Private Equity : Annual Report 2020/2021

Annual Report 2020 / 2021

Private Equity Holding AG

Private Equity Holding offers institutional and private investors the opportunity to invest in a broadly diversified private equity portfolio.

The objective of Private Equity Holding is to generate long-term capital growth for its shareholders.

Private Equity Holding's Investment Portfolio is managed by Alpha Associates.

Alpha Associates is an independent private equity, private debt and infrastructure manager and advisor, building and managing globally diversified private market fund portfolios for institutional and private clients.

Annual Report as of March 31, 2021 | 1

Table of Contents
Key Figures . . . . . . . . . . . . . . . . . . . . . . .	. .2
Chairman's Letter for the Financial Year 2020/2021	. .3
Development of Net Asset Value and Share Price. .	. .5
Private Equity Holding Portfolio Overview . . . . . .	. .6
Largest Exposures . . . . . . . . . . . . . . . . . . .	. .7
Selected Direct Investments . . . . . . . . . . . . .	. .9
IFRS Financial Statements
Private Equity Holding AG . . . . . . . . . . . . . . .	. 12
Report of the Statutory Auditor
on the IFRS Financial Statements . . . . . . . . . . .	. 38
Financial Statements
Private Equity Holding AG . . . . . . . . . . . . . . .	. 43
Report of the Statutory Auditor
on the Financial Statements. . . . . . . . . . . . . .	. 51
Corporate Governance . . . . . . . . . . . . . . . .	. 54
Compensation Report . . . . . . . . . . . . . . . . .	. 64
Report of the Statutory Auditor
on the Compensation Report . . . . . . . . . . . . .	. 66
Information for Investors . . . . . . . . . . . . . . .	. 68
Glossary of Terms . . . . . . . . . . . . . . . . . . .	. 69

• | Annual Report as of March 31, 2021

Key Figures for the Financial Year 2020/2021

Share Value	31.03.21	31.03.20	Change	31.03.21	31.03.20	Change
EUR	EUR	in % 1	CHF	CHF	in % 1
Net asset value per share, based on fair values	121.33	88.91	36.5%	134.20	94.26	42.4%
Price per share (PEHN.S)	66.90	48.10	39.1%	74.00	51.00	45.1%
1 Excl. distributions.
				01.04.20-	01.04.19-
Net Profit for the Period				31.03.21	31.03.20	Change
			EUR 1,000	EUR 1,000	in %
Profit for the period				82,780	14,987	452%

Selected Balance Sheet Items (Consolidated)2

31.03.21	31.03.20	Change
EUR 1,000	EUR 1,000	in %

Current assets	4,664	729	540%
Non-current assets	316,557	245,635	29%
Current liabilities	13,152	15,698	(16%)
Non-current liabilities	-	-	n/a
Total equity	308,069	230,666	34%

• Information herein is presented in addition to the IFRS Financial Statements.

Asset Allocation

	Unfunded	Total	Total
Fair Value	Commitments	Exposure 3	Exposure 3
31.03.21	31.03.21	31.03.21	31.03.21
EUR million	EUR million	EUR million	in %

Buyout funds	111.1	33.0	144.1	36%
Venture funds	90.5	19.6	110.1	28%
Special situation funds	52.7	25.6	78.3	20%
Total fund investments	254.3	78.2	332.5	84%
Direct investments and loans	62.3	2.6	64.9	16%
Total direct investments and loans	62.3	2.6	64.9	16%
Total funds, direct investments and loans	316.6	80.8	397.4	100%

• Fair value plus unfunded commitments.

Commitments			Change
31.03.21	31.03.20	in %
Unfunded commitments (EUR million)	80.8	95.5	(15%)
Overcommitment 4	26.8%	41.5%	(35%)
Net current assets / unfunded commitments	(3.2%)	(0.4%)	756%

4 Overcommitment = (unfunded commitments - net current assets) / (non-current assets - non-current liabilities).

Annual Report as of March 31, 2021 | 3

Chairman's Letter for the Financial Year 2020/2021

Dear Shareholders,

Private Equity Holding AG (PEH) reports a comprehensive income of EUR 82.8 million for the financial year 2020/21. As of March 31, 2021, the net asset value per share stood at EUR 121.33 (CHF 134.20), representing an NAV increase of 37.5% (in EUR, 43.4% in CHF)* over the course of the financial year, marking an exceptional performance. The Board of Directors is particularly pleased to report such positive results in the extraordinary and challenging environment that has been prevailing for most of the reporting period.

The financial year started with increased levels of uncertainty, market turmoil in several asset classes and a resulting slowdown in private market activity, especially on the exit side. These dislocations in turn led to an increasing level of credit facility usage for PEH, which influenced the investment activity and liquidity management for the remainder of the year, with a focus on preserving liquidity.

Decelerated Investment Activity

PEH pursued a selective investment approach in the reporting period, completing three fund commitments, three Emerging Manager Program commitments and two direct co-investments.

The new fund commitments were made to Highland Europe IV, a leading growth fund focusing on technology startups in Europe, CIVC Partners VI, a US fund focused on business service companies, and to ALPHA CEE Opportunity V, focusing on special situation secondary and co-investment opportunities in CEE and Russia. Within the Emerging Manager Program, PEH made three commitments to promising fund managers active in venture capital. In addition, PEH completed a direct co-investment in OZON, a fast-growinge-commerce platform and one of the strongest brands on the Russian Internet, where PEH also has an indirect exposure through several fund positions. In November 2020, OZON went public on NYSE and made a significant contribution to PEH's performance in the second half of the financial year, both directly and indirectly.

Positive Share Price Performance

The performance has also been positive looking at the share price which advanced by 47% during the financial year (incl. dividend). Since PEH's share price troughed at CHF 42.60 in July 2020, it increased to CHF 74.00 on March 31, 2021 and, following the ad hoc release of the strong annual performance in early April, gained further momentum to CHF 80.00 at the time of writing. While a 47% year-on-year performance is a strong result, given the almost equally strong increase of the NAV per share, it was not enough for a significant narrowing of the discount between the share price and the NAV. The discount remains on high levels compared to long term averages and with this also on levels we continue to consider to be unjustified given the quality of the portfolio and the associated long-term prospects for NAV growth.

Consequently, towards the end of 2020 and for the remainder of the financial year, PEH increased its share buyback activity.

• Including the dividend payment of CHF 1.00/EUR 0.94 per share paid in July 2020.