ID New Value€¦ · New Value AG Company Research intelligence dynamics research & analysis New...

Key HigHligHts

DiversificationbyinvestmentsinITandhealthcare ■

Morethan40%discountonNAV ■

Highweightof3Sindustriesinportfolio ■

Relativelyhightransparency ■

Uniquepositioningasinvestmentcompanyprovidinggrowthcapital ■

Sept 07, 2009

New Value AG

Company Research

i n t e l l i g e n c e d y n a m i c sresearch & analys i s

New Value AGISIN: CH0010819867

2New Value AG Investment Research


Date of report: September 7, 2009

Stock Profile

Core business:Private equity investments

Exchanges: SIX and Xetra

Date of listing:May 16, 2006 (on SIX)

Stock price: CHF 14.50

52 week high and low: CHF 20.90 - CHF 13.00

Fiscal Yr End: March 31

Local Currency: CHF

TickerBloomberg: NEWN SWReuters: NEWN.S

Shares Outstanding: 3,287,233

Market Cap: 47.66 mCHF

Free Float: 91%

stock performance over 1 year

CH

F

1213141516171819202122

Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jun-09 Sep-09

COMPANy PROFile (www.newvalue.ch)

New Value AG (hereinafter referred to as “New Value” or “Company”) is a private equity (PE) company which invests in Switzerland and neighbour countries. New Value pursues an investment approach focused on companies which feature high corporate governance standards, social responsibility, ecological sustainability and an ethical business model. At the end of Q1 2009/10, the investment volume of the Company’s portfolio stood at 70.5 mCHF.

New Value is a Zurich-based investment company which was founded in May 2000 and got listed on the Berne Stock Exchange 3 months later. By 2006, New Value moved its listing to the SIX Swiss Exchange.

iNVestMeNt stRAtegyNew Value invests primarily in growth companies with an ethical innovative approach. The Company aims at establishing a diversified portfolio comprising of promising companies operating both in high tech as well as traditional sectors. Maximum exposure to one sector is restricted to 50% of net asset value (NAV) and not more than 20% is to be invested in an individual position. In order to further diversify risks, investments are spread across different development stages ranging from early-stage to growth financing. Furthermore, the Company may invest up to 50% of its funds into listed companies.

Unlike most of its competitors, New Value does not leverage its investments using debt but only invests its own funds. The Company usually acquires significant minority positions and actively takes board seats in its holding companies. New Value follows a medium to long term investment approach with a targeted holding period of approximately 5 years.

New Value’s investment manager EPS Value PLUS AG (EPS), an integrated private equity specialist, is in charge of investment and risk management processes. The associate investment advice fee amounts to 0.5% of audited NAV per quarter. In addition, EPS receives a performance related fee of 10% and 20%, respectively, of share price increase in case the share price has risen by more than 10% and 15%, above the watermark.

Key HigHligHts Diversification of investments especially in IT and healthcare ■

New Value is making deliberate efforts in diversifying its investment portfolio. The renewable energy sectors contribution to the portfolio decreased from 53% in Q1 2008/09 to 42% in Q1 2009/10, as the Company made significant investments in other sectors such as IT and health-care in FY 2008/09 and Q1 2009/10.

New Value financed QualiLife SA, a software company that specializes in developing access technologies for the disabled, the elderly and hospital patients. Apart from financing QualiLife, New Value also increased its share holding in Swiss Medical Solution, Mycosym International, Bogar, Silentsoft and Natoil.

More than 40% discount on NAV ■

While New Value’s share price and NAV were moving largely in line until end of FY 2005, the share price has shown steady increasing discount on its NAV per share since then. As of Aug 31 2009, the discount stood at 43.7% of the NAV.



The significant discount to NAV is partially due to the negative market environment and reluctance of the investors towards PE companies.

Development of share price and NAV (CHF) Premium (+) / Discount (-) on NAV

10

12

14

16

18

20

22

24

26

28

30

Mar 03 Mar 04 Mar 05 Mar 06 Mar 07 Mar 08 Mar 09 Aug 09NAV Share price

3.3%

9.9%

1.5% -0.8%

-15.7%

-24.0%

-34.5%

-43.7%-50%

-40%

-30%

-20%

-10%

0%

10%

20%

Mar 03 Mar 04 Mar 05 Mar 06

Mar 07 Mar 08 Mar 09 Aug 09

High weight of 3S industries in portfolio ■

In Q1 of the fiscal year 2009/10 New Value’s NAV grew by 17%, primarily as a result of a rebound in the share price of 3S Industries since March 2009/10. Whereas, in FY 2008/09, the Company’s NAV decreased by 20.5% as compared to FY 2007/08 largely due to lower valuations of 3S Industries. This indicates a high dependency on 3S Industries which accounts for approximately 35% of the total investments. New Value sold around 10% of its holdings in 3S Industries in FY 2008/09 and could realize a multiple of 15x compared to the initially invested price.

Relatively high transparency ■

New Value informs regularly about the latest developments and business prospects of its portfolio companies. Furthermore, the Company publishes the NAV of its portfolio twice a month. Therefore, potential and actual investors get an idea of where there money is invested. This compares favourably with most of its competitors which usually provide less information regarding their investments.

OUtlOOK AND PROJeCtiONsNew Value is one of the few private equity companies which use its own funds for investments and also has healthy financials with enough liquidity. These characteristics of New Value will help it withstand the current economic crisis. The Company’s diversified investment portfolio with investments across companies in different phases of life cycle creates various growth opportunities with lower risks. We believe that New Value is well placed to achieve substantial growth in the near term once the recession eases out.

The Company’s performance in FY 2008/09 was severely hampered by negative performance of 3S Industries but the positive results in Q1 2009/10 and deliberate efforts of diversification in portfolio are positive signs.

New Value sees a considerable growth potential in the medium term in its portfolio as new investments as well as increase in the current holdings can be made at lower valuations.



sCOt ANAlysis

stReNgtHs

Use of own funds and no impact of ■leverage

Risk diversification through ■investments across different development stages

Relatively high transparency ■

CHAlleNges

Continuous decrease in discount on ■NAV over the past few years

Improving portfolio diversification ■ Continue with successful exits (track ■record: 4 exits so far)

OPPORtUNities

Low valuation of shares (potential of ■non-listed portfolios companies not yet reflected)

Attractive investment opportunities ■due to the current financial crisis

Capitalize on current trend in ■sustainable and ethical investments

tHReAts

Severe economic slowdown which ■affects portfolio valuation

Dependency on 3S ■

PeRFORMANCe ■ Q1 - 2009/10

For the 1st quarter ending June 30, 2009, New Value witnessed a substantial 17% increase in the value of its investments, primarily as a result of a rebound in the share price of 3S Industries since March 2009. 3S Industries earned prestigious contracts in the 1st quarter of 2009/10 and regained more than 75% of the earlier fall in share price. The NAV of its investment portfolio increased to CHF 25.46 per share on June 30, 2009, as against CHF 21.76 per share on March 31, 2009.

In the same quarter, New Value increased its share in Natoil AG and QualiLife SA. Lubricant maker Natoil completed a 1.06 mCHF capital increase in June 2009. New Value contributed CHF 90,000 to this capital increase and converted 0.3 mCHF in loans. The Company also purchased additional shares of healthcare software provider QualiLife totaling 0.64 mCHF, thereby increasing its share to 25.1%.

Fy 2008/09 ■

The slowdown in economic activities adversely affected financial performance of New Value and forced it to report a loss of 14 mCHF in FY 2008/09. The loss was primarily due to reduced valuations for its two publicly-traded portfolio companies, 3S and Meyer Burger. A loss per share of CHF 4.91 was registered for the reporting period versus a profit per share of CHF 7.78 in the previous year. NAV followed the similar trend and fell to CHF 21.76 per share, 20.5% below the previous year.

New Value has been quite favorably and at times unfavorably influenced by the success of 3S Industries. In order to reduce the impact of 3S share prices the Company did not acquire any new shares, on the contrary, New Value sold 10% of its holdings in 3S and realized 1.04 mCHF.



PORtFOliO COMPANiesAs of June 30, 2009, Investment portfolio of New Value comprised 11 companies operating in renewable energies, medicinal technology, health care, IT and new materials sectors.

Company sector Form Market price as perJune 30, 2009

(CHF)

Portfolio share Company share

3S Industries Renewable Energies Shares 24,891,108 31.80% 10.30%

Idiag Medtech Shares 8,052,235 10.30% 49.70%

Solar Industries Renewable Energies Shares 7,770,500 9.90% 33.10%

Bogar Health Shares 7,146,254 9.10% 29.80%

Swiss Medical Solution Medtech Shares 1,557,905 7.50% 38.90%

Convertible loan 4,317,407

FotoDesk Group IT Shares 4,502,115 6.90% 45.00%

Convertible loan 863,098

Mycosym International Health Shares 4,226,830 6.00% 49.10%

Loan 457,648

Silentsoft IT Shares 3,577,553 4.60% 25.70%

Natoil New materials Shares 1,590,000 2.00% 30.50%

Qualilife IT Shares 1,360,000 1.70% 25.10%

Meyer Burger Technology Renewable Energies Shares 167,700 0.20% 0.10%

Total 70,480,353 90.10%

Portfolio structure as of June 30, 2009

Renewable energyMedicinal technologyHealth careITNew materialsCash and cash equivalents

42%

18%

15%

13%2%

10%

Portfolio structure as of June 30, 2008

Renewable energyMedicinal technologyHealth careITNew materialsCash and cash equivalents

53%

11%

14%

8%2%

12%



Diversified Private Equity Portfolio

New Value has made investments in various companies at various stages, this can be seen below:

Product Launch Sales Profitability /Growth

Realization /Stock Exchange

Listing

Corporate Development

Exit

Rel

ativ

e Pe

rform

ance

QualiLife

Solar Industries

Mycosym

Bogar

Silentsoft

FotoDesk

Idiag

3S Industries SAF

InnoplanaMeyer Burger

Natoil

SwissMedicalSolution

3s iNDUstRies Ag (3s) - www.3-s.ch

3S manufactures manual and semi-automated production lines for solar modules. In cooperation with partner companies, it also offers fully automated production lines. Furthermore, its product range includes solar systems which can be used as roofs, facades or shading elements.

In FY 2008/09, sales quadrupled over the previous year to 109 mCHF. EBIT increased fivefold to 12.5 mCHF; the EBIT margin also went up to 12.3% from the previous year’s level of 10.4%. In the last fiscal, 3S acquired Somont GmbH, Germany, a manufacturer and specialist of solar cell stringing machine. 3S raised an additional capital of 62 mCHF to finance the takeover and the growth. New Value did not participate in the capital increase due to its current high exposure to 3S. During FY 2008/09, New Value sold 263,800 shares at an average price of CHF 22.45 and bought 56,122 shares at an average price of CHF 16.58, realising 1.04 mCHF. 3S Industries recently delivered its first semi-automatic production line to Bangalore, India, where the company is currently intensifying its sales activities.

iDiAg Ag (iDiAg) - www.idiag.ch

Idiag develops and distributes innovative products for medicine, therapy and sports applications in the back care and respiration growth segments. So far Idiag has three products in its portfolio. These products are used for respiratory training, spinal diagnostics and body weight management. SpiroTiger is a device targeted for training of respiratory muscles. MediMouse enables computer based and rayless examination of the spine. Whereas, recently introduced Fitmate, is used for performance diagnostics and body weight management. Apart from this Idiag has introduced SpiroTiger SMART to expand within the existing products.

For FY 2008/09 sales decreased by 12% over the previous year. It is targeting development of new medical application areas for SpiroTiger, whereas, new product generations are expected to stimulate growth.

3S Industries AG’s stock performance

0

5

10

15

20

25

30

Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09

CH

F

Source: Bloomberg



MyCOsyM iNteRNAtiONAl Ag (MyCOsyM) - www.mycosym.com

Mycosym is a biological plant technology company whose products are based on mycorrhiza, a natural symbiosis between plant roots and fungi. These products vitalize plants and better protect them from environmental stress factors in order to reduce the use of fertilizers and water consumption.

In FY 2008/09, the difficult economic environment in Spain led to a decline in sales in the olive segment, as a result total sales fell by 27%. The firm has appointed Juan P. H. Candau as CEO for Spain. Mr. Candau has extensive experience in the areas of plant and seed cultivation, business development and corporate structuring.

For the current year, Mycosym is targeting expansion of the distributor base along with introduction of additional plant cultivation products. Mycosym has accelerated the development of a second product line for the lawn market segment. Used as a water management tool, savings in use of water are up to 40%. In March 2009, New Value contributed an additional 0.22 mCHF in loaned funds for expansion of the firm’s capital base.

BOgAR Ag (BOgAR) - www.bogar.com

Bogar develops, produces and distributes pet medicine and food based herbal ingredients. Bogar is a pioneer in veterinary phytomedicine and offers products for dogs, cats and horses. Its distribution channels comprise retail partners, pharmacies, chemists, veterinaries and its internet shop in Swiss, German and Austrian markets.

In FY 2008/09, Bogar acquired Trixie (a retail supplier to approximately 5,000 customers), a new distribution partner in Germany, as well as two major internet portals – zooplus and shop-apotheke. For the same period, Bogar recorded a revenue increase of 87% over last year’s figure. New Value increased its share in BOGAR’s capital stock to 29.8% by investing an additional 2.2 mCHF.

sOlAR INDUSTRIES AG (SI) - www.solarindustries.ch

SI invests in existing and development stage companies across the entire value chain of solar module manufacturing. The firm targets for a competitive industrial integration of these companies. SI entered into a strategic partnership with MX Group and acquired a minority interest in the company to produce PV solar modules with a capacity of 120 MW per year.

In FY 2008/09, SI entered into a joint-venture with api nòva energia to produce high-purity polysilicon for PV applications. At the end of FY 2008/09 it raised 5 mCHF in new capital, New Value increased its share in SI by investing 2 mCHF. The company is planning additional significant investments on the fast-growing Italian market.

FOtODesK gROUP Ag (FOtODesK) - www.fotodesk.com

New Value portfolio company Colorplaza SA was merged into FotoDesk Group AG in 2008. New Value now holds an approximately 45% in Fotodesk. Fotodesk is an integrated company in the area of digital imaging services. Along-with traditional photo printing, it offers innovative lifestyle products such as self-stick posters, laptop skins and wall tattoos.

In FY 2008/09, FotoDesk also acquired FlauntR, an online provider of image editing, archiving and sharing. The company is focusing on use of innovative web technologies and continuous product innovations in the area of print, fine art and décor.

Globally installed solar energy capacity

0

1

2

3

4

5

6

2005 2006 2007 2008 2009e 2010e 2011e

In G

W /

Yea

r

Source: Solar Annual 2008



sWiss MEDICAL SOLUTION AG (SMS) - www.swissmedicalsolution.ch

SMS develops, produces and distributes new technologies in the field of preventive medicine. It has developed a platform for vitro diagnostics suited for home application. So far, SMS has launched a test called U-Lab for early diagnosis of urinary tract infections. Whereas, two additional products are now in advanced development stage. SMS is currently testing a built-in diaper test for detecting UTIs in small children.

In FY 2008/09, SMS entered into exclusive marketing agreements for distribution of U-Lab® in Switzerland and Germany. SMS registered a revenue growth rate of 184% from the year earlier. New Value participated in a financing round in September 2008. The Company invested 2 mCHF, increasing its share in SMS to 38.9%.

sileNtsOFt S.A. (SILENTSOFT) - www.silentsoft.com

Silentsoft offers a large range of technologies and processes for the operation of machine to machine (M2M) communication networks. Thereby, it specializes on telemetry for bulk ware in tanks or silos as well as on energy management for building information systems. Silentsoft had 800 clients in 10 countries with a total of 26,000 tanks. Its clients include amongst others Swisscom, Die Post, Swiss Property, Total, Serimo and Swatch Group.

In FY 2008/09, Silentsoft introduced the new SNODE hardware generation. Introduction of SNODE took longer-than-expected development time causing a decline of 32% in the revenue. Silentsoft has returned to its growth path by testing and launching some more products. In order to finance the growth plans, in November 2008 Silentsoft held a financing round with existing shareholders, raising 2 mCHF. New Value increased its share by 1.2 mCHF raising its share in Silentsoft to 25.7%. Silentsoft signed contracts in May 2009 for the installation of over 1,200 telemetry systems, including major projects in the cities of Zurich and Winterthur.

NAtOil AG (NATOIL) - www.natoil.ch

Natoil is a producer of industrial lubricants which are largely based on renewable resources, mainly the high oleic sunflower. Natoil’s lubricants feature less friction losses than comparable products based on mineral oils hence reducing energy consumption and wear. Its customers amongst others include Jumbo, Alcan, Arburg and Meyer Werft.

In FY 2008/09, Natoil increased its sales by 63% over the previous year and received additional industry approvals from machine manufacturers including Junker and Moog. Whereas, Arburg has been delivering all gears for a specific machine type exclusively with Natoil since mid-2008. For 2009 Natoil has planned additional new customer acquisitions in the plastic injection moulding and pump sectors.

M2M Industry Growth

12

22

42

0

10

20

30

40

50

2004 2008 2012

bUS

D

Market size

Source: ABI Research



QUAliliFe S.A. (QUALILIFE) - www.qualilife.com

QualiLife develops and distributes IT solutions which enable elder or handicapped people to access numerous technologies such as telephony, internet, fax, DVD, business solutions or computer. QualiLife’s products are based on MS Windows and are very easy to handle. In Switzerland, QualiLife products for disabled are fully covered by health insurance funds if prescribed by a doctor. In Canada, health insurance funds cover 75% of costs.

In early June 2009, QualiLife acquired its first major customer, the Hildebrand Private Clinic, in the Swiss canton of Ticino. Walter M. Huber joined QualiLife as CEO in June 2009. In the same year the company launched its first solution for the eHealthcare industry – QualiMedical Unified Communication, an integrated information and communication platform. To finance this solution, New Value took part in a capital increase for QualiLife, boosting its shareholding to 25.1%.

MeyeR BURgeR teCHNOlOgy Ag (MBt) - www.meyerburger.ch

MBT is a supplier of sawing and slicing systems for materials such as silicon, sapphire and other crystals. In addition to its headquarter in Switzerland, MBT has subsidiaries in Japan and China and operates service centres in Germany and the Philippines. Furthermore, the group cooperates with external sales and service partners in the US and Taiwan.

In FY 2008/09, MBT successfully expanded through majority interests in Hannecke Systems and AMB Apparate + Maschinenbau. MBT also founded of two service company’s in Germany and Norway. The firm net sales reached 455 mCHF in FY 2008/09, up 119% from 208 mCHF in FY 2007/08. In the same period, EBIT jumped by 208% to reach 77 mCHF.

sHAReHOlDiNg stRUCtUReAs of March 31, 2009, shares outstanding amounted to 3,287,233 with a par value of CHF 10. In addition, as per 31 March, 2009 New Value held 321,512 (9.8% of issued shares) treasury shares. According to SIX, free float was approximately 91%.

Shareholding Structure

9.8%

59.9%

19.9%

5.4%

5.0%

Personalvorsorgekasse der Stadt BernCorisol Holding AGAargauische GebäudeversicherungsNew Value treasury sharesOther shareholders

Meyer Burger Technology AG’s stock performance

0

50

100

150

200

250

300

350

400

Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09

CH

F

Source: Bloomberg

No. of machines produced by MBT

3565

104

283

637

0

100

200

300

400

500

600

700

2004 2005 2006 2007 2008

Source: MBT



BOARD OF DiReCtORsROlF WÄgli (PResiDeNt AND CeO, eXeCUtiVe)

Mr. Rolf Wägli is a graduate banker with an experience of 20 years in international investment and private banking at banks such as Credit Suisse, Bank Cantrade, Rothschild, Interallianz-Bank, Grindlays and Bankinstitut Zürich. In addition to his mandate at New Value, he is chairman of R. Wägli & Cie AG asset management company and member of the supervisory boards of other international companies.

PAUl sANtNeR (ViCe PResiDeNt, NON-eXeCUtiVe)

Mr. Paul Santner was working for 23 years at Digital Equipment Corporation, the world’s former second largest computer manufacturer, amongst others as Vice President Europe. Since 1999 he has been working as a professional member of supervisory boards of companies from various sectors.

geRHARt isleR (MeMBeR, NON-eXeCUtiVe)

Mr. Gerhart Isler holds a lic. oec. publ. of the University of Zurich. After his studies he was working as a journalist and later on as director at Finanz & Wirtschaft (FuW), a Swiss business journal. From 1988 to 2004 he was chairman of FuW. Next to his mandate at New Value, he is amongst others member of the boards of Ypsomed Holding AG and Grand Casino Baden.

tHOMAs KelleR (MeMBeR, NON-eXeCUtiVe)

Mr. Thomas Keller is a graduate electrical engineer with additional studies in business administration as well as personnel and organizational management. Before joining the supervisory board of New Value in 2004 he was working as consultant and executive at different companies in high tech and executive search sectors. Since 2001, he is also owner of seed leadership counsels, a consultancy company for career planning and executive search.

JAN lARssON (MeMBeR, NON-eXeCUtiVe)

Mr. Jan Larsson is a dentist who further studied economics as well as organization and administration theory. He is founder of Dentina Dentalverstriebsgesellschaft, nowadays the largest European shipment company for dental supplies sold to Henry Schein Group in US. Initially as founder and owner of Switzerland’s first Technology Park in Tägerwilen and afterwards as founder member and president of SwissParks.ch, the association of Swiss technology parks and business incubators, he has been supporting start-up companies in the technology sector.

MARKeteurope

Institutional investors such as banks, pension funds, insurance companies and corporate investors account for more than half of the funds raised for PE investments in Europe. Almost two third of these funds originate in Europe, with the US, Asia and the rest of the world contributing the rest.

After a steady increase over the last few years, funds raised for PE investments in Europe dropped for the second consecutive year. However, in 2008, fundraising by European private equity houses slowed down its pace of decline and dropped only marginally by 2.5% over the previous year. Fundraising reached 79 bEUR in 2008, slightly less than the 81 bEUR raised in 2007.

PE market in Europe

28

72

112

81 79

3747

71 74

54

0

20

40

60

80

100

120

2004 2005 2006 2007 2008

bEU

R

Fund raising Investments

Source: EVCA



Private Equity investments reached 54 bEUR in 2008, representing a 27% drop compared to 2007. Nevertheless, it was the third-best investment year for the European private equity industry. In spite of a decrease in investments the number of companies financed increased by 5%, a total of 5,986 companies were financed in 2008.

Major part of the funds raised for PE investments in Europe was used for buyouts, while expansion (Growth and Later stage capital) and early-stage financing accounted for 20% and 5%, respectively.

Allocation of funds in 2008

BuyoutGrowth capitalLater stage ventureStart-upOthers

70%

13%

7%5% 4%

Source: EVCA

impact of credit crisis on Pe industry

Subprime mortgage financial crisis has caused a credit crunch in global economy. This has affected PE industry in multiple ways, PE players were previously heavily dependent on syndicate and high-yield debt, but low liquidity has left them cash-strapped as banks started going back on their positions. Also, the banks have drastically tightened the credit allowance conditions, leading to a rising cost of debt for PE companies.

The prevailing credit crisis has resulted in low investments in PE. The amount invested by PE companies decreased by 16% for the 2nd quarter of 2009/10, as against the first quarter. Whereas, the investments declined at a steeper rate of 27% for the year 2008/09 over the previous year. Raising debt has become more difficult and many PE companies have postponed new investments because of overall declining company valuations. While in the short term negative returns are expected, interesting investment opportunities arise, especially for investment companies with sufficient equity capital.

Switzerland

PE investments in Switzerland are slightly low as compared to other European countries. While European countries on an average invested 0.42% of their GDP in PE in 2008, the PE investments for Switzerland were 0.39%. In UK, Europe’s leading PE market, PE investments were 1.24% of its GDP.

Evolution of private equity funds raised and Investments in Switzerland

176

1,4951,636

1,478

3,081

272 363

837 905

1,307

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2004 2005 2006 2007 2008

mEU

R

Funds raised Investments

Source: EVCA



PE investments as % of GDP in 2008

1.24%

1.02%

0.45%0.42% 0.39%

0.30% 0.28% 0.26% 0.24% 0.24%

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

UK Sweden

France

Europe

Switzerl

and

Netherl

ands

German

y

Finland

Norway

Portugal

Source: EVCA

The Swiss PE sector developed positively in 2008 as compared to other European countries. Both fundraising as well as investments went up significantly last year.

Swiss private equity firms raised a total of 3.1 bEUR in 2008, more than double the level of fundraising in 2007. This increase was largely due to the raising of a new 1 bEUR fund focused on life sciences. In 2008, family offices and private individuals made highest contributions. Whereas, insurance companies contributed significantly less, representing only 5% of the total. Meanwhile, corporate investors increased their contributions more than threefold.

Swiss private equity firms invested a total of 1.3 bEUR in 201 companies in 2008. Compared with 2007, the amount invested increased by 45%. In 2008, buyout values decreased by 15% and number of companies financed by about 22% as compared with 2007. The amount invested in venture decreased by 52%, whereas, number of companies financed in the venture space increased by 25%.

In 2008, as in 2007, private equity firms based in Switzerland invested more than 70% of the total amount in companies located outside Switzerland. Whereas, domestic investors provided 75% of the total funds raised, while in 2007 they provided only 10%.

In 2008, private equity firms based in Switzerland exited 24 companies with a total cost divested of 130 mEUR, half of 2007. More than 75% of the amount was divested by means of trade sale for nearly 30% of all companies divested. The main exited sector by amount was transportation, and by number of companies, consumer goods, retail and life sciences.

Evolution of private equity divestments in Switzerland

113

265

151

268

130

0

50

100

150

200

250

300

2004 2005 2006 2007 2008

mEU

R

Source: EVCA



COMPetitiONNew Value competes with other Swiss PE companies such as Invision Private Equity AG, BioMedInvest AG, Capvis Equity Partners AG, Private Equity Holding AG, Vinci Capital Switzerland S.A. and Zurmont Madison Private Equity L.P. These companies are profiled below:

iNVisiON PRiVAte eQUity Ag (iPe)

Since inception in 1997, IPE has raised more than 400 mCHF for investments in European companies which mainly operate in IT, telecommunication, medicinal technology, financial services and media sectors. Until now, IPE has invested in more than 60 companies and exited 9 through an IPO and 16 through trade sale. In October 2008, Invision closed its latest fund, Invision IV, with commitments of 185 mEUR.

BiOMeDiNVest Ag (BMi)

BMI is a Swiss venture capital fund focusing on early to mid-stage financing of companies in the healthcare sector. BMI aims to invest about 1-10 mCHF over the life time of the portfolio companies. It currently manages one fund with a size of 100 mCHF which is invested into 16 portfolio companies. Amongst others, its portfolio companies include Arpida, a biopharmaceutical company focusing on new antibiotics drugs, which was listed on SIX in 2005.

BV HOlDiNg Ag (BVH)

BVH is focusing on succession and growth financing primarily in the medicinal technology, IT and communication sectors. Its investment strategy is aimed at profitable companies with a turnover between 15 mCHF and 150 mCHF located in Switzerland and bordering countries. As of June 30, 2009, the fair value of BVH’s portfolio amounted to 66.9 mCHF. BVH is listed on the Berne Stock Exchange.

CAPVis eQUity PARtNeRs Ag (CeP)

CEP invests in small and medium sized companies in Switzerland, Germany and Austria, mainly in case of succession of family owned businesses and corporate spin-offs. CEP invests a minimum of about 20 to 100 mEUR in each equity operation. It was awarded Switzerland’s best Private Equity house in 2007 by Private Equity International. CEP funds currently total 900 mEUR and since 1990 it has invested in 39 companies with a total transaction volume of more than 4 bCHF.

PRiVAte eQUity HOlDiNg Ag (PeH)

PEH is a PE company listed on SIX. As compared to New Value, PEH follows a broad investment strategy diversifying across ventures funds, special situation funds, buyout funds and direct investments. As of July 31, 2009, PEH’s portfolio had a NAV of approximately 265 mCHF out of which only 7% were held in direct investments. Unlike New Value, PEH does invest on a global basis.

ViNCi CAPitAl sWitZeRlAND s.A. (VCs)

VCS is a PE company focusing on Swiss technology and life sciences companies. Total NAV of the funds managed by VCS amounts to more than 200 mCHF. In June 2009, VCS has successfully raised a fund totaling 82 mCHF, Mona Lisa Capital AG contributed 1 mCHF to this fund. VCS’s former holdings include amongst others Actelion, a Swiss biotechnology company recently included in the Swiss Market Index.

Development of VCS’ NAV / Share

0

50

100

150

200

250

2003 2004 2005 2006 2007 2008

CH

F

NAV* Payout

*Excluding PE fund which was established in cooperation

with Swisscom

Source: VCS, own calculations



ZURMONt MADisON PRiVAte eQUity l.P. (ZMPe)

ZMPE, based on the Cayman Islands, is advised by Zurmont Madison Management AG. It focuses on succession of family owned businesses, management buy-outs and corporate spin-offs in Switzerland, Germany and Austria. ZMPE seek investments in mid-size companies with revenues in the range of 50 - 250 mCHF and positive cash flows. It does not invest in start-up or ventures. Unlike New Value, ZMPE uses also debt to leverage its investments. So far, the team has invested in 17 companies with a transaction total in excess of 360 mCHF.



DetAileD FiNANCiAlsBAlANCe sHeet

Fiscal Year ended on March 31 2007/2008 2008/2009 Assets CHFCurrent assetsLoans 500,000 240,000

Other receivables 102,875 65,591

Accrued income and deferred costs 68,106 16,262

Cash and cash equivalents 14,882,671 7,630,280

Total current assets 15,553,652 7,952,133

Non-current assets Participations 63,676,470 53,530,700

Loans 3,078,749 5,638,153

Total non-current assets 66,755,219 59,168,853

Total assets 82,308,871 67,120,986

liABilities & sHAReHOlDeRs eQUity

Liabilities Trade liabilities 0 0

Short-term financial liabilities 720,000 1,324,800

Passive derivative instruments 0 0

Deferred costs and accrued income 406,228 451,405

Total Liabilities 1,126,228 1,776,205

Shareholders' equity Capital stock 32,872,330 32,872,330

Treasury shares (6,406,150) (5,231,499)

Capital reserves 25,139,669 22,115,981

Retained earnings 29,576,794 15,587,969

Total shareholders' equity 81,182,643 65,344,781

Total liabilities & shareholders' equity 82,308,871 67,120,986



iNCOMe stAteMeNt

Fiscal Year ended on March 31 2007/2008 2008/2009 CHF

Income from participations and loansGain from sale of participations 9,838,388 1,043,816

Non-realized gain from participations and loans 17,630,680 5,371,986

Interest income 204,594 239,433

Other income 0 0

Total income from participations and loans 27,673,662 6,655,235

Losses from participations and loans Non-realized losses from participations and loans (1,857,114) (17,330,686)

Realized losses from participations and loans (690,743) (138,645)

Investment expenses (180,000) (187,131)

Total losses from participation and loans (2,727,857) (17,656,462)

Operating expenses Investment advisor fee (1,249,576) (1,746,663)

Third-party personnel expenses (96,840) (96,840)

Expenses for supervisory board (245,486) (152,850)

Expenses for auditing (66,552) (65,851)

Expenses for communication / investor relation (539,817) (480,079)

Consulting fees (54,602) (27,060)

Other administrative expenses (181,697) (178,824)

Capital tax (251,429) (105,000)

Total operating expenses (2,685,999) (2,853,167)

Financial income 227,208 92,276

Financial expenses (177,274) (226,707)

Financial result 49,934 (134,431)

Profit before tax 22,309,740 (13,988,825)

Income tax 0 0

Net profit 22,309,740 (13,988,825)



CAsH FlOW stAteMeNt

Fiscal Year ended on March 31 2007/2008 2008/2009 CHF

Operating cash flowNet profit 22,309,740 (13,988,825)

Adjustment for interest expenses 6,991 33,825

Adjustment for interest income (431,802) (331,709)

Non-realized gains from participations and loans (17,630,680) (5,371,986)

Non-realized losses from participations and loans 1,857,114 17,330,686

Realized gains from sale of participations (9,838,388) (1,043,816)

Realized losses from sale of participations 690,743 138,645

Investment expenses 120,000 187,131

Emoluments 65,591 0

Changes in other receivables (18,992) (22,222)

Changes in accrued income and deferred costs 185,196 265,427

Changes in trade receivables (52,353) 0

Changes in other short-term financial liabilities and passive derivative financial instruments

(63,596) (420,000)

Changes in accrued costs and deferred income 137,040 (75,322)

Net operating cash flow (2,663,396) (3,298,166)

Cash flow from investing activities Granted loans (1,890,000) (2,140,000)

Purchase of participations (5,629,899) (7,458,985)

Sale of participations 15,770,616 6,084,696

Effective interest income 252,965 118,126

Net cash flow from investing activities 8,503,682 (3,396,163)

Cash flow from financing activities Cash inflow from capital increase (par value) 0 0

Cash inflow from capital increase (agio) 0 0

Change in other short term liabilities 0 1,324,800

Purchase of own shares (15,568,162) (17,514,418)

Sale of own shares 19,902,455 15,665,381

Effective interest paid (6,991) (33,825)

Net cash flow from financing activities 4,327,302 (558,062)

Net change in cash and cash equivalents 10,167,588 (7,252,391)

Cash and cash equivalents at the beginning of period

4,715,083 14,882,671

Cash and cash equivalents at the end of period 14,882,671 7,630,280



RAtiO ANAlysis

Fiscal Year ended on March 31 2007/2008 2008/2009

Short term solvency ratios Current Ratio 13.81 4.48

Quick Ratio 13.81 4.48

Current Liability to Net Worth 0.01 0.03

Long-term Solvency or Financial Leverage ratios Total Debt Ratio 0.01 0.03

Equity Ratio 0.99 0.97

Debt-Equity Ratio 0.01 0.03

Fixed asset to Net Worth 0.82 0.91

Profitability ratios Return on Assets 27.10% -20.84%

Return on Equity 27.48% -21.41%

Return on Capital Employed 27.04% -20.64%

Market value ratios Market Price per share (Sept 7, 2009) (CHF) 14.50

EPS (CHF) (4.26)

Price/Earnings Ratio (3.41)

Book value per share (CHF) 19.88

Market Value to Book Value Ratio 0.73

Market capitalization (mCHF) 47,664,879

Outstanding shares 3,287,233

Method of research: Desk research using publicly available information



DisClAiMeR:

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This document has been drafted by the authors concerned as a non-binding opinion on the market situation and on the instruments of investment in question and compiled by the Dynamics Group AG in order to provide background information about the company. The research report has been accomplished on behalf of the company and Dynamics Group AG has been financially compensated. It is intended exclusively for the purpose of information.

The Dynamics Group AG has not individually verified the information and data on which this document is based. All information and data in this document originate from generally available sources which the author concerned or the Dynamics Group AG viewed as reliable at the time of drafting this document. However, no liability can be assumed for their correctness, accuracy, completeness and appropriateness – neither expressly nor tacitly. The contents of this document do not represent an assurance or guarantee by the author concerned or the Dynamics Group AG.

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