60323 frankfurt am main germany tel. +49 (069) 713 75 88...
TRANSCRIPT
Freiherr-vom-Stein-Str. 31
60323 Frankfurt am Main
Germany
Tel. +49 (069) 713 75 88 80
Fax +49 (069) 713 75 88 89
www.heliad.de
Quarterly Review
2 3Quarterly Report Heliad
Company and Portfolio Development
During the last quarter, preparation for initial public
offering was the main focus of activity. The company’s
admission documents were being prepared as well as
initial talks being held with capital markets analysts. At
the annual general meeting on 16 August 2004 in Bad
Homburg, shareholders were informed of the company's
and portfolio businesses' newest developments and final
necessary changes to the articles of association were
decided upon to deem the company “fit” for the stock
exchange.
Furthermore, the quarterly review at hand was issued,
where you can find the latest information on the
company's financial and asset position and its
profitability. The accumulated statement of profit and loss
(01.01.2004 - 30.09.2004) contains single valuation
adjustments that had been taken in line with the
preparations for mid-year closing on 30.06.2004. In this
context, we have made extensive corrections to the
investment portfolio to disallow for undisclosed potential
losses. The company's net asset value (NAV) amounts to
1,19 Euro per share and was assessed according to the
EVCA's (European Private Equity & Venture Capital
Association) conservative guidelines.
The portfolio featured varying developments during this
year's third quarter that can be summed up as
satisfactory. A highlight that stands out in the area of
direct investments is the initial public offering of portfolio
company Alnylam that was part of the Heliad Equity
Partner's investment portfolio from day one. Alnylam
(formerly Ribopharma), whose formation was
significantly supported by the management board of
Heliad Equity Partners, is currently valued with a
market cap of 110m USD which corresponds to a double-
digit multiple of our investment.
In the area of fund investments the Wellspring Team
managed the torrific sale of portfolio company RSG where
likewise within a holding period of 15 months an excellent
multiple of our investment could be attained.
In the course of its further development, Heliad Equity
Partners focuses on organic as well as external growth.
The aim is always to continually improve the company's
capital base and to achieve an increase of company value
through acquisition. A first step in this direction was the
company's capital increase towards the end of 2003,
during which VentureCap 2000 GmbH & Co. KG was
integrated.
Outlook
In recent years, the management board has looked into
various other alternatives of external growth that each
feature different profiles and are appealing to Heliad
Equity Partners for different reasons.
The forthcoming quarters are all about managing the
existing portfolio companies and exit preparations, the
improvement of cash management and the scheduled
liquidation of VentureCap 2000 GmbH & Co. KG from
which an accrual of liquid funds can be expected for
Heliad Equity Partners.
Dear Shareholders, dear Business Partners,
When Heliad Equity Partners was founded in 2000
its main target was to set up a diversified portfolio of
businesses in various business stages, branches
and regions and to make it accessible to a broad
public of investors. Up to this day this has not
changed. With a diversified portfolio we are
addressing private investors whose potential to
invest in attractive Private Equity assets usually fails
at the high minimum capital, as well as the medium
to long-term oriented institutional investor who is
looking for a Private Equity component in his
portfolio.
A good four years after our formation we have come
a significant step further. During the first investment
cycle in our initial years we have financed several
direct investments in various branches and have laid
the foundation in the area of Fund Investments with
the participation in VCH Best-of-VC. The recessive
economic environment and the capital market
impairment made it difficult during those years to
save the portfolio from damages, even though the
portfolio was not affected as strongly as the
industry's average.
Looking ahead, the economic situation appears to
stabilise, even though many structural changes -
especially in Germany - are impending. With our
active portfolio and future growth potential we
continue to pursue our aim to obtain returns above
the industry's average with a diversified portfolio for
various groups of investors.
We cordially invite you to accompany us along the
way.
4 5
Fascination Private Equity
Quarterly Report Heliad
What is Private Equity?
What types of Private Equity Investments are there?
1 Vgl. EVCA (2004): Why and How to Invest in Private Equity, www.evca.com
Funding is typically granted in connection with
buy-out transactions.
According to the European Private Equity and Venture
Capital Association, EVCA, there are a multitude of
reasons for an investment in Private Equity¹:
In the last 20 years, Private
Equity investments were able to achieve an
outperformance compared to the MSCI and other
major indices.
While in many cases equity funds keep the
same security with slight variations, Private Equity
investors are true stock pickers. They have the
ability to identify upcoming businesses even in an
environment with low inflation and marginal
growth.
Private Equity features only limited
correlation between the equity and bond market
and constitutes an excellent possibility to diversify
a portfolio and lower the overall risk at a similar
return ratio.
Why should you invest in Private Equity?
Long-term Outperformance:
Stock-picking":"
Minor Correlation:
Great Contingency of Private Investments in GDP:
Utilisation of Insider Information:
Economic Aspect:
The largest part of
the European Domestic Product is generated by
private businesses, not the ones admitted to official
quotation. Consequently, the investment universe
for Private Equity investors is much larger than the
one for equity funds that invest in the stock market.
Private Equity investors have
legitimate access to insider information, can
therefore better evaluate a business' chance of
success and can t effect changes in the portfolio
company's strategy and management.
Private Equity investors support
entrepreneurs that set up businesses that are
strong in growth and in many cases establish new
technologies in the market.
The declining economic development of the last years, in
our view, began to find its ground in 2003. This was
expressed particularly through a consolidation
movement:
“Weaker” businesses were a) bought by “stronger” ones
or b) were seeking out, by way of co-operation/merger,
other “weak” businesses to reduce fixed costs and
become “strong” together or c) went insolvent and were
liquidated. Therefore, a few Private Equity Investors
focus, again more on Mergers & Acquisition and on
expansion financing. This tendency was accompanied by
a slightly brightening stock market climate that
loosened the Private Equity investors reluctance to invest
a little which had deadlocked over the past years.
The fundamentally more positive investment climate,
however, did not bring about a recovery of the valuations
investors have to pay and which had declined strongly in
recent years. Low evaluations and harder terms in favour
of the investors were for the most part continued to be
enforced by professional Private Equity investors. In
Venture Capital business in particular terms were
What Phase is the Private Equity MarketCurrently In?
employed that would give new investors control over the
respective financed venture as well as the subsequent
company shares' selling process even if they did not
possess the majority of company shares (co-sell rights
and obligations, drag-along and tag-along rights,
liquidation etc.). While in the US such terms of contract
have been deemed standard for many years this “tough”
equity business has only been proliferated across
Germany in recent years.
Conclusively, it can be said that a good foundation has
been laid for Private Equity Investors who want to invest
now. The conditions are still at an attractive level. They
are the basis for medium to long-term capital gains above
the classic stock market indexes, e.g. The MSCI.
In the broad sense, Private Equity is ranked among the group of Alternative Investments, together with, for example, real estate, hedge funds and natural resources. Private Equity refers primarily to investments in companies that are not admitted to official quotation. Such an investment calls for an entrepreneurial eye, a specific knowledge and comes with an active, value-oriented management approach.
Within the asset category Private Equity four different segments can be differentiated: Venture Capital, Buy-out, Special Situation and Mezzanine.
Venture Capital:
Buy-Out:
Special Situation:
Mezzanine:
Venture Capital denotes equity participation in
predominantly new businesses, not previously listed on
the stock exchange, that were attributed an
outstanding growth potential, despite minor current
profitability.
Buy-out denotes the funding of established
businesses where a change of the shareholder
structure is carried out for various reasons. A buy-out
fund typically acquires complete control over the target
business and recapitalizes it with the aid of structured
funding techniques.
This describes investments in companies that
are in a special situation (one-time opportunities), i.e.
because of structural changes in the business sector,
changes to the legal framework or for company-
specific reasons. Typically, these are strains on
liquidity, project funding, shareholder bail-outs, etc.
Mezzanine refers to the investment of typically
higher interest-bearing, but lower secured committed
assets (compared to first-class secured bank loans) in
connection with shareholder capital elements, like
call options and conversion rights. Mezzanine
6 7
The Investment Approach of Heliad Equity Partners
We chose the mission statement “Specialists in Corporate
Development” for Heliad Equity Partners. This
demonstrates that it is not our philosophy to act as a
passive administrative body of Private Equity investments
but rather to create value within the framework of an
active portfolio management and intensive support of our
portfolio companies. To assume this task in regard to
companies in different stages, sectors and regions in order
to offer our shareholders a sufficiently diversified portfolio,
is challenging and can only be fulfilled by several
specialised teams everything else would be an
overestimation of one's own capabilities.
By means of fund investments, Heliad Equity Partners has
deployed further teams that each covers a Private Equity
segment with their own investment strategy to the best
of their ability. From Venture Capital to Buy-out, from
Germany to the USA, from company formation to
market-leading global corporations all return/risk
profiles are actively developed at Heliad Equity
Partners by the respective “Specialists in Corporate
Development”.
The current portfolio's main focus lies in the area of
direct investments that are governed by VCH Management.
With the medium-term aim to compile a well-balanced
portfolio of various specialised teams, Heliad Equity
Partners wants to strengthen the area of fund investments
in the future (that is currently covered by participating in
VCH Best-of-VC). In the individual examination of the Heliad
Equity Partner's portfolio on the subsequent pages, all
teams that have contributed to the value development of
Heliad Equity Partners, are depicted side by side.
Why Do Specialists Make Sense?
The Investment Approach of Heliad Equity Partners
Quarterly Report Heliad
Just like in many asset categories, there is an enormous difference between the average and the top quartile of all management teams. The following chart describes the connection within the Private Equity market:
In the first place, it is difficult to assess which teams are really top quartile. There is a multitude of methods, tests and indicators to reach a “correct” decision from the outset but a firmed conclusion can only be made years later. However, it is very likely that in the case of deploying specialists in an investment segment there is a far greater chance that the overall result (average result of all teams) can ultimately be found among the top quartile, as opposed to a single team covering a broad spectrum of investment opportunities on their own. And that is why Heliad Equity Partners work with “Specialists in Corporate Development”.
9
Financial Data At A Glance Portfolio
Quarterly Report Heliad
Stock Price
30.09.2004
* Net Asset Value (simplified): Valuation standard for the inner/fundamental value per share. Put in simple terms, this is calculated by reducing an investment's acquisition costs by applicable write-offs caused by missed targets or by increasing it with potential write-ups as a result of higher prices paid by market participants (i.e. in a financing round).
1,19 - - -
DateNet Asset Value (NAV)*
Stock marketvalue
Premium (+) / Discount (-)
Changes comparedto previous quarter
Portfolio
Team Investmentstyle Branches Region Type of Invesment
VCH
Wellspring
Platinum
Heidelberg Innovation
Global Life Science Ventures
TVM Techno VentureManagement
TechnoStart
Special Situations
Buyout / Special Situations
Buyout / Special Situations
Venture
Venture
Venture
Venture
Diversified
Old Economy /Diversified
Technology-oriented /Diversified
Life Sciences
Life Sciences
Information- and Communication-Technology
Applied physicsLife Sciences
D
North America
USA / Europe
D
USA / Europe
USA / Europe
D
Direct-Investments
Fund-Investments
Fund-Investments
Fund-Investments
Fund-Investments
Fund-Investments
Fund-Investments
Financial Data Technical Data
PositionsAmount (in Euro / in %)as of 30.09.2004
Book Equity
Financial Assets
Cash and Cash Equivalents
Interest-bearing Liabilities
Equity / Financial Debt Ratio
10.931.948
10.281.336
551.089
0
100 %
Stock market
Tickersymbol
ISIN Code
Frankfurt, regulatedMarket/Prime Standard (Submitted)
(Submitted)
DE0006047293
8
VCH Management
Head office
Website
Weighting
In Heliad Portfolio
Investment Style
Portfolio Phase
Current Portfolio
Portfolio News
Frankfurt am Main, Germany
www.vch-group.de
69 %
Special Situations
Majority and minority shares by companies domiciled in Germany.
In demand are small and medium-sized companies whose shares
can be acquired cheaply in a special situation (change of shareholder,
growth financing with hedging instruments, etc.).
www.biovision.de, www.berlinheart.com, www.metalife.de
www.alnylam.com, www.itn-nanovation.com, www.mcn-tele.com
Successful initial public offering of Alnylam Pharmaceuticals on
NASDAQ (USA), which were advised by Heliad Equity Partners since
their early stages. The whole company's current market capitalization is
110m USD rates the used capital as a double-digit multiple.
Recent investment ItN Nanovation: At the end of the second quarter
Heliad Equity Partners invested in the German nanotechnology
company ITN Nanovation. The strong-growing medium-sized company
employs approx. 50 members of staff at their sites in Halberstadt and
Saarbrücken.
Biotechnology enterprise Apovia had to file for insolvency after a failed
financing round. The company was subsequently cleared off the current
portfolio.
Portfolio development (since 2000)Start Closure
Successive funding
Portfolio sales / Write off
11
Portfolio
Quarterly Report Heliad 10
Platinum Equity Partners
Head office
Website
Weighting
In Heliad Portfolio
Investment Style
Portfolio phase
Current Portfolio
Portfolio News
Los Angeles, USA
www.platinumequity.com
8 %
Buyout / Special Situations
Management Buy-out and Buy-in transactions in the USA in
technology-oriented and traditional industry sectors
(IT, chemical industry, logistics, etc.). In demand are large,
cash-flow positive international businesses offering mission
critical products or services and can be acquired cheaply in a
special situation (particularly complex transactions with no bidder
competition, etc.).
www.hays-logistics.com, www.compucom.com, www.dystar.com
Currently no website: Aether Transportation
Recent investment CompuCom Systems: IT Services enterprise with
a transaction volume of 1,4bn USD in 2003. Listed company
CompuCom will be taken off the stock market in line with the
transaction (PIPE transaction).
Recent investment Aether Transportation: Division in the area of
wireless communication that was identified by the Aether Systems
group of companies as no longer belonging to core business and was
subsequently acquired in a carve out.
Recent investment Dystar: The German pharmaceutical and chemical
companies BASF, Hoechst/Aventis and Bayer are selling their textile
industry paints business to Platinum. Dystar employs 3.900 members
of staff in 20 countries and generated revenues of approx. 1bn USD in 2003.
Wellspring Capital Partners
Head office
Website
Weighting
In Heliad Portfolio
Investment Style
Portfolio phase
Current Portfolio
Portfolio News
New York, USA
www.wellspringcapital.com
9 %
Buy-out /Special Situations
Management Buy-out and Buy-in transactions in North America in
classic industry sectors (“old economy”). In demand are cash-flow
positive businesses that can be acquired cheaply in a special situation
(i.e. vendor insolvency, complex transactions with no bidder competition,
etc.).
www.mfdg.com, www.edwinwatts.com.
Currently no website: Vatterott Education Holdings Inc.,
Residental Services Group, JW Aluminium
Successful sale of air conditioning manufacturer RSG Residential
Services Group. A multiple of the initial investment was achieved within
15 months.
Recent investment IMS International Mills Services: Company providing
services for the steel industry with a high market share and profitable
core business after restructuring.
Successful recapitalisation at JW Aluminium: Due to over-performance
of reached targets profits could be distributed earlier.
Portfolio development (since 2003)Start Closure
n.a.Successive funding
Portfolio sales / Write off Portfolio development (since 2004)Start Closure
n.a.Successive funding
Portfolio sales / Write off
13
Portfolio
Quarterly Report Heliad 12
Global Life Science Ventures
Head office
Website
Weighting
In Heliad Portfolio
Investment Style
Portfolio phase
Current Portfolio
Portfolio News
Munich, Germany
www.life-science-ventures.com
5 %
Venture
World-wide diversified portfolio of selected Life Science Companies.
The main focus is on Germany and the USA.The companies may be
at different stages of their development but the focal point is on
start-up financing in particular.
www.xantos-bio.de, www.combinatorx.com, www.pieris-ag.de
www.cyberkinetics.com, www.intercell.com, www.coleypharma.com,
www.glycart.com, www.convergemed.com, www.agendia.com,
www.carex.fr, www.neurogesx.com, www.nitec-pharma.ch
Appointments at the Life Science Ventures Team: Dr. Holger Reithinger
(Principal, as of October) and Dr. Bert van Toor (Investment Manager,
as of June) introduce their contacts and knowledge to the team.
Portfolio company Xantos Biomedicine receives successive financing in
the third financing round. With the capital raised significant technological
milestones in the areas of cancer and metabolic illnesses shall be achieved.
Recent investment Nitec Pharma: Atlas Venture and Life Science Ventures
invest 10m Euro in a Merck KGaA spin-off located in Switzerland. Nitec
Pharma develops medication designed to combat inflammation diseases.
Portfolio development (since 2001)Start Closure
Successive funding
Portfolio sales / Write off
Heidelberg Innovation
Head office
Website
Weighting
In Heliad Portfolio
Investment Style
Portfolio phase
Current Portfolio
Portfolio News
Heidelberg, Germany
www.heidelberg-innovation.de
2 %
Venture
Heidelberg Innovation invests in emerging Life Science businesses in Central
Europe with the main focus on Germany. The portfolio is made up of approx.
25 companies in all stages of development, ranging from formation to initial
public offering and trade sale, MBO/LBO, etc. respectively.
www.cellzone.com, www.graffinity.com, www.ars-arthro.de, www.febit.com,
www.mtm-laboratories.com, www.microcuff.com, www.iongate.de,
Www.mbiotech.de, www.europroteome.com, www.axxima.com, www.biovision.de,
www.berlinheart.com, www.axovan.com, www.m-phasys.com,
www.cenixbioscience.de, www.therascope.com, www.heidelberg-pharma.de,
www.biofrontera.de, www.pelikantechnologies.com, www.xerion-pharma.com,
www.emblventures.com, www.the-genetics.com.
Currently no website:
STM Medizintechnik GmbH, SNP Gene ID GmbH.
Additional funding at IonGate: The Frankfurt based biotechnology enterprise
receives further funding acceptance and in line with this enforces its advisory
board with the addition of Lars-Eric Uttermann of Amersham Biosciences.
Portfolio company Biofrontera receives a strategic investment from
DNAPrint (USA) amounting to 20m Euro. Using capital resources Biofrontera
wants to press ahead with clinical developments and ease their access onto
the American market.
Portfoliodevelopment (since 2001)Start Closure
Successive funding
Portfolio sales / Write off
15
Portfolio
Quarterly Report Heliad 14
TVM Techno Venture Management
Head office
Website
Weighting
In Heliad Portfolio
Investment Style
Portfolio phase
Current Portfolio
Portfolio News
Munich, Germany
www.tvmvc.de
5 %
Venture
World-wide diversified portfolio of selected businesses in the areas of
IT and Communications Technology. The main focus is on Germany
and the USA with the aim to enable the company's transatlantic expansion.
The companies may be at different stages of their development but the
focal point is on start-up financing in particular.
www.aventon.com, www.arteris.net, www.clearsightsystems.com
www.enigmasemi.com, www.hymite.com, www.itac.de
Aventeon opens a branch in Bangalore, India. The branch enables
Aventeon to significantly increase its staff size at manageable costs
and offering more capacity to more customers.
Hymite reaches a significant milestone in the development of certain
cases for electronic circuits.
Portfoliodevelopment (since 2002)Start Closure
Successive funding
Portfolio sales / Write off
TechnoStart
Head office
Website
Weighting
In Heliad Portfolio
Investment Style
Portfolio phase
Current Portfolio
Portfolio News
Ludwigsburg, Germany
www.technostart.com
2 %
Venture
TechnoStart invests in approx. 15-20 emerging companies, mainly in
Germany. The team interested in platform technologies focuses on
the sectors Applied Physics (especially nanotechnology) and Life Sciences.
The main focus is on early business stages.
www.febit.com, www.graffinity.com, www.itn-nanovation.com,
www.m-phasys.com, www.cenix-bioscience.de, www.complexbiosystems.de,
www.novaled.de, www.blue-membranes.com.
Currently no website:
Spinox Ltd. (Oxford, GB), TF Instruments, Fludicon.
TF Instruments reaches a technological breakthrough in the diagnosis
of Alzheimer patients as part of a clinical trial by the Central Institute
for Mental Health in Mannheim.
TechnoStart participation Graffinity Pharmaceutical announces fusion
with Swiss Myocontract AG. The new company will be known as Santhera
Pharmaceuticals and develops neuropathic and metabolic drugs.
TechnoStart participation Cenix and American biotech company Ambion
announce the launch of their new RNAi library.
Portfoliodevelopment (since 2001)Start Closure
Successive funding
Portfolio sales / Write off
17
Balance Sheet Profit- and LossStatement
Quarterly Report Heliad
Assets (in Euro)
Total Assets 10.931.347
30.09.2004
Intangible Assets
Financial Assets
Long-term Assets
31.537
10.281.336
10.312.873
Assets
Tax Receivables 20.110
Other Income
Depreciation on Intangible Assets
Other Expenses
Other Interest Income
Depreciation on Financial Assets
Operating Result
Taxes
Loss
0
1.087
176.317
5.665
0
-171.739
0 0 0
171.739
20 25.000 25.706
3.2631.088
68.578 195.779
3.262
442.925
25.149 10.978 41.366
2.954.302 40.000 110.000
-3.375.320 -73.688 -241.969
-0,27
3.375.320 73.688 241.969
Liabilities (in Euro)
Total Liabilities 10.931.947
30.09.2004
Subscribed Capital
Additional paid-in Capital
Accumulated Deficit
8.596.432
9.382.701
-7.047.185
Equity
Provisions 7.000
Trade Payables 14.729
5.864.717
30.09.2003
35.888
3.977.703
84.915
5.864.717
30.09.2003
3.369.232
5.658.573
-3.166.215
1.500
1.628
Liabilities
Profit- and Loss Statement (in Euro)
16
01.07.-30.09.04 01.01.-30.09.04
01.07.-30.09.03 01.01.-30.09.03
Cash and Cash Equivalents (start of period)
Proceeds (+) / Cash Outflow(-)Form Operating Activities
Proceeds (+) / Cash Outflow (-)
From Investing Activities
Proceeds (+) / Cash Outflow (-)From Financing Activities
Increase (+) / Decrease(-)Of Cash and Cash Equivalents
Cash and Cash Equivalents (end of period)
Cash Flow Statement (in Euro)
01.01.-30.09.04 01.01.-30.09.03
-3.375
-4.953 -718
32-4.990
8.951 0
1.608551
-242
4.013.591
Other Receivables 69.603 157.719
Cash 551.089 1.608.492
General Notes
18 19
The report of Heliad Equity Partners GmbH & Co.
KGaA has been prepared in accordance with the
standards of the International Accounting Standards
Board (IASB).
Thereby, all of the obligatory International Accounting
Standards (IAS), interpretations of the International
Reporting Interpretations Committee (IFRIC) and
interpretations of the Standard Interpretations
Committee (SIC) have been applied.
Fixed Assets
Current Assets
Provisions
Purchased intangible assets are capitalised in
accordance with IAS 38 when it is probable that the
use of the asset is associated with a future economic
benefit and the costs can be determined on a reliable
basis. Purchased intangible assets are capitalised at
acquisition cost and are depreciated on a scheduled
basis over the estimated useful life of 10 years.
Financial assets, accounted for as held-for-trading
assets, have been valued at their fair value. Changes
of the fair value are recognised in the profit and loss
statement (IAS 39).
The accounts payable and the other assets are valued
at their nominal value or respective cost of acquisition.
The other provisions are created when the company
has a present obligation (legal or constructive) as a
result of a past event, an outflow of resources
embodying economic benefits is likely to be required
to settle the obligation, and the obligation amount can
be reliably estimated.
Provisions for future expenses have not been created.
Liabilities
The liabilities are balanced at their historic carrying cost.
Fixed Assets
The intangible assets contain necessary software licenses
in connection with the administration of the share
register which have been valued with their acquisition cost.
The devolopment of Fixed Assets is summarized below:
Other Income
Expenses
Financial Expenses
Other income contains value appreciation of securities
held as fixed assets in the amount of EUR 40 k.
Expenses contain in particular management fees in
the amount of Euro 187 k, losses in connection with
bad debt of EUR 91 k and other administration
costs of Euro 165 k.
The item contains the changes in the fair value of the
financial assets (IAS 39).
In the reporting period depreciations according to IAS 39
have been made with respect to Biovision AG, das://blaue.
Buero GmbH, Q1 Carrier AG, apovia AG and VentureCap
Beteiligungen 2000 GmbH & Co. KG.
Current Assets
Shareholders Equity
Capital Reserve
The securities have been valued at their respective
acquisition cost. The accounts payable and the other
assets are valued at their face value and have
maturities up to one year.
The bank deposits mainly contain short-term time
deposits.
The resolution of the annual shareholders meeting
on 26. September 2003 provided for the allowance
to increase the subscribed capital from EUR 4.627.200
to EUR 7.996.432.
In connection with the capital increase the company
recived an interest in the limited partnership
“Venture Cap Beteiligungen 2000 GmbH & Co.KG”
(Bayreuth, HR A 3021) in the amount of a nominal
value of EUR 11.568.000. The interest was transfered
by VCH Treuhand- und Verwaltungs GmbH. The closing
date was 31. December 2003. The remark in the trade
register was made on 16. March 2004.
The resolution of the annual Shareholders meeting
provided for the allowance to increase the subscribed
capital by EUR 600.000 to EUR 8.596.432. The remark
in the trade register was made on 5. July 2004.
The increase in capital results from the premium on
capital increases (in total Euro 3.724.128).
Provisions
Liabilities
Other Disclosure
The other provisions contain expected future payments
for the costs of the annual statement of account for
the ongoing year.
Liabilities have maturities up to the year.
On the closing date of the balance sheet, neither
contingent liabilities nor other financial obligations
not visible from the balance sheet or from the statement
of income existed.
The company`s subscribed capital amounts to
EUR 8.596.432 and is composed of 8.596.432
registered shares with proportional interest of EUR 1,00
in the capital stock of the company.
Following the resolution of the shareholders meeting on
13. November 2000 the management is allowed, upon the
approval of the supervisory board, to increase the capital
of the company up to EUR 100.000 until 12. November
2005. With the resolution of the shareholders meeting on
16. August 2004, the partner liable to unlimited extent,
has been authorized to increase the subscribed capital by
30. June 2009 with the consent of the supervisory board
by issuing up to 4.198.216,00 new registered shares for
cash or non-cash contributions once or in several times
up to the total amount of Euro 4.198.216,00 (authorized
capital). The partner liable to unlimited extent may
exclude the shareholder's rights of subscription with
consent of the supervisory board.
The shareholders`meeting on 16. August 2004
unanimously authorized the management of the company,
as set forth in § 71 Abs. 1 Nr. 8 German Corporation Act,
to acquire the company's own shares in an amount of up
to 10% of subscribed capital. The authorization may occur
unmitigated or in parts.
Quarterly Report Heliad
B. Accounting and Valuation Methodology
A. General Notes
C. Notes to the Profit- and Loss Statement
D. Notes to the Balance Sheet
I. Intangible
Assets
Concessions
II. Financial Assets
a) Investments
b) Securities
Sum:
Previous Year
35.887
3.337.703
640.000
4.013.590
Book Values
30.09.2004
31.537
9.625.561
655.775
10.312.874
Overview of Assets (Amounts in EUR)
I. Intangible
Assets
Concessions
II. Financial Assets
a) Investments
b) Securities
Sum:
01.01.2004
43.500
9.573.376
1.000.000
10.616.875
30.09.2004
43.500
14.507.497
1.055.775
15.606.772
Inflow
0
4.934.121
55.775
4.989.896
Overview of Assets (Amounts in EUR)
Outflow
0
0
0
0
I. Intangible
Assets
Concessions
II. Financial Assets
a) Investments
b) Securities
Sum:
01.01.2004
8.700
1.887.633
440.000
2.336.333
30.09.2004
11.963
4.881.936
400.000
5.293.898
Inflow
3.263
2.994.303
0
2.997.585
Cumulated Depreciation
Outflow
0
0
40.000
40.000
General Notes
20 21
The company does not employ own staff. The partner
liable to unlimited extent, VCH Management GmbH,
is solely authorized and obliged to manage the company.
Managing Directors of VCH Management GmbH:
Peter Brumm, Frankfurt
Andreas Lange, Frankfurt
Ralph Konrad, Hürth
The following persons are appointed as members of the
supervisory board:
Prof. Dr. Armin Heinzl (Chairman), Mannheim, Germany,
Professor
Dr. Wolf Bertling, Nuremberg, CEO November AG
Volker Rofalski, Munich, CEO Tradecross AG
Payments to the supervisory board during the reporting
period account for Euro 3 K.
Frankfurt, September 2004
Andreas Lange Peter Brumm Ralph Konrad
List of Participations
We undertook this assignment in November 2004 in
our offices in Bayreuth.
The starting point of our activities was the annual
statement of account of 31. December 2003.
The preparation of the report was conducted in
accordance with the International Financial Reporting
Standards (IFRS). The IFRS comprise the newly
declared IFRS, published by the International
Accounting Standards Board (IASB), the interpreta-
tions of the International Reporting Interpretations
Committee (IFRIC) as well as the interpretations of
the Standing Interpretations Committee (SIC).
Accounting material, the complete vouchers, as well
as account statements by the company's banks were
used as underlying sources for this preparation. All
requests for information, explanations, and proofs of
evidence were adduced voluntarily by the management
as well as by employees appointed to provide information.
In addition, the Management Board has confirmed us
in writing for the profession common statement
of completeness that all obligatory assets, liabilities,
risks and matching of the accountancy have been
considered, all expenses and income have been
included, all necessary disclosures have been made
and all statutes of liabilities have been pointed out.
The type, coverage and result of our preparation and
auditing activities have been documented in our
employment papers. The administrative accounting
and asset accounting of the company is being
managed with DATEV system, Nuremberg.
In particularly, we have focused our auditing activities
on the financial assets, on the other securities, on the
liquid assets, as well as on the long-term liabilities.
The non-current assets were audited especially in
regard to the additions and disposals. Additions were
audited especially in regard to permissible capitalizations
and in regard to the completeness of included
capitalization costs. Furthermore, we convinced
ourselves of the accuracy of anticipated depreciations.
The bank balances were mainly audited by presented
account statements.
While auditing the shareholder's equity, we adjusted
the capital stock with excerpts from the Commercial
Register and protocols from the Annual General Meeting.
The accounts payable as well as liabilities payable to
associated companies were mainly audited in regard
to the complete and correct inclusion of creditors as
well as the transaction of payments.
The audit of the other operating expenses occurred
with targeted random samples in individual substantial
expense items.
Quarterly Report Heliad
E. Audit Assignment
das://blaue.buero GmbH
VentureCap Beteiligungen
2000 GmbH & Co.KG
Hamburg
Bayreuth
Euro
76.511
8.889.823
%
41,83
92,65
LFY in Euro
-283.128
-363.114
Location Equity Shareholding Net income/loss
General Notes
22 23
F. Certification
After the completion of our assignment we grant the
following certification:
The quaterly report at hand as of 30. September 2004
was prepared on the basis of the accountancy of the
Heliad Equity Partners GmbH & Co. KGaA, Frankfurt, in
accordance with International Financial Reporting
Standards (IFRS). We convinced ourselves of the
regularity of the underlying accountancy.
Bayreuth, 26. November, 2004
Oberfränkische Revisions- und Treuhandgesellschaft mbH
Steuerberatungsgesellschaft
Wirtschaftsprüfungsgesellschaft
Dr. Jürgen Rosenschon Matthias Waha
Accountant Tax advisor
Quarterly Report Heliad