2013, continuously innovating.

2013, continuouslyinnovating.

Annual Report

Bühler is a specialist and technology partner for plant, equipment, and services for processing basic foods and for manufacturing advanced materials. The Group holds leading market positions worldwide in technologies and processes for transforming grain into flour and feeds, making pasta and chocolate as well as in the field of aluminum die casting.

The Group’s core technologies lie in the area of mechanical and thermal process engineering. With the expertise and experience it has accumulated over more than 150 years, Bühler time and again rolls out unique and innovative solutions for its customers, thus enabling their market success. Over the decades, Bühler has acquired a reputation as a reliable partner, thanks to its declared commitment to quality and its global presence.

Bühler Group operates in over 140 countries, has a global payroll of over 10,000, and in fiscal 2013 generated sales revenues (turnover) of CHF 2,322 million.

Corporate profile.

2 Bühler Annual Report 2013

Key figures.

in CHF m Change in %

2011 2012 2013

Order intake ¹ 2,233 2,345 + 0.8 2,363

Order backlog 31.12. 1,329 1,347 – 2.1 1,319

Sales revenue ² 2,131 2,409 – 3.6 2,322

EBITDA 261 218 – 1.5 215

EBITDA margin in % 12.3 9.1 9.3

EBIT 218 168 – 17.1 139

EBIT margin in % 10.2 7.0 6.0

Net profit 163 155 – 20.9 123

Net profit in % 7.7 6.4 5.3

Investments in tangible and intangible assets 63 82 + 7.2 88

R&D costs 89 104 + 4.6 109

R&D costs in % 4.2 4.3 4.7

Equity ratio 38.1 41.2 44.6

Net liquidity 518 317 377

Return on Net Operating Assets in % (RONOA) 51.1 27.1 17.6

Employees as of 31.12. (exclusive of temporary staff and apprentices) 8,828 10,346 3.0 10,659

1 Order intake adjusted for exchange rates + 2.3 % 2,3972 Sales revenue adjusted for exchange rates – 2.2 % 2,355

3

1

2

31

2

3

4

5

2011

2012

2013

2011

2012

2013

2011

2012

2013

2011

2012

2013

Order intake

2,233

2,345

2 ,363

Key figures

group ( in CHf M )

sales by divisions ( in % )

Grain Processing Grain Milling; Feed & Biomass; Sortex & Rice; Grain Logistics

Food Processing Pasta & Extruded Products; Chocolate, Cocoa & Coffee; Aeroglide; Nutrition Solutions

Advanced Materials Die Casting; Grinding & Dispersion; Leybold Optics

sales by regions ( in % )

divisions and business units

EBIT Net profit

218 163

168 155

139 123

Sales revenue

2,131

2,409

2,322

1 Grain Processing 61 %2 Food Processing 21 %3 Advanced Materials 18 %

1 North America 14 %2 South America 7 %3 Europe 30 %4 Middle East & Africa 20 %5 Asia 29 %


1 Corporate Profile 2 Key Figures 6 Foreword 10 Global production and engineering sites 12 Global sales and services sites 14 Fiscal 2013

15 Divisions 16 Grain Processing 32 Food Processing 48 Advanced Materials

61 Organization 62 The Executive Board 64 The Board of Directors 66 Organization chart

67 Sustainability at Bühler 68 Foundation of business development 72 Social sustainability 77 Ecological sustainability 82 Economic sustainability

85 Financial report 86 Financial commentary 88 Financial report Bühler Group 127 Financial statements Bühler Holding AG

Content.

5

18 24

34 50

sri KrisHna MetCoM ltd., indiaA super silky finish rice at full installed capacity which sets a new quality benchmark in the market.

rosHen Corporation, uKraineFlexible complete installation for producing compound masses and chocolate plus cocoa liquor grinding and mixing including process control.

letong CHeMiCal Co. ltd., CHina 12 mills which guarantee the reproducibility of the ink quality at a top level while at the same time reducing consumption of expensive raw materials.

agravis raiffeisen ag, gerMany More output, less energy was the assignment for developing the Kubex T – and this requirement was fully satisfied.

Content


dear sir or MadaM.Fiscal 2013 shows a widely varying picture in the development of the individual business units and market regions. It is therefore all but impossible to make any general statements on it. In all, growth and earnings of Bühler Group fell short of expectations. Compared with the previous year, the business result was burdened by the integration of an acquisition and unsatisfactory management of individual customer projects. The most recent investments made to strengthen the organization’s local presence in line with its long-term strategy did not yet bear fruit as expected in the year under review. But they doubtlessly will have an impact on the future, providing the foundations for growth and sustainable profitability.

Stable order intake – slightly lower sales revenue.The order intake of CHF 2,363 million exceeded the value of a year ago by 1 %. Sales revenue for the year 2013 was CHF 2,322 million or 3.6 % lower than in the strong previous year; in organic terms, the change was – 3 %. Order intake by business units increased for the Chocolate, Die Casting, and Grain Logistics business units at substantial rates of over 10 %. On the other hand, less orders were received by Grain Milling, Feed, Pasta & Extruded Products, and Aeroglide – albeit after very strong previous years.

Varying development also by regions.Just like the business units, development by regions also shows a very inconsistent picture. Initial positive signs in Europe were balanced by continuing political and economic uncertainties in the Near East and in Africa as well as a reluctance to invest in many indebted countries. Thus, order intake in North America was 17 % below the level of a year ago, though after an all-time high in the record year of 2012. The downside included also the Middle East and Africa (–14 %) plus India (–11 %), regions that additionally had to struggle with the devaluation of local currencies. On the other hand, Bühler received 23 % more new orders in South America, which is a new record. Following a disappointing previous year, Europe grew by 11 % in 2013. Asia achieved an outstanding plus with +12 %.

Lower profitability, healthy financial situation.With CHF 139 million or 6 % of sales, the EBIT failed to keep up with the result of the previous year. One reason for this has to do with the strategic optimization of the portfolios in the Advanced Materials division, which entailed associated integration and restructuring costs. The result was in particular depressed by the fact that the planned sale of the Solar segment of Leybold Optics failed to materialize. Another one-time effect with a negative impact on total corporate profitability was un satisfactory project management in individual business units.

As a consequence, a net profit of CHF 123 million was achieved, or 5.3 % of sales revenue. The operating cash flow was CHF 124 million. The healthy financial situation of the organization was strengthened by net liquidity of CHF 377 million as of the end of 2013.

varying developMent.

7

Urs Bühler, Chairman of the Board (left), and Calvin Grieder, Chief Executive Officer (right),in the Bühler Customer Center in Uzwil.

Foreword


Investment in the future.The exceptional personnel resources built up as part of our global localization strategy affected Bühler Group’s productivity. Though the Customer Service business grew 8 % and thus at an above-average rate, the expected impact of these considerable investments did not materialize. Although signs of a shrinking EBIT margin became apparent in the course of the year, Bühler adhered to its high level of spending on research and development of over CHF 100 million.

Changes in the Board of Directors.As announced last year, Urs Bühler is leaving the Board of Directors after 33 years and Hans J. Löliger after 10 years on the occasion of the General Meeting in 2014 because they have reached the statutory age limit. We seize this as an opportunity to extend our warmest thanks to both gentlemen for the highly valued services they have rendered to Bühler (see also separate comments). At the General Meeting in 2014, Calvin Grieder will be appointed Chairman of the Board in addition to his function as the CEO. Peter Quadri, a current Member of the Board, will be appointed Vice-Chairman. Moreover, as also announced at an earlier date, Karin Bühler will join the Board as the first of the three daughters of Urs Bühler. This will ensure the continuity of Bühler as a 100 %-family-owned company. Plans exist to elect more members to the Board of Directors in the coming months.

Outlook.At the start of 2014, Bühler had a solid backlog of orders of CHF 1.3 billion. This provides the potential for continuing growth on condition that the pace of industrial capital investment will pick up again. This appraisal is also based on the fact that Bühler operates in markets which are likely to continue to profit from powerful global social trends. Such trends are, in particular, increasing demand for safe, healthy, and affordable foods (Food Processing and Grain Processing divisions) and a higher requirement for smart mobility (Advanced Materials division). Demand in these areas is bolstered by growing prosperity in numerous emerging countries and for resource-efficient solutions – an aspect on which Bühler has been setting a very sharp focus for many years in the context of its development and innovation strategy. Details on this are for the first time given by Bühler in its Sustainability Report start-ing on page 67.

9

Our challenges.Bühler will systematically continue its localization strategy and satisfy specific customer needs locally by providing local products and services in order to gain or retain local market leadership. The main challenge will be to build and strengthen the local employee base and to ensure that these employees are adequately trained. Moreover, we will resolutely continue our permanently high commitment to innovation. Thus, we are planning to spend roughly 4 % of our revenue or CHF 100 million on research and development also in the future. What is more, Bühler strives to continuously improve its operating excellence in order to further increase its productivity and flexibility. Since we are not expecting any major one-time effects in 2014 and are confident that our investments in the markets will increasingly bear fruit, Bühler continues to adhere to its EBIT target bandwidth of 8 % to 12 % for the year 2014.

Thanks.On behalf of the Board of Directors and the Executive Board, we thank our employees across the globe for their yet again dedicated and committed efforts in a challenging year. We thank our customers and other business partners for the trust they have placed in our organization over and over again.

Foreword

Over fOrty years Of service tO Bühler.Urs Bühler joined our organization in 1969 and headed it as the CEO from 1986 through 2000. He was first elected to the Board of Directors in 1981, chairing it from 1994 onward. During this time, he systematically continued to develop Bühler into a global technology group by successfully entering up-and-coming, new industries with innovative technologies and a “feel” for new markets. Urs Bühler has committed the organization to sustainable development in the fourth family generation. He has followed this path with keen far-sightedness and firmly embedded his vision of a long-term effort in the hearts of all Bühler employees. For this, Bühler Group owes him profound thanks and wishes him all the best for the future.

Calvin GriederChief Executive Officer

Urs BühlerChairman of the Board

10

uzwil.braunschweig.bangalore.wuxi.joinville.

Minneapolis

Holland

BlumenauJoinville

Buenos Aires

Metepec

Cary

soutH aMeriCanortH aMeriCa

global produCtion and engineering sites. IN THE REGIONS – FOR THE REGIONS.

Bühler develops and manufactures technically sophisticated solutions in six main factories and at additional twenty sites around the world: They are all committed to maintaining the same stringent quality standards along the entire supply chain. This quality leadership is manifested in quanti-fiable, transparent quality targets which are defined in an open dialog with customers.

Development as well as production services are aligned with customers’ needs in the respective regions and are if possible performed locally.

Bühler Annual Report 2013

11

Production

Engineering

Production and Engineering

LondonOldenzaal

Uzwil

Malmö

Madrid

Johannesburg

Bangalore

New Delhi

Astara

Tehran

Changzhou

Yokohama

WuxiHefei

Xi’an

Beijing

Shenzhen

Long An Province

Singapore

Milan

Paris

Moscow

Mechelen

Braunschweig

europe Middle east & afriCa asia

Alzenau, Beilngries, Bergneustadt, Döbeln, Freiberg a.N., Prague, Zamberk

Global Production and Engineering


europe

Middle east & afriCa

AT SalzburgBE MechelenBY MinskCH Uzwil St. GallenCZ Prague ZamberkDE Alzenau Beilngries Bergneustadt Braunschweig Döbeln Freiberg a.N. Saarbrücken ViernheimDK VejleES Lerida Madrid San Feliu de LlobregatFR Haguenau Paris Villebon- sur-Yvette

GB London Manchester Peterborough StamfordGR AthensHU BudapestIT Castel Mella Legnano MilanoKZ Almaty AstanaNL OldenzaalPL WarsawPT Alcabideche OvarRO Bucharest GiarmataRS Novi SadRU MoscowSE MalmöUA Kiev

PK LahoreSA RiyadhSD KhartoumTG LoméTR Izmir IstanbulZA JohannesburgZM Lusaka

DZ Hydra/Alger EG CairoIR Astara TehranKE NairobiLB BeirutLY TripoliMA CasablancaNG Lagos

global sales and serviCe sites. CLOSE TO CUSTOMERS.

Some of its own 90 affiliates and branch offices worldwide and its presence in 140 countries make Bühler available to its customers whenever needed. Thanks to this closeness, Bühler understands its customers’ culture as well as their business and ecological needs. More than 65 Service Stations offering services meeting local customers’ needs – for example spare parts sales, overhauls, or repairs – are an important element in the comprehen-sive range of services provided by Bühler. Customers can rely on Bühler as a global as well as local partner throughout the lifecycles of their plants.

13Global Sales and Service

nortH aMeriCa

soutH aMeriCa

asia

AU Melbourne BD DhakaCN Changji Changzhou Chengdu Dongguan Fuyang Guangzhou Hebei Hefei Beijing Shenzhen Weifang Wuxi Xianjang Xi’an Yanzhou ZhengzhouID JakartaIN Bangalore New Delhi Pune

JP Fukuoka Nagoya Tokyo Osaka YokohamaKH Phnom PenhKR SeoulMM YangonPH ManilaRU Irkutsk NovosibirskSG SingaporeTH Bangkok TW HsinchuVN Ho-Chi-Minh-

City Long An Province

AR Buenos AiresBR Blumenau Cascavel Joinville Porto Alegre Recife Rondonópolis São PauloCL Santiago de Chile CO BogotáVE Caracas

CA MarkhamUS Cary Holland Mahwah Miami Minneapolis Stockton TrevoseMX Metepec San Mateo Mexicaltzingo


innovation CoMpaCt MaiZe grinding solution.The innovative Isigayo compact mill offers dual potential in one unit – of stimulating business in the maize (corn) mill-ing market for new players while at the same time improv-ing food security in rural areas in Africa. This new develop-ment, which emerged from the internal Bühler “Innovation Challenge” competition, is based on the idea that it makes sense for farmers to process their maize in those areas where it is grown and consumed. The preassembled mill, which can be installed within one week, promotes the es-tablishment of new maize mills and maize processing op-erations. But it also aims at smallholdings, communities, and cooperatives. This enables the related value chains to be shortened so that the maize meal losses of up to 30 % incurred up to now between harvest and storage/produc-tion can be eliminated.

neW appliCation a neW player in tHe asian noodles MarKet.In January 2014, Bühler acquired an 80 % stake in Yaoxian Machinery Guangzhou which holds a strong position in the field of Asian noodles production systems. The com-pany operates both in the area of instant and non-instant noodle equipment and has a broad portfolio of products and technologies. In addition to systems for processing the popular deep-fried instant and stick noodles, systems are also manufactured for making non-deep-fried instant noodles and noodles based on rice flour. Yaoxian has some 50 employees, and generates annual sales of about CHF 3 million. Most of its production is currently exported to customers in Southeast Asia. But as this market is growing worldwide, the company also plans to expand in an initial stage into China and the Indian Subcontinent and then to move on to additional regions.

Cooperation Joining partners in food solutions.In May 2013, Bühler was the most recent member to join the “Partners in Food Solutions” (PFS) consortium. As a nonprofit organization, PFS shares food processing and grain milling expertise with companies in developing coun-tries. With its comprehensive know-how in plant design

fisCal 2013.MILESTONES.

and process engineering, Bühler is in an excellent position to further strengthen the already respectable knowledge base of the other members, which include the reputed companies General Mills, Cargill, and Royal DSM of the Netherlands. The consortium utilizes the entire wealth of experience of these partners to meet the challenges of food security and nutrition in developing countries – first and foremost in Africa. The experts of the member coun-tries, who are all volunteers, collaborate through a sustain-able knowledge transfer system with African food proces-sors and grain millers.

disinvestMent sale of MaJority staKe in tHerMal proCesses.In the year under review, Bühler sold a majority stake in Bühler Thermal Processes AG (BPAG), a provider of PET solid-state polycondensation technology that has been an autonomous entity since 2012, to Cross Equity, a Swiss private equity company. The purchaser has a proven track record in the development of mid-size companies in Eu-rope and can also inject fresh know-how into BPAG’s board of directors. All the company’s employees and man-agers have been retained. This ensures that the expertise that has made BPAG the global provider in this industry will be maintained. Bühler continues to hold a substantial stake in the company and supports its business as a part-ner of the new majority owners.

global CustoMer proXiMity eXpansion and strengtHening in afriCa and asia.In the market for the market. This philosophy, to which Bühler has adhered for years now, means that the company strives to get ever-closer to its customers by continuously setting up new offices around the globe. The most recent examples of this effort are the new bases that have been established especially in Asia and Africa, including Nige-ria and Sudan as well as Myanmar and Cambodia. This regional strengthening is part of a long-term strategy to ensure timely presence in markets which – though they currently play a rather subordinate role in terms of volume – offer promising long-term prospects.

divisions.

16 Grain Processing 32 Food Processing 48 Advanced Materials


overvieW 2013.Following several years of continuous growth, overall business developed at a slower pace in 2013 for the Grain Processing division, Bühler Group’s most important divi-sion in terms of sales revenue (turnover). This is primarily due to the effects of the unsatisfactory economic develop-ment in most European markets and was unexpected to this extent. In all, sales reached CHF 1334 million or about 5 % less than a year ago. By business units, Sortex & Rice achieved very encouraging growth in revenues, whereas the sales achieved by Grain Milling and Feed & Biomass were slightly lower and those of Grain Logistics markedly lower than a year before.

It was not possible to fully maintain order intake at the level of the previous year, either. Division-wide, orders were received for CHF 1369 million or 3 % less than in 2012. Be-side a general reluctance to invest, in particular in Europe, a number of large-scale projects were postponed. In Asia and in South America, order intake increased.

developMent of tHe business units.After brisk growth in 2012, the Grain Milling business unit achieved sales of CHF 719 million in the year under review, or 5 % less than a year before. The decline is primarily attributable to the disappointing development of almost all European markets, whereas other market regions suc-ceeded in maintaining a high level. In all, Bühler managed to maintain its market share. Order intake fell 7 % short of last year’s value, which is also mainly due to the Europe region.

In the context of its localization strategy, Bühler developed a new solution in the year under review in collaboration with its Indian affiliate for producing atta flour, the basic ingredient of flat bread. The new process constitutes a substantial advance in terms of food safety, maintenance, and energy consumption. At the same time, it serves Bühler as a platform for multiplying the expertise thereby acquired for making basic flours in developing countries. In Germany, Bühler completed and commissioned a trend-setting large-scale bakery.

Following marked increases in the previous years, the Feed & Biomass business unit’s sales revenue shrank by

8 % to CHF 242 million in 2013. Order intake dropped by about 8 % from a year ago, with the Oilseed segment however achieving a significant rise. The decline in this business unit is also primarily due to the European mar-kets, including the CIS. North and South America, Africa, and India also fell short of expectations. This contraction was partly offset by the double-digit growth achieved in South East Asia. The new XXL Kubex and Granulex pellet mill lines were supplemented along the process chain with conditioners and dryers and successfully positioned in the target markets. In the Aqua segment, strategic develop-ments were implemented with key accounts in North Europe for salmon and in Japan for tuna. The focus on the drying process in Oilseed was reflected by customer orders and a lively market interest in further developments.

The Sortex & Rice business unit’s result was very uplifting. The unit increased its sales by 11% to CHF 212 million and also boosted its order intake by 6 %. Unlike a year ago, and also unlike the other business units, sales picked up again very briskly in the European markets, too. In the Rice business, Bühler can look back on some-thing of a record year. One very important contributor to this success was the newly launched Ultraline, a rice processing solution developed in India, and the strengthening of the sales organization in South East Asia. The Sorters segment, too, managed to maintain and even increase its strong global position in the fierce-ly contested market by rolling out new models, for example for cleaning contaminated wheat, corn (maize), and peanuts.

The Grain Logistics business unit suffered a slump in sales revenue of 15 % to CHF 161 million. The year began with a low backlog of orders for large-scale projects in the Malting and Ship Unloading & Loading segments. The Grain Collecting Points business acquired three years ago (Schmidt-Seeger) once again remained surprisingly stable also in Europe. The Malting business did not pick up be-fore the second half-year. Order intake increased by 13 %, which is due both to the Europe region and the markets in China, India, and South East Asia. One important con-tributor to this success was the transfer of key collection point components plus grain precleaning and drying technology to the target regions of Asia, Africa, and South America.

grain proCessing.CHALLENGING FISCAL YEAR.

17

innovation and developMent.In the year under review, the Grain Processing division invested CHF 52 million in various research and develop-ment projects both for further developments and for new products and processes. Among other projects, the Grain Milling business unit launched a new online NIR sensor system that greatly facilitates the monitoring of raw materi-als, intermediates, and end products. Efforts to fine-tune smart processes were also supported by a newly devel-oped system for taking online particle size distribution measurements. Sortex & Rice will shortly present two com-pletely new optical sorters offering new sorting capabilities and higher throughputs: the Sortex S+ for rice and the Sortex A+ for other commodities. Grain Logistics rolled out a new dryer with markedly higher energy efficiency, thanks to intelligent process control.

total sales grain proCessing sHare of group sales

sHare of business units sales by business units (in CHF m)

Grain Processing

outlooK.Grain Processing started fiscal 2014 with a solid backlog on the order of the previous year. It appears safe to as-sume moderate growth in the European markets following the disappointing result in the year under review. Asia and Africa continue to be characterized by a basically intact growth potential, and the North and South American mar-kets are also likely to develop along positive lines. Momen-tum is also expected from the various large-scale projects that customers put off in the second half-year of the year under review and now stand to generate orders in 2014. Also the numerous new and further developments of the past year are likely to stimulate business in 2014. All business units have started the current fiscal year with a promising product pipeline. In Africa, the new Milling School in Nairobi will be opened, which is expected to lead to a general revitalization of the East African markets. Overall, the geographical diversification that Bühler has pushed in the context of its globalization effort over the past years has proven its worth especially in the year under review. Even if it did not allow the losses in Europe to be fully compensated for by other market regions, they were nevertheless offset to a considerable degree.

2011 2012 2013

Grain Milling 698 756 719

Feed & Biomass 208 265 242

Sortex & Rice 199 191 212

Grain Logistics 205 190 161

Total 1,310 1,402 1,334

1,334 CHF m 61%

54 %

Grain Milling

12 %

Grain Logistics

16 %

Sortex & Rice

18 %

Feed & Biomass

18

1


Rice Milling. Sri Krishna Metcom Ltd.,Ranchi, India.

19

Rice Milling. Sri Krishna Metcom Ltd.,Ranchi, India.

Grain Processing

20

2


1 The single line rice mill sets a new industry standard in producing parboiled rice, maximising yield and minimising product breakage, and delivering consistent product quality.

2 After cleaning and parboiling the paddy is gently husked on TopHusk dehullers and graded on a Rotosort drum grader and then fed to a UltraWhite™ rice whitener. The UltraPoly™ then polishes the white rice giving it a high silky finish.

21Grain Processing

Quality tHrougHout.

About 60 % of the total production of paddy in India is parboiled and worldwide close to 30 %. Advantages of parboiling the paddy are manifold. It reduces grain breakage during milling, greatly improves the vitamins content and other nutrients in the polished rice grain and increases the oil content in the bran. Parboiled rice is further characterized by its low stickiness and high resistance to cooking – properties that are preferred by the region.

The company Sri Krishna Metcom Ltd. started out as rice traders and later entered the production business with two Bühler lines of capacity eight metric tons per hour each. Therefore they know exactly what consumers want. They asked Bühler to construct a new rice mill in the shortest possible time with a capacity of 16 metric tons per hour in a single line, to deliver super silky finish rice which should set a new quality benchmark in the market. The new mill had to be built in the Eastern region of India, in the middle of paddy fields with no industrial development in the vicinity which added to the challenges. The result is a rice mill equipped with state of the art processing technology that is engineered to perfection to maximise yield of rice, minimise product breakage and deliver consistent product quality. The commercial rice production has started in November 2013 and super silky rice output from this plant will further consolidate Sri Krishna’s leadership positioning in the market.

Capacity of

16 METRIC TONS PER HOUR IN A SINGLE LINE

Sri Krishna Metcom Ltd.,Ranchi, Jharkhand, India.

A super silky finish rice at full installed capacity which sets a new quality benchmark in the market.

150,000 KERNELS PER SECONDare checked and sorted.

22

3

4


23

5

Grain Processing

3 The rice is passed through innovative SORTEX optical sorters to remove subtle defects and foreign material.4 New standard for plant sanitation resulting less cleaning and longer maintenance intervals.5 Mr. Gyan Sahu, Director.

24

1


25Grain Processing

Animal Feed. AgRAvIS Raiffeisen Ag, Münster, germany.


teaMing up for top perforManCe.

As far back as four years ago, Bühler developed the pro-totype of the new Kubex T pellet mill in close cooper-ation with its customer AGRAVIS Raiffeisen AG and three additional animal feed manufacturers. The requirement profile of this innovative product was: top performance and at the same time maximized energy efficiency.Since April 2011, such a pellet mill of the latest generation, a Kubex T9, has been operating reliably in the feed production facility of AGRAVIS at its site in Münster. It is part of a HYSYS pelleting system which combines the most advanced hygienizing and compacting tech-nologies. Steam and feed particles are homogeneously mixed at a processing temperature as high as 95 degrees Celsius. This enables the high-quality feed pellets to meet the most rigorous sanitation requirements. The Kubex T9 has been designed for capacities up to 50 metric tons per hour, whereas the particularly powerful Kubex T12 achieves outputs of up to 80 tons of pellets per hour. In comparison to conventional pellet mills, it consumes at least 20 % less energy. AGRAVIS Raiffeisen AG is one of the largest agribusiness, trading, and service companies in Germany. In the animal business field, the company is the partner of farmers, supplying them with formulated (compound) feeds, mineral feeds, and sanitation products. In 15 regional feed manufacturing facilities and affiliated companies, AGRAVIS produced over 3.5 million metric tons of com-pound feeds in 2012.

is the result of the joint development of Bühler, AGRAVIS, and three additional animal feed producers.

20 %ENERGY CONSUMPTION

MINUS

3.5 M METRIC TONS OF FEEDwere produced by AGRAVIS in 2012.

AGRAVIS Raiffeisen AG, Münster, Germany.

More output, less energywas the assignment for developing the Kubex T – and this requirement was fully satisfied.

27

2

1 View of the headquarters in Münster, with the Dortmund-Ems Canal and the company’s loading port in the foreground. 2 The mechanical equipment includes an ABS system for the rollers. This prevents possible roller slippage and thus

operating trouble and machine damage.

Grain Processing

28

3


3 Dominik Süssemilch, miller.4 The Kubex T9 is also capable of processing mashes with high liquids addition rates, high fat contents, or high-fiber products into high-quality pellets.5 Sliding doors on both sides offer easy access to the inside of the machine and allow quick and easy maintenance.

29

4

Grain Processing

30

5


31Grain Processing


food proCessing.PROFITABLE GROWTH.

overvieW 2013.With sales revenue (turnover) of CHF 498 million, the Food Processing division achieved organic growth around 13 %. All business units increased their sales. The improved range of products and services offered by the Customer Service function has met with positive responses by customers and thereby allowed the service business to continue its growth by 8 %. This means that the path of growth has been systematically and successfully followed since 2010.

The division’s order intake for the first time ever passed the CHF 500 million mark, growing by roughly another 7 % as in the previous year. Some 20 % of this volume was gener-ated in the China/South East Asia regions. The strategy of setting a systematic focus on core segments, which was strengthened by targeted innovations, produced respect-able growth. Customers today increasingly perceive the division as a solution provider. The individual business units have further expanded their capabilities to the global platforms of Bühler Group. In particular, the new Applica-tion Centers in the United States, in Europe, and in India and China were important new landmarks and proved their competencies in the development of local solutions in a global environment.

developMent of tHe business units.The sales revenue of the Pasta & Extruded Products busi-ness unit grew by around 16 % to CHF 159 million. The innovations in the Pasta segment have met with success especially in the important Italian market, and market share has been further increased. The Extruded Products segment expanded its position as the number one break-fast cereals equipment supplier. The Application Centers in the United States and Asia gave the business unit appreciable impetus, enabling Bühler to establish itself as a true solution provider – from stand-alone machines and complete production lines to new applications and a world-spanning customer service organization. Since the volume of Asian noodles consumed around the world is roughly the same as that of pasta, an Asian Noodles mar-ket segment was added to the Pasta & Extruded Products business unit. In order to offer this growing segment com-petitive solutions at short notice, a joint venture was set up with a Chinese partner which possesses a broad product range in this field.

One business unit that developed in an exceptionally encouraging way was Chocolate, Cocoa & Coffee. Its rev-enues increased by 13 % to CHF 256 million. Its order in-take even surged by 26 %. Bühler’s unique expertise in the industrial processing and upgrading of cocoa and coffee is acknowledged and appreciated by customers around the world. The unit’s global market leadership in the Chocolate Mass segment was increased, and it managed to handle its substantially larger proportion of plant business with high efficiency thanks to the Total Synchro program and top-class project management. This enabled customers to benefit from yet again shorter delivery times. This segment also achieved a convincing level of performance in the fields of automation and process solutions, both in the saturated markets of the West and in the rapidly growing Asian markets. In order to additionally strengthen its prod-uct range, it added new Compound production processes. The Moulding segment turned out to be a winner with its above-average market share growth of about 20 %. Its compact production lines are an ideal supplement to the product portfolio of high-capacity systems and led to a perceptible boost in growth. Asian business was signifi-cantly expanded also in this segment with its high sanita-tion and fast product change requirements. The Cocoa/Nuts segment maintained its sales volume in a sluggish market. In the second half-year, Bühler successfully launched new products and process designs also in the field of Nuts processing. Innovative solutions for grinding and roasting resulted in marked growth of the attractive Coffee segment.

With CHF 71 million, the Aeroglide business unit, which manufactures drying lines for the food and specific non-food industries, achieved the highest-ever sales in its his-tory thanks to its excellent previous year’s order intake (+10 %). Aeroglide profited from the integration of its drying technologies in the overall process solutions of Bühler. The unit invested substantially in the expansion of new pro-cesses for making top-notch end products and in its global laboratories and is therefore today in a position to develop processes that are ideally suited to both food and feed production. New solutions were developed with a focus on validated reproducible processes, hygiene, and intelligent control systems. The unit also enhanced its capabilities on Bühler’s global platforms and thus gener-ated new business in South America, Asia, and Europe.

33

Investments were made in its Application Laboratory as well as its U.S. manufacturing facility in Raleigh, which presents great new opportunities.

The Nutrition Solutions business unit booked sales of just under CHF 11 million (previous year CHF 8 million). Nutri-tion Solutions is a development and service unit for the division which develops new or significantly improved foods for customers. Especially its new solutions and product formulas in the Rice, Mantau, and Bread seg-ments plus innovative pasta and breakfast products gen-erate powerful synergies together with its process technol-ogy business. This enables Bühler to clearly differentiate itself from its competitors and offers customers unique benefits – especially when it comes to developing and testing new foods up to the point of market maturity.

innovation and developMent.The division invested CHF 23 million or about 5 % of total sales revenue in research and development. All segments developed new products for top-end as well as perfor-mance applications, with customers being supported in all regions by a world-class range of services. Cutting-edge control and measurement systems for plant and equip-ment in conjunction with innovative engineering solutions that set new standards in the field of plant sanitation were

implemented. As customers spend up to 30 % of their time cleaning and maintaining their production systems, the division develops solutions designed to appreciably increase efficiency and operating reliability. In 2014, Inter-pack – the world’s largest trade show in the field of food processing and production that will be held in Düsseldorf/Germany – will provide an ideal platform for once more proving Bühler’s competitive edge.

outlooK.The division started 2014 with an order backlog of CHF 263 million, which provides an excellent basis. “Grand Slam” – its global Customer Service initiative – is to be selectively strengthened by the addition of some 100 decentralized service stations. In order to further boost its competitiveness, the division is also continuing to invest in its employees’ skills. In concrete terms, this means that the existing process expertise in transforming raw materi-als to semi-finished or finished products will be further strengthened in all segments and be combined with the design and construction of production plants and control systems. Ultimately, the aim is to offer customers substan-tial value added so as to ensure their success.

Food Processing

total sales food proCessing sHare of group sales


498 CHF m 21%

2011 2012 2013

Pasta & Extruded Products 161 138 159

Chocolate, Cocoa & Coffee 227 227 256

Aeroglide 55 64 71

Nutrition Solutions 7 8 11

Total 450 438 498

32 %

Pasta & Extruded Products

2 %

Nutrition Solutions14 %

Aeroglide

52 %

Chocolate, Cocoa & Coffee

34

1


35

Chocolate. Roshen Corporation,Kiev, Ukraine.

Food Processing


for sWeet Quality.

A long business relationship rich in tradition unites Roshen Corporation with Bühler. In 2000, this Ukrainian com-pany took delivery of its first classic Bühler production line for making chocolate mass. In view of the sustain-ably excellent results of this system, additional produc-tion lines for making mass were ordered in the following years as well as two CompLineTM systems especially well suited for frequent recipe changes. In 2011, Roshen added production capacities in Vinnitsa and thus boost-ed its overall output by 120,000 metric tons a year. Following various expansion stages of this production facility in the years 2011 and 2012, Bühler was awar - ded another contract in the year under review for a new processing line for making praline mass plus another refining line for producing milk and dark chocolate mass-es including six conches of type DÜC 6-G V. These lines are distinguished not only by their high efficiency, but can also be flexibly employed thanks to the innovative technology they use. Roshen is relying on continuity in production, low maintenance as well as top product quality – and therefore chooses Bühler as its partner.

Roshen Corporation is one of the world’s major confec-tionery producers. Its total annual output amounts to over 450,000 metric tons. Its corporate philosophy is based on two pillars: quality in accordance with inter-national standards and innovation that is reflected in con-tinuous development and launching of new creations and products.

confectionery types are produced by Roshen Corporation.

QUALITY, EFFICIENCY, AND CONTINUITYare guaranteed by Bühler to Roshen Corporation – for all process lines from end to end.

OVER

200

Flexible complete installation for producing compound masses and chocolate plus cocoa liquor grinding and mixing including process control.

Roshen Corporation,Kiev, Ukraine.

37

2

1 The production of confectionary in Vinnitsa, Ukraine.2 Aleksander Strutinsky, mechanic of the chocolate mass production line.

Food Processing

38

3


39

4

Food Processing

3 Aspiration system of the conches. 4 Complete line for mixing, refining, and conching masses for making milk and dark chocolate.

40

5


41Food Processing

42

6


43

77

Food Processing

5 ShearMix™ SXMX 1500 – a powerful chocolate mixer and kneader.6 Finer V1800 – fully automatic five-roll refiner offering top flexibility. 7 Olesyn Chetverikova, engineer and technologist in the production of chocolate masses.

44

8


45Food Processing

46

9


8 The WinCos process control system controls all processes. 9 Conche Düc 6-G V – a double-overthrow conche for top quality. 10 Dosing system of liquid ingredients.

47

10

Food Processing


advanCed Materials.STRATEGIC CONSOLIDATION CONTINUED.

overvieW 2013.Fiscal 2013 of this division was marked by the targeted continuation of the strategic optimization of its portfolio. After the Thermal Processes business unit had been split off and transformed into a new entity in the previous year, a majority stake was sold in 2013 to Cross, a Swiss invest-ment company, retrospectively with effect from the start of fiscal 2013. The Leybold Optics business unit was for the first time consolidated for an entire fiscal year. With light-weight designs and functional layers as its main activities, the division will – beside its traditional core business – in the future systematically focus its strategy on relevant global megatrends such as energy efficiency and mobility.

In the year under review, business developed along differ-ent lines for the various business units, with competition remaining fierce and general margin pressures being felt. Sales revenue (turnover) amounted to CHF 419 million, which is about 20 % below last year’s level. This is mainly due to the disinvestment of Thermal Processes and to a lesser extent to the lower revenue of Die Casting after an exceptional record year in 2012. The order intake amount-ed to CHF 435 million and was well above CHF 416 million in the previous year.

developMent of tHe business units.With an order intake of CHF 246 million in 2013, the division’s largest business unit – Die Casting – once again almost touched the record of 2011. This is primarily due to the vigorous market recovery in Europe in conjunction with double-digit growth in Asia. Sales revenue, which reached CHF 216 million, was perceptibly below the historical peak of 2012. This is attributable to the lower order intake in the first half-year of 2012 as a result of the business slump in the European automotive industry and a change in the product mix. The reconditioning and retrofit business acquired in 2012 from the Italian company Brescia Presse S.r.l. had a positive impact on both order intake and sales. Generally speaking, business with the automotive industry is characterized by growth, with a steady rise in the pro-portion of lightweight aluminum components and brisk capital investment activity in Europe, China, and North America, which are the business unit’s main markets.

The Grinding & Dispersion business unit (wet processing of printing inks, electronic materials, and fine chemicals) held its own in a still demanding market environment and increased its sales from 2012 by 5 % to CHF 70 million. Unlike the high-tech applications, where capital invest-ments were held back, business in the traditional printing inks field developed in a much more encouraging manner. Following a rather slow start, business picked up appre-ciably in Europe and Asia in the second half-year, growing at an above-average rate. Despite the sluggish start, or-der intake stabilized at virtually the same level as in the previous year. In Europe and North America, initial suc-cesses were scored with lithium-ion batteries, thanks to the cooperation agreement signed in 2012 with the Japa-nese Primix Corp. Bühler believes that this technology will expand substantially in the coming years in a trend-setting market characterized by the advance of electromobility and energy storage. With the integration of Nanotech-nology, which up to now was a separate business unit, the know-how basis of the business unit was gradually expanded by the addition of chemical engineering capa-bilities.

The Leybold Optics business unit (vacuum deposition of functional layers in the Optics, Industrial, and Architectural Glass segments) underwent a severe change in fiscal 2013. As the sale of the Photovoltaics business to a Chinese investor could not be closed as contractually agreed, Bühler decided in November in view of the un-favorable market prospects to shut down the Dresden site in the first quarter of 2014 and to discontinue this activity. The business unit closed the year 2013 with revenues of CHF 133 million. The Optics segment achieved additional successes in its traditional field of Precision Optics. But Leybold Optics also maintained its strong market position in the Industrial segment with 3D applications (coating of moldings, especially headlights for the automotive in-dustry) and in the Capacitors segment (foil coating for electrical capacitor production). In the Large Area Coating segment (Architectural Glass), the market environment has changed for the better, and Bühler plans to systematically further develop this activity. Generally speaking, all the sites of Leybold Optics were further integrated in Bühler’s process topography.

49

innovation and developMent.In fiscal 2013, the division spent CHF 25 million on re-search and development, which is CHF 4 million more than a year ago. New products and process technologies accounted for roughly two thirds of this total, and selec-tive further developments for the other third. The division’s strategic projects included, among others, the continuing development of lost-core technology in Die Casting, which enables complex components with cavities to be die-cast, plus raw materials and slurry production for making lithium-ion batteries in Grinding & Dispersion. At Leybold Optics, the focus was on the development of the ion-beam sputtering process for precision optics. With the achievement of market maturity of the Meta-MTM (roller-to-roller coating of packaging film), Leybold Optics set new coating quality and productivity standards in the production of packaging film. A new product launched in the Chinese market was the Dispernator™ (Grind-ing & Dispersion), a versatile predispersion machine. Its high circulation rates and its use of grinding media greatly improve productivity. All business units set a special focus in their development activities on products and solutions for emerging markets, especially in Asia.

outlooK.With a backlog of CHF 202 million, the division started fiscal 2014 in a very comfortable position. Die Casting continues to go on the assumption that development will remain strong. One distinct trend will be the localized production of sophisticated automotive components, in particular in China. Developments in Europe and North America are assumed to remain stable, with Bühler stand-ing to profit from necessary replacement investments in North America. Grinding & Dispersion is expected to return to the path of perceptible growth following two weak years. Leybold Optics expects demand to remain stable in the Optics segment, with fiercer competition. In the Industrial segment, additional potential is developing in Packaging, and the order intake of Large Area Coating is likely to recover perceptibly in the course of 2014.

Advanced Materials

total sales advanCed Materials sHare of group sales


2011 2012 2013

Die Casting 200 232 216

Grinding & Dispersion 86 67 70

Leybold Optics -- 132 133

Thermal Processes 67 88 --

Total 353 519 419

419 CHF m 18 %

51 %

Die Casting

32 %

Leybold Optics

17 %

Grinding & Dispersion

50

1


Ink. Letong Chemical Co. Ltd.,Zhuhai, China.

51Advanced Materials

Ink. Letong Chemical Co. Ltd.,Zhuhai, China.

52

2


1 Let-down tanks for adjustment of the final inks.2 New building complex at Huzhou site, Zhejiang Province.


reproduCible inK Quality at a top level.

The stronger demand for various goods triggered by the massive growth of the Chinese middle classes has given rise to the need for packaging materials. This, in turn, has increased demand for packaging inks. Bühler has acquired an excellent reputation as a solution provider in the field of printing ink manufacture in China, building a number of major plants over the past years. They allow customers to benefit especially from Bühler’s process know-how along the entire ink production chain. These capabilities also convinced Letong Chemical Co. Ltd. who ordered eight automatic production lines including eight Cenomic™ 3 full-volume bead mills and four SuperFlow™ VCR-200 high-performance mills. Bühler demonstrated with these systems that the printing ink quality and productivity achieved are clearly superior to those of competitors’ products. Our complete solution not only covers the actual grinding process, but also all the other important processes such as pigment han-dling, dosing, and premixing.

Letong Chemical Co. Ltd., which was founded in 1996 and has been listed on the stock exchange since 2009, manufactures packaging inks, color granules, plastic coatings, and laminate adhesives. The company is a lead-er in the Chinese marketplace in its field, also supply - ing its products to reputed international corporations.

QUALITY AND PRODUCTIVITY

which guarantee the reproducibility of the ink quality at a top level while at the same time reducing consumption of expensive raw materials.

are demonstrably superior to those of competitors.

12 MILLS

20,000METRIC TONS

Letong Chemical Co. Ltd.,Zhuhai, China.

of inks are produced every year by Letong Chemical.

54

3


55

4

Advanced Materials

3 Close to our customers: local installation and start-up team. 4 Yellow and white, fine dispersing lines with Cenomic™ full volume bead mills.

56

5



58

6


5 Fine dispersing section with Cenomic™ mills and mixing tanks.6 Magenta and cyan, fine dispersing with SuperFlow™ high performance mills.7 SuperFlow™ rotor in wear resistant steel alloy.

59

7

Advanced Materials


On schedule: professional installation supervision.

organiZation.

62 The Executive Board 64 The Board of Directors 66 Organization Chart


Calvin grieder (1955, Swiss) Chief Executive Officer

After having been raised in the U.S., he graduated in proc-ess 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 und SIG) in the fields of measurement and control, automation and engineer-ing. In these functions, he was primarily 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 Metall Zug AG and Implenia AG.

andreas r. HerZog (1957, Swiss) Chief Financial Officer

After graduating in business administration, he contin-ued his studies in various postgraduate courses in marketing and finance management at business schools in France, Canada, and the U.S. He occupied manage-ment positions in finance, controlling, audit, and logistics at Ciba-Geigy and Swatch. Before joining Bühler, he was vice president Finance at Swarovski. During his professional 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 Commerzbank in Germany.

tHe eXeCutive board.

Andreas R. Herzog, Martin Menrath, Bruno Mendler, Samuel Schär, Calvin Grieder, Stefan Scheiber, Christof Oswald, Ian Roberts (from left to right).

63The Executive Board

bruno Mendler (1954, Swiss) Grain Processing

He graduated in mechanical engineering from the Zurich University of Applied Science in Winterthur and obtained an executive MBA postgraduate degree from the University of St. Gallen. During 20 years, he was a member of the SIG technology group in various management positions. From 1999 to 2003, he was managing director of SIG Pack Systems AG after having been head of a business unit, marketing manager, and sales representative in the company. He changed to Bühler in 2003, taking charge of the Grain Processing division in 2004.

Martin MenratH (1955, German) Manufacturing & Logistics

He graduated in aerospace engineering from the Uni-versity of Engineering in Munich and later on obtained a doctorate from the faculty of aircraft propulsion. Martin Menrath has accumulated vast industrial management experience in the fields of production, development, and logistics at companies such as MTU, Rolls-Royce Germany, last as speaker of the executive management; and as member of the executive management of Krauss-Maffei Wegmann GmbH & CO KG. He took charge of the Manufacturing & Logistics division in 2008.

saMuel sCHär (1975, Swiss) Advanced Materials

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

stefan sCHeiber (1965, Swiss) Food Processing

He graduated in business administration from the Uni-versity of Applied Science in St. Gallen and later on continued his education at the IMD Lausanne and other institutes. From 1988, he worked for 15 years in various management positions abroad, including East and South Africa, Eastern Europe and Germany. In 1999, he took charge of the global organization of the Brewing and Rice business units and then assumed overall responsibility for Bühler Germany. 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.

CHristof osWald * (1961, Swiss) Human Resources

After completing his apprenticeship at Bühler, he con-tinued his education in commerce and held various functions in development and customer projects for all divisions. In the course of this activity, he acquired broad management experience which he continuously deepened as 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 Corporate Human Resources since 2006.

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 Management 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.

* Member of the extended Executive Board


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. In 1986, Urs Bühler was appointed CEO of Bühler, Uzwil. He handed over the executive management of the company to Calvin Grieder at the start of 2001. Urs Bühler was a member of the board since 1981, from 1991 as its vice-chairman and from 1994 to 2014 as its chairman.

peter Quadri * (1945, Swiss)Vice-Chairman

Graduated in 1969 in economy and business adminis-tration 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 Switzerland 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 member of the board of Vontobel Holding AG, of Swiss Life AG and chairman of the Board of Unitectra AG.

Calvin grieder ** (1955, Swiss)Chief Executive Officer

After having been raised in the U.S., he graduated in proc-ess 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 und SIG) in the fields of measurement and control, automation and engineer-ing. In these functions, he was primarily 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 Metall Zug AG and Implenia AG.

tHe board of direCtors.

The Board of Directors of Bühler Holding AG and Bühler AG is made up of seven members who are elected for a term of three years. The age limit is 70 years.

The Board of Directors convened five times in fiscal 2013. The main issues discussed were strategic planning and reviewing of risk management. The decisions made concerned the acquisition of a company in Haguenau (France) which specializes in products and services for the grain milling industry and the establishment of Service Stations in Chile, Nigeria, Kazakhstan, and Norway for enhancing Bühler’s Customer Service offerings. Moreover, the Board of Directors decided to sell a majority stake in Bühler Thermal Processes AG which operates in the field of thermal processes.

The Board Committee, which has three members, met five times and concerned itself mainly with internal audits and employee development.

65The Board of Directors

Hans J. löliger * (1943, Swiss)

Studied business administration in London and Philadel-phia. After ten years in the storage and materials han-dling equipment business, he joined the Crown Cork & Seal Company, Philadelphia, in 1977. For Crown Hold-ings, he was active in various international functions up to 1996, for the last six years as president Global Plastics Packaging and member of the Group Executive Board. From 1996 to 2000, he was president and CEO of the SICPA Group in Lausanne, the global leader in the security inks business. Since 2001 he has served on the boards of several Swiss and international companies. Hans J. Löliger was member of the board of Bühler from 2004 to 2014, from 2013 as vice-chairman.

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 Markenartikelverband), since 2010.

dr. Konrad HuMMler (1953, Swiss)

He graduated in Law from the University of Zurich and in Economic Science from the U.S. University of Roches-ter. In the eighties, he acted as the personal assistant to the chairman of the board of directors of former UBS, Dr. Robert Holzach. From 1989 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 member 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 appointed member of the board of Bühler in 2010.

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 PricewaterhouseCoopers in St. Gallen. In addition, she was member of the Cantonal Government of Appenzell IR (Director of Finance) during three years. From 1999 through 2003, she headed 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 consul-tancy 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 Association AR, and Member of the Council of the University of St. Gallen (HSG). In December 2011, she was elected as member of the board of Bühler.

* Board Committee ** Calvin Grieder is executive member of the board. The other members are non-executive members of the board.


organiZation CHart.

CeoCalvin Grieder

board of direCtors

sales & serviCesCalvin Grieder North and South America, Europe, Middle East & Africa, Asia, East Asia, South Asia

ManufaCturing & logistiCsMartin Menrath

finanCe & adMinistrationAndreas R. Herzog

Corporate teCHnologyIan Roberts

HuMan resourCesChristof Oswald

grain proCessingBruno Mendler

food proCessingStefan Scheiber

advanCed MaterialsSamuel Schär

Grain Milling

Feed & Biomass

Sortex & Rice

Grain Logistics

Pasta & Extruded Products

Chocolate, Cocoa & Coffee

Aeroglide

Nutrition Solutions

Die Casting

Grinding & Dispersion

Leybold Optics

Status January 1, 2014

sustainability at büHler.

Our sustainability journey is guided by our vision and mission. With our vision of “Innovations for a better world,” we want to contribute to a good life for the world’s population whilst living within the natural limits of our planet. Our mission is to develop the Bühler Group on a sustainable, successful, and independent basis, with products, processes, and services which make a substantial contribution to improving the quality of life. We give consideration to the environmental and social impact of our activities within the scope of what we can influence – first and foremost for our customers, their own customers, our employees, our suppliers, and our partners. Our sustainability framework with its promises, commitments, and goals supports us in this effort and ensures transparency for all stakeholders.


In the 153-year history of its independent and sustainable development, Bühler was built on the basis of responsible business practices, training and continuing education of its employees, innovation, and cooperation, in conjunction with the obligation to improve the quality of life wherever we operate. As a result, we have always lived our numer-ous principles of sustainable business development.

The sustainability concept of Bühler with its promises, commitments, and goals merges the building blocks of this longtime success story to provide a reliable beacon for meeting today’s and tomorrow’s global challenges based on our vision.

WHy is sustainability so iMportant to us?

1. We contribute to sustainable value chains. It is our responsibility to contribute to our customers’

sustainable success. We offer solutions for improving resource efficiency, enhancing quality and functionality, ensuring competitive total operating costs, and helping our customers seize opportunities to generate higher added value. In this, we also deal with core issues such as safety and availability of foods or reduction of vehicle emissions through lightweight structural components, thus enhancing the sustainability of value chains. We cooperate with our suppliers and partners in order to improve the efficiency and environmental footprint of their products and our own operating activities.

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

dedicated management staff are the key to our success. Their passion, skills, creativity, and openness lead to in-novative solutions and have a positive environmental, social, and commercial impact. Our obligation is to fur-ther develop our corporate and management culture and our employee training and continuing education programs to strengthen our organization to bring bene-fit both to Bühler and society.

3. We ensure independent profitable growth. Our sustainable and independent business develop-

ment depends on our ability to offer our customers products and services that satisfy and even exceed their expectations. Our customers’ success manifests itself in our profitable business growth, enabling us to invest in our employees, locations, and innovation.

foundation of business developMent.AT A GLANCE.

69

1

Consumer goods

raw Materials

2

bühler solutions

bühler suppliers

Collectionpoints

efficient processing solutions

safe and healthy food

reduced material losses

reduced energy use

primary processing

secondary processing

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

Main influence of Bühler

Sustainability

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 inhouse and together with our customers aiming to create best solutions.

2 Bühlers’ 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.


WHy is our sustainability report based on tHe global reporting initiative (gri)?For measuring and reporting on our progress in the field of sustainability, we are using the Global Reporting Initiative (GRI), specifically the Directives G3.1. These bring trans-parency and credibility and ensure a unified terminology. The structure and contents of our Sustainability Report are based on a limited scope GRI Level C, covering 19 performance indicators. In the year under review 2013, we focused on our five largest locations – Uzwil, Braun- schweig, Johannesburg, Bangalore, and Wuxi (China). In 2014, another five locations will be included in the analysis.

WE ENSURE A WINNING ORGANIZATION.

We pursue our culture of continu-ous learning.

We foster our culture of openness and partnership.

We strengthen our culture of health and safety.

our sustainability fraMeWorK.

71

WE ENSURE INDEPENDENT PROFIT-ABLE GROWTH.

WE ENHANCE SUSTAINABLE VALUE CHAINS.

We reduce the environmental footprint of our sites.

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

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

We deliver long-term profitability.

We ensure modern corporate governance.

We contribute to the development of local economies.

our sustainability fraMeWorK.

Sustainability


soCial sustainability.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. As a global corporation, Bühler considers the cultural variety of its employees as one of its greatest strengths. This is re-flected in the fact that, whenever possible, management-level positions are occupied by local candidates, a target that has been reached today to an extent of close to 90 %. All employees have equal rights, regardless of their nation-ality, religion, upbringing or gender. With our social sus-tainability promise, we want to exert a positive influence and continuously improve the impact of our activities on all stakeholders such as employees, customers, suppliers, partners, and society at large.

global talent pool.At the end of 2013, Bühler had 560 apprentices among its roughly 10,000 employees. The proportion of women, with about 13 %, is markedly above the average of the mechan-ical engineering and plant building industry of 7 %, but below parity. About half of all Bühler employees work at European locations and about a third in Asia. The strength-ening our organization in our customers’ markets contin-ued. In South East Asia, the capacity doubled; in Eastern Europe and in Africa it grew by 15 %. On average our employees were 40 years old with an average period of employment of 13 years. The fluctuation rate was 5 % on average.

CoMMitMent nuMber one. We pursue our Corporate Culture of Continuous learning.The Bühler Learning Center established in 2012 is the um-brella under which all training programmes reside. Cen-tred 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. Em-ployees worldwide are certified for their specific area of competence.

The internal and external services offered by the Learning Center are communicated to all employees. Assessments are offered to teams and individuals to identify and advise on relevant learning opportunities. In order to ensure the sustainability of the Learning Center’s offerings, the quanti-tative and qualitative controlling of continuing education was additionally established in the year under review.

Employee Performance Management (EPM) process.International collaboration in the form that is lived every day at Bühler requires a shared understanding of goals, skills, performance, and conduct. This need is satisfied by the Bühler EPM process. This appraisal system, which covers all employees worldwide, is based on standard-ized rules and criteria. It includes the following steps: Self- appraisal, Manager Appraisal, Performance Board, Appraisal Talk, and Midyear Coaching, and supports the further development of managers and employees in a sustainable manner.

The EPM process at the same time provides the basis for Talent Management and Succession Planning. The Talent Management process ensures the development of High Potentials from all functions and levels. In our global Suc-cession Planning scheme, we have for the first time deter-mined all key functions at the first, second, and third man-agement levels and identified potential successors. In the year under review, we additionally established and rolled out Expert Program. The purpose of the Expert Program is to focus not only on management careers, but also on expert careers and thus to offer experts adequate devel-opment opportunities and thereby also recognition.

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Successful Master of Bühler Management program.In June 2013, the second Master of Bühler Management Asia program started with 29 attendees. In collaboration with the CEIBS (China-European International Business School) in Shanghai, Bühler China has developed a train-ing program for developing management staff in Asia plus India and Indonesia who work on a global scale. In April, the Master of Bühler Management Rest of the World was held for the first time. This education course was attended by 24 employees from eleven different countries. The three training modules were held in South Africa, Columbia, and France. In both training courses, the emphasis is on sub-ject matter specific to Bühler. The programs are addressed to High Potentials for acquiring basic business administra-tion knowledge and leadership skills.

Assignments abroad for apprentices.Bühler offers its apprentices attractive assignments outside Switzerland which later on open up opportunities for these young people who wish to work in companies abroad. In 2013, 19 apprentices from Switzerland took the opportunity to work in the USA, China, India, South Africa, England, and Germany for assignments lasting between two and four months. This exchange program, which was launched six years ago and takes new approaches in the field of intercultural training, has since then evolved into a successful model.

Bühler Innovation Challenge.A total of over 3000 employees took part in the “Bühler Innovation Challenge” in 2012, an in-house innovation competition which was held for the third time. From over 300 ideas, a jury finally selected four promising projects. One of the finalists – Pulscalor – entered regular business activities in 2013. The other two – “Cocoa Boost and Qualib” – are being further developed in the Food Process-ing and Advanced Materials divisions. In view of its suc-cess, the Innovation Challenge is to be continued every other year. The next competition will thus be held in 2014 under the brand of “Create the future together”.

What we are doing What we are aiming at

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

Master of BühlerManagement

Global institutionalization by 2013

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

Sustainability


Employees by region(in % and absolute figures)

Employees by functions(in % and absolute figures)

have up to now completed their apprenticeships at Bühler.

7,500 APPRENTICES

13 YEARS with training programsalong Bühler’s core competencies.

200010000 3000 4000 50001

2

3

4

5

6

8

7

is the average period of employment worldwide.

Sales

Customer Service

Engineering

Automation

Research and Development

Manufacturing and Logistics

Administration

Apprentices

955

1,352

1,746

532

591

1,002

561

4,463

9 %

12 %

16 %

5 %

5 %

9 %

5 %

39 %

1 North America 747 7 %2 South America 406 4 %3 Switzerland 2 434 23 %4 Rest of Europe 2 779 26 %5 Middle East & Africa 479 4 %6 South Asia 555 5 %7 Asia 3 177 30 %8 East Asia 83 1 %

5 LEARNING CENTERS WORLDWIDE

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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


CoMMitMent nuMber tWo. We foster our Corporate Culture of openness and partnersHip.In order to master the global challenges that it faces, Bühler plans to strengthen partnership with multiple stakeholders in the coming years, either in the private or the public sec-tor. This means that beside customers, also suppliers, uni-versity institutes, governments, and non-profit organiza-tions will be involved. This enables us to strengthen the impact of our social and commercial commitment along the entire value chain. With this open innovation culture, Bühler combines its in-house expertise with outside know-how. By launching initiatives such as the “Supplier Innova-tion Challenge,” we want to evolve from customer-supplier relationships to innovation partners.

Involved in various initiatives.Bühler is a founding member of the World Food System Center of the Swiss Federal Institute of Technology (ETH) in Zurich. This is an interdisciplinary platform which takes up the challenges of global nutrition and of food produc-tion and safety. Bühler is the fourth corporate partner to join Partners in Food Solutions (PFS) since 2013. PFS is a non-for-profit organization combining the technical and commercial expertise of voluntary specialists from leading international food groups to accelerate development of local small food producers in developing countries.

Bühler is proactively supporting “Our Common Food,” a competition for ideas that is devoted to fighting food loss-es in developing countries and food waste in Switzerland. As a member of the jury, we were involved in the selection of the two best ideas which were presented on the occa-sion of the World Food Day in Zurich on October 16, 2013, initiated by the FAO.

Sustainability


CoMMitMent nuMber tHree. We strengtHen our Corporate Culture of HealtH and safety.

Core corporate principles as a basis.The Bühler Essentials define how we behave and deal with one another inside and outside our organization. These conduct guidelines are based on our five core corporate prin ciples: trust, recognition, respect, involvement and passion. These guidelines are a consequence of several global employee surveys.

Occupational health and safety protection.The health and safety of our employees and their protec-tion 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 during their presence in our premises. For this purpose, Bühler has compiled the most important safety information and rules in a new, modular video, based on our mission: No accidents at Bühler and no accidents in Bühler customer plants. Bühler has obtained group cer-tificates for ISO 9001 and ISO 14001.

Rollout of a company-wide Health Management system.In the Manufacturing and Logistics division, we launched Viva in 2012 as a pilot project. Viva is designed to inform and support employees to maintain their personal health. The Bühler Health Management system is based on three pillars: health promotion, absence reduction, and disability prevention. It relies on employees’ personal responsibility and the cultivation of an associated health culture. Viva is intended to contribute to a healthy work environment in which commitment, creativity, and productivity can thrive. It was successfully rolled out in all divisions in Switzerland in 2013 so that currently about one quarter of all employ-ees are taking part in it. The global rollout is scheduled for completion by 2017.


Prevention of accidents throughout the lifecycles of our products

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

Research and development projects take operator safety into account

In 100 % of all projects

Viva company-wide Health Management program

Global roll-out by 2017


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One aim of our environmental sustainability promise is to reduce the environmental footprint of our locations and the second is to improve those of our customers. We provide processing solutions with broard coverage of the value chains that our customer operate in. We have therefore set ourselves the ambitious goal of making a significant contri-bution to the creation of sustainable value chains by setting the standards for resource-efficient processing. The foot-print reduction is associated with improved technologies, cost reductions, loss reductions, and productivity gains.

energy- and Material-effiCient produCt design as a Cornerstone.The electric drive power that Bühler installs every year at its customers’ plants amounts to 220 to 250 MW. This is roughly the power generated by a mid-size power plant, equaling an energy consumption of 590 to 670 GWh. If an improvement in energy efficiency manages to reduce this consumption by a single percentage point, this will enable our customers to conserve an average of 6 GWh electrical energy every year. This is equivalent to the annual power consumption of 1500 households. Therefore, Bühler ana-lyzes energy balances in detail. Extensive analysis tools show customers where potential exists for cutting energy usage. The possibility of accurate costing leads to a great-er awareness in using energy.

Material efficiency is a core quality feature of Bühler prod-ucts. Maximizing yields while conserving resources in proc-essing raw materials increases productivity while minimiz-ing the loss of the gray energy included in the raw materials.

eCologiCal sustainability.WE CONTRIBUTE TO SUSTAINABLE VALUE CHAINS.

CoMMitMent nuMber one. We reduCe tHe environMental footprint of our loCations.

Separation from growth.Our aim in our internal value chain is to separate commer-cial growth from its environmental impact. In the past three years, Bühler has managed to substantially reduce its en-ergy and water consumption per productive hour. Appro-priate measures have been taken at our locations, for ex-ample to reduce energy consumption by 5 % annually relative to production hours.

Energy conservation in shipping.Bühler is currently working on the reduction of carbon emissions generated during product shipping as well as employee travel. In cooperation with SBB Cargo and ‘my-climate’ 2013, almost 7,000 metric tons of goods were shipped from Uzwil by rail, which translates into almost 64 metric tons of carbon equivalents. In practical terms, this is equivalent to 500 truck shipments. With Bühler Telep-resence, a modern medium is now available to employees to simplify internal communications. It also allows talks to be held with customers without requiring trips to their local sites. Its high utilization rate of up to 80 % is a clear indica-tion that this form of communication replaces travel which in turn reduces the environmental footprint.

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

Sustainability


Efficient Energy Management systems.In May 2013, the Energy Management system of Bühler Braunschweig was successfully certified according to ISO 50001 a mere half-year after the project was launched. The certification authority was impressed by the effective-ness of the management system, the measures already taken to improve energy efficiency, the involvement and participation of employees, and the support given by the company management.

Reduction of water consumption.Though we do not consume large volumes of water in our own production facilities, we plan to reduce annual water consumption by 5 % and separate it from our growth in sales revenues. In 2013, we reduced our consumption of water per production hour by 2 % to previous year.

CoMMitMent nuMber tWo. We set tHe standards for safe and HealtHy foods and for resourCe-effiCient solutions.

Safe food and animal feeds.In the past few years, the food safety issue has increas-ingly come into the focus of public interest. Consumers wish to know where their food comes from and under what conditions it has been produced. As a major market player along the entire food value chain, we therefore share re-sponsibility for safety and health in this area. Bühler solu-tions comprise hygienic machine designs and plants, tech-nologies for cleaning and decontaminating raw materials, intelligent automation solutions for safe food processing and reliable traceability, plus services that ensure the safety and the efficiency of processes.

One example of our commitment to food and feed safety is our new solution for reducing mycotoxins (toxins pro-duced by fungi) in grain. The combination of mechanical and optical sorting on the basis of our Sortex technology enables unrivaled quality and safety values to be achieved. Bühler thus sets a new industry standard for reducing afla-toxin in corn (maize). Aflatoxin is one of the most toxic mycotoxins endangering human and animal health.

The Bühler Food Safety Academy, which was set up with Campden BRI as a partner in 2012, aims at continuing to promote a comprehensive and unified understanding of food safety within Bühler. To date, a total of 120 employ-ees have undergone this applied education based on the HACCP concept (Hazard Analysis Critical Control Point).


Reduction of energy consumption of maschines per ton at final 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


79Sustainability

EnERgY MAnAgEMEnt

Change in energy consumption per production hour from a year ago [GJ/h] 10 %

LESS CARBON EMISSIONS IN SHIPPING

Change in water consumption per production hour from a year ago [m³/h]

6 TIMESLOWER FRESH WATER CON-SUMPTION AND

RAW MATERIAL YIELD

3 % HIGHER

in the Prime Masa™ process for the production of tortilla meal as compared to the traditional process.

0− 5− 10− 15

– 3.4 % 2012

– 13.5 % 2013

0− 5− 10− 15

– 9 %

– 2 %

2012

2013

Introduction of ISO 50001 in Braunschweig.

from Uzwil.


Healthy foods.Bühler processes are aimed at safe, affordable, and healthy foods. In cooperation with partners, we research solutions capable of helping eliminate malnutrition (for example en-hancing availability of intrinsic nutrition) and overnutrition (for example gluten-free products, vegetable proteins for a better acidbase balance).

In this effort, we are heading in three main directions:1. Development of processes capable of optimizing the

nutrient yield of raw materials for end consumers.2. Intelligent fortification of raw materials to be processed

by adding nutrients or active agents (for example trace elements, vitamins) that are not available in the natural products.

3. Enhancement of our knowledge of raw materials and of our capabilities to transform raw materials in order to satisfy local consumer needs.

Bühler’s integral approach to developing healthy food so-lutions is shown in an exemplary manner by rice process-ing. The process stages (drying, cleaning, grinding, and grading) have been optimized to minimize rice breakage and spoilage. Wherever rice breakage cannot be fully pre-vented, this material stream provides the basis for intelli-gent fortification with micronutrients, also known by the name of NutriRice™ technology. Rice processing is also a good example for the efforts we are making to design the entire value chains of our customers in a more sustainable manner.

Reduction of total operating costs by increasingenergy efficiency.By the year 2020, we aim to substantially reduce energy consumption per ton of end product made by our custom-ers. For this purpose, each business unit has defined a specific energy indicator for one of its core processes. It serves as a basis for achieving the goal of 25 % reduction in energy per tonne of finished product by 2020. Such so-lutions increase the profitability of our customers’ opera-tions by cutting their operating costs while reducing their environmental footprint.

Life Cycle Assessment.A product ecobalance analyses was conducted in each of our business units, in conjunction with Ecodesign (Eco-Tool Light as an evaluation tool) and showed that the energy consumption of our machines in our customers’ produc-tion processes had the greatest impact on the environ-ment. The other product cycle phases – from raw material to recycling – are much lower impact. In the product devel-opment process, early planning ensures that environment-friendly materials are selected, risks are minimized, and resource efficiency is increased. Bühler has therefore decided to include the ECO-Tool evaluation method as a decision-making instrument in its product development process (M2M).

Use of efficient drive technology.Bühler promotes centrally the evolution towards higher efficiency drives, establishing guidelines and supporting implementation. The core activities are focused on the migration to more efficient types of electric motors and the application of variable-speed drives using frequency converters. In the past year, preparations were made to introduce the efficiency class IE3 (Premium Efficiency) in Europe in 2015. This will ensure that the entire Bühler range of equipment will by then be prepared to meet the more rigorous EU legislation, and not only when request-ed by our more energy-conscious customers worldwide. In 2013, IE2 (High Efficiency) drives were the most com-monly used efficiency class. The even more stringent class IE4 has been defined as a draft standard. A few initial machines have already been equipped with these motors, the most prominent example being the new large Kubex feed pellet mill.

81

plan to achieve initial successes in 2014. An additional motivation to engage in this field lies in the fact that re-duced losses along the entire value chain will also increase the availability of foods (food security) in emerging markets.

Water scarcity.Availability and efficient utilization of water have become critical factors in the debate on secure supplies of this vital good. As most Bühler processes are based on dry proc-esses, they are by their very nature not water-intensive. Moreover, Bühler is making efforts to substitute water- intensive production processes with our low water usage process technologies such as Prime Masa™, Bühler’s new innovative process for making tortilla meal. It consumes six times less water than traditional production processes to make one metric ton of cornmeal (maize meal). Further-more, 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 cornmeal produced.


Solutions for reducing post-harvest losses

Significant reduction by 2020 thanks to Bühler solutions


CoMMitMent nuMber tHree. We provide solutions for reduCing food losses and iMproving food seCurity.

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 con-sumers. In order to correct this situation, Bühler develops solutions for storing, cleaning, sizing, and sorting com-modities as well as for other process operations, including alternative processes for non-edible byproducts.

Because the greatest potential for optimizing resource efficiency and reducing losses is located upstream and downstream of the areas over which we have direct con-trol, Bühler is teaming up with partners to take up this challenge. At present, we are in the concept phase; we


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 custo-mers’ 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


Sustainability


eConoMiC sustainability.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 maintaining our finan-cial independence status.

CoMMitMent nuMber one. We deliver long-terM profitability.On average across several years, Bühler aims at achieving an operating profit margin (EBIT) of 10 % plus organic rev-enue growth of 10 %. This enables us to generate the cash flow we need to invest in future innovations and acquisi-tions and to secure our financial independence.

In fiscal 2013, we fell short of these targets, as growth in our markets did not meet our expectations. However, Bühler’s investment policy is based on a long-term per-spective. It aims at deepening our intelligence of local mar-kets, gaining ever-better knowledge of customer needs, and turning around a number of our market segments to make them long-term fit. 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.


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

Financing of growth 100 % independent


CoMMitMent nuMber tWo. We ensure a Modern Corporate governanCe approaCH.

Clearly defined criteria as a yardstick.A smoothly functioning and effective Corporate Gover-nance system is a precondition for Bühler to achieve a long-term and sustainable increase in its corporate value. It is based, among other things, both on the Swiss Code of Best Practice and the OECD Principles of Corporate Governance. The organization of Corporate Governance at Bühler is oriented toward the interests of its stakehold-ers. They include customers, employees, suppliers, and public communities and also give consideration to envi-ronmental and social standards as well as being uncom-promisingly committed to financial integrity.

As a Swiss company operating on an international scale, strict and global compliance with local laws and the asso-ciated strict and continuous monitoring in all markets are indispensable for Bühler. This is the only way to avert oper-ating risks and reputation impairment that might be caused by violating compliance.

83Sustainability

attended our online training program against corruption and bribery in 2012 and 2013.

SEDEX-AUDIt2,860

ZERO

The Supplier Ethical Data Exchange or SEDEX is a non-profit organization for promoting responsible and ethical business practices in global procurement chains.

15005000 1000 2000 2500

Growth and earningsSales

significant fines or non-compliance with laws and other regulations.

SUCCESSFULLY PASSEDEMPLOYEES

7.7 % 1,721

10.6 % 1,907

10.2 % 2,131

7 % 2,409

6 % 2,322

2009

2010

2011

2012

2013

Average growth from 2008 to 2013: turnover (sales revenue) +8 %, EBIT +8 %

Sales in CHF m EBIT


An increasing number of customers are demanding audit-ing on the basis of the so called Supplier Ethical Data Ex-change (SEDEX). This involves checking by an acknowl-edged certification company that determines to what extent suppliers fulfill their social responsibilities and gen-eral ethical principles in areas such as employee rights, job satisfaction, occupational safety, health and environmental protection as well as general legal requirements. At pres-ent, some 30,000 companies in over 150 countries around the world are members of SEDEX.

New Code of Conduct.In 2012, Bühler introduced a revised Code of Conduct which is binding upon all of its companies worldwide. It provides guidelines for all employees showing them how to live the core corporate principles of Bühler Group (trust, respect, recognition, involvement, passion) in their eve-ryday jobs. The code describes what is expected of em-ployees and business partners, defines standards with regard to compliance with laws and regulations, and con-tains the principles of communications, employee rights, health and safety as well as financial integrity. Bühler ex-pects these standards to also be applied by its business partners.

CoMMitMent nuMber tHree. We Contribute to loCal eConoMies.Fully in line with its motto “In the markets for the markets”, Bühler attaches great importance to having firm local roots. On the one hand, this shortens the supply chain. On the other hand, fast and effective adjustment of our products to local preferences is facilitated by product development that is increasingly executed in the various market regions. Importantly this localization applies to our management staff. Today, Bühler fills about 90 % of all positions at the senior management level with employees from the respec-tive regions. With this regionally oriented business policy, Bühler is also making a contribution to the development of local economies.


Online training program to fight corruption and bribery

100 % of all employees in the sales, purchasing, and management functions have attended the online training program against cor-ruption and bribery

Periodic internal audits on corruption prevention

In 2013, 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)



Local recruitment of emplo-yees and management staff

90 % of our management staff are locally recruited


FINANCIAL REPORT.

86 Financial commentary

88 Financial report Bühler Group 89 Consolidated statement of income 90 Consolidated statement of comprehensive income 91 Consolidated statement of financial position 92 Consolidated statement of changes in equity 94 Consolidated statement of cash flows 95 Notes to the financial statements 126 Report of the statutory auditor

127 Financial statements Bühler Holding AG 128 Income statement Bühler Holding AG 129 Balance sheet Bühler Holding AG 130 Notes to the financial statements Bühler Holding AG 132 Group companies Bühler Holding AG 136 Report of the statutory auditor

86

Key points in brief. 2013 was one of the most challenging fiscal years in the recent history of Bühler. Whereas the order intake of CHF 2,363 million (2012: CHF 2,345 million) in-creased slightly by 0.8 %, turnover (sales revenue) slipped by 3.6 % to CHF 2,322 million (2012: CHF 2,409 million). The EBIT-level profitability decreased from CHF 168 million in 2012 (after restatement) to CHF 139 million in 2013 or 6.0 % of turn-over, following a highly successful 2011 (CHF 218 million or 10.2 %).

The Grain Processing division suffered a decline in order intake especially due to the Grain Milling business unit. This, however, was compensated by the excellent result of the Food Process-ing division, and in particular its Chocolate, Cocoa & Coffee business unit. In the Advanced Materials division, the Die Casting business unit contributed significantly to maintaining or even to increasing the level of Group-wide order intake. The orders received by Leybold Optics, a company that was ac-quired in 2012, offset those lost as a result of the sale of the Thermal Processes business unit. In terms of the regions, in particular Europe, South America, and once again Asia devel-oped in a highly encouraging way. On the other hand, North America suffered a major setback after a very successful 2012. The Middle East & Africa region, too, failed to meet expecta-tions, which was in part a consequence of the political turmoil in the Middle East.

The following factors contributed to the deterioration of the EBIT. First, the shutdown of the non-strategic Solar business and the restructuring of the remaining business of Leybold Optics generated considerable costs. Second, results suf-fered from the overcapacities caused by the volumes de-crease. Third, the Group incurred additional expenses in sig-nificant customer projects. Finally, the bottom line was im - pacted by the sale of the non-strategic Thermal Processes business unit, which had contributed substantially to Turnover and EBIT up until the prior year. The profit resulting from the sale was mostly offset by the impairment of the goodwill of Leybold Optics.

Despite these business challenges, investments in the devel-opment of new products were not reduced, but even slightly increased to CHF 109 million (2012: CHF 104 million). As in the past, research and development costs were fully expensed. The return on the net operating assets (RONOA) declined from 27.1 % in the previous year to 17.6 %, which is in particular due to the lower EBIT and to the 2012 acquisition of Leybold Op-tics. Thus, the capital costs of Buhler Group are more than covered, and the RONOA again represents a top value in com-parison to other industry players. The number of employees (exclusive of temporary staff and apprentices) increased slightly by 308 persons or 3 % to 10,659. The increase is pri-marily attributable to the Asia region with China and South East Asia.

Lower net profit, good financial result, low tax rate. The net profit in 2013 amounted to CHF 123 million or 5.3 % of turnover and was thus significantly lower than the result of the prior year (CHF 155 million or 6.4 % after restatement), mainly driven by the factors that impacted the EBIT negatively. The financial result of CHF 7 million remained below the value of a year ago (CHF 20 million) due to lower volatility in the financial markets. The tax rate of 16.0 % was once again improved (2012: 17.6 %), thanks to sustainable tax management and one-time effects.

Net Profit (CHF m)

2011 163.1

2012 * 155.3

2013 122.8

* restated

FINANCIAL COMMENTARY. 2013: Order intake at the previous year’s level, slightly lower turnover, lower profitability, stable balance sheet

Bühler Financial Report 2013Consolidated Financial StatementsFinancial Statements Bühler Holding AG

87

Healthy balance sheet with higher net liquidity. Eq-uity as of December 31, 2013 amounted to CHF 1,063 million (2012: CHF 980 million after restatement). The equity ratio has thus increased to 44.6 % (2012: 41.2 % after restatement). Apart from loans granted by related parties in the amount of CHF 166 million (2012: CHF 144 million), the Group does not have any material financial liabilities to third parties. Despite lower profitability, the cash flow from operating activities of CHF 124 million has increased due to a strong focus on net working capital management. Net liquidity rose to CHF 377 million (previous year: CHF 317 million), thanks to consistent investment management. Growth of the organization can therefore continue to be financed without incurring debt in the future.

Conclusion and outlook. Following a challenging previ-ous year, the business year 2013 was no less demanding. A number of negative factors prevented the Group from achieving the target of a double-digit EBIT margin. At the same time, it must be emphasized that these factors are largely of a one-time nature. Bühler therefore clearly remains committed to the strategy it has been pursuing up to now. Governed by the motto “Back to Basics,” the Group is deter-mined to do its homework in 2014 and to continue its string of successful previous years.

Net Liquidity (CHF m)

2011 518.0

2012 * 316.9

2013 377.3

* restated

Cash flow from operating activities (CHF m)

2011 197.4

2012 * 36.7

2013 123.8

* restated

88

FINANCIAL REPORT BÜHLER GROUP.


89

See notes2013

CHF m

2012 CHF m

restated 1)

Sales revenue 1 2,321.8 2,408.5

Changes in inventories of finished goods and work in progress – 10.9 – 12.2

Other operating income 2 69.1 47.7

Total operating income 2,380.0 2,444.0

Cost of materials – 1,005.3 – 1,068.0

Employee benefit expenses 3 – 732.5 – 755.8

Other operating expenses 4 – 427.1 – 401.7

Operating result before interest, taxes, depreciation and amortization (EBITDA) 215.1 218.5

Depreciation and amortization 7 / 8 – 75.6 – 50.3

Operating result before interest and taxes (EBIT) 139.5 168.2

Financial result 5 6.7 20.2

Profit before taxes 146.2 188.4

Income taxes 6 – 23.4 – 33.1

Net profit 122.8 155.3

Attributable to:

Owners of the parent 115.0 148.0

Non-controlling interests 7.8 7.3

1) See page 95

CONSOLIDATED STATEMENT OF INCOME.

90

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME.

See notes2013

CHF m

2012 CHF m

restated 1)

Net profit 122.8 155.3

Other comprehensive income

Translation differences of foreign operations – 12.5 – 12.0

– Tax effect 0.0 0.0

Available-for-sale financial assets

– Change in fair value 0.1 0.0

– Realized through statement of income 0.0 0.0

– Tax effect 0.0 0.0

Cash flow hedges

– Change in fair value 0.2 16.2

– Realized through statement of income – 3.4 – 7.3

– Tax effect 0.4 – 1.6

Net gain on hedge of net investment 3.3 – 0.5

– Tax effect – 0.5 0.0

Other comprehensive income to be reclassified to profit or loss in subsequent periods – 12.4 – 5.2

Actuarial gains and losses on defined benefit plans 17 – 3.3 33.0

– Tax effect 0.3 – 6.2

Other comprehensive income not to be reclassified to profit or loss in subsequent

periods – 3.0 26.8

Total other comprehensive income – 15.4 21.6

Total comprehensive income 107.4 176.9

Attributable to:

Owners of the parent 99.7 169.9


1) See page 95


91

As at December 31

See notes 2013

CHF m

2012 CHF m

restated 1)

1.1.2012 CHF m

restated 1)

Assets

Property, plant and equipment 7 382.8 347.3 303.7

Intangible assets 8 298.2 323.3 175.7

Investments in associates 9 17.9 9.9 9.4

Long-term financial assets 10 103.4 99.2 91.9

Deferred tax assets 11 30.0 18.4 19.5

Non-current assets 832.3 798.1 600.2

Inventories 12 335.0 321.8 306.3

Net assets of production orders in progress 13 208.0 207.2 147.7

Trade accounts receivable 14 508.2 544.4 442.0

Other accounts receivable, prepayments and accrued income 15 111.1 118.2 78.6

Current income tax assets 6.8 11.0 6.8

Marketable securities 16 32.5 72.1 100.1

Cash and cash equivalents 347.4 305.8 481.5

Current assets 1,549.0 1,580.5 1,563.0

Total assets 2,381.3 2,378.6 2,163.2

Equity and liabilities

Share capital 19 15.0 15.0 15.0

Capital reserves 185.1 185.1 185.1

Other reserves / retained earnings 830.6 748.9 597.5

Equity attributable to the owners of the parent 1,030.7 949.0 797.6

Non-controlling interests 31.9 31.2 28.3

Total equity 1,062.6 980.2 825.9

Long-term financial liabilities 172.6 91.9 97.7

Deferred tax liabilities 11 87.8 84.5 75.9

Defined benefit obligations 17 62.6 164.2 167.7

Long-term provisions 18 27.6 41.7 40.4

Non-current liabilities 350.6 382.3 381.7

Short-term financial liabilities 2.7 61.0 63.8

Trade accounts payable 20 195.9 205.9 152.1

Net liabilities of production orders in progress 13 333.1 321.0 303.1

Short-term provisions 18 62.8 67.1 58.7

Other short-term liabilities, accruals and deferred income 21 353.4 329.2 354.0

Current income tax liabilities 20.2 31.9 23.9

Current liabilities 968.1 1,016.1 955.6

Total liabilities 1,318.7 1,398.4 1,337.3

Total equity and liabilities 2,381.3 2,378.6 2,163.2

1) See page 95

CONSOLIDATED STATEMENT OF FINANCIAL POSITION.

92

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY.

Share capital CHF m

Capital reserve CHF m

Retained earnings CHF m

December 31, 2011 15.0 185.1 733.3

Restatement 2.7

January 1, 2012, restated 1) 15.0 185.1 736.0

Dividends paid – 18.0

Changes in non-controlling interests – 0.5

Net profit, restated 1) 148.0

Other comprehensive income, restated 1) 26.8

December 31, 2012, restated 1) 15.0 185.1 892.3

January 1, 2013, restated 1) 15.0 185.1 892.3

Dividends paid – 18.0

Changes in non-controlling interests

Net profit 115.0

Other comprehensive income – 3.0

December 31, 2013 15.0 185.1 986.3

1) See page 95


93

Hedge reserve CHF m

Available-for-sale reserve CHF m

Foreign currency translation reserves

CHF mTotal reserves

CHF m

Equity attr ibutable to the owners of the parent

CHF m

Non-controll ing interests

CHF mTotal equity

CHF m

0.9 1.5 – 140.9 779.9 794.9 28.3 823.2

2.7 2.7 0.0 2.7

0.9 1.5 – 140.9 782.6 797.6 28.3 825.9

– 18.0 – 18.0 – 4.1 – 22.1

– 0.5 – 0.5 0.0 – 0.5

148.0 148.0 7.3 155.3

7.3 0.0 – 12.2 21.9 21.9 – 0.3 21.6

8.2 1.5 – 153.1 934.0 949.0 31.2 980.2

8.2 1.5 – 153.1 934.0 949.0 31.2 980.2

– 18.0 – 18.0 – 7.1 – 25.1

0.0 0.0 0.1 0.1

115.0 115.0 7.8 122.8

– 2.8 0.1 – 9.6 – 15.3 – 15.3 – 0.1 – 15.4

5.4 1.6 – 162.7 1,015.7 1,030.7 31.9 1,062.6

94

See notes2013

CHF m

2012 CHF m

restated 1)


Financial result 5 – 6.7 – 20.2

Operating result before interest and taxes (EBIT) 139.5 168.2

Depreciation and amortization 7 / 8 75.6 50.3

Other items not affecting cash flow 11.5 – 14.8

Changes in provisions – 121.6 – 13.7

Changes in trade accounts receivable 29.6 – 89.3

Changes in inventories – 22.0 19.6

Changes in trade accounts payable – 13.9 22.8

Changes in net assets / liabilities of production orders in progress 35.6 – 30.2

Changes in other net operating assets 24.3 – 43.0

Cash flow generated from operations 158.6 69.9

Gains / losses on disposal of fixed assets 0.3 – 2.6

Interest received 3.2 4.8

Interest paid – 2.6 – 0.7

Income taxes paid – 35.7 – 34.7

Cash flow from operating activities 123.8 36.7

Purchase of property, plant and equipment – 85.1 – 77.8

Disposal of property, plant and equipment 8.6 10.6

Purchase of intangible fixed assets – 2.9 – 4.4

Cash flow from business combinations / disposals of group companies, net of cash 22 – 0.2 – 108.9

Purchase of non-consolidated participations – 0.0 – 4.5

Disposal of non-consolidated participations 0.2 0.0

Purchase of marketable securities – 14.6 – 47.3

Disposal of marketable securities 58.0 74.6

Purchase of long-term financial assets – 0.6 – 0.5

Disposal of long-term financial assets 2.2 4.3

Dividends received 0.8 1.6

Cash flow from investing activities – 33.6 – 152.3

Proceeds from financial liabilities 0.0 10.9

Repayment of financial liabilities – 12.5 – 44.6

Dividends paid of Bühler Holding AG – 18.0 – 18.0

Dividends paid to non-controlling interests – 7.1 – 4.1

Cash flow from financing activities – 37.6 – 55.8

Translation differences – 11.0 – 4.3

Changes in cash and cash equivalents 41.6 – 175.7

Cash and cash equivalents at the beginning of period 305.8 481.5

Cash and cash equivalents at the end of period 347.4 305.8

1) See page 95

CONSOLIDATED STATEMENT OF CASH FLOWS.

EBIT includes share of profit of associates in the amount of CHF 1.3 million

(prior year: CHF 1.3 million); thereof cash-effective CHF 0.2 million (prior

year: CHF 0.9 million). Changes in provisions include changes in short- and

long-term provisions, defined benefit obligations and deferred taxes.

95Bühler Financial Report 2013 Consolidated Financial StatementsFinancial Statements Bühler Holding AG

NOTES TO THE FINANCIAL STATEMENTS.

Accounting policies

Basis of preparation. The consolidated financial statements of the

Bühler Group have been prepared in accordance with the International

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 principles.

The consolidated financial statements are prepared under the historical

cost convention. Any exceptions to this general rule are outlined in the

following accounting policies.

Adoption of revised and new IFRS and new interpretations. The

accounting policies adopted are consistent with those of the previous

fiscal year, except for the following new and amended IFRS and IFRIC

interpretations effective as of January 1, 2013:

IAS 19 Employee Benefits (revised). The IASB has issued numerous

amendments to IAS 19. These range from fundamental changes such as

removing the corridor mechanism and the concept of expected returns

on plan assets to simple clarifications and rewording. As the Group has

already recognized actuarial gains and losses directly in other compre-

hensive income the material impacts of the adoption of IAS 19R on the

Group’s reporting are as follows:

Calculation of pension costs: The previous practice of recognizing

the expected return on plan assets and of calculating the interest

expense on the defined benefit obligation is now replaced by the

recognition of net interest on the net defined benefit liability or the

net defined benefit asset.

Risk sharing: The new provision on sharing risk between the

employees and employer has impacts on the defined benefit liability

and the allocation of service costs.

Prior periods have been restated due to the adoption of IAS 19R.

The impact of these changes on the relevant positions in the financial

statements are shown below:

2012 CHF m

reported

2012 CHF m

adj.

2012 CHF m

restated

Statement of Income

Employee benefit expenses – 749.2 – 6.6 – 755.8

EBIT 174.8 – 6.6 168.2

Income taxes – 34.3 1.2 – 33.1

Net profit 160.7 – 5.4 155.3

Attr. to the owners of the parent 153.4 – 5.4 148.0

Statement of Comprehensive Income

Actuarial gains and losses

on defined benefit plans 20.3 12.7 33.0

– Tax effect – 4.0 – 2.2 – 6.2

Total other comprehensive income 11.1 10.5 21.6

Total comprehensive income 171.8 5.1 176.9

Attr. to the owners of the parent 164.8 5.1 169.9

Statement of Financial Position

Long-term financial assets 93.3 5.9 99.2

Total equity 972.4 7.8 980.2

Deferred tax liabilities 83.1 1.4 84.5

Defined benefit obligations 167.5 – 3.3 164.2

Statement of Cash Flows

Profit before taxes 195.0 – 6.6 188.4

Changes in provisions – 19.9 6.2 – 13.7

Changes in other net operating assets – 43.4 0.4 – 43.0

IAS 1 Financial Statement Presentation: Presentation of Items of

Other Comprehensive Income (amendment). The amendment to

IAS 1 changes the grouping of items presented in OCI. Items that could

be reclassified (or “recycled”) to profit or loss at a future point in time (for

example, upon derecognition or settlement) would be presented sepa-

rately from items that will never be reclassified. The amendment affects

presentation only and therefore did not have an impact on the Group’s

financial position or performance.

IFRS 12 Disclosure of Interests in Other Entities. IFRS 12 includes all

of the disclosures that were previously included in IAS 27 related to con-

solidated financial statements, as well as all of the disclosures that were

previously included in IAS 31 and IAS 28. These disclosures relate to an

entity’s interest in subsidiaries, joint arrangements, associates and

structured entities. A number of new disclosures are also required. The

adoption of IFRS 12 did not have any impact on the financial position or

performance of the Group.

IFRS 13 Fair Value Measurement. IFRS 13 establishes a single source

of guidance under IFRS for all fair value measurements. IFRS 13 does not

extend the use of fair value accounting, but provides guidance on how to

measure fair value under IFRS when fair value is required or permitted.

The adoption of IFRS 13 did not have any impact on the financial position

or performance of the Group.

96

IFRS 7 Financial Instruments: Disclosures — Offsetting Financial

Assets and Financial Liabilities (amendment). The amendment re-

quires an entity to disclose information about rights to set off any related

arrangements (e.g. collateral agreements). The new disclosures are re-

quired for all recognized financial instruments that are set off in accor-

dance with IAS 32 Financial Instruments: Presentation. The disclosures

also apply to recognized financial instruments that are subject to an en-

forceable master netting arrangement or similar agreement, irrespective

of whether they are set off in accordance with IAS 32. This amendment

did not have any impact on the financial position or performance of the

Group.

IFRS 10 Consolidated Financial Statements. IFRS 10 establishes

a single control model that applies to all entities including special pur-

pose entities and replaces the portion of IAS 27 Consolidated and Sepa-

rate Financial Statements that addresses the accounting for consoli-

dated financial statements as well as SIC-12 Consolidation – Special

Purpose Entities. The changes introduced by IFRS 10 require manage-

ment to exercise significant judgment to determine which entities are

controlled, and are therefore required to be consolidated by a parent. The

adoption of IFRS 10 did not have any impact on the financial position

or performance of the Group.

IFRS 11 Joint Arrangements. IFRS 11 replaces IAS 31 Interests in Joint

Ventures and SIC-13 Jointly-controlled Entities – Non-monetary Contri-

butions by Venturers. IFRS 11 removes the option to account for jointly

controlled entities (JCEs) using proportionate consolidation. Instead,

JCEs that meet the definition of a joint venture must be accounted for

using the equity method. The adoption of IFRS 11 did not have any impact

on the financial position or performance of the Group.

Improvements to IFRSs. The improvements to IFRSs did not have an

impact on the Group, but include:

IAS 1 Presentation of Financial Statements – the amendment clarifies the

difference between voluntary additional comparative information and

the minimum required comparative information. Generally, the minimum

required comparative information is the previous year.

IAS 16 Property Plant and Equipment – the amendment clarifies that

major spare parts and servicing equipment that meet the definition of

property, plant and equipment are not inventory.

IAS 32 Financial Instruments: Presentation – the amendment clarifies that

income taxes arising from distributions to equity holders are accounted

for in accordance with IAS 12 Income Taxes.

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 state-

ments are listed below. The Group intends to adopt these standards

when they become effective. They may have an impact on future consoli-

dated financial statements and are being monitored and analyzed.

IAS 32 Offsetting Financial Assets and Financial Liabilities (amend-

ment). The amendment clarifies the meaning of “currently has a legally

enforceable right to set off”. The amendment also clarifies the application

of the IAS 32 offsetting criteria to settlement systems (such as central

clearing house systems) which apply gross settlement mechanisms that

are not simultaneous. The amendment becomes effective for annual peri-

ods beginning on or after January 1, 2014.

IFRS 9 Financial Instruments. The standard becomes effective for

annual periods beginning on or after January 1, 2015.

Amendments to IFRS 10, IFRS 12 and IAS 27 Investment Entities. The

amendments become effective for annual periods beginning on or after

January 1, 2015.

Use of estimates. The preparation of the consolidated financial state-

ments in accordance with IFRS requires management to make estimates

and assumptions that affect the reported amounts of revenue, expenses,

assets and liabilities, and the related disclosures at the date of the finan-

cial statements. These estimates are based on management’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 man-

agement’s best knowledge at the date of the financial statements,

deviate from the actual circumstances, the original estimates and as-

sumptions will be modified as appropriate in the year in which the circum-

stances change.

The estimates and assumptions that may have a higher risk of causing

a material adjustment to the carrying amounts of assets and liabilities

within the next financial periods relate primarily to long-term construction

contracts, goodwill, and to a lesser extent defined benefit obligations,

deferred tax assets, provisions and disclosure of contingent liabilities at

the end of the reporting period.

The Group accounts for long-term construction contracts using the per-

centage-of-completion method. Revenue (including a carefully estimat-

ed share of the outcome of the contract) is recognized by reference to the

stage of completion. The stage of completion is determined according

to the cost-to-cost method. The percentage-of-completion method in-

volves the use of estimates and forecasts concerning future costs; actual

costs may differ from these estimates. The forecasts are reviewed on

a regular basis and adapted where necessary. These changes affect

costs, the stage of completion, and both realized and anticipated profits.

Any changes in estimates are recognized in the period in which they

occur. Losses identified on long-term construction contracts are recog-

nized as an expense immediately. Losses on long-term construction

contracts occur when the expected contract costs exceed the expected

revenue.

The Group tests annually whether goodwill has suffered any impairment

in accordance with its accounting policy. The recoverable amounts of

cash-generating units have been determined based on value-in-use cal-

culations. These calculations require the use of estimates.


The cost of defined benefit pension plans and other long-term employee

benefits is determined using actuarial valuations. Actuarial valuations

involve making assumptions about discount rates, future salary increas-

es, mortality rates and future pension increases. Due to the long-term

nature of these plans, such estimates are subject to significant uncer-

tainty.

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 conditions are esti-

mated on a case-by-case basis and measured individually. The actual

warranty costs incurred may differ from the costs provided for.

All estimates mentioned above are further detailed in the corresponding

disclosures.

Scope of consolidation. These financial statements are the consoli-

dated financial statements of Bühler Holding AG, a company registered

in Uzwil, Switzerland, and its subsidiaries. The list of subsidiaries is pre-

sented in the section “Group companies Bühler Holding AG”.

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 operations, are

consolidated. The cost of an acquisition is measured at the fair value of the

consideration given at the date of exchange. For each business combina-

tion, the acquirer measures the non-controlling interest in the acquiree

either at fair value or at the proportionate share of the acquiree’s identifi-

able net assets. Acquisition costs incurred are expensed in the statement

of income. Identifiable assets acquired and liabilities assumed in a busi-

ness combination are measured initially at fair value at the date of acquisi-

tion, irrespective of the extent of any non-controlling interest assumed.

When the Bühler Group acquires a business, it assesses the financial as-

sets 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 recog-

nized 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 companies

are eliminated in full.

Investments in associated companies are accounted for using the equity

method of accounting. These are companies over which the Group gen-

erally holds between 20 % and 50 % of the voting rights and has signifi-

cant influence but does not exercise control. Goodwill arising on the

acquisition is included in the carrying amount of the investment in associ-

ated companies. Equity accounting is discontinued when the carrying

amount of the investment together with any long-term interest in an as-

sociated 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.

Bühler Haguenau S.A.S., France

Buhler Philippines Inc., Philippines

Buhler Farmila Vietnam Ltd., Vietnam

Buhler (Cambodia) Ltd., Cambodia

Wuxi NutriRice Co. Ltd., China

Buhler Limited, Nigeria

Disposals.

Bühler Thermal Processes AG, Switzerland

Foreign currency translation. The individual financial statements of the

Group companies are measured using the currency of the primary eco-

nomic environment in which the entity operates (“the functional currency”)

and are translated into Swiss francs for consolidation. 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 clos-

ing rate.

Foreign currency transactions translated into the functional currency are

accounted for at the exchange rates prevailing at the date of the transac-

tions; gains and losses resulting from the settlement of such transactions

and from the translation of monetary assets and liabilities denominated in

foreign currencies are recognized in the statement of income, except

when they are deferred outside the statement of income as qualifying

cash flow hedges.

98

Foreign exchange differences arising on monetary items that form part of

a company’s net investment in a foreign operation are reclassified to eq-

uity (currency translation adjustment) in the consolidated financial state-

ments 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:

2013 2012 2013 2012 CHF CHF CHF CHF

Europe 1 EUR 1.230500 1.205100 1.228000 1.207000

Great Britain 1 GBP 1.449000 1.485700 1.469000 1.478000

Czech Republic 1 CZK 0.047400 0.047900 0.045000 0.048100

USA 1 USD 0.927100 0.937700 0.893000 0.915000

Canada 1 CAD 0.900800 0.937700 0.840000 0.920000

Brazil 1 BRL 0.431300 0.480900 0.380000 0.446700

Argentina 1 ARS 0.170400 0.206100 0.138000 0.186250

Japan 1 JPY 0.009509 0.011745 0.008500 0.010620

India 1 INR 0.015900 0.017500 0.014400 0.016700

China 1 CNY 0.149600 0.148400 0.147000 0.147000

Mexico 1 MXN 0.072700 0.071200 0.068400 0.070200

South Africa 1 ZAR 0.096500 0.114200 0.086300 0.107500

Thailand 1 THB 0.030200 0.030000 0.027250 0.029900

Singapore 1 SGD 0.741100 0.750300 0.705600 0.749000

Foreign currency translationClosing rates 31.12.Average exchange rates

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 depre-

ciable assets are as follows:

Buildings

Building shell 25 –100 years

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 neces-

sary, 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 calculations (com-

parison 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 fi-

nance 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. Payments

under operating leases are charged to the statement of income 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 ac-

quired 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 impair-

ment indicators and is carried at cost less accumulated impairment

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 good-

will is included in the determination of profit or loss on disposal.

Goodwill on acquisitions of subsidiaries and interests in joint ventures

is allocated to cash-generating units for the purpose of impairment test-

ing. Impairment losses relating to goodwill cannot be reversed in future

periods.

Acquired patents, licenses, trademarks, and similar rights are initially

recorded at cost and amortized on a straight-line basis over their esti-

mated useful life or a period not exceeding 15 years. Intangible 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 estimated in order

to determine the extent of the impairment loss, if any. Where it is not pos-

sible 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 recoverable 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. Im-

pairment 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 revised estimate

of its recoverable amount. However, this increased amount cannot ex-

ceed the carrying amount that would have been determined had no im-

pairment 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 fol-

lowing four categories:

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.

“Held to maturity” investments are those with a fixed maturity

that the Bühler Group has the positive intention and ability to hold

to maturity.

“Loans and receivables” include loans granted and accounts

receivable.

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 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 recog-

nized in other comprehensive income. When the financial asset is either

impaired or disposed of, the cumulative gain or loss previously recog-

nized 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 recog-

nized with the proceeds received, net of transaction cost incurred. Sub-

sequently, 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 recognized in the statement

of income over the term of the borrowings.

Financial assets are derecognized when the Bühler Group relinquishes

control over them, that is when the contractual cash flows from the asset

are sold or expired. Financial liabilities are derecognized when its con-

tractual 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 re-

sulting 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 currency risks in con-

nection 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 hedg-

100

ing instrument and the risk being hedged, as well as setting out risk man-

agement objectives and strategies. Furthermore, the Group records its

assessment of the effectiveness of the hedging instrument with respect

to the hedged cash flows, both when the hedging transaction is con-

cluded 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 liability.

The hedging of cash flows is undertaken for certain anticipated Group-

internal transactions as well as for the foreign currency risk of firm com-

mitments. 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 instrument 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 comprehen-

sive income is immediately transferred to the statement 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 deriva-

tive 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 transaction rather than

through continued use. Reclassifications are only made if management

is committed to the sale and has started seeking 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 separately in the state-

ment of income.

Inventories. Inventories are carried at the lower of cost or net realizable

value. The cost of finished goods, semi-finished goods and work in prog-

ress includes raw materials, direct labor and other directly attributable

costs and overheads based on the normal capacity of production facili-

ties, excluding borrowing costs. Cost is determined using the weighted

average method. 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 carried

at the original invoice amount less allowances made for doubtful ac-

counts, trade discounts, volume rebates and similar items. Financing of

customer orders using the Group’s own funds as part of its treasury strat-

egy is included in this item.

Marketable securities. Marketable securities include those that are

held for trading without participation features. Securities included in

finan cial 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 institutions.

Cash and cash equivalents are carried at nominal amount. Such balances

are only reported as cash and cash equivalents if they are readily convert-

ible 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 acqui-

sition.

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. Fur-

ther on, the company sponsors numerous other long-term employee

benefit plans.

Employee benefits – defined benefit plans. These plans are generally

funded through payments to legally independent pension or insurance

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 balance sheet

as net defined benefit liability or net defined benefit asset under long-

term financial assets. The defined benefit obligation is determined annu-

ally 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 ser-

vice costs, past service costs (including gains / losses from plan amend-

ments or curtailments) and gains / losses from plan settlements.

Net interest is recorded as part of personnel expenses and is determined

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 immedi-

ately recorded in other comprehensive income as remeasurements em-

ployee 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 re-

cycled 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 members 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 rel-

evant vesting periods and are adjusted to reflect actual and expected

levels of vesting. The value of the deferred compensation 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 disclosed as

provisions for personnel expenses. The measurement of these obliga-

tions differs from defined benefit plans in that all actuarial gains and

losses are recognized immediately in the statement of income.

Provisions. Provisions are recognized when Bühler has a legal or con-

structive obligation arising from past events, an outflow of resources

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 recog-

nized profits for the reporting period. They include current and deferred

income taxes. Current income taxes are calculated on taxable profit.

Provisions for deferred taxes are calculated according to the liability

method. Deferred taxes are recognized for temporary differences be-

tween the carrying amounts of assets and liabilities in the consolidated

statement of financial position and their tax base taking into account ac-

tual 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. Develop-

ment 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. Capitalized 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 associated

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 percent-

age-of-completion method. The stage of completion is determined using

the cost-to-cost method. The costs include a risk premium. The consoli-

dated statement of income includes the pro-rata revenue and a carefully

estimated share of the outcome of the contract; the consolidated state-

ment of financial position includes the relevant assets or liabilities after

offsetting advance payments.

102

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 management of cur-

rency risk and credit risk. Derivative financial instruments 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 directives.

Financial assets Cash and

cash equivalents

CHF m Securities

CHF m

Receivables & accruals

CHF m

Financial assets CHF m

Total book value

CHF m

2013

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

Cash and cash

equivalents CHF m

Securities CHF m

Receivables & accruals

CHF m

Financial assets CHF m

Total book value

CHF m

2012

Total market value

CHF m

Cash reserves 305.8 305.8 305.8

Financial assets “at fair value through profit or loss” 72.1 72.1 72.1

Receivables and loans 662.6 75.5 738.1 738.1

Financial assets “available for sale” 12.2 12.2 12.2

Total financial assets 305.8 72.1 662.6 87.7 1,128.2 1,128.2

Financial liabilities

Financial l iabil ities

CHF m

Payables / accruals and

deferred income CHF m

Total book value

CHF m2013

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

Total financial liabilities 175.3 549.3 724.6 724.6

Financial l iabil ities

CHF m

Payables / accruals and

deferred income CHF m

Total book value

CHF m2012

Total market value

CHF m

Financial liabilities at amortized acquisition costs 150.0 535.1 685.1 685.1

Financial liabilities “at fair value through profit and loss” 2.9 2.9 2.9



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 deriva-

tive instruments such as forward contracts and options.

Exchange rate risk. The Group reports in Swiss francs and is therefore

exposed to exchange rate movements primarily in European, North

American, South American, and Asian currencies. Various contracts are

concluded with a view to offsetting exchange rate-related changes in the

value of assets, liabilities and future transactions. Bühler also uses cur-

rency 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 corresponding 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.

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

2012

Currency pair EUR / CHF USD / CHF

Volatility 1.7 % 8.3 %

Effect in profit and loss (rate increase) CHF m 3.5 – 2.3

Effect in profit and loss (rate decrease) CHF m – 3.5 2.2

Commodity risk. Bühler is exposed to a certain degree of commodity

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 strat-

egy approved by the Board of Directors. This sets precise 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 liquidity situation and

the fact that the Group is not reliant on external financing mean that in-

terest 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. Assuming

that the interest rate for all currencies had increased by 100 basis points

while all other factors remained constant, the increased interest rates

would have had an effect on the profit after taxes of CHF 0.0 million (prior

year: CHF – 0.3 million). A reduction of the interest rate by 100 basis

points would have the opposite effect on profit after taxes to the value of

CHF 0.0 million (prior year: CHF 0.3 million).

Credit risk. Credit risks arise in connection with liquid funds, derivative

financial instruments, investments with banks, marketable securities,

and receivables from customers. In order to minimize potential losses on

customers receivables, an Operational Risk Management (ORM) guide-

line has been drawn up. The evaluation of our customers’ financial reli-

ability 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 accounting 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 institu-

tions with at least an A rating as the Group’s main global banks. The risks

are monitored rigorously and kept within stipulated parameters. Group

guide lines ensure that the Group’s credit risk vis-à-vis financial institu-

tions is limited. The limits set are regularly monitored and adjusted. The

Group does not expect to incur any loss as a result of its counterparties

being unable to meet their contractual obligations, nor does it have any

cluster risks with respect to individual sectors or countries.

104

Receivable outstanding analysis

Total book value

Dec 31, 2013

CHF mNot due CHF m

Overdue

2013< 3 months

CHF m4 – 6 months

CHF m7 – 9 months

CHF m10 – 12 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

Total book value

Dec 31, 2012

CHF mNot due CHF m

Overdue

2012< 3 months

CHF m4 – 6 months

CHF m7 – 9 months

CHF m10 – 12 months

CHF m> 12 months

CHF m

Accounts receivable trade and other 664.1 559.7 61.8 15.0 6.5 6.4 14.7

Allowance for bad debts – 12.0 0.0 – 1.6 – 0.4 – 0.2 – 0.3 – 9.5

Associated companies and other

related parties 10.5 10.5

Total accounts receivable, net 662.6 570.2 60.2 14.6 6.3 6.1 5.2

Allowance for bad debts2013

CHF m2012

CHF m

January 1 – 12.0 – 13.9

Additions – 3.7 – 5.1

Consumption 3.2 4.9

Release 2.5 3.7

Changes in scope of consolidation – 0.7 – 1.9

Translation differences – 0.2 0.3

December 31 – 10.9 – 12.0


Liquidity risk. Liquidity risk refers to the risk of the Group being unable

to fulfill its obligations when due or at a reasonable price. The Group

Treasury department is responsible for monitoring liquidity, financing,

and repayment. In addition, liquidity and financing risks and the related

processes and guidelines are checked by corporate management. Bühler

manages its liquidity risk on a consolidated basis, taking into account

business policy, tax, financial and regulatory considerations. Free cash

flow represents the main source of financing. If required, the Group also

has recourse to approved lines of credit. Corporate management moni-

tors the Group’s net liquidity position by means of ongoing forecasts

based on expected cash flows.

Book value Dec 31, 2013

CHF m

Cash outf low

2013Total

CHF m< 1 year

CHF m1 – 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

Book value Dec 31, 2012

CHF m

Cash outf low

2012Total

CHF m< 1 year

CHF m1 – 5 years

CHF m> 5 years

CHF m

Trade accounts payable to third parties 200.9 200.9 200.9

Financial liabilities to banks 0.0 0.0

Liabilities to associates, non-consolidated companies

and related parties 151.9 151.9 65.8 86.1

Liabilities others / accruals and deferred income 335.2 335.2 329.6 5.6

Derivative financial instruments held for hedging net – 1.9 – 1.9 – 1.7 – 0.2

Total 686.1 686.1 594.6 91.5 0.0

Capital management. One of the Group’s main objectives is to apply

a well-managed capital management system in order to ensure the conti-

nuity of the Group and generate added value for all stakeholders. Another

goal is to optimize the cost of capital. Bühler does not have to comply

with any capital requirements imposed by third parties, 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 regular basis. As at December 31, 2013 the equity

ratio stood at 44.6 % (December 31, 2012: 41.2 %).

106

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 corresponding meeting of

the Board of Directors took place on December 20, 2013.

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 observable 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.

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


2012

CHF m Level 1 Level 2 Level 3 Total

Financial assets “at fair value through profit or loss” 67.9 67.9

Derivative financial assets 4.6 4.6

Financial assets “available for sale” 12.2 12.2

Total financial assets 67.9 16.8 0.0 84.7

Derivative financial liabilities 3.1 3.1



1 Sales revenue

CHF 1,478.5 million (prior year: CHF 1,616.5 million) of the total operat-

ing income was determined using the percentage-of-completion method

in the reporting period.

2 Other operating income2013

CHF m2012

CHF m

Earnings from coordination of consortium business 10.2 7.4

Interest income from trade finance 1.4 1.9

Rental income 0.4 0.3

Gains from sale of fixed assets 0.8 4.1

Gains from sale of part of businesses 22.5 0.0

Net result from investments in associates 1.1 0.4

Other operating income related parties 1.2 0.2

Others 31.5 33.4

Total 69.1 47.7

The position “Others” includes other operating income third parties not

belonging to the core business.

3 Employee benefit expenses

2013 CHF m

2012 CHF m

restated 1)

Wages and salaries 584.2 586.1

Social security and employee benefit expenses 94.0 115.5

Other personnel expenses 54.3 54.2

Total 732.5 755.8

1) See page 95

108

4 Other operating expenses2013

CHF m2012

CHF m

Administration expenses 100.4 100.6

Rental and leasing expenses, dues 33.2 28.2

Energy, maintenance and repairs 32.5 27.1

Travel expenses 75.9 75.7

Outbound freight costs 70.8 69.6

Consultancy fees 15.1 16.8

Marketing costs 15.7 16.9

Agency fees 18.2 17.0

Warranty costs, loss orders 1.4 2.8

Other operating expenses related parties 25.2 26.2

Others 38.7 20.8

Total 427.1 401.7

5 Financial result2013

CHF m2012

CHF m

Interest income 4.3 5.7

Interest expenses – 0.9 – 1.2

Total interest result 3.4 4.5

Realized gains from securities 4.7 7.7

Realized losses from securities – 5.0 – 5.4

Total securities result – 0.3 2.3

Interest income from related parties 1.4 1.2

Interest expenses from related parties – 2.3 – 2.3

Total interest result from related parties – 0.9 – 1.1

Fair value adjustments 0.1 4.6

Foreign exchange gains and losses 4.5 9.1

Other financial income and expenses – 0.1 0.8

Total 6.7 20.2

The foreign exchange gain of CHF 4.5 million (prior year: CHF 9.1 million)

was positively influenced by the stable foreign exchange rate deve

lopments in major currencies with some negative impacts from the

devaluation of several minor currencies against CHF. The impact of his

torically low interest rates in most currencies led to an interest result of

CHF 3.4 million (prior year: CHF 4.5 million). The contribution from securi

ties was neutral in 2013 (CHF – 0.3 million) due to the reduced exposure

in bond investments. The fair value adjustments include an impairment of

CHF – 4.5 million relating to a financial asset classified as available for

sale.


6 Taxes

6.1 Income taxes2013

CHF m

2012 CHF m

restated 1)

Income taxes relating to the reporting period – 37.6 – 45.4

Income taxes relating to prior periods 3.3 – 0.6

Deferred taxes due to temporary differences – 2.1 12.4

Deferred taxes due to recognition of tax loss carry-forwards 13.1 1.1

Deferred taxes due to changes in tax rates – 0.1 – 0.6

Total – 23.4 – 33.1

Taxes recognized directly in shareholders’ equity 0.2 – 7.8

1) See page 95

6.2 Reconciliation of income taxes2013

CHF m

2012 CHF m

restated 1)


Components of tax expenses:

Income taxes at anticipated tax rate – 22.8 – 42.4

Income and expenses not subject to tax – 3.7 8.6

Income taxes relating to prior periods 3.3 – 0.6

Deferred taxes due to changes in tax rates – 0.1 – 0.6

Effect of tax loss carry-forwards 0.1 0.8

Effect of losses without recognition of deferred tax assets – 2.1 – 1.3

Other impacts 1.9 2.4

Total income taxes – 23.4 – 33.1

Total income taxes in % of profit before taxes 16.0 % 17.6 %

1) See page 95

The anticipated tax rate was 15.6 % (prior year: 22.3 %) and consisted of

the weighted average of the applicable local tax rates for income taxes.

The effective tax rate decreased to 16.0 % in 2013 from 17.6 % in 2012.

Contributory factors included a sustainable tax management as well as

a specific remission of German trade tax.

6.3 Tax loss carry-forwards2013

CHF m2012

CHF m

Expiry

Unlimited 68.1 13.1

In more than five years 8.5 6.5

In two to five years 8.7 10.0

Within one year 1.5 0.9

Total 86.8 30.5

Tax loss carry-forwards accounted for in deferred taxes 70.8 23.1

Tax effect on tax loss carry-forwards unaccounted for 4.9 1.7

The change in tax loss carry-forwards results from the use of tax losses

in particular in Korea, Italy and the US, as well as from the impact of

additional loss carry forwards in particular in Germany, France, Brazil,

South East Asia and China.

110

7 Movements of property, plant and equipment

Investment properties

CHF m

Land and buildings

CHF m

Machinery and technical

equipment CHF m

Other tangible assets CHF m

Assets under construction

CHF m

Total CHF m

Acquisition cost

January 1, 2012 0.4 240.3 226.3 119.7 12.7 599.4

Additions 0.0 15.2 24.4 14.7 23.3 77.6

Disposals 0.0 – 7.8 – 12.0 – 9.0 – 2.4 – 31.2

Changes in the scope of consolidation 0.0 4.1 6.4 2.7 0.0 13.2

Reclassifications 0.0 0.1 5.8 3.2 – 8.7 0.4

Translation differences 0.0 – 2.8 – 2.4 – 1.3 – 0.5 – 7.0

December 31, 2012 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

Depreciation

January 1, 2012 0.0 – 63.6 – 139.6 – 92.5 0.0 – 295.7

Additions 0.0 – 8.9 – 15.7 – 10.2 0.0 – 34.8

Disposals 0.0 7.7 9.3 6.3 0.0 23.3


Impairment 0.0 0.0 0.0 0.0 0.0 0.0

Reclassifications 0.0 0.0 0.9 – 1.0 – 0.3 – 0.4

Translation differences 0.0 0.4 1.1 1.0 0.0 2.5

December 31, 2012 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

Net book values

January 1, 2013 0.4 184.7 104.5 33.6 24.1 347.3

December 31, 2013 0.4 184.5 110.0 32.4 55.5 382.8

Additions to tangible fixed assets include government grants of CHF

0.0 million (prior year: CHF 5.3 million) attributable to “Land and build-

ings” (see note 30). The market value of investment properties amounted

to CHF 1.5 million in the reporting year (prior year: CHF 1.7 million). As in

previous year, the Group did not enter in financial lease contracts as

lessee. The fire insurance values (usually reinstatement values) of tangi-

ble fixed assets as at December 31, 2013 amounted to CHF 979.8 million

(prior year: CHF 859.1 million). Net profit on disposal of tangible fixed

assets amounted to CHF 0.1 million (prior year: CHF 2.6 million). Com-

mitments relating to property, plant and equipment, which are not shown

in the balance sheet, amounted to CHF 17.3 million (prior year: CHF

38.7 million).


8 Movements of intangible assets

Goodwill CHF m

Other intangible assets CHF m

Total CHF m

Acquisition cost

January 1, 2012 147.1 86.1 233.2

Additions 0.0 4.7 4.7

Disposals 0.0 – 0.1 – 0.1

Changes in the scope of consolidation 108.3 53.1 161.4

Reclassifications 0.0 1.0 1.0

Translation differences – 2.6 – 1.5 – 4.1

December 31, 2012 252.8 143.3 396.1

Additions 0.0 2.9 2.9

Disposals 0.0 – 0.8 – 0.8


Reclassifications 0.0 – 3.1 – 3.1

Translation differences 1.3 – 0.3 1.0

December 31, 2013 259.9 145.9 405.8

Amortization

January 1, 2012 – 11.2 – 46.3 – 57.5

Additions 0.0 – 15.5 – 15.5

Disposals 0.0 0.0 0.0

Impairment 0.0 0.0 0.0


Reclassifications 0.0 – 0.7 – 0.7

Translation differences 0.2 0.7 0.9

December 31, 2012 – 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


Reclassifications 0.0 3.1 3.1

Translation differences 0.3 0.2 0.5

December 31, 2013 – 29.0 – 78.6 – 107.6

Net book values

January 1, 2013 241.8 81.5 323.3

December 31, 2013 230.9 67.3 298.2

The additions to goodwill and intangible assets are mainly attributable to

acquisitions in the year under review (see note 22). The impairment of

goodwill is related to the Leybold business (see note 23).

The other intangible assets mainly comprise customer relationships,

technologies, patents and software.

112

9 Investments in associates

Share in equity CHF m

Goodwill CHF m

Total 2013 CHF m

Total 2012 CHF m

Net book values

January 1 6.8 3.1 9.9 9.4

Reclassifications 0.0 0.0 0.0 0.0

Additions 2.6 4.2 6.8 0.0

Amortization 0.0 0.0 0.0 0.0

Share of net profit 1.3 0.0 1.3 1.3

Dividends received – 0.2 0.0 – 0.2 – 0.9

Translation differences 0.1 0.0 0.1 0.1

December 31 10.6 7.3 17.9 9.9

The addition in the year under review is a 35 % shareholding in the newly

founded holding company which is the owner of the sold business of

Thermal Processes (see note 22). The translation differences are recog-

nized in other comprehensive income. The attributable net result is

shown under “other operating income” in the statement of income.

Cumulative values of the associated companies2013

CHF m2012

CHF m

Share of sales revenue 18.8 10.2

Share of net profit 1.3 1.3

Balance sheet values:

Non-current assets 11.9 3.1

Current assets 15.5 6.0

Non-current liabilities 11.7 1.0

Current liabilities 5.1 1.6

Shareholders’ equity 10.6 6.5

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, 2013.


10 Long-term financial assets

Due 1 – 5 years

CHF m> 5 years

CHF mDecember 31, 2013Total

CHF m

Securities 0.0 1.7 1.7

Overfunding of post-employment benefit plans 0.0 5.0 5.0

Loans to non-consolidated companies 1.6 0.0 1.6

Loans to associated companies 18.4 0.0 18.4

Other non-current financial assets 72.1 4.6 76.7

Total 92.1 11.3 103.4

Due 1 – 5 years

CHF m> 5 years

CHF mDecember 31, 2012, restated 1)Total

CHF m

Securities 0.0 1.7 1.7

Overfunding of post-employment benefit plans 0.0 11.5 11.5

Loans to non-consolidated companies 2.3 0.0 2.3

Other non-current financial assets 72.1 11.6 83.7

Total 74.4 24.8 99.2

1) See page 95

11 Deferred tax assets and liabilities

2013 CHF m

2012 CHF m

restated 1)

1.1.2012 CHF m

restated 1)

Net book values

Tangible fixed assets – 15.9 – 12.3 – 16.6

Post-employment benefits 14.0 30.8 31.3

Provisions – 0.1 – 10.3 0.1

Other items – 76.0 – 81.4 – 77.2

Tax loss carry-forwards 20.2 7.1 6.0

Total – 57.8 – 66.1 – 56.4

Recognized on the balance sheet as deferred tax liabilities – 87.8 – 84.5 – 75.9

Recognized on the balance sheet as deferred tax assets 30.0 18.4 19.5

1) See page 95

Change of deferred tax assets for post-employment benefits is primarily

due to a significant decrease 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.

114

12 Inventories

Gross value CHF m

Value adjustments

CHF m2013

CHF m2012

CHF m

Raw materials and supplies 142.2 – 19.0 123.2 118.7

Unfinished goods 53.0 – 11.2 41.8 41.8

Finished goods and merchandise 73.8 – 5.3 68.5 61.1

Work in progress 86.4 – 2.1 84.3 72.4

Advance payments to suppliers 17.2 0.0 17.2 27.8

Total 372.6 – 37.6 335.0 321.8

In prior year, value adjustments deducted from inventories amounted to

CHF – 39.6 million. No material reversals of value adjustments of the prior

year were recognized in the reporting year.

13 Production orders in progress2013

CHF m2012

CHF m

Production orders in progress 353.8 351.6

Advance payments from customers – 145.8 – 144.4

Net assets of production orders in progress 208.0 207.2

Production orders in progress – 54.0 – 19.8

Advance payments from customers – 279.1 – 301.2

Net liabilities of production orders in progress – 333.1 – 321.0

Accumulated costs and recognized profits 1,586.8 1,490.1

14 Trade accounts receivable2013

CHF m2012

CHF m

Trade accounts receivable

from third parties 513.6 553.2

from non-consolidated companies 3.3 2.2

from associates 1.3 0.0

from related parties 0.1 0.2

Allowance for bad debts – 10.1 – 11.2

Total 508.2 544.4

The trade accounts receivable include supplier credits of CHF 106.1 mil-

lion (prior year: CHF 112.4 million), which are financed in accordance

with the treasury strategy. A generally high degree of liquidity character-

izes these items.

CHF 50.3 million (prior year: CHF 53.8 million) of these will not be due

within the next twelve months.


15 Other accounts receivable, prepayments and accrued income2013

CHF m2012

CHF m

Value added tax credits 38.0 43.0

Other accounts receivable

from third parties 39.1 39.6

from non-consolidated companies 3.9 6.5

from associates 0.2 0.0

from related parties 2.6 1.5

Prepayments and accrued income 28.1 28.4

Allowance for bad debts – 0.8 – 0.8

Total 111.1 118.2

16 Marketable securities and derivative financial instruments

Futures and options were entered into with banks mainly to hedge cur-

rency risks. The following positions were open as at December 31, 2013:

Contract or underlying principal amount Positive fair values Negative fair values

16.1 Derivative financial instruments2013

CHF m2012

CHF m2013

CHF m2012

CHF m2013

CHF m2012

CHF m

Currency-related instruments

Forward foreign exchange rate contracts 584.7 608.9 6.8 4.5 2.0 3.0

held for trading 222.1 247.6 4.1 1.1 0.6 1.5

cash flow hedges (effective part) 362.6 361.3 2.7 3.4 1.4 1.5

Over the counter currency options 194.0 21.9 1.6 0.1 0.6 0.1

Total of currency-related instruments 778.7 630.8 8.4 4.6 2.6 3.1

Interest-rate related instruments

Interest rate swaps 0.0 0.0 0.0 0.0 0.0 0.0

Forward rate agreements 0.0 0.0 0.0 0.0 0.0 0.0

Total of interest-rate related instruments 0.0 0.0 0.0 0.0 0.0 0.0

Options 0.0 0.0 0.0 0.0 0.0 0.0

Futures 0.0 0.0 0.0 0.0 0.0 0.0

Total derivative financial instruments 778.7 630.8 8.4 4.6 2.6 3.1

Thereof included in securities and in

short-term financial liabilities 738.8 581.9 8.2 4.2 2.6 2.9

Thereof included in other long-term

financial assets and financial liabilities 39.9 48.9 0.2 0.4 0.0 0.2

116

USD CHF m

EUR CHF m

Other currencies

CHF m

Total 2013

CHF m

Total 2012

CHF m

Currency-related instruments

Forward foreign exchange rate contracts 212.4 280.8 91.5 584.7 608.9

held for trading 63.1 69.3 89.7 222.1 247.6

cash flow hedges 149.3 211.5 1.8 362.6 361.3

Over the counter currency options 127.1 48.6 18.3 194.0 21.9

Total of currency-related instruments 339.5 329.4 109.8 778.7 630.8

Interest-rate related instruments

Interest rate swaps 0.0 0.0 0.0 0.0 0.0

Forward rate agreements 0.0 0.0 0.0 0.0 0.0

Total of interest-rate related instruments 0.0 0.0 0.0 0.0 0.0

Options 0.0 0.0 0.0 0.0 0.0

Futures 0.0 0.0 0.0 0.0 0.0

Total derivative financial instruments 339.5 329.4 109.8 778.7 630.8

Positive replacement values are included in securities or long-term finan-

cial assets and negative replacement values are included in financial

liabilities.

16.2 Marketable securities2013

CHF m2012

CHF m

Equity securities 4.4 3.9

Bonds 0.0 42.4

Derivative financial instruments 8.2 4.2

Accrued interest on debt securities 0.0 0.8

Other securities 19.9 20.8

Total marketable securities 32.5 72.1


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 funding of these

plans, which may from time to time involve special payments, 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 ben-

efit plan. Employer and employee contributions are defined in the pension

fund rules in terms of an age related sliding scale of percentages 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 Trust-

ees 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.

In the year under review a gain from a change in planned annuity of

CHF 25.1 million was recognized in the employee benefit expenses (see

note 3). This was part of a comprehensive restructuring of the pension

fund, which led to a significant decrease in the net defined benefit obli-

gation.

Another material impact in 2013 was the decrease in the net defined ben-

efit obligation of CHF 1.7 million due to the deconsolidation of Bühler

Thermal Processes AG.

Pension plans in Germany. The company’s German pension plans have

defined benefit rights based on their length of service and / or final pen-

sionable 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 combi-

nations / curtailments / settlements occurred during the reported finan-

cial 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.

17.1 Actuarial assumptions 2013 2012

Discount rate 2.7 % 2.7 %

Future salary increases 1.4 % 1.4 %

Future pension increases 0.2 % 0.2 %

118

17.2 Reconciliation of defined benefit obligation and fair value of plan assets2013

CHF m

2012 CHF m

restated 1)

Defined benefit obligation at January 1 1,207.8 1,160.5

Interest costs 32.0 32.5

Current service costs (employer) 25.1 25.0

Contributions by plan participants 21.9 19.0

Past service costs – 25.1 0.0

Benefits (paid) / deposited – 68.9 – 63.0

Business combinations – 16.0 22.8

Curtailment and settlements 0.0 0.0

Other effects 0.7 0.6

Actuarial (gain) loss on obligation 24.4 10.5

Currency translation adjustments 0.8 – 0.1

Defined benefit obligation at December 31 1,202.7 1,207.8

Reconciliation of the fair value of plan assets

Fair value of plan assets at January 1 1,055.8 1,002.6

Expected return on plan assets 28.7 27.5

Contributions by the employer 100.8 30.0

Contributions by plan participants 21.9 19.0

Benefits (paid) / deposited – 68.9 – 63.0

Business combinations – 14.3 0.0

Curtailment and settlements 0.0 0.0


Return on plan assets excl. interest income 33.1 39.7

Currency translation adjustments 0.6 0.0

Fair value of plan assets at December 31 1,157.7 1,055.8

Actual return on plan assets 61.8 67.2

1) See page 95

17.3 Remeasurements of employee benefits 2013

CHF m

2012 CHF m

restated 1)

Return on plan assets excl. interest income – 33.1 – 39.7

Current year actuarial loss (gain) on benefit obligation:

change in demographic assumptions 47.8 0.0

change in financial assumptions 3.5 26.6

experience adjustments – 26.9 – 16.0

Change in effect of asset ceiling 12.0 – 3.9


Remeasurements recognized in other comprehensive income 3.3 – 33.0

Cumulative amount recognized in other comprehensive income 203.9 200.6

1) See page 95


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

2013 CHF m

2012 CHF m

restated 1)

1.1.2012 CHF m

restated 1)

Present value of funded defined benefit obligation 1,202.7 1,207.8 1,160.5

Fair value of plan assets 1,157.7 1,055.8 1,002.6

Deficit / (surplus) 45.0 152.0 157.9

Adjustment to asset ceiling 12.6 0.7 4.4

Liability (asset) recognized in the statement of financial position 57.6 152.7 162.3

Thereof recognized as separate asset – 5.0 – 11.5 – 5.4

Thereof recognized as separate liability 62.6 164.2 167.7

1) See page 95

17.5 Pension expenses recognized in the statement of income 2013

CHF m

2012 CHF m

restated 1)

Current service costs (employer) 25.1 25.0

Net interest employee benefit 3.4 5.1

Past service costs – 25.1 0.0

Effect of curtailment and settlements 0.0 0.0


Interest (income) on reimbursement right 0.0 0.0

Expenses recognized in the statement of income 4.0 30.7

Thereof service costs and administration costs 0.6 25.6

Thereof net interest on the net defined benefit liability (asset) 3.4 5.1

1) See page 95

17.6 Best estimate of contributions2014

CHF m

Contributions by the employer 28.4

17.7 Plan assets at fair value consist of2013

CHF m2012

CHF m

Equity instruments of the company 0.0 0.0

Equity instruments third parties 356.0 356.9

Debt instruments third parties 274.9 265.8

Real estate 284.9 258.6

Cash and cash equivalents 148.9 53.6

Others 93.0 120.9

Total plan assets at fair value 1,157.7 1,055.8

120

17.8 Information about the significant plans2013

Switzerland2013

Germany2012

Switzerland2012

Germany

Discount rate 2.6 % 3.5 % 2.6 % 3.8%

Future salary increases 1.5 % 0.0 % 1.5 % 0.0 %

Costs of defined benefit plans 1.7 1.8 28.1 1.2

Remeasurements employee benefits 4.6 – 0.5 – 41.2 7.0

17.9 Defined contribution plan2013

CHF m2012

CHF m

Expenses for defined contribution plan 5.6 4.7

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 assump-

tions after considering the most recent statistics availabe and uses gen-

erational mortality tables to estimate probable future mortality improve-

ments.

Sensitivities of significant actuarial assumptions. The discount rate

and the future increase in salaries were identified as significant actuarial

assumptions. The following impacts on the defined benefit obligation are

to be expected:

0.25 % increase / decrease in the discount rate would lead to

a decrease / increase of 3 % in the defined benefit obligation.

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.

18 Short- and long-term provisions

Provisions for warranties

CHF m

Provisions for personnel expenses

CHF m

Other provisions

CHF m

2013 CHF m

2012 CHF m

January 1 50.1 45.0 13.7 108.8 99.1

Additions 23.1 7.9 13.7 44.7 47.7

Utilization – 22.7 – 17.1 – 6.6 – 46.4 – 28.7

Release – 9.9 – 2.9 – 2.9 – 15.7 – 22.0

Changes in the scope of consolidation 0.0 – 0.3 0.0 – 0.3 13.3

Reclassification 0.3 0.1 – 0.1 0.3 0.3

Present value adjustment 0.0 0.0 0.0 0.0 0.0

Translation differences – 0.3 – 0.5 – 0.2 – 1.0 – 0.9

December 31 40.6 32.2 17.6 90.4 108.8

Thereof short-term 33.7 13.8 15.3 62.8 67.1

Thereof long-term 6.9 18.4 2.3 27.6 41.7

Warranty provisions are created with a view to meet potential guarantee

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 employee

benefits, such as long-service benefits, partial retirement, jubilee bene-

fits and deferred compensation plans. The revaluation of the deferred

compensation plans as of December 31, 2013 resulted in an income of

CHF 0.9 million (prior year: expense of CHF 7.9 million).

Among other things the remaining provisions include provisions for pend-

ing legal cases, other project risks as well as a provision for restructuring

related to the shutdown of the Solar business and the restructuring of

the remaining business of Leybold Optics amounting to CHF 6.8 million

(prior year: CHF 0.3 million).

Approximately 29 % (prior year: 42 %) of the cash out-flows of the long-

term provisions are expected to materialize within the next three years.


19 Share capital

As of December 31, 2013 share capital amounted to CHF 15.0 million

(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 payable2013

CHF m2012

CHF m

Trade accounts payable

to third parties 191.8 200.9

to associates 1.4 2.1

to non-consolidated companies 0.8 0.6

to related parties 1.9 2.3

Total 195.9 205.9

21 Other short-term liabilities, accruals and deferred income2013

CHF m2012

CHF m

Value added tax owed 13.0 24.9

Advance payments 137.9 114.7

Other liabilities

to third parties 42.1 38.9

to non-consolidated companies 1.9 2.0

to associates 0.0 0.0

to related parties 28.0 0.8

Personnel related accruals 60.8 73.4

Other accruals and deferred income 69.7 74.5

Total 353.4 329.2

122

22 Additions and disposals of Group companiesBook value

2013 CHF m

Market value 2013

CHF m

Market value 2012

CHF m

Cash and cash equivalents – 2.6 – 2.6 10.9

Trade accounts receivable 4.1 3.4 20.1

Other receivables – 12.9 – 12.9 30.2

Inventories 0.6 0.6 40.6

Net assets of production orders in progress 11.2 11.2 31.0

Current assets 0.4 – 0.3 132.8

Property, plant and equipment 2.5 2.5 13.2

Intangible assets – 0.5 3.9 53.1

Financial assets 0.2 0.2 1.8

Deferred tax asset – 0.3 – 0.3 2.6

Non-current assets 1.9 6.3 70.7

Trade accounts payable – 14.9 – 14.9 – 36.9

Net liabilities of production orders in progress 2.3 2.3 – 24.0

Short-term provisions 0.0 0.0 – 10.7

Other short-term liabilities. accruals and deferred income – 1.6 – 1.6 – 42.1

Current liabilities and provisions – 14.2 – 14.2 – 113.7

Deferred tax liabilities 0.0 – 1.0 – 18.2

Non-current liabilities and provisions 1.5 1.5 – 59.9

Non-current liabilities and provisions 1.5 0.5 – 78.1

Change in net assets – 10.4 – 7.7 11.7


Effect of foreign exchange 0.0 – 0.2

Goodwill arising on acquisitions 5.8 108.3

Gain on sale of Business – 22.5 0.0

Addition (+) to- / disposal (–) from the Group – 24.4 119.8

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

Cash disposed of (–) / acquired (+) – 2.6 10.9

Cash flow from changes in the scope of consolidation – 0.2 – 108.9

The goodwill in the amount of CHF 5.8 million (prior year: CHF 108.3 mil-

lion) comprises the value of expected synergies arising from the acquisi-

tions.

In the reporting period, the acquisition of Bühler Haguenau S.A.S, France

with an addition to the Group in the amount of CHF 7.7 million and the sale

of Bühler Thermal Processes AG, Switzerland with a disposal from the

Group in the amount of CHF – 32.6 million had the most substantial im-

pact. The gain from the sale of Bühler Themal Processes AG amounted

to CHF 22.5 milion and is shown under other operating income.

The acquired trade accounts receivable included an allowance for bad

debts in the amount of CHF 0.7 million (prior year: CHF 1.9 million).

As in prior year, the acquisition related costs were not material. They were

recognized as other operating expenses in the statement of income.


2013

Acquisition of Bühler Haguenau S.A.S. in Haguenau, France. On

January 8, 2013 the Group acquired 100 % of the shares in Maes SA

which was subsequently renamed. The company provides customer ser-

vices 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

services 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 company con-

ducts sales activities and provides services to our customers 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 provides

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 ker-

nels, 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 com-

pany provides services to our customers in Nigeria.

2012

Establishment of Bühler CZ s.r.o. and acquisition of a manufactor-

ing facility in Zamberk, Czech Republic. On January 1, 2012 Bühler

CZ s.r.o. acquired a manufacturing facility in Zamberk. With these manu-

facturing capacities, the Group is pursuing the strategic goals of continu-

ing the growth especially in Eastern Europe and manufacturing the prod-

ucts as closely to the customers as possible, of building a cost-efficient

production site for the top market, and of increasing the flexibility by ab-

sorbing capacity peaks in the future.

Acquisition of Bühler Satis Ve Servis Hizmetleri Ticaret Limited

Sirketi in Izmir, Turkey. On February 3, 2012 the Group acquired 90 %

of the shares in Tijdhof Tarim Aletlerim Pazarlama Makina Sanayi ve Ti-

caret Limited Sirketi in Izmir, Turkey, which was subsequently renamed.

The company sells extrusion dies and provides customer services for the

feed and biomass market.

Establishment of Bühler Grain Inspection Apparatus Wuxi Co.Ltd.

and acquisition of a roll servicing facility in Wuxi, China. On Febru-

ary 3, 2012 Bühler Grain Inspection Apparatus Wuxi Co.Ltd. acquired

a roll servicing facility in Wuxi, China. With the roll servicing facility, the

Group is expanding its customer service capacities for the grain milling

market in China.

Establishment of Buhler Vietnam Co. Ltd., Vietnam. On February 6,

2012 the Group founded Buhler Vietnam Ltd. with a capital of VND 5.7

million. The company conducts sales activities and provides services to

our customers in Vietnam.

Acquisition of Leybold Optics Verwaltungs GmbH, Germany and its

subsidiaries. On May 10, 2012 the Group acquired 100 % of the shares

in Leybold Optics Verwaltungs GmbH in Alzenau, Germany and its sub-

sidiaries. Leybold Optics headquarter is located in Alzenau, Germany.

The company has additional development and production locations in

Germany, the United States, and China. Leybold Optics has a proven

know-how in the field of systems and production plants for vacuum de-

position of so-called functional layers for a broad range of applications.

Acquisition of Bühler Brescia Presse S.r.l., Italy. On July 5, 2012 the

Group acquired 100 % of the shares in Brescia Presse S.r.l. in Brescia,

Italy, which was subsequently renamed into Bühler Brescia Presse S.r.l.

The company provides reconditioning and retrofitting services for die

casting machines and systems.

23 Impairment testsThe recoverable amounts have been determined based on a value-in-use

calculation. This calculation uses cash flow projections based on finan-

cial budgets approved by the respective division management covering

a five-year period.

Key assumptions used in value-in-use calculations. The calcula-

tions of values in use are most sensitive to the following assumptions:

Gross margin

Discount rate

Growth rate used to extrapolate cash flows beyond

the budget period

Raw materials price inflation

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 dis-

counted 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 pre-

miums.

Growth rate estimates – The assumptions used in the calculation reflect

the long-term expected growth rate of the operational business 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.

124

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, 2013 support the value of the carrying amount with the

following exception. Due to the decision to close a part of the Leybold

business the allocated goodwill of CHF 6.8 million was impaired. Further-

more, an updated estimate on the remaining part of the Leybold business

led to an impairment of the goodwill amounting to CHF 11.5 million,

driven by the current performance. In prior year, no impairment was rec-

ognized.

Sensitivity to changes in assumptions. A possible increase in the

discount rate of 1 percentage point would result in an impairment of

CHF 12.7 million (prior year: CHF 5.3 million). A drop in sales of 5 percent-

age points would cause the carrying amount to exceed its recoverable

amount by CHF 19.2 million (prior year: CHF 9.6 million).

Book value CHF m

Base data used

Goodwill 2013 Discount rate Growth rate

Leybold Optics Verwaltungs GmbH, Alzenau 89.7 10.7 % 1.2 %

Aeroglide Corporation, Cary 55.4 10.7 % 1.2 %

Schmidt-Seeger GmbH, Beilngries 42.1 10.7 % 1.2 %

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

Hefei Yijiete Optoelectronic Technology Co. Ltd. 7.0 11.7 % 3.1 %

Bangsheng Bio-Technology Co. Ltd. 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

Book value CHF m

Base data used

Goodwill 2012 Discount rate Growth rate

Leybold Optics Verwaltungs GmbH, Alzenau 106.1 9.4 % 1.0 %

Aeroglide Corporation, Cary 56.8 8.4 % 1.0 %

Schmidt-Seeger GmbH, Beilngries 41.3 8.2 % 1.0 %

Bühler Barth AG, Freiberg a. N. 17.9 8.2 % 1.0 %

Hefei Yijiete Optoelectronic Technology Co. Ltd. 7.0 9.3 % 1.0 %

Bangsheng Bio-Technology Co. Ltd. 6.6 9.3 % 1.0 %

Others 6.1 8.7 % 1.0 %

Total at December 31, 2012 241.8

24 Contingent liabilities

2013 CHF m

2012 CHF m

Sureties, guarantees and other obligations 0.5 1.2

Total 0.5 1.2


25 Off-balance sheet obligations under operating leases

2013 CHF m

2012 CHF m

Leasing obligation up to one year 22.1 23.2

Leasing obligation as of one to five years 21.0 26.9

Leasing obligation over five years 7.0 6.1

Total 50.1 56.2

This item mainly includes obligations under long-term leasing agreements

relating to properties in Brazil, Germany, Switzerland, China and the UK.

26 Assets pledged or assigned to secure own liabilities

In connection with the renewed long-term loan from the shareholders of

CHF 55 million and open legal cases, assets of CHF 45.0 million and CHF

0.8 million respectively (prior year: CHF 0.0 million and CHF 0.7 million)

serve as collateral for own liabilities where the right of disposal is limited.

27 Research and development costs

Research and development costs directly charged to the statement of

income in the reporting period amounted to CHF 108.6 million (prior year:

CHF 103.8 million). The main research and development unit is located at

the Uzwil headquarters.

28 Related parties

Related party transactions. A loan towards the shareholders in the

amount of CHF 70.0 million (prior year: CHF 70.0 million) is disclosed un-

der other non-current financial assets. Loans from the shareholders of

CHF 139.1 million (prior year: CHF 86.1 million) are disclosed under long-

term financial liabilities. Due to a renewal of a shareholder loan CHF 55.0

million (prior year: CHF 58 million) were reclassified from short-term to

long-term financial liabilities in 2013. Liabilities to pension plans amount-

ed to CHF 54.3 million as per 2013 (prior year: CHF 0.5 million) and are

mainly related to a comprehensive restructuring of the Swiss pension

fund. From this amount CHF 27.0 million are shown under long-term finan-

cial liabilities whereas CHF 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 compen-

sation of CHF 8.1 million (prior year: CHF 8.5 million). In addition, pension

and social security contributions of CHF 1.1 million (prior year: CHF

1.1 million) are recorded as expense. The provisions for other long-term

benefits were adjusted with a positive impact of CHF 0.9 million (prior year:

expense of CHF 7.9 million).

29 Proposal of the Board of Directors

At the General Meeting, the Board of Directors proposes a dividend of

CHF 15.0 million (prior year: CHF 18.0 million) or CHF 100 (prior year:

CHF 120) per registered share with a nominal value of CHF 100 and

CHF 40 (prior year: CHF 48) per registered share with a nominal value of

CHF 40. The dividend payment to the shareholders of the Bühler Holding

AG amounted to CHF 18.0 million in the financial year 2013 (prior year:

CHF 18.0 million).

30 Government grants

Government 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 2013, the Group

received government grants in the amount of CHF 0.4 million relating to

income. In 2012, the construction 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 2014.

31 Release for publication of the consolidated financial statements

The consolidated financial statements were released for publication by

the Board of Directors of the Bühler Holding AG on February 10, 2014.

32 Subsequent events

Apart from the event mentioned below, no material events have occurred

after the balance sheet date:

As of 15 January 2014, Bühler (China) Holding Co. Ltd. has acquired 80 %

of the shares of Guangzhou Jinfu Electromechanical Technology Co. Ltd.

in China for CHF 6.0 million.

126

Report of the statutory auditor on the consolidated financial statements

As statutory auditor, we have audited the consolidated financial state-

ments of Bühler Holding AG, which comprise the consolidated statement

of income, consolidated statement of comprehensive income, consoli-

dated statement of financial position, consolidated statement of changes

in equity, consolidated statement of cash flows and notes (pages 89 to

125) for the year ended December 31, 2013.

Board of Directors’ responsibility. The Board of Directors is respon-

sible for the preparation and fair presentation of the consolidated finan-

cial 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 and fair presentation 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 statements based on our audit. We con-

ducted our audit in accordance with Swiss law and Swiss Auditing Stan-

dards and International Standards on Auditing (ISA). Those standards

require that we plan and perform the audit to obtain reasonable assur-

ance whether the consolidated financial statements are free from mate-

rial 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 and fair presentation of the consolidated finan-

cial statements in order to design audit procedures that are appropriate

in the circumstances, but not for the purpose of expressing an opinion on

the effectiveness of the entity’s internal control system. An audit also in-

cludes evaluating the appropriateness of the accounting policies used

and the reasonableness of accounting estimates made, as well as evalu-

ating 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, 2013 give a true and fair view of the financial

position, the results of operations and the cash flows in accordance with

IFRS and comply with Swiss law.

Report on other legal requirements

We 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 Audit-

ing 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 AG

Thomas Stenz Bernhard Joehr

Licensed audit expert Licensed audit expert

(Auditor in charge)

REPORT OF THE STATUTORY AUDITOR.To the General Meeting of Bühler Holding AG, Uzwil, St. Gallen, February 10, 2014

127Bühler Financial Report 2013 Consolidated Financial Statements

Financial Statements Bühler Holding AG

FINANCIAL STATEMENTS BÜHLER HOLDING AG.

128

INCOME STATEMENT BÜHLER HOLDING AG.

See notes2013

CHF m2012

CHF m

Income from subsidiaries 2 189.5 102.7

Financial income 3 28.7 21.8

Other income 4 37.4 1.1

Total income 255.6 125.6

Expense from subsidiaries 0.0 0.0

Amortization – 0.5 – 0.9

Financial expenses 5 – 23.4 – 9.5

Other expenses 6 – 1.1 – 1.5

Taxes – 6.6 – 2.4

Net income for the year 224.0 111.3



BALANCE SHEET BÜHLER HOLDING AG.As at December 31

See notes 2013

CHF m2012

CHF m

Assets

Investments in subsidiaries 7 562.3 541.5

Loans to Group companies 8 205.6 192.6

Loans to related parties 9 88.4 70.0

Intangible Assets 0.0 0.5

Non-current assets 856.3 804.6

Accounts receivable from Group companies 10 173.7 109.9

Other accounts receivable 1.2 1.0

Prepayments and accrued income 0.1 0.0

Cash and cash equivalents 17.3 14.4

Current assets 192.3 125.3

Total assets 1,048.6 929.9

Shareholders’ equity and liabilities

Share capital 15.0 15.0

General legal reserves 7.5 7.5

Free reserves 275.6 275.6

Available earnings brought forward from prior year 354.2 260.9

Net income for the year 224.0 111.3

Shareholders’ equity 876.3 670.3

Liabilities to Group companies 11 83.0 177.2

Liabilities to third parties 0.2 0.1

Liabilities to related parties 0.6 0.7

Short-term provisions 12 15.8 9.9

Accruals and deferred income 2.7 1.7

Short-term liabilities 102.3 189.6

Loans from related parties 9 70.0 70.0

Long-term liabilities 70.0 70.0

Total liabilities 172.3 259.6

Total shareholders’ equity and liabilities 1,048.6 929.9

130

NOTES TO THE FINANCIAL STATEMENTS BÜHLER HOLDING AG.

1 General information

The financial statements of Bühler Holding AG were prepared in accor-

dance with the provisions of the Swiss Code of Obligations.

From a legal point of view, shareholders hold an interest in Bühler Holding

AG, whose balance sheet and income statement are presented above.

From an economic point of view, the consolidated financial statements

are relevant to the shareholders of Bühler Holding AG. The balance sheet

and income statement of Bühler Holding AG are presented as a supple-

ment to the consolidated financial statements.

Except for the notes presented below, there are no circumstances

which require reporting pursuant to Article 663b of the Swiss Code of

Obligations.

2 Income from subsidiaries

This position mainly comprises dividend income from subsidiaries and

other participations.

3 Financial income

Financial income mainly includes interest income on loans to Group

companies, as well as net exchange gains.

4 Other income

Other income comprises gain from sale of investments, positive value

adjustments of investments as well as licence fee income.

5 Financial expenses

Financial expenses primarily include interest expenses paid to Group com-

panies as well as net exchange losses.

6 Other expenses

Other expenses predominantly include negative value adjustments of

loans and investments.

7 Investments in subsidiaries

Investments in subsidiaries are valued at acquisition cost less economi-

cally necessary value adjustments. Major investments in subsidiaries

held directly or indirectly by Bühler Holding AG are listed in the section

“Group companies Bühler Holding AG” of the financial statements.

8 Loans to Group companies

Loans to Group companies are granted at arm’s length conditions and are

typically long term (more than one year).

9 Loans to and from related parties

These loans are owed from and to the shareholders as well as from other

related parties (associates).

10 Accounts receivable from Group companies

Accounts receivable from Group companies mainly include short-term

loans extended to Group companies for working capital financing and as

part of cash management.

11 Liabilities to Group companies

Liabilities to group companies primarily consist of short-term liabilities

related to cash pooling (mainly Bühler AG, Uzwil) as part of cash manage-

ment.

12 Provisions

This item mainly includes provisions for currency risks relating to loans to

Group companies and accounts receivable from Group companies.



13 Sureties and guarantee obligations2013

CHF m2012

CHF m

Sureties and guarantee obligations in favor of Group companies 518.9 451.6

14 Proposal of the Board of Directors for the appropriation of available earnings

2013 CHF m

2012 CHF m

Result for the year 224.0 111.3

Balance brought forward from prior year 354.2 260.9

Available earnings at the disposal of the General Meeting 578.2 372.2

The Board of Directors proposes to the General Meeting:

The distribution of a dividend 15.0 18.0

Carry forward to new accounting period 563.2 354.2

The statutory obligation of appropriation to reserves is waived as the legal

reserve amounts to 50 % of the paid-in share capital.

15 Risk assessment

The risk assessment pursuant to the Swiss Code of Obligations OR 663b,

section 12, has been conducted at Group level by the Board of Directors of

Bühler Holding AG / Bühler AG at the meetings of the Board of Directors

(see Risk assessment under Financial risk management in the notes to

the consolidated financial statements).

132

GROUP COMPANIES BÜHLER HOLDING AG.As at December 31, 2013. All companies listed are included as fully consolidated companies.

Production Engineering Share capital Partici- Distribution in millions of pation Services / Name of company Country local currency rate Financing Held by

Switzerland

Bühler Holding AG, Uzwil CH CHF 15.0

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

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

Bühler Management AG, Uzwil CH CHF 0.1 100.0 % Bühler Holding AG, Uzwil

Bühler + Scherler AG, St. Gallen CH CHF 0.8 60.0 % Bühler Holding AG, Uzwil

Europe

Bühler CZ s.r.o., Zamberk CZ CZK 125.2 100.0 % Bühler Holding AG, Uzwil

Bühler Praha s.r.o. CZ CZK 11.0 100.0 % Bühler Holding AG, Uzwil

Bühler Barth AG, Freiberg a.N. DE EUR 1.137 100.0 % Bühler AG, Uzwil

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

Bühler GmbH, Beilngries DE EUR 16.0 100.0 % Bühler Deutschland GmbH, Beilngries

Bühler Deutschland Holding GmbH, DE EUR 0.025 100.0 % Bühler AG, Uzwil

Braunschweig

Bühler Bindler GmbH, Bergneustadt DE EUR 0.275 100.0 % Bühler Deutschland Holding GmbH,

Braunschweig

Bühler GmbH, Braunschweig DE EUR 12.629 100.0 % Bühler Deutschland Holding GmbH,

Braunschweig

Bühler PARTEC GmbH, Saarbrücken DE EUR 0.125 100.0 % Bühler AG, Uzwil

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

Alzenau

Leybold Optics GmbH, Alzenau DE EUR 0.050 100.0 % Leybold Optics Verwaltungs GmbH,

Alzenau

Leybold Optics Dresden GmbH, Dresden DE EUR 0.050 100.0 % Leybold Optics GmbH, Alzenau

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

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

Buhler S.à.r.l., Paris FR EUR 2.55 100.0 % Bühler Holding AG, Uzwil

Leybold Optics France S.A.R.L., FR EUR 0.100 100.0 % Buhler S.à.r.l., Paris

Villebon sur Yvette

Buhler UK Holdings Ltd., London GB GBP 3.6 100.0 % Bühler Holding AG, Uzwil

Buhler Ltd., London GB GBP 1.0 100.0 % Buhler UK Holdings Ltd., London

Buhler Sortex Ltd., London GB GBP 1.25 100.0 % Buhler UK Holdings Ltd., London

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

Peterborough

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

Leybold Optics UK Ltd., Manchester GB GBP 0.500 100.0 % Leybold Optics GmbH, Alzenau

Buhler Brescia Presse S.R.L., Brescia IT EUR 0.010 100.0 % Bühler AG, Uzwil

Buhler S.p.A., Milano IT EUR 2.6 100.0 % Bühler Holding AG, Uzwil

Bühler B.V., Oldenzaal NL EUR 0.034035 100.0 % Bühler Holding AG, Uzwil




North America

Buhler (Canada) Inc., Markham CA CAD 0.000001 100.0 % Bühler Holding AG, Uzwil

Buhler US Holding Inc., Minneapolis US USD 0.005 100.0 % Bühler Holding AG, Uzwil

Buhler Aeroglide Corporation, Cary US USD 0.004 100.0 % Buhler US Holding Inc., Minneapolis

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

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

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

Leybold Optics USA Inc., Cary US USD 0.1 100.0 % Leybold Optics GmbH, Alzenau

Latin America

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

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

Bühler Sanmak Industria BR BRL 15.5 100.0 % Bühler Holding AG, Uzwil

de Maquinas S.A., Blumenau

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

Middle East and Africa

Buhler (Private Joint Stock Co.), Teheran IR IRR 9250.0 100.0 % Bühler Holding AG, Uzwil

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

Buhler Limited, Lagos, Nigeria NG NGN 15.0 100.0 % Bühler Holding AG, Uzwil

Bühler Satis Ve Servis Hizmetleri TR TL 0.1 90.0 % Bühler Holding AG, Uzwil

Ticaret Limited Sirketi, Izmir

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

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

Johannesburg

Buhler Service Station (Zambia) Ltd., ZM ZMK 700.0 100.0 % Buhler (Pty) Ltd., Johannesburg

Lusaka

134


Asia

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

Guangzhou

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

Liyang City

Changzhou Buhler Mechanical and CN CNY 3.0 80.0 % Buhler (Changzhou) Machinery Co. Ltd.,

Electric Engineering Co. Ltd., Liyang City Liyang City

Buhler (China) Holding Co. Ltd., Wuxi CN USD 38.0 100.0 % Bühler Holding AG, Uzwil

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

Manufacturing Co. Ltd., Wuxi

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

Machinery Co. Ltd., Guangzhou City

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

(Hefei) Co. Ltd., Hefei

Jiangsu Buhler Industry CN CNY 190.0 100.0 % Buhler (China) Holding Co. Ltd., Wuxi

Development Co. Ltd., Liyang City

Buhler Equipment Engineering (Wuxi) CN CHF 2.1 100.0 % Bühler Holding AG, Uzwil

Co. Ltd., Wuxi

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

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

Co. Ltd., Guangzhou

Buhler Industrial (Shenzhen) Co. Ltd., CN USD 1.96 100.0 % Bühler Holding AG, Uzwil

Shenzhen

Buhler Mechanical Equipment CN USD 0.6 100.0 % Bühler Holding AG, Uzwil

(Shenzhen) Co. Ltd., Shenzhen

Buhler (Wuxi) Commercial Co. Ltd., Wuxi CN USD 5.5 100.0 % Bühler Holding AG, Uzwil

Buhler Fuyang Machinery Co. Ltd., CN CNY 3.0 100.0 % Buhler (Wuxi) Commercial Co. Ltd., Wuxi

Fuyang City

Buhler Grain Inspection CN CNY 4.5 100.0 % Buhler (Wuxi) Commercial Co. Ltd., Wuxi

Apparatus Wuxi Co., Ltd., Wuxi

Changji Buhler Machinery Co. Ltd., CN CNY 2.5 100.0 % Buhler (Wuxi) Commercial Co. Ltd., Wuxi

Changji

Chengdu Buhler Machinery Co. Ltd, CN CNY 3.0 100.0 % Buhler (Wuxi) Commercial Co. Ltd., Wuxi

Chengdu

Dongguan Buhler Machinery Co. Ltd., CN CNY 3.0 100.0 % Buhler (Wuxi) Commercial Co. Ltd., Wuxi

Dongguan City

Hebei Buhler Machinery Co. Ltd., Hebei CN CNY 3.0 100.0 % Buhler (Wuxi) Commercial Co. Ltd., Wuxi

Shenyang Buhler Machinery Co. Ltd., CN CNY 3.0 100.0 % Buhler (Wuxi) Commercial Co. Ltd., Wuxi

Shenyang




Asia (continued)

Weifang Buhler Machinery Co. Ltd., CN CNY 3.8 100.0 % Buhler (Wuxi) Commercial Co. Ltd., Wuxi

Weifang City

Xianyang Buhler Machinery Co. Ltd., CN CNY 3.0 100.0 % Buhler (Wuxi) Commercial Co. Ltd., Wuxi

Xianyang City

Yanzhou Buhler Mechanical Co. CN CNY 2.5 100.0 % Buhler (Wuxi) Commercial Co. Ltd., Wuxi

Ltd., Yanzhou

Zhengzhou Buhler Mechanical Co. CN CNY 2.5 100.0 % Buhler (Wuxi) Commercial Co. Ltd., Wuxi

Ltd., Zhengzhou

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

Wuxi Buhler Machinery Manufacturing CN USD 23.0 51.0 % Bühler Holding AG, Uzwil

Co. Ltd., Wuxi

Wuxi Nutririce Co.,Ltd., Wuxi CN USD 2.1 100.0 % Bühler Holding AG, Uzwil

Leybold Optics Hong Kong Ltd., HK HKD 0.000001 100.0 % Leybold Optics GmbH, Alzenau

Hong Kong

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

Schmidt-Seeger India Private Limited, IN INR 41.4 100.0 % Bühler GmbH, Beilngries

New Delhi

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

Leybold Optics Japan Co. Ltd., Tokyo JP JPY 25.0 100.0 % Leybold Optics GmbH, Alzenau

Buhler (Cambodia) Ltd., Phnom Penh KH KHR 200.0 100.0 % Buhler Asia Private Ltd., Singapore

Buhler Ltd., Seoul KR KRW 250.0 100.0 % Bühler Holding AG, Uzwil

Leybold Optics Korea Ltd., Seoul KR KRW 120.0 100.0 % Leybold Optics GmbH, Alzenau

Buhler Philippines, Inc., Makati City PN PHP 9.0 100.0 % Buhler Asia Private Ltd., Singapore

Buhler Asia Private Ltd., Singapore SG USD 1.0 100.0 % Bühler Holding AG, Uzwil

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

Buhler Taiwan Ltd., Taiwan TW TWD 5.0 100.0 % Buhler Asia Private Ltd., Singapore

Zhubei Cit

Buhler Farmila Vietnam Ltd., Long An VN VND 41760.0 100.0 % Buhler Asia Private Ltd., Singapore

Buhler Vietnam Company Limited, VN VND 5728.5 100.0 % Buhler Asia Private Ltd., Singapore

Ho Chi Minh City

136

Report of the statutory auditor on the financial statements

As statutory auditor, we have audited the financial statements of Bühler

Holding AG, which comprise the balance sheet, in come statement and

notes (pages 128 to 135) for the year ended December 31, 2013.

Board of Directors’ responsibility. The Board of Directors is responsi-

ble for the preparation of the financial statements in accordance with the

requirements of Swiss law and the company’s articles of incorporation.

This responsibility includes designing, implementing and maintaining an

internal control system relevant to the preparation of 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 financial statements based on our audit. We conducted our audit in

accordance with Swiss law and Swiss Auditing Standards as well as the

International Standards on Auditing (ISA). Those standards require that

we plan and perform the audit to obtain reasonable assurance whether

the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about

the amounts and disclosures in the financial statements. The procedures

selected depend on the auditor’s judgment, including the assessment of

the risks of material misstatement of the financial statements, whether

due to fraud or error. In making those risk assessments, the auditor con-

siders the internal control system relevant to the entity’s preparation of

the financial statements in order to design audit procedures that are ap-

propriate in the circumstances, but not for the purpose of expressing 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 financial statements. We

believe that the audit evidence we have obtained is sufficient and appro-

priate to provide a basis for our audit opinion.

Opinion. In our opinion, the financial statements for the year ended

December 31, 2013 comply with Swiss law and the company’s articles of

incorporation.

Report on other legal requirements

We 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 Audit-

ing Standard 890, we confirm that an internal control system exists,

which has been designed for the preparation of financial statements ac-

cording to the instructions of the Board of Directors.

We further confirm that the proposed appropriation of available earnings

complies with Swiss law and the company’s articles of incorporation. We

recommend that the financial statements submitted to you be approved.

Ernst & Young AG

Thomas Stenz Bernhard Joehr

Licensed audit expert Licensed audit expert

(Auditor in charge)

To the General Meeting of Bühler Holding AG, Uzwil, St. Gallen, February 10, 2014

REPORT OF THE STATUTORY AUDITOR.

PublisherBühler AG, 9240 Uzwil (CH)

Concept / designNew Identity Ltd., Basel (CH)

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

Copywriting and editingBühler AGCorporate Communications, Uzwil (CH)PEPR, Peter Eberhard, Oetwil am See (CH)

Photographs in Annual Report 2013Cover: Kubex T in the assembly hall in UzwilPhotograph: Raffael Waldner, Zürich (CH)Ursula Sprecher, Basel (CH), pages 7, 62Muralidharan Dasarathi, India, pages 18 – 23Raffael Waldner, Zürich (CH), pages 24 – 60

Photographs in Book of InnovationCover: Shanghai 2013, ChinaPhotograph: Raffael Waldner, Zürich (CH)Ursula Sprecher, Basel (CH), pages 2, 4Raffael Waldner, Zürich (CH), pages 1, 12, 14, 16, 18, 20, 30Anthony Lee, page 17

Interview in Book of InnovationIan Roberts talking with Christopher Findlay, Primafila AG, Zürich (CH)

LithographyRoger Bahcic, Zürich (CH)

Printersgalledia, Flawil (CH)

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

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

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2013, continuously innovating.

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