Private Equity Holding AG — Annual Report 2021

May 11, 2021

Annual Report 2020 / 2021

Private Equity Holding AG

Private Equity Holding offers institutional and private investors the opportunity to invest in a broadly diversified private equity portfolio.

The objective of Private Equity Holding is to generate long-term capital growth for its shareholders.

Private Equity Holding's Investment Portfolio is managed by Alpha Associates.

Alpha Associates is an independent private equity, private debt and infrastructure manager and advisor, building and managing globally diversified private market fund portfolios for institutional and private clients.

Table of Contents

Key Figures 2
Chairman's Letter for the Financial Year 2020/2021 3
Development of Net Asset Value and Share Price 5
Private Equity Holding Portfolio Overview 6
Largest Exposures 7
Selected Direct Investments 9
IFRS Financial Statements Private Equity Holding AG 12
Report of the Statutory Auditor on the IFRS Financial Statements 38
Financial Statements Private Equity Holding AG 43
Report of the Statutory Auditor on the Financial Statements 51
Corporate Governance 54
Compensation Report 64
Report of the Statutory Auditor on the Compensation Report 66
Information for Investors 68
Glossary of Terms 69

Key Figures for the Financial Year 2020/2021

Share Value	31.03.21 EUR	31.03.20 EUR	Change in % 1	31.03.21 CHF	31.03.20 CHF	Change in % 1
Net asset value per share, based on fair values	121.33	88.91	36.5%	134.20	94.26	42.4%
Price per share (PEHN.S)	66.90	48.10	39.1%	74.00	51.00	45.1%

1 Excl. distributions.

Net Profit for the Period	01.04.20- 31.03.21 EUR 1,000	01.04.19- 31.03.20 EUR 1,000	Change in %
Profit for the period	82,780	14,987	452%

Selected Balance Sheet Items (Consolidated)2	31.03.21 EUR 1,000	31.03.20 EUR 1,000	Change in %
Current assets	4,664	729	540%
Non-current assets	316,557	245,635	29%
Current liabilities	13,152	15,698	(16%)
Non-current liabilities	—	—	n/a
Total equity	308,069	230,666	34%

2 Information herein is presented in addition to the IFRS Financial Statements.

Asset Allocation	Fair Value 31.03.21 EUR million	Unfunded Commitments 31.03.21 EUR million	Total Exposure 3 31.03.21 EUR million	Total Exposure 3 31.03.21 in %
Buyout funds	111.1	33.0	144.1	36%
Venture funds	90.5	19.6	110.1	28%
Special situation funds	52.7	25.6	78.3	20%
Total fund investments	254.3	78.2	332.5	84%
Direct investments and loans	62.3	2.6	64.9	16%
Total direct investments and loans	62.3	2.6	64.9	16%
Total funds, direct investments and loans	316.6	80.8	397.4	100%

3 Fair value plus unfunded commitments.

Commitments	31.03.21	31.03.20	Change in %
Unfunded commitments (EUR million)	80.8	95.5	(15%)
Overcommitment 4	26.8%	41.5%	(35%)
Net current assets / unfunded commitments	(3.2%)	(0.4%)	756%

4 Overcommitment = (unfunded commitments - net current assets) / (non-current assets - non-current liabilities).

Chairman's Letter for the Financial Year 2020/2021

Dear Shareholders,

Private Equity Holding AG (PEH) reports a comprehensive income of EUR 82.8 million for the financial year 2020/21. As of March 31, 2021, the net asset value per share stood at EUR 121.33 (CHF 134.20), representing an NAV increase of 37.5% (in EUR, 43.4% in CHF)* over the course of the financial year, marking an exceptional performance. The Board of Directors is particularly pleased to report such positive results in the extraordinary and challenging environment that has been prevailing for most of the reporting period.

The financial year started with increased levels of uncertainty, market turmoil in several asset classes and a resulting slowdown in private market activity, especially on the exit side. These dislocations in turn led to an increasing level of credit facility usage for PEH, which influenced the investment activity and liquidity management for the remainder of the year, with a focus on preserving liquidity.

Decelerated Investment Activity

PEH pursued a selective investment approach in the reporting period, completing three fund commitments, three Emerging Manager Program commitments and two direct co-investments.

The new fund commitments were made to Highland Europe IV, a leading growth fund focusing on technology startups in Europe, CIVC Partners VI, a US fund focused on business service companies, and to ALPHA CEE Opportunity V, focusing on special situation secondary and co-investment opportunities in CEE and Russia. Within the Emerging Manager Program, PEH made three commitments to promising fund managers active in venture capital. In addition, PEH completed a direct co-investment in OZON, a fast-growing e-commerce platform and one of the strongest brands on the Russian Internet, where PEH also has an indirect exposure through several fund positions. In November 2020, OZON went public on NYSE and made a significant contribution to PEH's performance in the second half of the financial year, both directly and indirectly.

Positive Share Price Performance

The performance has also been positive looking at the share price which advanced by 47% during the financial year (incl. dividend). Since PEH's share price troughed at CHF 42.60 in July 2020, it increased to CHF 74.00 on March 31, 2021 and, following the ad hoc release of the strong annual performance in early April, gained further momentum to CHF 80.00 at the time of writing. While a 47% year-on-year performance is a strong result, given the almost equally strong increase of the NAV per share, it was not enough for a significant narrowing of the discount between the share price and the NAV. The discount remains on high levels compared to long term averages and with this also on levels we continue to consider to be unjustified given the quality of the portfolio and the associated long-term prospects for NAV growth.

Consequently, towards the end of 2020 and for the remainder of the financial year, PEH increased its share buyback activity.

^* Including the dividend payment of CHF 1.00/EUR 0.94 per share paid in July 2020.

Strategic Continuity

The Board of Directors would like to highlight its focus on continuity. A solid balance sheet without longterm debt and an attractive investment portfolio that generates NAV growth and allows for dividend payments and share buybacks remain top priorities. We are confident that PEH's investment portfolio with its significant exposure to technology and healthcare/life sciences will continue to benefit from structural changes in the economy and provide for attractive long-term results.

Annual General Meeting 2021

The company's Annual General Meeting will take place on June 2, 2021. The Board of Directors proposes a dividend payment of CHF 2.00 per share, representing a dividend yield of approx. 2.50% based on the current share price around CHF 80.00. Further details can be found in the invitation to the AGM.

On behalf of the entire Board of Directors, I would like to thank you for your continued support and interest in PEH.

Yours sincerely

Dr. Hans Baumgartner Chairman of the Board of Directors May 10, 2021

Development of Net Asset Value and Share Price

Share Price and NAV per Share

01.01.2007 - 31.03.2021 (in EUR incl. distributions)

NAV per share in EUR:	121.33
NAV per share in CHF:	134.20
Share price in EUR:	66.90
Share price in CHF:	74.00
Premium/discount to NAV as of 31.03.2021:	-44.9%

Relative Performance of PEHN 01.01.2007 - 31.03.2021 (in EUR incl. distributions)

PEHN has outperformed the LPX-50 PE-Index by:	138.4%
PEHN has outperformed the MSCI World Index by:	52.2%

Allocation by Geography2

Allocation by Industry²

Portfolio Overview

Unfunded Commitments of the Portfolio by Vintage Year

10 Largest Exposures by Managers

1 Based on fair values plus unfunded commitments of portfolio holdings 2

Based on fair values of the underlying companies

Five Largest Exposures by Fair Value

representing 16.3% of the total fair value of PEH's investment portfolio

ALPHA CEE Opportunity IV

Fund Size:	EUR 144 million
Type	Special Situation
Industries	Various
Region	Eastern Europe
Fair Value:	EUR 11.3 million 3.6% of PEH Portfolio

Growth Fund II

Fund Size:	EUR 509 million
Type:	Venture/Growth
Industries:	Various
Region:	Europe
Fair Value:	EUR 10.9 million 3.4% of PEH Portfolio

Earnix

Type:	Direct Co-Investment
Industries:	IT/Software
Region:	Israel
Fair Value:	EUR 10.6 million 3.4% of PEH Portfolio

Eagletree IV

Fund Size:	USD 790 million
Type:	Buyout
Industries:	Various
Region:	North America
Fair Value:	EUR 9.9 million 3.1% of PEH Portfolio

Mid Europa Fund IV

Fund Size:	EUR 808 million
Type:	Buyout
Industries:	Various
Region:	Central & Eastern Europe
Fair Value:	EUR 8.9 million 2.8% of PEH Portfolio

Five Largest Exposures by Unfunded Commitment

representing 30.6% of the total unfunded commitments of PEH's investment portfolio

Sycamore III

Fund Size: USD 4.8 billion Type: Special Situation Industries: Consumer Region: North America Unfunded Commitment: EUR 5.7 million

7.0% of PEH Portfolio

Procuritas VI

Fund Size: EUR 311 million Type: Buyout Industries: Various Region: Europe Unfunded Commitment: EUR 5.1 million

6.3% of PEH Portfolio

Highland Europe IV

Fund Size:	EUR 700 million
Type:	Venture
Industries:	IT/Software
Region:	Europe
Unfunded Commitment:	EUR 5.0 million

Investindustrial VII

Fund Size:	USD 3.8 billion
Type:	Buyout
Industries:	Various
Region:	Europe
Unfunded Commitment:	EUR 4.5 million 5.6% of PEH Portfolio

Cinven VII

Fund Size:	EUR 10.0 billion
Type:	Buyout
Industries:	Various
Region:	Europe
Unfunded Commitment:	EUR 4.4 million

5.5% of PEH Portfolio

Selected Direct Investments

Investment date: 2020 Region: Russia

Fair Value: EUR 7.0 million Industry: Consumer

Ozon

Ozon is a fast-growing Russian online retailer and one of the leading Russian internet companies, offering more than 9 million products across more than 20 product categories. The company enjoys a prime brand recognition in Russia.

PEH invested in Ozon in October 2020 with the company going public on NYSE in November 2020. The Ozon share price jumped on the first day of trading and has continued to perform strongly. The company continues to benefit from its wide recognition and superior logistics capability with more than 40% of the Russian population covered by next day delivery. Ozon reported record sales growth for 2020 as the company is benefitting from the change in consumer behaviour to more online shopping, which has been further accelerated by the pandemic.

Fair Value:	EUR 8.1 million	Industry:	Consumer
Investment date: 2019		Region:	North America

DuPont Sustainable Solutions

Founded over 50 years ago as a business unit of Dupont Chemicals, DuPont Sustainable Solutions (DSS) is ranked first amongst 20 consulting firms in the Environmental, Health and Safety (EHS) industry, and boasts blue-chip clients in a variety of industries.

Most of the DSS business is less cyclical than other consulting practices as it addresses regulatory-driven activity. DSS is a global firm with a strong franchise in all of Asia, Europe and the Middle East.

The consequences of limited execution capability due to the first COVID-19 lockdown were smoothed out by timely cost management and the implementation of operational efficiency measures.

Selected Direct Investments (continued)

Fair Value: EUR 7.7 million Industry: Software

Investment date: 2018 Region: North America

Renaissance Learning

Renaissance is a leader in pre-K–12 learning analytics and its solutions facilitate the ability to analyse, customise, and plan personalise learning paths for students. Renaissance products are used in approximately one-third of U.S. schools and more than 70 countries worldwide.

Although COVID-19 has led to a shift in Renaissance's business mix with current demand for "in classroom" products decreasing, the "at home practice" products continue to demonstrate very strong momentum and the company's digital solutions are growing rapidly as digitally delivered assessments allow educators to store, and perform analytics on student data.

PEH has been an investor in Renaissance alongside Francisco Partners and participated in the financing of a complementary add on acquisition in 2021.

Fair Value: EUR 3.0 million Industry: Consumer Investment date: 2014 Region: Europe

Design Holding

PEH co-invested in premium Italian lighting company Flos in 2014 alongside Investindustrial. In 2018, Investindustrial created Design Holding, a global high-end design group. Design Holding consists of three complementary brands: the aforementioned Flos, Louis Poulsen, a leading Danish high end lighting company, and B&B Italia, a premier Italian high-end furniture company. In April 2021, Design Holding announced the acquisiton of YDesign, an online business with a leading position in the premium to high end lighting segment with focus on North America.

Although its B2B business is facing a challenging environment resulting in decreased demand for new constructions and refurbishment of hotels, restaurants and shops, the B2C segment's performance is driven by consumers reconsidering renovation and general home improvement spending during lockdown.

IFRS Financial Statements

Statement of Comprehensive Income	13
Balance Sheet	14
Statement of Changes in Equity	15
Statement of Cash Flows	16

Notes to the Financial Statements

1. Reporting entity 17
2. Basis of preparation 17
3. Significant accounting policies 17
4. Critical accounting estimates and judgments 21
5. Financial risk management 21
6. Cash and cash equivalents 25
7. Receivables and prepayments 25
8. Investments in non-consolidated subsidiaries at fair value through profit or loss and financial assets at fair value through profit or loss 26
9. Net gains/(losses) from investments in non-consolidated subsidiaries at fair value through profit or loss and from financial assets at fair value through profit or loss 30
10. Segment information 31
11. Disclosures about fair value of financial instruments 31
12. Financial assets and liabilities at amortised cost 33
13. Shareholders' equity and movements in treasury shares 34
14. Contingent liabilities and commitments 35
15. Related party transactions 36
16. Tax expenses 37
17. Subsequent events 37

Statement of Comprehensive Income

EUR 1,000	Notes	01.04.20- 31.03.21	01.04.19- 31.03.20
Income
Net gains from investments in non-consolidated subsidiaries at fair value through profit or loss	9	84,960	18,065
Net gains/(losses) from financial assets at fair value through profit or loss	9	(1,086)	(1)
Foreign exchange gains/(losses)		881	(1,134)
Interest income calculated using effective interest rate method		17	80
Total income		84,772	17,010

Expenses
Administration expenses	15	464	457
Corporate expenses		714	764
Total expenses		1,178	1,221
Profit/(loss) from operations		83,594	15,789
Interest expenses		(814)	(802)
Profit/(loss) for the period attributable to equity holders of the company		82,780	14,987

Other comprehensive income
Other comprehensive income for the period, net of income tax	—	—
Total comprehensive income/(loss) for the period attributable to equity holders of the company	82,780	14,987

	Notes	01.04.20- 31.03.21	01.04.19- 31.03.20
Basic earnings per share (EUR)	13	32.10	5.75
Diluted earnings per share (EUR)	13	32.10	5.75

Minor differences in totals are due to rounding.

Balance Sheet

EUR 1,000	Notes	31.03.21	31.03.20
Assets
Current assets
Cash and cash equivalents	6	218	20
Receivables and prepayments	7	112	94
Total current assets		330	114
Non-current assets
Investments in non-consolidated subsidiaries at fair value through profit or loss	8.1, 8.2	367,047	282,087
Financial assets at fair value through profit or loss	8.3	1,285	2,371
Interest bearing loans	12.1	—	1,950
Total non-current assets		368,332	286,408
Total assets		368,662	286,522
Liabilities and equity
Current liabilities
Payables and other accrued expenses		93	100
Short-term bank borrowings	12.2	5,878	14,609
Total current liabilities		5,971	14,709
Non-current liabilities
Interest bearing borrowings	12.2	54,622	41,147
Total non-current liabilities		54,622	41,147
Total liabilities		60,593	55,856
Equity
Share capital	13	10,311	10,311
Share premium		26,156	26,995
Treasury shares	13	(12,358)	(9,448)
Retained earnings		283,960	202,808
Total equity		308,069	230,666
Total liabilities and equity		368,662	286,522

	31.03.21	31.03.20
Total number of shares as of period end	2,750,000	2,750,000
Number of treasury shares as of period end	(210,872)	(155,689)
Number of shares outstanding as of period end	2,539,128	2,594,311
Net asset value per share (EUR)	121.33	88.91

Minor differences in totals are due to rounding.

Statement of Changes in Equity

EUR 1,000	Share capital	Share premium	Treasury shares	Retained earnings	Total equity
Opening as of 01.04.19	10,311	30,267	(8,894)	189,264	220,948
Profit/(loss) for the period	—	—	—	14,987	14,987
Total other comprehensive income for the period, net of income tax	—	—	—	—	—
Total comprehensive income for the period	—	—	—	14,987	14,987
Purchase of treasury shares	—	—	(686)	—	(686)
Sale of treasury shares	—	(17)	132	—	115
Repayment of share premium (paid-in-capital) 1	—	(3,255)	—	(1,443)	(4,698)
Total contributions by and distributions to owners of the Company	—	(3,272)	(554)	(1,443)	(5,269)
Total as of 31.03.20	10,311	26,995	(9,448)	202,808	230,666

Opening as of 01.04.20	10,311	26,995	(9,448)	202,808	230,666
Profit/(loss) for the period	—	—	—	82,780	82,780
Total other comprehensive income for the period, net of income tax	—	—	—	—	—
Total comprehensive income for the period	—	—	—	82,780	82,780
Purchase of treasury shares	—	—	(3,056)	—	(3,056)
Sale of treasury shares	—	(30)	146	—	116
Distribution to shareholders 2	—	(809)	—	(1,628)	(2,437)
Total contributions by and distributions to owners of the Company	—	(839)	(2,910)	(1,628)	(5,377)
Total as of 31.03.21	10,311	26,156	(12,358)	283,960	308,069

Minor differences in totals are due to rounding.

¹ The Annual General Meeting held on July 11, 2019 decided on a repayment of share premium (paid-in capital) in the amount of CHF 2.00 per outstanding share (no repayment of share premium (paid-in capital) was made on treasury shares). The repayment of share premium (paid-in capital) was made with value date July 17, 2019.

2 The Annual General Meeting held on June 30, 2020 decided on a distribution to shareholders in the amount of CHF 1.00 per outstanding share, which was paid from share premium and retained earnings. No distribution was made on treasury shares. The distribution was made with value date July 8, 2020.

Statement of Cash Flows

Notes EUR 1,000	01.04.20- 31.03.21	01.04.19- 31.03.20
Cash flow from operating activities
Interest bearing loans	1,810	(80)
Interest received on interest bearing loans	17	80
Administration expenses paid	(464)	(457)
Corporate expenses paid	(525)	(582)
Transaction expenses paid	(4)	(4)
Net adjustments for other assets and liabilities	6	(80)
Net cash (used)/provided by operating activities	840	(1,123)
Cash flow from financing activities
Proceeds/(Repayments) from interest bearing borrowings	14,360	(7,363)
Proceeds/(Repayments) from short-term bank borrowings	(8,611)	14,560
Interest paid on interest bearing borrowings	(626)	(687)
Interest paid on short-term bank borrowings	(188)	(115)
Commitment fee on borrowings	(186)	(178)
Purchase of treasury shares	(3,081)	(713)
Sale of treasury shares	116	115
Repayment of share premium (paid-in-capital)	—	(4,698)
Distribution to shareholders	(2,437)	—
Net cash (used)/provided by financing activities	(653)	921
Net increase/(decrease) in cash and cash equivalents	187	(202)
Cash and cash equivalents at the beginning of the period	20	215
Effects of exchange rate changes on cash and cash equivalents	11	7
Cash and cash equivalents at the end of the period	218	20

Minor differences in totals are due to rounding.

Notes to the Financial Statements

1. Reporting entity

Private Equity Holding AG (the "Company") is a stock company incorporated under Swiss law with registered address at Gotthardstrasse 28, 6302 Zug, Switzerland. The business activity of the Company is mainly conducted through investing the Company's assets directly and indirectly through its Cayman Islands non-consolidated subsidiaries (together referred to as the "Group").

The Company controls 100% of the voting rights and ownership interests in Private Equity Fund Finance Ltd. and Private Equity Direct Finance Ltd. (the "Subsidiaries"). The non-consolidated Subsidiaries are incorporated in the Cayman Islands.

The business activity of the Company is the purchase, holding and disposal of investments held in private equity funds and directly in companies with above-average growth potential. The Board of Directors has appointed one of its members as the Board's Delegate (the "Delegate"), who is responsible for managing the day-to-day business of the Company. ALPHA Associates (Cayman) LP, Cayman Islands, and ALPHA Associates AG, Zurich (together "ALPHA Group" or the "Investment Manager"), act as investment manager and investment adviser, respectively and provide certain support services to the Company. See also Note 15.

As of March 31, 2021, the Company had no employees (March 31, 2020: no employees).

The accompanying notes are an integral part of these financial statements.

2. Basis of preparation

a) Statement of compliance

The financial statements of the Company as at and for the year ended March 31, 2021 have been prepared in accordance with International Financial Reporting Standards ("IFRS"). They comply with Swiss law and Article 14 of the Directive on Financial Reporting issued by the SIX Swiss Exchange.

These financial statements were authorised for issue by the Board of Directors on May 10, 2021.

b) Basis of measurement

The financial statements have been prepared on the historical cost basis except for financial assets at fair value through profit or loss ("FVTPL") and investments in non-consolidated subsidiaries, which are measured at fair value.

c) Functional and presentation currency

These financial statements are presented in EUR, which is the Company's functional currency.

The Board of Directors considers the EUR the currency that most faithfully represents the economic effect of the underlying transactions, events and conditions. The EUR is the currency in which the Company measures its performance and reports its results. This determination also considers the competitive environment in which the Company is compared to other investment products.

3. Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these financial statements.

a) Foreign currency

Transactions in foreign currencies are translated into EUR at the exchange rate at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated into EUR at the exchange rate at that date.

Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated into EUR at the exchange rate at the date that the fair value was determined.

Foreign currency differences arising on retranslation are recognised in profit or loss as net foreign exchange gain/ (loss), except for those arising on financial assets at FVTPL, which are recognised as a component of net gain/(loss) from financial assets at FVTPL and investments in non-consolidated subsidiaries at FVTPL.

The following currency exchange rates were applied as of March 31, 2021 and March 31, 2020 for the retranslation of monetary assets and liabilities into EUR:

Currency	31.03.21	31.03.20
EUR/USD	1.1736	1.1001
EUR/CHF	1.1061	1.0602
EUR/GBP	0.8519	0.8839

b) Financial assets and financial liabilities

IFRS 9 - Financial instruments ("IFRS 9") addresses the classification, measurement and (de)recognition of financial assets and liabilities. The Company has classified its financial assets and subsequent measurements at either amortised cost, at FVTPL or at fair value through other comprehensive income ("FVOCI") on the basis of the Company's business model for managing the financial assets and the contractual cash flow characteristics of the financial assets.

Recognition and initial measurement

Financial assets and liabilities at FVTPL are recognised initially on the trade date, which is the date that the Company becomes a party to the contractual provisions of the instrument. Other financial assets and liabilities are recognised on the date they are originated.

Financial assets and liabilities at FVTPL are recognised initially at fair value, with transaction costs recognised in profit or loss. Financial assets or liabilities not at FVTPL are recognised initially at fair value plus transaction costs that are directly attributable to their acquisition or issue.

Classification

The Company classifies financial assets and financial liabilities into the following categories:

Fair value through profit or loss:

• Investments in non-consolidated subsidiaries at FVTPL;
• Financial assets at FVTPL.

Financial assets at amortised cost:

• Cash and cash equivalents;
• Receivables;
• Interest bearing loans.

Financial liabilities at amortised cost:

• Other liabilities Short term bank borrowings;
• Other liabilities Accrued expenses;
• Other liabilities Interest bearing borrowings;
• Other liabilities Payables.

Amortised cost measurement

The amortised cost of a financial asset or liability is the amount at which the financial asset or liability is measured at initial recognition, minus principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference between the initial amount recognised and the maturity amount, minus any reduction for impairment.

Impairment

Loss allowances for ECLs on cash and cash equivalents and receivables have been measured on a 12-month expected loss basis and reflect the short maturities of the exposures. The Company considers that these exposures have low credit risk when the external credit ratings of the counterparties is equivalent to the globally understood definition of 'investment grade'. The Company monitors changes in credit risk on these exposures by regularly tracking published external credit ratings of the counterparties.

The Company's interest bearing loans are granted to non-consolidated subsidiaries. Since the subsidiaries fulfil the requirement to have a strong capacity to meet the contractual cash flow obligation, the loans are considered low credit risk and a 12-months ECL is applied.

The economic impacts of COVID-19 do not materially influence the low credit risk assumption for cash and cash equivalents, receivables and interest bearing loans. There were no changes of external credit rating of the counterparties in the reporting period.

Credit risk is deemed low in the cases where the counterparty has a strong capacity to meet its contractual cash flow obligation in the near term.

The Company assumes that the credit risk has increased significantly if a financial asset is more than 30 days past due. A financial asset is assumed credit-impaired if there is evidence for events with a detrimental impact on the estimated future cash flow, for example:

• Significant financial difficulty of the borrower;
• Financial asset is more than 90 days past due;
• It is probable that the borrower will enter bankruptcy.

Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets. As of March 31, 2021, there is no material expected credit loss.

Fair value measurement

IFRS 13 – Fair Value Measurement ("IFRS 13") defines the fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal, or in its absence, the most advantageous market to which the Company has access at that date.

(i) Quoted direct investments

The fair value of quoted direct investments is determined by reference to their quoted market prices, defined as the "bid" price on the principal securities exchange or market on which such investments are traded as of close of business on the valuation date, or in the absence thereof, the last available price quotation from such exchange or market.

(ii) Unquoted direct investments and loans

In estimating the fair value of unquoted direct investments, the Company considers the most appropriate valuation techniques using a maximum of observable inputs, including but not limited to the following:

• Comparable company valuation multiples;
• Discounted cash flow method;
• Recent transaction price paid for an identical or a similar instrument in an investment (including subsequent financing rounds) to the extent that at each measurement date assessment is made whether changes or events subsequent to the transaction date would imply a fair value change of the investment;
• NAV reported by the lead investor or other investors which were determined in accordance with IFRS 13.

(iii) Unquoted fund investments (primary)

The valuation method used for unquoted fund investments is the "adjusted net asset method". The valuation is generally based on the latest available net asset value ("NAV") of the fund reported by the corresponding fund manager provided that the NAV has been appropriately determined by using proper fair value principles in accordance with IFRS 13. In terms of IFRS 13, the NAV is considered as the key unobservable input. In general, NAV is adjusted by capital calls and distributions falling between the date of the latest NAV of the fund and the reporting date of the Company ("rolled fair value").

The valuations of listed underlying investee companies which are valued mark-to-market by the fund manager are adjusted to reflect the current share price on their primary stock exchange as of the reporting date of the Company. The adjusted net asset method is the single technique used across all fund investment types (Buyout, Venture, Special Situations). Other reasons for adjustments include but are not limited to the following:

• The Company becoming aware of subsequent changes in the fair values of underlying investee companies as of the reporting period;
• Features of the fund agreement that might affect distributions;
• Inappropriate recognition of potential carried interest;
• Market changes or economic conditions changing to impact the value of the fund's portfolio as of the reporting period;
• Materially different valuations by fund managers for common companies and identical securities;
• NAV reported by the fund has not been appropriately determined by using proper fair value principles in accordance with IFRS 13.

(iv) Unquoted fund investments (secondary)

At the time of a secondary deal, the same investment might already be held in any of the portfolios of the entities managed by General Partner. Subsequent measurement shall be using the same fair value information as the one obtained for the primary transaction or direct investment. Should it be a first deal or investment, then it shall be kept at cost at the first measurement date.

In addition, the Company has the following control procedures in place to evaluate whether the NAV of the underlying fund investments is calculated in a manner consistent with IFRS 13:

• Thorough initial due diligence process and ongoing monitoring procedures;
• Comparison of historical realisations to last reported fair values;
• Retrospective comparison of rolled fair values to actual audited fair values (backtesting);
• Qualifications, if any, in the auditor's report or whether there is a history of significant adjustments to NAV reported by the fund manager as a result of its annual audit or otherwise.

Derecognition

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all the risks and rewards of ownership and does not retain control of the financial asset. Any interest on such transferred financial assets that is created or retained by the Company is recognised as a separate asset or liability.

On derecognition of a financial asset, the difference between the carrying amount of the asset (or the carrying amount allocated to the portion of the asset derecognised), and consideration received (including any new asset obtained less any new liability assumed) is recognised in profit or loss.

The Company derecognises a financial liability when its contractual obligations are discharged, cancelled or expired.

c) Net gains/(losses) from investments in non-consolidated subsidiaries at fair value through profit or loss and from financial assets at fair value through profit or loss

Net gains/(losses) from investments in non-consolidated subsidiaries at FVTPL and from financial assets at FVTPL includes all realised and unrealised fair value changes, dividends and interest income from investments and foreign exchange differences.

Interest and dividend income from investments is included in "Net gains/(losses) from investments in nonconsolidated subsidiaries at fair value through profit or loss and from financial assets at fair value through profit or loss" (see Note 9).

d) Interest income calculated using effective interest rate method and other incomes

Interest income and expenses are recognised in profit or loss, using the effective interest method.

Dividend income is recognised in profit or loss on the date that the right to receive payment is established.

e) Administration expenses, corporate and transaction expenses

Administration expenses, corporate and transaction expenses are recognised in profit or loss as the related services are performed.

f) Income taxes

With the introduction of the new corporate tax law as of January 1, 2020, tax privileges for holding companies in the Canton of Zug have been abolished. As a consequence, income is no longer exempt from taxation at the cantonal and communal level but subject to ordinary taxation. Therefore, income tax at an effective corporate income tax rate of 11.91% is levied across all levels (including Swiss federal taxes). However, dividend income qualifies for the participation exemption if the related investment represents at least 10% of the other company's share capital or has a value of not less than CHF 1 million. The participation exemption is extended to capital gains on the sale of a substantial investment in non-consolidated Subsidiaries (i.e., at least 10%), which was held for a minimum holding period of one year and in case the sales price of the participation exceeds its original acquisition cost. The result of the participation exemption pursuant to the aforementioned requirements is that dividend income and capital gains (except recovered depreciations) are almost fully exempt from taxation across all levels.

g) New standards and interpretations

A number of new standards, amendments to standards and interpretations are effective for annual periods beginning on or after January 1, 2020, and have been applied in preparing these financial statements.

New standards and interpretations effective from January 1, 2020

Standards, amendments and interpretations that have been adopted by the Company for the year ended March 31, 2021 are:

• Amendments to IAS 1 and IAS 8 Definition of material. The amendments are intended to make the definition of material in IAS 1 easier to understand and are not intended to alter the underlying concept of materiality in IFRS standards. The concept of "obscuring" material information with immaterial information has been included as part of the new definition. The threshold for materiality influencing users has been changed from "could influence" to "could reasonably be expected to influence". The definition of material in IAS 8 has been replaced by a reference to the definition of material in IAS 1. The amendments are applied prospectively for annual periods beginning on or after January 1, 2020.
• Amendments to References to the Conceptual Framework in IFRS Standards enhances the fundamental qualitative characteristics (relevance and faithful representation) and the enhancing qualitative characteristics (comparability, verifiability, timeliness, and understandability) of useful financial information. It also introduces a separate definition of an economic resource to move the references to future flows of economic benefits out of the definitions of an asset and a liability. Amendments, where they are updates, are effective for annual periods beginning on or after January 1, 2020.
• Amendment to IFRS 16 COVID-19 Related Rent Concessions. The amendment permits lessees, as a practical expedient, not to assess whether particular rent concessions occurring as a direct consequence of the COVID-19 pandemic are lease modifications and instead to account for those rent concessions as if they are not lease modifications. Period of application is set from June 1, 2020 to May 31, 2021.

There are no other standards, amendments to standards or interpretations that are effective for annual periods beginning on January 1, 2020 that have a material effect on the financial statements of the Company.

New standards, amendments and interpretations that are not yet effective and might be relevant for the Company

Amendment to IFRS 9 – Financial Instruments, IFRS 16 - Lease and IFRS 7 – Financial Instruments: Disclosure as a result of the Interest Rate Benchmark Reform – Phase 2. For the Financial Instruments, the change in the basis for determining the contractual cash flows is required if (i) it is a direct consequence of the reform, and (ii) the new basis is economically equivalent to the former basis. If the modification does not result in a de-recognition but result in a gain or loss from the reassessment of carrying value, modification gain or loss is to be recognised in profit or loss. Regarding the Lease, when remeasuring the lease liability, the Company will use the revised discount rate that reflects the change in interest rate. Consequently, there is a requirement to make additional disclosure in the financial statements about the process itself and the transition, the nature and the extent of the risks connected to the change in the benchmark rate and how the Company manages. The amendments are applied for annual periods beginning on or after January 1, 2021. Earlier application is permitted but not applied by the Company.

Of those standards, amendments and interpretations not yet effective, none is expected to have a significant impact on the Company's financial statement in the period of initial application.

4. Critical accounting estimates and judgments

The preparation of the financial statements in accordance with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

4.1 Critical accounting estimates and assumptions

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are outlined below. These judgements and estimates have not materially changed despite the COVID-19 pandemic and its impact on the current economic situation. Particularly, the COVID-19 pandemic and the related measures taken did not materially affect the Company's business model and the low credit risk assumption for cash and cash equivalents, receivables and interest bearing loans. There were no changes of external credit ratings of the counterparties in the reporting period.

The fair values assigned to financial assets at FVTPL and the investments in non-consolidated subsidiaries at FVTPL are based upon available information and do not necessarily represent amounts which might ultimately be realised. Because of the inherent uncertainty of valuation, these estimated fair values may differ significantly from the values that would have been used had a ready market for the financial assets at FVTPL and the investments in nonconsolidated subsidiaries at FVTPL existed, and those differences could be material.

4.2 Critical judgements

The Company's subsidiaries meet the definition of an investment entity according to IFRS 10 "Consolidated Financial Statements". The decision whether to consolidate the subsidiaries requires judgement as to whether these meet the definition of an investment entity as defined under IFRS 10 and provide investment services in relation to the activities of the Company. Both subsidiaries were formed for a single investor (the Company, a related party) that represents the interests of a wider group of investors. Furthermore, both subsidiaries' primary objective is the provision of investment related services to the Company, both are investing in a wide range of investments measured at fair value, diversifying risks and maximising returns. Since the subsidiaries and the Company qualify individually as investment entity, it was concluded that they are exempt from consolidation.

5. Financial risk management

5.1 Introduction and overview

The Company manages its risk on a Group level by looking through its non-consolidated Subsidiaries. This holistic approach is necessary in order to identify and manage risks appropriately. The Group has exposures to the following risks from financial instruments: market risk (including equity price risk, interest rate risk, currency risk), credit risk and liquidity risk. The Group's overall risk management process focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects of the Company's financial performance.

The Board of Directors, the Delegate and the Investment Manager attribute great importance to professional risk management, beginning with careful diversification, the sourcing of access to premier private equity investment opportunities, proper understanding and negotiation of appropriate terms and conditions and active monitoring including ongoing interviews with fund managers, thorough analysis of reports and financial statements and ongoing review of investments made. It is also key to structure the proper investment vehicles for the portfolio taking into account issues such as liquidity or tax related issues. The Group has investment guidelines that set out its overall business strategies, its tolerance for risk and its general risk management philosophy and has established processes to monitor and control the economic impact of these risks. The Investment Manager provides the Board of Directors with recommendations as to the Group's asset allocation and annual investment level that are consistent with the Group's objectives. The Board of Directors reviews and agrees policies for managing each of these risks as summarised below.

The COVID-19 pandemic had no adverse impact on the Company's liquidity risk, credit risk or interest rate risk in the current financial year. In terms of market risk, the assumption of a 10% negative scenario in the fair value sensitivity analysis as of March 31, 2020, proved to be quite accurate in the first quarter of the financial year and is applied again for the sensitivity analysis as of March 31, 2021 (refer to note 11).

5.2 Market risk

Market risk is the risk that changes in market prices, such as equity prices, foreign exchange rates and interest rates will affect the Group's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return on risk.

a) Equity price risk on non-current assets

The Group invests in financial assets to take advantage of their long-term growth. All investments present a risk of loss of capital. The Investment Manager moderates the risk through a careful selection of financial assets within specified limits. All of the companies in which the Group and its investee funds invest are subject to the risks inherent in their industries. Moreover, established markets do not exist for these holdings, and, therefore, they are considered illiquid (excluding listed direct investments).

The Group also invests a significant proportion of its assets in high-technology and biotechnology companies and funds, which represents a concentration of risk in two highly volatile industries. The Group attempts to minimise such risks by engaging in extensive investment due diligence and close monitoring.

If the value of the investments based on period-end values had increased or decreased by 25.9% (5-year average performance of the LPX 50 Total Return Index, whereby annual returns are all in absolute values) with all other variables held constant, the impact on the financial statements would have been EUR 82.0 million (2019/2020: 5-year average of 11.3%, EUR 27.8 million).

The LPX 50 Total Return Index is widely used in the private equity industry and serves as a relevant performance benchmark. However, the Company is exposed to a variety of market risk factors, which may change significantly over time. As a result, measurement of such risk exposure at any given point in time may be difficult given the complexity and limited transparency of the underlying investments.

b) Interest rate risk

If interest rates had changed by 100 basis points with all other variables held constant as of March 31, 2021, the increase or decrease to profit or loss would amount to approximately EUR 0.5 million (March 31, 2020: EUR 0.4 million). The Company may also be indirectly affected by the impact of interest rate changes on the earnings of certain companies in which the Company or its non-consolidated Subsidiaries invest, and the impact on the valuation that uses interest rates as an input in the valuation model, such as the discounted cash flow models used in the valuation of unlisted investments. Therefore, the above sensitivity analysis may not indicate the total effect on the Company from future movements in interest rates.

c) Currency risk

The Group holds assets and liabilities denominated in currencies other than its functional currency, which expose the Group to the risk that the exchange rate of those currencies against the EUR will change in a manner which adversely impacts the Group's net income and equity. Foreign exchange differences on financial assets at FVTPL are included in the line item "Net gains/(losses) from financial assets at fair value through profit or loss" in the statement of comprehensive income. The following tables summarise the Company's exposure to currency risks:

Currency risk as of March 31, 2021

	USD 1,000	CHF 1,000	GBP 1,000
Assets
Cash and cash equivalents	29	150	1
Receivables	11	38	—
Total assets	40	188	1
Liabilities
Payables and other accrued expenses	—	113	—
Short-term bank borrowings	1,500	—	—
Interest bearing borrowings	(3,199)	28,444	—
Total liabilities	(1,699)	28,557	—
Net exposure in accordance with IFRS	1,739	(28,369)	1
Currency risk exposure of non-consolidated subsidiaries at fair value through profit or loss	201,779	29,609	15,467
Net exposure in accordance with the reporting to the Board of Directors	203,518	1,240	15,468

Currency risk as of March 31, 2020

	USD 1,000	CHF 1,000	GBP 1,000
Cash and cash equivalents	20	1	1
Interest bearing loans	2,145	—	—
Receivables	11	13	—
Total assets	2,176	14	1
Liabilities
Payables and other accrued expenses	—	129	—
Short-term bank borrowings	8,700	—	—
Interest bearing borrowings	(9,517)	22,748	—
Total liabilities	(817)	22,877	—
Net exposure in accordance with IFRS	2,993	(22,863)	1
Currency risk exposure of non-consolidated subsidiaries at fair value through profit or loss	140,901	25,058	13,979
Net exposure in accordance with the reporting to the Board of Directors	143,894	2,195	13,980

As of March 31, 2021, had the exchange rate between the EUR/USD increased or decreased by 6.7% (change in EUR/ USD rate between April 1, 2020 and March 31, 2021) with all other variables held constant, the increase or decrease to profit or loss would have amounted to EUR 0.1 million (2019/2020: 2.0%, EUR 0.1 million (excluding currency risk on the underlying investment portfolio)). Including the currency risk on the underlying investment portfolio, the increase or decrease to profit or loss would amount to EUR 11.6 million (2019/2020: 2.0%, EUR 2.6 million).

As of March 31, 2021, had the exchange rate between the EUR/CHF increased or decreased by 4.3% (change in EUR/ CHF rate between April 1, 2020 and March 31, 2021) with all other variables held constant, the increase or decrease to profit or loss would have amounted to EUR 1.1 million (2019/2020: 5.1%, EUR 1.1 million (excluding currency risk on the underlying investment portfolio)). Including the currency risk on the underlying investment portfolio, the increase or decrease to profit or loss would amount to EUR 48k (2019/2020: 5.1%, EUR 0.1 million).

As of March 31, 2021, had the exchange rate between the EUR/GBP increased or decreased by 3.6% (change in EUR/ GBP rate between April 1, 2020 and March 31, 2021) with all other variables held constant, the increase or decrease to profit or loss would have amounted to nil (2019/2020: 2.5%, nil (excluding currency risk on the underlying investment portfolio)). Including the currency risk on the underlying investment portfolio, the increase or decrease to profit or loss would amount to EUR 0.7 million (2019/2020: 2.5%, EUR 0.4 million).

The Investment Manager monitors the Group's currency position on a monthly basis and reports the currency exposures on the balance sheet and the impact of the currency movements on the performance of the long-term investment portfolio to the Board of Directors monthly. The non-current financial assets at FVTPL and the investments in non-consolidated subsidiaries at FVTPL have therefore been included in the above analysis of March 31, 2021 and March 31, 2020 and will be included going forward.

5.3 Credit risk on current assets

The Group takes on exposure to credit risk which is the risk that a counterparty will be unable to pay amounts in full when due resulting in a loss for the Group. Impairment allowances are provided for losses that have been incurred by the balance sheet date, if any. The schedules below summarise the Group's exposure to credit risk.

In accordance with the Group's policy, the Investment Manager monitors the Group's credit position on a monthly basis and the Board of Directors reviews it on a regular basis.

Credit risk as of March 31, 2021

EUR 1,000	PEH fully performing	Subsidiaries fully performing	Total	Rating (Fitch)
Cash at Credit Suisse (Switzerland) AG	218	2,190	2,408	A+
Receivables 1	—	2,144	2,144	n/a
Total exposure to credit risk	218	4,334	4,552

Credit risk as of March 31, 2020

EUR 1,000	PEH fully performing	Subsidiaries fully performing	Total	Rating (Fitch)
Cash at Credit Suisse (Switzerland) AG	20	228	248	A
Receivables 1	—	387	387	n/a
Interest bearing loans	1,950	—	1,950	n/a
Total exposure to credit risk	1,970	615	2,585

1 Excludes tax receivables and prepaid expenses.

No financial assets carried at amortised cost were past due or impaired either at March 31, 2021 or March 31, 2020.

5.4 Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting obligations arising from its financial liabilities that are settled by delivering cash or another financial asset, or that such obligations will have to be settled in a manner disadvantageous to the Group. The Group's policy and the Investment Manager's approach to managing liquidity is to have sufficient liquidity to meet its liabilities, including estimated capital calls, without incurring undue losses or risking damage to the Group's reputation.

Unfunded commitments are irrevocable and can exceed cash and cash equivalents available to the Group. Based on current short-term cash flow projections and barring unforeseen events, the Group expects to be able to honor all capital calls.

As of March 31, 2021, cash and cash equivalents of the Company amount to EUR 0.2 million, plus the cash holdings of the non-consolidated Subsidiaries at FVTPL of EUR 2.2 million (March 31, 2020: EUR 20k plus EUR 228k). In addition, the Company has access to a EUR 30.0 million credit facility (see also Note 12) which provides for an additional liquidity buffer. As of March 31, 2021, the credit facility was drawn EUR 5.9 million (March 31, 2020: EUR 14.6 million).

The Company's non-consolidated Subsidiaries at FVTPL are exposed to a total undrawn amount in respect of commitments made on or before March 31, 2021 in the amount of EUR 80.8 million (March 31, 2020: EUR 95.5 million). Unfunded commitments are irrevocable and may be called at any time. Although not expected in the normal course of business, a significant percentage of the unfunded commitments may be due within less than one month. The Company does not have a direct obligation to meet the commitments, however is indirectly exposed to drawdowns, as if they are not met, then the Company would indirectly suffer the respective financial consequences to which the non-consolidated Subsidiaries at FVTPL would be exposed to.

The majority of the investments which the Group makes are unquoted and subject to specific restrictions on transferability and disposal. Consequently, the risk exists that the Group might not be able to readily dispose of its holdings in such markets or investments when it chooses and also that the price attained on a disposal is below the amount at which such investments are included in the Group's balance sheet.

The schedule below analyses the Group's financial liabilities based on the remaining period at the balance sheet date to the contractual maturity date. The amounts in the schedule are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying amounts, as the impact of discounting is not significant. In accordance with the Group's policy, the Investment Manager monitors the Group's liquidity position on a daily basis, and the Board of Directors reviews it on a regular basis. The Company's standalone liquidity risk is as follows:

Liquidity risk as of March 31, 2021

EUR 1,000	Less than 1 month	1-3 months	3-12 months	More than 12 months	No stated maturity	Total
Payables and other accrued expenses	—	93	—	—	—	93
Short-term bank borrowings	5,878	—	—	—	—	5,878
Interest bearing borrowings	—	—	—	54,622	—	54,622
Total liabilities (on balance sheet) PEH	—	93	—	60,500	—	60,593
Unfunded commitments of the non-consolidated subsidiaries at fair value through profit or loss (off balance sheet)	80,827	—	—	—	—	80,827
Total liabilities of the Group (incl. off balance sheet)	80,827	7,274	—	5,878	—	93,979

Liquidity risk as of March 31, 2020

EUR 1,000	Less than 1 month	1-3 months	3-12 months	More than 12 months	No stated maturity	Total
Payables and other accrued expenses	—	100	—	—	—	100
Short-term bank borrowings	14,609	—	—	—	—	14,609
Interest bearing borrowings	—	—	—	41,147	—	41,147
Total liabilities (on balance sheet) PEH	—	100	—	55,756	—	55,856
Unfunded commitments of the non-consolidated subsidiaries at fair value through profit or loss (off balance sheet)	95,478	—	—	—	—	95,478
Total liabilities of the Group (incl. off balance sheet)	95,478	1,090	—	14,609	—	111,177

The effect of discounting is not material.

Unfunded commitments are irrevocable and may be called at any time. Although not expected in the normal course of business, unfunded commitments are categorised as due within one month.

5.5 Capital management

In terms of capital management, the Company considers the equity of the holding company as described in Note 13. The Company's objectives when managing capital are to safeguard the entity's ability to continue as a going concern and to achieve positive returns in all market environments. The Company sets the amount of capital in proportion to risk. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may return capital to shareholders through tax efficient repayments of paid-in capital, share capital reductions or repurchases and cancellation of own shares.

The effects of the repurchases and resales of treasury shares as a result of market making activities in 2020/2021 are listed in Note 13. Helvetische Bank AG, Zurich, acts as the Company's market maker.

Neither the Company nor any of its Subsidiaries are subject to externally imposed capital requirements.

6. Cash and cash equivalents

Cash and cash equivalents comprise deposits with banks and highly liquid financial assets with original maturities of three months or less that are subject to an insignificant risk of changes in their fair value.

As of March 31, 2021, cash and cash equivalents are freely available.

7. Receivables and prepayments

EUR 1,000	31.03.21	31.03.20
Accrued income and prepaid expenses	95	57
Tax receivables	17	37
Total receivables and prepayments	112	94

8. Investments in non-consolidated subsidiaries at fair value through profit or loss and financial assets at fair value through profit or loss

8.1 Investments in non-consolidated subsidiaries at fair value through profit or loss

	Percentage of capital held	Original currency	Nominal value 1,000	Book value 31.03.21 EUR 1,000	Book value 31.03.20 EUR 1,000
Investments in non-consolidated subsidiaries at fair value through profit or loss
Private Equity Fund Finance Ltd., Cayman Islands (Investment company)	100%	CHF	13,885	325,369	252,958
Private Equity Direct Finance Ltd., Cayman Islands (Investment company)	100%	CHF	200,000	41,678	29,129
Total				367,047	282,087

	Private Equity Fund Finance Ltd.	Private Equity Direct Finance Ltd.	Total
Fund investments	254,052	—	254,052
Direct investments	17,800	43,420	61,220
Other balance sheet items	53,517	(1,742)	51,775
Book value 31.03.21	325,369	41,678	367,047

	Private Equity Fund Finance Ltd.	Private Equity Direct Finance Ltd.	Total
Fund investments	201,719	—	201,719
Direct investments	4,854	36,691	41,545
Other balance sheet items	46,385	(7,562)	38,823
Book value 31.03.20	252,958	29,129	282,087

The functional currency of the non-consolidated subsidiaries at fair value through profit or loss is EUR.

Investments held by the non-consolidated subsidiaries

The Company, predominantly through its non-consolidated subsidiaries, invests in private equity fund investments and in direct co-investments, respectively. The following tables provide details as to such investments, as required by the SIX exchange listing rules.

	Commitments				Book values
	Vintage	Original fund currency	Original amount FC 1,000	Paid in 31.03.21 FC 1,000	Unfunded commitment 31.03.21 EUR 1,000	Fair value 31.03.20 EUR 1,000	Fair value 31.03.21 EUR 1,000
Buyout Funds
ABRY Heritage Partners 3	2016	USD	5,600	4,533	909	2,153	3,112
ABRY Partners IX	2019	USD	8,571	4,720	3,282	2,381	3,988
ABRY Partners VI 3	2008	USD	7,500	7,481	16	139	115
ABRY Partners VII 3	2011	USD	7,500	8,071	6	2,320	2,136
ABRY Partners VIII 3	2014	USD	9,375	10,049	—	7,320	5,294
ALPHA CEE II 2	2006	EUR	15,000	14,163	837	3,449	4,528
Avista Capital Partners	2006	USD	10,000	11,761	—	174	—
Avista Capital Partners II 3	2008	USD	10,000	13,122	—	1,029	704
Avista Capital Partners III 3	2011	USD	10,000	11,459	—	108	73
Avista Capital Partners IV 3	2017	USD	5,000	5,270	—	3,770	6,510
Bi-Invest Endowment Fund	2014	EUR	5,000	5,000	—	7,678	8,284
Bridgepoint Europe IV 3	2008	EUR	10,000	10,451	—	1,985	1,994
Capvis Equity III 3	2008	EUR	10,000	10,857	545	3,943	2,684
Cinven VII	2019	EUR	5,000	551	4,449	(13)	550
CIVC VI	2021	USD	5,000	—	4,260	—	—
Clayton, Dubilier and Rice Fund VI 1	1998	USD	35,000	9,661	—	5	4
Eagletree Partners III 3	2012	USD	10,000	10,761	—	4,287	3,899
Eagletree Partners IV 3	2015	USD	10,000	10,060	—	8,879	14,232
Industri Kapital 2007 Fund 3	2007	EUR	10,000	10,427	—	104	14
Investindustrial IV 3	2008	EUR	10,000	10,917	—	4,468	3,401
Investindustrial V 3	2012	EUR	5,000	5,822	—	3,989	3,732
Investindustrial VI 3	2016	EUR	5,000	4,599	401	4,082	5,434
Investindustrial VII 3	2019	EUR	5,000	486	4,530	292	303
Mid Europa Fund IV 3	2014	EUR	10,000	10,411	—	10,828	13,033
Mid Europa Fund V	2018	EUR	5,000	1,560	3,440	501	1,352
Palamon ECP 1	1999	EUR	10,000	7,755	—	—	—
Pollen Street Capital III	2016	GBP	9,000	8,809	224	9,717	11,223
Procuritas Capital Investors VI 3	2016	EUR	10,000	4,915	5,085	3,375	3,808
TA Associates XIII	2019	USD	5,000	3,413	1,361	646	2,915
Warburg Pincus China-Southeast Asia II	2019	USD	5,000	870	3,519	134	714
Warburg Pincus Private Equity X	2007	USD	15,000	15,263	14	3,203	1,089
Warburg Pincus Private Equity XII	2015	USD	6,000	5,919	69	6,013	6,000
Total Buyout Funds					32,947	96,960	111,125

Minor differences in totals are due to rounding.

² Funds managed by ALPHA Associates (Cayman) LP. These funds are excluded from the NAV for the purpose of calculating the management fee.

• ³ Along with the unfunded commitments, distributions in the total amount of EUR 16.1 million (whereof Eagletree Partners IV accounts for EUR 2.3 million, Procuritas Capital Investors VI accounts for EUR 1.3 million and Pollen Street Capital III accounts for EUR 1.3 million) are recallable from these funds as of March 31, 2021. As the investment period of most of these funds has already expired, recallable distributions can in general only be recycled for follow-on investments and are therefore not expected to be drawn in full.
• ⁴ Remaining commitment was reduced by the fund manager.
• ⁵ As of March 31, 2021, the EMP portfolio (Emerging Managers Program) consists of nine underlying venture capital funds with vintage years 2018, 2019 and 2020. Five of these funds are denominated in USD (total original amount: USD 6.0 million; total amount paid-in as of March 31, 2021: USD 3.0 million), and the other four are denominated in GBP (total original amount: GBP 2.6 million; total amount paid-in as of March 31, 2021: GBP 1.3 million).

¹ Fund investments included in the former Earn-out portfolio. These funds are reaching the end of their life and are fully or almost fully paid in. A few earn-out funds could re-call a portion of previous distributions for follow-on investments. Future fund expenses, if any, are likely to be deducted from future distributions. Therefore, no unfunded commitment is shown for the former earn-out funds.

Investments held by the non-consolidated subsidiaries (continued)

		Commitments				Book values
	Vintage	Original fund currency	Original amount FC 1,000	Paid in 31.03.21 FC 1,000	Unfunded commitment 31.03.21 EUR 1,000	Fair value 31.03.20 EUR 1,000	Fair value 31.03.21 EUR 1,000
Venture Funds
Boulder Ventures IV	2001	USD	11,250	11,516	—	943	1,344
CDC Innovation 2000	2000	EUR	10,002	9,676	326	333	354
Carmel Software Fund	2000	USD	10,000	10,293	—	—	—
Carmel Software Fund (Secondary)	2000	USD	782	782	—	—	—
Clarus Lifesciences III	2013	USD	7,500	6,960	460	8,997	6,828
Clarus IV 3	2017	USD	7,500	4,447	2,606	3,784	4,226
Emerging Managers Program 5	2018-20	Various	Various	Various	4,209	2,399	4,909
Evolution Technology 3	2016	USD	5,000	5,100	—	7,373	8,058
Growth Fund I	2011	EUR	5,000	5,555	—	3,678	4,759
Growth Fund II	2015	EUR	5,000	5,638	—	8,248	19,697
Growth Fund III	2018	USD	4,500	4,267	199	2,590	4,192
Growth Fund IV	2020	USD	4,500	1,757	2,337	—	1,481
Highland Europe I 3	2012	EUR	5,000	5,981	—	5,897	7,429
Highland Europe II 3	2015	EUR	5,000	5,206	7	6,244	8,278
Highland Europe III	2018	EUR	5,000	4,157	843	1,932	6,262
Highland Europe IV	2020	EUR	5,000	—	5,000	—	(16)
Institutional Venture Partners XII	2007	USD	5,000	5,000	—	933	141
Institutional Venture Partners XIII	2010	USD	5,000	5,000	—	2,203	2,399
Kennet III 3	2007	EUR	5,000	5,669	—	2,458	802
Life Sciences Fund	2019	EUR	4,000	486	3,514	54	303
Pelion IV	2007	USD	1,693	1,693	—	4,006	92
Pelion V	2012	USD	1,039	1,009	26	1,006	277
Pelion VI	2015	USD	5,000	4,888	96	6,034	8,406
TAT Investments I	1997	USD	24,000	24,289	—	179	64
Total Venture Funds					19,622	69,289	90,284

For footnotes see bottom of page 27.

Minor differences in totals are due to rounding.

Investments held by the non-consolidated subsidiaries (continued)

			Commitments	Book values
	Vintage	Original fund currency	Original amount FC 1,000	Paid in 31.03.21 FC 1,000	Unfunded commitment 31.03.21 EUR 1,000	Fair value 31.03.20 EUR 1,000	Fair value 31.03.21 EUR 1,000
Special Situation Funds
ABRY Advanced Securities Fund 4	2008	USD	15,000	7,265	417	202	158
ABRY Advanced Securities Fund III	2014	USD	8,000	9,933	—	4,112	6,207
ABRY Advanced Securities Fund IV 3	2018	USD	10,000	5,055	4,213	3,913	4,160
ABRY Senior Equity IV 3	2013	USD	5,000	5,165	—	1,741	1,260
ABRY Senior Equity V 3	2016	USD	5,500	4,746	642	2,491	3,814
ALPHA CEE Opportunity IV 2	2016	EUR	10,000	9,465	1,108	11,354	22,683
ALPHA CEE Opportunity V 2	2021	EUR	5,000	780	4,220	—	780
ALPHA Russia & CIS Secondary 2	2010	USD	15,000	13,890	946	4,379	7,009
DB Secondary Opportunities Fund A 4	2007	USD	5,376	4,327	448	—	—
DB Secondary Opportunities Fund C	2007	USD	9,288	6,957	2,024	—	—
HIG Middle Market LBO III	2019	USD	5,000	397	3,922	29	276
OCM European Principal Opportunities Fund II	2007	EUR	5,000	4,995	5	50	66
OCM Opportunities Fund VII	2007	USD	5,000	5,000	—	170	34
OCM Opportunities Fund VIIb	2008	USD	5,000	4,500	213	82	8
Sycamore II 3	2014	USD	10,000	8,848	982	5,609	3,537
Sycamore III	2018	USD	10,000	3,309	5,701	872	2,513
WL Ross Recovery Fund IV 3	2007	USD	10,000	9,056	804	467	138
Total Special Situation Funds					25,644	35,470	52,643
Total Fund Investments					78,213	201,719	254,052

For footnotes see bottom of page 27.

Minor differences in totals are due to rounding.

		Commitments	Book values
	Original fund currency	Original amount FC 1,000	Unfunded commitment 31.03.21 EUR 1,000	Fair value 31.03.20 EUR 1,000	Fair value 31.03.21 EUR 1,000
Direct investments
Acino Holding AG	USD	5,455	—	3,498	5,547
Applied Spectral Imaging	USD	4,461	—	2,012	1,886
Aston Martin	EUR	4,737	76	1,230	2,304
Cloudflare	USD	2,006	—	3,635	—
Dupont Sustainable Solutions	USD	6,513	1,942	9,699	8,052
Earnix	USD	201	—	3,612	17,094
Enanta Pharmaceuticals	USD	7,279	—	969	450
International Design Group (formerly Flos)	EUR	4,172	—	3,140	3,009
Morgan Motor	EUR	1,861	—	2,353	2,329
Neurotech	USD	2,203	—	496	465
Ozon	USD	1,410	—	—	6,973
Renaissance Learning	USD	5,088	—	5,500	7,705
Shawbrook	GBP	4,000	—	5,402	5,406
WP Co-investment	USD	698	595	—	—
Total Direct investments			2,613	41,545	61,220

Minor differences in totals are due to rounding.

8.2 Movements in investments held by the non-consolidated subsidiaries

	Book values					Returns 01.04.20-31.03.21
	Fair value 01.04.20 EUR 1,000	Capital calls EUR 1,000	Return of capital EUR 1,000	Change in unrealised gains/(losses) EUR 1,000	Fair value 31.03.21 EUR 1,000	Total distri butions EUR 1,000	Real. gains/ (losses) EUR 1,000
Fund Investments 1
Buyout Funds	96,960	16,035	11,832	9,963	111,125	20,312	8,479
Venture Funds	69,289	9,532	5,232	16,695	90,284	25,041	19,810
Special Situation Funds	35,470	5,080	4,820	16,913	52,643	4,858	38
Total Funds	201,719	30,647	21,884	43,571	254,052	50,211	28,327
Direct Investments 2	41,545	1,200	1,753	20,228	61,220	7,285	5,532
Total Investments held by the non-consolidated subsidiaries	243,264	31,847	23,637	63,799	315,272 3	57,496	33,859

1 Fund Investments were held by Private Equity Fund Finance (also refer to Note 8.1).

2 Direct Investments were held by Private Equity Direct Finance and Private Equity Fund Finance (also refer to Note 8.1).

³In addition Private Equity Fund Finance held a quoted security, which was received as an in-kind distribution. As of March 31, 2021 the market value was EUR 191k.

Minor differences in totals are due to rounding.

8.3 Financial assets at fair value through profit or loss

	Commitments					Book values				Returns 01.04.20-31.03.21
	Original currency	Original amount FC 1,000	Unfunded commit ment 31.03.21 EUR 1,000	Fair value 01.04.20 EUR 1,000	Capital calls EUR 1,000	Return of capital EUR 1,000	Change in unrealised gains/ (losses) EUR 1,000	Fair value 31.03.21 EUR 1,000	Total distri butions EUR 1,000	Real. gains/ (losses) EUR 1,000
Actano Holding AG (Equity)	CHF	8,450	—	2,171	—	—	(1,084)	1,087	—	—
Minicap Technology Investments	CHF	10,967	—	—	—	—	—	—	—	—
Strategic European Technologies N.V.	EUR	18,151	—	200	—	—	(2)	198	—	—
Total financial assets at fair value through profit or loss			—	2,371	—	—	(1,086)	1,285	—	—

Minor differences in totals are due to rounding.

9. Net gains/(losses) from investments in non-consolidated subsidiaries at fair value through profit or loss and from financial assets at fair value through profit or loss

Non-consolidated subsidiaries
EUR 1,000	01.04.20- 31.03.21	01.04.19- 31.03.20
Change in unrealised gains/(losses) on Private Equity Fund Finance Ltd.	72,411	19,148
Change in unrealised gains/(losses) on Private Equity Direct Finance Ltd.	12,549	(1,083)
Total net gains/(losses) from investments in non-consolidated subsidiaries at fair value through profit or loss	84,960	18,065

Financial assets

EUR 1,000	01.04.20- 31.03.21	01.04.19- 31.03.20
Change in unrealised gains/(losses) from non-current financial assets	(1,086)	(1)
Realised gains/(losses) from financial assets at fair value through profit or loss	—	—
Total net gains/(losses) from financial assets at fair value through profit or loss	(1,086)	(1)

10. Segment information

Due to the nature of the business (all private equity investments), the Board of Directors has decided that there are no separate reporting segments.

11. Disclosures about fair value of financial instruments

The table below analyses recurring fair value measurements for the Company's financial instruments. These fair value measurements are categorised into different levels in the fair value hierarchy based on the inputs to valuation techniques used. The different levels are defined as follows:

• Level I inputs are quoted prices (unadjusted) in active markets for identical instruments that the Group can access at the measurement date;
• Level II inputs are inputs other than quoted prices included within Level I that are observable for the instrument, either directly or indirectly;
• Level III inputs are unobservable inputs for the instrument.

The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a Level III measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the instrument. The determination of what constitutes "observable" requires significant judgment by the Company. The Company considers observable data to be market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.

The following table analyses the Company's investments measured at fair value as of March 31, 2021 and March 31, 2020 on a look-through basis by the level in the fair value hierarchy into which the fair value measurement is categorised1 :

As of March 31, 2021
EUR 1,000	Level I	Level II	Level III	Total
Investments in non-consolidated subsidiaries (look-through)
Quoted securities	—	—	—	—
Fund investments	—	—	254,052	254,052
Direct investments	2,754	—	58,466	61,220
Total investments in non-consolidated subsidiaries (look-through)	2,754	—	312,518	315,272
Financial assets at fair value through profit or loss
Fund investments	—	—	198	198
Direct investments	—	—	1,087	1,087
Loans	—	—	—	—
Total financial assets measured at fair value through profit or loss	—	—	1,285	1,285
As of March 31, 2020 EUR 1,000	Level I	Level II	Level III	Total
Investments in non-consolidated subsidiaries (look-through)
Quoted securities	—	—	—	—
Fund investments	—	—	201,719	201,719
Direct investments	2,199	—	39,346	41,545
Total investments in non-consolidated subsidiaries (look-through)	2,199	—	241,065	243,264
Financial assets at fair value through profit or loss
Fund investments	—	—	200	200
Direct investments	—	—	2,171	2,171
Loans	—	—	—	—
Total financial assets measured at fair value through profit or loss	—	—	2,371	2,371

1 The Company has not disclosed the fair values for financial instruments measured at amortised cost. For short-term financial instruments such as cash and cash equivalent, receivables, interest bearing loans, payables and accrued expenses, the carrying amount is generally considered a reasonable estimate of fair value. The fair value for long-term financial liabilities such as interest-bearing borrowings, estimated by discounting contractual cash flows using current market interest rates is equivalent to the carrying amount.

The financial statements as of March 31, 2021 include Level III financial assets in the amount of EUR 1.3 million (March 31, 2020: EUR 2.4 million), representing approximately 0.4% (March 31, 2020, 1.0%) of the total equity.

The Company recognises transfers between levels of the fair value hierarchy as of the end of the reporting period during which the transfer has occurred. There were no transfers between the levels during the twelve months ended March 31, 2021.

The changes in investments measured at fair value for which the Company has used Level III inputs to determine fair value as of March 31, 2021 and March 31, 2020, are as follows:

As of March 31, 2021 EUR 1,000	Investments in non consolidated subsidiaries at fair value through profit or loss	Financial assets at fair value through profit or loss	Total
Fair value of Level III investments at the beginning of the period	241,065	2,371	243,436
Total capital calls from Level III investments	31,847	—	31,847
Total distributions from Level III investments	(57,063)	—	(57,063)
Total gains or losses:
realised in profit or loss	33,469	—	33,469
unrealised in profit or loss 1	63,200	(1,086)	62,114
Fair value of Level III investments at the end of the period	312,518	1,285	313,803

As of March 31, 2020 EUR 1,000	Investments in non consolidated subsidiaries at fair value through profit or loss	Financial assets at fair value through profit or loss	Total
Fair value of Level III investments at the beginning of the period	202,559	2,372	204,931
Total capital calls from Level III investments	39,186	—	39,186
Total distributions from Level III investments	(33,670)	—	(33,670)
Total gains or losses:
realised in profit or loss	13,067	—	13,067
unrealised in profit or loss	19,923	(1)	19,922
Fair value of Level III investments at the end of the period	241,065	2,371	243,436

1 Unrealised profit or loss refers to instruments held at the reporting date.

For Level III fund and direct investments, the sensitivity analysis below (as of March 31, 2021 and March 31, 2020) represents the potential absolute change in fair value for each category. The fair values of such investments are valued by using an unobservable input factor and are directly affected by a change in that factor.

As outlined in Note 3.b (iii), the Company utilizes a methodology that uses reported NAV as the key input for fund investments. Thus, the main unobservable input factor would be reported NAV itself. For direct investments, the Company used mainly the following factors relevant to the fair value: a) Reported fair value, b) EBITDA multiples or other earnings metric as appropriate and c) Recent financing transactions adjusted for possible changes between transaction date and reporting date (also refer to Note 3.b (ii)).

The COVID-19 pandemic has changed the global economic outlook for the foreseeable future. Given the uncertainty of the outcome of current events and the observable financial market volatility since March 2020, the percentage used in the sensitivity analysis for the negative change of the unobservable input factor was set at 10% as of March 31, 2021 (same as prior year). This percentage currently represents the Board of Director's best estimate of a reasonable possible shift in the inputs. Hence, should the significant unobservable input increase by 5% or decrease by 10%, the value of each category of investments would follow respectively by the absolute positive or negative amount as shown in the table below.

No interrelationships between unobservable inputs used in the Company's valuation of its Level III funds and direct investments have been identified.

The category "Direct investments" in the table below may include certain investments using the valuation technique "Reported fair value". The fair value of such direct investments is based on an NAV reported by the lead investor.

A sensitivity analysis has not been performed for direct investments that have been acquired within the last 9 months of the reporting period and where the acquisition cost was deemed to be the most appropriate fair value in accordance with IFRS 13.

	Fair value			Sensitivity
Level III investment	31.03.21 EUR 1,000	Valuation technique	Unobservable input	+5%	-10%
Fund investments
	254,250	Adjusted reported net asset value	Marketability discount	12,713	(25,425)
Direct investments
	18,980	Market comparable companies	Enterprise value to EBITDA multiple	949	(1,898)
	39,021	Reported fair value	Reported fair value	1,951	(3,902)
	1,087	Recent financing/ transaction	Recent transaction price	n/a	n/a
	465	Other	Earnout	n/a	n/a
	Fair value 31.03.20			Sensitivity
Level III investment	EUR 1,000	Valuation technique	Unobservable input	+5%	-10%
Fund investments
	201,919	Adjusted reported net asset value	Marketability discount	10,096	(20,192)
Direct investments
	5,624	Market comparable companies	Enterprise value to EBITDA multiple	281	(562)
	21,175	Reported fair value	Reported fair value	1,059	(2,118)
	14,222	Recent financing/ transaction	Recent transaction price	n/a	n/a

n/a = not applicable

12. Financial liabilities measured at amortised cost

12.1 Interest bearing loans

Effective on August 29, 2018, the Company (the lender) entered into a loan agreement with Private Equity Direct Finance (a subsidiary, the borrower) to lend the total sum of USD 2.0 million at the existing rate of 1 month LIBOR plus 225 basis points. The borrower shall repay the loan, including accumulated interest, at such time and in a manner to be designated by the lender. The borrower repaid the loan including accumulated interest (USD 2.2 million) on August 6, 2020. Hence the total amount as of March 31, 2021 was nil (March 31, 2020: EUR 1.9 million).

12.2 Borrowing and credit facility/pledged assets

Effective on June 1, 2017, the Company (the borrower) increased the maximum loan amount with Private Equity Fund Finance Ltd. (a subsidiary, the lender) to CHF 70.0 million at the existing interest rate of 1 month LIBOR plus 200 basis points. As LIBOR will be replaced by alternative reference rates for the respective currencies from January 1, 2022 onwards, the interest calculation methodology will be amended accordingly. A material impact for the Company is not expected. The lender may extend further loans to the borrower if and as required by the borrower to carry on its business by entering into a letter agreement which shall be governed by the same provisions as set forth in the existing loan agreement. The lender may not request the repayment of any amount outstanding without giving at least 12 months notice. There is no contractually agreed expiry date. The total amount of interest bearing borrowings as of March 31, 2021 stood at EUR 54.6 million (March 31, 2020: EUR 41.1 million).

On December 21, 2018, the Company signed an amended agreement with Credit Suisse (Schweiz) AG for a EUR 20.0 million revolving credit facility, which was subsequently increased to EUR 30.0 million on September 16, 2019. This agreement will expire on December 31, 2021. This facility allows the Company to bridge timing gaps between outflows and inflows, cover short-term liquidity squeezes and manage and hedge market risks. The credit facility, if and when drawn, is secured by the Company's ownership interests in Private Equity Fund Finance Ltd. and Private Equity Direct Finance Ltd. The applicable interest rate on any amounts outstanding under the facility is LIBOR for the requested currency term (floored at 0%) plus 185 basis points. The Company is obliged to pay a quarterly commitment fee of 22.5 basis points on the undrawn amount. As LIBOR will be replaced by alternative reference rates for the respective currencies from January 1, 2022 onwards, the interest calculation methodology will change as from the respective LIBOR replacement dates. A material impact for the Company is not expected.

As of March 31, 2021, the credit facility drawn was EUR 5.9 million (March 31, 2020: EUR 14.6 million). During the financial year 2020/2021, interest expenses of EUR 188k were incurred (2019/2020: EUR 115k). Commitment fees amounted to EUR 186k for the business year 2020/2021 (2019/2020: EUR 178k) and are included in corporate expenses in the statement of comprehensive income.

13. Shareholders' equity and movements in treasury shares

The Company's share capital is represented by ordinary shares with CHF 6.00 par value and carrying one vote each. They are entitled to dividends when declared. The Company has no additional restrictions or specific capital requirements on the issuance and re-purchase of ordinary shares. The movements of share capital are shown in the statement of changes in equity.

Shareholders' equity amounts to EUR 308.1 million as of March 31, 2021 (March 31, 2020: EUR 230.7 million).

31.03.21	31.03.20
2,750,000	2,750,000
6.00	6.00
3.75	3.75

¹Converted at historical foreign exchange rate.

The Annual General Meeting held on June 30, 2020 decided on a distribution to shareholders in the amount of CHF 1.00 per outstanding share, which was paid from share premium and retained earnings. No distribution was made on treasury shares. The distribution was made with value date July 8, 2020.

All shares have equal rights to vote and to receive dividends, as well as to share in the distribution of the net assets of the Company upon liquidation.

Earnings per share

The Company presents basic earnings per share data for its ordinary shares. Basic earnings per share is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period.

Net asset value per share

Net asset value per share is calculated by dividing total shareholders' equity with the number of ordinary shares in issue, net of treasury shares.

Reconciliation of number of shares outstanding	31.03.21	31.03.20
Number of shares outstanding net of treasury shares at the beginning of the year	2,594,311	2,605,577
Purchase of treasury shares	(57,633)	(13,402)
Sale of treasury shares	2,450	2,136
Number of shares outstanding net of treasury shares at the end of the year	2,539,128	2,594,311

Per share data	31.03.21	31.03.20
Weighted average of total number of shares (1,000)	2,578,762	2,604,593
Profit (EUR 1,000)	82,780	14,987
Profit per share (EUR)	32.10	5.75
Comprehensive income per share (EUR)	32.10	5.75
Net asset value per share (EUR)	121.33	88.91
Book value per share (EUR)	121.33	88.91

13.1 Shareholders with shares and voting rights of 3% and more

As of March 31, 2021 and 2020, the following major shareholders were known to the Company:

Holding in % of share capital	31.03.21	31.03.20
	Private Equity Holding AG (Zug, 210,872 shares, registered without voting rights);	Private Equity Holding AG (Zug, 155,689 shares, registered without voting rights)
Between 5% and 10%	Dr. Hans Baumgartner (Adliswil, 228,947 shares or 8.33% of the voting rights)	Dr. Hans Baumgartner (Adliswil, 226,031 shares or 8.22% of the voting rights)
Between 33.33% and 50%	(Zurich, ALPHA Associates Group1 961,315 shares or 34.96% of the voting rights)	(Zurich, ALPHA Associates Group1 939,193 shares or 34.15% of the voting rights)

1 The ALPHA Associates Group comprises ALPHA Associates AG, C+E Holding AG, Dr. Peter Derendinger, Dr. Petra Salesny and Petr Rojicek.

13.2 Net changes in treasury shares

Net changes in treasury shares	Number of shares	Total cost base EUR 1,000	Average cost base EUR
April 1, 2020	155,689	9,448	60.68
April	1,678	78	60.53
May	2,920	130	60.24
June	—	—	60.24
July	6,811	270	59.40
August	—	—	59.40
September	(1,940)	(121)	59.37
October	200	9	59.35
November	6,000	300	59.03
December	12,522	677	58.69
January	3,155	176	58.64
February	13,561	747	58.40
March	10,276	644	58.60
March 31, 2021	210,872	12,358	58.60

14. Contingent liabilities and commitments

Contingent liabilities

On December 9, 2010, the Group amended and restated the management agreement with ALPHA Associates (Cayman), LP. The restated agreement came into force on April 1, 2012 (refer to Note 15). It can be terminated as of March 31, 2021 or any subsequent termination date by giving timely notice. If the agreement was to be terminated prior to March 31, 2021 or any subsequent termination date for a reason other than a default of the Investment Manager or a distribution exceeding 5% of the Group's total net asset value is made in any one financial year, the Group shall pay the Investment Manager the respective amount of fees which the Investment Manager would otherwise have earned in the period from the date of termination or excess distribution to the next termination date. In case of termination of the agreement for a reason other than a default, the Investment Manager shall have the right, for a period of 10 years from the date of termination, to receive payment of any performance fee that would have been payable to the Investment Manager following the date of termination on the portfolio held as of the date of termination, had the agreement not been terminated.

Commitments

Along with the commitments to invest as disclosed in Note 8, distributions in the total amount of EUR 16.1 million are recallable from several funds as of March 31, 2021 (March 31, 2020: EUR 12.4 million). As the investment period of most of these funds has already expired, recallable distributions can in general only be recycled for follow-on investments and are therefore not expected to be drawn in full. In certain circumstances capital calls can exceed total commitment mainly due to payment of management fees to investee fund managers, short-term borrowings or reinvestment by investee funds.

Pledges

In connection with a standard banking relationship with Credit Suisse (Switzerland) AG, the Company signed a general pledge agreement in favour of the bank.

The credit facility with Credit Suisse (Switzerland) AG, if and when drawn, is secured by the Company's ownership interest in Private Equity Fund Finance Ltd. and Private Equity Direct Finance Ltd. (refer to Note 12.2).

15. Related party transactions

The following parties are considered related to the Company as of March 31, 2021 and March 31, 2020:

• ALPHA Associates AG, Zurich;
• ALPHA Associates (Cayman), LP;
• Members of the Board of Directors of the Company and the Delegate;
• C+E Holding AG, Zurich (affiliate of the ALPHA Group and significant shareholder (see also Note 13.1));
• Private Equity Fund Finance Ltd., Cayman Islands and Private Equity Direct Finance Ltd., Cayman Islands.

Pursuant to a management agreement dated April 1, 2004, as amended as of January 1, 2007 and on December 9, 2010 with effect from April 1, 2012, respectively, ALPHA Associates (Cayman), LP renders investment management and certain support services to the Group. The management fee is partially linked to the market capitalisation of the Company (1.5% * 75% * adjusted net assets plus 2% * 25% * market capitalisation plus 1% of the fair value of the direct portfolio).

Funds managed by ALPHA Associates (Cayman), LP (i.e., ALPHA CEE II, ALPHA Russia & CIS Secondary, ALPHA CEE Opportunity IV and ALPHA CEE Opportunity V) are excluded from the net asset value for the purpose of calculating the management fee.

The performance fee is 10% of the increase in shareholders' equity (adjusted for distributions and treasury share transactions) since April 1, 2004, subject to a 6% hurdle equity test (compounded annually) and a high watermark test.

Performance fees were earned in the 3rd and 4th quarter of the financial year. No performances were earned in the 1st and 2nd quarter.

The management agreement may be terminated by either party as of March 31, 2021 and runs for subsequent periods of three years unless notice of termination is given in a timely way. If a de facto termination event was to occur prior to any regular termination date for a reason other than a default of the Investment Manager or a distribution exceeding 5% of the Group's total net asset value is made in any one financial year ending on or before the next termination date, the Investment Manager could claim liquidated damages equal to the amount of fees which the Investment Manager would otherwise have earned in the period from the date of de facto termination or excess distribution to the next regular termination date. In case of termination of the agreement for a reason other than a default, the Investment Manager shall have the right, for a period of 10 years from the date of termination, to receive trailing performance fees equal to the amount of performance fees that would have been payable to the Investment Manager following the date of termination on the portfolio held as of the date of termination as if the agreement had not been terminated, i.e., subject to the hurdle equity and high watermark test.

ALPHA Associates AG, Zurich provides certain support services to the Company for an administration fee of CHF 125,000 per quarter (administration agreement dated April 1, 2004, as amended effective April 1, 2006).

Management and administration fees as well as performance fees paid by the Company and its non-consolidated Subsidiaries are as follows:

	Non-consolidated
	PEH		subsidiaries		Total
EUR 1,000	01.04.20- 31.03.21	01.04.19- 31.03.20	01.04.20- 31.03.21	01.04.19- 31.03.20	01.04.20- 31.03.21	01.04.19- 31.03.20
Management and administration fees	464	457	3,573	3,553	4,037	4,010
Performance fees	—	—	9,198	1,445	9,198	1,445
Total	464	457	12,771	4,998	13,235	5,455

Total management and administration fees and performance fees payable by the Company and non-consolidated Subsidiaries as of March 31, 2021 amounted to EUR 7.2 million (March 31, 2020: EUR 0.3 million).

Total compensation of the Board of Directors amounted to EUR 162k for the financial year 2020/2021 (2019/2020: EUR 159k). This amount does not include the fee for the Delegate.

Total compensation of the Delegate amounted to EUR 69k for the financial year 2020/2021 (2019/2020: EUR 68k).

There were no transactions between the Company and C+E Holding AG, Zurich in the financial year 2020/2021 (2019/2020: None).

The Board of Directors, the Delegate and the Investment Manager are the key management functions of the Group.

The Subsidiaries provided a loan to the Company, which amounted to EUR 54.6 million (2019/2020: EUR 41.1 million). For the terms and conditions refer to Note 12.2. The transaction has been conducted at arm's length.

16. Tax expenses

Reconciliation of income tax calculated with the applicable tax rate:

EUR 1,000	01.04.20- 31.03.21	01.04.19- 31.03.20
Profit/(loss) for the year	82,780	14,987
Applicable tax rate	11.9%	11.9%
Expected income tax expense	9,851	1,783
Effect from non-taxable income	(9,851)	(1,783)
Total income tax for the year	—	—

As at March 31, 2021, the Company had EUR 15,333k remaining tax loss carry forwards on Swiss federal tax level and EUR 5,296k on cantonal level (March 31, 2019: EUR 13,210k and EUR 3,173k, respectively). Unused tax loss carry forwards expire within 7 years according to the schedule in the table below.

		Federal tax level	Cantonal tax level
Expiry date	CHF	EUR	CHF	EUR
March 31, 2024	2,581	2,334	—	—
March 31, 2025	1,835	1,659	—	—
March 31, 2026	6,686	6,044	—	—
March 31, 2027	3,510	3,173	3,510	3,173
March 31, 2028	2,348	2,123	2,348	2,123
Total tax loss carry forwards	16,960	15,333	5,858	5,296

17. Subsequent events

There were no subsequent events.

Report of the Statutory Auditor on the IFRS Financial Statements

Statutory Auditor's Report

To the General Meeting of Private Equity Holding AG, Zug

Report on the Audit of the Financial Statements (IFRS)

Opinion

We have audited the financial statements of Private Equity Holding AG (the Company), which comprise the balance sheet as at 31 March 2021 and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion the financial statements (pages 13 to 37) give a true and fair view of the financial position of the Company as at 31 March 2021, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRS) and comply with article 14 of the Directive on Financial Reporting issued by the SIX Swiss Exchange and with Swiss law.

Basis for Opinion

We conducted our audit in accordance with Swiss law, International Standards on Auditing (ISAs) and Swiss Auditing Standards. Our responsibilities under those provisions and standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the provisions of Swiss law and the requirements of the Swiss audit profession, as well as the IESBA Code of Ethics for Professional Accountants, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Valuation and ownership of investments in non-consolidated subsidiaries and financial assets at fair value through profit or loss

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

KPMG AG, Räffelstrasse 28, PO Box , CH-8036 Zurich © 2021 KPMG AG, a Swiss corporation, is a subsidiary of KPMG Holding AG, which is a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

Valuation and ownership of investments in non-consolidated subsidiaries and financial assets at fair value through profit or loss

Key Audit Matter Our response

The Company invests, predominantly through its non-consolidated subsidiaries, in private equity funds and direct co-investments respectively. Total investments in non-consolidated subsidiaries at fair value through profit or loss (31 March 2021: EUR 367.0m) and financial assets at fair value through profit or loss (31 March 2021: EUR: 1.3m) amount to EUR 368.3m as of 31 March 2021 (31 March 2020: EUR 284.5m) and mainly consist of fund and direct investments. For the majority of these investments, no market prices are available.

Unquoted fund investments amounting to EUR 254.3m as of 31 March 2021 (31 March 2020: EUR 201.9m) are generally valued on the basis of the latest available net asset values ("NAVs") of the fund reported by the relevant fund manager. NAVs of unquoted fund investments are based on the respective valuation of underlying direct investments that are mainly unquoted and therefore valued based on different valuation techniques. Such NAVs are adjusted for capital calls and distributions falling between the latest NAV date of the fund and the reporting date of the Company. Also, valuation changes in underlying investee companies are considered and adjusted for if known of.

Unquoted direct investments amounting to EUR 59.6m as of 31 March 2021 (31 March 2020: EUR 41.5m) are valued based on different valuation techniques according to international standards. The valuation models used have little or no observable input factors and therefore require significant judgement.

Unquoted direct and fund investments are not safeguarded by an independent custodian bank. There is a risk that the legal ownership to these investments is not sufficient.

Our procedures included amongst others obtaining an understanding of management's processes and controls around the valuation of and accounting for unquoted direct and fund investments by performing walkthrough procedures, testing relevant controls and reviewing the valuation governance structure.

For unquoted fund investments we obtained counterparty confirmations on NAV and commitments from the respective fund administrator. We recalculated and vouched adjustments to the NAV to transaction records and substantively tested any adjustments subsequent to the date of confirmation. For fund investments that did not provide a counterparty confirmation, we performed alternative procedures including inspection and recalculation of valuation adjustments between latest NAV reporting date and balance sheet date. We also conducted back-testing on the accuracy of reported NAV by comparing those to the final NAV disclosed in the audited financial statements of the investment funds.

We tested the legal ownership for unquoted direct and fund investments by confirming investment holdings with the administrator or the fund manager as appropriate.

On a sample basis and with the assistance of our valuation specialists, we performed substantive procedures regarding unquoted direct investments by challenging the appropriateness of the valuation techniques and key input factors which includes but not limited to the following:

• Assessment of valuation techniques used in regards of international standards;
• assessment of multiples used compared to valuation of similar companies;
• testing of input parameter and required fair value adjustments based on recent transaction data and other observable information;
• recalculation of valuation with input data provided by investment administrator; and
• for a sample of transactions, reconciliation of recorded amount to contracts, draw down notices and bank statements.

For further information on the valuation and ownership of investments in non-consolidated subsidiaries and financial assets at fair value through profit and loss refer to notes 8 and 11 to the financial statements on pages 26 to 33.

Other Information in the Annual Report

The Board of Directors is responsible for the other information in the annual report. The other information comprises all information included in the annual report, but does not include the financial statements, the standalone financial statements of the company, the remuneration report and our auditor's reports thereon.

Our opinion on the financial statements does not cover the other information in the annual report and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information in the annual report and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibility of the Board of Directors for the Financial Statements

The Board of Directors is responsible for the preparation of the financial statements that give a true and fair view in accordance with IFRS and the provisions of Swiss law, and for such internal control as the Board of Directors determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Swiss law, ISAs and Swiss Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with Swiss law, ISAs and Swiss Auditing Standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made.
• Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the Company audit. We remain solely responsible for our audit opinion.

We communicate with the Board of Directors or its relevant committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Board of Directors or its relevant committee with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the Board of Directors or its relevant committee, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report, unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

In accordance with article 728a para. 1 item 3 CO and the Swiss Auditing Standard 890, we confirm that an internal control system exists, which has been designed for the preparation of financial statements according to the instructions of the Board of Directors.

We recommend that the financial statements submitted to you be approved.

KPMG AG

Thomas Dorst Christoph Hochuli Licensed Audit Expert Auditor in Charge

Zurich, 10 May 2021

Licensed Audit Expert

Financial Statements March 31, 2021

Income Statement	44
Balance Sheet	45

Notes to the Financial Statements

1.	Company Information 46
2.	Accounting Policy 46
3.	Participations 46
	4. Share capital 46
5.	Treasury shares 47
6.	Impairment losses on participations 47
7.	Shareholders with shares and voting rights of 3% and more 47
8.	Pledged assets and guarantees 48
9.	Management compensation in accordance with Art. 663bbis Swiss Code of Obligations 48
	10. Management share ownership in accordance with Art. 663c Swiss Code of Obligations 49
	11. Foreign exchange gains/losses due to conversion into presentation currency 49
	12. Significant events after the balance sheet date 49
	13. Risk assessment 50
	14.Appropriation of available earnings 50

Income Statement of Private Equity Holding AG

CHF 1,000	Notes	01.04.20- 31.03.21	01.04.19- 31.03.20
Income
Financial income
Capital gains on subsidiaries		—	—
Foreign exchange gains	11	—	1,701
Interest income		18	88
Other operating income		—	—
Total income		18	1,789
Expenses
Financial expense
Impairment losses on participations	6	1,170	138
Interest expense		877	879
Foreign exchange losses	11	1,643	—
Transaction expense		4	4
Other operating expense
Administration expense		499	501
Corporate expense		765	834
Direct taxes		—	—
Total expenses		4,959	2,356
Profit/(loss) for the period		(4,941)	(567)

Minor differences in totals are due to rounding.

Balance Sheet of Private Equity Holding AG

CHF 1,000	Notes	31.03.21	31.03.20
Assets
Current assets
Cash and cash equivalents		241	21
Other current receivables		—	—
Receivables from group companies		—	—
Receivables from third parties		17	38
Prepaid expenses and accrued income		107	62
Total current assets		365	121
Non-current assets
Loans due from subsidiaries		—	2,067
Participations	3	228,368	229,468
Total non-current assets		228,368	231,535
Total assets		228,733	231,656
Liabilities and shareholders' equity
Current liabilities
Other current liabilities
Payables to third parties		36	8
Short-term bank borrowings		6,502	15,488
Accrued expenses		67	98
Total current liabilities		6,605	15,594
Non-current liabilities
Loans due to subsidiaries		60,415	43,624
Total non-current liabilities		60,415	43,624
Total liabilities		67,020	59,218
Shareholders' equity
Share capital	4	16,500	16,500
Legal reserves from capital contributions:
General reserves		62,644	63,939
Voluntary retained earnings	14	96,499	102,767
Treasury shares (covered by reserves from capital contributions)	5	(13,930)	(10,768)
Total shareholders' equity		161,713	172,438
Total liabilities and shareholders' equity		228,733	231,656

Minor differences in totals are due to rounding.

Notes to the Financial Statements

1. Company Information

Private Equity Holding AG (the "Company") was incorporated in Switzerland and has its principal office at Gotthardstrasse 28 in Zug. The Company is listed on the SIX Swiss Exchange.

The purpose of the Company is to buy, hold, and sell investments, directly, and indirectly, in order to generate long term capital growth for its shareholders. The Company did not have any employees during the reporting period 2020/2021 (2019/2020: no employees).

2. Accounting Policy

General principles

The financial statements of Private Equity Holding AG have been prepared in accordance with the Swiss law on accounting and financial reporting (32nd title of the Swiss Code of Obligations).

The valuation principles applied remain unchanged for both the current as well as the previous year. The financial statements have been prepared according to the valuation principle of historical cost. However, impairments are recognised when the useful values of reporting items permanently fall below their cost values.

Treasury shares

Treasury shares are recognised at acquisition cost and deducted from shareholder's equity at the time of acquisition. In case of a resale, the gain or loss is recognised directly in equity (voluntary retained earnings).

Cash flow statement

As the Company has prepared its financial statements in accordance with the recognised accounting standard IFRS, it has decided to opt out of preparing a cash flow statement on a statutory basis.

3. Participations

	Percentage of capital and voting rights held 31.03.21	Percentage of capital and voting rights held 31.03.20	Original currency	Nominal value FC 1,000	Book value 31.03.21 CHF 1,000	Book value 31.03.20 CHF 1,000
Subsidiaries
Private Equity Fund Finance Ltd., Cayman Islands (Investment company)	100%	100%	CHF	13,885	204,426	204,426
Private Equity Direct Finance Ltd., Cayman Islands (Investment company)	100%	100%	CHF	200,000	22,528	22,528
Financial investments
Actano Holding AG, Zurich, Switzerland (Holding company)	15% 1	17% 1	CHF	1,213	1,202	2,302
Strategic European Technologies N.V., 's-Hertogenbosch, The Netherlands (Investment company)	10%	10%	EUR	63	212	212
Total					228,368	229,468

1 Fully diluted

4. Share capital

	31.03.21	31.03.20
Number of shares authorised and issued	2,750,000	2,750,000
Par value per share (CHF)	6.00	6.00

All shares have equal rights to vote and to receive dividends, as well as to share in the distribution of the net assets of the Company upon liquidation.

Contingent share capital

The share capital of the Company may be increased by a maximum amount of CHF 9,000,000 through the issue of a maximum of 1,500,000 nominal shares to be fully paid-in with a nominal value of CHF 6.00 each, thereof a maximum amount of CHF 3,000,000 through the exercise of option rights granted to shareholders and a maximum amount of CHF 6,000,000 through the exercise of conversion or option rights in connection with bonds or similar instruments that may be issued by the Company or its subsidiaries.

5. Treasury shares

Net changes in treasury shares	Number of shares	Total cost base CHF 1,000	Average cost base CHF
April 1, 2020	155,689	10,768	64.34
April	1,678	82	63.68
May	2,920	137	63.50
June	—	—	63.50
July	6,811	290	64.00
August	—	—	64.00
September	(1,940)	(98)	63.95
October	200	10	63.36
November	6,000	325	63.90
December	12,522	731	63.49
January	3,155	190	63.34
February	13,561	814	64.15
March	10,276	713	64.82
March 31, 2021	210,872	13,962	64.82

6. Impairment losses on participations

CHF 1,000	31.03.21	31.03.20
Impairment losses on subsidiaries	—	—
Impairment losses on financial investments	1,170	138
Total	1,170	138

7. Shareholders with shares and voting rights of 3% and more

As of March 31, 2021 and 2020, the following major shareholders were known to the Company:

Holding in % of share capital	31.03.21	31.03.20
Between 5% and 10%	Private Equity Holding AG (Zug, 210,872 shares, registered without voting rights);	Private Equity Holding AG (Zug, 155,689 shares, registered without voting rights)
	Dr. Hans Baumgartner (Adliswil, 228,947 shares or 8.33% of the voting rights)	Dr. Hans Baumgartner (Adliswil, 226,031 shares or 8.22% of the voting rights)
Between 33.33% and 50%	(Zurich, ALPHA Associates Group 1 961,315 shares or 34.96% of the voting rights)	(Zurich, ALPHA Associates Group 1 939,193 shares or 34.15% of the voting rights)

1 The ALPHA Associates Group comprises ALPHA Associates AG, C+E Holding AG, Dr. Peter Derendinger, Dr. Petra Salesny and Petr Rojicek.

8. Pledged assets and guarantees

Pledged assets

On December 21, 2018, the Company signed an amended agreement with Credit Suisse (Schweiz) AG for a EUR 20.0 million revolving credit facility, which was subsequently increased to EUR 30.0 million on September 16, 2019. This agreement will expire on December 31, 2021. This facility allows the Company to bridge timing gaps between outflows and inflows, cover short-term liquidity squeezes and manage and hedge market risks. The credit facility, if and when drawn, is secured by the Company's ownership interests in Private Equity Fund Finance Ltd. and Private Equity Direct Finance Ltd. The applicable interest rate on any amounts outstanding under the facility is LIBOR for the requested currency term (floored at 0%) plus 185 basis points. The Company is obliged to pay a quarterly commitment fee of 22.5 basis points on the undrawn amount. As of March 31, 2021, the credit facility drawn was CHF 6.5 million (March 31, 2020: CHF 15.5 million).

Guarantees

There were no guarantees as per March 31, 2021 and March 31, 2020.

9. Management compensation in accordance with Art. 663bbis Swiss Code of Obligations

2020/2021	Base Compensation (Shares)	Base Compensation (Cash)
CHF	Number of Shares	CHF
Board of Directors
Dr. Hans Baumgartner (Chairman & Delegate)	1,423	75,000
Martin Eberhard	474	25,000
Dr. Petra Salesny	—	—
Fidelis Götz	474	25,000
Total	2,371	125,000

2019/2020	Base Compensation (Shares)	Base Compensation (Cash)
CHF	Number of Shares	CHF
Board of Directors
Dr. Hans Baumgartner (Chairman & Delegate)	1,235	75,000
Martin Eberhard	411	25,000
Dr. Petra Salesny	—	—
Fidelis Götz	411	25,000
Total	2,057	125,000

Private Equity Holding AG does not have an Advisory Board.

The Company's share of social security contributions is shown under other compensation.

During the period under review, Private Equity Holding AG did not pay any direct or indirect compensation or allocate any shares or options to former members of governing bodies (prior reporting period: none).

During the period under review, no compensation that are not customary in the market were paid directly or indirectly to persons, who are close to members of governing bodies or close to former members of governing bodies (prior reporting period: none).

10. Management share ownership in accordance with Art. 663c Swiss Code of Obligations

March 31, 2021	Share ownership	Options	Total
Board of Directors
Dr. Hans Baumgartner (Chairman and Delegate)	228,947	—	228,947
Dr. Petra Salesny 1	63,737	—	63,737
Fidelis Götz	1,881	—	1,881
Martin Eberhard	77,828	—	77,828
Total	372,393	—	372,393
Manager (ALPHA Associates AG)
C+E Holding AG	637,226	—	637,226
Dr. Peter Derendinger	187,500	—	187,500
Jürg Kägi	320	—	320
Petr Rojicek	72,852	—	72,852
Total	897,898	—	897,898

1 Dr. Petra Salesny is listed in her capacity as member of the Board of Directors. She remains COO of the portfolio manager and member of the shareholder group Alpha Associates.

March 31, 2020	Share ownership	Options	Total
Board of Directors
Dr. Hans Baumgartner (Chairman and Delegate)	226,031	—	226,031
Dr. Petra Salesny 1	60,737	—	60,737
Fidelis Götz	1,391	—	1,391
Martin Eberhard	77,338	—	77,338
Total	365,497	—	365,497
Manager (ALPHA Associates AG)
C+E Holding AG	637,226	—	637,226
Dr. Peter Derendinger	177,500	—	177,500
Jürg Kägi	320	—	320
Petr Rojicek	63,730	—	63,730
Total	878,776	—	878,776

1 Dr. Petra Salesny is listed in her capacity as member of the Board of Directors. She remains COO of the portfolio manager and member of the shareholder group Alpha Associates.

11. Foreign exchange gains/losses due to conversion into presentation currency

The foreign exchange gains recorded in the income statement mainly result from the translation of the financial statements from EUR (which is the functional currency of the Company) into the presentation currency CHF. Assets and liabilities are converted into CHF with the period-end EUR/CHF exchange rate, which was 1.1061 as of March 31, 2021 (March 31, 2020: 1.0602) whereas equity positions (excl. profit/(loss) for the period) are converted at historical exchange rates. The income statement is converted at the average exchange rate for the reporting period which was 1.0766 for 2020/2021 (2019/2020: 1.0961).

12. Significant events after the balance sheet date

There were no significant events after the balance sheet date.

13. Risk assessment

Private Equity Holding AG runs a centralised risk management system which separates strategic risks from operative ones. This risk schedule is the objective of an annual detailed discussion process in the meetings of the Board of Directors. The permanent observation and control of the risks is a management objective.

For identified risks, which arise from the accounting and financial reporting, a risk assessment is performed. Within the Internal Control System framework on financial reporting relevant control measures are defined, which reduce the financial risk. Remaining risks are categorised depending on their possible impact (low, average, high) and appropriately monitored.

14. Appropriation of available earnings

CHF 1,000
Profit/(loss) for the period	(4,941)
Voluntary retained earnings	101,440
Total voluntary retained earnings	96,499
Reallocation from legal reserves from capital contributions to voluntary retained earnings 1	2,750
At the disposal of the Annual General Meeting	99,249

1 The Board of Directors' proposal to the Annual General Meeting to be held on June 2, 2021, is subject to the actual number of shares entitled to dividends at the time of dividend payment. Own shares held by Private Equity Holding AG are not entitled to dividends.

As of the date of this report, the Board of Directors proposes that a dividend of CHF 2.00 is paid per registered share, which will be paid half from reserves from capital contributions and half from voluntary retained earnings. As a consequence, 50% of the dividend payment will be effected free of Swiss withholding tax for Swiss residents, while the other half will be subject to Swiss withholding tax of 35%.

CHF 1,000
At the disposal of the Annual General Meeting	99,249
Dividend payment 1	(5,500)
To be carried forward 1	93,749

1 The Board of Directors' proposal to the Annual General Meeting to be held on June 2, 2021, is subject to the actual number of shares entitled to dividends at the time of dividend payment. Own shares held by Private Equity Holding AG are not entitled to dividends. Consequently, the actual amount of dividend paid will be lower and the amount carried forward will be higher than stated above.

Report of the Statutory Auditor on the Financial Statements

Statutory Auditor's Report

To the General Meeting of Private Equity Holding AG, Zug

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Private Equity Holding AG, Zug, which comprise the balance sheet as at 31 March 2021, and the income statement for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion the financial statements (pages 44 to 50) for the year ended 31 March 2021 comply with Swiss law and the company's articles of incorporation.

Basis for Opinion

We conducted our audit in accordance with Swiss law and Swiss Auditing Standards. Our responsibilities under those provisions and standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the entity in accordance with the provisions of Swiss law and the requirements of the Swiss audit profession and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Report on Key Audit Matters based on the circular 1/2015 of the Federal Audit Oversight Authority

We have determined that there are no key audit matters to communicate in our report.

Responsibility of the Board of Directors for the Financial Statements

The Board of Directors is responsible for the preparation of the financial statements in accordance with the provisions of Swiss law and the company's articles of incorporation, and for such internal control as the Board of Directors determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors is responsible for assessing the entity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the entity or to cease operations, or has no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Swiss law and Swiss Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with Swiss law and Swiss Auditing Standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made.
• Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the entity to cease to continue as a going concern.

We communicate with the Board of Directors or its relevant committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Board of Directors or its relevant committee with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the Board of Directors or its relevant committee, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report, unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

In accordance with article 728a para. 1 item 3 CO and the Swiss Auditing Standard 890, we confirm that an internal control system exists, which has been designed for the preparation of financial statements according to the instructions of the Board of Directors.

We further confirm that the proposed appropriation of available earnings complies with Swiss law and the company's articles of incorporation. We recommend that the financial statements submitted to you be approved.

KPMG AG

Thomas Dorst Christoph Hochuli

Licensed Audit Expert Auditor in Charge

Licensed Audit Expert

Zurich, 10 May 2021

Corporate Governance

Private Equity Holding AG is committed to good corporate governance and transparency and accountability to its shareholders. The following disclosure follows the structure and is in accordance with the latest Directive on Information relating to Corporate Governance of the SIX Swiss Exchange.

1. Group structure and shareholders

1.1 Group structure

1.1.1 Operational group structure

The structure of Private Equity Holding AG ("PEH" or the "Company"), its subsidiaries (together the "Group") and service providers as of March 31, 2021 is depicted in the following diagram:

1.1.2 Listed company

The only listed company in the Group is Private Equity Holding AG. PEH is a stock company incorporated under Swiss law with its registered office at Gotthardstrasse 28, 6302 Zug. The Company is listed on the SIX Swiss Exchange under Swiss security number 608 992 as well as the ISIN code CH 000 608 9921 (short code PEHN).

The market capitalisation of the Company (based on total number of shares: 2,750,000) as of March 31, 2021 is EUR 183.98 million (CHF 203.50 million).

As of March 31, 2021, PEH held 210,872 of its shares in treasury (7,67% of the total issued share capital). The subsidiaries do not hold any shares in the parent company.

1.1.3 Non-listed companies in the Group

With one exception, all subsidiaries of the Company are non-listed holding companies owned 100%, either directly or indirectly, by the Company; PEH Invest LP is indirectly owned 93.04% through Private Equity Direct Finance. The remainder is held by senior employees of Alpha Associates, who participate in direct co-investments through this vehicle, which ensures an increased alignment of interest. The subsidiaries Private Equity Fund Finance Ltd. and Private Equity Direct Finance Ltd. are registered at 4th Floor, One Capital Place, KY1-1103, Grand Cayman, Cayman Islands. The Limited Partnerships PEH Holdings LP and PEH Parallel Holdings LP are registered at the same address; they are pooling vehicles holding immaterial sub-sets of portfolio investments. PEH Invest LP is registered at this address, as well. The share capital of Private Equity Fund Finance Ltd. amounts to CHF 13,885,000, that of Private Equity Direct Finance Ltd. to CHF 200,000,000.

Also refer to Note 3 (Participations) to the Statutory Financial Statements of this Annual Report on page 46.

1.2 Significant shareholders

As of March 31, 2021 and March 31, 2020 the following major shareholders were known to the Company:

Holding in % of share capital	31.03.21	31.03.20
Between 5% and 10%	Private Equity Holding AG (Zug, 210,872 shares, registered without voting rights);	Private Equity Holding AG (Zug, 155,689 shares, registered without voting rights)
	Dr. Hans Baumgartner (Adliswil, 228,947 shares or 8.33% of the voting rights)	Dr. Hans Baumgartner (Adliswil, 226,031 shares or 8.22% of the voting rights)
Between 33.33% and 50%	ALPHA Associates Group 1 (Zurich, 961,315 shares or 34.96% of the voting rights)	ALPHA Associates Group 1 (Zurich, 939,193 shares or 34.15% of the voting rights)

1 The ALPHA Associates Group comprises ALPHA Associates AG, C+E Holding AG, Dr. Peter Derendinger, Dr. Petra Salesny and Petr Rojicek.

All changes in the Company's shareholder base that were reported and disclosed in accordance with Art. 120ff. Financial Markets Infrastructure Act (FinMIA) during the financial year 2020/2021 (2019/2020) as well as any updates on shareholdings reported thereafter can be obtained from the SIX website at: https://www.ser-ag.com/de/topics/ disclosure-of-shareholdings.html.

1.3 Cross-shareholdings

There are no cross-shareholdings.

2. Capital structure

2.1 Capital

Private Equity Holding AG has an issued ordinary share capital of CHF 16.5 million, divided into 2,750,000 registered shares with a nominal value of CHF 6 per share. All shares are fully paid-in. A contingent capital of CHF 9.0 million is in place, of which nil has been issued.

2.2 Authorised and contingent capital

The 2014 Annual General Meeting approved the creation of new authorised and also contingent capital. The authorised capital expired on July 3, 2016, while the contingent capital remains in place:

The share capital of the Company may be increased by a maximum of CHF 9.0 million by issuing a maximum of 1,500,000 registered shares to be fully paid-in and having a nominal value of CHF 6 each, of which (a) up to CHF 3.0 million as a result of the exercise of option rights granted to existing shareholders and (b) up to CHF 6.0 million as a result of the exercise of option or conversion rights granted in connection with bond issues or other financial market instruments by the Company or any of its subsidiaries. At the maximum of CHF 9.0 million, this increase would equate to 54.55% of the existing share capital. For further details, specifically the exclusion of subscription rights, please refer to Art. 3b of the Articles of Association (https://www.peh.ch/portrait/corporate-documents/).

2.3 Changes in capital since March 31, 2018

Since March 31, 2018, the Company's and the Group's equity capital have developed as follows:

	31.03.18	31.03.19	31.03.20	31.03.21
Share capital (CHF 1,000)	16,500	16,500	16,500	16,500
Contingent capital	9,000 (issued: 0)	9,000 (issued: 0)	9,000 (issued: 0)	9,000 (issued: 0)
Total equity PEH (Statutory capital, CHF 1,000)	189,101	178,820	172,438	161,713
Total equity Group (IFRS capital, EUR 1,000)	203,412	220,948	230,666	308,069

Please refer also to the Statements of Changes in Equity (IFRS financial statements) and Annual Reports of prior reporting periods, which can be downloaded at https://www.peh.ch/reports/annual-report/.

The 2018 Annual General Meeting decided on a repayment of share premium (paid-in capital) in the amount of CHF 2.00 per outstanding share (no repayment of share premium was made on treasury shares).

The 2019 Annual General Meeting decided on a repayment of share premium (paid-in capital) in the amount of CHF 2.00 per outstanding share (no repayment of share premium was made on treasury shares).

The 2020 Annual General Meeting decided on a distribution from capital contribution reserves in the amount of CHF 0.50 per share and from voluntary retained earnings in the amount of CHF 0.50 per share.

2.4 Shares and participation certificates

Private Equity Holding AG has an issued share capital of CHF 16,500,000 (EUR 10,311,000, converted at historical exchange rate), divided into 2,750,000 fully paid-up registered shares with a par value of CHF 6 each. Each share, if and when registered in the Company's register of shareholders, carries one vote and all shares enjoy the same dividend rights in accordance with Swiss law. There are no preferential rights of any nature attached to any of the shares.

The Company has not issued any participation certificates.

2.5 Dividend-right certificates

The Company has not issued any profit sharing certificates (Genussscheine).

2.6 Limitations on transferability and nominee registrations

There are no transfer restrictions whatsoever. There are no restrictions on nominee registrations.

2.7 Convertible bonds and warrants/options

No convertible bonds, warrants or options to purchase shares have been issued by the Company or any of its subsidiaries. The Group has no employees, and no employee stock option plan is in place.

3. Board of Directors

3.1 Members

Pursuant to the Company's Articles of Association (available at www.peh.ch), the Board of Directors consists of at least three members. At the end of the financial year 2020/2021, the Board of Directors was composed as follows:

Dr. Hans Baumgartner, Chairman and Delegate, 1954, Swiss citizen

Dr. Hans Baumgartner is an attorney-at-law in Zurich. He graduated from the University of Zurich in 1978 with a degree in law and obtained a PhD in 1990. He also holds an LL.M. from the European Institute of the University of Zurich in banking and insurance law. From 1981 until 1992, Dr. Hans Baumgartner was district attorney in Zurich, from 1986 he specialised in economic crime. In 1992 he became judge at the District Court of Zurich. Since 1994, Dr. Hans Baumgartner works as an independent attorney-at-law in Zurich. He is senior partner at the law office Baumgartner Mächler. In addition, he has been a judge at the Military Court of Appeals from 1988 to 2004. He also serves as Chairman of miniswys AG, a technology company in Biel, LinthSol AG, a renewable energy company in Linthal, and is a member of the Board of Directors of Elster & Salis AG, Zürich, PROPBase AG, Neuhausen am Rheinfall, and tbgs Technische Betriebe Glarus Süd.

Martin Eberhard, Member, 1958, Swiss citizen

Martin Eberhard works as an entrepreneur specialising in project financing. From 2000 until 2009 Martin Eberhard served as founder and CEO of Neue Zürcher Bank. Prior, Mr. Eberhard held various senior positions at Bank Julius Baer, Zurich; in 1996 he became a Member of the Management Board and in 1998 a member of the Executive Board Brokerage Europe. Before joining Julius Baer he worked for Swiss Bank Corporation in Zurich, Geneva and New York. Mr. Eberhard completed the Swiss Banking School and an Advanced Executive Program at Kellogg Graduate School of Management, USA.

Fidelis Götz, Member, 1966, Liechtenstein citizen

Fidelis Götz is a Partner at Daniel Gresch & Partner, an independent financial services consultancy, acting as a counsel for boards and management of foundations and family offices. Mr. Götz was Co-Head Private Banking at Bank Sarasin & Cie and Head Private Banking North Asia at Credit Suisse and brings 25 years of experience in investment banking, private banking and asset management as well as non-profit management in emerging markets. Mr. Götz is involved in several non-profit organisations and Chairman of Real Unit Schweiz, Zug, and member of the Board of Directors of VP Bank (Schweiz) AG, Zurich, and PROPBase AG, Neuhausen am Rheinfall. Fidelis Götz holds a Master of Political Science from the University of St.Gallen (HSG) with a major in International Relations.

Dr. Petra Salesny, Member, 1971, Austrian citizen

Petra Salesny is a founding partner and COO of Alpha Associates and prior to the team's spin-out from Swiss Life Private Equity Partners (SLPEP) was Chief Operations Officer of SLPEP. Previously, Dr. Petra Salesny was the legal advisor to the private equity team at Bank Vontobel and a consultant for M&A at Helbling CFT International Ltd. in Düsseldorf and Zurich, where she structured and coordinated cross-border transactions of mid-sized companies. Dr. Petra Salesny is admitted to the New York Bar and holds a Master of Laws from New York University. She graduated from the Law School of the University of Vienna and received a Ph.D. in law from the University of Basle.

Apart from Dr. Hans Baumgartner in his capacity as Delegate of the Board of Directors, none of the Directors has had an operational role within the Company in the three financial years prior to the reporting period.

None of the Directors have significant business relationships with Private Equity Holding AG or any of its subsidiaries. Dr. Petra Salesny is a managing partner of Alpha Associates AG and represents the shareholder group Alpha Associates on the Board of Directors.

3.2 Other activities and vested interests

Please refer to the CVs in section 3.1 above.

3.3 Statutory limits on other activities

The Directors are not allowed to carry out more than 10 other mandates, of which not more than five in companies publicly listed on a stock exchange. Please refer to article 17 of the Articles of Association (available at https://www. peh.ch/portrait/corporate-documents/).

3.4 Elections and terms of office

According to Art. 17 of the Company's Articles of Association (available at https://www.peh.ch/portrait/corporatedocuments/), the members of the Board of Directors, the Chairman of the Board of Directors, the members of the Compensation Committee as well as the independent proxy (Art. 13a) are elected by the shareholders of the Company for a term of one year, ending with the end of the subsequent Annual General Meeting. Directors may be re-elected for one or more subsequent periods. Directors may be dismissed by shareholders' vote or resign before the end of their term.

Name	Function	Date of first election to Board	Expiration of Term
Dr. Hans Baumgartner	Chairman & Delegate	December 7, 2006	Annual General Meeting 2021
Martin Eberhard	Member	June 24, 2010	Annual General Meeting 2021
Fidelis Götz	Member	July 12, 2018	Annual General Meeting 2021
Dr. Petra Salesny	Member	July 12, 2018	Annual General Meeting 2021

The terms of office of the Board of Directors are as follows:

This Board of Directors was re-elected at the Annual General Meeting of Private Equity Holding AG on June 30, 2020.

3.5 Internal organisational structure

3.5.1 Allocation of tasks within the Board of Directors

The tasks within the Board of Directors are allocated as follows:

Name	Function	Tasks and Main Focus
Dr. Hans Baumgartner	Chairman & Delegate	Day to day management
Martin Eberhard	Member	Investor relations, banking specialist
Fidelis Götz	Member	Investor relations, banking specialist
Dr. Petra Salesny	Member	Alternative asset specialist

The Board of Directors is responsible for the ultimate direction, supervision and control of the Company and the Group's investment manager and administrator. The core tasks of the Board of Directors according to the Swiss Code of Obligations ("CO") and the regulations of Private Equity Holding AG are:

• Organisational regulations;
• Investment strategy and asset allocation;
• Strategic & financial planning;
• Overall supervision;
• Relationships with shareholders.

3.5.2 Composition and tasks of the Compensation Committee

At the Annual General Meeting 2020, the shareholders elected Martin Eberhard, Fidelis Götz and Dr. Petra Salesny to the Compensation Committee. The members of the Committee elected Martin Eberhard as Chairperson of the Committee.

The Compensation Committee supports the Board of Directors in the determination and implementation of the guidelines and rules for the Compensation of the members of the Board of Directors and the Delegate of the Board and prepares all board matters referring to Compensation. In particular, the Committee approves, within the total compensation limits as approved by the shareholders, the compensation of the individual members of the Board (including the Chairman) and the Delegate of the Board (please also refer to the Compensation Report on pages 64 and 65).

3.5.3 Mode of operation of the Board of Directors and the Compensation Committee

The Board of Directors convenes whenever business requires, but at least four times a year, and resolves all matters by majority vote in the presence of a majority of its members. In the financial year 2020/2021, the Board of Directors held seven meetings with an average duration of 50 minutes (ranging from 30 to 90 minutes).

Meetings are convened by the Chairman or upon the request of a member of the Board. Board members may participate in person or by telephone. Unless a member of the Board requests otherwise, decisions may be taken by circular resolution. Matters resolved by circular resolution require unanimity.

The Compensation Committee also convenes whenever business requires but at least once every year in preparation of the proposals to the AGM and resolves all matters by majority vote. Decisions may be taken by circular resolution.

The Board of Directors delegated the management of PEH's portfolio to ALPHA Associates AG ("ALPHA") and ALPHA Associates Cayman, LP ("ALPHAC"), which in turn is advised by ALPHA's private equity specialists in Zurich ("ALPHA", together "ALPHA Group").

The Delegate of the Board, with the support of ALPHA, prepares all matters to be handled by the Board and implements the Board's resolutions. The Board of Directors retains its primary, inalienable and non-transferable responsibilities according to Art. 716a CO and monitors all financial and operational matters of the Company, thereby maintaining a close working relationship with ALPHA.

The competencies of the Board of Directors, the Delegate of the Board, ALPHA and ALPHAC are set forth in the Organisational Regulations issued by the Board of Directors.

3.6 Definition of areas of responsibility

The Board of Directors is responsible for all tasks allocated to it by Swiss Law but has delegated certain matters to its Delegate and ALPHA and ALPHAC, respectively (as described in section 3.5.3. above).

3.7 Information and control instruments vis-à-vis the portfolio manager

The management of ALPHA works closely with the Chairman and Delegate of the Board of Directors, who meets with ALPHA's senior staff as business requires discussing portfolio matters. Dr. Petra Salesny is a member of the Board of Directors and the management team of ALPHA is in attendance at all meetings of the Board of Directors. ALPHA further issues monthly reports to the Board of Directors of the Company including balance sheet, income statement, cash-flow planning and fair value development per investment. Detailed investment, financial and performance data is recorded and maintained by ALPHA Group, as portfolio manager, in a customised IT database and monitoring tool. Extracts are made available to the Board of Directors on a regular basis.

4. Executive committee

4.1 Members of the executive committee

The Company has no employees and no executive committee. The Delegate of the Board of Directors is responsible for the day-to-day management of the Company. Please see section 3.1. above for the detailed CV of Dr. Hans Baumgartner.

4.2 Other activities and vested interests

Not applicable, as the Company has no employees and no executive committee.

4.3 Statutory limits on other activities

The Directors are not allowed to carry out more than 10 other mandates, of which not more than five in companies publicly listed on a stock exchange. Please refer to article 17 of the Articles of Association (available at https://www. peh.ch/portrait/corporate-documents/).

4.4 Investment Management Contracts

Since April 1, 2004, ALPHA Group provides investment management services and supports the Delegate of the Board with day-to-day administration services. For the terms of the agreements between PEH and its subsidiaries and ALPHA Group, please refer to Note 15 (Related party transactions) to the IFRS Statements of this Annual Report. Alpha Associates AG (ALPHA) has its registered office at Talstrasse 80, 8001 Zurich, Switzerland.

ALPHA supports the Delegate of the Board in providing administration support services to PEH for an annual fee of CHF 500,000 (excl. VAT). Administration services include accounting, corporate, legal and regulatory services and investor relations.

4.4.1 Investment Management Services

Investment management services are performed by ALPHAC in the Cayman Islands and include asset allocation, investment advice, the selection, execution and divestment of private equity fund and direct investments in accordance with the Company's investment strategy, cash management, arrangement of banking services, and all administrative and financial tasks of the Cayman Islands companies of the Group. ALPHA provides investment advisory services to ALPHAC. Such services include research, the identification and evaluation of investment opportunities, the monitoring of portfolio investments and the evaluation and presentation to the investment manager of potential exit strategies from investments.

4.4.2 Description of ALPHA Group

ALPHAC is a Cayman Islands limited partnership controlled by ALPHA and employs local professionals with knowledge and experience in accounting, financial management and investment management. ALPHA is a company incorporated under Swiss law with its registered office in Zurich. ALPHA is a fully independent private equity manager owned by the senior members of its team and a FINMA authorised manager of the assets of collective investment schemes. The ALPHA Group manages and advises various private equity, infrastructure and private debt investment programs and separate managed accounts.

ALPHA's Management Team is composed as follows:

Dr. Peter Derendinger, Partner, CEO, 1959, Swiss citizen.

Peter Derendinger is a founding partner of Alpha Associates and prior to the team's spin-out from Swiss Life Private Equity Partners (SLPEP) was a member and delegate of the board of directors of SLPEP and responsible for the operations of the company from May 2003 to April 2004. After starting his career as an attorney-at-law, Peter Derendinger held several positions with Credit Suisse, where his last assignment was as Chief Financial Officer and Head of the Corporate Center at Credit Suisse Private Banking. Earlier appointments include Managing Director and General Counsel of Credit Suisse Group and Head of Legal and Tax at Credit Suisse First Boston (Europe) in the early 1990s. Peter Derendinger is the Chairman of Credit Suisse (Switzerland) AG and member of the board of several investment and portfolio companies. Peter Derendinger holds a Ph.D. in law from the University of Fribourg and a Master of Laws from Northwestern University, Chicago.

Petr Rojicek, Partner, CIO, 1961, Czech citizen.

Petr Rojicek is a founding partner of Alpha Associates and prior to the team's spin-out from Swiss Life Private Equity Partners (SLPEP) was Chief Investment Officer of SLPEP. Prior to this he was a member of the private equity team at Bank Vontobel focused on Central & Eastern Europe and worked in investment banking at UBS in Zurich and London, where he was engaged in corporate finance transactions for financial institutions in Emerging Markets. He began his career as a civil engineer in the construction industry and later on worked for American Appraisal, a worldwide valuation consulting firm, in Prague. Petr Rojicek serves on many advisory boards of private equity funds and as director of portfolio companies. Petr Rojicek holds a M.Sc. degree from the Czech Technical University of Prague and an MBA from the Simon School of the University of Rochester.

Dr. Petra Salesny, Partner, COO, 1971, Austrian citizen.

Petra Salesny is a founding partner of Alpha Associates and prior to the team's spin-out from Swiss Life Private Equity Partners (SLPEP) was Chief Operations Officer of SLPEP. Previously, Dr. Petra Salesny was the legal advisor to the private equity team at Bank Vontobel and a consultant for M&A at Helbling CFT International Ltd. in Düsseldorf and Zurich, where she structured and coordinated cross-border transactions of mid-sized companies. Dr. Petra Salesny is admitted to the New York Bar and holds a Master of Laws from New York University. She graduated from the Law School of the University of Vienna and received a Ph.D. in law from the University of Basle.

Jürg Kägi, Principal, CFO, 1978, Swiss citizen.

Jürg Kägi joined Alpha Associates in 2018 from Itaú Private Bank Switzerland where he was Head of Finance. Previously, he worked for more than 10 years as Senior Manager at Ernst & Young and as Manager at PwC, serving local and international banks as well as asset managers. He holds a Master in Banking and Finance from the University of Zurich and is a Swiss Certified Public Accountant.

Peter Wolfers, Principal, CRO, 1981, German citizen.

Peter Wolfers re-joined Alpha Associates in February 2010. Previously Peter was a private equity investment professional at Horizon21, a Swiss investment manager. Peter Wolfers started his career at Alpha Associates in 2005 as a member of the investment team, first as Analyst and later as Associate. Peter Wolfers is a guest lecturer on private equity and member of the managing board of the Swiss Association of Investment Companies. Peter Wolfers graduated from the University of Zurich and holds an M.A. in Economics and an LL.M. from the University of Münster, Germany.

For further information on ALPHA and its key staff please consult their website at www.alpha-associates.ch.

5. Compensation, shareholdings and loans

5.1 Content and method of determining the compensation and share-ownership programs

The compensation awarded to the members of the Board of Directors is determined in accordance with the scope of activities and the responsibility and functions of the individual members.

Compensation of the Board of Directors of the Company is effected in accordance with the provisions of the Articles of Association (available at https://www.peh.ch/portrait/corporate-documents/), in particular Art. 26. Compensation is fixed and does not contain any variable components dependent on the financial performance of the Company; further, the Company does not grant credits or loans to the Directors. While the Board of Directors is compensated in cash for all its duties, it may elect bodily to be fully or partially paid in shares of the Company. In this case, shares are allotted at market price replacing the respective cash compensation. The Board of Directors decides on the timing of allotment and may set lock-up periods for such shares.

The Compensation Committee determined that the members of the Board of Directors shall be compensated as follows (pro-rata when a mandate is not executed for a full year):

Compensation	CHF
Chairman	75,000 p.a.
Member	50,000 p.a.
Delegate (in addition to Chairman's/Member's Compensation)	75,000 p.a.

The compensation is paid annually. The employer's share of the AHV/ALV contribution is borne by the Company.

Travel and other reasonable out-of-pocket expenses related to the attendance of Board meetings are covered by the Company. Directors may furthermore be paid all other expenses properly incurred by them in connection with the business of the Company.

The Company does not grant any loans to or guarantee any liabilities of the members of the Board of Directors. None of the Directors is entitled to any special compensation upon departure.

For further information regarding the disclosure of compensation paid to the members of the Board of Directors for the financial years 2020/2021 and 2019/2020, please refer to Note 9 to the Financial Statements of PEH AG (Management compensation) and the separate Compensation Report on pages 64 and 65.

The management, administration and performance fee arrangements between the Company and its subsidiaries and ALPHA Group are set forth in an administrative services agreement and an investment management agreement, respectively; the calculation of the fees follows industry standards and is audited by the Group's auditors.

For further information regarding the disclosure of administration, management and performance fees under the administration and management agreements between PEH and its subsidiaries with ALPHA and ALPHAC, please refer to Note 15 to the IFRS Financial Statements (Related party transactions).

5.2 Statutory provisions on compensation and performance-based incentives in specific

5.2.1 Statutory provisions on performance-based incentives, the allotment of shares and additional amounts available for newly elected members of Management

The compensation paid to the Members and Chairman/Delegate of the Board of Directors is fixed and does not contain any variable components dependent on the financial performance of the Company.

The Board of Directors is compensated in cash for all its duties, however, it may elect bodily to be fully or partially paid in shares of the Company. In this case, shares are allotted at market price replacing the respective cash compensation. The Board of Directors decides on the timing of allotment and may set lock-up periods for such shares.

If the total amount of compensation approved by the Annual General Meeting does not suffice to cover for the compensation of a newly elected Delegate of the Board or Member of the Management, the Company may pay any such person an additional amount which in total is limited to 50% of the average total compensation paid to the Delegate of the Board and Management over the last three years. The Annual General Meeting does not vote retroactively on this additional compensation. If the capped amount does not suffice to compensate the newly elected individuals, any additional compensation can only be paid with the decision of the next ordinary Annual General Meeting.

5.2.2 Statutory provisions on loans and credits to Board Members and Management

The Company does not grant credits or loans to the Directors or Management, i.e. the Delegate of the Board of Directors.

5.2.3 Statutory provisions on voting on compensation

The Annual General Meeting approves a maximum total compensation for the members of the Board of Directors as well as a maximum amount paid in addition to the Delegate of the Board of Directors for the current financial year. If the Annual General Meeting declines a compensation proposal by the Board of Directors, the Board of Directors is entitled to make a modified proposal with a lower total compensation. If this revised proposal is also declined by the Annual General Meeting, the Board of Directors has to call an extraordinary Annual General Meeting to discuss and vote on this item again.

The 2020 Annual General Meeting approved a maximum total compensation in the amount of CHF 200,000 p.a. for the members of the Board of Directors and a maximum total compensation in the amount of CHF 100,000 p.a. for the Delegate of the Board of Directors (in addition to Chairman's/Member's compensation). Dr. Petra Salesny foregoes the compensation for her work as a member of the Board of Directors; at the same time, Dr. Petra Salesny is a Managing Partner and founding shareholder of Alpha Associates AG, which renders administrative services to PEH AG and is compensated for such services as disclosed in Note 15 on page 36 of this report. Alpha Associates AG does not indirectly and separately compensate Dr. Petra Salesny for her work as a member of the Board of Directors of PEH AG.

6. Shareholders' participation rights

6.1 Voting-rights and representation restrictions

There are no voting rights or representation restrictions in the Company's Articles of Association (available at https:// www.peh.ch/portrait/corporate-documents/). Each shareholder whose shares are registered in the Company's register of shareholders is entitled to participate in the Company's General Meetings and vote his or her shares at his or her discretion.

Instead of attending a meeting in person, a registered shareholder may appoint a proxy, who does not need to be a shareholder. Shareholders may be represented by a specially designated independent shareholders' representative ("unabhängiger Stimmrechtsvertreter"). Proxies must be in writing.

6.1.1 Restrictions on voting rights

Each share, if and when registered in the Company's register of shareholders, carries one vote and all shares enjoy the same dividend rights in accordance with Swiss law. There are no preferential rights of any nature attached to any of the shares, neither any restrictions on voting.

6.1.2 Voting through shareholders' representative

Shareholders may be represented by a specially designated independent shareholders' representative ("unabhängiger Stimmrechtsvertreter"). Proxies must be given in writing or submitted through an electronic system. The invitation to the Annual General Meeting contains further information on this; please also refer to article 13a of the Company's Articles of Association (available at https://www.peh.ch/portrait/corporate-documents/).

6.2 Statutory quorums

There are no statutory quorums in the Company's Articles of Association. Except as provided for a limited number of important decisions as set forth in Art. 704 CO, which require a qualified majority, the General Meeting adopts all resolutions with a majority of the votes cast at the meeting; abstentions are not counted as votes cast. Voting is secret if so requested by one or more shareholders representing at least 5% of the represented shares or upon direction of the Chairman of the meeting.

6.3 Convocation of the General Meeting of shareholders

In accordance with Swiss company law and the Articles of Association (available at https://www.peh.ch/portrait/ corporate-documents/), General Meetings of shareholders are convened by the Board of Directors or, if necessary, by the auditors of the Company. Ordinary General Meetings are convened annually within 6 months after financial yearend. Extraordinary General Meetings are convened upon resolution of the shareholders or the Board of Directors, upon request of the auditors, or upon written request to the Board of Directors by one or more shareholders holding an aggregate of at least 10% of the Company's share capital.

Notice of General Meetings is given to the registered shareholders by letter at least 20 days prior to such meeting by the Board of Directors. The notice states the place and time of the meeting, the items on the agenda and the proposals of the Board of Directors with respect to each item and any items and proposals placed on the agenda by shareholders, the type of proof of ownership of shares and notice that the business report and auditors' report are available for inspection by the shareholders at the registered office of the Company.

6.4 Inclusion of item on the agenda

Shareholders holding shares with an aggregate nominal value of at least CHF 1 million have the right to request in writing that a specific item be put on the agenda. Such requests have to be received by the Board of Directors 30 days prior to the General Meeting in writing. Proposals regarding items not included in the agenda may be admitted for discussion by shareholder resolution but may be voted on only at the following General Meeting, except a motion for the calling of an Extraordinary General Meeting or a motion for a special audit. Proposals regarding items on the agenda may be made without prior request.

6.5 Inscriptions into the share register

Following the purchase of PEH shares on- or off-exchange, the purchaser (normally through its bank) may request that his or her shares shall be registered in the Company's register of shareholders. The Company recognises only one holder per share. The register contains, i.a., the name and address of the registered shareholders.

Only shareholders registered in the Company's register of shareholder as of the cut-off date are entitled to attend and vote at General Meetings. The cut-off date for each meeting is the date on which the invitation for the General Meeting is mailed to the shareholders (Art. 6.2 of the Company's Articles of Association, please refer to https://www. peh.ch/portrait/corporate-documents/). The dates of the Company's General Meetings and the meeting invitations are published on its website for ease of reference.

7. Change of control and defence measures

7.1 Duty to make an offer

According to Art. 135 FinMIA, any person, whether acting directly, indirectly or in concert with third parties, acquiring shares in a company established and listed in Switzerland, which shares when added to any shares already owned by such person exceed the threshold of 33 1/3% of the voting rights of the company, must offer to acquire all listed shares of the company. This obligation does not apply if the shares have been acquired as a result of donation, succession or partition of an estate, by operation of matrimonial property law or through execution of a judgment.

Since the Annual General Meeting 2014, the Articles of Association of Private Equity Holding AG provide for a statutory "opting out" from Art. 135 FinMIA in accordance with Art. 125 par. 4 FinMIA. Accordingly, the obligation described above does not apply. For further details please see article 6bis of the Company's Articles of Association, which are available at https://www.peh.ch/portrait/corporate-documents/.

7.2 Clauses on changes of control

There are no specific clauses on change of control in the Company's Articles of Association. In particular, neither the members of the Board of Directors nor ALPHA Group are entitled to any additional compensation specifically as a result of any person acquiring control over the Company.

8. Auditors

8.1 Duration of the mandate and term of office of the Auditors

The auditors of the Company and the Group are KPMG AG, Zurich ("KPMG"). KPMG have been acting as statutory auditors and auditors of the IFRS accounts of the Company since June 25, 2009. The lead auditor on the mandate is Mr. Thomas Dorst, Swiss Certified Accountant. The rotation interval that applies to the lead auditor is the statutory maximum of seven years, according to Art. 730a par. 2 of the Swiss Code of Obligations.

The auditors are elected by the Annual General Meeting for the term of one year, which ends with the date of the next Annual General Meeting. Re-election is possible (Art. 27 of the Company's Articles of Association; please refer https://www.peh.ch/portrait/corporate-documents/).

8.1.1 Duration of the mandate

KPMG AG, Zurich, have been acting as statutory auditors and auditors of the IFRS accounts of the Company since June 25, 2009 and been re-elected for a one-year period ending with the AGM 2021. Further re-election is possible.

8.1.2 Starting date of the lead auditor

Thomas Dorst (KPMG AG) has been acting as lead auditor since July 8, 2016.

8.2 Audit fees

The audit fees to KPMG in the financial year ending March 31, 2021 amounted to CHF 127,086 (incl. VAT) for the audit of the statutory and IFRS financial statements of the Company.

8.3 Additional fees

The Company paid additional fees to KPMG for tax-related advisory services CHF 5,711 (incl. VAT).

8.4 Information instruments pertaining to the external audit

The Board of Directors and ALPHA provide the auditors with all the necessary information in connection with the audit and the financial statements, which are prepared by ALPHA and ALPHAC, respectively.

The auditors are updated on the decisions that have been taken in the meetings of the Board of Directors and review the relevant documents on a regular basis. The auditors also keep the Board of Directors regularly informed about the audit process. Information is exchanged, as the case may be, by way of written communication, telephone conferences or in private sessions.

The Board of Directors and the auditors meet at least once a year to discuss the audit services provided by the auditors during the year as well as the annual financial statements. The Board of Directors also assesses the adequacy of the auditors' fees by examining the fees of the previous year and the expected fees for the current business year. Moreover, it assesses the independence of the auditors as well as the audit plan for the next audit period.

The auditors inform the Board of Directors once a year about their findings regarding the Company's and ALPHA's Internal Control System.

9. Information policy

The Group reports on its financial performance on a semi-annual basis. The Company's financial year ends on March 31. The annual result is stated according to IFRS and for the stand-alone entity. The year-end figures are audited.

The Group prepares semi-annual reports and publishes them in full on the Company's website www.peh.ch.

The net asset value per PEH share and additional key information are published on a monthly basis, normally within six working days of the end of each month.

In between the semi-annual report publications, all relevant information (including information subject to ad-hoc publicity according to sec. 53 of the listing rules) is published in the form of news releases, which are available on the Company's website.

Information about the current and historical prices of the Company's shares, which are listed under short code PEHN on the SIX Swiss Exchange, can be obtained free of charge under the following links:

https://www.six-group.com/exchanges/ or http://www.peh.ch.

Shareholders and other interested parties may subscribe to press releases at www.peh.ch to receive information automatically upon publication by e-mail. For further information, please contact:

Private Equity Holding AG Gotthardstrasse 28 CH-6302 Zug Phone +41 41 726 79 80 Fax +41 41 726 79 81 info@peh.ch

The section Information for Investors on page 68 includes information on upcoming events and publications.

Compensation report

The compensation report for the financial year 2020/2021 contains information about the compensation system, procedures for determining compensation, and the compensation paid to members of the Board of Directors and the Delegate of the Board of Directors of Private Equity Holding AG ("PEH" or the "Company").

The content and scope of the information provided is based on the Articles of Incorporation of PEH, the transparency requirements set out in Articles 13-16 of the Ordinance against Excessive Compensation at Listed Joint-Stock Companies (OaEC) and Article 663bbis of the Swiss Code of Obligations, the SIX Swiss Exchange Directive on Information relating to Corporate Governance and the principles of the Swiss Code of Best Practice for Corporate Governance drawn up by Economiesuisse.

1. Governance

On February 7, 2014, the Board of Directors of PEH established a Compensation Committee. The members of the Compensation Committee were individually elected at the 2020 Annual General Meeting and the committee consists of Martin Eberhard, Fidelis Götz and Dr. Petra Salesny. The members of the Committee elected Martin Eberhard as Chairperson of the Committee.

The Compensation Committee supports the Board of Directors in the determination and implementation of the guidelines and rules for the compensation of the members of the Board of Directors and the Delegate of the Board and prepares all board matters referring to Compensation. In particular, the Committee approves the compensation of the individual members of the Board (including the Chairman) and the Delegate of the Board.

The Committee meets upon invitation of the Chairperson of the Compensation Committee or at the request of another member of the Compensation Committee, as frequently as necessary, and has met twice for quarter of an hour during the reporting year 2020/2021 (once for quarter of an hour in 2019/2020).

Dr. Hans Baumgartner is Chairman of the Board of Directors and also Delegate of the Board of Directors with overall responsibility for the day-to-day management of the Company. See also section 3.5.1 of the Corporate Governance report.

2. Procedures for determining compensation

The 2020 Annual General Meeting approved a maximum total compensation in the amount of CHF 200,000 p.a. for the members of the Board of Directors and a maximum total compensation in the amount of CHF 100,000 p.a. for the Delegate of the Board of Directors (in addition to Chairman's/Member's compensation). The compensation awarded to the members of the Board of Directors and to the Delegate of the Board of Directors is determined within this range at the Compensation Committee's sole discretion taking into account the scope of activities and the responsibility and functions of the individual members. Neither the Board nor the Compensation Committee have consulted external advisors for this purpose.

3. Compensation policy

The compensation of the Board of Directors of the Company is effected in accordance with the provisions of the Articles of Association, in particular Art. 26 (https://www.peh.ch/portrait/corporate-documents/). Compensation is fixed and does not contain any variable components dependent on the financial performance of the Company; further, the Company does not grant credits or loans to the Directors. While the Board of Directors is compensated in cash for all its duties, it may elect bodily to be fully or partially paid in shares of the Company. In this case, shares are allotted at market price replacing the respective cash compensation. The Board of Directors decides on the timing of the allotment and may set lock-up periods for such shares.

In accordance with the maximum amounts approved by the 2020 Annual General Meeting, the Compensation Committee determined that the members of the Board of Directors and the Delegate be compensated annually as follows (pro-rata when a mandate is not executed for a full year):

CHF
75,000
50,000
75,000

¹Dr. Petra Salesny foregoes the compensation for her work as a member of the Board of Directors.

The compensation is paid annually. The employer's share of the AHV/ALV contribution is borne by the Company.

Travel and other reasonable out-of-pocket expenses related to the attendance of Board meetings are covered by the Company. Directors may furthermore be paid all other expenses properly incurred by them in connection with the business of the Company.

3.1 Compensation for the financial years 2020/2021 and 2019/2020 (Article 14 OaEC)

The following tables show the compensation for the members of the Board of Directors in the financial years 2020/2021 and 2019/2020. In addition, the Company paid a Directors & Officers liability insurance fee of CHF 31,500 (2019/2020: CHF 31,500). Travel and other out-of-pocket expenses amounted to CHF 2,068 (2019/2020: nil).

The Board of Directors compensation is defined and paid out in CHF:

Compensation for the financial year 2020/2021

As of 31 March 2021	Base Compensation (Cash) CHF	Base Compensation (Shares) CHF	Social security payments CHF	Total compensation CHF
Dr. Hans Baumgartner, Chairman & Delegate of the Board of Directors	75,000	75,000	7,026	157,026
Martin Eberhard, Chairman of the Compensation Committee	25,000	25,000	3,187	53,187
Dr. Petra Salesny, Member of the Compensation Committee 1	—	—	—	—
Fidelis Götz, Member of the Compensation Committee	25,000	25,000	3,187	53,187
Total	125,000	125,000	13,400	263,400

Compensation for the financial year 2019/2020

As of 31 March 2020	Base Compensation (Cash) CHF	Base Compensation (Shares) CHF	Social security payments CHF	Total compensation CHF
Dr. Hans Baumgartner, Chairman & Delegate of the Board of Directors	75,000	75,000	7,659	157,659
Martin Eberhard, Chairman of the Compensation Committee	25,000	25,000	3,112	53,112
Dr. Petra Salesny, Member of the Compensation Committee 1	—	—	—	—
Fidelis Götz, Member of the Compensation Committee	25,000	25,000	3,112	53,112
Total	125,000	125,000	13,883	263,883

¹Dr. Petra Salesny foregoes the compensation for her work as a member of the Board of Directors.

3.2 Loans and credits to Board Members and Management (Article 15 OaEC)

For the financial year 2020/2021, no loans or credits by the Company or its subsidiaries have been granted to members of the Board of Directors (2019/2020: None).

3.3 Compensation, loans and credits to related parties (Article 16 OaEC)

For the financial year 2020/2021, no further compensation, loans or credits by the Company or its subsidiaries have been granted to related parties (2019/2020: None) in addition to the related party transactions described in Note 15 to the IFRS Financial Statements on page 36 of this report. While Petra Salesny foregoes the direct compensation for her work as a member of the Board of Directors, Petra Salesny is a Managing Partner and founding shareholder of Alpha Associates AG, which renders administrative services to PEH AG and is compensated for such services as disclosed in Note 15 on page 36 of this report. Alpha Associates AG does not indirectly and separately compensate Petra Salesny for her work as a member of the Board of Directors of PEH AG.

3.4 Compensation to former Members of the Board of Directors or Management

For the financial year 2020/2021, no compensation was paid to former members of governing bodies (2019/20: None).

Report of the Statutory Auditor on the Compensation Report

Report of the Statutory Auditor

To the General Meeting of Private Equity Holding AG, Zug

We have audited the accompanying compensation report of Private Equity Holding AG for the year ended 31 March 2021 which are presented on pages 64 to 65.

Responsibility of the Board of Directors

The Board of Directors is responsible for the preparation and overall fair presentation of the compensation report in accordance with Swiss law and the Ordinance against Excessive compensation in Stock Exchange Listed Companies (Ordinance). The Board of Directors is also responsible for designing the remuneration system and defining individual remuneration packages.

Auditor's Responsibility

Our responsibility is to express an opinion on the accompanying compensation report. We conducted our audit in accordance with Swiss Auditing Standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the compensation report complies with Swiss law and articles 14 – 16 of the Ordinance.

An audit involves performing procedures to obtain audit evidence on the disclosures made in the compensation report with regard to compensation, loans and credits in accordance with articles 14 – 16 of the Ordinance. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatements in the compensation report, whether due to fraud or error. This audit also includes evaluating the reasonableness of the methods applied to value components of remuneration, as well as assessing the overall presentation of the compensation report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Opinion

In our opinion, the compensation report for the year ended 31 March 2021 of Private Equity Holding AG complies with Swiss law and articles 14 – 16 of the Ordinance.

KPMG AG

Thomas Dorst Christoph Hochuli Licensed Audit Expert Auditor in Charge

Zurich, 10 May 2021

Licensed Audit Expert

KPMG AG, Räffelstrasse 28, PO Box , CH-8036 Zurich

© 2021 KPMG AG, a Swiss corporation, is a subsidiary of KPMG Holding AG, which is a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

Information for Investors

The registered shares of Private Equity Holding AG are traded on SIX Swiss Exchange since January 18, 1999.

Stock exchange listing
Telekurs ticker symbol	PEHN
Swiss security no.	608 992
ISIN code	CH 000 608 9921
German security no.	906 781

Share data	31.03.2021	31.03.2020
Number of registered shares	2,750,000	2,750,000
Number of shares outstanding	2,539,128	2,594,311
Nominal value per share (CHF)	6.00	6.00
Comprehensive earnings per share (EUR)	32.10	5.75

2020/2021 Share price (closing price per share) CHF		2019/2020 CHF
High (31.03.21) / (01-02.04.19/16-26.04.19/02.05.19/06-09.05.19/06.06.19)	74.00	63.00
Low (01-02.07.20/09.07.20) / (18.03.20)	43.00	45.20
Year-end (31.03.21) / (31.03.20)	74.00	51.00

Market capitalisation (Basis: Number of shares outstanding at year-end)	2020/2021 CHFm	2019/2020 CHFm
High (31.03.21) / (01-02.04.19/16-26.04.19/02.05.19/06-09.05.19/06.06.19)	188	163
Low (01-02.07.20/09.07.20) / (18.03.20)	109	117
Year-end (31.03.21) / (31.03.20)	188	132

Corporate calendar
June 2, 2021	Annual General Meeting
November 4, 2021	Half-Year Report as of September 30, 2021
April 2022	Preliminary NAV as of March 31, 2022
May 2022	Annual Report 2021/2022

NAV Publication as of the end of every month on www.peh.ch or https://www.peh.ch/investor-relations/monthly-nav-reporting/

Capital calls	Amount of capital called from the Group by a private equity fund. Each transaction is translated into EUR by using the foreign exchange rate as of the transaction date.
Capital contributed (invested)	Amount of capital contributed (invested) by the Group to direct or indirect investments since inception. Each transaction is translated into EUR by using the foreign exchange rate as of the transaction date.
Capital gain/(loss)	Difference between total distribution and the cost component of distribution of a specific investment.
Change in unrealised gain/ (loss)	Temporary increase or decrease in value of a fund or direct investment. Equal to the difference between the fair value of an investment and the net acquisition cost.
Commitment	Amount that the Group has committed to make available to a private equity fund or direct investment. In accordance with IFRS, this amount is not recorded in the balance sheet. The translation into EUR is made by using the foreign exchange rate as of the relevant reporting date.
Cost component of distribution (return of capital)	Portion of distribution which reflects the contributed capital.
Distribution	Amount of net proceeds (including cost component, capital gains and interest/ dividends) received by the Group. Each transaction is translated into EUR by using the foreign exchange rate as of the transaction date.
Fair value (FV)	The price at which an investment would change hands between a willing buyer and a willing seller, neither being under a compulsion to buy or sell and both having a reasonable knowledge of relevant facts. Fair value of a private equity fund, i.e. fair value of assets minus liabilities. The translation into EUR is made by using the foreign exchange rate as of the relevant reporting date.
NAV	Net asset value
Realised gain/(loss)	Difference between total distribution and the cost component of distribution of a specific investment.
Unfunded commitment	Amount that the Group has not yet contributed to a private equity fund. Difference between original commitment and contributed capital.
Vintage year	Year in which a private equity fund has made its first capital call for investment purposes. In general, this coincides with the first year of a private equity fund's term.

Glossary of Terms

Private Equity Holding AG Gotthardstrasse 28 CH-6302 Zug Phone +41 41 726 79 80 Fax +41 41 726 79 81

www.peh.ch info@peh.ch