Mergers & Acquisitions Report:

Switzerland
Full Year 2008
(incl. 2nd half year and 4th quarter 2008)

Zurich, 27 January 2009

 Executive Summary
Mergers & Acquisitions activity (see Sections 1 & 2)
• Swiss Mergers & Acquisitions activity has slightly increased in 2008 in terms of numbers (+4%). This increase is contrary to the
worldwide trend (-10%) or European one (-11%).
• The total known value of Swiss deals has decreased by 24%, which is only half of the general trend (World: -44%; Europe: -
46).
• The valuation of Swiss deals has decreased by 29%, while the SMI has decreased only by 21%.

National vs. Cross-border M&A (see Section 3)

• The share of Swiss national deals in the total number has increased by 5%. This increase in national deals can also be noticed
in neighboring countries such as Germany and Austria and seems to be logical in a downturn situation.
• The
Th share
h off Swiss
S i cross-border
b d deals
d l ini the
h totall value
l off deals
d l however
h h increased
has i d to 94% which
hi h is
i a value
l last
l reached
h d in
i
2000. This is contrary to the German or Austrian experience.
• Especially the significance of the value of Swiss acquisitions abroad has increased. Swiss companies prefer Western Europe
and North America for acquisitions.

Industry (see Section 4)

• With respect to the number, the majority of deals has taken place in the sectors consumers, industrials and high technology.
By value, more than half of all transactions took place in the heathcare sector – driven by Roche´s planned acquisition of the
remaining stake in Genentech, Nestlé‘s acquisition of Alcon and a share repurchase program by Novartis.

Top deals (Section 5)

• Cross-border deals dominate the list of top deals in 2008. 2 out of the top 15 deals are share buy backs, taking advantage of
lower valuations.
 Content
1) M&A Activity in Switzerland
2) Valuation of Swiss M&A
3) National and Cross-border M&A in Switzerland
4) M&A in Switzerland by Industry
5) Top Swiss Deals
6) M&A Worldwide & Europe
1) M&A ACTIVITY IN SWITZERLAND
 Swiss M&A Activity in 2008
Number Value

900 140
800 120
700

e (in bil. EUR)

100
600
Number
500 80
400 60
N

Value
300
40
200
100 20

0 0
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Year
Annual view:
• In 2008:
• Number: 726
• Value: 98 bil. EUR
• In comparison to 2007, this is:
• Number: +4% (was 698)
• Value: -24% (was 129 bil. EUR)
 M&A in 2008: CH vs. Europe
Number (Switzerland) Number (Europe) Value (Switzerland) Value (Europe)

800 18.000 140 2.000

e (Switzerland; in bil. EUR)

1.800

alue (Europe; in bil. EUR)

700 16.000 120
Number (Switzerland)

14.000 1.600

Number (Europe)
600
100 1.400
12.000
500 1.200
10.000 80
400 1.000
8.000 60
300 800
6.000
40 600
200

Value
4.000 400
20

Value
100 2 000
2.000 200
0 0 0 0
2002

2003

2004

2005

2006

2007

2008

2002

2003

2004

2005

2006

2007

2008
Year Year

Annual view:
Country/Region Number Value
• The number of M&A deals with Swiss involvement has actually
Switzerland +4% -24% increased by 4% which is contrary to the overall trend in Europe and
Europe -11% -46% worldwide.
• The drop in value of Swiss deals is significantly lower than in
World -10% -44% Europe or the worldwide trend (half of it).