NOTES TO THE FINANCIAL STATEMENTS
1. Principles
General
Züblin Immobilien Holding AG, Zurich (ZIHAG) is the parent company of the Züblin Immobilien Group. The Groupʼs activities are focused on the management of its international real estate portfolio. As of 31 March 2018 the Züblin Immobilien Group does employ 7 employees (previous year: 11, thereof 4 employees in the discontinued operations Germany).
Acounting law
These financial statements are prepared in accordance with the provisions of the new Swiss Law on Accounting and Financial Reporting (Title 32 of the Swiss Code of Obligations (hereafter: CO)). ZIHAG prepares consolidated financial statements in accordance with a recognized accounting standard (International Financial Reporting Standards). Therefore and in accordance with 961d CO ZIHAG has decided to forego presenting additional information on interest-bearing liabilities and audit fees in the notes as well as a cashflow statement and management report.
Group companies are all companies in which ZIHAG directly or indirectly has more than 20% of the voting rights or over which it exerts a significant influence.
The significant accounting policies, which are not prescribed by law, are described below.
Financial Assets
Financial Assets Financial assets include long-term loans granted to Group companies. Loans granted in foreign currency are valued at the closing rate, with unrealized losses recorded, whereas unrealized gains are not recognized.
Investments
Investments are stated at cost less any provisions for impairment.
Interest-bearing liabilities (current and non-current)
Interest-bearing liabilities are stated at their nominal value. Prepaid interest and issue costs are recorded in prepaid expenses and amortized on a straight-line basis over the respective term.
Exchange rates
2. Value adjustments on non-current assets
In the previous period the overall value adjustment amounted to CHF 16 million and fully related to a reversal of depreciation on the German Group loan. In the current period there were no value adjustment.
3. Financial Income
Financial income of CHF 1.5 million (previous period CHF 2.3 million) comprises of interest earned on loans to Group companies and related parties.
4. Investments
On 21 August 2017 Züblin Immobilien Holding AG sold its shares in ZIAG Immobilien AG. Further information on the sale of the German real estate portfolio can be found in the consolidated financial statements.
5. Financial Assets
Loans to group companies
With the sale of the German Portfolio all outstanding intercompany loans granted by ZIHAG to the German subsidiares were fully repaid.
According to the loan agreement between ZIHAG and Züblin Real Estate Holding NV interest claim was waived until a financial improvement of the company becomes apparent.
ZIHAG has granted to Züblin Immobilien AG a loan in the amount of CHF 56.6 million. The interest on the loan is currently 1.5% and is in line with the maximum interest rate according to the rules issued annually by the Swiss Federal Tax Administration regarding interest on intercompany loans.
6. Other current receivables
As of 31 March 2017 ZIHAG has granted a loan to Lamesa Holding SA, Panama in the amount of CHF 4 million. The loan bore an interest rate of 3% p.a. and was fully repaid in the first quarter of the financial year 2017/18.
7. Share Capital
As of 31 March 2018 there were 3 318 027 shares with a nominal value of CHF 22.50, resulting in a share capital of kCHF 74 656. There were no changes in capital structure in the financial years 2017/18 and 2016/17.
Authorized share capital amounts to kCHF 37 328, which represents 1 659 013 shares. The authorized share capital was prolonged by the general assembly held on 20.6.2017 until 28.10.2019
Conditional share capital available for stock option plan was authorized at EGM held on 29.10.2015 and amounts to kCHF 3 700, which represents 164 444 shares.
8. Retained loss and earnings for the year
9. Contingent liabilities
The guarantees in favor of Group companies related to mortgages in Germany. With the sale of all German investment properties all outstanding mortgages were repaid. As of 31.3.2018 no guarantees in favour of subsidiaries exist.
10. Significant shareholders
Number of issued shares in the Commercial Register as of 31 March 2018: 3 318 027
Züblin Immobilien Holding AG is aware of the following shareholders with holdings exceeding a disclosure threshold:
11. Shareholdings
12. Joint and several liabilities
Züblin Immobilien Holding AG belongs to a VAT group and is jointly and severally liable with Züblin Immobilien AG and Züblin Immobilien Management AG for the VAT payments arising from this VAT Groupʼs activities.
13. Net release of hidden reserves
In the financial year 2017/18, hidden reserves from the reversal of a provision for unrealized currency gains amounting to TCHF 1'263 were released (previous year: CHF 0).
14. Events after the balance sheet date
No significant events have taken place since the balance sheet date.
