Notes to the financial statements of PolyPeptide Group AG

General information

Accounting policies
These financial statements were prepared in accordance with the provisions of the Swiss Law on Accounting and Finance Reporting (32nd title of the Swiss Code of Obligations). Significant valuation principles that have been applied in the preparation of these financial statements that are not prescribed by law are described below.

Presentation of cash flow statement and additional disclosures in the notes dispensed with
As PolyPeptide Group AG (the “Company”) has prepared consolidated financial statements under a recognized accounting standard (IFRS), it has decided, in accordance with the law, to dispense with the presentation of information on interest-bearing liabilities and audit fees in the notes, a cash flow statement, and an annual review.

Financial year 
The financial year runs from 1 January to 31 December. 

Valuation principles
Assets are valued at no more than cost. Liabilities are carried at nominal value.

All assets and liabilities in foreign currencies are translated by applying the exchange rate prevailing on the balance sheet date. Exchange differences are recognized in the income statement.

Earnings and expenses originated in foreign currencies are translated with the monthly exchange rate.

Investments
Investments are shown at individual historical acquisition costs less impairment, if any.

Own shares
Own shares are recognized in equity as a negative item at cost as per the date of acquisition. In the event of a subsequent sale, a gain is recognized in other capital reserves and a loss is recognized in the accumulated deficit (prior year: in the income statement).

Share-based payments
Part of the variable compensation paid to members of the Executive Committee, selected key employees and part of the compensation paid to members of the Board of Directors is in the form of Company shares. The acquisition cost of the shares is recorded under personnel expenses.

Declaration of the number of full-time equivalents (FTEs)
The average number of full-time positions during the reporting was below 50.

1 Cash and cash equivalents

1 Cash and cash equivalents

kCHF

2024

2023

 

 

 

Cash

224

280

Balance as at 31 December

224

280

2 Investments

2 Investments

There were no changes to the investments held by the Company during 2024. As a result, the table below shows the direct and significant indirect investments held by the Company as at 31 December 2024 and as at 31 December 2023:

Group companies

Location

Capital and voting shares

 

 

Direct

Indirect

 

 

 

 

Polypeptide Laboratories Holding (PPL) AB

Limhamn, Sweden

100%

 

Polypeptide Laboratories (Sweden) AB

Limhamn, Sweden

 

100%

PolyPeptide SA

Braine-l’Alleud, Belgium

 

100%

PolyPeptide Laboratories France S.A.S.

Strasbourg, France

 

100%

PolyPeptide Laboratories Inc.

Torrance, CA, USA

 

100%

PolyPeptide Laboratories San Diego, LLC 1

San Diego, CA, USA

 

100%

PolyPeptide Laboratories Pvt. Ltd.

Ambernath (East), India

 

100%

PolyPeptide Laboratories A/S 2

Hillerød, Denmark

 

100%

1 PolyPeptide Laboratories San Diego, LLC is a wholly owned subsidiary of PolyPeptide Laboratories Inc.

2 PolyPeptide Laboratories A/S is a dormant company.

Percentage of voting shares is equal to percentage of ownership.

3 Contingent liabilites and guarantees

3 Contingent liabilites and guarantees

Limited Partnership Investments

 

2024

2023

 

kUSD

kCHF

kUSD

kCHF

 

 

 

 

 

Uncalled capital commitment as at 31 December

21,000

19,025

23,700

19,861

Limited partnership investments
In November 2021, the Company entered into a limited partnership agreement. The Company committed to invest a maximum amount of kUSD 30,000.
A capital call was made during 2024, where the Company invested kUSD 2,700 in addition to investments made in prior years. As a result, an uncalled capital commitment of kUSD 21,000 as at 31 December 2024 is disclosed in the table above.

If the general partner of the limited partnership makes an additional capital call, the Group would be obliged to pay the amount within ten business days.

Guarantee pension fund
All members of the PRI Pensionsgaranti, the issuer of the defined benefit plan in Sweden, are subject to a mutual liability. This liability would only be invoked in the event that PRI Pensionsgaranti has consumed all its assets. The mutual liability of the Group is limited to a maximum of 2% of the Group’s individual pension liability with PRI Pensionsgaranti. As such, the Group has a contingent liability of kEUR 288 as at 31 December 2024 (2023: kEUR 264), for which it has issued a guarantee to PRI Pensionsgaranti.

Parent guarantee
The Company has provided guarantees in favor of two of the Company’s fully indirectly owned subsidiaries. As of 31 December 2024, the guaranteed amount was mEUR 102.

4 Share capital

4 Share capital

There have been no changes to the share capital of PolyPeptide Group AG during 2024. As a result, the share capital of PolyPeptide Group AG comprised 33,125,001 registered shares with a nominal value of CHF 0.01 each as at 31 December 2024.

5 Reserves from capital contributions

5 Reserves from capital contributions

CHF

2024

2023

 

 

 

Reserves from capital contributions (foreign)

1,909,783,753

1,909,783,753

Reserves from capital contributions (domestic)

195,019,440

195,019,440

Total reserves from capital contribution as at 31 December

2,104,803,193

2,104,803,193

The reported reserves from capital contributions as capital contributions within the meaning of Art. 5 para. 1bis (for the part of the “domestic KER”) or Art. 5 para. 1quater lit. a of the Withholding Tax Act (for the part of the “foreign KER”) have been confirmed by the Swiss Federal Tax Administration as at 30 January 2024.

6 Treasury shares

6 Treasury shares

2024

No. of shares

Average prices in CHF

Own shares as at 1 January 2024

155,494

70.38

Purchase

Transfer to Board members / executive committee (incl. group companies)

-26,989

70.38

Own shares as at 31 December 2024

128,505

70.38

 

 

 

 

 

 

2023

No. of shares

Average prices in CHF

Own shares as at 1 January 2023

199,196

70.54

Purchase

Transfer to Board members / executive committee (incl. group companies)

-43,702

71.13

Own shares as at 31 December 2023

155,494

70.38

During 2024, 26,989 shares were transferred to Board members as part of their share-based remuneration (2023: 43,702 shares transferred to Board members as part of their share-based remuneration). There were no purchases of treasury shares during 2024 and 2023.

7 Financial income

7 Financial income

kCHF

2024

2023

 

 

 

Interest income from group companies

14,113

9,238

Foreign exchange result

2,607

Total financial income

16,720

9,238

8 Other financial expenses

8 Other financial expenses

kCHF

2024

2023

 

 

 

Foreign exchange result

-9,855

Other financial expenses

-2,689

-150

Realized capital loss treasury shares

-2,765

Total other financial expenses

-2,689

-12,770

9 Impairment loss/reversal on investments

9 Impairment loss/reversal on investments

Due to the large weight of the main asset (i.e., the investment in Polypeptide Laboratories Holding (PPL) AB) in the overall assets of PolyPeptide Group AG, the share price of PolyPeptide Group AG represents an indicator for the value of the underlying investment.

For reasons of valuation consistency, an impairment test was carried out using the same method as the original pricing of the shares at the IPO:
30,000,000 (number of shares) x CHF 28.40 (share price as at 31 Dec 2024) - CHF 300,000 = Net market value of PolyPeptide Laboratories Holding (PPL) AB.

In prior years, the impairment test has resulted in impairment losses. However, due to the increase of the share price of PolyPeptide Group AG in 2024, an impairment reversal of kCHF 326,400 has been recognized in the income statement in 2024 (2023: impairment loss of kCHF 234,000).

10 Share ownership of the Board of Directors and the Executive Committee

10 Share ownership of the Board of Directors and the Executive Committee

As at 31 December 2024:

 

Function

Number of shares

which are blocked

allocated in the reporting period

 

 

 

 

 

Klaus Peter Wilden

Chairman

30,690

29,032

8,254

Patrick Aebischer

Vice-Chairman

20,006

18,901

5,503

Beat In-Albon

Member

17,196

16,201

4,142

Jane Anne Salik

Member

25,882

8,145

2,371

Erik Schropp

Member

3,193

Philippe Weber

Member

22,071

20,846

6,095

Dorothee Deuring 1)

Member

3,624

3,624

624

Total Board of Directors

 

122,662

96,749

26,989

 

 

 

 

 

 

Function

Number of shares

which are blocked

allocated in the reporting period

 

 

 

 

 

Juan Jose Gonzalez

CEO

227,842

Marc Augustin 2)

CFO

2,500

Christina Del Vecchio

General Counsel

Neil James Thompson 3

Director Global Sales and Marketing

1,122

Jens Fricke

Director Global Operations

1,380

Total Executive Committee

 

232,844

 

 

 

 

 

Total

 

355,506

96,749

26,989

1 Member of the Board until 10 April 2024.

2 Member of the Executive Committee as of 1 January 2024.

3 Stepped down as Director Global Sales and Marketing and member of the Executive Committee as of 26 April 2024.

As at 31 December 2023:

 

Function

Number of shares

which are blocked

allocated in the reporting period

 

 

 

 

 

Klaus Peter Wilden

Chairman

22,436

22,436

14,034

Patrick Aebischer

Vice-Chairman

14,503

14,503

9,185

Beat In-Albon

Member

13,054

13,054

8,267

Jane Anne Salik

Member

23,511

6,250

3,958

Erik Schropp

Member

3,193

Philippe Weber

Member

15,976

15,976

10,141

Dorothee Deuring 1)

Member

3,000

3,000

3,000

Total Board of Directors

 

95,673

75,219

48,585

 

 

 

 

 

 

Function

Number of shares

which are blocked

allocated in the reporting period

 

 

 

 

 

Juan-José Gonzalez 2)

CEO

227,842

Raymond De Vré 3)

CEO

11,603

-4,883

Jan Fuhr Miller 4)

CFO

7,767

Lalit Ahluwalia 5)

CFO ad interim

Christina Del Vecchio

General Counsel

Neil James Thompson

Director Global Sales and Marketing

1,122

Jens Fricke

Director Global Operations

1,380

Total Executive Committee

 

249,714

-4,883

 

 

 

 

 

Total

 

345,387

75,219

43,702

1 Member of the Board of Directors as of 12 April 2023.

2 Member of the Executive Committee as of 12 April 2023.

3 Member of the Executive Committee until 30 January 2023.

4 Member of the Executive Committee until 1 May 2023.

5 Member of the Executive Committee as of 1 May until 31 December 2023.

11 Residual amount of leasing obligations

11 Residual amount of leasing obligations

The maturity of leasing obligations which have a residual term of more than twelve months or which cannot be canceled within the next twelve months is as follows:

kCHF

31 December 2024

31 December 2023

 

 

 

0-1 years

118

113

1-5 years

472

452

More than 5 years

265

368

Total

855

933

12 Subsequent events

12 Subsequent events

There have been no significant events subsequent to the balance sheet date that would require additional disclosure in the financial statements.

The financial statements for 2024 were approved for issue by the Board of Directors on 10 March 2025 and are subject to approval by the Annual General Meeting on 9 April 2025.

Proposal for the appropriation of accumulated deficit

Proposal for the appropriation of accumulated deficit

The Board of Directors proposes that the General Meeting approves that the accumulated deficit of CHF 1,077,871,571 be carried forward to the new account.

Appropriation of accumulated deficit

CHF

2024

 

 

Net loss brought forward

-1,412,542,049

Net loss on sale of treasury shares

-1,101,556

Net profit for the period

335,772,034

Accumulated deficit to be carried forward

-1,077,871,571