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Interim Report as of June 30_ 2011

VIEWS: 13 PAGES: 72

									Interim Report
as of June 30, 2011



This English language report is a courtesy translation of the original German report.
For the interpretation of the report the German text shall prevail.




We Invest Into the best entRepReneuRs.
Key Financial Figures

Amounts in EUR million                                 Q1– Q2        Q1– Q2
                                                         2011          2010



Sales                                                     21.9          25.2

EBITDA                                                     2.2           3.1

Consolidated net income                                   14.2           2.0




Amounts in EUR million                              30.06.2011    31.12.2010




Number of investments *                                      8           11

Financial assets                                          32.9          31.2

Liquidity                                                 30.7          41.4

Shareholders’ equity                                      66.3          50.6

Equity ratio                                              67 %         39 %

Total assets                                              98.6        131.1

Liabilities to banks                                       4,0          10.7

Net debt                                                 – 26.7       – 30.7

Stock market price in EUR                                 3.00          4.12

NAV per share in EUR                                      5.63          5.62

Market capitalisation                                     33.5          47.7


* With a value > EUR 1 million according to IFRS.
     Content

 2 Mission statement
 4 highlights in the 1st half of 2011

 6 Letter to shareholders

 8 share

10   Management Report
11   performance of our Core Investments
16   Financial performance
17   Macroeconomic Framework and sector Climate
19   opportunity and Risk Report
25   outlook

29   Consolidated Financial statements
30   Consolidated Income statement
31   segment Reporting
31   Consolidated statement of Comprehensive Income
32   Consolidated statement of Financial position
34   Consolidated Cash Flow statement
35   Consolidated statement of Changes in equity

36 notes to the Interim Consolidated Financial statements
52 statement of Fixed Assets
heLIAD QuARteRLy FInAnCIAL RepoRt                    2
Q2 2011




Mission statement

We are an investment company that supports
companies in growth and change phases as
equity partner.

We focus on established companies aiming for
their next round of growth by increasing capital
or amending their shareholder structures.
We are reliable partners offering solutions even
in complex financing situations.

As reliable partners, we have an entrepreneurial
mindset and act quickly and responsibly.

our stock market listing not only provides us
with great financial flexibility, but also ensures
maximum transparency and legal security for
all of our activities.
MIssIon stAteMent                                               3




                    We are aware of our responsibility towards
                    all of our stakeholders and act in accordance
                    with this.

                    Focusing our activities and organisational
                    structures on this mission helps us to achieve
                    our vision:

                    We aim to attain market leadership in the sector
                    of specialist equity financing and want to stand
                    out by our professionalism, network of contacts
                    and entrepreneurial approach.
heLIAD QuARteRLy FInAnCIAL RepoRt   4
Q2 2011
hIGhLIGhts                                                5




             highlights in the 1st half of 2011


             R. häsler AG on track with buy-and-build strategy
             by acquiring Gerber + Güntlisberger AG.


             Increased liquidity due to receipt of cash from
             sale of the funds neuhaus III, Aheim I and
             Aheim Ia and sale of the investment in bCG
             baden baden Cosmetics Group.


             Deconsolidation of Rt Group due to announce-
             ment of insolvency in March 2011 leads to
             deconsolidation gain.


             Deconsolidation of unicorn by way of sale.


             Relaunch of share buyback programme.
heLIAD QuARteRLy FInAnCIAL RepoRt                                                              6
Q2 2011




Dear Ladies and Gentlemen,
Dear shareholders,




we made further progress in stabilising our portfolio in the 1st half of 2011. Heliad Equity
Partners thus benefited from exit revenues and accounting gains on its publicly listed
investments. Together with the gains of EUR 0.7 million on asset disposals and the decon­
solidation gains from the RT Group and Unicorn, these positive valuation adjustments
of EUR 3.0 million enabled the company to post half­year earnings of EUR 13.7 million.
Our net asset value per share of EUR 5.63 is thus virtually unchanged on the figure as of
31 December 2010. The positive performance of our listed investments had enabled us
to post a higher NAV figure in the 1st quarter. This key figure then slipped slightly in the
2nd quarter due to weaker developments on the stock markets.



suCCessFuL sALe oF InvestMents AnD pLeAsInG AveRAGe
poRtFoLIo peRFoRMAnCe

The investments held in the Aheim I and Aheim Ia funds, via which the investment in
time:matters had been held, were sold with an accounting gain on the basis of a purchase
agreement dated 31 March 2011.

Furthermore, on 3 June 2011 we sold our 40 % stake in BCG Baden­Baden Cosmetics
Group AG at cost and including a debtor warrant. This disposal generated an accounting
gain, as the investment had previously been written down slightly at the end of the
financial year.

The investment held in Unicorn Geld­ und Werttransporte GmbH was sold as of 30 June
2011. The Unicorn Group was deconsolidated out of Heliad’s consolidated financial
statements upon the sale as of 30 June 2011.
LetteR to shARehoLDeRs                                                                                       7




                         On average, the portfolio performed in line with our targets, leading to net increases in
                         sales and earnings. The measures introduced in the 2010 financial year have already led to
                         sustainable improvements. By implementing an add­on acquisition, R. Häsler AG has
                         continued to implement its buy­and­build strategy, while at the same time laying a founda­
                         tion for further growth.



                         posItIve DeveLopMents not ReFLeCteD In heLIAD’s
                         shARe pRICe peRFoRMAnCe

                         While Heliad managed to generate its first positive results in the 1st half of 2011 by selling
                         parts of its portfolio and making necessary adjustments to operations, the company’s
                         share price developed in the opposite direction due to the announcements concerning our
                         negative results for the 2010 financial year. An initial recovery has been apparent since the
                         launch of the share buyback programme.

                         The fact that our net asset value is still significantly higher than our share price shows that
                         the capital market is not yet prepared to place the necessary trust in the company and
                         that Heliad will first have to earn this confidence in the coming quarters. The operating and
                         balance sheet measures already taken and those still planned represent a first major step
                         towards building up that trust.



                         Frankfurt am Main, August 2011

                         Yours faithfully,




                         Andreas Lange
heliaD Quarterly Financial report                                                                   8
Q2 2011




Share




Heliad Share Price vs. NAV

HPB Equity
NAV


  7.00



  6.00



  5.00



  4.00



  3.00



  2.00



  1.00


          07.10   08.10     09.10   10.10   11.10   12.10   01.11   02.11   03.11   04.11   05.11       06.11
SHAre                                                                                     9




        HeliAd’S SHAre Price iNflueNced by SHAre buybAck ProgrAmme
        ANd SelectiVe Portfolio SAleS

        The price of Heliad’s share was influenced in the 2nd quarter by the launch of the share
        buyback programme and the sale of two portfolio companies. Overall, the share price
        declined slightly in the three months from April to June and was listed at EUR 3.00 as of
        30 June 2011 (31 March 2011: EUR 3.40).

        Heliad sold its investments in BCG Baden-Baden Cosmetics Group AG and Unicorn Geld-
        und Wertdienstleistungen GmbH in the 2nd quarter. The resultant announcements were
        mostly positively received on the capital market.

        The share buyback programme was launched on 7 June 2011, drawing on the correspond-
        ing authorisation granted by the Annual General Meeting on 26 August 2010. The pro-
        gramme was extended on 9 June 2011 to enable a higher number of shares to be acquired
        each day. By 30. 06. 2011, a total of 93,099 shares had been acquired at an average price
        of EUR 2.85.



        Stock mArket PerformANce offerS PoSitiVe momeNtum
        for HeliAd’S SHAre

        Stock markets showed overwhelmingly positive developments in the 2nd quarter. The
        SDAX rose 5.3 % to 5,417 points by the end of the quarter (31 March 2011: 5,144 points).
        This development provided positive momentum for the development in Heliad’s share.

        The LPX 50, the index portraying the development in the 50 most liquid and largest private
        equity companies, decreased by 3.0 % in the 2nd quarter. Given its positive performance
        in the 1st quarter, by the end of the first half the index was more or less at the same level
        as at the beginning of the year.



        Net ASSet VAlue Still SigNificANtly HigHer tHAN SHAre Price

        The net asset value per share amounted to EUR 5.63 at the end of the quarter. At 47 %,
        the discount in the share price to the company’s net asset per share remained persistently
        high.

        The three financial analysts monitored by Heliad recommend holding the stock. These
        analysts have stated figures ranging from EUR 3.50 to EUR 4.20 as long-term share price
        targets.

        The investor relations team was available to answer questions about Heliad and its share
        once more in the 2nd quarter. In particular, shareholders and investors were informed in
        detail about the Annual General Meeting and the share buyback programme. The company
        used various communications channels to answer questions, while also pressing ahead
        with its policy of attracting new investors.
heliaD Quarterly Financial report   10
Q2 2011




Interim Group Management
Report
InteRIM GRoup ManaGeMent RepoRt                                                                                             11
peRfoRMance of ouR coRe InvestMents




                                performance of our core Investments

                                oveRvIew of InvestMents

                                Heliad subdivides its investments into core investments and other investments.

                                Core investments include those investments consistent with Heliad’s investment strategy,
                                namely those companies which have scalable business models and contribute a fair
                                value of more than EUR 1 million to the Group’s total net asset value. Following the sale
                                of the investments in time:matters and unicorn, this category currently includes four
                                investments: assona, R. Häsler AG, DEAG, Seven Principles.

                                At the balance sheet date, the net asset value of core investments amounted to EUR 32.6
                                million while the net asset value of other investments amounted to EUR 12.0 million.




             overview of Investments
             as of 30 June 2011




             Core portfolio       Sector                Deal Situation   Investment       Share-    Sales in EUR million Employees
                                                                         since            holding
                                                                                          in %
                                                                                                       2010     2009      2010       2009



             assona               Insurance Brokerage   Buyout           September 2007      97.2      12.9      13.6        60       54

             Häsler               Business Services     Buy-and-Build    December 2009       86.5      15.5      14.1        75       67

             Seven Principles     Business Services     PIPE             November 2005        6.5      79.2      65.9      600       449

             DEAG                 Entertainment         PIPE             December 2008       29.0     125.2     116.7      169       175
heliaD Quarterly Financial report                                                               12
Q2 2011




assona

Year of investment

2007
Sector

Insurance Brokerage
Deal Situation

Buyout


This specialist provider of cover notes and guarantee extensions for electronics appliances
generated sales of EUR 3.1 million in the 2nd quarter of 2011 (YTD: EUR 6.3 million).
In terms of the volume of new contracts concluded, assona thus managed to maintain the
extremely positive trend already seen in the 1st quarter of 2011. By successfully imple-
menting new cooperation agreements, developing innovative product concepts and access-
ing new sales channels, assona can be expected to uphold and further extend its positive
performance in the 2nd half of 2011 as well.

By implementing retailer-specific marketing campaigns, assona has managed to acquire
new sales partners, retain existing partners and tap new distribution channels by offering
innovative products. assona’s status as an independent agent enables it to tailor its
products to meet customers’ individual wishes ever more closely. The company will be
exploiting this flexibility in the future to optimally position itself within its competitive
environment.
InteRIM GRoup ManaGeMent RepoRt                                                                               13
peRfoRMance of ouR coRe InvestMents




                           DeaG

                           Year of investment

                           2009
                           Sector

                           entertainment
                           Deal Situation

                           pIpe


                           DEAG, one of Europe’s leading live entertainment providers, posted clear operating earn-
                           ings growth in the 1st quarter of 2011. EBITDA improved year-on-year by 14 % to EUR 1.8
                           million (previous year: EUR 1.6 million). What’s more, operating earnings (EBIT) grew by
                           23 % to EUR 1.6 million (previous year: EUR 1.3 million). Earnings per share (EPS) rose by
                           33 % to 4 cents per share (previous year: 3 cents). The sales growth of 17 % generated in
                           the 1st quarter was driven by the company’s international classical and rock/pop divisions,
                           as well as by its national folk and pop music segments. Moreover, earnings also benefited
                           from cost savings in the company’s administration, sales and marketing activities. In the
                           medium term, DEAG will continue to profit from the “360 degree strategy” and “content
                           focus” it has adopted. This strategy has enabled it to tap additional revenue sources and
                           generate a wealth of potential opportunities and prospects for the future.

                           DEAG will continue to press ahead with expanding its high-margin classical music business,
                           as well as with further developing its folk and pop music activities. To this end, the company
                           managed to forge long-term links with David Garrett, Anna Netrebko and Erwin Schrott
                           in the 1st quarter and concluded an exclusive sales agreement with Sony Music Entertain-
                           ment Germany in June 2011.
heliaD Quarterly Financial report                                                              14
Q2 2011




R. Häsler aG

Year of investment

2009
Sector

Business services
Deal Situation

Buy-and-Build


In the 2nd quarter of 2011, R. Häsler AG managed to make up for much of the ground
lost in terms of sales and earnings due to its weak start in the 1st quarter, traditionally
a period of low construction activity. Due to an acquisition (add-on acquisition of Gerber +
Güntlisberger AG, Riehen, as of 2 February 2011) and assisted by organic growth, the
company’s half-year sales of CHF 12.0 million were CHF 2.0 million up on the previous
year’s figure.

This pleasing development was driven in particular by the company’s performance in May
and June 2011 – since May 2011 it has managed to generate substantially higher sales.
Due to the cautious accounting treatment (earnings recognition) of several major projects,
the company’s margins have not yet been able to match its sales performance.

Given the volume of orders on hand and the expected recognition of earnings for major pro-
jects, the company’s management expects to reach its targets for the 2011 financial year.
InteRIM GRoup ManaGeMent RepoRt                                                                              15
peRfoRMance of ouR coRe InvestMents




                           seven principles (7p)

                           Year of investment

                           2005
                           Sector

                           Business services
                           Deal Situation

                           pIpe


                           7P posted a very pleasing operating performance in the 1st half of 2011, with 31 % sales
                           growth to EUR 48.4 million (previous year’s period: EUR 36.8 million). Operating earnings
                           (EBIT) showed disproportionate growth of 111 % to EUR 2.5 million in the 1st half (previous
                           year’s period: EUR 1.2 million). This positive business performance was attributable on the
                           one hand to the sharp improvement in the economic climate and on the other to the step-
                           ping up in the company’s sales activities (“Vertrieb@7P“ project). Of the increase in sales,
                           organic growth contributed about 20 percentage points, while the acquisitions made in 2010
                           accounted for about 12 percentage points.

                           After a very strong 1st half 2011 further positive developments are forecast for 2011 as a
                           whole, as demand for IT-related services is expected to increase, especially in the field of
                           mobile solutions and services. The company has therefore corrected both its sales and its
                           earnings forecast upwards.
Heliad Quarterly Financial report                                                                  16
Q2 2011




Financial Performance
In the 1st half of the 2011 financial year, Heliad generated earnings of EUR – 0.4 million
from continuing operations and a consolidated net surplus of EUR 13.7 million (H1 2010:
EUR 2.2 million). The consolidated net surplus after minority interests for the first six months
of the current financial year thus amounted to EUR 14.2 million (H1 2010: EUR 2.1 million).
Consolidated sales amounted to EUR 21.9 million in the 1st half of 2011 (H1 2010:
EUR 25.2 million) and mainly consisted of the sales of EUR 16.6 million generated at sub-
sidiaries (H1 2010: EUR 13.7 million).

The positive half-year earnings were due in particular to the deconsolidation of the RT Group
due to insolvency, which resulted in an earnings contribution of EUR 18.3 million. Further-
more, the group companies classified as continuing operations in the Services segment made
a positive earnings contribution of EUR 3.4 million to consolidated earnings (H1 2010:
EUR 3.0 million). Given the negative development in the stock market prices of our listed
investments, the net impact of the fair value measurement of financial assets (net balance
of revaluations and write-downs) was, at EUR –1,5 million, significantly lower than the equiv-
alent figure of EUR +0.2 million for the 1st half of 2010.

Heliad’s operating earnings before interest, taxes, depreciation and amortisation (EBITDA)
of EUR 2.2 million for the 1st half of 2011 were lower than in the previous year (H1 2010:
EUR 3.1 million).

The year-on-year sales growth at group companies by EUR 2.9 million to EUR 16.6 million
was driven in particular by the improvement in sales at R. Häsler AG.

Following the deconsolidation of the RT Group and unicorn, Heliad has a solid equity ratio
of 67 % (31 December 2010: 39 %).

Cash and cash equivalents at the holding company amounted to EUR 21.2 million as of
30 June 2011 (31 December 2010: EUR 25.4 million). Alongside current operating expend-
iture, funds were used in the 1st half year in particular in order to repay the existing credit
line (EUR 6.9 million) and to service a capital call at a fund investment (EUR 2.6 million).
The development in liquidity on the level of the holding company was driven in particular
by the purchase price payments for Neuhaus III, BCG Baden-Baden Cosmetics Group
and a distribution from a fund investment. Overall, there was therefore a reduction in
the volume of liquidity at the holding company. Due mainly to the repayment of loans,
cash and cash equivalents on group level reduced to EUR 30.7 million (31 December 2010:
EUR 41.4 million).

The reduction in assets and liabilities reported under discontinued operations was due to
the deconsolidation of the RT Group and the Unicorn Group.

The repayment of loans reduced financial liabilities to EUR 4.0 million (31 December 2010:
EUR 10.7 million).

Overall, Heliad thus has a stable financing structure and adequate liquidity to extend
its portfolio with attractive new investments in 2011. Moreover, the pleasing performance
of our portfolio companies in the current year provides a good basis for generating
further sales and earnings growth.
InterIm GrouP manaGement rePort                                                                              17
FInancIal PerFormance
macroeconomIc Framework and Sector clImate




                          macroeconomic Framework and Sector climate
                          1st half of 2011

                          macroeconomIc Framework

                          The overall economy performed well in the 1st half of 2011 Leading economic research
                          institutes expect to see GDP growth of 3.5 % in the current year. The economy already
                          grew by 1.5 % in the 1st quarter of 2011 alone. Compared with historical figures, the Ger-
                          man economy is thus undergoing a period of strong growth. Year-on-year and adjusted
                          for calendar-related factors, GDP grew by 4.9 % by the end of the 1st quarter. This strong
                          growth in the 1st half was chiefly driven by the recovery in domestic demand, consist-
                          ently high export demand and a revival in the construction industry. In the coming year,
                          the rate of GDP growth is expected to decrease slightly to 2.3 %. This is due to the ex-
                          pected slowdown in investment activity and a slight decline in exports. The outlook is also
                          negatively affected by the uncertainty on the capital markets due to the yet unsolved euro
                          debt crisis.

                          With a net balance of 27.0 points, the KfW-ifo Mittelstandsbarometer, an indicator of con-
                          fidence among medium-sized companies, remained high in June 2011. Companies are
                          especially positive in their assessment of their current situation, where the relevant figures
                          have risen to record levels. By contrast, companies’ expectations as to their future busi-
                          ness performance have slipped since the beginning of the year, reflecting a more cautious
                          assessment of the further development in the growth trend in the 2nd half of the year.
                          The pleasing figures for the overall assessment are due to medium-sized companies’ assess-
                          ments of their current situations.

                          The German economy currently stands out positively when compared with its international
                          peers. Even though the USA also reached a level of GDP more or less corresponding to
                          pre-crisis levels at the beginning of 2011, the EU as a whole has so far only made up for
                          62 % of its crisis-related downturn in output. These figures underline the sound funda-
                          mental state of the German economy.



                          develoPmentS In the PrIvate equIty Sector

                          Overall, the private equity sector can look back on a positive 1st half. At EUR 1,169 million,
                          the volume of direct investment in German companies in the 2nd quarter was slightly down
                          on the previous quarter’s figure of EUR 1,362 million. All in all, however, it is apparent that
                          investment activity has stabilised once again. With a 79 % share, buyout transactions once
helIad quarterly FInancIal rePort                                                                                                              18
q2 2011




again accounted for by far the largest share of transactions. At 21, the number of trans-
actions in the 2nd quarter more or less matched the figure for the 1st quarter (23 trans-
actions). Based on its statistics for the German private equity market, the BVK sector asso-
ciation expects to see ongoing positive developments in the year as a whole.

The German Private Equity Barometer rose by 5 points to 47.0 points in the 1st quarter of
2011. This positive assessment was supported by both early-stage and late-stage players.

Confidence in the late-phase financing segment relevant to Heliad improved further in the
1st quarter. The business confidence index here rose to 53.5 points. The positive overall
trend witnessed with only brief interruptions since 2009 has thus continued. The positive
figure is mainly due to positive assessments concerning exit opportunities and fundraising
conditions. Confidence in the sector has also benefited from a lower need for write-downs
of entire investments. Consistent with this development, companies are generally negative
in their assessment of entry prices for new investments. This development is not surprising
given the development in market conditions.

From companies’ perspectives, current borrowing opportunities can also be assessed posi-
tively. The credit hurdle calculated by the ifo institute reduced yet again to 21.4 % in June,
thus even falling short of its previous low in the summer of 2007.

Given these figures and the future outlook, the private equity market currently offers posi-
tive opportunities for Heliad. Market conditions for new investments and targeted exits are
mostly advantageous and justify a positive outlook for the financial year as a whole.




Sources: Bundesverband Deutscher Kapitalbeteiligungsgesellschaften (BVK): Der deutsche Beteiligungsmarkt im 1. Quartal 2011,
ifo Institut für Wirtschaftsforschung e.V.: Die Kredithürde – Ergebnisse des ifo Konjunkturtests im Juni 2011, ifo Institut für Wirtschafts-
forschung e.V.: ifo Geschäftsklima Deutschland – Ergebnisse des ifo Konjunkturtests im Juni 2011, KfW Bankengruppe: German
Private Equity Barometer – 1. Quartal 2011, KfW Bankengruppe: KfW-ifo-Mittelstandsbarometer: Juni 2011, KfW Bankengruppe:
KfW Investbarometer: Juni 2011, Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI) – Pressemitteilung vom 16. 06. 2011.
InterIm GrouP manaGement rePort                                                                                19
macroeconomIc Framework and Sector clImate
oPPortunIty and rISk rePort




                              opportunity and risk report
                              oPPortunItIeS oFFered by helIad’S buSIneSS model

                              opportunities upon acquisition

                              To perform positively, Heliad needs access to new investment opportunities. Only by
                              making an adequate number of transactions and future profitable exits we can manage
                              Heliad profitably.

                              Our aim is to gain early awareness of investment opportunities arising in German-speaking
                              countries and to ensure that we have the resources and instruments necessary to secure
                              an adequate, high-quality deal flow. The new management team has developed and imple-
                              mented IT-supported processes for this purpose. By working with various filter processes,
                              we are able to manage the deal flow ourselves in quantitative and qualitative terms. Overall,
                              we expect this targeted acquisitions strategy to enable us to identify promising companies
                              and raise the probability of deals actually being completed by avoiding structured sales pro-
                              cesses with increased competition.

                              The excellent network available through the investment team and the Angermayer, Brumm &
                              Lange Group provides an ongoing supply of new investment opportunities. This network
                              consists of former investment partners, banks, advisors, lawyers and auditors, as well as of
                              experienced industry experts with whom we work together when identifying and reviewing
                              investment opportunities.

                              We were offered around 100 investment opportunities in the past financial year. Due to the
                              period of transition at Heliad (including the merger with TIG and the change of management),
                              these investment opportunities could not always be pursued consistently. The newly intro-
                              duced structured deal sourcing process will significantly increase the number of investment
                              opportunities identified and offered in the coming year, while simultaneously enhancing the
                              suitability of such transactions to Heliad’s needs.



                              opportunities during the holding period

                              During the holding period, Heliad focuses on implementing the chosen growth strategy,
                              and thus on increasing the value of its investments. Current income from investments, such
                              as dividends, profit shares and interest income support Heliad’s economic performance.

                              The new management will accord greater importance to the supervision and development
                              stage at portfolio companies. New controlling structures and processes are already being
                              established to ensure consistent monitoring of the development and exit strategy, as well as
                              to proactively identify value growth potential. Consistent integration into our day-to-day
                              business will enhance the performance of our portfolio companies.
Heliad Quarterly Financial report                                                               20
Q2 2011




opportunities upon company exits

Our stock market listing and the availability of adequate liquidity resources means that we
are not obliged to make overly hasty exits or to sell investments at inappropriate times as
it is sometimes the case with traditional private equity structures. We rather cooperate with
the management of our portfolio companies on the basis of an exit strategy defined at the
beginning of the investment that enables us to realise the created value at a suitable time.

Due to our excellent network and industry expertise, we have especially valuable contacts
when it comes to implementing divestments.



rISk rePort

risk management

Risk management at Heliad involves optimally managing those significant risks arising
due to its business activities and effectively exploiting opportunities. One of the key risk
management tasks involves identifying, analysing, managing and monitoring risks.

The main opportunities and risks faced by an investment company result from the acquisi-
tion, holding and sale of investments. The management of opportunities and risks is there-
fore closely linked to the operating business of the investment team and firmly integrated
into the relevant processes. Opportunities and risk should be weighed up in such a way as
to enable opportunities to be seized without any risk to Heliad’s continued existence.

Our risk management system is based on our Risk Handbook, which we believe presents
and evaluates all significant risks. We have laid down suitable measures to manage and
monitor risks and have integrated these measures into our processes. These are supple-
mented by a large number of instruments and measures which we draw on to monitor
and manage specific company opportunities and risks.

The management monitors, maintains and enhances the risk management system on an
ongoing basis. The results of current risk observation are summarised in a quarterly risk
management report. Risks are monitored immediately should unexpected relevant develop-
ments occur.

The management deals directly with the evaluation and management of opportunities and
risks, regularly reviews whether assessments have changed and determines the measures
to be taken as a result. Due to its regular involvement with the investments, the management
is aware of all key opportunities and risks.

The management informs the Supervisory Board at least once a quarter about the risk
situation at the company and its portfolio companies. The Supervisory Board is informed
immediately in the event of any unexpected, material change in the risk situation.

We currently see no risks that could endanger Heliad’s continued existence.
InterIm GrouP manaGement rePort                                                                                    21
oPPortunIty and rISk rePort




                              Internal controlling system in respect of the financial reporting process

                              Key features of the internal controlling and risk management system in respect of the finan-
                              cial reporting process involve regular, analytical reviews of the main processes involved
                              in the financial reporting process. Heliad has a clearly defined organisational, controlling
                              and supervisory structure, one which the new management team has also provided with
                              extended structures and processes. The processes involved in financial reporting are clearly
                              allocated. All individuals involved in the financial reporting process are suitably qualified
                              for the relevant tasks. They are also sufficient in number to ensure that the tasks can be man-
                              aged. The completeness and accuracy of the financial reporting data is regularly reviewed
                              on the basis of manual trial samples and plausibility checks. Given the limited number of
                              transactions, entries are checked regularly and virtually in full. Relevant risks are docu-
                              mented. The management and Supervisory Board regularly address the key issues involved
                              in financial reporting and risk management.



                              company-related risks

                              management and personnel risks
                              Heliad’s success is closely linked to the composition and competence of its management
                              team. This is due not least to the small scale of the overall organisational structure, one in
                              which every individual is called on to make a responsible contribution.

                              Heliad further enhanced the professionalism of its team at the end of 2010 by taking on
                              new staff with many years of experience in finance, private equity and consulting gained at
                              renowned companies. The resultant mix of skills and degree of professionalism enable us
                              to contribute maximum expertise in every stage of the investment process.

                              Information systems (It)
                              Our business needs suitable software and hardware. Above all, it also requires data secu-
                              rity, ensuring that authorised parties have access at all times to the relevant data and pro-
                              tecting data from unauthorised access. Heliad works with an external provider to manage
                              its IT systems.

                              No IT-related risks were discernible in the past financial year. We do not expect any change
                              in our operating risk situation.



                              risks specific to heliad’s business model

                              risks upon acquisition
                              The investment strategy is the key factor in determining Heliad’s opportunity /risk
                              profile. This was revised in the 2010 financial year and is subject to permanent review and
                              enhancement.

                              We focus on acquiring companies already established that have leading market positions
                              and business models offering potential for growth. We mostly acquire companies that
                              do not have large-scale investment requirements in order to avoid subsequent follow-up
                              financing rounds for our investments. Furthermore, no loss on an individual investment
Heliad Quarterly Financial report                                                                   22
Q2 2011




may endanger Heliad’s continued existence. For this reason, individual investments are
generally made on a scale of up to EUR 10 million per transaction.

During the acquisition stage, it is essential for us to understand the business model and
market and to identify and evaluate the resultant risks. Alongside our experienced team
we also work with external advisors who support us when reviewing companies in financial,
tax and legal terms (due diligence).

We prefer the management teams of portfolio companies to invest in their companies as
well in order to enhance their commitment even further and ensure a community of inter-
est when it comes to increasing and realising the value of their companies.

Each investment is presented to the Supervisory Board before being implemented.

risks during the holding period
The development in our investments directly influences Heliad’s performance. However, no
negative performance or decline in value at an investment should be permitted to endanger
Heliad’s position.

We initially review additional financing requirements at a portfolio company by reference
to the same criteria we apply for new investments. Moreover, further aspects are also
factored into the decision. In some circumstances, this may then increase the risk profile of
the follow-up financing.

Should a portfolio company perform negatively, this may at worst lead to the loss of all
of the capital invested. This may involve further negative consequences, such as a loss of
reputation.

We counter this risk by working with a range of risk supervision instruments, and in partic-
ular by analysing monthly and quarterly reports and ensuring that the relevant investment
manager is regularly present on location at the portfolio company. Furthermore, the man-
agement is also represented on the supervisory or advisory boards of many companies and
advises them in various matters. The investment controlling department evaluates infor-
mation independently and calculates the net asset value per portfolio company each quarter.
We analyse the investments by reference to these quarterly reports. We also discuss the
latest developments at weekly update meetings.

risks upon company exits
We lay foundations for a successful exit during the acquisition stage already. This way, we
only enter into investments which will subsequently attract clear interest from strategic
or financial investors. In our quarterly discussions of the controlling reports we regularly also
address the relevant exit opportunities.
InterIm GrouP manaGement rePort                                                                                    23
oPPortunIty and rISk rePort




                              macroeconomic and market-related risks

                              macroeconomic risks
                              Heliad’s economic performance is dependent on the economic performance of its portfolio
                              companies. As our portfolio companies operate in different sectors and regions, their per-
                              formance is influenced by a variety of sector-specific and regional economic developments
                              and political and financial frameworks. Given the diversification of the investment portfolio
                              across various sectors and regions within German-speaking countries, only a small number
                              of investments are affected by specific economic developments.

                              developments due to the financial crisis
                              As the company mainly specialises in the services sector, its investments were not affected
                              by the financial crisis to the same extent as companies operating in capital-intensive sectors.

                              However, the financial crisis also meant that less debt financing resources were available
                              and that a correspondingly lower volume of investments was traded, as a result of which
                              fewer potential buyers were available.



                              Sector-specific risks

                              Heliad’s performance is directly dependent on its access to new investment opportunities.
                              The company’s business model can only succeed if there is an adequate number of potential
                              investment and profitable exit opportunities. We have no possibility of influencing develop-
                              ments in the private equity market. Our possibilities of countering the risk of a decline in the
                              number of potential investment opportunities are correspondingly limited.



                              Financial risks

                              Interest, currency and liquidity risks
                              Heliad typically finances its acquisitions with equity and bank loans. The structuring of this
                              financing is a crucial factor during the acquisition stage.

                              Liquidity risk involves the risk of the company’s liquid funds being insufficient for it to meet
                              its financial obligations on time. Notwithstanding the restrictive debt market, we classify our
                              liquidity risk as relatively low. This is due to our solid financing structure. As of the balance
                              sheet date, we had a comparatively high volume of cash funds, amounting to EUR 30.7 mil-
                              lion (Group level).
Heliad Quarterly Financial report                                                               24
Q2 2011




On the level of the portfolio companies, the development in liquidity, debtor creditworthi-
ness and payment obligations is monitored within period-based reporting structures, as
well as by the relevant investment manager at Heliad.

Accordingly, Heliad’s exposure to risks in connection with a lack of refinancing funds or
rising interest rates is currently comparatively low.

Exchange rate movements only affect Heliad’s performance to a relatively limited extent.
R. Häsler AG, a Swiss company acquired in December 2009, is exposed to EUR / CHF
exchange rate risks. The other portfolio companies generate most of their sales in the
euro area.



Investment opportunity and risk report

The investment business is typically exposed to risks in the relevant sectors and due to the
macroeconomic cycle. The diversification of our portfolio enables us to counter part of this
risk. Our investment focus on established companies minimises the risk of high follow-up
financing requirements at our investments due to reinvestments in non-current assets.

Heliad is nevertheless exposed to risks arising due to potential below-average developments
at its portfolio companies and the resultant risks to its NAV and annual results. These also
include the risk of portfolio company insolvency, a possibility which cannot be excluded. We
have countered valuation risks with the conservative balance sheet approach maintained in
the 1st half of 2011. We counter insolvency risks by taking suitable measures at the compa-
nies. However, it is not possible to provide any guarantee that Heliad’s management will
succeed in profitably managing its investments.



overall assessment of risk at heliad equity Partners

Overall, the assessment of all of the aforementioned risk aspects shows that the risks faced
by the Group and its investments primarily involve market and macroeconomic risks and
those risks typical to the investment business. Based on the information currently available,
individual and cumulative risks currently present no threat to Heliad’s continued existence.
Moreover, no financial risks that could inhibit the company in its development are currently
discernible.
InterIm GrouP manaGement rePort                                                                                   25
oPPortunIty and rISk rePort
outlook




                              outlook
                              Global economIc Framework

                              The macroeconomic situation is moreover positive. Leading economic research institutes
                              have forecast growth of 3.5 % for 2011 as a whole. This rate of growth is expected to
                              decline to 2.3 % in 2012, as the economy is not expected to maintain the currently very
                              high levels of investment and exports.

                              Medium-sized companies, the economic segment particularly relevant to Heliad, are
                              cautiously positive in their assessment of economic developments. While the current situa-
                              tion is assessed very favourably, companies’ expectations as to their future business per-
                              formance have deteriorated since the beginning of the year. Having said this, companies
                              nevertheless remain positive concerning their future development.

                              Macroeconomic risks result from the intensification of the yet unsolved debt crisis of the
                              euro area, a factor that could impact negatively on exports. The downgrading in the credit-
                              worthiness of the USA and resultant negative reaction on the capital markets represents
                              a further source of uncertainty. Additionally, there is the risk that the recovery in domestic
                              demand will stall. Any failure on the part of private consumer spending to recover could
                              impact negatively on the development in the overall economy in Germany.

                              Heliad’s situation is thus on the one hand positively affected by the underlying economic
                              framework, while on the other hand the uncertainty on the capital markets means that
                              its listed investments still have relatively weak valuations. However, the company is not
                              exposed to any exceptional risks and the outlook is therefore positive overall.



                              outlook For InveStment market and InduStry clImate

                              Market players are overwhelmingly confident in their assessment of the situation in
                              the private equity sector. The number of transactions and investment volumes stabilised
                              towards the end of the 1st half of 2011. Market players expect these positive developments
                              to continue in the 2nd half of the year and in 2012.

                              Capital providers are especially positive in their assessment of the fundraising situation and
                              exit opportunities. Accordingly, the improvement in market conditions means that entry
                              prices for investments can be expected to increase. As entry prices have risen significantly
                              in the past 12 months, this factor has a sustainable impact on the company’s outlook.

                              All in all, the positive developments in the private equity market can be expected to continue
                              in 2011. For Heliad, current market conditions offer opportunities to make new invest-
                              ments and targeted exits. Heliad can therefore issue a mostly positive outlook concerning
                              developments in the sector and the overall market.
Heliad Quarterly Financial report                                                                   26
Q2 2011




outlook For helIad

business policy in view of the situation on investment markets
(planned acquisitions, exits)

Given our strategic alignment and our capital resources, we believe we are well positioned
in the current market environment and expect Heliad to perform stable in the course of
2011. Given the high uncertainity regarding the macroeconomic development, however, we
will be very selective in terms of making new investments. We aim to have sufficient room
for manoeuvre in financial terms in the event of any medium-term deterioration in the
business climate. Having said this, the continuing recovery in the private equity industry
should generate attractive exit opportunities.



Short-term targets

In the short term, we will be focusing on stabilising and enhancing our portfolio, as well
as on pressing ahead with the further disposal of individual investments. Alongside
these measures, we also plan to make one to two acquisitions in the 2011 financial year.



Indications for medium-term outlook

In the medium term, we plan to secure Heliad’s profitability in line with our optimised pro-
cesses and structures by exploiting the maximum potential available in the existing portfolio.
We also aim to exclusively acquire investments that offer substantial growth and earnings
potential, are consistent with our strategy and favourably priced. In this, the company should
largely finance its activities internally from its day-to-day income and via disposals.



expected earnings position in 2011 and subsequent years

Earnings from the investment business are set to grow in future. However, these earnings
are at present not quantifiable. On the one hand, it is currently not possible to issue any reli-
able forecast concerning macroeconomic developments in the coming years, a factor that
will directly influence the performance of the portfolio. On the other hand, this would require
a forecast concerning investments and divestments in our portfolio. We cannot reliably fore-
cast these factors.

Furthermore, consolidated sales at continuing operations are set to increase further in view
of the further revival in the economy throughout 2011 as a whole.

Other operating expenses at the Heliad holding company will reduce on account of the
measures taken to cut costs.
InterIm GrouP manaGement rePort                                                                               27
outlook




                          development in liquidity

                          From a current perspective, Heliad will be further pursuing its investment strategy.
                          The company will thus be making one to three investments a year. Depending on the
                          specific situations involved, purchases and sales may also be delayed. In general,
                          however, we expect to execute a comparable number of acquisitions and disposals.

                          Our liquidity is expected to reduce as we plan to seize attractive investment oppor-
                          tunities. Furthermore, there is the risk that individual investments will require follow-up
                          financing during the stabilisation stage.



                          dividend policy

                          Last year, Heliad defined the basic features of its future dividend policy. Accordingly, the
                          company plans to distribute 25 % to 50 % of its profit to its shareholders. Such distributions
                          are based on the company’s unappropriated net profit calculated in accordance with the
                          German Commercial Code (HGB). However, our primary aim is firstly to stabilise Heliad’s
                          earnings performance to enable us to distribute dividends thereafter.



                          Summary of expected developments

                          Given the measures introduced in 2010 to optimise the company’s structures, processes
                          and portfolio and the expected continuation in the economic recovery, Heliad has laid a
                          strong foundation in 2011 for its performance in the coming years, not least in view of its
                          robust liquidity situation. The management is therefore confident that, assuming the
                          macroeconomic framework remains stably positive and the climate on the capital markets
                          remains favourable, the company should be able to generate positive group earnings in
                          the current and following financial years.
Heliad quarterly Financial report
q2 2011
                                 29




Interim Consolidated Financial
Statements
Heliad quarterly Financial report                                                                                               30
q2 2011




Consolidated Income Statement
for the 1st half of 2011




Amounts in EUR k                                        Notes       01. 01. –   Comparison          01. 04. –   Comparison
                                                                30. 06. 2011        01. 01. –   30. 06. 2011        01. 04. –
                                                                                 30.06.2010                      30.06.2010



 1. Proceeds on the sale of financial assets              8.1         5,261          11,516           4,511           9,041

 2. Other sales revenues                                  8.2        16,634          13,727           9,520           6,931

 3. Other operating income                                8.4         4,314           2,085           3,673           1,204

 4. Income from revaluation                               8.5         2,991           3,000          –1,590           1,382

 5. Retirement of financial assets                        8.6        – 4,561        –10,822          – 3,811         – 8,220

 6. Cost of purchased services                            8.7        – 6,248         – 3,972         – 3,746         –2,199

 7. Personnel expenses                                    8.8        – 4,216         – 3,651         –2,257          –1,950

 8. Amortisation and depreciation of intangible
    assets and property, plant and equipment              8.9          – 290           – 272           –148            – 146

 9. Other operating expenses                             8.10        – 9,018         – 5,775         – 4,829         – 2,279

10. Write-downs of financial assets and securities       8.11        – 4,509         – 2,798         –2,728          –1,348

11. Other financial income                               8.12            236            625               95            336

12. Interest and similar expenses                        8.13            –16           – 208              89           –102

13. Earnings before taxes                                                578          3,455          –1,221           2,650

14. Taxes on income                                                    – 997         –1,229            – 406           – 561

15. Earnings from continuing operations                                – 419          2,226          –1,627           2,089

16. Earnings from discontinued operations                8.14        14,136                0           – 767               0

17. Result for the period                                            13,717           2,226          – 2,394          2,089

18. Result for period attributable to non-controlling
    interests                                            7.12            484           –166             405                1

19. Result for period attributable to limited
    shareholders                                                     14,201           2,060          –1,989           2,090

EarnIngS pEr SharE
(dIlutEd and baSIC) Eur                                  8.15          1.26            0.20           – 0.17           0.20
IntErIm ConSolIdatEd FInanCIal StatEmEntS                                                                                                       31




              Segment reporting
              for the 1st half of 2011

              Amounts in EUR k                               Services                           Investment and                  group total
                                                                                                other activities

                                                                 01. 01. –          01. 01. –       01. 01. –       01. 01. –       01. 01. –        01. 01. –
                                                             30. 06. 2011       30. 06. 2010    30. 06. 2011    30. 06. 2010    30. 06. 2011     30. 06. 2010



              Proceeds from the sale of financial assets                   0               0          5,261          11,516           5,261           11,516

              Sales with external customers                           15,704         13,381              930            346          16,634           13,727

              Other operating income                                   3,470          1,677              844            408           4,314            2,085

              Income from the revaluation of
              financial instruments                                        0               0          2,991           3,000           2,991            3,000

              Retirement of financial assets                               0               0         – 4,561        –10,822          – 4,561         –10,822

              Cost of purchased services                              – 6,248       – 3,972                0               0         – 6,248          – 3,972

              Personnel expenses                                      – 4,216       – 3,651                0               0         – 4,216          – 3,651

              Amortisation and depreciation of intangible
              assets and property, plant and equipment                 – 274           – 265             –16              –7           – 290            – 272

              Other operating expenses                                – 4,134        –1,779          – 4,884         – 3,996         – 9,018          – 5,775

              Write-downs of financial assets                              0               0         – 4,509         – 2,798         – 4,509          – 2,798

              SEgmEnt opEratIng EarnIngS                              4,302           5,391         – 3,944         – 2,353             358            3,038

              Net financial result                                                                                                      220              417

              Taxes                                                                                                                    – 997          –1,229

              EarnIngS From ContInuIng
              opEratIonS                                                                                                               – 419           2,226

              Segment assets                                          73,877         40,756          30,326          93,039         104,203          133,795

              Consolidation                                                                                                          – 5,562         – 20,535

              SEgmEnt aSSEtS aFtEr
              ConSolIdatIon                                                                                                          98,641          113,260

              Investments in non-current assets
              (excluding financial assets)                               361            373                0              30             361             403




              Consolidated Statement of Comprehensive Income
              for the 1st half of 2011

              Amounts in EUR k                                                                      01. 01. –   Comparison          01. 04. –   Comparison
                                                                                                30. 06. 2011        01. 01. –   30. 06. 2011        01. 04. –
                                                                                                                 30.06.2010                      30.06.2010



              Result for period                                                                      13,717           2,226          – 2,394           2,089

              Unrecognised gains and losses on currency translation                                      370         –1,398            – 307          –1,085

              ComprEhEnSIvE InComE                                                                   14,087             828         – 2,701            1,004

                 of which attributable to non-controlling interests                                      250            173              171                5

                 of which attributable to limited shareholders                                       13,837             655          – 2,872             999
Heliad quarterly Financial report                                                                         32
q2 2011




Consolidated Statement of Financial position
for the 1st half of 2011




assets


Amounts in EUR k                                                 Notes      30. 06. 2011   Comparison
                                                                                            31.12. 2010



non-CurrEnt aSSEtS

Goodwill                                                        7.1 / 7.2         8,745          8,728

Other intangible assets                                         7.1 / 7.3         1,205          1,190

Property, plant and equipment                                   7.1 / 7.3         1,138          1,090

Financial assets

   Investments                                                  7.1 / 7.4        17,357         16,947

   Loans to companies linked by virtue of investment            7.1 / 7.4            98            196

   Loans                                                        7.1 / 7.4           787            723

   Investment securities                                        7.1 / 7.4        14,690         13,372

Deferred taxes                                                        6.             75             66

Other non-current assets                                                              0             17

total non-CurrEnt aSSEtS                                                        44,095         42,329


CurrEnt aSSEtS

Work in progress                                                     7.5          1,324            826

Inventories                                                          7.5            226            205

Trade receivables                                                    7.6         15,497          8,171

Receivables from companies linked by virtue of investment                            35             23

Other assets                                                         7.7          6,462          6,957

Cash and cash equivalents                                            7.8         30,719         41,391

Assets classified as held for sale                                   7.9            283          4,922

Assets at discontinued operations classified as held for sale      7.10               0         26,269

total CurrEnt aSSEtS                                                            54,546         88,764


                                                                                98,641        131,093
INterIm CoNSolIdAted FINANCIAl StAtemeNtS                                                                        33




              equity and liabilities


              Amounts in EUR k                                                            Notes   30. 06. 2011   Comparison
                                                                                                                  31.12. 2010



              equIty

              Share capital                                                                7.11        12,146          12,146

              Capital reserve                                                                          45,332          45,332

              Retained earnings                                                                        –2,167          17,585

              Treasury stock                                                               7.11        – 3,728         – 3,463

              Result for the period attributable to limited shareholders in the company                14,201         –19,388

              equIty ComPoNeNtS AttrIbutAble to lImIted ShAreholderS                                  65,784           52,212

              Non-controlling interests                                                    7.12           512          –1,636

              totAl equIty                                                                            66,296           50,576


              NoN-CurreNt lIAbIlItIeS

              Pension provisions                                                           7.13           365             351

              Deferred taxes                                                                 6.           806             516

              Non-current provisions                                                       7.13           414             387

              Provisions for share-based payments                                          7.13           875             841

              Liabilities to banks                                                         7.14         3,587           8,209

              Other non-current liabilities                                                                 8               8

              totAl NoN-CurreNt lIAbIlItIeS                                                            6,055           10,312


              CurreNt lIAbIlItIeS

              Provisions                                                                   7.13         3,538           2,777

              Liabilities to banks                                                                        417           2,498

              Trade payables                                                               7.15         1,650           2,192

              Other liabilities                                                            7.15        20,685          20,353

              Liabilities at discontinued operations                                       7.10             0          42,385

              totAl CurreNt lIAbIlItIeS                                                               26,290           70,205


                                                                                                      98,641          131,093
Heliad quarterly Financial report                                                                                                                                34
q2 2011




Consolidated Cash Flow Statement
for the 1st half of 2011




Amounts in EUR k                                                                                             Notes             01. 01.–       Comparison
                                                                                                                          30. 06. 2011             01. 01.–
                                                                                                                                              30. 06. 2010



 1.       Result for the period                                                                                                 13,717                  2,060

 2. +     Depreciation of non-current assets and amortisation of securities                               7.4 / 8.11             4,799                  3,070

 3. –     Write-ups of financial instruments                                                               7.4 / 8.5            – 2,991                – 3,000

 4. – /+ Other non-cash income /expenses                                                                                        – 2,214                   694

 5. +/– Increase /decrease in provisions                                                                       7.13                 835                – 2,318

 6. +/– Decrease /increase in receivables and other assets                                                                      20,776                 – 5,088

 7. – /+ Decrease /increase in liabilities                                                                                    – 41,916                  3,040

 8. =     CaSh Flow uSEd In opEratIng aCtIvItIES*                                                                              –6,994                  –1,542
 9. –     Payments for investments in intangible assets and property,
          plant and equipment                                                                                   7.1               – 361                 – 403

10. –     Payments for acquisitions of subsidiaries                                                               4.              – 885                     0

11. –     Payments for loans made to other parties                                                              7.1                – 35                     0

12. –     Payments for investments in financial assets and securities                                           7.1             – 2,945                – 3,998

13. +     Proceeds from disposals of financial assets and securities                                                             5,261                 11,516

14. =     CaSh Flow From InvEStIng aCtIvItIES                                                                                    1,065                 7,115
15. +     Proceeds from taking up of loans                                                                                             0                3,450

16. –     Payments for redemption of loans                                                                                      –6,926                 – 5,857

17. –     Buyback of treasury stock                                                                            7.11               – 266                –1,110

18. =     CaSh Flow uSEd In FInanCIng aCtIvItIES                                                                               –7,191              – 3,517

19.       nEt InCrEaSE In CaSh and CaSh EquIvalEntS
          (Subtotal oF lInES 8, 14 and 18)                                                                                    –13,121                  2,056

20. – /+ Net foreign exchange difference                                                                                             54                     0

21. +     Increase in cash and cash equivalents due to first-time consolidations                                  4.                881                     0

22. +     Cash and cash equivalents at continuing operations
          at beginning of period                                                                                                41,391                 26,630

23.       CaSh and CaSh EquIvalEntS at ContInuIng opEratIon
          at End oF pErIod                                                                                                     29,205              28,686

24. +     pledged cash and cash equivalents                                                                     7.8              1,514                  1,511

25. =     amount dISCloSEd In balanCE ShEEt                                                                                    30,719              30,197



* The negative cash flow from operating activities in the 1st half of 2011 is mainly due to the conversion in the settlement system at a subsidiary.
 Furthermore, the figure includes the cash flow from operating activities at discontinued operations.
 (Note 8.14).
IntErIm ConSolIdatEd FInanCIal StatEmEntS                                                                                  35




Consolidated Statement of Changes in Equity




1 January 2011 –                 Share    Capital   retained        Result of   Treasury      total equity         Non-    total equity
30 June 2011                    capital   reserve   earnings      the period       stock     components      controlling
                                                                attributable               attributable to     interests
                                                                   to limited               shareholders
                                                               shareholders
Amounts in EUR k                                                in company

balanCE at 31.12. 2010          12,146    45,332     17,585                     – 3,463           71,600        –1,636          69,964
rESult oF thE
pErIod 2010                                         –19,388                                      –19,388                        –19,388
balanCE at 01. 01. 2011         12,146    45,332     –1,803                     – 3,463           52,212        –1,636          50,576
Result of the period                                      0          14,201                       14,201          – 484         13,717
Currency differences                                   – 364                                        – 364           734             370
ComprEhEnSIvE InComE                                   – 364        14,201                        13,837           250          14,087
Disposal of subsidiaries                                                                                0        1,898            1,898
Acquisition of treasury stock                                                      – 265            – 265                         – 265
balanCE at 30. 06. 2011         12,146    45,332     – 2,167        14,201      – 3,728           65,784           512          66,296

Note                              7.11                                             7.11                            7.12




1 January 2010 –                 Share    Capital   retained        Result of   Treasury      total equity         Non-    total equity
30 June 2010                    capital   reserve   earnings      the period       stock     components      controlling
                                                                attributable               attributable to     interests
                                                                   to limited               shareholders
                                                               shareholders
Amounts in EUR k                                                in company


balanCE at 31.12. 2009          10,853    42,419     28,443                     – 2,063           79,652         6,996          86,648
rESult oF thE
pErIod 2009                                          – 9,893                                      – 9,893                       – 9,893
balanCE at 01. 01. 2010         10,853    42,419     18,550                     – 2,063           69,759         6,996          76,755
Capital increase in kind           862      2,439                                                   3,301                         3,301
Change in shareholding not
leading to loss of control                             1,065                                        1,065       – 4,266          – 3,201
Currency differences                                  –1,391                                       –1,391            –7          –1,398
Acquisition of treasury stock                                                    –1,110            –1,110                        –1,110
Result of the period                                                  2,060                         2,060           166           2,226
balanCE at 30. 06. 2010         11,715    44,858     18,224           2,060     – 3,173           73,684         2,889          76,573
Heliad quarterly Financial report                                                               36
q2 2011




notes to the Interim Consolidated
Financial Statements
as of 30 June 2011
1
general disclosures

Heliad has its registered office in Grüneburgweg 18, Frankfurt / Main, and is registered in
the Commercial Register of Frankfurt / Main District Court (HRB 73524).

Heliad is an investment company that supports companies in growth and change phases as
Equity Partner. The object of Heliad’s business is the acquisition, holding, management
and sale of majority and minority investments in private and publicly listed companies and
investments in private equity funds (venture capital, buyout, special situations, mezzanine),
as well as the performance of management, consulting and other services, particularly for
the companies in which it invests, to the extent that no specific legal authorisation is re-
quired to perform such services. Furthermore, the company is also authorised to invest its
cash assets in securities of all kinds on its own behalf and on its own account.

The consolidated financial statements have been prepared in euros (EUR). All of the amounts
stated in these notes to the consolidated financial statements, including the previous year’s
figures, are denominated in thousand euros (EURk).

The income statement has been prepared using the total cost method.

The company’s financial year corresponds to the calendar year.




2
accounting policies

baSIS oF prEparatIon

These interim consolidated financial statements of Heliad Equity Partners GmbH & Co. KGaA
(hereinafter “Heliad”) have been prepared in accordance with International Financial Report-
ing Standards (IFRS) as applicable in the European Union. The accounting policies applied
in the interim financial statements are consistent with IAS 34 – Interim Financial Reporting.
notES to thE IntErIm ConSolIdatEd                                                                               37
FInanCIal StatEmEntS




                            The company has drawn on the possibility provided for under IAS 34.7 of voluntarily disclos-
                            ing additional information. These financial statements nevertheless do not include all notes
                            and disclosures required for year-end financial statements and should therefore be read in
                            conjunction with the consolidated financial statements prepared in accordance with IFRS as
                            of 31 December 2010. The interim financial statements have not been subject to any audit
                            review pursuant to § 37w (5) of the German Securities Trading Act (WpHG), neither have they
                            been audited pursuant to § 317 of the German Commercial Code (HGB).



                            aCCountIng polICIES applIEd

                            The accounting policies applied here are basically consistent with those applied in the con-
                            solidated financial statements as of 31 December 2010 apart from the following IFRS and
                            interpretations that only became effective as of 1 January 2011:



                            nEw StandardS, IntErprEtatIonS or amEndmEntS thErEoF,
                            adoptEd by thE group

                            IaS 24 “related party disclosures (amended)”
                            The amended version of this standard requires application in financial years beginning on
                            or after 1 January 2011. The amendment has clarified the definition of related parties to
                            facilitate the identification of such parties and eliminate inconsistencies in application. The
                            amended standard has partly exempted companies closely related to a government body
                            from disclosure obligations. The Group does not expect this amendment to have any impli-
                            cations for its net asset, financial and earnings position. Premature application is permitted
                            both for the exemption requirements and for the overall standard.

                            IaS 32 “Financial Instruments: presentation –
                            Classification of rights Issues (amended)”
                            The amended version of IAS 32 requires application in financial years beginning on or after
                            1 February 2010. The definition of a financial liability has been amended to require classifi-
                            cation of specified rights issues (and specified options and warrants) as equity instruments
                            when they entitle their bearers to acquire a fixed number of equity instruments in the com-
                            pany at a fixed amount in any currency and the company offers such rights on a prorated
                            basis to all current owners of the same class of its non-derivative equity instruments.

                            IFrIC 14 “prepayments of a minimum Funding requirement (amended)”
                            The amended version of IFRIC 14 requires retrospective application in financial years begin-
                            ning on or after 1 January 2011. The amendment sets out guidelines for determining the
                            recoverable amount of a net pension asset. The amendment allows companies to treat pre-
                            payments of minimum funding requirements as assets. The amendment is not expected
                            to have any implications for the consolidated financial statements.
Heliad quarterly Financial report                                                                 38
q2 2011




IFrIC 19 “Extinguishing Financial liabilities with Equity Instruments”
IFRIC 19 requires application in financial years beginning on or after 1 July 2010. This inter-
pretation clarifies that equity instruments issued to a creditor to extinguish a financial
liability must be classified as consideration paid. The equity instruments thereby issued are
measured at fair value. Where this cannot be reliably determined, measurement should be
based on the fair value of the liability thereby extinguished. Gains and losses are recognised
directly through profit or loss. Application of IFRIC 19 is not expected to have any material
implications for the consolidated financial statements.

The other amendments to IFRS/IAS and interpretations are currently not relevant to Heliad.

IFrS that have been published but not yet applied
Standards already published upon publication of these consolidated financial statements
but not yet requiring mandatory application are listed below. This list includes those stand-
ards and interpretations published which the Group can reasonably expect to require
future application. The Group intends to apply these standards when they become effective.

IaS 1 “presentation of Financial Statements (amended)”
IAS 19 (amended 2011) requires application in financial years beginning on or after 1 July
2012. The IASB issued amendments to IAS 1 on 16 June 2011. These amendments intro-
duce new requirements concerning the presentation of other comprehensive income. The
amendments retain the option for individual appliers to provide either one or two presen-
tations of the relevant items. Only the presentation of other comprehensive income has been
amended such that subtotals have to be stated for those items capable of recycling (e.g.
cash flow hedges, foreign currency translations) and those items not capable of recycling
(e.g. items under IFRS 9 “Financial Instruments” requiring recognition through profit or
loss under other comprehensive income).

IaS 12 “deferred taxes (amended)”
This amendment to IAS 12 was published in December 2010 and requires first-time applica-
tion in financial years beginning on or after 1 January 2012. The amendment stipulates that
the deferred tax assets and liabilities recognised for specified assets must be measured on
the assumption that the carrying amount of these assets can be required in full via disposal.

IaS 19 (amended 2011) “Employee benefits”
IAS 19 (amended 2011) requires application in financial years beginning on or after 1 January
2013. Prior to the amendment, IAS 19 permitted choices on how to account for actuarial
gains and losses on pensions and similar items, including the so-called “corridor approach”
which results in the deferral of gains and losses. The draft amendment proposed eliminating
the use of the “corridor approach” and instead requiring that all remeasurement impacts
be recognised in other comprehensive income (with the remainder in profit or loss). Further-
more, it was proposed to extend these requirements to all long-term employee benefits
notES to thE IntErIm ConSolIdatEd                                                                              39
FInanCIal StatEmEntS




                            (such as certain long service leave schemes). The final amendments make the changes in
                            the presentation of other comprehensive income in respect of pensions (and similar items)
                            only, but all other long-term benefits are required to be measured in the same way even
                            though changes in the recognised amount are fully reflected in profit or loss.

                            Also changed in IAS 19 is the treatment for termination benefits, specifically the point in
                            time when a company would recognise a liability for termination benefits. The final amend-
                            ments adopt the equivalent US-GAAP (which requires individual employees to be notified),
                            although not verbatim. Specifically, the recognition timeframe may be extended in some
                            cases.

                            Finally, various other amendments to IAS 19 may have impacts in particular areas. For
                            instance, employee benefits not settled wholly before twelve months after the end of the
                            reporting period must be recognised as “other long-term benefits” rather than as
                            “short-term benefits”, and whilst presented as a current item in the balance sheet, would
                            be measured differently under the revised version of IAS 19.

                            IaS 27 (amended 2011) “Separate Financial Statements”
                            IAS 27 (amended 2011) requires application in financial years beginning on or after 1 Janu-
                            ary 2013. IAS 27 has the objective of setting standards to be applied in accounting for
                            investments in subsidiaries, associates and joint ventures, and associates in cases where
                            a company decides (or is required by local regulations) to present separate (non-consoli-
                            dated) financial statements.

                            IaS 28 (amended 2011) “Investments in associates and Joint ventures”
                            IAS 28 (amended 2011) requires application in financial years beginning on or after 1 Janu-
                            ary 2013. The objective of IAS 28 (amended 2011) is to prescribe the accounting for
                            investments in associates and to set out the requirements for application of the equity
                            method when accounting for investments in associates and joint ventures.

                            IFrS 9 “Financial Instruments: Classification and measurement”
                            In its published version, IFRS 9 reflects the first stage of the IASB project to replace IAS 39
                            and deals with the classification and measurement of financial assets as defined in IAS 39.
                            The standard requires application in financial years beginning on or after 1 January 2013.
                            The IASB will address the classification and measurement of financial liabilities, hedges and
                            retirements in future stages. This project is expected to be completed in 2011. Application
                            of the first stage of IFRS 9 will have implications for the classification and measurement of
                            financial assets at the Group. To provide a comprehensive overview of the potential implica-
                            tions, the Group will only quantify the respective implications in connection with the results
                            of the other stages of the project once these have been published.
Heliad quarterly Financial report                                                              40
q2 2011




IFrS 10 “Consolidated Financial Statements”
IFRS 10 was published in May 2011 and requires first-time application in financial years
beginning on or after 1 January 2013. IFRS 10 creates a uniform definition for the concept
of control, and thus a uniform basis for the existence of a parent/subsidiary relationship
and the resultant delineation of the scope of consolidation. The new standard will replace
the previously relevant standards (IAS 27) “Consolidated and Separate Financial State-
ments” and SIC-12 “Consolidation – Special Purpose Entities”).

IFrS 11 “Joint arrangements”
IFRS 11 was published in May 2011 and requires first-time application in financial years
beginning on or after 1 January 2013. IFRS 11 governs the accounting treatment of
arrangements in which a company exercises joint control over a joint venture or a joint
operation. The new standard will supersede IAS 31 “Interests in Joint Ventures” and
SIC-13 “Jointly Controlled Entities – Non-Monetary Contributions by Venturers” in terms
of providing the relevant requirements for the accounting treatment of joint ventures.
The most significant amendment in IFRS 11 compared with IAS 31 is the abolition of pro-
portionate consolidation for joint ventures. In the future, joint ventures will in all cases
have to be recognised using the equity method.

IFrS 12 “disclosures of Interests in other Entities”
IFRS 12 was published in May 2011 and requires first-time application in financial years
beginning on or after 1 January 2013. IFRS 12 sets out the disclosures required in the
notes in respect of links to other companies in the consolidated financial statements and
joint arrangements.

IFrS 13 “Fair value measurement”
IFRS 13 was published in May 2011 and requires first-time application in financial years
beginning on or after 1 January 2013. IFRS 13 sets out how fair values must be determined
and extends the note disclosures required for fair values.

amendment to IFrS 1 “Severe hyperinflation and removal of Fixed dates
for First-time adopters”
This amendment to IFRS 1 was published in December 2010 and requires first-time applica-
tion in financial years beginning on or after 1 July 2011. The amendment abolishes the
fixed application dates for retirement and requirements for gains or losses upon addition
set out in IFRS 1 and replaces these with the date of transition to IFRS. The amendment
further clarifies how IFRS accounting can be resumed following a period in which the com-
pany was unable to comply with IFRS due to a currency subject to severe hyperinflation.

amendment to IFrS 7 “disclosures on transfers of Financial assets”
The amendment to IFRS 7 was published in October 2010 and requires first-time application
in financial years beginning on or after 1 July 2011. The amendment stipulates extensive
new qualitative and quantitative disclosures about transferred financial assets that are not
retired and about the company’s ongoing engagement in connection with transferred
financial assets at the balance sheet date.
notES to thE IntErIm ConSolIdatEd                                                                                 41
FInanCIal StatEmEntS




                            As of the reporting date, IFRS 9, IFRS 10, IFRS 11, IFRS 12, IFRS 13 and the amendments to
                            IAS 1, IAS 12, IAS 19, IAS 27, IAS 28, IFRS 1 Severe Hyperinflation and Removal of Fixed
                            Dates for First-time Adopters, and IFRS 7 had not yet been approved by the EU Commission
                            within its endorsement process. Future application of these standards and interpretations
                            is not expected to have any materials implications for the Group’s net asset, financial and
                            earnings position. The Group intends to apply these IFRS upon their date of mandatory
                            application provided that corresponding approval has been provided within the endorse-
                            ment process.




                            3
                            Consolidation principles

                            The consolidated financial statements include those companies (subsidiaries) in which Heliad
                            indirectly or directly exerts a controlling influence or, due to its economic powers of disposal,
                            benefits from a majority of the economic advantages and bears a majority of the related risks
                            resulting from the activities of the companies in question.

                            IAS 27.4 defines control as the possibility of influencing the financial and business policy of
                            a company in such a way as to derive advantage. Such control can be assumed when the
                            parent company either directly or indirectly holds a majority of the voting rights. Subsidiaries
                            are fully consolidated from the date of acquisition, i.e. from such time that the Group gains
                            control. Consolidation ends when the parent company no longer has the possibility of exer-
                            cising control.

                            Company acquisitions are accounted for using the purchase method pursuant to IFRS 3,
                            i.e. assets, liabilities and contingent liabilities are recognised at fair value upon acquisition.
                            Differential amounts may result from any difference between the costs of a company
                            acquisition and the buyer’s share of the fair values of the assets, liabilities and contingent
                            liabilities thereby acquired. Debit differences are recognised under IFRS 3 as goodwill.
                            Credit differences are recognised directly through profit or loss. The costs of a company
                            acquisition are measured as the total of the consideration thereby assigned, measured
                            at fair value upon acquisition, and of non-controlling interests. Non-controlling interests are
                            measured at their respective share of the net assets identifiable at the company acquired.
                            Any transaction costs incurred are recognised as expenses. For business combinations
                            executed prior to 1 January 2010, transaction costs directly attributable to the acquisition
                            were treated as a component of acquisition costs. In the case of step business combina-
                            tions, the share of equity previously held by the buyer in the company thereby acquired is
                            revalued at fair value upon acquisition, with the resultant income or expenses being
                            charged to earnings.

                            In line with IFRS 3.55, resultant goodwill is not amortised, but is instead tested for impair-
                            ment once a year in line with IAS 36 in order to identify any potential impairment require-
                            ment. Potential impairment is determined by calculating the recoverable amount of the
                            cash generating unit to which the respective goodwill is allocated. Impairment losses are
Heliad quarterly Financial report                                                                   42
q2 2011




recognised when the recoverable amount of the cash generating unit falls short of its
respective carrying amount. The impairment test is performed more frequently should
events or circumstances indicate possible impairment.

The interim financial statements of the companies included in the interim consolidated
financial statements of Heliad have been based on uniform accounting policies.




4
Scope of consolidation

Alongside Heliad Equity Partners GmbH & Co. KGaA, the interim consolidated financial
statements as of 30 June 2011 also include Investment Due AG, Midlake Holding AG,
assona GmbH, TIG Vermögensbeteiligung 1 GmbH and the R. Häsler AG subgroup.

Heliad Equity Partners GmbH & Co. KGaA (“Heliad”) sold its shareholding in Unicorn, a
cash and valuables transport service provider, on the basis of a purchase agreement dated
30 June 2011. Heliad’s shares in Unicorn were sold to the company’s management in
the context of a management buyout. The Unicorn Group subgroup was therefore decon-
solidated as of 30 June 2011. This deconsolidation generated deconsolidation income
of EUR 15k, which has been recognised under earnings from discontinued operations. The
assets and liabilities of the Unicorn Group, as well as all of its income and expenses, had
already been allocated to discontinued operations in the consolidated financial statements
as of 31 December 2010.

On 24 March 2011, Reprotechnik Beteiligungsgesellschaft mbH, Leipzig, and other compa-
nies within the RT Group filed for insolvency. The RT Group subgroup was therefore decon-
solidated as of 24 March 2011. This resulted in deconsolidated income of EUR 18,305k,
which has been recognised under earnings from discontinued operations. The assets and
liabilities of the RT Group, as well as all of its income and expenses, had already been allo-
cated to discontinued operations in the consolidated financial statements as of 31 Decem-
ber 2010.

Via its subsidiary R. Häsler AG, Heliad acquired all of the shares in the equity of Gerber +
Güntlisberger AG, Riehen, Switzerland, as of 2 February 2011. The business object of
Gerber + Güntlisberger AG is the planning and execution of heating, ventilation and sanitary
installation, customer service and the development of alternative energy technologies. In
line with IFRS 3.62, the initial inclusion of Gerber + Güntlisberger in Heliad’s consolidated
financial statements could only be based on preliminary balance sheet figures, as the fair
values attributable to the identifiable assets, liabilities and contingent liabilities could only
be determined on a preliminary basis prior to the preparation of these interim financial
statements. The acquisition costs amounted to EUR 855k. Upon the date of initial consoli-
dation, these acquisition costs were offset by equity amounting to EUR 1,285k. The result-
ant credit difference of EUR 430k has been charged to earnings.
notES to thE IntErIm ConSolIdatEd                                                                                      43
FInanCIal StatEmEntS




                                  The preliminary fair values of the assets and liabilities at Gerber + Güntlisberger identifiable
                                  upon acquisition were as follows:


              Amounts in EURk                                                                        Fair value             Previous
                                                                                               upon acquisition     carrying amount



              Plant and office equipment                                                                    67                   22

              Work in progress                                                                             307                    3

              Inventories                                                                                   39                    2

              Trade receivables                                                                            181                  181

              Other assets                                                                                 341                   91

              Cash and cash equivalents                                                                    881                  881

                                                                                                         1,817                1,181


              Provisions for guarantees                                                                      9                   54

              Deferred taxes                                                                               175                    0

              Trade payables                                                                               113                  113

              Other provisions                                                                             186                  186

              Other liabilities                                                                             49                   49

                                                                                                           532                  403


              nEt aSSEtS at FaIr valuE                                                                   1,285

              Credit difference                                                                            430

              total ConSIdEratIon                                                                          855


              nEt CaShFlow oF FundS duE to Company aCquISItIon

              Funds acquired with subsidiary                                                               881

              Outflow of funds for acquisition in period under report                                      855

              nEt InFlow oF FundS In pErIod undEr rEport                                                    26




                                  Since its addition to the scope of consolidation, Gerber + Güntlisberger has contributed
                                  sales of EUR 235k and net income of EUR –17k to the Group.

                                  Had the acquisition taken place at the beginning of the 2011 reporting period, then as of
                                  30 June 2011 the sales of the Heliad Group would have amounted to EUR 16,784k and its
                                  consolidated net income would have amounted to EUR 13,724k.
Heliad quarterly Financial report                                                                                  44
q2 2011




5
Investments involving shareholdings of more
than 20 %
Under IAS 28.1, venture capital companies have the option to recognise shareholdings in
companies in which they hold more than 20% of voting rights either at equity or in line with
IAS 39. This option may only be exercised if first-time recognition is at fair value through
profit or loss. The requirements for exercising this option were met for the following invest-
ments, as a result of which Heliad opted for recognition in line with IAS 39.




                                          Share capital   Heliad’s share    Additions   Disposals heliad’s share
                                              nominal               as of                                  as of
                                                            31.12. 2010                             30.06.2011
                                                 EURk               in %        in %         in %           in %



Aheim Unternehmer-Fonds la GmbH & Co.
Parallel KG, Starnberg                          20,002           49.995           0.0     49.995             0.0

DEAG Deutsche Entertainment
Aktiengesellschaft, Berlin                      12,389             28.31        0.64         0.0          28.95

CFC Industriebeteiligungen AG, Dortmund          8,448             22.12          0.0        0.0          22.12




The shares held in Aheim Unternehmer-Fonds Ia GmbH & Co. KG were sold at a purchase
price of EUR 1,919k in the 2nd quarter of 2011.

The following investments are measured using the equity method and were reclassified as
assets held for sale at the end of the 2010 financial year:




                                          Share capital   Heliad’s share    Additions   Disposals heliad’s share
                                              nominal               as of                                  as of
                                                            31.12. 2010                             30.06.2011
                                                 EURk               in %        in %         in %           in %



new i-d media AG, Cologne                           50              49.0          0.0        0.0            49.0

BCG Baden-Baden Cosmetics Group AG,
Baden-Baden                                      3,000              40.0          0.0       40.0             0.0




The shares held in BCG Baden-Baden Cosmetics Group AG were sold at a purchase price of
EUR 1,200k in the 2nd quarter of 2011.

The shares held in new i-d media AG continue to reported at an amount of EUR 283k under
assets classified as held for sale.
notES to thE IntErIm ConSolIdatEd                                                                                45
FInanCIal StatEmEntS




                            6
                            accounting principles

                            These abridged interim consolidated financial statements have been based on the same
                            accounting policies as those applied in the consolidated financial statements as of
                            31 December 2010.



                            goodwIll

                            If, on capital consolidation, the cost of acquisition exceeds the parent company’s pro rata
                            share of the subsidiary’s revalued equity, this excess is reported as goodwill in line with
                            IFRS 3.41.

                            Under IFRS 3.55, goodwill is not amortised, and is instead tested for impairment once a
                            year in line with IAS 36. Impairment testing is carried out more frequently if events or
                            circumstances indicate a possible impairment.



                            othEr IntangIblE aSSEtS

                            Acquired intangible assets are capitalised in line with IAS 38 when it is likely that the use
                            of such assets will entail a future economic benefit and the costs of the assets can be
                            reliably determined. Acquired intangible assets are measured at cost and written down on
                            a straight-line basis. Internally produced intangible assets are recognised at the value of
                            directly allocable labour costs and external development services and have been written
                            down on a straight-line basis.

                            Intangible assets with indefinite useful lives are tested for impairment annually as of
                            31 December and when there are indications that their value might be impaired.



                            propErty, plant and EquIpmEnt

                            Property, plant and equipment are carried at cost less depreciation and, where necessary,
                            any impairment in line with IAS 36. Gains or losses on the disposal of non-current assets are
                            reported in other operating income and expenses. Depreciation is generally recognised
                            on a straight-line basis over the customary useful life of the asset at the respective company.
Heliad quarterly Financial report                                                                 46
q2 2011




ImpaIrmEntS oF non-FInanCIal aSSEtS

Assets with indefinite useful lives are not depreciated or amortised, but are rather tested
for impairment once a year or more frequently if there are indications of impairment.
Assets that are subject to depreciation and amortisation are tested for impairment when
events or changes in circumstances arise that indicate that their carrying amount may
no longer be recoverable. Impairment is recognised at the amount by which the carrying
amount exceeds the recoverable amount. The recoverable amount is the higher of an
asset’s fair value less costs to sell and its value in use. For impairment testing, assets are
pooled at the lowest level at which cash flows can be separately identified (cash gener-
ating unit).

If impairment is subsequently reversed, the carrying amount of the asset (or cash generat-
ing unit) is written up to its new estimated recoverable amount. The carrying amount can-
not be written up beyond the amortised or depreciated value the asset (or cash generating
unit) would have if impairment losses had not been recognised in previous years. Reversals
of impairment losses are recognised directly in income. Impairment of goodwill cannot be
reversed.



FInanCIal aSSEtS

Investments in associates are basically accounted for using the equity method pursuant
to IAS 28. An associate is a company over which the Group exercises significant, but not
controlling, influence. According to IAS 28.6, there is a refutable assumption that signifi-
cant influence exists if 20 % or more of the voting rights are held in an investment. In the
equity method, interests in associates are carried in the balance sheet at cost plus any
changes in the prorated net assets of the associate arising following acquisition. Changes
in value are recognised directly in income. Under IAS 28.1, venture capital companies such
as Heliad have the option of recognising interests in companies in which they hold more
than 20 % of the voting rights either using the equity method or at fair value through profit
or loss pursuant to IAS 39. This option must be exercised upon initial recognition. For the
investments in question, Heliad has opted for recognition at fair value pursuant to IAS 39. The
investments affected by the exercising of this option have been reported under “Invest-
ments” and “Investment securities”.
notES to thE IntErIm ConSolIdatEd                                                                               47
FInanCIal StatEmEntS




                            The investments and securities reported under financial assets are classified as measured
                            at fair value through profit or loss (IAS 39). Changes in their fair values are recognised
                            through profit or loss in the income statement. If the fair value of unlisted investments can-
                            not be measured reliably, they are alternatively recognised at cost, unless their fair value
                            is lower (IAS 39.46c). The cost of acquisition is based on the price at the settlement date.

                            Loans are measured at amortised cost.



                            InvEntorIES

                            Inventories are carried at the lower of cost and net realisable value.



                            dEFErrEd taxES

                            Deferred tax liabilities are calculated on the basis of the standard international liability
                            method (IAS 12). This involves deferred taxes being recognised on all temporary differences
                            between the IFRS carrying amounts and the tax carrying amounts of the individual com-
                            panies and on the corresponding consolidation adjustments. A tax rate of 30.6 % is assumed
                            for calculating deferred taxes. In addition to the corporate income tax of 15 % and the soli-
                            darity surcharge of 5.5 %, this also includes the average trade tax rate of 14.775 %. A tax rate
                            of 19% has been assumed for the Swiss subsidiaries. Deferred tax assets have been netted
                            with deferred tax liabilities in accordance with the requirements of IAS 12.



                            worK In progrESS

                            Work in progress is carried at the lower of cost and net realisable value.



                            rECEIvablES, othEr aSSEtS and banK balanCES

                            Receivables, other assets and bank balances are recognised at their nominal amounts or
                            at amortised cost. The values stated for receivables and other assets also account for any
                            necessary impairments.
Heliad quarterly Financial report                                                                   48
q2 2011




SECurItIES

Securities exclusively allocated to the held-for-trading category of financial instruments have
been measured at fair value. Changes in their values have been recognised through profit
or loss.



aSSEtS ClaSSIFIEd aS hEld For SalE and aSSEtS
at dISContInuEd opEratIonS

Assets classified as held for sale are assets previously recognised as financial assets whose
sale in the near future is intended and likely. They are measured in accordance with the
requirements of IAS 39. The financial instruments reported in this item are recognised at
fair value through profit or loss.

The assets and liabilities classified as held for sale at discontinued operations relate to sub-
sidiaries due to be sold in the near future or whose business operations are to be discontinued.

These assets and disposal groups have been measured at the lower of their carrying amount
or their fair value less costs to sell and are not depreciated or amortised following classifica-
tion as held for sale.

In the income statement, the income and expenses from discontinued operations are reported
separately from the income and expenses from continuing operations and subsequently
reported separately as earnings after taxes at discontinued operations.



trEaSury StoCK

Any treasury stock acquired by Heliad is recognised at cost and deducted from equity. Heliad
is not entitled to exercise the voting rights accruing to its treasury stock holdings.



pEnSIon provISIonS

The liability for pension obligations includes the present value of the defined benefit obliga-
tion less retrospective service cost not yet recognised and the fair value of the plan assets
available to meet the obligations.
notES to thE IntErIm ConSolIdatEd                                                                               49
FInanCIal StatEmEntS




                            The amount of pension provisions is calculated using the actuarial projected unit credit
                            method. Future obligations are measured on the basis of pro rata benefit entitlements
                            acquired as of the balance sheet date. Assumptions as to the future development in certain
                            parameters affecting the amount of future benefits are taken into account. Pension pro-
                            visions only show the component of pension obligations recognised in profit or loss in the
                            past. The portion of pension obligations not yet recognised in pension provisions is based
                            on actuarial gains and losses. If actuarial gains and losses exceed a corridor of 10 % of the
                            present value of the obligation, they are recognised in profit or loss on a straight-line basis
                            over the average remaining period of service.



                            tax provISIonS

                            Provisions for current taxes are recognised in line with the expected back payment of taxes
                            for the year under report and previous years.



                            provISIonS

                            Other provisions are recognised where a past event means that the company has a present
                            legal or constructive obligation towards a third party which will probably lead to an out-
                            flow of resources in the future and where such asset reductions can be reliably estimated.
                            Provisions are not recognised for expenses (IAS 37).

                            The provision for share-based payment relates to claims on the part of former managing
                            directors of a subsidiary to participation in the proceeds on disposal of a subsidiary. These
                            former employees have no entitlement to subscribe to shares in Heliad as the topmost
                            group company.



                            lIabIlItIES

                            Liabilities are recognised at amortised cost.
Heliad quarterly Financial report                                                                  50
q2 2011




InComE and ExpEnSES

Sales and income are recognised when an agreement arises, a price is agreed and can be
measured and it is assumed that it will be paid. The risks and rewards must have been
transferred to the buyer and the seller’s control must have expired. Sales are reported net
of sale allowances, such as bonuses, discounts granted or rebates. Income from current
services is recognised on performance, compensation over time is recognised pro rata
temporis.

Proceeds from the sale of securities and financial assets relate to the proceeds from the
sale of financial assets. The retirement of the carrying amount of securities and financial
assets relates to the carrying amount pertaining upon the retirement of financial assets.



taxES

Taxes on income include current, non-period and deferred taxes.



lEaSIng

Finance leases, in which all major rewards and risks associated with ownership of the leased
item are transferred to the Group, lead to capitalisation of the leased item at the beginning
of the leasing arrangement. The leased item is carried at the lower of fair value or the present
value of minimum leasing payments. Leasing payments are split into financing expenses and
principal repayments for the remaining obligation such that the interest rate on the remain-
ing liability remains constant over the leasing term. Leased items are depreciated over their
useful lives. Leasing payments for operating leases are expensed on a straight-line basis
over the term of the leasing arrangement.

ContIngEnt lIabIlItIES and FInanCIal oblIgatIonS

Contingent liabilities are potential obligations to third parties or obligations that already
exist but where the outflow of resources is not likely or cannot be reliably measured. Con-
tingent liabilities are not recognised in the balance sheet. The volume of obligations for
contingent liabilities disclosed in the notes corresponds to the scope of the respective obli-
gation on the balance sheet date and to the residual payment obligations for contingent
contributions not yet called in for shares in partnerships.
notES to thE IntErIm ConSolIdatEd                                                                                  51
FInanCIal StatEmEntS




                                 CurrEnCy tranSlatIon

                                 The consolidated financial statements have been compiled in euros. Foreign currency
                                 receivables and liabilities in the separate financial statements are measured using the clos-
                                 ing rates as of the balance sheet date and translation differences are recognised in profit
                                 or loss. For financial statements for which the euro is not the functional currency, balance
                                 sheet items have been translated using the closing rates as of the balance sheet date and
                                 income statement items have been translated using average annual rates. Changes in the
                                 value of the previous year’s net assets on account of changes in exchange rates are recog-
                                 nised directly in equity.



                                 KEy dISCrEtIonary dECISIonS, EStImatES and aSSumptIonS

                                 The carrying amounts stated in the consolidated financial statements are partly based on
                                 discretionary decisions, assumptions and estimates, as are income and expenses. Due to
                                 the uncertainty involved in discretionary decisions, assumptions and estimates, it may be
                                 necessary to adjust the carrying amounts of these assets and liabilities in future periods.

                                 The assumptions and estimates included in the consolidated financial statements mainly
                                 relate to the calculation of recoverable amounts in the context of impairment tests on current
                                 and non-current financial assets and goodwill, as well as to the recognition and measure-
                                 ment of deferred taxes and provisions. Owing to market uncertainty, individual discounts of
                                 between 15 % and 100 % have been recognised in the measurement of unlisted shares in
                                 partner funds compared with the fair values reported by the fund companies.

                                 In the coming financial year, significant adjustments of the reported assets and provisions
                                 could be required by way of remeasurement of the following items:


              Amounts in EURk


              Goodwill                                                                                                   8,745

              Financial assets                                                                                          32,932

              Provisions                                                                                                 5,192
Heliad quarterly Financial report                                                                                         52
q2 2011




7
notes to the balance Sheet

7.1 StatEmEnt oF FIxEd aSSEtS

The composition and development in individual non-current items has been presented in the
non-current asset schedule.




Statement of Fixed assets




Amounts in EUR k                                    historical cost


                                                       01.01.2011          Effect of    Addition due    Additions   Disposals   30. 06. 2011
                                                                      exchange rate    to acquisition
                                                                           changes     of a subsidary



I. IntangIblE aSSEtS

Goodwill                                                    8,611                                                                     8,611

Other intangible assets                                     7,409                                             63      – 4,763         2,709

                                                          16,020                  0                0          63     – 4,763        11,320


II. propErty, plant and EquIpmEnt                          1,709               – 65               67         298           0         2,009


III. FInanCIal aSSEtS

Investments                                                40,864                                          2,712         – 76        43,500

Loans to companies linked by virtue of investment             196                                                                       196

Loans                                                         723                29                           35                        787

Investment securities                                       7,135                                            233                      7,368

                                                          48,918                 29                0       2,980         –76        51,851


                                                          66,647               – 36               67       3,341     – 4,839        65,180
    notES to thE IntErIm ConSolIdatEd                                                                          53
    FInanCIal StatEmEntS




valuation adjustments                                                            Carrying amounts
„–“ = carrying amount reduced, „+“ = carrying amount increased

  01.01.2011         Effect of   Write-      Write-   Disposals   30. 06. 2011    30. 06. 2011   31.12. 2010
                exchange rate    downs         ups
                     changes




         117               17                                             134           8,745         8,728

      – 6,219              14       – 52                 4,753         –1,504           1,205         1,190

      – 6,102              31       – 52         0       4,753        –1,370           9,950          9,918


       – 619             – 26     – 226          0           0          – 871          1,138          1,090




     – 23,917                    – 3,503     1,201          76       – 26,143          17,357        16,947

           0                        – 98                                  – 98             98           196

           0                                                                0             787           723

       6,237                                 1,085                      7,322          14,690        13,372

     –17,680                0    – 3,601     2,286          76       –18,919          32,932        31,238


    – 24,401                5    – 3,879     2,286       4,829       – 21,160         44,020        42,246
Heliad quarterly Financial report                                                                           54
q2 2011




7.2 goodwIll

The goodwill recognised as of 30 June 2011 was structured as follows:


Amounts in EUR k


assona GmbH                                                                                        5,600

R. Häsler AG                                                                                       3,111

TIG Vermögensbeteiligung 1 GmbH                                                                       34

                                                                                                  8,745




assona GmbH, R. Häsler AG and TIG Vermögensbeteiligung 1 GmbH have been specified as
the cash generating units to which the goodwill has been allocated pursuant to IAS 36.



7.3 othEr IntangIblE aSSEtS and propErty, plant and EquIpmEnt

Intangible assets mainly relate to an internally generated database, industrial property
rights and similar rights and acquired software licences, as well as to acquired order
volumes.

The useful lives of the main intangible asset items are as follows:




Internally generated software                                                                   10 years

Acquired software                                                                                3 years

Acquired order volumes                                                                            1 year

Other                                                                                         3 –13 years




Property, plant and equipment mainly relate to plant and office equipment. The useful lives
for plant and office equipment range from 3 to 13 years. Acquisition costs are written down
on a straight-line basis.
notES to thE IntErIm ConSolIdatEd                                                                              55
FInanCIal StatEmEntS




                            7.4 FInanCIal aSSEtS

                            The investments and securities reported under financial assets have been allocated to the
                            “fair value through profit or loss” category.

                            The investments and securities for which a stock market price was available, and which
                            were regularly traded on the stock market during the reporting period, have been measured
                            at their market prices as of the balance sheet date. The carrying amount of these financial
                            assets amounted to EUR 15,669k at the balance sheet date. Furthermore, securities also in-
                            clude shares in investment funds measured at their prices as of the balance sheet date
                            (EUR 4,289k). The measurement of listed financial assets and shares in investment funds as
                            of the balance sheet date resulted in write-ups of EUR 1,610k and write-downs of EUR 2,407k.

                            Unlisted investments have been measured using the budgeting assumptions of the compa-
                            nies in question and using multiplier procedures based on empirically determined multi-
                            pliers normal for the respective sector. Shares in private equity funds are measured on the
                            basis of the net asset values calculated by the fund managers, with individual discounts
                            equivalent to those customary on the secondary market being accounted for. These discounts
                            amount to between 15 % and 100 %.

                            The carrying amount of unlisted investments, including shares in private equity funds,
                            amounted to EUR 12,089k.

                            Based on these valuations, the carrying amounts were written up to fair value by a total of
                            EUR 1,381k. In addition, write-downs of EUR 1,977k were also recognised.

                            The loans reported involve loans and interest receivables due from Heliad’s portfolio com-
                            panies. Heliad’s interest receivables are generally due upon final maturity of the respective
                            loans.



                            7.5 worK In progrESS and InvEntorIES

                            The work in progress and inventories relate to fully consolidated subsidiaries in the
                            “Services” segment. The work in progress involves projects not yet invoiced for which
                            the subsidiaries in question have already rendered performance.



                            7.6 tradE rECEIvablES

                            Trade receivables mainly relate to fully consolidated subsidiaries in the “Services” segment.
Heliad quarterly Financial report                                                                56
q2 2011




7.7 othEr aSSEtS

Other assets have been recognised at face value and generally have remaining terms of up
to one year. This item includes remaining purchase price receivables of EUR 3,630k.

The remaining term for the receivable has not been set at one year and may therefore
exceed one year.



7.8 CaSh and CaSh EquIvalEntS

Bank balances chiefly consist of overdraft facilities, call money accounts and fixed-term
deposits.

Bank balances of EUR 1,514k have been pledged as security for third-party liabilities. The
secured party can access these funds if the debtor defaults. In turn, Heliad has rights of
recourse against the grantor of the security in the event of such utilisation.



7.9 aSSEtS ClaSSIFIEd aS hEld For SalE

Assets classified as held for sale involve investments recognised prior to reclassification as
investments measured at equity.

The assets classified as held for sale are allocated to the “Investment and Other Activities”
segment.



7.10 aSSEtS and lIabIlItIES ClaSSIFIEd aS hEld For SalE
at dISContInuEd opEratIonS

The RT Group and Unicorn Group subgroups were classified as discontinued operations as
of 31 December 2010. Companies within the RT Group filed for insolvency in the 1st quarter
of the current financial year. The RT subgroup has therefore been deconsolidated. Heliad’s
shares in Unicorn were sold to the management in the context of a management buyout
based on a purchase agreement dated 30 June 2011. The Unicorn Group subgroup was
therefore deconsolidated as of 30 June 2011. No assets and liabilities classified as held for
sale at discontinued operations were reported as of 30 June 2011.
notES to thE IntErIm ConSolIdatEd                                                                             57
FInanCIal StatEmEntS




                            7.11 SharE CapItal

                            The share capital amounts to EUR 12,145,802.00 and is fully paid in.

                            The general partner is authorised until 31 March 2012, subject to approval by the Super-
                            visory Board, to increase the company’s share capital by up to EUR 30,285,338.00 in total
                            by issuing up to 30,285,338 new individual registered shares with a nominal value of
                            EUR 1.00 per share in return for cash or non-cash contributions on one occasion or in par-
                            tial amounts on several occasions (Authorised Capital 2007). The general partner is author-
                            ised to exclude limited shareholders’ basic subscription rights in specified cases.

                            The share capital is conditionally increased by up to EUR 3,000,000 by issuing up to
                            3,000,000 new individual registered shares with profit entitlement from the beginning of
                            the financial year in which they are issued (Conditional Capital 2009). This conditional
                            capital increase is only executed to the extent that bearers/creditors of convertible bonds,
                            warrant bonds, profit participation rights and/or profit participation bonds, or combinations
                            of such instruments with conversion or option rights, or conversion obligations, issued by
                            Heliad up to 24 May 2014 in return for cash on the basis of the authorisation provided by
                            the Annual General Meeting on 25 May 2009 actually exercise their conversion or option
                            rights, or to the extent that the conversion obligations relating to such bonds are met. No
                            bonds or profit participation rights had been issued as of the balance sheet date.

                            By resolution of the Annual General Meeting on 26 August 2010, the company was author-
                            ised until 25 August 2015 to acquire treasury stock up to a total of 10 % of its existing
                            share capital upon the resolution being adopted. This authorisation may be exercised in full
                            or in part.

                            Pursuant to IAS 32.33, treasury stock must be measured at cost and deducted from equity.

                            As of the balance sheet date, Heliad had acquired 967,599 treasury stock shares 31.12. 2010:
                            874,500 treasury stock shares) at a cost of EUR 3,728k (31.12. 2010: EUR 3,463k).



                            7.12 non-ControllIng IntErEStS

                            Non-controlling interests relate to the shares held by minority shareholders in the equity of
                            the following companies included in the consolidated financial statements: assona GmbH
                            and Häsler Group.
Heliad quarterly Financial report                                                             58
q2 2011




7.13 provISIonS

Pension provisions involve claims to retirement pensions on the part of employees at
R. Häsler AG (Switzerland), a company included in the consolidated financial statements.

Non-current provisions relate to guarantee provisions, sales commissions and dismantling
obligations.

The provisions for share-based payment relate to obligations in connection with a stock
option plan. In the 2008 financial year, Heliad introduced a stock option plan based on
the shares of a specific subsidiary on behalf of the managers at this subsidiary. The stock
options entitle their bearers in the event of any exit from the relevant group company to
acquire shares in this group company or to participate in any disposal proceeds. The stock
options were classified as cash-settled share-based payments. The resultant liability is
revalued at each balance sheet date and on the performance date. Changes in its fair value
are recognised through profit or loss. Due to materiality considerations, the expenses
incurred in connection with the stock option plan have not been included in the interim
financial statements.



7.14 lIabIlItIES to banKS

The liabilities to banks reported under non-current liabilities mainly relate to a loan of
EUR 3,587k of a portfolio company.



7.15 othEr lIabIlItIES and tradE payablES

Liabilities are carried at amortised cost and have terms of up to one year.

Other liabilities mainly relate in an amount of EUR 6,306k to received insurance premiums
to be passed on to insurance companies by a subsidiary in the “Services” segment and
to liabilities of EUR 8,946k from profit participations.

Trade payables chiefly involve liabilities at subsidiaries in the “Services” segment.
notES to thE IntErIm ConSolIdatEd                                                                              59
FInanCIal StatEmEntS




                            8
                            notes to the Income Statement

                            8.1 proCEEdS From thE SalE oF FInanCIal aSSEtS

                            These proceeds relate to the sale of a portfolio company and fund investments.



                            8.2 othEr SalES rEvEnuES

                            Other sales revenues chiefly relate to sales at subsidiaries allocated to the “Services”
                            segment.



                            8.3 ChangES In InvEntorIES

                            Changes in inventories relate exclusively to changes in the volume of services not yet
                            invoiced at subsidiaries in the “Services” segment.



                            8.4 othEr opEratIng InComE

                            Other operating income mainly relates to income at subsidiaries in the “Services”
                            segment.



                            8.5 InComE From rEvaluatIon

                            Income from revaluation involves write-ups resulting from increases in the fair values of
                            financial assets recognised under non-current assets.



                            8.6 rEtIrEmEnt oF FInanCIal aSSEtS and SECurItIES

                            The retirement of financial assets and securities chiefly relates to the disposal of a
                            portfolio company and fund investments.



                            8.7 CoSt oF purChaSEd SErvICES

                            The cost of purchased services relates exclusively to the subsidiaries allocated to the
                            “Services” segment.
Heliad quarterly Financial report                                                              60
q2 2011




8.8 pErSonnEl ExpEnSES

Personnel expenses include the compensation paid to the managing directors and employ-
ees of the fully consolidated subsidiaries allocated to the “Services” segment.

The parent company Heliad Equity Partners GmbH & Co. KGaA does not have any proprietary
employees.



8.9 amortISatIon and dEprECIatIon oF IntangIblE aSSEtS
and propErty, plant and EquIpmEnt

This item includes scheduled amortisation and depreciation.



8.10 othEr opEratIng ExpEnSES

An amount of EUR 752k was recognised in the 1st half for the compensation due to Heliad’s
general partner pursuant to the Articles of Association.

An amount of EUR 1,755k relates to current other operating expenses at Heliad.

The remaining amount of EUR 6,511k relates to other operating expenses at fully consoli-
dated subsidiaries.



8.11 wrItE-downS oF FInanCIal aSSEtS and SECurItIES

The write-downs of financial assets and securities are attributable to the measurement of
financial instruments at fair value and relate to investments in private equity funds and in
listed investments and securities.



8.12 othEr FInanCIal InComE

This item mainly involves interest on loans granted to companies linked by virtue of invest-
ment and interest on bank balances.

The interest received during the reporting period and included in the cash flow from operat-
ing activities amounted to EUR 236k.
notES to thE IntErIm ConSolIdatEd                                                                                   61
FInanCIal StatEmEntS




                               8.13 IntErESt and SImIlar ExpEnSES

                               This item particularly involves interest on loans. This interest relates exclusively to interest
                               on liabilities carried at amortised cost. The interest paid during the reporting period and
                               included in the cash flow from operating activities amounted to EUR 16k.



                               8.14 rESult From dISContInuEd opEratIonS

                               The result from discontinued operations was structured as follows:


              Amounts in EURk                                                                                           01. 01. –
                                                                                                                    30. 06. 2011



              Income                                                                                                      51,285

              Expenses                                                                                                   – 36,575

              groSS proFIt                                                                                               14,709
              Financial expenses                                                                                            – 572
              Impairment losses due to revaluation at fair value less costs to sell                                            0

              proFIt bEForE taxES From dISContInuEd opEratIonS                                                           14,137
              taxES

              on current earnings before taxes                                                                                –1

              proFIt aFtEr taxES From dISContInuEd opEratIonS                                                            14,136

              Earnings per share from discontinued operations (diluted and basic) (EUR)                                     1.26




                               The net cash flow from discontinued operations was structured as follows:


              Amounts in EURk                                                                                           01. 01. –
                                                                                                                    30. 06. 2011



              Cash flow from operating activities                                                                           – 819

              Cash flow from investing activities                                                                              0

              Cash flow from financing activities                                                                              0

              total CaSh Flow From dISContInuEd opEratIonS                                                                 – 819
Heliad quarterly Financial report                                                                                62
q2 2011




8.15 EarnIngS pEr SharE

Earnings per share are structured as follows:


                                                                                      01. 01. –      01. 01. –
                                                                                  30. 06. 2011    30.06.2010



Net surplus /deficit for the period attributable to limited shareholders (EURk)        14,201          2,060

Weighted average number of limited shares                                         11,240,269      10,557,634

Basic and diluted earnings per share (EUR)                                                1.26            0.2




Earnings per share – based on the share of earnings from continuing operations attributable
to limited shareholders – are structured as follows:


                                                                                      01. 01. –      01. 01. –
                                                                                  30. 06. 2011    30.06.2010



Earnings from continuing operations (EURk)                                               – 419         2,226

less non-controlling interests for continuing operations (EURk)                            484          –166

equals earnings from continuing operations attributable to
limited shareholders (EURk)                                                                 65         2,060

per share (EUR)                                                                           0.01            0.2




No dividend payment is planned.

The stock option plan is based on the shares in a specific subsidiary.
notEs to thE intErim ConsolidatEd                                                                                   63
FinanCial statEmEnts




                               9 
                               Contingent liabilities and other financial obligations 

                               As of the balance sheet date, residual payment obligations for contingent contributions not 
                               yet called in for shares in partnerships amounted to EUR 13,659k.

                               Subsidiaries of Heliad included in the scope of consolidation have concluded operating lease 
                               agreements for mobile assets (vehicles, machines and technical equipment) and immobile 
                               assets (building letting agreements). The leased assets are attributable to the lessor. The 
                               following leasing obligations apply:




              Amounts in EURk                                                                     Movable                Buildings
                                                                                                   assets



              due within one year                                                                      72                     433

              due in between one and five years                                                        35                     945

              due over five years                                                                       –                       –

              sum oF minimum lEasE paymEnts                                                           107                   1,378




                               10 
                               segment report

                               For the purposes of managing the company, the Group is organised in business units struc-
                               tured in terms of products and services and has two segments: “Services” and “Investment 
                               and Other Activities”.

                               “Services”: this segment consists of the “Midlake /assona” subgroup and R. Häsler AG. The 
                               business operations of the “Midlake Holding AG” subgroup, which includes the operating 
                               subsidiary assona GmbH, involve the placing and contract management of cover notes pro-
                               tecting against theft, breakage and other damages to mobile phones and other mobile and 
                               stationary electronics appliances. The business operations of R. Häsler AG involve the perfor-
                               mance of trade services in the field of heating technology. 

                               “Investment and Other Activities”: the business operations of this segment relate to Heliad’s 
                               activities in its investment business. In particular, these involve managing direct investments 
                               in which Heliad holds less than 50% of the voting rights or shares. 
Heliad quarterly Financial report                                                             64
q2 2011




Segment performance is measured on the basis of segment operating earnings. The oper-
ating earnings of the business units are monitored separately by the management when
reaching its decisions concerning the allocation of resources and determining the earnings
strength of the individual units. Group financing (including financial expenses and income)
and taxes on income are managed centrally and are not allocated to individual operating
segments.

The sales generated in the “Services” segment with external customers that account in
each case for more than 10 % of total sales amount to EUR 5,032k in total (H1 2010:
EUR 6,354k).

The Heliad Group operates exclusively in German-speaking countries and generates the
predominant share of its sales in Germany and Switzerland.

Where applicable, transfer prices between operating segments are determined on customary
market terms as would be agreed between third parties.




11
d & o disclosures

The general partner, Altira Heliad Management GmbH, Frankfurt / Main, is solely authorised
and obliged to manage the company.

The sole Managing Director of the general partner is Andreas Lange (since 26 April 2011),
Frankfurt / Main. Until 26 April 2011, Bernd Sexauer, Kelkheim, acted as the sole
Managing Director.

The following individuals are appointed as members of the Supervisory Board:

David Zimmer, member of the Management Board of Altira AG, was appointed by court
order to be a member of Heliad’s Supervisory Board as of 31 May 2011. Following
Andreas Lange’s move to the management, the Supervisory Board now consists of three
members once again, namely David Zimmer, Prof. Hans-Olaf Henkel and Volker Rofalski.

– Volker Rofalski, Munich,
  Managing Director of only natural munich GmbH
– Prof. Dr. h.c. Hans-Olaf Henkel, Berlin,
  Honorary Professor at Mannheim University
– David Zimmer, Frankfurt / Main,
  Businessman, since 31 May 2011
– Herr Andreas Lange, Frankfurt / Main,
  Businessman, until 26 April 2011

The members of the Supervisory Board are entitled to compensation of EUR 70k
in the 2011 financial year.
notES to thE IntErIm ConSolIdatEd                                                                            65
FInanCIal StatEmEntS




                            12
                            related party disclosures

                            IAS 24 requires disclosures to be made concerning the company’s relationships with related
                            parties. When transactions have been performed between Heliad and any such related
                            party, Heliad is obliged to disclose the nature of the relationship and provide information
                            about the respective transactions and any outstanding balances.

                            Altira AG, Frankfurt / Main, is the sole shareholder in the general partner Altira Heliad
                            Management GmbH. As there is no relationship of control between Altira Heliad Manage-
                            ment GmbH and Heliad, there is also no relationship of control between Altira AG and
                            Heliad. Indirectly, however, Altira AG exercises significant influence over Altira Heliad
                            Management GmbH and thus counts as a related party. The majority shareholder in
                            Altira AG is Angermayer, Brumm & Lange Unternehmensgruppe GmbH (ABL), Frankfurt /
                            Main. All companies in a position to exercise significant influence on ABL or its
                            shareholders are thus to be viewed as related parties.

                            Pursuant to § 8a of the Articles of Association, as compensation for its activities and for
                            assuming liability the general partner receives an advance annual payment amounting
                            to 2.5% of the shareholders’ equity of the Group as reported in the balance sheet prepared
                            in accordance with IFRS accounting standards as of the balance sheet date for the pre-
                            vious financial year, plus any VAT thereby incurred. Further, the general partner receives
                            profit-related compensation amounting to 20 % of the company’s annual net surplus
                            before taxes as stated in the adopted financial statements. Pursuant to § 8b of the Articles
                            of Association, the general partner or any of its affiliated companies may also charge
                            Heliad for advisory services provided to Heliad or one of its portfolio companies in lieu of
                            an external company at an amount that bears comparison with services charged between
                            third parties.

                            Capital market service contracts (designated sponsoring, capital market communications
                            and advisory services) are in place with Silvia Quandt & Cie. AG, Frankfurt / Main.
                            Via their investments, the partners of Angermayer, Brumm & Lange Unternehmensgruppe
                            GmbH exercise significant influence on Silvia Quandt & Cie. AG. It should in all cases
                            be noted that Silvia Quandt & Cie. AG represents biw Bank für Investments und Wert-
                            papiere AG (biw), Willich. Angermayer, Brumm & Lange Unternehmensgruppe GmbH
                            indirectly exercises significant influence on biw.
Heliad quarterly Financial report                                                                                 66
q2 2011




The compensation paid to related parties for services received in the 1st half of the year
under report is presented below:


Amounts in EURk                                                                        01. 01. –      01. 01. –
                                                                                   30. 06. 2011    30.06.2010



CompanIES In KEy poSItIonS

Altira Heliad Management GmbH (general partner)                                             752           969

Altira AG (sole shareholder in general partner)                                              63           172
                                                                                           815          1,141


othEr CloSEly rElatEd CompanIES

Silvia Quandt & Cie. AG                                                                      39             18




A prorated amount of EUR 752k was recognised under other operating expenses in the 1st
half of the year under report in connection with the payments due in line with the Articles
of Association (H1 2010: EUR 969k).

Contribution obligations of EUR 12,978k were due to Clearsight Turnaround Fund I, L.P. at
the end of the period under report (31.12. 2010: EUR 15,565k). Via its investment, Altira AG
exercises significant influence on the management company of the Clearsight Turnaround
Fund I.

Heliad had bank credit balances maturing daily and amounting to EUR 648k deposited at
biw Bank für Investments und Wertpapiere AG, Willich, as of the balance sheet date
(31.12. 2010: EUR 881k).
notES to thE IntErIm ConSolIdatEd                                                                                67
FInanCIal StatEmEntS




                            13
                            risk management objectives and methods

                            The company’s risk management objectives and methods have been laid down and docu-
                            mented in a risk handbook. To ensure a systematic approach, the risks have been allocated
                            into three categories:

                            1. Strategic risks:
                            – Investment portfolio performance
                            – Financing
                            – Human Resources

                            2. Financial risks, including:
                            – Valuation risks on new investments
                            – Existing investment portfolio performance
                            – Foreign currency risk
                            – Liquidity risk
                            – Risks for guarantees and other off-balance-sheet obligations
                            – Legal risks

                            3. Operating risks:
                            – Financial accounting, controlling and financial reporting
                            – Cash flows
                            – Data loss and other electronic data processing risks

                            For each area of potential risk, the early detection, communication and management of
                            the relevant risks is ensured by setting out and implementing appropriate countermeasures.
                            The risks involved in financial instruments are especially important in this respect. Valua-
                            tion risk involves the risk of the fair value of investments developing unfavourably. When
                            the continued existence of an investment is in question, this investment and any receiv-
                            ables due from it may lose all of their value. Not only that, the fair value of an investment
                            may basically be determined by the individual business performance of the respective
                            portfolio company, as well as by external factors such as macroeconomic developments,
                            exchange rates and interest rates. Heliad’s portfolio companies focus on a variety of
                            sectors in terms of their activities. This diversification means that Heliad’s overall portfolio
                            is relatively immune to fluctuations in individual sectors.

                            However, the value of individual portfolio companies may be highly dependent on develop-
                            ments in individual sectors or on sector-specific factors. The business performance of
                            R. Häsler AG, a heating system installation service provider, for example, is highly depend-
                            ent on the willingness of private households to invest and on the volume of construction
                            activity.
Heliad quarterly Financial report                                                                  68
q2 2011




Due to its subsidiaries in Switzerland, Heliad is exposed to exchange rate changes involv-
ing Swiss francs. Apart from these investments, Heliad only invests in companies in the
euro area. The investments in US partner funds still in the portfolio are earmarked for sale.
Fluctuations in exchange rates could nevertheless impact indirectly on the value of our
portfolio companies should their earnings or assets be significantly affected by exchange
rate movements.

Heliad is only debt-financed to a slight extent on the level of the Heliad Equity Partners
GmbH & Co. KGaA parent company. However, interest rate risk could impact on the
company indirectly to the extent that investments in its portfolio are dependent on debt
capital. Given its available liquid resources, its high equity ratio and the available credit
line, Heliad’s liquidity risk is assessed as representing a subordinate risk.




14
Capital management

As the managing company, Altira Heliad Management GmbH manages the capital of Heliad,
with such capital being deemed to represent the entire equity. The key management figure
in this respect is the net asset value (NAV) per share. The aim of the management is to invest
in high-performance companies and develop these investments, thus enabling limited share-
holders to participate in the value growth of these portfolio companies as reflected in Heliad’s
NAV figure.

The company aims to achieve consistent NAV growth.
notES to thE IntErIm ConSolIdatEd                                                                               69
FInanCIal StatEmEntS




                              15
                              tax situation

                              In the current legal framework, Heliad’s business activities are largely tax-exempt. The tax
                              loss carryovers accumulated to date are therefore not relevant. No deferred taxes have
                              to be considered for the parent company. The tax expenses reported chiefly relate to sub-
                              sidiaries in the “Services” segment.




                              16
                              Shareholdings

                              The following subsidiaries have been included in the consolidated financial statements:




              Company name and domicile                                                                    Share of capital %




              assona GmbH, Berlin                                                                                       97.2

              Gerber + Güntlisberger, Riehen, Switzerland                                                              86.47

              Investment Due AG, Switzerland                                                                             100

              Midlake Holding AG, Schaan, Liechtenstein                                                                  100

              R. Häsler AG, Möhlin, Switzerland                                                                        86.47

              TIG Vermögensbeteiligung 1 GmbH, Frankfurt / Main                                                          100




                              17
                              Events after the reporting period

                              No transactions or events of material significance have arisen since the end of the 1st half
                              of the 2011 financial year.




                              Frankfurt / Main, August 2011

                              The Management of Altira Heliad Management GmbH
ContaCt


Heliad Equity Partners GmbH & Co. KGaA
Grüneburgweg 18
60322 Frankfurt / Main
Germany
info @ heliad.com
T +49 (0) 69.71 91 59 65 - 0
F +49 (0) 69.71 91 59 65 -11
www.heliad.com

								
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