Notes to the annual financial statements

Accounting principles

Basis of preparation

The statutory financial statements of Aduno Holding AG have been prepared in accordance with the requirements of the Swiss Code of Obligations (SCO). Unless stated otherwise, all assets and liabilities are reported at their nominal value. All figures in the annual financial statements are rounded in accordance with commercial principles. All financial information presented in Swiss Francs has been rounded to the nearest thousand, except when indicated differently.

Reporting period

The reporting period begins on 1 January and ends on 31 December of the calendar year.

Recognition of business transactions

Business transactions are presented according to the settlement date principle.

Foreign currency translation

The translation of foreign currency is carried out in accordance with the closing rate method. At year end all financial assets and liabilities in foreign currencies are translated at the year-end rate according to the exchange rate list of Bloomberg Corporation.

Investments in other Group companies

 

 

 

 

Company

Participation

Share capital in 1,000 CHF

Since

Viseca Card Services SA, Zurich

100%

20,000

2007

cashgate AG, Zurich

100%

35,000

2007

Accarda AG, Brüttisellen

30%

18,500

2007

Aduno Finance AG, Stans

100%

1,000

2011

Vibbek AG, Urdorf

67%

1,300

2013

AdunoKaution AG, Zurich

100%

1,365

2014

SwissWallet AG, Zurich

33.3%

105

2015

Contovista AG, Schlieren

14.3%

140

2016

SmartCaution SA, Geneva

100%

500

2016

The participations are reported at initial cost.

Impairments and provisions

Provisions, i.e. individual or general reserves for bad debts are accrued for all the risks identified at the balance sheet date in accordance with the caution principle. Currently no risks have been identified.

Income taxes

Income taxes are calculated and reserved based on the results of the financial year.

Property, equipment and intangible assets

Fire insurance

Property and equipment are insured for CHF 3.9 million (2015: CHF 2.6 million).

Other disclosures

Guarantee obligations

As per 31 December 2016, the following guarantees exist

  • Rental liabilities of Aduno Holding AG for its premises in Business Center Andreaspark in Zurich, amounting to CHF 1.3 million (2015: CHF 1.3 million)
  • Guarantees for prepayments of credit card owners of Viseca Card Services SA, amounting to CHF 14.5 million (2015: CHF 14.5 million)
  • Guarantees for prepayments of prepaid credit card owners of Viseca Card Services SA, amounting to CHF 66.0 million (2015: CHF 66.0 million)
  • Instalments option of consumer credit customers of Viseca Card Services SA, amounting to CHF 0.5 million (2015: CHF 0.5 million)
  • Rental liabilities of Aduno SA for its premises in Bedano, amounting to CHF 0.2 million (2015: CHF 0.2 million)
  • Warranty claims to consumer finance customers of cashgate AG, amounting to CHF 0.5 million (2015: CHF 0.5 million)
  • Keep-well guarantee in favour of Aduno Finance AG, amounting to CHF 2,475 million (2015: CHF 2,600 million)
  • Rental liabilities of cashgate AG for its premises in Geneva, Lausanne and Neuchâtel, amounting to CHF 0.1 million (2015: CHF 0.1 million)

Unsecured bond issues

In 1,000 CHF

Nominal inter- est rate

Maturity

Due date

Accrued interest at 31.12.2016

Accrued interest at 31.12.2015

125 million bond issue

variable

2014–2016

15.07.2016

0

0

100 million bond issue

variable

2015–2017

06.04.2017

0

0

100 million bond issue

0.00%

2015–2017

05.05.2017

0

0

250 million bond issue

2.25%

2011–2017

27.10.2017

1,011

1,003

275 million bond issue

1.125%

2014–2021

16.07.2021

1,431

1,431

Contingent liabilities

As per 01.01.2014 Aduno Holding AG resigned from the VAT group of Viseca Card Services SA. The company remains mutually liable for any VAT obligations the Aduno Group has towards the Swiss Federal Tax Administration. It concerns taxes which eventuated up to 2013 and are significant for a period of 5 years.

Information on the performance of a risk assessment

Aduno Holding AG is part of the Group-wide risk management system of Aduno Group. Therefore, the Board of Directors of Aduno Holding AG decided not to perform an individual risk assessment for the company.

The Board of Directors of Aduno Holding AG has, as parent company, delegated the execution of the risk assessment to the Group’s Executive Management. The Executive Management maintains a risk assessment board, which records any material risks, assesses their importance and probability of occurrence and, if required, defines measures and monitors the processing thereof. The risk analysis is regularly confirmed by the Board of Directors of the Group.

In order to ensure that the company’s Annual Financial Statement complies with the underlying accounting principles and proper corporate reporting, the company has introduced further operative internal control and steering systems that are regularly examined. For accounting and valuations, assumptions and estimates are made regarding the future. The estimates and assumptions that represent a significant risk in the form of a major adjustment to the carrying amounts of assets and liabilities in the coming financial year are presented in the notes for the individual positions. Overall, no risks were identified in the financial year just ended that could lead to a material correction in the asset, finance and profit situation of the company and/or group of companies as presented in the Annual Financial Statement.

To improve the risk assessment, an internal control system (ICS) has been introduced that is reviewed and updated on an ongoing basis. All the risk-relevant processes of Aduno Holding AG are listed in the ICS. This system is reviewed by the auditors as part of the annual audit.

Zurich, 10 April 2017

Dr Pierin Vincenz
Chairman of the Board of Directors

Martin Huldi
Chief Executive Officer

Conrad Auerbach
Chief Financial Officer