3 Details on the consolidated balance sheet

3.1 Financial assets and financial liabilities

3.1.1 Fair value of financial instruments

	30.6.2022	31.12.2021
CHF 1 000	Book value	Book value
Assets
Financial investments
Investments in own products	27 157	28 251
Investments in own products to fulfill long-term incentive plans	10 584	20 287
Derivative financial instruments	79	32
Other investments in equity instruments	1 004	1 037
Financial assets at fair value through profit and loss	38 824	49 607

Financial investments
Investments in own products	3 777	3 528
Financial assets with OCI fair value measurement	3 777	3 528

Total financial assets at fair value	42 601	53 135

Liabilities
Other financial liabilities	–	27
Financial liabilities at fair value through profit and loss	–	27

Total financial liabilities at fair value	–	27

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
30.6.2022 Assets
Financial investments
Investments in own products	89	23 672	7 173	30 934
Investments in own products to fulfill long-term incentive plans	10 584	–	–	10 584
Derivative financial instruments	–	79	–	79
Other investments in equity instruments	637	–	367	1 004
Financial assets at fair value	11 310	23 751	7 540	42 601

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

No transfer between levels of the fair value hierarchy took place in the first half of 2022 or in the comparable period of the previous year.

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 available transaction prices. 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	30.6.2022	30.6.2021
	Financial investments	Financial investments
Holdings at the beginning of the year as 1.1.	7 867	17 349
Investments	236	1 963
Redemptions/Payments	– 38	– 10 947
Losses recognized in the income statement	– 538	– 170
Losses recognized in other comprehensive income	25	–
Gains recognized in the income statement	–	111
Gains recognized in other comprehensive income	– 12	413
Total book value at balance sheet date	7 540	8 719
Unrealised profit/losses from level 3 instruments which were held on the balance sheet date recorded in the income statement in the period	– 538	– 59

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	7 540	Net asset value	+ 5 percentage points	377
			– 5 percentage points	– 377

CHF 1 000	30.6.2022	30.6.2021
	Other financial liabilities	Other financial liabilities
Holdings at the beginning of the year as 1.1.	27	80
Payments	–	– 45
Gains recognized in the income statement	– 27	–
Total book value at balance sheet date	–	35
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 contingent purchase price payment from the acquisition of REALWERK AG in 2020 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. In the first half-year 2021 a payment of TCHF 45 has taken place. This liability was derecognized in profit or loss in the 1st half of 2022.

3.1.4 Derivative financial instruments

CHF 1 000	Positive replacement value	Negative replacement value	Contract volume
30.6.2022
Forward contracts (OTC) 2)	79	–	6 393
Futures 1)	–	–	6 721
Total	79	–	13 114

31.12.2021
Forward contracts (OTC) 2)	32	–	5 519
Futures 1)	–	–	3 910
Total	32	–	9 429

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	30.6.2022	31.12.2021
Trade receivables	10 680	13 445
Prepayments	729	475
Other receivables	4 817	4 301
Total	16 226	18 221

3.3 Financial investments

CHF 1 000	30.6.2022	31.12.2021
Investments in own products	30 934	31 779
Investments in own products to fulfill long-term incentive plans	10 584	20 287
Derivative financial instruments	79	32
Other investments in equity instruments	1 004	1 037
Total	42 601	53 135

Current	35 062	45 269
Non-current	7 539	7 866
Total	42 601	53 135

3.4 Other assets

CHF 1 000	30.6.2022	31.12.2021
Assets related to other employee benefits	16 027	16 703
Assets from pension plans	775	913
Other	1 653	1 412
Total	18 455	19 028

Current	9 600	9 462
Non-current	8 855	9 566
Total	18 455	19 028

3.5 Goodwill and other intangible assets

CHF 1 000	30.6.2022	31.12.2021
Goodwill	41 129	41 545
Other intangible assets	5 130	5 953
Total	46 259	47 498

CHF 1 000		Total
Goodwill Acquisition cost
Balance as of 1.1.2021		109 788
Foreign currency effect		– 476
Reclass foreign currency effect		– 679
Balance as of 31.12.2021		108 633
Write-offs		– 1 576
Foreign currency effect		– 945
Balance as of 30.6.2022		106 112

Accumulated valuation adjustments
Balance as of 1.1.2021		– 65 741
Reclass foreign currency effect		679
Additions		– 2 026
Balance as of 31.12.2021		– 67 088
Write-offs		1 576
Foreign currency effect		529
Balance as of 30.6.2022		– 64 983

Net carrying values
Balance as of 1.1.2021		44 047
Balance as of 31.12.2021		41 545
Balance as of 30.6.2022		41 129

Bellevue Group basically examines the recoverable 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. Detailed explanations of the methods used in calculating the recoverable amount are given in the note in the annexe, item 3.6, of the 2021 annual report.

CHF 1 000	Client base	Brand	Other	Total
Other intangible assets Acquisition cost
Balance as of 1.1.2021	49 200	374	372	49 946
Foreign currency effect	– 96	–	–	– 96
Reclass foreign currency effect	– 845	– 18	–	– 863
Balance as of 31.12.2021	48 259	356	372	48 987
Write-offs	– 990	–	–	– 990
Foreign currency effect	– 511	– 9	–	– 520
Balance as of 30.6.2022	46 758	347	372	47 477

Accumulated valuation adjustments
Balance as of 1.1.2021	– 40 998	– 351	– 66	– 41 415
Additions	– 1 504	– 23	– 93	– 1 620
Impairment	– 862	–	–	– 862
Reclass foreign currency effect	845	18	–	863
Balance as of 31.12.2021	– 42 519	– 356	– 159	– 43 034
Additions	– 694	–	– 46	– 740
Write-offs	990	–	–	990
Foreign currency effect	429	9	– 1	437
Balance as of 30.6.2022	– 41 794	– 347	– 206	– 42 347

Net carrying values
Balance as of 1.1.2021	8 202	23	306	8 531
Balance as of 31.12.2021	5 740	–	213	5 953
Balance as of 30.6.2022	4 964	–	166	5 130

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).

3.6 Trade and other payables

CHF 1 000	30.6.2022	31.12.2021
Trade payables	875	659
Accrued expenses	30 929	64 204
Other payables	1 169	1 423
Total	32 973	66 286

Current	23 916	50 677
Non-current	9 057	15 609
Total	32 973	66 286

3.7 Treasury shares

	Number	CHF 1 000
Balance as of 1.1.2021	86 142	2 193
Purchases	198 580	8 045
Disposals	– 125 945	– 4 486
Balance as of 30.6.2021	158 777	5 752
Purchases	140 633	5 903
Disposals	– 143 779	– 5 576
Balance as of 31.12.2021	155 631	6 079
Purchases	116 386	4 223
Disposals	– 141 490	– 5 528
Balance as of 30.6.2022	130 527	4 774

Consolidated interim financial statements