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	70%	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.

Other disclosures

Guarantee obligations

As at 31 December 2017, 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 (2016: CHF 1.3 million)
–Guarantees for prepayments of credit card owners of Viseca Card Services SA, amounting to CHF 14.5 million (2016: CHF 14.5 million)
–Guarantees for prepayments of prepaid credit card owners of Viseca Card Services SA, amounting to CHF 66.0 million (2016: CHF 66.0 million)
–Instalments option of consumer credit customers of Viseca Card Services SA, amounting to CHF 0.5 million (2016: CHF 0.5 million)
–
Rental liabilities of Aduno SA for its premises in Bedano, amounting to CHF 0.2 million (2016: CHF 0.2 million)
–Rental liabilities of Viseca Card Services SA for its premises in Bedano, amounting to CHF 0.2 million (2016: CHF 0.0 million)
–Warranty claims to consumer finance customers of cashgate AG, amounting to CHF 0.5 million (2016: CHF 0.5 million)
–Keep-well guarantee in favour of Aduno Finance AG, amounting to CHF 2,600 million (2016: CHF 2,475 million)
–Rental liabilities of cashgate AG for its premises in Geneva, Lausanne and Neuchâtel, amounting to CHF 0.1 million (2016: CHF 0.1 million)

Unsecured bond issues

In 1,000 CHF	Nominal interest rate	Maturity	Due date	Accrued interest at 31.12.2017	Accrued interest at 31.12.2016
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	0	1,011
275 million bond issue	1.125%	2014-2021	16.07.2021	1,431	1,431
100 million bond issue	0.00%	2017-2018	23.04.2018	0	0
100 million bond issue	variable	2017-2019	21.01.2019	0	0

Contingent liabilities

Effective 1 January 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 five 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 comply with the underlying accounting principles and proper corporate reporting, the company has introduced further operative internal control and steering systems, which are examined on a regular basis. 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 Statements.

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, 19 April 2018

Pascal Niquille
Chairman of the Board of Directors

Martin Huldi
Chief Executive Officer

Conrad Auerbach
Chief Financial Officer