s-ge financial report 2013

2013

FINANCIALREPORT

Switzerland Global

Enterprise (S-GE)

is Osec’s new name

FINANCIAL REPORT 2013

3

Contents


Performance report 4

Balance sheet 6

Statement of operations 7

Cash flow statement 8

Statement of changes in capital 9

Annex 12

Report of the auditors 16

Supervisory Board 18

Management 19


5

Performance report 2013

year in 2012, sponsors’ contributions rose again, reaching CHF 0.9 million in the reporting year. At the same time, consulting income saw a further substantial improvement. Our presence at several trade fairs was called off in the earlier part of the year owing to a lack of participants, resulting in lower revenue from trade fairs.

MEMBERSHIP RISES AGAIN In the 2013 business year, S GE posted a further increase in membership: 2157 companies and institutions were members at the end of the year under review, an increase of over 7%. The income from membership subscriptions also continued to grow, though not as strongly since newly founded companies as well as small and medium-sized enterprises benefit from lo-wer membership fees, and most of the new members fell into these categories.

PAYMENTS FROM THE CONFEDERATION Payments from the Confederation rose by CHF 0.97 million as planned, which was attributable to budget increases for all three service mandates.

EMPLOYEE NUMBERSAt the end of 2013, S-GE had a total of 115 employees at its offices in Zurich, Lausanne and Lugano, accounting for 100.55 full-time positions. The proportion of part-time employees was 37% on 31 December 2013. The proportion of women in senior posts was 36%.

SALARIES AND SALARY COMPONENTSOn the basis of the performance management system, fixed gross salaries and variable performance-related components were paid in the reporting year as follows:

The launch of the Switzerland Global Enterprise brand and the renaming of the organization in the reporting year estab-lished a consistent brand platform at home and abroad. At the same time, the Switzerland Global Enterprise brand and the value promise “enabling new business” embody a value system shared by all employees, underpinning their endeavors to crea-te inspiring, effective and expert solutions for our customers.

ANNUAL FINANCIAL STATEMENT The annual financial statement shows an operating income of just over CHF 43 million. This is balanced by operating expenses of an almost equal amount. The financial result came in with a surplus on expenses of CHF 65,249, resulting in a profit for the year of CHF 34,918.

EXPORT PROMOTIONIn Export Promotion, 3298 initial consultations worldwide led to 712 detailed consultancy projects. In addition, around 60 events were held in Switzerland to give entrepreneurs an over-view of the business opportunities in a wide range of foreign markets. Overall, 5694 companies benefitted from our support in the reporting year.

IMPORT PROMOTIONIn Import Promotion, a total of 8213 contacts were made in the framework of the Swiss Import Promotion Programme (SIPPO). As a result of our activities, 2598 workplaces were created at companies in our partner countries (developing countries) and export sales growth totaling CHF 48,7 million was generated.

INVESTMENT PROMOTIONIn the framework of our Investment Promotion activities, 374 potential corporate relocations were referred to the cantons in 2013, which was slightly above the ambitious target set by our sponsors.

STRATEGIC BUSINESS AREAS The strategies of all three business areas were revised during the past year to ensure that they are ready to meet the challen-ges of the future. The Communication and Marketing activities were reorganized and aligned with present-day requirements.

MARKED RISE IN TURNOVER ON CUSTOMER ACCOUNTS Turnover on customer accounts amounted to CHF 8.71 milli-on, a new record performance and significantly higher than the previous year s figure of CHF 7.65 million. Following a difficult

in CHF Gross salaries Performance- Total related (gross)

2012

Executive management 1,101,513 207,460 1,308,973

Other staff 10,712,376 989,257 11,701,633

2013

Executive management 996,797 226,950 1,223,747

Other staff 11,307,881 1,169,327 12,477,208

HIGHER EXPENSES AND INFRASTRUCTUREHigher costs for exhibition stand construction, the initial costs for IT outsourcing and various planning services relating to the comprehensive and essential renovation of the office premises led to a planned increase in the expenses under “Infrastructure, IT, administrative expenses”.

CONTRIBUTIONS TO THIRD PARTIESPayments to the Federal Department of Foreign Affairs (FDFA) to cover the salaries of personnel in the Swiss Business Hubs are now recognized under “Contributions to third parties”, pre-viously shown under “Other operating expenses”. The figures for 2012 were adjusted accordingly. For the year under review, the FDFA waived the payment of these costs, with the result that the expenses under this item are lower.

MARKETING ACTIVITIESThe expenses for marketing activities are summarized under “Marketing, representation”. This item contains in particular expenses for customer events and Investment Promotion ac-tivities abroad.

OTHER OPERATING EXPENSES“Other operating expenses” contains mainly services rendered by private suppliers which were essential for the provision of our information and consultancy services.


7

Balance sheet as of 31.12.2013 (in CHF)

ASSETS Annex 2013 2012

CURRENT ASSETS

Liquid assets 1 9,684,058 10,136,697

Trade accounts receivable 2.1 1,294,929 1,517,098

Other receivables 2.2 816,888 279,108

Accruals 3 2,533,139 2,441,459

Current assets 14,329,013 14,374,362

FIXED ASSETS

Financial assets 4.1 729,114 725,486

Property 4.2 10,928,153 8,683,480

IT hardware 4.2 3,577 50,075

Fixed assets 11,660,844 9,459,041

TOTAL ASSETS 25,989,857 23,833,403

LIABILITIES Annex 2013 2012

CURRENT LIABILITIES

Trade accounts payable 5.1 2,314,031 2,967,970

Other current liabilities 5.2 496,851 558,828

Deferrals 6 6,812,531 6,059,217

Current liabilities 9,623,413 9,586,015

NON-CURRENT LIABILITIES

Non-current provisions 7 2,000,000 0

Non-current liabilities 2,000,000 0

FUND CAPITAL

Fund capital (committed funds 1) 5,097,655 4,759,198

Fund capital (committed funds 2) 2,775,643 3,136,789

Fund capital 7,873,298 7,895,987

BUSINESS DEVELOPMENT FUND

Business development fund 345,891 239,064

Business development fund 345,891 239,064

ORGANIZATION CAPITAL

Paid-in capital 8 4,900,006 4,900,006

Revaluation reserves 9 818,238 818,238

Acquired free capital 394,093 360,911

Annual result 34,918 33,182

Organization capital 6,147,255 6,112,337

TOTAL LIABILITIES 25,989,857 23,833,403

OPERATING INCOME Annex 2013 2012

TURNOVER ON CUSTOMER ACCOUNTS

Sponsoring 900,619 647,297

Consulting 3,186,292 2,497,867

Trade fairs, events 3,962,889 4,048,698

Other operating income 665,555 455,098

Turnover on customer accounts 8,715,355 7,648,960

Member contributions 1,439,900 1,351,112

Payments from the Confederation 31,690,907 30,713,994

Payments from the cantons 1,203,712 1,203,716

Total operating income 43,049,875 40,917,783

OPERATING EXPENSES Annex 2013 2012

Personnel expenses 10 17,335,724 16,863,772

Infrastructure, IT, administrative expenses 8,876,456 7,472,073

Contributions to third parties 11 2,218,982 4,348,010

Marketing, representation 7,694,786 8,936,081

Other operating expenses 11,12 6,575,934 4,739,550

Depreciation and amortisation 265,998 247,571

Operating expenses 42,967,881 42,607,057

Operating result 81,994 -1,689,274

Financial result 13 -65,249 5,520

Result 16,745 -1'683'754

FUND MOVEMENTS

Movements funds 1, net -338,457 1,402,178

Movements funds 2, net 463,457 553,823

Movements, business development fund -106,827 -239,064

Fund movements 18,173 1,716,937

ANNUAL RESULT 34,918 33,183

Statement of operations 01.01.2013 - 31.12.2013 (in CHF)


9

1.2 Committed funds 2

Balance as of 1.1.2012

Credits

Additions

Consumption

Disposals / use



Credits

Additions

Consumption

Disposals / use


Cash flow statement (in CHF) Statement of changes in capital (in CHF)

2013 2012

CASH FLOW FROM OPERATIONS

Annual result 34,918 33,182

Depreciation of tangible assets 265,998 247,571

Increase in receivables -315,610 -547,352

Increase in accruals -91,679 -27,788

Decrease/increase in current financial liabilities -715,917 572,084

Increase in financial assets -3,627 -3,609

Increase in deferrals 753,315 736,860

TOTAL CASH FLOW FROM OPERATIONS -72,603 1,010,948

CASH FLOW FROM INVESTMENT ACTIVITY

Investments -2,464,173 -10,728

Divestments 0 0

TOTAL CASH FLOW FROM INVESTMENT ACTIVITY -2,464,173 -10,728

CASH FLOW FROM FINANCING ACTIVITY

Net increase in non-current financial liabilities 2,000,000 0

Net increase / net decrease in committed funds 84,137 -1,769,327

TOTAL CASH FLOW FROM FINANCING ACTIVITY 2,084,137 -1,769,327

Change in cash and cash equivalents -452,639 -769,107

SUBSTANTIATION

Opening cash balance 10,136,697 10,905,804

Closing cash balance 9,684,058 10,136,697

TOTAL CHANGE IN CASH AND CASH EQUIVALENTS -452,639 -769,107

1. FUNDS

1.1 Committed funds 1


Credits

Additions

Use

Disposals / use



Credits

Additions

Use

Disposals / use


Location promotion

901,000

0

0

0

-287,000

614,000

614,000

0

1,470,000

0

0

2,084,000

Import promotion

705,000

0

260,000

0

0

965,000

965,000

0

115,000

0

0

1,080,000

Export promotion

4,555,376

0

0

0

-1,375,178

3,180,198

3,180,198

0

109,457

0

-1,356,000

1,933,655

Total

6,161,376

0

260,000

0

-1,662,178

4,759,198

4,759,198

0

1,694,457

0

-1,356,000

5,097,655The committed funds 1 in question are funds for the current service mandates.

Diplomatic and economic measures 3)

0

600,000

0

-600,000

0

0

0

600,000

0

-600,000

0

0

Third-party suppor-ters and trade fairs 2)

331,082

1,360,310

176,178

-1,412,700

0

454,870

454,870

1,300,000

0

-1,197,690

-109,457

447,723

Former export promo-tion service mandate 1)

3,411,920

0

0

0

-730,000

2,681,920

2,681,920

0

0

0

-354,000

2,327,9201) This fund contains resources from previous service mandates and is intended to cover the costs of expiring service mandates and other export promotion activities. 2) This fund is to be used to make awards of contributions to trade fairs and events abroad. 3) This fund is intended for SECO but will be wound up at the end of the year.

Total

3,743,002

1,960,310

176,178

-2,012,700

-730,000

3,136,789

3,136,789

1,900,000

0

-1'797'690

-463'457

2,775,643


11

3. ORGANIZATION CAPITAL


Allocation to free capital

Annual result



Allocation to free capital

Annual result


2. BUSINESS DEVELOPMENT FUND


Credits

Additions

Consumption

Disposals / use



Credits

Additions

Consumption

Disposals / use

Balance as of 31.12.20131) This fund contains resources which the Supervisory Board may dispose of in accordance with Article 1.2 of the articles of incorporation.

Business development fund

0

239,064

0

0

0

239,064

239,064

0

106,827

0

0

345,891

Total

0

239,064

0

0

0

239,064

239,064

0

106,827

0

0

345,891

Acquired free capital

360,911

0

33,182

394,093

394,093

0

34,918

429,011

Revaluation reserves

818,238

0

0

818,238

818,238

0

0

818,238

Paid-in capital

4,900,006

0

0

4,900,006

4,900,006

0

0

4,900,006

Total

6,079,155

0

33,182

6,112,337

6,112,337

0

34,918

6,147,255

PhotoSWISS Pavilion at K 2013, the International Trade Fair for Plastics and Rubber, in Düsseldorf


13

Annex

ACCOUNTING AND VALUATION GUIDELINES

Accounting principlesSwitzerland Global Enterprise’s (S-GE) financial accounting complies with Swiss GAAP ARR accounting standards and provides a true and fair view of the organization’s assets, financial and earnings position. The annual accounts are prepared according to the historic cost principle based on the individual valuation of assets and liabilities. The most important principles of accounting are displayed below: Valuation of receivables Valuation was based on the balance of accounts receivable as of 31 December 2013 minus the necessary specific value adjustments as well as a flat-rate adjustment of 3% to what are mainly domestic receivables. Financial assets The employer's reserves can only be used to finance employer-specific benefits on S-GE's instructions.

Valuation of tangible and intangible assets The tangible and intangible assets are reported as historical cost values minus depreciation and amortisation necessary for operational reasons. With the exception of land, depreciation and amortisation are in principle calculated on a straight-line basis over the asset’s estimated useful life. The property was only depreciated for six months in 2013 because the reconstruction was started in July. The materiality threshold is CHF 5,000 per individual asset.

The estimated useful life of the assets is as follows: Property in Zurich, excluding land 50 yearsBuilding installations 10 yearsIT hardware 3 years

Other current and non-current liabilitiesOther current and non-current liabilities are recognised at nominal value.

1. LIQUID ASSETS

The liquid assets include cash balances, post office and bank accounts as well as sight and time deposits with a remaining term of no more than 90 days. These are recognised at nominal value.

On the balance sheet date and in the previous year there was no unreported leasing business. The fire insurance values for the building amounted to CHF 17,969,800 (previous year: CHF 17,969,800), and for tangible assets they amounted to CHF 2,500,000 (previous year: CHF 2,500,000).

2. RECEIVABLES

2.1 Trade accounts receivable

Receivables against third parties

./. Del credere

Balance of receivables as of 31 December

2.2 Other receivables

Deposits and securities

SBH operational budgets

Miscellaneous other receivables

Balance of other receivables as of 31 December

3. ACCRUALS

Expenses for projects in the new accounting year (trade fairs)

Employee insurance

Receivables against customer

Other accruals

Balance of accruals as of 31 December

4. FIXED ASSETS

4.1 Financial assets

Employer contributions reserve

Balance of financial assets as of 31 December

4.2 Tangible assets

Net book value 1.1.2013

Acquisition values

Status as of 1.1.2013

Additions

Disposals


Cumulative adjustments


Regular depreciation

Disposals


Net book values 31.12.2013

2013

1,411,229

-116,300

1,294,929

290,197

417,731

108,960

816,888

2013

1,941,049

154,176

0

437,914

2,533,139

2013

729,114

729,114

IT hardware

50,075

512,027

0

-237,966

274,061

461,953

46,498

-237,966

270,484

3,577

Ren. of property

0

0

2,464,173

0

2,464,173

0

0

0

0

2,464,173

Conversions

132,000

281,630

0

-281,630

0

149,630

132,000

-281,630

0

0

Land and buildings

8,551,480

11,104,000

0

220,000

11,324,000

2,552,520

87,500

220,000

2,860,020

8,463,980

2012

1,698,898

-181,800

1,517,098

20,000

206,033

53,075

279,108

2012

2,021,652

215,329

9,000

195,478

2,441,459

2012

725,486

725,486

Total

8,733,555

11,897,657

2,464,173

-299,596

14,062,234

3,164,103

265,998

-299,596

3,130,505

10,931,730


15

5. LIABILITIES

5.1 Trade accounts payable

Third-party liabilities

Occupational pension fund

Community liabilities

Balance of liabilities as of 31 December

5.2 Other current liabilities

VAT due

Misc. other liabilities

Balance of other liabilities as of 31 December

6. DEFERRALS

Income for projects in the new accounting year (trade fairs)

Personnel expenses

Other accruals

Balance of deferrals as of 31 December

7. MORTGAGE

Book value 1.1.2012

Additions

Disposals

Book value as of 31.12.2012

Book value 1.1.2013

Additions

Disposals

Book value as of 31.12.2013The mortgage was taken up in conjunction with the renovation of the property at Stampfenbachstrasse 85.

8. ORGANIZATION CAPITAL

The capital paid in was generated by the Confederation. If there is a surplus balance in the event of liquidation, it will go to the Federal Department of Economic Affairs, Education and Research.

9. REVALUATION OF RESERVE

In 2006, hidden reserves of CHF 67,861 relating to restructuring expenses in 2001 as well as CHF 28,500 from a legal dispute were released. In 2012, employer's reserves of CHF 721,877 were recognized in the annual financial statement for the first time.

10. OCCUPATIONAL PENSION

S-GE's employees are insured with Publica, the state pension fund. Insurance covers the economic consequences of age, death and invalidity. This is a federal institution which is independent of S-GE and provides a contribution-based pension plan into which employees and the employer make defined payments. The employer's contributions are recorded in the period in which they occurred and for the current year amount to CHF 1,398,796 (previous year: CHF 1,321,492). There is an employer's reserve of CHF 729,114 (previous year: CHF 725,486).

2013

1,740,057

213,123

360,851

2,314,031

313,076

183,775

496,851

2013

1,948,311

1,508,649

3,355,571

6,812,531

2013

First mortgage

0

0

0

0

0

2,000,000

0

2,000,000

2012

2,167,868

203,172

596,930

2,967,970

459,445

99,383

558,828

2012

1,878,331

1,467,073

2,713,813

6,059,217

2012

Total

0

0

0

0

0

2,000,000

0

2,000,000

11. CONTRIBUTIONS TO THIRD PARTIES – OTHER OPERATING EXPENSES

As of 2013, the budget package is included in "Contributions to third parties". Accordingly, expenses amounting to CHF 1,476,265 booked in 2012 were moved from "Other operating expenses" to "Contributions to third parties".

12. OTHER OPERATING EXPENSES

Fees, charges

Other operating expenses

Total operating expenses

13. FINANCIAL RESULT

Financial expenditure

– Financial expenditure

– Exchange rate differences, expenditure

Total financial expenditure

Financial income

– Interest income

– Exchange rate differences, income

Total financial income

Net financial income

14. TRANSACTIONS WITH ASSOCIATES

The company of a Supervisory Board member provided services amounting to CHF 13,383 in the 2013 financial year (previous year: CHF 44,861).

15. COMPENSATION TO MEMBERS OF MANAGEMENT BODIES

The members of the Supervisory Board (including the President) of S-GE were paid a total of CHF 112,000 (previous year: CHF 110,000) in attendance fees and expenses in the reporting year.

16. EVENTS AFTER THE BALANCE SHEET DATE

No events occurred after the balance sheet date which could have had a significant effect on the balance sheet and statement of operations.

17. ASSESSMENT OF RISK

We have taken internal precautions in order to ensure that the annual accounts are compliant with the applicable accounting regulations and to ensure correctness of company reporting. These precautions are related to up-to-date accounting systemsand processes as well as to preparation of the annual accounts. In the past financial year we have not identified any risks which might lead to a permanent or substantial adverse effect on the assets, financial and earnings position.

18. PLEDGE OF ASSETS IN FAVOUR OF THIRD PARTIES

As security for a confirmed line of credit limited to CHF 500,000 and for the newly arranged mortgage of CHF 2 million, a mortgage note encumbering the property at Stampfenbachstrasse 85 in Zurich has been deposited with the creditor bank.

2013

6,509,195

66,739

6,575,934

2013

116

111,409

111,525

13,068

33,208

46,276

-65,249

2012

4,688,314

51,236

4,739,550

2012

63

106,194

106,257

23,149

88,628

111,777

5,520


17

Report of the auditors


19

Management of Switzerland Global Enterprise(from left to right)

Supervisory Board of Switzerland Global Enterprise(from left to right)

THOMAS D. MEYERChairman of Auditing and Human Resources Committee, Country Mana-ging Director of Accenture AG

DORIS ALBISSERVice-President of the Board of Directors of CLS Communication AG

DR. THOMAS STAEHELINMember of Auditing and Human Resources Committee, partner in the law firm of Fromer Advokatur und Notariat

CHARLES PHILLOTVice-President of Switzerland Global Enterprise, member of the Board of Directors of Frewitt Fabrique de Machines SA

PIERRE-OLIVER CHAVEChairman of the Board of Directors of PX Group SA

RUTH METZLER-ARNOLDPresident of Switzerland Global Enterprise, member of Auditing and Human Resources Committee, partner at Klaus-Metzler-Eckmann Strategy, Management, Communications

BEAT W. KÜNDIGChairman of the Board of Directors and owner of W. Kündig & Cie. AG

EVA JAISLIVice-President of Switzerland Global Enterprise, member of Auditing and Human Resources Committee, CEO and co-owner of PB Swiss Tools

JEAN-MARC PROBSTChairman and CEO of Probst Group Holding SA

MARKUS WYSSHead of Markets and Consulting

DANIEL KÜNGCEO

REMO DAGUATIHead of Swiss Foreign Promotion Head of Communications + Marketing (a.i)

FRANZ STEIGERCFO and Head of Business Support

OFFICIAL PROGRAMMES

Switzerland Global EnterpriseStampfenbachstrasse 85CH-8006 ZurichT +41 44 365 51 51

Switzerland Global EnterpriseCorso Elvezia 16CH-6901 LuganoT +41 91 911 51 35

Switzerland Global EnterpriseAvenue d’Ouchy 47CH-1001 LausanneT +41 21 613 35 70

[email protected]

PUBLICATION DETAILS

Concept and design: S-GE, Varese Corridor

Editor: S-GE

Cover picture: Tornos, SwissNano, Moutier, Switzerland

Printed in Switzerland

© SWITZERLAND GLOBAL ENTERPRISE

March 2014

All rights reserved

s-ge financial report 2013

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