Notes to the consolidated financial statements
1 Segment information
The Group Executive Board is the Group’s chief operating decision maker and reviews the results from a product-related as well as a geographical perspective. Bellevue Group is focusing exclusively on the Asset Management business unit and therefore reports only one reportable segment. The segment consists of the operating business units Bellevue Asset Management, StarCapital and Bellevue Private Markets. The offering includes a broad-based range of investment funds as well as investment solutions for institutional, intermediary and private clients. The segment’s investment philosophy is characterized by a purely active management approach. Bellevue Asset Management has a clear focus on managing equity portfolios for selected sector and regional strategies, based on a fundamental and research-driven stock picking approach (“bottom up”). In contrast, StarCapital AG pursues a holistic asset management approach based on quantitative and experience-driven investment approaches with pronounced anti-cyclicality. Its well-diversified product offering in the areas of asset-managed strategies, global bond and equity strategies, and multi-asset class solutions thus exhibits a high degree of complementarity. Bellevue Private Markets specializes in developing exclusive investment opportunities in unlisted companies for its investor group. In addition, it acts as investment advisor for private equity funds. This represents a further diversification of the investment universe with low correlation to the capital markets. All three business units operate in similar regions. Group Management monitors the results of the three business units both on a consolidated basis and separately.
The geographical breakdown of operating income is as follows:
CHF 1 000 |
|
1.1.–31.12.2021 |
|
1.1.–31.12.2020 |
Operating income |
|
|
|
|
Switzerland |
|
117 932 |
|
94 862 |
Great Britain |
|
12 272 |
|
6 581 |
Germany |
|
6 268 |
|
6 999 |
Other countries |
|
4 146 |
|
3 470 |
Total |
|
140 618 |
|
111 912 |
thereof from continuing operations |
|
140 618 |
|
109 851 |
thereof from discontinued operations |
|
– |
|
2 061 |
All income from discontinued operations was managed in Switzerland in the previous period.
Total non-current assets (including goodwill and excluding other financial assets at fair value) are as follows:
CHF 1 000 |
|
31.12.2021 |
|
31.12.2020 |
Non-current assets |
|
|
|
|
Switzerland |
|
35 814 |
|
38 304 |
Germany |
|
14 654 |
|
19 173 |
Other countries |
|
63 |
|
133 |
Total |
|
50 531 |
|
57 610 |
2 Details on the consolidated income statement
2.1 Revenues from asset management services
CHF 1 000 |
|
1.1.–31.12.2021 |
|
1.1.–31.12.2020 |
Management fees |
|
137 418 |
|
102 423 |
Performance fees |
|
2 326 |
|
3 818 |
Other commission income |
|
2 850 |
|
2 993 |
Fee and commission expense |
|
– 1 498 |
|
– 415 |
Revenues from asset management services |
|
141 096 |
|
108 819 |
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.–31.12.2021 |
|
1.1.–31.12.2020 |
Dividend income |
|
333 |
|
494 |
Interest income |
|
20 |
|
44 |
Interest expenses |
|
– 45 |
|
– 103 |
Net foreign exchange income/losses |
|
– 87 |
|
– 613 |
Other |
|
133 |
|
139 |
Total net other income |
|
354 |
|
– 39 |
2.3 Personnel expenses
CHF 1 000 |
|
1.1.–31.12.2021 |
|
1.1.–31.12.2020 |
Fix and variable salaries |
|
58 649 |
|
50 113 |
Pension cost |
|
2 084 |
|
– 2 864 |
Other social benefits |
|
4 832 |
|
4 281 |
Other personnel expenses |
|
480 |
|
364 |
Total personnel expenses |
|
66 045 |
|
51 894 |
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.–31.12.2021 |
|
1.1.–31.12.2020 |
Occupancy and maintenance expenses |
|
801 |
|
707 |
IT and telecommunications |
|
3 539 |
|
3 161 |
Travel and representation, PR, advertising |
|
4 254 |
|
2 557 |
Consulting and audit fees |
|
1 992 |
|
2 124 |
Research expenses |
|
2 188 |
|
2 071 |
Other operating expenses |
|
1 570 |
|
1 085 |
Total Other operating expenses |
|
14 344 |
|
11 705 |
2.5 Depreciation and amortization
CHF 1 000 |
|
1.1.–31.12.2021 |
|
1.1.–31.12.2020 |
Depreciation of property and equipment |
|
426 |
|
667 |
Depreciation of rights of use |
|
1 705 |
|
2 196 |
Depreciation of intangible assets |
|
1 620 |
|
1 914 |
Total Depreciation and amortization |
|
3 751 |
|
4 777 |
2.6 Valuation adjustments
CHF 1 000 |
|
1.1.–31.12.2021 |
|
1.1.–31.12.2020 |
Value adjustment Goodwill (Impairment) |
|
2 026 |
|
7 434 |
Value adjustment intangible assets (Impairment) |
|
862 |
|
2 144 |
Total Valuation adjustments |
|
2 888 |
|
9 578 |
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.–31.12.2021 |
|
1.1.–31.12.2020 |
Current income taxes |
|
10 549 |
|
8 675 |
Deferred income taxes |
|
– 22 |
|
200 |
Total |
|
10 527 |
|
8 875 |
|
|
|
|
|
Tax income reconciliation |
|
|
|
|
Pre-tax result |
|
53 590 |
|
31 897 |
Expected rate of income tax 1) |
|
19% |
|
19% |
Expected income tax |
|
10 182 |
|
6 060 |
Reasons for higher/lower amounts: |
|
|
|
|
Difference between applicable local tax rates and assumed mixed tax rate |
|
– 81 |
|
273 |
Non-deductible expenses |
|
435 |
|
2 196 |
Tax income unrelated to accounting period |
|
– 9 |
|
346 |
Total income taxes |
|
10 527 |
|
8 875 |
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.–31.12.2021 |
||||
Tax effect of other comprehensive income |
|
Amount before taxes |
|
Tax income/ (expense) |
|
Amount after taxes |
Currency translation adjustments |
|
– 793 |
|
– |
|
– 793 |
Gains and losses arising on revaluation of financial assets at fair value through other comprehensive income |
|
786 |
|
– 109 |
|
677 |
Remeasurement of post-employment benefit obligations IAS 19 |
|
– 3 877 |
|
738 |
|
– 3 139 |
Total |
|
– 3 884 |
|
629 |
|
– 3 255 |
|
|
|
|
|
|
|
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 |
2.7.2 Deferred tax assets
CHF 1 000 |
|
Other |
|
Total |
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 |
|
|
|
|
|
Balance as of 1.1.2021 |
|
433 |
|
433 |
Credited/(charged) |
|
|
|
|
to profit or loss |
|
63 |
|
63 |
Currency translation adjustments |
|
5 |
|
5 |
Balance as of 31.12.2021 |
|
501 |
|
501 |
CHF 1 000 |
|
31.12.2021 |
|
31.12.2020 |
Expiry of unrecognized loss carryforwards |
|
|
|
|
1 to 5 years |
|
136 |
|
12 605 |
More than 5 years |
|
759 |
|
3 404 |
Total |
|
895 |
|
16 009 |
The non-capitalized loss carryforwards originate mainly from Swiss subsidiaries. Due to restructuring in these entities it is uncertain whether there will be an income tax benefit for Bellevue Group. 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 1.1.2020 |
|
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 |
|
|
|
|
|
|
|
|
|
Balance as of 1.1.2021 |
|
1 996 |
|
957 |
|
3 001 |
|
5 954 |
Charged/(credited) |
|
|
|
|
|
|
|
|
to profit or loss |
|
– 611 |
|
– 46 |
|
698 |
|
41 |
to other comprehensive income |
|
– |
|
– 738 |
|
109 |
|
– 629 |
Currency translation adjustments |
|
– 28 |
|
– |
|
– 3 |
|
– 31 |
Balance as of 31.12.2021 |
|
1 357 |
|
173 |
|
3 805 |
|
5 335 |
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).
3 Details on the consolidated balance sheet
3.1 Financial assets and financial liabilities
3.1.1 Fair value of financial instruments
CHF 1 000 |
|
31.12.2021 |
|
31.12.2020 |
|
|
Book value |
|
Book value |
Assets |
|
|
|
|
Financial investments |
|
|
|
|
Investments in own products |
|
28 251 |
|
22 297 |
Investments in own products to fulfill long-term incentive plans |
|
20 287 |
|
19 081 |
Derivative financial instruments |
|
32 |
|
– |
Other investments in equity instruments |
|
1 037 |
|
1 306 |
Financial assets at fair value through profit and loss |
|
49 607 |
|
42 684 |
|
|
|
|
|
Financial investments |
|
|
|
|
Investments in own products |
|
3 528 |
|
989 |
Other investments in equity instruments |
|
– |
|
10 195 |
Financial assets with OCI fair value measurement |
|
3 528 |
|
11 184 |
|
|
|
|
|
Total financial assets at fair value |
|
53 135 |
|
53 868 |
|
|
|
|
|
Liabilities |
|
|
|
|
Other financial liabilities |
|
27 |
|
91 |
Financial liabilities at fair value through profit and loss |
|
27 |
|
91 |
|
|
|
|
|
Total financial liabilities at fair value |
|
27 |
|
91 |
The fair value of other financial instruments measured at amortised cost does not differ significantly from their book value.
3.1.2 Valuation methods of financial instruments
CHF 1 000 |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
31.12.2021 Assets |
|
|
|
|
|
|
|
|
Financial investments |
|
|
|
|
|
|
|
|
Investments in own products |
|
126 |
|
24 188 |
|
7 465 |
|
31 779 |
Investments in own products to fulfill long-term incentive plans |
|
20 287 |
|
– |
|
– |
|
20 287 |
Derivative financial instruments |
|
– |
|
32 |
|
– |
|
32 |
Other investments in equity instruments |
|
635 |
|
– |
|
402 |
|
1 037 |
Financial assets at fair value |
|
21 048 |
|
24 220 |
|
7 867 |
|
53 135 |
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Other financial liabilities |
|
– |
|
– |
|
27 |
|
27 |
Financial liabilities at fair value |
|
– |
|
– |
|
27 |
|
27 |
CHF 1 000 |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
31.12.2020 Assets |
|
|
|
|
|
|
|
|
Financial investments |
|
|
|
|
|
|
|
|
Investments in own products |
|
2 794 |
|
13 944 |
|
6 548 |
|
23 286 |
Investments in own products to fulfill long-term incentive plans |
|
19 081 |
|
– |
|
– |
|
19 081 |
Other investments in equity instruments |
|
541 |
|
159 |
|
10 801 |
|
11 501 |
Financial assets at fair value |
|
22 416 |
|
14 103 |
|
17 349 |
|
53 868 |
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Other financial liabilities |
|
– |
|
11 |
|
80 |
|
91 |
Financial liabilities at fair value |
|
– |
|
11 |
|
80 |
|
91 |
No transfer between levels of the fair value hierarchy took place in 2021 or in the previous period.
Level 1 instruments
If a financial instrument is traded in an active market, its fair value is based on listed market prices. In the fair value hierarchy prescribed in IFRS 13, this type of financial instrument is classified as a level 1 instrument. The fair value of these positions corresponds to the current price (e.g. settlement price or closing price) multiplied by the number of units of the financial instruments held.
Level 2 instruments
If there is no active market, the fair value is determined on the basis of valuation models or other generally accepted valuation methods (primarily option pricing and discounted cash flow models). If all the significant inputs can be observed directly or indirectly in the market, the instrument is classified as a level 2 instrument. The valuation models take account of the relevant parameters such as contract specifications, the market price of the underlying asset, foreign exchange rates, yield curves, default risks and volatility.
Level 3 instruments
If at least one significant input cannot be observed directly or indirectly in the market, the instrument is classified as a level 3 instrument. These instruments include private-equity funds and unlisted equity instruments, as well as the contingent purchase price liability. The fair value of private equity funds is determined based on the last available net asset values, less necessary value adjustments according to own assessment. The fair value of unlisted equity instruments is determined primarily based on currently available financial information. Secondarily, depending on the equity security, different multiples based on currently available financial information are used to verify the valuation. If no multiples are applicable, the net asset value is used. The valuation of the contingent purchase price liability is mainly based on the underlying contractual share purchase terms and conditions.
3.1.3 Level 3 financial instruments
CHF 1 000 |
|
31.12.2021 |
|
31.12.2020 |
|
|
Financial investments |
|
Financial investments |
Holdings at the beginning of the year as 1.1. |
|
17 349 |
|
9 318 |
Investments |
|
1 964 |
|
8 274 |
Redemptions/Payments |
|
– 10 947 |
|
– |
Losses recognized in the income statement |
|
– 1 389 |
|
– 216 |
Losses recognized in other comprehensive income |
|
– |
|
– 104 |
Gains recognized in the income statement |
|
104 |
|
77 |
Gains recognized in other comprehensive income |
|
786 |
|
– |
Total book value at balance sheet date |
|
7 867 |
|
17 349 |
Unrealised profit/losses from level 3 instruments which were held on the balance sheet date recorded in the income statement in the period |
|
– 1 285 |
|
– 139 |
Key assumptions for the valuation of level 3 financial instruments vary from investment to investment. The following table shows the effect on the valuation when these assumptions are changed:
Sensitivity analysis |
|
Fair value |
|
Key assumption |
|
Changes in key assumption |
|
Change in fair value in CHF 1 000 |
Private Equity funds |
|
7 867 |
|
Net asset value |
|
+ 5 percentage points |
|
393 |
|
|
|
|
|
|
– 5 percentage points |
|
– 393 |
|
|
31.12.2021 |
|
31.12.2020 |
CHF 1 000 |
|
Other financial liabilities |
|
Other financial liabilities |
Holdings at the beginning of the year |
|
80 |
|
– |
Investments |
|
– |
|
80 |
Payments |
|
– 45 |
|
– |
Gains recognized in the income statement |
|
– 8 |
|
– |
Total book value at balance sheet date |
|
27 |
|
80 |
Unrealised profit/losses from level 3 instruments which were held on the balance sheet date and recorded in the income statement in the period |
|
– |
|
– |
The remaining balance of the contingent purchase price payment from the acquisition of REALWERK AG in 2020 of CHF 0.1 million is included in the balance sheet item «Other financial liabilities» and represents the remaining purchase price liability owed. The valuation is mainly based on the underlying share purchase agreement provisions.
3.1.4 Derivative financial instruments
CHF 1 000 |
|
Positive replacement value |
|
Negative replacement value |
|
Contract volume |
31.12.2021 |
|
|
|
|
|
|
Forward contracts (OTC) 2) |
|
32 |
|
– |
|
5 519 |
Futures 1) |
|
– |
|
– |
|
3 910 |
Total |
|
32 |
|
– |
|
9 429 |
|
|
|
|
|
|
|
31.12.2020 |
|
|
|
|
|
|
Forward contracts (OTC) 2) |
|
– |
|
11 |
|
2 950 |
Futures 1) |
|
– |
|
– |
|
3 851 |
Total |
|
– |
|
11 |
|
6 801 |
1) Level 1: listed on an active market
2) Level 2: valuated on the basis of models with observable input factors
Derivatives are used exclusively for economic hedging purposes and not as speculative investments. However, if derivatives do not meet the criteria for hedge accounting, they are classified as «Financial investments» and recognized at fair value through profit or loss for financial reporting purposes.
3.2 Trade and other receivables
CHF 1 000 |
|
31.12.2021 |
|
31.12.2019 |
Trade receivables |
|
13 445 |
|
15 801 |
Prepayments |
|
475 |
|
561 |
Other receivables |
|
4 301 |
|
1 714 |
Total |
|
18 221 |
|
18 076 |
3.3 Financial investments
CHF 1 000 |
|
31.12.2021 |
|
31.12.2020 |
Investments in own products |
|
31 779 |
|
23 286 |
Investments in own products to fulfill long-term incentive plans |
|
20 287 |
|
19 081 |
Derivative financial instruments |
|
32 |
|
– |
Other investments in equity instruments |
|
1 037 |
|
11 501 |
Total |
|
53 135 |
|
53 868 |
|
|
|
|
|
Current |
|
45 269 |
|
46 713 |
Non-current |
|
7 866 |
|
7 155 |
Total |
|
53 135 |
|
53 868 |
3.4 Other assets
CHF 1 000 |
|
31.12.2021 |
|
31.12.2020 |
Assets related to other employee benefits |
|
16 703 |
|
15 815 |
Assets from pension plans |
|
913 |
|
5 034 |
Other |
|
1 412 |
|
1 443 |
Total |
|
19 028 |
|
22 292 |
|
|
|
|
|
Current |
|
9 462 |
|
8 363 |
Non-current |
|
9 566 |
|
13 929 |
Total |
|
19 028 |
|
22 292 |
3.5 Property and equipment
CHF 1 000 |
|
IT equipment |
|
Right of use |
|
Other fixed assets |
|
Total |
Acquisition cost |
|
|
|
|
|
|
|
|
Balance as of 1.1.2020 |
|
2 267 |
|
9 221 |
|
1 868 |
|
13 356 |
Additions |
|
198 |
|
50 |
|
231 |
|
479 |
Disposals |
|
– 33 |
|
– 790 |
|
– 104 |
|
– 927 |
Balance as of 31.12.2020 |
|
2 432 |
|
8 481 |
|
1 995 |
|
12 908 |
Additions |
|
– |
|
76 |
|
118 |
|
194 |
Disposals |
|
– 109 |
|
– 61 |
|
– 15 |
|
– 185 |
Balance as of 31.12.2021 |
|
2 323 |
|
8 496 |
|
2 098 |
|
12 917 |
|
|
|
|
|
|
|
|
|
Accumulated depreciation |
|
|
|
|
|
|
|
|
Balance as of 1.1.2020 |
|
– 1 543 |
|
– 2 053 |
|
– 1 506 |
|
– 5 102 |
Additions |
|
– 383 |
|
– 2 196 |
|
– 284 |
|
– 2 863 |
Disposals |
|
33 |
|
– |
|
83 |
|
116 |
Foreign currency impact |
|
– |
|
– 27 |
|
– |
|
– 27 |
Balance as of 31.12.2020 |
|
– 1 893 |
|
– 4 276 |
|
– 1 707 |
|
– 7 876 |
Additions |
|
– 289 |
|
– 1 705 |
|
– 137 |
|
– 2 131 |
Disposals |
|
109 |
|
– |
|
15 |
|
124 |
Foreign currency impact |
|
– |
|
– 1 |
|
– |
|
– 1 |
Balance as of 31.12.2021 |
|
– 2 073 |
|
– 5 982 |
|
– 1 829 |
|
– 9 884 |
|
|
|
|
|
|
|
|
|
Net carrying values |
|
|
|
|
|
|
|
|
Balance as of 1.1.2020 |
|
724 |
|
7 168 |
|
362 |
|
8 254 |
Balance as of 31.12.2020 |
|
539 |
|
4 205 |
|
288 |
|
5 032 |
Balance as of 31.12.2021 |
|
250 |
|
2 514 |
|
269 |
|
3 033 |
3.6 Goodwill and other intangible assets
CHF 1 000 |
|
31.12.2021 |
|
31.12.2020 |
Goodwill |
|
41 545 |
|
44 047 |
Other intangible assets |
|
5 953 |
|
8 531 |
Total |
|
47 498 |
|
52 578 |
CHF 1 000 |
|
Total |
Goodwill Acquisition cost |
|
|
Balance as of 1.1.2020 |
|
109 977 |
Foreign currency effect |
|
– 189 |
Balance as of 31.12.2020 |
|
109 788 |
Foreign currency effect |
|
– 476 |
Balance as of 31.12.2021 |
|
109 312 |
|
|
|
Accumulated valuation adjustments |
|
|
Balance as of 1.1.2020 |
|
– 58 307 |
Additions |
|
– 7 434 |
Balance as of 31.12.2020 |
|
– 65 741 |
Additions |
|
– 2 026 |
Balance as of 31.12.2021 |
|
– 67 767 |
|
|
|
Net carrying values |
|
|
Balance as of 1.1.2020 |
|
51 670 |
Balance as of 31.12.2020 |
|
44 047 |
Balance as of 31.12.2021 |
|
41 545 |
The additions to goodwill in the financial year 2019 stem from the acquisition of the 100% investment in adbodmer AG.
Bellevue Group basically examines the value of the goodwill annually, based on the estimated recoverable amount that can be obtained per each single cash-generating unit, or group of such units (depending on allocation). If events or a change of circumstances indicate a possible impairment, the test is carried out more frequently.
The recoverable amount is determined to be the value-in-use and is calculated using the discounted cash flow method. The projected free cash flows for the respective cash-generating units are estimated based on five-year financial plans. The business plans approved by management serve as the basis for these estimates of projected free cash flows. These cash flows are discounted to present value.
The following key parameters and their single components have been taken into account in the discounted cash flow method:
- Income on the average assets under management and the expected return on assets (management and performance fees);
- Transaction-related income;
- Discount rate.
An impairment test was carried out for all CGUs at the end of December 2021. The discount rate used in these calculations was 10.0% (31.12.2020: 10.6%) and the assumed growth rate was between 1% and 2% (31.12.2020: between 1% and 2%).
Based on a projected reduction in the asset under management for the second half of 2021 of CGU StarCapital AG an impairment test was carried out at the end of June 2021. The expected cash flow surpluses compared to the business plan have led to an adjustment of the estimate for the future earnings achievable by StarCapital AG. As a result, the goodwill for StarCapital AG had to be impaired by CHF 2.0 million as of June 30, 2021. This amount corresponds to the amount by which the carrying amount exceeds the recoverable amount. Assuming that the used growth rates of expected cash inflows (which depend primarily on the return on average assets under management and expected investment returns) would be assumed to be 20% lower or the used discount rate 10% higher, this could lead to an additional goodwill impairment of CHF 1.2 million or CHF 1.5 million, respectively. The goodwill allocated to the cash-generating unit StarCapital AG amounts to CHF 11.9 million as of December 31, 2021. The remaining goodwill is attributable to the cash-generating units Bellevue Asset Management AG (CHF 23.8 million) and adbodmer AG (CHF 5.8 million).
At the time of preparation of the consolidated financial statement, Bellevue Group’s management does not assume that a reasonably possible change in a parameter underlying the impairment test would lead to an additional goodwill impairment.
CHF 1 000 |
|
Client base |
|
Brand |
|
Other |
|
Total |
Other intangible assets Acquisition cost |
|
|
|
|
|
|
|
|
Balance as of 1.1.2020 |
|
49 271 |
|
375 |
|
– |
|
49 646 |
Additions |
|
– |
|
– |
|
372 |
|
372 |
thereof changes in the scope of consolidation |
|
– |
|
– |
|
230 |
|
230 |
Foreign currency effect |
|
– 71 |
|
– 1 |
|
– |
|
– 72 |
Balance as of 31.12.2020 |
|
49 200 |
|
374 |
|
372 |
|
49 946 |
Foreign currency effect |
|
– 96 |
|
– |
|
– |
|
– 96 |
Balance as of 31.12.2021 |
|
49 104 |
|
374 |
|
372 |
|
49 850 |
|
|
|
|
|
|
|
|
|
Accumulated valuation adjustments |
|
|
|
|
|
|
|
|
Balance as of 1.1.2020 |
|
– 37 055 |
|
– 302 |
|
– |
|
– 37 357 |
Additions |
|
– 1 799 |
|
– 49 |
|
– 66 |
|
– 1 914 |
Impairment |
|
– 2 144 |
|
– |
|
– |
|
– 2 144 |
Balance as of 31.12.2020 |
|
– 40 998 |
|
– 351 |
|
– 66 |
|
– 41 415 |
Additions |
|
– 1 504 |
|
– 23 |
|
– 93 |
|
– 1 620 |
Impairment |
|
– 862 |
|
– |
|
– |
|
– 862 |
Balance as of 31.12.2021 |
|
– 43 364 |
|
– 374 |
|
– 159 |
|
– 43 897 |
|
|
|
|
|
|
|
|
|
Net carrying values |
|
|
|
|
|
|
|
|
Balance as of 1.1.2020 |
|
12 216 |
|
73 |
|
– |
|
12 289 |
Balance as of 31.12.2020 |
|
8 202 |
|
23 |
|
306 |
|
8 531 |
Balance as of 31.12.2021 |
|
5 740 |
|
– |
|
213 |
|
5 953 |
The other intangible assets are amortized over a period of 5 to 15 years and are included in the impairment test described under «Goodwill» (see above).
As of December 31, 2021, no impairment was recognized in the review of the residual values (as of June 30, 2021, the review of the residual values of the StarCapital AG client base resulted in an impairment of CHF 0.9 million). The discount rate used for this purpose was currently between 10.0% and 11.5% (December 31, 2020: between 10.7% and 12.1%) and the applied growth rate between 1% and 2% (December 31, 2020: between 1% and 2%).
3.7 Trade and other payables
CHF 1 000 |
|
31.12.2021 |
|
31.12.2020 |
Trade payables |
|
659 |
|
799 |
Accrued expenses |
|
64 204 |
|
53 098 |
Other payables |
|
1 423 |
|
1 572 |
Total |
|
66 286 |
|
55 469 |
|
|
|
|
|
Current |
|
50 677 |
|
39 241 |
Non-current |
|
15 609 |
|
16 228 |
Total |
|
66 286 |
|
55 469 |
3.8 Employee benefit plans
There are pension plans for most of the employees at Bellevue Group. These plans provide benefits in the event of death, disability, retirement or termination of employment. There were no unfunded liabilities due to employee pension plans as at the balance sheet date (previous year: no liabilities either). In Switzerland, pension contributions are paid equally by the employer and the employee. The foundation board is composed of an equal number of employee and employer representatives. According to Swiss law and the pension regulations, foundation boards are obliged to act solely in the interest of the foundation and its beneficiaries (active workforce and recipients of pensions). Hence, the employer cannot single-handedly determine the benefits and the funding; all resolutions have to be agreed on by both sides. The members of the foundation board are responsible for defining the investment strategy, for deciding on amendments to the pension regulations, and in particular for determining the funding of the pension benefits.
In the events of death and disability, pension benefits are based on the insured salary. In the event of old age, they are based on pension assets. At the time of retirement, insured persons can choose between a life annuity, which includes a prospective spouse pension, and a lump sum payment. Apart from retirement benefits, pension benefits also include disability and surviving spouse or partner pensions. Furthermore, insured persons can improve their pension situation up to the regulatory maximum by paying in additional amounts, or withdraw money early to acquire property that they occupy themselves. At the time of termination of an employment contract, the vested benefits will be transferred to the pension plan of the new employer or a vested benefits scheme. This type of benefit can result in pension payments fluctuating considerably from year to year.
When determining the benefits, the minimum requirements of the Federal Act on Occupational Old Age, Survivors’ and Invalidity Pension Provision (OPA) and its implementing provisions must be considered. The LOB defines minimum insured salary and minimum retirement assets. The Federal Council determines the minimum interest on these minimum retirement assets at least every two years. In 2021, it amounts to 1% (previous year: 1%).
Due to the nature of the pension plans and the provisions of the OPA, the employer is exposed to actuarial risks. The risks of death, disability and longevity are largely covered by an insurance policy. The major remaining risks include investment risk, interest risk and the risk of the insurer adjusting the premiums.
All employer and employee contributions are determined by the foundation board. The employer is to bear a minimum of 50% of the required contributions. In the case of underfunding, both employer and employee are entitled to pay in amounts to close the funding gap.
CHF 1 000 |
|
31.12.2021 |
|
31.12.2020 |
Consolidated balance sheet |
|
|
|
|
Fair value of plan assets |
|
46 846 |
|
46 875 |
Present value of pension obligations |
|
– 38 747 |
|
– 41 622 |
Assets not available to Company |
|
– 7 186 |
|
– 219 |
Asset/Provision for pension obligation |
|
913 |
|
5 034 |
CHF 1 000 |
|
1.1.–31.12.2021 |
|
1.1.–31.12.2020 |
Pension cost recognised in the income statement |
|
|
|
|
Service cost |
|
|
|
|
Current service cost |
|
– 1 897 |
|
– 1 911 |
Past service cost (plan amendments) 1) |
|
– |
|
4 681 |
Net interest expenses/income |
|
12 |
|
4 |
Administrative expenses |
|
– 72 |
|
– 66 |
Total pension cost for the period |
|
– 1 957 |
|
2 708 |
thereof from continuing operations |
|
– 1 957 |
|
2 893 |
thereof from discontinued operations |
|
– |
|
– 185 |
1) The plan amendment in 2020 is mainly due to the persistently low-interest rate environment as a result of the fact that the conversion rate of the saved retirement capital was reduced by the pension fund.
CHF 1 000 |
|
1.1.–31.12.2021 |
|
1.1.–31.12.2020 |
Revaluation components recorded in other comprehensive income |
|
|
|
|
Actuarial gains/losses |
|
|
|
|
Arising from changes in demographical assumptions |
|
1 093 |
|
– |
Arising from changes in economic assumptions |
|
576 |
|
– 2 607 |
Arising from experience |
|
– 959 |
|
– 847 |
Return on plan assets (excluding amounts included in net interest expenses) |
|
2 380 |
|
3 217 |
Changes in asset ceiling |
|
– 6 967 |
|
– 219 |
Total of amounts recognised in other comprehensive income |
|
– 3 877 |
|
– 456 |
CHF 1 000 |
|
2021 |
|
2020 |
Development of pension obligations |
|
|
|
|
At January 1 |
|
– 41 622 |
|
– 53 425 |
Current service cost |
|
– 1 897 |
|
– 1 911 |
Employee contributions |
|
– 358 |
|
– 265 |
Interest expenses on the present value of the obligations |
|
– 79 |
|
– 131 |
Pension payments and vested benefits |
|
6 142 |
|
4 240 |
Additions from admissions and voluntary contributions |
|
– 1 643 |
|
– 3 321 |
Plan amendments |
|
– |
|
4 681 |
Pension obligations sold as part of acquisitions |
|
– |
|
11 964 |
Actuarial gains/losses |
|
710 |
|
– 3 454 |
At December 31 |
|
– 38 747 |
|
– 41 622 |
|
|
|
|
|
Development of plan assets |
|
|
|
|
At 1 January |
|
46 875 |
|
53 352 |
Interest income |
|
91 |
|
135 |
Plan participants' contribution |
|
358 |
|
265 |
Company contributions |
|
1 713 |
|
1 930 |
Pension payments and vested benefits |
|
– 6 142 |
|
– 4 240 |
Additions from admissions and voluntary contributions |
|
1 643 |
|
3 321 |
Return on plan assets (excluding amounts in net interest) |
|
2 380 |
|
3 217 |
Pension obligations sold as part of acquisitions |
|
– |
|
– 11 039 |
Administration expense |
|
– 72 |
|
– 66 |
At December 31 |
|
46 846 |
|
46 875 |
|
|
|
|
|
Actual return on plan assets |
|
2 471 |
|
3 352 |
CHF 1 000 |
|
31.12.2021 |
|
31.12.2020 |
Allocation of plan assets |
|
|
|
|
Equities |
|
|
|
|
Listed investments |
|
19 139 |
|
18 263 |
Bonds |
|
|
|
|
Listed investments |
|
3 793 |
|
5 005 |
Real estate |
|
|
|
|
Investments in funds |
|
3 484 |
|
2 722 |
Alternative investments |
|
4 717 |
|
4 082 |
Qualified insurance policies |
|
2 750 |
|
2 976 |
Liquidity |
|
12 963 |
|
13 827 |
Total |
|
46 846 |
|
46 875 |
The plan assets allocation as at December 31, 2021, as well as at December 31, 2020, do not include shares of Bellevue Group AG. The foundation board issues investment guidelines for the investment of plan assets. These guidelines include tactical asset allocation and benchmarks for comparing the results with a general investment universe. The plan assets are well diversified. In terms of diversification and security, the Swiss pension plan is subject to the provisions of the OPA. As a rule, bonds receive at least a rating of A.
The foundation board regularly reviews the selected investment strategy as to whether it meets the requirements of the pension plan and whether the risk budget is in line with the demographic structure. Adherence to investment guidelines as well as results achieved by investment advisors are reviewed on a quarterly basis. Furthermore, an external consultancy periodically examines the investment strategy with regard to whether it is effective and appropriate.
Defined-benefit obligations are distributed as follows:
CHF 1 000 |
|
31.12.2021 |
|
31.12.2020 |
Active workforce |
|
35 997 |
|
38 646 |
Pensioners |
|
2 750 |
|
2 976 |
Total |
|
38 747 |
|
41 622 |
The maturity of the obligation is 17.6 years as at December 31, 2021 (previous year: 19.4 years). The expected employer’s contributions for 2022 are estimated at CHF 1.7 million.
|
|
31.12.2021 |
|
31.12.2020 |
Actuarial assumptions |
|
|
|
|
Biometric assumptions |
|
BVG 2020GT |
|
BVG 2015GT |
Life expectancy at the age of 65 |
|
|
|
|
Year of birth |
|
1 956 |
|
1 955 |
Men |
|
22.57 |
|
22.72 |
Women |
|
24.37 |
|
24.76 |
Year of birth |
|
1 976 |
|
1 975 |
Men |
|
24.86 |
|
24.48 |
Women |
|
26.40 |
|
26.51 |
Discount rate |
|
0.31% |
|
0.20% |
Expected rate of salary increases |
|
1.25% |
|
1.00% |
Expected rate of pension increases |
|
0.00% |
|
0.00% |
Interest on pension assets |
|
1.00% |
|
1.00% |
Changes to the present value of a defined-benefit obligation
CHF 1 000 |
|
31.12.2021 |
|
31.12.2020 |
|
|
+ 0.25% |
|
+ 0.25% |
Assumed interest rate |
|
– 1 129 |
|
– 1 592 |
Salary development |
|
205 |
|
263 |
Interest on pension assets |
|
547 |
|
687 |
|
|
|
|
|
|
|
+ 1 year |
|
+ 1 year |
Development of life expectancy |
|
445 |
|
583 |
The most important factors influencing the development of pension obligations are assumed interest rate, salary development, pension index and development of life expectancy.
3.9 Share capital/Conditional capital/Authorized capital
|
|
Number of shares |
|
Par value CHF 1 000 |
Share Capital (registered shares) |
|
|
|
|
Balance as of 1.1.2020 |
|
13 461 428 |
|
1 346 |
Balance as of 31.12.2020 |
|
13 461 428 |
|
1 346 |
Balance as of 31.12.2021 |
|
13 461 428 |
|
1 346 |
|
|
|
|
|
Conditional capital |
|
|
|
|
Balance as of 1.1.2020 |
|
1 000 000 |
|
100 |
Balance as of 31.12.2020 |
|
1 000 000 |
|
100 |
Balance as of 31.12.2021 |
|
1 000 000 |
|
100 |
The purpose of the conditional capital (in total) according to Art. 3a of the Articles of Association is as follows:
- a sum of up to CHF 50 000 through the exercise of option rights granted to shareholders;
- a sum of up to CHF 50 000 through the exercise of option rights granted to employees and the member of the Board of Directors.
The subscription rights of shareholders are excluded. After acquisition, the new registered shares are subject to the transfer restrictions pursuant to Art. 5 of the Articles of Association.
The conditional capital amounts to a maximum of CHF 100 000 as of the balance sheet date, which represents approximately 7.4% of the existing share capital.
No such optional rights had been granted as of the balance sheet date.
|
|
Number of shares |
|
Par value CHF 1 000 |
Authorized capital |
|
|
|
|
Balance as of 1.1.2020 |
|
2 500 000 |
|
250 |
Balance as of 31.12.2020 |
|
– |
|
– |
Balance as of 31.12.2021 |
|
– |
|
– |
At the Annual General Meeting on March 24, 2020, the Board of Directors did not propose any renewal of the authorized capital increase provided for in Art. 3b of the Articles of Association (version of March 20, 2018). The corresponding provision of the Articles of Association was deleted without replacement by means of an amendment to the Articles of Association on May 7, 2020.
3.10 Treasury shares
|
|
Number |
|
CHF 1 000 |
Balance as of 1.1.2020 |
|
70 000 |
|
1 654 |
Purchases |
|
762 206 |
|
16 980 |
Disposals |
|
– 746 064 |
|
– 16 441 |
Balance as of 31.12.2020 |
|
86 142 |
|
2 193 |
Purchases |
|
339 213 |
|
13 948 |
Disposals |
|
– 269 724 |
|
– 10 062 |
Balance as of 31.12.2021 |
|
155 631 |
|
6 079 |
4 Significant estimates, assumptions and judgments
4.1 Estimates, assumptions and the exercising of discretion by management
In applying the accounting principles, management must make estimates, assumptions and discretionary decisions that influence the level of reported assets and liabilities, expense and income, as well as the disclosure of contingent assets and liabilities. Bellevue Group is convinced that in all material respects these consolidated financial statements provide a true and fair view of its financial position, its results of operations and its cash flows. Management reviews its estimates and assumptions on an ongoing basis and adjusts them according to new findings and conditions. This may, among other things, have a material impact on the following positions of the consolidated financial statements.
Income taxes
Bellevue Group AG and its subsidiaries are liable for income tax in most related countries. The current tax assets and current tax liabilities reported as at the balance sheet date as well as the resulting current tax expense for the period under review are based on estimates and assumptions and may therefore differ from the amounts determined in the future by the tax authorities.
Provisions
A provision is recorded if, as the result of a past event, Bellevue Group has a current liability as at the balance sheet date that will probably lead to an outflow of funds and if the amount of the liability can be reliably estimated. When determining whether a provision should be recorded and whether the amount is appropriate, best possible estimates and assumptions as at the balance sheet date are applied. These estimates and assumptions may be subject to change according to new findings and conditions.
Level 3 financial instruments (fair value)
Level 3 financial instruments are valued based on the inputs that are not based on observable market data. For details to the valuation methods applied for level 3 financial instruments refer to the notes to the consolidated financial statements on note 3.1.2 «Fair value financial instruments».
For details to the effect of significant changes on the assumptions behind the classification method for level 3 financial instruments refer the notes to the consolidated financial statements on note 3.1.3 «Level 3 financial instruments».
Pension plan
Management sets the actuarial assumptions and determines whether a pension plan surplus can be capitalized as an economic benefit for Bellevue Group. Pension costs are also subject to estimates and assumptions. The management believes that the assumptions and estimates which have been made are appropriate.
Review of goodwill and other intangible assets for impairment
Bellevue Group basically examines the value of the goodwill annually, based on the estimated recoverable amount that can be obtained per each single cash-generating unit, or group of such units (depending on allocation).
Established that an event or any circumstances cause a reduction in value of the goodwill, examinations will be performed more frequently.
The Group’s approach to determine the key assumptions and related growth expectations is based on management’s knowledge and reasonable expectations of future business, using internal and external market information, planned business initiatives and other reasonable intentions of management. For that purpose, the Group uses historical information by taking into consideration the current and expected market situations.
Changes in key assumptions: deviations of future actual results achieved vs. forecasted/planned key assumptions, as well as future changes of any of the key assumptions based on a future different assessment of the development of relevant markets, and/or the businesses, may occur. Such deviations may result from changes in the market environment and the related profitability, required types and intensity of personnel resources, general and company specific driven personnel cost development and/or changes in the implementation of known or addition of new business initiatives and/or other internal and/or external factors. These changes may cause the value of the business to alter and therefore either increase or reduce the difference between the carrying value in the balance sheet and the unit’s recoverable amount or may even lead to a partial impairment of goodwill.
5 Risk management and risk control
5.1 Risk evaluation and risk policy
Risk management is based on the evaluation of risks by the Board of Directors and is ensuing risk policy, which is reviewed periodically. Independent risk control bodies monitor the risks at the individual operating unit level and at Group level. The Group Executive Board is informed on a regular basis about the assets, financial positions, liquidity and earnings of the Group and all related risks by means of financial and risk reporting procedures commensurate with each particular level of management. Risk reports are prepared at the individual operating unit level as well as at the Group level.
5.2 Market risk
Market risks arise through fluctuations in market pricing of interest rates, exchange rates and equities as well as the corresponding volatilities. Market risk management entails the identification, measurement, control and regulation of market risk exposure. This exposure primarily pertains to the financial investments.
Market risks are monitored by an independent function on a daily basis. Risk reports are prepared at the individual operating unit level as well as at Group level. Market risks are minimized through constant monitoring of risk.
Price change risks
The Group’s exposure to foreign exchange risk arises from financial assets held by the Group, which are either recognized at fair value through profit or loss or directly in equity. To manage the price risk, the Group diversifies the portfolio and partially hedges it with index futures or listed index options. Financial assets are mainly investments in own products (equities, investment funds and private equity funds) and other financial assets (equities, private equity funds and various). Investments in own products for the fulfillment of long-term incentive plans are held to secure liabilities from entitlements of such plans and are therefore considered as economic hedges. All positions in financial assets are valued at fair value. Wherever possible, stock market prices are automatically imported into our systems and used for valuation purposes. The positions are monitored on a daily basis. Any change in price is fully reflected in profit or loss or comprehensive income.
A change in fair value of 10% in relation to the year-end value (net after hedging) would result in a change in equity of CHF 5.3 million (previous year: CHF 5.4 million) for the financial assets measured at fair value, of which CHF 5.0 million (previous year: CHF 4.3 million) would be recognized in profit or loss.
Interest risk
The Group’s exposure to interest rate risk is marginal. On the one hand, the Group’s cash and cash equivalents available on demand bear interest at market rates and, on the other hand, the influence of debt interest is low due to the high equity ratio. If borrowings are necessary, these are short-term fixed loans that bear interest at market rates.
Currency risk
The Group’s exposure to interest rate risk is marginal. On the one hand, the Group’s cash and cash equivalents available on demand bear interest at market rates and, on the other hand, the influence of debt interest is low due to the high equity ratio. If borrowings are necessary, these are short-term fixed loans that bear interest at market rates.
CHF 1 000 |
|
CHF |
|
EUR |
|
USD |
|
Other |
Net position on 31.12.2021 |
|
|
|
21 078 |
|
13 231 |
|
382 |
10% change in fair value |
|
+/– 3469 |
|
|
|
|
|
|
Net position on 31.12.2020 |
|
|
|
36 991 |
|
11 152 |
|
1 643 |
10% change in fair value |
|
+/– 4979 |
|
|
|
|
|
|
5.3 Default risk
The Group is exposed to default risk, which is the risk that a counterparty is unable to pay the amount due in full when due. The Group measures default risk and expected default losses based on the probability of default, exposure at default and loss given default. In determining expected default losses, the Group considers both historical analysis and forward-looking information. The Group manages and controls its default risk by maintaining business relationships only with counterparties with an acceptable credit rating.
The following table shows the maximum credit risk exposure of Bellevue Group at the balance sheet date:
CHF 1 000 |
|
31.12.2021 |
|
31.12.2020 |
Cash and cash equivalents |
|
84 363 |
|
82 547 |
Trade and other receivables |
|
18 221 |
|
18 076 |
Other assets |
|
1 412 |
|
1 443 |
Total |
|
103 996 |
|
102 066 |
As of December 31, 2021, there are no financial assets that are impaired (December 31, 2020: none) and there are no indications of material adverse effects on the credit quality of financial assets. In 2021, no impairments were identified on financial assets exposed to credit risk.
The following table provides an analysis of the maturity of financial assets with credit risk:
CHF 1 000 |
|
Due within 3 months |
|
Due within 3 to 12 months |
|
Due between 1 and 5 years |
|
Total |
31.12.2021 |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
84 363 |
|
– |
|
– |
|
84 363 |
Trade and other receivables |
|
14 173 |
|
4 048 |
|
– |
|
18 221 |
Other assets |
|
38 |
|
– |
|
1 374 |
|
1 412 |
Total |
|
98 574 |
|
4 048 |
|
1 374 |
|
103 996 |
|
|
|
|
|
|
|
|
|
31.12.2020 |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
82 547 |
|
– |
|
– |
|
82 547 |
Trade and other receivables |
|
16 771 |
|
1 305 |
|
– |
|
18 076 |
Other assets |
|
7 |
|
57 |
|
1 379 |
|
1 443 |
Total |
|
99 325 |
|
1 362 |
|
1 379 |
|
102 066 |
As of December 31, 2021 and 2020, the ECL impairment model had no material impact as (i) the majority of financial assets are measured at fair value through profit or loss and the impairment requirements do not apply to such instruments; and (ii) the financial assets «at amortized cost» are mainly current. Consequently, no impairment loss has been recognized based on expected credit losses.
5.4 Liquidity risk
The CFO of Bellevue Group is responsible for managing liquidity and financing risks. Financing risks refer to the risk of Bellevue Group or one of its operating units being unable to refinance its current or anticipated obligations on an ongoing basis at acceptable conditions. Liquidity risks refer to the risk of Bellevue Group or one of its operating units being unable to fulfill its payment obligations when due. Whereas financing risks relate to the ability to finance business operations at all times, liquidity risks primarily concern the ability to ensure sufficient liquidity an any point in time.
Bellevue Group manages its liquidity and financing risks on an integrated basis at the consolidated level. Day-to-day liquidity management is performed at the level of the individual Group companies by functions responsible for this. Financing capacities are managed through appropriate diversification of funding sources and the provision of collateral, thereby reducing liquidity risks.
Risk management ensure that Bellevue Group always has sufficient liquidity to be able to fulfill its payment obligations, even in stress scenarios. The liquidity risk management system therefore comprises functional risk measurement and control systems to ensure its continuous ability to pay its obligations at any time. It also defines strategies and requirements for the management of liquidity risk under stress conditions as part of the defined liquidity risk tolerance. They mainly include risk mitigation measures, the holding of a liquidity buffer comprising highly liquid assets, and a contingency plan to manage any liquidity shortfalls. In the event of an unexpected tightening of liquidity, the Group can also access a portfolio of positions that retain their value and can easily be liquidated and has access to two existing credit lines at different banks.
The maturity structure of financial liabilities is as follows:
CHF 1 000 |
|
Due within 3 months |
|
Due within 3 to 12 months |
|
Due between 1 and 5 years |
|
Total |
31.12.2021 |
|
|
|
|
|
|
|
|
Trade and other payables |
|
37 266 |
|
13 411 |
|
15 609 |
|
66 286 |
Leasing liabilities 1) |
|
379 |
|
1 087 |
|
1 041 |
|
2 507 |
Other financial liabilities |
|
14 |
|
13 |
|
– |
|
27 |
Total |
|
37 659 |
|
14 511 |
|
16 650 |
|
68 820 |
1) According to IFRS 7 B11D, the undiscounted contractual cash flows relating to the gross lease liabilities must be disclosed. The corresponding undiscounted cash flows differ from the amount recognised in the balance sheet because the amount is based on discounted cash flows.
CHF 1 000 |
|
Due within 3 months |
|
Due within 3 to 12 months |
|
Due between 1 and 5 years |
|
Total |
31.12.2020 |
|
|
|
|
|
|
|
|
Trade and other payables |
|
28 341 |
|
10 900 |
|
16 228 |
|
55 469 |
Leasing liabilities 1) |
|
484 |
|
1 305 |
|
2 368 |
|
4 157 |
Other financial liabilities |
|
56 |
|
35 |
|
– |
|
91 |
Total |
|
28 881 |
|
12 240 |
|
18 596 |
|
59 717 |
1) According to IFRS 7 B11D, the undiscounted contractual cash flows relating to the gross lease liabilities must be disclosed. The corresponding undiscounted cash flows differ from the amount recognised in the balance sheet because the amount is based on discounted cash flows.
5.5 Operational risk
Operational risks represent the risk of losses resulting from the inadequacy or failure of internal processes, people and systems or from external events.
All business activities entail operational risks, which are prevented, mitigated, transferred or even assumed based on cost/benefit considerations. During this process, potential legal, regulatory and compliance-related risks are taken into account, as are follow-on risks in the form of reputational risks.
The Group-wide process model represents the basis for the management of operational risks. As part of the systematic assessments that are performed annually, the operational risks in all critical processes and process entities are identified and evaluated. In addition, further attention is focused on core security topics such as data protection and business continuity management, which are guaranteed through the use of extra tools.
All measures to control operational risks from part of the Internal Control Systems (ICS).
5.6 Legal and compliance risks
Legal and compliance risks refer to risks related to legal and regulatory issues, primarily liability and default risks. These risks are minimized when processing orders by requiring standardized master agreements and individual agreements. Risk related to the acceptance of client assets and adherence to due diligence obligations are monitored at the respective operating unit level. When appropriate, external attorneys will be consulted to limit legal risks.
6 Business combination
On January 7, 2020, Bellevue Private Markets AG, a 100% subsidiary of Bellevue Group AG, acquired 100% of the shares in REALWERK AG, based in Zug, Switzerland, for CHF 0.2 million thereof CHF 0.1 million in cash. The conditional purchase price payment amounts to CHF 0.1 million. The acquired company offers consulting and management services to qualified investors.
7 Discontinued operations
On August 20, 2019, Bellevue Group AG and KBL European Private Bankers (new: Quintet Private Bank) signed an agreement on the sale of Bank am Bellevue AG (new: Quintet Private Bank (Switzerland) AG) (including its subsidiary Bellevue Investment Advisers AG).
After receiving all the necessary regulatory approvals, Bellevue Group successfully closed the sale of Bank am Bellevue AG to Quintet Private Bank on April 30, 2020, and Bank am Bellevue’s workforce and its client relationships with underlying assets of CHF 1.7 billion have been transferred to Quintet Private Bank.
On January 28, 2020, the General Meeting of Shareholders of Bank am Bellevue AG unanimously resolved to distribute the available earnings of CHF 49.1 million and the reserves from tax-exempt capital contributions of CHF 1.3 million to the wholly owned parent company, Bellevue Group AG. The total distribution of CHF 50.4 million was made on January 29, 2020, and is allocated to continuing operations under the item «Cash and cash equivalents» in the consolidated balance sheet.
Further detailed disclosures on the discontinued operation are made below:
CHF 1 000 |
|
1.1.–31.12.2021 |
|
1.1.–31.12.2020 |
Income statement of discontinued operations |
|
|
|
|
Operating income |
|
– |
|
2 061 |
Personnel expenses |
|
– |
|
– 2 340 |
Other operating expenses |
|
– |
|
– 1 195 |
Profit before tax from discontinued operations |
|
– |
|
– 1 474 |
Taxes |
|
– |
|
5 |
Valuation adjustments and provisions 1) |
|
– |
|
751 |
Group net profit from discontinued operations |
|
– |
|
– 718 |
|
|
|
|
|
Statement of comprehensive income for discontinued operations |
|
|
|
|
Currency translation adjustments |
|
– |
|
– |
Gains and losses arising on revaluation of financial assets at fair value through other comprehensive income |
|
– |
|
– |
Remeasurements of post-employment benefit obligations |
|
– |
|
– 383 |
Other comprehensive income for discontinued operations |
|
– |
|
– 383 |
|
|
|
|
|
Statement of cash flows for discontinued operations |
|
|
|
|
Net cash flow from operating activities |
|
– |
|
117 391 |
Net cash flow from investing activities |
|
– |
|
– 176 252 |
Net cash flow from financing activities |
|
– |
|
899 |
Currency translation effects |
|
– |
|
– |
Net cash flow |
|
– |
|
– 57 962 |
|
|
|
|
|
Earnings per share (discontinued operations) |
|
|
|
|
Basic earnings per share (in CHF) |
|
– |
|
– 0.05 |
Diluted earnings per share (in CHF) |
|
– |
|
– 0.05 |
1) In connection with the completion of the sale of Bank am Bellevue in the first half of 2020, provisions of CHF 0.8 million no longer required were released to the income statement.
The aggregated carrying amounts of net assets disposed of and the aggregated cash outflows on disposal of subsidiaries in 2020 were as follows:
CHF 1 000 |
|
30.4.2020 |
Cash and cash equivalents (incl. due from banks) |
|
176 252 |
Due from clients |
|
116 531 |
Trading portfolio assets |
|
14 632 |
Positive replacement values |
|
209 |
Accrued income and prepaid expenses |
|
964 |
Current tax assets |
|
454 |
Deferred tax assets |
|
175 |
Other assets |
|
405 |
Due to clients |
|
– 270 066 |
Negative replacement values |
|
– 527 |
Accrued expenses and deferred income |
|
– 645 |
Current tax liabilities |
|
– 2 382 |
Provisions and pension obligations |
|
– 925 |
Other liabilities |
|
– 248 |
Net assets disposed of |
|
34 829 |
|
|
|
Selling price (cash and cash equivalents) |
|
27 981 |
Cash and cash equivalents disposed of |
|
– 176 252 |
Net cash flow from the sale of companies |
|
– 148 271 |
8 Major subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.12.2021 |
|
31.12.2020 |
||
|
|
|
|
|
|
|
|
|
|
Share of |
|
Share of |
||
Company name |
|
Domicile |
|
Purpose |
|
Currency |
|
Share capital/Nominal capital |
|
Capital |
Voting rights |
|
Capital |
Voting rights |
Fully consolidated companies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bellevue Group AG |
|
Küsnacht, Switzerland |
|
Holding |
|
CHF |
|
1 346 143 |
|
Parent company |
|
Parent company |
||
Bellevue Asset Management AG |
|
Küsnacht, Switzerland |
|
Asset Management |
|
CHF |
|
1 750 000 |
|
100% |
100% |
|
100% |
100% |
Bellevue Asset Management (Deutschland) GmbH |
|
Frankfurt am Main, Germany |
|
Asset Management |
|
EUR |
|
25 000 |
|
100% |
100% |
|
100% |
100% |
Bellevue Asset Management (UK) Limited |
|
London, UK |
|
Asset Management |
|
GBP |
|
50 000 |
|
100% |
100% |
|
100% |
100% |
Asset Management BaB N.V. |
|
Curaçao |
|
Asset Management |
|
USD |
|
6 001 |
|
100% |
100% |
|
100% |
100% |
Bellevue Research Inc. |
|
New York, USA |
|
Research |
|
USD |
|
100 |
|
100% |
100% |
|
100% |
100% |
BB Biotech Ventures GP |
|
Guernsey |
|
Investment Advisor |
|
GBP |
|
10 000 |
|
100% |
100% |
|
100% |
100% |
BB Pureos Bioventures GP Limited |
|
Guernsey |
|
Investment Advisor |
|
GBP |
|
60 000 |
|
99% |
99% |
|
99% |
99% |
StarCapital AG |
|
Oberursel, Germany |
|
Asset Management |
|
EUR |
|
540 000 |
|
100% |
100% |
|
100% |
100% |
adbodmer AG |
|
Horgen, Switzerland |
|
Investment Advisor |
|
CHF |
|
100 000 |
|
100% |
100% |
|
100% |
100% |
Bellevue Private Markets AG |
|
Küsnacht, Switzerland |
|
Holding |
|
CHF |
|
1 000 000 |
|
100% |
100% |
|
100% |
100% |
Realwerk AG |
|
Horgen, Switzerland |
|
Investment Advisor |
|
CHF |
|
100 000 |
|
100% |
100% |
|
100% |
100% |
Bellevue Komplementär AG |
|
Küsnacht, Switzerland |
|
Asset Management |
|
CHF |
|
200 000 |
|
100% |
100% |
|
100% |
100% |
Minority shareholders’ equity ownership of BB Pureos Bioventures GP Limited is 1%. Due to the non-materiality of this ownership with respect to the overall Bellevue Group’s equity and comprehensive income, no separate disclosure of minority shareholders has been published on the Group’s financial statements.
9 Pledged assets, guarantees and contingent liabilities
CHF 1 000 |
|
31.12.2021 |
|
31.12.2020 |
Rent deposit accounts in connection with leasing contracts |
|
950 |
|
956 |
Contingent liabilities |
|
6 465 |
|
3 320 |
10 Events after the balance sheet date
No events have occurred since the balance sheet date that would have a material impact on the information provided in the year 2021 consolidated financial statements and would therefore need to be disclosed.
In January 2022, the Group Executive Board of Bellevue Group AG decided to merge the operating business units Bellevue Asset Management and StarCapital described under 1 Segment Disclosures under the management of Bellevue Asset Management. This is intended to create a uniform presence in the German market under the "Bellevue" brand.
The COVID-19 pandemic is having an impact on the global economy and, accordingly, the economic environment for certain industries has deteriorated significantly in fiscal year 2021 and 2020. The Group Executive Board has taken various precautionary measures to ensure the smooth and trouble-free maintenance of business operations. Together with the Board of Directors, the Group Executive Board continuously assesses the challenges and opportunities resulting from this crisis. At the time of preparing the annual financial statements, however, there are no direct consequences arising from the crisis that have an impact on Bellevue Group AG’s business policy.
11 Transactions with related companies and persons
11.1 Compensation paid to members of the Board of Directors and to members of the Group Executive Board
CHF 1 000 |
|
Fixed compensation paid in cash |
|
Short-term variable compensation paid in cash |
|
Short-term variable compensation paid in shares |
|
Long-term variable compensation paid in shares |
|
Total |
Total 1.1.–31.12.2021 |
|
|
|
|
|
|
|
|
|
|
Compensation to members of the Board of Directors |
|
616 |
|
– |
|
245 |
|
– |
|
861 |
Compensation to members of the Group Executive Board |
|
1 124 |
|
1 547 |
|
1 075 |
|
150 |
|
3 896 |
Total 1.1.–31.12.2020 |
|
|
|
|
|
|
|
|
|
|
Compensation to members of the Board of Directors |
|
652 |
|
– |
|
197 |
|
– |
|
849 |
Compensation to members of the Group Executive Board |
|
1 319 |
|
1 546 |
|
1 216 |
|
152 |
|
4 233 |
The amounts listed for fixed and variable compensation also include any employer contributions to statutory or regulatory social security schemes.
The short-term variable compensation in shares of the Board of Directors consists of the following items:
- TCHF 147 (2020: TCHF 147) in 4 years restricted shares
- TCHF 98 (2020: TCHF 50) in 3 years blocked and discounted shares from participation program (monetary benefit)
The short-term variable compensation in shares of the Group Executive Board consists of the following items:
- TCHF 318 (2020: TCHF 318) in 4 years restricted shares
- TCHF 592 (2020: TCHF 730) in 4 years restricted shares with one-year service period and right of redemption (taking into account the service/vesting period in accordance with IFRS 2)
- TCHF 165 (2020: TCHF 168) in 3 years blocked and discounted shares from participation program (monetary benefit)
Members of the Group Executive Board partially participate in an employee stock ownership plan in connection with the asset management mandate of BB Biotech AG. Within the scope of these plans, some of the members of the Group Executive Board are entitled to receive a maximum number of shares in BB Biotech AG. The actual number of shares awarded depends on various conditions. Awarded shares are subject to a three-year vesting period beginning on the date of grant. In addition, the actual number of shares distributed will depend on the achievement of certain performance targets over the subsequent three fiscal years in connection with the respective investment mandates. The cost of this employee program is recognized as long-term variable compensation.
In the financial years 2021 and 2020, no compensation was paid to related parties of members of the Board of Directors and Group Executive Board, nor to former members of the Board of Directors.
For the months of January and February 2020 (2019: March to December), CHF 50,000 (2019: CHF 250,000) was paid to Daniel Koller, the former CFO of the Company and a member of the Group Executive Group, as compensation for a one-year non-competition clause, in accordance with Art. 33 para. 4 of the Articles of Association. This compensation was agreed in a severance and release agreement. Daniel Koller left Bellevue Group as of February 28, 2019.
11.2 Transactions with related companies and persons
CHF 1 000 |
|
Key management personnel 1) |
|
Major shareholders 2) |
|
Other related companies and persons 3) |
|
Total |
2020 |
|
|
|
|
|
|
|
|
Interest income |
|
10 |
|
18 |
|
– |
|
28 |
Fee and commission income |
|
4 |
|
315 |
|
– |
|
319 |
Other operating expenses |
|
– |
|
– |
|
93 |
|
93 |
1) Key management personnel: Board of Directors and Group Executive Board (excluding major shareholders).
2) Major shareholders: see Corporate Governance, section Group structure and shareholders.
3) Other closely related companies and persons: This includes all other natural persons and legal entities that have close personal, economic, legal or de facto ties with members of the Board of Directors or the Group Executive Board.
Since the sale of the subsidiary Bank am Bellevue AG in the first half of 2020, there were neither receivables nor liabilities to related parties as at December 31, 2021 and 2020.
In 2021, there was no payment to a related company of one of the members of the Board of Directors for consultancy services (2020: CHF 0.1 million).
12 Share-based payments
12.1. Variable compensation (share of profit) with service conditions
According to the rules for the payment of variable compensation set by the Board of Directors, higher variable compensation (> TCHF 200) is partly paid in blocked shares with a 1-year (pro rata) service condition. The cost of this portion of the variable compensation is recognized over the service period from the grant date. In 2021, TCHF 1 623 (2020: TCHF 1 969) of share-based compensation costs were recognized in personnel expenses.
12.2. Voluntary employee stock ownership plan
In 2021, the Board of Directors approved a voluntary employee stock option program for a total of 200 000 shares (2020: 165 000 shares). Depending on the management level, the Board of Directors, Executive Board and employees were offered a certain number of Bellevue Group AG shares at a discounted purchase price of CHF 31.75 per share (2020: CHF 17.65 per share). This corresponded to a discount of almost 25% on the volume-weighted average price of the quarter prior to the grant date of the entitlements. The difference between the market value at the effective grant date and the purchase price corresponds to a monetary benefit of CHF 1.2 million (2020: CHF 1.1 Mio.), which was recognized in personnel expenses. 133 241 rights (2020: 165 000 rights) were exercised (thereof 10 000 (2020: 8 010) by the Board of Directors and 16 755 (2020: 26 481) by the Group Executive Board).
13 Earnings per share
CHF 1 000 |
|
1.1.–31.12.2021 |
|
1.1.–31.12.2020 |
Group net profit |
|
43 063 |
|
22 304 |
thereof from continuing operations |
|
43 063 |
|
23 022 |
thereof from discontinued operations |
|
– |
|
– 718 |
Weighted average number of issued registered shares |
|
13 461 428 |
|
13 461 428 |
Less weighted average number of treasury shares |
|
– 157 909 |
|
– 95 797 |
Weighted average number of shares outstanding (undiluted) |
|
13 303 519 |
|
13 365 631 |
Weighted average number of shares outstanding (diluted) |
|
13 303 519 |
|
13 365 631 |
|
|
|
|
|
Undiluted/Diluted earnings per share from continuing operations (in CHF) |
|
3.24 |
|
1.72 |
Undiluted/Diluted earnings per share from discontinued operations (in CHF) |
|
0.00 |
|
– 0.05 |
Total undiluted/diluted earnings per share (in CHF) |
|
3.24 |
|
1.67 |
14 Dividend payment
The Board of Directors will propose a dividend distribution of CHF 2.70 per registered share to the Annual General Meeting of Bellevue Group AG on March 22, 2022. This corresponds to a total distribution of CHF 36.3 million.
15 Approval of the consolidated financial statements
The Audit & Risk Committee discussed and approved the consolidated financial statements at its meeting on February 21, 2022, and the Board of Directors at its meeting on February 22, 2022. The consolidated financial statement will be submitted to the Annual General Meeting on March 22, 2022, for approval.
16 Summary of significant accounting policies
16.1. Company and business activity
Bellevue Group AG is a public limited company listed on the SIX Swiss Exchange and has its registered office at Seestrasse 16, 8700 Küsnacht/Switzerland. The company acts as a pure asset manager with a multi-boutique approach and specializes in investment themes that require an active investment style.
16.2 Accounting principles
The consolidated financial statements of Bellevue Group AG have been prepared in accordance with International Financial Reporting Standards (IFRS) and comply with the listing regulations of the Swiss Stock Exchange.
The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. The application of the underlying principles is unchanged from the previous year, with the exception of the accounting standards newly applied in item 16.3.
16.3 New accounting standards used
Bellevue Group applied the following new and revised standards and interpretations for the first time in the 2021 financial year:
|
|
To be applied as of |
IFRS 9, IAS 39, IFRS 7, IFRS 4, IFRS 16 Amendments: Interest Rate Benchmark Reform - Phase 2 - |
|
01.01.2021 |
16.4 International Financial Reporting Standards and interpretations which will be introduced in 2022 or later
Based on early stage analysis, the following new standards and/or standards’ updates will not have a significant effect on Bellevue Group’s financial statements:
|
|
To be applied as of |
IFRS 3 Amendments: Reference to the Conceptual Framework |
|
01.01.2022 |
IAS 16 Amendments: Property, Plant and Equipment: Proceeds before Intended Use |
|
01.01.2022 |
IAS 37 Amendments: Onerous Contracts - Costs of Fulfilling a Contract - |
|
01.01.2022 |
IFRS 17: Insurance Contracts |
|
01.01.2023 |
IAS 1 Amendments: Classification of Liabilities as Current or Non-current |
|
01.01.2023 |
IAS 8 Amendments: Definition of Accounting Estimates |
|
01.01.2023 |
16.5 Important accounting principles
16.5.1 Consolidation principles
Fully consolidated companies
The annual consolidated financial statements comprise the annual accounts of Bellevue Group AG and its subsidiaries. All companies that are directly or indirectly controlled by Bellevue Group AG are consolidated. Subsidiaries are fully consolidated from the date on which control is transferred to the Group, and deconsolidated from the date when control ceases.
Method of consolidation
The Group applies the acquisition method to account for business combinations. Under this method, the book value of the participation held by the parent company is offset against its share of the shareholders’ equity of the subsidiary at the time of the acquisition. The effects of intercompany transactions are eliminated during the preparation of the consolidated financial statements.
Business combinations
In a business combination, the acquirer obtains control of the net assets of one or more businesses. The business combination is accounted for using the acquisition method. This requires the recognition of the identifiable assets acquired, including previously unrecognized intangible assets, and liabilities assumed of the acquired business at their fair values at the acquisition date. Any excess of the consideration transferred over the net identifiable assets acquired is recognized as goodwill. Consideration transferred is assets or equity instruments issued that are measured at fair value at the acquisition date. Transaction costs are immediately charged to the income statement.
Contingent consideration, which is accounted for as part of the consideration transferred for the acquiree, is measured at fair value at the acquisition date. Subsequent changes in the fair value of contingent consideration are recognized in the income statement in accordance with IFRS 9.
16.5.2 General principles
Foreign currency translation
The items included in the financial accounts of each of the Group’s company are measured using the currency of the primary economic environment, in which the company operates (functional currency). The consolidated financial statements are presented in Swiss Francs, which is also the functional and presentation currency of Bellevue Group AG.
Assets and liabilities denominated in foreign currencies at foreign group member companies are converted into Swiss francs using the applicable exchange rates for the balance sheet date. For the income and cash flow statements, year-average exchange rates are used. The differences resulting from consolidation are booked directly in other comprehensive income.
In the individual year-end accounts of group member companies transactions are booked in foreign currency at the respective daily exchange rates. Monetary assets are translated at the respective daily exchange rate and any gains or losses are recognized in the income statement. Monetary items carried on the balance sheet at historical cost in a foreign currency are translated at the historical exchange rate.
The following exchange rates apply to the translation of significant currencies:
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
2020 |
||||
|
|
Year-end rate |
|
Average rate |
|
Year-end rate |
|
Average rate |
EUR |
|
1.03740 |
|
1.07929 |
|
1.08134 |
|
1.07201 |
USD |
|