Proposal for the Distribution of available retained Earnings

CHF	December 31, 2016		December 31, 2015

Balance brought forward	33,824,277		35,117,871
Net income	299,128,993		211,766,388
Other	351,205	¹	914,218
Available retained earnings	333,304,475		247,798,477

Shares and participation certificates as per bylaws of CHF 23,740,160 as at December 31, 2016 (CHF 23,493,550 in 2015)
580% (400% in 2015) dividend	– 137,692,928	²	– 93,974,200
Allocation to special reserves	– 160,000,000		– 120,000,000
Balance carried forward	35,611,547		33,824,277

Allocation of approved capital contribution reserve to free reserves	71,220,480	²	93,974,200
Withholding tax exempt distribution CHF 300.- per registered share/ CHF 30.- per participation certificate (CHF 400.- per RS/CHF 40.- per PC in 2015)	– 71,220,480	²	– 93,974,200

1 Includes dividends not distributed on treasury stock held (CHF 1,013,600), dividends distributed on options exercised during the period January 1 to April 26, 2016 (CHF -663,360) and unclaimed, expired dividends (CHF 965).

2 Number of registered shares and participation certificates, status as at December 31, 2016. During the period from January 1 until record date (April 25, 2017), the dividend-bearing capital (the number of registered shares and participation certificates) can change as a result of additions and retirements within either class of treasury stock as well as the exercise of options, granted through the employee stock option plan. Consequently the allocation of the approved capital contribution reserve to free reserves will be adjusted accordingly.

For 2016 the Board of Directors proposes a total dividend of CHF 880.– per registered share and CHF 88.– per participation certificate.

CHF 300.– per registered share and CHF 30.– per participation certificate are distributed out of the approved capital contribution reserve (agio) and CHF 580.– per registered share and CHF 58.– per participation certificate are distributed out of retained earnings.