The second quarter of 009 failed to bring an upturn in our business of venture capital direct investments and private equity fund invest-ments. There were no exits from our portfolio and no new investments were made.
Our activities focused on securing and develo-ping the existing portfolio with the aim of suc-cessfully steering our investments through the crisis and selling them at a profit in the coming years. Venture capital is a volatile business and there is no point in selling good investments at less than their value in economic phases like the current one. Instead, we are currently focus-ing on creatfocus-ing value that will strengthen the substance of our Company and make a positive contribution to income in future.
Due to the lack of sales of holdings and the continued negative price performance of our listed investments, we again recorded a loss in the second quarter. At the same time, howe-ver, we have taken the opportunity to review and optimise our cost structures with a view to cutting costs for 009 as a whole.
The level of Private Equity Advisory business remains subdued on account of the current market conditions, with no additional funds subscribed to and no new customers acquired. Marketable securities and cash and cash equi-valents amounted to €5.6 million on 30 June 009 compared with €8.8 million on 31
De-cember 008. In the same period, cash on hand and bank balances declined from €3.4 million to €1.4 million.
We have a challenging financial year ahead of us. Our activities will focus on maintaining and developing the value of our assets. Based on current developments, it is highly likely that we will close the 009 financial year with a loss.
Berlin, August 009 The Executive Board
Dear shareholders and business partners,
bmp Half Year Report 2009 Business Development 3
Business Development
In the second quarter of the 009 financial year, it again proved impossible to sell shareholdings at acceptable prices. This meant that practically no sales revenue was generated in the first six months of 009. Despite the slight upward trend on the capital markets, our listed invest-ments developed negatively during this period, while the values of our unlisted investments remained largely stable. There were no new investments in the second quarter of the year, with follow-up investments limited to a total of €0.1 million for a Media Investors holding. Due to these factors, bmp AG is again recor-ding a consolidated net loss of €1.1 million for the second quarter of 009. This resulted in a consolidated net loss of €.3 million for the first half of 009, compared with consolidated net income of €.3 million in the same period of the previous year. Accordingly, earnings per share declined from €0.13 to € 0.13.
With the exception of limited income from the disposal of securities, no sales revenue was generated in the period from 1 January to 30 June 009.
Revaluation income totalled €0.4 million in the first half of 009 while revaluation losses total-led €1.9 million, resulting in an overall revaluati-on result of € 1.5 millirevaluati-on. Of this figure, around €1.0 million was attributable to the negative value development of the listed investments K Internet, Vestcorp (formerly TFG) and Heliocent-ris Fuel Cells.
At €587 thousand, personnel costs were down around 16% year-on-year. This was primarily due to the lower level of performance-related bonuses.
Other operating expenses amounted to €653 thousand, a 9% increase on the same period of the previous year (€598 thousand). It should be noted that other operating expenses also inclu-de write-downs of receivables in the amount of €39 thousand (previous year: €61 thousand). The financial result for the first half of 009 amounted to €115 thousand, thereby remai-ning essentially unchanged as against 30 June 008 (€91 thousand). Within this figure, interest income and income from investments in the amount of €17 thousand was offset by interest expense of €10 thousand.
At the end of the first six months of 009, cash and cash equivalents amounted to €1.4 million (previous year: €6.1 million) plus marketable securities of €4. million (previous year €6.9 million). Equity totalled €1.8 million as of 30 June 009, corresponding to equity per share of €1.5.
At the end of the quarter, bmp AG had a total of 14 employees. In addition to the Executive Board, eleven salaried employees currently work for the Company, three of them on a part-time basis.
Development of the Fee Generating Assets under Management (million €)
31.12.06 30.06.07 31.12.07 30.06.08 31.12.08 30.06.09
Assets under Management total 4.5 58.8 64.1 68.5 71.3 71.4
- PE Advisory / Fondsinvestments 40.5 55.8 57.5 61.5 61.1 61.1
- bmp Media Investors / bmp Eco
bmp Half Year Report 2009 Business Development 4 31.12.2005 31.12.2006 31.12.2007 0 80 40 30 20 PE Advisory / Fondsinvestments fee generating direct investments
Assets under Management as at 30.06.2009 in Mio. €
70 60 50 10 10.2 2 10.2 40.5 61.1 31.12.2008 6.6 57.5 30.06.2009 10.3 61.1 Direct Investments of bmp AG
As of 30 June 009, bmp AG held investments in five companies with a total investment volume at acquisition cost of €1.1 million. The investments in Vestcorp AG and Salt of Life International AG are no longer presented separately in bmp AG‘s portfolio, as the
Com-pany intends to dispose of these investments in the near future. Heliocentris AG is now only reported at bmp Eco Investors, as bmp AG has reduced its shareholding to a low level and clas-sified it as available for sale.
Name Business Segment Date of
Invest-ment Stake % Stage Volume million € 1 ErgoTrade AG IT Remarketing/Refurbishment 10/000 49.99 Expansion 1-.5 Revotar Biopharmaceuticals
AG Drug Development 07/000 39.43 Start-Up > .5
3 Newtron AG Enterprise Software 08/1999 31.88 Expansion 1-.5
4 Tembit Software GmbH Enterprise Software 06/1999 16.36 Expansion < 1 5 European Telecommunication
bmp Half Year Report 2009 Business Development 5
Direct Investments of bmp Media Investors AG & Co. KGaA
At 30 June 008, the active portfolio of bmp Media Investors consisted of 11 companies with a total investment volume at acquisition cost of €7.8 million, meaning that there were no signi-ficant changes in the first half of the year. Five of these companies are based in Poland, with the other six domiciled in Germany.
There were no new investments in the second quarter of 009, while follow-up investments related solely to one portfolio company (€0.1 million). The investment in microshooting GmbH is no longer reported in the active portfolio, as further financing has been suspended due to its failure to achieve the agreed milestones. The average investment stake was 33%, while the average investment amount was a good
€0.7 million. The investments primarily relate to comparatively young companies. bmp’s activities over the coming years will focus in particular on supporting their business development, including the provision of additional rounds of funding.
Name Business Segment Date of
Invest-ment Stake % Stage Volume million € 1 Republika Kobiet Sp. z o.o. Internet portal for women 11/007 74.97 Seed < 1 SklepyFirmowe.pl Sp. z o.o. White-label eShop provider 07/008 70.00 Start-Up < 1
3 GreenHanger GmbH Ambient Media 10/007 47.1 Start-Up < 1
4 Nokaut Sp. z o.o. Price comparison 1/005 31.64 Expansion < 1
5 dailyme.tv/mando.TV GmbH Mobile TV 1/007 9.68 Start-Up < 1
6 K Internet S.A. Online Agency 06/000 3.41 Expansion 1-.5
7 Brand New World GmbH Audience Relationship
Manage-ment (TV) 04/007 0.41 Expansion 1-.5
8 Shotgun Pictures GmbH Financing film production,
exploi-tation of rights 09/004 0.00 Expansion < 1
9 nugg.ad AG Predictive Behavioral Targeting 11/006 18.88 Start-Up 1-.5 10 Pomocni Sp. z o.o. Marketplace for domestic services 07/008 16.35 Start-Up < 1 11 Motor Entertainment GmbH
360° artist marketing and music
bmp Half Year Report 2009 Business Development 6
Direct Investments of bmp Eco Investors GmbH & Co. KGaA
bmp Eco Investors currently has one investment, the listed company Heliocentris Fuel Cells AG. In the second quarter of 009, Heliocentris Fuel Cells AG successfully concluded an issue of
sub-scription rights followed by a private placement. After this capital increase met with below-ave-rage participation, bmp Eco Investors‘ equity interest in the company declined to 11.96%.
Name Business Segment Date of
Invest-ment Stake % Stage Volume million € 1 Heliocentris Fuel Cells AG Renewable energy 1/007 11.96 Expansion 1-.5
In the second quarter of 009, Private Equity Advisory business continued to be dominated by extreme restraint on the part of investors. This had two consequences for bmp: firstly, it was unable to gain new institutional investors for the Company, and secondly, König & Cie. was only able to acquire new customers for the INPEQ II joint fund of funds to a very limited extent.
Private Equity Advisory and Fund of Funds Management
bmp Half Year Report 2009 Outlook 7
Outlook
The markets have picked up somewhat over recent weeks on the back of a slight improve-ment in the overall economic outlook. To date, the majority of our portfolio companies have successfully coped with the crisis at an operati-onal level. At the same time, however, there is no sign of an improvement in terms of external financing for innovative growth companies, with funding gaps largely having to be closed by the respective shareholders.
We are observing a slight improvement in exit-side sentiment. Although we are not in concre-te negotiations on the sale of investments at present, there is growing external interest in a number of our portfolio companies. This gives grounds for confidence that we will be able to successfully implement one or more exits before the end of the year.
We intend to exercise considerable restraint with regard to new investments over the co-ming months in order to reserve the available liquidity for the existing portfolio. However, we will undoubtedly expand our investment activity again if we are able to dispose of investments. We expect development in the Private Equi-ty Fund Investments business area to remain
restrained, although there are clear signs of a relaxation in the market.
The third quarter is likely to see a further net loss, as no investments have been sold to date. Berlin, August 009
bmp Half Year Report 2009 Balance Sheet 8
Group Balance Sheet as at 30.06.2009
Assets
30.06.2009
31.12.2008
€ €‘000 Long-term assets Intangible assets ,171.86 3 Tangible assets 35,454.6 43 Equity investments 18,876,737.67 19,074Silent partnerships and loans 638,337.8 895
Affiliated companies and Joint Ventures 69,068.38 396
Fixed-asset securities 0.00 198
20,181,769.45 Current assets
Trade accounts receivable 37.51 6
Receivables and other assets 3,063,795.77 3,753
Cash on banks and cash on hand 1,358,583.66 3,448
4,422,616.94
bmp Half Year Report 2009 Balance Sheet 9
Liabilities
30.06.2009
31.12.2008
€ €‘000 Shareholders´ equity Subscibed capital 17,500,000.00 17,500 Capital reserves 530,600.78 531Other revenue reserve 97,56.66 97
Accumulated net profit ,773,881.44 5,105
21,776,738.88 Long-term liabilities
Liabilities from refinancing activities 1,51,09.43 1,51
Long-term provisions 168,000.00 183
1,689,092.43 Current liabilities
Trade accounts payable 7,84.76 64
Liabilities from refinancing activities 936,000.00 1,607
Liabilities to banks 30.55 0
Other liabilities 174,681.77 333
1,138,555.08
bmp Half Year Report 2009 Profit and Loss Statement 10
Group Profit and Loss Statement
1.1.-30.6. 2009 1.1.-30.6. 2008 1.4.-30.6. 2009 1.4.-30.6. 2008 € €‘000 €‘000 €‘000 Sales revenue
Income from disposal of investments and
securities 55,768.68 1,935 56 1,896
Other operating income
Income from revaluation 388,799.08 ,631 164 46
Other operating income 33,511.54 19 79 160
Income from consulting and commissions 0.00 85 0 9
Reduction in book value of investments
and securities -7,688.74 -884 -73 -847
Staff costs
Wages and salaries -51,76. -68 -75 -38
Social security contributions and costs for
pensions and support -74,46.97 -74 -37 -37
Depreciations
Depreciation on intangible and tangible fixed
assets -9,560.87 -14 -5 -7
Other operating expenses
Expenses from revaluation -1,891,463.4 -473 -934 40
Other operating expenses -653,635.48 -599 -337 -78
Operating income -2,446,278.22 2,198 -1,162 1,106
Income from investments 7,491.88 6 1 13
Interest and similiar income 189,713.07 171 96 80
Interest and similiar expenses -10,438.78 -106 -51 -51
Result on ordinary activities -2,331,512.05 2,289 -1,105 1,148
Consolidated net result -2,331,512.05 2,289 -1,105 1,148
Result per share € -0.13 0.13 -0.06 0.07
bmp Half Year Report 2009 Cash Flow Statement 11
Group Cash-Flow Statement for the Period from 1 January 2009
to 30 June 2009
01.01.- 30.06.2009 01.01.- 30.06.2008 € €‘000Cash Flow from Operations
Consolidated net profit -,331,51.05 ,89
Revaluation of investments, securities and receivables 1,50,664.16 -,157
Profit from disposal of holdings and securities 16,90.06 -1,05
Depreciation of tangible assets 9,560.87 14
Other non-cash items 0.00 0
-802,366.96 -906
Decrease/(-) increase in assets and Increase/(-) decrease in liabilities
Receivables and other assets 68,716.3 -78
Fixed-asset securities 197,800.00 0
Other liabilities -194,16.1 -49
Provisions -15,000.00 -
Total -545,012.94 -1,885
Cash-Flow from Investments Holdings and affiliated companies
Additions to holdings, silent partnerships and loans -9,03.84 -1,589
Change in affiliated companies and joint ventures -33,000.00 -0
Cash-in from the disposal of holdings, securities,
silent partnerships and loans 8,395.16 1,940
-872,808.68 331
Tangible fixed assets
Additions -763.64 -15
Disposals 0.00 0
Total -873,572.32 336
Cash Flow from Financing
Decrease in liabilities to banks -670,859.99 -19
Total -670,859.99 -19
Change in liquid funds -2,089,445.25 -1,568
Liquid funds at the beginning of the reporting period 3,448,028.91 7,650
bmp Half Year Report 2009 Statement of Changes in Equity 1
Statement of Changes in Equity
Figures in €‘000
Subscribed
capital Capital reserve
Other profit reserves
Accumulated
net results Total Equity as at 01.01.2009 17,500 531 972 5,105 24,108
Net result for the period 0 0 0 -,33 -,33
Equity as at 30.06.2009 17,500 531 972 2,773 21,776 Equity as at 01.01.2008 17,500 531 972 6,625 25,628
Net result for the period 0 0 0 ,89 ,89
bmp Half Year Report 2009 Notes 13
Notes
1. General information
This quarterly report was prepared in ac-cordance with the provisions of the Internatio-nal Financial Reporting Standards (IFRS) and IAS 34 in particular.
2. Accounting principles
The accounting principles described in the last published consolidated financial statements for the year ended 31 December 008 continue to apply.
3. Economic and seasonal influences The venture capital business is not subject to any seasonal influences and is not directly linked to any economic development in a specific mar-ket, but is dependent to a slight extent on the general economic situation. A positive correlati-on may arise between the market price develop-ment of innovative, high-growth companies on the securities markets and the prices that can be generated from OTC share disposals.
4. Unusual circumstances
During the period under review, there were no unusual circumstances affecting the Company’s assets, liabilities, equity, profit or loss for the period or cash flows.
5. Estimates
There were no changes to estimated amounts during the period under review.
6. Changes in shares
There were no changes in outstanding shares. 7. Dividends
No dividends were paid in the period under review.
8. Segment information
bmp AG generates its sales revenue almost exclusively from the disposal of investments. The
large majority of the Company’s investments are held in Germany and in Poland. In light of this structure, the Company’s sales revenue and earnings are not broken down into segments. 9. Significant events after 30 June 2009 There were no significant events after the end of the period under review.
10. Basis of consolidation
In the period under review, there were no changes in the basis of consolidation compared with 31 December 008.
11. Contingent liabilities and contingent claims
There were no changes to contingent liabilities and contingent claims during the period under review.
12. Write-downs on financial assets
Write-downs on financial assets totalled €1,891 thousand in the first six months of the 009 financial year.
13. Responsibility statement
To the best of our knowledge, and in ac-cordance with the applicable reporting prin-ciples for interim financial reporting, the abbreviated consolidated interim financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the consolidated interim management report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group in the remaining months of the financial year.
bmp Half Year Report 2009 Group Management Report 14
bmp Aktiengesellschaft, Berlin, Group Management Report for
the Half Year of 2009
In light of the macroeconomic environment, the existing investments developed well in the first six months of 009. At 30 June 009, the investment portfolio consisted of 18 companies with a total investment volume at cost of €. million. Five investments were attributable to the residual portfolio of bmp AG, 1 to bmp Media Investors and one to bmp Eco Investors. The investments are primarily domiciled in Germany. bmp also holds foreign investments in Poland and Switzerland.
No investments were sold in the period under review. One new investment was made by bmp Media Investors.
Private Equity Advisory
No new commitments were made for INPEQ II in the first half of 009. Assets under ma-nagement increased by €0.1 million as against year-end 008.
Significant events after the period under review:
There were no significant events after the end of the period under review.
Opportunities and risks for the period from 1 July to 31 December 2009:
Overall risk assessment and risk manage-ment
bmp has recognised adequate provisions for all identifiable individual risks in its half-yearly financial statements for the period ended 30 June 009. bmp has developed an integrated investment controlling system in order to enable the quantification and qualification of the risks arising from its investment business. In addition to a comparison of target and actual data at both investment and Group level, the system permits seamless reporting as well as satisfying
the purpose of a management information system.
The financial development of the investments is monitored through intensive contact with the respective companies. The carrying amounts and value development of the holdings are reviewed on a quarterly basis using appropriate actuarial models and adjusted as necessary. The continuous controlling of investments allows the Company to implement suitable measures in response to adverse developments.
bmp’s current liquidity position is adequate. From a current perspective, the individual or cumulative occurrence of potential risks pre-sents no danger to the continued existence of the bmp Group. In the opinion of the Executive Board, bmp’s continued existence is guaranteed on a sustainable and long-term basis.
The financial crisis
The impact of the financial crisis on bmp AG and its subsidiaries and portfolio companies should be analysed in a differentiated manner. For example, the squeeze on the credit market has had a major impact on companies and en-trepreneurs who depend on the corresponding credit facilities from banks to allow them to finance their business operations, investments or company acquisitions.
As our direct holdings are generally structurally independent of bank loans, this aspect only affects our portfolio to an extremely negligible extent. The business model of the bmp Group is not based on obtaining leverage from acqui-ring companies, but rather on the acquisition of equity interests within the framework of capital increases. On the other hand, the target funds contained in the funds of funds for which we act as consultants have leveraged the equity deployed in the buy-out segment through loans
bmp Half Year Report 2009 Group Management Report 15
and have turned to investments as a means of obtaining the credit to finance the respective purchase prices. However, this approach on the part of the target funds has no impact on the bmp Group.
By contrast, the general situation on the stock markets has direct consequences for the position of bmp AG. The value of our listed investments has declined in 009. The resulting write-downs are recognised directly in income at bmp AG. On the other hand, the crisis in indi-vidual industries has largely left our investments unscathed to date, as the companies in question have few clients among automobile suppliers, in the machine construction and financial indus-tries, etc. Leading indicators such as incoming orders provide an insight into the expected de-velopment in 009 as a whole. At present, there is nothing to suggest a substantial downturn in revenue.
Individual and cluster risks
Revotar AG, which has an IFRS carrying amount of € 7.6 million, represents the largest as-set position among our investment interests. This biotechnology company is financed until mid-010, after which it will be dependent on
further liquidity. Opportunities
If the macroeconomic situation improves, the Executive Board expects to record some isola-ted sales of investments in the period until 31 December 009, which should make a positive contribution to the consolidated result.
Berlin, August 009