Half Year Report 2009

Transcription

1 Half Year Report 2009

2 Oliver Borrmann Andreas van Bon Ralph Günther Dear shareholders and business partners, The second quarter of 2009 failed to bring an upturn in our business of venture capital direct investments and private equity fund investments. There were no exits from our portfolio and no new investments were made. Our activities focused on securing and developing the existing portfolio with the aim of successfully steering our investments through the crisis and selling them at a profit in the coming years. Venture capital is a volatile business and there is no point in selling good investments at less than their value in economic phases like the current one. Instead, we are currently focusing on creating value that will strengthen the substance of our Company and make a positive contribution to income in future. Marketable securities and cash and cash equivalents amounted to 5.6 million on 30 June 2009 compared with 8.8 million on 31 December In the same period, cash on hand and bank balances declined from 3.4 million to 1.4 million. We have a challenging financial year ahead of us. Our activities will focus on maintaining and developing the value of our assets. Based on current developments, it is highly likely that we will close the 2009 financial year with a loss. Berlin, August 2009 The Executive Board Due to the lack of sales of holdings and the continued negative price performance of our listed investments, we again recorded a loss in the second quarter. At the same time, however, we have taken the opportunity to review and optimise our cost structures with a view to cutting costs for 2009 as a whole. The level of Private Equity Advisory business remains subdued on account of the current market conditions, with no additional funds subscribed to and no new customers acquired.

3 bmp Half Year Report 2009 Business Development 3 Business Development In the second quarter of the 2009 financial year, it again proved impossible to sell shareholdings at acceptable prices. This meant that practically no sales revenue was generated in the first six months of Despite the slight upward trend on the capital markets, our listed investments developed negatively during this period, while the values of our unlisted investments remained largely stable. There were no new investments in the second quarter of the year, with follow-up investments limited to a total of 0.1 million for a Media Investors holding. Due to these factors, bmp AG is again recording a consolidated net loss of 1.1 million for the second quarter of This resulted in a consolidated net loss of 2.3 million for the first half of 2009, compared with consolidated net income of 2.3 million in the same period of the previous year. Accordingly, earnings per share declined from 0.13 to With the exception of limited income from the disposal of securities, no sales revenue was generated in the period from 1 January to 30 June Revaluation income totalled 0.4 million in the first half of 2009 while revaluation losses totalled 1.9 million, resulting in an overall revaluation result of 1.5 million. Of this figure, around 1.0 million was attributable to the negative value development of the listed investments K2 Internet, Vestcorp (formerly TFG) and Heliocentris Fuel Cells. At 587 thousand, personnel costs were down around 16% year-on-year. This was primarily due to the lower level of performance-related bonuses. Other operating expenses amounted to 653 thousand, a 9% increase on the same period of the previous year ( 598 thousand). It should be noted that other operating expenses also include write-downs of receivables in the amount of 239 thousand (previous year: 61 thousand). The financial result for the first half of 2009 amounted to 115 thousand, thereby remaining essentially unchanged as against 30 June 2008 ( 91 thousand). Within this figure, interest income and income from investments in the amount of 217 thousand was offset by interest expense of 102 thousand. At the end of the first six months of 2009, cash and cash equivalents amounted to 1.4 million (previous year: 6.1 million) plus marketable securities of 4.2 million (previous year 6.9 million). Equity totalled 21.8 million as of 30 June 2009, corresponding to equity per share of At the end of the quarter, bmp AG had a total of 14 employees. In addition to the Executive Board, eleven salaried employees currently work for the Company, three of them on a part-time basis. Development of the Fee Generating Assets under Management (million ) Assets under Management total PE Advisory / Fondsinvestments bmp Media Investors / bmp Eco Investors

4 bmp Half Year Report 2009 Business Development 4 80 Assets under Management as at in Mio PE Advisory / Fondsinvestments fee generating direct investments Direct Investments of bmp AG As of 30 June 2009, bmp AG held investments in five companies with a total investment volume at acquisition cost of 12.1 million. The investments in Vestcorp AG and Salt of Life International AG are no longer presented separately in bmp AG s portfolio, as the Company intends to dispose of these investments in the near future. Heliocentris AG is now only reported at bmp Eco Investors, as bmp AG has reduced its shareholding to a low level and classified it as available for sale. Name Business Segment Date of Investment Stake % Stage Volume million 1 ErgoTrade AG IT Remarketing/Refurbishment 10/ Expansion Revotar Biopharmaceuticals AG Drug Development 07/ Start-Up > Newtron AG Enterprise Software 08/ Expansion Tembit Software GmbH Enterprise Software 06/ Expansion < 1 5 European Telecommunication Holding E.T.H. AG Telecommunication 12/ Expansion 1-2.5

5 bmp Half Year Report 2009 Business Development 5 Direct Investments of bmp Media Investors AG & Co. KGaA At 30 June 2008, the active portfolio of bmp Media Investors consisted of 11 companies with a total investment volume at acquisition cost of 7.8 million, meaning that there were no significant changes in the first half of the year. Five of these companies are based in Poland, with the other six domiciled in Germany. 0.7 million. The investments primarily relate to comparatively young companies. bmp s activities over the coming years will focus in particular on supporting their business development, including the provision of additional rounds of funding. There were no new investments in the second quarter of 2009, while follow-up investments related solely to one portfolio company ( 0.1 million). The investment in microshooting GmbH is no longer reported in the active portfolio, as further financing has been suspended due to its failure to achieve the agreed milestones. The average investment stake was 33%, while the average investment amount was a good Name Business Segment Date of Investment Stake % Stage Volume million 1 Republika Kobiet Sp. z o.o. Internet portal for women 11/ Seed < 1 2 SklepyFirmowe.pl Sp. z o.o. White-label eshop provider 07/ Start-Up < 1 3 GreenHanger GmbH Ambient Media 10/ Start-Up < 1 4 Nokaut Sp. z o.o. Price comparison 12/ Expansion < 1 5 dailyme.tv/mando.tv GmbH Mobile TV 12/ Start-Up < 1 6 K2 Internet S.A. Online Agency 06/ Expansion Brand New World GmbH Audience Relationship Management (TV) 04/ Expansion Shotgun Pictures GmbH Financing film production, exploitation of rights 09/ Expansion < 1 9 nugg.ad AG Predictive Behavioral Targeting 11/ Start-Up Pomocni Sp. z o.o. Marketplace for domestic services 07/ Start-Up < 1 11 Motor Entertainment GmbH 360 artist marketing and music label 01/ Expansion < 1

6 bmp Half Year Report 2009 Business Development 6 Direct Investments of bmp Eco Investors GmbH & Co. KGaA bmp Eco Investors currently has one investment, the listed company Heliocentris Fuel Cells AG. In the second quarter of 2009, Heliocentris Fuel Cells AG successfully concluded an issue of subscription rights followed by a private placement. After this capital increase met with below-average participation, bmp Eco Investors equity interest in the company declined to 11.96%. Name Business Segment Date of Investment Stake % Stage Volume million 1 Heliocentris Fuel Cells AG Renewable energy 12/ Expansion Private Equity Advisory and Fund of Funds Management In the second quarter of 2009, Private Equity Advisory business continued to be dominated by extreme restraint on the part of investors. This had two consequences for bmp: firstly, it was unable to gain new institutional investors for the Company, and secondly, König & Cie. was only able to acquire new customers for the INPEQ II joint fund of funds to a very limited extent.

7 bmp Half Year Report 2009 Outlook 7 Outlook The markets have picked up somewhat over recent weeks on the back of a slight improvement in the overall economic outlook. To date, the majority of our portfolio companies have successfully coped with the crisis at an operational level. At the same time, however, there is no sign of an improvement in terms of external financing for innovative growth companies, with funding gaps largely having to be closed by the respective shareholders. restrained, although there are clear signs of a relaxation in the market. The third quarter is likely to see a further net loss, as no investments have been sold to date. Berlin, August 2009 We are observing a slight improvement in exitside sentiment. Although we are not in concrete negotiations on the sale of investments at present, there is growing external interest in a number of our portfolio companies. This gives grounds for confidence that we will be able to successfully implement one or more exits before the end of the year. We intend to exercise considerable restraint with regard to new investments over the coming months in order to reserve the available liquidity for the existing portfolio. However, we will undoubtedly expand our investment activity again if we are able to dispose of investments. We expect development in the Private Equity Fund Investments business area to remain

8 bmp Half Year Report 2009 Balance Sheet 8 Group Balance Sheet as at Assets Long-term assets Intangible assets 2, Tangible assets 35, Equity investments 18,876, ,074 Silent partnerships and loans 638, Affiliated companies and Joint Ventures 629, Fixed-asset securities ,181, Current assets Trade accounts receivable Receivables and other assets 3,063, ,753 Cash on banks and cash on hand 1,358, ,448 4,422, Total assets 24,604, ,816

9 bmp Half Year Report 2009 Balance Sheet 9 Liabilities Shareholders equity Subscibed capital 17,500, ,500 Capital reserves 530, Other revenue reserve 972, Accumulated net profit 2,773, ,105 21,776, Long-term liabilities Liabilities from refinancing activities 1,521, ,521 Long-term provisions 168, ,689, Current liabilities Trade accounts payable 27, Liabilities from refinancing activities 936, ,607 Liabilities to banks Other liabilities 174, ,138, Total liabilities 24,604, ,816

10 bmp Half Year Report 2009 Profit and Loss Statement 10 Group Profit and Loss Statement Sales revenue Income from disposal of investments and securities 55, , ,896 Other operating income Income from revaluation 388, , Other operating income 323, Income from consulting and commissions Reduction in book value of investments and securities -72, Staff costs Wages and salaries -512, Social security contributions and costs for pensions and support -74, Depreciations Depreciation on intangible and tangible fixed assets -9, Other operating expenses Expenses from revaluation -1,891, Other operating expenses -653, Operating income -2,446, ,198-1,162 1,106 Income from investments 27, Interest and similiar income 189, Interest and similiar expenses -102, Result on ordinary activities -2,331, ,289-1,105 1,148 Consolidated net result -2,331, ,289-1,105 1,148 Result per share Diluted result per share

11 bmp Half Year Report 2009 Cash Flow Statement 11 Group Cash-Flow Statement for the Period from 1 January 2009 to 30 June 2009 Cash Flow from Operations Consolidated net profit -2,331, ,289 Revaluation of investments, securities and receivables 1,502, ,157 Profit from disposal of holdings and securities 16, ,052 Depreciation of tangible assets 9, Other non-cash items Decrease/(-) increase in assets and Increase/(-) decrease in liabilities -802, Receivables and other assets 268, Fixed-asset securities 197, Other liabilities -194, Provisions -15, Total -545, ,885 Cash-Flow from Investments Holdings and affiliated companies Additions to holdings, silent partnerships and loans -922, ,589 Change in affiliated companies and joint ventures -233, Cash-in from the disposal of holdings, securities, silent partnerships and loans 282, ,940 Tangible fixed assets -872, Additions Disposals Total -873, Cash Flow from Financing Decrease in liabilities to banks -670, Total -670, Change in liquid funds -2,089, ,568 Liquid funds at the beginning of the reporting period 3,448, ,650 Liquid funds at the end of the reporting period 1,358, ,082

12 bmp Half Year Report 2009 Statement of Changes in Equity 12 Statement of Changes in Equity Figures in 000 Subscribed capital Capital reserve Other profit reserves Accumulated net results Total Equity as at , ,105 24,108 Net result for the period ,332-2,332 Equity as at , ,773 21,776 Equity as at , ,625 25,628 Net result for the period ,289 2,289 Equity as at , ,914 27,917

13 bmp Half Year Report 2009 Notes 13 Notes 1. General information This quarterly report was prepared in accordance with the provisions of the International Financial Reporting Standards (IFRS) and IAS 34 in particular. 2. Accounting principles The accounting principles described in the last published consolidated financial statements for the year ended 31 December 2008 continue to apply. 3. Economic and seasonal influences The venture capital business is not subject to any seasonal influences and is not directly linked to any economic development in a specific market, but is dependent to a slight extent on the general economic situation. A positive correlation may arise between the market price development of innovative, high-growth companies on the securities markets and the prices that can be generated from OTC share disposals. 4. Unusual circumstances During the period under review, there were no unusual circumstances affecting the Company s assets, liabilities, equity, profit or loss for the period or cash flows. 5. Estimates There were no changes to estimated amounts during the period under review. 6. Changes in shares There were no changes in outstanding shares. 7. Dividends No dividends were paid in the period under review. 8. Segment information bmp AG generates its sales revenue almost exclusively from the disposal of investments. The large majority of the Company s investments are held in Germany and in Poland. In light of this structure, the Company s sales revenue and earnings are not broken down into segments. 9. Significant events after 30 June 2009 There were no significant events after the end of the period under review. 10. Basis of consolidation In the period under review, there were no changes in the basis of consolidation compared with 31 December Contingent liabilities and contingent claims There were no changes to contingent liabilities and contingent claims during the period under review. 12. Write-downs on financial assets Write-downs on financial assets totalled 1,891 thousand in the first six months of the 2009 financial year. 13. Responsibility statement To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the abbreviated consolidated interim financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the consolidated interim management report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group in the remaining months of the financial year.

14 bmp Half Year Report 2009 Group Management Report 14 bmp Aktiengesellschaft, Berlin, Group Management Report for the Half Year of 2009 In light of the macroeconomic environment, the existing investments developed well in the first six months of At 30 June 2009, the investment portfolio consisted of 18 companies with a total investment volume at cost of 22.2 million. Five investments were attributable to the residual portfolio of bmp AG, 12 to bmp Media Investors and one to bmp Eco Investors. The investments are primarily domiciled in Germany. bmp also holds foreign investments in Poland and Switzerland. No investments were sold in the period under review. One new investment was made by bmp Media Investors. Private Equity Advisory No new commitments were made for INPEQ II in the first half of Assets under management increased by 0.1 million as against year-end Significant events after the period under review: There were no significant events after the end of the period under review. Opportunities and risks for the period from 1 July to 31 December 2009: Overall risk assessment and risk management bmp has recognised adequate provisions for all identifiable individual risks in its half-yearly financial statements for the period ended 30 June bmp has developed an integrated investment controlling system in order to enable the quantification and qualification of the risks arising from its investment business. In addition to a comparison of target and actual data at both investment and Group level, the system permits seamless reporting as well as satisfying the purpose of a management information system. The financial development of the investments is monitored through intensive contact with the respective companies. The carrying amounts and value development of the holdings are reviewed on a quarterly basis using appropriate actuarial models and adjusted as necessary. The continuous controlling of investments allows the Company to implement suitable measures in response to adverse developments. bmp s current liquidity position is adequate. From a current perspective, the individual or cumulative occurrence of potential risks presents no danger to the continued existence of the bmp Group. In the opinion of the Executive Board, bmp s continued existence is guaranteed on a sustainable and long-term basis. The financial crisis The impact of the financial crisis on bmp AG and its subsidiaries and portfolio companies should be analysed in a differentiated manner. For example, the squeeze on the credit market has had a major impact on companies and entrepreneurs who depend on the corresponding credit facilities from banks to allow them to finance their business operations, investments or company acquisitions. As our direct holdings are generally structurally independent of bank loans, this aspect only affects our portfolio to an extremely negligible extent. The business model of the bmp Group is not based on obtaining leverage from acquiring companies, but rather on the acquisition of equity interests within the framework of capital increases. On the other hand, the target funds contained in the funds of funds for which we act as consultants have leveraged the equity deployed in the buy-out segment through loans

15 bmp Half Year Report 2009 Group Management Report 15 and have turned to investments as a means of obtaining the credit to finance the respective purchase prices. However, this approach on the part of the target funds has no impact on the bmp Group. By contrast, the general situation on the stock markets has direct consequences for the position of bmp AG. The value of our listed investments has declined in The resulting write-downs are recognised directly in income at bmp AG. On the other hand, the crisis in individual industries has largely left our investments unscathed to date, as the companies in question have few clients among automobile suppliers, in the machine construction and financial industries, etc. Leading indicators such as incoming orders provide an insight into the expected development in 2009 as a whole. At present, there is nothing to suggest a substantial downturn in revenue. further liquidity. Opportunities If the macroeconomic situation improves, the Executive Board expects to record some isolated sales of investments in the period until 31 December 2009, which should make a positive contribution to the consolidated result. Berlin, August 2009 Individual and cluster risks Revotar AG, which has an IFRS carrying amount of 7.6 million, represents the largest asset position among our investment interests. This biotechnology company is financed until mid-2010, after which it will be dependent on Oliver Borrmann Andreas van Bon Ralph Günther