Comment on the Financial Report 2020

From Mathias Kronig, Administrative Director ad interim and Head of Finance & Controlling and Stephan Schwarz, Head of Controlling

Swiss TPH presents an ordinary result of CHF – 1,153,410 in 2020, compared to CHF – 208,623 in 2019. The operating result from activities amounts to CHF – 393,390, which represents a decrease of CHF 406,750 over the previous year (CHF 13,360). The main reason was the negative impact of COVID-19 on services such as travel advice and vaccination. The financial result reached CHF – 760,020 (CHF – 221,983 in 2019), which was mainly caused by exchange rate losses on USD/CHF.

In 2020, the total operating income of Swiss TPH slightly increased (+1 %) from CHF 90.3 million in 2019 to CHF 91.3 million in 2020. The core funding remained relatively stable at CHF 19.8 million in 2020 (net increase of CHF 0.45 million compared to 2019). CHF 1.8 million were recognised as deferred income for Belo Horizonte, which led the total deferred income for Belo Horizonte over the past 4 years CHF 10 million. The entire amount has been used to create an investment fund for the new headquarters.

The COVID-19 pandemic had also an impact on third party funding. As there were less eligible costs on travel expenses and project activities, the self-managed income from research, education and services in 2020 was CHF 60.8 million, resulting in a decrease of CHF 8.5 million (– 12 %) compared to 2019. Due to less travel activity, travel expenses decreased significantly by CHF 1.5 million (– 58 %), as well as expenses for projects abroad by CHF 4.8 million (– 19 %). However, the decrease mainly affected the fiduciary funds CHF – 5.8 million, while other project activities abroad increased slightly by CHF 1 million.

The majority of local project expenditures, totalling CHF 20.3 million, was spent in Africa (CHF 12.6 million). The spending for projects conducted in Europe (CHF – 3.8 million / – 35 %) and Asia (CHF – 1.2 million / – 59 %) decreased between 2019 and 2020. As in previous years, additional depreciations for building installations were booked in 2020.

These installations will not be used in the new headquarters Belo Horizonte in Allschwil (which will be completed by the end of 2021), and will be fully amortized before having reached the end of their useful life.

Compared to 2020, the balance sheet total increased by 35 % and CHF 22.3 million to CHF 86.4 million. CHF 10 million are due for the creation of an investment fund for assets for Belo Horizonte. CHF 44.5 million are deferred income from third parties funded project activities.

Of the total investments amounts CHF 1,844,021 (CHF 663,028 in 2019), CHF 544,802 are for equipment in construction for the new building, which will be activated in 2021. CHF 510,387 were project investments of which all were depreciated in the month of purchase and CHF 281,612 were intangible assets.

The figures in the Financial Report 2020 could result in a rounding difference.