SUSTAINABLE PERFORMANCE · processing technology In India atta flour, produced from various wheat...

SUSTAINABLE PERFORMANCE

ANNUAL REPORT 2015

NORTH AMERICA7 Sales offices 3 Manufacturing sites 6 Service stations750 Employees

EUROPE35 Sales offices 10 Manufacturing sites 27 Service stations5,100 Employees

SOUTH ASIA5 Sales offices 1 Manufacturing sites 11 Service stations550 Employees

ASIA21 Sales offices 9 Manufacturing sites 19 Service stations3,500 Employees

MIDDLE EAST & AFRICA12 Sales offices 2 Manufacturing sites 15 Service stations500 Employees

SOUTH AMERICA6 Sales offices 2 Manufacturing sites 12 Service stations400 Employees

Sales offices: 86Manufacturing sites: 27Service stations: 90Employees: ~ 10,800

Global Presence

Turnover (in CHF bn)

Net profit (in CHF m)

EBIT (in CHF m)

EBIT margin in %

Energy consumption per hour of activity (in GJ / h)

2014 2015

Number of work-related injuries (per 100 FTE)

3.4

2.9

Key Figures

2013 2014 2015

2.3 2.3 2.4

Order intake (in CHF bn)

2013 2014 2015

2.42.6

2.5

2013 2014 2015

123 121

143

Equity ratio (in %)

2013 2014 2015

44.6 45.2 45.6

2013 2014 2015

139

6.0 6.27.3

145

177

Return on Net Operating Assets (RONOA) (in %)

2013 2014 2015

17.6 18.1

22.0

2015

15 % 8 % 28 % 16 % 7 % 26 %

by regions 2014

1 North America 15 %2 South America 9 %3 Europe 31 %4 Middle East & Africa 15 %5 South Asia 5 %6 Asia 25 %

Turnover

by business area 2014

1 Grain Logistics 7 %2 Sortex & Rice 9 %3 Grain Milling 31 %4 Value Nutrition 21 %5 Consumer Foods 12 %6 Die Casting 12 %7 Grinding & Dispersion 3 %8 Leybold Optics 5 %

2015

9 % 9 % 29 % 21 % 11 % 12 % 3 % 6 %

1

2

3

4

5

6

7 8

R & D costs (in CHF m)

2014 2015

10999 102

Number of production sites reporting ecological footprint

2013 2014 2015

5

11

17

2013 2014 2015

0.1029 0.09970.0915

2013

1

2

34

5

6

Investing in Best PeopleWe at Bühler believe that the success of our company relies on the performance of our people. Therefore, we continuously invest in the education and training of our global workforce. We want to empower our employees to acquire the right strategic and operational skills and act with cool heads, warm hearts and strong hands.

Striving for LeadershipEngineering our customers’ success and securing a sustainable future for ourselves requires a strong position. We strive for market leadership in every business we are active in. In 2015, we fostered our number one position in the Die Casting business, reporting a record result. This was only possible thanks to a unique product and service portfolio, leading technologies and outstanding quality. We offer our customers maximum productivity resulting in a best return on investment. The same is true for our rice processing business, in which we gained market leadership in 2015 for the first time.

Editorial Bühler Annual Report 2015

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Committed to SustainabilityEvery day, billions of people come into contact with Bühler technologies to cover their basic needs for foods and mobility. With our industrial process technologies and solutions, we contribute significantly to feeding the world’s population, setting the focus on food security and safety. The global production and processing of wheat, maize, rice, pasta, chocolate, and breakfast cereals relies strongly on us. Furthermore, Bühler is a leading solution provider of die casting and surface coating technologies, with an emphasis on automotive and optics. As a leading technology group, Bühler invests every year up to 5 % of its turnover in Research & Development. In 2015, its around 10,800 employees in over 140 countries generated a turnover of CHF 2.4 billion. The family-owned company Bühler is proud of its Swiss roots and feels particularly committed to sustainability.

Highlights 2015 Bühler Annual Report 2015

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January February March

Highlights 2015

Large rice mill for Bangladesh

Bühler receives a contract with a dou-ble-digit million figure from the food cor-poration City Group from Bangladesh and builds one of the most modern, high-performance and largest rice mills in the world. City Group will produce

72 tonnes of rice, 12.5 tonnes of atta flour as well as 8.5 tonnes of red lentils per hour with the plant. The contract is a flagship example of Bühler’s beneficial strategy of offering solutions to custom-ers for the entire value chain.

Success for innovative atta flour processing technology

In India atta flour, produced from various wheat mixtures, is the most important food staple along with rice. The process-ing of wheat into atta flour was previously carried out almost exclusively in com-mercial plants on traditional stone mills,

so-called Chakki mills. These stone mills have a low grinding capacity and incur high maintenance costs. Furthermore, the stone mills no longer meet the hy-giene standards required these days in food production. Bühler developed an industrial process for producing hy-gienic and high-quality atta flour, which achieves the typical taste characteristics. The center of the new atta process is the high compression roller mill, Pesa-Mill. Thanks to its compact construction, one PesaMill replaces up to 20 traditional Chakki mills, consumes up to 10 % less energy and has a higher yield. At the beginning of 2015, demand developed extremely positively. At the same time, several CombiMills, based on the Pesa-Mill, were sold in Bangladesh, the Middle East and North Africa.

Opening of African Milling School in Kenya

The last few years have seen an enor-mous increase in the need for basic foods in Africa due to the growth of its population. In addition, a change in eating habits has led to a continual-ly rising demand for cereal products.

This growing demand is coming up against a dramatic shortage of special-ist workers. Bühler has taken up the challenge and has opened the first-ever training mill in Africa in the Kenyan capital Nairobi. 27 students from nine different African countries began their two-year milling course to become millers. For Bühler, the opening of the milling school in Africa continues a long tradition of education and training, both for its own employees and for its customers, since only those who work with trained millers will be able to fully exploit the potential of their machines and raw materials.


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April May June

Taking the lead in rice processing

Bühler’s close partnership with the leading Thai company Merry Rice suc-cessfully delivered a USD 40 million con-tract to design, install and commission a comprehensive, fully automated rice processing solution handling the intake

of raw material, pre-cleaning, storage, milling and packing. The agreement, featuring the supply of 62 premium SORTEX S UltraVision optical sorters and 52 high-capacity UltraPoly polish-ers, added a further 10,000 tonnes per day capacity to their operation, trans-forming Merry Rice into the largest rice re-processing plant in the world. Bühler has experienced significant growth in the core rice regions, which has helped consolidate it as the overall number 1 supplier of rice plants in the world and an integral partner of the global rice pro-cessing industry.

Trade fair appearance with new energy saving pasta dryer

Bühler presented itself as a global solu-tion partner to the food industry at this year’s Ipack-Ima in Milan, the trade fair for processing and packaging technolo-gy. This year’s booth focused on appli-cation-specific solutions and innovative

process technologies as well as high energy efficiency and food safety. The new Antares Plus roller mill made its world debut at the exhibition. With inte-grated measurement of and control over particle size distribution, this new roller mill delivers a constant optimal grinding effect while simultaneously reducing en-ergy consumption. Such a high level of automation has never been seen before in grain processing. The Ecothermatik long-cut pasta dryer, which Bühler in-troduced for the first time in Milan with a processing capacity of up to 5,500 kilograms per hour, impresses with its high energy efficiency and better envi-ronmental balance. Thanks to in-process heat recovery, Ecothermatik dryers re-quire 40 % less thermal energy. Smart engineering also allows cooling and elec-trical energy savings of 20 % and 10 % respectively.

Innovation: Absolute scrap rate reduced by 2.5 %

At the 13th International Foundry Trade Fair (GIFA) Bühler Die Casting highlight-ed its role as the global solution provider for aluminum high-pressure die casting by presenting several innovations. Data-View, for instance, is a new control con-

cept for Bühler’s two-platen die casting machine Carat. This sophisticated con-cept allows for easy, fast and intuitive op-eration of the machine, resulting in 25 % faster programming. Another highlight is the Ecoline Pro with integrated peripher-als: For the first time, peripherals such as ladler, extractor and sprayer have been fully integrated in the cell. Another novel-ty is SmartVac: This new vacuum system is integrated in the die casting machine. This unprecedented level of integration allows for much tighter process control, resulting in higher productivity, quality and flexibility as well as a reduction of the absolute scrap rate by 2.5 %.


4

July August September

Anniversary: 100 years of vocational training at Bühler

Exactly 100 years ago, Bühler decided to rely on sound vocational training as the basis for its future business success. Today, the company still continuously and farsightedly takes account of on-going changes within the organization,

the economy, education, and society at large. In 2015 the company celebrat-ed its anniversary with several novel-ties. Among those the advancement of the distance-teaching concept called ClassUnlimited, which was launched in 2012 by Bühler and the Vocational School and School of Further Education BZWU Wil-Uzwil. A unique form of decentralized learning has emerged that combines the benefits of classic teaching with the pos-sibilities of the digital media and helps impart the required international mobility to the apprenticeship. A total of 22 ap-prentices are working 2 to 6 months in either China, the United States, South Africa, or the United Kingdom.

Caffè Chicco d’Oro acquires a taste for Bühler

Bühler has won a significant order from Caffè Chicco d’Oro for a complete coffee roasting and grinding line. The integrat-ed Bühler processing solution covers the entire processing chain, starting with the green beans to the end product of

roast and ground coffee. The heart and soul of the coffee processing line is the roasting stage with the InfinityRoast. This roasting equipment converts the intrinsic potential of green beans into the ultimate flavor sensation of superbly roasted cof-fee. The new InfinityRoast features the broadest process flexibility and supe-rior profile control. This will allow Caffè Chicco d’Oro to develop entirely new blends and flavor characteristics for new consumer segments.

Feeding pilgrims

After a construction phase of four years, one of the largest mills to be constructed in one stage had its grand opening in Mecca. In the future, the flour from this mill will feed the pilgrims who come to Mecca every year. As prime contractor,

Bühler was entirely responsible for the plant, which cost CHF 90 million. It is located on a site of almost 1 million square meters and has a daily capacity of 1,200 tonnes. The plant stands out due to its productivity and uptime as well as by producing the highest quality of flour. This is one of 15 mills that Bühler has already built for the Saudi Arabian cus-tomer SAGO (former GSFMO).


5

October November December

Confectionary processes from a single source

Cocoa is the basis for numerous food products that make life sweet. One of them is chocolate. Bühler has become the leader in processing technology for transforming cocoa beans into finished products such as chocolate, pralines and

others. Now, with the acquisition of the German enrobing specialist Hosokawa Bepex, it has also added equipment to its portfolio for making enrobed prod-ucts such as bars, cookies, and cara-mels. The acquired company possesses leading know-how in the areas of mass preparation, molding, extrusion, as well as enrobing and tempering. Together with Hosokawa Bepex, Bühler now of-fers its customers total plant solutions for making chocolate countlines, enrobed articles, and cereal bars. In the field of confectionary processes, Bühler cus-tomers can now benefit from all possible processing options.

Collaborative innovation

Four projects made it to the final in the Innovation Challenge 2014, a yearly Bühler in-house innovation competition, and received the go ahead to implement their idea. In November they presented the progress they had made. Fuelled by

different project acceleration models, the teams succeeded in implementing new business models, with two pro-jects already serving customers in 2015. ChocoBotic was selected as the win-ning project: Major companies become chocolatiers while small enterprises get the chance to industrialize their produc-tion, with their compact, highly flexible moulding plant for the manufacturing of filled chocolate. And the next Innovation Challenge has already started looking for IoT-enabled services. Always under the motto: Creating tomorrow together.

Power your life!

Electric vehicles play a key role in the reduction of CO2 emissions and im-provement of air quality. The battery is a critical criterion for a vehicle’s success. Range, speed, weight and costs: En-ergy storage plays a role in everything.

Lithium-ion batteries offer a high degree of security and quality and are therefore ideal for use in electric vehicles. Bühler has developed a new, continuous pro-duction process for the electrode paste, which is now in use in a first pilot instal-lation for the Chinese customer Lishen. The new process is significantly more cost-effective, as it requires less space, energy and manpower. Furthermore, it produces an improved quality.

Contents Bühler Annual Report 2015

7

Chairman / CEO Statement

Group Report

I Our BusinessOur Core: Engineering customer success

Grains & Food: Safe and healthy food

Advanced Materials: Efficient mobility

Business Areas

II Best PeopleEmployee Portraits: Making a difference

III GovernanceGroup Structure

Board of Directors

Executive Board

Advisory Board of Urs Bühler Innovation Fund

Collaboration Principles

Compliance

Remuneration Report

IV SustainabilitySustainability Report

GRI G4 Content Index

Sustainability at Work

V Financial ReportFinancial Commentary

Business Development

Financial Report

Contents

19

20

22

25

28

30

31

65

66

68

70

72

74

76

78

82

83

96

98

104

106

108

112

8

10

Chairman / CEO Statement Bühler Annual Report 2015

8

Chairman / CEO Statement Bühler Annual Report 2015

9

Important ProgressDear employees, customers and business partners,

2015 has put us through its paces! As the year started full of optimism and with strong growth signals, the abandonment of the Swiss franc-Euro cap in mid-January was the precursor of unexpected challenges. In addition, the global business environment heavily challenged our development: for instance, the Ebola epidemic, political conflicts, falling commodity prices and market slumps such as in South America. 2015 put the sustainability of our company to the test.

We have passed this endurance test! Moreover, we have demonstrated sustainable and positive per-formance with a turnover growth of 3.4 %, a significant improvement in our profitability with an EBIT margin of 7.3 % and RONOA of 22.0 %. Adjusted for currency effects, sales would have risen by 7.1 %. We can be proud of these achievements, which give our company the necessary financial solidity to continue important investments to secure our future.

The essential cornerstones of our orientation have proven successful: Our leading solutions in process technology ensures that our customers receive the best return on investment. Our dense presence across the globe allows us to develop region-specific solutions in close coordination with our customers and to offer high quality and local services. With our open approach to innovation and partnerships we are able to develop new markets together with them. With this orientation, we have seen great success in 2015 and were able to more than offset the fluctuations of currencies and markets.

Our forward-looking financial hedges as well as the short-term measures taken to counteract the strong Swiss franc, have also proven successful – including the working hour flexibility of our Swiss employees, who experienced much solidarity from our global workforce. Being able to respond so quickly and consistently as a company laid the foundation for the remarkable result of 2015. I owe our employees my sincerest thanks.

For the current fiscal year, ongoing challenges can be anticipated. The geopolitical fires remain active. Important areas of the global economy – especially China – are undergoing change. In this situation marked by uncertainty one thing is certain: We will make every effort in 2016 to continue our sustainable corporate development, aiming to grow above the market average and to achieve sustainable profitability within our target range.

Calvin GriederChairman of the Board and Chief Executive Officer

Group Report Bühler Annual Report 2015

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Group Report

Sustainable PerformanceDespite a challenging economic environment,

in 2015 Bühler achieved a sustainable positive result, entering the new fiscal year with a solid base.


11

In 2015, Bühler achieved sustainable positive results, with growth in turnover and substantial improvement in profitability – despite a challenging economic environment. On the Group level, turnover was up by 3.4 % to CHF 2.4 billion. Order intake for the Group was down − 4.3 % to CHF 2.5 billion, while the or-der backlog at the reference date, at CHF 1.5 billion, remained at a high level. Profitability (EBIT) rose from CHF 145 million to CHF 177 million (+ 22.4 %), corresponding to an EBIT mar-gin of 7.3 % (previous year: 6.2 %). Net profit for the Group achieved a plus of 18.0 % to CHF 143 million (previous year: CHF 121 million). RONOA rose from 18.1 % to 22.0 %. The financial position of the company remained strong: With an equity ratio of 45.6 % (previous year 45.2 %), at the change-of-year reference the company is free of bank obligations and has net liquidity available of CHF 392 million.

Plenty of challenges This sustainable performance is to be assessed against a background of a considerable number of challenges during the fiscal year: Market recessions, such as in South America, overcapacities in China, epidemics such as Ebola, and political conflicts. In this context, the company had cancellations of orders that did not find continuous financing on the customer side of around 4 % of total turnover. Sharp drops in raw material prices, such as rice and grain, also put a brake on investments.

One major event was the decision by the Swiss National Bank on January 15 to suspend the exchange rate tie between the Franc and Euro. The devaluation of the Euro, by some 10 %, had a sharp impact on the Bühler cost base, and therefore also on competitiveness. Adjusted for currency effects, Group turn-over was up by 7.1 %, and order intake remained almost stable.

Group Report

With currency adjustments Bühler would have grown by 7.1 %.

Turnover (in CHF bn)

Net profit (in CHF m)

EBIT (in CHF m)

EBIT margin in %

2013 2014 2015

2.3 2.3 2.4

Order intake (in CHF bn)

2013 2014 2015

2.42.6

2.5

2013 2014 2015

123 121

143

2013 2014 2015

139

6.0 6.27.3

145

177

Return on Net Operating Assets (RONOA) (in %)

2013 2014 2015

17.6 18.1

22.0


12

With regard to profitability, the financial securing of current orders and projects proved to be key to sustaining income strength. With an extensive package of actions, which was worked out and set in motion over a matter of weeks togeth-er with the staff representatives, the company reacted to the new situation, starting with measures to boost productivity and secure orders through to raising weekly working hours at the Swiss locations. In addition to this, the restructuring undertak-en at the locations in Madrid and Braunschweig, which were started in 2014, had a positive effect on corporate profits. This resulted in reported corporate profit not only being sustained, but actually increased.

Advanced Materials achieves record resultBoth Bühler businesses, Grains & Food and Advanced Materials, showed positive development in 2015. Advanced Materials proved particularly strong, achieving a record result in every respect. With a clear focus on core markets such as the automobile industry and the sectors of lightweight con-struction and energy efficiency, turnover was up by 6.7 % to CHF 491 million. The Business Area Die Casting provided im-pressive proof of its position as world market leader during the fiscal year, winning major orders such as that from the Chinese manufacturer Wencan. Bühler is the customer’s tech-nology partner in this context, aiming to secure the market for high-quality structural components made of aluminum. The Business Area Leybold Optics completed its turnaround and expanded with a whole range of orders for optical coating sys-tems, scoring success after success in this market. Together with the Chinese battery producer Lishen, Grinding & Disper-sion took into operation a new process for the manufacture of battery slurries, the most important components of these energy storage devices, and so created the preconditions for conquering a new and highly promising field of application. As market leader, Grains & Food succeeded in raising turnover by 4.1 % to CHF 1.9 billion, in part developing its market po-sition even further. After currency adjustment, Grains & Food grew twice as much. The Business Area Grain Logistics was particularly striking, with a plus of 23.8 %, not least thanks to new products for grain conveying. The year was marked by an impressive string of high points: In the vicinity of Mecca, Saudi

2015

15 % 8 % 28 % 16 % 7 % 26 %

by regions 2014

1 North America 15 %2 South America 9 %3 Europe 31 %4 Middle East & Africa 15 %5 South Asia 5 %6 Asia 25 %

Turnover

by business area 2014

1 Grain Logistics 7 %2 Sortex & Rice 9 %3 Grain Milling 31 %4 Value Nutrition 21 %5 Consumer Foods 12 %6 Die Casting 12 %7 Grinding & Dispersion 3 %8 Leybold Optics 5 %

2015

9 % 9 % 29 % 21 % 11 % 12 % 3 % 6 %

1

2

3

4

5

6

7 81

2

34

5

6


13

Arabian customer SAGO (former GSFMO) opened, together with Bühler, one of the world’s largest milling plants to supply pilgrims, and placed another order in the double-digit million bracket. Marine Harvest – Norwegian world market leaders in farm-raised salmon – commissioned a Bühler system for the production of sustained soya-based fish feed. With regard to rice processing, it proved possible for the first time to achieve world market leadership: Some 30 % of the global rice harvest is now refined on systems from Bühler. One contribution to this was a major order from Merry Rice to install one of the highest performing rice processing systems in the world. To satisfy the uninterrupted strong growth in demand for sorting solutions for plastics, the Business Area Sortex & Rice and the US com-pany National Recovery Technologies (NRT) have entered into a strategic agreement. This means that both companies can jointly offer total solutions for the sorting of bottles and flakes. In the coffee market, the Business Area Consumer Foods made a breakthrough with a new roasting system, winning an order for a complete installation from the Swiss premium customer Caffè Chicco d’Oro. To achieve further growth in the choco-late sector, at the end of the year Bühler acquired Hosokawa Bepex. The German company, previously Japanese-owned, specializes in industrial solutions for the production of choco-late-coated and filled confectionary. While 60 % of chocolate mass worldwide is produced on Bühler machines, this market segment, with vigorous growth, was not yet part of the com-pany portfolio.

Number of regional service stations

2013 2014 2015

68

80

90

Regional supply

Production hours by regions 2015

1 North America 7 %2 South America 5 %3 Europe 36 %4 Middle East & Africa 5 %5 Asia 47 %

5

12

3

4

The company reacted to the new situation, starting with measures to boost productivity and secure orders through to raising weekly working hours at the Swiss locations.


14

Growth in North AmericaThe broad regional setting was again an important factor for success in 2015 for Bühler, with a number of shifts in focus. Expectations for the markets in South America were not ful-filled, in particular in Brazil. The recession following a failed economic policy had an impact on the markets of interest to Bühler as well. In particular, financing for investment goods is at present hard to come by. Turnover in Europe was also slightly down, in particular due to the market slump in Eastern Europe. Once again, Asia has proved the powerhouse for the company, even if China has temporarily slipped in its role as the driving force, and turnover here for the first time showed only single-digit growth. The reason for this lies in overcapacities in the industri-al milling sector, which are now leading to a temporary market consolidation. The Middle East & Africa have gained ground, where major projects for milling and the further expansion of the service business have been at the focus of development. Four new service stations have been put into operation, as well as the new milling training facility in Nairobi, the African Milling School, opened. And business development in the regions of South East Asia and North America has also developed very satis-factorily, where Bühler has been focusing with excellent timing on niche markets of speciality milling or brewing. Overall, the regional split for Bühler in 2015 therefore looks as follows: Europe comes to a turnover proportion of 28 %, Asia 26 %, Middle East & Africa 16 %, North America 15 %, South America 8 % and South Asia 7 %.

Customer serviceBusiness development in the Customer Service sector was not entirely satisfactory, which remained essentially stable in relation to the previous year and achieved CHF 541 million, corresponding to a turnover proportion of 22.4 % (previous year: 23.5 %). After currency adjustments, service business grew by 3.1 %. While North America, China, and Central Eur-asia showed a strong increase, South America and Europe showed reduced volumes. In order to make further growth possible, Bühler opened 10 new service stations, which raises the global presence to 90.

Bühler has also developed new service business models, which go beyond traditional business with spare parts and maintenance orders, and concentrate on allowing customers to achieve even higher efficiency and quality through advanced maintenance and online access.

Solid manufacturingBühler has streamlined its manufacturing and adjusted its ca-pacities in Europe and China. Besides the shift of all production from Spain to Germany, the strong Swiss Franc also enhanced a further shift of our manufacturing in Switzerland to our manu-facturing hub in Žamberk (Czech Republic). We made the necessary investments in Žamberk to build up a most modern production site. In China we brought our capacities in line with the lower volumes. Bühler is strongly committed to work on an in-house professional value chain in order to secure high functionality, perfect quality and fast delivery of its equipment and services.

2015 saw a fundamental improvement in the implementation of our sustain-ability program: Our goals have been completely revised and aligned with the guidelines of the Fourth Generation of the Global Reporting Initiative (GRI G4), the leading international standard. We measure the progress we are making with regard to our ecological, social, and economic sustainability promises on the basis of clearly defined and quantifiable indicators. For the year under review, all Bühler production sites have submitted their reports according to GRI G4. This for the first time ever allows Group-wide verification of the success of our sustain-ability efforts. Operationally we improved the environmental performance of our global sites.

But a large share of the burden on the environment is created by the energy consumed by our equipment at cus-tomers’ locations. By systematically de-veloping new technologies and products with our customers’ specific situation in mind, and by setting a standard for re-source-efficient products, we contribute to creating sustainable value chains.

Here are a few examples:

Technologies that are gentle on re-sources have enabled Bühler to become the market leader in commercial-scale rice processing. Our process solutions have maximized the rice yield at a con-sistently high quality level while cutting energy usage by as much as 20 %.

Our die casting, dispersion, and sur-face coating technologies contribute to more sustainable mobility and improve the energy efficiency of buildings.

One of the main goals of our Research & Development activities is to improve food safety. The focus of this effort is on sanitary plant and equipment design. Our combination of optical, mechanical, and air-based sorting approaches pro-duces outstanding results.

Our technologies for gentle process-ing and highly selective sorting (Sortex technology) of rice and grain help prevent food wastage. Our energy-efficient PAK machine for high-rate coating of food packaging (Bühler Leybold Optics) also improves the shelf life of foods.

Breakthrough in sustainability


15

High investments in Research & DevelopmentThe foundation for sustained business development for Bühler rests on cutting-edge technical process solutions. Bühler puts the guiding motto “Engineering Customer Success” into prac-tice; the company stands apart in all its sectors as a driving force for innovation (see infobox on page 16 and sustainability report from page 82). This is why in 2015 Bühler again invested substantial sums amounting to CHF 102 million in Research & Development (previous year: CHF 99 million), and overall launched more than 45 new products and services (Grains & Food: 30, Advanced Materials: 15). Just how much invest-ments influence commercial success can be seen, for example, by a new process for producing atta flour, which is particularly popular in India. About a year ago Bühler introduced an indus-trial solution to the market here for the first time, which in 2015 sold more than 10 times. Bühler achieved an important milestone in China with the man-ufacturing of electrode slurries, the most important component of lithium-ion batteries. Given the anticipated demand for elec-tric vehicles, capacities are being increased worldwide, on a grand scale. For three years, the Business Area Grinding & Dispersion has been working closely with the battery manu-facturer Lishen to establish a new process: Instead of mixing the slurries batch by batch from the raw materials in mixing containers, they are now dispersed continuously in an extruder. Experiments at the Bühler battery laboratory in Wuxi show that the new process produces much less waste and can create higher quality of the end product. The experiments are now sufficiently advanced that Bühler has commissioned a pilot plant at the Lishen factory in Tianjin.

This example in particular shows just how much innovation and sustainability go hand in hand at Bühler, and create a symbiotic effect. On the one hand, such innovations strengthen eco-nomic sustainability, which enables Bühler to break into new application fields, and, on the other, such technology promotes ecological sustainability, with less waste and better general conditions for electromobility.

Breakthrough in sustainability reportingThe sustainability report from Bühler is in alignment with the guidelines of the “Global Reporting Initiative” (GRI), today’s in-ternationally leading standard. The structure and content of this report in 2015 for the first time accorded with the GRI fourth-generation provisions (GRI G4). This step to GRI G4 called for an in-depth analysis of the economic, ecological, and social sustainability aims of relevance to Bühler and its stake-holders, which are in line with Bühler’s long-term corporate strategy. We measure our progress on the basis of 37 spe-cific and measurable performance indicators and targets. For the reporting year 2015, all Bühler production locations are reporting in accordance with GRI G4. For the first time, this allows for a Group-wide overview of success with regard to our sustainability aims (see sustainability report from page 82).

What characterizes all our innovations is the fact that improved environmental performance is associated with reduced costs and increased productivity at cus-tomers’ sites. We firmly believe that with-out economic sustainability, no real eco-logical sustainability is possible.

But neither would be possible without motivated and carefully trained employ-ees. Social sustainability therefore must always cover training and continuing education of our workforce at all levels. Bühler can look back as only very few companies can on a longtime track re-cord as a trainer – to be exact: 100 years of experience in vocational training. Since 1915, Bühler has trained over 7,500 spe-cialists in Switzerland, and more than 1,000 former apprentices are now em-ployed in the organization. In 2015, a

class outside Switzerland successfully completed its vocational training course – at Bühler Minneapolis.

But here, too, the same rule applies as everywhere else: Bühler’s commitment to vocational training also has sound business reasons, for the investment in future specialist and management staff will eventually produce a sustainable payoff.


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Sustainability was also the motive for two important person-nel decisions which Bühler announced in the course of the business year. It was made known well in advance that, as of July 1, 2016, Stefan Scheiber will be taking over as successor to Calvin Grieder as Bühler CEO. Calvin Grieder, who has been in office for 15 years, will then be concentrating on his position as President of the Board of Directors. Stefan Scheiber under-took business studies at the College for Applied Sciences of St. Gallen, advanced training at the IMD in Lausanne and has been with Bühler since 1988. In his 25-year career with Bühler he has managed a range of different sales and production organizations in Kenya, South Africa, and Germany, having lived and worked abroad for a total of 15 years. In 2009 he took over the Food Processing division, and in 2014 the entire Grains & Food business at Bühler. Dipak Mane has been a member of the personnel represen-tation organization for years, and has accordingly been ap-pointed as a member of the extended Executive Board. Dipak Mane completed his studies in Chemical Engineering at the Indian Institute of Technology, as well as advanced training at the University of Mumbai and at IMD in Lausanne. In 1992 he joined Bühler as an engineer in the rice milling sector, being responsible from 2010 for the region of South Asia, a position he has now left.

Employees A highlight in 2015 was the celebration of the 100 years of Bühler vocational training, drawing continuous interest from business and politics in Switzerland and abroad. Since the start of the vocational training, over 7,500 apprentices have completed their studies and 1,000 continue to work in the company today. In 2015, Bühler counted 600 apprentices worldwide. Of the 86 who finished their training in Switzerland in 2015, 66 continued their career at Bühler. Over the years Bühler managed to keep this rate at an average of around 70 %. Overall, the company counts around 10,800 employ-ees (previous year: 10,600). This increase is mainly due to the acquisition of Hosokawa Bepex and growth in South East Asia. The positive annual result was only possible due to the professionalism, passion and flexibility of Bühler’s employees (see portraits from page 30). The company owes all employees a large vote of thanks.

OutlookIn 2015 Bühler has again proved that the company can achieve a sustained positive performance even under difficult conditions. Regardless of the fluctuations presently taking place, Bühler is well-positioned with its sectors of business on global growth markets – the processing of basic foods and ad-vanced materials. In this context, the Bühler business model is based on an intrinsic sustainability, such as reducing food loss, ensuring food safety, and cutting CO2 emissions. The currently active megatrends, such as world population growth, increas-ing urbanization, and rising environmental awareness, are all

In 2015 again, Bühler invested 4 % of its turnover in Research & Development. In this, Bühler relies on an open innovation management approach to efficiently tap and network the knowledge of employ-ees, universities, customers, suppliers, and other partners. In order to take maximum advantage of this modern approach, Research & Development are placed within the domain of the Executive Board. At the same time, a high-ranking Innovation Advisory Board ensures that key technologies such as 3D printing or the Internet of Things will develop their immense potential throughout the organization.

Bühler regularly promotes the develop-ment of entrepreneurial ideas, for exam-ple by organizing innovation contests. In the Innovation Challenge 2014, four

teams were nominated as winners. In 2015, they all worked intensely on putting their business ideas to practice, coached by an expert sponsor from the Execu-tive Board. The four ideas – a compact chocolate moulding machine, a new animal feed mixing process, an online spare parts platform, and a food safety validation service – will likely be launched in 2016.

Collaboration with universities and aca-demic partners is another high priority. For instance, last year Bühler intensified its cooperation with the Swiss Feder-al Institute of Technology in Lausanne (EPFL). Since March 2015, the company has operated an innovation satellite at the base of the EPFL in order to identify promising research projects and to im-prove the exchange of knowledge. Also

in March, Bühler entered a partnership with MassChallenge, an international startup accelerator. Its purpose is to promote entrepreneurship in industries in Switzerland that are relevant to Bühler. In April, Bühler Uzwil also hosted the “9th European PhD Workshop on Food Engineering and Technology”. At this ac-ademic conference, doctoral candidates from leading universities presented the results of their research projects, for in-stance in the field of food technology.

In 2015, Bühler once again launched trend-setting product innovations. One particular highlight was the Antares Plus roller mill of Bühler Grain Milling. Its inte-grated system for online measurement and automatic control of the particle size distribution enables it to produce an op-timal grinding result. In the price-sensi-

Adding value through open innovation


17

tive grain milling industry, this develop-ment allows a more consistent product quality and higher yield to be obtained while at the same time reducing energy consumption. It is thus yet another tes-tament to the technology leadership of Bühler in the field of grain processing. Bühler Consumer Foods, on the oth-er hand, launched the SmartChoc and RoastMaster solutions for producing compound chocolate and for roasting coffee. They are addressed primarily to small processors in emerging markets in Asia. Among other innovations, Bühler Sortex & Rice rolled out high-resolution InGaAs cameras for its sorting systems. Thanks to the doubling of their resolution, they are capable of detecting and sepa-rating even smaller foreign particles than before. In addition, the new Bio Vision sorting process selectively addresses

the needs of almond and nut processors by allowing efficient removal of the shells. Bühler Value Nutrition optimized its ex-trusion technology for aquafeed produc-tion. Since it also allows vegetable raw materials to be processed into feed pel-lets, it increases the sustainability of fish breeding operations.

Bühler Grinding & Dispersion entered the battery market with its new continuous process for manufacturing electrode slurries – a key component of lithium-ion accumulators. The process, which is based on extrusion technology, slashes the reject rate and cuts the capital in-vestment cost. Another trend-setter was the launch of SmartVac by Bühler Die Casting, a vacuum system that is seam-lessly integrated in die casting machines. Thanks to the resulting improvement of

process control, it among other things prevents contamination of the cast com-ponents by gases. This reduces the re-ject rates and increases manufacturers’ productivity. Finally, a highlight at Bühler Leybold Optics was the breakthrough with new applications for its well estab-lished Helios family of production lines for coating optical components.

Bühler continues to invest substantially in Research & Devel- opment and launched more than 45 new products and services in 2015.

in support of the excellent strategic placement of the Group. Launching from leading process technologies and solutions, Bühler sees high growth potential in neighboring markets, such as bakery & ingredients, feed, and the battery market. This is how Bühler will continue to ensure in the future that its suc-cessful development as a globally active independent Swiss family company can carry on for a very long time to come.

For 2016 the company is expecting an ongoing challenging global economic and political environment. Nevertheless, Bühler aims to continue its growth above the market average in a corridor of 4 – 5 % and to achieve a profitability in the range of 8 – 10 %. To achieve this aim, the Group will continue to optimize its operational excellence and costs base, investing in leading technologies and process solutions, as well as ex-panding and extending its regional presence still further.

Our BusinessI

Our Core: Engineering customer success

Grains & Food: Safe and healthy food

Advanced Materials: Efficient mobility

Business Areas

Our Business Bühler Annual Report 2015

20

Today, Bühler is a globally active solutions provider for the industrial manufacturing of food and advanced materials. The aim is to play a role in the success of our customers by provid-ing sustainable process solutions and leading technologies. Our expectation is that our customers achieve the best ROI with our solutions.

That is why Bühler’s range extends far beyond machines and installations. The worldwide solutions portfolio contains en-gineering, application development, manufacturing, services and training. No other provider covers the whole value chain like Bühler. The customers benefit from a higher level of effi-ciency, productivity and quality – and the opportunity to tap into new markets.

Our CoreEngineering customer success

Bühler positions itself as an industrial solutions provider to engineer customer success. This means, offering our customers the best return on investment; services along the entire lifecycle of our equipment to improve operations; and technology support in the development of solutions in order to strengthen customers’ differentiation.

In the past year, Bühler has invested in the expansion of its solutions expertise and service capacities and now offers an extensive portfolio.

Analysis. Bühler has highly qualified experts to analyze fundamental process sequences. What exactly happens to a grain kernel when it goes through the roller mill? How does a substance change morphologically as it passes through the Cenomic agitated bead mill in the Business Area Grinding & Dispersion? Does it really comminute, or are the existing individual components simply pulled apart? Bühler has the essential equipment to gain the necessary knowledge together with its customers, and to develop products and services accordingly.

Product development. Bühler opens its application cen-ters for customers, in order to develop and test new machine concepts, formulas, and end products together. In China, for

Machine and equipment

BühlerReturn on investment

Process

Lifecycle services

End product Customer

Solutions development

Intelligence based on big data analytics

Sustainable processing solutions

Engineer customer success


21

instance, Bühler is supporting local chocolate manufacturers with a particular laboratory. Here, more than 30 local experts are joining in to help develop confectionery typical of the country and the necessary production installations for this. In the new food laboratory in the state of Minnesota, USA, customers can try out new foods and, by doing so, carry out attempts at a complete processing line.

Process expertise. In order to ensure the highest possible standards in food safety, Bühler has developed corresponding concepts and is consulting customers in their practical imple-mentation. The Business Area Leybold Optics offers the nec-essary process expertise in addition to their vacuum coating machines, in order to manufacture heat insulating architectural glasses or optical filters. Together with the users, these formu-las are then tailored to the specific application.

Engineering. Bühler has a comprehensive portfolio of ma-chines and components, in order to illustrate the entire value chain, for instance in grain or chocolate processing. From this, Bühler engineers develop a plant solution for mills, animal feed manufacturing or chocolate production, which are optimized for the needs of the individual customers.

Manufacturing and installation. We are committed to strong local manufacturing centers and installation experts to offer our customers fast logistics. Furthermore, with our good in-house capabilities along the value chain, we are able to guarantee excellent functionalities and quality.

Maintenance. In the past years Bühler has developed a complete range of services for maintenance and servicing for the machines and plants. This ensures optimal operation and less downtime. Meanwhile, Bühler has a global network of 90 service stations, which ensure close customer care.

Education and training. The numerous training courses on offer are exceptional, in order to qualify customers as well as Bühler’s own employees, so that they can make the most of the opportunities the high-tech aggregate has to offer. Entire business areas have developed relevant ranges for their customers.

Professional installation increases productivity.


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Thanks to its worldwide service capacities and application centers, in which local solutions are produced, Bühler is highly appreciated as a partner of the food industry. Now the Group is advancing with aquafeed production solutions and pulses processing plants into new growth markets.

The Bühler business Grains & Food is outstandingly positioned in the food industry. For example, 65 % of all wheat is milled using grinding technology that is supplied by Bühler. Bühler also makes an essential contribution to corn (maize) and rice processing. With its rice mills and sorting systems, the com-pany covers some 30 % of all global rice production. And in the grain processing industry, volumes are stupendous: About 2,500 million tonnes of corn (maize), rice, and wheat are har-vested and processed every year. For 4 billion people, wheat is the most important staple food. Another 3 billion live primarily on rice.

Bühler is a global player not only in the field of such basic foods. Its market share in other applications is also impres-sive: 35 % of all breakfast cereals and 40 % of all industrially produced pasta are made on Bühler plants and equipment. Last but not least, Bühler processing lines produce 60 % of all chocolate goods.

Bühler is the technology leaderThe successful market position of Bühler with its rich tradition is attributable to a number of factors. On the one hand, Bühler possesses proven technology platforms that it has steadily refined over the decades. In grain processing, for instance, the company’s grinding technology ensures gentle processing of the raw materials while also boasting high energy efficiency and a consistently high yield of top-quality end product. Re-

gardless of whether wheat, corn (maize), rye, spelt, or oats is involved, Bühler can offer a suitable processing solution for any application. Its offerings comprise everything from stand-alone machines to integrated total production lines. They cover a large portion of the value chain – from reception, drying, cleaning, and storage of the harvested crops to grinding of the raw materials and packaging of the finished flours or semolina.

Another example of the technological leadership of Bühler is optical sorting. This essentially means separating the ac-ceptable product from the substandard product and foreign matter. Using special-purpose cameras such as semiconduc-tor-based InGaAs cameras, such systems are capable of iden-tifying even minute differences in color that are not visible to the human eye. One of the most frequent fields of application of this technology is rice sorting. Other applications include, for example, processing of grain, nuts, or coffee. Some 25,000 sorting systems have to date been installed at customers’ sites around the world. Bühler is also a leader when it comes to extrusion and drying processes. Extrusion processes are ap-plied, among other things, to make pasta as well as breakfast cereals, snack foods, or animal feed pellets.

Global service and training capacitiesCutting-edge process technology alone, however, is worthless. True added value is only generated when it is supplemented with competent services, sound training and education of-ferings. With its global network of 90 service stations in all continents, Bühler is in a position to maintain customer pro-duction systems with high efficiency and to ensure maximum productivity. Just as important is training and engineering, for only qualified staff can get the most out of these high-tech production plants. The most recent example of the global

Grains & FoodSafe and healthy food

Technologies from Bühler business Grains & Food substantially contribute to supplying a growing global population with staple foods such as corn (maize), rice, or wheat – and it is also a leader in pasta and chocolate production.


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training initiative of Bühler is the African Milling School: In this specialized grain milling school in Kenya, which opened in the spring of 2015, African grain millers receive sound training based on high Swiss quality standards.

Bühler has therefore long been much more than a mere machine-builder. The company evolved a long time ago into a global solution provider of “low-moisture food and feed” with its training, consulting, and engineering services and its analy-tical laboratories and application centers. This is supplemented with unique know-how in the area of food and feed safety: Bühler supports its customers in complying with today’s strin-gent food safety regulations and in meeting the ever more rigorous food quality needs of consumers – for example by efficient separation of foreign matter from packaged food prod-ucts. Furthermore, new plants and equipment are systemati-cally developed on the basis of the “Hygienic Design” principle. It enables the zones in contact with the product to be easily and efficiently cleaned during operation and contamination by foreign matter or to prevent micro-organisms.

Global solutions for growing food quality requirementsAs the market leader, Bühler is prepared to coach players in the food industry in coping with future challenges. And in-deed, the industry faces a number of tests: On the one hand, the global population is growing relentlessly. In July 2015, as many as 7.3 billion humans populated the planet. By 2050, this number is projected to rise to almost 9 billion. All these people need high-quality and safe basic foods, and Bühler is determined to make a significant contribution to this end also in the future. Moreover, as many as half of all people today live in cities, and this urbanization stands to continue. Especially in the emerging countries of Asia, a new middle

Fish farm of Marine Harvest: Production of sustained soya-based fish food.


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class is arising. This trend is increasing the demand for high-er-quality processed foods, and convenience is also becom-ing more important.

The Bühler business Grains & Food stands to benefit from these developments in the next few years. For example, de-spite the progress of globalization, a clear trend exists to-ward using local raw materials and products. Today, Bühler operates four main application centers in Switzerland, India, the United States, and China. In these innovation laboratories, Bühler specialists team up with customers to develop pro-cessing solutions and products matched to local raw materials and tastes. This has produced, among other things, solutions for making Indian atta flour based on whole-grain flour or Mex-ican tortilla flour. These centers also develop systems that are specifically tailored to needs existing in individual markets – for instance production solutions that are particularly fit for processing small batches of chocolate or coffee roasters for small businesses aiming to enter the coffee production market.

Pulses and aquaculture are growth marketsOne of the biggest future challenges facing us is how to supply the growing global population with proteins. Great hopes are being placed, among other products, in pulses such as beans or lentils: Beside being healthy, they are also fully adequate meat substitutes thanks to their high protein content. Bühler has specifically developed a hulling mill for pulses which al-lows various raw commodities to be processed in an efficient, hygienic, and energy-saving manner.

Another agricultural segment showing sharp growth is aqua-culture: Because fish assimilate feed much more efficiently than land animals, they are becoming increasingly significant as protein suppliers. Bühler is addressing this growth market with innovative production solutions for making feed pellets. This enables salmon feed with specific sinking properties to be manufactured. Another benefit is that flexible control of the Bühler extrusion process allows also vegetable raw materi-als such as corn (maize) or soya to be efficiently processed. Because it requires less fishmeal and fish oil, this technology helps increase the sustainability of aquaculture.

Antares Plus: Optimal quality and efficiency by integrated online measurement and automatic control.


25

Advanced MaterialsEfficient mobility

Lower carbon emissions, fiercer competition, new technologies: The global automotive industry faces numerous challenges. For Bühler, these trends mean new business opportunities. Even today, the company with its market share of about 25 % of all aluminum die casting is a relevant equipment provider to the car-making industry. Now Bühler Group is entering the electromobility market with battery manufacturing technologies.

Aluminum engine blocks and structural components, head-light and tail light reflectors, electrode materials for lithium-ion batteries, paints and protective lacquers, shaded windows, chrome-plated interior parts and cameras for driver-assistance systems: The Advanced Materials business of Bühler is a rel-evant equipment provider to the world’s automotive industry, offering innovative technologies with an optimized carbon foot-print for ensuring safe and comfortable mobility.

The automobile industry is a growth marketThe increase in populations and prosperity in emerging coun-tries is boosting demand for cars. In 2015, some 88 million units light vehicles were manufactured across the globe. By 2021, annual output is expected to rise to as many as 113 million units. This translates into an annual increase of 4 %, with China, South East Asia, and India accounting for most of this growth. It is especially in these markets that a rising num-ber of people are now making the dream of owning their own cars come true. In 2009, China displaced the United States as the world’s largest automotive market. But the sharp growth of the automobile industry is also associated with challenges. For example, transport accounts for 13 % of all greenhouse gas emissions and 75 % is attributable to road traffic. As car production increases, so does the need for efficient and clean mobility.

Lightweight designs reduce carbon emissionsThe key to cutting fuel consumption – and therefore also carbon emissions – is lightweight car design. Engine blocks, structural components such as shock towers or cross-mem-bers, as well as oil pans or transmission housing components are increasingly being made of light alloys such as aluminum instead of steel or cast iron. A modern-day car on average

100 = Current regulations are around 100 g CO2 per km by 202510 = Necessary to comply with the Kyoto Protocol

(less than 2°C warming)

Regulations on CO2 fleet emissionsTo meet the CO2 objectives of the Kyoto Protocol, current regulations from China, Japan, the USA and the EU have to be tightened by a factor 10 or more.

20502015 2025

200

150

100

40

10


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incorporates 150 kilograms of aluminum. By the year 2025, this figure is expected to rise to 250 kilograms. This trend benefits the Business Area Die Casting of Bühler as a leading global provider of die casting technology for the automotive industry. 25 % of all engine blocks are manufactured on Bühler die cast-ing machines. One of the keys to this success is the complete portfolio of solutions, ranging from low to high locking force machines. In addition, the geographical presence of Bühler extends across Europe, the United States, and China, making Bühler the sole provider with production capacities in all three major markets of the global car-making industry.

Lithium-ion batteries for electric vehiclesAnother long-term mobility trend is electric vehicles: The Inter-national Energy Agency (IEA) estimates that of the 120 million new cars sold in 2030, every other one will be powered by an electric motor.

Hybrid or electric vehicles require a battery as an internal ener-gy storage device. The next few years are therefore expected to see a massive expansion of global production capacities for lithium-ion batteries. This is a growth market in which the Business Area Grinding & Dispersion of Bühler operates:

Increased productivity thanks to Bühler technology.


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On the basis of the proven extrusion process technology, it has developed a solution for producing electrode slurries. Their quality has a direct impact on the performance of the storage cells. This allows battery-makers to boost their pro-ductivity and become more efficient in a competitive market. Moreover, this continuous manufacturing process is charac-terized by its low capital investment cost.

Protective coatings increase the lifecycle of carsThe wet-grinding and dispersion capabilities of Bühler are also in high demand in the automobile industry in other areas beside battery production. Thus, the Business Area Grinding & Dispersion also offers solutions for producing high-grade vehicle coatings – ranging from primers and top coats to func-tional coatings for protecting cars against corrosion or impacts from stones. Other applications include “glass ink” (paint with integrated UV protection properties for the frame area of wind-shields), “screen ink” (pigments for producing colored plas-tics for use in various interior components), or “color filters” (for pixel coloration of LCD displays such as those used in navigation systems). Bühler also offers solutions for making conductive metal pastes and ceramic materials for onboard electronics. Last but not least, high-grade lubricants are pro-duced by wet-grinding technology, which increase the service life of engines.

Headlight reflectors and advanced driver assistance systems (ADAS) enhance safetyIn present-day cars, safety and comfort requirements are also on the rise. The high-vacuum thin-film coating technology of the Business Area Leybold Optics, for instance, is used in the architectural glass industry as well as for metalizing headlight plastic components. 50 % of all passenger cars worldwide are equipped with headlight and tail light reflectors that have been coated with Bühler equipment. These systems are also used for chromium-plating plastic styling components such as trim strips, indicating instruments, door handles, or radiator grilles to give them a high-quality appearance. Another trend-setting application is the coating of head-up displays, which project information on routes directly onto the windshield. Today’s cars are also increasingly equipped with advanced driver assistance systems (ADAS), which make it easier to park them, to drive at nighttime or to enable future self-driving. Bühler possesses vast experience in the field of high-precision optics, provid-ing solutions for coating the infrared cameras of night-vision assistance systems.

The technologies of Leybold Optics are the first choice for the architectural glass industry.


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Bühler Grain Logistics offers storage solutions, machinery and com-ponents throughout the entire food value chain – from an agricultural product’s reception through to the final stages of processing. Whether it’s a silo installation for harvesting purposes, a plant for grain trade, or a storage solution for the processing industry: Grain Logistics is a competent global partner providing individualized on-site customer service from conception to startup. With its knowledge and services, Grain Logistics sees to it that post-harvest losses, which are still oc-curring at an immense rate globally, are further reduced and that fewer commodities go to waste. Furthermore, with 75 % of all malt produced in plants provided by Bühler, Grain Logistics is the world-wide leading supplier of individually tailored malting systems.

Bühler Grain Milling makes a significant contribution to feeding the global population. About 65 % of the wheat milled around the world is processed on Bühler grain mills. Grain Milling offers its customers state-of-the-art technology and innovative engineering for processing wheat, corn (maize), rye, oats, barley, millet & sorghum, buckwheat, and soya. At the same time, industrial-scale breweries and bakeries are supported by innovative plant concepts for producing crushed malt or dough and sponges. The business area covers the entire value chain from consulting and engineering to installation and start-up, in-cluding maintenance as well as training and further education. Bühler solutions ensure gentle handling of the valuable raw materials, top end product quality and yield, and optimized operating costs.

Grains & Food Business Areas

Bühler Sortex & Rice significantly contributes to global rice and pulses nutrition and additionally ensures and safeguards food safety with its unique proprietary sorting technology. As the global benchmark in op-tical sorting, SORTEX advanced technology ensures that many crops are sorted with exceptional accuracy and speed. Defective grains and foreign materials are rejected, while maximizing speed and yield and minimizing the loss of good grains. The business area’s reputation for research and technology in the processing of rice byproducts helps customers to maximize value from every grain. In pulses, sesame, and spices processing, its approach of collaborative innovation aims to develop comprehensive processing solutions along the pulses value chain from farm to plate. With landmark rice mill installations in every major rice region, a worldwide sorter base of over 25,000 machines installed and extensive capabilities including consultation, project management, installation, and startups, Sortex & Rice is the technol-ogy partner of choice for processors who value excellence.

Bühler Value Nutrition combines innovative process solutions for the food and animal feed industries and pays particular attention to the ever-increasing requirements placed on valuable human and animal nutrition. As a result, Value Nutrition is the global solution partner for producers of food and animal feed: from pasta and noodles, cereals, and snacks to pet food and feed for fish, cattle, and poultry. The com-pany’s contribution in this area is substantial: Around 40 % of global pasta production takes place on machines made by Bühler. It is also responsible for 35 % of the world’s cereals and 20 % of its feedstuff. The core technologies of Value Nutrition relate to the areas of pellet-izing, extrusion and drying, all ingrained in comprehensive expertise throughout the entire process. This allows Bühler to time and again set international standards in various areas, including energy efficiency in the production process.

Grain Logistics

Bühler Consumer Foods with its market share of 60 % substantially contributes to the processing and production of cocoa, chocolate, coffee, and nuts. The business area sets standards in chocolate pro-duction, be it conventional bar products or enrobed and filled goods such as bars, cookies, caramels, or other confectionary. This business area is committed to the continuous development of new innovative technologies. It is a complete provider of products and services to the confectionary industry, offering state-of-the-art production systems for any process stage. Consumer Foods stands for energy-efficient processes with maximum raw material yield and top product quality.

Consumer Foods

Grain Milling

Sortex & Rice Value Nutrition


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In the production of paints and inks, printed products, solar modules, or batteries for electric cars, customers rely on equipment and solutions from Bühler Grinding & Dispersion. 60 % of all offset inks are produced on Bühler systems. Bühler Grinding & Dispersion offers extensive ex-pertise and supplies customized systems for complex processes. This includes the rapidly expanding lithium-ion battery market, where Bühler technologies are used for nanogrinding the raw materials and for man-ufacturing the electrode slurries. Its wet-grinding technology is also used for various products for the chemical industry. When it comes to drying, grinding, and sifting applications, the leading producers of superabsorbers – which are contained in almost all disposable diapers – also rely on Bühler process technology. Thanks to its continuous development efforts, the business area enables customers to make better products and to lead the industry with their market innovations.

Advanced Materials Business Areas

Engine blocks, structural components such as shock towers or cross-members, as well as oil pans or power train components are increasingly being made from light metals such as aluminum, as light-weight designs reduce carbon emissions. Bühler Die Casting is the global leader in the field of lightweight aluminum solutions for the au-tomotive industry. 50 % of all new passenger cars around the world are equipped with die cast components manufactured on Bühler machines. Crucial for this success is the comprehensive range of solutions offered – from die casting cells and services to technological support. With its strong global services network, several application centers, and its own production, machine revision, and technology sites in Europe, Asia, and North America, the Business Area Die Casting supports customers in all investment phases. Maximum productivity and quality are ensured – from system engineering to start-up and throughout the entire lifecycle of the production systems.

With its vacuum deposition equipment, Bühler Leybold Optics con-tributes among other things to energy efficiency, comfort and food preservation. Thin-film applied on our machines ranges from func-tional optics coatings for window glass to headlight reflectors as well as flexible packaging. Coatings for ophthalmic and precision optics products such as lenses, lasers, or high-end telescopes complete the Leybold Optics product portfolio. Buildings with coated facade glass require up to 50 % less energy for heating and cooling. Leybold Optics combines state-of-the-art equipment technology with comprehensive process and application know-how to offer customers complete pro-duction solutions.

Die Casting Grinding & Dispersion

Leybold Optics

Best People

Employee Portraits: Making a difference

II

Best People Bühler Annual Report 2015

31

Employee PortraitsMaking a difference

The success of our company is based on our motivated and competent employees. In eight carefully selected portraits, we show how the flexibility and passion of our employees have contributed to our performance in a challenging 2015.

Mike Muriithi, Nairobi, KenyaWhat motivated this automation engi-neer to travel to Guinea despite Ebola?

Maral Heshmati, Tehran, IranWhat makes this Iranian site so successful despite sanctions?

Béatrice Conde-Petit, Uzwil, SwitzerlandHow this food expert develops new business models and services.

Fernanda Tanko, Blumenau, BrazilHow the passionate business woman copes with the downturn in Brazil.

Zhao Nangang, Wuxi, ChinaWhy this salesman from China has more than just luck.

Shidi Huzeinat, Nairobi, KenyaThe benefits that this young African woman draws from her Swiss vocational training.

Hans Gehrig, Uzwil, SwitzerlandThe quality specialist counters the strong Swiss franc by putting in extra hours.

Matthew Schweizer, Minneapolis, USAJust finished with his training, this Bühler service engineer proves his skills at customers’ sites.


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At the end of 2014, it appeared that the world was doomed. The media had al-ready declared Ebola the epidemic of the century. They flooded the world with pictures of the misery like a tsunami. The global temperature curve measured the fever daily, with West Africa at the cen-ter. Every slightly suspected case landed under the global microscope in real time. When the Ebola temperature curve had reached fever pitch at the end of the year, one person remained cool: Mike Muriithi, Bühler automation engineer based in Nairobi, Kenya. On Mike’s desk lay a request – now of all times – to travel to Guinea for a few weeks. To the epicenter of the disease. There, the Sonoco Group was busy building a flour plant of four mills with Bühler – and now they were ready for start-up. Would he go?

Mike is a sunny young man. Aged 28, he is a carefree kind of person – but quite the opposite of careless. He is deliber-ate. Calm. Calculated. Even as a child, he started kneading, building, shaping things. Engineering is in his DNA. Math-ematics came naturally to him. As a little boy, he pestered his mother at the table to give him more ogali, the African maize porridge. But not to eat. The porridge was Mike’s first engineering material. He used it to shape houses, cars, and faces – in such a lifelike way that he contin-ually astounded his family and friends.

After successfully finishing school, Mike studied mechanical engineering and me-catronics in Nairobi. Here he could in-dulge his passion for designing things in a professional fashion. He won a nation-al science contest with a robot design, which was capable of moving on its own through uncharted terrain.

Would he go? To Ebolaland? His moth-er encouraged him to go, but his father advised him against it, and his girlfriend almost fainted. “I knew that the epi-demic was dangerous,” says Mike. He too had been swept away by the flood of pictures. Bühler allows its employees to make the decision of whether to travel to risky countries or not. It was therefore his own personal decision. In order to reach a decision, Mike calculated the risk, relat-ing the number of people affected by the disease to the country’s population. He asked for information from independent sources on how people were infected. He balanced the risks and opportunities.

And Mike went.

Three things spurred him on: The obli-gation he felt toward customers, the dis-tress of the people in Guinea, and the unique opportunity for him personally. As a Swiss family-owned company with a global presence, Bühler is present in many crisis regions across the world.

Mike MuriithiNairobi, Kenya

Prince BraveheartThis is the story of Mike Muriithi, the cool boy who in the times of Ebola went to Guinea to start up a flour mill – and escaped with no more than a scare.


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A new service station was just opened in Pakistan. In Tehran, the Group has oper-ated a factory for decades, which con-tinued to manufacture Bühler products even during the embargo. “We are at our customers’ side especially when things get rough,” says Mike. That is Bühler. And the Sonoco flour mill in Conakry, Guinea was not just any facility. It was a firm part of plans to supply food to the population of this crisis-ridden country. “On site, we saw that the storage bins were almost empty,” explains Mike. More than once, government officials came to check on the progress being made in the construction of the Sonoco mill. “To have failed to start up the mill would have further aggravated the suffering of the people living in Guinea,” says Mike. And personally, the project offered him, who has been with Bühler for two years now, the opportunity to become part of an in-ternational team under Swiss manage-ment. Moreover, an automation system – WinCos, to be precise – was to be in-stalled, which he had never worked with before. “For me, this project was the right challenge at the right time,” says Mike.

The trip was painstakingly planned to minimize the risks. For this purpose, Bühler collaborated closely with SOS In-ternational, an institution specializing in such cases. The team was carefully in-structed on how to behave: Measure your

body temperature every day. Determine the best routes to be taken between the hotel and the mill. Refrain from going to a hospital in case of an emergency and instead immediately contact SOS Inter-national. Evacuation plans were drawn up to ensure that those involved could leave the country within a few hours. The Bühler Executive Board, which must ap-prove every journey to a maximum-risk country, gave the go-ahead.

And Mike went.

He was not alone. Mike was part of a project team that was managed out of Uzwil, Switzerland and was supported by automation specialists from Banga-lore, India. Olivier Galy, the head miller accompanying Mike on his assignment was from Casablanca, Morocco. “I was a member of the global Bühler family,” says Mike. Traveling via Côte d’Ivoire – direct flights from Kenya to Guinea had been suspended – he reached the place where it all was taking place. “When I passed the border control, I must admit I was feeling a bit queasy,” says Mike.

But there was no time for doubts. The project was calling. The team’s task was to start up four finished grain-grind-ing systems with a total capacity of 600 tonnes a day. 600 tonnes translates into 480 tonnes of flour, which is equiva-

Top service

Happy customersMike’s travels to our customer Sonoco in Guinea is only one extraordinary example of how Bühler is living up to the claim of “engineering customer success”. We put ourselves in the shoes of our customers thinking and acting from their perspective. There-fore, services are becoming more and more important: to ensure high uptime, constant quality, high yield and less energy consumption. And in cases like Sonoco to support our customer even in difficult situations to guarantee the start of production.

Mike Muriithi


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lent to 1 million one-kilogram loaves. Loaves of bread for the population of Ebola-ridden Guinea. The hardware – storage bins, building structures, roll-er mills, sifters, bagging lines – was all ready to turn the project into a reality.

Mike did not hesitate to tackle the job. He was supported by his colleagues at Bühler and the customer Sonoco, and assisted by the head miller Olivier from Casablanca, who was in charge of start-up and trial operation. Install and start up software, perform in / out tests, check sensors, grind the first grain batches, inspect the flour quality, fine-tune op-eration, continue to grind, check and readjust – until a smooth and reliable operation is achieved and the mill can be handed over to the customer.

Mike must travel twice to Guinea to com-plete his assignment. The hotel he is staying in along with his colleague is de-serted. His colleague and he himself are the only guests. He notices how little his own experiences match the reality de-scribed in the media. He does not learn of one single case of illness. The Ebola virus has not even arrived anywhere near the customer’s employees, who he be-friends and who invite him to their homes. Yet still, the oppressive feeling just won’t go away. “You simply can’t switch it off,” says Mike. At last, on January 25, 2015,

his courage, competence, and commit-ment are rewarded: Bühler successfully commissions the mill and ceremoniously hands it over to Sonoco.

Mike returns home – relieved and his baggage full of experiences and suc-cesses. “This was my best installation job ever,” he says. He is proud. He boards the plane.

His assignment is over. Almost.

One day later, Mike feels unwell. Feverish. He must go to the hospital. The doctors immediately place him under quaran-tine. Total isolation. When they visit him, they are wrapped entirely in protective clothing. They carry out tests. In the af-ternoon, his condition worsens. Mike’s nose starts to bleed. He is alarmed. The longest hours of his young life start.

In the evening, the doctors enter his room. Still wrapped up. Then sudden-ly they take off their masks and laugh: “Everything’s okay with you.”

Now Mike’s assignment is over. Really.

“For me, this project was the right challenge at the right time.”


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So far, it has been a unique success story. Set up in 1980, the Sanmak fami-ly business rapidly shot to the top in the field of optical grain sorting systems in Brazil. This did not remain unnoticed in far-away Switzerland. Bühler, which also serves this market and is always on the lookout for opportunities, took note – and did not hesitate to submit an attractive acquisition offer to the South American company. With the know-how, the global sales and production net-work, and the financial clout of Bühler, the partners thought, much more could be achieved jointly. The deal was closed in 2010, and this tripped a turbocharger that provided an additional boost to the Sanmak engine, which was already spin-ning at full speed. Within a matter of only three years, its market share rose from 50 % to over 65 %. What, then, could now prevent the glorious future of Bühler Sanmak?

Then came October 5, 2014 – and with it Dilma Rousseff, the reelected Presi-dent of Brazil. It was not long before the political leadership shattered the fairy-tale of a Brazilian economic miracle by political conflict, corruption, and incom-petence. The economy had grown by as much as 7.5 % in the past years, but has slumped to a minus of more than 1 % in 2015. Some 2,000 businesses have gone bust – almost 25 % more than a year ago. The unemployment rate has in-creased from 4 % to almost 8 % – more

than 15 million inhabitants of the former-ly seventh- largest economy of the world are now jobless. Bühler has suffered, too: Turn over in 2015 dipped for the first time by 8 %.

And Fernanda? Has she given herself over to gloom? Does her face show lines of distress? Is her back bent by the weight of troubling thoughts? Quite the opposite is true: She is now more ener-getic than ever before. For her, recession is not followed by depression – facing and fighting decline is her stimulant: “Let’s show them what we are together,” is the motto she declares.

As the daughter of an entrepreneur, she has tackled critical situations before, for example when the sale of her company to Bühler was first met with employees’ resistance. Here, too, she displayed staying power and assertiveness, even-tually convincing her staff of the bene-fits of the sale. But this mother of three also knows that hard business decisions alone are not enough. If she wants to navigate her company through rough seas, she must be able to rely on a hardy and loyal crew. She therefore urges on her people, with praise, admonition, help, consolation, laughter – standing boldly on the bridge giving her commands. Just like Yin and Yang, she combines sharp business acumen with hearty passion – which allows her to find many unconven-tional solutions.

The Yin-Yang LadyThis is the story of Fernanda Tanko, who in the Brazilian city of Blumenau stands her ground against the recession with determination, a cool head, and a warm heart – and who is taking unconventional approaches with WhatsApp.

Fernanda TankoBlumenau, Brazil

Take quality assurance. In this area, Fernanda is uncompromising. Bühler is and will always be a premium solu-tion provider – even in times of crisis. But because the dollar exchange rate has ballooned by almost 50 %, it has in many cases become unaffordable to im-port high-grade machinery components. This means that local vendors must now fill this gap – vendors capable of fulfilling the rigorous quality standards of Bühler Sanmak and also keeping up when it comes to efficiency. She leaves nothing to chance. She and her staff visit local vendors to analyze their entire produc-tion processes and supply chains. How can we generate quality in the process-es? Where does potential for improve-ment still exist that will also allow better prices to be achieved?

This close cooperation enabled Fernan-da and a supplier of sheet metal compo-nents to slash the process of returning defective parts by three days. And this with a strikingly simple solution: When Fernanda realized how much time was being lost through paperwork and re-turns, she did not hesitate to set up a

Engineering customer success

Improved production processFounded in 1922, Josapar has established itself as one of the largest food products companies in Brazil, supplying quality goods to the main Brazilian retailers and exporting to over 40 countries worldwide. To ensure its high level of quality, Josapar relies on the premium technology of Bühler, delivering a highly efficient production process along the entire value chain of production.

“With the know-how and the highly efficient solutions Bühler offers, the company has become an indispensable partner for us at Josapar. With the new B5 sorter of Bühler Sanmak, we were able to significantly improve our yield rate, production capacity and the energy consumption in the re-designed sorting process for parboiled rice“, states Carlos Renato Teixeira, Plant Manager at Josapar. ”We were even able to im - prove our employee’s satisfaction thanks to a training given by Bühler, that led to improved results and a new structure allowing desirable labor conditions and hence a better performance.”

Fernanda Tanko


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WhatsApp group with everyone involved in the process. This gave an extreme boost to communications between Bühler Sanmak and its vendors: Today, if one of her staff receives a defective machine component, they photograph it with their Smartphone and send it to the WhatsApp group. This provides the supplier with first-hand information within almost no time, allowing them to induce the production of a new part the same minute – and seven instead of the initial ten days later, it is available at the goods reception point of Bühler Sanmak.

Such smart ideas are not the exception – they are the rule. Using tricks small and large, Fernanda and her team manage to improve time-consuming processes and procedures that have become stuck in a rut. Nothing escapes her scrutiny; if nec-essary, she will turn everything inside out, not tiring to rearrange things at her site if only this improves process flows and increases productivity and ultimately the competitiveness. Thus, installation engi-neers now receive their machine com-ponents every morning by trolley service from the spare parts warehouse. Until

recently, they lost valuable time leaving their workplaces individually to collect their machine parts from the warehouse.

Finding and rapidly implementing such improvements is not possible without smooth communications and a closely- knit team of some 100 employees in Blumenau. “We are all pulling in the same direction,” says Fernanda. The team spirit has become a matter of course, and this across all departments. In order to firmly implant this philosophy in the minds of her staff, Fernanda regu-larly gathers her workforce to drive them on to further improve internal processes by intensifying collaboration across the boundaries of all the different functions.

In June 2015, she started a workshop program with the Manufacturing & Lo-gistics and the Engineering team to optimize their collaboration and the processes that have a direct impact on the supply chain and therewith the quality of Bühler Sanmak. By making her employees better understand each oth-er’s perspective and by improving the leadership in the different departments,

she managed to speed up the machine delivery time by as much as 23 % by the end of 2015.

Such successes are important not only for business, but also for the well-being of everyone in the company. “I cannot tell my people for sure what the future will look like. But I can motivate them with my positive attitude to not bury their heads in the sand when problems crop up, but to find a solution to them,” says Fernan-da. This is how she keeps spirits high. Positive thinking – this is her firm convic-tion – may decide between success and failure, especially when times are gloomy.

And this is also reflected in the compa-ny’s positive figures. Despite a plunge in sales revenue, Blumenau continues to be profitable. Despite ever-fiercer com-petition, Bühler Sanmak is still the mar-ket leader. Fernanda Tanko is still writing the success story of her company. Times may be uncertain, but the last chapter has certainly not been written yet.

“Let’s show them what we are together.”


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The DoerThis is the story of Hans Gehrig, the Ironman, the Formula-1 car builder, the guitar collector – the welding expert at Bühler.

As many others too, Hans did unpaid extra work last year in order to help mit-igate the consequences of the stronger Swiss franc. And although “I actually had enough to do in Uzwil,” he said, he would be prepared to go and assist the German Bühler site in Beilngries near Ingolstadt to assure the welding quality. The loca-tion had a need for action.

Welding is Hans’s passion – one of many. Welds must be strong. They must be gastight. And they must look nice. “I can tell how good a weld is by its appear-ance,” says Hans. Uniform, straight, with an attractive form is what they should be like. “The weld decorates the compo-nent.” This is what he strives for. Because quality is important to Bühler. His com-pany. Poor welds cost money and may become dangerous. And they rarely take less time to produce than a perfect one. The quality of welds reveals to custom-ers what quality means for Bühler. His company. A weld is a business card. He works at “a good company.” He wants this to show. Out of conviction.

This is Hans Gehrig: a convinced doer. Calm. Patient. With a firm, long hand-shake, looking straight into your eyes. His face tells the same story. With a readiness to commit 100 % of his efforts to a cause that fascinates him. And with an inner fire driving him toward ever-new

summits that gives him strength, gives him the power to hang on in moments when others give up. With a fire that allows him to bear defeat and rewards him with lasting moments of bliss with an intensity that grows out of his almost superhuman exertion. “If you want life to give a lot back to you, you must invest a lot first,” is one of his credos.

His life – he is now 58 years old, grew up in Flawil near the Bühler headquar-ters, became the father of son Jay at 44 – abounds with investments in his life. Even while training to become a metalworker, he was enraptured as a young man by the sport of motocross – until a serious acci-dent abruptly cut off this passion. After re-covering, he switched to endurance sport. He was driven by it. He started swimming intensively, cycling, running, more and more, faster and faster, until he complet-ed his first ironman triathlon in Basel in 1984, finishing fifth, but soon going on to reach the very top in Hawaii, first as finisher – someone who makes it to the finishing line in the first place – and with ever improving results. He took part six times, more than once having to end this brutal contest before the end because of health problems. “Yes, I also know bitter defeat!” At his crowning point, he was the world’s 48th-best amateur. That was back in 1989. “If you want life to give a lot back to you, you must invest a lot first.”

Hans GehrigUzwil, Switzerland


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And that is what he does! Hans Gehrig is a self-motivation acrobat on life’s tight-rope. That requires emotions: “Love what you do, and do what you love.” For this, you need mental stamina: “Your mind decides,” he says. “Even if you train to excess, your psychic condition will de-cide whether you win or lose. You must know your strengths and your weak-nesses and also how to mobilize your reserves at the crucial moment.”

Then he started training to become a mental and motivation trainer to pass on his own personal experience.

For Hans, the parallel between sport and profession is evident. Competition, performance, quality, innovation, staying power, dedication and devotion exist in both worlds. After training apprentices during nine years at Bühler, he is of-fered the once-in-a-lifetime opportunity in 1995 to head the car construction ac-tivities of Sauber, the Formula 1 racing stable in Hinwil a mere 60 kilometers away from Uzwil. Yet another huge chal-lenge. The induction is tough and intense, with deadlines continuously looming and expectations high to achieve success. With each race comes the uncertainty whether the rocket on wheels will make it or fail because of a defect for which his people were responsible, which however never happened once in all the five years with Sauber. As many times before, he passes also this acid test, experiencing moments of deep satisfaction that others can only dream of. Winter is always the toughest time, when the first new cars are built. “The sensation of standing all alone early in the morning in front of a freshly designed racing car is like noth-

ing else in the world.” After five years of intense F1 racing car business, the next vocational change called.

Why does someone come back to Bühler?

Fist of all because of the products and technologies. “Unrivaled,” says Hans. He is proud of being “part of it all, of help-ing feed the world.” Proud to know that a large share of all cars – about 25 % worldwide – drive around with aluminum components inside that have been made on Bühler die casting machines. Proud that a Swiss family business from the region where he was born and grew up is capable of this; that he can share in the company’s success; that the com-pany always has the future in mind; that it offers its employees top-notch training and continuing education; and that qual-ity is at the core of everything it does. His pride does not hide the fact from him that, say, workloads have greatly increased and there is occasionally not enough time to carry out tasks with the desirable care. “There is no such thing as the perfect company,” he says, and personally makes every effort to improve things. “I would not hesitate for a moment to recommend Bühler as an employer.”

That is why Hans Gehrig accepted work-ing unpaid extra time when the landslide of the franc-to-euro exchange rate struck, ripping a hole of almost CHF 100 million into the assets of Bühler. “I accepted this action without reserve.” He and the en-tire workforce in Switzerland displayed the pragmatism so typical of this country, to which it owes its success. Within a matter of days, the employee commis-

“The sensation of standing all alone early in the morning in front of a freshly designed racing car is like nothing else in the world.”

Top quality

Integral claimQuality for Bühler as a premium solutions provider and market leader in many fields is a mainstay in its business model. Its quality understanding is integral and not limited merely to hardware or, in other words: plant and equipment. In order to satisfy the requirements of its mission to enable customers’ success on the basis of sustainable process solutions, Bühler quality starts with the selection and continuous training and education of employees. It continues through consulting, engineering, and techno-logy and product development services to production, start-up, and customer service. And also its comprehensive training opportunities offered to customers are crucial for living up to its quality claim.


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sion representing the employees agreed upon an extensive bundle of measures with the top company management, in-cluding five more work-hours a week. Not really enthusiastically, but accepted for the sake of maintaining the organiza-tion’s competitiveness. “Introducing the 45-hour week during a limited period of time was without any doubt preferable as a solution to the problem to cutting wages or laying off employees. I trust our people at the top, who know the details, and I hope this decision will ultimately yield the expected results,” says Hans.

“If you want life to give a lot back to you, you must invest a lot first.” Hans relies on passion, performance, and quality, and he will continue to invest during his whole life, also in Bühler.

It is fortunate that people such as Hans Gehrig work at Bühler. And perhaps it is not really by chance after all.

Hans Gehrig


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Iran: Until the end of the 1970s, the re-gion on the Persian highlands was where three millennia ago, civilization began, and the first written sources were found – a promised land blessed with natural resources, an open society with 80 mil-lion people, predominantly young people. Bühler decides in 1976 to expand into the promising region with its own site. Business is going well.

Then, in 1979 the turning point: The Is-lamic Revolution turned the country up-side down. And that was the beginning of the phase of isolation that would last decades. The isolation and marginaliza-tion reaches its peak in 2012 as the USA implements an oil embargo in addition to tightening sanctions against the country.

And Bühler? Can the site, which had grown to employ 150 employees and looked after 310 customers from the milling industry, adjust one more time to this extreme situation? “The sanc-tions of 2012 changed everything again,” explains Maral Heshmati, 31 years old, working for Bühler Tehran in the mill-ing department. “The sanctions were a shock for us,” she adds.

The national currency, Rial, lost more than 40 % of its value against foreign currencies in a period of less than two

weeks. The yearly inflation rate jumped dramatically to 45 %. In the face of the currency crash, regular customers of Bühler Tehran stopped investing over-night. Was that the end? Did the Swiss Company have a chance under the con-ditions of a world-wide ban, which for-bade the import of technological goods and cut off the corporation’s IT systems. Would Bühler Tehran give up?

That would not be Bühler! Sharif Nezam- Mafi, the Managing Director, went in front of his team and said: “We have the complete support of our entire organi-zation. We will manage.” “But,” he add-ed, “we need to completely re-establish ourselves.” Maral, who has been with them since 2010 and is one of the most experienced team members, served as one of the most important levers by managing the flow of funds in order to handle the transformation successfully. She knew: “Now we needed to be as flexible as possible.”

Step one: Ensuring the margins under the conditions of extreme currency volatility. “For that, we immediately made a huge Excel spreadsheet, in which the prod-ucts were stripped down into their most important parts, with import countries and currencies.” This list is updated daily, in order to give each customer the relevant

The “Just Do It” Lady This is the story of 31-year-old Maral Heshmati, the “Just Do It” Lady, who is having a great effect on the business success of Bühler Tehran with her creativity and talent for improvisation.

Maral HeshmatiTehran, Iran


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prices and adjust for hyper- inflation. Be-cause they also had to operate under the same conditions, they accepted this procedure.

That is a typical Maral solution; she is a “Just Do It” Lady. Before anyone has finished asking a question, it seems, she picks up the phone in order to undertake the necessary steps. Her philosophy: “You have to take charge of things your-self. Nothing happens by itself.” Some-times that can be tiring and pushes her to her limits. She regains her energy with Zumba, and she teaches as an instructor five minutes away from Bühler Tehran.

Step two: Ensuring financing. Since the sanctions went into force, issuing letters of credit specifically has become a chal-lenge. Without this letter of credit, it is not possible to receive a loan from the bank to buy machines. No loan, no orders. No orders, no revenue. The equation is so simple and yet so tough, which Maral and her colleagues from Bühler Tehran are confronted with day in day out.

Their remedy for this: Bühler Tehran, along with the customers, opened ac-counts with Chinese banks and also in-voice in the Chinese currency, Renminbi. This was not banned under the sanction conditions and enabled further financing, and also to maintain certain foreign sup-pliers. It also has the effect of cushioning price fluctuations.

Step three: Ensuring delivery quality. In the spirit of “Just Do It”, Maral vehemently enjoys getting involved to counteract

In the region for the region

Milling customer Vahdat Abade decides for local machinesVahdat Abade, founded in 1982, is owned by the Aram family and has a milling capacity of 230 tonnes per day. The company decided that for its next growth program, it will order 12 MDDP roller mills assembled in the Bühler factory in Astara. “We wanted local machines that will allow us to have faster access to technology know-how and spare parts; Astara provides all these characteristics and is very strategically located,” says managing director Hussain Aram. After the initial engineering by Bühler Tehran, the prefabricated MDDPs were ordered from Bühler China with final assembly in Astara – everything done was aligned to the high quality standards of Bühler. The customer start-up is scheduled for February 2016.

Maral Heshmati


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possible delays. For the milling customer, Qods Razavi, the lack of one single han-dle for a plansifter threatened to delay the whole delivery. By reacting quickly and making countless telephone calls with China, she and her team succeeded in delivering these on time, separately by air freight. Maral regularly inspires domestic suppliers as well as Bühler employees to produce and deliver more quickly. Thanks to the very precise alignment of order and import documents, Maral recently succeeded, for example, in en-abling a delivery to the milling customers Khousheh Fars on time.

Step four: Focus on the distribution of individual machines and complete re-construction of the value chain, in order to operate successfully and strategically within the changed market conditions in the long term. Previously, Bühler Tehran imported the most critical components from the European Bühler sites. “Up to this point, our customers were prepared to pay the appropriate prices”, Maral re-calls. The site could no longer afford that with the weakened Rial. Foreign suppli-ers had become too expensive because of the weak currency. And raising prices was not an option. The economic situ-ation of the customers did not allow for that. Bühler Tehran had two options: do-mestic production on the one hand and importing from Bühler Asia on the other.

In order to ensure the correct procedure, Maral and her team thoroughly identified the needs of the local market. They car-ried out interviews with numerous cus-tomers, and meticulously collected their

desired specifications. Afterwards, their Manager, Sharif Nezam-Mafi, traveled to China with a team, in order to check parts on site, to arrange the exact scope of delivery of the “Iranian” roller mill to be constructed, and to put the consign-ment back on track. By doing so, they succeeded in a short amount of time in ordering a complete prototype, which would subsequently be constructed in Bühler’s own factory in Astara. Maral and her people also looked in Iran at the same time for alternative suppliers. She carried out comprehensive audits among local providers and look what happened: She struck gold and came across a local pro-ducer, who was even partly better than the previous foreign suppliers.

“Just Do It”: After just two years, site man-ager Sharif, Maral and their colleagues are celebrating the first successes. At the end of 2014, Bühler Tehran was able to sell the first locally assembled roller mill MDDP, and four additional types of machines in the rice sector were added to the production line. For one and a half years, Bühler Tehran has also been sell-ing self-produced hopper scales, rotary valves and sieving machines. “To see that our strategy is proving successful makes us incredibly proud and inspires us,” says Maral.

The pride is justified, as the concept to secure the future in Tehran worked: Bühler Tehran is number one for individ-ual machines in the Middle East & Africa, the site’s profitability is significantly high-er than the Bühler average. All thanks to “Just Do It”!

“You have to take charge of things yourself. Nothing happens by itself.”


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China in the year 1992: The Middle King-dom is still slumbering and waiting to be kissed awake. The skies over Beijing are blue, the streets are swarming with bicy-cles, and the people are still poor. Bühler is still the traditional Swiss company of yore, for which China is a niche market; as yet, it has not built any factory there. A young man, trained as a mechanical en-gineer, enters the Bühler office in Beijing. He has applied for a sales job. His open and patient nature, his knowledge, his drive – they are all convincing. And also his modesty. When he leaves, he has the job. Is this what you call luck?

China in the year 2011: The Middle King-dom is hurtling down the fast lane of glo-balization. Beijing’s skies are gray, cars are stuck bumper to bumper in traffic jams, new money is on display every-where. Bühler operates in 140 countries and has become a global Swiss fami-ly-owned company. China is Bühler’s most important market. Over 2,000 peo-ple work there in five factories. Our salesman – who has been with Bühler for 20 years without interruption – has a flash of inspiration.

He has long been familiar with everything related to grinding raw materials into tiny particles measured on a nanometer scale. And how you mingle them with

other ingredients into homogeneous dis-persions, for example for making paints and inks. He and his team have supplied them to the Chinese printing industry for the past 16 years. For mixing dispersions, Bühler offers the well-known batch pro-cess as well as its latest technology – a continuous process using extruders. They merge the ingredients in a small barrel equipped with a twin screw, which mixes them thoroughly and then forces them as a highly homogeneous product through a nozzle and out of the machine.

Our man in Beijing, always on the lookout for new markets, knows that nanoparti-cles are also mixed in the production of lithium-ion batteries. Up until then, their key component – the electrode slurry – was mixed in huge mixing containers. That is costly, takes up much space, and is not always successful. The mixing time is long and quality fluctuates. If the process could be performed using an extruder, this would be a breakthrough, specifically for the rapidly growing elec-tric car market. Charlie is aware that his colleagues in Uzwil, Dr. Markus Hofer and Dr. Bernhard Stalder, had worked out a general process years ago for mix-ing lithium- ion battery slurries based on existing Bühler extrusion technology. But none of the attempts to launch the new solution were crowned by success.

Lucky ManThis is the story of Zhao Nangang, called Charlie, a Chinese economic miracle man whose flash of inspiration is apt to give wings to the use of clean electrical cars.

Zhao NangangWuxi, China


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While listening to introductions on mod-ern battery material production process-es at a customer meeting in 2011, he is fully alert: Now the time has come to push this idea and revolutionize the bat-tery production process. Intuition: Luck? That is precisely how our man views the matter, modest as he is: “I am a lucky man,” says Zhao Nangang, Charlie. His formula for success: competence and empathy. Knowing what his partners, his customers, need, what they feel, how they tick. Never pretending. Thinking for them. And then also: Luck.

With all his skills, he focuses his energy on turning his hunch into a reality. His Swiss colleagues as inventors of the ba-sic solution promote his efforts to push the concept into the market. “If you want to be successful in business, you need the full support of the entire organiza-tion,” is one of his credos. Where is the door now? How does it open? “There is always a door,” says Charlie. “All you have to do is find it.” Just make sure you don’t run against a wall. The door is some 1,000 kilometers away from his location in Wuxi, in the city of Tianjin – a company named Lishen.

Lishen: This is China 2.0 in its purest form. Set up in 1997, the company now has over 9,000 employees. Today, this Chinese organization is a supplier to the top brands of the electronics and enter-tainment industries – Apple, Samsung, Microsoft, to name but a few. Lishen spends up to 5 % of its revenues on research and development, and more than 1,500 of its engineers are busy de-veloping the batteries of the future. And the future resides in the next expansion stage: automotive. Soon, Lishen has signed cooperation agreements with VW, BMW, and Jianghuai.

China is pushing electromobility. Its megacities are to breathe freely again. The International Energy Agency (IEA) estimates that of the 120 million new cars that are projected to be sold in 2030, every other one will be powered by an electric motor. Most of them in China. The component of an electric car most critical for its success is the battery. Range, speed, weight, and costs: The energy storage system has an impact on everything. In all likelihood, global manufacturing capacities for making lith-ium-ion batteries will expand massively in the next few years. Lishen is powered


Lishen as a technology partnerThe iPhone has them, fitbit bracelets contain them, Dell notebooks are equipped with them: Lithium-ion bat-teries from the Chinese manufacturer Lishen. The next big field of application for Lishen are energy storage devices for electrical vehicles. By the year 2017, the company based in Tianjin plans to almost double its production capacity. And it will do so with Bühler as its technology partner. Setting out from a new basic Bühler process, the two companies have jointly developed a new solution for making the core battery component – the electrode slurry: a continuous extrusion process. This approach has been designed to cut production costs on a sustainable basis and to achieve a better quality. An initial pilot line has already gone into operation at Lishen.

Zhao Nangang


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by this development. “Power your life” is its corporate motto. The company plans to invest almost CHF 2 billion in building a Power Battery Industrial Park with an annual production capacity of 10 billion watt-hours.

This is the opportunity that Charlie has been waiting for.

For the evaluation and process develop-ment stages, Bühler has built a special battery lab in Wuxi to develop the slurry production process using an extruder. This is the new Bühler, this is the new China: an entrepreneurial spirit and cour-age from Switzerland for the first time combined with the capabilities of the Group’s technology site in Wuxi. Another milestone reached. Then come the first trials in the battery lab. The results were devastating, remembers Charlie. The end of the dream? “You must always be prepared to accept the challenges,” is another credo of his. Extracting the tiny positive aspects from the negative results and building upon them. His idea has already gained momentum, which helps bridge the first frustrations. Step by step, the development team forges ahead, improving parameter by parame-ter. Until the laboratory values show bet-ter processing properties in conjunction with half the former footprint and lower production costs per liter of slurry. With such values, you can start approaching customers.

China in the year 2015: The country is on a consumption and innovation trip. High-speed trains flit across the lands, Chi-nese investors are chasing investment opportunities around the world, and the current five-year plan promises greater sustainability. The country’s economy has begun its challenging transition, accompanied by inevitable hiccups. By mid-year, Bühler and Lishen have reached the next milestone. A thousand miles after the first step, the two technol-ogy partners have agreed to build a first pilot production line right inside Lishen’s factory in Tianjin. And a few months lat-er, the first battery slurry comes out of the extruder. Charlie’s plan to activate a network of supporters across different divisions and cultures together with a key customer has worked out. The success of the launch of the revolutionary pro-cess is tangible.

Is that what you call luck?

“If you want to be a successful salesman, you need the full support of the entire organization.”


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Matthew SchweizerMinneapolis, USA

When Matthew Schweizer flies across the United States, he reads. Not light stuff – machine manuals. Today he is on his way to the American subsidiary of Lindt in Stratham, New Hampshire. In his hands: the operating instructions for a five-roll refiner. Matt is accompanied by Michael Furrer, a seasoned service engineer who has been with Bühler for 30 years.

Mike is Matt’s mentor. He likes his 22-year-old, who looks as if he might be mother’s favorite son-in-law. For Matt is ambitious. He is tough. He painstaking-ly prepares what he is going to do be-fore he does it. And he is also good at it, even outstandingly qualified. But this is not surprising, for Matt completed his vocational training in Minneapolis a few months ago to become a customer service engineer – in an apprenticeship program that exists in no other place in the world than in Switzerland or Germa-ny – yet now also at Bühler in America. The statistical probability of meeting an-other U.S. citizen with a Swiss vocational training certificate is likely to be around one to a million.

How did this happen? Why does Bühler not only export plants and equipment, but also its training model? And this not only to the United States, but also to Bra-zil, China, India, and South America. And

why does Matt, who actually planned to get a normal college degree, embark on the adventure of an apprenticeship – a form or training that no one has known in the United States up to now?

It all started exactly 101 years ago. On May 2, 1915, at six in the morning, the then 16-year-old Albert Bürkler headed out to his workbench at Bühler in Uzwil. He was the first apprentice to learn the vocation of metalworker. This marked the starting point of an era of steadily intensifying training and continuing ed-ucation for this Swiss company. From the beginning, Bühler pioneered indus-trial-scale process engineering. But the business concept of this prime solution provider can only work with the “Best People” – regardless of whether they are employed in product development, engi-neering, manufacturing, sales, or service. That was as true back then as it is now. Since that time, 7,000 apprentices have completed their basic vocational training at Bühler, and over 1,000 of them are regular Bühler employees today – almost 10 % of the total workforce.

As the organization continued to glo-balize and add new sites to its network, which currently comprises 140 locations worldwide, Bühler also carried its voca-tional training model out into the big wide world – after all, the Best People are re-

The Perfect MatchThis is the story of Matthew Schweizer, who completed his vocational training at Bühler in the United States based on the Swiss model – and is unique not only because of that.


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quired not only in Uzwil. For this, Bühler sends apprentices from Switzerland to its sites across the planet, where they can continue their basic vocational training in a virtual classroom. To support this effort, Bühler sets up its own vocational train-ing schools at its major locations. This is done not only to cover its own needs, but also for the sake of its customers. The latest example of this is the African Mill-ing School, which Bühler opened about a year ago in Kenya and where African specialists with a basic on-the-job train-ing background receive systematic theo-retical and practical education.

The Bühler vocational training school in Minneapolis opened in 2012 – and it would become a kind of pilgrimage site for Matthew Schweizer. The education there was a perfect match for the needs of this young American with his thirst for knowledge and his love of experimenting.

This is because Matt is a machine nerd. As a little boy, he took his toys apart because he wanted to see what they looked like from the inside. Though he was unable to put them all together again, his fascination had been awak-ened. In grade ten, he started working in a hardware store: his personal para-dise populated by countless machine parts and tools. He collected whatever was discarded there and took it home for inspection, where he gradually built an impressive workshop.

When his friends go to the movies, he goes to his workshop, which is locat-ed right next to his bedroom. Over 3,000 parts are sitting there, meticu-lously sorted and stowed away in parts drawers. He loves hammering, solder-

ing, filing, and bolting things together. He adores finding out how things work, exploring them down to the last detail – electrical circuits for example, or piping systems. He once even dismantled the piping in parts of his parents’ home, re-assembling it in his own personal fashion. In his bedroom, the construction and all the electrical wiring is his own work.

When a Bühler full-time employee who worked in the same hardware store drew Matt’s attention to the vacant appren-ticeship, he didn’t hesitate for a second. He immediately realized this once-in-a-lifetime opportunity to understand, re-pair, and maintain big machinery instead of just selling small pieces of equipment – and promptly turned his passion into his profession.

Three months of classroom work, then three months of hands-on work at Bühler: This was the cycle in the three-year training program at Bühler Minne-apolis and the vocational training school at the Dunwoody College of Technolo-gy. In the first year, the five apprentices learned how to use the various tools and machinery. In the second, they familiar-ized themselves with everything electri-cal, and in the third were initiated into the fundamentals of machine design and business administration. A broad educa-tion, and one with enough room for ex-perimenting: When Matt was not helping out in the assembly shop or going along to visit customers, he and his four col-leagues in the apprenticeship workshop investigated the operating principle of mechanical and electrical components. The college class was made up of only the five Bühler apprentices – what bet-ter instructor-to-trainee ratio could you

imagine? “In such a learning atmosphere, you are much more likely to ask a ques-tion if something is not clear,” says Matt.

With his insatiable curiosity and his care-ful work style, he was a good apprentice, perhaps even the best of the first five. As a reward, Matt was offered the chance together with another apprentice to work for four months in Uzwil. “That was a very valuable experience because it al-lowed me to look into a large number of different departments,” says Matt. In Uzwil, he also saw how the dual voca-tional training system works in Switzer-land. Many things thrilled him, although he preferred other aspects in his var-ied apprenticeship in Minneapolis. “We learned to solve a given problem in more than just one way,” he says. “Not every customer has a lathe or milling machine at their plant. But I know how to mea-sure and drill things even by hand.”

Matt is a practical thinker. He wants to be productive, make sure that things keep humming. During his apprentice-ship, he made an extraordinary effort to travel to customers’ sites. In those three years he worked more than 200 days at customers’ locations. He seized every opportunity to gather experience on in-stalled machines. Or even to install them himself in the first place. For example at Lindt in Stratham, where two years ago, he installed the production line and is now carrying out the maintenance on a five-roller refiner.

Changing the rollers of a five-roller re-finer takes five days. Five days during which the machine is idle and chocolate production is slowed down. During this brief span of time, everything Matt and


Long tradition of trustful partnershipFor years now, Lindt has been writing a success story with its immense growth – also and especially in the American marketplace. In the premium segment, this Swiss pro-ducer has established itself as the global Number One, thanks to its exceptional quality, variety, and innovative power. In the background, Bühler acts as its core supplier of process solutions and its technology partner along the entire value chain of chocolate production – from preparation and processing of the cocoa beans and other selected ingredients to production of the “Lindor Kugel” chocolate balls and premium choco-lates. This close collaboration between the two companies has a long tradition: It was first documented in 1947, when Dr. Rudolf R. Sprüngli worked as a young trainee on Bühler five-roller refiners.


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Mike do must be right, for this machine is the key to achieving a supreme choc-olate quality. The five-roller refiner grinds the sugar crystals and other ingredients contained in the chocolate mass. The gap between the five rollers is in the double-digit micron range – the closer together the rollers, the finer the choc-olate. For a premium producer such as Lindt, the roller gap is the eye of the nee-dle leading to chocolate paradise.

So, the two arrive early in the morning at seven in the production hall of Lindt to work together with two maintenance employees. A defined procedure is now in place, with Mike determining the over-all plan and Matt taking over most of the tasks on his own, for example fitting heated bearings on the rollers or cleaning parts. His actions are quick and accurate.

Then, on a Tuesday morning – the bottle-neck. One of the Lindt specialists must take care of something else at short no-tice. The tight schedule will not allow any delay. This is Matt’s chance to display his skills. He and his mentor take charge of the job for a short time, and Matt proves that he is fully up to the job. Though Matt visited customers as Mike’s shadow during one whole year, his training and initiative make him a true partner.

“We learned to solve a given problem in more than just one way.”

Today, Matt could easily explain to cus-tomers almost anything about chocolate machines such as the five-roller refiner – knowledge gained from his high-alti-tude reading and from his mentor Mike. His broad training also enables him to diagnose faults with greater precision. His experimenting with devices and dis-mantling them into parts are paying off. When others would simply replace an entire machine part, Matt can say exactly what the problem is and whether it would make more sense to repair it.

It was only a matter of time before this form of training would become noticed by the public at large. Now, Matt and his fellow apprentices have become media stars and have granted numerous inter-views both in the United States and in Switzerland. The impact even reached top political levels: Jill Biden, the U.S. Vice President’s wife, came personally to Uzwil to see the benefits of the dual vo-cational training model. In return, Bühler CEO Calvin Grieder was invited to the White House in Washington to provide information on this Swiss form of training.

It won’t be surprising if we soon see the rare bird Matthew Schweizer with a whole flock of young people with pre-cisely this type of training.

Matthew Schweizer


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May 21, 2004 was a sunny day – and ended in a thunderstorm for the food industry. On this day, the U. S. Food & Drug Administration (FDA) furnished in-disputable proof that also dry foods can be contaminated by disease-inducing bacteria. Using new analytical methods of molecular biology, the FDA was able to demonstrate that certain cases of salmonellosis could be traced back to raw almonds. Up to this day, the sole foods that were thought to pose a risk were those with a high water content such as meat, eggs, or salads. The sci-entific community was thunderstruck; in the food industry, only few people could visualize the profound change that this insight would trigger in the following 10 years.

The news would change not only science and industry. It also reshaped the life of a promising scientist working at the Swiss Institute of Technology (ETH) in Zürich: Béatrice Conde, at that time 43 years old. “It became immediately clear to me that something dramatic was going on here,” says Conde, a former private lec-turer at the ETH Faculty of Food Tech-nology. All of a sudden, an entirely new threat loomed ahead which nobody in the field had foreseen. This issue rivet-ed Conde as a researcher and wouldn’t let her go. “We must arrive at a much better understanding of the effects that

common processes have on bacteria destruction,” she thought. And: “Why not apply tried-and-true solutions from the field of dairy technology to the pro-cessing of dry foods?” No one should be in a better position than Béatrice Conde to find such solutions.

As a food engineer, she focused her research on ways to transfer concepts of polymer physics to food processing. In the field of plastics, a large number of phase diagrams had long existed, which enabled manufacturing process-es to be designed and explained with great reliability. But not for grain. Here, empiricism and experience still reigned supreme, having evolved over the mil-lennia. However, if processes are to be fundamentally improved – for example for halving energy consumption during dry-ing – empiricism alone provides a shaky basis. Precisely quantifiable knowledge is needed in order to comprehend foods as a normal material and on the other hand to survey them as is done with any other material and then to selective-ly transform them. Béatrice Conde had already become a well-known expert for her work on process design based on phase diagrams for grain.

Thanks to the close ties between her Alma Mater and Bühler, she knew this com-pany as a process and solution provider.

The InterfaceThis is the story of Béatrice Conde-Petit, a pioneer of food safety who fights bacteria and mold with “killing steps” and sorters.

Béatrice Conde-PetitUzwil, Switzerland


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Advanced cleaning of mycotoxinsLorenzo Crivello, Managing Director of the Centro Cereali Carmagnola (close to Turin), states: “After more than one year running with my Bühler Sortex and their new cleaning concept for mycotoxins in corn, I'm really satisfied about the choice of my partnership with Bühler. And to use their latest technology for this so complex and difficult issue. Thanks to this, we were able to process corn that was highly contaminated by myco-toxins and bring it to the legal EU limits of purity, giving me again the chance to remain the preferred supplier for all of my strategic customers.”

And as the company began seeking specialist staff with the skills needed for building expertise in the area of food sci-ence and analytics, the spotlight turned on her. It appealed to her to apply her knowledge and abilities to finding prac-tical solutions that would benefit peo-ple around the globe. Béatrice Conde agreed to join the effort. No one should be better suited to shaping the subject of food safety and giving it a clear profile at Bühler than her. In this, she benefits not only from her professional educa-tion with all its convolutions, but also her personal background. As a daughter of Swiss parents who lived abroad, she was born in Chile and grew up in La Paz in Bolivia. She also spent a number of her childhood years in India. Béatrice Conde speaks four languages and is well-versed also in cultural matters.

Now she can benefit from this varied background, for the subject matter she deals with is as many-layered as lami-nated dough and as slippery as eel. One person, one discipline alone will not suf-fice to gain control over this toxic matter. Coming to grips with food safety is only possible on the basis of interaction of a wide range of scientific disciplines: mi-crobiology, engineering, process tech-nology, and automation, in conjunction with a fine instinct for practical mat-ters – plus close cooperation between research institutes, the food industry, and process and solution providers. Or-chestrating all these players requires a specialist, a person who is capable of traveling through this vast universe with the unerring instinct of a sleepwalker.

Who is taken seriously because of her knowledge and her experience. A per-son like Béatrice Conde. Much more than most people, she moves with an open spirit between these worlds, merg-ing and fusing them into new solutions which make foods safer.

In concrete terms, this means she trains customers and Bühler staff including the Executive Board, develops service offerings, advises engineers on hygienic design, initiates projects with universi-ties, delivers talks. She helps develop new processes, including the killing steps designed to destroy the harmful bacteria, and considers where optical high-performance sorters must be used to eliminate highly toxic mold. When she joined Bühler, the first question that many skeptical colleagues asked was: “Where is the money?” Or, in other words: “Do you suppose we can make any money with this?” Today, most of them have re-alized that food safety is not merely a tedious school assignment, but offers Bühler customers added value – and for Bühler it is a new and increasingly im-portant business field.

This is demonstrated by the hard re-sults that this cultural change has al-ready brought about – for example in mechanical engineering. When today’s Bühler machine designers, sensitized to the issue of food safety, develop dryers for breakfast cereals, chocolate refiners, grain flakers, or microfeeders, they do so with easy cleaning in mind to prevent food contamination. The commercial benefits that this produces are evidenced

by the Ceres dryer which was launched last year: the new machine cleans 75 % faster, doubles the operating time be-tween cleaning intervals together with improved hygiene.

Together with her team, Conde has now also developed complex solutions and is testing them in the field. Thus, Bühler today applies the newest scientific mold control knowledge to grain cleaning. The key to this resides in a smart combina-tion of mechanical cleaning, aspiration, and lightning-fast optical sorting of dis-crete kernels. The latest versions of the Sortex sorter are capable of examining thousands of kernels per second. This enables mold-infested batches of grain to be removed from the food chain at an early stage. Such solutions are already proving highly effective. “These are merely the first important steps,” says Conde. We will not have reached our goal before special-purpose solutions for maize (corn) and peanut processing are widely used in Africa. There, tens of thousands of people a year still fall victim to liver cancer – triggered by aflatoxin, the most toxic of all toxic molds.

For Bühler, this change in mindset comes at exactly the right time. Food safety is picking up speed, but the issue as yet is far from having reached its climax. Whether salmonella in nuts, non-de-clared allergens in chocolate, mycotox-ins in animal feeds, or metal splinters in breakfast cereals are involved – not a day passes without news about disease-in-ducing contaminated foods. The new on-line communications technology with its


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hitherto unknown speed and transpar-ency is ensuring that the new knowledge spreads in real time around the planet. “There are various reasons why a sharp focus is set on food safety today,” says Conde. The global trend toward urban-ization – associated with industrial-scale food production, more meals eaten away from home, convenience foods, and globally available products – have made the risk more acute.

Every fresh product recall encourages Bühler to forge ahead and find solutions, especially in connection with process validation. Have enough bacteria been killed in the thermal processing step? In the future, food producers will have to furnish more such proof. Béatrice Conde and a development team are therefore currently brooding over precisely this task. A new service is to make it easier to prove the effectiveness of the killing step in dry-foods processing with great-er reliability and completeness. The first two prototypes are currently being fitted to roasters at customers’ sites. If the solution is found to be viable, nut pro-cessing will in the future be as safe as milk sterilization is today.

This is how Béatrice Conde explores this vast terrain for Bühler and its customers, one step at a time. The world of food safety has become a new home to her. In our universal traveler, it arouses the long-ing for embarking on the next exploration trip. And she knows exactly where the journey will lead her: “After food safety comes feed safety,” says her navigation system.

“We must arrive at a much better understand-ing of the effects that common processes have on bacteria destruction.”

Béatrice Conde-Petit


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She speaks softly with a mild voice. Her conduct signals reserve. She is young and of delicate stature. And still she is not only an Assistant Miller in one of the world’s largest grain milling operations, Flour Mills of Nigeria – the boss of rug-ged men, telling them what to do and making sure they do it; she not only loves the grinding floors of the mills – the roller mills, purifiers and sifters, these “dancing sieve boxes”; and she is not only get-ting through a vocational training in the African Milling School of Bühler in Kenya.

First of all, Shidi Huzeinet is tough.

To assert herself as the only current woman holding a milling management position in this gigantic men’s organiza-tion, she has a few tricks up her sleeve. “Most people underestimate me and think I’m harmless.” But when she sends her boys scurrying across the plant on assignments, this is no laughing matter. Her eyes sparkle. “Then I put on my gov-erness’s face and talk plain language,” says Shidi. If someone stubbornly refus-es to toe the line, she has her own per-sonal way of responding: She fills out a form, suspending the offender from duty

for two days – without pay, of course. “Suspicion” is what she calls this – the wrongdoer has brought suspicion on himself. She then leaves the signed sheet lying for one hour in the Control Room for the whole team to see. “This usually solves the problem,” Shidi says, smiling.

She knows exactly what she wants. First, see the whole picture; then, tackle the matter head-on. This is her tried-and-true method. She wants to have tight control over the situation. She is full of energy, not allowing even the tiniest doubt to arise for even a millisecond that she is determined to achieve what she wants.

Shidi learned early on to organize herself. To realize that nothing was free. To find out that knowledge is crucial. She grew up in an extended Muslim family in the Nigeri-an city of Lagos with 7 brothers and 12 sisters from three mothers and one father, her mother being the youngest and the last wife. When her father died, she was just 15 years old. The family broke up and together with her twin sister, she moved to different places over and over again. Still, she managed to struggle through, qualifying with her good school grades

Self-Made WomanThis is the story of 27-year-old Shidi Huzeinat, who has lofty ambitions in the African grain milling industry and who, for this purpose, has acquired the necessary skills in the African Milling School in Nairobi, Kenya.

Shidi HuzeinatNairobi, Kenya

to enter the Lagos State Polytechnic to study Science Laboratory Technology and to graduate from the National Open University of Nigeria. In her no-nonsense manner, she had discovered her love of hands-on jobs: “I feel satisfied when I see the immediate results of a job as soon as it has been done,” says Shidi. One part of her university training includes an in-ternship in industry. A friend tells her that Flour Mills of Nigeria Plc is seeking em-ployees – this is her ticket to a manage-ment position in the grain milling industry, along with a world-class education at the new Bühler African Milling School.

“Wow” – on her first visit to the mega-mill in Apapa near Lagos, Shidi is over-whelmed. “Never in my whole life had I seen anything so gigantic,” she says. The company’s flagship mill comprises 16 in-tegrated milling lines. The plant has a rat-ed milling capacity of over 8,000 tonnes per day, making it one of the largest single-site mills in the world. In addition, the company maintains dedicated mills for processing different wheat varieties into different flour types. The Apapa Mill also boasts a modern bulk storage sys-tem holding 191,000 tonnes. Flour Mills of Nigeria Plc has been a loyal Bühler customer for decades.

In her job interview, it is made clear to her that the company is not looking for interns, but regular employees. In the mill, she smells and feels her opportunity. She says yes – and gets the job.

Nothing is free here, either. “That girl will not survive for a week,” murmur the men behind her back. She is soon offered the chance to move to the laboratory: however, they don’t know Shidi and with her tenacity, curiosity and willpower, she learns everything needed to run the flour mill. She stops anyone crossing her path to ask questions, absorbing the new knowledge. This is also how she asserts herself as a member of the management. She enjoys her supervisors’ undivided support. Flour Mills of Nigeria has de-cided to selectively employ women and to bring them into mill management positions. In the heat of Nigeria, Shidi is an icebreaker.

Then something incredible happens: On January 13, 2015, Shidi receives a phone call asking her to report without delay to the office of the Managing Director of FMN. “Have I done anything wrong?” she asks herself. But quite the opposite is true: She is told that together with a colleague she has been chosen to

“I had the urgent need to grasp how things work in our company and to see whether there was any-thing we might improve.”

Shidi Huzeinat


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attend a three-year vocational training course at the African Milling School in Nairobi of Bühler to become a flour mill-er, starting in March. To learn the craft from scratch; to master all aspects of the plant; to integrally comprehend grain and the grinding process; to optimally run a flour mill in terms of quality and efficiency.

The miller makes the difference. A proper-ly managed mill can achieve an up to 2 % higher yield while consuming up to 10 % less energy and producing higher-quality flour. Because modern equipment tech-nology is so sophisticated, millers need in-depth knowledge of how to control the processes in the best possible manner – after all, you cannot leave flying an A380 to a hobby pilot. With its milling schools and training centers, which it has estab-lished around the world since the fifties, Bühler imparts precisely this knowledge to its customers’ employees. Four years ago, Bühler decided to set up a voca-tional school modeled on the Swiss sys-tem of apprenticeship programs also in Africa, in order to help meet the rising demand for qualified staff in Africa with educated Africans. In February 2015, the African Milling School opened. Shidi Hu-zeinat is part of the first class to have completed this training.

And again, she is alone as a woman among men. And again, she absorbs every bit of knowledge that reaches her eyes and ears. And again, it is a lot. The aim of the program at Flour Mills of Nigeria was to train her to become an operator. Now she was learning the craft from scratch, without the pressures of round-the-clock operation in the back of her mind. Day in, day out, she has “aha” experiences because for the first time ever, she learns the theoretical un-derpinnings enabling her to understand how everything intermeshes.

For example, pre-cleaning: She took the raw material for granted that pass-es through the roller mills. Now she learns about the significance of carefully cleaned raw material and how grain can be prepared in the best possible way for the milling process. Following her first course in the African Milling School, she does not hesitate to go down to her com-pany’s storage silos and port. “I had the urgent need to grasp how things work in our company and to see whether there was anything we might improve,” says Shidi. There are many things that she learns, which she wishes to apply at Flour Mills of Nigeria: cleaning of the optical sorters; correct dampening of the

wheat before grinding; correct settings and adjustment of the roller mills, ash curve, laboratory analysis of the wheat and flour. All her tact is required to avoid being perceived as a school mistress, trying instead to convince the mills’ sea-soned operating teams. For this, too, she has devised a trick: “Why not try it this way,” she proposes. Disguised as a sim-ple suggestion, the knowledge transfer is successful almost every time and suc-cess is always the best proposition. After just a few months of training, this has won her respect: “When trouble used to crop up somewhere, I would be a simple onlooker. Now my colleagues call and ask me whether I know how to solve it.”

She speaks softly with a mild voice. Her conduct signals reserve. She is young and of delicate stature. She is a woman. Whoever knows her, believes her that the African Milling School is just a milestone on her road to becoming the manager of a flour mill someday.


Flour Mills of Nigeria PlcFlour Mills of Nigeria Plc is a public limited liability company and its shares are listed on the Nigerian Stock Exchange. In its 54-year history, Flour Mills has remained at the fore-front of wheat milling in Nigeria. The company’s flagship brand, Golden Penny, remains one of the best known brands amongst the bakers, confectioneries and consumers in Nigeria. Today, Flour Mills has a rated milling capacity of over 8,000 tonnes per day, making it one of the largest single site mills in the world. Flour Mills of Nigeria and Bühler have maintained a long lasting and solid partnership for more than 50 years. Bühler is the key supplier in Milling, Feed Milling and Grain Storage. The company’s flagship mill located in Apapa, Lagos comprises 16 integrated mills. But more to that, Bühler and Flour Mills of Nigeria have implemented a unique training program for mechanical and electrical maintenance staff as well as milling technologists. Flour Mills of Nigeria is a highly innovative company and in addition to Prime Flour, it has developed the Golden Penny Pasta as well as Golden Penny Noodles segments.

Governance

Group Structure

Board of Directors

Executive Board



Compliance

Remuneration Report

III

Governance Bühler Annual Report 2015

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Group StructureBühler follows international standards of corporate governance

As a non-listed, family-owned but economically significant company, Bühler has decided to give special attention to the design of its corporate governance. As a consequence, Bühler’s corporate governance goes far beyond the statutory require-ments of the Swiss Corporate Law and incorporates to a great extent the recommen-dations contained in the “Swiss Code of Best Practice for Corporate Governance” issued by economiesuisse.

Bühler’s Articles of Incorporation set material parameters of the corporate gover-nance system. The Articles of Incorporation are complemented by Bühler’s Organ-izational Regulations, which further specify the responsibilities, competences and regulations of the governing bodies of the Company.

Unless prescribed by law or the Articles of Incorporation, the management is dele-gated by the Board of Directors, with the power to sub-delegate to the Chief Execu-tive Officer, the Executive Board and its members. Separate Charters specify the organization of its two Board Committees.

The Board of Directors has also issued a Regulation governing the cooperation between the Board of Directors, the CEO / Executive Board and the Urs Bühler Innovation Fund.

Bühler remains a family-owned companyIn 2014, Urs Bühler transferred his shares in Bühler to his three daughters Karin, Maya and Jeannine Bühler, of whom each owns a third of the company. This change was based on long-term planning, effected with complete transparency and in agreement with the Board of Directors. For the new owners, continuity is the top priority as they want to build on the strengths and values of Bühler. They continue to maintain optimal general conditions for the company to operate in: a stable shareholder structure, a long-term orientation, steady company management which is not subject to the constraints of quarterly reporting – but nevertheless a management style pursuing business success. The three owners are organized as a family holding and have a clear and unified voice in relation to the company and within the Board of Directors, where they hold one seat on a rotating basis.


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1 Dr. Maya Bühler succeeded Karin Bühler as member of the Board on February 9, 2015.2 Clemens Blum was elected as a member of the Board of Directors of Bühler in December 2015. 3 Dipak Mane succeeded Christof Oswald as Chief Human Resources Officer as of July, 2015.4 Member of the extended Executive Board.

Grain Logistics

CEO GroupCalvin Grieder

Executive Board

Board of Directors

Business Areas

Regions

North America South America Europe

Calvin Grieder (Chairman)Peter Quadri (Vice-Chairman)Dr. Konrad HummlerJosef M. MüllerRuth Metzler-ArnoldKarin Bühler / Dr. Maya Bühler 1

Linda YangFrank N. J. BraekenClemens Blum 2

Grain Milling

CFO GroupAndreas R. Herzog

Consumer Foods

CEO Grains & FoodStefan Scheiber

Grinding & Dispersion

CEO Advanced MaterialsSamuel Schär

Urs Bühler Innovation FundUrs Bühler (Chairman)

Middle East & Africa

Value Nutrition

Asia PacificDieter Voegtli

Die Casting

Corporate TechnologyIan Roberts 4

Leybold Optics

Human ResourcesChristof Oswald 3, 4

Sortex & Rice

Manufacturing & LogisticsHolger Feldhege

South Asia Asia

Human ResourcesDipak Mane 3, 4


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Board of Directors

Top row from left to right: Peter Quadri, Linda Yang, Frank N. J. Braeken, Josef M. MüllerBottom row from left to right: Ruth Metzler-Arnold, Dr. Konrad Hummler, Dr. Maya Bühler, Calvin Grieder


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Frank N. J. Braeken(1960, Belgian)

Frank N. J. Braeken graduated with a degree in Law and holds an MBA degree in Finance from the University of Leuven (Belgium). He is an alumnus of the Wharton Executive Program, Penn University (Philadelphia / USA). In his pro-fessional career, he specialized in finance and in general management. From 1996 to 2013, he held various management functions in different countries for Unilever, including a position as Group Vice-President of Unilever China (Shang-hai), Executive Vice-President of Unilever Namca (Dubai), and Executive Vice-President of Unilever Africa (Dubai / Durban). Since 2013, Frank N. J. Braeken has acted as Chief Investment Officer of Amatheon Agri Holding (Berlin). He was elected to the Board of Directors of Bühler in 2014.

Clemens Blum 1

(1955, German)

Clemens Blum holds a degree in Electronic Engineering from Furtwangen University (Germany) and Business Management from Pforzheim University (Germany). After holding various positions in sales in different compa-nies, he joined Swiss Industrial Group (SIG) as sales director of SIG Positec Automation in 1992 and was nominated General Manager thereof in 1997. In 2000, Schneider Electric acquired the SIG Positec activities from SIG and Clemens Blum then held various higher positions within the Schneider Electric Group. As of July 2010, he is Executive Vice Presi-dent of the Industry Business. He is located in Foxborough (Massachusetts / USA). Clemens Blum was elected as a Member of the Board of Bühler in December 2015.

Dr. Maya Bühler 2

(1981, Swiss)

Dr. Maya Bühler studied Veterinary Science at the University of Zurich. After the completion of her studies, she held various positions in the horse surgery department of the animal hospital in Zurich and became a Veterinary Specialist for Horses (FVH) in 2012. At the be-ginning of 2013, she became the owner and managing director of the company Pferde-praxis Thurland in Uzwil. Dr. Maya Bühler was elected as a Member of the Board of Directors and Member of the Remuneration Committee of Bühler in February 2015.

Calvin Grieder(1955, Swiss)Chairman

After being raised in the USA, Calvin Grieder graduated in Process Engineering from the Swiss Federal Institute of Technology in Zurich

(ETH). He then held various management posi-tions in Swiss and German companies (Georg Fischer, Bürkert, Mikron, and SIG) in the fields of measurement and control, automation and engineering. In these functions, he was pri-marily responsible for successfully establish-ing and expanding international businesses. In 2001, Calvin Grieder moved from Swisscom to Bühler Group as CEO. As of February 2014, he is also Chairman of the Board of Directors. Furthermore, he is a member of the Board of the companies Implenia AG and Givaudan SA.

Dr. Konrad Hummler(1953, Swiss)

Dr. Konrad Hummler graduated in Law from the University of Zurich and in Economic Sci-ence from the USA University of Rochester. In the eighties, he acted as the personal as-sistant to the Chairman of the Board of Di-rectors of former UBS, Dr. Robert Holzach. From 1991 to 2012, he was Managing Partner with unlimited liability of Wegelin & Co. Private Bankers (St. Gallen). In addition to his bank activities, he was a member of the board of various companies, including Neue Zürcher Zeitung (NZZ), Swiss National Bank (SNB), or the German Stock Exchange. Since 2013, Dr. Konrad Hummler has headed M1 AG, a private think tank dealing with strategic issues of current interest. Dr. Konrad Hummler was appointed as a Member of the Board of Bühler in 2010. In addition, he is strongly committed to cultural and social projects.

Ruth Metzler-Arnold(1964, Swiss)

Ruth Metzler studied Law at the University of Freiburg i. Ue. and is a Federally Certified Auditor. From 1990 to 1999, she was active for PricewaterhouseCoopers in St. Gallen. In addition, she was a member of the Cantonal Government of Appenzell IR (Director of Fi-nance) during three years. From 1999 to 2003, she headed the Federal Department of Justice and Police as Swiss Federal Councilor. Ruth Metzler then held leading positions at Novartis and was a member of the board and of the audit committee of SIX Group. She is a partner in a consultancy firm, chairperson of the board of Switzerland Global Enterprise, a member of the board of AXA Winterthur, a member of the council of the University of St. Gallen, and as of the end of February 2015 respectively April 2015, a board member of Fehr Advice AG and chairperson of the board of Aquila & Co. AG. Until May 2015, she was also a member of the board of the Hospital Association AR. Ruth Metzler was elected as a Member of the Board of Bühler in December 2011 and as Chairwoman of the Audit Committee in February 2014.

Josef M. Müller(1947, Swiss)

Josef M. Müller holds a degree in Business Administration. He joined the Nestlé Group in 1972, with subsequent assignments in Swit-zerland, Europe, the USA, and South Africa. Furthermore, he then spent several years as a Sales and Marketing Manager in the Far East. From 1992 to 1995, he headed Nestlé Pakistan and from 1995 to 1998 Nestlé Korea. In mid-1998, Josef M. Müller took charge of Nestlé China, and from mid-2000 to 2007 of the Nestlé Greater China Region. Josef M. Müller has been a Member of the Board of Bühler since 2007. He has served as President of Promar-ca, the Swiss Association of Branded Goods (Schweizerischer Markenartikelverband), since 2010. He is also a member of the board of Crown Holdings Inc. (Philadelphia / USA) and of Packages Ltd. (Lahore / Pakistan).

Peter Quadri(1945, Swiss)Vice-Chairman

Peter Quadri graduated in 1969 in Economics and Business Administration from the Universi-ty of Zurich as lic. oec. publ. In 1970, he joined IBM as a systems engineer and specialist for software and operating systems. Following var-ious positions in the USA, Denmark, and Swit-zerland, he was president of the management board of IBM Switzerland from 1998 to April 2006. Peter Quadri was appointed as a Mem-ber of the Board of Bühler in 2006 and has been its Vice-Chairman (since 2014) and Chairman of the Remuneration Committee. He is also Chairman of the Board of TriplEat Holding AG, a member of the board of Run my Accounts AG and of Investiere (Verve Capital Partners AG) as well as advisor of the Quadriga Senior Executive Board. Until April 2015, Peter Quadri was also a member of the board of Vontobel Holding AG.

Linda Yang(1971, Chinese)

Linda Yang holds one Bachelor degree each in Mathematics and Business / Finance from the Nan Kai University (Tianjin, China). She attend-ed an Executive MBA program at the China Europe International Business School (CEIBS). Following various assignments in China in the fields of research, consulting, and marketing, at companies such as at Procter & Gamble (China) Ltd., she acted from 2001 to 2004 for Nestlé (China) Ltd. as Head of Consumer Insight. Since then she has been the General Manager of BSI (Tianjin) Foods Co. Ltd., a subsidiary of Saven-cia Fromage & Dairy (previously known as Bon-grain SA). Thanks to her experience and train-ing, Linda Yang has a proven understanding of the Chinese market. She has been a Member of the Bühler Board of Directors since 2014.

1 Clemens Blum was elected as a member of the Board of Directors of Bühler in December 2015. He does not appear in the picture (left).2 Dr. Maya Bühler succeeded Karin Bühler as member of the Board on February 9, 2015.


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Executive Board

Dipak Mane, Andreas R. Herzog, Samuel Schär, Ian Roberts, Calvin Grieder, Stefan Scheiber, Holger Feldhege, Dieter Voegtli (from left to right)


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1 Dipak Mane succeeded Christof Oswald as Chief Human Resources Officer as of July, 2015.2 Member of the extended Executive Board.

Calvin Grieder(1955, Swiss)Chief Executive Officer

After being raised in the USA, Calvin Grieder graduated in Process Engineering from the Swiss Federal Institute of Technology in Zurich (ETH). He then held various management posi-tions in Swiss and German companies (Georg Fischer, Bürkert, Mikron, and SIG) in the fields of measurement and control, automation and engineering. In these functions, he was pri-marily responsible for successfully establish-ing and expanding international businesses. In 2001, Calvin Grieder moved from Swisscom to Bühler Group as CEO. As of February 2014, he is also Chairman of the Board of Directors. Furthermore, he is a member of the Board of the companies Implenia AG and Givaudan SA.

Andreas R. Herzog(1957, Swiss)Chief Financial Officer

After graduating in Business Administration, Andreas R. Herzog continued his studies in various postgraduate courses in marketing and finance management at business schools in France, Canada, and the USA. He occu-pied management positions at Ciba- Geigy, Swatch and Swarovski. During his profes-sional career he has worked in Switzerland, Mexico, Colombia, Ivory Coast and Germany. Andreas R. Herzog has been CFO of Bühler Group since 2002. Outside of Bühler he is a member of the board of CCS Holding AG, Leicom AG and the advisory board of Com-merzbank in Germany. As of May 2015, he is also a member of the board of Bertrams AG.

Dieter Voegtli(1958, Swiss)Head of Region Asia

Dieter Voegtli is a Mechanical Engineer (Swiss Federal Institute of Technology in Zurich, ETH) by training and holds an MBA from INSEAD. He started his career in global power plant commissioning and as a Software Develop-ment Manager for ABB. Following that, he worked for eight years as Technical Director of Roche China Ltd. Dieter Voegtli has been President of Bühler Group China and Asia Pacific since 2009, after serving as President of Bühler China since 2004.

Stefan Scheiber(1965, Swiss)Chief Executive Officer Grains & Food

Stefan Scheiber graduated in Business Ad-ministration from the University of Applied Science in St. Gallen and later continued his education at the Institute IMD Lausanne and other institutes. From 1988, he worked for 15 years in various management positions abroad, including East and South Africa, Eastern Europe and Germany. In 1999, he took charge of the global organization of the Brewing and Rice business units and then as-sumed overall responsibility for Bühler Ger-many. From mid-2005, Stefan Scheiber head-ed the Sales & Services division as a Member of the Executive Board. He has been in charge of the Food Processing division since 2009, which he merged with the Grain Processing division in 2014, and has since managed both as CEO of Grains & Food.

Samuel Schär(1975, Swiss)Chief Executive Officer Advanced Materials

After obtaining a diploma as a Physics Engi-neer from the Swiss Federal Institute of Tech-nology in Lausanne (EPFL) and accumulating three years of experience with the consul-tancy McKinsey, he joined Bühler in 2002, where he took charge of the Nanotechnology business unit in 2005. From 2009 to 2013, he bore overall responsibility for the Grind-ing & Dispersion business area, into which he integrated the Nanotechnology business unit. He has headed the Advanced Materials business since 2013 and was appointed CEO of Advanced Materials as of September 2014.

Holger Feldhege(1968, German)Head of Manufacturing & Logistics

Holger Feldhege graduated in Business Administration and holds a PhD in Production Management. He has extensive experience in production, engineering, and logistics. For the past 13 years, he worked at ThyssenK-rupp Elevator, spending more than seven years in Asia. Upon returning to Germany in 2010, Holger Feldhege took on the position of CEO Manufacturing for Central, Eastern, and Northern Europe and later Senior Vice-Pres-ident Manufacturing Elevator for the world-wide group. In 2014, Holger Feldhege joined Bühler as Head of Manufacturing & Logistics.

Ian Roberts 2

(1970, British)Chief Technology Officer

He graduated in Chemical Engineering and obtained a PhD in Process Engineering from the University of Wales (Great Britain). From 1997 to 2009, he held various management positions at Nestlé, acting among other posi-tions as internal Management Consultant at Swiss headquarters, as Director of Innova-tion for Nestlé Mexico, and as Director of the Chocolate Centre of Excellence in Switzer-land. He has been Chief Technology Officer at Bühler since 2010. Furthermore, he is on the board of the academic institutions Wyss Institute, UNITECH and IFNC-EPFL.

Dipak Mane 1, 2

(1960, Indian)Chief Human Resources Officer

After completing his studies in Chemical Engineering at the Indian Institute of Technol-ogy, Dipak Mane worked in India for several years as an engineer in various positions. He joined Bühler India in 1992 as one of the first local employees. Step by step he built Bühler India, starting in 2000 as Managing Director and continuing from 2010 onward as Head of Region South Asia. In July 2015, he assumed the position of Chief Human Resources Offi-cer from Christof Oswald and replaced him as a Member of the extended Executive Board.

Christof Oswald 1

(1961, Swiss)Chief Human Resources OfficerSwitzerland

After completing his apprenticeship at Bühler, Christof Oswald continued his education in commerce and held various functions in development and customer projects for all divisions. In the course of this activity, he acquired broad management experience, which he continuously deepened as Infor-mation Technology Project Manager and Controlling Unit Manager. From 1993 to 2005, Christof Oswald was the Commercial Manager of the Manufacturing & Logistics division. He has headed Corporate Human Resources from 2006 through 2015 and since July 2015, he is Head of Human Resources Switzerland. Furthermore, he is Chairman of the Raiffeisenbank Regio Uzwil and com-mittee member of the Retirement Fund of Raiffeisen Switzerland.


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Urs Bühler(1943, Swiss)Chairman

Urs Bühler graduated as a mechanical engi-neer from the Swiss Federal Institute of Tech-nology in Zurich (ETH). After holding a number of positions in Switzerland and abroad, he was appointed to the Corporate Management of Bühler AG in 1975, in charge of sales and development. From 1980 to 1984, he was President of Bühler GmbH, Braunschweig (Germany). In 1986, Urs Bühler was appointed CEO of Bühler in Uzwil. He handed over the executive management duties of the compa-ny to Calvin Grieder at the beginning of 2001. Urs Bühler has been a Member of the Board since 1981, from 1991 as its Vice-Chairman and from 1994 to 2014 as its Chairman. He was a member of the board of several Swiss companies.

Hal Gurley(1955, Swiss and American) Managing Director, Service Management Solutions, Cisco Systems (Switzerland) GmbH

Hal Gurley holds Bachelor’s and Master’s degrees in Electrical Engineering from the Georgia Institute of Technology (USA), and an executive MBA from the Institute IMD (Switzerland). Before moving to Switzerland in 1995, Gurley was President and Founder of Automation Intelligence, an advanced sys-tems integration and software development firm based in the USA specializing in realtime communications and control systems for industrial, robotic, and military applications. Prior to joining Cisco in 2000, Gurley was Director Internet / IP at Swisscom. Before he moved into a global sales role in 2013, Gurley worked for over ten years in Cisco’s management and strategy consulting or-ganization, engaging with service provider customer executives to accelerate business success using internet and cloud technolo-gies for a competitive advantage. In his global sales leadership role, Hal Gurley is responsi-ble for Cisco’s Cloud / Network Management and Automation software portfolio and go-to-market execution. He also serves as sole Managing Director and legal representative of Cisco Systems (Switzerland) GmbH.

Dr. Matthias Kaiserswerth(1956, Swiss and German) Managing Director, Hasler Stiftung, Berne

Dr. Matthias Kaiserswerth studied Com-puter Science at the Friedrich-Alexander University in Erlangen-Nuremberg (Germany) and at McGill University in Montreal (Can-ada). He obtained his PhD in Engineering from Erlangen University. From 1988 to 2015 Dr. Kaisers werth worked for IBM. He has spent almost his entire career as a research-er in the areas of high-performing commu-nication and security in Switzerland and the USA apart from mid-2002 to the end of 2005, when he was responsible for the global IBM business relations with a large international industrial customer. For eleven years Mat-thias Kaiserswerth was Director of the IBM Research Laboratory in Rüschlikon (Swit-zerland) until he became Managing Director of the non-profit Hasler Stiftung in Berne, in May 2015. This foundation supports educa-tion, research, and innovation in information and communication technologies. Dr. Kaiser-swerth is member of the Federal Commission for Technology and Innovation.



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Edward S. Steinfeld(1966, American)Professor of Political Science; Director, Thomas J. Watson, Jr. Institute for International and Public Affairs, Brown University

Edward S. Steinfeld studied Government and Political Science at Harvard University (USA) and holds a PhD in Political Science. From 1996 to 2013, Steinfeld was a professor of Political Economy and Management at the Massachusetts Institute of Technology (USA). He also served as a visiting scholar at the Tsinghua University School of Public Policy and Management in Beijing from 2012 to 2013. From 2005 to 2013, he was Director of the China Energy Program at the MIT Indus-trial Performance Center. In 2013, Steinfeld moved to Brown University (USA), where he currently directs the Watson Institute for In-ternational and Public Affairs as well as the Brown China Initiative and is a Professor of the Department of Political Science. Beside his university engagement, Edward Steinfeld is a member of various boards of directors, academic and advisory boards in the USA, Asia, and Europe. In 2012, he was appointed as a Member of the China Advisory Board of Bühler Group.

Ian Roberts(1970, British)Chief Technology Officer

Ian Roberts graduated in Chemical Engineer-ing and obtained a PhD in Process Engineer-ing from the University of Wales (Great Britain). From 1997 to 2009, he held various manage-ment positions at Nestlé, acting among other positions as internal Management Consultant at Swiss headquarters, as Director of Inno-vation for Nestlé Mexico, and as Director of the Chocolate Centre of Excellence in Swit-zerland. He has been Chief Technology Of-ficer at Bühler since 2010. Furthermore, he is a member of the board of the academic institutions Wyss Institute, UNITECH and IFNC-EPFL.

Urs Bühler Innovation Fund

The Urs Bühler Innovation Fund (UBIF) was established in 2014 to support the company’s innovation efforts. Bühler invests roughly 5 % of its turnover in research & development every year – developing breakthrough technologies and services to strengthen Bühler’s market position as well as exploiting new opportunities to stay ahead of the innovation curve. The Advisory Board, managing the UBIF, focuses on accel-erating the innovation process within the company as well as on its advance-ments in the field of Internet of Things.


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Permitted external activities of the Board of Directors and the Executive BoardBühler’s Articles of Incorporation provide for a certain restriction of the permit-ted external activities of the members of the Board of Directors. Members of the Board of Directors may not hold more than four additional mandates in listed companies, eight additional mandates against remuneration in unlisted compa-nies and eight unpaid additional mandates. Not included in these limitations are mandates in companies affiliated with Bühler, corporate mandates of Bühler and mandates in associations, foundations, employee welfare foundations, charitable organizations and other comparable structures. However, no Board member shall hold more than twenty such additional mandates. Mandates refers to mandates in the supreme governing body of a legal entity registered in the commercial regis-ter in Switzerland or elsewhere. Members of the Executive Board are limited to two mandates at public companies or other legal entities against remuneration and four unpaid mandates.

Elections and term of office of the Board of DirectorsBühler’s Articles of Incorporation provide for the annual election by the General As-sembly of all Board members, its Chairman, and the members of its Remuneration Committee. Term of office shall be one year, starting with the General Assembly at which each individual member is elected and ending with the next following General Assembly. The members of the Audit Committee are annually elected by the Board of Directors.

Election date and attendance For the dates of first election to the Board of Directors, please refer to the individual curriculum vitae of each Board member on page 69. At the General Assembly, the Board of Directors gives account to the shareholders on the attendance of Board and Committee meetings by each individual Board member.

Audit CommitteeThe Audit Committee shall monitor the integrity of the financial statements of the Company, including its annual report. It promotes effective communication between management, internal and external audit.

The Audit Committee regularly reviews the functionality and effectiveness of the inter-nal control system. It supports the Board of Directors in corporate governance issues.

Remuneration CommitteeThe Remuneration Committee determines and agrees with the Board of Directors on the policy for the remuneration of the members of the Board of Directors and of the Executive Board. It approves the design of, and determines targets for any per-formance-related compensation schemes operated by the Company and approves the total annual payments made under such schemes. Within the parameters of the agreed policy the Remuneration Committee determines the total individual remuner-ation package for each member of the Board of Directors as well as of the Executive Board and prepares the remuneration report.


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Work method of the Board of Directors and its committeesBoard meetings are held as often as matters require or upon the request of a Board member, but at least four times per year. The agenda of the meeting shall be announced when it is convened and pertinent information, if needed, shall be sent in good time to each Board member. On unannounced items the Board can only decide if all members of the Board are in attendance. Decisions may also be taken by circulation, provided that none of the Board members request a formal meeting.

Meetings of the Board Committees are convened separate from the Board meetings and scheduled as often as business requires. The Board of Directors receives verbal updates after each meeting of its Committees by their Chairperson.

Areas of responsibilitiesThe Board of Directors is responsible for the ultimate direction, strategic supervi-sion and control of the management of the Company, and for other matters which are, by law, under its responsibility. Such inalienable duties include, essentially, (i) the ultimate management of the Company, (ii) the determination of its organization, (iii) the structuring of its accounting system and of the financial controlling, (iv) financial planning, (v) the appointment, removal and ultimate supervision of persons entrust-ed with the management and representation of the Company, (vi) the preparation of the business report as well as the General Assembly and the implementation of its resolutions.

Executive BoardThe Executive Board is responsible for all areas of operational management of the Company which are not reserved to the Board of Directors. The Executive Board is chaired by the Chief Executive Officer.

Urs Bühler Innovation Fund (UBIF)The Advisory Board of the Urs Bühler Innovation Fund supports and advises the Board of Directors in innovation strategy matters as well as in defining and executing an innovation strategy that provides future-oriented answers to market trends and the needs of current and future customers.

External auditorsThe external auditors are appointed at the General Assembly and present the out-come of the audit to the Audit Committee.


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Effective corporate governanceEffective corporate governance is a precondition for Bühler to ensure a long-term and sustainable increase of its corporate value. We base this both on the Swiss Code of Best Practice for Corporate Governance and the OECD Principles of Corporate Governance. Corporate governance at Bühler is organized with the interests of its stakeholders in mind, including customers, employees, suppliers, and public com-munities. They also comprise compliance with environmental and social standards as well as an uncompromising commitment to financial integrity. As an international Swiss company, strict observation of local laws on a global scale and systematic and continuous monitoring of compliance in all markets are indispensable for Bühler. This is the only way to prevent operating risks and an impairment of reputation which might be caused by violation of compliance rules.

An active Code of ConductThe Code of Conduct is part of the so-called “Bühler Essentials”. It serves all em-ployees as a beacon showing them how to live the Group’s core corporate principles (Trust, Respect, Recognition, Involvement, and Passion) in their day-to-day jobs. It states what is expected of employees and business partners, defines the standards governing compliance with laws and regulations, and includes the fundamentals of communications, employee rights, health and safety, and financial integrity.

Bühler regularly reviews its own principles of corporate governance to ensure that they are up to date. Our Code of Conduct has been reviewed and now also includes binding standards for our business partners. The Code of Conduct is being con-tinously adjusted to ongoing changes in the environment.

Clear rules against corruption and briberyThe so-called ABC (Anti Bribery & Corruption) rules against bribery and corruption unmistakably state that no violations will be tolerated. They concern in particular col-laboration with agents. It is mandatory for all employees in procurement, sales, and management functions to undergo a comprehensive online training program (Web Based Training, WBT) after they have joined the company and to pass a final test.

New compliance organization structure proves its effectivenessBühler further decentralized the organizational structure of its compliance function in 2014. Since then, a regional compliance officer has acted as the first contact in eight Bühler regions, except for compliance cases involving special risks, which continue to be handled directly by the Compliance Board. This decentralization has greatly streamlined and accelerated the related processes. This is also because linguistic barriers have been eliminated and the regional compliance officers are familiar with the local regulations and conditions.

Compliance


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Redesigned compliance reportingIn the course of the reorganization of the compliance function, also the reporting pro-cess was redesigned. Clear accountability and defined actions ensure that compli-ance-related incidents are systematically reported to the central Compliance Board. This transparency is a precondition for ensuring that the company can gain the ne-cessary insight from such incidents and take the required measures in response. We are happy to report that the awareness of the benefits of a transparent compliance reporting system have become increasingly acknowledged.

Trade complianceThe newly set up Trade Compliance Manager function shall ensure that the goods exported out of Switzerland in the context of free-trade agreements are correctly declared and cleared through customs. This function became necessary as the complexity of customs formalities has increased drastically due to the numerous cross-border purchases of goods and services.

Group Internal AuditGroup Internal Audit regularly and systematically reviews processes within the company. During the audits of the entities, Internal Audit also verifies worldwide implementation of our Code of Conduct.

A further focus on anti-corruption and anti-bribery audits in 2014 was carried out on the basis of updated audit procedures. In countries considered at risk, auditors interview the local management to determine how to approach and address business ethic issues. A special focus in the audit procedures is set on agency agreements and travel. Group Internal Audit also examines the effectiveness of internal controls for preventing corruption such as the four-eyes principle or segregation of duties.

In addition, Group Internal Audit is responsible for investigating suspected violations of our Code of Conduct or fraud.

Risk managementBühler reviews the risk geography of the Company on a regular basis. It has established an internal risk management process in order to manage, control, and contain identified risks. This process is under the responsibility of the Board of Directors.


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Recruit, develop and alignBühler practices excellence in Human Resources, to motivate and develop its employees and in order to achieve the Bühler mission. The company wants to establish itself, as the best in class for employee development, across the entire career span of its people. The Remuneration Policies are designed with this purpose in mind.

1 Remuneration governance

a) OverviewThe Members of the Remuneration Committee (RC) are elected by the General Assembly. The Board of Directors (BoD) appoints the Chairman from among the elected members. The RC supports the BoD in the remuneration issues defined here, with responsibilities being retained by the BoD. The RC is in charge of defining and periodically reviewing the Remuneration Policy. It prepares all the relevant decisions of the BoD in the area of remuneration, for the Members of the BoD, Members of the Executive Board (EB), and submits its proposals (remuneration type and annual remuneration) to the BoD. In addition, it submits proposals to the BoD defining the an-nual goals for success and performance related remuneration, and then defines the circle of potential recipients of this success and performance related remuneration.

b) Remuneration CommitteeFor the year under review, the members of the RC were Peter Quadri (Chairman), Dr. Konrad Hummler, and Dr. Maya Bühler. Permanent guests were the CEO and the Head of Corporate HR. External Advisors were invited relevant to individual agenda items. Four meetings were held. The RC Chairman reported to the BoD after each meeting and the minutes were kept and distributed in a timely manner.

c) Authority chart

SUBJECT RECOMMENDATION FINAL APPROVAL

Definition of Remuneration System and Policy for remuneration paid to the Board of Directors and the Executive Board

RC Board of Directors

Development of variable remuneration schemes plus approval of all annually paid performance-related remuneration at Bühler Group

RC Board of Directors

Definition of individual remuneration, including bonus, variable portion, shares- related remuneration, etc., to the Executive Board and the Board of Directors

RC Board of DirectorsGeneral Assembly

Remuneration Report


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2 Remuneration principles

Bühler is committed to performance and market related remuneration. Success as a result of sound individual performance plus the success of the Organization will impact the remuneration.

All employees, including the Executive Board, shall undergo a formalized annual performance appraisal process (EPM – Employee Performance Management). The Individual Performance Goals are defined and agreed upon jointly with each em-ployee at the start of the fiscal year. The financial success of the organization, which is measured on the basis of EBIT, also impacts performance related remuneration.

Principles of remuneration policy:

Fairness, consistency, and transparency

The remuneration schemes shall be simple, clearly structured, and transparent. They give consideration to the responsibilities and powers of the individual functions, thereby ensuring fair remuneration at all levels.

Performance-related remuneration

Variable remuneration is directly tied to the success of Bühler (EBIT) and to individual performance (EPM).

Long-term success sharing

Part of the remuneration of the Executive Board shall be paid in the form of blocked phantom options in order to ensure long-term sharing in the success of Bühler.

Orientation toward the labor market

In order to attract and retain talent, qualified and dedicated management staff and employees, remuneration shall be oriented toward the market environment and be regularly subjected to benchmarking.

Bühler values: TRRIP

The remuneration policy is oriented toward the Bühler values of TRRIP (Trust, Recognition, Respect, Involvement, Passion). These values are incorporated in the above-mentioned principles and determine the “Bühler way of doing business” in all respects.


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3 Remuneration elements

Overall remuneration model for employees and the Executive Board:

INSTRUMENT PURPOSE INFLUENCING FACTORS

Fixed annual basic salary

Monthly cash remuneration

Regular, predictable remuneration for the specific function

Sphere of work, complexity, and responsibility of the function, competen-cies, and experience of the function owner, benchmarks

Performance- related variable portion

Annual cash remuneration

Remuneration for performance

Success of the organization (EBIT) and individual per-formance (EPM) on an annual basis

Deferred compen-sation plan

Deferred compen-sation plan with a vesting period of 3 years

Sharing in long-term success

Hierarchical position of the function within the organization

Other employee benefits

Pension and insur-ance schemes; other fringe benefits

Protection against risks and coverage of expenses

Local legislation and market practice


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4 Remuneration of the Board of Directors

The members of the Board of Directors shall receive a fixed cash payment and be remunerated as Committee Members (if applicable).

OFFICE

Basic remuneration

Membership in the Board of Directors

Additional remuneration

Chairmanship of the Board of DirectorsVice-Chairmanship of the Board of Directors

Chairmanship of the Audit CommitteeActivity in the Audit Committee

Chairmanship of the Remuneration CommitteeActivity in the Remuneration Committee

Other Committee Chairmanship / MembershipsOther activities

Expenses Only expenses incurred are reimbursed

5 Remuneration of the Executive Board

The Members of the Executive Board shall receive a basic salary, a variable cash remuneration portion, employer contributions to pension funds and social security institutions, and long-term remuneration in the form of a deferred compensation plan with a vesting period of 3 years. In addition, the remuneration package also includes transportation and housing allowance plus a life insurance premium.

Sustainability Bühler Annual Report 2015

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Sustainability

Overview

Ecological Sustainabilty

Social Sustainabilty

Economic Sustainabilty

GRI G4 Content Index


IV


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Sustainability Report

Practiced EverydayAn independent and sustainable business policy is at the core of the success story of Bühler,

which has been in the making for more than 150 years. We strive to continuously improve our products and services in order to generate sustainable added value for

our customers. In this effort, we give great consideration to the ecological, economic, and social impact of our activities. By defining clear and quantifiable goals,

we aim at helping to gradually improve the quality of life and the environment.

Our sustainability concept with its promises and goals supports us in this effort and provides transparency for all stakeholder groups. Our Sustainability Report testifies

to our progress and also serves as a beacon for meeting current and future challenges. It shows where action is needed, documents improvements, and allows us to learn

from one another on the basis of best practices.


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Ecological sustainability

Energy consumption of our plant and equipment in operation at our customers’ sites accounts for a large share of the total burden on the environment. We have therefore set ourselves the goal of reducing both the ecological footprint of our own sites and that of our cus-tomers along their value chains. It is our declared goal to become the leader in these capabilities and to set the standard for products that spare resources. This enables us to make a substantial con-tribution to creating sustainable value chains. The reduction of the ecological footprint therefore goes hand in hand with new technologies for resource- saving production of healthy and nutri-tious foods, cost reductions, productiv-ity gains, and reduction of food losses and waste.

Our process technologies in die casting, dispersion and surface coating help im-prove sustainable mobility and the ener-gy efficiency of buildings.

Social sustainability

Motivated, carefully trained employees and dedicated management staff are key to our success, based on a corpo-rate culture that fosters personal initiative and responsibility. Bühler is committed at all levels to the training and continued education of its employees. As a global organization, Bühler considers the cul-tural diversity of its employees to be one of its major strengths. This is reflected in its efforts to fill also management-level positions with local candidates when-ever possible. All employees have equal rights, regardless of their origin, nation-ality, religion, or gender.

Sustainability for us also means our pre-paredness to engage in partnerships. We are continuously expanding our innovation network by closely engaging ever more with academia, with our cus-tomers, and with suppliers. In collabora-tion with international organizations, we are committed to improving the living conditions and the education of people in all the markets we operate.

Economic sustainability

Sustainable business success is a pre-condition for Bühler to meet the eco-logical and social expectations that are placed on our organization. We deliber-ately define long-term profitability targets, so as to secure our independence and freedom. It is important to us to ensure that all our market regions benefit from our value generation.

OverviewSustainability based on three pillars

Ecological Social Economic

Food Security, Safety & Nutrition

Health & Safety

Long-Term Profitability

Resource Efficiency Culture of Continuous Learning

Corporate Governance

Environmental Footprint of Our Sites

Fair & Equal Treatment

Contribution to Local Economies

Bühler materiality aspects


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Since 2013, we have decided to em-brace the Guidelines of the Global Re-porting Initiative to measure and report the impact of our sustainability strategy. We firmly believe that the transparent assessment of our progress will guide us to improve our sustainability commit-ments and hence our overall business performance. We are therefore commit-ted to communicating relevant and accu-rate information to our stakeholders, and to improving the quality of our reporting year for year.

In our first step in 2013, we defined the most relevant economic, ecological and social aspects of our sustainability strategy through an internal assessment according to the GRI Guideline (G3.1, Level C), and identified 19 indicators, which were used to measure our perfor-mance at our 5 major company sites. In a second step in 2014, this approach was strengthened by extending it to 11 sites.

In 2015 our sustainability reporting has been completely revised and upgrad-ed following the latest standards of the GRI G4, thus setting a major milestone in our reporting approach. This process included the complete review of the sus-tainability aspects that matter most to our stakeholders and to our company (cp. Materiality Analysis next column). Every year, our materiality analysis and our sustainability indicators will be reviewed and extended referring to the guidelines of the Global Reporting Initiative.

Materiality analysis: What matters most to us and our stakeholdersOur stakeholders are primarily our employees and customers as well as suppliers and other business partners, academia, the communities in which we operate, regulatory authorities, gov-ernments and not-for-profit organiza-tions, and our employees as our major stakeholders.

To identify the topics that affect our stakeholders and that are particularly relevant to our long-term success, we have conducted an intensive review of our materiality analysis at the corporate level by including all the key corporate functions that are representative of our stakeholders’ opinions, as well as external experts from academia and the private sector. The result is a portfolio of 9 materiality aspects. The progress of our initiatives relative to the materiality aspects is measured through a revised set of 37 indicators, which are aligned with our long-term business strategy and are reported in a quantitative form. Also, most of the indicators reflect the cumulative performance of all company sites. These indicators are derived from the “Core” application level of the GRI G4 guidelines, but we also report a number of additional indicators, which are spe-cifically relevant to our business.

We want to further strengthen our en-gagement and focus at a global and local level on the aspects most relevant to us and our stakeholders.

Reporting in alignment with GRI-standards

Transparent reporting in line with the latest Guidelines of the Global Reporting Initiative (GRI)


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Ecological Sustainability

1 Solutions for reducing food losses along the value chain

Less food lossesThe solutions developed by Bühler for eliminating fungal toxins at an early stage reduce grain losses during processing. Gen-tle drying and processing of rice and corn (maize) also help minimize losses.

In cooperation with universities and partners such as the World Economic Forum, the Clinton Foundation, the Bill and Melinda Gates Foundation, or Partners in Food Solutions, Bühler seeks to develop solutions suitable for reducing food losses along the entire value chain.

Food safetyThe improvement of food safety is one of the main objectives of our Research & Development efforts. The focus in this is on developing processes for reducing contamination, for ex-ample, by mold toxins. According to information published by the FAO, about 25 % of all vegetable raw commodities are infested by mold. Some of them form mycotoxins, which are toxic for humans and animals alike. Highly toxic mycotoxins

such as aflatoxin have since recently also been encountered in northern latitudes, after occurring especially in the tropics up to now. Part of this is to be blamed on climate change. Early and selective cleaning of the grain and separation of individ-ual mold-infested kernels by sorting technology ensure that these health-impairing substances are removed from the food chain. A combination of mechanical cleaning, aspiration, and optical sorting using Sortex technology enables the mycotoxin contamination levels to be substantially reduced. Advanced cleaning of grain significantly contributes to increasing food and feed safety. Another focus is on hygienic plant and equip-ment design. Hygienic design was a core element in roughly half of all the projects handled by the business Grains & Food in 2015. The aim is to develop solutions that maximize sanitation while at the same time improving production efficiency, for in-stance by reducing cleaning times and reject rates. Ceres, the new breakfast cereals dryer, meets top sanitation requirements while at the same time ensuring much more efficient cleaning.

Developing competenciesBühler has set itself the goal of increasing its in-house food safety know-how. For this purpose, about half of all training events worldwide revolved around the subject of food safety and technology, some in collaboration with customers. This

MATERIALITY ASPECT OUR COMMITTMENTS NOTES SUSTAINABILITY GOALS KEY PERFORMANCE INDICATOR GRI G4 ALIGNMENT ACTUAL 2015 TARGET

Food Security, Safety and Nutrition We set the standards for the reduction of food losses and for safe and healthy foods.

1 We continuously improve our solutions for safe and healthy foods.

Percentage of food-relevant R & D projects with focus on improving food safety. G4-PR1 28 % 50 %

Number of employees in key positions to receive training in food safety within 2016. Additional (related to G4-PR1) 498 600

Percentage of food-relevant R & D projects with focus on improving nutrition. Additional (related to G4-PR1) 8 % 20 %

Resource Efficiency We set the standards for resource-efficient solutions.

2 We continuously improve our solutions for resource efficiency.

Percentage of R & D projects with focus on improving energy efficiency per ton of end product or finished unit.

G4-EN27, Additional (related to G4-EN6, G4-EN7)

24 % 70 %

Percentage of R & D projects with focus on improving product yield. G4-EN27 22 % 50 %

Environmental Footprint of Our Sites We reduce the environmental footprint of our sites world-wide.

3 We reduce energy and water consumption as well as CO2 emissions and waste.

Percentage of reduction of energy consumption relative to product hours y/y.

G4-EN3/EN6 8.2 % 5 %

Percentage of reduction of CO2 equivalents relative to product hours y/y.

G4-EN15 4.9 % 5 %

Percentage of reduction of water consumption relative to product hours y/y.

G4-EN8/EN10 9.5 % 5 %

Percentage of reduction of waste relative to product hours y/y. G4-EN23 − 41.4 % 5 %

Percentage of reduction of hazardous waste relative to product hours y/y.

G4-EN23 − 4.9 % 5 %

We ensure environmental compliance in our supply chain.

Percentage of top suppliers that have qualified for Bühler QEHS standards (certified for ISO 9001, ISO 14001, OHSAS 18001).

G4-EN32 Rollout ongoing 100 %


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has enabled us to firmly position this subject at the manage-ment level, as well as to introduce it in development efforts and in sales. The issue of food safety will also be increasingly integrated in existing training modules for customers.

Healthy foodsIn 25 % of the research projects of the business Grains & Food, the focus in 2015 was on food quality. Here, Bühler also co-operates with customers and partners in seeking solutions to help improve nutrition. This includes process technologies for developing and processing new protein sources such as pulses and algae. On the other hand, Bühler helps prevent deficiencies in humans and animals with its new microfeeder systems for highly accurate addition of minute quantities of micronutrients such as vitamins and trace elements to basic foods such as flour and to animal feed.

Healthy pulsesPulses are particularly apt to help improve the global food situation, especially to cover the protein requirements on the basis of sustainable vegetable sources. The Pulse Partnership Task Force brings the representatives of the global food value chain together around a table. Solutions aim at increasing con-sumption of pulses and developing suitable technologies for

processing pulses into attractive foods. Bühler in its capacity as a process technology provider along the entire processing chain and its strong presence in regions with high consump-tion of pulses, such as India, is in an outstanding position to contribute much of experience to this initiative.

2 Improvement of energy efficiency at our customers

Less energy consumptionOur target is to reduce energy consumption per ton of end product at customers’ sites. A number of concurrent new developments of the business Grains & Food helped im-prove energy efficiency in 2015: The Antares Plus roller mill for grinding grain was equipped with a sensor that optimizes the flour yield by improving particle distribution. Other projects focused on finding a gentler method of drying rice and grain and on a new, energy-efficient design of flour mills. What all projects have in common is the fact that their marked-ly lower energy consumption also increases profitability at customers’ sites.


Food Security, Safety and Nutrition We set the standards for the reduction of food losses and for safe and healthy foods.

1 We continuously improve our solutions for safe and healthy foods.

Percentage of food-relevant R & D projects with focus on improving food safety. G4-PR1 28 % 50 %

Number of employees in key positions to receive training in food safety within 2016. Additional (related to G4-PR1) 498 600

Percentage of food-relevant R & D projects with focus on improving nutrition. Additional (related to G4-PR1) 8 % 20 %

Resource Efficiency We set the standards for resource-efficient solutions.

2 We continuously improve our solutions for resource efficiency.

Percentage of R & D projects with focus on improving energy efficiency per ton of end product or finished unit.

G4-EN27, Additional (related to G4-EN6, G4-EN7)

24 % 70 %

Percentage of R & D projects with focus on improving product yield. G4-EN27 22 % 50 %

Environmental Footprint of Our Sites We reduce the environmental footprint of our sites world-wide.

3 We reduce energy and water consumption as well as CO2 emissions and waste.

Percentage of reduction of energy consumption relative to product hours y/y.

G4-EN3/EN6 8.2 % 5 %

Percentage of reduction of CO2 equivalents relative to product hours y/y.

G4-EN15 4.9 % 5 %

Percentage of reduction of water consumption relative to product hours y/y.

G4-EN8/EN10 9.5 % 5 %

Percentage of reduction of waste relative to product hours y/y. G4-EN23 − 41.4 % 5 %

Percentage of reduction of hazardous waste relative to product hours y/y.

G4-EN23 − 4.9 % 5 %

We ensure environmental compliance in our supply chain.

Percentage of top suppliers that have qualified for Bühler QEHS standards (certified for ISO 9001, ISO 14001, OHSAS 18001).

G4-EN32 Rollout ongoing 100 %


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In the Advanced Materials business, several product develop-ments helped improve energy efficiency: Thus, the coating of large glass surfaces (Business Area Leybold Optics) improves the insulation of buildings. The following figure may illustrate this point: 12 million square meters of coated glass surface save the electrical equivalent of 500 megawatts of energy over 10 years. This equals the power output of a mid-size power plant.

CAP machines for manufacturing coated film capacitors also stemmed from Leybold Optics. These are used for converting and feeding renewable energy into the power grid or for pro-ducing batteries for electric vehicles. The efficiency of batteries is also enhanced by the new process technology of Lishen (Business Area Grinding & Dispersion) for manufacturing elec-trode slurries. The continuous process improves the energy performance of batteries to a significant extent.

In the Business Area Die Casting, lightweight die-cast compo-nents of aluminum for the automotive industry allow lighter and thus more energy-efficient cars to be designed and built. Here too, the rule is: Better energy efficiency cuts costs at custom-ers’ sites, which is a precondition for ensuring the success of the new products in the marketplace.

3 We reduce the ecological footprint of all our sites

Measuring and reducing the ecological footprintOne thing we must do in order to achieve our ecological sus-tainability goals is continuously reduce the burdening of the environment caused by our sites. In 2015, the number of pro-duction sites with an ecological footprint that is completely and continuously monitored was increased from 11 to 17. This increases the significance of our objective of improving our environmental performance by 5 % annually. In addition to en-ergy and water consumption, this reduction target now also applies to carbon emissions, material usage, plus pollutants and waste. Special attention is also being paid in this respect to observing high environmental protection standards in pro-duction transfers within the global Bühler production network.

Environmental certificationsEnvironmental certificates are an important step toward im-proving environmental performance. The environmental man-agement standard ISO 14001 defines the requirements that an environmental management system must meet globally. Beside ISO 14001, three additional Bühler sites were certi-fied in China and India in 2015 according to the ISO standard 9001. Moreover, apart from our site in Braunschweig, which has already been certified, also Bühler Alzenau was awarded the ISO energy management certificate (ISO 50001). Bühler Alzenau succeeded even during the course of certification to cut its energy consumption by a remarkable 800,000 kWh from a year ago.

Energy efficiencyThe goal of cutting energy consumption per productive hour by 5 % was even surpassed in 2015 compared with the previ-ous year with energy savings of 8.2 %. The major Bühler sites Uzwil, Wuxi, and Changzhou reached even above-average performance, with energy reduction rates of 11.4 %, 11.8 % and 27.6 % respectively. In the past five years, Bühler managed to reduce its energy consumption per productive hour by a substantial 15 %.

Carbon emissionsBühler has set itself the goal of reducing its carbon emissions per productive hour by 5 % annually. In 2015, this target was well achieved with a total reduction of carbon emissions of 11 %. This result is due to the overall reduction of the energy consumption and the optimization of our energy mix. In 2015, the so-called CO2 footprint of the 17 Bühler production sites was about half the size of the daily CO2 footprint of New York City. Figuratively speaking, the compensation of these CO2 emissions equals the reforestation of a forest that is five times the area of Manhattan.

A special distinction was awarded in 2015 by the Loyola Univer-sity Chicago to our US site BuhlerPrince, Inc. in the form of its “Operations Excellence Award”. A prestigious jury distinguished BuhlerPrince as “Best in Class” for its carefully thought-out breakdown of production-related carbon emissions in con-junction with the carbon reduction measures implemented on the basis of these insights.


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Material consumption and wasteBühler has a relatively low material consumption, consisting of 14,400 tonnes in 2015, of which 792 tonnes of hazardous ma-terials. Nevertheless, Bühler has set itself the goal of lowering its material consumption, pollutants, and waste per productive hour by 5 % annually. In 2015, this target was not achieved. A series of corrective measures are being defined in order to reduce the material consumption and waste at all our sites, as well as improve the quality of the data records. The proportion of recyclable waste such as paper, wood or metals for Bühler last year amounted to 98 % of the total amount of waste, which is an improvement of 3 % compared to 2014.

Water consumptionBühler wants to reduce annual water consumption by 5 % per productive hour, even if the water consumption of our pro-duction sites is comperatively low. In 2015 Bühler used a total of 484,045 m3 of water for all 17 sites, which equals the con-sumption of 10 liters of water per productive hour.

Sustainable procurementIn order to improve its environmental performance along the entire value chain, Bühler demands appropriate efforts also from its suppliers. By 2020, they must comply with our global quality, environmental, and safety standards on the basis of the standards ISO 9001/14001, ISO 50001, and OHSAS 18001.


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Social Sustainability

1 A corporate culture that lives health and safety

Occupational safety and safeguarding of healthEmployees’ health and safety and protection against physi-cal and mental harm is of prime importance to Bühler. Bühler strives to offer all its employees a safe and healthy work en-vironment. In addition, we also ensure the safety of visitors to our company during their stay. Bühler has compiled the most important safety-related information and rules worldwide in a short video, based on our mission: no accidents at Bühler and no accidents at customers’ sites.

Every accident inside and outside the company and every absence due to sickness is associated for Bühler with un-necessary efforts, lost labor hours, and expenses. Moreover, accidents and sickness often have serious consequences for the employees affected and their families. In addition, the law and an increasing number of Bühler customers also demand that safety and health protection be documented at Bühler sites (for example on the basis of an Occupational Health and Safety Assessment Series / OHSAS 18001 certificate).

Also in this context, an OHSAS 18001 certification audit was successfully conducted in the fall of 2015 at the Bühler sites in Appenzell, Uzwil, and Trübbach. These locations have thus triggered a new trend worldwide. Not only have their occupa-tional safety and health management systems received top grades, the external auditors were also particularly impressed by the exemplary occupational safety awareness of the Bühler employees and their efforts to prevent accidents on the job.

Health managementThe concept of a healthy and balanced work environment established together with experts stands on different pillars: strengthening of health, reduction of absences, and preven-tion of disability – and this, in turn, on the basis of employees’ personal responsibility and an appropriate health culture. In the context of the specialist staff concept of Bühler, Viva shall also help maintain the abilities of employees as they age.

Ethical and legal standards of suppliersOur Code of Conduct has been reviewed and now also in-cludes binding standards for our business partners. The Code of Conduct is being continously adjusted to ongoing changes in the environment.


Health & Safety We strengthen our corporate culture of health & safety.

1 We want to increase the safety of our products and our manufacturing locations.

Percentage of R & D projects with focus on improving operator safety. G4-PR1 48 % 50 %

Number of recordable work-related injuries per 100-full time employees. Related to G4-LA6 2.9 ≤ 3.4

We enhance the health and well-being of our employees world-wide.

Sickness related absenteeism (days per employee and year, CH only). G4-LA6 2 ≤ 2

Culture of Continuous Learning We pursue our corporate culture of continuous learning.

2 We enable our employees around the world to increase their level of relevant competencies.

Percentage of all employees who undergo the Employee Performance Management (EPM) process every year.

G4-LA10 and G4-LA11 80 % 80 %

The number of training days per full-time employee per year. G4-LA9 2 2

Percentage of training costs over total personnel costs per local Learning Center. Additional (related to G4-LA9) 1.2 % 1 %

We ensure the sustained availability of core competencies in a dynamic context.

Percentage of high potentials among all employees. Additional 2.8 % 5 %

The key positions for the senior functions at management levels 1, 2 and 3 have been defined and potential successors have been determined.

Additional (related to G4-LA12) 100 % 100 %

We offer attractive job opportunities and develop-ment for young employees.

Percentage of all apprentices who successfully pass their final apprenticeship examinations and continue their career at Bühler (CH only).


We want to promote our culture of innovation and entrepreneurship across all organizational levels.

Percentage of employees participating in the Bühler Innovation Challenge (every two years).

Additional 34 % ≥ 40 %

Percentage of implemented project ideas from the Bühler Innovation Challenge. Additional 67 % 75 %

We want to enhance the integration of our partners into our innovation process.

Percentage of projects run in collaboration with partners (suppliers, customers, universities).

Additional 44 % 50 %

Fair and Equal Treatment We strengthen our corporate culture of fair and equal treatment.

3 We foster a workplace free from any discrimination. Percentage of female employees. Related to G4-LA12 15 % ≥ 15 %


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2 We live a corporate culture of continuous learning

Employee developmentBühler is convinced that its sustainable success as a company is closely associated with employing the right people with the right skills in the right positions. According to the long-term develop-ment concept of Bühler, employees at all levels are to be promoted and further trained so as to develop the required abilities also with-in the company itself. In the Employee Performance Management (EPM) process, the goals and development steps were systemati-cally agreed with 80 % of all employees worldwide in 2015. Goals and competencies are assessed from October 1 through the end of January 2016. This process has been facilitated by the revised and therefore improved internet-based HR software. The EPM process requires a shared understanding of values, goals, and performance. It supports employees and supervisors in achieving corporate goals and in employees’ individual development and career planning and serves as a basis for the talent management and succession planning process. The EPM process is conducted during the first quarter of each year and is reported in KPI form in the annual report of the following year. The KPIs reported in this annual report are based on the 2014 EPM process.

TrainingThe Bühler Learning Center established in 2012 provides the roof for all training events worldwide. Based in and controlled by the Corporate Learning Center in Uzwil, it is divided into five centers in Europe, North America, South America, Asia, and South East Asia. Its focus is on high-quality training programs across the core processes of Bühler. By ensuring continuous learning at all levels, we can make sure that employees’ skills are matched to the needs of business.

Evaluations show that in 2015, 1,650 global and regional train-ing events were held with a total of 14,247 attendees. This results in 22,384 training days for the whole year or 1.2 days for each full-time employee. The training costs per local training center in 2015 reached the specified target of about 1 % of total staff costs.


Health & Safety We strengthen our corporate culture of health & safety.

1 We want to increase the safety of our products and our manufacturing locations.

Percentage of R & D projects with focus on improving operator safety. G4-PR1 48 % 50 %

Number of recordable work-related injuries per 100-full time employees. Related to G4-LA6 2.9 ≤ 3.4

We enhance the health and well-being of our employees world-wide.

Sickness related absenteeism (days per employee and year, CH only). G4-LA6 2 ≤ 2

Culture of Continuous Learning We pursue our corporate culture of continuous learning.

2 We enable our employees around the world to increase their level of relevant competencies.

Percentage of all employees who undergo the Employee Performance Management (EPM) process every year.

G4-LA10 and G4-LA11 80 % 80 %

The number of training days per full-time employee per year. G4-LA9 2 2

Percentage of training costs over total personnel costs per local Learning Center. Additional (related to G4-LA9) 1.2 % 1 %

We ensure the sustained availability of core competencies in a dynamic context.

Percentage of high potentials among all employees. Additional 2.8 % 5 %

The key positions for the senior functions at management levels 1, 2 and 3 have been defined and potential successors have been determined.


We offer attractive job opportunities and develop-ment for young employees.

Percentage of all apprentices who successfully pass their final apprenticeship examinations and continue their career at Bühler (CH only).


We want to promote our culture of innovation and entrepreneurship across all organizational levels.

Percentage of employees participating in the Bühler Innovation Challenge (every two years).

Additional 34 % ≥ 40 %

Percentage of implemented project ideas from the Bühler Innovation Challenge. Additional 67 % 75 %

We want to enhance the integration of our partners into our innovation process.

Percentage of projects run in collaboration with partners (suppliers, customers, universities).

Additional 44 % 50 %

Fair and Equal Treatment We strengthen our corporate culture of fair and equal treatment.

3 We foster a workplace free from any discrimination. Percentage of female employees. Related to G4-LA12 15 % ≥ 15 %


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Talent managementIn view of the increasing lack of specialists and demographic developments, in-house development of key staff both for spe-cialist and management positions is particularly important. In 2015, the share of high potentials relative to the total workforce was still slightly below the target of 5 %. For 2016, measures are planned in the areas of diversity, branding, and marketing, in order to increase the high-potential pool with internal and external recruitment and to tap the potential of hitherto unused resources.

With the Master of Bühler Management (MBM) system, Bühler offers talented employees attractive in-house management and leadership training. Thanks to its international partici-pants, this fosters the creation of a Group-wide network while also promoting leadership and management skills. In order to directly put what they have learned in the three-week course into practice, the attendees work in project groups on innova-tion projects which are then presented to the Executive Board as the completion of their continued education. The MBM participants of the 2014 class presented their projects to the Executive Board in October 2015. All projects were approved for execution, which is great proof of the sound return of invest-ment that the MBM generates. The 2015 MBM began in June 2015 with 29 participants from a total of 10 different countries and 14 different Bühler sites.

Succession planningKey positions and potential successors were defined on a global scale for the first of three management levels.

Vocational trainingIn 2015, Bühler celebrated its Vocational Training Centena-ry with various public and in-house events. Since 1915, the company has trained over 7,500 specialists in Switzerland. At present, 600 apprentices across the world are learning one of ten different vocations, and more than 1,000 former appren-tices are now regular Bühler employees.

The strategic target of retaining 66 % of all apprentices in the organization after they have completed their basic vocational training was exceeded in 2015 with 77 %. Unlike many other companies in Switzerland, Bühler does not have any difficulty finding suitable candidates for filling its open apprenticeships.

Together with the Vocational Training and Continuing Education Center Wil-Uzwil, the global classroom called “ClassUnlimited” was further developed. The new pedagogic concept combines the benefits of the classic vocational training approach with the possibilities offered by the digital media. ClassUnlimited 2.0 enables Bühler apprentices to spend a longer period of time abroad (up to 6 months) while still completing their vocational training.

In August, a class for the first time successfully completed their vocational training outside Switzerland at Bühler Minneapolis. This training was held in collaboration with a local school. The expertise of Bühler in the field of vocational training was again highly praised in 2015 by decision-makers from politics and business inside and outside Switzerland.

Trainee programSince 2015, Bühler has offered a three-year international train-ee program for university graduates with a Master’s or PhD degree or a track record of a few years of consulting experi-ence (pilot project to be officially rolled out in 2016). Following this three-year period of training with assignments in different business units and at different Bühler sites, 80 % of all trainees are expected to enter into regular employment. Bühler delib-erately selects the trainees (max. 20 per year worldwide) in an extremely restrictive and quality-focused manner.

Internal “Innovation Challenge” contestBühler regularly promotes the development of entrepreneur-ial ideas, for example, by organizing innovation contests. In the Innovation Challenge 2014, four teams were nominated as winners. In 2015, they all worked intensely on putting their business ideas to practice, coached by an expert sponsor from the Executive Board. The four ideas – a compact chocolate molding machine, a new animal feed mixing process, an online spare parts platform, and a food safety validation service – will likely be launched next year. Then, also the next Innovation Challenge is planned for 2016.


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3 A corporate culture based on fairness and equal rights

Fairness and equal rightsAs a global Group, Bühler considers the cultural diversity of its employees to be one of its greatest strengths. As a result, also the management level positions are whenever possible filled with local candidates. All employees have equal rights, regardless of their origin, nationality, religion, or gender.


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Economic Sustainability

1 Sustainable profitability

Financing growthSustainable business success is a basic requirement for Bühler to also fulfill its expected ecological and social duties. We therefore deliberately define long-term profitability targets so as to ensure our entrepreneurial freedom. This also means that our growth is 100 % self-financed. In line with this philosophy, we continue to strive to avoid accepting any interest-bearing equity from third parties. Moreover, a liquidity plan for the next five years ensures that sufficient liquid funds will be available for replacement and strategic investments.

Attractive employerCarefully trained and motivated employees are the social cap-ital of any company. But the struggle for talents and special-ists in the labor market is becoming increasingly fierce, also due to demographic developments. Bühler has taken various actions in the areas of employee development, branding, and marketing to become more globally known as an attractive employer. At the same time, tight controlling shall ensure that these measures lead to the desired results.

Staff turnoverThe turnover rate is a good indicator showing whether Bühler succeeds in recruiting adequate job applicants and fulfilling employees’ expectations in the organization. In 2015, the fluc-tuation rate was equal to 8 %.

2 Assurance of modern corporate governance

Clear rules against corruption and briberyOnline training imparts the rules for preventing corruption and bribery. This web-based training is mandatory for all employ-ees in sales, procurement, or management functions. New employees from these functions are automatically nominated and must attend the course and pass the final test. By the end of 2015, 97 % of all nominated new employees had completed this web-based training and are therefore now familiar with the globally applicable compliance rules.


Long-Term Profitability We deliver long-term profitability. 1 We remain a profitable and independent business. 100 % own financing of growth. Additional (related to G4-EC1) 100 % 100 %

We increase our employer attractiveness for best talents.

Number of applications received per open position (CH only). Additional 16 Best practice in definition with peers

Percentage of terminations within the first 12 months of employment (CH only). Additional 9 % ≤ 5 %

Percentage of terminations during the probation period (CH only). Additional 1 % ≤ 1 %

Percentage of high potentials after 2 years of service. Additional 2 % 3 %

Percentage of employee fluctuation. G4-LA1 8 % ≤ 8 %

Corporate Governance We ensure an effective approach to corporate governance.

2 We assure legal compliance and apply our code of conduct world-wide.

Percentage of new employees in the sales, purchasing, and management functions who have attended the online training against corruption and bribery.

Additional (related G4-SO8) 97 % ≥ 95 %

Number of companies audited on corruption prevention. G4-SO8 8 10

Number of companies audited on fraud prevention. G4-SO8 8 10

Number of relevant compliance fines (> CHF 200,000). G4-SO8 0 0

Number of whistleblowing cases per year. Additional (related to G4-SO8) 11 Best practice in definition with peers

Number of all compliance cases. Additional (related to G4-SO8) 64 Best practice in definition with peers

Contribution to Local Economies We contribute to local economies. 3 We contribute to the development of local communities.

Percentage of our management staff locally recruited. Additional Reported from 2016

90 %


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Internal auditingIn 2015, the internal auditing function audited 8 companies in depth. In talks with the company management and with em-ployees selected at random, the Group Internal Audit function also checks knowledge and compliance with the rules.

Compliance reportingObservation of the compliance rules is permanently monitored at the corporate level. Fines may result from infringement of taxation laws, provision and use of goods and services, vio-lation of safety and environmental regulations, and especially corruption and bribery. The level of the fines imposed and possible increases in the number of monetary fines provide the standard for Bühler, against which it measures its success of sustainable compliance. In 2015, no cases were reported in which the total damage sum exceeded the amount considered as critical.

3 Contribution to local economic development

Regionally oriented business policyStrong local presence is important to Bühler, also when it comes to recruiting management staff. At the senior management lev-el, about 90 % of all positions are to be filled by staff from the relevant regions. In addition, employee training is increasingly being moved to the regions. Bühler seeks to collaborate with local universities or institutes of education or to introduce prov-en concepts such as in-house apprentice training also at other locations. With this regionally oriented business policy, Bühler is also helping develop local economies. Thanks to this newly introduced program, the management positions filled by region-al staff will be tracked from 2016.


Long-Term Profitability We deliver long-term profitability. 1 We remain a profitable and independent business. 100 % own financing of growth. Additional (related to G4-EC1) 100 % 100 %

We increase our employer attractiveness for best talents.

Number of applications received per open position (CH only). Additional 16 Best practice in definition with peers

Percentage of terminations within the first 12 months of employment (CH only). Additional 9 % ≤ 5 %

Percentage of terminations during the probation period (CH only). Additional 1 % ≤ 1 %

Percentage of high potentials after 2 years of service. Additional 2 % 3 %

Percentage of employee fluctuation. G4-LA1 8 % ≤ 8 %

Corporate Governance We ensure an effective approach to corporate governance.

2 We assure legal compliance and apply our code of conduct world-wide.

Percentage of new employees in the sales, purchasing, and management functions who have attended the online training against corruption and bribery.

Additional (related G4-SO8) 97 % ≥ 95 %

Number of companies audited on corruption prevention. G4-SO8 8 10

Number of companies audited on fraud prevention. G4-SO8 8 10

Number of relevant compliance fines (> CHF 200,000). G4-SO8 0 0

Number of whistleblowing cases per year. Additional (related to G4-SO8) 11 Best practice in definition with peers

Number of all compliance cases. Additional (related to G4-SO8) 64 Best practice in definition with peers

Contribution to Local Economies We contribute to local economies. 3 We contribute to the development of local communities.

Percentage of our management staff locally recruited. Additional Reported from 2016

90 %


96

Global Reporting Initiative (GRI) G4 Content IndexSTANDARD DISCLOSURE DESCRIPTION REPORTED ANSWER OR CROSS REFERENCE

Strategy and Analysis

G4-1 Statement from the CEO on sustainability Annual Report 2015 – Chairman / CEO StatementSee also: www.buhlergroup.com à Home à About Bühler à Corporate Profile “Committed to sustainability”

Organizational Profile

G4-3 Name of the organization www.buhlergroup.com; Annual Report 2015 – Outside cover

G4-4 Primary brands, products, and / or services Annual Report 2015 – Our BusinessSee also: www.buhlergroup.com à Home à Industry Solutions / Process Technologies / Products / Services

G4-5 Location of the organization’s headquarters www.buhlergroup.com à Home à About Bühler à Worldwide à Bühler Switzerland (Headquarters)

G4-6 Number of countries where the organization operates, and names of countries where either the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report

Annual Report 2015 – Global presencewww.buhlergroup.com à Home à About Bühler à Worldwide

G4-7 Nature of ownership and legal form www.buhlergroup.com à Home à About Bühler à Corporate Profile à History

G4-8 Markets served (including geographic breakdown, sectors served, and types of customers and beneficiaries) www.buhlergroup.com à Home à About Bühler à Worldwide

G4-9 Scale of the reporting organization Annual Report 2015 – Key Figures and Financial Report

G4-10 Total workforce by employment type, employment contract, and region, broken down by gender Bühler workforce is comprised of 11,629 staff persons, and approximately 96 % of the total workforce are full-time employees. Regional breakdown: North America 7 %; South America 4 %; Switzerland 22 %; Rest of Europe 24 %; Middle East & Africa 5 %; South Asia 5 %; Asia 32 %, East Asia 1 %Function breakdown: Sales 9 %; Customer Service 13 %; Fulfillment 22 %; R & D 6 %; Factory 42 %; Administration 9 %Gender breakdown: female employees 15 %See also www.buhlergroup.com à Home à About Bühler à Career à Bühler as an employer

G4-11 Percentage of employees covered by collective bargaining agreements Estimate: Around 90 % of the Bühler workforce is covered by collective bargaining agreements

G4-12 Description of the supply chain of the organization In preparation

G4-13 Significant changes during the reporting period regarding size, structure, ownership or supply chain Annual Report – Key Figures and Financial ReportSee also: www.buhlergroup.com à About Bühler à Media à Media Releases”

G4-14 Explanation of whether and how the precautionary approach or principle is addressed by the organization For Corporate Policy, including Corporate Governance, Risk Management, Environment, People, Code of Conduct: see www.buhlergroup.com à Home à About Bühler à Corporate PolicyFor Organization chart, Board of Directors, Corporate Executive Committee: see www.buhlergroup.com à Home à About Bühler à Organization

G4-15 Externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or endorses

In preparation

G4-16 List memberships of associations (such as industry associations) and national or international advocacy organizations in which the organization:– Holds a position on the governance body– Participates in projects or committees– Provides substantive funding beyond routine membership dues– Views membership as strategic

Bühler is active in many organizations and associations, particularly those related to the scope of our business and our profession. Some of our significant memberships include the industry associations Swissmem, SwissHoldings, economiesuisse. See further memberships under: www.buhlergroup.com à Home à About Bühler à News à Details à Bühler joins “Partners in Food Solutions”www.buhlergroup.com à Home à Media à Media Releases à Media Releases Details à Bühler partners with global startup accelerator MassChallenge to advance open innovationwww.buhlergroup.com à Home à About Bühler à Corporate Policy à Environment A full list of memberships is in preparation.

Identified Material Aspects and Boundaries

G4-17 List of entities included in the organization’s consolidated financial statements or equivalent documents Annual Report 2015 – Financial Report

G4-18 Process for defining report content Annual Report 2015 – Sustainability Report

G4-19 List of Material Aspects identified in the process for defining report content Annual Report 2015 – Sustainability Report

G4-20 Aspect Boundary within the organization for each Material Aspect In preparation

G4-21 Aspect Boundary outside the organization for each Material Aspect In preparation

G4-22 Explanation of the effect of any restatements of information provided in earlier reports, and the reasons for such restatement There have been no restatements of data in this report.

G4-23 Significant changes from previous reporting periods in the scope and Aspect Boundaries There have been no significant changes to the report scope. A comprehensive description of the Aspect Boundaries is in preparation.

Stakeholder Engagement

G4-24 List of stakeholder groups engaged by the organization Annual Report 2015 – Sustainability Report

G4-25 Basis for identification and selection of stakeholders with whom to engage Annual Report 2015 – Sustainability Report

G4-26 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group Annual Report 2015 – Sustainability Report

G4-27 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting

Annual Report 2015 – Sustainability Report

Report Profile

G4-28 Reporting period (e.g. fiscal / calendar year) for information provided Annual Report 2015 – Cover page

G4-29 Date of most recent previous report Our most recent Sustainability Report was included in our Annual Report 2014, issued in February 2015. www.buhlergroup.com à Home à About Bühler à Media à Publications

G4-30 Reporting cycle Annual reporting cycle

G4-31 Contact point for questions regarding the report or its contents Bühler AG, Corporate Communications, Uzwil. Contact: [email protected]

G4-32 Table identifying the location of the Standard Disclosures in the report This report contains Standard Disclosures from the GRI Sustainability Reporting Guidelines.

G4-33 Policy and current practice with regard to seeking external assurance for the report Bühler did not seek external assurance for this report.

Governance

G4-34 Governance structure of the organization, including committees of the highest governance body responsible for decision-making on economic, environmental and social impacts

Annual Report 2015 – Corporate Governance

Ethics and Integrity

G4-56 Values, principles, standards and norms of behavior Bühler values and principles: www.buhlergroup.com à Home à About Bühler à Corporate Profile à Corporate Values Corporate Code of Conduct: www.buhlergroup.com à Home à About Bühler à Corporate Policy à Corporate Governance

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97

STANDARD DISCLOSURE DESCRIPTION REPORTED ANSWER OR CROSS REFERENCE

Strategy and Analysis

G4-1 Statement from the CEO on sustainability Annual Report 2015 – Chairman / CEO StatementSee also: www.buhlergroup.com à Home à About Bühler à Corporate Profile “Committed to sustainability”

Organizational Profile

G4-3 Name of the organization www.buhlergroup.com; Annual Report 2015 – Outside cover

G4-4 Primary brands, products, and / or services Annual Report 2015 – Our BusinessSee also: www.buhlergroup.com à Home à Industry Solutions / Process Technologies / Products / Services

G4-5 Location of the organization’s headquarters www.buhlergroup.com à Home à About Bühler à Worldwide à Bühler Switzerland (Headquarters)

G4-6 Number of countries where the organization operates, and names of countries where either the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report

Annual Report 2015 – Global presencewww.buhlergroup.com à Home à About Bühler à Worldwide

G4-7 Nature of ownership and legal form www.buhlergroup.com à Home à About Bühler à Corporate Profile à History

G4-8 Markets served (including geographic breakdown, sectors served, and types of customers and beneficiaries) www.buhlergroup.com à Home à About Bühler à Worldwide

G4-9 Scale of the reporting organization Annual Report 2015 – Key Figures and Financial Report

G4-10 Total workforce by employment type, employment contract, and region, broken down by gender Bühler workforce is comprised of 11,629 staff persons, and approximately 96 % of the total workforce are full-time employees. Regional breakdown: North America 7 %; South America 4 %; Switzerland 22 %; Rest of Europe 24 %; Middle East & Africa 5 %; South Asia 5 %; Asia 32 %, East Asia 1 %Function breakdown: Sales 9 %; Customer Service 13 %; Fulfillment 22 %; R & D 6 %; Factory 42 %; Administration 9 %Gender breakdown: female employees 15 %See also www.buhlergroup.com à Home à About Bühler à Career à Bühler as an employer

G4-11 Percentage of employees covered by collective bargaining agreements Estimate: Around 90 % of the Bühler workforce is covered by collective bargaining agreements

G4-12 Description of the supply chain of the organization In preparation

G4-13 Significant changes during the reporting period regarding size, structure, ownership or supply chain Annual Report – Key Figures and Financial ReportSee also: www.buhlergroup.com à About Bühler à Media à Media Releases”

G4-14 Explanation of whether and how the precautionary approach or principle is addressed by the organization For Corporate Policy, including Corporate Governance, Risk Management, Environment, People, Code of Conduct: see www.buhlergroup.com à Home à About Bühler à Corporate PolicyFor Organization chart, Board of Directors, Corporate Executive Committee: see www.buhlergroup.com à Home à About Bühler à Organization

G4-15 Externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or endorses

In preparation

G4-16 List memberships of associations (such as industry associations) and national or international advocacy organizations in which the organization:– Holds a position on the governance body– Participates in projects or committees– Provides substantive funding beyond routine membership dues– Views membership as strategic

Bühler is active in many organizations and associations, particularly those related to the scope of our business and our profession. Some of our significant memberships include the industry associations Swissmem, SwissHoldings, economiesuisse. See further memberships under: www.buhlergroup.com à Home à About Bühler à News à Details à Bühler joins “Partners in Food Solutions”www.buhlergroup.com à Home à Media à Media Releases à Media Releases Details à Bühler partners with global startup accelerator MassChallenge to advance open innovationwww.buhlergroup.com à Home à About Bühler à Corporate Policy à Environment A full list of memberships is in preparation.

Identified Material Aspects and Boundaries

G4-17 List of entities included in the organization’s consolidated financial statements or equivalent documents Annual Report 2015 – Financial Report

G4-18 Process for defining report content Annual Report 2015 – Sustainability Report

G4-19 List of Material Aspects identified in the process for defining report content Annual Report 2015 – Sustainability Report

G4-20 Aspect Boundary within the organization for each Material Aspect In preparation

G4-21 Aspect Boundary outside the organization for each Material Aspect In preparation

G4-22 Explanation of the effect of any restatements of information provided in earlier reports, and the reasons for such restatement There have been no restatements of data in this report.

G4-23 Significant changes from previous reporting periods in the scope and Aspect Boundaries There have been no significant changes to the report scope. A comprehensive description of the Aspect Boundaries is in preparation.

Stakeholder Engagement

G4-24 List of stakeholder groups engaged by the organization Annual Report 2015 – Sustainability Report

G4-25 Basis for identification and selection of stakeholders with whom to engage Annual Report 2015 – Sustainability Report

G4-26 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group Annual Report 2015 – Sustainability Report

G4-27 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting

Annual Report 2015 – Sustainability Report

Report Profile

G4-28 Reporting period (e.g. fiscal / calendar year) for information provided Annual Report 2015 – Cover page

G4-29 Date of most recent previous report Our most recent Sustainability Report was included in our Annual Report 2014, issued in February 2015. www.buhlergroup.com à Home à About Bühler à Media à Publications

G4-30 Reporting cycle Annual reporting cycle

G4-31 Contact point for questions regarding the report or its contents Bühler AG, Corporate Communications, Uzwil. Contact: [email protected]

G4-32 Table identifying the location of the Standard Disclosures in the report This report contains Standard Disclosures from the GRI Sustainability Reporting Guidelines.

G4-33 Policy and current practice with regard to seeking external assurance for the report Bühler did not seek external assurance for this report.

Governance

G4-34 Governance structure of the organization, including committees of the highest governance body responsible for decision-making on economic, environmental and social impacts

Annual Report 2015 – Corporate Governance

Ethics and Integrity

G4-56 Values, principles, standards and norms of behavior Bühler values and principles: www.buhlergroup.com à Home à About Bühler à Corporate Profile à Corporate Values Corporate Code of Conduct: www.buhlergroup.com à Home à About Bühler à Corporate Policy à Corporate Governance

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Sabrina makes a bit of a sleepy impres-sion as she looks into the camera. For the 19-year old polymechanic-in-training, work starts earlier than usual in Minneap-olis (USA). Sabrina is one of currently 22 Bühler apprentices who have been dele-gated on assignments abroad in the final year of their apprenticeships. In addition to specialist knowledge, these future ex-perts are meant to also gather intercul-tural experience as early as possible in their lives and careers. To allow them to continue to take part in vocational train-ing and remain in touch with their classes during their stints abroad, Bühler and the BZWU launched the virtual and global classroom called ClassUnlimited in 2012. As every Monday, Sabrina will actively at-tend vocational training classes in Uzwil – through a live link with a large display screen and in the wee hours of the morn-ing due to the time difference.

Modern learning arena and new learning cultureSince 2012, ClassUnlimited has evolved into a learning arena equipped with cut-ting-edge technology that combines the benefits of classic courses with the possibilities of digital learning. Since Au-gust 2015, four vocational disciplines – polymechanic, plant builder, automation specialist, and machine designer – have taken part in the ClassUnlimited 2.0 proj-ect. The master class in Uzwil is linked live with two satellite groups at a time. The apprentices are coached during their periods abroad by their apprenticeship instructors and specially educated local instructors in China, the United States, South Africa, and the United Kingdom. They now build their basic knowledge es-sentially by self-study or in small learn-ing teams. In this, they are directed by

The ClassUnlimited distance education concept allows today’s apprentices to gather experience on the job abroad and enhance the quality of their education during their basic training.

Door to the world

Bühler and the Vocational and Continuing Education Center Wil-Uzwil (BZWU) have developed ClassUnlimited 2.0 – a new pedagogic concept for vocational training classes that combines the benefits of classic classroom education with the possibilities offered by digital media. This global classroom enables Bühler apprentices to go on prolonged assignments abroad while still undergoing their basic vocational training.

a Learning Management System. What they have learned on their own is then deepened in classes und applied on the basis of sample cases. This departure from conventional classes – learn at school, deepen at home – suggested itself strongly because the virtual pres-ence all day long of the apprentices in the satellites would have been too time- and labor-consuming. Moreover, stud-ies prove that self-controlled learning is more effective.

Long-term specialist training conceptThe commitment of Bühler to vocation-al training has sound business reasons: This investment in future specialist and management staff will pay off. In times when company bosses report in sur-veys that the lack of specialist staff is

their greatest challenge, Bühler does not find it difficult to fill its roughly 80 posted apprenticeships with talented school-graduates. About three out of four of all apprenticeship-graduates continue their professional careers with Bühler. A sound education, they say, is one of the strategic success factors of a company. A track record of 100 years in the field of vocational training – the cen-tenary was celebrated in 2015 – exhibits this. If there is anything that needs to be emphasized, it is this: Also vocational training must continuously evolve.


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Gluten-free pasta

With its Polymatik pasta press, Bühler offers a flexible and therefore also sustainable solution for producing gluten-free pasta.

Gluten-free is trendy. Just a few years ago, the motto was: no pasta, no pizza, no bread, no croissants, but instead a daily ration of potatoes, rice, or corn. But today, you no longer have to remove any of these delicacies from your menu just because of the gluten proteins con-tained in wheat and some other grains. Gluten- free products can now be found on many shelves in supermarkets, rang-ing from baby food and pasta to animal feed. According to a study conducted by Mintel, the market for gluten-free prod-ucts has grown by 44 % to USD 10.5 mil-lion between 2011 and 2013. 30 % of all US consumers heed the advice of stars such as tennis player Novak Djokovic or actress Gwyneth Paltrow and steer clear of foods containing gluten.

But nutritional trends are not always based on strict scientific criteria. Only 2 % of the population advocate gluten-free foods, which is of course mandatory for people suffering from celiac disease or gluten intolerance. Even minute traces of the protein may lead to serious in-testinal changes in celiac patients. But consumers profit from this global trend toward a richer menu. Some other 8 % of the global population react positive-ly to wheat allergy tests, suffering from

The flexible Polymatik, designed for producing gluten-free pasta, can readily be retrofitted again at no extra cost for processing wheat flour or semolina.

intestinal disorders and gluten sensitivi-ty or non-celiac gluten sensitivity. They, too, must submit to a diet or avoid wheat products completely. However, accord-ing to the current state of knowledge, the majority of the population cannot profit from any objectively measurable advan-tages of gluten-free nutrition. Ian Rob-erts, Chief Technology Officer at Bühler, states clearly: “Wheat as one of our main staple foods will continue to play am im-portant role in the future in feeding our growing global population.”

Whether based on scientific facts or not, pasta producers cannot ignore the rising demand for gluten-free foods. With the Polymatik pasta press, Bühler is the sole company to have offered a technically matured solution for making gluten-free pasta for ten years now. “The technol-ogy was originally developed as an al-ternative for regions in which wheat was becoming scarce,” explains Béatrice Conde, food technology expert at Bühler. “The greatest challenge in producing glu-ten-free pasta consists in achieving the same ‘bite’ as in traditional pasta.” Bühler has succeeded so well in this effort that gluten-free pasta hardly differs in taste and consistency from “true” pasta. The flexibility of the Polymatik is likely to be

just as important: Should the current hype concerning gluten level off one day, it would be easy to retrofit a pasta press configured for making gluten-free pasta so that is could be used without involving major expenditures for processing regu-lar flours or semolina.

But regardless of how the perception of gluten-containing or gluten-free foods develops in the future, this Bühler tech-nology is a true trend-setter. This is be-cause the Polymatik allows local grain varieties such as corn (maize) or sorghum to be readily processed precisely in coun-tries in which wheat is not available and would have to be imported at high cost, ensuring the supply of basic foods also in these regions of the world.


100

The JetMix combines state-of-the-art process technology with the traditional bakery craft: The novel method of uni-form hydration of dry substances is ap-plied in the industrial-scale production of sponge and sour dough. The sour dough process is the oldest form of bread pro-duction and a natural process. Dough acidification and fermentation eliminate the need for additives and baking agents while at the same time ensuring a high end product quality.

JetMix reduces the kneading time by 30 %.

Optimal dough quality

Thanks to their beneficial baking characteristics, an increasing number of commercial-scale bakeries are using sponge and sour dough. The innovative Bühler JetMix solution is distinguished by the optimal dough quality and maximum hygiene that it offers.

The LEYBOLD OPTICS PAK 2900+ has enabled METLUX to increase its coating rate by 8 % from 12 to 15 meters per second without increasing energy consumption by the same rate.

Prolonged freshness

Plastic packaging materials coated with aluminum increase the shelf life of foods such as snacks, chocolate bars, or cof-fee. They prevent oxygen or moisture from entering the packaging. The better the barrier characteristics of the pack-aging, the farther the “best before” date and therefore the longer the goods can be left in perfect condition on shelves for sale and be consumed. Peter Wohl-fahrt, Head of Market Segment Large Area Coating at Bühler Leybold Optics, does not doubt for a moment: “Good barrier characteristics help prevent food wastage.”

The quality requirements that food packaging materials are expected to meet in terms of sanitation and safety are particularly high, but at the same time these materials must be cost-efficient. A highly productive manufacturing pro-cess must ensure minimum downtimes and the lowest reject rate possible.

The LEYBOLD OPTICS PAK 2900+ ma-chine has been developed for high-rate coating of plastic film. Since the end of 2014, the machine has been up and running at the production sites of Lux-emburg-based METLUX, whose core business is the metallization of food pack-aging film. For Valerio Cassio, Head of

Research & Development and Business Development at METLUX, the investment pays off: “Our focus was on increasing our productivity.” The LEYBOLD OPTICS PAK 2900+ has enabled METLUX to in-crease the coating rate by 8 % from 12 to 15 meters per second without increasing energy consumption by the same rate.

For METLUX, this was an important step forward in its capabilities, as it is now possible to expand web handling and increase the coating rate. This has opened up the opportunity to explore new industrial applications. Also solar control and building insulation are mar-kets that increasingly require vacuum- coated flexible material in large widths. In its core business, the food indus-try, the design of the machine allows METLUX to offer a wide range of met-alized substrates. Valerio Cassio sums up: “Our customers now benefit from the right quality at the right price, and this with maximum flexibility.” In addi-tion, the machine layout ensures the food safety and hygiene standards that the industry demands today.

In addition to their “clean label” advan-tage, the loaves produced by this meth-od have a longer shelf life, which reduces food losses.

With the JetMix, Bühler has also reduced the kneading time required for a loaf of bread by about 30 %, thanks to the ad-dition of hydrated dough. This has a positive impact on production efficiency or, in other words, on energy consump-tion. There is another important aspect:

The reproducibility of the production and cleaning processes allows a consistent end product quality to be achieved while also ensuring food safety. Tests con-ducted in the Bakery Application Center have already convinced several custom-ers of the benefits of the JetMix. In 2016, two pilot lines are scheduled to go into service.


101

Vacuum systems are crucial production elements for manufacturing high-quality structural components from the die-cast-ing process. When molten aluminum is cast, contaminants are created by lubri-cant evaporation and gas emitted from the molten metal. They must be elimi-nated as efficiently as possible to ensure that no quality-impairing inclusions will be contained in the cast component. Up to now, the attitude of the industry was characterized by skepticism toward vacuum systems due to their susceptility to trouble and their unsatisfactory avail-ability. With SmartVac, Bühler now offers customers a newly developed vacuum system that is seamlessly integrated with the die casting machine. This integration has significantly improved the exchange of information between the die casting machine and the vacuum unit. The sys-tem allows Bühler to take entirely novel approaches in the field of vacuum die casting. It all starts with easier opera-tion and handling during production and production changes. Then, the much improved monitoring functions minimize downtimes. Throughout the process, complete traceability of the parts with their casting parameters is permanently ensured. The focus is always on enhanc-ing customers’ productivity.

This comprehensive integration has en-abled the first phase of the die casting process to be automated on the basis of algorithms. As a result, gas entrapments are already minimized in the shot sleeve by optimal plunger motion. This function is unique in the marketplace and allows customers to achieve a higher component quality as well as reduced cycle times.

Productivity gainThe feedback received from customers is positive throughout. “The SmartVac system has reduced the absolute re-ject rate after casting by 2.5 %.” Steffen Pech is the Casting Manager at DGS Druckguss Systeme, a mid-size com-pany that manufactures complex light-weight components for the automotive industry. He is highly satisfied with the new machine, for aluminum is expensive and melting it requires a lot of energy. Rejects are therefore bothersome in two respects: First, parts are manufactured that cannot be sold. Second, the same amount of resources must be invested a second time, which significantly shrinks operating margins. In general, foundries as well as vendors to the car-making industry base their calculations on narrow margins. For Product Manager Claude Stalder, the matter is therefore clear: “Companies will only invest in new equipment if they can gain a clear, quantifiable advantage.” And proof of such an advantage has now been fur-nished by the SmartVac system. Inte-gration of the vacuum system pays off for DGS Druckguss-Systeme – in terms of productivity, resource consumption, flexibility, and quality.

Reduced reject rate

Vacuum systems increase the quality of die-cast components. But up to now, peripheral systems that were simply attached to the die casting cell have met certain limits. Now the integrated SmartVac solution from Bühler offers markedly lower reject rates, higher flexibility and stability, and complete traceability.

The new SmartVac vacuum system has reduced the absolute reject rate after casting by 2.5 %.


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Nuts are healthy. But what health author-ities now recommend schoolchildren to eat in between meals today – a handful of nuts per day – was long considered to be an unhealthy, greasy party snack. The rehabilitation of nuts came with nutritional scientists’ insight that – if they are not fried in oil and not salted – they contain a large amount of healthy unsaturated fatty acids, vitamins, and proteins, which may prevent cardiovascular diseases, high cholesterol, and cancer. In a broad study, the Harvard Medical School proved that people will have longer and healthier lives if they eat nuts regularly. As a consequence of their rehabilitation, global demand for nuts and nut products has mushroomed. In su-permarkets, almonds, walnuts, and other nut varieties have conquered not merely a place on shelves alongside chips and salty snack foods, but now show off their benefits right next to fruits and vegeta-bles. Within ten years, the nut market has grown by 53 %, and demand for almonds even more than 150 %, driven especially by US consumers, who often drink their lattes or eat their cereal with almond milk instead of cow milk.

Bundling of competencies spells successIts vast nut processing experience al-lows Bühler to benefit from this rise in demand. In addition, the company has always focused on a healthy and gentle dry-roasting method. And thanks to its strategically clever acquisition of Barth, Aeroglide, and Sortex, it is the sole com-pany worldwide today that can offer its customers a portfolio of all the principal nut processing steps – from cleaning and sorting to roasting and grinding. Moreover, Bühler satisfies the high food safety requirements in nut processing along the entire value chain. Bühler of-fers new solutions for sterilizing nuts, val-idating these critical process stages, and removing foreign materials and harmful nuts with high precision.

In 2015, Bühler established its reputation as the global market and opinion leader

Cracking nuts

Nuts are healthy, wholesome, and increasingly popular, regardless of whether we are talking about almonds, walnuts, or peanuts. Thanks to its bundled know-how, Bühler has become the global competence partner of the nut processing industry.

in nut processing. This was reflected in new customer orders for designing and constructing complex systems for pro-cessing a wide range of nut varieties on several continents, in which all relevant business units of Bühler were involved. The size of the plant and the end product determine the most suitable equipment for a specific purpose.

“But before this could happen, a lot of in-house integration work and persua-sion were needed.” Maik Schneider of Bühler Barth is in charge of this market segment and therefore of the design of the entire line. “Today, it no longer mat-ters whether Bühler Aeroglide or Bühler Barth are supplying the drying roast-er – what counts is that customers are offered the best possible solutions for their applications.” Thanks to its bundled know-how, Bühler can now offer large-scale plants for multinational corpora-tions as well as solutions for specialized confectionary producers.

Bühler is the world’s only company capable of offering a complete nut processing solution that ranges from large-scale systems to specialized products.


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Saving resources

Bühler has advanced to market leadership in industrial rice processing – from raw material reception through to packaging of the polished rice. The road to achieving this position has been paved by process technologies ranging from intake to storage of paddy (unmilled rice) that spare resourc-es and close collaboration with the Bühler Rice Milling unit.

Have you even eaten Thai curry prepared from broken rice kernels? That is quite unlikely. And that is because only entirely intact rice grains ever reach the premium market. Whether rice can be exported with a profit or must be sold as a sub-standard product at “fire-sale prices” is determined early on, during drying – an indispensable process for ensuring safe storage of unmilled rice. Studies prove that the drying process has a significant impact on the quality and yield of the finished rice.

Less brokens and lower energy consumptionBühler therefore focused on finding an innovative solution that is gentler than conventional drying processes and also uses less energy. “We knew that we would only have a chance of succeeding in the world’s largest rice market, Asia, if we managed to develop a process that enhances quality as well as cuts costs,” explains Business Unit Head Tobias Daniel. On the basis of the tried-and-true Bühler drying technology for corn (maize) and wheat, Bühler developed a new rice drying process that offers a twofold im-provement: On the one hand, it creates less brokens, which means higher rice quality and lower loss. On the other, the new process technology consumes as much as 25 % less energy.

Market leader in rice processingThere were awards: In 2013, the Bühler EcoDry was chosen as the best dry-ing process for large-scale production and was rewarded with the first orders in South East Asia. This was followed in 2014 by more large orders in South and South East Asia. The triumph of the Bühler paddy intake and storage solutions continued in 2015, when it was possible to play another winning card – the close collaboration of Bühler Grain Logistics with their Rice Milling colleagues. Bühler is thus the sole pro-vider capable of offering customers an integral, single-source solution from raw materials intake to outloading of the pol-ished rice. Thanks to innovation readi-ness and extensive know-how along the entire value chain, Bühler is the market and quality leader in Asia today, where 90 % of the world’s rice is grown, which is the staple food of more than half the planet’s population.

The new drying process enhances the rice quality and reduces losses. At the same time, the new technology requires as much as 25 % less energy.

Financial Report Bühler Annual Report 2015

104

VFinancial Report

Financial ReportBühler Annual Report 2015

105

Financial Commentary 106

Business Development 108

Financial Report Bühler Group 112

Consolidated statement of income 113

Consolidated statement of comprehensive income 114

Consolidated statement of financial position 115

Consolidated statement of changes in equity 116

Consolidated statement of cash flows 118

Notes to the financial statements 119

Report of the statutory auditor 154

Contents


106

Order intake (in CHF m)

2013 2014 2015

2,363 2,582 2,470

Order backlog (in CHF m)

2013 2014 2015

1,319

1,5821,529

Turnover (in CHF m)

2013 2014 2015

2,322 2,332 2,412

EBIT (in CHF m)

2013 2014 2015

139 145

177

Operating cash flow (in CHF m)

2013 2014 2015

124

187

99

2015: Order intake slightly below previous year’s level, higher turnover and profitability, stable balance sheet.

Key points in briefThe start into the fiscal year 2015 was marked by the deci-sion of the Swiss National Bank to abandon the CHF / EUR-peg of 1.20 on January 15. Thanks to a high level of order backlog of CHF 1,582 million as per the end of 2014 and a stringent foreign exchange hedging policy, the Group con-tinues with cautious optimism notwithstanding the high competitive pressure due to the expensive Swiss franc against most foreign currencies. The circumstances forced the management to increase the weekly working hours in Switzerland from 40 to 45 hours, which was logical in view of the high backlog. Above all, the Group was confronted with a number of challenges caused by political unrest in some important markets in South America, political turmoil or even civil-war-like conditions in various countries of the Middle East & Africa region, and a slowdown of the econo-my in China. Additionally, an increasing number of principal banks of the Group withdrew their activities completely from politically critical regions. On the other hand, the regions North America and South East Asia have shown very posi-tive de velopments. Keeping this in mind, the Group has shown a very satisfying overall performance. The order in-take of CHF 2,470 million decreased by only – 4.3 % (on a currency-adjusted basis by –1.8 %) in comparison to 2014 (CHF 2,582 million). In respect to turnover, the Group has managed to grow and generated CHF 2,412 million turn-over or 3.4 % above the previous year’s level of CHF 2,332 million (+7.1% on a currency-adjusted basis).

The EBIT-level profitability increased from CHF 145 million or 6.2 % of turnover in 2014 to CHF 177 million in 2015 or 7.3 %, thanks to improved capacity management and ef-fects of restructuring activities of prior years.

The Group continued to invest in the development of new products and services at the same or even faster pace as in the years before. Total investments in R & D amounted to CHF 102 million (2014: CHF 99 million). As in the past, R & D investments are fully expensed. The return on net opera-tional assets (RONOA) increased by almost 4 percentage points to 22.0 % compared to 2014 (18.1%), thanks to the improved EBIT. Thus the capital costs of the Group are more than covered and the ratio represents a good bench-mark for other industry players. The number of employees (exclusive of temporary staff and apprentices) increased slightly by 298 persons or 2.8 % to 10,873.

Besides share buy-backs from minority interests of earlier acquisitions (three in China, one in Turkey) the Group acquired a chocolate company specialized in countlines in Leingarten, Southern Germany. The total sum of these transactions amounted to CHF 45 million.

Higher net profit and financial result, normalized tax rateThe net profit 2015 amounted to CHF 143 million or 5.9 % of turnover and was thus well above the result of the previ-ous year (CHF 121 million or 5.2 %). The financial result of CHF 7 million remained substantially above the value of the year before (CHF 3 million) thanks to high volatility in the financial markets. The abandoning of the CHF / EUR-peg had no negative impact on the financial result.

The tax rate of 22.4 % was considerably higher than in 2014 (17.9 %) which is the result of a sustainable tax manage-ment, restructuring activities within the Group and substan-tially improved operational performance of Leybold in Alzenau / Germany which was acquired in 2012. Hence the normalized corporate tax rate amounts to approximately 20 %.

Financial Commentary


107

By business1 Grain Milling 29 %2 Grain Logistics 9 %3 Sortex & Rice 9 %4 Value Nutrition 21%5 Consumer Foods 11%6 Die Casting 12 %7 Grinding & Dispersion 3 %8 Leybold Optics 6 %

By region1 North America 15 %2 South America 8 %3 Europe 28 %4 Middle East & Africa 16 %5 Asia 33 %

1

2

34

5

6

87

1

34

52

Net liquidity (in CHF m)

2013 2014 2015

377

464

392

Equity ratio (in %)

2013 2014 2015

44.6 45.2 45.7

RONOA (in %)

2013 2014 2015

17.6 18.1

22.0

Turnover

Turnover

Healthy balance sheet with stable net liquidityThe equity as of December 31, 2015 amounted to CHF 1,155 million (2014: CHF 1,146 million). The equity ratio has thus slightly increased to CHF 45.7 % (2014: 45.2 %). Apart from loans granted by related parties to the amount of CHF 146 million (2014: 159 million) the Group does not have any sig-nificant financial liabilities towards third parties. The opera-tional cash flow in 2015 of CHF 99 million is notably lower than the year before (2014: CHF 187 million), as a result of the Group-wide effort to reduce the huge order backlog. As a consequence the net liquidity has declined from CHF 464 million in 2014 to CHF 392 million at the end of the fiscal year 2015. Nevertheless the financial strength allows the Group to act and react to the quickly changing market envi-ronment and customer requirements. Additionally, the growth of the organization can be financed without incurring debt, in the future which is a key target of the long-term financial strategy.

Conclusion and outlookAfter the abandonment of the CHF / EUR-peg by the Swiss National Bank, 2015 has become a specially demanding fis-cal year for every Swiss company competing against foreign-based companies. Even though the EUR has regained some strength against the CHF, the Group must stay alert and continue to find ways to maintain the technological strength and to increase productivity in order to safeguard the Group’s net result. Therefore, the management does not be-lieve that 2016 will be any less challenging. The Group will also continue to consolidate its already strong market posi-tion in China, and push forward its activities in South East Asia. However, the situation in the Middle East & Africa re-gion will remain very critical, where also sanctions in some markets are a limit in respect to financial transactions. Over-all, the Group is well settled in the key markets and within the context of its long-term strategy, prepared to continue on the path of a financially sound and independent multi-national family-owned company.


108

Grain Logistics

Total turnover

205 CHF m

Share of Group turnover

9 %

Grain Milling

Total turnover

700 CHF m


29 %

Business Area Grain MillingThe overall market environment for Grain Milling remained stable, with an order volume at a level similar to the prior-year. The growth strategy to further diversify the product portfolio was successfully implemented. Business develop-ment in Industrial Milling remains stable, while Speciality Milling, Brewing and Bakery showed double-digit growth.

While investments in Middle East & Africa were delayed, Eu-rope and North America show saturated markets. The busi-ness in South America and China was affected by the slow down of the economy. Overall, Bühler was able to maintain its market share, also thanks to large investments in com-plex and large projects in markets like Bangladesh.

The new Atta grinding technology was a great success not only in India but also globally. The Pesa technology has po-tential for further applications and plants were already sold for guarassa and maize. Industrial Milling’s top launches in 2015 are Antares Plus (quality / efficiency), Matador (food safety) and Arenit (food safety), while the JetMix technology (Bakery), which was launched at IBA and already sold in three different applications, impressed with its production of homogeneous sponge dough. Tubo (Brewing), a new way of conveying product, was successfully implemented in new applications.

The outlook remains cautiously optimistic. Bakery strives to position itself as a technology leader for dry and liquid handling solutions, while Speciality Milling aims to increase its market share in maize and industrial solutions for local grains.

Business Area Grain Logistics As a result of reaching the main target of 10 % growth, 2015 was the most successful year for Grain Logistics ever. Mar-ket share slightly increased by approximately 1%. Malting exceeded all expectations and remained the dominant mar-ket leader with CHF 81 million in order intake. Customer service grew by almost 28 % in order intake.

The most outstanding performance was achieved in Asia. Mainly driven by paddy solutions, which were successfully introduced in the market, Asia achieved more than CHF 67 million order intake. Another strong performance was achieved in North America, where Malting offerings were a key driver for achieving CHF 40 million in order intake. Double-digit growth was also achieved in the Middle East & Africa.

The 2015 highlights focus on the overall strategy to reduce post-harvest losses. A benchmark was set with innovations in drying. The new drying automation solutions Ecomation and Ecointelligence raise the performance to a new level, by supplying the most energy-efficient grain drying technology. During Agritechnica, the most important exhibition for Grain Logistics in 2015, the cleaning line for mycotoxin reduction was launched. As more and more grains are contaminated, this is a key step in facilitating food and feed safety. As a re-sult of its strong market position, Bühler was able to win all major projects in Grain Logistics.

In 2015 the basis for continued growth over the coming years was laid. The focus regions Asia, South America and Africa showed great potential for further growth. A key pri-ority for 2016 is further decentralizing the core competen-cies, with the aim to additionally boost sales of localized solutions for paddy, soya and maize.

Business Development


109

Sortex & Rice

Total turnover

203 CHF m


9 %

Value Nutrition

Total turnover

509 CHF m


21 %

Business Area Value NutritionIn 2015 the Value Nutrition order intake grew by 1% and turnover by impressive 10 % compared to 2014. The growth has a very heterogenous distribution amongst the regions. Customer service has developed positively with an increase in sales by 7 % turnover. While the market shares remained at the same level for most existing market segments, growth was achieved in new markets.

Whereas business in terms of order intake significantly im-proved in South East Asia, thanks to the largest single order ever for Feed with a volume of CHF 66 million, China slipped into a consolidation phase. The crisis in Ukraine and Russia resulted in a slowdown of business for Value Nutrition in these regions. While business in North America and Europe remained stable, South American markets grew by remark-able 6 %. Middle East & Africa proved again to be very dy-namic for larger projects.

Value Nutrition has participated in various important trade shows in 2015 to promote its innovations, such as the new cooler DFKM and the repositioning of the KubexT, a new flaker, Aeroglides’ roaster launch and the sales of Ceres for RTE as well as the first placement of the New Gen Industrial Dryer and also the expansion of the “Smart”-portfolio in China. In addition, the new Aqua business and Asian Noodles were further developed in the region and around the world.

The overall outlook for 2016 is challenging with a lower order intake than last year. However, the introduction of the CE portfolio in Europe and the strong demand for large project opportunities in Middle East & Africa and emerging markets show great potential for 2016.

Business Area Sortex & Rice In 2015, the Business Area Sortex & Rice consolidated strong growth in order intake and moved into 2016 again with a record number of order backlog. Bühler also achieved its long-term goal of becoming the number one company in worldwide rice processing with regard to turnover. The new Business Unit structure for rice has been established in South Asia, Middle East & Africa and Asia.

Business performance in terms of order intake was led by strong growth in Asia thanks to landmark orders for key processing projects in Thailand, Bangladesh, Indonesia and Philippines. North America and Europe supported business growth with solid performance, while South America, Middle East & Africa and South Asia were also able to real-ize profits.

The launch of the SORTEX E BioVision nut sorter success-fully gained customer acceptance and market acceptance in the USA, Turkey and Moldova with notable large machine orders received for sophisticated walnut shell sorting. Meanwhile, the one hundredth Buhler W optical sorter from Buhler Sortex Hefei was sold in India, thereby strengthening market entry. Further innovations were the introduction of online measurement devices for rice processing and hyper spectral vision systems for protein measurement. In rice and pulses processing, new processing machines were intro-duced, including CE-marked pulses hullers.

The outlook for 2016 is positive. Several large growth op-portunities are expected in fruit and vegetables, rice and pulses processing across the Americas, Asia and Africa. Customer service will strengthen regionally while innovations in measurement and sorting will increase market share.


110

Consumer Foods

Total turnover

266 CHF m


11 %

Die Casting

Total turnover

277 CHF m


12 %

Business Area Die CastingThe strong investment climate in the global automotive in-dustry continued in 2015, leading Die Casting to a record order intake of CHF 308 million and turnover of CHF 277 million with strong performance in the three main regions North America, Europe and Asia. Market share remained stable at 25 %, as all equipment suppliers grew their busi-ness in the expanding market.

All three main regions, Europe, North America and China, strongly contributed to the order intake and turnover growth. Die Casting maintained its global No. 1 market posi-tion, consolidating strong positions with existing customers and opening up new opportunities within large Tier 1 suppli-ers as well as Chinese OEMs.

Die Casting attended the Gifa ’15 and NADCA exhibitions, where the new SmartVac, DataView, structural compe-tences, service solutions, and Bühler technology for the auto motive industry were successfully showcased. Record activity in China and strong growth in North America and Central Eastern Europe have marked the past year. Also, 2015 was a record year for revision activity at Bühler Bres-cia, driven by strong sales in Germany. Customer service saw strong growth in China as well as in North America.

The outlook for 2016 is positive as all three main regions will continue to stay strong due to increased automotive sales. Die Casting will focus on quality, product innovation, further development of its three main hubs in China, Europe and North America as well as strengthening of its local service presence on sales and service platforms all for building a more customer-centric organization.

Business Area Consumer FoodsThe major key accounts have massively invested in the last years and have now entered into a consolidation phase. Moreover, the sluggish demand for confectionery products has slowed down the investment climate. As a conse-quence, order intake has shrunk but with market shares still rising at a high level. Turnover decreased by 4 %, largely driven by currency effects.

Business has suffered in South America and developed ad-versely in China. The order intake in the USA is 20 % behind the previous year, while Middle East & Africa shows strong growth. East Asia and India are growing moderately. Europe, the biggest market, has reduced compared to the previous year, mostly due to missing greenfield projects.

The compact solutions are selling well, particularly the cof-fee Roastmaster, resulting in a new turnover record in 2015, and are a key driver for growth in the Coffee business. The new Infinity Roast for high end coffee applications finds re-markable interest in the market and the moulding line newly manufactured in China helps in gaining ground in the area of chocolate with the bead milling systems. The attendance of several trade shows facilitated entering new markets, e.g. Saudi Arabia, Kazakhstan or Iran. The acquisition of Hoso-kawa Bepex GmbH, Leingarten was a strategic highlight of 2015 and is the foundation for entering into the bars- market, and also new solutions for Nutrition and Bakery.

The business environment remains difficult and a quick recovery of the industry is not expected in the foreseeable future. The Chocolate business will remain slow, whereas Coffee will continue to grow. Nevertheless, positive signs from Middle East & Africa, Europe, the USA and newly launched products and compact solutions support the strategy. This will be achieved also by growing the customer service business.


111

Grinding & Dispersion

Total turnover

77 CHF m


3 %

Leybold Optics

Total turnover

136 CHF m


6 %

Business Area Leybold Optics Leybold Optics was able to defend its strong position in the market with a record year in order intake in Optics product lines. Its turnover increased by 17 % especially due to the realization of excellence in operations with an increase of 10 % of machines manufactured.

In Europe, business development of Leybold Optics met our expectations. The order intake in Asia, which was slightly below the previous year, reflected the economic slowdown in 2015. Leybold Optics was able to increase its market share in South America and South Asia.

Leybold Optics achieved a breakthrough in the optoelec-tronics market with the sale of the precision optics machine HELIOS. In addition, China successfully launched the mid-market ophthalmic optics machine LEYBOLD OPTICS ECS as well as the mid-market metallization device AluMet. Also Optics achieved a record year with the SYRUS coater in ophthalmic optics. In addition, Advanced Materials took the strategic decision to build a state-of-the-art logistics center at Leybold Optics.

In 2015 Leybold Optics has achieved and finalized the turn-around of the company. In 2016, Leybold Optics aims to defend its large volume in order intake and grow fruther in turnover.

Business Area Grinding & DispersionTurnover development was significantly higher than in pre-vious years. Ink solutions again was the largest market seg-ment, achieving more than 50 % of the annual volume, mainly driven by liquid inks for packaging and digital inks applications.

In contrast to previous years, the volumes in the North Amer-ican and European markets were higher than those in Asia, the major reason being the missing plant projects in China and South East Asia. A positive trend was seen in the East Asian region in the ink and high-tech solutions segments.

The first fully continuous mixing line for lithium-ion battery slurries based on twin-screw extruder technology was suc-cessfully commissioned. Furthermore, important contacts with various battery manufacturers for the new continuous mixing process were established. The inauguration of the new lead lab for Asia in China took place in June with the Top Asian Customer Summit. With a significant increase of 25 % compared to the previous year, a new record was achieved for machines manufactured in China. The first machine manufactured in Brazil was presented during the customer event at Joinville in October.

The outlook is very promising, driven by increased activities in the lithium-ion battery industry in Asia and new or reacti-vated projects from the traditional market segments in the chemical industry. Grinding & Dispersion’s plans to further increase customer support through local service stations.


112

Financial Report Bühler Group


113

Notes2015

CHF m2014

CHF m

Sales revenue 1 2,412.3 2,332.2

Changes in inventories of finished goods and work in progress 4.1 – 6.9

Other operating income 2 23.6 30.5

Total operating income 2,440.0 2,355.8

Cost of materials – 1,058.7 – 989.5

Employee benefit expenses 3 – 751.0 – 759.9

Other operating expenses 4 – 401.5 – 402.6

Net result from associates 9 4.5 1.1

Operating result before interest, taxes, depreciation and amortization (EBITDA) 233.3 204.9

Depreciation and amortization 7/8 – 56.2 – 60.3

Operating result before interest and taxes (EBIT) 177.1 144.6

Finance income 5 10.8 13.7

Finance costs 5 – 4.0 – 11.1

Financial result 6.8 2.7

Profit before taxes 183.9 147.3

Income taxes 6 – 41.2 – 26.4

Net profit 142.7 120.9

Attributable to:

A Shareholders of Bühler Holding AG 140.1 113.9

A Non-controlling interests 2.6 7.0

Consolidated statement of income


114

Notes2015

CHF m2014

CHF m

Net profit 142.7 120.9

Other comprehensive income

Translation differences of foreign operations – 28.9 25.1

Available-for-sale financial assets

– Change in fair value 0.0 0.0

– Realized through statement of income 0.0 – 1.0

– Tax effect 0.0 0.2

Cash flow hedges

– Change in fair value 3.8 – 6.9

– Realized through statement of income – 3.3 – 4.7

– Tax effect – 0.1 2.0

Net loss on hedge of net investment – 18.8 – 3.9


Other comprehensive income to be reclassified to profit or loss in subsequent periods – 45.9 11.3

Actuarial gains and losses of defined benefit plans 17.3 – 38.7 – 42.4


Other comprehensive income not to be reclassified to profit or loss in subsequent periods – 31.8 – 34.1

Total other comprehensive income – 77.7 – 22.8

Total comprehensive income 65.0 98.1

Attributable to:

A Shareholders of Bühler Holding AG 63.2 88.7

A Non-controlling interests 1.8 9.4

Consolidated statement of comprehensive income


115

Assets Notes 2015

CHF m 2014

CHF m

Property, plant and equipment 7 400.4 407.3

Intangible assets 8 273.7 301.0

Investments in associates 9 29.0 18.0

Long-term financial assets 10 123.1 99.0

Deferred tax assets 11 38.5 41.7

Non-current assets 864.7 867.0

Inventories 12 347.8 357.5

Net assets of production orders in progress 13 291.3 202.1

Trade accounts receivable 14 506.4 503.3

Other accounts receivable, prepayments and accrued income 15 107.9 118.8

Current income tax assets 5.8 4.4

Marketable securities 16.2 63.2 43.3

Cash and cash equivalents 345.5 436.1

Current assets 1,668.0 1,665.5

Total assets 2,532.7 2,532.5

Equity and liabilities

Share capital 19 15.0 15.0

Capital reserves 185.1 185.1

Other reserves / retained earnings 929.9 904.3

Equity attributable to the owners of the parent 1,130.0 1,104.4

Non-controlling interests 24.8 41.4

Total equity 1,154.8 1,145.8

Long-term financial liabilities 136.6 150.8

Deferred tax liabilities 11 79.4 82.6

Defined benefit obligations 17.4 166.9 111.0

Long-term provisions 18 24.9 25.8

Non-current liabilities 407.8 370.2

Short-term financial liabilities 16.4 15.7

Trade accounts payable 20 240.5 196.8

Net liabilities of production orders in progress 13 338.7 388.2

Short-term provisions 18 46.3 60.1

Other short-term liabilities, accruals and deferred income 21 305.8 341.1

Current income tax liabilities 22.4 14.6

Current liabilities 970.1 1,016.5

Total liabilities 1,377.9 1,386.7

Total equity and liabilities 2,532.7 2,532.5

Consolidated statement of financial position


116

Share capital CHF m

Capital reserve CHF m

Retained earnings CHF m

Hedge reserve CHF m

Available-for-sale reserve CHF m

Foreign currency translation reserves

CHF mTotal reserves

CHF m

Equity attributable to the owners of the parent

CHF m

Non-controlling interests

CHF mTotal equity

CHF m

January 1, 2014 15.0 185.1 986.3 5.4 1.6 – 162.7 1,015.7 1,030.7 31.9 1,062.6

Dividends paid – 15.0 – 15.0 – 15.0 – 6.2 – 21.2

Changes in non-controlling interests 0.0 0.0 6.3 6.3

Net profit 113.9 113.9 113.9 7.0 120.9

Other comprehensive income – 34.1 – 9.6 – 0.8 19.3 – 25.2 – 25.2 2.4 – 22.8

December 31, 2014 15.0 185.1 1,051.1 – 4.2 0.8 – 143.4 1,089.4 1,104.4 41.4 1,145.8

January 1, 2015 15.0 185.1 1,051.1 – 4.2 0.8 – 143.4 1,089.4 1,104.4 41.4 1,145.8

Dividends paid – 15.0 – 15.0 – 15.0 – 3.3 – 18.3

Changes in non-controlling interests – 22.7 – 22.7 – 22.7 – 15.1 – 37.8

Net profit 140.1 140.1 140.1 2.6 142.7

Other comprehensive income – 31.8 0.4 0.0 – 45.6 – 76.9 – 76.9 – 0.8 – 77.7

December 31, 2015 15.0 185.1 1,121.7 – 3.8 0.8 – 189.0 1,114.9 1,130.0 24.8 1,154.8

Consolidated statement of changes in equity


117

Share capital CHF m

Capital reserve CHF m

Retained earnings CHF m

Hedge reserve CHF m

Available-for-sale reserve CHF m

Foreign currency translation reserves

CHF mTotal reserves

CHF m

Equity attributable to the owners of the parent

CHF m

Non-controlling interests

CHF mTotal equity

CHF m

January 1, 2014 15.0 185.1 986.3 5.4 1.6 – 162.7 1,015.7 1,030.7 31.9 1,062.6

Dividends paid – 15.0 – 15.0 – 15.0 – 6.2 – 21.2

Changes in non-controlling interests 0.0 0.0 6.3 6.3

Net profit 113.9 113.9 113.9 7.0 120.9

Other comprehensive income – 34.1 – 9.6 – 0.8 19.3 – 25.2 – 25.2 2.4 – 22.8

December 31, 2014 15.0 185.1 1,051.1 – 4.2 0.8 – 143.4 1,089.4 1,104.4 41.4 1,145.8

January 1, 2015 15.0 185.1 1,051.1 – 4.2 0.8 – 143.4 1,089.4 1,104.4 41.4 1,145.8

Dividends paid – 15.0 – 15.0 – 15.0 – 3.3 – 18.3

Changes in non-controlling interests – 22.7 – 22.7 – 22.7 – 15.1 – 37.8

Net profit 140.1 140.1 140.1 2.6 142.7

Other comprehensive income – 31.8 0.4 0.0 – 45.6 – 76.9 – 76.9 – 0.8 – 77.7

December 31, 2015 15.0 185.1 1,121.7 – 3.8 0.8 – 189.0 1,114.9 1,130.0 24.8 1,154.8


118

Notes2015

CHF m2014

CHF m


Financial result 5 – 6.8 – 2.7

Operating result before interest and taxes (EBIT) 177.1 144.6

Depreciation and amortization 7/8 56.2 60.3

Other items not affecting cash flow – 2.3 – 3.3

Changes in provisions – 3.7 – 2.3

Changes in trade accounts receivable – 28.1 12.5

Changes in inventories – 1.7 – 8.5

Changes in trade accounts payable 55.5 – 11.9

Changes in net assets / liabilities of production orders in progress – 116.2 62.6

Changes in other net operating assets – 17.9 – 41.3

Cash flow generated from operations 119.0 212.7

Gains / losses on disposal of fixed assets 0.6 0.4

Interest received 3.7 2.9

Interest paid – 2.8 – 2.9

Income taxes paid – 21.4 – 25.9

Cash flow from operating activities 99.1 187.2

Purchase of property, plant and equipment – 50.4 – 55.1

Disposal of property, plant and equipment 5.1 2.5

Purchase of intangible fixed assets – 3.6 – 2.7

Cash flow from business combinations of Group companies, net of cash 22 – 7.4 – 10.8

Purchase of non-consolidated participations 0.0 – 1.6

Purchase of marketable securities – 40.3 – 25.4

Disposal of marketable securities 11.7 13.0

Purchase of long-term financial assets – 23.8 – 1.8

Disposal of long-term financial assets 3.2 3.9

Dividends received 1.3 1.6

Cash flow from investing activities – 104.4 – 76.4

Proceeds from financial liabilities 0.0 0.2

Repayment of financial liabilities – 15.0 – 15.6

Acquisitions and other transactions with non-controlling interests – 37.8 2.4

Dividends paid of Bühler Holding AG – 15.0 – 15.0

Dividends paid to non-controlling interests – 3.3 – 6.2

Cash flow from financing activities – 71.2 – 34.2

Currency translation differences – 14.3 12.1

Changes in cash and cash equivalents – 90.7 88.7

Cash and cash equivalents at the beginning of period 436.1 347.4

Cash and cash equivalents at the end of period 345.5 436.1

EBIT includes share of profit of associates in the amount of CHF 4.5 million (prior year: CHF 1.1 million); thereof cash-effective CHF 0.9 million (prior year: CHF 0.9 million). Changes in provisions include changes in short- and long-term provisions, defined benefit obliga-tions and deferred taxes.

Consolidated statement of cash flows


119

Accounting policiesBasis of preparation. The consolidated financial statements of the Bühler Group have been prepared in accordance with the Interna-tional Financial Reporting Standards (IFRS) and comply with Swiss law. The consolidated financial statements are based on the audited single-entity financial statements of the Group companies, which are prepared in accordance with consistent accounting principles. The consolidated financial statements are prepared under the historical cost convention. Any exceptions to this general rule are outlined in the following accounting policies.

Due to rounding, the numbers do not necessarily correspond exactly with the totals.

Adoption of revised and new IFRS and new interpretations. The accounting policies adopted are consistent with those of the previ-ous fiscal year, except for the following new and amended IFRS and IFRIC interpretations effective as of January 1, 2015. Only revised and new IFRS have been included in the following list which are rele-vant to the Group:

Amendments to IAS 19 Defined Benefit Plans – Employee Contribu-tions. IAS 19 requires an entity to consider contributions from em-ployees or third parties when accounting for defined benefit plans. Where the contributions are linked to service, they should be attrib-uted to periods of service as a negative benefit. These amendments clarify that, if the amount of the contributions is independent of the number of years of service, an entity is permitted to recognize such contributions as a reduction in the service cost in the period in which the service is rendered, instead of allocating the contributions to the periods of service. This amendment is effective for annual periods beginning on or after July 1, 2014. This amendment is not relevant to the Group, since none of the entities within the Group has defined benefit plans with contributions from employees or third parties.

Annual Improvements 2010 – 2012 Cycle. All improvements are effective for accounting periods beginning on or after July 1, 2014. The Group has applied these improvements for the first time in these consolidated financial statements. They include:

IFRS 3 Business Combinations. The amendment is applied pro-spectively and clarifies that all contingent consideration arrange-ments classified as liabilities (or assets) arising from a business com-bination should be subsequently measured at fair value through profit or loss whether or not they fall within the scope of IAS 39. This is consistent with the Group’s current accounting policy and, thus, this amendment did not impact the Group’s accounting policy.

Standards, interpretations and amendments published but not yet applied. Standards, interpretations and amendments published but not yet applied up to the date of issuance of the Group’s financial statements are listed below. The Group intends to adopt these stan-dards when they become effective. They may have an impact on future consolidated financial statements and are being monitored and analyzed.

Notes to the financial statements

IFRS 9 Financial Instruments. In July 2014, the IASB issued the final version of IFRS 9 Financial Instruments, which reflects all phases of the financial instruments project and replaces IAS 39 Financial Instru-ments: Recognition and Measurement and all previous versions of IFRS 9. The standard introduces new requirements for classification and measurement, impairment and hedge accounting. IFRS 9 is effective for annual periods beginning on or after January 1, 2018, with early application permitted.

Amendments to IFRS 10 and IAS 28: Sale or Contribution of Assets between an Investor and its Associated or Joint Venture. The amend-ments address the conflict between IFRS 10 and IAS 28 in dealing with the loss of control of a subsidiary that is sold or contributed to an associate or joint venture. The amendments clarify that the gain or loss resulting from the sale or contribution of assets that consti-tute a business, as defined in IFRS 3, between an investor and its associate or joint venture, is recognized in full. Any gain or loss re-sulting from the sale or contribution of assets that do not constitute a business, however, is recognized only to the extent of unrelated investors’ interests in the associate or joint venture. These amend-ments must be applied prospectively and are effective for annual periods beginning on or after January 1, 2016, with early adoption permitted. These amendments are not expected to have any impact on the Group.

IFRS 15 Revenue from Contracts with Customers. IFRS 15 was is-sued in May 2014 and establishes a new five-step model that will apply to revenue arising from contracts with customers. Under IFRS 15 revenue is recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The principles in IFRS 15 provide a more structured approach to measuring and recognizing revenue. The new revenue standard is applicable to all entities and will super-sede all current revenue recognition requirements under IFRS. Either a full or modified retrospective application is required for annual peri-ods beginning on or after January 1, 2018, with early adoption per-mitted. The Group is currently assessing the impact of IFRS 15 and plans to adopt the new standard on the required effective date.

IAS 19 Employee Benefits. The amendment clarifies that market depth of high-quality corporate bonds is assessed based on the cur-rency in which the obligation is denominated, rather than the country where the obligation is located. When there is no deep market for high-quality corporate bonds in that currency, government bond rates must be used. This amendment must be applied prospectively.

Amendments to IAS 1 Disclosure Initiative. The amendments to IAS 1 Presentation of Financial Statements clarify, rather than sig-nificantly change, existing IAS 1 requirements. The amendments are effective for annual periods beginning on or after January 1, 2016, with early adoption permitted. These amendments are not expected to have any impact on the Group.


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Use of estimates. The preparation of the consolidated financial state-ments in accordance with IFRS requires management to make esti-mates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities and the related disclosures at the date of the financial statements. These estimates are based on man-agement’s best knowledge of current events and possible future measures. However, actual results could differ from those estimates.

If in future such estimates and assumptions, which are based on management’s best knowledge at the date of the financial state-ments, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the year in which the circumstances change.

The estimates and assumptions that may have a higher risk of caus-ing a material adjustment to the carrying amounts of assets and lia-bilities within the next financial periods relate primarily to long-term construction contracts, goodwill and, to a lesser extent, defined benefit obligations, deferred tax assets, provisions and disclosure of contingent liabilities at the end of the reporting period.

The Group accounts for customer projects using the percentage-of-completion method. Revenue (including a carefully estimated share of the outcome of the contract) is recognized by reference to the stage of completion. The stage of completion is determined accord-ing to the cost-to-cost method. The percentage-of-completion meth-od involves the use of estimates and forecasts concerning future costs; actual costs may differ from these estimates. The forecasts are reviewed on a regular basis and adapted where necessary. These changes affect costs, the stage of completion, and both realized and anticipated profits. Any changes in estimates are recognized in the period in which they occur. Losses identified on long-term construc-tion contracts are recognized as an expense immediately. Losses on long-term construction contracts occur when the expected contract costs exceed the expected revenue.

The Group tests annually whether goodwill has suffered any impair-ment in accordance with its accounting policy. The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. These calculations require the use of estimates.

The cost of defined benefit pension plans and other long-term em-ployee benefits is determined using actuarial valuations. Actuarial valuations involve making assumptions about discount rates, future salary increases, mortality rates, and future pension increases. Due to the long-term nature of these plans, such estimates are subject to significant uncertainty.

The Group recognizes a collective valuation allowance based on its past experience of warranty costs on projects with similar conditions. Other known risks and risks related to projects with special condi-tions are estimated on a case-by-case basis and measured individu-ally. The actual warranty costs incurred may differ from the costs provided for.

All estimates mentioned above are further detailed in the correspond-ing disclosures.

Scope of consolidation. These financial statements are the consoli-dated financial statements of Bühler Holding AG, a company regis-tered in Uzwil, Switzerland, and its subsidiaries. The list of subsidiar-ies is presented in Note 30 “Significant Group companies”.

Principles of consolidation. Subsidiaries, which are those entities in which the Group has an interest of more than one half of the voting rights or otherwise has the power to exercise control over the opera-tions, are consolidated. The cost of an acquisition is measured at the fair value of the consideration transferred at the date of exchange. For each business combination, the acquirer measures the non-controlling interest in the acquiree either at fair value or at the pro-portionate share of the acquiree’s identifiable net assets. Acquisition costs incurred are expensed in the statement of income. Identifiable assets acquired and liabilities assumed in a business combination are measured initially at fair value at the date of acquisition, irrespec-tive of the extent of any non-controlling interest assumed. When the Bühler Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances, and pertinent conditions as at the acquisition date.

If the business combination is achieved in stages, the acquisition date fair value of the Bühler Group’s previously held equity interest in the acquiree is remeasured to fair value as at the acquisition date in the statement of income.

Any contingent consideration to be transferred by the Group is rec-ognized at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration are recognized in the statement of income.

Subsidiaries are consolidated from the date on which control is trans-ferred to the Group and are no longer consolidated from the date that control ceases.

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.

All intercompany transactions and balances between Group compa-nies are eliminated in full.

Investments in associated companies are accounted for using the equity method of accounting. These are companies over which the Group generally holds between 20 % and 50 % of the voting rights and has significant influence but does not exercise control. Goodwill arising on the acquisition is included in the carrying amount of the investment in associated companies. Equity accounting is discontin-ued when the carrying amount of the investment together with any long-term interest in an associated company reaches zero, unless the Group has in addition either incurred or guaranteed additional obligations in respect to the associated company.

Investments below 20 % are recognized at fair value and presented as non-current financial assets. Changes in fair value are recognized directly in other comprehensive income.


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Changes in the scope of consolidation. In the reporting period the scope of consolidation changed as follows:

Additions A Bühler Leingarten GmbH, Germany A Buhler DMCC, Dubai A Shijiazhuang Buhler Mechanical Co. Ltd. A Buhler Pakistan (Private) Limited, Lahore

Deletions A Buhler S.à.r.l., Paris A Bühler PARTEC GmbH, Saarbrücken A Buhler Sortex Inc., Stockton

Foreign currency translation. The individual financial statements of the Group companies are measured using the currency of the pri-mary economic environment in which the entity operates (“the func-tional currency”) and are translated into Swiss francs for consolida-tion. Year-end exchange rates are used for the statement of financial position and annual average exchange rates for the statement of income. The consolidated statement of cash flows is also translated at annual average exchange rates.

Differences resulting from the application of these different exchange rates for the statement of financial position and the statement of income and from equity transactions are recognized directly in the consolidated statement of comprehensive income.

Goodwill arising on the acquisition of a foreign entity is expressed in the functional currency of the foreign operation and is translated at the closing rate.

Foreign currency transactions translated into the functional currency are accounted for at the exchange rates prevailing at the date of the transactions; gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabili-ties denominated in foreign currencies are recognized in the state-ment of income, except when they are deferred outside the state-ment of income as qualifying cash flow hedges.

Foreign exchange differences arising on monetary items that form part of a company’s net investment in a foreign operation are reclas-sified to equity (currency translation adjustment) in the consolidated financial statements and are only fully recycled to the statement of income when Bühler Group loses control of a subsidiary or loses significant influence in an associate.

For foreign currency translation, the Bühler Group used the following exchange rates:

Average exchange rates Closing rates Dec 31

2015 CHF

2014 CHF

2015 CHF

2014 CHF

Europe 1.068200 1.214500 1.083000 1.203000

Great Britain 1.471100 1.507000 1.471000 1.529000

Czech Republic 0.039160 0.044200 0.040000 0.043500

USA 0.962300 0.915500 0.987000 0.985000

Canada 0.753900 0.828700 0.712000 0.846000

Brazil 0.293000 0.389000 0.250000 0.370000

Argentina 0.104800 0.113000 0.075000 0.115000

Japan 0.007950 0.008653 0.008190 0.008200

India 0.015000 0.015000 0.014900 0.015600

China 0.153200 0.148600 0.152700 0.158200

Mexico 0.060800 0.068800 0.057100 0.067200

South Africa 0.075900 0.084400 0.064400 0.084900

Thailand 0.028135 0.028190 0.027350 0.029900

Singapore 0.700400 0.722300 0.701600 0.745200


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Property, plant and equipment. Property, plant and equipment is val-ued at acquisition or construction cost less depreciation and write-downs for impairment. Items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful life, except for land, which is not depreciated. Estimated useful lives of major classes of depreciable assets are as follows:

Buildings

A Building shell 25 –100 years

A Installations / extensions 15 – 35 years

Machinery and technical equipment 8 –16 years

IT hardware 2 – 4 years

Other tangible fixed assets 3 – 7 years

The estimated useful life of the assets is regularly reviewed and, if necessary, the future depreciation charge is accelerated.

Costs are only included in the asset’s carrying amount when it is probable that economic benefits associated with the item will flow to the Group in future periods and the cost of the item can be mea-sured reliably.

Investment properties. Investment properties are capitalized in the statement of financial position at cost less depreciation and write-downs for impairment. The fair values of such properties, which are reported separately in the notes, are based mainly on in-house cal-culations (comparison with valuations of similar properties). Repair and maintenance expenses are expensed as incurred.

Leases. Leases of property, plant and equipment where the Group has substantially all the risks and rewards of ownership are classified as finance lease. Property, plant and equipment acquired through a finance lease is capitalized at the date of the commencement of the lease term at the present value of the minimum future lease payment or, if lower, at the amount equal to the fair value of the leased asset as determined at the inception of the lease. The associated liabilities are recognized as either current or non-current financial liabilities, depending on their due dates.

Leases where substantially all the risks and rewards of ownership are not transferred to the Group are classified as operating leases. Pay-ments under operating leases are charged to the statement of in-come on a straight-line basis over the period of the lease.

Assets under finance leases where the Bühler Group acts as lessor are recognized as receivables in the amount of the net investment. The risks and rewards incidental to ownership are transferred to the lessee. Lease income from these finance leases is subsequently recognized over the term of the lease based on the effective interest method.

Intangible assets. Goodwill represents the excess of the aggregate of the consideration transferred and the amount recognized for the non-controlling interest over the fair value of the net identifiable assets acquired and liabilities assumed. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on acquisitions of associates is included in investments in associates.

Goodwill is tested annually for impairment or whenever there are impairment indicators and is carried at cost less accumulated impair-ment losses.

If the consideration transferred is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the statement of income.

On disposal of a subsidiary, associate or joint venture, the related goodwill is included in the determination of profit or loss on disposal.

Goodwill on acquisitions of subsidiaries and interests in joint ven-tures is allocated to cash-generating units for the purpose of impair-ment testing. Impairment losses relating to goodwill cannot be re-versed in future periods.

Acquired patents, licenses, trademarks, and similar rights are ini-tially recorded at cost and amortized on a straight-line basis over their estimated useful life or a period not exceeding 15 years. Intan-gible assets acquired through business combinations are carried in the statement of financial position at the fair value allocated in the acquisition accounting and amortized over their estimated useful life.

Impairment of assets. At each reporting date, the Group assesses whether there is any indication that an asset may be impaired. If any such indication exists, the recoverable amount of the asset is esti-mated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of an in-dividual asset, the Group estimates the recoverable amount of the smallest cash-generating unit to which the asset belongs. The recov-erable amount is the higher of an asset’s or cash-generating unit’s fair value less costs to sell and its value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount. Impairment losses are recognized immediately in the statement of income.

Where an impairment loss is subsequently reversed, the carrying amount of the asset or cash-generating unit is increased to the re-vised estimate of its recoverable amount. However, this increased amount cannot exceed the carrying amount that would have been determined had no impairment loss been recognized for that asset or cash-generating unit in prior periods. A reversal of an impairment loss is recognized immediately in the statement of income.


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Financial assets and liabilities. A distinction is made between the following four categories:

A Financial assets “at fair value through profit or loss” are generally acquired with the intention of generating a profit from short-term fluctuations in price.

A “Held to maturity” investments are those with a fixed maturity that the Bühler Group has the positive intention and ability to hold to maturity.

A “Loans and receivables” include loans granted and accounts receivable.

A All other financial assets are classified as “available for sale”.

Financial assets “at fair value through profit or loss” are recognized on acquisition at cost and subsequently measured at fair value, with fair value changes recognized in the financial result in the period in which they arise.

“Held to maturity” investments as well as “Loans and receivables” are measured at amortized costs using the effective interest method.

“Available for sale” financial assets are measured subsequent to their initial recognition at fair value, with unrealized gains and losses rec-ognized in other comprehensive income. When the financial asset is either impaired or disposed of, the cumulative gain or loss previ-ously recognized in the other comprehensive income is reclassified from equity to the statement of income.

Purchases and sales are recognized at the trade date rather than at the settlement date.

The fair values of financial assets that are traded in an active market are based on the fair values at the end of the reporting period. The fair values of financial assets that are not traded in an active market are determined using established valuation techniques.

Financial liabilities consist mainly of borrowings, which are initially recognized with the proceeds received, net of transaction cost in-curred. Subsequently, the borrowings are measured at amortized cost using the effective interest method with any difference between net proceeds and the principal value due on redemption being rec-ognized in the statement of income over the term of the borrowings.

Financial assets are derecognized when the Bühler Group relinquish-es control over them, that is when the contractual cash flows from the asset are sold or expired. Financial liabilities are derecognized when its contractual obligations are discharged, cancelled or expired.

Derivative financial instruments and hedge accounting. Derivative financial instruments are initially recognized at cost and subsequently at fair value (replacement cost). The method applied in recognizing the resulting profits or losses depends on whether a derivative was designated for hedging purposes, and if so, on the type of position being hedged. Certain derivatives may be used to hedge foreign cur-rency risks in connection with a transaction that is highly likely to take place in future, or to hedge a fixed commitment (hedging of cash flows). When the hedge is implemented, the Group documents the relationship between the hedging instrument and the risk being hedged, as well as setting out risk management objectives and strat-egies. Furthermore, the Group records its assessment of the effec-tiveness of the hedging instrument with respect to the hedged cash flows, both when the hedging transaction is concluded and on an ongoing basis.

The full fair value of a hedging derivative is classified as a non-cur-rent asset or liability when the remaining maturity of the hedged item is more than twelve months; it is classified as a current asset or liability when the remaining maturity of the hedged item is less than twelve months. Trading derivatives are classified as a current asset or lia bility.

The hedging of cash flows is undertaken for certain anticipated Group-internal transactions as well as for the foreign currency risk of firm commitments. The effective portion of the change in fair val-ue of derivatives used for the hedging of cash flows is recognized in other comprehensive income. The ineffective portion of the hedging instrument is immediately recognized as financial result in the state-ment of income.

Amounts accumulated in other comprehensive income are recycled in the statement of income in the periods when the hedged item affects profit or loss. When a forecasted transaction is no longer expected to occur, the cumulative gain or loss that was recorded in other comprehensive income is immediately transferred to the state-ment of income.

Derivatives not designated as hedging instruments are accounted for at fair value through profit or loss. Changes in the fair value of these derivative instruments are recognized immediately as financial result in the statement of income.

Non-current assets (or disposal groups) classified as held for sale. Any non-current assets held for sale and discontinued operations are presented under this item. This includes all those assets associated with the discontinuation of entire lines of business or geographical areas of operation, which are to be realized through a sale transac-tion rather than through continued use. Reclassifications are only made if management is committed to the sale and has started seek-ing buyers. In addition, the asset or disposal group must be available for sale in its current condition and its sale must be highly probable within one year. Non-current assets or disposal groups classified as held for sale are no longer depreciated. If necessary, they are written down for impairment.

The income and expenses of discontinued operations are separated from ordinary income and expenses in the statement of income for both the reporting period and the prior-year down to the “profit after tax” level. The resulting gain or loss (after taxes) is presented sepa-rately in the statement of income.


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Inventories. Inventories are carried at the lower of cost or net realiz-able value. The cost of finished goods, semi-finished goods and work in progress includes raw materials, direct labor and other directly attributable costs and overheads based on the normal capacity of production facilities, excluding borrowing costs. Cost is determined using the standard cost method. Standard costs are regularly re-viewed and, if necessary, revised in light of current conditions. Net realizable value is the estimated selling price less cost to completion and selling expenses. Obsolete inventories and goods with a low rate of inventory turnover are written down.

Advance payments to suppliers are also included in inventories.

Accounts receivable. Trade and other accounts receivable are car-ried at the original invoice amount less allowances made for doubtful accounts, trade discounts, volume rebates and similar items. Financ-ing of customer orders using the Group’s own funds as part of its treasury strategy is included in this item.

Marketable securities. Marketable securities include those that are held for trading without participation features. Securities included in financial assets are categorized as available for sale.

Cash and cash equivalents. Cash and cash equivalents include cash on hand, time, call and current balances with banks and similar insti-tutions. Cash and cash equivalents are carried at nominal amount. Such balances are only reported as cash and cash equivalents if they are readily convertible to known amounts of cash, are subject to insignificant risk of changes in value, and have a maturity of three months or less from the date of acquisition.

Employee benefits. The company has, apart from legally required social security arrangements, numerous independent pension plans, which are either defined contribution plans or defined benefit plans. Further on, the company sponsors numerous other long-term employee benefit plans.

Employee benefits – defined benefit plans. These plans are generally funded through payments to legally independent pension or insur-ance funds.

The aggregate of the present value of the defined benefit obligation and the fair value of plan assets for each plan is recorded in the bal-ance sheet as net defined benefit liability or net defined benefit asset under long-term financial assets. The defined benefit obligation is determined annually by independent actuaries using the projected unit credit method. If the fair value of the plan assets exceeds the present value of the defined benefit obligation, only a net pension asset is recorded, taking account of the asset ceiling.

Pension costs consist of three elements: service costs, net interest, and remeasurements of employee benefits.

Service costs are part of personnel expenses and consist of current service costs, past service costs (including gains / losses from plan amendments or curtailments) and gains / losses from plan settlements.

Net interest is recorded as part of personnel expenses and is deter-mined by applying the discount rate to the net defined liability or net defined asset that exists at the beginning of the year.

The gains and losses resulting from the actuarial valuation are imme-diately recorded in other comprehensive income as remeasurements employee benefits. The return on plan assets (excluding interest based on the discount rate) and any change in the effect of an asset ceiling are also recorded in this item. Remeasurements of employee benefits are not recycled through the income statement at any later point in time.

Pension assets and pension liabilities in different defined benefit plans are not offset unless the Group has a legally enforceable right to use the surplus in one plan to settle obligations in the other plan.

Employee benefits – defined contribution plans. In addition to the defined benefit plans described above, some Group companies sponsor defined contribution plans based on local practices and regulations. The Group’s contributions to defined contribution plans are charged to the statement of income in the period to which the contributions relate.


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Employee benefits – other long-term employment benefits. Other long-term employment benefits include jubilee, early retirement or other long-term service benefits, as well as deferred compensation, if not due to be settled within twelve months after the year-end.

The Bühler Group operates deferred compensation plans for mem-bers of the management. The deferred compensation plans comprise a vesting period of three years and an execution period of ten years from the grant date. The amounts are charged to the statement of income over the relevant vesting periods and are adjusted to reflect actual and expected levels of vesting. The value of the deferred com-pensation is determined annually based on the Group’s annual profit for the three preceding years and equity at year-end.

The obligations for other long-term employment benefits are dis-closed as provisions for personnel expenses. The measurement of these obligations differs from defined benefit plans in that all actu-arial gains and losses are recognized immediately in the statement of income.

Provisions. Provisions are recognized when Bühler has a legal or constructive obligation arising from past events, an outflow of re-sources embodying economic benefits to settle the obligation is probable, and a reliable estimate can be made of this amount.

When the Group expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is rec-ognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit or loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropri-ate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Taxes. Income taxes comprise the tax expense in respect of all recognized profits for the reporting period. They include current and deferred income taxes. Current income taxes are calculated on tax-able profit. Provisions for deferred taxes are calculated according to the liability method. Deferred taxes are recognized for temporary dif-ferences between the carrying amounts of assets and liabilities in the consolidated statement of financial position and their tax base taking into account actual or expected local tax rates. Changes in deferred tax balances are recognized in the statement of income, except when they relate to items recognized outside the statement of income, in which case the deferred tax is treated accordingly.

Current income tax relating to items recognized directly in equity is recognized in equity and not in the statement of income.

Deferred tax assets are only recognized for temporary differences and unused tax loss carry-forwards to the extent that it is probable that future taxable profit will be available against which temporary differences or unused tax losses can be utilized.

Borrowing costs. Borrowing costs which are directly attributable to the acquisition, construction, or production of a qualified asset are capitalized as part of the cost of that asset.

Research and development costs. Research costs are recognized in the statement of income in the period in which they are incurred. Development costs are capitalized only if, and to the extent that, the IFRS criteria are met and it is highly probable that the present value of the expected returns will exceed the development costs. Capital-ized development costs are amortized on a systematic basis over the period in which the returns are expected to flow to the Group.

Construction contracts, revenue and profit recognition. Revenue is recognized when it is probable that the economic benefits associ-ated with the transaction will flow to the entity and the amount of the revenue can be measured reliably. Revenue is measured at the fair value of the consideration received net of sales taxes and discounts. Revenue from the sale of goods is recognized when delivery has taken place and the transfer of risks and rewards of ownership has been completed.

Long-term construction contracts are accounted for using the per-centage-of-completion method. The stage of completion is deter-mined using the cost-to-cost method. The costs include a risk pre-mium. The consolidated statement of income includes the pro rata revenue and a carefully estimated share of the outcome of the con-tract; the consolidated statement of financial position includes the relevant assets or liabilities after offsetting advance payments.


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Financial risk management As a result of its global activities, the Group is exposed to financial market risks (currency risk, interest rate risk, price risk), credit risks and liquidity risks. Financial risk management focuses on the man-agement of currency risk and credit risk. Derivative financial instru-

ments are used to hedge certain risks. The risk management func-tion is exercised by the Group Treasury department in close collaboration with the operating units, as well as in accordance with treasury directives.

Financial assets

2015

Cash and cash

equivalents CHF m

Securities CHF m

Receivables & accruals

CHF m

Financial assets CHF m

Total book value

CHF m

Total market value

CHF m

Cash reserves 345.5 345.5 345.5

Financial assets “at fair value through profit or loss” 63.2 63.2 63.2

Receivables and loans 614.3 89.9 704.2 704.2

Financial assets “available for sale” 12.2 4.9 17.1 17.1

Total financial assets 345.5 75.4 614.3 94.8 1,130.0 1,130.0

2014

Cash and cash

equivalents CHF m

Securities CHF m

Receivables & accruals

CHF m

Financial assets CHF m

Total book value

CHF m

Total market value

CHF m

Cash reserves 436.1 436.1 436.1

Financial assets “at fair value through profit or loss” 43.3 43.3 43.3

Receivables and loans 622.1 90.5 712.6 712.6

Financial assets “available for sale” 6.1 6.1 6.1

Total financial assets 436.1 43.3 622.1 96.6 1,198.1 1,198.1

Financial liabilities

2015

Financial liabilities CHF m

Payables / accruals and

deferred income CHF m

Total book value

CHF m

Total market value

CHF m

Financial liabilities at amortized acquisition costs 136.6 546.3 682.9 682.9

Financial liabilities “at fair value through profit and loss” 16.4 16.4 16.4

Total financial liabilities 153.0 546.3 699.3 699.3

2014

Financial liabilities CHF m

Payables / accruals and

deferred income CHF m

Total book value

CHF m

Total market value

CHF m

Financial liabilities at amortized acquisition costs 150.8 537.8 688.6 688.6

Financial liabilities “at fair value through profit and loss” 15.7 15.7 15.7



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Market risk. Bühler is exposed to market risks that relate primarily to exchange rates, interest rates, and the fair value of investments in liquid financial assets. The Group monitors these risks on an ongoing basis and reports to the Finance Committee every month. In order to manage the volatil ity associated with these risks, the Group employs financial derivative instruments such as forward contracts and options.

Exchange rate risk. The Group reports in Swiss francs and is there-fore exposed to exchange rate movements primarily in European, North American, South American, and Asian currencies. Various con-tracts are concluded with a view to offsetting exchange rate-related changes in the value of assets, liabilities, and future transactions. Bühler also uses currency forwards and options for this purpose. Net investments in foreign Group companies are long-term in nature. Their fair value changes with exchange rates. Over the very long term, however, the change in the inflation rate should match the cor-responding exchange rate movements, so that changes in the fair value of foreign investments will offset the exchange rate-related changes in value. For this reason, Bühler only hedges its investments in foreign Group companies in exceptional cases.

The following table shows the hypothetical repercussions of changes in the key currency pairs on profit after taxes. The volatility value used in the calculation is that of one-year historical volatility as per December 31.

2015 Currency pair EUR / CHF USD / CHF

Volatility 7.7 % 10.4 %

Effect in profit and loss (rate increase) CHF m 0.2 – 3.5

Effect in profit and loss (rate decrease) CHF m – 0.9 3.2

2014 Currency pair EUR / CHF USD / CHF

Volatility 2.7 % 7.4 %

Effect in profit and loss (rate increase) CHF m 1.4 – 5.1

Effect in profit and loss (rate decrease) CHF m – 1.6 2.9

Commodity risk. Bühler is exposed to a certain degree of com modity price risk due to fluctuations in the prices of commodities required for production process. The Group does not conclude any significant futures, forwards, or options to hedge future commodity purchases.

Equity security risk. The Group buys shares in other companies in order to invest its liquid funds. It does so in accordance with the treasury strategy approved by the Board of Directors. This sets pre-cise limits, including investments in shares. Bühler limits the risk across all asset classes by holding less than 5 % of the Group’s invested funds in any single outside company. Call or put options are covered by securities or cash positions.

Interest rate risk. Interest rate risk arises from changes in interest rates that may affect the net assets and results of the Bühler Group. These risks are managed and monitored centrally. The robust liquid-ity situation and the fact that the Group is not reliant on external financing mean that interest rate changes have no material impact on the financial result of the Group.

Changes in market interest rates may have an impact on the value of bonds in the category of financial assets stated at fair value. Assum-ing that the interest rate for all currencies had increased by 100 basis points while all other factors remained constant, the increased inter-est rates would have had an effect on the profit after taxes of CHF – 0.2 million (prior year: CHF – 0.3 million). A reduction of the interest rate by 100 basis points would have the opposite effect on profit after taxes to the value of CHF 0.2 mill ion (prior year: CHF 0.3 million).

Credit risk. Credit risks arise in connection with liquid funds, deriva-tive financial instruments, investments with banks, marketable secu-rities, and receivables from customers. In order to minimize potential losses on customers receivables, an Operational Risk Management (ORM) guideline has been drawn up. The evaluation of our custom-ers’ financial reliability and / or the terms of payment and hedging on our deliveries are key concerns in this respect. In addition, it can be stated that none of our customers has outstanding payments ac-counting for more than 5 % of Group sales. The nominal value of the trade accounts receivable less valuation allowances is considered an approximation of the receivables’ fair value. The book values stated represent the maximum credit risk. The default risk on market-able securities, derivative financial instruments, money market con-tracts, current-account deposits, and time deposits is minimized on one hand through the exclusive purchase of securities with at least an A rating, and on the other by selecting only financial institutions with at least an investment grade rating as the Group’s main global banks. The risks are monitored rigorously and kept within stipulated parameters. Group guidelines ensure that the Group’s credit risk vis-à-vis financial insti tutions is limited. The limits set are regularly moni-tored and adjusted. The Group does not expect to incur any loss as a result of its counterparties being unable to meet their contractual obligations, nor does it have any cluster risks with respect to indi-vidual sectors or countries.


128

Receivables outstanding analysis

2015

Total book value

Dec 31, 2015 CHF m

Not due CHF m

Overdue

< 3 months CHF m

4 – 6 months CHF m

7– 9 months CHF m

10 –12 months CHF m

> 12 months CHF m

Accounts receivable trade and other 618.5 512.1 52.2 17.3 9.4 7.2 20.3

Allowance for bad debts – 10.1 0.0 – 0.6 0.0 – 0.3 – 0.3 – 8.9

Associated companies and other related parties 5.9 5.9

Total accounts receivable, net 614.3 518.0 51.6 17.3 9.1 6.9 11.4

2014

Total book value

Dec 31, 2014 CHF m

Not due CHF m

Overdue

< 3 months CHF m

4 – 6 months CHF m

7– 9 months CHF m

10 –12 months CHF m

> 12 months CHF m

Accounts receivable trade and other 625.3 528.6 54.5 13.0 5.4 7.2 16.6

Allowance for bad debts – 9.7 0.0 – 1.3 0.0 – 0.3 – 1.5 – 6.6

Associated companies and other related parties 6.5 6.5

Total accounts receivable, net 622.1 535.1 53.2 13.0 5.1 5.7 10.0

Allowance for bad debts2015

CHF m2014

CHF m

January 1 – 9.7 – 10.9

Additions – 4.2 – 4.5

Consumption 1.6 0.6

Release 1.6 5.2

Changes in scope of consolidation 0.0 0.0

Translation differences 0.6 – 0.1

December 31 – 10.1 – 9.7


129

Liquidity risk. Liquidity risk refers to the risk of the Group being unable to fulfill its obligations when due or at a reasonable price. The Group Treasury department is responsible for monitoring liquidity, financing, and repayment. In addition, liquidity and financing risks and the related processes and guidelines are checked by corporate management. Bühler manages its liquidity risk on a consolidated basis, taking into account business policy, tax, financial and regu-latory considerations. Free cash flow represents the main source of financing. If required, the Group also has recourse to approved lines of credit. Corporate management monitors the Group’s net liquidity position by means of ongoing forecasts based on expected cash flows.

Capital management. One of the Group’s main objectives is to apply a well-managed capital management system in order to ensure the continuity of the Group and generate added value for all stakehold-ers. Another goal is to optimize the cost of capital. Bühler does not have to comply with any capital requirements imposed by third par-ties, since the extent of its financial liabilities to third parties is of a negligible magnitude. Group management reviews the capital structure of the Group and the equity of Group companies on a regu-lar basis. As at December 31, 2015, the equity ratio stood at 45.7 % (December 31, 2014: 45.2 %).

2015

Book value Dec 31, 2015

CHF m

Cash outflow

Total CHF m

< 1 year CHF m

1– 5 years CHF m

> 5 years CHF m

Trade accounts payable to third parties 236.8 236.8 236.8

Financial liabilities to banks 0.0 0.0 0.0

Liabilities to associates, non-consolidated companies and related parties 152.4 152.4 20.2 77.2 55.0

Liabilities others / accruals and deferred income 316.1 316.1 311.3 4.8

Derivative financial instruments held for hedging net 6.4 6.4 7.1 – 0.7

Total 711.7 711.7 575.4 81.3 55.0

2014

Book value Dec 31, 2014

CHF m

Cash outflow

Total CHF m

< 1 year CHF m

1– 5 years CHF m

> 5 years CHF m

Trade accounts payable to third parties 193.0 193.0 193.0

Financial liabilities to banks 0.0 0.0 0.0

Liabilities to associates, non-consolidated companies and related parties 166.0 166.0 20.3 90.7 55.0

Liabilities others / accruals and deferred income 344.5 344.5 339.4 5.1

Derivative financial instruments held for hedging net 6.7 6.7 6.0 0.7

Total 710.2 710.2 558.7 96.5 55.0


130

Risk assessment. The Board of Directors of Bühler Group assesses corporate risks by undertaking systematic risk identification and analysis. Based on this assessment, the measures required for risk management in the company are defined and monitored. The cor-responding meeting of the Board of Directors took place on Decem-ber 14, 2015.

Estimation of fair values. The fair values of financial instruments that are actively traded on markets are based on the relevant trading exchange prices (offer prices) on the balance sheet reference date. Instruments of this nature are classified as Level 1. The fair values of financial instruments that are not actively traded on markets (e.g., derivative OTC instruments) are determined using valuation models. If all the parameters required for the valuation are based on observ-able market data, the instrument in question is classified as Level 2. If one or more parameters are based on unobservable market data, the instrument is classified as Level 3. In the period under review as well as in the prior year no transfer occurred within the Levels.

2015 CHF m Level 1 Level 2 Level 3 Total

Financial assets “at fair value through profit or loss” 56.8 56.8

Derivative financial assets 7.6 7.6

Financial assets “available for sale” 4.9 12.2 17.1

Total financial assets 56.8 12.5 12.2 81.5

Derivative financial liabilities 16.8 16.8


2014 CHF m Level 1 Level 2 Level 3 Total

Financial assets “at fair value through profit or loss” 39.6 39.6

Derivative financial assets 3.8 3.8

Financial assets “available for sale” 6.1 6.1

Total financial assets 39.6 9.9 0.0 49.5

Derivative financial liabilities 16.4 16.4



131

1 Sales revenueCHF 1,753.4 million (prior year: CHF 1,513.7 million) of the total operating income was determined using the percentageofcompletion method in the reporting period.

2 Other operating income2015

CHF m2014

CHF m

Earnings from coordination of consortium business 1.4 2.1

Interest income from trade finance 1.2 2.2

Rental income 0.4 0.3

Gains from sale of fixed assets 0.9 0.4

Other operating income related parties 0.4 0.0

Others 19.3 25.5

Total 23.6 30.5

“Others” comprises a number of individually immaterial items which cannot be allocated to another line item.

3 Employee benefit expenses2015

CHF m2014

CHF m

Wages and salaries 578.3 591.1

Social security and employee benefit expenses 112.9 110.6

Other personnel expenses 59.8 58.2

Total 751.0 759.9


132

4 Other operating expenses2015

CHF m2014

CHF m

Administration expenses 105.8 101.5

Rental and leasing expenses, dues 28.1 31.5

Energy, maintenance and repairs 30.3 31.6

Travel expenses 77.5 72.1

Outbound freight costs 63.5 64.1

Consultancy fees 10.0 10.6

Marketing costs 18.7 18.0

Agency fees 13.3 14.0

Warranty costs, loss orders – 0.1 3.7

Other operating expenses related parties 26.0 24.9

Others 28.4 30.6

Total 401.5 402.6

5 Financial result2015

CHF m2014

CHF m

Interest income 4.5 5.4

Interest income from related parties 0.8 1.4

Realized gains from securities 4.2 5.9

Other financial income 1.3 1.0

Total finance income 10.8 13.7

Interest expenses – 0.9 – 0.7

Interest expenses from related parties – 1.5 – 2.5

Realized losses from securities – 0.5 0.0

Fair value adjustments net – 0.6 – 0.7

Foreign exchange gains and losses net 1.3 – 4.0

Other financial expenses – 1.8 – 3.1

Total finance expense – 4.0 – 11.0

Total 6.8 2.7

The introduction of negative interest rates by the Swiss National Bank and continuingly low interest rates in most other major currencies resulted in a low interest result including interest from related parties of CHF 2.9 million (2014: CHF 3.6 million). Due to strict hedging of foreign currency risks the discontinuation of the minimum EUR / CHF exchange rate had no material impact on the foreign exchange result (2015: CHF 1.3 million; 2014: CHF – 4.0 million).


133

6 Taxes6.1 Income taxes

2015 CHF m

2014 CHF m

Income taxes relating to the reporting period – 39.0 – 38.6

Income taxes relating to prior periods 1.5 3.3

Deferred taxes due to temporary differences – 2.2 – 1.0

Deferred taxes due to recognition of tax loss carryforwards – 1.4 10.3

Deferred taxes due to changes in tax rates – 0.1 – 0.4

Total – 41.2 – 26.4

Taxes recognized directly in shareholders’ equity 8.2 11.0

6.2 Reconciliation of income taxes2015

CHF m2014

CHF m


Components of tax expenses:

Income taxes at anticipated tax rate – 40.4 – 28.9

Income and expenses not subject to tax – 1.6 – 0.4

Income taxes relating to prior periods 1.5 3.3

Deferred taxes due to changes in tax rates – 0.1 – 0.4

Effect of tax loss carryforwards 0.5 1.9

Effect of losses without recognition of deferred tax assets – 3.3 – 4.6

Other impacts 2.2 2.7

Total income taxes – 41.2 – 26.4

Total income taxes in % of profit before taxes 22.4 % 17.9 %

The anticipated tax rate was 22.0 % (prior year: 19.6 %) and consisted of the weighted average of the applicable local tax rates for income taxes. The tax rate increased to 22.4 % in 2015 from 17.9 % in 2014. Contributory factors for the resulted tax rate included a sustainable tax management and restructuring measures within the Group.

6.3 Tax loss carry-forwards2015

CHF m2014

CHF m

Expiry

Unlimited 77.8 85.4

In more than five years 22.0 20.5

In two to five years 35.8 23.0

Within one year 0.2 2.3

Total 135.8 131.2

Tax loss carryforwards accounted for in deferred taxes 106.8 108.9

Tax effect on tax loss carryforwards unaccounted for 7.0 5.8

The change in tax loss carryforwards results from the use of tax losses in particular in Brazil, Germany, Japan, China, and the USA as well as from the impact of additional tax loss carryforwards in particular in Germany, Spain, South East Asia, and China.


134

7 Movements of property, plant and equipment

Acquisition cost

Investment properties

CHF m

Land and buildings

CHF m

Machinery and technical

equipment CHF m

Other tangible assets CHF m

Assets under construction

CHF mTotal

CHF m

January 1, 2014 0.4 255.1 269.2 135.3 55.8 715.8

Additions 0.0 11.6 21.5 7.6 14.4 55.1

Disposals 0.0 – 0.3 – 9.0 – 13.3 – 0.3 – 22.9

Changes in the scope of consolidation 0.0 0.0 0.3 0.6 0.0 0.9

Reclassifications 0.0 25.4 16.2 2.8 – 44.1 0.3

Translation differences 0.0 6.0 5.1 1.0 2.0 14.1

December 31, 2014 0.4 297.8 303.3 134.0 27.8 763.3

Additions 0.0 3.5 12.9 9.0 25.2 50.6

Disposals 0.0 – 7.0 – 24.2 – 4.7 – 0.2 – 36.2


Reclassifications 0.0 22.6 7.9 4.3 – 31.9 2.9

Translation differences 0.0 – 14.4 – 14.0 – 7.3 – 1.4 – 37.1

December 31, 2015 0.4 311.6 290.2 139.1 19.5 760.7

Depreciation

January 1, 2014 0.0 – 70.6 – 159.2 – 102.9 – 0.3 – 333.0

Additions 0.0 – 7.3 – 19.0 – 11.4 0.0 – 37.7

Disposals 0.0 0.1 8.1 12.3 0.0 20.5


Impairment 0.0 0.0 – 2.1 – 0.3 0.0 – 2.4

Reclassifications 0.0 0.0 – 0.3 – 0.3 0.0 – 0.6

Translation differences 0.0 – 0.9 – 1.3 – 0.6 0.0 – 2.8

December 31, 2014 0.0 – 78.7 – 173.8 – 103.2 – 0.3 – 356.0

Additions 0.0 – 8.6 – 19.1 – 11.2 – 0.1 – 39.0

Disposals 0.0 3.3 22.5 4.5 0.0 30.3

Changes in the scope of consolidation 0.0 – 3.5 – 3.4 – 3.0 0.0 – 9.9

Impairment 0.0 0.0 0.0 0.0 0.0 0.0

Reclassifications 0.0 0.1 – 1.2 – 1.8 0.0 – 2.9

Translation differences 0.0 2.9 8.4 5.8 0.0 17.2

December 31, 2015 0.0 – 84.5 – 166.6 – 108.8 – 0.4 – 360.3

Net book values

January 1, 2015 0.4 219.1 129.5 30.8 27.5 407.3

December 31, 2015 0.4 227.0 123.6 30.3 19.1 400.4

The market value of investment properties amounted to CHF 1.4 million in the reporting year (prior year: CHF 1.5 million). As in the previous year, the Group did not enter in financial lease contracts as lessee. The fire insurance values (usually reinstatement values) of tangible fixed assets as at December 31, 2015, amounted to CHF 905.6 million (prior year: CHF 939.4 million). Net loss on dis

posal of tangible fixed assets amounted to CHF – 0.6 million (prior year: net loss CHF – 0.4 million). Commitments relating to property, plant and equipment, which are not shown in the balance sheet, amounted to CHF 57.8 million (prior year: CHF 69.8 million) and are mainly related to investments in the factories in China.


135

8 Movements of intangible assets

Acquisition costGoodwill

CHF m

Other intangible assets CHF m

Total CHF m

January 1, 2014 259.9 145.9 405.8

Additions 0.0 2.7 2.7

Disposals 0.0 – 2.2 – 2.2

Changes in the scope of consolidation 8.8 7.1 15.9

Reclassifications 0.0 0.1 0.1

Translation differences 4.4 1.7 6.1

December 31, 2014 273.1 155.3 428.4

Additions 0.0 3.7 3.7

Disposals 0.0 – 3.0 – 3.0



Translation differences – 18.2 – 10.3 – 28.5

December 31, 2015 258.3 154.0 412.3

Amortization

January 1, 2014 – 29.0 – 78.6 – 107.6

Additions 0.0 – 20.2 – 20.2

Disposals 0.0 2.2 2.2

Impairment 0.0 0.0 0.0



Translation differences – 0.7 – 1.1 – 1.8

December 31, 2014 – 29.7 – 97.7 – 127.4

Additions 0.0 – 17.2 – 17.2

Disposals 0.0 3.0 3.0

Impairment 0.0 0.0 0.0

Changes in the scope of consolidation 0.0 – 2.1 – 2.1

Reclassifications 0.0 – 3.2 – 3.2

Translation differences 1.8 6.5 8.3

December 31, 2015 – 27.9 – 110.7 – 138.6

Net book values

January 1, 2015 243.4 57.6 301.0

December 31, 2015 230.4 43.3 273.7

Additions to goodwill and intangible assets are mainly attributable to acquisitions in the year under review (see Note 22).

Other intangible assets mainly comprise customer relationships, technologies, patents, and software.


136

9 Investments in associates

Net book valuesShare in equity

CHF mGoodwill

CHF mTotal 2015

CHF mTotal 2014

CHF m

January 1 10.7 7.3 18.0 17.9

Reclassifications 0.0 0.0 0.0 0.0

Additions 4.2 5.9 10.1 0.0

Impairment 0.0 0.0 0.0 0.0

Share of net profit 4.5 0.0 4.5 1.1

Dividends received – 0.9 0.0 – 0.9 – 0.9

Translation differences – 1.8 – 0.9 – 2.7 – 0.1

December 31 16.7 12.3 29.0 18.0

Translation differences are recognized in other comprehensive income. The attributable net result is shown under “other operating income” in the statement of income.

Cumulative values of the associated companies2015

CHF m2014

CHF m

Share of sales revenue 31.8 19.7

Share of net profit 4.5 1.1

Balance sheet values:

Noncurrent assets 14.6 11.2

Current assets 21.9 16.6

Noncurrent liabilities 10.5 10.9

Current liabilities 9.3 6.6

Shareholders’ equity 16.7 10.3

The associated companies mainly comprise three companies, two in Southern Europe and one in Switzerland. Bühler has a shareholding of 26 %, 49 % and 35 % respectively. The figures are based on available preview closing data as of December 31, 2015.


137

10 Long-term financial assets

December 31, 2015

Due 1– 5 years

CHF m> 5 years

CHF mTotal

CHF m

Securities 0.0 12.2 12.2

Overfunding of postemployment benefit plans 0.0 16.1 16.1

Loans to nonconsolidated companies 0.5 0.0 0.5

Loans to associated companies 16.1 0.0 16.1

Other noncurrent financial assets 73.3 4.9 78.2

Total 89.9 33.2 123.1

December 31, 2014

Due 1– 5 years

CHF m> 5 years

CHF mTotal

CHF m

Securities 0.0 0.0 0.0

Overfunding of postemployment benefit plans 0.0 2.4 2.4

Loans to nonconsolidated companies 0.9 0.0 0.9

Loans to associated companies 17.3 0.0 17.3

Other noncurrent financial assets 72.3 6.1 78.4

Total 90.5 8.5 99.0

11 Deferred tax assets and liabilitiesNet book values

2015 CHF m

2014 CHF m

Tangible fixed assets – 12.0 – 16.6

Postemployment benefits 32.9 24.0

Provisions – 3.5 – 3.3

Other items – 87.5 – 75.5

Tax loss carryforwards 29.1 30.5

Total – 41.0 – 40.9

Recognized on the balance sheet as deferred tax liabilities – 79.4 – 82.6

Recognized on the balance sheet as deferred tax assets 38.5 41.7

Change of deferred tax assets for postemployment benefits is primarily due to a significant increase in the net defined benefit obligation (see Note 17). Deferred tax assets and liabilities are offset if there is a legally enforceable right to set them off and if the calculations of income taxes relate to the same taxation authority.


138

12 InventoriesGross value

CHF mValue adjustments

CHF m2015

CHF m2014

CHF m

Raw materials and supplies 144.3 – 19.6 124.7 130.3

Unfinished goods 52.5 – 10.4 42.1 42.5

Finished goods and merchandise 77.4 – 5.7 71.7 73.6

Work in progress 84.6 – 0.9 83.7 86.0

Advance payments to suppliers 25.6 0.0 25.6 25.1

Total 384.4 – 36.6 347.8 357.5

In prior year, value adjustments deducted from inventories amounted to CHF – 38.9 million. No material reversals of value adjustments of the prior year were recognized in the reporting year.

13 Production orders in progress2015

CHF m2014

CHF m

Production orders in progress 449.0 308.4

Advance payments from customers – 157.7 – 106.3

Net assets of production orders in progress 291.3 202.1

Production orders in progress – 30.3 – 24.4

Advance payments from customers – 308.4 – 363.8

Net liabilities of production orders in progress – 338.7 – 388.2

Accumulated costs and recognized profits 1,766.8 1,690.1

14 Trade accounts receivable2015

CHF m2014

CHF m

A From third parties 512.4 508.1

A From nonconsolidated companies 3.5 4.2

A From associates 0.5 0.6

A From related parties 0.1 0.1

Allowance for bad debts – 10.1 – 9.7

Total 506.4 503.3

Trade accounts receivable include supplier credits of CHF 73.4 million (prior year: CHF 79.4 million), which are financed in accordance with the Treasury strategy. A generally high degree of liquidity characterizes these items.

CHF 28.6 million (prior year: CHF 34.5 million) of these will not be due within the next twelve months.


139

15 Other accounts receivable, prepayments and accrued income

2015 CHF m

2014 CHF m

Valueadded tax credits 38.2 37.9

Other accounts receivable

A From third parties 47.4 56.8

A From nonconsolidated companies 1.9 1.1

A From associates 0.0 0.4

A From related parties 0.0 0.0

Prepayments and accrued income 20.5 22.6

Allowance for bad debts – 0.1 0.0

Total 107.9 118.8

16 Marketable securities and derivative financial instruments

Futures and options were entered into with banks mainly to hedge currency risks. The following positions were open as of December 31, 2015:

16.1 Derivative financial instruments

Contract or underlying principal amount Positive fair values Negative fair values

2015 CHF m

2014 CHF m

2015 CHF m

2014 CHF m

2015 CHF m

2014 CHF m

Currency-related instruments

Forward foreign exchange rate contracts 975.4 745.2 7.5 3.6 16.8 16.0

A Held for trading 645.5 443.0 4.5 1.4 7.4 7.1

A Cash flow hedges (effective part) 329.9 302.2 3.0 2.2 9.4 8.9

Overthecounter currency options 26.3 61.7 0.1 0.2 0.0 0.4

Total of currency-related instruments 1,001.7 806.9 7.6 3.8 16.8 16.4

Total derivative financial instruments 1,001.7 806.9 7.6 3.8 16.8 16.4

Thereof included in securities and in shortterm financial liabilities 952.9 781.5 6.5 3.7 16.3 15.6

Thereof included in other longterm financial assets and financial liabilities 48.8 25.4 1.1 0.1 0.5 0.8


140

USD CHF m

EUR CHF m

Other currencies

CHF m

Total 2015

CHF m

Total 2014

CHF m

Currency-related instruments

Forward foreign exchange rate contracts 377.0 424.6 173.8 975.4 745.2

A Held for trading 247.3 280.1 118.1 645.5 443.0

A Cash flow hedges 129.7 144.5 55.7 329.9 302.2

Overthecounter currency options 9.8 16.5 0.0 26.3 61.7

Total of currency-related instruments 386.8 441.1 173.8 1,001.7 806.9

Total derivative financial instruments 386.8 441.1 173.8 1,001.7 806.9

Positive replacement values are included in securities or longterm financial assets and negative replacement values are included in financial liabilities.

16.2 Marketable securities2015

CHF m2014

CHF m

Equity securities 4.2 4.2

Bonds 9.4 10.4

Derivative financial instruments 6.5 3.7

Accrued interest on debt securities 0.0 0.1

Other securities 43.1 24.9

Total marketable securities 63.2 43.3


141

17 Defined benefit obligations The company’s main defined benefit pension plans are in Switzerland and Germany. The defined benefit plans in Switzerland are funded through legally separate trustee administered funds. The cash fund-ing of these plans, which may from time to time involve special pay-ments, is designed to ensure that present and future contributions should be sufficient to meet future liabilities. The defined benefit plans in Germany are partially unfunded.

Pension plans in Switzerland. The company’s Swiss pension plans contain a cash balance benefit formula, accounted for as a defined benefit plan. Employer and employee contributions are defined in the pension fund rules in terms of an age-related sliding scale of percent-ages of salary. Under Swiss law the pension fund guarantees the vested benefit amount as confirmed annually to members. Interest may be added to member balances at the discretion of the Board of Trustees. At retirement date members have the right to take their retirement benefit as a lump sum, an annuity or part as a lump sum with the balance converted to a fixed annuity at the rates defined in the fund rules. The Board of Trustees may change the annuity at their discretion subject to the plan’s funded status including sufficient free funds as determined according to Swiss statutory valuation rules.

17.1 Actuarial assumptions 2015 2014

Discount rate 1.6 % 2.1 %

Future salary increases 1.5 % 1.4 %

Future pension increases 0.2 % 0.2 %

Bühler AG pledged to assure any deficit of the pension fund in 2013. After the restructuring, the pension fund reached a coverage of more than 100 %, which is why the accrued amount (CHF 13.8 million) was released in 2014.

Pension plans in Germany. The company’s German pension plans have defined benefit rights based on their length of service and / or final pensionable pay. The employer gives a direct promise to the employee to pay him a certain amount once he retires. At retirement date the value of their benefits is paid as an annuity. The company is required by German law to increase pensions in payment all three years according to price inflation, as measured by the Consumer Price Index or according to comparable pay grades. Direct pension promises are usually funded via book-reserve accruals. In 2008 the company set up a trust fund to fund their pension liabilities for Bühler GmbH, Braunschweig. No material business combinations / curtail-ments / settlements occurred during the reported financial period.

Status of the company’s defined benefit plans. The status of the com-pany’s defined benefit plans using actuarial assumptions deter-mined in accordance with IAS 19 is summarized below.


142

17.2 Reconciliation of defined benefit obligation and fair value of plan assets2015

CHF m2014

CHF m

Defined benefit obligation as of January 1 1,283.2 1,202.7

Interest costs 26.1 32.1

Current service costs (employer) 24.2 21.5

Contributions by plan participants 17.6 17.4

Past service costs – 0.1 0.0

Benefits (paid) / deposited – 66.3 – 64.9

Business combinations 9.0 0.0

Curtailment and settlements 0.0 0.0

Other effects 0.6 1.2

Actuarial (gain) loss on obligation 56.6 73.8

Currency translation adjustments – 9.4 – 0.6

Defined benefit obligation as of December 31 1,341.5 1,283.2

Reconciliation of the fair value of plan assets

Fair value of plan assets as of January 1 1,185.1 1,157.7

Expected return on plan assets 24.1 30.5

Contributions by the employer 28.8 14.7

Contributions by plan participants 17.6 17.4

Benefits (paid) / deposited – 66.3 – 64.9

Business combinations 0.0 0.0

Curtailment and settlements 0.0 0.0


Return on plan assets excl. interest income 7.1 29.7

Currency translation adjustments – 5.7 0.0

Fair value of plan assets as of December 31 1,190.7 1,185.1

Actual return on plan assets 31.2 60.2

17.3 Remeasurements of employee benefits2015

CHF m2014

CHF m

Return on plan assets excl. interest income – 7.1 – 29.7

Current year actuarial loss (gain) on benefit obligation

A Change in demographic assumptions 0.4 0.0

A Change in financial assumptions 66.0 83.4

A Experience adjustments – 9.9 – 9.6

Change in effect of asset ceiling – 10.7 – 2.4


Remeasurements recognized in other comprehensive income 38.7 42.4

Cumulative amount recognized in other comprehensive income 285.0 246.3


143

17.4 Reconciliation of the amount recognized in the statement of financial position at year-end

2015 CHF m

2014 CHF m

Present value of funded defined benefit obligation 1,341.5 1,283.2

Fair value of plan assets 1,190.7 1,185.1

Deficit / (surplus) 150.8 98.1

Adjustment to asset ceiling 0.0 10.5

Liability (asset) recognized in the statement of financial position 150.8 108.6

Thereof recognized as separate asset – 16.1 – 2.4

Thereof recognized as separate liability 166.9 111.0

17.5 Pension expenses recognized in the statement of income2015

CHF m2014

CHF m

Current service costs (employer) 24.4 22.0

Net interest employee benefit 2.0 1.6

Past service costs – 0.1 0.0

Effect of curtailment and settlements 0.0 0.0


Interest (income) on reimbursement right 0.0 0.0

Expenses recognized in the statement of income 27.2 24.5

Thereof service costs and administration costs 25.0 22.6

Thereof net interest on the net defined benefit liability (asset) 2.2 1.9

17.6 Best estimate of contributions2016

CHF m

Contributions by the employer 27.5

17.7 Plan assets at fair value consist of2015

CHF m2014

CHF m

Equity instruments third parties 301.0 367.4

Debt instruments third parties 358.8 277.3

Real estate 338.0 290.7


Others 112.5 99.5

Total plan assets at fair value 1,190.7 1,185.1


144

The discount rates are determined by referencing market yields at the end of the reporting period on AA- and AAA-rated corporate bonds. In recent years, longevity has increased in all major countries in which the company sponsors pension plans. The company sets mortality assumptions after considering the most recent statistics available and uses generational mortality tables to estimate probable future mortality improvements.

Sensitivities of significant actuarial assumptions. The discount rate and the future increase in salaries were identified as significant actu-arial assumptions. The following impacts on the defined benefit obli-gation are to be expected:

A 0.25 % increase / decrease in the discount rate would lead to a decrease / increase of 3.5 % in the defined benefit obligation.

A 0.25 % increase / decrease in the expected increase in salaries would lead to an increase / decrease of less than 0.5 % in the defined benefit obligation.

The sensitivity analysis is based on realistically possible changes as of the end of the reporting year.

The average duration of the defined benefit plan obligation at the end of the reporting period is 13.9 years (2014: 13.4 years).

17.8 Information about the significant plans2015

Switzerland2015

Germany2014

Switzerland2014

Germany

Discount rate 1.4 % 2.4 % 2.0 % 2.5 %

Future salary increases 1.5 % 0.0 % 1.5 % 0.0 %

Costs of defined benefit plans (CHF m) 25.4 1.4 22.4 1.6

Remeasurements employee benefits (CHF m) 36.8 1.7 32.2 8.4

17.9 Defined contribution plan2015

CHF m2014

CHF m

Expenses for defined contribution plan 6.1 5.8

18 Short- and long-term provisionsProvisions for

warranties CHF m

Provisions for personnel expenses

CHF m

Other provisions

CHF m2015

CHF m2014

CHF m

January 1 40.6 26.1 19.2 85.9 90.4

Additions 19.2 9.5 14.6 43.3 46.7

Utilization – 14.1 – 7.8 – 19.2 – 41.1 – 38.8

Release – 9.0 – 1.6 – 2.3 – 12.9 – 12.4

Changes in the scope of consolidation 0.4 0.3 0.5 1.2 0.6

Reclassification 0.0 0.4 0.0 0.4 0.0

Present value adjustment 0.0 0.0 0.0 0.0 0.0

Translation differences – 2.4 – 0.9 – 2.3 – 5.6 – 0.6

December 31 34.7 25.9 10.5 71.2 85.9

Thereof short-term 28.9 7.8 9.6 46.3 60.1

Thereof long-term 5.9 18.2 0.8 24.9 25.8

Warranty provisions are created with a view to meet potential guar-antee obligations arising from the sale of machinery and technical equipment. The calculation is based on historic values as well as recognized claims.

Provisions for personnel expenses mainly include long-term em-ployee benefits, such as long-service benefits, partial retirement, jubilee benefits, and deferred compensation plans.

Among other things the remaining provisions include provisions for pending legal cases, other project risks as well as a provision for restructuring of CHF 1.9 million.

Approximately 36 % (prior year: 39 %) of the cash out flows of the long-term provisions are expected to materialize within the next three years.


145

19 Share capitalAs of December 31, 2015, share capital amounted to CHF 15.0 mil-lion (prior year: CHF 15.0 million) and consisted of 105,000 (prior year: 105,000) registered shares with nominal value of CHF 100 each and 112,500 (prior year: 112,500) with nominal value of CHF 40 each.

20 Trade accounts payable2015

CHF m2014

CHF m

A To third parties 236.8 193.0

A To associates 1.4 1.4

A To non-consolidated companies 0.6 0.7

A To related parties 1.7 1.7

Total 240.5 196.8

21 Other short-term liabilities, accruals and deferred income

2015 CHF m

2014 CHF m

Value-added tax owed 9.5 18.7

Advance payments 97.2 132.5

Other liabilities

A To third parties 37.0 34.7

A To non-consolidated companies 2.2 2.1

A To related parties 14.2 14.3

Personnel-related accruals 73.8 72.2

Other accruals and deferred income 71.9 66.6

Total 305.8 341.1


146

22 Additions and disposals of Group companiesMarket value

2015 CHF m

Market value 2014

CHF m


Trade accounts receivable 2.8 2.3

Other receivables 4.1 0.9

Inventories 10.1 6.1

Net assets of production orders in progress 0.0 0.0

Current assets 17.4 12.2

Property, plant and equipment 7.2 0.9

Intangible assets 3.0 7.1

Financial assets 0.0 0.0

Deferred tax asset 1.3 0.6

Non-current assets 11.5 8.6

Trade accounts payable – 1.1 – 5.4

Net liabilities of production orders in progress 0.0 0.0

Short-term provisions – 0.8 0.0

Other short-term liabilities, accruals and deferred income – 3.1 – 7.2

Current liabilities and provisions – 5.0 – 12.6

Deferred tax liabilities – 1.1 – 1.5

Non-current liabilities and provisions – 18.5 0.0

Non-current liabilities and provisions – 19.6 – 1.5

Change in net assets 4.4 6.7

Non-controlling interests 0.0 – 1.8

Goodwill arising on acquisitions 3.4 8.8

Gain on sale of business 0.0 0.0

Addition (+) to / disposal (–) from the Group 7.8 13.7

Outstanding sale / purchase price payment and other non-cash items 0.0 0.0

Cash disposed (–) / acquired (+) 0.4 2.9

Cash flow from changes in the scope of consolidation – 7.4 – 10.8

The goodwill in the amount of CHF 3.4 million (prior year: CHF 8.8 mill ion) comprises the value of expected synergies arising from the acquisitions.

As in the previous year, the acquisition-related costs were not mate-rial. They were recognized as other operating expenses in the state-ment of income.


147

Additions to consolidation scope

2015Acquisition of Hosokawa Bepex GmbH, Leingarten, Germany. On September 30, 2015 the Group acquired 100 % of the shares in Hosokawa Bepex GmbH, Leingarten (renamed to Bühler Leingarten GmbH). The company is a global plant supplier in the field of confec-tionery and bakery and offers solutions ranging from engineering, design, manufacturing, and installation to commissioning of entire plants.

From the date of acquisition, Bühler GmbH, Leingarten contributed CHF 7.7 million of revenue and CHF 0.03 million to profit before tax. If the combination had taken place at the beginning of of the year, revenue would have been CHF 21.0 Mio. and profit before tax would have been CHF –1.9 million.

Establishment of Buhler Pakistan (Pvt.) Ltd. On April 28, 2015, the Group founded Buhler Pakistan (Pvt.) Ltd. with a capital of PKR 30.0 million. The company conducts sales activities and provides services to our customers in Pakistan.

Establishment of Shijiazhuang Buhler Mechanical Co. Ltd. On June 6, 2015, the Group founded Shijiazhuang Buhler Mechanical Co. Ltd. with a capital of CNY 2.0 million. The company conducts sales activ-ities and provides services to our customers in China.

Establishment of Buhler DMCC, Dubai. On May 21, 2015, the Group founded Buhler DMCC, Dubai with a capital of AED 0.05 million. The company is the new regional headquarters for Middle East & Africa, conducts sales support and provides services to our customers in the region.

2014Acquisition of Buhler (Guangzhou) Food Machinery Co. Ltd., China. On April 30, 2014 the Group acquired 80 % of the shares in Guang-zhou Jinfu Electromechanical Technology Co. Ltd. (“Jinfu”) which was subsequently renamed. The company manufactures and sells various kinds of rice and wheat flour noodle production equipment. The main objective of this acquisition is to enter the Asian Noodles market in China and outside China.

Acquisition of Wuhan Mingbo Electromechanical Equipment Co. Ltd., China. On July 17, 2014 the Group acquired 80 % of the shares in Wuhan Mingbo Electromechanical Equipment Co. Ltd., China. The company manufactures and sells feed machines for the Aqua market in China.

Establishment of Buhler Malaysia Sdn. Bhd., Kuala Lumpur. On July 7, 2014 the Group founded Buhler Malaysia Sdn. Bhd. with a capital of MYR 1.0 million. The company conducts sales activities and provides services to our customers in Malaysia.

Acquisitions of additional interests

Acquisition of additional interest in Buhler (Changzhou) Machinery Co. Ltd., Liyang City. On January 18, 2015, the Group bought addi-tional 20 % shares of Buhler (Changzhou) Machinery Co. Ltd., in-creasing its ownership to 100 %. A cash consideration of CHF 29.7 million was paid to the non-controlling shareholders. The carrying value of the net assets of Buhler (Changzhou) Machinery Co. Ltd. (excluding goodwill on the original acquisition) was CHF 50.1 million. Following is a schedule of additional interest acquired in Buhler (Changzhou) Machinery Co. Ltd.:

CHF m

Cash consideration paid to non-controlling shareholders 29.9

Carrying value of the additional interest 10.0

Difference recognized in retained earnings 19.9

Acquisition of additional interest in Buhler (Guangzhou) Food Machinery Co. Ltd., Guangzhou City. On August 8, 2015, the Group bought additional 20 % shares of Buhler (Guangzhou) Food Machin-ery Co. Ltd., increasing its ownership to 100 %. A cash consideration of CHF 2.3 million was paid to the non-controlling shareholders. The carrying value of the net assets of Buhler (Guangzhou) Food Machin-ery Co. Ltd. (excluding goodwill on the original acquisition) was CHF 5.8 million. Following is a schedule of additional interest ac-quired in Buhler (Guangzhou) Food Machinery Co. Ltd.:

CHF m




Acquisition of additional interest in Buhler Yijiete Color Sorting Machinery (Hefei) Co. Ltd., Hefei. On April 10, 2015, the Group bought additional 30 % shares of Buhler Yijiete Color Sorting Machin-ery (Hefei) Co. Ltd., increasing its ownership to 100 %. A cash con-sideration of CHF 5.5 million was paid to the non-controlling share-holders. The carrying value of the net assets of Buhler Yijiete Color Sorting Machinery (Hefei) Co. Ltd. (excluding goodwill on the original acquisition) was CHF 12.2 million. Following is a schedule of addi-tional interest acquired in Buhler Yijiete Color Sorting Machinery (Hefei) Co. Ltd.:

CHF m




23 Impairment tests The recoverable amounts have been determined based on a value-in-use calculation. This calculation uses cash flow projections based on financial budgets approved by the respective division manage-ment covering a five-year period.

Key assumptions used in value-in-use calculations. The calculations of values in use are most sensitive to the following assumptions:

A Gross margin A Discount rate A Growth rate used to extrapolate cash flows beyond the budget period

A Raw materials price inflation A Market share assumptions

Gross margin – Gross margins are based on average values reported in the three years preceding the start of the forecast period. These gross margins are adjusted based on the latest available information


148

regarding the actual gross margins as well as anticipated efficiency improvements over the forecast period.

Discount rate – The discount rates which are used to calculate the discounted present value of the future cash flows are derived from a capital asset pricing model using market data such as the yield on a ten-year government bond of the respective country or specific country risk premiums.

Growth rate estimates – The assumptions used in the calculation reflect the long-term expected growth rate of the operational busi-ness and are based on the growth strategy of the Group.

Raw materials price inflation – Estimates are obtained from pub-lished indices relating to specific commodities. Past actual raw ma-terials price movements have been used as an indicator of future price movements.

Market share assumptions – The management assumes that the unit’s position, relative to that of its competitors, may not change significantly over the forecast period. Market share is expected to be stable over the forecast period.

Result of the impairment test. The impairment tests performed on December 31, 2015, support the value of the carrying amount. Like in prior year, no impairment needs to be recognized.

Sensitivity to changes in assumptions. A possible increase in the dis-count rate of 1 percentage point result in the carrying amount not exceeding its recoverable amount (prior year: CHF 4.2 million). A drop in sales of 5 percentage point result in the carrying amount not exceeding its recoverable amount (prior year: CHF 6.6 million).

Goodwill 2015Book value

CHF m

Base data used

Discount rate Growth rate

Leybold Optics Verwaltungs GmbH, Alzenau 79.1 9.9 % 1.2 %

Buhler Aeroglide Corporation, Cary 61.2 10.5 % 1.2 %

Bühler Deutschland GmbH, Beilngries 37.1 9.9 % 1.2 %

Bühler Barth GmbH, Freiberg a.N. 16.0 9.9 % 1.2 %

Buhler Yijiete Color Sorting Machinery (Hefei) Co. Ltd., Hefei 7.3 12.2 % 3.1 %

Bangsheng Bio-Technology Co. Ltd., Guangzhou 6.9 12.2 % 3.1 %

Wuhan Mingbo Electromechanical Equipment Co. Ltd., Wuhan 6.2 12.2 % 3.1 %

Bühler Haguenau S.A.S., Haguenau 5.1 10.4 % 0.9 %

Bühler GmbH, Leingarten 3.5 9.9 % 1.2 %

Others 8.0 10.3 % –12.4 % 0.9 % – 2.5 %

Total as of December 31, 2015 230.4

Goodwill 2014Book value

CHF m

Base data used

Discount rate Growth rate

Leybold Optics Verwaltungs GmbH, Alzenau 87.9 10.0 % 1.2 %

Buhler Aeroglide Corporation, Cary 61.1 10.4 % 1.2 %

Bühler Deutschland GmbH, Beilngries 41.2 10.0 % 1.2 %

Bühler Barth GmbH, Freiberg a.N. 17.8 10.0 % 1.2 %

Buhler Yijiete Color Sorting Machinery (Hefei) Co. Ltd., Hefei 7.5 11.9 % 3.1 %

Bangsheng Bio-Technology Co. Ltd., Guangzhou 7.1 11.9 % 3.1 %

Wuhan Mingbo Electromechanical Equipment Co. Ltd., Wuhan 6.4 11.9 % 3.1 %

Bühler Haguenau S.A.S., Haguenau 5.7 9.4 % 0.9 %

Others 8.7 10.4 % –12.3 % 0.9 % – 3.5 %

Total as of December 31, 2014 243.4


149

25 Off-balance sheet obligations under operating leases

2015 CHF m

2014 CHF m

Leasing obligation up to one year 16.5 18.3

Leasing obligation as of one to five years 20.4 26.4

Leasing obligation over five years 12.4 7.1

Total 49.3 51.8

26 Assets pledged or assigned to secure own liabilities

In connection with the long-term loan from the shareholders of CHF 55 million and open legal cases, assets of CHF 45.0 million and CHF 0.9 mill ion respectively (prior year: CHF 45.0 mill ion and CHF 1.3 million) serve as collateral for own liabilities where the right of disposal is limited.

27 Research and development costsResearch and development costs directly charged to the statement of income in the reporting period amounted to CHF 102.4 million (prior year: CHF 98.9 million).

28 Related partiesRelated-party transactions. A loan towards the shareholders in the amount of CHF 70.0 million (prior year: CHF 70.0 million) is disclosed under other non-current financial assets. Loans from the sharehold-ers of CHF 132.2 million (prior year: CHF 132.2 million) are disclosed under long-term financial l iabil it ies. Liabilities to pension plans amounted to CHF 13.5 million as per 2015 (prior year: CHF 27.0 mil-

lion) and are mainly related to a comprehensive restructuring of the Swiss pension fund. This amount is shown under other short-term liabilities (prior-year amount was split by CHF 13.5 million each into long-term financial liabilities and other short-term liabilities). Other related-party positions are disclosed separately in the notes. Related-party transactions are conducted at arm’s length.

Key management compensation. Key management (defined as Group Management and Board of Directors) received a total short-term compensation of CHF 6.8 million (prior year: CHF 7.2 million). In addition, pension and social security contributions of CHF 1.0 mil-lion (prior year: CHF 1.0 million) are recorded as expense. The provi-sions for other long-term benefits amount to CHF 3.2 million (prior year: CHF 1.6 million).

29 Government grantsGovernment grants are offset with the items of expense which they finance. Government grants related to assets are deducted from the assets in deriving the carrying amount of the asset. Like in prior year, the Group received no government grants in 2015. In 2012, the con-struction of a new die casting factory in China has been subsidized by the government amounting to CHF 5.3 million. This government grant was recorded in 2012 whereas payments of CHF 3.7 million were received in 2013 and balance payment of CHF 1.6 million was received in 2015.

24 Contingent liabilities2015

CHF m2014

CHF m

Sureties, guarantees and other obligations 1.4 0.7

Total 1.4 0.7

This item mainly includes obligations under long-term leasing agree-ments relating to properties in Germany, Switzerland and Brazil.


150

30 Significant Group companies

Name of company Country

Share capital in millions of local currency

Participation rate

Holding / Financing Company Held by

Switzerland

Bühler Holding AG, Uzwil CH CHF 15.0 C

Bühler AG, Uzwil CH CHF 30.0 100.0 % Bühler Holding AG, Uzwil

Bühler-Immo Betriebs AG, Uzwil CH CHF 0.1 100.0 % Bühler Holding AG, Uzwil

Bühler Management AG, Uzwil CH CHF 0.1 100.0 % C Bühler Holding AG, Uzwil

Bühler + Scherler AG, St. Gallen CH CHF 0.8 60.0 % Bühler Holding AG, Uzwil

Europe

Bühler CZ s.r.o., Zamberk CZ CZK 265.2 100.0 % Bühler Holding AG, Uzwil

Bühler Deutschland GmbH, Beilngries DE EUR 0.025 100.0 % Bühler AG, Uzwil

Bühler GmbH, Beilngries DE EUR 16.0 100.0 % Bühler Deutschland GmbH, Beilngries

Bühler Deutschland Holding GmbH, Braunschweig DE EUR 0.025 100.0 % C Bühler AG, Uzwil

Bühler Barth GmbH, Freiberg a.N. DE EUR 1.137 100.0 %Bühler Deutschland Holding GmbH, Braunschweig

Bühler GmbH, Bergneustadt DE EUR 0.275 100.0 %Bühler Deutschland Holding GmbH, Braunschweig

Bühler GmbH, Braunschweig DE EUR 12.629 100.0 %Bühler Deutschland Holding GmbH, Braunschweig

Leybold Optics Verwaltungs GmbH, Alzenau DE EUR 0.444 100.0 % C Bühler AG, Uzwil

Bühler Alzenau GmbH, Alzenau DE EUR 0.05 100.0 %Leybold Optics Verwaltungs GmbH, Alzenau

Bühler GmbH, Leingarten DE EUR 2.432 100.0 %Bühler Deutschland Holding GmbH, Braunschweig

Buhler S.A., Madrid ES EUR 0.06 100.0 % Bühler Holding AG, Uzwil

Bühler Haguenau S.A.S., Haguenau FR EUR 0.2 100.0 % Bühler Holding AG, Uzwil

Buhler UK Holdings Ltd., London GB GBP 3.6 100.0 % C Bühler Holding AG, Uzwil

Buhler Ltd., London GB GBP 1.0 100.0 % Buhler UK Holdings Ltd., London

Buhler Sortex Ltd., London GB GBP 1.25 100.0 % Buhler UK Holdings Ltd., London

Control Design & Development Ltd., Peterborough GB GBP 0.0001 100.0 % Buhler UK Holdings Ltd., London

Sortex Ltd., London GB GBP 0.001 100.0 % Buhler UK Holdings Ltd., London

Bühler Brescia S.r.L., Brescia IT EUR 0.01 100.0 % Bühler AG, Uzwil

Buhler S.p.A., Milano IT EUR 2.665 100.0 % Bühler Holding AG, Uzwil

Bühler B.V., Oldenzaal NL EUR 0.034 100.0 % Bühler Holding AG, Uzwil


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Participation rate


North America

Buhler US Holding Inc., Minneapolis US USD 0.05 100.0 % C Bühler Holding AG, Uzwil

Buhler Aeroglide Corporation, Cary US USD 0.004 100.0 % Buhler US Holding Inc., Minneapolis

Buhler Inc., Minneapolis US USD 3.2 100.0 % Buhler US Holding Inc., Minneapolis

BuhlerPrince Inc., Holland US USD 0.375 100.0 % Buhler US Holding Inc., Minneapolis

Leybold Optics USA Inc., Cary US USD 0.1 100.0 % Buhler US Holding Inc., Minneapolis

Latin America

Buhler S.A., Buenos Aires AR ARS 1.1 100.0 % Bühler Holding AG, Uzwil

Buhler S.A., Joinville BR BRL 20.685 100.0 % Bühler Holding AG, Uzwil

Bühler Sanmak Indústria de Máquinas Ltda., Blumenau BR BRL 10.0 100.0 % Bühler Holding AG, Uzwil

Buhler S.A. de C.V., Metepec MX MXN 50.0 100.0 % Bühler Holding AG, Uzwil

Middle East & Africa

Buhler (Private Joint Stock Co.), Teheran IR IRR 9250,0 100.0 % Bühler Holding AG, Uzwil

Buhler Limited, Nairobi KE KES 900.0 100.0 % Bühler Holding AG, Uzwil

Buhler (Pty) Ltd., Johannesburg ZA ZAR 11.371 100.0 % Bühler Holding AG, Uzwil

Buhler Properties (Pty) Ltd., Johannesburg ZA ZAR 0.0001 100.0 % Buhler (Pty) Ltd., Johannesburg


152



Participation rate


Asia

Bangsheng Bio-Technology Co. Ltd., Guangzhou CN CNY 8.51 100.0 % Bühler Holding AG, Uzwil

Buhler (Changzhou) Machinery Co. Ltd., Liyang City CN CNY 240.0 100.0 % Buhler (China) Holding Co. Ltd., Wuxi

Buhler (China) Holding Co. Ltd., Wuxi CN USD 114.6 100.0 % C Bühler Holding AG, Uzwil

Buhler (China) Machinery Manufacturing Co. Ltd., Wuxi CN CNY 150.0 100.0 % Buhler (China) Holding Co. Ltd., Wuxi

Buhler (Guangzhou) Food Machinery Co. Ltd., Guangzhou City CN CNY 51.0 100.0 % Buhler (China) Holding Co. Ltd., Wuxi

Buhler (Wuxi) Commercial Co. Ltd., Wuxi CN USD 5.5 100.0 % Buhler (China) Holding Co. Ltd., Wuxi

Buhler Sortex Optical Equipment (Hefei) Co. Ltd., Hefei CN CNY 18.0 100.0 % Buhler (China) Holding Co. Ltd., Wuxi

Wuhan Mingbo Electromechanical Equipment Co. Ltd., Wuhan CN CNY 5.0 80.0 % Buhler (China) Holding Co. Ltd., Wuxi

Buhler Equipment (Xian) Co. Ltd., Xi’an CN CNY 28.0 100.0 % Bühler Holding AG, Uzwil

Buhler Food Ingredients (Guangzhou) Co. Ltd., Guangzhou CN USD 3.8 100.0 % Bühler Holding AG, Uzwil

Buhler Mechanical Equipment (Shenzhen) Co. Ltd., Shenzhen CN USD 4.0 100.0 % Bühler Holding AG, Uzwil

Wuxi Buhler Machinery Manufacturing Co. Ltd., Wuxi CN USD 23.0 51.0 % Bühler Holding AG, Uzwil

Buhler Leybold Optics Equipment (Beijing) Co. Ltd., Beijing CN CNY 10.1 100.0 % Bühler Alzenau GmbH, Alzenau

Buhler (India) Private Ltd., Bangalore IN INR 100.0 100.0 % Bühler Holding AG, Uzwil

Buhler K.K., Yokohama JP JPY 250.0 100.0 % Bühler Holding AG, Uzwil

Buhler Asia Private Limited, Singapore SG USD 1.0 100.0 % C Bühler Holding AG, Uzwil

Buhler Farmila Vietnam Ltd., Long An VN VND 41.656 96.0 % Buhler Asia Private Limited, Singapore

Buhler Vietnam Company Limited, Ho Chi Minh City VN VND 6.237 100.0 % Buhler Asia Private Limited, Singapore

Buhler (Thailand) Ltd., Bangkok TH THB 110.0 100.0 % Buhler Asia Private Limited, Singapore

PT Buhler Indonesia, Jakarta ID IDR 10.5 100.0 % Buhler Asia Private Limited, Singapore


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31 Proposal of the Board of Directors

At the General Meeting, the Board of Directors proposes a dividend of CHF 15.0 million (prior year: CHF 15.0 million) or CHF 100 (prior year: CHF 100) per registered share with a nominal value of CHF 100 and CHF 40 (prior year: CHF 40) per registered share with a nominal value of CHF 40. The dividend payment to the shareholders of the Bühler Holding AG amounted to CHF 15.0 million in the financial year 2015 (prior year: CHF 15.0 million).

32 Release for publication of the consolidated financial statements

The consolidated financial statements were released for publication by the Board of Directors of the Bühler Holding AG on February 9, 2016.

33 Subsequent eventsNo material events have occurred after the balance sheet date.


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Report of the statutory auditor on the consolidated financial statements

To the General Meeting of Bühler Holding AG, Uzwil, St. Gallen, February 9, 2016

As statutory auditor, we have audited the consolidated financial statements of Bühler Holding AG, which comprise the consolidated statement of income, consolidated statement of comprehensive income, consolidated statement of financial position, consolidated statement of changes in equity, consolidated statement of cash flows and notes (pages 113 to 153) for the year ended December 31, 2015.

Board of Directors’ responsibility. The Board of Directors is responsible for the preparation of these consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) and the requirements of Swiss law. This responsibility includes designing, implementing and maintaining an internal control system relevant to the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. The Board of Directors is further responsible for selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances.

Auditor’s responsibility. Our responsibility is to express an opinion on these consolidated financial state-ments based on our audit. We conducted our audit in accordance with Swiss law and Swiss Auditing Standards and International Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers the internal control system relevant to the entity’s preparation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of express-ing an opinion on the effectiveness of the entity’s internal control system. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion. In our opinion, the consolidated financial statements for the year ended December 31, 2015 give a true and fair view of the financial position, the results of operations and the cash flows in accor-dance with IFRS and comply with Swiss law.

Report on other legal requirementsWe confirm that we meet the legal requirements on licensing according to the Auditor Oversight Act (AOA) and independence (article 728 CO) and that there are no circumstances incompatible with our independence.

In accordance with article 728a paragraph 1 item 3 CO and Swiss Auditing Standard 890, we confirm that an internal control system exists, which has been designed for the preparation of consolidated financial statements according to the instructions of the Board of Directors.

We recommend that the consolidated financial statements submitted to you be approved.

Ernst & Young Ltd

Christian Schibler Andreas BodenmannLicensed audit expert Licensed audit expert(Auditor in charge)

PublisherBühler AG, 9240 Uzwil

Concept / designCalydo, Steinhausen

RealizationgateB AG, Steinhausen

Copywriting and editingBühler AGCorporate Communications, UzwilSimone Hofer, ZürichBoris Schneider, Zürich

PhotographsRolf Richter, Düsseldorf

PrintersKörner Premium GmbH, Sindelfingen (D)

This Annual Report is published in English and in German. The binding version is English.

Bühler AGCH-9240 Uzwil, SwitzerlandT +41 71 955 11 11www.buhlergroup.com

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