About Us

Dear Shareholders,


We are pleased to announce today a significant achievement: We have agreed with our team on the repurchase of the subordinated convertible bond. It is decided that this will be done at no additional charge for the early repurchase. Strong third quarter 2010 Our net income of $ 618 million In the third quarter of 2010, once again, our business has continued to show a low interest rate environment.The earnings per share were1.93CHF (1.80USD). Equity increased $ 2.4 billion to $ 29.9 billion in the third quarter of 2010. And the annualized return on equity was 9.5% in the third quarter of 2010.


Managers and CEOs of successful companies always have their financial situation in view. They should master the common instruments of financial management. This gives them the opportunity to strategically position their business for future development. We clarify the basics of corporate liquidity and financing.


Corporate liquidity: the cornerstone of entrepreneurial existence


Companies that want to be successful in the long term must be innovative. And innovations can only be established through solid financing. Many investors shy away from the associated risk – which is why equity is often required.


Debt or equity?


Innovation is indisputably a decisive competitive factor. Innovations secure growth, jobs and returns. Equity and debt capital are available to finance innovations. Which type of capital is preferable depends on the individual situation. In some situations borrowing is much more attractive and cost effective. The sole use of debt capital is not always optimal. Interest and principal payments are charged as installments: this burdens corporate liquidity, especially in the early stages of innovation development.


Corporate liquidity in everyday life


The liquidity of companies, especially freely available money, is essential. Companies need sufficient financial room for maneuver. Open invoices have to be paid immediately – otherwise subsequent deliveries may be excluded. Insolvency companies are at risk of insolvency despite economic growth. The financial scope has to be big enough, because many bill recipients take a lot of time by paying their outstanding bills. A solvency can be avoided by a liquidity cushion. Just because a company generates high profits, it is far from being liquid.




Continuous review necessary


Managers and CEOs of successful companies should be aware of ways to maintain their company’s liquidity and review options on an ongoing basis.




Invoice financing & factoring


Corporate liquidity is relatively easy to obtain. Financing new projects requires a high level of liquidity. That is why there are financial service providers that operate factoring. The entrepreneur assigns his outstanding invoices to a bank and receives the full amount immediately. The bank drives the open account in its own name and bears the associated insolvency risk. For the payment of the invoice amount before the due date, the bank charges a fee in the lower percentage amount of the invoice amount, starting from a height of 1%.