Talenthouse AG

Earnings Release • Jun 16, 2009

News Details

Ad-hoc | 16 June 2009 06:33

Information regarding New Value’s 2008/2009 Annual Results

NEW VALUE AG / Final Results

Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Focus on portfolio company development - one new investment, three
subsequent financing initiatives

Zurich, June 16, 2009. New Value, the SIX Swiss Exchange-listed investment
company focusing on supporting young, innovative growth companies, expanded
its portfolio during the 2008/09 financial year (as of March 31, 2009) and
increased its maturity. With its expertise and active attention as well as
multiple growth financing initiatives, New Value supported the further
development of its portfolio companies.
Despite solid operational performance, the sharp downturn in the economy
during the second half of the year and significant valuation and stock
price losses had a negative effect on New Value's financial performance for
the year. Due primarily to low stock prices for 3S Industries AG at the
effective year-end date, New Value closed the 2008/09 financial year with
an annual loss of CHF 13.99 million (the same factor led to profits of CHF
22.31 million in the previous year). A loss per share of CHF 4.91 was
recorded for the reporting period (previous year: profit of CHF 7.78). Net
asset value (NAV) saw a similar development, ending the year at CHF 21.76
per share, or 20.5% below the previous year. This corresponds to a moderate
loss in comparison to competing private equity firms.

This annual loss merits a closer analysis: On March 31, 2009, New Value's
balance sheet date, shares of 3S Industries closed at CHF 9.95 (previous
year: CHF 18.50). By June 12, 2009, shares in 3S had risen over 85% to CHF
18.50, compensating the difference in valuation that led to the 2008/09
loss. New Value is 97% self-financed.

New investment in QualiLife SA
During the reporting period, New Value invested in QualiLife SA, a software
company based in Lugano, Switzerland, that specializes in IT solutions for
the elderly and the disabled. 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 invests CHF 2.0 million in three increments.
Subsequent financing for Solar Industries, Bogar and Silentsoft
Solar Industries AG, who in the spring of 2008 established a cooperation
agreement with the Italian MX Group, is currently investing funds in the
construction of production facilities for modules (MS panels) and solar
cells (Solarcell) for the Italian and 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%. Bogar, an animal health and nutrition firm who in 2008
increased its sales by two third, will use the additional funds to expand
its sales structures and develop new products.
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. New Value increased its investment of CHF 2.2 million in the
company with a capital increase of CHF 1 million. Its share in the company
is now 25.7%.
Gradual business development among portfolio companies
3S Industries reached a trendsetting milestone in the reporting period with
the takeover of Somont, a market leader and specialist in solar cell
stringing machines. The solar firm now provides all key technologies for
the manufacture of solar modules and is excellently positioned to take part
in the growth of this dynamic future-oriented market.
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.
The operational management team at Swiss Medical Solution AG was expanded
and strengthened 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
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.
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%). As of
March 31, 2009, liquid funds totaled 9.6% (net calculation: liquid funds
minus short-term financial liabilities).
Financial results:
Realized earnings from disposals and unrealized depreciation of investments
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 selling assets.
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. Since New Value's balance sheet date the share price of 3S
has increased to CHF 18.50. As a result of a pro forma calculation of this
value adjustment, the year end result would have been improved by 12.9
million.

Operating expenditures increased to CHF 2.85 million (previous year: CHF
2.67 million) due to higher expenditures for investment advisory 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
advisory fees are expected to drop accordingly in the coming financial
year. Compensation to the Board of Directors fell to CHF 152,850 (previous
year: CHF 245,486), due to the termination of a stock option plan.
Planned expansion of portfolio
New Value is currently invested in eleven growth companies. In the medium
term, New Value plans to further expand its portfolio and significantly
increase its investment volume from CHF 80 million currently. The company
will continue to focus its investment activities on growth industries
including renewable energy, medical technology, health care, information
technology and new materials.

Information about New Value AG
New Value, officially listed at the SIX Swiss Exchange, invests directly in
promising private companies in Switzerland and neighbouring countries with
above-average market and growth potential. As an investment company, New
Value promotes innovative business models with venture capital and
accompanies those to market success. The portfolio covers companies of
different stages of development, starting with the market introduction
phase up to medium-sized enterprises with stable profits. A broad
investment approach is deliberately followed regarding industry sectors.
The portfolio contains companies active in renewable energy, medical
technology, health, information technology and new materials. New Value
assigns great value to ethical business concepts and good corporate
governance while selecting their portfolio companies. Criteria such as
meaningfulness, social responsibility and ecological sustainability are
considered by New Value as decisive competitive advantages, which affect
and enhance the quality of products and services offered and thus,
facilitate an above average increase of value potential. Since the
formation of New Value, EPS Value Plus AG, Zurich, has served as investment
manager.
16.06.2009 Financial News transmitted by DGAP

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Language: English
Issuer: NEW VALUE AG
Bodmerstrasse 9
8027 Zürich
Schweiz
Phone: +41-43-344 38 38
Fax: +41-43-344 38 39
E-mail: info@newvalue.ch
Internet: www.newvalue.ch
ISIN: CH0010819867
WKN: 552932
Listed: Freiverkehr in Berlin, Stuttgart, München, Düsseldorf; Open
Market in Frankfurt; Foreign Exchange(s) SWX

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