s-ge financial report 2013
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2013
FINANCIALREPORT
Switzerland Global
Enterprise (S-GE)
is Osec’s new name
FINANCIAL REPORT 2013
3
Contents
FINANCIAL REPORT 2013
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
FINANCIAL REPORT 2013
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.
FINANCIAL REPORT 2013
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)
FINANCIAL REPORT 2013
9
1.2 Committed funds 2
Balance as of 1.1.2012
Credits
Additions
Consumption
Disposals / use
Balance as of 31.12.2012
Balance as of 1.1.2013
Credits
Additions
Consumption
Disposals / use
Balance as of 31.12.2013
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
Balance as of 1.1.2012
Credits
Additions
Use
Disposals / use
Balance as of 31.12.2012
Balance as of 1.1.2013
Credits
Additions
Use
Disposals / use
Balance as of 31.12.2013
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
FINANCIAL REPORT 2013
11
3. ORGANIZATION CAPITAL
Balance as of 1.1.2012
Allocation to free capital
Annual result
Balance as of 31.12.2012
Balance as of 1.1.2013
Allocation to free capital
Annual result
Balance as of 31.12.2013
2. BUSINESS DEVELOPMENT FUND
Balance as of 1.1.2012
Credits
Additions
Consumption
Disposals / use
Balance as of 31.12.2012
Balance as of 1.1.2013
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
FINANCIAL REPORT 2013
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
Status as of 31.12.2013
Cumulative adjustments
Status as of 1.1.2013
Regular depreciation
Disposals
Status as of 31.12.2013
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
FINANCIAL REPORT 2013
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
FINANCIAL REPORT 2013
17
Report of the auditors
FINANCIAL REPORT 2013
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
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