Annual Report • Jun 26, 2009
Annual Report
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2008/2009
This document contains a selection of translated excerpts from the german version. For full information complying with the legal standards and regulations, please revert to the official «Geschäftsbericht 2008/2009».
25 INCOME STATEMENT
Published by New Value AG, Zurich Concept IRF Communications AG, Zurich Design Michael Schaepe Werbung, Zurich, Photos Daniel Gerber, Mirjam Kluka / Bronx Fotografen Production MDD Management Digital Data AG, Schlieren Printing NZZ Fretz AG, Schlieren
Careful and sustainable handling of nature and its resources is important to New Value AG. For this reason the business report 2008/09 has been printed on paper which comprises at least 50% recycling fibres and at least 17.5% fresh fibres from certified forestry (FSC).
In the Private Equity sector, what should actually be the driving force behind the industry has instead become a risk factor: investors. Renowned private equity firms are being forced to sell off their assets at auction prices. Rather than focusing on the medium- and long-term potential for success of individual holdings, investors are more interested in their value in the here and now, as well as in how easily positions can be liquidated. Liquidity has become absolutely essential, as banks call in their loans and fund investors call in their shares.
It would be presumptuous to say that New Value has not been affected by the financial and economic crisis. The effects of this harsh climate are reflected in New Value's
stock price as well as that of our two publicly-traded holdings. Regrettably, the substantial price drop in shares of 3S Industries, proportionately New Value's largest position, has forced us to report a loss for the 2008/09 financial year. Nevertheless, 3S Industries' price loss fails to reflect the great strategic and operational strides that the company has made. These are described in detail in this report. In fact, in the weeks between New Value's balance sheet date and the printing of this report, shares of 3S rose by almost 80%, compensating for a large portion of our annual loss.
Equally noteworthy has been our ability to avert a series of problems that have plagued some of our competitors. This is especially true with regard to our financing structure. New Value is completely reliant on its own capital. Even our holdings utilize little or no borrowed capital. Thanks to our corporate structure, occasional drops in the demand for New Value securities do not impact our holdings portfolio. Our holding company status is thus proving to be a useful tool during times of crisis as well.
Our solid financing practices allow us to support the promising companies in our portfolio with additional growth capital. During the reporting period, New Value has taken part in capital increases for Solar Industries, Bogar and Silentsoft. In addition, New Value acquired a substantial share in Qualilife, a developer of IT solutions that help the elderly and disabled use computers. As in the past, we continue to possess enough liquidity to take advantage of new growth opportunities for our portfolio.
In addition to capital, New Value also provides leadership experience. We make it our duty, not only as financing specialist, but as a business collaborator and promoter, to contribute to the success of the companies we work with. One example of this is our involvement with Colorplaza. Last June, the company was acquired by the FotoDesk Group, with active participation by New Value. In a multi-stage transaction, which included growth financing, New Value
PREFACE 5
became a shareholder of the FotoDesk Group. The new company has favorable prospects in the dynamic digital photography market.
In the last twelve months, we have not only invested – we have also reaped the benefits of our investments. Last summer, New Value sold around 10% of its holdings in 3S Industries at then still-favorable prices. In light of current low market valuations, we must count on longer holding periods for our investments.
After this exciting and at times stressful financial year, on behalf of the Board of Directors, I would like to thank all our shareholders for their trust and – as must be emphasized in these times – their risk capacity. We are confident that our portfolio companies are well positioned thanks to their sustainable business models. I would also like to thank the EPS Value Plus team for their diligence in supervising and expanding our holdings portfolio.
Best regards,
Rolf Wägli President of the Board of Directors
NAV decline more moderate than overall market – solid financing – proven investment concept
New Value closed the 2008/09 financial year with an annual loss of CHF 13.99 million. The loss was primarily due to valuations for its two publicly-traded portfolio companies, particularly 3S Industries. This same factor had led to an annual profit in the previous year of CHF 22.31 million. A loss per share of CHF 4.91 was registered for the reporting period versus a profit per share of CHF 7.78 in the previous year. Net asset value (NAV) saw a similar development, ending the year at CHF 21.76 million, or 20.5% below the previous year.
This high annual loss merits an in-depth analysis. 3S Industries accounts for a significant part of New Value's valuation, thanks to the company's great success. At the end of the 2007/08 financial year, shares of 3S were priced at CHF 18.50, representing an important factor in our valuation. On March 31, 2009, New Value's balance sheet date, shares of 3S Industries were valued at CHF 9.95. By June 10, 2009, when this report went to print, shares in 3S had risen by 79.4 to CHF 17.85, compensating for a majority of the difference in valuation that led to the 2008/09 loss. New Value's balance sheet date therefore reflects a past value that is no longer relevant. It has been replaced by a more realistic representation. The decline in market valuation does not reflect the positive developments that have taken place at 3S Industries.
The example shows that New Value has been quite favorably and at times unfavorably influenced by the success of 3S Industries. In order to reduce this influence over time, New Value did not acquire any new shares during 3S Industries' major capital-raising initiative in the summer of 2008. To the contrary, New Value sold shares in 3S in the reporting year at favorable prices, as described in the pages that follow. New Value also invested in other companies in its portfolio and identified a new addition. All indications are that this seed with grow as well. Indeed, hard work will be required – along with a bit of occasional patience.
New Value's only new investment in the reporting period is quite characteristic of its selection criteria: Qualilife SA, a Lugano-based software company that provides IT solutions for the elderly and disabled, is banking on a megatrend as well as a socially sustainable business concept. Qualilife software improves quality of life for disabled persons by allowing them to use computers without hindrance. The software platform is also used in hospitals, where it provides patients access to both modern communication and information media such as the internet and administrative applications. To finance the continued growth of Qualilife, New Value is investing CHF 2.0 million in three increments.
Solar Industries AG made great strides in the reporting period. Its strategy remains unchanged: to build a group of companies along the entire value chain of solar module manufacturing and industrially integrate them. To this aim, in the spring of 2008, Solar Industries established a partnership with the Italian-based MX Group, a producer of photovoltaic modules and manufacturer of solar power plants. Solar Industries is currently investing in the construction of production centers for modules (MX Panel) and solar cells (Solarcell) for the Italian and greater European market. To finance these initiatives, Solar Industries successfully raised over CHF 5 million in capital in the reporting year. New Value invested CHF 2 million, increasing its share in the company's capital stock from 31.3% to 33.1%.
Bogar AG also increased its capital in 2008. Of a total of CHF 7 million, New Value contributed CHF 2.2 million, increasing its share in Bogar from 16.6% to 29.8%. The newly subscribed capital was received in cash or against settlement of existing loans. Bogar, an animal health and nutrition firm, will use the additional funds to expand its sales structures and develop new products. Bogar is also profiting from the momentum of the last several months. The company has practically doubled its 2008 sales figures. Among its top-selling products are its flea treatment for dogs and its flea treatment for cats, the latter introduced in 2008. Both products are based on innovative combinations of natural active ingredients derived from select plants.
New Value's third substantial additional financing initiative in the 2008/09 financial year was for Silentsoft SA. The company operates so-called "machine to machine" (M2M) remote monitoring networks for building management and geographically-distributed containers for liquids or powder. Sensors measure the water level in tanks, for instance, and deliver the data in periodic intervals to the central server. These consolidated, web-accessible data allow customers to optimize their logistics processes, avoid delivery routes and save costs. New Value increased its investment of CHF 2.2 million in the company with a capital increase of CHF 1 million and acquired a block of shares from an existing shareholder. Its share in the company is now 25.7%. Venture Incubator and other previous shareholders also contributed a total of CHF 1 million.
In the 2008 financial year, 3S Industries continued to lived up to its reputation as a role model in its industry. Its gross sales quadrupled over the previous year to CHF 108.7 million from CHF 26.3. Operating results (EBIT) reached a record CHF 12.5 million (previous year: CHF 2.6 million), a nearly fivefold increase, while the EBIT margin based on net sales rose to 12.3% (previous year: 10.4%). By acquiring Somont, the solar firm gained access to key technologies that are important for the manufacture of solar modules. Further growth is expected. The solar firm expects group sales of CHF 150 million and EBIT of CHF 15 million in 2009.
Colorplaza SA was acquired by FotoDesk Group AG. Its unique online photo service encompasses photo printing and editing as well as digital photo sharing and archiving. New Value exchanged its shares in Colorplaza for shares in FotoDesk and invested CHF 1.0 million in growth financing capital and CHF 0.8 million in the form of a convertible loan. New Value now holds 45% of FotoDesk Group AG.
Swiss Medical Solutions AG made further progress in both organizational as well as business matters. Operational management capacities were increased through the addition of Dr. Thomas Kaltenbach, an experienced CEO in the industry. The Board of Directors also welcomed its new president, Marc Neuschwander, former CEO of Bayer Switzerland. The new leadership will support the company's upcoming growth efforts. The in-vitro diagnostics firm also established new distribution partnerships for the Swiss and German markets. In the course of these developments, New Value increased its share in Swiss Medical Solutions from 15.2% to 38.9% and granted an additional convertible loan of CHF 0.9 million.
| Company | Title | Number of shares/ nominal |
Currency | Market price per 3/31/2009 |
+/- vs. 3/31/2008 |
Market | Share of value CHF 1) portfolio 2) |
Company share |
|---|---|---|---|---|---|---|---|---|
| Renewable Energies/Solar Technology | ||||||||
| 3S Industries | Shares | 1,517,349 | CHF | 9.95 | [-46.9%] | 15,097,623 | 23.0% | 10.9% |
| Solar Industries | Shares | 1,554,100 | CHF | 5.00 | +28.2% | 7,770,500 | 11.8% | 33.1% |
| Meyer Burger Technology | Shares | 1,000 | CHF | 116.60 | -61.8% | 116,600 | 0.2% | 0.1% |
| Medtech | ||||||||
| Idiag | Shares | 6,346,100 | CHF | 1.20 | 0.0% | 7,615,320 | 11.6% | 45.5% |
| Swiss Medical Solution | Shares | 311,581 | CHF | 5.00 | -76.6% | 1,557,905 | 8.9% | 39.0% |
| Convertible loan | 907,000 | CHF | 476.01% | 376.0% | 4,317,407 | |||
| Health | ||||||||
| Mycosym International | Shares | 194,337 | CHF | 21.75 | -33.3% | 4,226,830 | 7.1% | 49.1% |
| Loan | 457,648 | CHF | 100.00% | 0.0% | 457,648 | |||
| Bogar | Shares | 233,795 | CHF | 30.57 3) | 0.0% | 7,146,254 | 10.9% | 29.8% |
| Convertible loan | 0 | CHF | 93.57% | 0.0% | 0 | |||
| Loan | 0 | CHF | 100.00% | 0.0% | 0 | |||
| Information Technology (IT) | ||||||||
| FotoDesk Group | Shares | 4,502,115 | CHF | 1.00 | 0.0% | 4,502,115 | 8.2% | 45.0% |
| Convertible loan | 800,000 | CHF | 107.89% | 0.0% | 863,098 | |||
| Qualilife | Shares | 240,000 | CHF | 3.00 | 0.0% | 720,000 | 1.1% | 18.2% |
| Silentsoft | Shares | 20,312 | CHF | 176.13 | 0.0% | 3,577,553 | 5.4% | 15.8% |
| New Materials | ||||||||
| Natoil | Shares | 47,274 | CHF | 25.38 3) | 0.0% | 1,200,000 | 1.8% | 23.8% |
| Loan | 240,000 | CHF | 100.00% | 0.0% | 240,000 | 0.4% | 23.8% | |
| Total | 59,408,852 | 90.4% 4) |
1) As per IFRS, the market value of convertible bonds includes a valuation of the borrowed capital portion at present value per the effective interest method and the option portion.
2) based on market value including consideration of liquid funds and financial investments
3) no change in the stock price based on the average acquisition cost versus the previous year (only absolute change in the price per share with no relevance to overall portfolio valuation)
4) market value/net assets (level of investment)
EPS Value Plus AG, investment manager for New Value AG, is responsible for the entire operational investment process. In the past financial year, the EPS team was involved in reviewing new investment opportunities, as well as in structuring and carrying out additional financing as described above as well as providing business guidance.
Income from investments and loans dropped to CHF 6.6 million (previous year: CHF 27.6 million). Of that total, CHF 1.0 million were realized profits from the sale of holdings in 3S Industries AG. Expenditures from investments and loans increased disproportionately over the previous year to CHF 17.7 million (previous year: CHF 2.7 million). This represents primarily unrealized losses from valuation corrections, except for a total of CHF 0.3 million in realized capital losses from the sale of Meyer Burger Technologies AG and additional investment expenditures. The largest portion of these expenditures were value adjustments for 3S Industries totaling CHF 12.9 million. The effective-date valuation of these publicly-traded holdings took place at a low of CHF 9.95 per share. In the meantime, shares of 3S have recovered to CHF 17.85 per share at the time of printing. Theoretical consideration of this price increase in 3S shares would improve annual net income for New Value by CHF 11.9 million.
Operating expenditures increased to CHF 2.85 million (previous year: CHF 2.67 million) due to higher expenditures for investment consultant fees. The latter remained unchanged at 0.5% of audited NAV per quarter but rose in absolute figures due to increased NAV in the previous year. Investment consultant fees are expected to drop further in the coming financial year. Compensation to the Board of Directors fell to CHF 152,850 (previous year: CHF 245,486). Additional operating expenditures remained constant or were slightly reduced.
The relative proportion of renewable energy/solar technology firms in the overall portfolio fell during the reporting period due to sharp losses in value for 3S Industries to 35.0% (previous year: 44.9%). Other well-represented industries in the New Value portfolio include: medical technology at 20.5% (previous year: 12.9%), health at 18.0% (previous year: 15.6%) and information technology at 14.7% (previous year: 6.7%). In contrast, the new materials sector is currently underrepresented. As of March 31, 2009, liquid funds totaled 9.6% (net calculation: liquid funds minus short-term financial liabilities). In the 2008/09 financial year, New Value invested a total of CHF 9.6 million in new and existing portfolio companies and realized CHF 6.1 million in capital gains. New Value boasts extremely solid financing with an own-capital ratio of 97%.
New Value's portfolio grew qualitatively during the 2008/2009 financial year, reaching an increased degree of maturity. The economic environment has had a noticeable impact on New Value's portfolio companies. We consider it highly beneficial, however, for these primarily still relatively young companies to have a solid and active equity partner like New Value by their side. Difficult market conditions and times of upheaval harbor both challenges and opportunities. We are working diligently to ensure that both New Value as well as its portfolio companies can meet these challenges and take advantage of the opportunities.
Peter Letter CEO, EPS Value Plus AG
Stock Quotes CHF 14.25 (SIX Swiss Exchange) EUR 9.20 (Xetra)
Net Asse Value (NAV) CHF 21.76 per share
Share capital CHF 32.8 Mio.
Issued shares 3 287 233 registered shares (nominal value CHF 10 per share)
Market capitalisation CHF 46.8 Mio.
SIX Swiss Exchange since May 2006 (previously at the Berne eXchange from August 2000 until December 2006) Xetra, Open Market Frankfurt, Berlin, Dusseldorf, Munich and Stuttgart
Ticker-Symbols NEWN (CH), N7V (DE)
Valorennummer 1081986 Wertpapierkennnummer 552932 ISIN CH0010819867
Annual shareholders meeting July 8, 2009 in Zurich
Investment Manager EPS Value Plus AG Zurich (www.epsvalueplus.ch)
Management fee 0.5% per quarter, as measured by the NAV
Performance fee 10%, if > or = 10% growth p.a. 20%, if > or = 15% growth p.a.
Business segments: Mechanical and process technology for the solar industry, energy-generating construction materials Locations: Lyss BE and Neuchâtel NE, Switzerland, Freiburg and Umkirch, Germany Workforce as of 12/31/2008: 302 fulltime positions Sales 1/1/2008 to 12/31/2008: CHF 109 million (+331%) New Value share as of 03/31/2009: CHF 15.1 million; corresponds to 10.9% of equity New Value Board Representative: Rolf Wägli (President) Website: www.3-s.ch Ticker symbol: BX Bern Exchange: SSS; Open Market Frankfurt: S3V
p 3S Industries AG (3S), along with its group companies 3S Swiss Solar Systems, Somont and Pasan, markets cutting-edge production equipment for the manufacture of solar modules worldwide. The group operates along the entire value chain of photovoltaic solar module production and combines key competencies in the area of soldering, laminating and testing under one roof. 3S production equipment guarantees stable processes, high throughput and the highest level of product quality with minimal waste. 3S offers both turnkey, fully-automated production lines as well as individual components. 3S also provides innovative, building-integrated solar energy systems for rooftops, facades or shading.
shan, China. These new additions to the group have strengthened the company's presence in the dynamic US and Asian photovoltaic markets.
p During the reporting period, New Value sold 263,800 shares at an average price of CHF 22.45 and bought 56,122 shares at an average price of CHF 16.58. New Value thus realized capital gains of CHF 1,043,816.
p Valuation at CHF 9.95 per share (previous year: CHF 18.50) corresponds to the market price on March 31, 2009. Share prices fell 46.2% over the entire reporting period amid overall market turmoil and in contrast with operational achievements. As this report went to print on June 10, 2009, the share price had risen to CHF 17.85.
Business segments: Solar industry firm operating along the entire value chain of PV solar module manufacturing. Locations: Niederurnen GL, Switzerland and Milan, Italy Workforce as of March 31, 2009: 1.5 full-time positions and external partners (including non-fully-consolidated companies: 218 full-time positions) Sales development 01/01/2008 – 12/31/2008: to be announced New Value share as of 03/31/2009: CHF 7.78 million; corresponds to 33.1% of equity New Value Board
p Solar Industries AG invests in existing companies as well as those under development along the entire value chain of solar module manufacturing. Solar Industries strives for a competitive industrial integration of these companies. In Italy, Solar Industries cooperates with the successful MX Group (MXG) headquartered in Milan. The latter operates production facilities for PV solar modules with a capacity of 120 MWp per year. The group is also involved in project development and realization for solar parks. Additional significant investments will be made in establishing production centers for solar cells and solar modules. These investments will focus on the fast-growing Italian market. This market will serve as a platform for the sustainable expansion of the company's activities at a later time into other European markets and overseas.
p Valuation was increased to CHF 5.00 per share (previous year: CHF 3.90). This corresponds to the price during the last capital increase in December 2008.
Business segments: Mechanical and process technology for the solar industry Locations: Baar ZG and Steffisburg BE, Switzerland Workforce as of 12/31/2008: 630 full-time positions Sales 1/1/2008 to 12/31/2008: CHF 455 million (+119%) New Value share as of 03/31/2009: CHF 0.12 million; corresponds to 0.03% of equity. Website: www.meyerburger.ch Ticker symbol: SIX: MBTN
p Meyer Burger Technology AG is a leading, globallyactive technology group for innovative systems and processes for the processing of crystals and other highgrade materials. Its machines, competencies and technologies are used in the solar industry, the semiconductor industry and the optics industry. The group's core competencies include a wide range of production processes, equipment and systems used within the value chain for the production of high-grade wafers, as well as a worldwide service network.
p High industry growth expected, particularly due to "grid parity" for solar power expected in the next few years (competitiveness of electricity costs versus traditional generation methods)
p Strong market and technology positioning, particularly in the Asian growth market; smaller acquisitions strengthened product offerings
p Valuation at CHF 116.60 per share (previous year: CHF 305.00) corresponds to the market price on March 31, 2009. Share prices fell 61.8% over the entire reporting period amid overall market turmoil and in contrast with operational achievements. As this report went to print on June 10, 2009, the share price had risen to CHF 166.60.
Business segments: Diagnostics and rehabilitation for back care and respiration Locations: Fehraltorf ZH, Switzerland, and Bad Säckingen, Germany Workforce as of 03/31/2009: 14 full-time positions Sales development 01/01/2008 – 12/31/2008: -12% New Value share as of 03/31/2009: CHF 7.62 million; corresponds to 45.5% of equity New Value Board Representative: Paul Santner (President) Website: www.idiag.ch
p Idiag AG develops and distributes innovative products for medicine, therapy and sports applications in the back care and respiration growth segments. Medi-Mouse® is a practical measuring system for computerassisted imaging and radiation-free examination of the shape and movement of the spinal column. SpiroTiger® Medical is a device used for targeted rehabilitation and endurance training of respiratory muscles (for example, for reducing shortness of breath in COPD patients). SpiroTiger® Sport is used by recreational and professional athletes to improve the stamina and strength of their respiratory muscles and upper body.
printer is primarily aimed at doctors' offices, hospitals, nutrition counselors and fitness studios.
p Valuation at CHF 1.20 per share corresponds to the price during the most recent capital increase in September 2007 (previous year: CHF 1.20).
Business segment: In-vitro diagnostics Location: Büron (LU), Switzerland Workforce as of 03/31/2009: 6.5 full-time positions Sales development 01/01/2008 – 12/31/2008: +184% (market launch). New Value share as of 03/31/2009: CHF 1.56 million; corresponds to 38.9% of equity; plus a CHF 4.32 million convertible loan New Value Board Representative: Peter Letter Website: www.swissmedicalsolution.ch
p Swiss Medical Solution AG develops, produces and sells self-tests for urinary tract infections (UTIs) to distributors. The specific needs of women, small children, the elderly and diabetics are comprehensively addressed with custom-made tests. The first application in use is the U-Lab®-brand self-test for early detection in women. It is an important tool in the simple and reliable detection of UTIs and the monitoring of treatment success without the need for repeat doctor visits. Consumers are reached through a cooperation strategy with distributors who offer U-Lab® in combination with other products (antibiotics for treating UTIs and UTI prevention products).
German Diabetes Foundation and former managing director of diagnostics at Abbot in Germany, also joined the Board. Dr. Thomas Kaltenbach replaces Andreas Küng as CEO, who could not assume the post for health reasons. Thomas Kaltenbach was formerly General Manager of UCB-Pharma AG. He has extensive experience in the pharmaceutical industry (Rx and OTC).
p New Value took part in a financing round in September 2008, increasing its share in the company along with other co-investors. With a capital investment of CHF 2 million (CHF 1.8 through debt conversion), New Value increased its share by 38.9%. New Value also participated in a loan with a favorable conversion option through an additional investment of CHF 0.9 million.
p Valuation at CHF 5.00 per share determined using discounted cash flow method (prior year: CHF 21.32, average purchase price CHF 10.50). Value adjustment of stock position by CHF -1.7 million took place due to slower business development in 2008. The market value of the convertible loan includes a valuation of the borrowed capital portion at present value per the effective interest method and the option portion. Based on favorable conversion terms, the convertible loan was valued at CHF 4.3 million, including an upvaluation of CHF 3.4 million. Overall, the Swiss Medical Solution position was upvalued by CHF 1.7 million.
Business segment: Plant technology Locations: Basel, Switzerland and Seville, Spain Workforce as of 03/31/2009: 5.5 fulltime positions Sales development 01/01/2008 – 12/31/2008: -27% New Value share as of 03/31/2009: CHF 4.23 million; corresponds to 49.1% of equity, plus a CHF 0.46 million loan New Value Board Representative: Peter Letter (President) Website: www.mycosym.com
p Mycosym International AG is a plant technology company that develops, produces and markets unique biological soil additives using mycorrhiza (natural symbiosis between plant roots and soil fungus). These soil additives improve the growth of plants (increased vigor and biomass), leading to increased yield and fewer losses in intensive farming and allowing growth in extreme locations (drought, salinity). An additional benefit is reduced water consumption in agriculture and gardening. In some applications, resistance against pests and diseases is increased.
development intensification. New Value contributed an additional CHF 0.22 million in loaned funds.
p Valuation adjusted to CHF 21.75 per share (previous year: 32.50) due to substantial sales goal shortfall. Devaluation was conducted based on a newly-developed business plan using the discounted cash flow method.
Business segments: Animal health and nutrition Location: Wallisellen ZH, Switzerland Workforce as of 03/31/2009: 8 fulltime positions Sales development 01/01/2008 –12/31/2008: +87% New Value share as of 03/31/2009: CHF 7.15 million; corresponds to an equity share of 29.8% New Value Board Representative: Rolf Wägli (President) Website: www.bogar.com
p Bogar AG specializes in natural and future-oriented animal health and nutrition and develops, produces and markets quality plant-based food supplements and care products. Bogar is a pioneer in the area of veterinary phytotherapy and the developer of an ever-growing product catalog for effective supportive nutrition and the natural prevention and treatment of various somatic disorders and diseases in animals. The current product range consists of effective nutritional supplements as well as high-quality care preparations for dogs, cats and sporting and recreational horses.
p Valuation adjusted to CHF 30.57 per share (previous year: CHF 360.00) based on average capitalizationweighted share price of previous shares and newly acquired shares during the internal financing round that took place at the end of 2008. This price is based on a discounted cash flow valuation.
Business segments: Online photo service Location: Zug ZG, Vevey VD, Switzerland and Trivandrum, India Workforce as of 03/31/2009: 49 full-time positions Sales development 01/01/2008 – 12/31/2008: Realignment after merger New Value share as of 03/31/2009: CHF 4.5 million; corresponds to 45% of equity; plus a CHF 0.86 million convertible loan New Value Board Representative: Peter Letter (President) Website: www.fotodesk.com
p Fotodesk Group AG is an integrated company in the area of digital imaging services. Alongside traditional photo printing, it offers innovative lifestyle products such as self-stick posters, laptop skins and wall tattoos. Fotodesk has recently expanded its product offerings through an online fine art print boutique. Through its merger with flauntR, www.flauntr.com, an online portal for image editing, customers also have access to highquality image editing applications. The company is represented on the market through two online services: www.colormailer.com and www.fastlab.com.
p Valuation at CHF 1.00 per share corresponds to the capital transaction price at the acquisition of Colorplaza SA by FotoDesk Group AG in June 2008. The market value of the convertible loan includes a valuation of the borrowed capital portion at present value per the effective interest method and the option portion.
Business segments: Software for the health care industry Location: Lugano TI, Switzerland Workforce as of 03/31/2009: 4.5 full-time positions Sales development 01/01/2008 – 12/31/2008: Market launch phase New Value share as of 03/31/2009: CHF 0.72 million; corresponds to 18.2% of equity New Value Board Representative: Thomas Keller Website: www.qualilife.com
p Qualilife is a software company that specializes in developing access technologies for the disabled, the elderly and hospital patients. The company has developed a software platform that allows persons with physical disabilities or a lack of PC skills to utilize all current ICT functionalities. The software is intuitive and supports the use of special hardware for the disabled. The platform was redeveloped for hospital patients and rehab clinics and now represents an all-encompassing communications and entertainment solution for the health care industry.
p Health care market entry with technologically impressive product; potential for duplication in the telemedical and telecare sectors.
p Valuation at CHF 3.00 per share corresponds to the price during the June 2008 capital increase.
Business segments: Information technology/M2M telemetry Location: Morges VD, Switzerland Workforce as of 03/31/2009: 21 full-time positions Sales development 01/01/2008 – 12/31/2008: -32% New Value share as of 03/31/2009: CHF 3.58 million; corresponds to 25.7% of equity New Value Board Representative: Dr. Marius Fuchs (New Value cooperation partner) Website: www.silentsoft.com
p Silentsoft SA is a leading company in the machine to machine (M2M) communications technology sector. Silentsoft developed a proprietary technology with processes and software that make it possible to set up and operate large M2M remote monitoring networks for measuring, automatically transmitting and analyzing data from geographically distributed containers for bulk goods such as liquids or powders. Founded as a pioneer in M2M communications in 2000, Silentsoft has developed into Europe's leading provider of wireless M2M network services for building management. These widely-used services allow property managers to monitor and manage gas tank levels, for instance, from a central location.
a block of shares from an existing shareholder) and now holds 25.7% of Silentsoft's capital stock.
p Valuation at CHF 176.13 per share corresponds to the acquisition price during the capital increases carried out in November 2008 (previous year: CHF 227.00).
Business segments: Lubricants based on renewable raw materials Location: Immensee SZ, Switzerland Workforce as of 03/31/2009: 6 full-time positions Sales development 01/01/2008 – 12/31/2008: +63% New Value share as of 03/31/2009: CHF 1.2 million; corresponds to an equity share of 23.8%; plus a CHF 0.24 million loan New Value Board Representative: Peter Letter Website: www.natoil.ch
p Natoil AG develops and distributes industrial lubricants with first-rate technical qualities based as much as possible on renewable raw materials. Thanks to reduced friction losses, their use allows for substantial energy savings of 5-20% and less wear and tear. The current CO2 debate and the long-term trend of rising prices for mineral oil products underscores the market potential of Natoil lubricants. Natoil uses seeds from a special type of domestically-cultivated sunflower as its primary raw ingredient. This variation of the sunflower does not compete with food production.
p New Value took part in a growth financing initiative during the reporting period, contributing CHF 0.3 million in capital and guaranteeing the company an additional loan of CHF 0.24 million. After the balance sheet date in April 2009, New Value increased the loan to CHF 0.3 million. Financing took place proportionately along with other investors.
p Valuation at CHF 25.38 per share corresponds to the acquisition price during the capital increases carried out in June 2007 and February 2008 (previous year: CHF 31.73).
| 3/31/09 | 3/31/08 | ||
|---|---|---|---|
| Item | Note | CHF | CHF |
| Non-Current Assets | ||
|---|---|---|
| Investments 20.2. |
53,530,700 | 63,676,470 |
| Long-term Convertibles and Loans 19.2./3. |
5,638,153 | 3,078,749 |
| Total Non-Current Assets | 59,168,853 | 66,755,219 |
| Current Assets | ||
| Short-term Loans 19.1. |
240,000 | 500,000 |
| Other accounts receivable 18 |
65,591 | 102,875 |
| Accruals | 16,262 | 68,106 |
| Cash and cash equivalents 17 |
7,630,280 | 14,882,671 |
| Total Current Assets | 7,952,133 | 15,553,652 |
| Total Assets | 67,120,986 | 82,308,871 |
| Shareholders Equity | ||
|---|---|---|
| Share capital paid-in 21 |
32,872,330 | 32,872,330 |
| Treasury Shares 21.4. |
–5,231,499 | –6,406,150 |
| Share premium | 22,115,981 | 25,139,669 |
| Accumulated profit/loss carried forward | 15,587,969 | 29,576,794 |
| Total Shareholders' Equity | 65,344,781 | 81,182,643 |
| Liabilities | ||
| Short-term Financial Liabilities | 1,324,800 | 720,000 |
| Deferrals | 451,405 | 406,228 |
| Total Liabilities | 1,776,205 | 1,126,228 |
| Total Liabilities and Shareholders' Equity | 67,120,986 | 82,308,871 |
| 4/1/2008 – 3/31/09 |
4/1/07– 3/31/08 |
||
|---|---|---|---|
| Item | Note | CHF | CHF |
| Income from investments and loans | |||
| Income from sale of investments | 20.2. | 1,043,816 | 9,838,388 |
| Unrealised income from investments | 19/20.2. | 5,371,986 | 17,630,680 |
| Interest income | 24 | 239,433 | 204,594 |
| Total income from investments and loans | 6,655,235 | 27,673,662 | |
| Expenses from investments and loans | |||
| Unrealised losses on investments and loans | 19/20.2. | –17,330,686 | –1,857,114 |
| Realised losses on investments and loans | 19/20.2. | –138,645 | –690,743 |
| Investment expenses | –187,131 | –180,000 | |
| Total expenses from investments and loans | –17,656,462 | –2,727,857 | |
| Operating expenses | |||
| Investment management fee | 23 | –1,746,663 | –1,249,576 |
| External personnel expenses | 23 | –96,840 | –96,840 |
| Expenses Board of Directors | 27 | –152,850 | –245,486 |
| Expenses auditors | –65,851 | –66,552 | |
| Expenses communication / IR | –480,079 | –539,817 | |
| Consulting costs (Legal and Tax) | –27,060 | –54,602 | |
| Other administrative expenses | –178,824 | –181,697 | |
| Capital tax | –105,000 | –251,429 | |
| Total operating expenses | –2,853,167 | –2,685,999 | |
| Financial income and expenses | |||
| Financial income | 24 | 92,276 | 227,208 |
| Financial expenses | 24 | –226,707 | –177,274 |
| Total financial income and expenses | –134,431 | 49,934 | |
| Earnings before taxes | –13,988,825 | 22,309,740 | |
| Income tax | 25 | 0 | 0 |
| Net income/loss | –13,988,825 | 22,309,740 | |
| Average number of shares outstanding | 2,846,545 | 2,868,152 | |
| Result per share undiluted | 26 | -4.91 | 7.78 |
| Result per share diluted | 26 | -4.91 | 7.78 |
New Value AG Bodmerstrasse 9 Postfach CH-8027 Zürich Telefon +41 43 344 38 38 Fax +41 43 344 38 39 [email protected] www.newvalue.ch
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