Bellevue Group - Annual Report 2020

2 Details on the consolidated income statement

2.1 Revenues from asset management services

CHF 1 000	1.1.–31.12.2020	1.1.–31.12.2019
Management fees	102 423	95 370
Performance fees	3 818	6 256
Other commission income	2 993	1 080
Fee and commission expense	– 415	– 550
Revenues from asset management services	108 819	102 156

Management fees are generated from asset management mandates with listed investment companies, regulated funds in various countries, private equity funds or institutional counterparties. The fees are mostly collected on a monthly basis.

Various mandates include performance fees. These are only taken into account when the performance period has been completed. For regulated funds, this is the calendar year. In some cases, mandates are invoiced on a quarterly basis. In the case of private equity funds, depending on the partnership agreement, this takes place when the fund is redeemed or dissolved.

Other commission income includes transaction-related fees.

2.2 Net other income

CHF 1 000	1.1.–31.12.2020	1.1.–31.12.2019
Dividend income	494	524
Interest income	44	8
Interest expenses	– 103	– 101
Net foreign exchange income/losses	– 613	– 186
Other	139	303
Total net other income	– 39	548

2.3 Personnel expenses

CHF 1 000	1.1.–31.12.2020	1.1.–31.12.2019 restated*
Fix and variable salaries	50 113	45 054
Pension cost	– 2 864	– 1 620
Other social benefits	4 281	3 693
Other personnel expenses	364	667
Total personnel expenses	51 894	47 794

^*) The previous-year period has been adjusted. We refer to the statement on the correction of errors in section 4.2.
¹⁾ For further details see note 3.8.

The compensation system for Bellevue Group employees is conceived to motivate employees at all operating units to do excellent work. It is a compensation model based on «personal ownership» and merit system principles. In setting fixed salaries, a restrained policy prevails from a business point of view. On the other hand, variable compensation is offered under an attractive ownership-oriented profit-sharing plan. This profit-sharing plan is tied directly to Bellevue Group’s operating results. Moreover, part of this bonus is paid in the form of restricted stock awards and shares of in-house products («we eat our own cooking»). This system is conducive to a culture of high performance with a long-term horizon.

The basis for calculating Bellevue Group’s variable compensation pool is adjusted consolidated earnings before taxes.

A fixed portion of the adjusted Group profit before taxes is allocated to the employees (total pool of variable compensation). Due to the direct link between the Group's results and the total pool of variable compensation, there is a mechanism in place to ensure that variable compensation is commensurate with the Group's operating performance (variabilization of profit-sharing).

2.4 Operating expenses

CHF 1 000	1.1.–31.12.2020	1.1.–31.12.2019
Occupancy and maintenance expenses	707	731
IT and telecommunications	3 161	3 076
Travel and representation, PR, advertising	2 557	4 070
Consulting and audit fees	2 124	1 820
Research expenses	2 071	2 266
Other operating expenses	1 085	1 148
Total Other operating expenses	11 705	13 111

2.5 Depreciation and amortization

CHF 1 000	1.1.–31.12.2020	1.1.–31.12.2019
Depreciation of property and equipment	667	284
Depreciation of rights of use	2 196	1 943
Depreciation of intangible fixed assets	1 914	2 020
Total Depreciation and amortization	4 777	4 247

2.6 Valuation adjustments and provisions

CHF 1 000	1.1.–31.12.2020	1.1.–31.12.2019
Value adjustment Goodwill (Impairment)	7 434	7 392
Value adjustment intangible assets (Impairment)	2 144	949
Total Valuation adjustments and provisions	9 578	8 341

For further details, please refer to the comments under section 3.6.

2.7 Tax

2.7.1 Income taxes

CHF 1 000	1.1.–31.12.2020	1.1.–31.12.2019 restated*
Current income taxes	8 675	8 295
Deferred income taxes	200	120
Total	8 875	8 415

Tax income reconciliation
Pre-tax result	31 897	27 875
Expected rate of income tax 1)	19%	19%
Expected income tax	6 060	5 296
Reasons for higher/lower amounts:
Difference between applicable local tax rates and assumed mixed tax rate	273	650
Non-deductible expenses	2 196	2 469
Tax income unrelated to accounting period	346	–
Total income taxes	8 875	8 415

^*) The previous-year period has been adjusted. We refer to the statement on the correction of errors in section 4.2.
¹⁾ The expected income tax rate is a mixed tax rate estimated by considering all the different businesses of the Group.


CHF 1 000	1.1.–31.12.2020
Tax effect of other comprehensive income	Amount before taxes	Tax income/ (expense)	Amount after taxes
Currency translation adjustments	– 290	–	– 290
Gains and losses arising on revaluation of financial assets at fair value through other comprehensive income	– 104	20	– 84
Remeasurement of post-employment benefit obligations IAS 19	– 460	87	– 373
Total	– 854	107	– 747

CHF 1 000	1.1.–31.12.2019
Tax effect of other comprehensive income	Amount before taxes	Tax income/ (expense)	Amount after taxes
Currency translation adjustments	– 1 443	–	– 1 443
Gains and losses arising on revaluation of financial assets at fair value through other comprehensive income	4 298	– 32	4 266
Remeasurement of post-employment benefit obligations IAS 19	– 2 432	470	– 1 962
Total	423	438	861

2.7.2 Deferred tax assets

CHF 1 000	Provisions and pension obligations	Other	Total
Balance as of 1.1.2019	270	333	603
Credited/(charged)
to profit or loss	– 526	249	– 277
to other comprehensive income	419	–	419
directly to equity	– 163	– 115	– 278
Currency translation adjustments	–	– 2	– 2
Balance as of 31.12.2019	–	465	465

Balance as of 1.1.2020	–	465	465
Credited/(charged)
to profit or loss	–	– 27	– 27
Currency translation adjustments	–	– 5	– 5
Balance as of 31.12.2020	–	433	433

CHF 1 000	31.12.2020	31.12.2019
Expiry of unrecognized loss carryforwards
1 to 5 years	12 605	12 605
More than 5 years	3 404	–
Total	16 009	12 605

The non-capitalized loss carryforwards originate mainly from Bellevue Group AG. Due to the tax deduction for investments, no income tax benefit will most likely arise for Bellevue Group if these loss carryforwards are utilized. Based on this fact, no deferred tax asset was capitalized.

2.7.3 Deferred tax liabilities

CHF 1 000	Intangible assets	Assets from pension plans	Other 1)	Total
Balance as of 1.1.2019	3 361	–	2 115	5 476
Charged/(credited)
to profit or loss	– 776	68	551	– 157
to other comprehensive income	–	–	– 15	– 15
Currency translation adjustments	– 48	–	– 1	– 49
Business combination	380	–	–	380
Balance as of 31.12.2019	2 917	68	2 650	5 635

Balance as of 1.1.2020	2 917	68	2 650	5 635
Charged/(credited)
to profit or loss	– 1 069	887	355	173
to other comprehensive income	–	2	– 20	– 18
directly to equity	125	–	–	125
Currency translation adjustments	– 20	–	16	– 4
Business combination	44	–	–	44
Balance as of 31.12.2020	1 996	957	3 001	5 954

1) Other deferred tax assets refer to the result of the adoption of IFRS 2 (share-based payment) and IAS 19 (other long-term employee benefits).