exchange for equity securities of the same class that have already been issued Equity securities issued or delivered as a result of the exercise of rights attached to ﬁnancial instruments of the same issuer or group Securities offered for exchange in case of a takeover, where information is available which is equivalent in content to an offering prospectus Securities offered or allotted in con- nection with a merger, demerger, con- version or transfer of assets, provided that information is available which is equivalent in content to an offering prospectus Equity securities distributed as divi- dends to holders of equity securities of the same class, provided that infor- mation is available on the number and type of equity securities and the reasons for and details of the offer

Being Public/Investor Relations Integration of Duty and Freestyle Can‘t Reporting be completely rethought? All corporate communications are in a phase of upheaval. This also puts the annual report to the test. On the one hand, stakeholders and the general public demand an increasing degree of transparency with regard to a company‘s business activities. On the other hand, the digitalization of communication poses a number of new challenges. This is precisely where a great opportunity lies: to retell the annual report and present the company to a broader target group. By Linda Moers interests investors, but also stakeholders, i.e. the general public? In the Design Laboratory, citations are still noted on Post-its. They come from a survey at the place where you meet the broad target group: on the street. Do you read the annual report? In what form? What questions do you have for the respective company? What is of particular interest? Many answers help with the one big answer to an essentially important question in times of “integrated reporting”: Now that there is more movement in the annual report, shouldn‘t one seize the opportunity to completely rethink it? The goal of the workshops is thus deﬁned: Together with customers, the aim is to deﬁne the most important messages for their annual reports with regard to their the essentials and to create completely new overviews. One of the most innovative developments is the communicative pre- target groups, to bundle ABOUT THE AUTHOR Linda Moers is responsible for the written word at hw.design – from copy text to reportage. She previously worked for three years as a writer at Serviceplan Campaign 3. n g i s e d w h © . : o t o h P just an T he annual report has long been more than important source of information for stake- holders. It serves the growing interest of a broader public, which also includes non-governmental organizations. The annual report is a valuable tool for com- municating the company‘s actions, goals and signi ficance for society. No other publication can contribute more to the reputation of a company and the profile of a brand. Delivering messages in an exciting way Reputation and proﬁling of companies and brands. One immediately senses that many workshops, questions and analyses have to be hiding behind this sentence. In the design laboratory, creative people and customers stand together in front of the white boards and ﬁll them with post-its and notes. Irrespective of the task at hand, they always walk the same path together. The shelves in between, however, are ﬁlled with the status quo of the previous year‘s annual reports, which are now being consistently further developed. The research and reporting service is based on a complex problem: every year, compa- nies have to juggle out a ﬂood of infor- mation between mandatory information and so called freestyle. In between, the actual messages of the companies can quickly get these important messages and communicating them in a targeted manner is the greatest challenge for the annual report. What lost. Formulating 30 Special “Capital Market Switzerland 2018”

Being Public/Investor Relations paration of a quintessence of image com- munication and equity story. The annual report is developed across all channels in order to generate maximum impact for the respective messages. From print to digital. them Practical examples For the Swiss customer LafargeHolcim – one of the world‘s largest manufacturers of building materials –, for example, we implemented three annual reports and transferred to various media channels. In addition to the three print editions, a new online reporting format was established for the ﬁrst time. The newly developed format with a “Guided Tour”, specially adapted for the company, presents the most important ﬁgures and information of the business year visually and concisely. Short text passages support the explanation of the key facts. In this format, facts and ﬁgures can be correlated with each other or commented on. At the same time, the interactivity of key ﬁgures and information promotes greater attention on the part of the reader. n g i s e d w h © . : o t o h P n g i s e d w h © . : o t o h P implementation of With the help of integrated story telling, the the Group‘s strategy developed in the previous year was made tangible at the same time. Five case studies, portrayed in Egypt, Mexico, the Philippines, the USA and Malawi, present the strategic pillars of the group: cost leadership, asset-light approach, commercial transformation and sus- tainability. Large-scale portraits and videos with small picture series alternate with the respective text. This not only convinced customers, especially readers, but even juries: LafargeHolcim‘s 2016 online reporting won silver at the BCM Award 2017 and the German Design Award 2017, among others. Conclusion For hw.design, the following does not only apply to the annual report: the development of brands and stories is not simply about good ideas. A good idea alone does not move a brand. It‘s always about the right answers. If you have the right answers, you can make a difference. There is never a given path that leads to these answers, because each task has to be solved differently. But there is one ﬁxed attribute that consistently accom- panies the work: the demand for the highest quality. This quality has two essential characteristics: the ability to surprise everywhere, and the long-term nature of doing so sustainably. Regard- less of whether it is an annual report or a website, our work is always ultimately one thing – the right answer to the ques- tion: “How can we move people with the brand?” Special “Capital Market Switzerland 2018“ 31

Being Public/Investor Relations “The English Language is an integral Part of Capital Market Communication” Interview with Marlen Schrader, Member of the Management Board and Chief Sales Ofﬁcer, EnglishBusiness Switzerland is multifaceted, in both a linguistic and a cultural sense. The English language in particular plays an extremely important role in ﬁnancial communication for Swiss issuers. We spoke with Marlen Schrader from the language services provider EnglishBusiness about topics such as the possible consequences of Brexit on corporate culture and language, the characteristics of the Swiss linguistic landscape and the strengths of the Swiss ﬁnancial centre. mostly been hired for our translation services, but we have also given on-site training sessions on negotiation in Switzerland. Speaking of the English language, Brexit awaits us next year. What does the withdrawal of the United Kingdom from the EU mean for Switzerland, which is itself not in the EU, and for the rest of Europe in general? It’s very difﬁcult to give a concrete answer to this question, since barely any details have been pinned down so far. Even in the United Kingdom, no agreement has been m o c . e b o d a . k c o t s – c P - s e r u o o C © i l : o t o h P GoingPublic: Ms Schrader, just some quick background information for our readers: you provide English language We help internationally growing companies communicate success- fully across language and cultural barriers. services. What exactly are they, and how do you come into contact with Switzer- land? Schrader: Generally speaking, we help in- ternationally growing companies commu- nicate successfully across language and cultural barriers. Speciﬁcally, we support our customers through translations and proofreading their written ﬁnancial communications and public relations material. Our training offerings cover everything from language training to all aspects of business communication, such as presentations and negotiations, and cross-cultural workshops. So far, when it comes to the Swiss market, we have ABOUT THE INTERVIEWEE Marlen Schrader is a member of the Management Board and Chief Sales Officer at EnglishBusiness AG, a consulting firm for international communication in Hamburg and Frankfurt. She studied English language and literature at the Martin Luther University in Halle-Wittenberg and was awarded a master’s degree in Applied Linguistics with honours at the University of Newcastle, Australia, in 2010. She has been working in the translation industry since 2011. 32 Special “Capital Market Switzerland 2018”

Being Public/Investor Relations It is also important in Switzerland at the moment to recognise regional customs and understand the corporate culture. are mostly concerned with the indicators contained in intercultural theory when it comes to gaining a better understanding of our customers in Switzerland. There are even bigger differences with the British, as the Swiss are comparatively risk- and conﬂict-averse. Brexit is a prime example of how, from the perspective of inter- cultural theory, the British see uncertainty and conﬂict as a positive. On the other hand, the grassroots democratic vote is similar to the Swiss federal referendums. The biggest difference to Germans is that we handle our wishes and impulses in a very controlled manner. In general, the Swiss are somewhat more relaxed. Though these tendencies are really more of an initial point of reference. is also important in Switzerland at the moment to recognise regional customs and under- stand the corporate culture. It In your opinion, what are the strengths of Switzerland as a business location? Switzerland is known for its political neutrality. Especially in times of crisis, this can help usher in more stability and security. This says a lot for Switzerland, economically speaking: a strong currency, lower capital costs and an internal market with higher purchasing power. In important industries such as the ﬁnancial sector, information technology, electrical engineering and metallurgy, Switzerland has already established itself as a major location. And not least, Switzerland offers its employees a very high quality of life – a crucial factor for the success of a company. Ms Schrader, thank you for the interes- ting conversation! The interview was conducted by Svenja Liebig. reached on how or if Brexit should proceed. Switzerland is indeed not part of the EU, but it does have free trade agree- ments with the European Community. In order to maintain its economic relations with the United Kingdom, Switzerland must also negotiate new agreements. The rest of us can be certain that we will need to prepare ourselves for more bureau- cracy. Economic relations are becoming more complex, but we also won’t be able to simply hop over to London for a long weekend break any more. is also uncertain what the employment of British citizens will look like. It And, speciﬁcally, what kind of impact will Brexit have on company culture (particularly on corporate language)? I don’t think that the corporate culture of all companies will be affected. Things could get interesting for us as service providers, but also especially for inter- national companies with subsidiaries in Great Britain or Northern Ireland. We can assume that teamwork and communica- tion between subsidiaries will change. This will happen simply because business trips won’t be possible at the drop of a hat. And the biggest changes will certainly happen if company headquarters are relocated to mainland Europe. If entire teams from London, for example, relocate and merge with the German staff, it is fully possible that English will become the internal corporate language. Yet the hurdles will be cultural in nature, in addition to linguistic. People in England are known for being extremely polite. If you aren’t prepared for that, it can clash with German directness. That’s why we focus on overall communication in addi- from different tion to the language aspect. So, when teams locations are combined, we assist the change process, help to bridge cultural differences, and support internal and external communi- cation. We are expecting that English will play an increasingly important role outside of Switzer- land, as well. Switzerland enjoys its reputation as a highly international country and is linguistically multifaceted – after all, there are four national languages. To what extent could this multifaceted nature be ampliﬁed even further by Brexit? As a language fan, I ﬁnd Switzerland, with its four national languages of German, Italian and Romansh, utterly French, fascinating. The English is already an integral part of capital market communication in particular. This trend will undoubtedly grow with Brexit, because we are expecting that English will play an important role outside of Switzerland, as well. Especially in larger European companies, there are already efforts under way to phase into using English as the internal and external corporate language and, as a second step, to translate into the national language. increasingly language To what extent does the linguistically very intercultural Switzerland differ from other European locations? What kind of experience did you gain from working with Swiss companies? Like you said, Switzerland is very inter- cultural, and there are considerable differences between the different cantons, making generalisations rather difﬁcult. We The hurdles will be cultu- ral in nature, in addition to linguistic. Special “Capital Market Switzerland 2018“ 33

Financing & Investment Cash is King Selected Swiss Equities offering Dividend Income and Growth Investors seeking dividend income will ﬁnd plenty of relevant equities trading on the SIX Swiss Stock Exchange in Zurich. Looking beyond mega-caps like Novartis and Nestlé the following stock selection is not only based on current dividend yields but also on long-term prospects for increasing earnings and, thus, dividends. We have, therefore, equally an eye on the quality of the management as well as on the corporate strategy. By Falko Bozicevic Coltene (WKN A0J3ED) CHF 100,00 75,00 50,00 40,00 30,00 Stück 5.000 0 LOG Source: Tai-Pan (c) Tai-Pan Kurs:109,20 (0,60 / 0,55%) - SMA(38):4.360 2010 04.01.2010 2011 2012 2013 2014 2015 2016 2017 2018 2.192 Kurse 18.09.2018 Umsatz: 1.405 Y ou cannot ignore the healthcare sector when screening for divi- dend stocks providing secure in- come as well as promising future increa- ses. This is especially true with regard to the Swiss market that is home to globally leading medtech specialists like Sonova, Straumann and Ypsomed. But these well- known stocks of acknowledged market lea- ders have become all too popular with in- vestors for their qualities resulting in sky- high valuations and, thus, dividend yields of less than 1%. Coltene‘s acquisitions accelerate growth Less famous than these, though no less successfully managed is Coltene, an inter- nationally active supplier of dental consumables to dentists and dental medical clinics. Coltene had been spun-off of Swiss industrial group Gurit-Heberlein, and has been quoted on the stock exchange since 2006. The factories for rotary instruments, prosthetics, etc. are located in Switzerland, Germany, the U.S. and Brazil. Just recently the company an- nounced two further takeovers in Canada and France. Collectively, the two compa- nies achieved revenues of CHF 97 million in 2017, mainly in infection control and with a focus on North-America. Key Figures of the discussed Dividend Shares In the ﬁrst half of 2018 revenue of Coltene increased by 10% to CHF 85.6 million. As cost efﬁciency is continuously driven up- wards the EBIT jumped by 18% while the net proﬁt increased by 15% to CHF 6.9 million, a net proﬁt margin of 8%. Since 2013 the dividend per share has been increased from CHF 2.20 to CHF 3.00. However, due to the stock‘s rise in recent months the current dividend yield has dropped to 2.7%. The pace of dividend increases, though, may quicken, not least owing to synergies following the two acquisitions that should be closed prior to year‘s end. Secure dividend income with market leader Galenica The IPO of Galenica in April 2017 was not only a full success but also an ice-breaker for the frothy Swiss and European primary markets. The stock offering was heavily over-subscribed. On the ﬁrst day of trading the shares closed with a solid 10% performance, and have risen ever-since. In 2017, Galenica‘s turnover amounted to CHF 3.2 billion, thereof two thirds in pharma wholesale and services and CHF 1.4 billion in pharmacy retailing. Galenica Company Coltene Galenica LEM Holding CHF 1,214.00 Source: GoingPublic Research Price P/E Ratio 2017 Dividend Yield Pay-out Ratio CHF 116.80 CHF 56.70 24 27 30 2.6% 2.7% 3.3% 65% 65% 85% 34 Special “Capital Market Switzerland 2018”

Capital. Market. Partnership. (E-)MAGAZINE – ONLINE – EVENT – NETWORK A strong capital market is the key to economic growth and innovation. We are a strong network. We stand for equity culture and retirement provision through shares. We stand for a vivacious , cosmopolitan, growing capital market. We make contributions to facilitate more IPOs and listings. With focus on the DACH region (Germany, Austria, Switzerland), and we always keep an eye on the globalised world. Oktober 2018 – 12,50 EUR (D) – www.goingpublic.de 2018 Pﬂ ichtblatt an allen deutschen Wertpapierbörsen Das Kapitalmarktmagazin GoingPublic Magazin Special Capital Market Switzerland (Vol. 6, 2018) ((( )) ,, A buzzing market A buzzing market There’s no plapplppppo ppppppppppp pp ce like home homeme homeomeome home homeome homeomh There’s no place like home ’ TTTTTTTTTTTTTTTTTTTTrue tr rue tre tre tre tr rue trr rue tr rue ue trttt rrueue ttrr r ee tre rr ruuuueee tttuueee tt r ee TTTTTTTTTT ess ue tr True treasures eeaeasur eeeaaaeaeeeaeeee Swiss primary market Swiss primary market out the e advantag advantag out the a out the aab ueueue ab Swiss issuers ab advanta es eses eses eeeseses uue ab uueuers abababbb uu uusuuuuusuusuu out the out the out the ouout the out the out the out the out the advantag advantag advantag advantag advantag advantag advantag advantag advant Swiss issuers about the advantages dvanta videnddend Dividenddend iden Dividen Dividenddend Dividend Dividend Dividend DivDivDividee Dividennn iDivDivv ene Dividen Dividevvidddennd DDDi dDivide DDD i e wthwthtwthhhhththwwtttwthwwww vidend vidend vidend ividend videnend ividen Dividend and growth nd groo and gro dand gro and grogro gro and gro and grogro nd gro nd gro nd gro nd gro d ggrgro nd gnd dd shows its strengths shows its strengths of the dde deeeeeeeeeeeeeheee omestic mesmestestimestmesticmestictimestmes market rket rket arketketearket rkrketk of the domestic market eyond t e SMI eyond th yond t yond th yond th eyond th eyond th eyond t yond th yond th eyond thd dneyond t stocks b stockkkk ckkccoooctoooocks b tststocks b s e SMI e SMI e SMI e SMI e SMI SMe SMI e SMI e SMI cks b ocks b ocks bks b cks b s b ckscks b ocks bk e SMSMS stocks beyond the SMI Capital Market Partners 2018 Capital Market Partners online: www.goingpublic.de/kapitalmarktpartner credit shelf

Financing & Investment Galenica (WKN A2DN0K) CHF 55,00 50,00 48,00 46,00 44,00 42,00 Stück 250.000 0 LOG Source: Tai-Pan (c) Tai-Pan Kurs:56,95 (0,20 / 0,35%) A M J 07.04.2017 J A S O N D 18 F M A M J 362 Kurse Umsatz: A J 45.724 S 18.09.2018 the measurement of electrical parame- ters. The automotive industry, in particu- lar manufacturers of electric vehicles, constitutes the main client group. Further- more, medtech as well as precision manufacturing and the energy industry, especially in renewable energies, are in need of LEM‘s innovative products in order to stay competitive. LEM is domi- nating its markets and holds, for example, a 90% market share in the Chinese electric vehicle industry. In recent years LEM never made it onto the list of enticing Swiss dividend stocks as continuous high increases in revenue and earnings have pushed the valuation persistently higher. However, by March of this year the over-bought growth stock started to struggle leaving the high of CHF 1.828 far behind it. When the initially only verbal attacks on free trade and globali- sation of “The Donald” hit the nerves of investors, they started to push the sell button. This process had only been acce- lerated when tariffs were actually intro- duced and the war of words esca lated. The shares experienced a low of CHF 1.130 but have turned up since then. The dividend yield currently amounts to 3.3%. LEM offers the prospect of future increases as the business outlook remains bright. The LEM stock is at the current valuation more than qualiﬁed for an for investors with strict safety dividend criteria. opportunistic purchase even was founded in 1927 as a wholesaler but runs today a network of 500 pharmacies in Switzerland of which 343 are wholly- owned. In Switzerland Galenica com- mands the top spot in pharma whole saling as well as in pharmacy retailing. The next competitor in retailing counts 91 pharma- cies whereas in wholesaling the no. 2 com- pany achieves merely half of Galenica‘s revenues. The Swiss market is the one and only focus of Galenica for a very good reason: nowhere in Europe are prices of drugs and margins of traders higher! The pharma market in Switzerland amounted to CHF 5.8 billion in 2017 and grows at a 2.1% rate annually. Galenica, however, has been increasing its revenues by 4.2% per annum since 2007. The EBIT- margin, though, more than doubled in the same period to almost 5%. Acquisitions contributed as well as the creation of a portfolio of brands in the beauty and health segment. As margins are higher in the case of own branded products like Lierac, expansion is being accelerated. The ﬁrst dividend payment post-IPO LEM Holding (WKN A0F657) amounts to CHF 1.65 per share, which equates to a dividend yield of 2.8%. The Pay-out ratio is 65%. Owing to the predominant market position the ability to pay future dividends appears as secure as possible. Buying opportunity: LEM Holding Diversiﬁcation is essential for any port- folio. Therefore, the third candidate is a Swiss high-tech world market leader called LEM Holding. The company was founded in 1972 and went public on the SIX Swiss Stock Exchange in 1985. In recent years LEM fully concentrated on developing and producing transducers for CHF 1.500,00 1.000,00 750,00 500,00 400,00 300,00 Stück 750 0 LOG Source: Tai-Pan (c) Tai-Pan Kurs:1.206,00 (4,00 / 0,33%) - SMA(38):950 2010 2011 04.01.2010 2012 2013 2014 2015 2016 2017 2.192 Kurse 72 Umsatz: 2018 18.09.2018 36 Special “Capital Market Switzerland 2018”

D EU T S C H E B Ö RS E C A S H M A R K E T Deutsches Eigenkapitalforum 26 – 28 November 2018 Sheraton Frankfurt Airport Hotel & Conference Center Entrepreneurs meet investors … i n a l for more · The o ri g 1996–2018 l m u r a o f t i p a k sches Eigen De u t t h a n 2 0 y e a r s · … at Europe’s most important capital market event for corporate financing. Register online: www.eigenkapitalforum.com Meet the most important decision-makers of listed as well as growth companies. Expand yout network and inform yourself about current capital market topics. Highlights 2018 - Up to 230 analysts’ conferences of share and bond issuers and up to 3,500 1-on-1 meetings - Up to 1,000 institutional investors and analysts - 1-on-1 meetings can be arranged beforehand, to meet decision-makers of the presenting companies in a time and cost-efficient manner - Presentations of selected non-listed companies - Forum programme comprising panel discussions and interviews Programme Monday, 26 November 2018 Tuesday, 27 November 2018 Wednesday, 28 November 2018 Equity- and debt capital Equity & venture capital Equity & venture capital - Opening speech - Analysts’ conferences of share and bond issuers - 1-on-1 meetings - Forum programme - Analysts’ conferences of share issuers - Presentations of non-listed companies - 1-on-1 meetings - Forum programme - Get-together - Analysts’ conferences of share issuers - Presentations of non-listed companies - 1-on-1 meetings - Forum programme Deutsche Börse AG Issuer Services www.eigenkapitalforum.com eigenkapitalforum@deutsche-boerse.com

Financing & Investment „The Listing on the Stock Exchange increased Investor Awareness“ Interview with Jan Luescher, CEO, ASMALLWORLD GoingPublic Magazine spoke to Jan Luescher about the Swiss stock market environment, domestic and foreign investor preferences as well as the advantages and disadvantages of becoming the ﬁrst listed social media company in the home country of chocolate, healthcare and ﬁnance. Fig. 1: ASMALLWORLD is a typical Network Orchestrator Source: ASMALLWORLD, Wharton School, University of Pennsylvania GoingPublic: Mr Luescher, the shares of ASMALLWORLD listed on the stock exchange at the end of March. Your experiences with the capital market so far? Luescher: Being listed on the stock exchange is deﬁnitely a positive develop- ment for our company and we see our decision validated. A listing on the stock exchange suddenly puts you in the spot- light and makes it easier for us to present ourselves to new investors. The media in general are also suddenly more interested in the company. This has certainly helped ASMALLWORLD a lot to increase the level of awareness and thus to bring the busi- ness forward. On the other hand, we also had to face critical voices, which is generally positive, but can also lead to a dispute. Why did you decide to list on the stock exchange in Switzerland – and then additionally go for a second listing in Germany? We are a very international company with members all over the world. But we have our headquarters, and thus also the majo- rity of our employees, in Zurich. We are therefore proud to be listed in Switzerland. The SIX Swiss Exchange also has strict re- quirements for all companies, which gives us more credibility as a smaller company. After the listing in Zurich, however, we were asked by some members and inves- tors whether it would be possible to buy the share in EUR. Since we assumend the effort to be manageable, we decided to seek a second listing in Frankfurt. Is there a difference between investor relations in Switzerland and in Germany? Of course, the corporate topics remain the same. However, we do notice that our domestic investors and non-Swiss inves- tors focus on their primary interests. 38 Special “Capital Market Switzerland 2018” Swiss investors are more likely to focus on issues such as the company‘s headquar- ters, comparisons with other Swiss com- panies and key individuals. Abroad, the discussion usually revolves much more around the actual business and future prospects. We also note that the German market is much more dominated by small investors than is the case in Switzerland, where there is also a broader mass of in- formation channels for these investors. How do you assess the Swiss capital market‘s increasing regulation? Our impression is that the capital market as a whole is becoming more regulated. I wouldn‘t particularly emphasize Switzer- land here. In many respects, that may also make a lot of sense. On the other hand, it must of course continue to be possible for smaller companies in exchange trading, otherwise I consider it difﬁcult to overcome this hurdle. Our to participate ABOUT THE INTERVIEWEE Jan Luescher is Chief Executive Officer of the ASMALLWORLD AG and joined the company in November 2016. He was born in Zurich in 1981 and is a Swiss citizen. He previously worked at Bain & Company as Management Consultant.

listing should therefore send out a signal that small-cap companies, too, may be listed at reasonable cost. What do investors appreciate about the Swiss capital market? The Swiss capital market is certainly shaped by a few big names in the pharmaceutical, banking, luxury goods and food sectors. Nevertheless, it is also the diversity of the location and the attractiveness of Switzerland as a country that are reﬂected in the overall range of listed shares. In this respect, we hope, whilst being the only social media com- pany here, to contribute to this diversity. than their How hard is it to get on the radar with a modern business model like yours in a country known especially for mountains, chocolate, life sciences and pharmaceuticals? Swiss investors are very well informed and cosmopolitan, but also a bit more conservative colleagues abroad. Sometimes it can be difﬁcult to score points with a business model like social media. Especially if the planned growth also involves investments in the ﬁrst few years. On the other hand, it is very interesting for certain investors that Switzerland is also home to companies that have its origins in the 21st century. We therefore see this not as a problem, but as a challenge. In addition, we don‘t have different market segments here in Switzerland like elsewhere: think, for example, of your indices such as the TecDAX, the SDAX, etc. in Germany, where attention is clearly directed and ﬁltered by index or segment afﬁliations. CEO Jan Luescher (lhs.) presents the functionalities of ASW to GoingPublic Magazine as Chairman of the Board Patrick Liotard-Vogt gives explanations – in March 2018 on the occasion of the dual listing in Frankfurt, Germany. Financing & Investment ASMALLWORLD (WKN A2JE3W) CHF 15,00 10,00 7,50 5,00 4,00 3,00 Stück 40.000 0 LOG (c) Tai-Pan Kurs:7,00 (0,34 / 5,11%) - SMA(38):64.771 Mrz Apr 20.03.2018 Mai Jun Jul 125 Kurse Aug Umsatz: 37.851 Sep 18.09.2018 Source: Tai-Pan ral, however, we are doing well. We are constantly developing our platform with our own team of developers. As a commu- nity, we consider the interaction between members to be far more important than just a product. This beneﬁt outlasts time. In addition, we also offer innovations on the product side, such as the new Signature and Prestige memberships. Such enhancements clearly go beyond the value of the community itself. That’s a good keyword: ASMALLWORLD frequently has such acquisition objects on its radar, so we talked about a com- munity operating in the luxury travel sector during the listing. What is the strategy here – and isn‘t it a hindrance when your own acquisition currency – the share – goes diving? Of course, this would not helpful because the share is a possible acquisition curren- cy. On the other hand, an acquisition usu- ally consists of various ﬁnancial instru- ments, not just shares. We therefore consider liquidity for the takeover you mentioned to be sufﬁcient anyway. In June, we had a cash position of CHF 9.4 million. And in this speciﬁc case, the share component and its value were already determined at that time, i.e. the price ﬂuc- tuations had no inﬂuence on the purchase price. Hope fully, the share price will also continue to develop positively so that we can work on further acquisitions. Mr Luescher, thank you very much for answering our questions at short notice! The interview was conducted by Falko Bozicevic. Almost immediately after the start of the trading in Germany, there was an investigation by BaFin – which is reﬂected in the price development, as one can easily see. What was it all about? BaFin had informed the market in April that an investigation had been set in motion. The focus was on stock market news letters that showed a fairly glossed-over perspective on our share. I would like to clarify that this investigation was directed against third parties and not against ASMALLWORLD. The investigation caused uncertainty among investors, resulting in the share price dropping considerably. We very much regret this, but our hands were tied. Despite legal efforts, neither BaFin nor the media involved provided us with infor mation about the client. It is, however, very gratifying that the investi- gation was concluded at the end of August and that this issue was thus brought to an end. What about membership development: How many paying members – to a real average membership price – does ASMALLWORLD need in order to operate proﬁtably? By our own estimation, ASMALLWORLD needs around 55,000 members in order to operate positively in the long term. We currently stand at around 33,000. How- ever, we are also in the middle of a growth phase. We therefore estimate that in ﬁscal year 2021 we will be at the point where we reach break even. Furthermore, the business model is very scalable, i.e. there is no need to hire additional personnel for addi- tional members, which can quickly make the model attractive. In addition, proﬁ- tability can of course also be achieved more quickly through acquisitions and development in other business areas or with services. The successful launch of our premium memberships in May, for example, should also be mentioned here. The question, of course, concerns what you have to promise to well-paying members so that they come or stay on board: the famous “added values.” Is it possible to win this race, which always costs money at ﬁrst hand? Members and consumers generally have increasingly higher expectations. in gene- Special “Capital Market Switzerland 2018“ 39

Financing & Investment Strong international Financial Centre with many Pools of Capital Issuer Survey among Swiss Companies Our Swiss neighbours could grow by more than 2% in terms of GDP this year. Investors can, above all else, count on a strong Swiss franc when investing in the Swiss capital market, because it is considered one of the classic “safe-haven c urrencies” whenever the world or the markets are troubled. When the Swiss franc gains in value, the investors beneﬁt. By Thomas Müncher S witzerland traditionally has a strong capital market, because access is more flexible and less strongly regulated than in EU countries. The Swiss Market Index (SMI) is consi- dered the most important stock market index in Switzerland. This blue-chip index consists of the 20 largest and most liquid stocks from the SPI (large- and mid-cap segment). Yet most investors are more interested in the broader Swiss Performance Index (SPI). Calculated and published by the SIX Swiss Exchange, nearly all Swiss stock corpo rations – currently 211 companies – are part of this index. Taking a look at domestic investors A lot of these investors choose a listing in their home country because of their own roots. “As a Swiss company, being listed on the domestic stock exchange goes without saying,” comments Dr Florian Dillinger, CEO of Matador Partners Group. Another frequently mentioned reason is that many stock corporations want to be Marcel Ziwica, CFO, Zur Rose Group AG GoingPublic: Why did you choose a listing in Switzerland? Ziwica: The following factors were decisive in our choice to be listed in Switzerland – ﬁrst: consistency with the headquarters of the company. Second: the brand recognition of Zur Rose in the Swiss domestic market. Third: before the IPO, the majority of our shareholders were Swiss private individuals. Fourth: easy access to Swiss retail investors. And ﬁfth: the special life-sciences focus of the largest Swiss market, the SIX Swiss Exchange. 40 Special “Capital Market Switzerland 2018” Marcel Ziwica m o c . e b o d a . k c o t s – t e u o R l . R © : o t o h P visible to, and open to review from, domestic investors. “This is also important for ﬁnancial reasons,” explains Dr Marcel Kucher, CFO of Peach Property Group. “Swiss investors have a better overview of locally listed companies, especially in real estate.” Another advantage: these compa- nies also usually receive more coverage from Swiss analysts. “A presence here can help with the issuing of bonds as well,” continues Kucher. “This is how we were able to generate additional funds of CHF 60 million for further growth in two weeks.” Last but not least, a domestic IPO is beneﬁcial with regards to investor rela- tions. “We value the offers and exchange

Financing & Investment clearly in order to attract attention. But even in Switzerland there are unique qualities that the neighbouring country can’t offer. “Especially with regard to the health sector, SIX demonstrates a com- paratively very high degree of speciali- sation,” says Weilenmann. “Companies beneﬁt from this because of the high visibility to investors and the media as well as the broad coverage through specialised research analysts.” Greater interest in private investors Another difference to competitors from Germany: the Swiss capital market is open for investments from the broader public. “That’s why the selection criteria for listed companies are so important,” explains Weilenmann. In the “smaller bonds” segment, Switzerland has distinguished itself clearly in the past few years from German bonds for small- and medium- sized enterprises (SMEs). Indeed, these Therese Wenger, Director Corporate Communica- tions, Sunrise Communications AG GoingPublic: What are the characteristics of Sunrise and why didn’t you choose an international stock exchange? Wenger: Sunrise is the largest non-state-controlled telecommuni- cations provider in Switzerland. The company owns one of the three mobile-telephony licences and conducts its business activi- ties exclusively in this country. This was the main reason for Sunrise‘s choice to go public in Switzerland. Therese Wenger we receive through SIX and our contact with investors on the Swiss capital market,” explains Marcel Ziwica, CFO of Zur Rose Group. self- regulating abilities and thus offers a market-friendly environment,” commends Louis Schmid, Head of Investor Relations at SwissCom. Advantages when compared to the German capital market The German capital market is, by its very nature, signiﬁcantly larger. The listed companies here must position themselves Growing economy, many investors Companies that go public in the Alpine republic also proﬁt from an attractive economic environment. “Switzerland is a leading ﬁnancial centre and magnet for international companies due to its highly competitive position and its political, economic and social stability,” notes Dr Rolf Weilenmann, Member of the Executive Board of the Helvetische Bank. “A globally networked economy and highly qualiﬁed employees also contri- bute to this.” Innovation and stability attract many ﬁnancially strong international investors and result in high placement power for banks. In addition, there are large pools of capital from roughly 500 banks and insurance agencies, as well as over 2,000 pension funds. “The regulatory obli- gations comply with strict international standards; due to the market-oriented environment, it is possible for issuers to raise capital more efﬁciently – both for small local companies and for larger international companies,” adds Weilen- mann. Many agree: “SIX has strong Marcel Kucher, CFO, Peach Property Group AG GoingPublic: What are the strengths of the Swiss capital market? Kucher: Many of our long-term investors are from Switzerland, and the investor base is broader overall. In Switzerland, we are represented by three bonds, which are also listed on the SIX Swiss Exchange, as well as by our shares. This is what I see as the biggest advantage of the Swiss stock market: within ﬁve days of submitting all of the required documents, we can list new bonds – this speed is highly beneﬁcial in that it allows us to seize upon purchasing opportunities at short notice or react ﬂexibly to changes on the capital market. Marcel Kucher Why is the German capital market important for you? Our second-largest shareholder, Kreissparkasse Biberach, is from Germany. Other than that, in 2017, we secured a syndicated loan of up to EUR 60 million from German savings banks and collective banks, and we were also present on the German capital market with a listed corporate bond of EUR 50 million. Special “Capital Market Switzerland 2018“ 41

Financing & Investment Louis Schmid, Head of Investor Relations, Swisscom AG GoingPublic: Why did you decide on an IPO in Switzerland? Schmid: Its local proximity, national and international importance, reliable trading conditions, high trading volume and membership of the blue-chip index SMI – these are the main reasons why the IPO of Swisscom was carried out on the SIX Swiss Exchange. We’re actually celebrating the 20-year anniversary of our IPO on the Swiss capital market this year. As one of the world’s most important trading centres, SIX is staying on track. Louis Schmid Dr Rolf Weilenmann, Member of the Executive Board, Helvetische Bank AG GoingPublic: How important is a strong Swiss franc for investors? Weilenmann: International investors traditionally see the Swiss franc as a safe haven, especially in times of turmoil. Because of this, quite a lot of funds ﬂow into the Swiss franc capital market, which in turn allows listed companies to borrow funds on very attractive terms. On the other hand, the strong Swiss franc has also made a substantial impact in the past few years on Swiss companies that have a high share of their costs in Switzerland but generate a lot of their revenues internationally. Many Swiss companies have adapted their cost structures due to this pressure on the margins and have relocated jobs abroad. Dr Rolf Weilenmann Strong currency doesn’t beneﬁt everyone However, the effects that the strong Swiss franc has on issuers are rather varied – it all really comes down to the markets in which sales are generated. “For us real estate investors with a focus on portfolio maintenance of residential properties in Germany, the vast majority of both revenues and costs are denominated in EUR,” states Kucher. A stronger or weaker Swiss franc would have almost no direct effect on the operating margin, but it would largely appear as a currency effect in their books, since Peach Property puts together its statement of ﬁnancial position in the domestic currency. “For us, tenant- oriented and effective property manage- ment and sustainable value enhancement of our properties play a much larger role,” emphasises Kucher. Summary Company tradition and the signiﬁcance of the domestic market are the main motives for a listing in Switzerland. The capital market there is also considered to be a safe haven in times of political or eco- nomic crises. Attractive location factors such as economic growth, political stability and lower tax rates contribute to this as well. Furthermore, the Swiss markets tend to operate more conservatively than those in other countries. Issuers are becoming increasingly critical of whether stronger regulation will actually bring more trans- parency and investor protection. How- ever, due to its political independence, Switzerland has a deﬁnite advantage here due to softening regulatory changes with a “Swiss ﬁnish.” This ensures that regula- tion is sufﬁciently goal-oriented. types of bonds are more and more in demand by Swiss companies, yet this area has experienced next to no losses com pared to the German capital market. “That’s why this segment conti- nues to enjoy a good reputation and is very receptive,” underlines Weilen- mann. Specialised in SMEs Issuers also appreciate another advantage of the Swiss ﬁnancial centre – the equity culture with regard to SMEs is very well developed. “The provision of equity for promising business models is enjoying a high level of acceptance,” states Antoine Millioud, CEO of aventron. However, a company with IPO plans should not only appeal to large institutional investors – it should also be open to private investors and smaller asset managers. 42 Special “Capital Market Switzerland 2018” Dr Florian Dillinger, CEO, Matador Partners Group AG GoingPublic: Is the Swiss capital market regulated too strongly? Dillinger: Regulation involves a great deal of effort. If it brings with it added value in the form of security for the shareholders or investor protection, we see it as justiﬁed and sensible. In this context, the question also arises as to whether the grey market should be abolished or at least regulated more strictly. Dr Florian Dillinger

Financing & Investment “The ICO has ushered in a new Era of Corporate Financing” Interview with Marc C. Riebe, CEO, eLocations The Swiss platform for brokering retail spaces eLocations has been running the presale for its ICO since the end of August – the actual crowdsale will begin at the end of the year. A total of EUR 50 million is to be collected; a dividend is in store for investors. We spoke with CEO Marc C. Riebe about the preference of an ICO over an IPO for start-ups, the newest blockchain developments, and how Switzerland is positioned internationally in terms of cryptocurrencies and the digitalisation of banking. With your eLOC coin, you are one of the ﬁrst on the market to issue security tokens. When you compare the two, what exactly distinguishes a security token from a utility token, and why did you choose security tokens? Generally, every country has its own deﬁnition of “security tokens” – since we are paying out dividends for each token, we are classiﬁed as security tokens in Switzerland because a dividend is seen as a promise of a return. The investor gets a kind of guarantee through our distribution, as they are equitably participating in the success of eLocations. With utility tokens, the token is used in the business model, which is supposed to lead to an increase of the ABOUT THE INTERVIEWEE Marc C. Riebe is a Swiss retail broker and CEO of eLocations. He brought brands such as Armani, Brunello Cucinelli, Chopard, Gucci, H&M, Louis Vuitton, Prada and Zara to European locations. He is also an author of the 1,000-page “Retail Market Study” that covers over 3,000 retail loca- tions in over 150 cities worldwide. m o c . e b o d a . k c o t s – e c i r r © : o t o h P GoingPublic: Mr Riebe, please give us a short summary of your business model and tell us to what extent blockchain technology plays a role in it. Riebe: eLocations creates a marketplace for commercial real estate listings. We are revolutionising the industry worldwide by providing a one-stop shop for commercial real estate in top locations and shopping centres. In addition to that, we are trans- ferring contract management for tenants and owners to smart contracts in the blockchain. The presale of your ICO, with which you plan to raise EUR 50 million, has been going on since the end of August – and the crowdsale will start at the end of the year. Why did you decide on an ICO? The ICO has ushered in a new era of corporate ﬁnancing. It’s ﬁnally possible for all investors to beneﬁt fairly and trans- parently from a start-up’s success – which was previously an insider privilege – regard- less of whether they have invested EUR 5,000 or EUR 5 million. Blockchain is replacing centralised structures with technology. What, for example, were some argu- ments against a classic IPO? A classic IPO, with its lengthy, cumber- some procedures and oligopoly, doesn’t belong in the world of digitalisation, and it’s also not suited to start-ups. 44 Special “Capital Market Switzerland 2018”

A classic IPO, with its lengthy, cumber some procedures and oligo- poly, doesn’t belong in the world of digitali- sation. token’s value. There are a lot of other factors at play here, though – making it much riskier to invest in a utility token. Do you see yourself as a trailblazer for more security tokens on the market? It takes courage to tread new paths. But that’s what we’re doing with our market- place for commercial real estate and location intelligence anyway. Other companies will follow in both areas once they see the success we’ve had with our model. What kind of investor structure do you expect to have with the ﬁnal token sale at the end of the year? It’s important to us that retail investors also have a chance, so we will establish an upper limit for amounts invested by those on our whitelist. The distribution of the tokens to numerous investors leads to stable price development, and everyone beneﬁts from this in the end. What role does Switzerland play in general when it comes to ICOs, crypto- currencies and blockchain? The compe- tition in Asia and the U.S. is pretty huge, after all. Switzerland is working on positioning itself excellently here. A lot of successful blockchain companies are moving to Zug and Zurich. Blockchain hubs like Trust Financing & Investment A lot of successful block- chain companies are moving to Zug and Zurich. Square, on Bahnhofstrasse in Zurich, are completely full, and Swiss cryptocurrency events in the current bear market are well attended. Of course things are going very well in Malta, Seoul and San Francisco, but I wouldn’t call that direct competition. It’s clear to everyone in the industry that we are building the digital world of the future together, and making it transparent. Mr Riebe, thank you for answering my questions. The interview was conducted by Robert Steininger. ADVERTISEMENT

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Service “Never stop questioning what‘s there if you aim to keep improving it” is the philosophy of hw.design, the owner-run design agency in Munich. The agency has supported companies in developing their brand identity and brand communication since 1995, with clients of all sizes from startups to DAX listings. hw.design adopts a strictly holistic view of strategy, design and content, creating powerfully appealing solutions that are the bedrock of distinctive brands and companies. With 500 prestigious awards, the company is among Germany‘s top ten design agencies. A team of 40 creative specialists covers the foremost areas of expertise through digital, print and space; working together to develop new ideas every day and use inspiration to move forward. Contact Frank Wagner Owner and Managing Partner Tel.: +49 89 20 25 75 0 frank.wagner@hwdesign.de Benjamin Klöck Managing Partner Tel.: +49 89 20 25 75 0 benjamin.kloeck@hwdesign.de hw.design gmbh Türkenstr. 55-57 80799 Munich www.hwdesign.de Read now! GoingPublic Magazin – E-Magazine ADVERTISEMENT Easy mobile access All Issues offline readable as well April 2017 – 12,50 EUR (D) – www.goingpublic.de Apr Pﬂ ichtblatt an allen deutschen Wertpapierbörsen Das Kapitalmarktmagazin GoingPublic Magazin Carve-outs und Spin-offs Papiertiger oder Trend? Designated Sponsoring Scale 20 Years after Ein Blick zurück und Meinungen und Gedanken aus Was vom Neuen Markt nach vorne der Financial Community geblieben ist April 2017 – 12,50 EUR (D) – www.goingpublic.de Apr Pﬂ ichtblatt an allen deutschen Wertpapierbörsen Das Kapitalmarktmagazin GoingPublic Magazin Carve-outs und Spin-offs Papiertiger oder Trend? Designated Sponsoring Scale 20 Years after Ein Blick zurück und Meinungen und Gedanken aus Was vom Neuen Markt nach vorne der Financial Community http://gp-mag.de/emagazine http://gp-mag.de geblieben ist Special “Capital Market Switzerland 2018“ 47

Service With more than 220 lawyers, Lenz & Staehelin is by some margin the largest Swiss law ﬁrm with ofﬁces in Zurich, Geneva and Lausanne. It has more than 100 years of experience in all areas of business law and an exceptionally strong international focus. Our clients include the largest domestic and international companies and groups, as well as international organizations and individuals in Switzerland and abroad. Contact Hans-Jakob Diem Partner, Head of Corporate and M&A and Co-Head of Capital Markets Tel: +41 58 450 80 00 hans-jakob.diem@lenzstaehelin.com Lenz & Staehelin is consistently ranked in the top tier by various professional rankings and is considered as an acknowledged market leader in Switzerland. Our clients are served by a dedicated team of highly-qualiﬁed and multi- lingual lawyers who understand their needs and requirements and are committed to delivering bespoke solutions in the highest possible quality. Lenz & Staehelin Brandschenkestrasse 24 CH -8027 Zurich Switzerland www.lenzstaehelin.com SIX operates and develops infrastructure services in the Securiti- es & Exchanges, Payments and Financial Information business units with the aim of raising efﬁciency, quality and innovative capacity across the entire value chain of the Swiss ﬁnancial center. The company is owned by its users (127 banks). With a workforce of some 4,000 employees and a presence in 23 countries, it generated operating income in excess of CHF 1.9 billion and Group net proﬁt of CHF 207.2 million in 2017. In the Securities & Exchanges business unit SIX offers its customers in Switzerland and around the world a comprehensive range of exchange services – listing, trading and post-trade solutions – from a single source. In doing so, SIX combines the dynamism of one of Europe‘s foremost stock exchanges with the stability and reliability of one of the most respected post-trade service providers in the industry. Contact Valeria Ceccarelli Head Primary Markets Tel. +41 58 399 2180 valeria.ceccarelli@six-group.com Patrick Förg Head Origination, Primary Markets Tel. +41 58 399 2153 patrick.foerg@six-group.com SIX Securities & Exchanges Pﬁngstweidstrasse 110 CH-8021 Zurich www.six-group.com 48 Special “Capital Market Switzerland 2018”

Service Company Index Page ASMALLWORLD .......................... 7, 38, 39 Blackstone Resources ............................. 7 CEVA Logistics ........................................ 7 Coltene .................................................. 34 Galenica .......................................... 34, 37 Helvetische Bank .................................. 42 Klingelnberg ................................. 3, 7, 12 LafargeHolcim ...................................... 31 Lalique .................................................... 7 LEM Holding ......................................... 37 Medartis .............................................. 6, 7 Nestlé .......................................... 6, 14, 34 Novartis ....................................... 6, 14, 34 ObsEva .............................................. 7, 21 Polyphor .................................................. 7 Saint-Gobain ......................................... 10 Sensirion ............................................. 6, 7 SIG Combibloc ........................................ 8 Sika ........................................................ 10 Stadler ..................................................... 8 Sunrise ................................................... 41 Swisscom ............................................... 42 Zur Rose Group ..................................... 40 Forecast GoingPublic Magazin Special „Kapitalmarkt Österreich“ (Publishing Date: 27/10/2018) Das Kapitalmarktmagazin Special Österreich 2018 – 12,50 EUR (D) – www.goingpublic.de Pﬂichtblatt an allen deutschen Wertpapierbörsen 2018 GoingPublic M a g a z i n Special Kapitalmarkt Österreich 8. Jg. (2018) Appetit auf Austro-Aktien Die Wiener Börse ist 2018 bei Investoren beliebt Gipfelstimmung am Kapitalmarkt Emittentenumfrage unter österreichischen Unternehmen Regulierungen ante portas Was haben MAR & Co. bislang gebracht? Imprint Volume 21, 2018, Sept. „Capital Market Switzerland 2018“ Publishing House: GoingPublic Media AG Hofmannstr. 7a, 81379 Munich Phone: +49 89 2000 339-0 Fax: +49 89 2000 339-39 E-Mail: info@goingpublic.de Internet: www.goingpublic.de Editorial: Svenja Liebig (project management), Falko Bozicevic (editor in chief), Picture Editing: Andreas Potthoff Photos: Fotolia, Adobe Stock Cover picture: © netsign, hpunkt_de, NextMars – stock.adobe.com Authors: Hans-Jakob Diem, Prof. Dr Chris- tian Hauser, Dr Christoph Heiz, Jacques Ifﬂand, Stefan Meyer, Linda Moers, Dr Wolfgang Müller, Thomas Müncher, Andrea Sieber, Dr Alexander Vogel Interviewees: Cédric Baumgartner, Dr Florian Dillinger, Patrick Förg, Marcel Kucher, Jan Luescher, Antoine Millioud, Marc C. Riebe, Louis Schmid, Marlen Schrader, Dr Rolf Weilenmann, Therese Wenger, Marcel Ziwica Proofreading: Magdalena Aderhold, Visavis Media, Benjamin Eder Translation: EnglishBusiness AG, Hamburg & Frankfurt Design: Andreas Potthoff Editor’s address: s. Publishing House, Fax: 089-2000339-39, E-Mail: redaktion@goingpublic.de Head of Capital Markets Media and Contact Advertising: Peter List, Tel.: +49 69 71033719 E-Mail: list@goingpublic.de price list no. 10 of November 1, 2006 Publication dates 2018: 17.2. (Februar/März 2018), 31.3. (April 2018), 28.4. (Special „Kapitalmarkt- recht“), 17.5. (Special „M&A Insurance“), 26.5. (Juni 2018), 28.7. (August 2018), 25.8. (Special „Geschäftsberichte & Trends“), 26.9. (Special „Kapitalmarkt Schweiz“), 17.10. (Special „Mitarbeiter- beteiligung“), 27.10. (Special „Kapital- markt Österreich“), 15.12. (Dezember 2018) Distribution: Retail Price 12,50 EUR, Plattform Life Sciences: 12,50 EUR, Special Issues 9.80 EUR, annual subscription 148 EUR, annual subscription abroad 148 EUR. All prices incl. Shipping costs and 7% VAT. Subscriptions: GoingPublic Media AG GoingPublic Subscription management Hofmannstr. 7a, 81379 Munich Phone: 089-2000339-0, Fax: -39 E-Mail: abo@goingpublic.de Printing: Druckerei Joh. Walch GmbH & Co KG, Augsburg Liability and references: Articles, recom- mendations and tables are based on sources which the editorial team deems reliable. No guarantee can be assumed for their accuracy, however. The editorial team reserves the right to edit and/or to decline the printing of articles which it receives unprompted. Potential conﬂicts of interest: Securiti- es of companies named in GoingPublic Magazine may be held by one or more employees of the editorial team and/or contributors at the time of the publi- cation. However, potential conﬂicts of interest are pointed out. Reprinting: © 2018 GoingPublic Media AG, Munich. All rights reserved, espe cially those pertaining to translation into foreign languages. The photo-mecha- nical duplication of this publication or parts thereof is not permitted without the written permission of GoingPublic Media AG. This also includes recording in electronic databases, the internet, and duplication on CD-ROM. ® Registered trademark at the German Patent and Trademark Ofﬁce (DPMA), reg. no. 398 15 475 GoingPublic Magazin is an ofﬁcial jour- nal at all German securities exchanges. ISSN 1435-3474, ZKZ 46103 50 Special “Capital Market Switzerland 2018”

magazine cover

Editorial

Content

Summiteers

“The Swiss Capital Market is very efficient and well positioned”

Playing it safe

View beyond the Rim of the Plate

“Investor Targeting is the Basis for strategic IR”

Influence of Corporate Compliance grows on the Capital Market

In Accordance with international Standards

Integration of Duty and Freestyle

“The English Language is an integral Part of Capital Market Communication”

Cash is King

“The Listing on the Stock Exchange increased Investor Awareness“

Strong international Financial Centre with many Pools of Capital

“The ICO has ushered in a new Era of Corporate Financing”

Partner Portraits

Company Index/Imprint