New Economy Development Fund S.A.
(“TANEO”)
Summary Interim Financial Statements for the period
01/01/2009 – 30/06/2009
It is hereby certified that the attached herein Summary Interim Financial Statements for 01/01
– 30/06/2009 period are the financial statements approved by TANEO’s S.A Board of
Directors on 30/07/2009, uploaded on the Web on www.taneo.gr
TANEO hereby declares that to the best of his knowledge the attached financial statements,
which has been prepared in accordance with IAS/IFRS, gives a true and fair view of the
assets, liabilities, financial position and profit or loss of the company as required by
Regulation 7(2) of Transparency Directive 2004/109/EC. Moreover TANEO declares that to
the best of his knowledge the interim management report includes a fair review of the
information required by Regulation 8(2) of the same Directive.
Athens, July 30, 2009
The President of the Board.
Ioannis Papaioannou
I.D. ΑΒ049161
The Vice-President &
Managing Director
The Finance Manager
Nikolas Haritakis
I.D. Ρ093479
George Saperas
I.D. N031359.
License. 28154 Α΄Class
Summary Interim Financial Statements for the period 1/1/2009 – 30/06/2009
2
Table of Contents…………………………………………………………………….…..Page
INTERIM MANAGEMENT REPORT ..................................................................... 4
Α. Interim Income Statement for the period 1/1/2009 – 30/06/2009 .......................... 8
Β. Interim Balance Sheet for the period 1/1/2009 – 30/06/2009 ................................. 9
1. General Information......................................................................................... 10
2. Significant Accounting Policies ....................................................................... 10
2.1.
Basis of Preparation of Financial Statements ........................................ 10
3. Risk Management ............................................................................................ 11
3.1.
Market risk........................................................................................... 11
3.2.
Liquidity risk ....................................................................................... 12
3.3.
Credit Risk ........................................................................................... 12
4. Notes on the Summary Interim Financial Statements ...................................... 13
4.1.
Credit Interests and related expenses .................................................... 13
4.2.
Gains from FVTPL Investments ........................................................... 13
4.3.
Increase / (Decrease) in Fair Value Investments ................................... 14
4.4.
Debit Interest and related expenses....................................................... 14
4.5.
Other Operating expenses..................................................................... 15
4.6.
Investments carried at fair value through the income statement ............ 15
4.7.
Investments available for sale............................................................... 17
4.8.
Other receivables.................................................................................. 18
4.9.
Cash and cash equivalents .................................................................... 18
4.10.
Preferred Stock..................................................................................... 19
4.11.
Bond issue............................................................................................ 21
4.12.
Other Liabilities ................................................................................... 22
4.13.
Contingent Liabilities ........................................................................... 22
4.14.
Commitments....................................................................................... 22
5. Events occurring after the 30/06/2009.............................................................. 22
Summary Interim Financial Statements for the period 1/1/2009 – 30/06/2009
3
INTERIM MANAGEMENT REPORT
This Report includes an analysis of the company’s Summary Interim Financial Statements for
the period 1/1/2009 – 30/06/2009. Moreover it includes a description of important events that
have occurred during the first 6 months of the financial year, their impact on the interim
financial statements and an indication of significant events and perspectives for the
remaining 6 months of the financial year.
1. Significant Events Review 1/1/2009-30/6/2009
The downturn in the economy that started at 2008. continued during the 1st half of 2009
without any signs of sorting out. Whatsoever TANEO’s Funds proceeded with 2 new
investments, 2 follow-on invetsments and 7 approvals for investments after screening out
several proposals (see investment review section)
The total commitments to Venture Capital Funds on 30 June 2009 amounted to €140,2 m.
versus €82,2 m. on 30 June 2008.
The amount of Invested Capital on 30 June 2009 reached the amount of €26,9m. versus
€20,2m.on 30 June 2008. However realizations from Venture Capital Funds and distributions
to TANEO where not very fruitful as they amounted to €23 Thous versus 994 for the same
period last year. The total Gains from Investments posted in the Income statement were €23
Thous. vs €455 Thous. during the 1H-2008.
In May 2009 TANEO participated in a workshop to discuss emerging technology oriented
ventures in Greece and potential synergies with Silicon Valley to foster innovation and
growth. The event was organized by The Hellenic Association at Stanford (Hell.A.S.) in
collaboration with the Corallia Clusters Initiative, HSIA (Hellenic Semiconductor Industry
Association), TANEO (New Economy Development Fund) and Silicon Valley High Tech
Professionals. More than 200 Silicon Valley entrepreneurs, practitioners and academics
attended the workshop, exchanged ideas and established strong intelligence networks.
On 16-17 June 2009 the 10th International Venture Capital Forum was held, in collaboration
with the “Invest in Greece” agency, the “Praxi Network and the Hellenic Venture Capital
Association at the Athens Hilton hotel with more than 500 participants. 95 Business plans
were submitted and more than 150 bilateral business meeting took place. The minister of
Economy and Finance, Mr. Papathanasiou honored the event with his presence. In his key
note speech, he highlighted the exceptional performance and the important role of TANEO
and he expressed his intention of supporting TANEO to further grow its activities.
On 12th of June, Microsoft Hellas and TANEO signed the establishment agreement and the
articles of association of the Microsoft Innovation Center which was inaugurated by the Prime
Minister of Greece Mr. Kostas Karamanlis and the founder of Microsoft Mr. Bill Gates
2. Investment Review
A summary of TANEO’s Venture Capital Funds performance is provided below:

“Capital Connect Venture Partners”, a €24 m. fund where TANEO participated with
a stake of 49,99%. Since its inception, the fund accomplished three total realizations
and a partial one, resulting in a pooled gross IRR of 6,71%. As of October 2008 the
investment period of the fund expired. Therefore the total commitments are not
expected to exceed €11m ( i.e. €8m actual draw downs plus €3m maximum planned
Summary Interim Financial Statements for the period 1/1/2009 – 30/06/2009
4
draw downs for following on investments). Its management examines different
alternatives for following-on its two remaining portfolio companies.

“Zaitech Fund”, a €40 m. fund. TANEO’s commitment to the fund is €20m. for a
49,99% interest.. The Fund’s portfolio consists of eight companies for a total cost of
€12,2 m. On July, 2009 the investment committee approved a new investment worth
€5 m. on Erasineio Hospital S.A., a company operating in the health sector
Furthermore the fund has committed €2,84m in 2 companies (Eyrydamantos and
ENEP), thus rising the total committed amount allocated to portfolio companies to
over €20 m. Due to the negative economic climate the three listed companies of the
fund i.e Mediterra S.A., Doppler S.A. and Performance Technologies S.A..
experienced a significant fall on their prices resulting in decreasing the Fair Value of
the Fund by €0,9m since 31/12/2008. Foodlink a portfolio company operating in 3P
Logistic sector received listing approval by the ASE.

“IBG Hellenic Fund II”, a €17m. fund. where TANEO participated with a stake of
49,99% interest. The fund’s portfolio consists of five companies, three of them
operating in the energy sector, for a total cost of €6,1 m. The fund retains the upside
revaluation of its energy companies resulting in a pooled multiple to cost of 4,2x. The
fund proceeded with a follow on investment in Autostop S.A. for €0,5m. and has
already drawn €0,5m. for increasing its investment in "AIGAIAS ANAPTYXIAKI
S.A." . Finally Mobile Technology S.A." expressed its interest to exercise the call
option for the convertible bond issued by the company and held by the Fund.
According to the initial terms of the convertible bond, the company holds the right to
acquire the bond at a premium to the initial price set by the initial investment plus
25% IRR less any received interest and fees. The transaction is expected to be
concluded by mid July

“AXON-TANEO (former Pancreta Development Fund)” a €40m fund where TANEO
participated with a stake of 49,99%. After evaluating a number of companies, the
fund is currently at the stage of submitting its investment proposals to the investment
committee.

“Thermi - TANEO Venture Capital Fund” a €24 m. fund where TANEO participated
with a stake of 49,90%. During 1H-2009the fund examined approximately 18
investment opportunities, initially approving a renewable energy project.

“ALPHA – TANEO Fund” a €30 m. fund where TANEO participated with a stake of
49,00%. At the moment the fund has invested in 3 companies: Upstream which is
currently performing within the range of anticipated results and two new investments,
Piraiki Microbrewery an investment of €1,1m on a small premium quality producer of
branded beverages and Kritis GI SA with a total investment of €2,0m.

“OXYGEN – TANEO Fund” a €30 m. fund where TANEO participated with a stake
of 49,99%. During 1H-2009, the fund has committed to invest €0,75m in Lead
Generation S.A., a company operating the spitogatos.gr a real estate classifieds
website. The investment will be finalised on July 2009 with the payment of the first
tranche of €0,5m.

“GIVE – TANEO Fund” a €20 m. fund where TANEO participated with a stake of
49,99%. The Management Company of the fund has been actively evaluating
approximately thirty four prospective investments during 1H-2009, with a focus on
renewable and "Green" energy. Among these Eco Green Power has been singled out
as a first investment in this sector that will take place during the second half of 2009.

“Piraeus – TANEO Fund” a €30 m. fund where TANEO participated with a stake of
49,99%. During 1H-2009 and after screening 120 companies as potential investments,
the fund’s investment committee has approved 3 deal alerts. The relevant companies
Summary Interim Financial Statements for the period 1/1/2009 – 30/06/2009
5
operate in the areas of voice recognition, proton exchange membranes, an electronic
platform for shipping related transactions and fuel cells for a total capital of 7,5m.
The management of the fund is currently executing these investments.

“New Mellon – TANEO Fund” a €15 m. fund where TANEO participated with a
stake of 49,99No significant developments during the period up to 30/6/09. The
management team focused on the sourcing of potential investments mainly in the area
of PV Farms.

TANEO - FGRES Fund” a €24 m. fund where TANEO participated with a stake of
49,99%. By the end of 30/6/2009, most of the investment proposals examined, have
been rejected mainly due to immature status or limited return potential in correlation
to the risk involved, however a number of interesting proposals are being currently
examined.
3. Financial Review
The company prepares half-year Interim Financial Statements following the Transparency
Directive 2004/109/EC, as its bonds are listed on the regulated market of the Irish Stock
Exchange. The Interim Financial Statements are prepared in accordance with IAS/IFRS.
In the 1 st half of 2009 the pre tax loss reached €3.956 Thous. versus pre tax losses of €238
Thous. in the 1st half of 2008
Regarding the income from operating activities the fall of interest rates in Eurozone had a
negative effect in the credit interests deriving from the invested money in Money Market
Funds. These credit interests went down in the1 st half of 2009 amounting to €1.117 Thous.
The average return from these investments during the 1st half of 2009 was 1,9% versus 4,4%
during the 1 st half of 2008. As there were not any realizations from itsTANEO’s underlying
funds the gains from FVTPL investments reached the amount of €23 Thous.,deriving from a
dividend distribution, versus 455 Thous for the same period last year. Moreover as there was
not any reason for VC Funds to rise the fair market valuation of their portfolio companies,
this class of income was also fell behind comparing to 1H-2008. It must be noted that the
company’s main source of income shall be the returns that are expected to derive from its
participation in Venture Capital Funds. These returns will be given to the company over time,
due to the nature of the investments. Given the very recent start of TANEO investment
activities, the small size of such returns in the period examined here is considered to be
reasonable.
Regarding the expenses, debit interests on the bond loan decreased versus last year due to the
abovementioned fall of interest rates. More specifically debit interests amounted to €1.846
Thous.for the period 1/1/2009-30/06/2009 versus €2.527 Thous.for the period 1/1/200830/06/2008. The interest rate (6m Euribor) on the loan notes was about 3,9% versus 4,7% for
the same period last year The expenses from the issuing and the restructuring of the
bond loan are amortized on a 10-year period which is the duration of the bond. The
amortization charge for the 1 st half of 2009 was €313 Thous. Payroll costs for the period
amounted to €190 Thous. The “decrease in FVTPL Investments” refers to the decrease of the
Net Asset Value of TANEO’s Venture Capital Funds due to a) the set-up fees of the new
funds b) the management fees for the period c) the fact that some of the Venture Capital
Funds valued their portfolio companies in historical cost and d) the fall in stock market prices
of the listed portfolio companies of Zaitech Fund. Other operating expenses without including
any extraordinary or non-recurring item, amounted to €315Thous. versus €378Thous. for the
period 1/1/2008-30/06/2008
Summary Interim Financial Statements for the period 1/1/2009 – 30/06/2009
6
3. Significant Events and perspectives in 2nd Half of 2009
Six months after the completion of the investment period and the commitment of funds under
management, TANEO has achieved to establish an efficient system of monitoring its funds
and evaluating the submitted investment proposals. Until now TANEO has initially reviewed
more than 50 investment proposals thus enhancing its underlying funds deal flow pipeline.
This fact allows it to have an extended knowledge of the Greek market and to identify
thoroughly hidden opportunities and existing weaknesses. Therefore TANEO is currently
planning its next strategic movement towards areas where profound gaps of investment
financing exist.
Summary Interim Financial Statements for the period 1/1/2009 – 30/06/2009
7
Α. Interim Income Statement for the period 1/1/2009 – 30/06/2009
Notes
1/1 - 30/06/2009
Amounts in thousands Euro
1/1 - 30/06/2008
Credit interests & other finance income
4.1
1.117
2.810
Gains from FVTPL Investments
Increase in fair value investments carried at fair
value through the income statement
4.2
23
455
4.3
45
1.347
Other operating income
Income from operating activities
Debit interests & other finance expenses
4.4
Payroll expenses
16
4
1.201
4.616
(2.159)
(3.908)
(190)
(173)
(3)
(4)
(392)
Depreciation
Decrease in fair value investments carried at fair
value through the income statement
4.3
(2.490)
Other operating expenses
4.5
(315)
(378)
Total Operating expenses
(5.157)
(4.853)
Profit / (Loss) before taxes
(3.956)
(238)
Income tax (Deffered tax)
Profit / (Loss) after taxes
156
(3.800)
Summary Interim Financial Statements for the period 1/1/2009 – 30/06/2009
78
(159)
8
Β. Interim Balance Sheet for the period 1/1/2009 – 30/06/2009
Notes
30.06.2009
30.06.2008
Amounts in thousands Euro
Assets
Non-Current Assets
Tangible Assets
31
Intangible Assets
0
1
4.6
24.722
12
24.765
16.297
16
16.319
Current Assets
Investments available for sale
4.7
113.134
119.820
Other receivables
Cash and cash equivalents
4.8
4.9
175
1.644
114.954
468
3.327
123.614
139.719
139.933
Share capital
Retained Earnings / (Accumulated losses)
1.000
-9.883
1.000
-10.060
Total Equity
-8.883
-9.060
Investments carried at fair value through the income statement
Long term receivables
Total Assets
5
Equity and liabilities
Equity
Long term liabilities
Preferred stock
4.10
45.000
45.000
Bond loan
4.11
102.196
101.570
Deferred taxes
472
862
751
148.419
1.080
148.512
183
183
481
481
Total liabilities
148.602
148.993
Total Equity and Liabilities
139.719
139.933
Provisions
Short term liabilities
Other liabilities
4.12
Summary Interim Financial Statements for the period 1/1/2009 – 30/06/2009
9
1.
General Information
The Company was incorporated on the 18th of May 2001 under the name “New Economy
Development Fund SA” (Tameio Anaptyxis Neas Economias AE) and the registered title
TANEO SA The Company is based in Greece, 12 Amerikis Str., 10672 Athens and the web
address is www.taneo.gr
The purpose of the company is the minority participation in closed-end venture capital funds
(AKES), venture capital companies (EKES) and similar venture capital organizations
(hereafter referred to as "investment organizations"), which will be established specifically
for this purpose and will operate in accordance with the laws of any Member State of the
European Union. These investment organizations must be managed by private entities in
conformity with private sector financial criteria and must invest exclusively in innovative
small and medium-size enterprises in Greece.
2. Significant Accounting Policies
Estimates and judgments by the management are being constantly scrutinized and are based
on historical data and expectations for future events. These expectations are deemed
reasonable based on the current data, they have not changed compared to 31.12.2008, while
not including unusual events which would call for further notifications in relation to the
annual Financial Statements
2.1.
Basis of Preparation of Financial Statements
The Company’s Summary Interim Financial Statements for the first semester of 2009
covering the period January 1st – June 30th 2009, have been drawn up on the basis of the
historical cost principle, as modified by assets and liabilities readjustment to current values,
the going concern principle being in accordance with the International Financial Reporting
Standards (IFRS), as issued by the International Accounting Standard Board (IASB), and the
interpretations thereof, as issued by the International Financial Reporting Interpretations
Committee (I.F.R.I.C.) of IASB.
Drawing up Interim Financial Statements in accordance with the International Financial
Reporting Standards (IFRS) requires significant accounting estimates and scrutiny on behalf
of the management in the accounting principles application process. Important assumptions
by the management on the Company’s accounting methods application are highlighted when
deemed necessary. Estimates and judgments by the management are being constantly
evaluated and are underpinned on empirical data and other factors including reasonable
expectations for future events.
The Summary Interim Financial Statements do not include all the information and notes
required in the Annual financial statements of December 31st 2008 and must be read in
correlation with the Company’s financial statements of December 31st 2008.
The accounting principles and the calculations based on which the financial statements were
drafted are consistent with the ones used to draft the annual financial statements of the
financial year which ended on 31/12/2008 and have been consistently applied in all periods
under investigation.
.
Summary Interim Financial Statements for the period 1/1/2009 – 30/06/2009
10
3. Risk Management
The Company is exposed to various financial risks, the most important being market risk, in
other words the risk of changes in exchange rates, interest rates and market prices, liquidity
risk and credit risk.
The general risk management policy of the Company focuses on credit risk and market risk
management.
Risk management is performed through the various business operations of the Company.
The approval of the executives that bind the company is required prior to carrying out
transactions
3.1.
Market risk
Foreign Currency Risk
Exchange rate risk means the investment risk assumed, which arises from unfavourable
changes in currency prices, when there is exposure to a specific currency.
It does not affect Company’s operations significantly as foreign currency transactions do not
exist.
Interest Rate Risk
Interest rate risk means the investment risk assumed, which arises from changes in the market
in money interest rates.
Such interest rate changes can affect the Company’s financial position since the following can
also change:
- The net interest rate result
- The value of income and expenses sensitive to interest rate changes
- The value of assets and liabilities since the present value of future cash flows (and
frequently the cash flows themselves) change as interest rates change.
This kind of risk is related with the bond that the Company issued. The bond issue is
guaranteed by the Greek State and may be traded in the Dublin Stock Exchange. The
guaranteed interest rate is floating and, thus, the company is exposed to cash flow interest rate
risk.
The table below presents the income statement and equity sensitivity at a normal rate
volatility by +0,5% or -0,5%. Changes in interest rats are set to be on a rational footing in
relation to recent market conditions.
1/1-30/06/2009
Amounts in thousands Euro
0,5%
-0,5%
Income Statement
Equity
1/1-30/06/2008
Amounts in thousands Euro
0,5%
-0,5%
70
-70
110
-110
70
-70
110
-110
Summary Interim Financial Statements for the period 1/1/2009 – 30/06/2009
11
3.2.
Liquidity risk
Liquidity risk means the possible inability of the Company to fully repay in due time its
current or future financial obligations –when they become due- due to a lack of necessary
liquidity. This risk includes the possibility of a need to refinance amounts at a higher interest
rate and the need to sell off assets.
This kind of risk is also related with the bond that the Company issued . More specifically it is
related to the 6-month payment of the guaranteed interest and the repayment of the principal
balance of the note at June 2013. Liquidity is also related to the timing and the amount of
returns from the investments in venture capital funds (AKES).
The Company carefully monitors its long term financial liabilities and liquidity needs and it
maintains adequate funds to cover its current and future needs.
th
th
The financial liabilities maturity on June 30 2009 and June 30 2008 for the Company was
the following:
1/1-30/06/2009
Amounts in thousands Euro
Short term
Long term
Within 6 mothns
6-12 months
1-5 years
Later than 5 years
Preferred stock
Bond loan
Other liabilities
3.3.
45.000
45.000
105.000
105.000
173
173
1/1-30/06/2008
Amounts in thousands Euro
Short term
Long term
Within 6
6-12 months
1-5 years
Later than 5
mothns
years
481
0
0
150.000
481
0
0
150.000
Credit Risk
Credit risk derives from breach of obligations by debtors to repay all or part of their debt
within contractual deadlines
The main financial assets of the company refer to bank balances and receivables from nonGreek mutual funds (money market funds).
The credit risk on liquid funds is limited because the counterparties are banks with high
credit-ratings assigned by international credit-rating agencies of mutual funds traded in stock
exchange markets.
Consequently, the company has no significant concentration of credit risk.
Summary Interim Financial Statements for the period 1/1/2009 – 30/06/2009
12
4.
4.1.
Notes on the Summary Interim Financial Statements
Credit Interests and related expenses
30.06.2009
30.06.2008
Amounts in thousands Euro
Interest from securities
(Money market funds)
Other Income
1.109
2.796
8
1.117
14
2.810
The aforementioned interest revenue amounting to Euro 1.109 thous. originates from
investments in non-Greek mutual funds. More information is provided in note 4.7.
4.2.
Gains from FVTPL Investments
30.06.2009
30.06.2008
Amounts in thousands Euro
Capital Connect
Zaitech Fund
304
23
23
151
455
The Gain from Zaitech Fund refers to a dividend distribution of one portfolio company
Summary Interim Financial Statements for the period 1/1/2009 – 30/06/2009
13
4.3.
Increase / (Decrease) in Fair Value Investments
30.06.2009
30.06.2008
Amounts in thousands Euro
Zaitech Fund
IBG Hellenic Fund II
AXON - TANEO
Increase in Fair Value
0
0
45
45
1287
60
0
1.347
Capital Connect
Zaitech Fund
IBG Hellenic Fund II
Thermi - TANEO
Alpha - TANEO
Oxygen - TANEO
Give - TANEO
Piraeus - TANEO
New Mellon - TANEO
FG RES - TANEO
Decrease in Fair Value
(15)
(1.133)
(124)
(147)
(215)
(188)
(122)
(330)
(161)
(54)
(2.490)
(93)
0
0
(131)
(169)
Net Result from Valuation of
Investments
(2.445)
955
0
0
0
0
0
(392)
The decrease in Fair Value Investments is due to a) the set-up fees of the new funds b) the
management fees for the period c) the fact that some of the Venture Capital Funds valued
their portfolio companies in historical cost and d) the fall in stock market prices of the listed
portfolio companies of Zaitech Fund.
4.4. Debit Interest and related expenses
The “Debit Interest and related expenses” amount is analyzed as follows:
30.06.2009
30.06.2008
Amounts in thousands Euro
Interest expenses on the
bond issue
Additional Return on the
bond issue
Amortization on the issue
and restructuring expenses
of the bond
1.846
2.527
1.068
313
Other expenses
2.159
Summary Interim Financial Statements for the period 1/1/2009 – 30/06/2009
313
1
3.908
14
4.5. Other Operating expenses
The “Other operating expenses” amount is analyzed as follows:
30.06.2009
30.06.2008
Amounts in thousands Euro
Investment advisor fees
Trustee fees
Cash management fees
BOD fees
Lawyers fees
Auditors fees
Accountants fees
Communication expenses
Leasing expenses
Travel expenses
Advertising and promotion
expenses
Insurance fees
Other Overheads
4.6.
40
34
11
62
38
16
12
7
44
21
75
4
11
62
38
15
12
5
42
13
11
5
15
315
52
9
40
378
Investments carried at fair value through the income statement
31.12.2008
31.12.2007
Amounts in thousands Euro
Investments in venture capital funds
(AKES)
24.335
7.468
An analysis of the participations in venture capital funds (AKES) is provided below:
Summary Interim Financial Statements for the period 1/1/2009 – 30/06/2009
15
Contributions to Funds
Untill
1H 2009
30.06.2009
Fund Name
Distributions from realized
investments (Capital part)
Untill
1H 2009
30.06.2009
(1)
Increase / (decrease) in
Fair Value
Untill
1H 2009
30.06.2009
(2)
Investments
Carried at Fair
Value at
30.06.2009
(3)
4=(1)-(2)+(3)
Capital Connect
150
4.167
0
1.250
-15
-1.948
969
Zaitech Fund
510
8.249
0
39
-1.133
-827
7.384
IBG Hellenic Fund II
593
5.056
0
719
-124
4.790
9.127
AXON - TANEO
0
3.000
0
0
45
-164
2.836
Thermi - TANEO
0
599
0
0
-147
-420
179
2.940
0
0
-215
-511
2.429
545
0
0
-188
-279
266
500
0
0
-122
-282
218
0
750
0
0
-330
-330
420
750
750
0
0
-161
-161
589
Alpha - TANEO
Oxygen - TANEO
470
Give - TANEO
Piraeus - TANEO
New Mellon - TANEO
TANEO FG RES
360
360
0
0
-54
-54
305
2.833
26.916
0
2.009
-2.445
-186
24.722
Commitments as
30.06.2009
Total
Contributions
untill
30.06.2009
(1)
(2)
Total
Distributions
untill
30.06.2009
Remain to be
invested as
30.06.2009
%
Particip.
Closing Date
Capital Connect
49,99%
May-03
5.349
4.167
1.904
1.182
Zaitech Fund
49,99%
Sep-08 (2nd
Closing)
20.000
8.249
275
11.751
IBG Hellenic Fund II
49,99%
Nov-04
8.530
5.056
1.347
3.474
AXON - TANEO
49,99%
Jun-08 (2nd
Closing)
19.999
3.000
0
16.999
Thermi - TANEO
49,90%
Mar-08
11.976
599
0
11.377
Alpha - TANEO
49,00%
Jun-08
14.700
2.940
0
11.760
Oxygen - TANEO
49,99%
Nov-08 (2nd
Closing)
14.998
545
0
14.454
Give - TANEO
49,99%
Sep-08
10.000
500
0
9.500
Piraeus - TANEO
49,99%
Dec-08
15.000
750
0
14.250
New Mellon - TANEO
49,99%
Dec-08
7.500
750
0
6.750
TANEO FG RES
49,99%
Dec-08
11.998
360
0
11.638
140.049
26.916
3.526
113.133
Fund Name
3=(1)-(2)
The aforementioned participations amounting to Euro 16.297 thous. refer to participations in
AKES of limited duration as provided by article 7 of L.2992/2002.
The purpose of the A.K.E.S. is to invest in innovative companies, which are registered and
based in Greece and which are, preferably, active in sectors of the new economy, and in
companies whose competitive advantage arises from technology applications of the new
economy.
Investments will be made exclusively in small or medium sized enterprises and preferably,
but not exclusively in their start up or early stage of operations.
No investment is allowed in enterprises that have issued securities traded in an organized
market as dictated by article 1 of the Directive 93/22/EEC. The investment in enterprises
whose securities are traded in an organized market, as above, is allowed only if the
participation has preceded the approval of the listing by the relevant authorities and the
A.K.E.S. transfers its investment within five (5) years, at the most, from the commencement
of the trading of the securities of the enterprise.
Summary Interim Financial Statements for the period 1/1/2009 – 30/06/2009
16
The investment policy of the A.K.E.S. aims to achieve profits for the unit holders, in
particular by enjoying a stable income on the invested capital, in the form of interest income,
by appropriating part of the profits of the investees for the benefit of the unit holders and by
realizing capital gains from the liquidation of the investments.
The net assets of A.K.E.S are allocated to equal shares.
The payment for the participation in an A.K.E.S is made in cash instalments deposited with
the Custodian of the mutual fund.
The unit holders undertake the commitment to fulfill the payment obligation in cash, of any
outstanding installments of their participation within ten (10) working days from the date the
Manager requests so in writing.
TANEO will deposit the amount corresponding to its contribution only after the rest of the
unit holders have deposited the amount corresponding to their contribution, as requested by
the Manager, and a written confirmation is obtained from the Custodian thereon, that will be
handed over to TANEO by the Manager.
TANEO has undertaken the commitment to participate in every capital increase of the
A.K.E.S. that takes place by existing or new unit holders. The amount of its participation will
be equal to the amount raised through the participation increase of the existing or new unit
holders minus one euro (€1).
The shares of the A.K.E.S. are transferable under certain conditions.
In the form of a penal clause, it is provided that in the case of delinquency of a unit holder to
effect the contribution of the whole or part of his outstanding commitment towards the
A.K.E.S. for a period longer than thirty (30) days after receiving notification by the
Custodian his units are passed on, with no remuneration, to the other unit holders
proportionally to their participation in the A.K.E.S.
The aforementioned investments are classified as investments at fair value through the profit
or loss at their initial recognition and subsequently are also measured at fair value. In view of
the fact that the aforementioned investments are not quoted in an organised market, the
company, for determining the fair value, implements valuation techniques that are commonly
used in the marketplace for the valuation of such financial instruments.
4.7.
Investments available for sale
Investments available for sale refer to:
30.06.2009
30.06.2008
Amounts in thousands Euro
Investments in mutual funds
(Money market funds)
113.134
Summary Interim Financial Statements for the period 1/1/2009 – 30/06/2009
119.820
17
The Money Market Funds are investments which are listed but not traded in a non-Greek
stock market. The mutual fund invests in fixed return securities and, consequently, the return
for the company is not subject to significant fluctuations.
The participation is effected by using cash funds deposited with the company’s bank account.
The remainder of such cash funds is restricted with the purpose to cover the payments of the
company associated to the bond issue of Euro 105 million issued on the 3rd of June 2003.
The aforementioned investments provide the company with the opportunity to derive interest
income. Such investments have fixed maturity and eligibility to interest collection. The fair
value of these mutual funds is based on market prices in an organized market.
The valuation of the aforementioned mutual funds is made at cost that approximates their fair
value. The accrued interests of these investments are included in the “Other Receivables”
account.
4.8.
Other receivables
30.06.2009
30.06.2008
Amounts in thousands Euro
446
113
18
39
4
23
175
468
The Board is of the opinion that the carrying value of the aforementioned items approximates
their fair value of such items.
Accrued interest (income)
Prepaid expenses
Other debtors
4.9. Cash and cash equivalents
The cash and cash equivalents comprise:
a) short term bank deposits (demand deposits) amounting to Euro 97 thous.
b) short term bank deposits (repos) amounting to Euro 850 thous. for an initial time
period of deposit of one month.
c) Bank deposits amounting to Euro 697 thous. maintained by Deutsche Bank. This
account receives all the amounts payable to TANEO in respect of its participation in
any Investment Vehicle. Its balance is available to TANEO to meet payments in
accordance with condition 3 of the Bond Issue.
The carrying value of these assets approximates their fair value.
Summary Interim Financial Statements for the period 1/1/2009 – 30/06/2009
18
4.10. Preferred Stock
1.
The nine hundred thousand (900,000) preferred shares without voting rights which
were issued with the decision of the Extraordinary General Meeting of Shareholders dated 3
June 2003 (hereafter referred to as “Preferred Shares”) was determined to be issued at par and
be paid in installments, pursuant to the provisions of article 12 of L.2190/1920 as follows:
(a)An amount of Euro two million six hundred thousand (2,600,000) on the date of the
issuance.
(b)The remaining amount of forty two million and four hundred thousand 42,400,000
Euro was determined to be paid as follows:
(i) an amount of nineteen million and four hundred thousand (19,400,000) Euro until
the 30th of June 2003,
(ii) an amount of eight million (8,000,000) Euro until the 30th of June 2004 and
(iii) an amount of fifteen million (15,000,000) Euro until the 30th of June 2005.
The total amount of the par value of the Preferred Shares has been paid by the Greek State.
2.
The preference rights of the Preferred Shares are as follows:
(a) The Preferred Shares are entitled to receive interest calculated per annum at a
percentage of the paid up par value of each preferred share (i.e. of the sum which is,
from time to time, paid up in accordance with the terms of payment of the value of
each Preferred Share in installments pursuant to paragraph 1 hereof). The above
percentage shall consist of the aggregate of:
(i) a rate of interest equal to the Guaranteed Interest Rate
(ii) a rate of interest equal to the Additional Return Rate
The said amount of interest shall be payable cumulatively on the Final Maturity Date
or Early Redemption Date, subject to sufficient funds being available under Condition
3 of the Bond Issue.
(b)In addition, the Preferred Shares shall be entitled to receive part of the net income,
as described in Condition 3 of the Bond Issue, of any nature whatsoever, resulting from
the Company’s participation in investment organizations (as defined in article 3 of the
Articles of Association and article 28 paragraph 2 of Law 2843/2000), which includes
the income from the liquidation of the relevant investments. The said income shall be
payable on each Payment Date.
3.
During such time as the Preferred Shares will be entitled to receive the income set out
in the preceding sub-paragraph 2(b), the Preferred Shares will not be entitled to participate in
the Company’s profits other than the income set out in the preceding sub-paragraph 2(b).
4.
On the Final Maturity Date or Early Redemption Date, the Company shall proceed to a
reduction of its capital by the sum of euro forty five million (45,000,000) by way of
acquisition of the entire nine hundred thousand (900,000) Preferred Shares and payment of
their par value subject to available funds being sufficient under Condition 3 of the Bond
Issue.
Summary Interim Financial Statements for the period 1/1/2009 – 30/06/2009
19
5.
The following definitions apply for the application of the above
(a)“Bond Issue”: The bond issue in the sum of euro one hundred and five million
(105,000,000) issued by the Company pursuant to a resolution of a general meeting of
its shareholders made on the 3rd June 2003, and executed in London by virtue of
aTrust Deed dated the 3rd June 2003 between the Company, Deutsche Trustee
Company Limited, a company registered in London (as trustee), and the Hellenic
Republic (as guarantor).
(b)“Guaranteed Interest Rate”: The rate referred to under that term (in English:
“Guaranteed Interest Rate”) in Condition 5 of the Bond Issue, and which today equals
to the aggregate of (i) EURIBOR for six month deposits minus (ii) 0.02% per annum,
as will be defined in particular by the bank designated as Agent Bank (in English:
“Agent Bank”) under Condition 5 of the Bond Issue.
(c)“Additional Return Rate”: The rate referred to under that term (in English:
“Additional Return Rate”) in Condition 3 of the Bond Issue, and which today equals to
0.2%.
(d)“Payment Date”: Each date referred to under that term (in English: “Payment Date”)
in the conditions of the Bond Issue and which are defined as the 3rd June and the 3rd
December in each year up to and until the Final Maturity Date or, if Residual
Certificates are issued, up to and until the Residual Certificates Final Maturity Date.
(e)“Final Maturity Date”: The 3rd June 2013 or, if such day is not a Business Day, on
the next Business Day after such date.
(f)“Early Redemption Date”: The date which under the conditions of the Bond Issue,
wherein it is referred to as the “Early Redemption Date”, precedes the Final Maturity
Date subject to the occurrence of certain extraordinary events.
(g)“Residual Certificates”: The securities referred to by the English term “Residual
Certificates” in Condition 8 of the Bond Issue and which may be issued by the
Company in accordance with the said Condition 8 of the Bond Issue.
(h)“Residual Certificates Final Maturity Date”: The date referred to under that term (in
English: “Residual Certificates Final Maturity Date”) in Condition 8 of the Bond Issue
and is today defined at the 3rd June, 2020.
A derivative is embedded in preferred stock, since the payment of the additional return
depends on the return of investments in venture capital mutual funds in which part of the
issue has been invested to. Consequently this financial instrument (i.e. the nominal value of
the preferred stock including the derivative) can not be reliably valuated because a) the
embedded derivative is related with returns of financial organizations not listed in an
organized financial market, b) the investments in venture capital funds (AKES) as 30/06/2009
comprise only 19,2% of the available funds, c) the biggest part of these investments has been
realized the last three years. The whole financial instrument is reflected in the financial
statements at historic cost as this method is considered to be the most reliable one.
Summary Interim Financial Statements for the period 1/1/2009 – 30/06/2009
20
4.11. Bond issue
On the 30th of June 2003, the company issued a Bond Issue of par value Euro 105 million, of
ten years duration that is represented by 10,500 bonds of par value Euro 10,000 each.
The bond issue is guaranteed by the Greek State and may be traded in the Dublin Stock
Exchange. The guaranteed interest rate is floating and, thus, the company is exposed to cash
flow interest rate risk.
The return which the bond holders are eligible to is determined by (i) the guaranteed by the
Greek State interest rate equal to the six-month EURIBOR reduced by 0.02% (ii) the
additional return that is based on the 0.02% of the par value, providing that there are adequate
funds, according to Term 3 of the contract for the bond issue and (iii) the payment to be
effected by the company on the maturity date or the early redemption date, providing that
there are adequate funds, according to Term 3 of the contract for the bond issue. Term 3 of
the contract for the bond issue refers to the priority in the company’s payments.
A derivative is embedded in the bond, since the payment of the additional return depends on
the return of investments in venture capital mutual funds in which part of the issue has been
invested to. Consequently this financial instrument (i.e. the nominal value of the bond
including the derivative) can not be reliably valuated because a) the embedded derivative is
related with returns of financial organizations not listed in an organized financial market, b)
the investments in venture capital funds (AKES) as 30/06/2009 comprise only 19,2% of the
available funds, c) the biggest part of these investments has been realized the last three years.
The whole financial instrument is reflected in the financial statements at historic cost net of
accumulated amortization of issue and restructuring expenses as this method is considered to
be the most reliable one.
The amount of interest expense on the bond issue for the 1st Half 2009, is Euro 1.846 thous.
The nominal value of the bond issue and the expenses associated to the issue and
restructuring reduced by the charges to the income statement, on the basis of the duration of
the loan, as at 30 June 2009 and 2008 are as follows:
30.06.2009
30.06.2008
Amounts in thousands Euro
Nominal value
Issue and restructuring costs
Carrying amount
105.000
-2.804
102.196
Summary Interim Financial Statements for the period 1/1/2009 – 30/06/2009
105.000
-3.430
101.570
21
4.12. Other Liabilities
30.06.2009
30.06.2008
Amounts in thousands Euro
Accrued interest (expense)
Other Accrued expenses
114
24
387
16
46
183
78
481
Liabilities from bond issue
restructuring
Other liabilities
Other liabilities comprise of liabilities to social security funds and withholding taxes payable
to the Greek State and liabilities from trading activities.
According to the Board, the carrying amount of liabilities from trading activities and other
liabilities approximate their fair value.
4.13. Contingent Liabilities
As more fully described in the relevant Notes to the financial statements, liabilities may arise
in connection with the embedded derivatives in the preferred stock and the bond issue.
Furthermore some of the employees and the Investment Advisor are entitled to incentive fee
which is related to the performance of the company, in accordance with the “priority of
payments”, as described in the documentation for the private placement of the employer
through the issue of € 105 m. of Bonds and € 45 m. of Preferred shares. The contingent
liability will be recognized when the benefits from the company’s participations in venture
capital funds (AKES) will be realized.
4.14. Commitments
30.06.2009
30.06.2008
Amounts in thousands Euro
Commitments for venture
capital funds (AKES)
investments
113.283
62.240
The analysis of the company’s commitments is provided in Note 4.6. of the financial
statements.
5. Events occurring after the 30/06/2009
No significant event that should be disclosed, occurred after the Interim Balance sheet date.
Summary Interim Financial Statements for the period 1/1/2009 – 30/06/2009
22