5. DETAILED INFORMATION ON STATEMENT OF FINANCIAL POSITION ITEMS

5.1Investment properties

in CHF thousands

 

2022/23

 

2021/22

 

 

 

 

 

Balance as of beginning

 

225 070

 

218 710

Purchases

 

0

 

0

Value-enhancing investments

 

803

 

1 000

Captialization / Release of rent free periods 1

 

77

 

144

Positive change in market value

 

1 849

 

6 822

Negative change in market value

 

–749

 

–1 605

Change in market value

 

1 100

 

5 217

Balance at the end of reporting period

 

227 050

 

225 070

1 Straight-line recognition/reversal of rent incentives granted to tenants

In the 2022/23 financial year, the value of the investment properties increased by kCHF 1 980 or by 0.9%. The change in value resulted mainly from value-enhancing investments of kCHF 803 and positive changes in market value of kCHF 1 100. The change in market value was driven by asset management achievements such as sucessful new lettings, indexations and re-letting of vacant spaces at market level. 

The weighted average lease term (WALT) as of 31 March 2023 is 2.9 years (previous year: 3.5 years).

Investment properties are valued twice a year by Jones Lang La Salle AG (JLL). The discounted cash flow (DCF) method is used to determine fair value on the valuation date. Under this method the fair value of a property is determined by the sum of projected future net earnings discounted to the valuation date plus the discounted exit value. A detailed cash flow forecast is produced for the first ten years, with a residual value (exit value) being determined on basis of a perpetual annuity of the exit cash flow for the rest of the term. The projected gross rental income is determined on the basis of existing tenancies and assumptions on reletting at current market rents, with allowance made for the relevant marketing periods and the probability of current leases being renewed. The net rental income is defined as the gross rental income less property-specific costs that cannot be passed on to tenants plus maintenance and any renovation required for new rentals. The discount calculation is carried out separately for each property, taking account of its property-specific risks and opportunities, in line with market conditions and on a risk-adjusted basis.

Züblin is currently invested exclusively in the office asset class and primarily in the Zurich economic area. The average capital-weighted nominal discount rate is 4.04% as of 31 March 2023 (previous year: 3.61%), in the range of 3.55% to 5.50% (previous year: 3.10% to 5.10%). The average capital-weighted capitalization rate is 3.04% (previous year: 3.11%), in the range of 2.55% to 4.50% (previous year: 2.60% to 4.60%).

The following tables show a sensitivity analysis of the two parameters Discount Rate and Market Rent, which have a significant influence on the valuation of the investment properties.

Valuation effects in relation to changes in market rents (effects up to max. ±8% percent):

 

 

31.3.2023

 

31.3.2022

Change in market rents by

 

Market value (in kCHF)

 

%

 

Market value (in kCHF)

 

%

 

 

 

 

 

 

 

 

 

8.0%

 

245 940

 

8.3

 

242 860

 

7.9

6.0%

 

241 230

 

6.2

 

238 413

 

5.9

4.0%

 

236 500

 

4.2

 

233 965

 

4.0

2.0%

 

231 780

 

2.1

 

229 518

 

2.0

0.0%

 

227 050

 

0.0

 

225 070

 

0.0

–2.0%

 

222 330

 

–2.1

 

220 618

 

–2.0

–4.0%

 

217 620

 

–4.2

 

216 165

 

–4.0

–6.0%

 

212 880

 

–6.2

 

211 713

 

–5.9

–8.0%

 

208 150

 

–8.3

 

207 260

 

–7.9

Source: JLL

Valuation effects in relation to changes in discount rates (effects are shown in ±10 basis points):

 

 

31.3.2023

 

31.3.2022

Change in discount rate by

 

Market value (in kCHF)

 

%

 

Market value (in kCHF)

 

%

 

 

 

 

 

 

 

 

 

40bps

 

200 110

 

–11.9

 

198 640

 

–11.7

30bps

 

206 180

 

–9.2

 

204 610

 

–9.1

20bps

 

212 670

 

–6.3

 

210 990

 

–6.3

10bps

 

219 600

 

–3.3

 

217 780

 

–3.2

0bps

 

227 050

 

0.0

 

225 070

 

0.0

-10bps

 

235 050

 

3.5

 

232 870

 

3.5

-20bps

 

243 700

 

7.3

 

241 280

 

7.2

-30bps

 

253 050

 

11.5

 

250 350

 

11.2

-40bps

 

263 200

 

15.9

 

260 170

 

15.6

Source: JLL

The principles and assumptions applied in the valuation of the investment properties are set out in the valuation report.

The list of all investment properties along with all information in accordance with the Directive on Financial Reporting of the SIX Swiss Exchange can be found in the portfolio section of this annual report. This additional information is an integral part of the notes to the consolidated financial statements.

5.2Furnishing and Software

in CHF thousands

 

Office furnishing and fittings

 

EDP system

 

Total Furnishings

 

Software

 

Total Software

 

 

 

 

 

 

 

 

 

 

 

Acquisition costs

 

 

 

 

 

 

 

 

 

 

Balance as of 1.4.21

 

241

 

38

 

279

 

94

 

94

Additions

 

8

 

0

 

8

 

29

 

29

Disposals

 

–4

 

0

 

–4

 

0

 

0

Balance as of 31.3.22

 

245

 

38

 

283

 

123

 

123

 

 

 

 

 

 

 

 

 

 

 

Additions

 

0

 

11

 

11

 

10

 

10

Disposals

 

0

 

0

 

0

 

0

 

0

Balance as of 31.3.23

 

245

 

49

 

294

 

133

 

133

 

 

 

 

 

 

 

 

 

 

 

Accumulated depreciation

 

 

 

 

 

 

 

 

 

 

Balance as of 1.4.21

 

38

 

9

 

47

 

94

 

94

Additions

 

34

 

6

 

40

 

6

 

6

Disposals

 

–1

 

0

 

–1

 

0

 

0

Balance as of 31.3.22

 

71

 

15

 

86

 

100

 

100

 

 

 

 

 

 

 

 

 

 

 

Additions

 

32

 

10

 

42

 

13

 

13

Disposals

 

0

 

0

 

0

 

0

 

0

Balance as of 31.3.23

 

103

 

25

 

128

 

113

 

113

 

 

 

 

 

 

 

 

 

 

 

Net book value as of 31.3.23

 

142

 

24

 

166

 

21

 

21

Net book value as of 31.3.22

 

174

 

23

 

197

 

23

 

23

5.3Deferred tax assets and liabilities

in CHF thousands

 

31.3.2023

 

31.3.2022

 

 

 

 

 

Deferred tax assets arising from:

 

 

 

 

– Tax loss carry-forwards

 

433

 

448

– Other valuation differences

 

25

 

23

Total deferred tax assets as of year end

 

458

 

471

 

 

 

 

 

Deferred tax liabilities arising from:

 

 

 

 

– Positive valuations of investment properties

 

17 223

 

16 775

– Other valuation differences

 

2 331

 

1 896

Total deferred tax liabilities as of year end

 

19 554

 

18 671

 

 

 

 

 

Net amounts as presented in balance sheet

 

 

 

 

Presented deferred tax assets

 

0

 

0

Presented deferred tax liabilities

 

19 096

 

18 200

 

 

 

 

 

Net deferred tax liabilities

 

 

 

 

Balance as of beginning

 

–18 200

 

–14 902

Deferred taxes recognized in profit & loss

 

–896

 

–3 268

Deferred taxes recognized in OCI

 

0

 

–30

Balance as of year end

 

–19 096

 

–18 200

in CHF thousands

 

31.3.2023

 

31.3.2022

 

 

 

 

 

Tax loss carry-forwards

 

 

 

 

As of year end

 

4 446

 

4 366

Maturity within

 

 

 

 

1 to 12 months

 

0

 

338

1 to 3 years

 

179

 

560

3 to 5 years

 

2 390

 

1 930

more than 5 years

 

1 877

 

1 538

without time limitation

 

0

 

0

Captialization:

 

 

 

 

not capitalized

 

0

 

0

capitalized

 

4 446

 

4 366

5.4Trade accounts receivable

in CHF thousands

 

31.3.2023

 

31.3.2022

 

 

Accounts receivable

 

Value adjustment

 

Accounts receivable

 

Value adjustment

 

 

 

 

 

 

 

 

 

Not yet due

 

117

 

–4

 

70

 

0

< 30 days past due

 

39

 

0

 

41

 

0

30-60 days past due

 

33

 

0

 

51

 

–5

61-90 days past due

 

21

 

0

 

16

 

–15

91-180 days past due

 

1

 

–1

 

23

 

–7

181-360 days past due

 

35

 

–35

 

22

 

0

Total

 

246

 

–40

 

223

 

–27

 

 

 

 

 

 

 

 

 

Total accounts receivable

 

206

 

 

 

196

 

 

5.5Cash and cash equivalents

As of the balance sheet date, the Company had cash and cash equivalents of kCHF 3 161 (previous year: kCHF 2 907).

5.6Equity

Share capital

As of 31 March 2023 there were 3 318 027 shares issued with a nominal value of CHF 22.50, resulting in a share capital of kCHF 74 656. The capital structure remained unchanged in the fiscal years 2022/23 and 2021/22.

Treasury shares

The company holds a total of 2 380 treasury shares as of 31 March 2023. In fiscal year 2022/23, the company neither purchased nor sold treasury shares. Treasury shares are reported as a negative item in equity at cost. As of 31 March 2023, the position remains unchanged at kCHF 63.

Distribution from capital contribution reserves

The Annual General Meeting of Züblin Immobilien Holding AG on 21 June 2022 approved a withholding tax-free distribution of CHF 1.00 per dividend-entitled registered share (Namenaktie) from statutory capital reserves. This corresponds to a total amount of kCHF 3 315. On 27 June 2022, a distribution of kCHF 1 934 was made in favour of the shareholders. As has been the case since 2018, the distribution due to Lamesa Holding SA was recognised as a liability in the balance sheet item “Liabilities to participations”.

5.7Future contractual maturities

Undiscounted cash outflows of existing liabilities as of 31 March 2023:

 

 

Carrying value

 

< 1 year

 

1 to 3 years

 

3 to 5 years

 

> 5 years

in CHF thousands

 

 

 

interest

 

amortisation

 

interest

 

amortisation

 

interest

 

amortisation

 

interest

 

amortisation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of 31.3.2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgages

 

64 914

 

1 226

 

0

 

2 452

 

0

 

2 452

 

0

 

1 229

 

65 000

Trade accounts payable

 

133

 

0

 

133

 

0

 

0

 

0

 

0

 

0

 

0

Liabilities to participants

 

6 909

 

0

 

6 909

 

0

 

0

 

0

 

0

 

0

 

0

Other short-term liabilities 1

 

1 334

 

0

 

1 334

 

0

 

0

 

0

 

0

 

0

 

0

Total financial liabilities as of 31.3.2023

 

73 290

 

1 226

 

8 376

 

2 452

 

0

 

2 452

 

0

 

1 229

 

65 000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of 31.3.2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgages

 

66 900

 

402

 

0

 

804

 

0

 

804

 

0

 

804

 

67 000

Trade accounts payable

 

155

 

0

 

155

 

0

 

0

 

0

 

0

 

0

 

0

Liabilities to participants

 

5 527

 

0

 

5 527

 

0

 

0

 

0

 

0

 

0

 

0

Other short-term liabilities 1

 

1 425

 

0

 

1 425

 

0

 

0

 

0

 

0

 

0

 

0

Total financial liabilities as of 31.3.2022

 

74 007

 

402

 

7 107

 

804

 

0

 

804

 

0

 

804

 

67 000

1 The other short-term liabilities of kCHF 2'925 (previous year kCHF 3'172) recognized in the balance sheet include accrued liabilities of kCHF 1'590 (previous year kCHF 1'747).

Trade accounts payable and the other short-term liabilities are incurred in the course of the Groupʼs operating activities and are covered by the short-term assets. 

5.8Financial instruments by category

Carrying amounts and fair values of all recognized financial instruments in accordance with IFRS 13

Since the carrying amounts of the financial assets at amortized cost and financial liabilities at amortized cost reflect in most cases a reasonable approximation of their fair value, the fair values are only separately listed below, if there are deviations from the carrying amount.

in CHF thousands

 

31.3.2023 Carrying amount

 

31.3.2023 Fair Value

 

31.3.2022 Carrying amount

 

31.3.2022 Fair Value

Financial assets at amortized cost

 

 

 

 

 

 

 

 

Tenant loans

 

276

 

 

 

309

 

 

Trade accounts receivable

 

206

 

 

 

196

 

 

Prepaid service charges

 

1 446

 

 

 

1 580

 

 

Further oher current assets

 

102

 

 

 

150

 

 

Cash and cash equivalents

 

3 161

 

 

 

2 907

 

 

Total

 

5 191

 

 

 

5 142

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities at amortized cost

 

 

 

 

 

 

 

 

Mortgages

 

64 914

 

65 000

 

66 900

 

67 000

Accrued interest

 

0

 

 

 

0

 

 

Prepaid service charges

 

1 034

 

 

 

1 263

 

 

Accounts payable

 

133

 

 

 

155

 

 

Liabilities to participants

 

6 909

 

 

 

5 527

 

 

Further other current liabilities

 

229

 

 

 

151

 

 

Total

 

73 219

 

 

 

73 996

 

 

The reported value of financial assets reflects the maximum default risk disregarding any collateral, in the event that the contractual partners fail to meet their payment obligations. No concentration of default risks arising from business relations with individual debtors or groups of debtors has been identified. The sole financial debt position currently held by Züblin is the mortgage. For more details please refer to 5.9 “Mortgages”.

5.9Mortgages

In CHF thousands

 

31.3.2023

 

31.3.2022

 

 

 

 

 

Interest term structure

 

 

 

 

1 to 12 months

 

65 000

 

67 000

1 to 3 years

 

0

 

0

3 to 5 years

 

0

 

0

More than 5 years

 

0

 

0

Total interest bearing debts

 

65 000

 

67 000

Average effective interest rate

 

2.05%

 

0.77%

Current interest rate

 

1.86%

 

0.60%

 

 

 

 

 

Contractual maturity dates of mortgages

 

 

 

 

1 to 12 months

 

0

 

0

1 to 3 years

 

0

 

0

3 to 5 years

 

0

 

0

More than 5 years

 

65 000

 

67 000

Total

 

65 000

 

67 000

Average duration

 

6.0

 

7.0

 

 

 

 

 

Fair value of mortgages

 

 

 

 

Variable rate mortgages

 

65 000

 

67 000

Total

 

65 000

 

67 000

As of 31 March 2023 Züblin Groupʼs real estate portfolio is financed entirely by one variable-rate loan. The amounts shown as mortgages in the balance sheet include closing fees of kCHF 86 (previous year: kCHF 100). These closing fees are also reflected in the calculation of the average effective interest rate.

The mortgage includes financial covenants which specify, among other things, adherence to certain financial indicators (loan-to-value ratio and equity ratio). The following are the currently applicable financial covenants:

        Loan to Value (LTV)       ≤ 60%
        Equity ratio                    ≥ 10%

Züblin monitors compliance with these covenants on a quarterly basis. The breach of a covenant may have a variety of consequences and can result among other consequences in a higher interest rate or a (partial) repayment of the loan. If the LTV rises above 60%, the company has the opportunity to restore compliance with this financial covenant. The mortgage agreement also contains a “change of control” clause which stipulates the repayment of the entire loan if Züblin Immobilien Holding AG holds less than 50.1% of the voting rights or shares in the borrowing subsidiary or Lamesa Holding SA exercises direct or indirect control over more than 41.65% of the voting rights or shares in Züblin Immobilien Holding AG. A delisting of Züblin Immobilien Holding AG would also lead to an immediate repayment of the outstanding borrowing.

As in the previous year, the Group was in compliance with all of its covenants as of the balance sheet date.

Value of investment properties pledged as security for mortgages:

In CHF thousands

 

31.3.2023

 

31.3.2022

 

 

 

 

 

Book value of assets pledged (investment properties)

 

210 180

 

208 540

Credit drawn

 

65 000

 

67 000

Insurance policies for investment properties have been pledged as security over and above the mortgage lines.

Züblin currently finances itself entirely through mortgages. The balance sheet value as at 31 March 2023 is kCHF 64 914 (previous year: kCHF 66 900). The changes in financing activities during the financial year relate to repayments in the amount of kCHF 4 000 and borrowings in the amount of kCHF 2 000. Non-cash changes occurred in the context of the compounding and discounting (+kCHF 14).

5.10Pension liabilities

The Züblin Group has a defined benefit plan according to IAS 19 in Switzerland. In the past twelve months, expenditures of kCHF 76 (previous year: kCHF 124) were recorded for the defined benefit plan.

Swiss pension schemes are governed by the Swiss Federal Law on Occupational Retirement, Survivors’ and Disability Pension Plans (BVG). The pension plan is financed by contributions from both employer and employees. The BVG requires pension schemes to be run as legally independent institutions. The pension scheme is headed by a board of trustees composed of an equal number of employer and employee representatives. It is responsible for determining and implementing the investment strategy.

The following amounts are based upon the “Project Unit Credit”-method:

in CHF thousands

 

31.3.2023

 

31.3.2022

 

 

 

 

 

Pension liabilities (present value)

 

1 076

 

1 028

Pension assets at market value

 

964

 

927

Pension liabilities (technical deficit)

 

–112

 

–101

The above amount is shown in the balance sheet under “Pension liabilities”.

Pension liabilities and assets changed as follows in the Züblin Group’s consolidated balance sheet:

in CHF thousands

 

2022/23

 

2021/22

 

 

 

 

 

Pension liabilities (present value) at 1.4.

 

1 028

 

981

Current service costs

 

75

 

124

Employees' contributions

 

45

 

53

Interest expenses

 

14

 

5

Benefits (paid) / deposited

 

–6

 

–12

Actuarial gains/losses

 

–80

 

–123

Pension liabilities (present value) at 31.3.

 

1 076

 

1 028

 

 

 

 

 

Pension assets at market value at 1.4.

 

927

 

770

Income on plan assets

 

13

 

4

Employer contributions

 

67

 

79

Employees' contributions

 

45

 

53

Benefits (paid) / deposited

 

–6

 

–12

Actuarial gains/losses

 

–82

 

33

Pension assets at market value at 31.3.

 

964

 

927

Break down of pension expenses:

in CHF thousands

 

31.3.2023

 

31.3.2022

 

 

 

 

 

Expected contribution in the coming year

 

67

 

67

 

 

 

 

 

Penison expense in the current period is comprised of the following items:

 

 

 

 

– Current service cost

 

75

 

124

– Interest expense

 

1

 

1

Pension expenses

 

76

 

125

The weighted average duration of the defined benefit plans is 13.7 years (previous year: 14.7 years).

The remeasurement of the net pension obligation reported in other comprehensive income breaks down as follows:

in CHF thousands

 

31.3.2023

 

31.3.2022

 

 

 

 

 

Actuarial gains (+)/losses on plan assets (-)

 

–82

 

33

Effects from changes in financial assumptions

 

81

 

111

Effects from changes in demographic assumptions

 

0

 

0

Effects from experience adjustments

 

–1

 

11

Actuarial gains (+) /losses on pension liabilities (-)

 

80

 

122

Defined Benefit Cost recognised in OCI

 

–2

 

155

The calculation of the Group’s pension liabilities is based on the following assumptions:

 

 

31.3.2023

 

31.3.2022

 

 

 

 

 

Discount rate

 

2.10%

 

1.30%

Expected return on pension assets

 

2.10%

 

1.30%

Expected future salary increases

 

1.00%

 

1.00%

Expected future pension increases

 

0.00%

 

0.00%

Life expectancy in years at age of retirement (man/woman)

 

BVG 2020 GT

 

BVG 2020 GT

A sensitivity analysis was carried out using constant assumptions for the most important assumptions used to calculate the pension liabilities.

in CHF thousands

 

31.3.2023

 

31.3.2022

 

 

 

 

 

Pension liabilities (present value) at 31.3.

 

1 076

 

1 027

– Discount rate -0.25%

 

1 112

 

1 066

– Discount rate +0.25%

 

1 040

 

991

– Expected salary increases -0.25%

 

1 071

 

1 025

– Expected salary increases +0.25%

 

1 079

 

1 032

– Life expectancy in years - 1 year

 

1 063

 

1 014

– Life expectancy in years + 1 year

 

1 088

 

1 041

Asset allocation: 100% of the assets are managed and invested by a reinsurance company. Furthermore, the Company has insured a minimum return on its pension assets. Therefore, a detailed asset allocation is not presented.

5.11Liabilities from long-term rental contracts

As in the previous year, Züblin has no liabilities from long-term rental agreements in the reporting year.

5.12Related parties

In accordance with IAS 24, related parties for the reporting financial year included:

  1. The Board of Directors
  2. Members of Züblin Group Management
  3. Lamesa Holding SA, Panama

Shareholdings by related parties as of 31 March 2023

Shareholdings by the Board of Directors and the Group Management are disclosed in detail in note 5.14.

Transactions with related parties and significant shareholders

Unpaid Dividend to shareholder

As of 31 March 2023 the Züblin Group has open payables to Lamesa Holding SA resulting from unpaid dividends in the amount of kCHF 6 909 (previous year: kCHF 5 527). Further details are disclosed in note 5.6. The payable shown in the balance sheet line “Liabilities to Participants” does not bare any interest.

There were no other transactions with related parties or significant shareholders in financial year 2022/23. Nor were any advisory fees paid to related parties or significant shareholders over and above the remuneration disclosed in note 5.13. The Board of Directors and Group Management continually monitor potential conflicts of interest.

Loans to members of governing bodies

No loans have been granted to members of the Board of Directors or the Züblin Group Management.

5.13Compensation

Compensation of the members of the Board of Directors

in CHF

 

Basic compensation

 

Total

 

 

 

 

 

Financial year 2022/23

 

 

 

 

Dr. Wolfgang Zürcher, Chairman

 

150 000

 

150 000

Vladislav Osipov, Member 1

 

56 778

 

56 778

David Schärli, Member

 

70 000

 

70 000

Dr. Markus Wesnitzer, Member

 

70 000

 

70 000

Total Board of Directors

 

346 778

 

346 778

 

 

 

 

 

Financial year 2021/22

 

 

 

 

Dr. Wolfgang Zürcher, Chairman

 

146 250

 

146 250

Vladislav Osipov, Member

 

68 250

 

68 250

David Schärli, Member 2

 

50 750

 

50 750

Dr. Markus Wesnitzer, Member

 

68 250

 

68 250

Total Board of Directors

 

333 500

 

333 500

1 resigned on January 22, 2023

2 Fee waiver for the period January-March 2022

Compensation of the Executive Management (CEO/CFO)

in CHF

 

Basic compensation

 

Bonus in cash

 

Employers contributions 1

 

Total

Financial year 2022/23

 

 

 

 

 

 

 

 

Roland Friederich, CEO/CFO

 

300 000

 

75 000

 

63 767

 

438 767

Total Group Management

 

300 000

 

75 000

 

63 767

 

438 767

Compensation approved by the Annual General Meeting

 

 

 

 

 

 

 

1 000 000

 

 

 

 

 

 

 

 

 

Financial year 2021/22

 

 

 

 

 

 

 

 

Roland Friederich, CEO/CFO

 

300 000

 

144 700

 

67 803

 

512 503

Total Group Management

 

300 000

 

144 700

 

67 803

 

512 503

Compensation approved by the Annual General Meeting

 

 

 

 

 

 

 

1 000 000

1 thereof contribution to pension schemes (AHV, pension fund) CHF 50'339 (prior year: CHF 56'091)

5.14Shareholdings Board of Directors and Executive Management

 

 

Number of shares

As of 31.3.2023

 

 

Dr. Wolfgang Zürcher, Chairman

 

1 800

David Schärli, Member

 

0

Dr. Markus Wesnitzer, Member

 

63

Total Board of Directors

 

1 863

Roland Friederich, CEO/CFO

 

100

Total Executive Management

 

100

 

 

 

As of 31.3.2022

 

 

Dr. Wolfgang Zürcher, Chairman

 

1 800

Vladislav Osipov, Member

 

0

David Schärli, Member

 

0

Dr. Markus Wesnitzer, Member

 

63

Total Board of Directors

 

1 863

Roland Friederich, CEO/CFO

 

100

Total Executive Management

 

100