Annual Report • Mar 31, 2010
Annual Report
Open in ViewerOpens in native device viewer
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 2009/2010».
Sustainable Swiss Private Equity
2009/2010
New Value invests directly in private, up-and-coming companies with above-average market and growth potential located in Switzerland and the neighboring German-speaking region. As an investment company, New Value supports innovative business models with venture capital and accompanies them all the way to market success. In this investment segment, New Value is a sustainability pioneer. New Value share are traded on the SIX Swiss Exchange (NEWN) and Xetra (N7V).
Its portfolio includes companies of various degrees of maturity, from the market introduction phase to their establishment as medium-sized operations with stable profits. A conscious choice has been made to adopt a broad-based approach. The portfolio includes companies in the cleantech and health industries.
New Value is committed to sustainability and places great emphasis on selecting portfolio companies with ethical business concepts and good corporate governance.
1) The LPX Venture Index contains the 20 largest Private Equity Companies worldwide, that predominantly (at least 50%) make venture investments.
Mycosym International AG Natoil AG Silentsoft SA Solar Industries AG ZWS Zukunftsorientierte Wärme Systeme GmbH
Bogar AG Idiag AG QualiLife SA Swiss Medical Solution AG
22 BALANCE SHEET
23 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 Swissprinters Zürich 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 2010, New Value is celebrating its 10-year anniversary – a decade of setting the standard in the Swiss private equity market. We provide consistent support to young, promising growth companies through capital and management assistance. Geographically our focus is on Switzerland and the surrounding countries. We know the markets here and can use our experience and networks directly and efficiently.
An ethical business model and good corporate governance have been key investment criteria since the very beginning. In fact, we've been active promoters of sustainability since
long before it become a buzzword. We firmly believe that companies that contribute to solving social and societal challenges have an above-average chance of success. In 2001, when we began investing in solar energy, some accused us of being idealists. Today, our strategy has paid off financially and our knowledge is at the cutting edge of the industry.
In the future, our job will be to develop new technologies and business concepts, to contribute to the healthy development of a national economy in which young, innovative firms will take the place of large, established corporations and create the backbone for future growth. Over the past 10 years, New Value portfolio companies have created about 500 jobs.
New Value has conducted a total of 17 investments in 10 years. With the exception of three write-offs – these are also a part of our business – the remaining portfolio companies are now successfully established in their respective markets. The biggest success story is 3S Industries, a pioneer in the solar industry, which last fiscal year merged with Meyer Burger Technology and became one of the top players in the solar industry. As a founding shareholder and active investor, New Value was highly influential in the company's performance.
These milestones serve as an impetus for achieving new goals. Further growth remains one of our top priorities – it is essential for expanding and optimally managing our portfolio. In the medium term, we wish to double our investment volume to around CHF 150 million.
In the next 10 years, we will concentrate our portfolio on the cleantech and health industries. This will allows us to address two major societal and economic trends. New, innovative approaches for the conservative use of natural resources and universal, cost-efficient health care are in urgent demand. Switzerland, with its top-ranked universities and research institutions and regulatory conditions that favor innovation, has plentiful resources for developing these technologies.
Following the sale of 3S Industries/Meyer Burger, New Value now has around CHF 30 million in liquid and financial assets at its disposal. These assets will be directed primarily at new investments in the cleantech and health industries. These sectors currently offer excellent investment opportunities at reasonable prices. The recently announced financing of cleantech firm ZWS Zukunftsorientierte Wärme Systeme GmbH is a first step in this direction. We are also in advanced talks with other companies. We are confident in our ability to complete additional investments in the coming months.
We also seek to increase the attractiveness of our stock and allow investors to share in our success directly. A portion of our gains from the sale of 3S, the value of which increased 14 times over the original investment, will go directly back to New Value shareholders.
On behalf of the Board of Directors, I would like to thank you, our valued shareholders, for the trust you have placed in us. In one-on-one discussions with you and during our informational event regarding the new portfolio direction, I have received a great deal of positive feedback. Your suggestions and criticisms are of great importance to both me and the Board of Directors.
Special thanks are due to the management and staff of our portfolio companies. The challenging economic environment has required great flexibility. All the companies have faced these challenges head-on and made excellent progress. Their efforts allow me to look toward the future with optimism. Finally, I would like to thank the committed team of professionals at EPS Value Plus. They are responsible for the entire operational investment process and have been highly instrumental in laying the foundations for success in the next 10 years.
Sincerely,
Rolf Wägli President of the Board of Directors
For fiscal year 2009/2010 ended March 31, 2010, New Value posted a net profit of CHF 10.0 million (previous year: CHF –13.9 Mio.). This was primarily the result of the successful sale of its holdings in Meyer Burger Technology AG/3S Industries AG. Despite the challenging market environment, New Value portfolio companies performed well overall. As of March 31, 2010, net asset value in the reporting period had risen 11.5% to CHF 24.27 per share (previous year: CHF 21.76).
Shares in Meyer Burger/3S were sold on the stock market in Q1 2010 at market prices. Profits from the sale totaling CHF 19.9 million and the upward revaluation (in net terms) of Natoil AG, Silentsoft SA, Swiss Medical Solution AG and FotoDesk Group SA by CHF 1.67 million were offset by value adjustments to Mycosym International AG, Bogar AG and Idiag AG totaling CHF 8.68 million.
Through the merger of these two pioneering companies, a unique solar industry technology group was created covering all major technology stages along the photovoltaic value chain. The merger will strengthen the companies' market position and allow for significant cost reductions along the entire manufacturing chain with the goal of achieving grid parity for solar power even faster. This milestone was seen by New Value as the culmination of its many years of work in helping establish the company and of its role as a growth financier for 3S. New Value subsequently sold its shares in the company in Q4 of fiscal year 2009/10. As of the date of sale, New Value's private equity investment in 3S Industries had grown to 14 times its original value. By providing growth capital and management support, New Value was instrumental in the success of 3S.
Silenstoft successfully expanded into new market segments in the reporting period, including waste management and green building. Energy optimization and real-time building monitoring are in increasing demand from property management companies. Silentsoft also concurrently expanded its M2M product range and developed remote-controlled water and gas systems with built-in alarm functions.
In late 2009, Swiss Medical Solution launched U-Lab® in Switzerland, Germany and Italy with the help of local distribution partners. CE certification for the second application of U-Lab® Diapers, aimed at the specific needs of diaper-wearers, is expected in mid-2010.
Finally, FotoDesk introduced the first-ever online photo book featuring a sharing function that allows multiple users to easily edit and order copies of a photo book at the same time. Users no longer need to download photo book software to their desktops, allowing FotoDesk to provide new operating functions on an ongoing basis. On October 30, 2009, FotoDesk opened its first gallery in Basel as a venue for the physical display of its high-quality products.
Sales decline in a difficult market environment Mycosym's two primary sales markets, Spain and Greece, were hit hard by the economic crisis. Nevertheless, in April 2009 the company launched its water conservation concept in the golf segment, offering savings of up to 40% and an overall increase in lawn quality with the use of Mycosym products. In October 2009, Mycosym also began marketing its products in the produce and greens segment in southern Spain.
Natoil was also forced to contend with a rough economic climate. The machine building and automobile supplier industries, two of the company's core customer segments, battled declining markets, impacting Natoil sales.
After a jump in revenue during the previous year, Bogar sales fell below expectations in the reporting period. Bogar reacted by appointing a new CEO, adding a proven pet industry expert to its board of directors, restructuring its capital and raising new funds, with participation by New Value. During this period, Bogar was able to optimize distribution channels and launch several product innovations.
At Idiag, a focus on sales of internally produced products and the abandonment of third-party products, accompanied by the challenging market environment, led to a decline in sales. Studies on cystic fibrosis and obstructive sleep apnea continued successfully.
In March 2010, New Value invested in cleantech company ZWS Zukunftsorientierte Wärme Systeme GmbH of Neukirchen-Vluyn, Germany. ZWS is a provider of complete modern building services such as heating, photovoltaic and rainwater harvesting systems. ZWS systems are based on renewable energies. The company employs 60 staff members at 14 locations in Germany and Austria. To finance further growth, New Value invested around CHF 2.1 million in the form of a mezzanine loan.
New Value places great value on the continued growth of its existing portfolio companies. Despite the difficult economic environment and the financial market crisis, New Value was able to serve as a reliable equity partner. In the reporting period, New Value took part in eight growth financing measures for existing portfolio companies, with a total volume of CHF 8.7 million.
Income from investments and loans increased significantly as a result of the sale of shares in Meyer Burger to CHF 26.8 million (previous year: CHF 6.7 million). Realized profits from the sale of Meyer Burger/3S shares alone totaled CHF 19.9 million. Expenses from investments and loans equaled CHF 13.7 million (previous year: CHF 17.7 million). These consisted of unrealized losses from valuation adjustments. The largest positions were value adjustments to Bogar in the amount of CHF 5.47 million (consisting of value adjustments to stock holdings by CHF -6.65 million and to the convertible loan by CHF +1.18 million) followed by adjustments to Idiag of CHF 2.26 million (consisting of value adjustments to stock holdings of CHF -3.62 million and to the convertible loan by CHF +1.36 million).
Operating expenses decreased slightly to CHF 2.71 million (previous year: CHF 2.85 million), including CHF 1.44 million in investment consultant fees (previous year: CHF 1.75 million). These remained unchanged at 0.5% of
| Company | Title | Number of shares/ nominal |
Currency | Value per 31/3/2010 |
Change vs. 31/3/2009 |
Market value CHF 1) portfolio 2) |
Share of | Company share |
|---|---|---|---|---|---|---|---|---|
| Cleantech | ||||||||
| Mycosym International | Shares | 223,500 | CHF | 16.86 | -22.5% | 3,276,500 | 5.1% | 49.1% |
| Loan | 657,648 | CHF | 100.00% | 0.0% | 657,648 | |||
| Natoil | Shares | 125,274 | CHF | 6.34 | -50.1% | 794,015 | 2.7% | 29.9% |
| Convertible loan | 205,981 | CHF | 635.50% | +535.5% | 1,309,016 | |||
| Silentsoft | Shares | 20,312 | CHF | 176.13 | 0.0% | 3,577,553 | 5.7% | 25.7% |
| Convertible loan | 750,000 | CHF | 119.78% | +19.8% | 898,336 | |||
| Solar Industries | Shares | 1,554,100 | CHF | 5.00 | 0.0% | 7,770,500 | 10.0% | 38.9% |
| ZWS Zukunftsorientierte | ||||||||
| Wärme Systeme | Loan | 1,500,000 | EUR | 100.00% | 0.0% | 2,145,150 | 2.8% | 0.0% |
| Health | ||||||||
| Bogar | Shares | 223,500 | CHF | 3.21 | -89.5% | 718,324 | 3.1% | 31.6% |
| Convertible loan | 521,500 | CHF | 326.59% | +226.6% | 1,703,151 | |||
| Idiag | Shares | 6,928,621 | CHF | 0.64 | -46.7% | 4,434,317 | 8.1% | 41.5% |
| Convertible loan | 518,458 | CHF | 361.82% | +261.8% | 1,875,869 | |||
| Swiss Medical Solution | Shares | 311,581 | CHF | 5.00 | 0.0% | 1,557,905 | 10.1% | 38.9% |
| Convertible loan | 970,331 | CHF | 505.45% | +6.2% | 4,904,547 | |||
| Convertible loan | 1,218,680 | CHF | 117.80% | 0.0% | 1,435,577 | |||
| Qualilife | Shares | 661,706 | CHF | 3.02 | 0.0% | 2,000,000 | 4.0% | 38.1% |
| Loan | 1,100,000 | CHF | 100.00% | 0.0% | 1,100,000 | |||
| Others | ||||||||
| FotoDesk Group | Shares | 4,502,115 | CHF | 0.67 | -33.0% | 3,001,405 | 8.5% | 45.0% |
| Convertible loan | 1,300,000 | CHF | 257.07% | +138.3% | 3,341,960 | |||
| Loan | 250,000 | CHF | 100.00% | 0.0% | 250,000 |
1) Per IFRS, the market value of the convertible loan includes a valuation of the borrowed capital portion at net present value using the effective interest method and of the option portion.
2) Based on market value including liquid and financial assets
3) Market value/net assets (degree of investment)
audited NAV per quarter, but dropped in absolute terms due to the previous year's lower NAV, which served as a basis for the calculation. Compensation to the Board of Directors increased to CHF 297,981 (previous year: CHF 152,850), of which CHF 89,700 was in the form of stock. Other operating expenses remained constant or decreased slightly.
New Value will build on its broad, 10-year experience and retain the primary core elements of its former investment strategy. As a growth capital financier in Switzerland and the German-speaking region, New Value is committed to helping sustainable business concepts succeed through active management support and knowledge transfer. We see Switzerland as a lucrative and technologically favorable location for venture capital investors with excellent investment opportunities at present.
With the goal of providing clear positioning and support, in the future the New Value portfolio will focus on the cleantech and health industries, two of this century's most important economic and societal trends. In both industries, innovation is in urgent demand. Based on the expertise acquired and the networks established over the last 10 years, New Value firmly believes in its ability to be instrumental in the success of young cleantech and healthcare companies.
Peter Letter CEO of 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.
1) The LPX Venture Index contains the 20 largest Private Equity Companies worldwide, that predominantly (at least 50%) make venture investments.
Business segment: Plant technology/water management Locations: Basel, Switzerland, and Seville, Spain. Number of employees as of 03/31/2010: 6.5 full-time staff Sales development 01/01–12/31/2009: -13.2% New Value holdings as of 03/31/2010: CHF 3.28 million; corresponds to 49.1% share of equity; additional CHF 0.66 million loan New Value Board Representative: Peter Letter Website: www.mycosym.com
p Mycosym International AG is a plant technology company that develops, produces and markets innovative biological soil conditioners using mycorrhiza technology (natural symbiosis of plant roots and soil fungi). Mycosym products improve plant growth (vitalization, root volume), resulting in greater yield, higher plant stress tolerance and fewer losses in intensive farming, and allowing growth in extreme locations (aridity, salinity). Another benefit is substantially reduced water consumption in agriculture and gardening. In some applications, resistance to pests and illnesses is increased.
p New Value increased the existing loan in the reporting period by CHF 200,000, with additional funds provided proportionally by institutional co-investors and management.
p Valuation of the stock position was adjusted to CHF 16.86 per share (at March 31, 2009: CHF 21.75) due to a significant sales shortfall and now totals CHF 3.28 million. The CHF 0.95 million devaluation was based on new corporate projections and calculated using the discounted cash flow method. The loan for CHF 0.66 million remained unchanged at face value. The Mycosym position as a whole was devalued by CHF 0.95 to CHF 4.23 million.
Business segments: energy-efficient lubricants made using renewable raw materials Location: Immensee (Schwyz), Switzerland Number of employees as of 03/31/2010: 2.0 full-time staff Sales development 01/01–12/31/2009: -62% New Value holdings as of 03/31/2010: CHF 0.79 million; corresponds to a 29.9% share of equity; additional CHF 1.31 million convertible loan New Value Board Representative: Peter Letter Website: www.natoil.ch
p Natoil AG develops and distributes industrial lubricants with first-rate technical qualities made as much as possible using renewable raw materials. Their use enables substantial energy savings and reduces wear and tear thanks to lower friction. The demand for energy-efficient solutions and the long-term trend toward higher prices for mineral oil products underscore the market potential for Natoil lubricants. Natoil uses seeds from a special type of sunflower cultivated in Europe as its primary raw ingredient. This variation of the sunflower does not compete with food production.
ing CHF 0.53 million at favorable terms. The rest was provided by management and existing investors.
p The valuation of the stock position was adjusted to CHF 6.34 per share due to lower-than-projected sales (at March 31, 2009: CHF 25.38; at September 30, 2009: CHF 12.69, corresponding to the average acquisition price per share at that time, which was lower than in March due to a capital increase). The stock position was devalued from CHF 0.8 million to now CHF 0.79 million based on corporate projections and using the discounted cash flow method. The market value of the convertible loan includes a valuation of the borrowed capital portion at net present value using the effective interest method and of the option portion. Due to favorable conversion terms, the convertible loan was recognized at CHF 1.31 million, representing an upward revaluation of CHF 1.1 million based primarily on the value of the option portion as per IFRS guidelines. The overall value of the Natoil position was thus increased by CHF 0.31 million to CHF 2.1 million.
Business segments: Information technology/M2M telemetry with a strong focus on cleantech applications Location: Morges (Vaud), Switzerland Number of employees as of 03/31/2010: 31 full-time staff Sales development 01/01–12/31/2009: +31% New Value holdings as of 03/31/2010: CHF 3.58 million; corresponds to 25.7% share of equity; additional CHF 0.9 million convertible loan New Value Board Representative: Dr. Marius Fuchs (New Value cooperation partner) Website: www.silentsoft.com
p Silentsoft SA is a leading provider of machine to machine (M2M) communication technology with a strong focus on the cleantech sector. Silentsoft's proprietary technology features processes and software that make it possible to operate large M2M remote monitoring networks for measuring, automatically transmitting and analyzing data from geographically distributed containers for liquids, powders or waste products. Silentsoft has become Europe's leading provider of wireless M2M network services for building management and now offers additional solutions for waste management and recycling. Over 30,000 systems in 12 European countries provide customers with the necessary real-time data for reducing their energy and transportation costs and CO2 emissions.
0.75 million in the form of a convertible loan. Silentsoft will use the funds to finance the market launch of its new technology for the green building market segment (energy optimization and real-time building monitoring).
p Valuation remained at CHF 176.13 per share, corresponding to the acquisition price at the last capital increases in February and November 2008 (at March 31, 2009: CHF 176.13) and resulting in a valuation of the stock position at CHF 3.58 million. The market value of the convertible loan includes a valuation of the borrowed capital portion at net present value using the effective interest method and of the option portion. Due to favorable conversion terms, the convertible loan was recognized at CHF 0.9 million, representing a CHF 0.15 million upward revaluation. The value of the Silentsoft position as a whole increased by CHF 0.15 million to CHF 4.48 million.
Business segments: Solar industry firms along the value chain for PV solar module manufacture and marketing Locations: Niederurnen (Glarus), Switzerland; Milan, Italy; and Puchheim, Germany Number of employees as of 03/31/2010: 14 full-time staff and external partners (including non-fully-consolidated companies: 239 full-time staff) Sales development: TBD New Value holdings as of 03/31/2010: CHF 7.77 million; corresponds to 33.1% share of equity New Value Board Representative: Rolf Wägli (President) Website: www.solarindustries.ch
p Solar Industries AG follows a growth and buy-and-build strategy with new and existing companies along the value chain of solar module manufacture and marketing. Solar Industries strives toward a competitive industrial integration of these companies. In Italy, Solar Industries works with Milan-based MX Group SpA (with a minority interest). MX Group operates production facilities for PV solar modules with an annual capacity of 120 MWp. The Group is currently planning and implementing solar parks. Additional major investments are planned in the construction of production facilities for solar cells and solar modules as well as distribution companies. Solar Industries also holds a majority interest in SI Solutions GmbH of Puchheim, Germany (near Munich), a provider of photovoltaic systems. These investments in the important solar markets of Italy and Germany will serve as a platform for expansion into other European and overseas markets.
p Italian partner MX Group increased production of solar modules in Italy last year. Production was gradually converted from a semi- to fully-automated system, achieving a production capacity of 120 MWp per year. Production systems, including technical consulting, were provided by 3S Swiss Solar Systems. The module production system is one of Europe's most modern and is used by 3S as a reference project for customer presentations.
p Valuation at CHF 5.00 per share corresponds to the price at the last capital increase in December 2008 (at March 31, 2009: CHF 5.00) and resulted in an unchanged valuation of the stock position at CHF 7.77 million.
Business segments: System provider of renewable-energy-based solutions for modern building services such as heating, photovoltaic or rainwater harvesting systems Locations: Neukirchen-Vluyn, Germany (headquarters) and 13 other locations in Germany and Austria Number of employees as of 03/31/2010: 60 full-time staff Sales development 01/01–12/31/2009: +48% New Value holdings as of 03/31/2010: EUR 1.5 Mio. mezzanine loan New Value Board Representative: none Website: www.zws.de
p ZWS was founded in the late 1990s by its two managing partners, Uwe Zilleckens and Rolf Wolfhagen, as a certified provider of heating systems, sanitary installations and innovative, future-oriented thermal systems. Since then, the business has been gradually expanded. Products include systems for all modern building services with a focus on renewable energy-based solutions: thermal solar systems (water heating, heating system support), photovoltaic systems, heating (heat pumps, pellet, wood, storage solutions), system technology (building systems combining different technologies), ventilation (heat recovery and cooling) and sanitary and rainwater recycling.
cooperation with manufacturers. Plans call for bringing unique storage solutions, improved pellet ovens and fuel cells to market in the near future.
p The mezzanine loan is a new investment that took place in March 2010. It was recognized at its nominal value of EUR 1.5 million (CHF 2.15 million).
Business segments: Animal health and nutrition using plant-based ingredients Location: Wallisellen, Switzerland Number of employees as of 03/31/2010: 8 full-time positions Sales development 01/01–12/31/2009: -43% New Value holdings as of 03/31/2010: CHF 0.72 million; corresponds to 31.6% share of equity; additional CHF 1.7 million convertible loan New Value Board Representative: Rolf Wägli Website: www.bogar.com
p Bogar AG is a specialist in natural and future-oriented pet health and nutrition that develops, produces and distributes high-quality herbal pet food supplements and care products. Bogar is a pioneer in the field of veterinary phytotherapy. The continuously expanding product line consists of effective nutritional supplements as well as high-quality care compounds for dogs, cats and sporting and recreational horses.
product range and distribution network. A restructuring of the company's capital stock also took place to eliminate negative equity.
p Due to lower-than-projected sales and the restructuring of capital stock, the existing stock position was depreciated (devaluation of CHF -7.15 million, of which CHF 3.57 million was recognized effective September 30, 2009). Because financing was used for restructuring purposes, based on corporate projections new shares were valued using the discounted cash flow method. Valuation at CHF 3.21 per share (issue price: CHF 1.00 per share) resulted in an upward revaluation of the stock position by CHF 0.49 million. The market value of the convertible loan includes a valuation of the borrowed capital portion at net present value using the effective interest method and of the option portion. Due to favorable conversion terms, the convertible loan was recognized at CHF 1.7 million, representing an upward revaluation of CHF 1.18 million, based primarily on the value of the option portion as per IFRS guidelines. The value of the Bogar position as a whole was adjusted by CHF -5.47 million to CHF 2.42 million.
Business segments: Back and respiratory diagnostics and rehabilitation Locations: Fehraltorf (Zürich), Switzerland, and Bad Säckingen, Germany Number of employees as of 03/31/2010: 10 full-time staff Sales development 01/01–12/31/2009: -25.7% New Value holdings as of 03/31/2010: CHF 4.43 million; corresponds to 41.5% share of equity; additional CHF 1.88 million convertible loan New Value Board Representative: Paul Santner (President) Website: www.idiag.ch
p Idiag AG develops and distributes innovative products for medicine and sports applications in the back care and respiration growth segments. MediMouse® is a convenient measuring system for computer-assisted imaging and radiation-free examination of the shape and mobility of the spinal column for diagnostics and therapy assistance. SpiroTiger® Medical is a respiratory training device used to improve the performance and endurance of respiratory muscles for medical treatment (for example, shortness of breath in COPD patients, snoring, sleep apnea and cystic fibrosis). Idiag markets SpiroTiger® Sport to the sports market for endurance and strength training of the respiratory muscles.
ing was provided by BioMedCredit and private investors. BioMedCredit also converted a portion of its loan into equity, thus reducing New Value's share in Idiag to 41.5%.
p Valuation at CHF 0.64 per share took place using the discounted cash flow method (at March 31, 2009: CHF 1.20) and took into account the dilution effect of outstanding convertible loans and slower business performance. A new shareholder invested additional capital in late 2009 at the new price. The CHF -3.62 million adjustment in the value of the stock position was previously recognized in the mid-year financial statements dated September 30, 2009. The market value of the convertible loan includes a valuation of the borrowed capital portion at net present value using the effective interest method and of the option portion. Due to favorable conversion terms, the convertible loan was valued at CHF 1.88 million, resulting in an upward revaluation of CHF 1.36 million, largely influenced by the value of the option portion as per IFRS guidelines. The Idiag position as a whole was devalued by CHF -2.26 to CHF 6.31 million.
Business segments: Patient communications platform for the health industry Locations: Lugano and Bülach, Switzerland Number of employees as of 03/31/2010: 7 full-time staff Sales development: In the market launch stage; first major project completed New Value holdings as of 03/31/2010: CHF 2.0 million; corresponds to 38.1% share of equity; additional CHF 1.1 million loan New Value Board Representative: Thomas Keller Website: www.qualilife.com
p QualiLife SA is a software company that specializes in developing multimedia and entertainment solutions for hospital patients. QualiLife's newest development, QualiMedical UCS (Unified Communication Solution), is an innovative software platform that allows patients in hospitals and rehab clinics to access TV, radio, telephone and the internet or to watch videos. The software is intuitive and can be used by physically handicapped patients as well. Through interfaces to the administration systems, bedside activity recording and targeted patient information, the solution supports work processes in the clinic, thus helping improve efficiency and quality. In addition to solutions for clinic, QualiLife offers additional solutions for persons with disabilities and the elderly.
Marketing efforts were greatly intensified through trade show exhibits, advertising campaigns and interviews in print media, as well as a new website. Additional sales personnel were hired.
an additional CHF 1.28 million and granted loans as of October 2009 for CHF 1.2 million (CHF 1.1 million of which was paid out on the effective date). New Value now holds 38.1% of the company. The new funds are being used mainly for the expansion of international marketing structures and the further development of products for the health care industry.
p Valuation at CHF 3.02 per share corresponds to the average acquisition price (at March 31, 2009: CHF 3.00), resulting in a total stock position of CHF 2.0 million. The loan for CHF 1.1 million was recognized at face value. No value adjustments were made; the QualiLife position as a whole totals CHF 3.1 million.
Business segment: In-vitro diagnostics for self-tests Location: Büron, Switzerland Number of employees as of 03/31/2010: 8 full-time staff Sales development 01/01–12/31/2009: +116%. New Value holdings as of 03/31/2010: CHF 1.56 million, corresponds to a 38.9% share of equity; additional CHF 6.34 million convertible loan New Value Board Representative: Peter Letter Website: www.swissmedicalsolution.ch
p Swiss Medial Solution AG developed a unique, patented platform technology for in-vitro diagnostics designed especially for home testing. The company has begun by producing and selling target-market-tailored self-tests for early indication of urinary tract infections. The first product on the market is an early detection self-test for women (U-Lab®). Other direct products targeted at toddlers and diabetics are in preparation for market launch.
p Valuation at CHF 5.00 per share took place using the discounted cash flow method and took into account the dilution effect of outstanding convertible loans (at March 31, 2009: CHF 5.00). The value of the stock position thus remained unchanged at CHF 1.56 million and was below the acquisition price. The market value of the convertible loan includes a valuation of the borrowed capital portion at net present value using the effective interest method and of the option portion. Due to attractive conversion terms, the convertible loan was recognized at CHF 6.34 million, representing an upward valuation of CHF 0.74 million based primarily on the value of the option portion as per IFRS guidelines. The value of the Idiag position as a whole increased by CHF 0.74 to CHF 7.9 million.
Business segments: E-commerce company in the online photo service segment Locations: Zug and Basel, Switzerland, and Trivandrum, India Number of employees as of 03/31/2010: 42 full-time staff Sales development: -17% New Value holdings as of 03/31/2010: CHF 3.0 million, corresponds to a 45% share of equity; additional CHF 3.34 million convertible loan and CHF 0.25 million loan New Value Board Representative: Peter Letter (President) Website: www.fotodesk.com
p FotoDesk Group AG is an integrated digital imaging services company that offers traditional photo printing alongside innovative lifestyle products such as highquality photo books, self-stick posters and wall tattoos. FotoDesk expanded its offerings with an online boutique for fine art prints. Through the merger with www.flauntr.com, an online image editing portal, customers can also access high-quality image editing applications. These are gradually being integrated into FotoDesk's online services. The company launched two online services, www.colormailer.com and www.fastlab.com.
loan for CHF 0.25 million. After the balance sheet date, New Value increased the loan by CHF 0.2 million.
p Valuation at CHF 5.00 per share took place using the discounted cash flow method and took into account the dilution effect of outstanding convertible loans (at March 31, 2009: CHF 1.00). The value of the stock position was adjusted by CHF -1.5 million to CHF 3.0 million due to weaker-than-expected operational business performance. The market value of the convertible loan includes a valuation of the borrowed capital portion at net present value using the effective interest method and of the option portion. Due to favorable conversion terms, the convertible loan was recognized at CHF 3.34 million, representing an upward revaluation of CHF 1.98 million. The value of the Silentsoft position as a whole increased by CHF 0.48 million to CHF 6.34 million.
| 3/31/10 | 3/31/09 | ||
|---|---|---|---|
| Item | Note | CHF | CHF |
| Non-Current Assets | |||
|---|---|---|---|
| Investments | 19.2. | 27,130,519 | 53,530,700 |
| Long-term Convertibles and Loans | 18.2/18.3. | 17,226,105 | 5,638,153 |
| Total Non-Current Assets | 44,356,624 | 59,168,853 | |
| Current Assets | |||
| Short-term Convertibles and Loans | 18.1. | 2,395,150 | 240,000 |
| Other accounts receivable | 17 | 34,902 | 65,591 |
| Accruals | 203,941 | 16,262 | |
| Cash and cash equivalents | 16 | 31,129,585 | 7,630,280 |
| Total Current Assets | 33,763,578 | 7,952,133 | |
| Total Assets | 78,120,202 | 67,120,986 |
| Shareholders Equity | ||
|---|---|---|
| Share capital paid-in 20 |
32,872,330 | 32,872,330 |
| Treasury Shares 20.4. |
–1,594,404 | –5,231,499 |
| Share premium | 20,411,492 | 22,115,981 |
| Accumulated profit/loss carried forward | 25,603,325 | 15,587,969 |
| Total Shareholders' Equity | 77,292,743 | 65,344,781 |
| Liabilities | ||
| Short-term Financial Liabilities | 0 | 1,324,800 |
| Deferrals | 827,459 | 451,405 |
| Total Liabilities | 827,459 | 1,776,205 |
| Total Liabilities and Shareholders' Equity | 78,120,202 | 67,120,986 |
| 4/1/2009 – 3/31/2010 |
4/1/2008 – 3/31/09 |
|
|---|---|---|
| Item Note |
CHF | CHF |
| Income from investments and loans | ||
| Income from sale of investments 19.2. |
19,978,702 | 1,043,816 |
| Unrealised income from investments 18/19.2. |
6,595,967 | 5,371,986 |
| Interest income 23 |
194,069 | 239,433 |
| Total income from investments and loans | 26,768,738 | 6,655,235 |
| Expenses from investments and loans | ||
| Unrealised losses on investments and loans 18/19.2. |
–13,516,326 | –17,330,686 |
| Realised losses on investments and loans | 0 | –138,645 |
| Investment expenses | –172,888 | –187,131 |
| Total expenses from investments and loans | –13,689,214 | –17,656,462 |
| Operating expenses | ||
| Investment management fee 22 |
–1,437,015 | –1,746,663 |
| External personnel expenses 22 |
–96,840 | –96,840 |
| Expenses Board of Directors 26 |
–297,981 | –152,850 |
| Expenses auditors | –74,876 | –65,851 |
| Expenses Communication/Investor Relations | –480,276 | –480,079 |
| Consulting costs (Legal and Tax) | –16,023 | –27,060 |
| Other administrative expenses | –168,600 | –178,824 |
| Tax | –140,366 | –105,000 |
| Total operating expenses | –2,711,977 | –2,853,167 |
| Financial income and expenses | ||
| Financial income 23 |
30,644 | 92,276 |
| Financial expenses 23 |
–382,835 | –226,707 |
| Total financial income and expenses | –352,191 | –134,431 |
| Earnings before taxes | 10,015,356 | –13,988,825 |
| Income tax 24 |
0 | 0 |
| Annual profit | 10,015,356 | –13,988,825 |
| Other profit or loss | 0 | 0 |
| Overall result | 10,015,356 | –13,988,825 |
| Average number of shares outstanding | 3,129,174 | 2,846,545 |
| Result per share undiluted 25 |
3.20 | -4.91 |
| Result per share diluted 25 |
3.20 | -4.91 |
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
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.