Hapimag

Business Model

The business model of Hapimag is the following idea: Hapimag shareholders jointly invest in vacation properties and use them then individually. Instead of a dividend to shareholders temporary valid points that entitle to time and place freely chosen use of the company flats (so-called time sharing). Currently, the members are 5300 apartments in 57 resorts in Europe, North Africa and the USA.

Pay for the used dwelling shareholders pro rata extra costs e.g. for final cleaning, water, electricity, garbage, parking, animal husbandry at cost price. With the annual contributions of the annual costs and expenses for the operation of resorts and residences are financed, for example, Management, depreciation or renovations.

Hapimag works for a non-profit philosophy. After cost recovery principle Hapimag calculated the annual fee as well as the local charges according to actual cost without mark-up ( see Annual Report 2010).

There is also the option to purchase a one-time payment limited to five or ten years residency in which the use is limited to a portion of the investments and what time of year.

The company places emphasis on claims to superior quality of the resorts. A quality management system is to ensure the high standard of facilities and customer satisfaction. The offer is heavy -weight in the range of 4 star + by Swiss standards.

Hapimag was on 24 founded in September 1963.

The number of shareholders - and thus timeshare partner - was in 2011, according to annual report 141'437, of which about 120,000 individual shareholders. The company has 57 owned and leased facilities 4 supplied with a total of over 5300 apartments. Hapimag employed 2011 full-time positions expressed in 1403 employees and achieved a turnover of 173.6 million euros and an operating income of 186.4 million euros.

The stock is not publicly traded. A market price for the shares will therefore not be determined. There was loud Terms of A-share repurchase offer of Hapimag, which was limited to a small number of shares (10 % of the new shares sold ). Any further redemption requests are registered in a waiting list. At 31 December 2010 are listed there 19'320 shares. At 31 December 2011 there were 18'109 shares and as of December 2005 or 28'527 pieces. From January 2011 until 31 December 2011, a total of 6235 shares bought back Hapimag, in 2009 there were 4926 copies. The quota in 2013 for the repurchase is already exhausted, Hapimag currently does not buy back shares.

In early July 2007, a Hapimag Holiday shares 21 having significantly altered in comparison to the Terms of A- shares. To avoid confusion of the various terms and conditions, has been called the stock with the revised Terms holiday stock 21 or 21 shares. The new terms also include a termination right that can be exercised only after a holding period of seven years. The actual holding period is, however, up to 9 years since the purchase year is not counted and the notice period is 12 months.

As an alternative to Hapimag shares buy back scheme can a run by Hapimag brokerage event,(last of the mediation price per share was about 2000 - . €) (currently set switching exchange) (not employed by Hapimag) via specialized, independent broker for Hapimag shares, privately sold or passed on to family members, be converted into points of Hapimag products. This eliminates the annual contributions, however, the right of use expires after use of the obtained points. (Convert to points not currently offered)

In general, compared to the shares may be sold at a discount to the official selling price. If shares are sold privately to a new shareholder, Hapimag charged a " consulting fee" of CHF 500.00. This does not apply to transfer of shares within the family. In addition, still fall to the Umschreibegebühr (60 CHF ) and depreciation costs for older stocks (15 CHF / year). According to Hapimag any consulting and Umschreibegebühren are being charged, if the stock is privately or sold,

Although the shares of Hapimag are not listed, but is also directed here, the price determined by supply and demand as well as on the economic value of the company. According to the annual report, the average selling price per share in 2012 amounted to CHF 4900 (previous year 6372 ), while the average repurchase price per share of 2011 CHF 2412 was (year 2843).

The inherent value, i.e. the covered by real assets value, 2011 was CHF 2490 (previous year 2558 ). The " switching price" (= offer one shares the owner to potential customers ) to the Hapimag shares further mediated, in 2011 was an average of 2275 CHF. costs

Per share in 2013, an administrative fee of CHF 340.80 / EUR 285.71 (2011 CHF 327 / EUR 263 ; 2010: CHF 344 / EUR 233; 2009: CHF 339 / EUR 230 ) will be due. The management fee is prescribed in Swiss francs, but can be paid at a conversion price set by Hapimag in Euros. In order to use depending on the season, an average two- bedroom apartment for a week, the years of good points of a stock are required on average. The management fee has risen over the last 10 years in CHF to 21.65 % (for comparison, the average inflation rate in the OECD was 21 %). In euro terms the increase was 47.38 % ( average inflation rate according to the OECD 36%). Furthermore, the addition cost of apartments are to be borne by the users. They are depending on the country for a two- bedroom apartment between 200 € and 300 € per week. These additional costs soared in recent years by up to 15 % per year (e.g. plant St. Michael). Free choice of the target

Since certain times and facilities are very attractive, especially when it comes to requested apartments that not all requests can be met. The average occupancy rate for all plants is over 80 percent. Decay and transfer of points

Unused points expire after five years and 15 months. The transfer / sale of points on other partner was up to 31 December 2009 also limited to 240 points per year. According to the annual report expired in the year 2010 2.040.754 points. As of 1 January 2009, the transfer / purchase points to 60 per share was restricted mainly to the official argument that the shareholders, where the points are not enough to own shares, more shares instead of buying the points easy to buy. By restricting the purchase of points, it is now come to a glut in sales points (e.g. on eBay). The sale price is currently about 2.6 € / point, and thus not even cover the cost of the annual fee. The selling points remain fully.

In 1976, a volunteer -run club ([www://hapimag-ferienclub.info HFA - Hapimag holiday club for shareholders]) was in Vienna as an international German -speaking community of interests and for Hapimag shareholders (s) established. Many years ago, the company merged with the German and Swiss shareholder representatives. Since then, the HFA shareholders is primarily in German territory for all Hapimag active. The club is basically the idea Hapimag positive about it but has taken on the task to control the management and to document problems in the Hapimag system. As a shareholder association he advertises mainly to the participation of shareholders in the General Meeting of Hapimag. For shareholders who are unable to attend it / want, advertises the HFA - Hapimag holiday club for shareholders (HFA Vienna ) to the full transfer of power to exercise voting rights at the annual general meeting in Switzerland. He could perceive 2013 11,200 votes ( proxies ) of more than 5,200 shareholders. The association provides members with background information about Hapimag, critical analysis of the balance sheets and business operations as well as their management. In addition, he brings together the experiences of the shareholders and are through regional meetings the opportunity to exchange views between the members. Basically advertises the HFA Vienna for the preservation of the original HAPIMAG idea of cheap, upscale vacation standards.