2014. Passion for Growth. · wheat harvested worldwide is turned into flour on Bühler mills. The company’s contribution to the global production and processing of rice, pasta,

2014. Passion for Growth.

Annual Report

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Cover: Airport Tianjin Beijing – Glass coating made possible thanks to Bühler Leybold Optics vacuum thin-film systems.

Bühler makes a significant contribution to global food supplies with its industrial process technologies and solutions. Around 65 % of the wheat harvested worldwide is turned into flour on Bühler mills. The company’s contribution to the global production and processing of rice, pasta, chocolate, and breakfast cereals is equally substantial. Further-more, Bühler is the leading supplier of solutions for die casting, wet grinding, and coating technology with a focus on applications in the auto-motive industry, optics, electronics, paints, packaging, and glass tech-nology. As a technology group, Bühler invests up to 5 % of its turnover in research and development each year. Bühler covers the entire value creation chain, from consulting and engineering to construction and commissioning of machines and plants, right through to extensive maintenance and optimization services and training programs.

Bühler is proud of the Swiss heritage that has underpinned its work from its beginnings over 150 years ago to today, when the company has become a global player operating in nearly 140 countries. With around 10,600 employees, the company generates turnover of CHF 2.3 billion and is aiming to sustain its profitable growth. As a family company, Bühler is particularly committed to sustainability. With its industrial process technologies and solutions, Bühler is helping to ensure that everyone around the world will always have access to a safe, healthy, and affordable food supply, while also setting standards with regard to en-ergy efficiency and sustainable mobility. Bühler regards itself as a partner for industry and science, but also governments, helping to tackle global challenges resulting from population growth and climate change. Bühler places great emphasis on providing high-quality training and continuing education for its employees and currently has around 600 trainees in Switzerland, the USA, and Asia.

Corporate Profile.

Global presence, close to our customers.

28 Production sites21 Engineering sites94 Sales & Service sites14 Application centers 3 Analytical laboratories

137 Sites worldwide *

14 (+ 3)Sites

* As some sites are multi-functional, the total number of sites is smaller than the total number of individual positions.

Main production sites

10 (+ 0)Sites

North America

Uzwil Switzerland (head office)

Braunschweig Germany

Beilngries Germany

Zamberk Czech Republic

Wuxi China

Changzhou China

Bangalore India

Johannesburg South Africa

Minneapolis USA

Raleigh USA

Joinville Brazil

South America

407 Employees (– 0.3 %)

723 Employees (– 4,7 %)

51 (+ 13)Sites

44 (+ 1)Sites

18 (+ 1)Sites

Middle East and Africa

AsiaEurope

487 Employees (+ 1.9 %)

4025 Employees (+ 4.9 %)4933 Employees (– 4 %)

Content.

Sustainability Report.Creating a sustainable company step by step.

4Chairman / CEO Statement.“Eager to continue on our growth path.”

2Key Figures.

24Business Areas.Close to our customers.

6Continuity Comes First.The new Bühler owners and CEO Calvin Grieder talk about change, continuity, and their relationship with the company.

63Organization.

Present in Everyday Life.Every day, billions of people use Bühler technologies to satisfy basic needs such as food, communication, or mobility.

12Highlights of 2014.

71Financial Report.

28Technology & Solutions.Safeguarding the future with “open innovation”.

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2 Bühler Annual Report 2014

Key Figures 2014.Business.

In CHF m 2014 Change in % 2013 2012

Order intake 2,582 9.3 2,363 2,345

Order backlog 31.12. 1,582 19.9 1,319 1,347

Sales revenue 2,332 0.5 2,322 2,409

EBITDA 205 –4.7 215 218

EBITDA margin in % 8.8 9.3 9.1

EBIT 145 3.7 139 168

EBIT margin in % 6.2 6.0 7.0

Net profit 121 –1.5 123 155

Net profit in % 5.2 5.3 6.4

Investments in tangible and intangible assets 58 – 34.7 88 82

R&D costs 99 – 8.9 109 104

R&D costs in % 4.2 4.7 4.3

Equity ratio 45.2 44.6 41.2

Net liquidity 464 377 317

Return on Net Operating Assets in % (RONOA) 18.1 17.6 27.1

Employees as of December 31 (exclusive of temporary staff and apprentices) 10,575 –0.8 10,659 10,346

Apprentices as of December 31 596 6.2 561 576

Sales.

Group.

Sales revenue ( in CHF m )

2012 2013 2014

Order intake ( in CHF m )

2012 2013 2014

EBIT ( in CHF m )

2012 2013 2014

Net profit ( in CHF m )

2012 2013 2014

2,3322,3222,4092,582

2,3632,345

145139

168

121123

155

by Business

1 Grain Milling (31%)

2 Grain Logistics (7 %)

3 SORTEX & Rice (9 %)

4 Value Nutrition (21%)

5 Consumer Foods (12 %)

6 Die Casting (12 %)

7 Grinding & Dispersion (3 %)

8 Leybold Optics (5 %)

1

2

34

5

6

7 8 by Region

1 North America (15 %)

2 South America (9 %)

3 Europe (31 %)

4 Middle East & Africa (15 %)

5 Asia (30 %)

1

2

34

5

3Key Figures.

Sustainability.

Injuries and illnesses per 100 employees.

Bühler ManufacturingIndustry

Investments ( in CHF m )

2012 2013 2014

Employees.

2012 2013 2014

Participants in the compliance program.

2012 2013 2014

Compliance questions solved worldwide.*

* Registered in 2014 for the first time.

Reduction of energy consumption per production hour [MJ/h] between 2010 and 2014.

Reduction of water consumption per production hour [m³/h] between 2010 and 2014.

Employees worldwide.

Compliance.

Energy Consumption.

Water Consumption.

Research & Development.

10,57510,65910,346

3.4

3,298

4.2

2,167

2,94999109104

25

– 8%

– 2.7%


Calvin Grieder, Chairman of the Board and Chief Executive Officer

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Passion for Growth.

Dear Sir and Madam,

In 2014, Bühler has achieved a satisfying result with noticeable growth signals. We increased our order intake organically by 9 % from CHF 2.4 billion to CHF 2.6 billion. Our consistently high investments in regional presence, in research and development, and in the expansion of our services and solutions portfolio have paid off.

We are pleased to report that this upswing in our order intake was broadly based, with all business areas and all regions contributing. The business area Die Casting (aluminum die casting systems) stood out, achieving a record year. Geographically speaking, especially the emerging markets China and India, reaching growth above 20 %, came out on top. The development of our services and solutions business, which supported our positive business development, is a growing new area of our company.

Bühler was thus able to master the ongoing risks of the global economy created by volatile currencies, pandemics, regional crises, and wars to successfully seize existing opportunities even under difficult conditions. For this, we owe our employees our sincere thanks. Their untiring efforts and their high level of competence form the basis of this success. The continuity of a family-owned business under a new shareholding supports our long-term and sus-tainable orientation.

The rise in order intake started in the second half-year. Due to the long-term nature of our projects, which last up to 24 months, this growth is not yet reflected in our turnover. Revenue remained stable from a year ago at CHF 2.3 billion. On the other hand, we made perceptible headway in terms of operating profitability. EBIT grew by 4 % to CHF 145 million (EBIT margin: 6.2 %; previous year: 6.0 %). Its development was impacted by inad-equate capacity utilization plus restructuring costs. Both effects impacted EBIT to an amount of about CHF 50 million. Adjusted for these factors, EBIT would be within our target band of 8 to12 %. In order to sustain our earnings power, we will systematically continue to implement the measures we have defined to optimize our global production network in order to increase efficiency.

OutlookFor Bühler, the current fiscal year started with the challenge to secure our competitiveness in view of a substantially strengthened Swiss franc. We are entering this severity from a position of strength: with engaged employees, a full order book, close customer relations, outstanding market and technology positions, a global setup as well as a sound financial position. In this context, we will take this challenge as an accelerator for innovation and efficiency programs we already have initiated.

We look into 2015 with some optimism. Generally speaking, we are eager to continue our growth path in conjunction with a healthy profitability.

Calvin GriederChairman of the Board and Chief Executive Officer

Chairman / CEO Statement.


Maya Bühler, Karin Bühler, Calvin Grieder, and Jeannine Bühler.

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For Bühler, 2014 was a year marked by major changes with regard to its shareholder structure and Board of Directors: Urs Bühler, up to now the sole shareholder and the chairman of the board, transferred his shares to his three daughters Jeannine, Maya, and Karin Bühler. Each of the new owners now possesses one third of the family holding. Calvin Grieder, who has headed Bühler Group since 2001, has been appointed chairman of the board in addition to his position as CEO. The owners have one seat on the board. Urs Bühler has set up the “Urs Bühler Innovation Fund”, which he presides and which is devoted to promoting the Group’s innovation efforts. In this interview, the new shareholders and the CEO & Chairman of the Board talk about the change and the future sharing of tasks.

Maya Bühler: For this reason, conti-nuity is our top priority: We want to build upon the strengths and values of Bühler. We cannot take the stability of the company and its past development for granted. We thank our father, the management team, and all Bühler em-ployees for their trust and dedication. We owe it to them all that Bühler is what it is today – a successful and sta-ble global group of companies. We look forward to keeping up this suc-cess story and continuing to lead the company in this spirit. Also in the fu-ture, we plan to benefit from the advan-tages of a family-owned company and to continue building upon the values and strengths of Bühler.

… which would be?Karin Bühler: First of all, to always bear in mind that our customers’ suc-cess is the recipe for our own success. Then, to offer our motivated employees a fascinating environment promising great potential for development. And finally, to focus on the long term. All this is reflected in the Bühler core values: “We engineer customers’ success”, “The best people at Bühler”, and “Innovations for a better world”.

How does the CEO translate these values into daytoday business?Calvin Grieder: In order to foster our customers’ success, we must have a profound understanding of the market and technology trends. We then posi-tion ourselves as the leading solution provider in our markets of the future such as safe and healthy foods or sus-tainable mobility through cutting-edge technologies and systems. Sustainability means to offer our customers around the world an extensive services and solu-tions portfolio at their local sites. In or-der to do this with a good price-to-performance ratio, we must not only be the best in class, but also the most

Why was the shareholder structure changed in the first place?Maya Bühler: Our articles of incorpo-ration limit the age of the members of the board to 70 years. Our father has reached this age and decided to with-draw from his office as chairman. In his opinion, the family members on the board should also be the owners. Therefore, the shares were transferred to us.

How did the CEO experience the change?Calvin Grieder: In a way how we use to do such things at Bühler: on the basis of long-term planning and in an orderly way. The change was effected with complete transparency and in agree-ment with the board and did not impact business operations.

As children, you grew up as the company itself grew. What are your personal memories?Jeannine Bühler: We felt our father’s dedication and commitment to the com-pany from our early childhood onward. This made a deep impression on us. We learned early on what it means to as-sume responsibility. As we grew older, we were increasingly involved in the company’s business activities.

Did your family talk a lot about the company?Karin Bühler: The older we became, the more we talked about company matters.

How do you see your role as owners of Bühler now?Jeannine Bühler: First of all, we are very proud of what has been achieved over the past decades. When we were young, Bühler was a Swiss mechanical engineering company. Today, the com-pany is a global technology group with a broad solutions portfolio in fascinat-ing markets of the future such as food production or surface coatings.

“Continuity Comes First.”

Continuity Comes First.


“ But we have also always been in the vanguard of social institutions such as our welfare house and dual vocational training.”Karin Bühler

9Continuity Comes First.

efficient. This requires that we attract and develop highly qualified employees and offer them highly meaningful jobs.

What is your idea of role sharing between you as family shareholders and the executive functions of the company?Maya Bühler: By adopting a clear family orientation, we will give the com-pany meaning and a long-term focus. Through the Board of Directors, we will influence the company’s purpose and aims and its corporate culture. It is upon these foundations that we plan to build.Jeannine Bühler: The company’s pos-itive development over the past years was only possible on the basis of pro-fessional management in conjuntion with strict and equally professional role sharing. In this constellation, we as a family-owned company can create op-timal general conditions for the com-pany to operate in: a stable sharehold-er structure, a long-term orientation, steady company management even in difficult times which is not subject to the constraints of quarterly reporting – but nevertheless a management style pursuing business success.

Wouldn’t the CEO like to lead a stocklisted company?Calvin Grieder: Whether a company is family-owned or publically-owned is after all not a matter of black or white. It always depends on the concrete situ-ation. But in the case of Bühler, we can rightly say that we are taking full advan-tage of all the benefits that a family-owned company can offer, which reside in its long-term orientation. This is par-ticularly important in the plant con-struction business. Thus, we have con-sistently maintained our high level of investment in innovation and new equipment even in times of crisis. This setup enables us to take an anticyclical approach in order to sustain our suc-

cess and to set a sharp focus on our employees.

How have you organized family matters as joint shareholders?Jeannine Bühler: We are organized as a family holding. We have a clear and unified voice in relation to the company and within the Board of Di-rectors.

What values and guiding principles are you pursuing as investors?Maya Bühler: The company must grow profitably and sustainably within a reasonable framework so as to gen-erate long-term value. This is only pos-sible through satisfied customers and innovation leadership.Karin Bühler: But we have also al-ways been in the vanguard of social institutions such as our welfare house and dual vocational training, allowing us to retain loyal employees who are highly committed to performance worldwide. This means for instance that we offer our workforce advanced training and continuing education op-portunities. We are aware that the company would never be where it is now without the loyalty and devotion of its employees. This shows that our employees and their concerns are very important to us.Calvin Grieder: But this by no means implies that we should forgo our duty to systematically act on the basis of sound business principles. The oppo-site is true. As a family-owned organi-zation, we must rely on self-financing. And today’s fierce global competition has enormously increased the flexibility and efficiency requirements. Comfort zones have simply ceased to exist. Our company must remain in a position to fin ance the necessary investments and external growth out of the cash flow generated by its business operations.

“ The company must grow profitably and sustainably within a reasonable frame work so as to generate longterm value. This is only possible through satisfied customers and inno vation leadership.”Maya Bühler


Our employees understand that with-out success, the survival of our organi-zation may be in jeopardy.

Is going public a possible option at all? Jeannine Bühler: This is no option for us in a planning period of about 5 to 10 years that we can realistically grasp.

And selling shares?Karin Bühler: Not either.

As the owners, you might become actively involved in company management as members of the Executive Board. Would that be an option?Maya Bühler: We are placing our com-plete trust in our current management team. We do not have any ambitions in this respect, either.

2014 was a year of major changes for Bühler, with powerful growth signals. What operating goals is the company pursuing in the near future?Calvin Grieder: At present, we are reviewing our long-term goals. In doing so, we are aiming at ambitious targets – or, as Stirling Moss once said: “If ev-erything is under control, you are just not driving fast enough.” Wherever we hold leading market positions, we plan to consolidate them – and wherever we are not yet holding them, we strive to attain them. Associated with this, we are reconfirming our financial targets of organic growth above market growth of at least 5 % and an EBIT margin of 8 to12 % – depending on the general economic conditions. Within this band-width, we can cover our investments in research and development, regional expansion, and new equipment through our cash flow. We only plan to make acquisitions to round off our portfolio and develop new growth potential.

How are you as the owners involved in this process?Karin Bühler: The family as the own-ers maintain a relationship with the management team that is based on trust and has grown over the years. We provide timely and transparent informa-tion to one another and are thus able to avoid surprises in one or the other di-rection. We are convinced that this has always been an important success fac-tor in the past – and that it will remain one also in the future.

“ Today, the company is a global technology group with a broad solutions port folio in fas ci nating markets of the future such as food production or sur face coatings.”Jeannine Bühler

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“Wherever we hold leading market positions, we plan to consolidate them – and wherever we are not yet holding them, we strive to attain them.” Calvin Grieder

Continuity Comes First.


January February March April

Bühler Innovation Challenge 2014.The 4th Bühler Innovation Challenge – an in-house inno-vation competition under the brand of “Create the future together” – started success-fully. This year’s competition was again a huge success, with more than 4,000 employees involved across the world. From over 220 ideas, four teams made it to the final and all four teams received the go ahead to implement their ideas.

A giant leap forward in intelligent optical sorting for rice: SORTEX S UltraVision™.Featuring Bühler’s brand-new SORTEX ProSort™ software and advanced proprietary in-spection system, the SORTEX S UltraVision™ demonstrates a total commitment to providing the ultimate sorting solution to rice processors.

ChocoMaster™ Compact.Bühler launches its new Choco-Master™ Compact solid mould-ing line. The line is designed for customers who require a medium output range (<2 t/h), e.g. for making chocolate bars. This latest innovation followed the ChocoStar Compact, which was launched three years ago, and is a further addition to the portfolio of compact lines.

Fiscal 2013 with higher order intake – change in the Board of Directors.Bühler looks back on fiscal year 2013 with an order intakeexceeding the level of the pre-vious year. After 33 years as a member and 20 years as chairman, Urs Bühler left theBoard of Directors. His suc-cessor is Calvin Grieder, who continues to act as CEO. Dur-ing various events wordwide, the staff took the occasion to celebrate the success of the Bühler Group as family-owned company and at the same time to say goodbye to Urs Bühler.

Highlights of 2014.

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May June July August

Bühler at Interpack 2014.At the world’s largest trade show for packing technology and specialty foods processing, Bühler presented a total of 11 innovations. These solutions set new standards in terms of hygienic design, efficiency, and product yield. Among the highlights were solutions such as MicroFactory, Choco Master Compact, or Infinity-Roast.

Opening of new production facility in China.Bühler celebrated the opening of a new production facility in Wuxi, China, together with cus-tomers, representatives from Chinese die casting associations, and Bühler colleagues. The new facility allows Bühler to manufacture up to 300 Ecoline die casting machines annually. In ad-dition, it offers a state-of-the-art training and technology center.

Bühler wins Food Technology Industrial Achievement Award.Bühler has received the 2014 Food Technology Industrial Achievement Award for its re-search to preserve the hygienic and sanitary quality of foods in order to maintain the highest food safety standards for the sake of the health of the con-sumer and development of the Controlled Condensation Pas-teurization Process (CCP), which was designed specifically to answer requirements to maintain natural quality of raw almonds.

Second Lady Jill Biden visits Bühler.Dr. Jill Biden, the wife of US Vice President Joe Biden, paid a visit to Bühler Uzwil. Dr. Biden is an educationalist who has for years been committed on behalf of the Obama government to enhancing the possibil it ies of American vocational training. At the site in Uzwil, the Second Lady gained a live impression of Bühler’s vocational training program and work environment and talked with individual apprentices. Bühler offers around 600 training places worldwide.

Highlights of 2014.


Bühler at glasstec.Bühler participated in glasstec, the world’s largest glass show held in Düsseldorf, Germany. The business area Leybold Optics used the platform to show its strengths in the architectural glass equipment market. Among the highlights was the presen-tation of the eco-friendly vacuum coater Leybold Optics GLC.

Even closer to Bühler customers in the Middle East and Africa.In order to improve Bühler’s ability to respond to customers’ regional requirements in the Middle East and Africa, five new sub-regions will be man-aged centrally from the new headquarters in Dubai: Arabia (Dubai), Central Eurasia (Teh-ran), East Africa (Nairobi), North-West Africa (Casablan-ca), and Southern Africa (Jo-hannesburg).

September October November December

Bühler Wuxi Machinery Manufacturing celebrates its 20th anniversary.On September 19, 2014, Bühler Wuxi Machinery Manufacturing celebrated its 20th anniversary. Bühler Wuxi is the joint venture that emerged from the former Wuxi Grains Machinery Company and Bühler Holding in China.

Bühler wins Leonardo Award for ClassUnlimited concept.Every year, the Leonardo Euro-pean Corporate Learning Award awards visionaries in the field of education. As first Swiss company, the Bühler Group was awarded in the cat-egory “Company Transforma-tion” for its unique ClassUnlim-ited concept. CEO Calvin Grieder was on hand to accept the renowned award in the name of the company.

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Present in Everyday Life.

We make a significant contribution to global food supplies and mobility: Around 65 % of the wheat harvested worldwide is turned into flour on Bühler mills, 30 % of global rice production uses Bühler plants, 20 % of cars have aluminum engine blocks produced on Bühler machines. In the following pages, we have picked a selection of examples to show just how omnipresent our products are.


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60%of all chocolate is produced in Bühler plants. 4 million tons of cocoa beans are harvested every year.

Bühler Annual Report 2014

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of global rice production is covered by Bühler solutions. Rice is the staple foodstuff for 3 billion people.



of the world’s car taillamps or headlamps are getting metallized on Bühler machines.

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of global malt processing is covered by Bühler solutions. Numerous malthouses and breweries benefit from Bühler’s experience.



of all cars worldwide feature die cast parts from Bühler. Around 20 % have engine blocks produced using Bühler die casting technology.

21Thema

of global wheat production is covered by Bühler milling solutions. 4.5 billion people live on wheat.


22

60%


of all offset inks are produced using Bühler processes.

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40%of industrial made pasta is produced using Bühler technology.



Grain Logistics.

Bühler Grain Logistics offers storage solutions, machin-ery and components throughout the entire food value-added 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 Logis-tics sees to it that post-harvest losses, which are still occurring at an immense rate globally, are further re-duced and that fewer commodities go to waste. Further-more, with 75 % of all malt produced in plants provided by Bühler, Grain Logistics is the world -wide leading sup-plier of individually tailored malting systems.

Key end markets

– Grain Milling: flour and semolina– Industrial bakeries: dough and predough– Ingredient handling: mixes and premixes– Brewing plants: grist

Key end markets

– Collection points/reception of agricultural products– Grain handling terminals (inland and ports)– Mills (flour/rice/feed/edible oil)– Malting plants– Seed processing plants

Grain Milling.

The Grain Milling business area makes a significant contri-bution to global food supplies. Around 65 % of the wheat harvested worldwide is ground on Bühler mills. Grain Mill-ing offers its customers state-of-the-art process technol-ogy and innovative engineering for processing wheat, maize (corn), rye, oat, barley, millet/sorghum, buckwheat, and soybean. As a solution partner for its customers, the business area covers the entire value chain from consulta-tion to engineering, assembly, and commissioning, right through to main tenance, training, and continuing educa-tion. The business area also provides innovative plant concepts for the brewery and bakery markets. Bühler plants guarantee sensitive handling of valuable raw mate-rials and achieve the highest product quality and yield while making it possible to optimize production and staff-ing costs. The business area has a presence in 140 coun-tries and 40 of its own branches, and is active on all con-tinents.

Business Areas: Close to our Markets.

25Business Areas.

Sortex & Rice.

Bühler Sortex & Rice significantly contributes to global rice and pulses nutrition and additionally ensures and safe-guards food safety by unique proprietary sorting technology. As the global benchmark in optical sorting, SORTEX ad-vanced technology ensures that many crops are sorted with exceptional accuracy and speed. Defective grains and for-eign materials are rejected, while maximizing speed and yield and minimizing the loss of good grains. Our reputation for research and technology in the processing of rice by-products helps our customers to maximize value from every grain. In pulses, sesame, and spices processing, our col-laborative innovation approach aims to develop compre-hensive processing solutions along the pulses value chain from farm to plate. With landmark rice mill installations in every major rice geography, a global installed sorter base of over 25,000 machines and extensive capabilities including consultation, project management, installation, and start-ups, Sortex & Rice is the technology partner of choice for processors who value excellence.

Value Nutrition.

The Value Nutrition business area combines innovative pro-cess solutions for the food and animal feed industries and pays particular attention to the ever-increasing require-ments placed on valuable human and animal nutrition. As a result, Value Nutrition is the global solution partner for pro-ducers of food and animal feed: from pasta and noodles, cereals, and snacks to pet food and feed for fish, cattle, and poultry. The company’s contribution in this area is substan-tial: 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 tech-nologies of Value Nutrition relate to the areas of extrusion and drying, both of which are ingrained in comprehensive expertise throughout the entire process. This allows Bühler to time and again set international standards in various ar-eas, including energy efficiency in the production process, for example.

Key end markets

– Rice processors and exporters– Processors in pulses, sesame, and spices– Nut, seed, grain, coffee, and fruit and vegetable processors

and exporters– PET plastic recycling

Key end markets

– Feed (cattle, poultry, swine), aqua feed, pet food– Pasta, Asian noodles– Breakfast cereals, snacks– Oil (soy, sunflower, canola)

“ With our industrial process technologies we enable food security and safety.”Stefan Scheiber, CEO Grains & Food


Die Casting.

Bühler Die Casting is the global leading provider of alumi-num lightweight solutions to the automotive industry, supporting their efforts to reduce C0² emissions. Around 20 % of all cars drive with engine blocks made with Bühler equipment. The business area provides optimized die casting machines and cell solutions, fully integrated pro-cess controls, plant layout know-how as well as global service support and process knowledge. With a strong global service network, several application centers as well as its own production, machine revision and technol-ogy sites in Europe, Asia, and North America, Die Casting supports its customers in all phases of their investment, ensuring highest productivity and quality – from planning to startup and throughout the entire life cycle of the equipment.

Key end markets

– Cocoa– Chocolate– Coffee– Nuts

Key end markets

– Automotive, 2-wheelers– Electronics/electrical industry– Appliances/white goods– Buildings

Consumer Foods.

Consumer Foods contributes significantly to the world-wide production of cocoa, chocolate, coffee, and nuts. With a market share of 60 %, the business area has set standards in chocolate manufacturing and is committed to the conti nuous development of innovative technologies. The company is a complete product and service provider to the industry and covers every process stage with state-of-the-art produ ction systems. Bühler provides energy-efficient processes with maximum raw material yield and top product quality.

“ We develop new solutions for energy efficiency and sustainable mobility.”Samuel Schär, CEO Advanced Materials

27Business Areas.

Grinding & Dispersion.

The production of inks, printed products, solar panels, or batteries for electric cars rely on equipment and solutions availabe from Bühler Grinding & Dispersion. Around 75 % of the silver paste used in solar panels is produced on Bühler equipment. Bühler Grinding & Dispersion offers comprehensive know-how and has the ability to deliver its customers tailor-made systems for complex process-es. As a technology partner for process engineering, Grinding & Dispersion has not only state-of-the-art ma-chines, but also complete solutions for the manufacture of highly advanced materials. Our continuous develop-ment enables our customers to manufacture better prod-ucts and be at the forefront with market innovations.

Leybold Optics.

With its vacuum deposition equipment, Bühler Leybold Op-tics contributes among other things to energy efficiency, comfort, and food preservation. Thin-film applied on our machines ranges from functional coatings for window glass to coatings for headlight reflectors as well as flexible pack-aging. Coatings for ophthalmic and precision optics prod-ucts such as lenses, lasers, or high-end telescopes com-plete the Leybold Optics product portfolio. Buildings with coated fassade glass require up to 50 % less energy for heating and cooling. The business area combines state-of-the-art equipment technology with comprehensive process and application know-how to offer customers complete production solutions.

Key end markets

– Offset and liquid inks– Materials for the electronics industry (eg. lithium-ion batteries,

metal pastes for semi-conductors)– High-value coatings

Key end markets

– Optics (precision and ophthalmic)– Architectural glass– Flexible packaging– Automotive industry


Strong focus on research and development.Approximately half of Bühler’s sales revenues are generated by products that are less than five years old. For this reason, the company invests an average of up to 5 % of its revenue in basic research and applied development. More than 7,500 patents stand testament to Bühler’s innovative power. Inter-disciplinary research teams comprised of well over 200 em-ployees are constantly on the search for new innovative solu-tions. While the majority of these are self-generated, many are also the result of close collaboration with our clients as well as in cooperation with numerous colleges and re-search institutes. Collaboration in research and development guarantees our position at the forefront of knowledge. Bühler works globally in conjunction with other companies, colleges, and renowned institutes with its ongoing developments as well as its improvements of existing products and solutions. Working closely together with research and development institutes is an important cornerstone for the company’s con-tinuing advancement.

Open Innovation Network.

Canadian International Grain Institute, Winnipeg (CDN)Pulse Processing

University of Arkansas, Arkansas (USA)Grain Processing Research

Kansas State University, Manhattan (USA)Grain and Feed Processing Research

Among others, Bühler collaborates with various universities and research institutes.

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Wuxi Tech, Wuxi (CHN)Research on Food Processing

Technische Universität München, Munich (GER)Research on Food Processing

Fraunhofer Institute for Silicate Research ISC,Würzburg (GER)Architectural Glass

EPFL Lausanne, Lausanne (SUI)Bühler Innovation office on the campus

ETH Zurich, Zurich (SUI)World Food System Centre, Manufacturing across Scales initiative, EMPA, Innovation and Entrepreneurs Lab., MTEC and the Excellence Scholarships

HSG St.Gallen, St.Gallen (SUI)Innovation Management, Executive MBA and Business Model Innovation Think Tank

University of Padua,Padua (ITA)Process Modelling

Central Food Technological Research Institute (CFTRI), Mysore (IND)Research on Food Processing

DIL, Quakenbrück (GER)Research on Food Safety

Campden BRI, Campden (ENG)Food Safety Trainingand Research

Imperial College, London (ENG)Sensors Research

TU Braunschweig / IPAT, Braunschweig (GER)Comminution Technology

TUD / Institute of Lightweight Engineering and Polymer Technology, Dresden (GER)Multimaterial Lightweighting

Technology & Solutions.

Universidad de Zaragoza, Saragossa (ESP)Research on Food Safety


Bühler operates an open innovation system to efficiently share expertise between employees, universities, customers, sup-pliers, and entrepreneurial partners. The anchoring of research and development at the level of the Executive Board and the work of the Innovation Advisory Board, comprised of of top-class experts, ensure that all areas of the company can tap the full potential of future key technologies.

Bühler has a high innovation rate, generating around half of its turnover from products that are less than five years old. Once again, in 2014, the company invested around 100 mil-lion Swiss francs in fundamental research and applied development. Innovations are protected, with over 7,500 pat-ents filed to date. When developing new products or solutions, Bühler has its own particular approach: the “open innova-tion model”, which is applied throughout the Group. With this model, the Group relies on collaborative innovation, whilst maintaining a strong in-house core competence in R & D in technology to ensure the successful commercializa-tion of collaborations. This approach requires an openness which is rarely seen seen in the R & D departments of indus-trial companies.

Employees become entrepreneurs.The Bühler Innovation Challenge was held for the fourth time in 2014. This competition uses the expertise of Bühler’s 10,600 employees around the world to develop new prod-ucts or services, and inspires them to think and act in an entrepreneurial fashion. In past years, the competition has produced successful products such as the Isigayo maize mill, which is specially tailored to suit the requirements of small businesses in rural areas of Africa. In 2014, a total of 220 ideas were submitted. Eight teams were given professional coaching to help them refine their concept. On September 5, four projects were presented to members of the Executive Board. The winner was the ChocoBotic team with a process for the production of individualized chocolate products. All four projects received funding for implementation.

Tapping potential at universities.A second cornerstone of innovation is working together with universities. Bühler has a strong history of partnerships with academic institutes, but in order to further unlock the cre-ative potential of students and academics, Bühler posted an open challenge on the EPFL online platform Fusebox for the first time in 2014. Contributors were asked to submit ideas for reducing food losses. From over ninety ideas from six universi-ties, the five best suggestions were selected, the teams trained, and prizes totaling 10,000 Swiss francs awarded. In order to further strengthen this collaboration, Bühler has also opened a permanent office on the EPFL Innovation Park.

Tapping the expertise of customers and partners.The third cornerstone is the inclusion of customers in devel-opment projects. As the example of the new Ceres hygienic dryer shows, customers are frequently involved in the devel-opment process early on. However, Bühler also applies the open innovation model to its collaboration with suppliers. The “Bühler Innovation Partners” competition, which was held for the second time in 2014, addressed general topics such as energy efficiency, but also looked for solutions to project-specific issues for the first time.

Innovation is anchored in the Executive Board.Research and development has been represented at the level of the Executive Board since 2011, when CTO Ian Roberts became a member. The crucial task for the Corporate Tech-nology Group is to prepare key technologies so that they can be used in all areas of the company. The Group is supported in this regard by the newly created Innovation Advisory Board, whose members include Urs Bühler, Hal Gurley (Man-aging Director of Cisco Cloud Solutions), Matthias Kaisers-werth (Director of IBM Research, Zurich), and Ed Steinfeld (Professor of China Studies at Brown University). The board will manage the allocation of the Urs Bühler Innovation Fund

Preferred Partner for Innovation.

(UBIF), which is to be launched at the start of 2015. With the collective wealth of expertise on the board, it will support Bühler’s innova-tive capacity in areas such as intelligent pro-cess optimization.

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What makes Bühler’s innovative capacity special?Ian Roberts: We want to make the most of the expertise available in our extensive network so that we can create even better solutions for our customers. For example, we have found a way to unlock our employees’ potential with the Bühler Innovation Challenge. But we go further than that, including universities, customers, and partners in our devel-opment projects too. The implementation of the open inno-vation approach is unique for an industrial company.

Why is open innovation a good idea?Ian Roberts: Let’s take food safety as an example. From growing crops to processing and selling, there are so many different parties involved that it would be impossible for a single market participant to develop the “silver bullet” solu-tion. We need efficient cooperation along the entire supply chain. Innovation and life-long customer partnerships have made Bühler what it is today. This inventive spirit and long-term thinking are also reflected in our efforts with regard to open innovation.

What sort of technological challenges does Bühler face?Ian Roberts: Additive manufacturing methods such as 3D printing will have a huge impact on our business. This technol-ogy brings unprecedented possibilities for developing, pro-ducing, and adapting machines. It could be used to produce spare parts locally, or even to print out foods. Another key topic is the “Internet of Things”. Sensors are becoming less expensive, making it possible to measure the moisture con-tent of a type of food along the entire processing chain, for example. We will see autonomous control of complex produc-tion processes in the future providing solutions for example for energy management and product quality and safety.

What is the role of the Innovation Advisory Board?Ian Roberts: With Hal Gurley, Matthias Kaiserswerth, and Ed Steinfeld, combined with the experience and innovation passion of Urs Bühler, we have manned this new board with experts who can help Bühler to overcome future challenges with their experience and entrepreneurial skills. The board will also invest the Urs Bühler Innovation Fund (UBIF).

Current challenges such as food safety can only be overcome through collaborative work which transcends corporate boundaries, says Bühler’s CTO Ian Roberts.

“ We make the most of the potential in

our network. ”Ian Roberts, Chief Technology Officer (CTO) Bühler.



All over the world, consumer standards are rising when it comes to the quality and safety of rice. Rice processors are therefore reliant on efficient solutions for finding and removing poor-quality grains and foreign particles. Based on over 65 years’ experience in the field of optical sorting and after inten-sive research, Bühler has developed the SORTEX S UltraVision, which has been specifically optimized for sorting rice. The new flagship of the SORTEX family was launched at the start of 2014. The intelligent system gives rice processors unprec-edented control over the properties of the end product, en-abling them to produce qualities that are tailored precisely to the specific requirements of different customers or markets and meet even the most exacting of export standards. This in turn improves their competitive advantage and profitability.

The SORTEX S UltraVision represents a quantum leap in op-tical sorting technology. Previously, it was only possible to eliminate one defect – such as a particular discoloration – per sorting step when processing rice. With the new system, different defects such as discoloration, damage, or foreign particles can be detected and removed at the same time. The sensitivity can be set separately for each individual flaw.

This is made possible thanks to a high-performance detec-tion system, which pinpoints any unwanted grains. The mul-ti chromatic cameras, which were specially developed by Bühler for sorting rice, can measure multiple colors at the same time, enabling them to detect even the slightest of differences in the color of the grains. The accuracy is also increased through the use of specially textured LED light and an intelligent software controller. With up to six sorting mod-ules, the system offers the highest throughput rates ever achieved by Bühler.

The SORTEX S UltraVision is incredibly easy to operate and maintain. For example, there is no complex manual setup required: The machine scans the incoming product and adjusts itself automatically. With the pre-installed settings, users can then perform a high-quality sorting process at the touch of a button. Thanks to the integrated remote mainte-nance access, Bühler engineers are also able to provide efficient support for customers all over the world – for example, to help them with the precise settings required for a specific product quality.

The ultimate in rice sorting performance.

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Bead mills have proven to be particularly efficient for dispers-ing printing inks in applications such as food packaging. The pigments are subjected to constant mechanical stress between moving grinding elements in order to grind them to the desired particle size. In 2014, Bühler launched the Micro-Media bead mill (see photo above), which has been specifi-cally optimized for the use of micro grinding beads with a diameter of 20 to 800 micrometers. Using these micro grind-ing beads significantly increases the surface area available for grinding, which makes it possible to achieve a much finer dispersion and, therefore, a better ink quality. The extremely fine dispersion also means that fewer pigments are required, which in turn reduces the material costs for the printing ink manufacturer.

The new bead mill is able to provide all of these outstanding benefits by ensuring effective activation of the micro grinding elements, whereby the entire package of beads is subjected to a particularly intensive grinding motion by means of turbu-lence. The grinding elements are separated effectively via centrifugal forces and the free screen surface is maximized, resulting in a maximum throughput rate of up to 4,000 liters

of ink per hour. This is the highest throughput rate achieved so far for micro grinding elements in an industrial application. What is more, the micro grinding beads require much less energy in order to provide the same grinding power: The energy required to produce high-quality printing inks is 30 to 40 % lower, thanks in part to the high number of grinding elements.

The MicroMedia technology was initially developed for the production of color filters for LCD and LED screens. In con-junction with a major printing ink manufacturer, Bühler has been able to successfully adapt the high-tech application for use in the printing ink industry. Today, three of the five largest manufacturers of printing inks for food packaging use the innovative MicroMedia grinding technology. However, even owners of older bead mills, such as the Advantis or Super-Flow types, can benefit from the improved efficiency of micro grinding elements. A kit is available for retrofitting plants with the MicroMedia technology, enabling them to improve the productivity of existing machinery by up to 40 %.

Better and more affordable inks with micro grinding beads.



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Up to 75 % faster cleaning, double the operating time be-tween cleaning intervals, improved hygiene, and a significant rise in productivity: The Ceres hygienic dryer, which was developed by Bühler Aeroglide in just 18 months, optimizes all key areas of the manufacturing process for coated ready-to-eat cereals. Bühler presented this innovation for the first time at the Interpack 2014 trade fair. The first prototype was installed in South America, and a second installation is planned in North America for the start of 2015. The numerous improvements can be attributed in no small part to Bühler’s open innovation approach: Various end customers were in-volved in the development process from a very early stage in order to ascertain their key requirements for a cereal dryer. The results showed that customers’ main priorities were quick and easy cleaning, improved hygiene, and high pro-ductivity.

The challenge when drying cereals is that large amounts of sugar are deposited inside the machine. The plants must, therefore, be cleaned regularly and thoroughly to ensure high product quality and safety. With the Ceres dryer, this process only takes around two hours, which represents a time saving of up to 75 % compared to conventional dryers. This is parti-cularly significant for producers who want to manufacture multiple batches of different products one after another. This increase in efficiency is made possible thanks to a complete-ly new machine design and a number of structural modifica-tions which have resulted in improved hygiene. What is more, the new design also extends the operating life: While some conventional dryers have to be cleaned after just eight hours, this interval can be up to twenty hours with the Ceres dryer.

High productivity is also important. Ceres was therefore designed as a downdraft dryer, in which the air flow is up to four times faster than in conventional dryers. This means that the heat gets into the cereals more quickly, shortening the drying process and making the product quality more consis-tent. Ceres can process up to four tons of cereals an hour. The intelligent arrangement of the air flow and the new, precise sys-tem for controlling the drying process also improves the energy efficiency of the plant, thereby reducing operating costs.

Efficiency for cereal production.


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Sustainability through training.

Demand for staple foods has risen sharply in Africa due to pop-ulation growth and increasing urbanization. Food companies – particularly those that process grain – are investing heavily in new capacities. Frequently though, these efforts are hin-dered by the lack of trained staff. In response to this problem, Bühler has founded the African Milling School (AMS) – a voca-tional school in Nairobi (Kenya) which trains millers from all over Africa. The first students will start their training in spring 2015. The AMS provides employees of African milling com-panies with the theoretical and practical skills they need to operate a flour mill. In this way, we are contributing not just technology, but knowledge too in order to improve food sup-ply in Africa and free people from starvation.


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Sustainability Inside.We do not see sustainability as an add-on; to us, it is an integral part of the way we do business. This means that we can only be sustainable if our eco-logical and social activities are also economically viable. In 2014, we made significant progress in our efforts to make sustainability a comprehensive and inherent part of our company. The number of sites where reporting is in line with the Global Reporting Initiative grew from 5 to 10 in 2014. This year we are planning to extend this number to 5 more branches which would then cor-respond to more than 80 % of our turnover. This level of transparency is a key prerequisite for us in order to identify required measures, document impro ve-ments, and learn from one another on the basis of best practices.

Sustainability Report.


Bühler’s success story spans more than 150 years and is based on an independent and sustainable business policy. This policy includes providing our employees with further training and education, being innovative and relying on co-operation, as well as committing ourselves to improving the quality of living wherever we operate. The principles of run-ning a socially, ecologically, and economically sustainable business are in our genes.

We deliberately set our standards high for improvements in all business units, products, and locations through our com-mitment to sustainability, not to mention the clearly defined and measurable objectives that stem from this. Our sustain-ability report brings together the components of our sustain-ability policy and, at the same time, serves as a report on our progress and as a guide for present and future social, envi-ronmental, and commercial challenges.

Why sustainability is important to us.

1. We contribute to sustainable added value chains. We’re committed to contributing to the sustainable suc-

cess of our customers by offering solutions for improving resource efficiency, enhancing quality and functionality, and ensuring competitive total cost of ownership. We do our part in facing central global challenges by offering in-novative products and processes for improving food safety and reducing food losses. We work closely with our suppliers and partners to improve the environmental foot-print of our products and our own operational activity.

2. We ensure a winning organization. Motivated employees committed to performance and

dedicated management teams are the key to our success. Their passion, expertise, creativity, and openness give rise to innovative solutions which benefit not only the com-pany, our employees, customers, and partners, but also society as a whole. We’re committed to developing our corporate and management culture as well as our em-ployee further training and education programs, which, in turn, will allow us to strengthen our organization.

3. We operate independently to ensure profitable growth.

Our sustainable and independent economic development comes from being able to offer our customers products and services that go above and beyond their expecta-tions. The success of our customers manifests itself as profitable volume growth for Bühler that allows us to invest in our employees, locations, and innovations.

Foundation of Business Development.At a Glance.

39

1

2


We have the broadest coverage of our customers’ value chain.

Consumer Goods

Raw Materials CollectionPoints

Primary Processing

Secondary Processing

1 Customers’ Sustainable Value Chain. We strive for continuous improvement of our products and services

to engineer sustainable added value for our customers by: reducing raw material losses, setting the industry standard in safe and healthy food, setting the industry standard in resource efficiency and reducing water requirement. We build, share, and apply knowlegde in-house and together with our customers, aiming to create best solutions.

2 Bühler’s Sustainable Value Chain. We aim for continuous improvement at our own production sites through: reduction of specific energy usage, reduction of

material usage, reduction of water usage, reduction of waste, reduction of transport, and sustainable sourcing.

Bühler Solutions

Bühler Suppliers

Efficient processing solutions

Safe and healthy food

Reduced material losses

Reduced energy use

Main influence of Bühler.


Wuxi

BangaloreBraunschweig

Uzwil

Johannesburg

Social sustainability.

We ensure a winning organization.

Commitments.

1.1 We pursue our culture of continuous learning.

1.2 We foster our culture of openness and partnership.

1.3 We strengthen our culture of health and safety.

Transparent reporting according to the Global Reporting Initiative (GRI)We follow the requirements of the Global Reporting Initiative (GRI) – namely guideline G3.1 – when it comes to measuring and reporting on our progress. These represent transpar-ency and credibility and ensure the use of consistent termi-nology. In terms of structure and content, the sustainability report follows GRI Level C to the extent that is possible and reasonable, based on the present data situation, and in-cludes 19 performance indicators. The Uzwil, Braunschweig, Johannesburg, Bangalore, and Wuxi branches followed the uniform GRI requirements in their reports for the 2014 report-ing year and are included in this report. From 2015 onward, all nine Bühler sites will submit reports according to the GRI, which will allow us to perform an extensive review of the suc-cess of our sustainability objectives and compare our branches with one another and with our peers.

Sustainability at Bühler.

Achievements.

Our apprentice training was awarded with the Leornardo Prize and visit of American Second Lady.

The African Milling School was established, two projects were successfully conducted with Partners in Food Solu-tions in Africa.

The employee program Viva Health Management was launched.

Proudly advancing along the path of our sustainability commitment.Two years after the announcement of our sustainability commit-ment, we can look with joy and pride at the progress that we have achieved so far. To date, we have developed innovations that have helped saving precious environmental resources like water, energy, and raw materials. We have developed inspiring educational programs that will be adopted across continents. We have further enlarged the scope of our environmental foot-print reduction worldwide. These achievements have strength-ened our belief that corporate sustainability is in the DNA of our business culture and operations. We know that this progress is laudable, but we are also aware that we still have a long way to go to meet society’s needs and our ambitious targets. Our commitment to proceed on this journey is indefatigable.

41Sustainability Report.

Ecological sustainability.

We enhance sustainable value chains.

Economical sustainability.

We ensure independent profitable growth.

Commitments.

2.1 We reduce the environmental footprint of our sites.

2.2 We set the standards in safe and healthy foods and resource-efficient solutions.

2.3 We provide solutions for reducing food losses and improving food security.

Commitments.

3.1 We deliver long-term profitability.

3.2 We ensure modern corporate governance.

3.3 We contribute to the devel-opment of local economies.

Achievements.

The Global Reporting Initiative was extended to 11 factories worldwide.

Breakthrough solutions for mycotoxin reduction in grains, hygienic food drying and instant maize meals were intro-duced.

Focus was set on the techno-logy development program for sustainable mobility and energy-efficient buildings.

Achievements.

The local supply chain was further built up.

The diversification of product portfolio across markets progressed.

Regional Compliance Officers and reporting process were established in all regions.


Partners in Food Solutions (PFS) is a non-profit or-ganization which supports African food producers and processors with technical and economic ex-pertise provided by volunteer employees from the companies involved. The organization was founded in 2009 by the American food producer General Mills.

The aim of PFS is for employees of the partner firms to share their knowledge with employees of food producers and mill operators in Africa. Employees from all areas of the firms invest their knowledge to help small businesses in Africa make the right busi-ness decisions, optimize the capacity and cost ef-fectiveness of their plant, and improve the quality of their products, so that they can produce more af-fordable and nutritious food for the local people.

To date, PFS has worked on more than 150 projects with over 50 firms in Kenya, Ethiopia, Zambia, Ma-lawi, and Tanzania, and has provided training and specialist knowledge to a further 250 companies. Since it was founded, almost 500 employees from General Mills, Cargill, and Royal DSM have amassed a total of 40,000 hours of voluntary work. PFS is aiming to extend the partnership to ten com-panies by 2018 and hopes to be working with 500 small businesses in Africa by then.


Stefan Lutz represents Bühler in the Partners in Food Solutions organization, which supports East African food producers. The aim is to share knowledge in order to help the companies produce more affordable and nutritious food for the local population.

Around a third of food harvested around the world, or 1.3 billion tons, never reaches the plate: Valuable food is lost due to a lack of expertise in agricultural production, incorrect pro-cessing, a lack of transport or storage infrastructure, out-dated technologies, or – primarily in industrialized countries – through wastage. This loss is particularly serious in southern (Sub-Saharan) Africa, where almost a quarter of the popula-tion is still suffering from starvation or malnutrition even today (source: FAO Report 2014).

As a member of Partners in Food Solutions (PFS), Bühler supports African food producers by sharing its specialist knowledge. Stefan Lutz represents the company in Kenya, where he looks after the PFS projects in his role as a food technologist: “I see lots of people with good ideas. Unfortu-nately they don’t have the things they need to put these ideas into practice.” Through the partnership with PFS, peo-ple can be trained and projects can be realized. “It’s great to visit the participants again later and find that we can have technical discussions on a different level.”

Flour mills in Tanzania.Lutz helps local small businesses to create a business plan, gain certifications, and develop products, and also provides on-site training. One of the projects he is involved in sup-ports rice millers in Morogoro (Tanzania) and is run by PFS in conjunction with the local university. Stefan Lutz visited the rice millers in the village of Ifakara, where there are 80 very basic rice mills. “Almost every other house there is a rice mill. The millers work on contract.” The on-site training has shown the local millers what they need to do to keep up with im-ported rice in terms of both quality and yield.

New rice drying plant in Senegal.Another PFS project in which Bühler is involved is the cre-ation of a rice drying plant in Senegal. Bühler already had experience with similar projects in Korea and Thailand, which could be transferred to Senegal because of the similar cli-mate. The rice plant in Senegal is a good example of sustain-able involvement: Experiences from other countries can be adapted to the local conditions. The use of simple technol-ogy means that the plant can be built by local workers and added value is created at the site itself, where the expertise required for operation and maintenance can also be built up to ensure that there are no high follow-up costs.

Social commitment pays off.By working with these projects, Stefan Lutz hopes to pass on what he learned in his training to people who have not had the same opportunities. “It’s great to see the projects working and people enjoying success.” The commitment shown by PFS and Bühler makes a lasting contribution to the welfare of the African population in various respects: More nutritious food promotes health, more efficient production processes protect the environment, and sharing knowledge can spark a positive development trend from which Bühler itself could also benefit in the long term. The focus, however, is very much on the company’s desire to have a positive impact on other people.

Expertise for African Food Producers.


Benefiting employees, customers, partners, and society.

Bühler owes its success to its well-trained and motivated employees. It is based on a shared corporate culture which promotes personal initiative and responsibility. The company is committed to employee training and continuing education at all levels. As a global corporation, Bühler considers the cul-tural variety of its employees as one of its greatest strengths. This is reflected in the fact that, whenever possible, manage-ment-level positions are occupied by local candidates, a target with a current success rate of around 90 %. All employ-ees have equal rights, regardless of their nationality, religion, upbringing, or gender. With our social sustainability promise, we want to exert a positive influence and continuously im-prove the impact of our activities on all stakeholders such as employees, customers, suppliers, partners, and society at large.

Commitment 1.1

We pursue our corporate culture of continuous learning.Bühler is convinced that long-term corporate success can only be achieved if you have the right people with the right skills in the right places, and pledges to support and encour-age employees at all levels, thereby developing the neces-sary skills within the company itself. The extent to which this commitment to employee training is ingrained in the com-pany’s philosophy is shown by Bühler’s 100 years of experi-ence in vocational education, and the fact that it is seen as a pioneer in this field, whose expertise is highly sought-after by foreign decision makers in politics and economics. On September 15, 2014, we welcomed the American Second Lady, Dr. Jill Biden, to Uzwil. Dr. Biden wanted to learn more about the dual system of training and education in Switzer-land and, in particular, how Bühler shapes vocational educa-tion for technical professions.

Leonardo Award for innovative apprentice training.In 2014, Bühler was honored to receive the distinguished Leonardo Award for innovative apprentice training at a cer-emony in Bonn. Bühler offers its apprentices attractive placements abroad, which open up opportunities for the young people to work in a foreign company later on, as well as promoting intercultural exchanges. The placements last between two and four months, and the idea is that the ap-prentices can continue their vocational studies at the same time. With “Class Unlimited”, Bühler has developed an in-novative didactic concept for precisely this purpose. While living in China, the USA, or elsewhere, the apprentices can participate in the lessons in such a realistic way that some

only remember they are not physically present when it gets to the coffee break. The appeal and success of our appren-tice training are clear from the fact that Bühler never has trouble filling the 70 – 80 places available each year with qual-ified young people. Quite the opposite, in fact: The best can-didates are selected every year from a pool of 400 to 500 candidates. In 2014, three quarters of the apprentices (52 out of 71) were kept on at the company once they had com-pleted their vocational training, a testament to the quality of our selection procedure and our attractiveness as an em-ployer.

Two days in training.The Bühler Learning Center, established in 2012, is the um-brella under which all training programs reside. Centered in the Corporate Learning Center in Uzwil, it is divided into five local centers in Europe, North America, South America, Asia, and South Asia. Its focus is on high-quality training programs along Bühler’s core processes. With continuous learning at all levels, we ensure that employees’ skills are attuned to the requirements of the business.

In order to ensure the sustainability of the programs offered by the Learning Center, a qualitative and quantitative control-ling system was set up in 2013 to monitor continuing educa-tion. Analyses revealed that 868 global and regional training programs were held in 2013, with a total of 7,165 partici-pants. This resulted in 13,351 training days for the entire year, or 1.25 days’ training for each full-time employee. From 2015, our controlling system will also take into account external training and continuing education – this prerequisite will check whether we reach our target which states that each employee should invest at least two days a year in continu-ing education.

Careful development of leadership skills.International cooperation requires a shared understanding of values, targets, and performance. With this in mind, we car-ried out the Employee Performance Management (EPM) pro-cess, which was established in 2011, for the fourth time in 2014. The EPM process also serves as a basis for the sub-sequent Talent Management and Succession Planning pro-cesses.

The Bühler Lead Program enables us to fill our top manage-ment and group expert positions (1 %) with internal employ-ees. Every year, 8 –10 “High Potentials” undergo an internal assessment in order to determine their potential. An indi-vidual development plan is then drawn up for every candi-date accepted into the Bühler Lead Program.

Social Sustainability.


Bühler Innovation Challenge.The fourth Bühler Innovation Challenge took place in 2014 under the motto “We create the future together”. 9,500 em-ployees registered on the website in order to follow or take part in the internal innovation competition which takes place every two years. From over 220 ideas submitted by Bühler employees and teams from all over the world, a judging pan-el selected four promising projects which were then present-ed to the Executive Board (EB) by the well-prepared, highly motivated entrants.

Commitment 1.2

We foster our corporate culture of openness and partnership.We cannot master the global challenges that we face alone. With this in mind, Bühler plans to establish more partner-ships and collaborations with all stakeholders in the coming years, both in the private and public sector: Innovation part-nerships with customers, suppliers, universities, govern-ments, or non-profit organizations, coupled with an open innovation culture, combine our internal expertise with exter-nal know-how. This enables us to strengthen the impact of our social and commercial commitment along the entire value chain.

Bühler is a “Partner in Food Solutions”.As a member of Partners in Food Solutions (PFS), Bühler supports African food producers by sharing its specialist knowledge. The non-profit organization was founded in 2009 by the American food producer General Mills, and en-ables employees from the companies involved, working on a voluntary basis, to help small businesses in Africa make the right business decisions, optimize the capacity and cost ef-fectiveness of their plant, and improve the quality of their products, so that they can produce more affordable and nu-tritious food for the local people. In 2014, two Bühler employ-ees completed voluntary placements with PFS and Bühler is the only partner company to provide a food technologist who looks after the PFS projects from Kenya.

What we are doing What we are aiming at 2014 2013

We develop our employees

80 % of all employees undergo the EPM process every year

The number of training days per full-time employee will be two days worldwide by 2015

The training costs per local Learning Center will be at least 1 % of total staff costs by 2015

Talent Management Worldwide, we have at least 5 % High Potentials with development plans

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

Bühler Lead and Expert Program

Every year, four candidates qualify for the Management and one person for the Expert Program in the Bühler Lead

Apprentices Three quarters of all apprentices who successfully pass their final apprenticeship examinations continue their careers at Bühler

In-house Innovation Challenge competition

Institutionalization and inclusion of more employees

Courses for customers and suppliers

By the first half-year of 2014, centralization to ensure efficiency and quality

achieved planned not yet achieved


Research and development in the form of partnership projects (including external alliances)

20 % of R & D spending

Supplier Innovation Challenge initiative with suppliers

10 partner projects by 2014

Innovation partnerships CHF 200 million new business through partnerships


46

2005 2006 2007 2008 2009 2010 2011 2012 2013 201471

>4,00012

34

5

717980767376

70

8693

103




3 Europe (47 %)

4 Middle East and Africa (5 %)

5 Asia (37 %)

Partnerships with universities and research institutes.

Employees who have taken part in the Innovation Challenge.

Employees by region.

Successfully completed apprenticeships.

Injuries and illnesses per 100 employees.

Bühler ManufacturingIndustry

3.44.2

2014

>20


Commitment 1.3

We strengthen our corporate culture of health and safety.

“Bühler Essentials” – central corporate principles.The Bühler Essentials define how we behave and interact with one another inside and outside the company. These conduct guidelines are based on our five core corporate principles: trust, recognition, respect, involvement, and pas-sion. These guidelines are a consequence of several global employee surveys.

Occupational health and safety protection.The health and safety of our employees and their protection against physical and mental harm are a core concern of Bühler. Bühler strives to offer all employees a safe and healthy work environment. In addition, we also ensure the safety of our visitors while they are on our premises. For this purpose, Bühler has compiled the most important safety information and rules from around the world in a short video, based on our mission: no accidents at Bühler and no accidents in Bühler customer plants. The safety course at the Bühler site in Uzwil has also been extended and is now also available to external firms. In South Africa, video training programs and improvements to assessments have reduced the time lost between an incident occurring and the right measures being taken by an average of 20 %.

Companywide health management system.In 2014, around 300 employees took part in a course or in-formation day as part of the company-wide Viva Health Man-agement system, which was introduced for all divisions in Switzerland in 2013. The global rollout is scheduled for com-pletion by 2017. The concept for a healthy, well-balanced work environment was developed with experts and is based on the principles of improving health, reducing absences, and ensuring that people are able to work. This relies on employees’ personal responsibility and the cultivation of an appropriate health culture. In the context of Bühler’s concept for specialist personnel, Viva should also help to maintain employees’ performance levels as they get older.


Prevention of accidents throughout the life cycles of our products

Zero accidents at our locations and at the locations of our customers

Research and devel-opment projects take operator safety into account

In 100 % of all projects

Company-wide Viva Health Management program

Global rollout by 2017



657 million tons of feed are fed to livestock every year, representing around a third of global grain production. The Kubex™ T pellet mill from Bühler is an innovative machine which, on average, uses 30 % less energy per ton of concentrated feed pel-lets produced, compared to conventional pellet mills. Admittedly, the energy costs only make up 10 % of the total manufacturing costs. However, un-like grain prices, which are subject to the daily ups and downs of the raw materials markets, this is an opportunity for calculable potential savings in an industry which has to get by on extremely low mar-gins. The Kubex™ T won the prize for innovation at “Victam 2011”, the leading trade fair in the industry, and immediately became a highly sought-after product on an international scale. Since then, the machine has been sold on all continents.


The Kubex™ T pellet mill was developed in collaboration with customers. This meant additional work at the time, but it was worth it in the end: The machine, which uses 30 % less energy, has been awarded a prize for innovation and immediately became a highly soughtafter product around the world.

Developed with customers.The Kubex™ T was developed in collaboration with four pilot customers. As Bühler product manager Stefan Hoh says, this meant that more coordination was required in the devel-opment phase, but it has since proved to be one of the prod-uct’s success factors. This procedure could, in fact, become standard practice in this industry in the future. “When we presented the pellet mill – which has much lower friction losses thanks to the direct drive – at Victam, there was already a machine in operation at a customer’s premises nearby. A shuttle service was provided so that interested trade fair visitors could go and see the pellet mill in operation on site.” In a fairly conservative market, where innovations tend to be greeted with a certain amount of skepticism at first, good references are very important. No one wants to risk investing in a new system that has not yet proven itself in a production environment. An investment in a new pellet mill with a service life of 20 to 30 years has to pay itself off quickly: “The extra expense for the Kubex™ T will be amor-tized in around three years for a medium-sized feed plant with annual production of 100,000 tons.”

Demand for animal products is growing.Economic sustainability is crucial for customers. Ecological sustainability is regarded as a welcome side effect – although it is not insignificant, given that consumption of animal prod-ucts is rising all over the world as a consequence of popula-tion growth and increasing prosperity. Average meat con-sumption per head has risen in the last 50 years from 24 kg (1964) to 41 kg (2014). Although consumption has stagnated at a high level in industrialized countries, there are high growth rates in the emerging markets. However, the con-sumption of animal products causes major problems for the environment: Producing a kilogram of beef requires around 15,000 liters of water. The global cattle population is respon-sible for 14.5 % of all greenhouse gases, or 7.1 gigatons of CO² equivalent. Feed crops and feed production are respon-sible for 45 % and 39 % of these emissions respectively.

In light of these figures, each link in the value chain for animal products, from the grower to the consumer, has a duty to help improve the ecobalance. In this context, the Kubex™ T pellet mill is a further example of the fact that ecological and economic sustainability are not mutually exclusive. Quite the contrary: An ecological innovation will only succeed on the market if it proves to be economically sustainable too – and it is only then that its ecological benefits will be revealed to their full extent.

Collaborating with Customers in the Development Phase Paid Off.


Commitment 2.1

We reduce the environmental footprint of our locations.

Measurement and sustainable reduction of the environmental footprint.In order to achieve our environmental sustainability goals, we have to measure and reduce not only the environmental foot-print of our own locations, but also that of our products along their value chains with the customer. To this end, the annual CO² footprint of our North American location, Bühler-Prince Inc., in Holland, Michigan, corresponds to the annual CO² emissions of approximately 330 American households or the equivalent of less than 3 % of New York’s daily CO² emissions. We have also managed to reduce CO² emissions per hour of production by a remarkable 21 % over the last four years. Over the coming years, the aim is to measure the environmental footprint of other Bühler locations around the world and to draw up an environmental record for all Bühler products over their entire life cycle.

Continuously improving environmental performance.The international environment management standard ISO 14001 defines globally recognized requirements for environ-ment management systems. The Bühler Group was success-fully recertified as compliant with ISO 9001/14001 by SGS in autumn 2014, showing its commitment to a continuous im-provement process as a means to achieving its environmen-tal performance objectives.

Boosting energy efficiency.In the last five years, Bühler has managed to achieve a sub-stantial reduction of 8 % in its energy consumption per hour of production at its global locations. By implementing suit-able measures, we are also aiming to significantly lower our energy consumption and therefore also our CO² emissions at the various Bühler locations.

Saving energy during transportation.Bühler has set itself the goal of reducing CO² emissions re-sulting from transportation and from employees’ travel activi-ties by 5 % in each case. This goal has been more than met, not least thanks to the increased use of video conferencing.

Sustainable procurement.In its attempts to further reduce its environmental footprint, Bühler also involves its suppliers’ know-how. By the year 2020, they must comply with our global quality, safety, and environmental standards on the basis of the standards ISO 9001/14001, ISO 50001 and OHSAS 18001.

Ecological Sustainability.

We contribute to sustainable value chains.

Our ecological sustainability promise is not limited to our own locations. A substantial proportion of the environmental impact is down to the energy consumed by our machines when they are in operation at our customers’ sites. We have therefore set ourselves the goal of reducing not only the en-vironmental footprint of our own locations, but also that of our customers along their entire value chains. By setting the standard for resource-efficient products, we can make a sig-nificant contribution to the creation of sustainable value chains. Reducing the environmental footprint involves the use of new technologies which help to conserve resources while producing healthy, nutritious food, lowering costs, and improving productivity.


Reducing water consumption.Though we do not consume large volumes of water in our own production facilities, we plan to reduce annual water consump-tion by 5 % and separate it from our growth in sales revenues. In the last five years, Bühler has already managed to reduce its consumption of water per production hour by around 3 %.

Commitment 2.2

We set the standards for safe and healthy foods and for resource- efficient solutions.

Improving food safety is one of the main aims of our research and development activities. Given the world’s growing popula-tion, it is all the more crucial to combine food safety with effi-ciency and loss minimization along the entire value chain. Changing climate conditions have led to increased occurrences of microorganism infestations (mold, bacteria) in grain. As a major market player along the entire food value chain, Bühler shares responsibility for producing safe, nutritious, healthy food. In order to promote the relevant expertise throughout the com-pany, the subject of food safety once again plays a key role in employees’ training and continuing education.

Safe food production.Three types of risks can be reduced during food production with a hygienic design: 1. Biological risks caused by microorganism infestations

in food (bacteria, mold)2. Chemical dangers caused by lubricants or chemical

substances which get into the food during processing3. Physical dangers caused by foreign particles, e.g.,

glass or wood splinters

Bühler solutions comprise hygienic machine designs and plants, technologies for cleaning and decontaminating raw materials, intelligent automation solutions for safe food pro-cessing, and reliable traceability along the value chain, plus services that ensure the safety and efficiency of the processes.

Quantum leap in hygienic design.In 2014, Bühler made a quantum leap forward in terms of hy-gienic design with the newly designed Cerex™ dryer for the production of coated ready-to-eat breakfast cereals. As the cereals are no longer heated before eating, and as sugar is left behind in the machine, the hygiene and cleaning requirements in this area are particularly high. Cerex™ reduces cleaning time by 70 %, lowers the consumption of water and detergents, and reduces the risk of bacterial or chemical contamination in the cereals. In addition to the hygienic design, the clever, lightweight

construction of the Cerex™ reduces the total weight of the dryer by a third. What’s more, the new design of the Cerex™ panels prevents heat loss and means that 10 % less energy is required during operation. This in turn results in sustainable, tangible savings in energy costs for Bühler customers.

Reducing mycotoxins in grain.Changing climate conditions such as longer, delayed periods of rain followed by extreme dryness have led to a sharp increase in mold infestations in cereal grains. The resulting heat-resistant mycotoxins, particularly the highly toxic aflatoxin, pose a danger to the health of both humans and animals. The targeted re-moval of individual infested grains at an early stage is important, as the toxins will not yet have spread further at this point.

In conjunction with the University of Bari (Italy), Bühler has de-veloped a new process for reducing aflatoxin in maize (corn). The combination of mechanical cleaning and optical sorting, based on our SORTEX technology, makes it possible to maxi-mize quality and safety.

Affordable, healthy food.Bühler processes aim to produce food that is safe, affordable, and healthy in equal measures. In cooperation with various partners, we are researching solutions that will help to eradicate malnutrition – for example, by tapping new protein sources (e.g., algae), by enhancing food with important nutrients and active ingredients (e.g., micronutrients, vitamins), or by sharing specialist knowledge to support the production of safe, healthy food (as a member of Partners for Food Solutions).


Reduction of the energy consumption of plants and products at customers’ sites per ton of end product

5 % per year

Reduction of the energy consumption at Bühler locations relative to productive hours

5 % per year

Carbon reduction in shipping 5 % per year

Carbon reduction in employee travel

5 % per year

Reduction of water consumption

5 % per year

All components externally procured from suppliers that have been prequalified according to the global quality, safety, environmental, and ethic standards of Bühler

For all suppliers by 2020



In conjunction with TNO Netherlands, Bühler is researching solutions to improve the utilization of new protein sources from plants, particularly algae. The challenge is to develop a way of carefully releasing the proteins stored inside the algae cells.

Utilizing the potential of pulses.Pulses could be a key way of improving the global food situ-ation: They are rich in proteins and require little water and no nitrogen fertilizer. They constitute a basic food in India and the Middle East, while the rest of the world has some catch-ing up to do.

The Global Pulse Partnership Task Force brings together rep-resentatives of the global food value chain around one table. In 2014, Pulse Canada, Cargill, Nestle, and General Mills developed a strategy for improving the global utilization of pulses, with the process chaired by Bühler. It is important to find solutions for the different taste preferences of different cultures: Particularly in the West, the taste of pulses is met with limited enthusiasm. Possible solutions involve including pulses in pasta and baked goods, so that they contain the healthy properties without tasting of lentils, beans, or chick-peas. As the market leader in India for the processing of pulses, Bühler can bring a lot of experience to the table.

Improving energy efficiency.

Focus on consumers.The consumer is at the center of our efforts to improve energy efficiency: By the year 2020, we aim to substantially reduce energy consumption per ton of end product made by our customers. For this purpose, each business unit has defined a specific energy indicator for one of its core processes. This serves as a basis for achieving the goal of 25 % higher energy efficiency by 2020. Such solutions increase the profitability of our customers’ operations by cutting their operating costs while reducing their environmental footprint. Lower energy consumption means lower costs and reduced resource con-sumption, and can also result in time savings and increased convenience for the end consumer.

Instant maize (corn) for urban Africa.Bühler developed its Instant Maize Flour™ product specifi-cally for urban Africa. Maize (corn) is traditionally prepared on a wood stove in Africa and requires cooking time of at least 30 minutes – an inefficient and time-consuming pro-cess which requires lots of resources. Thanks to a thermal pretreatment, the instant maize (corn) cooks more quickly, reducing the cooking time considerably to just five minutes.

Energyoptimized pasta drying.Ecothermatic™ is a new method developed by Bühler for drying pasta, which reduces thermal energy consumption by 40 %, cooling energy consumption by 20 %, and electrical energy consumption by 10 %. The new method also reduces the amount of cracks in the pasta. The energy savings and improvements in quality have resulted in a 1 % rise in profits for the customer since the machine was introduced in Ger-many in 2013. Bühler has set itself the goal of further devel-oping the dryer, which was initially designed for smaller capacities (1.2 tons/h) and long-goods pasta (spaghetti), so that the method can also be used for larger capacities and short-goods pasta (e.g., penne).

Another product ready for the market was a new technology for processing large quantities of rice more efficiently. The complex procedure which once required two machines per pass can now be carried out on a single machine. This reduces energy consumption by 20 %, as well as lowering space re-quirements. This can lead to significant savings, particularly when constructing new plants.


Research and development projects take account of food safety

100 % of all projects by 2015

Number of employees in key positions who have received training in food safety

500 employees by 2015

Research and development projects in the area of foods focus on improved nutrition

30 % of all projects by 2015

Solutions for reducing energy consumption at our customers’ sites

25 % higher energy efficiency per ton of end product by 2020

New products undergo Life Cycle Assessment (LCA)

50 % of all new products by 2020


53

4 min

70%


Re-certification

Successful re-certification for the quality and environmental standards ISO 9001/14001.

Cooking time for Instant Maize Flour™.

The new Cerex™ dryer has a quicker cleaning time.

Energy/ Water consumption.

Reduction of energy consumption per production hour [MJ/h] between 2010 and 2014.

2010 – 2014

Reduction of water consumption per production hour [m³/h] between 2010 and 2014.

2010 – 2014

– 8 %

– 2.7 %


Batteries for electric vehicles.Increasing urbanization and the challenges of traffic conges-tion and inner-city air pollution that comes along with it de-mand the use of electrical drive solutions for both private travel and public transport, such as electric buses. Signifi-cant improvements must be made to battery costs and qual-ity for electric and hybrid vehicles and other fuel-saving mea-sures, such as automatic start-stop systems, to be used on a wider scale. It is not just relatively expensive European and American electric vehicles that are currently in the fore-ground, but also cost-effective solutions such as e-scooters and the introduction of electric buses in large towns and cities in China or India. The Grinding & Dispersion business area has set an objective to significantly reduce Li-ion battery production costs and is working in close cooperation with the biggest battery manufacturer in China to do so.

Coatings for facade glass.Glass is becoming increasingly important as a construction and facade material, but it does have the disadvantage of poor insulation performance. Bühler Leybold Optics is devel-oping efficient production methods for coating architectural glass and improving its insulating effect. A typical glass coat-ing production plant installed on site produces 4 million m² of glass a year, which results in an annual, repeated CO² emis-sions saving of 150,000 t. While the glass coating rate in Europe is already fairly high, the rate in China is just 5 %. In conjunction with solar energy, improving the insulating prop-erties of glass is sure to bring about a significant drop in energy costs, especially since a quarter of the energy con-sumed globally is used for heating or cooling buildings.

Life Cycle Assessment (LCA) of all products.The majority of the environmental impact is down to the energy consumed by our machines when they are in operation at our customers’ sites. The remaining product cycle phases – from the raw material to recycling – have much less impact. In 2014, Bühler developed a study in conjunction with Lough-borough University for an ecological Life Cycle Assessment of all products by 2020. By this time, it should be possible to organize all machines into different energy classes over their entire life cycle. When developing a standard method, it is important to remember that it is not generally the energy efficiency of the individual machine that counts for our cus-tomers, but that of the entire plant and process.

Optimized manufacturing procedures for energyefficient end products.The Advanced Materials division develops and sells manu-facturing systems that are capable of transforming raw materials, such as metals or chemical base materials, into more valuable intermediate products, such as parts for the automotive industry, suspensions and pastes, and function-al coats for a multitude of applications. These intermediate products facilitate the production and energy-efficient operation of top-quality end products: When producing energy-efficient vehicles, or when coating architecture glass for an insulated building envelope, Bühler helps to improve the energy efficiency of the end products through the pro-duction solutions it supplies. By developing more cost-effec-tive technologies, Bühler ensures that these energy-efficient products can also spread to growing emerging markets such as China or India.

Lightweight vehicle components mean greater energy efficiency.The development of energy-efficient vehicle fleets is being given an additional push by the EU requirement which states that the average CO² emissions of the vehicle fleet (new vehi-cles) of any one manufacturer must not exceed 95 g of CO² per kilometer as of 2020. The CO² emissions of a vehicle can be significantly reduced by reducing its weight. The constant improvement of vehicle weight is one of the ongoing tasks of automotive manufacturers and all components are tested for their reduction potential in each new vehicle generation. Making lots of little improvements can reduce the weight of a medium-sized vehicle by up to 100 kg by using lighter materials (aluminum) and by replacing several individual die casting parts with a single integrated one. For Bühler’s Die Casting business area, the many years of working with mar-ket and technology leaders really pay off when it comes to these improvements.


Commitment 2.3

We provide solutions for reducing food losses along the value chain.

Fighting against losses and for the availability of foods.Two thirds of Bühler’s business is closely related to the food and feed industries. According to estimates of the FAO, 30 % of the total harvest of agricultural commodities worldwide is lost somewhere between farmers and consumers. In order to correct this situation, Bühler develops solutions for storing, cleaning, sizing, and sorting commodities as well as for other process operations, including alternative processes for non-edible by-products. Because the greatest potential for opti-mizing resource efficiency and reducing losses is located upstream and downstream of the areas over which we have direct control, Bühler is teaming up with partners to take up this challenge.

Fewer fungal infestations, fewer losses.The newly developed SORTEX™ grain sorting machine checks 250,000 cereal grains per minute – several tons per hour – by means of a camera. Grains which do not meet the strict quality requirements are identified using algorithms and removed individually by a stream of air. This process, which was originally developed for carrying out final optical inspec-tions on white rice, is used to eliminate mycotoxins from the grain at an early stage. The innovative process is a major step toward improving food safety and preventing losses in processing, as batches of grains which exceed the myco-toxin threshold value have to be completely incinerated or turned into biodiesel.

The new Bühler maize dryer also helps to reduce losses due to fungal infestations. Thanks to improved moisture control, the maize (corn) is dried more homogeneously and the resid-ual moisture is measured precisely at the end of each drying process.

Water scarcity.Availability and efficient utilization of water have become critical factors in the debate on secure supplies of this vital commodity. As most Bühler processes are based on dry pro-cesses, they are by their very nature not water-intensive. Moreover, Bühler is making efforts to substitute water-inten-sive production processes with our low-water-usage pro-cess technologies such as Prime Masa™, Bühler’s new in-novative process for making tortilla flour. It consumes six times less water than traditional production processes to make one metric ton of corn flour. Furthermore, it enables solid and liquid wastes to be reduced to zero, in contrast to the benchmark figure of about 500 kg per metric ton of corn flour produced.


Solutions for reducing post-harvest losses

Significant reduction by 2020 thanks to Bühler solutions



While machines and plants are in productive opera-tion, there is often considerable potential for increas-ing productivity and reducing costs. In order to iden-tify this potential and exploit it in a targeted manner, Bühler offers its customers the SoliX optimization service – an advisory mandate to optimize the per-formance of machines and plants in the grain pro-cessing industry over their entire lifetime. With the experience and specialist knowledge encapsulated in SoliX, existing mills can be upgraded to state-of-the-art plants.


With the SoliX advisory mandate, Bühler is using its experience and specialist knowledge in the field of grain milling to boost productivity in existing plants.

Flour mills remain in operation for a long time: “Two thirds of all plants worldwide are over 10 years old and require exten-sive overhauling with regard to quality, efficiency, hygiene, and safety considerations.” This is how Walter Eugster, head of Milling Technology at Bühler, explains the increasing demand for help with optimizing performance in existing plants. Changes to general conditions – for example, a rise in energy prices or the cost of raw materials, increased com-petitive pressure, or technological advances – can affect the profitability of the plants, which usually operate round the clock.

Less energy, more flour.Take SASKO, for example: The South African company mod-ernized its wheat mills in 2006, but the limited capacity of the outdated South African power grid then meant that they suf-fered from repeated power cuts while, at the same time, electricity prices soared. “The energy costs for the mills have doubled in the last five years,” says Jabus Wessels, opera-tions manager at SASKO, adding that this was having a growing impact on the cost effectiveness of the plant.

For various reasons, it was not possible to replace the plant: partly due to the costs, but also because the machines oper-ate round the clock in the highly competitive South African market, and can only be interrupted for brief periods for rou-tine maintenance work.

Bühler Consulting was tasked with examining the company’s operating efficiency. A team of technologists, energy experts, and engineers drew up a SoliX master plan with the aim of improving the plant’s performance and reducing energy costs. Mission accomplished: “Plant capacity at the SASKO mill increased by 5 % with the same extraction rate, and en-ergy consumption fell by 5.8 %,” reports senior milling tech-nologist and project manager David Austin. Jabus Wessels was equally happy with the result: “We were very impressed by the fact that it was possible to boost performance as promised without requiring huge investments and prolonged stoppages. The only new components we had to install were variable speed drives and pressure transducers. The rest was down to extensive specialist knowledge in the field of grain milling.”

Committed to sustainability.“Customers expect sustainable solutions,” says Walter Eugster. This requires Bühler to commit to maintaining maximum plant performance in the long term, but also means that the opti-mization service has to produce substantial savings and optimize profit quickly: “The project investment should pay itself off in less than two years.” The advisory mandate is also the perfect way to really find out about customers’ needs. Successful projects ensure customer loyalty for the future.

Bühler’s high-quality consulting services are opening up a lucrative business area – information gained from customers at first hand can be applied to the company’s own product development. Not forgetting the environment and the com-pany’s employees, both of whom also benefit from improved efficiency. The step-by-step process with minimal downtimes involves the local staff, creating a platform for exchanging specialist knowledge and experience.

Extensive Specialist Knowledge Boosts Profits.


The preconditions for long-term success.Sustainable business success is a basic condition for Bühler to fulfill the environmental and social requirements that our organization is expected to meet. In this, we set our sights on long-term profitable growth and on maintaining our finan-cial independence status. It is important that all of our market regions benefit from the added value.

Commitment 3.1

We deliver long-term profitability.

On average across several years, Bühler aims at achieving an operating profit margin (EBIT) of 10 % plus organic reve-nue growth of 10 %. This enables us to generate the cash flow we need to invest in future innovations and acquisitions and to secure our financial independence. In 2014, we have not met these targets completely. However, Bühler’s invest-ment policy is based on a long-term perspective. It aims at deepening our knowledge of local markets, gaining ever-better insights into customer needs, and turning around a number of our market segments to condition them for the future. With this, we want to increase our market share on a sustainable and profitable basis. Every new product must generate tangible added value for our customers. Moreover, Bühler plans to increasingly support customers by providing products and services from a single source within the scope of its defined core competencies and along the entire value chain.

Minimizing risk by diversifying the product portfolio.To balance risks, Bühler operates in a wide variety of mar-kets and segments, a fact that is reflected in its business unit structure. Whereas some business units such as Grain Logistics or Aeroglide faced a difficult market environment, others such as Sortex & Rice; Chocolate, Cocoa & Coffee; or Die Casting benefited from the upswing in their markets.

Economic Sustainability.


10/10 model 10 % growth in sales revenues and 10 % operating profit margin (average across several years)

Financing of growth 100 % independent



Commitment 3.2

We ensure a modern corporate governance approach.

Regional Compliance Officers: Closer to the market.In 2014, Regional Compliance Officers were introduced in each of the eight Bühler regions to act as the first point of contact for compliance issues. Cases with special risks (blacklist, commission payments, etc.) still go straight to the head of Corporate Compliance & Integrity. Moving this re-sponsibility to the various regions has made processes much simpler and quicker, partly because there are no language barriers and because the Compliance Officers are familiar with the relevant local regulations. To ensure a common understanding of the processes and responsibilities, the Regional Compliance Officers met at a round-table event at the International Finance Conference (held in June 2014 in London), in conjunction with a training session on global compliance processes.

In connection with this regionalized approach to compliance, it is worth noting that almost all of the nominated Bühler em-ployees had completed the web-based training featuring the ABC rules by the end of 2014, and are therefore familiar with the global compliance rules.

In addition, first-level support was set up in the regions in 2014 to support applicants with the process of consulting agents. In this case too, the aim was to simplify and speed up the existing procedure. Equipped with the necessary skills, the regions are now responsible for correct procedures when consulting agents. Corporate Compliance will continue to subject cases with particular risks to a central check.

Compliance reporting: Learning from previous incidents.What do you do with a forged check? How can you prevent attacks from hackers? A new compliance reporting system was introduced in 2014 at the behest of the Audit Committee (AC). The Audit Committee will now be informed of new, ongoing, and concluded compliance cases on a quarterly basis and can draw the necessary lessons and measures from this information. The plan for 2015 is to optimize the implementa-tion of measures to ensure that lessons are learned and mea-sures are implemented throughout the entire organization.


Online training program to fight corruption and bribery

100 % of all employees in the sales, purchasing, and management functions have attended the online training pro-gram against corruption and bribery

Periodic internal audits on corruption prevention

In 2014, 10 companies were audited

Corruption risk assessments The corruption risk of all business units is annually assessed

Introduction of a regional compliance organization

Appointment of regional Compliance Officers in all eight regions (China, South East Asia, South Asia, East Asia, Middle East & Africa, Europe, North America, South America)



Compliance questions solved worldwide.*

Applicants for compliance cases receive first level support in the regions.

Since 2014, there has been a Compliance Officer in each Bühler region.

Order intake ( in CHF m)

2012 2013 2014

2,5822,3632,345

EBIT ( in CHF m)

2012 2013 2014

145139

168

Turnover ( in CHF m)

2012 2013 2014

2,3322,3222,409

Growth and profit.

Complete

First Level Support25

* Registered in 2014 for the first time.



Local recruitment of employees and management staff

90 % of our management staff are locally recruited


Commitment 3.3

We contribute to local economies.

Regional orientation for business policies.True to its motto “In the markets, for the markets”, Bühler attaches great importance to having firm local roots. For one thing, this shortens the supply chain. For another, fast and effective adaptation of our products to suit local preferences is facilitated by product development that is increasingly car-ried out in the various market regions. Importantly, this local-ization also applies to our management staff. Today, Bühler fills about 90 % of all positions at the senior management level with employees from the respective regions. More and more employee training is also taking place in the regions, either through Bühler seeking partnerships with local univer-sities or training centers, or by introducing well-tested con-cepts such as internal apprentice training at other sites. With this regionally oriented business policy, Bühler is also making a contribution to the development of local economies.


63

Grain LogisticsMarcel Scherrer

CEO GroupCalvin Grieder

Business Areas

Executive Board

Board of Directors

Regions

North AmericaRené Steiner

South AmericaEdwin Boller

EuropeAnders Kristensen

Middle East & AfricaAndreas Flückiger

Calvin Grieder (Chairman)Peter Quadri (Vice-Chairman)Dr. Konrad HummlerJosef M. MüllerRuth Metzler-ArnoldKarin BühlerLinda YangFrank N.J. Braeken

Sortex & RiceHamid Kefayati

CFO GroupAndreas R. Herzog

Consumer FoodsSerge Entleitner

CEO Grains & FoodStefan Scheiber

Grinding & DispersionCornel Mendler

CEO Advanced MaterialsSamuel Schär

Urs Bühler Innovation FundUrs Bühler (Chairman)

Value NutritionMarcel Natterer

Asia PacificDieter Voegtli

Die CastingJonathan Abbis

Corporate TechnologyIan Roberts*

Leybold OpticsAntonio Requena

Human ResourcesChristof Oswald*

Grain MillingJohannes Wick

Manufacturing & LogisticsHolger Feldhege

AsiaDieter Voegtli

East AsiaMax Klinger

South AsiaDipak Mane

Organization.

* Member of the extended Executive Board.

Organization.


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

Executive Board.

65

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

After obtaining a degree as a physics engineer from the Swiss Institute of Technology in Lausanne (EPFL) and accu mulating three years of experience with the consultancy McKinsey, he joined Bühler in 2002, where he took charge of the Nanotechnology busi-ness unit in 2005. From 2009 through 2013, he bore overall responsibility for the Grinding & Dispersion business unit into which he integrated the Nano-technology business unit. He has headed the Advanced Materials division since 2013.

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

He graduated in Business Studies and holds a PhD in Production Management. Holger Feldhege has extensive experience in Production, Engineering, and Logistics. For the past 13 years, he worked at ThyssenKrupp Elevator, spending more than seven years in Asia. Returning to Germany in 2010, Holger Feldhege took on the position of CEO Manu-facturing Central, Eastern, North-ern Europe and later Senior Vice-President Manufacturing Elevator for the worldwide group. 2014, Holger Feldhege joined Bühler as new Head of Manu-facturing & Logistics.

Christof Oswald*(1961, Swiss)Human Resources

After completing his apprentice-ship at Bühler, he continued his education in commerce and held various functions in devel-opment and customer projects for all divisions. In the course of this activity, he acquired broad management experience which he continuously deepened as Information Technology project manager and Controlling Unit manager. From 1993 through 2005, Christof Oswald was the commercial manager of the Manufacturing & Logistics division. He has headed Corpo rate Human Resources since 2006. Furthermore, he is chairman of the Raiffeisenbank Regio Uzwil and committee member of the Retirement Fund of Raiffeisen Switzerland.

Ian Roberts*(1970, British)Corporate Technology

He graduated in Chemical Engineering and obtained a PhD in Process Engineering from the University of Wales, Great Britain. From 1997 through 2009, he held various management positions at Nestlé, acting among other things as internal Management Consultant at Swiss head-quarters, 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.

Calvin Grieder(1955, Swiss)Chief Executive Officer

After having been raised in the U.S., he graduated in Process Engineering from the Swiss Federal Institute of Technology in Zurich (ETH). He then held various management positions in Swiss and German compa-nies (Georg Fischer, Bürkert, Mikron und SIG) in the fields of measurement and control, automation and engineering. In these functions, he was primar-ily in charge of successfully establishing and expanding international businesses. In 2001, Calvin Grieder changed from Swisscom to Bühler Group as CEO. As of February 2014, he is also chairman of the Board of Directors. He is member of the board of the companies Implenia AG and Givaudan SA.

Andreas R. Herzog(1957, Swiss)Corporate Finance & Communication

After graduating in Business Administration, he continued his studies in various postgrad-uate courses in marketing and finance management at business schools in France, Canada, and the U.S. He occu-pied management positions in finance, controlling, audit, and logistics at Ciba-Geigy and Swatch. Before joining Bühler, he was Vice-President Finance at Swarovski. During his pro-fessional career he has worked in Switzerland, Germany, Latin America, and West Africa. Andreas R. Herzog has been CFO of the Bühler Group since 2002. He is member of the board of the companies CCS Holding AG, Leicom AG and in the Advisory Board of Com-merzbank in Germany.

Dieter Voegtli(1958, Swiss)Head of Asia Pacific

He is a mechanical engineer (Swiss Federal Institute of Technology Zurich, ETH) by training and holds an MBA from INSEAD. He started his career in global power plant commis-sioning and as a software development manager for ABB. Following that, he worked for eight years as Technical Director of Roche China Ltd. Dieter Voegtli is President of Bühler Group China and Asia Pacific since 2009, having already served as President of Bühler China since 2004.

Stefan Scheiber(1965, Swiss)Chief Executive OfficerGrains & Food

He graduated in Business Administration from the Univer-sity of Applied Science in St. Gallen and later on contin-ued his education at the IMD Lausanne and other insti-tutes. From 1988, he worked for 15 years in various manage-ment positions abroad, includ -ing 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 assumed overall responsibility for Bühler Ger-many. From mid-2005, Stefan Scheiber headed the Sales & Services division as a member of the Executive Board. He has been in charge of the Food Processing division since 2009.

* Member of the extended Executive Board

Executive Board.


Board of Directors.

Calvin Grieder(1955, Swiss)Chairman

After having been raised in the U.S., he graduated in process engineering from the Swiss Federal Institute of Technology in Zurich (ETH). He then held various management positions in Swiss and German companies (Georg Fischer, Bürkert, Mikron, and SIG) in the fields of mea-surement and control, automation and engineering. In these func-tions, he was primarily in charge of successfully establishing and expanding international busi-nesses. In 2001, Calvin Grieder changed from Swisscom to Bühler Group as CEO. As of February 2014, he is also Chair-man of the Board of Directors. He is member of the board of the companies Implenia AG and Givaudan SA.

Ruth Metzler-Arnold(1964, Swiss)

Studied Legal Science at the University of Freiburg i.Ue. and is a Federally Certified Auditor. From 1990 through 1999, she was active for Pricewater-houseCoopers in St.Gallen. In addition, she was member of the Cantonal Government of Appenzell IR (Director of Fi-nance) during three years. From 1999 through 2003, she head-ed the Federal Department of Justice and Police as Swiss Federal Councilor. Ruth Metzler then held leading positions at Novartis and was 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, member of the board of AXA Winterthur and of the Board of Directors of the Hospital Asso-ciation AR, and Member of the Council of the University of St.Gallen (HSG). In December 2011, she was elected as mem-ber of the board of Bühler.

Josef M. Müller(1947, Swiss)

With a degree in Business Administration, he joined the Nestlé Group in 1972, with subsequent assignments in Switzerland, Europe, the U.S., and South Africa. 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 PROMARCA, the Swiss Association of Branded Goods (Schweizerischer Markenartikel- verband), since 2010. He is also member of the board of Crown Holdings Inc, Phila-delphia/USA and of Packages Ltd. Lahore, Pakistan.

Frank N.J. Braeken(1960, Belgian)

Frank N.J. Braeken graduated in Law and holds an MBA de-gree in Finance from the Uni-versity Leuven (Belgium). He is an alumnus of the Wharton Ex-ecutive Program, Penn Univer-sity, Philadelphia. In his profes-sional career he specialized in Finance and in General Man-agement. From 1996 through 2013, he held various manage-ment functions in different countries for Unilever, including a position as Group Vice-Presi-dent 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 Hold-ing (Berlin). He was elected to the Board of Directors of Bühler in 2014.

67

Peter Quadri(1945, Swiss)Vice-Chairman

Graduated in 1969 in Economy and Business Administration from the University of Zurich as lic. oec. publ. In 1970, he joined IBM as a systems engineer and specialist for software and operating systems. Following various positions in the U.S., Denmark, and Switzerland, he was president of IBM Switzer-land from 1998 to April 2006. Peter Quadri was appointed member of the board of Bühler in 2006, and has been its Vice-Chairman since 2014. He is also Chairman of the board of TriplEat Holding AG and member of the board of Vonto-bel Holding AG, of Run my Accounts AG, and of Investiere (Verve Capital Partners AG) and advisor of the Quadriga Senior Executive Board. Until May 2014, Peter Quadri was Chairman of the board of Unitectra AG and until the end of April 2014 member of the board of Swiss Life Holding AG.

Dr. Konrad Hummler(1953, Swiss)

He graduated in Law from the University of Zurich and in Economic Science from the U.S. University of Rochester. In the eighties, he acted as the personal assistant to the Chair-man of the Board of Directors of former UBS, Dr. Robert Holzach. From 1991 through 2012, he was instrumental in his function as Managing Partner with unlimited liability in the unprecedented success story of Wegelin & Co. Private Bankers, St.Gallen. In addition to his bank activities, he was a mem-ber of the board of various companies, including Neue Zürcher Zeitung (NZZ), Swiss National Bank (SNB), or the German Stock Exchange. Since 2013, Konrad Hummler has headed M1 AG, a private think tank dealing with strategic issues of current interest. Dr. Konrad Hummler was ap-pointed member of the board of Bühler in 2010. Furthermore, Dr. Konrad Hummler is a board member of other companies such as Layzapp ag, Zug, and McMRI AG, Stans.

Karin Bühler(1978, Swiss)

After obtaining her university entry qualifications, Karin Bühler completed her basic studies at the University of St.Gallen, after which she acquired a degree in Marketing. Following a number of activities in the fields of mar-keting, communications, and equestrian sports, she became General Manager of Horse Vision AG as owner in 2008. Since 2011, she has been with Bühler-Immo AG and UZE AG, first as Manager Marketing, then as member of the General Manage-ment in charge of Human Re-sources & Marketing and since 2014 as General Manager. Karin Bühler was elected to the Board of Directors in 2014. She is also a member of the board of Clientis Bank Oberuzwil and of Horse Vision AG, Uzwil.

Linda Yang(1971, Chinese)

Linda Yang holds one Bachelor degree each in Mathematics and Business/Finance from the Nan Kai University (Tianjin, Chi-na). She attended an Executive MBA program at the China Eu-rope International Business School (CEIBS). Following vari-ous assignments in China in the fields of research, consulting, and marketing, among other companies at Procter & Gamble (China) Ltd., she acted from 2001 through 2004 for Nestlé (China) Ltd. as Head of Con-sumer Insight. Since then she has been the General Manager of BSI (Tianjin) Foods Co. Ltd., a subsidiary of Bongrain S.A. Thanks to her experience and training, Linda Yang has a prov-en understanding of the Chi-nese market. She has been a member of the Board of Direc-tors since 2014.

Board of Directors.


Innovation Board of Urs Bühler Innovation Fund.

Matthias Kaiserswerth(1956, Swiss and German)Vice-President Europe, IBM Research, Director IBM Research – Zurich GmbH

Matthias Kaiserswerth studied Computer Science at the University of Erlangen-Nuremberg, Germany, and at McGill Univer-sity in Montreal, Canada. He obtained his PhD in Computer Science at Erlangen University, Germany. He has worked for IBM Research in Switzerland and the USA since 1988. From the middle of 2002 to the end of 2005, Dr. Kaiserswerth headed up the business unit globally responsible for all IBM business relations with a large international industrial customer. Matthias Kaisers werth has been Director of the IBM Research Laboratory in Rüschlikon, Switzerland, since June 2006. He has also been in charge of the IBM Research Laboratory in Dublin, Ireland, established in 2011, since January 2014.

Urs Bühler(1943, Swiss) Chairman

Graduate mechanical engineer from the Swiss Federal Institute of Technology Zurich (ETH). After a number of positions inside and outside Switzerland, 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, Braun-schweig (Germany). In 1986, Urs Bühler was appointed CEO of Bühler, Uzwil. He handed over the executive management duties of the company to Calvin Grieder at the start 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 is member of the board of several Swiss companies as well as of the Center for Young Entre-preneurs, Flawil (CH).

Hal Gurley(1955, 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 (U.S.), and an executive MBA from IMD in Switzerland. Before moving to Switzerland in 1995, Gurley was President and Founder of Automation Intelligence, an advanced systems integration and software develop-ment firm based in the USA specializing in real-time communications and control systems for industrial, robotic, and military applications. Prior to joining Cisco in 2000, Gurley was Director Internet/IP at Swiss-com, the Swiss incumbent telecom operator. Before he moved into a global sales role in 2013, Gurley worked for over ten years in Cisco’s management and strategy con-sulting organization engaging with Service Provider customer executives to accelerate business success using internet and cloud technologies for competitive advantage. Hal Gurley serves in a global sales leader-ship role responsible for Cisco’s Cloud/ Network System Management software portfolio and go-to-market execution. He also serves as sole Managing Director and legal representative of Cisco Systems (Switzerland) GmbH.

69

Ian Roberts(1970, British)Corporate Technology

He graduated in Chemical Engineering and obtained a Ph.D. in Process Engineering from the University of Wales, Great Britain. From 1997 through 2009, he held various management positions at Nestlé, acting among other things as internal Manage-ment Consultant at Swiss headquarters, as Director of Innovation for Nestlé Mexico, and as Director of the Chocolate Centre of Excellence in Switzerland. He has been Chief Technology Officer at Bühler since 2010.

Edward S. Steinfeld(1966, American) Professor of Political Science Director of the Brown University China Initiative at Brown University

Edward S. Steinfeld studied Government and Political Science at the Harvard University (USA), and holds a PhD in Poli-tical Science. From 1996 through 2013, Steinfeld was a professor of Political Econ-omy and Management at the Massa-chusetts 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 Industrial Performance Center. In 2013, Steinfeld moved to Brown University (USA), where he is the Dean’s Professor of China Studies, Professor of Political Science, and Director of the Brown University China Initiative. At Brown University, Steinfeld also is a faculty fellow of the Watson Institute for International Studies. Beside his uni-versity engagement, Ed Steinfeld is mem-ber of various boards of directors, academ-ic and advisory boards in the USA, Asia, and Europe. In 2012, he was appointed as member of the China Advisory Board of the Bühler Technology Group.

Innovation Board.


Financial report.

72 Financial commentary. 74 Business development. 78 Financial report Bühler Group. 79 Consolidated statement of income. 80 Consolidated statement of comprehensive income. 81 Consolidated statement of financial position. 82 Consolidated statement of changes in equity. 84 Consolidated statement of cash flows. 85 Notes to the financial statements.120 Report of the statutory auditor.

01_FR2014_Buhler_Group_en.indd 71 04.02.2015 16:38:31

Bühler Financial Report 201472

Orders on Hand (in CHF m)

2012 2013 2014

1,319

1,582

1,347

Turnover (in CHF m)

2012 2013 2014

2,322 2,3322,409

EBIT (in CHF m)

2012 2013 2014

139 145

168

Orders released (in CHF m)

2012 2013 2014

2,5822,3632,345

2014: Strong order intake, stable turnover and EBIT and improved cash flow.

Key points in brief.Bühler is back on the growth path. After a 1% growth of or-ders in 2013, we were able to grow our orders by 9.3 % to CHF 2,582 million in 2014. With this very satisfying devel-opment Bühler has prepared the ground for a profitable growth of its business. In line with the nature of the plant and equipment business, and as the order intake has taken up speed only in the second half of 2014, the turnover of CHF 2,332 million remained basically unchanged in com-parison with the previous year (2013: CHF 2,322 million; + 0.5 %). Thanks to diligent management of customer proj-ects the group has made substantial progress in its opera-tional profitability. Two major negative impacts on EBIT were overcapacities in individual European factories and the cor-responding one-time restructuring costs in Germany and Spain of around CHF 50 million. As a result the EBIT-level of the reporting year with CHF 144.6 million or 6.2 % of turn-over did not surpass the result of the previous year (2013: CHF 139.5 million or 6.0 %) by much. Adjusted for these negative special effects the EBIT would have surpassed the group’s minimum target level of above 8 %.

The strong growth of order intake shows that the group successfully mastered a number of major macroeconomic challenges such as volatile currencies, pandemics, regional crises and wars. All Business Areas were able to increase their order intake. The Business Area Die Casting stood out with its increase of 13 % to CHF 278 million (2013: CHF 246 million) and achieved its best year ever. Leybold Optics – our 2012 acquisition in the field of vacuum depositing sys-tems – also showed an excellent improvement of 41% to

CHF 171 million (2013: CHF 121 million). All sales regions made good progress in comparison to 2013 with respect to the order intake. The markets India and China led this im-provement with a plus of 73 % and 23 %, followed by South America with +13 % and North America with +11%. The group has also heavily worked on extending its customer service network to around 80 service stations around the world with somewhat 1,400 specialists ready to support the customers as close and as efficiently as possible.

The investments into product development and innovation amounted to CHF 99 million or 4.2 % of turnover (2013: CHF 109 million or 4.7 %). As in the past, these costs are fully expensed in the year when they arise. The return on the net operational assets (RONOA) of 18.1% has increased slightly compared to 2013 with 17.6 %. Thus, the capital costs of the group are more than covered, and the RONOA again represents a top value in comparison to other industry peers. The number of employees (exclusive of temporary staff and apprentices) could be kept on the same level on 10,575 (– 84 persons).

Profitability secured, positive financial result and low tax rate.The net profit in 2014 amounted to CHF 121 million or 5.2 % of turnover and was thus on the same level as the prior year (2013: CHF 123 million or 5.3 %). The financial result of CHF 2.7 million remained below the value of prior year (2013: CHF 6.7 million). Our financial assets continue to be managed very prudently by not taking unnecessary risks. Reflecting sustainable tax management and the absence of one-time impacts, the tax rate rose back to 17.9 % from the all-time low of 16.0 % in 2013.

Financial commentary.


Financial commentary. 73

Total Equity (in CHF m)

2012 2013 2014

1,0631,146

980

Equity ratio (in %)

2012 2013 2014

44.6 45.241.0

Net liquidity (in CHF m)

2012 2013 2014

464377

317

Operating Cash flow (in CHF m)

2012 2013 2014

187

124

37

Sales by Business

1 Grain Milling (31 %)

2 Grain Logistics (7 %)

3 SORTEX & Rice (9 %)

4 Value Nutrition (21%)

5 Consumer Foods (12 %)

6 Die Casting (12 %)

7 Grinding & Dispersion (3 %)

8 Leybold Optics (5 %)

Sales by Region



3 Europe (31%)

4 Middle East & Africa (15 %)

5 Asia (30 %)

1

1

2

3

3

4

4

5

5

6

87

2

Strong balance sheet and operating cash flow.The equity as of December 31, 2014 amounted to CHF 1,146 million (2013: CHF 1,063 million). The equity ratio has thus increased to 45.2 % (2013: 44.6 %). Apart from loans granted by related parties in the amount of CHF 159 million (2013: CHF 193 million), the group does not have any material finan-cial liabilities to third parties. The cash flow from operating activities of CHF 187 million has again increased substan-tially (2013: CHF 124 million) due to a strong focus on net working capital management. Net liquidity rose to CHF 464 million (2013: CHF 377 million), thanks to our disciplined in-vestment approach and due to the fact that no major acqui-sitions were made in the reporting year. As a result the future growth of Buhler can be financed without incurring third party debt.

Conclusion and outlook.In 2014 Bühler has found its way back to growth thanks to an excellent order intake. Overcapacities in some European factories and substantial restructuring costs have kept us from enhancing the EBIT above the level of 2013. However the necessary decisions and actions have been put in place in order to raise the operational result to the minimum target level of 8 % again. In January 2015, the Swiss National Bank decided to abolish the cap on the EUR / CHF exchange rate. In view of the free float of the Swiss Franc since this deci-sion, a particularly strong management focus in 2015 and beyond will be on further improving the pro ductivity and cost-effectiveness of our operations. We are convinced that Bühler is ready to face these challenges and remain optimis-tic for the future development for the group.



Grain Logistics

Total sales

166 CHF m

Share of group sales

7 %

Grain Milling

Total sales

698 CHF m


31 %

Business Area Grain MillingThe overall market environment for Grain Milling was posi-tive. Order intake grew by +4 % to CHF 759 million, order backlog was CHF 548 million and turnover was CHF 698 million. Industrial Milling, the largest business, remained stable while Specialty Milling grew its market share by win-ning many important projects in different parts of the world.

Two successful innovations marked 2014: the new Malto-mat for the brewing industry, which was sold over 15 times before even entering the market, and the fully automatic new Maia packer for the packing of finished products. Ad-ditionally, the investments made into the development of the new Atta grinding technology started to pay off. New lines in India and plants are being installed in Lebanon and Ban-gladesh.

Europe remained a very important but challenging region with a focus on upgrading existing plants and Customer Service. The Commonwealth of Independent States (CIS) countries continued to disappoint. The milling industry in South America, especially Brazil, went through a large in-vestment phase, resulting in record order entries, while in North and Central America the industry faced consolidation. South Asia grew fast, driven by Bangladesh, while the Chi-nese market faced a slowdown.

2015 looks promising. Population growth and urbanization will drive consumption of grain based food, opening up new opportunities for the traditional grain milling customers as well as industrial food producers. Furthermore, the group of health and convenience conscious consumers is increasing rapidly, resulting in higher demand of special grain products.

Business Area Grain Logistics Grain Logistics concluded the year 2014 with overall posi-tive results. Order intake grew by 8 % to CHF 211 million. Turnover grew by 3 % from CHF 161 million to CHF 166 mil-lion.

The projects secured recently showed that standardized solutions including multi pass cleaning and drying sections as well as the new moisture control system for dryers are key for success. Several Customer Service products & ser-vices like the automatic inlet control or the maintenance platform for cleaning machines as well as the Ecomation for the dryers have been launched in 2014.

Germany accounts for the majority of Grain Logistics turn-over. Developments in South East Asia and South Asia are encouraging, while the Middle East continued its upward trend in 2014. African markets fell short of expectation for Grain Logistics. In South American’s malting business, Grain Logistics has secured large-scale orders and the sin-gle machine sales success from 2013 has been surpassed again 2014.

The outlook for 2015 is positive. The Grain Logistics mar-kets are expected to develop favourably. The ongoing de-mand for engineering contracts in malting are good indi-cations that the malting industry will continue with their investments into new facilities.

Business development.


75Business development.

SORTEX & Rice

Total sales

208 CHF m


9 %

Value Nutrition

Total sales

461 CHF m


21 %

Business Area Value NutritionThe Business Area Value Nutrition showed an overall posi-tive result in 2014. Orders Released grew by 9 % to CHF 480 million. Turnover decreased by 2.4 % to CHF 461 million. The positive drivers for this development were the Feed segment and the Nutrition segment with approximately 70 % growth compared to previous year, with Petfood con-tributing a substantial portion to this growth. The Pasta, Asian Food and Oil segments contributed in varying extent to this overall result.

Geographically, one of the main drivers for growth was once again China with strong development in plant sales. Spain and Switzerland registered significant orders of standard food & feed ingredients, whereas Eastern Europe was rather weak due to political turmoil in Ukraine and the weakening of the Russian Ruble. The Middle East /Africa region played a significant role for establishing new market segments such as performance lines for the feed industry and new solu tions for Asian Food.

The outlook for 2015 is stable with varying degrees for the different segments: Since the market shows an increasing demand for meat, higher capacities for Feed production are expected in the future. In the Pasta segment, there is a clear trend for gluten-free solutions where Bühler is in a leading position. The integration and promotion of Asian Food & Aqua Feed in the Bühler Value Nutrition portfolio will be one of the most promising opportunities in 2015.

Business Area SORTEX & RICE SORTEX & Rice registered double-digit growth (12 %) in or-ders intake growing to CHF 244 million and record numbers of orders in hand (CHF 87 million). Turnover reached CHF 208 million (– 2 %). Strong growth in Asia, due to landmark orders for key processing projects, and solid performance in Europe, South Asia and South East Asia, were the main drivers. The business in Africa and Middle East, except Tur-key, which performed well, was affected by political and economic turmoil.

In optical sorting, Bühler Sanmak continued to strengthen its market dominance in Brazil. In China, Bühler’s Yijiete brand expanded its footprint, while the Bühler Shenzhen factory delivered a record number of exports for optical sorting machines. The SORTEX S UltraVision intelligent rice sorter has been launched successfully, resulting in notable large machine orders.

The outlook for 2015 is promising. Significant growth oppor-tunities and large capacity mill projects are expected in rice and pulses processing equipment across Asia and Africa. In optical sorting, there is increasing customer demand for the latest SORTEX A sorting technology. Bühler is well posi-tioned to act as the technology partner of choice for safe and hygienic food processing.



Consumer Foods

Total sales

275 CHF m


12 %

Die Casting

Total sales

273 CHF m


12 %

Business Area Die Casting2014 was a record year for orders and turnover for Die Cast-ing. Orders grew by 13 % to CHF 278 million, mainly driven by the strong growth in China and the global automotive in-dustry’s focus on lightweight solutions, increasing aluminum die cast parts used in cars. Turnover increased by 27 % to CHF 273 million.

China, Germany as well as Eastern and Central Europe mainly contributed to the order growth. The new sales & services stations in India, Mexico and Japan generated immediate positive results. Together with the opening of the new factory in Wuxi, Die Casting strengthened its global market presence.

The Ecoline product line doubled its sales. Furthermore, the Event Analyzer together with the progress made in thermal balance, helped customers to improve their equipment ef-fectiveness significantly. The Lost Core technology allowed to realize promising projects for closed-deck engine block production.

In 2015, the automotive industry continues to be the main driver for the die casting activity. China as a market is ex-pected to lead overall business growth, followed by South Asia, Mexico and Eastern Europe. Customer Service and innovation remain areas of focus.

Business Area Consumer FoodsConsumer Foods showed a strong growth in 2014, mainly driven by new customer development and need for produc-tion capacity. Order intake grew by 2 % to CHF 295 million and Turnover rose to CHF 275 million (+7 %).

In North America growth came from new customers, and in the Asian market from the need of production capacity to satisfy growing local demand. Europe and South America remained on high level whereas the Middle East & Africa and South Asia showed a slight decrease in volumes. Local Customer Service hubs in India and China are paying off. Big Multinationals took advantage of Bühler’s broad service offering on the spot and invested in its full plant solutions, delivering complete processing lines and also In-Plant ser-vice engineers.

In 2014, the business area introduced 11 new machines and solutions for cocoa, chocolate and coffee processing on Interpack in Düsseldorf and thus underlined once more its commitment to innovation. By launching a full series of “Compact” solutions, Bühler demonstrated that also small and mid-size companies can benefit from its vast know how and expertise in processing of cocoa, chocolate, coffee and nuts.

The outlook for 2015 is positive. The market shows sustain-able growth in consumption of chocolate and coffee and the producers keep investing in their production facilities.


77Business development.

Grinding & Dispersion

Total sales

70 CHF m


3 %

Leybold Optics

Total sales

116 CHF m


5 %

Business Area Leybold Optics 2014 was a highly successful year in order intake for Ley-bold Optics. Orders grew by 41 % to CHF 171 million, while turnover decreased by – 13 % to CHF 116 million. Leybold Optics strengthened its position in the market segment Large Area Coating and held it in the Ophthalmic Optics and Precision Optics industry.

Two new machines, BOXER 900 and STARpro, have been launched, and the transparent packaging industry was en-tered with LEYBOLD OPTICS PAK 2100T. Furthermore, Leybold Optics extended its worldwide presence, integrat-ing all sales and service offices into the Bühler network, fur-ther expanding its customer service.

Geographically, growth in Asia and Middle East Africa was mainly driven by the need for further production capacity, while North and South America showed a slight decrease in volumes due to challenges in the Ophthalmic Optics market.

The outlook for 2015 is positive. The majority of markets show sustainable growth. Growing demand for sunglasses and an increasing altering population is driving the Ophthal-mic Optics industry. In the packaging industry, demand is driven by intelligent packaging with transparent foil.

As of January 1, 2015, Leybold Optics GmbH will be operat-ing as Bühler Alzenau GmbH.

Business Area Grinding & DispersionThe overall development for Grinding & Dispersion was very positive. Order intake grew by 22 % to CHF 82 million. Turn-over remained stable at CHF 70 million. Besides pioneering process innovations, the MicroMedia™ X bead mill technol-ogy now sets the industry standard for manufacturing liquid ink in the fast growing area of packaging. An additional highlight in 2014 was the opening of the extended Euro-pean principal laboratory in Uzwil, offering customers to test the full spectrum of Bühler solutions. The Asian counterpart will be opened in Wuxi, China in 2015.

Geographically, growth in Asia was driven by the highly competitive Performance Line Equipment and the innova-tive process solutions, and in North America and Europe by replacements or enhancements of existing capacity. The development of the Middle Eastern and African regions, with the realization of new capacities in the coating and ink industry, was encouraging. Conversely, the achievements in Southern and Eastern Asia fall behind expectations.

The outlook for 2015 is positive for traditional and new busi-ness, with further growth expected in Asia, the Middle East and Africa and recovery in Southern and Eastern Asia.



Financial report Bühler Group.


Consolidated Financial Statements. 79

Notes2014

CHF m2013

CHF m

Sales revenue 1 2,332.2 2,321.8

Changes in inventories of finished goods and work in progress – 6.9 – 10.9

Other operating income 2 31.6 69.1

Total operating income 2,356.9 2,380.0

Cost of materials – 989.5 – 1,005.3

Employee benefit expenses 3 – 759.9 – 732.5

Other operating expenses 4 – 402.6 – 427.1

Operating result before interest, taxes, depreciation and amortization (EBITDA) 204.9 215.1

Depreciation and amortization 7/8 – 60.3 – 75.6

Operating result before interest and taxes (EBIT) 144.6 139.5

Financial result 5 2.7 6.7

Profit before taxes 147.3 146.2

Income taxes 6 – 26.4 – 23.4

Net profit 120.9 122.8

Attributable to:

A Owners of the parent 113.9 115.0

A Non-controlling interests 7.0 7.8

Consolidated statement of income.



Notes2014

CHF m2013

CHF m

Net profit 120.9 122.8

Other comprehensive income

Translation differences of foreign operations 25.1 – 12.5

– Tax effect 0.0 0.0

Available-for-sale financial assets

– Change in fair value 0.0 0.1

– Realized through statement of income – 1.0 0.0


Cash flow hedges

– Change in fair value – 6.9 0.2

– Realized through statement of income – 4.7 – 3.4


Net gain on hedge of net investment – 3.9 3.3

– Tax effect 0.5 – 0.5

Other comprehensive income to be reclassified to profit or loss in subsequent periods 11.3 – 12.4

Actuarial gains and losses on defined benefit plans 17.3 – 42.4 – 3.3


Other comprehensive income not to be reclassified to profit or loss in subsequent periods – 34.1 – 3.0

Total other comprehensive income – 22.8 – 15.4

Total comprehensive income 98.1 107.4

Attributable to:

A Owners of the parent 88.7 99.7

A Non-controlling interests 9.4 7.7

Consolidated statement of comprehensive income.



Assets Notes 2014

CHF m2013

CHF m

Property, plant and equipment 7 407.3 382.8

Intangible assets 8 301.0 298.2

Investments in associates 9 18.0 17.9

Long-term financial assets 10 99.0 103.4

Deferred tax assets 11 41.7 30.0

Non-current assets 867.0 832.3

Inventories 12 357.5 335.0

Net assets of production orders in progress 13 202.1 208.0

Trade accounts receivable 14 503.3 508.2

Other accounts receivable, prepayments and accrued income 15 118.8 111.1

Current income tax assets 4.4 6.8

Marketable securities 16.2 43.3 32.5

Cash and cash equivalents 436.1 347.4

Current assets 1,665.5 1,549.0

Total assets 2,532.5 2,381.3

Equity and liabilities

Share capital 19 15.0 15.0

Capital reserves 185.1 185.1

Other reserves / retained earnings 904.3 830.6

Equity attributable to the owners of the parent 1,104.4 1,030.7

Non-controlling interests 41.4 31.9

Total equity 1,145.8 1,062.6

Long-term financial liabilities 150.8 172.6

Deferred tax liabilities 11 82.6 87.8

Defined benefit obligations 17.4 111.0 62.6

Long-term provisions 18 25.8 27.6

Non-current liabilities 370.2 350.6

Short-term financial liabilities 15.7 2.7

Trade accounts payable 20 196.8 195.9

Net liabilities of production orders in progress 13 388.2 333.1

Short-term provisions 18 60.1 62.8

Other short-term liabilities, accruals and deferred income 21 341.1 353.4

Current income tax liabilities 14.6 20.2

Current liabilities 1,016.5 968.1

Total liabilities 1,386.7 1,318.7

Total equity and liabilities 2,532.5 2,381.3

Consolidated statement of financial position.



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, 2013 15.0 185.1 892.3 8.2 1.5 – 153.1 934.0 949.0 31.2 980.2

Dividends paid – 18.0 – 18.0 – 18.0 – 7.1 – 25.1

Changes in non-controlling interests 0.0 0.0 0.1 0.1

Net profit 115.0 115.0 115.0 7.8 122.8

Other comprehensive income – 3.0 – 2.8 0.1 – 9.6 – 15.3 – 15.3 – 0.1 – 15.4

December 31, 2013 15.0 185.1 986.3 5.4 1.6 – 162.7 1,015.7 1,030.7 31.9 1,062.6

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


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

Consolidated statement of changes in equity.



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, 2013 15.0 185.1 892.3 8.2 1.5 – 153.1 934.0 949.0 31.2 980.2

Dividends paid – 18.0 – 18.0 – 18.0 – 7.1 – 25.1


Net profit 115.0 115.0 115.0 7.8 122.8

Other comprehensive income – 3.0 – 2.8 0.1 – 9.6 – 15.3 – 15.3 – 0.1 – 15.4

December 31, 2013 15.0 185.1 986.3 5.4 1.6 – 162.7 1,015.7 1,030.7 31.9 1,062.6

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


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



Notes2014

CHF m2013

CHF m


Financial result 5 – 2.7 – 6.7

Operating result before interest and taxes (EBIT) 144.6 139.5

Depreciation and amortization 7/8 60.3 75.6

Other items not affecting cash flow – 3.3 11.5

Changes in provisions – 2.3 – 121.6

Changes in trade accounts receivable 12.5 29.6

Changes in inventories – 8.5 – 22.0

Changes in trade accounts payable – 11.9 – 13.9

Changes in net assets / liabilities of production orders in progress 62.6 35.6

Changes in other net operating assets – 41.3 24.3

Cash flow generated from operations 212.7 158.6

Gains / losses on disposal of fixed assets 0.4 0.3

Interest received 2.9 3.2

Interest paid – 2.9 – 2.6

Income taxes paid – 25.9 – 35.7

Cash flow from operating activities 187.2 123.8

Purchase of property, plant and equipment – 55.1 – 85.1

Disposal of property, plant and equipment 2.5 8.6

Purchase of intangible fixed assets – 2.7 – 2.9

Cash flow from business combinations / disposals of group companies, net of cash 22 – 10.8 – 0.2

Purchase of non-consolidated participations – 1.6 0.0

Disposal of non-consolidated participations 0.0 0.2

Purchase of marketable securities – 25.4 – 14.6

Disposal of marketable securities 13.0 58.0

Purchase of long-term financial assets – 1.8 – 0.6

Disposal of long-term financial assets 3.9 2.2

Dividends received 1.6 0.8

Cash flow from investing activities – 76.4 – 33.6

Proceeds from financial liabilities 0.2 0.0

Repayment of financial liabilities – 15.6 – 12.5

Proceeds from capital increases from non-controlling interests 2.4 0.0

Dividends paid of Bühler Holding AG – 15.0 – 18.0

Dividends paid to non-controlling interests – 6.2 – 7.1

Cash flow from financing activities – 34.2 – 37.6

Translation differences 12.1 – 11.0

Changes in cash and cash equivalents 88.7 41.6

Cash and cash equivalents at the beginning of period 347.4 305.8

Cash and cash equivalents at the end of period 436.1 347.4

EBIT includes share of profit of associates in the amount of CHF 1.1 million (prior year: CHF 1.3 million); thereof cash-effective CHF 0.9 million (prior year: CHF 0.2 million). Changes in provisions include changes in short- and long-term provisions, defined benefit obliga-tions and deferred taxes.

Consolidated statement of cash flows.



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 the 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 prin-ciples. 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, 2014. Only revised and new IFRS have been included in the following list which are rele-vant to the Group:

Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27). These amendments provide an exception to the consolidation re-quirement for entities that meet the definition of an investment entity under IFRS 10 Consolidated Financial Statements and must be ap-plied retrospectively, subject to certain transition relief. The excep-tion to consolidation requires investment entities to account for sub-sidiaries at fair value through profit or loss. These amendments have no impact on the Group, since none of the entities in the Group qualifies to be an investment entity under IFRS 10.

Offsetting Financial Assets and Financial Liabilities – Amendments to IAS 32. These amendments clarify the meaning of “currently has a legally enforceable right to set-off” and the criteria for non-simulta-neous settlement mechanisms of clearing houses to qualify for off-setting and is applied retrospectively. These amendments have no impact on the Group, since none of the entities in the Group has any offsetting arrangements.

Novation of Derivatives and Continuation of Hedge Accounting – Amendments to IAS 39. These amendments provide relief from dis-continuing hedge accounting when novation of a derivative desig-nated as a hedging instrument meets certain criteria and retrospec-tive application is required. These amendments have no impact on the Group as the Group has not novated its derivatives during the current or prior periods.

IFRIC 21 Levies. IFRIC 21 clarifies that an entity recognizes a liability for a levy when the activity occurs that triggers payment, as identified by the relevant legislation. For a levy that is triggered upon reaching a minimum threshold, the interpretation clarifies that no liability should be anticipated before the specified minimum threshold is reached. Retrospective application is required for IFRIC 21. This interpretation has no impact on the Group as it has applied the rec-ognition principles under IAS 37 Provisions, Contingent Liabilities and Contingent Assets consistent with the requirements of IFRIC 21 in prior years.

Notes to the financial statements.

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.

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 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.

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, 2017 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.

02_FR2014_Notes_risk_management_en.indd 85 04.02.2015 16:39:07


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 ben-efit obligations, deferred tax assets, provisions and disclosure of contingent liabilities at the end of the reporting period.

The Group accounts for long-term 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 de-termined according to the cost-to-cost method. The percentage-of-completion method involves the use of estimates and forecasts con-cerning 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 construction contracts are recognized as an expense im-mediately. 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 esti-mates.

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.

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.



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

Additions. A Buhler (Guangzhou) Food Machinery Co. Ltd., China A Wuhan Mingbo Electromechanical Equipment Co. Ltd., China A Buhler Malaysia Sdn. Bhd., Kuala Lumpur

Deletions. A Jiangsu Buhler Industry Development Co. Ltd., China A Buhler Equipment Engineering (Wuxi) Co. Ltd., China

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 31.12.

2014 CHF

2013 CHF

2014 CHF

2013 CHF

Europe 1.214500 1.230500 1.203000 1.228000

Great Britain 1.507000 1.449000 1.529000 1.469000

Czech Republic 0.044200 0.047400 0.043500 0.045000

USA 0.915500 0.927100 0.985000 0.893000

Canada 0.828700 0.900800 0.846000 0.840000

Brazil 0.389000 0.431300 0.370000 0.380000

Argentina 0.113000 0.170400 0.115000 0.138000

Japan 0.008653 0.009509 0.008200 0.008500

India 0.015000 0.015900 0.015600 0.014400

China 0.148600 0.149600 0.158200 0.147000

Mexico 0.068800 0.072700 0.067200 0.068400

South Africa 0.084400 0.096500 0.084900 0.086300

Thailand 0.028190 0.030200 0.029900 0.027250

Singapore 0.722300 0.741100 0.745200 0.705600



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 measured 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 are 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 individual 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.



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 relin-quishes control over them, that is when the contractual cash flows from the asset are sold or expired. Financial liabilities are derecog-nized 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-current 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 value of derivatives used for the hedging of cash flows is recognized in other comprehensive income. The ineffective portion of the hedging instru-ment is immediately recognized as financial result in the statement 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.



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 em-ployee 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 settle-ments.

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.



Employee benefits – other long-term employment benefits. Other long-term employment benefits include jubilee, early retirement or other long 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.

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.

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.



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 function is exercised by the Group Treasury department in close collaboration with the operating units, as well as in accordance with treasury direc-tives.

Financial assets

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

2013

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 347.4 347.4 347.4

Financial assets “at fair value through profit or loss” 32.5 32.5 32.5

Receivables and loans 619.3 92.0 711.3 711.3

Financial assets “available for sale” 6.3 6.3 6.3

Total financial assets 347.4 32.5 619.3 98.3 1,097.5 1,097.5

Financial liabilities

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

Total financial liabilities 166.5 537.8 704.3 704.3

2013

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 172.7 549.3 722.0 722.0

Financial liabilities “at fair value through profit and loss” 2.6 2.6 2.6




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 volatility associated with these risks, the Group employs financial derivative instruments such as forward contracts and op-tions.

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. Refer to note 33 for further information to the exchange rate fluctuation after the balance sheet date.

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

2013 Currency pair EUR / CHF USD / CHF

Volatility 4.5 % 8.8 %

Effect in profit and loss (rate increase) CHF m 5.4 – 2.5

Effect in profit and loss (rate decrease) CHF m – 6.2 1.6

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 fi-nancing 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 – 0.3 million (prior year: CHF 0.0 million). A reduction of the inter-est rate by 100 basis points would have the opposite effect on profit after taxes to the value of CHF 0.3 mill ion (prior year: CHF 0.0 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 marketable securities, derivative financial instruments, money market contracts, 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 A 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 monitored and adjusted. The Group does not expect to incur any loss as a result of its counter-parties being unable to meet their contractual obligations, nor does it have any cluster risks with respect to individual sectors or countries.



Receivables outstanding analysis

2014

Total book value

Dec 31, 2014 CHF m

Not due CHF m

Overdue

< 3 months CHF m

4 – 6 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

2013

Total book value

Dec 31, 2013 CHF m

Not due CHF m

Overdue

< 3 months CHF m




> 12 months CHF m

Accounts receivable trade and other 618.8 497.1 74.1 15.4 7.8 10.2 14.2

Allowance for bad debts – 10.9 0.0 – 0.7 – 0.1 – 0.2 – 0.4 – 9.5

Associated companies and other related parties 11.4 11.4

Total accounts receivable, net 619.3 508.5 73.4 15.3 7.6 9.8 4.7

Allowance for bad debts2014

CHF m2013

CHF m

January 1 – 10.9 – 12.0

Additions – 4.5 – 3.7

Consumption 0.6 3.2

Release 5.2 2.5

Changes in scope of consolidation 0.0 – 0.7

Translation differences – 0.1 – 0.2

December 31 – 9.7 – 10.9



Liquidity risk. Liquidity risk refers to the risk of the Group being un-able 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 regula-tory 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, 2014 the equity ratio stood at 45.2 % (December 31, 2013: 44.6 %).

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

2013

Book value Dec 31, 2013

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 191.8 191.8 191.8

Financial liabilities to banks 0.4 0.4 0.4

Liabilities to associates, non-consolidated companies and related parties 200.1 200.1 34.1 111.0 55.0

Liabilities others / accruals and deferred income 332.2 332.2 326.1 6.1

Derivative financial instruments held for hedging net – 1.3 – 1.3 – 1.1 – 0.2

Total 723.2 723.2 551.3 116.9 55.0



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 15, 2014.

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.

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


2013 CHF m Level 1 Level 2 Level 3 Total

Financial assets “at fair value through profit or loss” 24.3 24.3

Derivative financial assets 8.4 8.4

Financial assets “available for sale” 6.3 6.3

Total financial assets 24.3 14.7 0.0 39.0

Derivative financial liabilities 2.6 2.6




1 Sales revenueCHF 1,513.7 million (prior year: CHF 1,478.5 million) of the total operating income was determined using the percentageofcompletion method in the reporting period.

2 Other operating income2014

CHF m2013

CHF m

Earnings from coordination of consortium business 2.1 10.2

Interest income from trade finance 2.2 1.4

Rental income 0.3 0.4

Gains from sale of fixed assets 0.4 0.8

Gains from sale of part of businesses 0.0 22.5

Net result from investments in associates 1.1 1.1

Other operating income related parties 0.0 1.2

Others 25.5 31.5

Total 31.6 69.1

“Others” comprises a number of individually immaterial items which cannot be allocated to another line item.

3 Employee benefit expenses2014

CHF m2013

CHF m

Wages and salaries 591.1 584.2

Social security and employee benefit expenses 110.6 94.0

Other personnel expenses 58.2 54.3

Total 759.9 732.5

03_FR2014_Notes_part1_en.indd 97 04.02.2015 17:06:38


4 Other operating expenses2014

CHF m2013

CHF m

Administration expenses 101.5 100.4

Rental and leasing expenses, dues 31.5 33.2

Energy, maintenance and repairs 31.6 32.5

Travel expenses 72.1 75.9

Outbound freight costs 64.1 70.8

Consultancy fees 10.6 15.1

Marketing costs 18.0 15.7

Agency fees 14.0 18.2

Warranty costs, loss orders 3.7 1.4

Other operating expenses related parties 24.9 25.2

Others 30.6 38.7

Total 402.6 427.1

5 Financial result2014

CHF m2013

CHF m

Interest income 5.4 4.3

Interest expenses – 0.7 – 0.9

Total interest result 4.7 3.4

Realized gains from securities 5.9 4.7

Realized losses from securities 0.0 – 5.0

Total securities result 5.9 – 0.3

Interest income from related parties 1.4 1.4

Interest expenses from related parties – 2.5 – 2.3

Total interest result from related parties – 1.1 – 0.9

Fair value adjustments – 0.7 0.1

Foreign exchange gains and losses – 4.0 4.5

Other financial income and expenses – 2.1 – 0.1

Total 2.7 6.7

The securities gain of CHF 5.9 million (prior year: loss of CHF – 0.3 million) was influenced by a positive development in most major equi ty markets. The interest gain including interest from related parties amounts to CHF 3.6 million (prior year: CHF 2.5 million) and remained low due to the historically low interest rates in most currencies. The positive impact from the asset allocation was partly offset by the foreign exchange losses of CHF – 4.0 mill ion (prior year: gain of CHF 4.5 million). Although volatility in major currencies remained low, several minor currencies (e.g. RUB) further devalued against CHF.



6 Taxes6.1 Income taxes

2014 CHF m

2013 CHF m

Income taxes relating to the reporting period – 38.6 – 37.6

Income taxes relating to prior periods 3.3 3.3

Deferred taxes due to temporary differences – 1.0 – 2.1

Deferred taxes due to recognition of tax loss carryforwards 10.3 13.1

Deferred taxes due to changes in tax rates – 0.4 – 0.1

Total – 26.4 – 23.4

Taxes recognized directly in shareholders’ equity 11.0 0.2

6.2 Reconciliation of income taxes2014

CHF m2013

CHF m


Components of tax expenses:

Income taxes at anticipated tax rate – 28.9 – 22.8

Income and expenses not subject to tax – 0.4 – 3.7

Income taxes relating to prior periods 3.3 3.3

Deferred taxes due to changes in tax rates – 0.4 – 0.1

Effect of tax loss carryforwards 1.9 0.1

Effect of losses without recognition of deferred tax assets – 4.6 – 2.1

Other impacts 2.7 1.9

Total income taxes – 26.4 – 23.4

Total income taxes in % of profit before taxes 17.9 % 16.0 %

The anticipated tax rate was 19.6 % (prior year 15.6 %) and consisted of the weighted average of the applicable local tax rates for income taxes. The tax rate increased to 17.9 % in 2014 from 16.0 % in 2013. Contributory factors for the resulted tax rate included a sustainable tax management and the nonexistence of a special German tax effect as accounted for in prior year.

6.3 Tax loss carry-forwards2014

CHF m2013

CHF m

Expiry

Unlimited 85.4 68.1

In more than 5 years 20.5 8.5

In 2 – 5 years 23.0 8.7

Within 1 year 2.3 1.5

Total 131.2 86.8

Tax loss carryforwards accounted for in deferred taxes 108.9 70.8

Tax effect on tax loss carryforwards unaccounted for 5.8 4.9

The change in tax loss carryforwards results from the use of tax losses in particular in Brazil and in the USA as well as from the impact of additional tax loss carryforwards in particular in Germany, Spain, South East Asia and China.



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, 2013 0.4 249.1 248.5 130.0 24.4 652.4

Additions 0.0 6.6 15.4 10.9 52.3 85.2

Disposals 0.0 – 0.3 – 7.3 – 5.5 – 4.6 – 17.7

Changes in the scope of consolidation 0.0 1.9 1.2 – 0.6 0.0 2.5

Reclassifications 0.0 1.1 14.3 2.5 – 14.9 3.0

Translation differences 0.0 – 3.3 – 2.9 – 2.0 – 1.4 – 9.6

December 31, 2013 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

Depreciation

January 1, 2013 0.0 – 64.4 – 144.0 – 96.4 – 0.3 – 305.1

Additions 0.0 – 6.9 – 17.4 – 12.5 0.0 – 36.8

Disposals 0.0 0.2 4.8 4.3 0.0 9.3


Impairment 0.0 0.0 0.0 0.0 0.0 0.0

Reclassifications 0.0 0.0 – 3.5 0.4 0.0 – 3.1

Translation differences 0.0 0.5 0.9 1.3 0.0 2.7

December 31, 2013 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

Net book values

January 1, 2014 0.4 184.5 110.0 32.4 55.5 382.8

December 31, 2014 0.4 219.1 129.5 30.8 27.5 407.3

The impairment of CHF – 2.4 million refers to the restructuring of a factory in Germany. The market value of investment properties amounted to CHF 1.5 million in the reporting year (prior year: CHF 1.5 million). As in 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, 2014 amounted

to CHF 939.4 million (prior year: CHF 979.8 million). Net loss on disposal of tangible fixed assets amounted to CHF – 0.4 million (prior year: net gain CHF 0.1 million). Commitments relating to property, plant and equipment, which are not shown in the balance sheet, amounted to CHF 69.8 million (prior year: CHF 17.3 million) related to investments in the factory in China.



8 Movements of intangible assets

Acquisition costGoodwill

CHF m

Other intangible assets CHF m

Total CHF m

January 1, 2013 252.8 143.3 396.1

Additions 0.0 2.9 2.9

Disposals 0.0 – 0.8 – 0.8

Changes in the scope of consolidation 5.8 3.9 9.7

Reclassifications 0.0 – 3.1 – 3.1

Translation differences 1.3 – 0.3 1.0

December 31, 2013 259.9 145.9 405.8

Additions 0.0 2.7 2.7

Disposals 0.0 – 2.2 – 2.2


Reclassifications 0.0 0.1 0.1

Translation differences 4.4 1.7 6.1

December 31, 2014 273.1 155.3 428.4

Amortization

January 1, 2013 – 11.0 – 61.8 – 72.8

Additions 0.0 – 20.5 – 20.5

Disposals 0.0 0.4 0.4

Impairment – 18.3 0.0 – 18.3



Translation differences 0.3 0.2 0.5

December 31, 2013 – 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

Net book values

January 1, 2014 230.9 67.3 298.2

December 31, 2014 243.4 57.6 301.0

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.



9 Investments in associatesNet book values

Share in equity CHF m

Goodwill CHF m

Total 2014 CHF m

Total 2013 CHF m

January 1 10.6 7.3 17.9 9.9

Reclassifications 0.0 0.0 0.0 0.0

Additions 0.0 0.0 0.0 6.8

Impairment 0.0 0.0 0.0 0.0

Share of net profit 1.1 0.0 1.1 1.3

Dividends received – 0.9 0.0 – 0.9 – 0.2

Translation differences – 0.1 0.0 – 0.1 0.1

December 31 10.7 7.3 18.0 17.9

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 companies2014

CHF m2013

CHF m

Share of sales revenue 19.7 18.8

Share of net profit 1.1 1.3

Balance sheet values:

Noncurrent assets 11.2 11.9

Current assets 16.6 15.5

Noncurrent liabilities 10.9 11.7

Current liabilities 6.6 5.1

Shareholders’ equity 10.3 10.6

The associated companies mainly comprise three companies, two in Southern Europe and one in Switzerland. Bühler has a shareholding of 26 %, 30 % and 35 % respectively. The figures are based on available preview closing data as of December 31, 2014.



10 Long-term financial assets

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

December 31, 2013

Due 1 – 5 years

CHF m> 5 years

CHF mTotal

CHF m

Securities 0.0 1.7 1.7

Overfunding of postemployment benefit plans 0.0 5.0 5.0

Loans to nonconsolidated companies 1.6 0.0 1.6

Loans to associated companies 18.4 0.0 18.4

Other noncurrent financial assets 72.1 4.6 76.7

Total 92.1 11.3 103.4

11 Deferred tax assets and liabilitiesNet book values

2014 CHF m

2013 CHF m

Tangible fixed assets – 16.6 – 15.9

Postemployment benefits 24.0 14.0

Provisions – 3.3 – 0.1

Other items – 75.5 – 76.0

Tax loss carryforwards 30.5 20.2

Total – 40.9 – 57.8

Recognized on the balance sheet as deferred tax liabilities – 82.6 – 87.8

Recognized on the balance sheet as deferred tax assets 41.7 30.0

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.



12 InventoriesGross value

CHF mValue adjustments

CHF m2014

CHF m2013

CHF m

Raw materials and supplies 149.5 – 19.2 130.3 123.2

Unfinished goods 53.8 – 11.3 42.5 41.8

Finished goods and merchandise 78.5 – 4.9 73.6 68.5

Work in progress 89.5 – 3.5 86.0 84.3

Advance payments to suppliers 25.1 0.0 25.1 17.2

Total 396.4 – 38.9 357.5 335.0

In prior year, value adjustments deducted from inventories amounted to CHF – 37.6 million. No material reversals of value adjustments of the prior year were recognized in the reporting year.

13 Production orders in progress2014

CHF m2013

CHF m

Production orders in progress 308.4 353.8

Advance payments from customers – 106.3 – 145.8

Net assets of production orders in progress 202.1 208.0

Production orders in progress – 24.4 – 54.0

Advance payments from customers – 363.8 – 279.1

Net liabilities of production orders in progress – 388.2 – 333.1

Accumulated costs and recognized profits 1,690.1 1,586.8

14 Trade accounts receivable2014

CHF m2013

CHF m

A from third parties 508.1 513.6

A from nonconsolidated companies 4.2 3.3

A from associates 0.6 1.3

A from related parties 0.1 0.1

Allowance for bad debts – 9.7 – 10.1

Total 503.3 508.2

Trade accounts receivable include supplier credits of CHF 79.4 million (prior year: CHF 106.1 million), which are financed in accordance with the treasury strategy. A generally high degree of liquidity characterizes these items.

CHF 34.5 million (prior year: CHF 50.3 million) of these will not be due within the next twelve months.



15 Other accounts receivable, prepayments and accrued income2014

CHF m2013

CHF m

Value added tax credits 37.9 38.0

Other accounts receivable

A from third parties 56.8 39.1

A from nonconsolidated companies 1.1 3.9

A from associates 0.4 0.2

A from related parties 0.0 2.6

Prepayments and accrued income 22.6 28.1

Allowance for bad debts 0.0 – 0.8

Total 118.8 111.1

16 Marketable securities and derivative financial instrumentsFutures and options were entered into with banks mainly to hedge currency risks. The following positions were open as at December 31, 2014:

16.1 Derivative financial instruments

Contract or underlying principal amount Positive fair values Negative fair values

2014 CHF m

2013 CHF m

2014 CHF m

2013 CHF m

2014 CHF m

2013 CHF m

Currency-related instruments

Forward foreign exchange rate contracts 745.2 584.7 3.6 6.8 16.0 2.0

A held for trading 443.0 222.1 1.4 4.1 7.1 0.6

A cash flow hedges (effective part) 302.2 362.6 2.2 2.7 8.9 1.4

Over the counter currency options 61.7 194.0 0.2 1.6 0.4 0.6

Total of currency-related instruments 806.9 778.7 3.8 8.4 16.4 2.6

Total derivative financial instruments 806.9 778.7 3.8 8.4 16.4 2.6

Thereof included in securities and in shortterm financial liabilities 781.5 738.8 3.7 8.2 15.6 2.6

Thereof included in other longterm financial assets and financial liabilities 25.4 39.9 0.1 0.2 0.8 0.0



USD CHF m

EUR CHF m

Other currencies

CHF m

Total 2014

CHF m

Total 2013

CHF m

Currency-related instruments

Forward foreign exchange rate contracts 256.2 375.1 113.9 745.2 584.7

A held for trading 159.6 172.5 110.9 443.0 222.1

A cash flow hedges 96.6 202.6 3.0 302.2 362.6

Over the counter currency options 13.8 47.9 0.0 61.7 194.0

Total of currency-related instruments 270.0 423.0 113.9 806.9 778.7

Total derivative financial instruments 270.0 423.0 113.9 806.9 778.7

Positive replacement values are included in securities or longterm financial assets and negative replacement values are included in financial liabilities.

16.2 Marketable securities2014

CHF m2013

CHF m

Equity securities 4.2 4.4

Bonds 10.4 0.0

Derivative financial instruments 3.7 8.2

Accrued interest on debt securities 0.1 0.0

Other securities 24.9 19.9

Total marketable securities 43.3 32.5



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 2014 2013

Discount rate 2.1 % 2.7 %

Future salary increases 1.4 % 1.4 %

Future pension increases 0.2 % 0.2 %

In the previous year a gain from a change in planned annuity of CHF 25.1 million was recognized in the statement of income, result-ing in a significant decrease in the net defined benefit obligation. Additionally, 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 company’s defined benefit plans using actuarial assumptions deter-mined in accordance with IAS 19 is summarized below.



17.2 Reconciliation of defined benefit obligation and fair value of plan assets2014

CHF m2013

CHF m

Defined benefit obligation at January 1 1,202.7 1,207.8

Interest costs 32.1 32.0

Current service costs (employer) 21.5 25.1

Contributions by plan participants 17.4 21.9

Past service costs 0.0 – 25.1

Benefits (paid) / deposited – 64.9 – 68.9

Business combinations 0.0 – 16.0

Curtailment and settlements 0.0 0.0

Other effects 1.2 0.7

Actuarial (gain) loss on obligation 73.8 24.4

Currency translation adjustments – 0.6 0.8

Defined benefit obligation at December 31 1,283.2 1,202.7

Reconciliation of the fair value of plan assets

Fair value of plan assets at January 1 1,157.7 1,055.8

Expected return on plan assets 30.5 28.7

Contributions by the employer 14.7 100.8

Contributions by plan participants 17.4 21.9

Benefits (paid) / deposited – 64.9 – 68.9

Business combinations 0.0 – 14.3

Curtailment and settlements 0.0 0.0


Return on plan assets excl. interest income 29.7 33.1

Currency translation adjustments 0.0 0.6

Fair value of plan assets at December 31 1,185.1 1,157.7

Actual return on plan assets 60.2 61.8

17.3 Remeasurements of employee benefits2014

CHF m2013

CHF m

Return on plan assets excl. interest income – 29.7 – 33.1

Current year actuarial loss (gain) on benefit obligation:

A change in demographic assumptions 0.0 47.8

A change in financial assumptions 83.4 3.5

A experience adjustments – 9.6 – 26.9

Change in effect of asset ceiling – 2.4 12.0


Remeasurements recognized in other comprehensive income 42.4 3.3

Cumulative amount recognized in other comprehensive income 246.3 203.9



17.4 Reconciliation of the amount recognized in the statement of financial position at year-end

2014 CHF m

2013 CHF m

Present value of funded defined benefit obligation 1,283.2 1,202.7

Fair value of plan assets 1,185.1 1,157.7

Deficit / (surplus) 98.1 45.0

Adjustment to asset ceiling 10.5 12.6

Liability (asset) recognized in the statement of financial position 108.6 57.6

Thereof recognized as separate asset – 2.4 – 5.0

Thereof recognized as separate liability 111.0 62.6

17.5 Pension expenses recognized in the statement of income2014

CHF m2013

CHF m

Current service costs (employer) 22.0 25.1

Net interest employee benefit 1.6 3.4

Past service costs 0.0 – 25.1

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 24.5 4.0

Thereof service costs and administration costs 22.6 0.6

Thereof net interest on the net defined benefit liability (asset) 1.9 3.4

17.6 Best estimate of contributions2015

CHF m

Contributions by the employer 27.8

17.7 Plan assets at fair value consist of2014

CHF m2013

CHF m

Equity instruments third parties 367.4 356.0

Debt instruments third parties 277.3 274.9

Real estate 290.7 284.9

Cash and cash equivalents 150.2 148.9

Others 99.5 93.0

Total plan assets at fair value 1,185.1 1,157.7



The discount rates are determined by reference to 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 availabe 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 % 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 1% in the defined benefit obligation.

The sensitivity analysis is based on realistically possible changes as of the end of the reporting year.

17.8 Information about the significant plans2014

Switzerland2014

Germany2013

Switzerland2013

Germany

Discount rate 2.0 % 2.5 % 2.6 % 3.5 %

Future salary increases 1.5 % 0.0 % 1.5 % 0.0 %

Costs of defined benefit plans 22.4 1.6 1.7 1.8

Remeasurements employee benefits 32.2 8.4 4.6 – 0.5

17.9 Defined contribution plan2014

CHF m2013

CHF m

Expenses for defined contribution plan 5.8 5.6

18 Short- and long-term provisionsProvisions for

warranties CHF m

Provisions for personnel expenses

CHF m

Other provisions

CHF m2014

CHF m2013

CHF m

January 1 40.6 32.2 17.6 90.4 108.8

Additions 23.1 5.4 18.2 46.7 44.7

Utilization – 15.7 – 9.3 – 13.8 – 38.8 – 46.4

Release – 7.1 – 2.9 – 2.4 – 12.4 – 15.7

Changes in the scope of consolidation 0.0 0.6 0.0 0.6 – 0.3

Reclassification 0.0 0.2 – 0.2 0.0 0.3

Present value adjustment 0.0 0.0 0.0 0.0 0.0

Translation differences – 0.3 – 0.1 – 0.2 – 0.6 – 1.0

December 31 40.6 26.1 19.2 85.9 90.4

Thereof short-term 33.9 9.0 17.2 60.1 62.8

Thereof long-term 6.7 17.1 2.0 25.8 27.6

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 12.1 million mainly in Germany and Spain.

Approximately 39 % (prior year: 29 %) of the cash out-flows of the long-term provisions are expected to materialize within the next three years.



19 Share capitalAs of December 31, 2014 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 payable2014

CHF m2013

CHF m

A to third parties 193.0 191.8

A to associates 1.4 1.4

A to non-consolidated companies 0.7 0.8

A to related parties 1.7 1.9

Total 196.8 195.9

21 Other short-term liabilities, accruals and deferred income2014

CHF m2013

CHF m

Value added tax owed 18.7 13.0

Advance payments 132.5 137.9

Other liabilities

A to third parties 34.7 42.1

A to non-consolidated companies 2.1 1.9

A to related parties 14.3 28.0

Personnel related accruals 72.2 60.8

Other accruals and deferred income 66.6 69.7

Total 341.1 353.4



22 Additions and disposals of Group companiesBook value

2014 CHF m

Market value 2014

CHF m

Market value 2013

CHF m

Cash and cash equivalents 2.9 2.9 – 2.6

Trade accounts receivable 2.3 2.3 3.4

Other receivables 0.8 0.9 – 12.9

Inventories 5.9 6.1 0.6

Net assets of production orders in progress 0.0 0.0 11.2

Current assets 11.9 12.2 – 0.3

Property, plant and equipment 0.9 0.9 2.5

Intangible assets 4.9 7.1 3.9

Financial assets 0.0 0.0 0.2

Deferred tax asset 0.0 0.6 – 0.3

Non-current assets 5.8 8.6 6.3

Trade accounts payable – 5.4 – 5.4 – 14.9

Net liabilities of production orders in progress 0.0 0.0 2.3

Short-term provisions 0.0 0.0 0.0

Other short-term liabilities, accruals and deferred income – 6.7 – 7.2 – 1.6

Current liabilities and provisions – 12.1 – 12.6 – 14.2

Deferred tax liabilities – 0.4 – 1.5 – 1.0

Non-current liabilities and provisions 0.0 0.0 1.5

Non-current liabilities and provisions – 0.4 – 1.5 0.5

Change in net assets 5.2 6.7 – 7.7

Non-controlling interests – 1.8 0.0

Goodwill arising on acquisitions 8.8 5.8

Gain on sale of Business 0.0 – 22.5

Addition (+) to- / disposal (–) from the Group 13.7 – 24.4

Outstanding sale / purchase price payment and other non-cash items 0.0 – 22.0

Cash disposed (–) / acquired (+) 2.9 – 2.6

Cash flow from changes in the scope of consolidation – 10.8 – 0.2

The goodwill in the amount of CHF 8.8 million (prior year: CHF 5.8 mil-lion) comprises the value of expected synergies arising from the acquisitions.

In the reporting period, the acquisition of Wuhan Mingbo Electro-mechanical Equipment Co. Ltd., China, with an addition to the Group in the amount of CHF 9.8 million had the most substantial impact.

As in prior year, the acquisition related costs were not material. They were recognized as other operating expenses in the statement of income.



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 acquistion 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 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.

2013Acquisition of Bühler Haguenau S.A.S. in Haguenau, France. On Jan-uary 8, 2013 the Group acquired 100 % of the shares in Maes SA which was subsequently renamed. The company provides customer services for the grain milling market in France.

Establishment of Buhler Philippines Inc., Philippines. On January 31, 2013 the Group founded Buhler Philippines Inc. with a capital of PHP 9.0 million. The company conducts sales activities and provides ser-vices to our customers in Philippines.

Establishment of Buhler Farmila Vietnam Ltd., Vietnam. On Febru-ary 7, 2013 the Group founded Buhler Farmila Vietnam Ltd. with a total capital of VND 41,760 million and a 96 % ownership. The com-pany conducts sales activities and provides services to our custom-ers in Vietnam.

Establishment of Buhler (Cambodia) Ltd., Cambodia. On May 21, 2013 the Group founded Buhler Cambodia Ltd Inc. with a capital of KHR 200.0 million. The company conducts sales activities and pro-vides services to our customers in Cambodia.

Acquisition of Wuxi NutriRice Co. Ltd., China. On June 7, 2013 the Group acquired 50 % shares from DSM joint venture partner leading to a 100 % shareholding. The company produces and sells fortified rice kernels, a highly innovative nutrition process aimed at reducing deficiencies caused by malnutrition.

Establishment of Buhler Limited., Nigeria. On October 24, 2013 the Group founded Buhler Ltd. with a capital of NGN 15.0 million. The company provides services to our customers in Nigeria.

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 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 published indices relating to specific commodities. Past actual raw materials 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, 2014 support the value of the carrying amount. In prior year, an impairment of CHF 18.3 million was recognized due to the reorganization and the underperformance of the Leybold busi-ness.

Sensitivity to changes in assumptions. A possible increase in the discount rate of 1 percentage point would result in an impairment of CHF 4.2 million (prior year: CHF 12.7 million). A drop in sales of 5 percentage points would cause the carrying amount to exceed its recoverable amount by CHF 6.6 million (prior year: CHF 19.2 million).

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 %

Bühler Haguenau S.A.S., Haguenau 5.7 9.4 % 0.9 %

Wuhan Mingbo Electromechanical Equipment Co. Ltd., Wuhan 6.4 11.9 % 3.1 %

Others 8.7 10.4 % – 12.3 % 0.9 % – 3.5 %

Total at December 31, 2014 243.4

Goodwill 2013Book value

CHF m

Base data used

Discount rate Growth rate

Leybold Optics Verwaltungs GmbH, Alzenau 89.7 10.7 % 1.2 %

Buhler Aeroglide Corporation, Cary 55.4 10.7 % 1.2 %

Bühler Deutschland GmbH, Beilngries 42.1 10.7 % 1.2 %

Bühler Barth GmbH, Freiberg a.N. 18.2 10.7 % 1.2 %

Buhler Yijiete Color Sorting Machinery (Hefei) Co. Ltd., Hefei 7.0 11.7 % 3.1 %

Bangsheng Bio-Technology Co. Ltd., Guangzhou 6.6 11.7 % 3.1 %

Bühler Haguenau S.A.S., Haguenau 5.8 11.1 % 0.9 %

Others 6.1 10.7 % – 12.7 % 0.9 % – 3.1 %

Total at December 31, 2013 230.9

24 Contingent liabilities2014

CHF m2013

CHF m

Sureties, guarantees and other obligations 0.7 0.5

Total 0.7 0.5



25 Off-balance sheet obligations under operating leases2014

CHF m2013

CHF m

Leasing obligation up to 1 year 18.3 22.1

Leasing obligation as of 1– 5 years 26.4 21.0

Leasing obligation over 5 years 7.1 7.0

Total 51.8 50.1

This item mainly includes obligations under long-term leasing agree-ments relating to properties in Brazil, Germany, Switzerland and China.

26 Assets pledged or assigned to secure own liabilitiesIn 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 1.3 mill ion respectively (prior year: CHF 45.0 mill ion and CHF 0.8 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 98.9 million (prior year: CHF 108.6 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 139.1 million) are disclosed under long-term financial l iabil it ies. Liabil it ies to pension plans amounted to CHF 27.0 million as per 2014 (prior year: CHF 54.3 mil-lion) and are mainly related to a comprehensive restructuring of the Swiss pension fund. From this amount CHF 13.5 million (prior year: 27 million) are shown under long-term financial liabilities whereas CHF 13.5 million (prior year: 27.3 million) are included in 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 7.2 million (prior year: CHF 8.1 million). In addition, pension and social security contributions of CHF 1.0 mil-lion (prior year: CHF 1.1 million) are recorded as expense. The provi-sions for other long-term benefits amount to CHF 1.6 million (prior year: CHF 2.0 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. In 2012, the con-struction of a new Die Casting factory in China has been subsidised 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 another payment of CHF 1.6 million is expected to be received in 2015. In 2014, the Group received no government grants (prior year: CHF 0.4 million).



30 Significant group companies

Name of company Country

Share capital in millions of local currency

Participation rate

B Production C Engineering B Distribution C Services / Financing Held by

Switzerland

Bühler Holding AG, Uzwil CH CHF 15.0 C

Bühler AG, Uzwil CH CHF 30.0 100.0 % B C B C Bühler Holding AG, Uzwil

Bühler-Immo Betriebs AG, Uzwil CH CHF 0.1 100.0 % C 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 % C B Bühler Holding AG, Uzwil

Europe

Bühler CZ s.r.o., Zamberk CZ CZK 265.2 100.0 % B B Bühler Holding AG, Uzwil

Bühler Deutschland GmbH, Beilngries DE EUR 0.025 100.0 % C Bühler AG, Uzwil

Bühler GmbH, Beilngries DE EUR 16.0 100.0 % B C B 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 % B C B

Bühler Deutschland Holding GmbH, Braunschweig

Bühler GmbH, Bergneustadt DE EUR 0.275 100.0 % B C B


Bühler GmbH, Braunschweig DE EUR 12.629 100.0 % B C B


Leybold Optics Verwaltungs GmbH, Alzenau DE EUR 0.444 100.0 % C Bühler AG, Uzwil

Leybold Optics GmbH, Alzenau DE EUR 0.05 100.0 % B C B

Leybold Optics Verwaltungs GmbH, Alzenau

Buhler S.A., Madrid ES EUR 2.176 100.0 % B C B Bühler Holding AG, Uzwil

Bühler Haguenau S.A.S., Haguenau FR EUR 0.2 100.0 % B B C Bühler Holding AG, Uzwil

Buhler S.A.R.L., Paris FR EUR 2.55 100.0 % C B 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 % C B Buhler UK Holdings Ltd., London

Buhler SORTEX Ltd., London GB GBP 1.25 100.0 % B C B Buhler UK Holdings Ltd., London

Control Design & Development Ltd., Peterborough GB GBP 0.0001 100.0 % B C B Buhler UK Holdings Ltd., London

SORTEX Ltd., London GB GBP 0.001 100.0 % B Buhler UK Holdings Ltd., London

Buhler Brescia Presse S.R.L., Brescia IT EUR 0.01 100.0 % B Bühler AG, Uzwil

Buhler S.p.A., Milano IT EUR 2.665 100.0 % C B Bühler Holding AG, Uzwil

Bühler B.V., Oldenzaal NL EUR 0.034 100.0 % B B Bühler Holding AG, Uzwil





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 % B C B Buhler US Holding Inc., Minneapolis

Buhler Inc., Minneapolis US USD 3.2 100.0 % B C B Buhler US Holding Inc., Minneapolis

BuhlerPrince Inc., Holland US USD 0.375 100.0 % B C B Buhler US Holding Inc., Minneapolis

Buhler SORTEX Inc., Stockton US USD 1.0 100.0 % B Buhler US Holding Inc., Minneapolis

Leybold Optics USA Inc., Cary US USD 0.1 100.0 % B B Buhler US Holding Inc., Minneapolis

Latin America

Buhler S.A., Buenos Aires AR ARS 1.1 100.0 % C B Bühler Holding AG, Uzwil

Buhler S.A., Joinville BR BRL 20.685 100.0 % C B Bühler Holding AG, Uzwil

Bühler Sanmak Industria de Maquinas S.A., Blumenau BR BRL 10.0 100.0 % B B Bühler Holding AG, Uzwil

Buhler S.A. de C.V., Metepec MX MXN 50.0 100.0 % C B Bühler Holding AG, Uzwil

Middle East and Africa

Buhler (Private Joint Stock Co.), Teheran IR IRR 9250,0 100.0 % B C B Bühler Holding AG, Uzwil

Buhler Limited, Nairobi KE KES 150.0 100.0 % B Bühler Holding AG, Uzwil

Buhler (Pty) Ltd., Johannesburg ZA ZAR 11.371 100.0 % B C B Bühler Holding AG, Uzwil

Buhler Properties (Pty) Ltd., Johannesburg ZA ZAR 0.0001 100.0 % C Buhler (Pty) Ltd., Johannesburg





Participation rate


Asia

Bangsheng Bio-Technology Co. Ltd., Guangzhou CN CNY 8.51 100.0 % B B Bühler Holding AG, Uzwil

Buhler (Changzhou) Machinery Co. Ltd., Liyang City CN CNY 80.0 80.0 % B B Bühler Holding AG, Uzwil

Buhler (China) Holding Co. Ltd., Wuxi CN USD 65.5 100.0 % C Bühler Holding AG, Uzwil

Buhler (China) Machinery Manufacturing Co. Ltd., Wuxi CN CNY 100.0 100.0 % B Buhler (China) Holding Co. Ltd., Wuxi

Buhler (Guangzhou) Food Machinery Co. Ltd., Guangzhou City CN CNY 51.0 80.0 % B B Buhler (China) Holding Co. Ltd., Wuxi

Buhler (Wuxi) Commercial Co. Ltd., Wuxi CN USD 5.5 100.0 % B C B C Buhler (China) Holding Co. Ltd., Wuxi

Buhler Yijiete Color Sorting Machinery (Hefei) Co. Ltd., Hefei CN CNY 18.0 70.0 % B C B Buhler (China) Holding Co. Ltd., Wuxi

Wuhan Mingbo Electromechanical Equipment Co. Ltd., Wuhan CN CNY 5.0 80.0 % B C B Buhler (China) Holding Co. Ltd., Wuxi

Buhler Equipment (Xian) Co. Ltd., Xi’an CN CNY 28.0 100.0 % B B Bühler Holding AG, Uzwil

Buhler Food Ingredients (Guangzhou) Co. Ltd., Guangzhou CN USD 3.8 100.0 % B B Bühler Holding AG, Uzwil

Buhler Mechanical Equipment (Shenzhen) Co. Ltd., Shenzhen CN USD 0.6 100.0 % B B Bühler Holding AG, Uzwil

Wuxi Buhler Machinery Manufacturing Co. Ltd., Wuxi CN USD 23.0 51.0 % B B C Bühler Holding AG, Uzwil

Leybold Optics (Beijing) Co. Ltd., Beijing CN CNY 10.1 100.0 % B Bühler Alzenau GmbH, Alzenau

Buhler (India) Private Ltd., Bangalore IN INR 100.0 100.0 % B C B Bühler Holding AG, Uzwil

Buhler K.K., Yokohama JP JPY 250.0 100.0 % C B Bühler Holding AG, Uzwil

Buhler Asia Private Limited., Singapore SG USD 1.0 100.0 % C B C Bühler Holding AG, Uzwil

Buhler Malaysia Sdn. Bhd., Kuala Lumpur MY MYR 1.0 100.0 % C B Buhler Asia Private Limited, Singapore

Buhler (Thailand) Ltd., Bangkok TH THB 110.0 100.0 % C B Buhler Asia Private Limited, Singapore

PT Buhler Indonesia, Jakarta ID IDR 10.5 100.0 % C B Buhler Asia Private Limited, Singapore



31 Proposal of the Board of DirectorsAt 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 2014 (prior year: CHF 18.0 million).

32 Release for publication of the consolidated financial statementsThe consolidated financial statements were released for publication by the Board of Directors of the Bühler Holding AG on February 9, 2015.

33 Subsequent eventsAcquisition of remaining 20 % of shares in Buhler (Changzhou) Ma-chinery Co. Ltd. On January 18, 2015 the Group acquired the remain-ing 20 % shares in Buhler (Changzhou) Machinery Co. Ltd.

In 2006 at the initial acquisition date, the goal of the minority share-holding was to secure the management of the company. After nine years, four out of seven management members are not actively en-gaged in the company anymore and more will retire. The minority shareholders jointly agreed that all shareholders, also management members, sell their shares to the Group.

Swiss national bank abandons minimum exchange rate. On Janu-ary 15, 2015 the Swiss National Bank (SNB) decided to stop enforc-ing a minimum exchange rate of CHF 1.20 per Euro, which resulted in an immediate significant drop of the Euro against the Swiss Franc. In the days after the SNB decision, the exchange rate stabilized around parity.

Assuming an exchange rate of CHF 1 per Euro would not have a sig-nificant impact on the Balance Sheet as per December 31, 2014. The Management continues to closely monitor the situation and will take the necessary decisions and actions to safeguard and strengthen the competitiveness of the Group.



Report of the statutory auditor on the consolidated financial statements

To the General Meeting of Bühler Holding AG, Uzwil, St. Gallen, February 9, 2015

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 79 to 119) for the year ended December 31, 2014.

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, 2014 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

Daniel Wüst Bernhard JoehrLicensed audit expert Licensed audit expert(Auditor in charge)


PublisherBühler AG, 9240 Uzwil

Concept/designNew Identity Ltd., Basel

Publishing systemns.publish by Multimedia Solutions AG Prepress: Neidhart + Schön AG

Copywriting and editingBühler AGCorporate Communications, UzwilSimone Hofer, ZürichBoris Schneider, Zürich

PhotographsIra Block, National GeographicJim Richardson, National Geographic Thomas Schuppisser, ZürichGeorge Steinmetz, National Geographic Raffael Waldner, Zürich

LithographyRoger Bahcic, Zürich

Printersgalledia ag, Flawil

This Annual Report is published in English and in German. The binding version is English.

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Bühler AGCH-9240 Uzwil, SwitzerlandT +41 71 955 11 11F +41 71 955 33 79www.buhlergroup.com

Documents

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