18 Provisions
|
in CHF 1,000 |
Employment- related |
Non-income tax-related |
Earn-out- related |
Other |
Total |
|
|
|
|
|
|
|
|
Current provisions |
2,795 |
2,814 |
16,853 |
1,622 |
24,084 |
|
Non-current provisions |
4,240 |
1,985 |
11,778 |
– |
18,003 |
|
|
|
|
|
|
|
|
Total Provision as at 31 December 2021 |
7,035 |
4,799 |
28,631 |
1,622 |
42,087 |
|
|
|
|
|
|
|
|
At 1 January 2021 |
5,986 |
5,313 |
4,596 |
1,056 |
16,951 |
|
Business acquisition |
506 |
– |
– |
– |
506 |
|
Subsequent purchase price allocation adjustment |
1,593 |
– |
– |
– |
1,593 |
|
Increase |
1,628 |
1,038 |
27,644 |
1,151 |
31,461 |
|
Used provisions |
–241 |
– |
–3,033 |
–550 |
–3,824 |
|
Unused amounts released |
–2,457 |
–1,717 |
– |
– |
–4,174 |
|
Currency translation adjustments |
20 |
165 |
–576 |
–35 |
–426 |
|
|
|
|
|
|
|
|
As at 31 December 2021 |
7,035 |
4,799 |
28,631 |
1,622 |
42,087 |
Provisions related to employment and non-income taxes are mainly associated with business acquisitions within the scope of IFRS 3. For the acquisition of COMPAREX group in 2019, risks to an amount of TCHF 14,689 have been identified and classified as contingent liabilities. By the end of the year, there are still provisions to an amount of TCHF 5,906 which are related to employment (TCHF 2,772; prior year: TCHF 4,239) and non-income taxes (TCHF 3,134; prior year: TCHF 4,844). For a significant portion, indemnification assets have been recognized to an amount of TCHF 4,303 (prior year: TCHF 5,591), refer to Note 13 Other receivables and prepaid expenses.
Earn-out-related provisions are associated with contingent consideration arrangements that could result in additional cash payments to the previous owners of the acquired companies. They are presented as provisions if they are contingent on continued employment and thus compensation for services. The amount of the earn-out depends on KPI developments for a contractually-defined period and, where appropriate, a multiplier derived from other variables. They are recognized as personnel expenses during the period of service.
The earn-out calculations are based on the following KPIs:
|
Acquired company |
Earn-out relevant KPI |
Cash outflow expected in year |
|
|
|
|
|
B-Lay |
EBITDA |
2022/ 2023 |
|
BNW |
EBITDA |
2022/ 2023 |
|
Centiq |
Revenue and Gross Profit |
2022/ 2023/ 2024/ 2025/ 2026 |
|
HeleCloud |
Gross Profit |
2022/ 2023/ 2024 |
|
Intelligence Partner |
EBITDA |
2022/ 2023/ 2024 |
|
ITPC |
Gross Profit |
2022/ 2023/ 2024 |
|
ITST |
Gross Profit |
2022/ 2023/ 2024 |
|
makeITnoble |
Gross Profit |
2022/ 2023/ 2024/ 2025 |
|
MassiveR&D |
Gross Profit and EBITDA |
2022 |
|
Optimum |
Gross Profit |
2022/ 2023/ 2024 |
|
RightCloud |
EBITDA |
2023 |
|
SE16N |
Gross Profit |
2022/ 2023/ 2024 |