Du är här

2014-04-08

Valartis Group AG : Correction of the financial statements 2013 for Valartis Group

Valartis Group AG / Correction of the financial statements 2013 for Valartis
Group. Processed and transmitted by NASDAQ OMX Corporate Solutions. The
issuer is solely responsible for the content of this announcement.
Correction of the financial statements 2013 for Valartis Group

On 25 March 2014, Valartis Group published the 2013 financial results in an ad
hoc disclosure that was affected mainly by nonrecurring, exceptional factors
resulting from the planned sale or merger, respectively of Valartis Bank AG,
Switzerland. The financial results 2013 shown at that time must be corrected
due to a significant unforeseeable effect of value adjustments on real estate
projects by Eastern Property Holdings Ltd. The consolidated net profit from
continued and discontinued operations for Valartis Group now amounts to CHF
0.4 m (previous year: CHF 10.2 m).
In accordance with International Financial Reporting Standards (IFRS), net
profit from continued operations (IFRS 5) was CHF 13.2 m (previous year, on a
comparable basis: CHF 7.6 m).

In the course of its strategic focus on Private Banking and asset management,
Valartis Group divested its holding in the associated company Eastern
Property Holdings Ltd (EPH) on 20 December 2012. At that time, the holding
was 40 percent. EPH is a property management company listed on the Swiss
stock exchange SIX Swiss Exchange with a focus on Russia.

As part of the transaction, the Valartis Group disposes its entire position in
EPH and is expected to receive a total of approximately USD 110 million in
cash over a period of four years. This corresponds mostly to the valuation of
the EPH stake as shown in the 2011 Valartis Group Annual Report. The payments
will be received in several instalments and are partly linked to the
successful completion of current EPH development projects. To date, Valartis
Group has received cash settlements amounting to about CHF 60 m paid in 2012
and 2013. The remaining value was posted as "Escrow Accounts" at fair value
under receivables.

At end-2012, Valartis International Ltd. continued to serve as the
administrator of EPH so that EPH as a real estate development company could
continue to use the industry and market expertise of Valartis Group's
experienced property specialists. However, with the divestment of the
shareholding, Valartis International Ltd. also ceded overall operative
responsibility to the new management in 2013.

EPH - Value adjustment on the real estate projects «Scandinavia Land» and
«Turgenesvskaya Parking»

* On 4 April 2014, EPH informed all stakeholders that the company was
expecting reduced profits for the financial year 2013 in comparison with
the previous year and a total loss amounting to USD 34 m, mainly due to the
value adjustment for 2013 on the real estate project Scandinavia Land in
St. Petersburg as well as the loan impairment on Vestive owning the
Turgenesvskaya Parking and foreign exchange losses.
* As a consequence of the sale agreement, EPH's value adjustment for 2013 on
its real estate projects also influences Valartis Group. It is reflected in
the net calculation of project profit for the EPH Escrow Accounts arising
out of the sale, which Valartis Group posted on 28 December 2012, and
requires a corresponding correction for the financial year 2013 for
Valartis Group.

Effect on FY 2013 for Valartis Group's continued operations

* The Board of Directors of Valartis Group currently expects to conclude the
planned sale or merger, respectively of Valartis Bank AG, Switzerland
during the course of 2014. For that reason, the provisions of the
International Financial Reporting Standards (IFRS) for continued and
discontinued operations (IFRS 5) apply for the 2013 annual statements.
* In accordance with International Financial Reporting Standards (IFRS), net
operating profit from continued operations (IFRS 5) was CHF 13.2 m
(previous year, on a comparative basis: CHF 7.6 m) due to the sale of a
portion of the bond portfolio and despite the value adjustment on the EPH
Escrow Accounts.
* Despite the challenging market environment, Valartis Group's continued
operations achieved net new money amounting to CHF 438 m (previous year:
CHF 850 m) and client assets rose from CHF 5.5 bn to CHF 6.0 bn.
* Operating profit was up 4.2 percent at CHF 73.7 m (previous year: CHF 70.7
m). Despite implementation costs arising from new regulations, costs rose
only slightly by around 3 percent to CHF 52.0 m (previous year: CHF 50.4
m). The cost/income ratio is 70.6 percent (previous year: 71.3 percent).
* Gross profit increased by 7.1 percent to CHF 21.7 m (previous year: CHF
20.3 m).
* Capital requirements imposed by the Swiss Financial Market Supervisory
Authority FINMA were tightened all round at end-2013 which also demanded
corresponding adjustments by Valartis Group. Despite this, the core capital
ratio on 31 December 2013 was 14.9 percent (previous year: 13.3 percent).

A decisive move to realign
After having established Private Banking operations, Valartis Group focused
its business activities in 2011 and 2012 on asset management, within the
framework of the strategy embarked on in 2008 and after making two
divestments. In 2012 and 2013, Valartis Group's sustained strategic focus was
center stage. The Board of Directors of Valartis Group made a consequent and
decisive move through strategic decisions to realign the business model and
to adjust it to the altered framework and market conditions.

Pursuit of a favorable resolution for Valartis Bank AG, Switzerland
In the course of the strategic realignment of the business model and the
streamlining of structures, on 26 August 2013, the Board of Directors of
Valartis Group decided to divest Valartis Bank AG, Switzerland; this was
communicated to all stakeholders on the following day. During the first
half-year 2013, it had become apparent that the acquisition capacity of
Valartis Bank AG, Switzerland could not be increased at the planned rate,
despite the newly aligned front office organization, and that the Bank would
not attain the appropriate critical mass within the foreseen timeframe. The
Swiss Bank's costs, together with costs stemming from measures from
increasing regulatory changes, are accelerating and squeezing margins even
further and, thus, significantly raising the level of the necessary critical
mass for a Swiss Bank.
Valartis Bank AG, Switzerland is a wholly owned subsidiary of Valartis Group
with offices in Zurich, Geneva, and Lugano.

The Board of Directors of Valartis Group is, and remains, committed to the
pursuit of the most favorable solution on behalf of shareholders, clients,
and personnel and, based on current information, expects to reach the
intended settlement during the course of 2014.

Realignment of the Group Executive Management for the transformation phase

In the course of its 2013 strategic realignment, Valartis Group is
re-affirming its focus on the future with a newly streamlined management
organization. With immediate effect, for the transformation phase during the
planned divestment of the Swiss Bank, the Group Executive Management will be
as follows: Gustav Stenbolt, Group CEO, Vincenzo Di Pierri, Deputy Group CEO
and CEO of Valartis Bank AG, Switzerland and George M. Isliker, Group
CFO&CRO. Following the successful spin-off of Valartis Bank AG from Valartis
Group during the course of 2014, Valartis Group will then align its group
executive organization in accordance to the new framework requirements.

Valartis Group proposes Stephan Häberle for election to the Board of Directors
At the General Meeting on 13 May 2014, Felix Fischer will no longer be
available for re-election. Valartis Group would like to thank Mr. Fischer for
the work he has done. The Board of Directors proposes Stephan Häberle for
election to the Board at the General Meeting of 13 May 2014. From 1980 to
1998, Stephan Häberle (54) held various positions in Private Banking
Switzerland and abroad at Bank Leu, Zurich - from 1996 as Chief of Staff, he
headed various projects. From 1998 to 2006, Mr Häberle was Regional Market
Manager for Austria and Central Europe at UBS AG, Wealth Management
International. In 2006, he moved to LGT in Liechtenstein as Head of Private
Banking International and member of the Senior Management, up to 2009.
Further, he was Member of the Executive Management of LGT (Schweiz) AG.
Between 2009 and 2012, he headed Centrum Bank in Liechtenstein as CEO and
since 2010 as Group CEO. Since 2013 he has been CEO of MediBank in Zug.

Media Conference (incl. ConfCall), 9 April 2014, and 1-to-1 for Analysts

Gustav Stenbolt, CEO and George M. Isliker, CFO/CRO will present details of
the adjusted Annual Report 2013 at the Media Conference (incl. ConfCall) on 9
April 2014:

-------------------------------------------------------------------------
|Date: 9 April 2014 |
|Location: Valartis Bank AG, Switzerland |
| Sihlstrasse 20, 8001 Zurich, 2nd floor |
|Time: 10.30 Media Conference |
| Login for ConfCall will be forwarded after registration |
|Registration: Mrs. Kim-My Schefer,corporate.communications@valartis.ch |
-------------------------------------------------------------------------
1 to 1 meetings for Analysts:
Please contact Mrs. Kim-My Schefer,corporate.communications@valartis.ch, tel.
41 43 336 82 94

The Annual Report 2013 will be available on 17 April 2014
(www.valartisgroup.ch).

Enclosure: Key Figures 2013 at a glance

----------------------------------
|Agenda |
|General Meeting 13 May 2014 |
|Half-year Report 26 August 2014 |
----------------------------------
For further information please contact:
Kim-My Schefer
Head Corporate Communications&Marketing
Tel. +41 43 336 8294
corporate.communications@valartis.ch

Valartis Group
Valartis Group is an internationally active banking and finance group
represented today with offices in Zurich, Geneva, Lugano, Vienna,
Liechtenstein, Luxembourg, Moscow, and Singapore. The Group's holding company
is domiciled in Switzerland and is listed on the SIX Swiss Exchange.
Valartis Group focuses on the wealth management business for wealthy private
clients and institutional investors in addition to traditional wealth
management and investment advisory, it develops, manages and markets
innovative niche investment products and offers specialized product packages.
In doing so, Valartis Group combines a wide range of traditional private
banking services with specialized advisory and classical banking services in
the fields of Asset Management and Private Equity together with innovative
investment products in the categories Stock...

Författare Hugin

Tala om vad ni tycker

Tala om vad ni tycker

Ni är just nu inne på en betaversion av nya aktiespararna. Lämna gärna feedback på vad ni tycker i formuläret nedan.