3. Conditional share capital

As of 31 December 2017, the company had the following conditional share capital:

• a. As of 31 December 2015 the conditional share capital amounted to CHF 342 475 (342 375 shares with a nominal value of CHF 1.00 each). On 18 February 2016, the right to convert a convertible bond was exercised to purchase shares. The capital increase amounted to CHF 40 540 (40 540 shares with a nominal value of CHF 1.00 each). As of 31 December 2016, the conditional capital thus amounted to CHF 301 935 (301 935 shares with a nominal value of CHF 1.00 each). On 18 May 2017, the Annual General Meeting authorized to increase the conditional share capital from CHF 301 935 to CHF 1 500 000 (1 500 000 shares with a nominal value of CHF 1.00 each) according to Article 3a of the Articles of Association. On 18 May 2017, the right to convert a convertible loan was exercised to purchase shares. The capital increase amounted to CHF 150 000 (150 000 shares with a nominal value of CHF 1.00 each). The exercise price was CHF 3.20 per share. As of 31 December 2017, the conditional share capital amounted to CHF 1 350 000 (1 350 000 shares with a nominal value of CHF 1.00 each).

• b. Additionally, according to Article 3b of the Articles of Association, the share capital of the company may be increased by the maximum amount of CHF 140 488 by the issuance of no more than 140 488 (2015: 140 488) registered shares that are to be fully paid in and have a nominal value of CHF 1.00 each; this increase being the result of the exercise of option rights that can be granted to employees of the company or of affiliated companies. In August 2016, a capital increase was effected by issuing employee shares. The capital increase amounted to CHF 93 850 (93 850 shares with a nominal value of CHF 1.00 each) at the exercise price of CHF 4.00 per share. As of 31 December 2016, the conditional share capital thus amounted to CHF 46 638 (46 638 shares with a nominal value per CHF 1.00 each). In the year 2017 no change took place.