SIX-Telekurs annual report 2003

TELEKURS GROUP PRODUCTS

MasterCard
VISA
Maestro
VISA Electron
CASH
MasterCard SecureCode
Verified by VISA

EFT/POS terminals
POS management system
Virtual terminal saferpay
Issuing processing
Acquiring processing

SIC
euroSIC
multiSIC
remoteGATE /swisseuroGATE
LSV/DTA
payGATEweb /payCOMweb
payROUTE

Market information
Securities administration information
Development & system integration

Housing, hosting
Application management
Disaster recovery
Output management
Capturing (scanning)
Electronic archiving

PayNet
BillingServices

TABLE OF CONTENTS

5
7
8
9
11

Chairman’s management report
Employee appreciation
Management Bodies of Telekurs Holding Ltd.
Changes
Telekurs Group at a glance

13
16
21
25
28
32

Telekurs Group activity report
Telekurs Multipay Ltd.
Telekurs Card Solutions Ltd.
Swiss Interbank Clearing Ltd.
PayNet (Schweiz) AG
Telekurs Financial Information Ltd.
Telekurs Services Ltd.

36
39
40
41
42
43
44
54

Consolidated financial statement 2003 Telekurs Group
Financial Result
Five-year overview
Statement of income
Balance sheet
Cash flow statement
Shareholder’s equity
Notes
Report of the group auditors

56
57
58
59
60

Annual Report 2003 Telekurs Holding Ltd.
Statement of income
Balance sheet
Notes and off-balance sheet transactions
Shareholder’s equity and proposed balance sheet profit allocation
Report of the statutory auditors

62
64
65
66

Group companies
Telekurs Group management bodies and organizations
Consolidated companies
Telekurs Group addresses
Publishing details

TELEKURS ANNUAL REPORT 2003
4 5

CHAIRMAN OF THE BOARD OF DIRECTORS AND THE EXECUTIVE COMMITTEE

The Chairman of the Board of Directors and the Executive Board of Telekurs Holding Ltd. (from left to right):
André Bamat, Ruedi Denier, Rolf Finschi, Stephan Zimmermann (Chairman of the Board of Directors), Walter Wirz (CEO),
Eugen Niesper, Felix Aeschlimann.

CHAIRMAN’S MANAGEMENT REPORT

DEAR SIR OR MADAM,
All in all, the Telekurs Group can look back on a successful year with satisfactory growth. It produced an operating result of 53.4 million francs in the year 2003, before
interest and taxes. While this result lies low that of
the previous year, it was achieved despite declining
demand in the financial information business and
considerable price reductions in our interbank services.
The extraordinary profit from the sale of the participation in Fininfo in France had a positive effect on the
consolidated financial result. It lies significantly
above that of the previous year at 67.5 million francs.

Telekurs Financial has developed and successfully
brought to market a new display product family with
Telekurs iD. This user-friendly display product visualizes
the unique linkage of master and corporate actions
data for financial instruments with current prices and
business news.

Numerous strategic projects and measures to boost
efficiency led to a further enhancement of competitive
strength. The most important event in the reporting
year was the acquisition of the VISA acquiring business
from the UBS Card Center at the beginning of June.
At the beginning of last year, the lacking dual-brand
offer and the poor economic situation led to sinking
transaction volumes and turnover in the MasterCard
business. The acquisition of the VISA acquiring business
has enabled us to meet the requirement of customers
for a credit card offer from a single source. At the same
time, the acquired volume of VISA transactions lead
to a turnover volume in the credit card business field per
year-end that far exceeded that of the previous year.

Numerous customers, both within Switzerland and
abroad, some of which are portrayed in this Annual
Report, profit from our high-quality products and services, and appreciate Telekurs as a reliable and secure
business partner. This would not be possible without
the daily commitment of around two thousand Telekurs
Group employees. I thank them and the members of
the various Telekurs committees for their commitment
as well as their personal contribution to the success
of our company.

A further important step was the successful merger
of the 3C-Gruppe with the Card Services division of the
former Payserv to form Telekurs Card Solutions.
Telekurs can thus now offer complete solutions for the
registration, transmission, processing and crediting
of card transactions from a single source.

In the reporting year, PayNet (Schweiz) successful won
over numerous banks, important billers and software
providers for Electronic Bill Presentment and Payment
and was thus able to further expand the PayNet network.

Stephan Zimmermann
Chairman of the Board of Directors

6 7

SPOTLIGHT ON THE CUSTOMERS

Spotlight on the customers
Many leading companies in Switzerland and abroad are customers of
the Telekurs Group. Their wishes and
needs are central to our efforts to offer
an array of high-quality and attractive
solutions. On the photographic pages
of this year’s Annual Report, we introduce some of our customers who use
Telekurs Group services on a daily
basis.

EMPLOYEE APPRECIATION

WILLINGNESS TO LEARN AND CHANGE
The Telekurs Group has constantly grown in recent
years and today has successfully compiled a product
portfolio that comprehensively covers customer
requirements in the areas of international ﬁnancial
information, the card business and in payment
systems thanks to successful product developments
and targeted acquisitions, among other things.

The year 2003 required a great deal of willingness to
learn and change from the employees of the Telekurs
Group. The majority of them now work in another group
company than in the previous year. Efﬁciency-boosting
measures also led to a certain reduction of jobs.
Supervisors and employees showed great flexibility
and team spirit in this challenging environment.

Reliability, security and professionalism distinguish
our company and thus also our group’s customer relations. The employees play a key role in this regard:
their constant will to implement these values directly
effects our success in the market. The latest IT systems
and infrastructure support them in the process.
The increasing complexity of the customer solutions
offered and the basic production processes place
ever greater requirements upon the human factor. The
value of motivated and willing employees is proven
in this highly technical working environment. Your personal commitment, your know-how and your creativity
are prerequisite to the development and operation
of our customer-oriented and market-driven products
and services.

In the name of the Telekurs Holding Ltd. Executive
Committee, I heartily thank all our employees for their
commitment to Telekurs Group.

Walter Wirz
CEO Telekurs Group

8 9

MANAGEMENT BODIES OF TELEKURS HOLDING LTD.

Board of Directors

Group auditors and statutory auditors

Members of Senior Management

Stephan Zimmermann
Chairman
Member of the Group Managing
Board of UBS Ltd., Zurich

Ernst & Young Ltd., Zurich

Daniel Bulgheroni
Head of Controlling

Executive Committee

Hans-Peter Königs
Corporate Security Ofﬁcer

Dr Romeo Lacher
Vice Chairman
Member of the Executive Board
of Credit Suisse, Zurich

Walter Wirz
CEO of the Telekurs Group

Arthur Bolliger
Chief Executive Ofﬁcer
Maerki Baumann & Co AG, Zurich
Dr Pierin Vincenz
Union of Swiss Raiffeisen Banks,
St. Gallen
Marcel Zoller
Member of the Executive Committee
Cantonal Bank of Saint Gall, St. Gallen

Felix Aeschlimann
CEO of Telekurs Card Solutions
André Bamat
CEO of Swiss Interbank Clearing
Ruedi Denier
CEO of Telekurs Multipay
Rolf Finschi
CEO of Telekurs Services
Eugen Niesper
CEO of Telekurs Financial

Ursula C. La Roche-Ender
Head of Finances & Controlling
Roger Niederer
Head of Financial Accounting
Mirko Thomas Oberholzer
Legal Service
Andreas Plüss
Head of Legal Service,
Board of Directors Secretary
Richard Walder
Head of Inspectorate
Bernhard Wenger
Head of Public Relations,
Media Spokesman
Status: 1 February 2004

CHANGES

Telekurs Group Boards of Directors

Telekurs Group Executive Committees

In the Telekurs Holding Board of Directors, Dr Romeo Lacher, Member of the
Executive Board of Credit Suisse,
replaces the departing Bruno B. Pfister
as Vice Chairman.

Telekurs Services has been managed
by an executive committee since 1 March
2003. Chief Executive Officer is Rolf
Finschi while Beat Christen, Rainer
Deutschmann, and since 1 January 2004,
Reto Camenisch, are Members of the
Executive Committee.

Departing the Board of Directors of
Telekurs Multipay (formerly Telekurs
Europay) are Germain Hennet,
Dr Klaus Spremann and Stephan Weigelt.
Dr Thomas Ankenbrand, Director of
RBA Central Bank is a new Member of
the Board.
Dr Ruedi Berger, Member of the Executive
Board of RBA-Holding, is a new
Member of the Board of Directors of
Telekurs Card Solutions.
Dr Thomas Ankenbrand has departed
the Board of Directors of Swiss Interbank
Clearing. Christian Bieri, Member of
the Executive Committee of RBA Central
Bank was elected as a new member.

Dr Jacques Bischoff, CEO of Telekurs
Multipay, left the company on 21 July
2003. Ruedi Denier has assumed the
position of Chief Executive Officer; Dôn
Nguyen-Quang has assumed a position
on the Executive Committee.

The Telekurs Holding Executive Committee
is comprised of the existing members
Walter Wirz (CEO), André Bamat, Eugen
Niesper as well as the new members
Felix Aeschlimann, Ruedi Denier and
Rolf Finschi.
Appreciation
The management of Telekurs Group
thanks the departing board members
and executive committee members
for their personal dedication and commitment to the group companies and
wishes them all the best and much success in the future.

Felix Aeschlimann joined the Executive
Committee of Telekurs Card Solutions
on 1 August 2003 and assumed the position of Chief Executive Officer. Walter
Wirz, who had provisionally held this
position, departed the committee at that
time. Dr Linus Bertsch, Ruedi Denier
and Ralph Oechslin are also Members of
the Executive Committee.


10 11 BUCHERER LTD., LUCERNE

Adelbert Bütler, CEO. “ The absence of cashless means of payment would be inconceivable today. We receive
many customers from abroad each day that pay with credit cards; this represents an important part of our turnover.
Credit card payments are a nearly irreplaceable payment option for our company.”

TELEKURS GROUP AT A GLANCE
Key figures (consolidated)

2003
CHF M

2002
CHF M

Change
CHF M

Operating income
Cash flow
Operating result before taxes and interest
Annual profit

726.8
88.7
53.4
67.5

704.3
93.1
67.6
52.6

22.5
–4.4
–14.2
14.9

Balance sheet total as of 31 December
Shareholders’ equity as of 31 December

832.2
320.3

930.7
433.6

–98.5
–113.3

Operating income (consolidated)

2003
CHF M

2002
CHF M

Change
CHF M

Card-based payment systems
Electronic payment systems
Financial information services
Other operating income
Total

406.4
44.9
240.1
35.4
726.8

365.3
46.7
258.9
33.4
704.3

41.1
–1.8
–18.8
2.0
22.5

31. 12. 2003

31. 12. 2002

Change

Telekurs Card Solutions Ltd.1, including subsidiaries
PayNet (Schweiz) AG
Foreign subsidiaries and Rolotec Ltd.
Telekurs Services Ltd.2
Telekurs Holding Ltd.
Total

162
454
54
20
361
425
528
48
2,052

140
508
56
20
365
398
540
48
2,075

22
–54
–2
0
–4
27
–12
0
–23

Annual average

2,070

2,081

–11

2003
CHF 1000

2002
CHF 1000

Change
CHF 1000

351
43

338
45

13
–2

Number of employees (weighted)

Operational details

Operational income per employee
Cash flow per employee
1
2

formerly 3C-Gruppe. On 01.01.03 the former Payserv Ltd. Card Services division was added to this group.
formerly Payserv Ltd. 0n 01.01.03 the Card Services division was split off.

12 13 VICTORIA-JUNGFRAU GRAND HOTEL & SPA, INTERLAKEN

Emanuel Berger, General Manager. “Over 40 % of our turnover is now generated through credit card payments,
which has the following advantages for us:
– rapid availability of the ﬁnancial means
– credit card conﬁrmation of the room reservation
– fewer losses
– simply, uncomplicated handling
We appreciate Telekurs Multipay Ltd. as a reliable partner. In comparison with foreign providers, we have determined
that Telekurs Multipay Ltd. is entirely competitive with its conditions and services.”

TELEKURS MULTIPAY LTD.

MAESTRO TURNOVER DEVELOPMENT 1
in CHF billions

15
13.5
12

12.8
12.0

10.5
10.8

9
7.5

9.4
8.6

6
4.5
3
1.5
0
99

00

01

02

03

1 Swiss cards in Switzerland (without ATM cash withdrawals)

STRONG MARKET POSITION
IS STRENGTHENED
Despite challenging economic conditions, Telekurs
Multipay recorded significant growth in the year 2003;
it was thus able to consolidate its leading market
position in the Swiss acquiring business. An essential
contribution to this growth resulted from the takeover of the VISA acquiring business from UBS Card
Center Ltd. as well a growth of nearly 10 percent in the
debit business.
In May 2003, Telekurs Europay was renamed to Telekurs
Multipay Ltd. in connection with the VISA license issuing, and as a consequence of the formation of a lean
marketing and sales organization. Since the beginning
of June 2003, in addition to MasterCard and Maestro,
the company now also offers VISA and VISA Electron.
Dual offer is realized
With the granting of the VISA license by VISA International as well as the takeover of the UBS Card Center Ltd.
VISA acquiring business, Telekurs Multipay was able
to realize its long-planned dual brand strategy. With its

range of acceptance contracts for both MasterCard
and VISA, it meets the requirements of its customers
for a dual credit card offer from a single source.
Credit card turnover increased
The newly acquired VISA transaction volume lead to a
turnover figure in the credit card business field in
the reporting year that is considerably higher than that
of the previous year. The number of transactions
processed by Telekurs Multipay in Switzerland thus
amounted to 53.5 million, with a total volume of
CHF 8.3 billion. This corresponds to an average transaction turnover of CHF 155.20. A total of CHF 6.4 billion
were turned over with Swiss credit cards (VISA and
MasterCard), while foreign cards (VISA and MasterCard)
contributed CHF 1.9 billion to the total volume.

14 15 TELEKURS MULTIPAY LTD.

MAESTRO POINTS OF ACCEPTANCE 1
in thousands

100
90
80
80.7

70

84.5

73.9
60
50

67.5
61.6

40
30
20
10
0
99

00

01

02

03

1 in Switzerland ( without ATM )

Secure paying on the Internet

CASH – a niche product

Telekurs Multipay offers the approved e-commerce
technologies, MasterCard SecureCode and Veriﬁed by
VISA. These worldwide standardized security solutions
protect the cardholder and online shop alike from
misuse, by a process in which a personal password –
equal to a signature – must be entered upon each
transaction.

Since the past year, the value card CASH has only been
managed as a niche product and is no longer being
supported in terms of advertising with large campaigns.
The number of transactions conducted with CASH
decreased in the reporting year by 5.4 percent, to
19.4 million.
Taking advantage of chances and challenges

Debit cards record continuous growth
Growth in the debit card sector continues to develop
very positively. Swiss ec/Maestro cards were used
in Switzerland and abroad for a total of 145.3 million
payments (+ 9.3 percent), with a total value of
CHF 13.1 billion (+ 7.6 percent). 115 million of these
transactions (+ 9.8 percent) were conducted in the
Swiss retail market and 28.5 million (+ 6.2 percent) were
conducted at automated refueling stations. The average turnover per debit card transaction in the retail market decreased to CHF 99 (– 3 percent).
New brands MasterCard and Maestro
In the year 2003, preparations were made for the
so-called brand switch for the EUROCARD and ec brands.
On 1 January 2004, the brand MasterCard/EUROCARD
was shortened to MasterCard on all newly issued Swiss
credit cards and the Swiss brand ec was replaced by
Maestro. Since last autumn, new debit cards no longer
bear the ec logo.

The progressing liberalization and internationalization
of the card business represent both chances and
challenges alike for Telekurs Multipay. Chances are presented by the fact that customers can now be acquired
internationally. However, challenges are presented
by the fact that the Swiss market is being subjected to
foreign competitive pressure from providers abroad.
Telekurs Multipay intends to meet this competition with
its dual brand offer and with the introduction of
service packages that offer customized products to its
customers.

KEY FIGURES 2003
2003

2002

Change
in percent

4.1

3.8

7.9

Turnover with Swiss Maestro cards (in CHF millions)
Retail Switzerland
ATM Switzerland 1
Turnover abroad
– generated through retail
– generated through ATMs

12,787
14,471
1,869
278
1,591

11,952
14,490
1,645
196
1,449

7.0
–0.1
13.6
41.8
9.8

Usage possibilities in Switzerland
Maestro points of acceptance
CASH points of acceptance
ATM (including postal banking machines)

84,500
34,500
5,300

80,600
33,500
5,200

4.8
3.0
1.9

Telekurs Multipay Ltd. credit card business

2003

2002

Change
in percent

Turnover with MasterCard and VISA 2 (in CHF millions)
Total volume
– generated with Swiss cards
– generated with foreign cards

8,354
6,441
1,913

6,779
5,504
1,275

23.2
17.0
50.0

104,400
45,100

98,900
–

5.6
–

Maestro system (in M)
Number of Swiss Maestro cards

Points of acceptance 2
MasterCard
VISA2
1
2

only withdrawals with clearing through the Telekurs Group
only Telekurs Multipay Ltd. Merchants, VISA since the beginning of June 2003

Acquiring
(merchant business, card acceptance at the point of sale)
Acquiring includes the contractual integration of points of acceptance,
such as stores, hotels, restaurants and refueling stations (referred
to collectively as “merchants”). Contracts are concluded between the
acquirer and the merchant, in which the merchant accepts the respective card as a means of payment, receives the turnover generated through
the card credited to him and in return pays the acquirer a commission.

Dual offer
(offering of two credit card brands through a card issuer or acquirer)
A dual brand strategy, or dual brand offer, refers to the issuing or
acquiring of two credit card brands – such as VISA and MasterCard, from
a single source. Dual brand issuing enables the card issuer to offer
customers (cardholders) both VISA and MasterCard for cashless paying.
Dual brand acquiring enables the acquirer to conclude contracts with
interested companies for the acceptance of both VISA and MasterCard.

16 17 TELEKURS CARD SOLUTIONS LTD.

CASH WITHDRAWALS AT CASH DISPENSERS
in millions

150
135
140
120

131
120.2

105
109.8
90

100.9

75
60
45
30
15
0
99

00

01

02

03

COMPLETE SOLUTIONS LEAD TO SUCCESS
Telekurs Card Solutions recorded positive development in the year 2003. A leading provider in the field
of technical processing of cashless payment transactions has come into being with the successful combination of the Card Services business unit of the
former Payserv Ltd. and 3C Holding into Telekurs Card
Solutions Ltd. The fusion brought with it numerous
synergies as well as an improved cost basis.
According to the motto “All from a single source”,
Telekurs Card Solutions offers an array of solutions for
card-based payment transactions and a wide range
of terminal products for accepting POS payments, plus
processing solutions for issuers and acquirers, as
well as other comprehensive evaluation and reconciliation services for merchants.

Transactions again on the increase
The use of credit cards and debit cards has again increased. The number of POS payment transactions
processed through Telekurs Card Solutions and withdrawals at cash dispensers increased in comparison
to the previous year by 20.7 million, to 347 million transactions (+ 6.3 percent). The POS and ATM systems
reached a new one-day record on 20 December 2003.
Over 1.5 million transactions were processed on this
day for the first time, specifically 1,004,476 POS payments and 563,494 ATM withdrawals. Moreover, the
processing system was distinguished by a high level of
reliability throughout the entire year.
Processing system certified by VISA
On 1 November 2003, Telekurs Card Solutions received
certification from VISA International for the processing
of VISA transactions at the point of sales (POS). The
stage-by-stage transfer of VISA transactions from UBS
Card Center Ltd. to the Telekurs Card Solutions system
will be completed by mid-2004, at the latest.

MAX BY VÖGELE SHOES, RAPPERSWIL

Silvia Capaul, Branch Manager. “High-fashion shoes for a preferential price-performance ratio – that is what we
offer our customers in the ‘Max by Vögele Shoes’ city stores. For us, part of a pleasant shopping atmosphere
is also the option of paying easily, quickly and securely so that spontaneous shoe purchases are possible at any
time. For this we count on the processing of credit cards and debit cards from our proven partner of many years,
Telekurs Card Solutions Ltd., which frees us from all concerns in the area of payment processing. An ideal partnership which creates the optimal environment for our customers.”

18 19 EFT/POS PAYMENTS AND CASH WITHDRAWALS AT CASH DISPENSERS (ATMS) IN SWITZERLAND
Transactions, all cards
in millions
EFT/ POS
Cash dispensers
Total
Number of transactions per minute through all systems

2003
Transactions

2002
Transactions

Change
in percent

207.5
139.6
347.1

195.5
131.0
326.5

6.1
6.6
6.3

660

621

Migrations carried out according to plan

New terminal generation is proven

In the Issuing Services business unit, the migration of
credit card issuing processing, i.e. the relocation of
the processing and the personnel resources proceeded
according to plan. The Swisscard card portfolio was
migrated in November 2003, resulting in a reduction of
the number of employees in this business unit by over
80 positions. The migration of the Viseca card portfolio
is planned for the end of August 2004.

In the Terminal business unit, Telekurs Card Solutions
is the first supplier of ep2-homologized terminals.
The payment terminals are EMV- and offline-capable.
The entire product palette will be converted to ep2,
from stand-alone solutions through multi-station systems, on to modular vending machine applications.

In another development, the banks approved the personalization of Maestro cards using the internationally
standardized EMV chip. Since September 2003, all
renewed and new Maestro cards have been equipped
with this chip. Approximately half the 4.1 million
Maestro cards had been converted at the end of 2003.
However, the conversion will not be completed before
the year 2005, due to the two- to three-year life span
of cards.

On 1 November 2003, the first single terminal in
Switzerland, a so-called monoblock with cash register
and customer terminal integrated in a single device,
was launched under the name EPSYS smash compact.
The ep2 standardization makes it an inexpensive
terminal for the processing of debit and credit cards.
Simultaneous with the launching of the EPSYS smash
compact device, the financial reconciliation portal topas
pms was activated.

TRANSACTIONS AT EFT/POS TERMINALS (INCL. REFUELING)
Transactions, all cards
in millions

2003

2002

2001

2000

1999

Debit cards
Credit cards
Value cards
Total

145.7
42.4
19.4
207.5

133.5
41.5
20.5
195.5

117.8
38.6
19.9
176.3

101.5
35.8
17.9
155.2

85.6
30
10.7
126.3

“saferpay” solution is in demand
With the Internet payment platform saferpay, the
E-Commerce business unit has a product that is very
successful, particularly in Germany. The product
saferpay was also able to gain increased footing within
Switzerland in the reporting year. Approximately
5,000 active clients were served in the year 2003,
making saferpay one of the most widely used Internet
payment platforms in Europe.
Competition increases
The liberalization of the card business also affects payment transaction processors. The international card
organizations are changing their rules to enable cross-

Cross-border acquiring
Acquiring business in which the acquirer and the merchant are active in
various countries.
EMV standard
Speciﬁcations for chip cards that were jointly developed by Eurocard,
MasterCard and VISA.
Issuing
(card issuing)
Issuing refers to the issuing of cards to cardholders to facilitate the
cashless purchasing of goods and services. The cardholder obligates
himself to pay a card fee and also to pay for the turnover generated
using the card. It is a contractual relationship between the card issuer
and the cardholder.

border offers, and are establishing international standards, such as EMV. This opens the Swiss market for
international providers, leading to increased competition.
Telekurs Card Solutions is well equipped for international
competition. It is continuously expanding its range
with innovative solutions. It already has high-capacity,
flexible platforms for the receipt, routing and accounting of electronic payments. This meets the multifaceted
functional requirements of internationally active companies seeking to handle their card-based payments
through a single processor.

20 21 FERRIER LULLIN & CIE SA, GENEVA

Rolf Leber, Head of Operations. “We have used euroSIC, the clearing and settlement system for euro, since 1999.
It enables the simple and inexpensive settlement of our euro payments. The integrated back-end organization model
is also a quality guarantee for us: Thanks to this automated process chain, we can execute bank transactions very
efﬁciently and with optimal risk control. The stability of the platforms used has been constantly increased and has
contributed to the greater availability of our operations team for customer support services.”

SWISS INTERBANK CLEARING LTD.

TRANSACTIONS IN SIC
in millions

200
190
193
180
170

177

160
161

150
150

140
130

142

120
110
100
99

00

01

02

03

SOLID-BASED INTERBANK BUSINESS
2003 was a positive business year for Swiss Interbank
Clearing. It was once again able to further extend
its position as a hub for interbank payment traffic. The
number of transactions made increased over the
previous year by 4.6 percent.
SIC, the Swiss interbank clearing system for Swiss francs,
is one of the world’s leading online payment transaction systems. It facilitates optimal cash management,
improved liquidity control and rapid handling of payments in the national currency for participating financial
institutions.
The number of payments also increased in the year 2003.
SIC processed a total of approximately 193 million
transactions, which amounts to an increase of 8.8 percent over the previous year. The system executed
an average of 767,000 payments each day with a daily
turnover of CHF 178 billion. At the end of 2003,
there were 323 financial institutions connected to SIC,
93 of which are located outside Switzerland.

euroSIC system transactions increased
euroSIC, the clearing system for euro payments in
Switzerland and across its borders, recorded an increase
in the number of transactions in the reporting year.
A total of over 2 million payments were processed,
788,000 of which were cross-border. Viewed over the
course of the entire year, this makes a daily average of
nearly 8,000 payments executed daily; the daily average
reached nearly 9,700 payments in December. Among
the 16 clearing systems connected to TARGET, euroSIC
ranks a significant sixth in terms of the number of
transactions. A total of 117 financial institutions were
connected to euroSIC at the end of December. euroSIC
is monitored and controlled by the SECB (Swiss Euro
Clearing Bank GmbH) in Frankfurt, which, among other
things, also manages swisseuroGATE, administers the
participants’ settlement accounts, undertakes liquidity
management and provides intraday or overnight credits
(www.secb.de).

22 23 SWISS INTERBANK CLEARING LTD.

TRANSACTIONS IN EUROSIC
in millions

2.0
2.0

1.8
1.6
1.6

1.4
1.2
1.0

1.1

0.8
0.8

0.6
0.4

0.5

0.2
0
99

Increasing interest in remoteGATE
remoteGATE enables financial institutions to connect
directly to the Swiss Interbank Clearing Ltd. RTGS system
via SWIFT. The number of financial institutions that have
decided to make use of this direct connection to SIC
and euroSIC increased from 26 to 43 in the reporting
year.
DTA/LSV with new services
Transactions decreased on whole in the DTA/LSV business field. They dropped by 6 percent in the DTA data
carrier exchange sector, to 63 million. The decrease can
be traced back to the increased substitution of DTA
by electronic banking and the banks’ decision to discontinue central DTA processing in its current form at

00

01

02

03

the end of 2005. As an option, Swiss Interbank Clearing
will also make the submission of DTA payments possible
beyond 2005. This meets the needs mainly of those
financial institutions that do not have their own e-banking interface. This new service, called payROUTE,
can be used by interested banks starting mid-2004.
In the LSV direct debit field, a slight increase of 2.3 percent to nearly 37 million transactions was recorded
in comparison to the previous year. Further progress was
made in the redesign of direct debiting in cooperation
with the financial institutions. The redesign should
encompass improved processes to reduce risks, the
optimization of procedures and the reduction of processing costs.

KEY FIGURES 2003
Transactions

SIC
Daily transaction volume
euroSIC
DTA
LSV

In mid-2003, the expensive EVA platform was replaced
with payGATEweb, which has already led to considerable
cost savings. The payCOMweb service was also successfully introduced to the market, offering an inexpensive
submission option for DTA and LSV customers.
One network for different services

2003

2002

Change
in percent

192,669,000
767,000
2,024,179
63,105,516
36,952,306

177,013,000
698,000
1,609,849
67,127,256
36,129,340

8.8
9.9
25.7
–6.0
2.3

Pressing ahead with standardization
In the area of standardization, IBAN and PI – the international standards for account numbering and for
an international payment slip, which enables the automatic and inexpensive processing of payments
(Straight Through Processing) – were updated and
further disseminated.

Finance IPNet, the TCP/IP network, has been in operation since the beginning of 2003. It networks financial
institutions with the Telekurs Group for services
such as SIC and euroSIC, as well as the submission and
delivery of LSV/DTA. All financial institutions will be
witched from the old TELOSnet network infrastructure to
Finance IPNet by the end of September 2004, at the latest.

RTGS
The term Real Time Gross Settlement refers to a clearing system with
irrevocable settlement of each individual payment without settlement of
a counterclaim (gross system).
Straight Through Processing (STP)
STP refers in the realm of payment traffic to the automatic processing
of payment transactions from the ordering party right through to the
beneficiary.

swisseuroGATE
swisseuroGATE is the interface between TARGET – the network of
15 national euro clearing systems in the EU – and Switzerland. Together
with the SECB Swiss Euro Clearing Bank, Swiss Interbank Clearing
creates a rapid and inexpensive connection between the EU countries’
RTGS systems and euroSIC, Switzerland’s euro RTGS system. With
swisseuroGATE, payments between the EU and Switzerland can be
processed easily, rapidly and inexpensively.
TARGET
Trans-European Automated Real-time Gross settlement Express Transfer
system: Interlink between the clearing systems of the EU member
countries for trans-European euro payments which connects the various
national clearing systems.

24 25 ELEKTRIZITÄTSWERKE DES KANTONS ZÜRICH (EKZ)

Katharina Brunner Faraji, in charge of e-communications. “With electronic billing via PayNet, we can offer our customers
an attractive and innovative service: No more paper, no bothersome ﬁling, no typing of long columns of ﬁgures.
PayNet supports us with their network just as we guarantee secure distribution of electricity in Canton Zurich with our
high-capacity network.”

PAYNET (SCHWEIZ) AG

PAYNET ACCEPTANCE INCREASES
For PayNet (Schweiz), the year 2003 was a year of
establishment. It managed to gain a foothold in three
areas vital for the dissemination of PayNet: in B2B,
in B2C and among the software producers.
PayNet (Schweiz) markets and operates PayNet, the
Electronic Bill Presentment and Payment system
(EBPP) within Switzerland. It thus enables individuals
and companies to conduct paperless and VAT-compatible billing management.
By mid-2004, a total of 12 banks will be connected to
the PayNet network, with a total of over 1 million Internet
banking customers. Sectors such as health and agrochemicals are represented in the B2B area. In addition,
various software publishers have agreed to support
PayNet interfaces.

Introduction prepared for Internet banking customers
In the B2C ﬁeld, preparation was made in the reporting
year for the introduction of PayNet for Internet banking customers. New contracts for participation in PayNet
were signed with the Zürcher Kantonalbank, Credit
Suisse and UBS Ltd., among others. Twelve banks, with
over 1 million Internet banking customers, have
agreed to participate in PayNet. The Zürcher Kantonalbank and the Hypothekarbank Lenzburg had already
productively introduced PayNet by the end of 2003 and
other banks will also do so by mid-2004.
An important prerequisite for winning over B2C billers
has thus been met. Major billers, such as Orange
Communications Ltd., Cornèr Bank Ltd., the “Elektrizitätswerk des Kantons Zürich” and Swisscom Mobile,
have been won over for PayNet. Additional large billers,
such as Swisscom Fixnet and Cablecome, have also
decided to connect to PayNet.

26 27 PAYNET (SCHWEIZ) AG

Exchange of experience established
The biller, PayNet and the payer’s bank must work
together to be able to present bills to the Internet customers electronically. Towards this end, PayNet
(Schweiz) AG founded the PayNet B2C Forum in June
last year in cooperation with SAP. Participating banks
and interested billers regularly meet there with SAP
and PayNet (Schweiz) to prepare the introduction of
PayNet. Procedures and marketing measures are
exchanged within this forum in addition to the sharing
of experiences.
Participation by important sectors

chemical sector, the company Syngenta Crop Protection Ltd., a major international company, has decided
to participate in PayNet.
Software producers support PayNet
An essential aspect for the introduction of PayNet is
support by providers of ERP systems. In addition to SAP
(R/3, BusinessOne), PayNet successfully gained other
important software producers, such as ABACUS Research
(AbaNet), Microsoft (BizTalk), Polynorm (i/2), SSA
Baan, Rotron (europa3000) and C-Channel (PayMaker
and BusinessMaker) and Microsoft Business Solutions.
PayNet will thus also be supported by solution
providers for small and mid-sized companies.

In the B2B field, PayNet (Schweiz) gained a foothold
in the health and agrochemical sectors. Won over
in the health sector were the Basel County Hospital as
well as the companies STRATEC Medical, Johnson &
Johnson, Globopharm and Globomedica. In the agro-

Consolidator
The core of an EBPP network receipt the biller’s invoices from all connected BSP’s (Biller Service Provider), sorts them by recipient and
then routes them to the corresponding CSP (Customer Service Provider)
for delivery to the bill recipient.
EBPP
Electronic Bill Presentment and Payment is term indicating the electronic
dispatch or presentation and electronic payment of bills.

DRESDNER BANK AG, FRANKFURT

Wulf Pallmer, Head of Market Information Services in the transactions and basic IT system of Dresdner Bank
(Switzerland) Ltd. “International partners need global ﬁnancial information. The comprehensive
data spectrum of Telekurs Financial provides the consulting bank with a decisive knowledge edge.”

28 29 TELEKURS FINANCIAL INFORMATION LTD.

TELEKURS ID – NEW DISPLAY
PRODUCTION GENERATION IS LAUNCHED
The year 2003 was very challenging for Telekurs Financial. The declining demand for financial information
and massive price pressures accordingly lead to lower
turnover. Nevertheless, Telekurs Financial managed
to further expand its market share despite the difficult
market situation.
The new display product generation, Telekurs iD, was
successfully launched in the past year. With it, Telekurs
Financial has made a standard platform available to
its customers, one that offers both more information and
expanded functionality. Telekurs iD is successively
replacing the existing display products FinXS, Finbase
and Finvest. The migration from FinXS and Finbase is
currently proceeding apace. The rollout of a further
version of Telekurs iD, intended to replace the Finvest
populations, is in preparation.
Valordata Feed is the first choice for STP
All national and international customers were migrated
from the former distribution concept Valordata System
VDS to the Valordata Feed VDF in the course of the year.

Its depth of data and high level of structuring highly
suits the VDF for the implementation of Straight Through
Processing applications in the back-office sector.
Additional emphasis was placed on expanding system
availability. This was achieved through an increase
in the number of servers and an improvement of distribution platform capacity. Telekurs Financial will now
offer daily multiple deliveries of securities data. VDF
customers have the choice of receiving master data
updates once or three times daily. Progress was also
made on the introduction of the ISO 15022 standards,
a format for the distribution of corporate actions
messages.
Data range expanded
Telekurs Financial also continuously expanded its data
range in the reporting year. The most important innovation in this regard was the introduction of Dow Jones
News in Telekurs iD.

NUMBER OF FINANCIAL INSTRUMENTS

NUMBER OF PRICE TELEGRAMS

in millions

in billions

2.0

20

1.8

1.90
1.79

1.6

19.8

18
16

1.64

1.4
1.2

1.80

17.5

14
14.4

12

1.36

1.0

10

0.8

8

0.6

6

0.4

4

0.2

13.2

2

0

9.8

0
99

00

01

02

03

The composition of indices is displayed in detail in the
index area. This also enables the simple and clear
call-up of additional information about the individual
indices as well as their weighted composition.
Bond markets coverage was essentially increased. In
addition to NASDAQ bond data, Telekurs Financial now
offers bond data from Mexico, Brazil, Argentina and
South Africa. In the bond area, coverage was improved
with key data (such as accrued interest and duration).
With fair values for rarely traded European bonds and
the introduction of average earnings, Telekurs Financial
supplies an expanded offer for financial specialists,
including calculated values.
The coverage of funds data from France, Canada and
the Scandinavian countries has been considerable
improved. Master data for funds was also expanded
and refined. This provides customers of Telekurs Financial products with expanded information about the
composition of funds.

99

00

01

02

03

New services in the regulations sector
The banking center Switzerland must introduce new
regulations in connection with Basel II, the money
laundering law and the EU paying agent tax. Telekurs
Financial supports the banks with various projects
by providing third-party data that is relevant to these
regulations.
Expansion of international services
Additional measures were taken to increase proximity
to customers internationally, to ensure the quality
of data delivered by Telekurs Financial and to introduce
other improvements. The attractiveness of the products was also increased by additional key data calculations, including the calculation of the accumulated
interest on all fixed-interest securities and generation
of the CFI codes on all instruments.
On 1 January 2003, a new branch office of Telekurs
(U.K.) Ltd. was opened in Dublin under the name
Telekurs Financial (Ireland Branch). It will help support

30 31 KEY FIGURES 2003
Number of financial instruments (December 2003)
Bonds
Equities
Hybrids
Options/Futures
Trust Units
Warrants
Other
Total
Display applications (without public Internet)
Processing and customized solutions
Data Sources
Price sources (active)
New agencies

2003
585,000
322,000
70,000
498,000
182,000
144,000
99,000
1,900,000
40,099 terminals*
846 customers**

595
15

* Telekurs’ own software
** Telekurs data in third-party software/display products

the steadily growing funds business in Ireland with
Telekurs services.
The newly founded Telekurs (France) SAS commenced
operations on 1 October 2003. The 16-head team
supplies real-time information and securities data
from France, Monaco and French-speaking Africa
to the Telekurs Financial central database in Zurich.
The French office also commenced sales activities
on 1 January 2004.
Worldwide partnerships
In addition to founding its own company in France, the
Telekurs Group sold a minority participation in Fininfo,
the French financial information provider.

Telekurs iD
Telekurs iD stands for intelligent Display, which is the new product
generation from Telekurs Financial that combines the existing display
products into a uniform product. The name indicates that Telekurs iD
intelligently supports the user and is also a reminder of the old Telekurs
INVESTDATA system, thus covering the needs of two generations of
financial market specialists in a uniform product.

The partnership established two years ago with the
Danish securities clearing central VP Denmark (Værdipapircentralen A/S) has been expanded. VP Denmark
took over operation of the Valordata Feed VDF for the
entire Northern area at the beginning of 2004.
Telekurs Japan expanded its multiyear cooperation with
the Nomura Research Institute (NRI). Nomura was
previously a revendor for corporate actions data in the
Japanese market. This partnership will now be extended to the distribution of valuation prices through
T-STAR21, NRI’s leading application for investment
trust funds in the back-office.
European bond pricing, developed in partnership with
Standard & Poor’s, has appealed to a wide customer
basis, particularly in Europe. The product delivers calculated values for illiquid bonds.

ISO15022/MT564
Message type 564 within the ISO 15022 standard is called “corporate
action notification”. With this message type, a party (e.g. a portfolio
manager) provides information about a specific action in the cash flow
or corporate action field of another party (e.g. a central securities
depository). At the beginning of an MT564, is a “Corporate Action Indicator” field that describes the actual event type.

NOMURA RESEARCH INSTITUTE, TOKYO

Hiromichi Minami, General Manager, Investment Information Services Business Department. “Data quality and
reliable delivery are key elements for evaluation prices. We are pleased to have Telekurs data be accessible to our
T-STAR customers involved in investment trust management business.”

32 33 TELEKURS SERVICES LTD.

SECURITY AND AVAILABILITY
Technical innovations ensured the high quality of
services provided by Telekurs Services in a reporting
year dedicated to the boosting of efficiency.
The Logistics business unit of the former Payserv Ltd.
was formed into a company under the name Telekurs
Services Ltd. on 1 January 2003. As a service provider,
it operates systems and applications for the Telekurs
Group that meet the highest requirements in terms of
security and availability.
IT Services are undergoing expansion
Availability of the IT system remained constantly at the
highest level in the reporting year – despite considerably increased transaction volumes, more complex
requirements and enlarged technical facilities.

The IT Services business unit also ensured the quality
of its services through innovations in system efficiency.
The Storage Area Networks technology (SAN) was enhanced through positive experiences in terms of operational efficiency and increased customer demand. In
the area of the forward-looking, inexpensive open source
operating system Linux, a first productive application
was introduced on the new IBM mainframe generation.
Moreover, the increased availability requirements of
internal and external customers lead to a considerable
expansion of the back-up computer center. Finally,
all Telekurs Group workstations were converted to
Windows XP.
Emphasis in the coming year will be placed on
renovation of the mainframe equipment and system
standardization.

NUMBER OF SERVER SYSTEMS

MAINFRAME CAPACITY

Servers

in millions of instructions per second ( MIPS)

700

2,500

630
659
560

2,495

2,250
2,290

2,000
580

490

1,750
516

420
350

1,500

460

1,670

1,770

1,250 1,500

412

280

1,000

210

750

140

500

70

250

0

0
99

00

01

02

03

99

00

01

02

03

Modular offer for customers

Clever system for document circulation

The services offered by Telekurs Services are based on
the comprehensive IT knowledge of the company’s
staff and on the first-class infrastructure with one of the
most modern computer centers in Switzerland. The
computers are structured modularly to meet individual
and evolving customer needs. In this regard, Telekurs
Services shall assume operation of the bank application
avaloq for Bank Linth as an Application Service
Provider (ASP).

The Document Services business unit has a high-capacity printing and packaging center. This modern equipment facility and the certified management system based
on ISO 9001:2000 standards guarantees high-quality
job execution.
Individually matched mass dispatches were processed
through the DATA-TO-DOCUMENT service area. Over
48 million envelopes and 130 million printed pages were
processed in the form of complex invoice mailings and
customer loyalty programs in the reporting year alone
for large companies in the retail and telecom sector, as
well as for financial institutions. Document Services
was the first printing and packaging center in Switzerland to introduce an electronic dispatch control to
ensure gapless and error-free processing.

34 35 KEY FIGURES 2003
2003

Mainframe capacity in MIPS (in millions of instructions per second)
Number of server systems
Number of mailings (in millions)
Number of printed pages (in millions)

DOCUMENT-TO-DATA takes on the labor-intensive entering of data. Based on a clever system, the processing
of over 4.2 million documents, such as orders, inquiries
and registrations was efficiently carried out in the year
2003. Moreover, a new processing infrastructure commenced operation for the production and administration of over 1.8 million subscriptions and member cards
in credit card format, including photographs.
The information is archived in the form of electronic
documents, sent per e-mail and presented over the Internet through the DATA-TO-DATA service. The customer
can also make use of each of these services individually. The archiving platform manages over 233 million
documents, such as lists and images with a total of
1.8 billion pages. Over 60,000 documents have already
been supplied since September 2003 through the
new Electronic Document Delivery (EDD) platform.

2002

Change
in percent

2,495
659
48
130

2,290
580
49
122

9
14
–2
7

Services for the Telekurs Group
The Corporate Services business unit assumes important central functions for the entire Telekurs Group
with Facility Services, Human Resources Management,
Procurement Services and Management Services.
Office usage density was increased in the reporting
year in Telekurs’ own buildings. This enables Telekurs
to vacate rental properties. In the energy sector, the
former monitoring and control systems of the operational-critical energy supply facilities were replaced
after a 12-year pilot operation phase. Telekurs Services
has also set the goal of further boosting energy efficiency by joining the “Zurich Energy Model”. The cost
and billing transparency of IT services was increased
within the scope of the IRRIS project.

ORANGE COMMUNICATIONS SA, LAUSANNE

Andreas S. Wetter, CEO. “The steady growth and increasing market pressure required a ﬂexible partner with great
capacities for the printing and dispatching of invoices. With Telekurs Services, we have found a provider in
which the quality, reliability and transparency for the billing of end customers are just right, even for growing
requirements.”

36 37 CONSOLIDATED FINANCIAL STATEMENT 2003 TELEKURS GROUP

FINANCIAL RESULT
Operating income
Net revenues from goods and services
by business area

2003
CHF M

2002
CHF M

Change
CHF M

Card-based Payment Systems
Electronic Payment Systems
Financial Information Services
Other operating revenue
Total

406.4
44.9
240.1
35.4
726.8

365.3
46.7
258.9
33.4
704.3

41.1
–1.8
–18.8
2.0
22.5

629.7
83.3
13.8
726.8

610.1
79.1
15.1
704.3

19.6
4.2
–1.3
22.5

Net revenues from goods and services
according to geographic market
Switzerland
Europe excluding Switzerland
Other regions
Total

Earnings in the reporting year were primarily influenced
by the takeover of the UBS Card Center Ltd. VISA
acquiring business as well by the fact that a full year
of revenue generated by the former 3C-Gruppe, purchased on 1 July 2002, has been listed in the company
financial statement for the first time. In the business
areas Card-based Payment Systems and Electronic
Payment System, price reductions, which in some cases
were considerable, could be compensated by satisfactory increases in volume. In view of developments in
the banking sector, the Financial Information Services
business area continued to move within what remains
a highly challenging market environment and was
unable to maintain the earnings level of the previous
year. On the group level there was an overall earnings
increase of CHF 22.5 million or 3.2 %.
The Card-based Payment Systems business area includes
the acquiring business as well as the processing of
credit card and debit card transactions. Earnings in this
business area increased in the reporting year by
CHF 41.1 million or 11.3 %. Transaction volume and turnover for the product MasterCard decreased in the

reporting year. However, with the takeover of the VISA
acquiring business, the long-planned dual-brand
strategy was realized, thereby meeting customer requirements for a dual credit card offer from a single source.
The newly acquired VISA transaction volume, along with
an also increasing number of debit card transactions,
led to considerably higher earnings, despite decreasing
commission rates and lower transaction turnover.
Various special projects in the processing business also
contributed to the positive development of earnings.
The Electronic Payment System business area includes
the processing of interbank payments and DTA/LSV
transactions. The slight decrease in turnover from
CHF 1.8 million or 3.9 % can be traced specifically to the
strongly discounted transaction prices. With the exception of data carrier exchange, the processing volume
of which decreased as result of the wholly intentional
substitution by electronic banking solutions, considerable volume increases were registered for all products.

In the Financial Information Services business area,
decreasing demand and massive price pressure led to
a drop in turnover of CHF 18.8 million or 7.3 %. This
particularly affected the display products in Switzerland.
In contrast, turnover in the securities data information
field increased in comparison to the previous year. The
foreign subsidiaries managed to maintain the turnover
levels of the previous year or even exceed them, with
the exception of Japan and Germany.

Other operating revenues increased by CHF 2 million
or 6 %. Increased revenues were primarily generated by
the archiving of customer data, the computer center
and communication services, as well as application
management.
Turnover by geographic region continues to clearly show
the Group’s strong home base in the Swiss market,
which has been further strengthened by the acquisitions
made.

Operating expenses

2003
CHF M

2002
CHF M

Change
CHF M

Personnel expenses
Other operating expenses without depreciation
and amortisation
Depreciation and amortisation
Total

294.5

291.5

3.0

331.2
47.7
673.4

299.2
46.0
636.7

32.0
1.7
36.7

The slight increase in personnel expenses is largely
attributable to an increase in the number of employees
due to the takeover of the VISA acquiring business in
the course of the reporting year as well as the expenses
generated by the former 3C-Gruppe, figuring for the
first time in the group financial statement for the entire
year. In addition, establishment of the subsidiary in
the Paris advanced powerfully in the reporting year.
Otherwise, considerable measures to increase efficiency
were realized in the course of the year, through which
personnel expenses, expressed as a percentage, were
reduced from 41.4 % to 40.5 % of operating revenue.
The increase in other operating expenses is solely the

result of the higher interchange rates paid to the banks
in the credit card business. This was caused by the
business volume expansion due to the acquisition of
the VISA business, as well as by the higher interchange
rate in comparison to the previous year.
Among the other expense items, essential cost reductions were achieved, specifically in transmissions,
information procurement and the acquisition of hardware and software, in part as a result of exchange
rates. Approximately 25 % in savings were achieved in
advertising costs in the reporting year despite acquisitions made.


Financial year results / Return on equity / Result per share

Operating income
Operating expenses
Operating result before interest and taxes
Financial result (net)
Extraordinary items (net)
Taxes
Minority interests
Telekurs Group result for the year
Average equity capital
Return on equity (average equity)
Earnings per share (90,000 units) in CHF

The decrease in the operating result before interest and
taxes is primarily attributable to the above-mentioned
developments in income and expenses.
The net ﬁnancial result decreased as a result of the lower
amount of ﬁnancial means available for investment
(due to the purchase of the VISA acquiring business)

2003
CHF M

2002
CHF M

Change
CHF M

726.8
–673.4
53.4
2.9
24.0
–11.8
–1.0
67.5

704.3
–636.7
67.6
4.4
0.8
–19.8
–0.4
52.6

22.5
–36.7
–14.2
–1.5
23.2
8.0
–0.6
14.9

376.9
18
750

432.6
12
584

–55.7
6
166

as well as the fall in money market rates. Extraordinary
income is largely the result of capital gains realized on
the sale of the Fininfo stake. The increase in the return
on equity was essentially caused by the recognition
of goodwill from the purchase of the VISA acquiring
business in equity.

FIVE-YEAR OVERVIEW
Income statement

2003
CHF M

2002
CHF M

2001
CHF M

2000
CHF M

1999
CHF M

Other operating income
Total operating income

406.4
44.9
240.1
35.4
726.8

365.3
46.7
258.9
33.4
704.3

357.0
49.1
265.3
31.5
702.9

346.6
56.4
252.8
27.7
683.5

400.1
57.6
243.2
17.0
717.9

Personnel expenses
Other operating expenses
Total operating expenses

294.5
378.9
673.4

291.5
345.2
636.7

302.3
346.1
648.4

293.1
336.7
629.8

271.3
343.6
614.9

53.4

67.6

54.5

53.7

103.0

Financial result (net)
Extraordinary items (net)
Taxes
Minority interests
Result for the year

2.9
24.0
–11.8
–1.0
67.5

4.4
0.8
–19.8
–0.4
52.6

10.4
–0.9
–12.1
–0.3
51.6

4.8
146.5
–50.5
–0.2
154.3

–9.5
–23.9
–17.0
–0.1
52.5

Balance sheet
on 31 December
Current assets
Tangible assets
Financial assets
Intangible assets
Total assets

2003
CHF M
633.9
170.6
27.7
0.0
832.2

2002
CHF M
703.1
190.2
30.7
6.7
930.7

2001
CHF M
835.6
194.2
30.6
0.0
1,060.4

2000
CHF M
797.5
201.5
30.5
0.3
1,029.8

1999
CHF M
716.0
266.3
28.5
0.5
1,011.3

Outside capital
Minority stakes
Shareholders’ equity
Total liabilities

507.6
4.3
320.3
832.2

492.3
4.8
433.6
930.7

628.3
0.6
431.5
1,060.4

604.3
0.1
425.4
1,029.8

723.0
0.1
288.2
1,011.3

Number of employees on 31 December

2,052

2,075

1,946

1,868

1,815



STATEMENT OF INCOME
Note

Other operating revenue
Total operating income
Commodities expenses
Personnel expenses
Transmission expenses
Information procurement
Hardware and software expenses
Advertising expenses
Facilities expenses
Depreciation and amortization
Total operating expenses

3
4

Financial result
Result from valuation according to equity method
Neutral and extraordinary income
Neutral and extraordinary expenses

5
6
7
7

Annual result before taxes and minority interests
Taxes
Annual result before minority interests
Minority interests
Result for the year

8

Change
in %

406,367
44,928
240,139
35,362
726,796

365,330
46,667
258,883
33,392
704,272

11
–4
–7
6
3

16,736
294,545
26,653
33,089
29,881
13,724
11,727
199,338
47,666
673,359

9,775
291,546
29,271
35,031
32,927
18,282
10,717
163,156
46,007
636,712

71
1
–9
–6
–9
–25
9
22
4
6

67,560

–21

2,544
400
33,471
–9,549

4,327
44
13,511
–12,663

80,303

2

2002
CHF 1000

53,437

1

2003
CHF 1000

72,779

–11,769

–19,802

68,534

52,977

–990

–376

67,544

52,601

10

29

28

BALANCE SHEET
Assets

Note

31. 12. 2003
CHF 1000

31. 12. 2002
CHF 1000

Cash and cash equivalents
Trade accounts receivable
Stock and work in progress
Other claims
Accrued and deferred items
Total current assets

9
10
11
12

219,169
142,905
6,533
252,911
12,366
633,884

333,344
173,969
4,675
179,659
11,462
703,109

Fixed assets
Financial investments
Participations
Securities
Treasury shares
Intangible assets
Total non-current assets

13

170,641

190,205

14
15

4,195
1,345
22,152
0
198,333

3,795
4,859
22,039
6,713
227,611

832,217

930,720

181
221,512
49,753
131,264
89,444
492,154

97
153,956
65,558
158,066
99,092
476,769

185
15,252
15,437

122
15,425
15,547

507,591

492,316

4,312

4,821

Share capital
Reserves for treasury shares
Share premium
Retained earnings
Total shareholders’ equity

45,000
22,152
15,000
238,162
320,314

45,000
22,039
15,000
351,544
433,583

Total liabilities

832,217

930,720

16

Total assets
Liabilities
Short-term bank debts
Trade accounts payable
Other short-term liabilities
Accrued liabilities
Short-term provisions
Total short-term liabilities
Long-term commitments
Long-term provisions
Total long-term liabilities
Total liabilities
Minority participations

17
18
19

19


CASH FLOW STATEMENT
Note

Profit for the financial year
Minority participations
Depreciation and amortisation
Profit from sale of tangible assets
Change in long-term provisions
Profit from sale of participations/financial investments
Profit from valuation according to the equity method
Cash flow

Investments in tangible assets
Disposal of tangible assets
Acquisitons, net of cash and cash equivalents
Sale of participations
Investments in intangible assets
Cash flow from investment activities

13

Redemptions of bank loans
Repurchase of treasury shares
Dividend payments to shareholders in Telekurs Holding
Divident payments to minority shareholders
Cash flow from financing activities
Exchange rate differences
Total inflow (+)/outflow (–) in cash and cash equivalents
Position on 1 January
Position on 31 December
Change in cash and cash equivalents

9
9

155,127
–317
596
–174,986
17,996
–1,584
91,519

–23,230
1,627
0
29,995
–135,000
–126,608

–29,933
1,048
–16,362
10,000
–370
–35,617
–204
–62
–44,647
–250
–45,163

–1,582
–114,175

Cash flow from operations

52,601
376
46,007
1,133
1,777
–8,747
–44
93,103

84
–113
–44,646
–250
–44,925

Accounts receivable
Stock and work in progress
Accruals and other assets
Liabilities
Accrued liabilities and short-term provisions
Change in non-cash net current assets

67,544
990
47,666
276
–106
–27,231
–400
88,739

58,940

7

2002
CHF 1000

–41,752
–1,858
–1,027
51,624
–36,786
–29,799

4

2003
CHF 1000

–5,116
5,623

333,344
219,169
–114,175

327,721
333,344
5,623

SHAREHOLDER’S EQUITY
Equity

Position as of 1 January 2003
Dividend
Result for the year
Repurchase of treasury shares
Recognition of goodwill
Correction for minority shares
Change in exchange rates
Position on 31 December 2003

Share
premium

Earnings
reserve

Total
equity

CHF 1000

Reserve
treasury
shares
CHF 1000

CHF 1000

CHF 1000

CHF 1000

45,000

22,039

15,000

351,544
–44,646
67,544
–113
–135,000
500
–1,667
238,162

433,583
–44,646
67,544
0
–135,000
500
–1,667
320,314

113

45,000

The share capital is comprised of 90,000 registered
shares with a par value of CHF 500 each. Among these
are 8,824 nominal shares (previous year 8,824 nominal shares) with a value of CHF 22.2 million (previous
year CHF 22.0 million), which are held by the Group.
A total of 25 shares was repurchased in the reporting
year at a price of CHF 4,519.80 per share.
The Telekurs Group changed its accounting method for
goodwill in the reporting year. In former years, goodwill
was deferred and amortized linearly over its expected
useful life; in exercise of the options under Swiss GAAP
ARR 9, it now is recorded directly in equity at the ﬁrst
consolidation. In a hypothetical deferral, goodwill to
the amount of CHF 127.1 million would be recognized
in the consolidated balance sheet, while equity would

22,152

15,000

increase by the same amount, thus necessarily decreasing the group result by CHF 7.9 million through the
pro-rata goodwill amortization over 10 years. Since the
change in the accounting method is not enacted
retroactively, such a hypothetical deferral would have
no impact on the previous year’s statements.
In the previous year, a 25 % stake in Swiss Interbank
Clearing Ltd. has been sold. According to the purchase
contract, the dividend for the business year 2002
(paid in the year 2003) is to be paid entirely to Telekurs
Holding Ltd. This cash flow has only partially been
considered in the calculation of the minority shares as
of 31 December 2002.


NOTES
Accounting principles
The consolidated annual financial statement is based
on the individual financial statements of the group
companies as of 31 December 2003 and established
according to standard principles.
Telekurs Group accounting follows the Swiss GAAP ARR
(Accounting and Reporting Recommendations) and
accurately reflects the Group’s position regarding assets,
finance and income.
Consolidation principles
The Telekurs Group consolidated financial statement
includes the individual financial statements of all Group
companies in which Telekurs Holding Ltd. directly or
indirectly holds more than 50 % of the voting rights. The
companies included in the scope of consolidation are
listed on page 64.
Assets and liabilities as well as expenses and income of
the consolidated companies are recognized in full
(100 %). The minority shareholders’ stake in equity and
net result are recorded separately in the consolidated
balance sheet as well as the statement of income.
Equity is consolidated according to the purchase method.
The net assets of companies acquired are revaluated at
the time of purchase according to group standard guidelines and accounted with the purchase costs of the
participation. The remaining difference was, until and
including 2002, deferred as goodwill and amortized
linearly over the useful life. Since 2003, in exercise of the
options according to Swiss GAAP ARR 9, goodwill is
recognized directly in equity at the first consolidation.

Participations with voting rights between 20% and 49.9%
are recorded according to the equity method in proportion to their shareholders’ equity on the balance sheet
date and are listed under financial assets. A proportionate figure for the net result valuated according the
equity method is stated in the consolidated statement
of income
Participations below 20 % are valued at acquisition costs
minus operationally necessary value adjustments.
These investments are also listed under financial assets.
Company internal assets and liabilities as well as expenses and income from internal company transactions
are eliminated. Interim group internal profits are not
eliminated because their influence on the company’s
result is insignificant.

Foreign currency conversion
Assets and liabilities from balance sheets established in
foreign currencies are converted at the relevant yearend exchange rate. An average annual exchange rate is
used to convert the income statements. Cash flows are
also converted using an average annual exchange rate.
The differences resulting from the application of the
aforementioned exchange rates are credited or debited
to retained earnings and have no impact on the
income statement. The corresponding amounts are
shown in the equity statement.
Transactions in foreign currencies during the business
year are valued at the then current rate. The resulting currency exchange rate differences are recorded in
income.

The following rates were used for conversion of the
group’s various accounting currencies:
Average rates
2003
CHF
1
1
1
100
100
100

euro
British pound
American dollar
Singapore dollar
Hong Kong dollar
Japanese yen

2002
CHF

Year-end rates
2003
CHF

2002
CHF

1.52
2.20
1.35
77.23
17.21
1.16

1.47
2.34
1.56
87.03
20.00
1.24

1.56
2.21
1.24
72.87
15.96
1.16

1.45
2.24
1.39
79.96
17.79
1.17

Accounting and valuation principles
Items in the consolidated balance sheet and income
statement are normally recorded at acquisition or production costs, which are based on the principle of individual valuation of assets and liabilities. Any restatements
are borne by reserves or value adjustments. This has
the following implications for the key balance sheet items:
Cash and cash equivalents
Cash and cash equivalents are cash holdings, balances
in post ofﬁce or bank accounts, as well as sight or
time deposits with a residual term not exceeding 90 days.
These are recorded at their nominal values.
Accounts receivable
Accounts receivable are listed at their nominal value net
of operationally necessary value adjustments.

Inventories
Inventories are valuated at the acquisition or production
costs or – should this be lower – at the realizable market value. Valuation is made according to the averaging
method.
Work in progress
Work in progress is recognized at the lower of production
cost and market value.
Tangible assets
Tangible assets are carried at acquisition or production
costs, including expenditures that enhance their
economic value and net of operationally necessary
write-offs.
Depreciation and amortization are effected on the basis
of the following expected useful lives:

Asset category

Depreciation period

Real estate
Buildings
Equipment and furnishings
Other tangible assets

no depreciation
5–60 years
3–30 years
5 years


Tangible assets valued below CHF 3,000 are not carried
as assets, but categorized as low-value assets and
recorded in expenses.
Leases
Tangible assets financed through long-term leasing
contracts (finance leases) are deferred and depreciated
at the lower of acquisition and market or cash value
of the future leasing payments. The corresponding liabilities are recorded in long or short-term liabilities.
Stakes
This refers to participations between 20 % and 49.4 %
in other companies which are accounted for according
to the equity method.
Securities
Securities recorded in non-current assets include shares
below 20 % in other companies, which are valued at
acquisition cost.
Treasury shares
Valuation is made at acquisition cost and net of operationally necessary value adjustments.
Intangible assets
This item includes goodwill purchased up to and including 2002, which was written down linearly over its
useful life. Since 2003, in exercise of the options according to Swiss GAAP ARR 9, goodwill is recognized directly
in equity at its first consolidation.
Research and development costs, as well as software
costs, are directly charged to the income statement.

Deferred taxes
A provision for deferred taxes is listed for differences
arising from uniform valuation across the group.
Country-specific tax rates are applied in these cases.
Deferred taxes are not carried under assets, since their
future use is as yet undetermined. Tax deferrals are
made for non-refundable source taxes on anticipated
dividend payments by subsidiaries in the coming year.
Other deferred taxes for undistributed subsidiary profits
are not taken into account.
Financial results
Discounts on supplier invoices are shown in the financial result.
Derivative financial instruments
Derivative financial instruments are exclusively used
for hedging purposes. Those transactions which can
clearly be allocated to the hedged underlying transaction are valued according to the same method as the
latter. Transactions for which no such allocation is possible are carried at market value. Positive or negative
replacement values are included in accruals and deferrals as the case may be.
Explanations
1 Segment reporting
The segmentation of operating income, as shown in the
income statement, was adjusted to that of the management structures in the reporting year. Information
from previous years has been adapted correspondingly. For the segmentation according to geographic markets we refer to the corresponding section of the financial results (see page 36).

2 Personnel expenses

2003
CHF 1000

2002
CHF 1000

Change
CHF 1000

216,133
19,192
20,058
3,459
25,644
9,780
279
294,545

208,158
18,738
15,962
4,923
33,650
9,794
321
291,546

7,975
454
4,096
–1,464
–8,006
–14
–42
2,999

2003
CHF 1000

2002
CHF 1000

Change
CHF 1000

6,016
6,152
1,276
185,894
199,338

6,628
5,876
846
149,806
163,156

–612
276
430
36,088
36,182

4 Depreciation and amortization

2003
CHF 1000

2002
CHF 1000

Change
CHF 1000

Depreciation of tangible assets
Depreciation of intangible assets
Total

40,950
6,716
47,666

40,937
5,070
46,007

13
1,646
1,659

Salaries and wages
Social insurance contributions
Pension fund contributions
Training
Contract staff
Other personnel expenses
Board of Directors’ remunerations
Total

3 Other operating expenses

Travel and representation expenses
Accounting, consultancy and auditing
Capital taxes
Total

The depreciation of intangible assets is attributable to
the residual goodwill from the 3C Holding AG purchased
in the previous year, which was written down entirely
in the reporting year. Goodwill from the purchase of the

VISA acquiring business made in business year 2003
was directly recognized in equity at first consolidation in exercise of the options according to Swiss GAAP
ARR FER 9.


5 Financial result

Financial income
Financial expenses
Total
The considerably lower financial result is a result of both
the lower amount of funds available for investment and

6 Result from equity valuation
This item contains the increase of the book value resulting from the equity valuation of the participation in SECB
Swiss Euro Clearing Bank GmbH (see Participations).

7 Neutral and extraordinary income and expenses
Neutral/extraordinary income
Profit from the sale of participations/financial investments
Disposals of provisions for contingent losses
Release of reserves
Credits for turnover bonuses
Profit from sale of fixed assets
Other
Total

2003
CHF 1000

2002
CHF 1000

Change
CHF 1000

3,570
–1,026
2,544

6,348
–2,021
4,327

–2,778
995
–1,783

also the fall in interest rates in the reporting year.

This can be primarily traced back to the increased
EUR/CHF currency exchange rate in the reporting year.

2003
CHF 1000

2002
CHF 1000

Change
CHF 1000

27,231
323
4,500
287
169
961
33,471

8,747
2,428
895
624
141
676
13,511

18,484
–2,105
3,605
–337
28
285
19,960

1,039
299
445
6,493
1,273
9,549

8,807
1,269
1,274
702
611
12,663

–7,768
–970
–829
5,791
662
–3,114

Neutral/extrarordinary expenses
Creation of provisions for vacancy risks
Fluctuation reserves purchase for former 3C employees
Losses from fixed asset disposals
Out-of-period expenses
Other
Total
In the previous year, the sales profit from participations/
financial investments resulted from the sale of a 25 %
share in Swiss Interbank Clearing Ltd. The stakes in Fininfo SA were sold in the reporting year.

The release of provisions as well as out-of-period
expenses in the reporting year primarily resulted from
the new assessment of legal risks.
Provisions for vacancy risks were formed for spaces no
longer used by the Telekurs Group, which, however,
continue to generate costs.

8 Taxes

Current income taxes
Deferred taxes
Total
Tax-loss carry forwards exist. The corresponding tax
credits in the amount of approximately CHF 13 million

9 Cash and cash equivalents

Current accounts and call money
Fixed-term deposits at banks
Other cash and cash equivalents
Total

10 Accounts receivable from goods and services

From banks
Other
Delcredere
Total

11 Stock and work in progress

Finished products
Semi-ﬁnished products/accessories/replacement parts
Work in progress
./. Value adjustments
Total

2003
CHF 1000

2002
CHF 1000

Change
CHF 1000

13,123
–1,354
11,769

20,214
–412
19,802

–7,091
–942
–8,033

(previous year approximately CHF 14 million) have not
been deferred, since future use is as yet undetermined.

31. 12. 2003
CHF 1000

31. 12. 2002
CHF 1000

Change
CHF 1000

32,963
185,276
930
219,169

50,180
282,596
568
333,344

–17,217
–97,320
362
–114,175

31. 12. 2003
CHF 1000

31. 12. 2002
CHF 1000

Change
CHF 1000

99,072
49,404
–5,571
142,905

130,415
57,418
–13,864
173,969

–31,343
–8,014
8,293
–31,064

31. 12. 2003
CHF 1000

31. 12. 2002
CHF 1000

Change
CHF 1000

845
10,553
55
–4,920
6,533

1,802
6,726
142
–3,995
4,675

–957
3,827
–87
–925
1,858


12 Other accounts receivable
This item primarily consists of clearing claims from the
card business. The necessary value adjustments of

13 Tangible assets

CHF 2.5 million (previous CHF 1.8 million) have been
recorded in assets.

Real estate
and buildings
CHF 1000

Equipment and
furnishings
CHF 1000

Other
fixed assets
CHF 1000

Total
fixed assets
CHF 1000

Acquistion value
Additions
Disposals
Reclassifications
Position as of 31 December 2003

293,908
–322
238
–5
0
293,819

313,226
351
21,882
–31,967
–27
303,465

43,254
77
1,110
–13,210
27
31,258

650,388
106
23,230
–45,182
0
628,542

Accumulated depreciation
Disposals
Ordinary depreciation and amortization
Reclassifications
Position as of 31 December 2003

182,058
–352
–2
6,313
0
188,017

249,153
432
–30,111
29,986
–86
249,374

28,972
–33
–13,166
4,651
86
20,510

460,183
47
–43,279
40,950
0
457,901

Net book value as of 1 January 2003

111,850

64,073

14,282

190,205

Net book value as of 31 December 2003

105,802

54,091

10,748

170,641

The fire insurance value of the tangible assets is
CHF 479.1 million (previous year CHF 482.6 million).

A mortgage lien exists on the property at Hardturmstrasse 201, Zurich which is carried at CHF 103.9 million.

14 Participations
This refers to a 25 % share in SECB Swiss Euro Clearing
GmbH, Frankfurt am Main. Its book value was carried
accrued as follows:

Position 1 January
Proportional annual profit
./. Proportional dividend
Exchange rate difference
Position 31 December

2003
CHF 1000
3,795
421
–345
324
4,195

2002
CHF 1000
3,751
383
–208
–131
3,795

Change
CHF 1000
44
38
–137
455
400

15 Securities

2003
CHF 1000

2002
CHF 1000

Change
CHF 1000

4,859
0
–3,514
1,345

4,859
0
0
4,859

0
0
–3,514
–3,514

Net book value as of 1 January

4,859

4,859

0

Net book value as of 31 December

1,345

4,859

–3,514

Acquisition value
Position as of 1 January
Additions
Disposals
Position as of 31 December

The stakes in Fininfo SA, Paris, were sold in the reporting year. The remaining book value consists entirely

16 Intangible assets

Acquisition value
Change in scope of consolidation
Additions
Disposals
Accumulated depreciation
Additions
Disposals
Net book value as of 1 January
Net book value as of 31 December
In the previous year, only the purchased goodwill was
included in assets and written down linearly over its
useful life. In the reporting year, the newly acquired
goodwill from the purchase of the VISA acquiring business was directly recognized in equity in exercise of

of the shares in MasterCard International Inc.,
St. Louis.

2003
CHF 1000

2002
CHF 1000

Change
CHF 1000

12,765
0
0
0
12,765

1,052
11,713
0
0
12,765

11,713
–11,713
0
0
0

–6,052
–6,713
0
–12,765

–995
–5,057
0
–6,052

–5,057
–1,656
0
–6,713

6,713

57

6,656

0

6,713

–6,713

the options according to Swiss GAAP ARR 9. The existing residual goodwill from the previous year’s purchase
of the 3C-Gruppe recognized in the income statement
was written down in its entirety.


17 Other short-term liabilities
These are primarily clearing obligations from the card
business.

19 Provisions

18 Accrued liabilities
This item specifically consists of pre-invoiced services for
the following years in the financial information business.

31. 12. 2003
CHF 1000

31. 12. 2002
CHF 1000

Change
CHF 1000

Taxes on current result
Deferred taxes
Other provisions
Total short-term provisions

8,058
8,174
73,212
89,444

27,346
8,927
62,819
99,092

–19,288
–753
10,393
–9,648

Provision for employee pension benefits
Other provisions
Total long-term provisions

452
14,800
15,252

447
14,978
15,425

5
–178
–173

104,696

114,517

–9,821

31. 12. 2003
CHF 1000

31. 12. 2002
CHF 1000

Change
CHF 1000

16,330
0
2,000
18,330

25,922
742
2,000
28,664

–9,592
–742
0
–10,334

30,624
95
95

0
0
0

30,624
95
95

Total

Deferred tax assets in the amount of CHF 1.5 million
(previous year CHF 0.9 million) from valuation differences
are recorded under accruals and deferrals.
20 Off-balance sheet business
Contingent liabilities and other off-balance sheet obligations
Long-term obligations
– Space rentals
– Cooperation agreements
– Purchase obligations for group company shares
Total
Derivative financial instruments
Currency swaps
Total contract value
Total positive (or negative) replacement value
of which already recognized
For optimization of cash management and the reduction
of hedging costs, derivative products were used for
the first time in the reporting year. For the net position of
bank accounts, receivables and payables in foreign

currencies the opposing position was represented by
means of a currency swap instead of fixed deposits or
fixed advances.

21 Transactions with affiliated companies
The term “affiliated companies” refers to are those shareholders with a participation of over 20 % in the company, as well as companies in which the Telekurs Group
has significant participations.

The following transactions with affiliated companies are
contained in the 2003 and 2002 annual financial
statements. All transactions were conducted according
to conditions in line with the market.

31. 12. 2003
CHF 1000

Income (service income, interest income,
extraordinary income)
Expenses (interchange, interest expenses)

22 Employee pension benefits
Employees of the Swiss Telekurs Group companies are
insured by the Telekurs Holding Ltd. employee pension fund. The Telekurs Holding Ltd. employee pension
fund is a defined contribution fund in the sense of
the Swiss GAAP ARR and provides benefits in the mandatory and supplement employee benefits areas. There
are employer contribution reserves in the amount of
CHF 35.8 million (previous year CHF 35.5 million).
Employees in foreign subsidiaries are insured at least
to the extent of local regulations. The employer contributions amount to CHF 20.1 million (previous year
CHF 16.0 million) and correspond to the expenses
recognized.

Change
CHF 1000

156,608
27,503

163,111
26,737

–6,503
766

2003
CHF 1000

Receivables
Payables

31. 12. 2002
CHF 1000

2002
CHF 1000

114,141
20,473

124,467
21,439

–10,326
–966

23 Events after the balance sheet date
No significant events occurred subsequent to the
balance sheet date.


REPORT OF THE GROUP AUDITORS

To the general meeting of
Telekurs Holding Ltd., Zurich
As auditors of the group, we have audited the consolidated financial statements (income statement, balance
sheet, statement of cash flows and notes) of Telekurs Holding Ltd. for the year ended December 31, 2003.
These consolidated financial statements are the responsibility of the board of directors. Our responsibility is to
express an opinion on these consolidated financial statements based on our audit. We confirm that we meet the
legal requirements concerning professional qualification and independence.
Our audit was conducted in accordance with auditing standards promulgated by the Swiss profession, which require
that an audit be planned and performed to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. We have examined on a test basis evidence supporting the
amounts and disclosures in the consolidated financial statements. We have also assessed the accounting
principles used, significant estimates made and the overall consolidated financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
In our opinion, the consolidated financial statements give a true and fair view of the financial position, the results
of operations and the cash flows in accordance with Swiss GAAP ARR and comply with Swiss law.
We recommend that the consolidated financial statements submitted to you be approved.
Zurich, 20 February 2004

Ernst & Young Ltd.

Thomas Schneider
Certified Accountant
(in charge of the audit)

René Hunziker

LIECHTENSTEINISCHE LANDESBANK AG, VADUZ

Stephan Schmidle, Head of Financial Systems. “We offer our foreign customers comprehensive ﬁnancial services
in the areas of asset management and investment counseling. In addition to Telekurs display products,
which we use in private banking and in the back-office, we also offer the Valordata Feed (VDF), a basis for
Straight Through Processing, which supports us in the automation of front- and back-ofﬁce processes.”

56 57 ANNUAL REPORT 2003 TELEKURS HOLDING LTD.

STATEMENT OF INCOME
2003
CHF 1000

2002
CHF 1000

Financial income
Participations income
Proﬁt from disposal of ﬁnancial investments
Other income
Total income

2,536
35,010
26,481
15,383
79,410

6,175
81,066
0
15,180
102,421

Financial expenses
Personnel expenses
Other expenses
Total expenses

986
7,867
11,959
20,812

4,584
7,774
17,264
29,622

Annual result before taxes

58,598

72,799

Taxes

–3,299

–2,009

Annual result

55,299

70,790

BALANCE SHEET
Assets

31. 12. 2003
CHF 1000

31. 12. 2002
CHF 1000

Cash and cash equivalents*
Trade accounts receivable
– from third parties
– from Group companies
Loans to subsidiaries
./. Cumulative value adjustments towards subsidiaries
Other claims upon third parties
Accrued assets
Total current assets

150,146

264,223

79
145,952
13,000
–13,000
424
108
296,709

264
90,073
8,000
–8,000
1,173
415
356,148

Tangible assets
Participations
Treasury shares
Total ﬁnancial assets

25
136,651
22,152
158,828

42
139,582
22,039
161,663

Total assets

455,537

517,811

276
135,593
462
5,396
141,727

570
208,434
104
5,543
214,651

2,584
2,584

2,586
2,586

144,311

217,237

45,000

45,000

Liabilities
Trade accounts payable
– to third parties
– to Group companies
Other short-term obligations to third parties
Accrued liabilities and other short-term provisions
Total short-term liabilities
Long-term provisions
Total long-term liabilities
Total liabilities
Share capital
Legal reserves
– General legal reserves
– Reserves for treasury shares
Free reserves
Balance sheet proﬁt
– Retained earnings
– Annual result
Total equity capital

32,187
22,152
149,825

32,187
22,039
119,938

6,763
55,299
311,226

10,620
70,790
300,574

Total liabilities

455,537

517,811

* Cash also contains positions with shareholder banks.


NOTES
31. 12. 2003
CHF M

31. 12. 2002
CHF M

8,849

8,824

Fire insurance value of fixed assets

0.1

0.1

Obligations to employee beneﬁts institutions

0.4

0.1

5.4
p.m.

9.8
p.m.

Participations (The participations are listed on page 64.)
Treasury shares (number)
Purchase of 25 shares at CHF 4,519.80 each

Contingent liabilities
Total amount of sureties and guarantee obligations
in favor of third parties
(these are guarantees to subsidiaries)
Joint liability from consolidated tax ﬁling status

OFF-BALANCE SHEET TRANSACTIONS
Currency swaps

Total contract value
Total positive (or negative) replacement value
of which already recognized in the balance sheet

31. 12. 2003
CHF 1000

31. 12. 2002
CHF 1000

Change
CHF 1000

30,624
95
95

0
0
0

30,624
95
95

SHAREHOLDER’S EQUITY
Equity

CHF 1000
45,000
Appropriation of profit
– Dividends
– Allocation to reserves
Allocation to reserves for treasury shares
Annual result
Position as of 31 December 2003 45,000

General
legal
reserves
CHF 1000

Reserves
for treasury
shares
CHF 1000

CHF 1000

32,187

22,039

119,938

113

30,000
–113

22,152

149,825

32,187

The share capital consists of 90,000 registered shares
with a par value of CHF 500 each. Among these,
8,849 nominal shares (previous year 8,824 nominal
shares) with a value of CHF 22.2 million (previous year
CHF 22 million) are held by the Group. In the reporting

Free
Reserves

Balance
Total
sheet shareholder’s
profit
equity
CHF 1000
CHF 1000
81,410

300,574

–44,647
–30,000

–44,647
0
0
55,299
311,226

55,299
62,062

period 25 shares were repurchased at the price of
CHF 4,519.80 per share. The reserves for treasury shares
were adjusted according to the purchase price of the
shares repurchased in the year 2003, the adjustment
being debited to the free reserves.

PROPOSED BALANCE SHEET
PROFIT ALLOCATION
The Board of Directors proposes to the Annual General
Meeting that the balance sheet profit be used as follows:
2003
CHF 1000

2002
CHF 1000

Profit carried forward from previous year
Annual result
Balance sheet profit

6,763
55,299
62,062

10,620
70,790
81,410

Dividend
CHF 550 (previous year CHF 550) per nominal share of
CHF 500 nominal value
Free reserves
Profit carried forward to following year
Total

49,500
12,000
562
62,062

44,647
30,000
6,763
81,410

The difference between the proposed dividend (CHF
49,500,000) and the effective 2002 dividend payment

corresponds to the dividend payment on treasury
shares, which Telekurs Holding Ltd. waived.


REPORT OF THE STATUTORY AUDITORS

To the general meeting of
As statutory auditors, we have audited the accounting records and the financial statements (income statement,
balance sheet and notes) of Telekurs Holding Ltd. for the year ended December 31, 2003.
These financial statements are the responsibility of the board of directors. Our responsibility is to express an
opinion on these financial statements based on our audit. We confirm that we meet the legal requirements concerning professional qualification and independence.
Our audit was conducted in accordance with auditing standards promulgated by the Swiss profession, which
require that an audit be planned and performed to obtain reasonable assurance about whether the financial statements are free from material misstatement. We have examined on a test basis evidence supporting the amounts
and disclosures in the financial statements. We have also assessed the accounting principles used, significant
estimates made and the overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
In our opinion, the accounting records and financial statements and the proposed appropriation of available earnings
comply with Swiss law and the company’s articles of incorporation.
We recommend that the financial statements submitted to you be approved.
Zurich, February 20, 2004

Ernst & Young Ltd.

Thomas Schneider
(in charge of the audit)

René Hunziker

WHITE ARENA GROUP, LAAX

Adrian Wolf, Head of Finances and Controlling. “The White Arena Group offers unforgettable mountain experiences
for around one million guests annually in winter and summer alike. Guests proﬁt from a multifaceted range of services
from a single source, from sporting goods rentals, to ski passes, accommodations and food, as well as après-ski.
In this environment we depend on a payment process that is easy and fast. That is why we have relied for years on
Telekurs Card Solutions Ltd. for credit card and debit card processing, a partnership well worth it, not only for us,
but also for our guests.”

62 63 TELEKURS GROUP MANAGEMENT BODIES AND ORGANIZATIONS



Board of Directors

Board of Directors

Marcel Zoller
Chairman
Cantonal Bank of St. Gall, St. Gallen
Cord-Constantin Bregulla
Vice Chairman
First Vice President of UBS AG, Zurich
Dr Thomas Ankenbrand
Director, RBA Central Bank, Bern
Robert Fuchs
Head of Brand Management
St. Gallen
Thomas von Burg
Director of Basic Products,
Credit Suisse, Zurich
Walter Wirz
Chief Executive Officer of Telekurs Group

Dr Pierin Vincenz
Chairman
St. Gallen
Peter Hinder
Vice Chairman
Head of Banking Products, UBS Ltd.,
Zurich
Dr Ruedi Berger
Member of the Executive Board of
RBA-Holding, Gümligen
Andreas Kälin
Luzerner Kantonalbank, Lucerne
Erich Wild
Director, Credit Suisse, Zurich
Walter Wirz
Chief Executive Officer of Telekurs Group

Executive Committee
Executive Committee
Ruedi Denier
Marketing
Dôn Nguyen-Quang
Corporate Services
Member of Senior Management
Niklaus Santschi
Sales

Felix Aeschlimann
Dr Linus Bertsch
Operations
Ruedi Denier
Business Development
Ralph Oechslin
Marketing, Sales & Business
Management
Heinz Burkhardt
Head of Service Center, Card Services
Ulrich Byland
Application Development
Walter Fenner
Product Management Issuing Systems
Maria Mathis
Service Center Terminals

Christian Vetsch
Sales
Boris Urs Zeltner
Business Development
Board of Directors
Dr Romeo Lacher
Chairman
Member of the Executive Committee,
Fritz Klein
Vice Chairman
SIS SegaInterSettle AG, Zurich
Jörg Auer
Managing Director, UBS Ltd., Zurich
Zeno Bauer
Member of Senior Management of
Zürcher Kantonalbank, Zurich
Christian Bieri
Member of the Executive Committee,
RBA Central Bank, Bern
Jürg Bucher
Head of PostFinance, Bern
Othmar Fritschi
Member of Senior Management,
Swiss Union of Raiffeisenbanks,
St. Gallen
Dr Urs P. Roth
Swiss Bankers Association, Basel
Theo Schmid
Member of Senior Management of
Erwin Sigrist
Former Director, Deputy Head of
Department 3,
Swiss National Bank, Zurich
Walter Wirz
Chief Executive Officer of
Telekurs Group Ltd., Zurich

Executive Committee
André Bamat
Andreas Galle
Head of Business Management
Thomas Grütter
Head IT Management
Walter Leuenberger
Finance & Controlling
PayNet (Schweiz) AG
Board of Directors
Walter Wirz
Chairman
Chief Executive Officer of Telekurs
Group, Telekurs Holding Ltd., Zurich
André Bamat
Swiss Interbank Clearing Ltd., Zurich
Mirko Thomas Oberholzer
Telekurs Group Legal Service

Josef Landolt
Vice Chairman
Managing Director, UBS Ltd., Zurich
Felice De Grandi
Head of Risk Management
Swiss Union of Raiffeisenbanks,
St. Gallen
Thomas F. Husemann
Rothschild Bank AG, Zurich
Ernst Messmer
Managing Director
Affentranger Associates Ltd., Geneva
Philippe Sauthier
General Director of Banque Cantonale
Vaudoise, Lausanne
Manfred Stöpper
Managing Director, Credit Suisse, Zurich
Walter Wirz
Chief Executive Officer of Telekurs Group,
Executive Committee
Eugen Niesper

Executive Committee
Martin Frick
Nicolas Bloch
Sales & Communications
Koni Hüsser
Product Management & Operations
Board of Directors
Arthur Bolliger
Chairman
Maerki Baumann & Co AG, Zurich

Fredy Capecchi
Global Data
Administration & Acquisition
Hans-Peter Cueni
Development
Christian Cuennet
Geneva Sales Unit
Armando Foiadelli
Technical Consulting
Product Management
Fritz Hediger
Marketing & Sales
Heinz Hess
Server and Frontend
Technology & Services
Karl Landolt
Data Operations

Nourredine Yous
General Support Data
Hans-Peter Schumacher
Controlling
Telekurs Services Ltd.
Board of Directors
Walter Wirz
Chairman
Chief Executive Officer of Telekurs Group,
Jörg Buser
General Manager, Rolotec Ltd., Biel
Andreas Plüss
Head of Legal Service,
Executive Committee
Rolf Finschi
Head of Corporate Services
Reto Camenisch
Head of Business
Management & Development
Beat Christen
Head of Document Services
Rainer Deutschmann
Head of IT Services
Heinrich Angst
Human Resources Services
Martin Bänninger
Facility Services
Hans Bütikofer
Procurement Services
Peter Knüppel
Chief Technology Officer
Franz Röösli
Management Services
Peter Rufener
CCC Financial Services
& Services Management

64 65 CONSOLIDATED COMPANIES

Group companies

Business ﬁeld

Equity
capital
in 1000

Percent
held 1
2003

Consolidation
method

SWITZERLAND
Telekurs Multipay Ltd., Wallisellen 2
Telekurs Card Solutions Ltd., Urdorf 3
Epsys AG, Urdorf 4
Swiss Interbank Clearing Ltd., Zurich
PayNet (Schweiz) AG, Wallisellen
PayNet International AG, Wallisellen
Telekurs Financial Information Ltd., Zurich
Rolotec Ltd., Biel
Telekurs Services Ltd., Zurich 5
Telekurs Card Services Ltd. (inoperative)
Swisskey Ltd. (inoperative)

O
C
C
C
E
E
E
F
F
O
C
E

CHF 45,000
CHF 6,500
CHF
100
CHF
100
CHF 1,000
CHF 1,000
CHF 4,000
CHF 5,000
CHF
200
CHF 52,500
CHF
100
CHF
100

100 %
100 %
100 %
80 %
75 %
100 %
100 %
100 %
75 %
100 %
100 %
100 %

FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC

EUROPE
Telekurs (Deutschland) GmbH, Frankfurt am Main
Telekurs (Luxembourg) S.A., Luxembourg
Telekurs (France) SAS, Paris6
Telekurs (Nederland) B.V., Amsterdam
Telekurs (Italia) s.r.l., Milano
Telekurs (U.K.) Ltd., London
Telekurs Card Solutions GmbH, Hamburg 4
PayNet AG (Deutschland), Frankfurt am Main (in liquidation) 7

F
F
F
F
F
F
C
E

EUR
EUR
EUR
EUR
EUR
GBP
EUR
EUR

511
31
400
250
100
500
25
500

100 %
100 %
100 %
100 %
100 %
100 %
100 %
100 %

FC
FC
FC
FC
FC
FC
FC
FC

AMERICA
Telekurs (USA) Inc., Stamford

F

USD 2,045

100 %

FC

ASIA
Telekurs (Japan) Ltd., Tokyo
Telekurs (Hong Kong) Ltd., Hong Kong
Telekurs (Singapore) Pte. Ltd., Singapore

F
F
F

JPY 40,000
HKD 4,000
SGD
25

100 %
100 %
100 %

FC
FC
FC

Unconsolidated holdings
SECB Swiss Euro Clearing Bank GmbH, Frankfurt am Main
MasterCard International Inc., St. Louis 7

E
C

EUR 9,200

25 %
0.27 %

EQ
AV

Business ﬁeld
O = Other operating income
C = Card-Based Payment Systems
E = Electronic Payment Systems
F = Financial Information Services
Consolidations method
FC = Full consolidation
EQ = Equity method
AV = Acquisition value

1

For all companies, the percentage of equity corresponds to the percentage of voting rights.
Formerly Telekurs Europay Ltd, Wallisellen.
Formerly 3C Holding AG. In the reporting year the company absorbed the participations in 3C-Systems AG,
ComOp AG, Hotseven AG and Soplex AG and was renamed to Telekurs Card Solutions Ltd.
The Card Services division split off from Telekurs Services AG was added as investment in kind.
4
Participation of Telekurs Card Solutions Ltd.
5
Formerly Payserv Ltd., Zurich. In the reporting year the Card Services division was split off and added to
6
Founded in 2003.
7
Participation of Telekurs Multipay Ltd.
2
3

Liquidation of Telekurs (Ceska Republika), a.s., Praha was completed in the
reporting year. This company will therefore no longer be listed in the consolidated
companies.

SIX-Telekurs annual report 2003

SIX-Telekurs annual report 2003

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