2011, in partnership with our clients. - BUHLERGROUP.com · our substantial capital investments in our global market presence and innovation over the past years are paying off

2011, in partnership with ourclients.

Annual Report

Change

in CHF m in %

2009 2010 2011

Order intake¹ 1,784 2,160 + 3.4 2,233

Order backlog 31.12. 962 1,238 + 7.3 1,329

Sales revenue2 1,721 1,907 + 11.7 2,131

EBITDA 182 248 + 5.4 261

EBITDA margin in % 10.6 13.0 12.3

EBIT 132 203 + 7.4 218

EBIT margin in % 7.7 10.6 10.2

Net profit 104 158 + 3.2 163

Net profit in % 6.0 8.3 7.7

Investments in tangible and intangible assets 56 44 + 43.2 63

R&D costs 79 79 + 12.7 89

R&D costs in % 4.6 4.1 4.2

Equity ratio 41.2 38.9 38.1

Net liquidity 406 415 490

Return on Net Operating Assets in % (RONOA) 33.5 51.8 51.1

Employees as of Dec. 31

(exclusive of temporary staff and apprentices) 6,799 7,857 12.4 8,828

1 Order intake adjusted for exchange rates + 11.9 % 2,416

2 Sales revenue adjusted for exchange rates + 21.0 % 2,308

KEY FIGURES.

GROUP (IN CHF M)

Sales revenue

1,9072010

2,1312011

1,7212009

EBIT

203

218

132

2010

2011

2009

Order intake

2,160

2,233

1,784

2010

2011

2009

Net profit

158

163

104

2010

2011

2009

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; Thermal Processes; Nanotechnology

BUSINESS UNITS

SALES BY DIVISIONS (IN %)

1 Grain Processing 62 %

2 Food Processing 21%

3 Advanced Materials 17 %

SALES BY REGIONS (IN %)

1 North America 12 %

2 South America 8 %

3 Europe 31 %

4 Middle East & Africa 19 %

5 South Asia 5 %

6 Asia 20 %

7 East Asia 5 %

2

3

1

1

2

3

4

5

67

CORPORATE PROFILE.

Bühler is the specialist and technology partner for plant, equipment, and

services for processing foods and for manufacturing advanced materials.

The organization holds leading market positions worldwide in the

fields of technology as well as processes for transforming grain into flour

and animal feeds, producing pasta and chocolate, and manufacturing

die cast components.

The Group’s core technologies are in the areas of mechanical and thermal

process engineering. With its expertise and over 150 years of experience,

Bühler time and again rolls out unique and innovative solutions for its

customers, enabling their success in the marketplace. 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

8,800, and generated sales (turnover) of CHF 2,131 million in fiscal 2011.

2 Bühler Annual Report 2011

4 Foreword, Chairman of the Board and CEO

8 Global Presence

10 Food Safety

14 Smart Processing

18 Energy Saving

22 Grain Processing

24 Nestlé, Nigeria

32 Food Processing

34 Läderach, Switzerland

42 Advanced Materials

44 Hongbang Die Casting, China

50 Human Resources

52 Substainability

54 Corporate Governance

55 Executive Board

56 Organization chart

58 Board of Directors

61 Financial report

62 Financial commentary

64 Financial report Bühler Group

103 Financial report Bühler Holding AG

CONTENT.

3Content.

CHOCOLATE, COCOA & COFFEE

LÄDERACH, SCHWEIZ

In Bilten (Switzerland) a plant covering 2,200 square

meters is under construction in which “Läderach –

Chocolatier Suisse” will produce up to 1000 metric tons

of its own chocolate coatings starting in 2012.

DIE CASTING

HONGBANG, CHINA

The Hongbang Die Casting Company based in Nantong

manufactures demanding components for the

automobile industry and is a vendor of complex blank

castings for household appliances and communication

devices.

GRAIN MILLING

NESTLÉ, NIGERIA

Top sanitation standards and a complete process from

grain reception to the finished end products are

the distinguishing characteristics of this new plant.

34

24

44


Calvin Grieder, Chief Executive Officer (left), and Urs Bühler, Chairman of the Board (right),

in the Bühler Customer Center in Uzwil.

5Foreword.

SUCCESSFUL YEAR IN AN ADVERSE ENVIRONMENT.

DEAR SIR, DEAR MADAM

Following the record results of the previous year, we were justified in starting fiscal 2011 with high

expectations. At that time, we could not have any idea that conditions in the year under review

would deteriorate substantially in various respects. The earthquake in Japan, the political upheavals

in the Middle East and in North Africa, and the exceptional appreciation of the Swiss franc all

had an impact on the development of our business. The fact that we held out against this adverse

environment and are now in a position to present very promising figures proves two things: On

the one hand that our efforts to enhance our efficiency are bearing fruit, and on the other hand that

our substantial capital investments in our global market presence and innovation over the past

years are paying off.

Sales for the first time exceed two billion Swiss francs.

With annual sales (turnover) in 2011 amounting to CHF 2,131 million or almost 12 % more than a year

ago, Bühler for the first time in its history passed the mark of two billion Swiss francs. Adjusted

for exchange rates, the increase was 21 %. Order intake rose by more than 3 % to CHF 2,233 million

and adjusted for exchange rates by 12 % in the year under review. The Grain Processing division

boosted its order intake by 11 %, and Advanced Materials even by 35 %. Only the Food Processing

division slipped slightly by 2 %.

The increase in orders received is primarily due to Asia and Europe. With a plus of 28 %, especially

China and Europe stand out with 21 %. In Europe, the acquisition of Schmidt-Seeger accounts

for about half of this growth. Europe and Asia are thus the main sales regions of Bühler, with shares

of about 30 % of total sales revenue each. The splitting of our product range into a Top-Line

for our demanding applications and a lower-cost Standard-Line contributed substantially to this

success.

All three divisions contributed to this considerable growth in sales. Grain Processing increased its

turnover by 8 %, Food Processing by 10 %, and Advanced Materials by even 28 %, driven by the

exceptional success of its Die Casting business unit (+50 %). The development of order intake is also

roughly reflected in geographical terms: Asia increased by 45 % (China alone plus 64 % thanks

to our strong local presence), South Asia by 16 %, Europe by 15 %, South America by 8 %, and the

Middle East including Africa by 3 %. On the other hand, declines were suffered in North America

due to the heavy exchange rate turbulence (–6 %) and East Asia as a result of the earthquake

(–13 %). The three strongest business units in terms of sales revenue – Grain Milling; Chocolate,

Cocoa & Coffee; and Feed & Biomass – together generated 53 % of total corporate sales.

Sustainable profitability.

The appreciation of the Swiss franc was a great challenge. We countered it by taking various

measures, including primarily price adjustments, intensified outsourcing of purchases to the euro

and dollar regions, an increase in weekly work hours in Switzerland, and a rise in productivity

in all divisions. In addition, project controlling was further optimized. With an EBIT margin of 10.2 %

(previous year 10.6 %), Bühler once again achieved a high operating margin in the double-digit

range despite the challenging environment. The corporate result of CHF 163 million exceeded the

value of a year ago by a little more than 3 %. Thus, profitability was again within our long-term

target bandwidth.


In spite of substantial capital investments in additional production capacities, Bühler once again

generated a substantial operating cash flow of CHF 197.4 million. The balance sheet shows

high solidity also in the year under review. The net working capital remained at a low 15 % of sales,

and the equity ratio of 38.1 % was almost at the level of the previous year (38.9 %). The return

on net operating assets (RONOA) was maintained at the same high level of 51.1 %.

Continued optimization and strengthening at all fronts.

Regardless of the gloomier environment that prevailed in the year under review, we systematically

adhered to our strategic thrust. This is borne out, among other things, by the unchanged high

innovation rate. Spending on research and development throughout Bühler Group amounted to CHF

89 million or a respectable 4.2 sales percentage points. These funds were used for the new and

further development of products with a focus on nutrition, safe foods, and energy efficiency. Further-

more, we strengthened our local presence, one of Bühler’s most valuable assets, by adding five

more bases to our international service network. We are thus satisfying a proven market need, as

was demonstrated in a recent customer survey that we conducted. Also the marked increase in

capital spending on tangible assets by 43 % to CHF 63 million must be considered under this aspect.

These funds primarily flowed into additional production capacities in India, China, South Africa,

and Brazil.

With the acquisition of a production facility in the Czech Republic as of January 2012, we added to

our capacities in Eastern Europe. As for the site in Switzerland, a total of about CHF 70 million

have been earmarked for modernizing the factory at our headquarters during the years 2011 through

2015. This will create the basis required for the optimal implementation of “Total Synchro” – the

flow-manufacturing principle – which slashes handling distances and as a consequence cycle times

and disentangles the flow of goods. This project – a strategic undertaking of Bühler aimed at

achieving substantial and sustainable productivity increases – was launched locally four years ago

and extended in the year under review to all business units worldwide.

Sharp rise in headcount.

As in the years before, we continued our systematic and targeted employee development efforts also

in 2011. Our global payroll increased once again by almost 1,000 or a little more than 12 % to 8,830

employees. China accounted for half the increase, and the acquisition of Schmidt-Seeger for most

of the balance. Thus, in the past two years, we created over 1,500 additional jobs.

New member of the Board of Directors.

Effective December 15, 2011, Ms. Ruth Metzler was appointed as a new member of the Board of

Directors. In her capacity as an attorney at law and a federally certified auditor, she will add further

competencies in the fields of strategy, finance, and auditing to the supervisory body of Bühler.

Cautiously optimistic for 2012.

Our Group started the current fiscal year with a more than 7 % higher order backlog than at the

beginning of 2011, which provides a solid foundation. But in view of the uncertain economic

situation, we do not expect more than a moderate increase in volume.

7Foreword.

Also for 2012, we must assume that the macro-economic environment will be characterized by

continued volatility and many imponderables, for example in the field of exchange rates.

To these short-term factors, we must add long-term global challenges such as fiercer competition

for natural resources and, as a consequence, rising raw commodity prices. In the past years,

Bühler has proved that success is also possible in an adverse environment – thanks to continuous

product innovations and substantial capital investments in local market presence directed to

the outside and flexibilization of the organization and improvement of productivity to the inside.

We have thus laid excellent foundations that allow us to look forward with quite some confidence

beyond the short-term horizon.

Thanks.

Our success would never have been possible without our loyal and highly qualified workforce.

We therefore extend our warmest thanks to all our employees the world over for their tireless

and enormous dedication, which is carried by a high level of motivation. We thank our customers

and other business partners for their great trust in our organization and for their inspiring and

highly appreciated collaboration.

Urs Bühler

Chairman of the Board

Calvin Grieder

Chief Executive Officer


Thanks to 70 of its own affiliates and agencies around the

world and its presence in 140 countries, Bühler can serve its

customers at all times and wherever they may be located.

Thanks to this closeness, Bühler understands the culture and

the economic and ecological requirements of its customers.

In order to further expand our global presence and to further

enhance the understanding of our customers in the re-

spective regions, we added sales offices in Minsk/Belorus-

sia, Beograd/Serbia, Beirut/Lebanon, Lomé/Togo, and

Dhaka/Bangladesh plus three production facilities in

Mahwah/USA, in Oldenzaal/Netherlands and in Hefei/ China

to the Bühler locations in 2011.

In addition to the sales and production sites, our local

Service Stations are included here for the first time. Among

other activities, Bühler Service Stations recondition rolls,

sell spare parts, and carry out repairs. They are an impor-

tant element in the Bühler’s comprehensive range of ser-

vices, which ensures that customers can operate their

plants efficiently throughout their life cycles.

AFRICA DZ Hydra/Alger

EG Cairo

KE Nairobi

MA Casablanca

TG Lomé

ZA Johannesburg

ZM Lusaka

SOUTH AMERICA

AR Buenos Aires

BR Blumenau

Joinville

Rondonópolis

CL Santiago de Chile

CO Bogotá

VE Caracas

NORTH AMERICA

CA Markham

US Holland

Mahwah

Minneapolis

Raleigh

Stockton

MX Metepec

GLOBAL PRESENCE. IN THE REGIONS – FOR THE REGIONS

9Global presence.

ASIA AU Melbourne

BD Dhaka

CN Changji

Changzhou

Fuyang

Guangzhou

Hebei

Hefei

Beijing

Shenzhen

Ürümqi

Wuxi

Xi’an

Yangzhou

Zhengzhou

IN Bangalore

New Delhi

Mumbai

IR Astara

Teheran

JP Yokohama

KR Seoul

KZ Almaty

PH Manila

PK Lahore

RU Irkutsk

SA Riyadh

SG Singapore

TH Bangkok

VN Ho Chi Minh City

EUROPE

AT Salzburg

BE Mechelen

BY Minsk

CH Uzwil

St.Gallen

CZ Prague

DE Beilngries

Bergneustadt

Braunschweig

Döbeln

Freiberg a.N.

Saarbrücken

Viernheim

ES Madrid

FR Paris

GB London

Peterborough

HU Budapest

IT Milan

LB Beirut

NL Oldenzaal

PL Warsaw

PT Alcabideche

RO Bucharest

RS Belgrade

RU Moscow

SE Malmö

TR Istanbul

UA Kiev

Production and sales

Sales

Service Station


11Food Safety.

FOOD SAFETY.

For Bühler and its customers, food safety is essential. In

recent years, this topic has come under considerable public

scrutiny. Consumers want to know where their food comes

from and under which conditions it has been produced.

Our machines are designed in accordance with the most

exacting standards of food hygiene. Nevertheless, as a

market leader, Bühler collaborates with customers, research

institutes, and hygiene experts on continual improvement

of these standards.

Safe and ergonomic workplaces designed in cooperation

with specialists in food processing ensure hygienic

operations. Compliance with future safety standards entails

a stronger focus on validation methods for food production

processes.

MATCHING FOOD SAFETY AND EFFICIENCY.Kubex T allows clean profits.

Its efficiency and compact design would be enough to

make the Kubex T the pellet mill of choice for animal feed;

but its compliance with rigorous hygienic standards

gives it an edge in a contested market where the safety

of the feed is at a premium.

The hallmarks of the Kubex T’s direct drive system, which

does without gearbox or belts, are maximum energy

efficiency and even lower maintenance requirements.

A number of other sophisticated features make the

machine very easy to clean. Large sliding doors on each

side provide convenient access to the machine’s

interior for cleaning and maintenance. While in operation,

the power unit is slightly pressurized, which prevents

dust settlement. Hygienic design, both inside and outside,

further impedes settlement of product particles of any

kind. In addition, surfaces are heated to prevent conden-

sation.

This combination of efficiency and hygienic, easy-mainte-

nance design is another example of how operational

efficiency and food safety complement each other

in Bühler machines. The bottom line is a robust and

energy-efficient feed mill with an output of up to 80 metric

tons per hour. The Kubex T sets new benchmarks.

ROUNDED DESIGN

Rounded surfaces provide maximum external cleanness.

On the interior, dust settlement and condensation are

minimized through pressurization and surface heating.

NO CUTTING CORNERS

The rounded interior is another feature that ensures

uninterrupted surfaces for easier cleaning. Residue

cannot accumulate in hard-to-access pockets,

thus enhancing food safety, while less maintenance and

shorter interruptions mean more profitable operations.

ACCESS ALL AREAS

The machine can be opened on all sides, making it

easier to comply with sanitary regulations. Large sliding

doors open on both sides. Even though the compact

pellet mill requires little floor area, it can be serviced

and cleaned without forcing technicians to squeeze into

a confined space.


ENERGY SAVING.

Bühler continuously offers its clients the most sophisticated

and efficient solutions. This also holds true for energy

consumption and optimized processes. In order to give them

an economic as well as ecological advantage, we’re taking

a very close look at the energy balance. Bühler’s energy

management system meticulously records all consumption

data. For our clients, detailed analysis will highlight possible

steps for economization. Being able to precisely record

cost accounting leads to a more conscious use of energy.

Our innovative technologies and experience flow into every

Bühler-equipped machine.

15Energy Saving.

Ecothermatik™ – the energy-efficient revolution

in pasta drying.

The Ecothermatik™ pasta dryer introduces a revolutionary

process to dry long cut pasta like spaghetti. The new

process is based on a sophisticated scientific approach:

The pasta is dried throughout the drying cycle in its

rubbery state, also at the pasta surface – which is ideal

for moisture diffusion and stress relief. Last but not

least the desired cross-linking within the gluten structure

of the pasta is facilitated this way. This result is pasta

of outstanding quality.

Moreover, the EcothermatikTM is also revolutionary

regarding energy-efficiency. 40 % less heating energy

is required thanks to the innovative energy recuperation

system. Likewise, the new and simple design of the

thermal installation of the dryer, featuring only a minimum

of components, enables the saving of up to 20 % of

cooling energy. Due to improved aerodynamics and

highly efficient fans electrical energy consumption is also

reduced by 10 %.

THE NEW PASTA DRYER.Ecothermatik™ dries pasta gently and evenly, and saves energy in the process.

– 40%HEATING ENERGY

– 10%ENERGY CONSUMPTION

– 20%COOLING ENERGY


SMART PROCESSING.

The amount of vitamines, minerals and nutrients in the raw

material from which our food is produced can be boosted

by using Smart Processing. The potential is enormous:

food scarcity, a growing global population and the mounting

requirements for food processing stimulate Bühler to get

involved with this important process. Even today, a third of

the global crop is being lost before it can even be used.

In food processing, a lot of the valuable properties end as

side products.

Bühler is on the right track to change this. This is why

Bühler continues to intensely research the possibilities

of using the raw material as entirely as possible.

With Smart Processing, a procedure has already been

developed that yields more nutrients in a natural way.

19Smart Processing.

Nutritional contribution to the recommended

daily allowance for vitamins in % (basis: 100 g pulse)

DATA FOR BROWN CHICKPEAS

BEGINNING GERMINATIONRAW MATERIAL

PARGEM®: GERMINATE, DRY AND

GAIN QUALITY.More nutrients, less antinutrients in pulse by controlled part-germination and drying for stabilisation.

ungerminated raw chickpeas

(brown) [g/100 g d.m.]

pargem® chickpeas splits

[increase/decrease %]

Oligosaccharids:

ROF, flatulence factor 758 – 70

Minerals:

Iron, dialysed

Zinc, dialysed

Calcium, dialysed

0.065

0.55

22.5

+ 150

+ 60

+ 35

Vitamins:

Thiamine (B1)

Niacine (B3)

Folic acid (B9)

Riboflavine (B2)

Ascorbic acid (C)

0.15

0.9

0.07

0.10

1.5

+ 500

+ 100

+ 30

+ 40

+ 25

Sugar:

Fructose 100 + 220

Recommended daily allowance (RDA)

of vitamins in %

PARGEM WHOLE PARGEM SPLITS PARGEM FLOUR

“Pargem” boosts the quality of pulse. Clients receive the

newest Bühler technology packed in a plug&play

machine and thus reach a higher quality of ingredients in

pulse. This is especially significant in Asia where cereals

and lentils have an important place in the diet.

In Asia it’s done in every household, and now Bühler has

developed an industrial process to reproduce it: the

new technology that is already in use has been named

“Pargem”. With this technology pulse can macerate,

start germinating and can then be stabilised. The process

is stopped at exactly the moment the optimal ratio of

minerals, nutrients and vitamines is reached. Chickpeas,

lentils, beans etc. also become better digestible since

the amount of indigestible components shrinks.

“Pargem” is something of a revolution in food processing.

After a processing period of three to five days in which

pulse begins to germinate, the foodstuff has been

rendered more valuable. The content of vitamine B1 rises

by 500 %, that of dyalised iron by 150 %, that of dyalised

zinc by 60 % and that of vitamine C by 25 %. Also the

level of sugar rises which makes the end product taste

sweeter, a desired side effect.

At the same time the content of antinutrients diminishes

by 30 %. Also those substances responsible for flatulence

have gone down by 70 % after going through the

“Pargem”-process. Macinated, partly germinated and

finally dried pulse turnes into an even more valuable raw

material and ingredient for the food industry.

long germination

raw material

0 % 20 % 40 % 60 % 80 % 100 %

B1

B9

B3

B2

C


GRAIN PROCESSING. CONTINUING TO MAKE HEADWAY.

Overview 2011.

The Grain Processing division, Bühler’s largest, once again

significantly increased its sales revenue (turnover) in 2011

by 8 % to CHF 1,310 million, and this in the face of the de-

manding environment of the over-valued Swiss franc. The

increase in sales is largely attributable to the acquisition of

Schmidt-Seeger in September 2010. Sales developed

along varied lines in the different business units, with all the

business units growing on the basis of adjusted exchange

rates. The Feed & Biomass unit was very successful in

maintaining its position. Also the operating result of the divi-

sion remained at a high level.

The order intake with CHF 1,353 million exceeded the value

of a year ago by just under 2 %. Thanks to the acquisition

of Schmidt-Seeger, the markets in Western and Eastern

Europe achieved an above-average result. Promising head-

way was also made in the regions of Africa/Middle East and

South America. On the other hand, growth slackened

somewhat in North America in the course of the year. In

Asia, the Chinese market once again developed very

briskly.

In fiscal 2011, the Grain Handling and Malting units to-

gether with Schmidt-Seeger were successfully merged into

the new Grain Logistics business unit with four market

segments. The division is thus in a position to further

strengthen its activities in the field of grain processing. This

concentration of forces is Bühler’s response to the global

challenge of ensuring future grain supplies, which will be

marked by population growth and expected climate chang-

es. This offers customers new possibilities for integrating

the entire value chain with a view to assuring the quality

and traceability of foods.

Development of the business units.

Grain Milling, the business unit with the strongest sales

revenue of CHF 698 million, maintained its level of sales

achieved in 2010. Whereas the emerging markets presented

an encouraging picture, business development was sub-

dued in Europe and North America. The unit’s order intake

was somewhat below the level of the previous year; on the

other hand, it maintained its high profitability of 2010. Its

strategy of selectively differentiating its range of products

and services on global a basis according to specific cus-

tomer needs paid off also in the year under review. The

Specialty Milling segment developed additional products

that cater to the trend toward more health and convenience

in nutrition. Moreover, processes are now under develop-

ment which give special consideration to local eating habits.

In the Medium Market segment, the first complete flour

mills were sold in China.

The Feed & Biomass business unit increased its sales to

CHF 208 million while at the same time raising its profitabil-

ity. A substantial increase was also achieved in order intake,

which was especially attributable to orders received from

emerging markets. In the Feed business, additional cus-

tomer segments were developed. The Oil segment won a

new key account in Europe. Development of the Biomass

segment was more subdued. With an order backlog as of

the end of 2011 that was markedly higher than a year ago,

the business unit can confidently look forward to the

future.

In the Sortex & Rice business unit, revenue slipped by a

little under 10 % to CHF 199 million, and order intake was

also clearly below the level of the previous year. The unit

specifically suffered from the lower volumes from the South-

east Asian rice industry, but also faced a difficult market

environment in Europe. Business development was posi-

tive in North and South America and in China. In the context

of the integration of Sanmak, a Brazilian company acquired

in 2010, an initial technology transfer has proved to be

highly successful and has created the basis for gaining

substantial market share in South America. In the Rice

segment, the relocation of research and development from

Europe to Asia was completed.

The new Grain Logistics business unit, which is included for

the first time as such in the Annual Report, increased its

sales by 46 % to CHF 205 million, which is of the same

order of magnitude as its order intake. The Schmidt-Seeger

company acquired in the previous year contributed

substantially to this result. In the second half, two large-

scale grain terminal contracts were signed in Saudi-Arabia.

Beside Asia, positive signals were also received from Africa

and North America. The Malting segment once again faced

an adverse market environment, but a glimmer of hope

appeared toward the end of the year. The integration efforts,

including consolidation of the product portfolio, made good

headway.

23Grain Processing.

2009 2010 2011

Grain Milling 637 698 698

Feed & Biomass 149 150 208

Sortex & Rice 173 220 199

Grain Logistics 135 141 205

1,094 1,209 1,310

53 %

16 %

15 %

16 %

1,310 m CHF62 %

SHARE OF GROUP SALES TOTAL SALES GRAIN PROCESSING

Innovation and development.

In fiscal 2011, the Grain Processing division once again

invested substantially in research and development. This in-

vestment is reflected on the one hand in its numerous product

developments and launches in all business units. On the other

hand, it shows the substantial spending on the further im-

provement of processes for enhancing the productivity of plant

and equipment. For example, the Feed & Biomass business

unit rolled out a new pellet mill which cuts energy consumption

by as much as 30 %. The Sortex & Rice unit launched several

new sorting systems, thus responding to the market need for

a monochromatic version with high throughput capacity.

Outlook.

The division started the current fiscal year 2012 with a solid

order backlog of CHF 847 million, which partly extends into

the year 2013. The prices of agricultural commodities

remain very high, but have somewhat leveled off over the

past months. For 2012, Bühler expects a higher order

intake from a year ago for all business units, supported by

various market initiatives. In China, plans are to selectively

strengthen the Medium Market segment.

We continue to assume that growth will be centered on the

emerging markets especially in Asia and Latin America. The

reason for this is the marked pressure on the industrial

extension of the value chain in these countries to enable

the sharply growing population to be supplied with food

also in the future. Bühler therefore has very high hopes for

the new, globally oriented Grain Logistics business unit,

which covers the entire logistics chain from grain collection

points to the processing industries.

in CHF m

Sales by business units.

24

NESTLÉ AGBARA / NIGERIA

GRAIN MILLING

1 The modern concrete building houses the grain

storage and processing systems underneath a single

roof, which provides a closed grain processing circuit.

2 Clean, as yet untreated soybeans.

3 The destoner ensures efficient separation of pebbles,

glass, and other high-density matter from the corn.

4 Josiah Bardi (team leader).

1

2

3

25

4

26

5 The stainless steel used for the gravity spouting

maintains sanitary conditions within the piping

systems even during intensive operations.

6 O. Sunday Ipadeola in front of a bin for cleaned corn.

7 Before undergoing hulling, the cleaned soybeans are

heated to 130 degrees Celsius. This inactivates

the enzymes and eliminates the bitter substances.

8 The Combi-Cleaner grades the soybeans on the basis

of differences in specific gravity and using process

air into different qualities while at the same time

removing foreign matter such as sand, foreign seeds,

and hulls.

9 The dry corn degermination process developed

by Bühler ensures that a low-fat intermediate product

is obtained at the end of the process.

10 An automation solution integrated in the process

topography of Nestlé Agbara controls and records

all operations and allows controlled performance

of automatically prepared tasks.

5 6

7 8 9

27

In the west of Lagos, Nestlé built a new grain processing

plant within an existing production building that replaced

an older flour mill. This enables Nestlé to control the

entire logistics process from raw grain reception to the

intermediate products and the ready-for-sale consumer

products. A clear requirement was that the plant should

satisfy the most rigorous sanitation standards, as is

demanded by Nestlé worldwide. In addition to measures

taken in connection with building construction in the form

of easy-to-clean surfaces, stainless steel is systematically

used for all the equipment throughout the production

process from the grinding system onward. Uncompromising

sanitation is also maintained when it comes to the

climate inside the building. Efficient, controlled ventilation

ensures clean air and a stable climate without any risk

of condensation on the building structures and equipment.

This is a special challenge in the warm and humid atmo-

sphere prevailing in the western Africa.

Soybeans and corn (maize) are supplied in bulk tanker

trucks. A purpose-designed pneumatic suction conveying

system moves the grain to the storage bins without

the product ever coming into contact with the outside world.

If required, it is automatically transferred to the cleaning

system. The consistently and carefully cleaned grain then

undergoes further processing. On two separate product

lines, five metric tons of corn flour and two tons of soy

flour are produced each hour, which are further processed

either into infant foods or breakfast foods.

Nestlé Nigeria will continue to rely on Bühler also in the

future. A soybean line with a hulling system has already

been added to the compact flour mill. In early 2012,

installation work will start on the systems for receiving,

storing, and cleaning sorghum, which will be processed

in a new malt beverage plant.

10

28

The Stratopac hulls soybeans with high efficiency and minimized product breakage.

The hulls are then immediately separated from the accept product.

29

All the components of the sifter in contact with the products are systematically made

of stainless steel or high-grade plastic.

30

The Antares roller mill produces ultra-fine low-fat corn flour. In comparison to other

processes, grinding by roller mill saves a lot of energy.

31


FOOD PROCESSING. GROWTH GENERATED BY INNOVATION AND SERVICE.

Overview of 2011.

Rapid changes in general political and economic conditions

in conjunction with breathtaking shifts in the markets call for

an early assessment of trends and quick, bold action. For

the Food Processing division, the year 2011 was character-

ized by the targeted expansion of its global customer

service and by innovations in the field of healthy nutrition

and safe food. Despite the unfavorable development of

exchange rates and political instability in certain regions,

the division returned to the path of growth after seeing a

decline in sales in the previous year. The sales revenue

(turnover) was boosted by 10% to CHF 450 million (in local

currencies: +19%). All the business units made a substan-

tial contribution to this uplifting increase.

Whereas order intake in local currencies was maintained at

a virtually constant level in 2011, the appreciation of the

Swiss franc caused it to slip to CHF 445 million, 9% below

the level of a year ago; however, toward the end of the year,

the trend was reversed again. Setbacks were suffered in

East Asia, which can primarily be explained by the natural

disaster and the nuclear reactor accident in Japan. The

same holds true for the Middle East and Africa, which were

affected by political upheavals. On the other hand, business

in China and India grew substantially. This also applies to

Europe as the most significant sales region. In response to

the development of exchange rates relative to the Swiss

franc, a major part of the procurement volume was out-

sourced to the euro region in the course of the year, and

the production sites in Europe, Asia, and the United States

were expanded.


The Pasta & Extruded Products business unit achieved

sales of CHF 161 million or 16% more than in the previous

year (in local currencies +24%). The unit further expanded

its position as the global market leader in breakfast cereals

production technology. The new system approach taken

with integrated product lines and application support con-

vinced the markets. The exploitation of synergies using the

drying technology of Bühler Aeroglide was successfully

further pushed. Unlike the past year, the Pasta segment

was characterized by customers’ restraint to make capital

investments. This was reinforced by the political uncertain-

ties in North Africa and the Middle East.

The Chocolate, Cocoa & Coffee business unit increased its

sales by 8% to CHF 227 million in a confectionery market

environment that was again clearly picking up momentum

(in local currencies +16%). Order intake also increased by

15% in local currencies. With the presentation of ten new

process solutions and products at the Interpack 2011 trade

show, Bühler underscored its leadership in the Cocoa,

Chocolate, Nut, and Coffee processing segments. The

positive market environment, supported by a sharp decline

in cocoa prices, animated numerous customers to make

new capital investments. In the unit’s new factory in

Germany, a production line went into service for the manu-

facture of conches.

The sales revenue of the Aeroglide business unit, which

provides drying systems for the Food and selected

Non-Food industries, amounted in the year under review to

CHF 55 million. This is slightly below the level of 2010, but

in local currencies 11% higher than a year ago. The unit

boosted its order intake to a new record level, an accom-

plishment to which also initial successes in the Medium

Market segment contributed. In-house orders placed by

other organizational units of Bühler accounted for another

significant share, among them primarily the Extrusion seg-

ment, with which an extremely fruitful collaboration has

now evolved. The drying technology has been optimally

integrated in system solutions at customers’ sites, enabling

the Aeroglide business unit to expand its market share in

the Food segment. In the course of 2011, the Grain Drying

activities were transferred to the new, global Grain Logistics

business unit of the Grain Processing division.

The as yet still young Nutrition Solutions segment generated

sales of CHF 7 million in 2011 (previous year: CHF 4 million).

With its two concepts of Leuron (services and ingredients

extracted from wheat grains) and Nutri Rice (fortified rice

products), Bühler made clear progress. The new Bakery

Innovation Center opened in Uzwil in the previous year was

extremely well received by customers. Integral consulting on

optimizing the development of new end products for the

customers of our customers generates substantial added

value.

33Food Processing.

2009 2010 2011

Pasta & Extruded Products 144 139 161

Chocolate, Cocoa & Coffee 229 210 227

Aeroglide 47 58 55

Nutrition Solutions – 4 7

420 411 450

36 %

50 %

12 %

2 %


450 m CHF21%

SHARE OF GROUP SALES TOTAL SALES FOOD PROCESSING

Innovation and developments.

With a view to seizing future sales opportunities, the division

substantially increased the staffing levels of its sales and

service teams in the year under review. Moreover, numer-

ous new products were launched. In India and China,

application laboratories were opened, and in the first quar-

ter of 2012 a new food quality assurance laboratory was

dedicated in the United States. This measure is part of the

Bühler initiative for enhancing food safety. Thus, among

other things, a new “Head of Food Safety” function was

established at the corporate level in the previous year,

which is integrated in the Food Processing division.

Furthermore, Bühler initiated several round tables at an

international level with customers in collaboration with

acknowledged experts. This is relevant to Bühler primarily

for its Customer Service business. A core aspect is valida-

tion, which refers to the capability of documenting the

safety of production processes.

Outlook. The division start the year 2012 with a backlog of

CHF 234 million, which is about at the level of the previous

year. One main thrust is directed at the further expansion of

providing global services. The Chocolate, Cocoa & Coffee

business unit plans to roll out innovations in order to further

consolidate its already strong market position. Among other

things, the Pasta & Extruded Products unit is planning to

intensify its focus on the Medium Market segment and will

present new pasta processing solutions at the Ipack-Ima

trade show. Aeroglide, too, is centering its efforts on launch-

ing a number of new products, and the Nutrition Solutions

business unit will primarily focus on the Chinese and Afri-

can markets in 2012.

in CHF m

34

LÄDERACH ENNENDA / SWITZERLAND

CHOCOLATE, COCOA & COFFEE

The family business Läderach from the Swiss canton of

Glarus has big plans. Investing the biggest sum in the history

of the business – approx. 17 million Swiss francs – they

are building their own chocolate factory in Bilten, Glarus.

The complex spanning 2200 square meters is situated

just south of the already existent distribution centre and

will create an annual output of 1000 tonnes of couverture,

the basic product for Läderach’s artisanal chocolate

confectionary. While standard-couverture will at first be

the only product, the idea is that soon Läderach will

produce their famed chocolate delicacies in Bilten.

Renowned for their artisanal premium chocolate products,

Läderach will start using the new facilities in Bilten in

mid 2012. Thus, they take the step to fully, vertically integrate

the concept “from the cocoa bean to the store counter”.

The company now has 800 employees worldwide. It is well

established in the industry on a global scale as the artisanal

supplier of choice for specialised trade and sophisticated

restaurants. With the take-over of Merkur Confiserie AG,

Läderach progressively developed a domestic and interna-

tional consumer business with their own boutiques. The

most important export markets currently are the U.S., Japan,

the Middle East, the United Kingdom, and Southeast Asia.

In addition to the 32 already existing shops in Switzerland,

further stores will be opened this year.

1

35

1 Läderach’s distribution center in

Bilten.

2 To the right, the confectionary’s

main building and the headquarters

of Läderach in Ennenda.

3 Hanspeter Bollier of Bühler supervises

the assembly of the machines on site.2

3

36

The beater blade mill PreGrind on its way to the production hall. It is used to grind

roasted cocoa nibs.

37

The two-stage refining process made with a two-roll refiner (back) and a five-roll refiner

are the core of the chocolate mass production process.

38

2

6

39

4

Mister Läderach, why are you so interested in chocolate?

Jürg Läderach I literally grew up with the business. Our family

lived in the production building. When my Dad entered the

flat, he used to carry the sweet scent of chocolate – as a kid

I simply adored it. This is why chocolate translates to me

as happiness. You can create joy for others – and yourself!

Chocolate is my declared passion, and I am passionate about

innovating the business.

Why do you invest millions into processing your own cocoa?

Jürg Läderach We strive to assume full responsibility for our

product – all the way from the cocoa bean to the sales counter.

Cocoa is our most important resource. By controlling the

cocoa production we can guarantee the very highest quality.

And we also get to know our cocoa farmers. By building

commercial and social relationships we welcome them into the

Läderach family. Families are important to us – the producers’

as well as the consumers’ families. Indeed, family is one of our

brand values.

Do you see any similarities between the companies Bühler

and Läderach?

Jürg Läderach Läderach’s core values are freshness, craftsman-

ship, Switzerland, individuality and family. Valuing Swiss origin

means that our products are created exclusively in Switzerland.

At this point we’re definitely on the same wavelength with

Bühler. Staff from Bühler were already involved in the planning

stage of our new chocolate factory. Consequentially, we

employed Bühler to implement the plans and build the factory.

Is this cooperation a clear win-win situation?

Jürg Läderach We definitely profited from the cooperation with

Bühler. We are a very small manufacturing company whose

production has to be flexible. Bühler has proven that flexibility is

exactly what they can deliver.

With the construction of a new chocolate factory you’re lay-

ing foundations for the future.

Jürg Läderach Exactly. Our company will continue to be run by

our family. Two of my six children are already involved in the

business. They were also consulted prior to the investment.

Läderach will remain an independent family business: not only

financially autonomous but in the future also independent

on an operational level with our own factory.

6 Ralph Siegl, CEO, and Jürg Läderach, chairman of the

board, on the construction site of the new factory in

Bilten.

7 The confectionary Läderach on the townhall square in

Glarus.

7

40

Bühler’s pilot plant in Uzwil boasts the most modern machines for cocoa

processing and chocolate production. Specialists from Läderach and

chocolate experts from Bühler jointly perform extensive trials to ensure

perfect product quality.

41

Roger Theiler, responsible for the production of cocoa and chocolate at Läderach, in a Bühler lab.


ADVANCED MATERIALS. NEW PEAKS ACHIEVED.

Overview 2011.

After the Advanced Materials division had impressively

restored its growth in the previous year, considerable

growth rates were achieved also in 2011, both in terms of

sales revenue (turnover) and order intake. Sales increased

by 28% to CHF 353 million, in local currencies the rise was

even 35%. This success is primarily due to the Die Casting

business unit, which benefited from the boom in the auto-

motive industry. The order intake of CHF 415 million or 28%

more than a year ago presented a highly promising picture.

In local currencies, growth amounted to 35%. Here too, the

Die Casting business unit, which generates the highest

sales in the division, accounted for the lion’s share.


Die Casting as the largest business unit continued its string

of outstanding years up to 2008 by achieving revenues of

CHF 200 million or a plus of 50%. This success is especially

due to the sales achieved with the Ecoline series die casting

machines for the Medium Market segment and various

existing and new key accounts in the car manufacturing

industry. Geographically speaking, China, Germany, and

the United States and Canada made above-average strides,

whereas Eastern Europe and Russia showed some weak-

ness. On a global scale, China advanced for the first time

ever in 2011 to the position of the largest single market

for this business unit; in Europe, this continued to be

Germany.

As for order intake, a historical peak was achieved in the

year under review, with occasionally almost tumultuous

developments subsiding toward the end of the year. This

highly uplifting market development called for an increase

in the division’s headcount, especially in Purchasing and

Logistics. Customers’ capital investments continue to be

driven by their demand for structural components for

reducing the weight of cars, their quest for new drive sys-

tems, and the development of new engine blocks.

In the Grinding & Dispersion business unit, sales slipped

from the level of the exceptionally strong previous year by

3% to CHF 85 million. The volatile exchange rate situation

was particularly felt as a result of the depreciation of the

U.S. dollar. In Europe, the challenge was met by targeted

outsourcing of purchases to the euro region. The gloomier

business prospects occasionally prompted customers to

postpone projects. Due to signs of emerging excess

capacities, especially the solar industry showed a certain

restraint in its capital spending. On the other hand, signals

were positive from the area of printed electronic applica-

tions. Powerful momentum was generated in the traditional

Ink segment particularly in the Chinese market, which

opens up bright prospects for Bühler also for the coming

years. Generally speaking, the business unit shifted its

product mix further toward high-tech applications, in

particular display panels and electronics. The integration of

Draiswerke Inc., a U.S. company acquired in 2011, was

completed in the year under review.

The Thermal Processes business unit increased its sales by

26% to the new record level of CHF 67 million. Order intake

even grew by 44% to CHF 90 million. As was already

perceived toward the end of 2010, the PET industry showed

a marked tendency toward making new investments. As a

result of this impressive development of business, addi-

tional specialists had to be hired in the field of engineering.

The young Nanotechnology business unit slightly increased

its sales revenue and focused its efforts on the further

development of the market for Oxylink additives, which are

used in environmentally friendly water-based coatings.

Innovation and developments.

In the year under review, the division invested substantially

in research and development. In the Die Casting business

unit, the priority was set on the further development of the

two-platen Carat line and the Ecoline series, which was

launched in 2009 and which has met with huge success in

the marketplace. The Grinding & Dispersion business unit

generated encouraging sales with its new and further

developed machines for the Medium Market – Cenomic

and Trinomic. The Trias three-roll mill, which was developed

two years ago, continued its success of the previous year.

The Thermal Processes business unit successfully tested

different innovations, which are to be incorporated in

marketable products in the near future.

43Advanced Materials.

Outlook.

The division expects a sound business development also in

2012, which however is likely to be somewhat quieter be-

cause of the slowing of the business cycle. What fills the

division with confidence is the order backlog of CHF 235

million at the start of 2012. In particular the Die Casting and

Thermal Processes business units started the current fiscal

year with a comfortable backlog of orders. The necessity of

investing in die casting technology to meet demand for

new-generation engines, in conjunction with an increase in

the use of structural components, is expected to continue

to bolster up business. The Grinding & Dispersion business

unit expects successes with its Medium Market products

to continue also in 2012. In view of the sustained global

intensification of efforts to recycle PET bottles, the Thermal

Processes business unit faces the mid-term future with

some confidence. This is so even if producers’ capital

spending is likely to be lower in the current fiscal year be-

cause of added capacities, which were far above the aver-

age in 2011.


353 m CHF17 %

SHARE OF GROUP SALES TOTAL SALES ADVANCED MATERIALS

2009 2010 2011

Die Casting 80 134 200

Grinding & Dispersion 62 87 85

Thermal Processes 49 53 67

Nanotechnology 1 1 1

192 275 353

in CHF m

57 %

24 %

19 %

< 1 %

44

HONGBANG DIE CASTING NANTONG / CHINA

DIE CASTING

3

1 The headquarters of Hongbang. The company is

member of the Wencan Die Casting Group,

which was set up in 1987 and is one of China’s

largest die casting companies.

2 About half the planned total surface area of

110,000 square meters has already been built up.

3 The design of the Ecoline die casting machine. In the

lower locking force range, it is optimally suited for

manufacturing components of low complexity and

with a shot weight up to 13 kilograms of aluminum:

4 For example for making steering rod housings.

5 A view into the die closing unit. The die is later on

mounted in the die clamping area.

1

2 3

4

45

Hongbang Die Casting, a Chinese company located near

Shanghai, has ambitious plans. By spending a total

of USD 75 million on new production facilities, it intends

to become a leading provider of cast aluminum components.

About half the planned total surface area of 110,000

square meters has already been built up, with a pure

production area of 76,000 square meters where production

has already started. The company’s portfolio of products

and services includes both die-making and the manufacture

of aluminum castings. Over 100 in-house engineers support

customers in everything from product development and

manufacture to the supply of ready-to-assemble parts.

Using state-of-the-art die casting systems, the company

produces sophisticated components for the automotive and

vendor industries as well as for household appliances and

communication devices. The ISO-certified organization

exports over 80% of its output to countries including

the United States, Japan, and Europe. Hongbang places

stringent demands on the quality of its products as

well as production flexibility, which calls for high-quality,

high-performance production systems. Now that Bühler

has for quite some time enjoyed an excellent reputation as

a leader in the supply of die casting solutions also in China,

the customer chose Bühler equipment after thorough

one-year testing. Since 2011, the company has applied

Bühler Carat and Ecoline die casting machines. Hongbang

is planning to make additional investments. When

completed, its production facilities will boast over 80 die

casting machines from different suppliers, designed for

an output of 16 million aluminum components.

5

46

The new production hall is equipped with Ecoline die casting machines.

47

48

49

8 A total of 23 ready-for-service die casting

machines are already lined up.

9 A steering rod housing after being extracted

from the die.

9

8


HUMAN RESOURCES.SYSTEMATIC FURTHER DEVELOPMENT.

Facts and figures.

At the end of 2011, Bühler had a global payroll of 8,800,

including some 500 apprentices. Of this total, European

sites accounted for half and Asian locations for just under

one third. The average age of employees was 40 years.

The staff turnover rate in Europe of 5% remained at the

level of a year ago. In the competitive labor markets in Asia,

it varies widely and may be as high as 12%. Average

seniority of 11 years worldwide and 14 years in Europe

stands for the valuable know-how that can be applied for

the benefit of customers. The employment of temporary

staff enhanced flexibility in the field of human resources

throughout the Group.

Productivity increase in an adverse market

environment.

The increasing indebtedness of numerous countries and

the massive appreciation of the Swiss franc also affected

Bühler, especially at its location in Switzerland. In this

exceptional situation, a number of measures were taken to

control costs. The management together with the Group’s

employees took actions for enhancing productivity, includ-

ing an increase in work hours limited to June 2013. Beside

the financial aspect, this measure is also designed to

sharpen the employees’ awareness and to foster their self-

responsibility. Moreover, the headcount in Switzerland will

for the time being be maintained at the level of the end of

2010. On the other hand, the number of employees in Asia

rose markedly in the year under review, partly as a result of

acquisitions.

Capacity management further refined.

The corporate capacity management project launched two

years ago was systematically continued in 2011. The focus

in the year under review was to categorize the skills existing

in Bühler Group, with a difference being made between

productive and supportive functions. In the future, this

classification will substantially facilitate growth and produc-

tivity planning. The refined capacity management system

enables the required human resources capacities to be

provided with the necessary skills in the respective Group

companies at the right point of time and at costs that are in

line with market conditions.

Creation of a global human resources organization.

By grouping the different local companies in seven regions

– Asia, East Asia, South East Asia, Europe, North America,

South America, and Middle East/Africa – Bühler has laid

EMPLOYEES BY FUNCTIONS EMPLOYEES BY REGIONS

(in % and absolute figures)

1 North America 617 7 %

2 South America 335 4 %

3 Switzerland 2,575 29 %

4 Rest of Europe 1,916 22 %

5 Africa 380 4 %

6 Middle East 450 5 %

7 Asia 2,555 29 %

(in % and absolute figures)

1 Sales 838 9 %

2 Customer Service 1,131 12 %

3 Engineering 1,145 12 %

4 Automation 473 5 %

5 Research and Development 456 5 %

6 Manufacturing and Logistics 3,901 42 %

7 Administration 884 9 %

8 Apprentices 523 6 %

12

5

6

7

3

4

1

2

5

78

6

3

4

51Human Resources.

the foundations for creating a global, efficient Human

Resources organization. This measure improves the flow of

information between all the different locations, and global

projects can in the future be executed with higher effi-

ciency.

Employee performance management process (EPM).

International collaboration, which is a fact in everyday life at

Bühler, requires a shared understanding of goals, compe-

tencies, and performance. For this purpose, Bühler has

rolled out the EPM process, which applies to all employees

throughout the world. The new performance assessment

system is made up of five steps: Self-appraisal, Manager

Appraisal, Performance Board, Appraisal Talk, and Midyear

Coaching. It thus ensures the sustainable further develop-

ment of managers and employees alike. The global rollout

including training of all HR specialists and managers

involved was completed in the year under review so that all

performance appraisal talks were based on the new system

starting in November 2011.

Customized “Master of Bühler Management”

Program (MBM).

In collaboration with CEIBS (China-European International

Business School) in Shanghai, Bühler China has rolled out

a training program for developing globally active manage-

ment staff in Asia as well as in India and Indonesia. Its

focus is on Bühler-specific subjects, and the lecturers use

Bühler case studies. The program is addressed to regional

managers who wish to acquire leadership skills and to

middle managers at headquarters with defined responsi-

bilities in Asia or an option to assume a management

function. Training will start in April/May 2012. Bühler will

concurrently initiate an identical training program for

Europe.

Fair and equal standards for all employees.

Bühler as a global organization considers the cultural diver-

sity of its employees as one of its major assets. Regardless

of their origins, nationality, religion, or gender, all employees

have equal rights, and any discrimination is banned. For a

given function, no difference is made between the basic

salaries of men and women. Bühler offers all employees a

safe and healthy work environment and respects the safety

regulations of each location in accordance with the specific

requirements and the legal situation. In order to define how

we treat one another inside and outside our organization,

we created the “Bühler Essentials” in the year under review.

These guidelines of conduct are based on our five core cor-

porate values (Trust, Recognition, Respect, Involvement,

Passion) and also give consideration to the insights gained

in the two global employee surveys conducted in 2009 and

2010.

Apprentices gather experience abroad.

Bühler offers its apprentices attractive stays abroad which

offer these young people opportunities for working in com-

panies outside Switzerland later on. In the year under review,

two apprentices from Germany and five from South Africa

spent some time in Uzwil during their school vacations in

order to acquire specialist knowledge. On the other hand,

two Swiss apprentices went on an eight-week mission to

Johannesburg, three to London, and six to our Chinese site

in Wuxi. During this period, they did their school homework

via our in-house IT platform. This exchange program, which

was launched four years ago and which shows new

approaches to intercultural training, is developing into a

true hit.

Success at the world skills championship.

Just after completing his apprenticeship with distinction,

our machine designer Pascal Brunner won the bronze

medal for his outstanding performance at the “World Skills”

vocational championship in London last October. This suc-

cess is also due to our unique training concept and our

apprenticeship masters, who during 18 months provide

intensive support and coaching to suitable candidates in

their preparations as well as at the contest itself.

Distinction as an exemplary employer.

The fact that Bühler is taking the right approach with its

Human Resources management was also confirmed in the

year under review by being distinguished as the “Top Swiss

Employer” by the CRF Institute. On the basis of international

standards, this institute identifies enterprises which play a

vanguard role in HR management. For this, compensation

and social security benefits, career opportunities as well as

training and continuing education practices are scrutinized.


SUSTAINABILITY.ON THE RIGHT TRACK.

Comprehensive approach.

Bühler understands the term “Sustainability” in a compre-

hensive sense. As a consequence, business considerations

and decisions at the strategic and executive levels give due

consideration to the three dimensions of Economy, Envi-

ronment, and Social. Bühler is committed to sustainability

and will progressively introduce GRI reporting across the

company in the coming three years. This will mark a major

step forward in our sustainability tracking.

As a major market player in the value chain of staple foods

such as grain, corn (maize) and rice; processed foods; and

the automobile industry, the global impact of our activities

is significant. Reducing food spoilage in emerging markets

through improved logistics management, storage, and

cleaning has a significant effect on food safety. New, more

efficient technologies that reduce the energy consumption

of pasta dryers not only drive energy efficiency, but also

make our customers’ businesses more sustainable. The

weight reductions made possible by die cast structural car

components support our customers in the automobile in-

dustry in meeting emission targets. Starting in fiscal 2012,

our future reporting on sustainability will extend beyond our

own manufacturing operations to include the plants we

have installed across the globe.

The foundation is set.

The Bühler “Total Quality Management” system, which is bind-

ing throughout the organization and comprises the areas of

Quality, Environmental Protection, and Industrial Safety. Apart

from the introduction of sustainability standards, it also regu-

lates measurement, controlling, and reporting aspects. In the

regular audits of our management system, we successfully

passed all recertifications according to ISO 9001 (Quality

Management) and ISO 14001 (Environmental Management)

at our site in Uzwil in the year under review.

Proving environmental awareness.

Taking ecological aspects into account is part of Bühler’s

understanding of its identity as a business. On the basis of

an environmental management concept, concrete ecologi-

cal measures have been defined, for example with regard

to resource consumption. In fiscal 2011, energy consump-

tion (electric power, wood, gas, and oil) at the Swiss head-

quarters have been reduced from a year ago despite an

increase in sales.

In the year under review, Bühler took additional environ-

mentally-related measures. At its German location in Braun-

schweig, the washing tables which hitherto used solvents

were replaced by units operating on the basis of water and

microorganisms. This allowed solvent consumption to be

reduced by over 400 liters, which also fully eliminated the

occurrence of volatile organic compounds (VOC). In the

surface treatment shop, replacement of the vaporizer cut

the volume of contaminated water from 334 to 120 metric

tons a year, associated with savings of 80,000 euros annu-

ally. In addition, Bühler in an initial stage installed a solar

system generating peak power of 30 kilowatts on the fac-

tory roof in Uzwil, based on three different panel technolo-

gies. In the second half of 2011, they produced 14,710 kil-

owatt-hours of natural power, which cut carbon emissions

by 10.29 metric tons.

Our proactive commitment was also proven by those em-

ployees who took part with their “SolarMobil” – a solar-

powered vehicle that they themselves developed and built

– in the World Solar Challenge in Australia. In this grueling

race across 3,000 kilometers, the team won the “New-

comer Award” and in the “Production Class” category

achieved the excellent third place. In this category, only

such vehicles are allowed which are equipped with com-

mercially available components such as tires approved for

use on normal roads instead of special-purpose solar rac-

ing tires. In the overall classification, the team ranked 16 th.

Finally, in the year under review, Bühler sponsored a five-

digit sum for “Plant for the Planet”. In this global project

designed for enhancing climate awareness, children around

the world plant trees. Bühler’s contribution was intended to

offset the emissions caused by its participation in the Inter-

pack trade show in Düsseldorf.

Industrial safety and health protection.

The health and safety of employees and their protection

against physical and mental impairment is a core concern

of Bühler, with consideration being given to regional needs

and customs. Thus, in the year under review, the works

council at Bühler’s German site in Braunschweig together

with the factory physician established a social integration

management program. Its purpose is to reintegrate em-

ployees in the work process who have been disabled over

an extended period of time. In addition, a computer-aided

53Sustainability.

program was initiated for annual instruction of all employ-

ees on industrial safety. Up to the end of the year under

review, 300 factory employees in Braunschweig attended

1,245 training modules. At the Bühler site in Minneapolis in

the United States, twice 60 dollars are raffled off for each

month without an accident, in addition to the usual indus-

trial safety checks that are performed.

Total Synchro conserves resources.

The Total Synchro initiative launched in 2008, a corporate

synchronized production system, also focuses sharply on

sustainability. Its aim is to speed up processes in order to

eliminate waste and boost efficiency on a sustainable basis

by inventory reductions and economical utilization of raw

materials. By the end of the year under review, 3,700 em-

ployees around the world – almost half the Bühler total –

took part in the related Quality Course (end of 2010: 1,100).

One of the many positive results of the program can be

seen at the Bühler site in Bangalore, where the three exist-

ing production lines were merged into one, reducing the

cycle time from four to two hours. This allowed a substan-

tial reduction in time, materials, and labor to be achieved.

ENERGY CONSUMPTION SWITZERLAND

Direct and indirect Energy

0 20 40 60 80 100 120

WATER CONSUMPTION SWITZERLAND

2011

2010

2009

2008

2011

2010

2009

2008

0 10 20 30 40 50 60

0 200 400 600 800 1,000 1,200 0 200 400 600 800 1,000 1,200

Energy consumption (in thousand giga joule)Water consumption (in thousand m3)

Sales (thousand CHF) Sales (thousand CHF)


CORPORATE GOVERNANCE AND CODE OF CONDUCT.

Bühler considers good Corporate Governance to be a

prerequisite for ensuring the long-term and sustainable

growth of its corporate value. In this, we base our activities

on the principles of the Swiss Code of Best Practice and

the OECD Principles of Corporate Governance. Bühler’s

organization and conduct of business are oriented toward

the interests of its stakeholders. These include customers,

employees, suppliers, and local communities. Observance

of environmental and social standards is also covered. As a

Swiss company with international operations, strict compli-

ance with laws and continuous monitoring of compliance

are non-negotiable for Bühler, be this in mature or emerging

markets. In this sense, we do everything to avert opera-

tional and reputational damage that would arise as a result

of infringement of compliance and might severely harm the

company. Up to the present point of time, the organization

has never faced any legally effective complaints concerning

noise, the environment, or industrial safety.

Bühler regularly reviews the principles of Corporate Gov-

ernance and further develops internal processes and

directives where necessary or appropriate. In fiscal 2011,

we rolled out the new Code of Conduct as announced in

last year’s Annual Report. It is binding upon all Bühler

companies worldwide. The Code is part of the so-called

Bühler Essentials. It serves as a yardstick for all employees,

showing them how to live by the core values of Bühler in

day-to-day business: Trust, Respect, Recognition, Involve-

ment, and Passion. The Code expresses the expectations

to be fulfilled by employees and business partners, defines

the standards of compliance with laws and regulations, and

states the rules of communication, employees’ rights,

health and safety, and financial integrity. Bühler also expects

its suppliers and other business partners to apply these

standards.

Furthermore, Bühler redefined the so-called ABC (Anti

Bribery & Corruption) rules in the year under review. They

highlight in a clear and easy-to-understand manner that

there is no room for bribery and corruption within Bühler

Group. In particular, they refer to collaboration with consult-

ers and agents. An online training program has been devel-

oped for roll-out and familiarization which it is mandatory for

all Purchasing and Sales staff to complete.

Internal Audit Group.

Internal Audit Group performs the internal auditing function

for the entire Group. Internal Audit Group supports the

Board of Directors and the Board Committee in discharging

their governance responsibility by evaluating the internal

control system and the compliance with internal directives,

legal and regulatory requirements.

On the basis of the corporate wide risk analysis, the audits

to be conducted are determined and approved by the

Board Committee. The audit results are discussed with the

CEO, the CFO and the Management of the audited organi-

zations and presented to the Board Committee.

Internal Audit supports the worldwide implementation of

the Code of Conduct and will check compliance and regu-

larly report to the Board Committee as the final authority.

55Corporate Governance und Code of Conduct.Executive Board.

EXECUTIVE BOARD.

CALVIN GRIEDER Chief Executive Officer

(1955, American and Swiss)

Graduated in process engineering from the Swiss

Federal Institute of Technology (ETH) in Zürich. He then

held various management positions in Swiss and German

companies in the fields of control engineering, auto-

mation, and plant design, in charge of building and

expanding international business. In 2001, he changed

from Swisscom to Bühler Group as CEO. Member of the

board of Metall Zug AG and Model AG.

ANDREAS R. HERZOG Chief Financial Officer

(1957, Swiss)

Graduated in business administration and continued his

education in marketing and financial management. Held

management positions in finance, controlling, audit, and

logistics at Ciba-Geigy, Swatch, and last as Vice Presi-

dent Finance at Swarovski in Switzerland, Latin America,

West Africa, and Germany. Has been with Bühler since

2002.

ACHIM KLOTZ Advanced Materials

(1960, German)

Graduated in mechanical engineering from the University

of Engineering in Darmstadt; degree in marketing and

business administration from the European Business

School. After a position at Schenk in Darmstadt, he

switched to Balzers AG in 1989, where he was in charge

of sales and later on joined executive management. With

Bühler since 1998 as head of the Die Casting division

and from 2009 of the Advanced Materials division.

Concurrently headed the organization Bühler North

America from 2001 through 2005.

BRUNO MENDLER Grain Processing

(1954, Swiss)

Graduated in mechanical engineering from the Zurich

University of Applied Science in Winterthur. Obtained an

Executive MBA postgraduate degree from the University

of St.Gallen. Held various management positions in the

SIG Technology Group during 20 years, of which manag-

ing director of SIG Pack Systems AG from 1999 through

2003. With Bühler since 2003, from 2004 as head of the

Grain Processing division.

MARTIN MENRATH Manufacturing & Logistics

(1955, German)

Graduated in aerospace engineering from the University

of Engineering in Munich and obtained a doctorate in the

field of aircraft propulsion systems. Has accumulated

vast industrial management experience in production,

development, and logistics in companies such as MTU;

Rolls-Royce Germany – last as speaker of executive

management; and member of the executive management

of Krauss-Maffei Wegmann. Has headed the Manufac-

turing & Logistics division since 2008.

STEFAN SCHEIBER Food Processing

(1965, Swiss)

Graduated in business administration from the University

of Applied Science in St.Gallen and continued his

education at the IMD in Lausanne. With Bühler since

1988 in various management functions in East and South

Africa, Eastern Europe, Germany, and other countries.

Appointed head of the Brewing and Rice business units

in 1999, then assumed overall responsibility for Bühler in

Germany. From 2005 head of the Sales & Services

division and from 2009 of the Food Processing division.

CHRISTOF OSWALD* Human Resources

(1961, Swiss)

Served an apprenticeship with Bühler, continued his

education in commerce, held various functions in devel-

opment and customer projects for all divisions, broad

management experience, IT project manager, Controlling

unit manager, from 1993 through 2005 commercial

manager of the Manufacturing & Logistics division, from

2006 head of Corporate Human Resources.

IAN ROBERTS* Corporate Technology

(1970, British)

Studied chemical engineering and obtained a Ph.D. in

process engineering from the University of Wales, Great

Britain. Held various management positions at Nestlé

from 1997 through 2009, acting among other things as

internal Management Consultant at Swiss headquarters,

as Director of Innovation for Nestlé Mexico, and as Direc-

tor of the Chocolate Centre of Excellence in Switzerland.

With Bühler since 2010 as head of Corporate Technology.

*Members of the extended Executive Board


ORGANIZATION CHART.

CEO

Calvin Grieder

BOARD OF DIRECTORS

SALES & SERVICES

Calvin Grieder

North and South America, Europe, Middle East / Africa, Asia, East Asia, South Asia

MANUFACTURING & LOGISTICS

Martin Menrath

FINANCE & ADMINISTRATION

Andreas R. Herzog

CORPORATE TECHNOLOGY

Ian Roberts

HUMAN RESOURCES

Christof Oswald

Grain Milling

Feed & Biomass

Sortex & Rice

Grain Logistics

Pasta & Extruded Products

Chocolate, Cocoa & Coffee

Aeroglide

Nutrition Solutions

Die Casting

Grinding & Dispersion

Thermal Processes

Nanotechnology

GRAIN PROCESSING

Bruno Mendler

FOOD PROCESSING

Stefan Scheiber

ADVANCED MATERIALS

Achim Klotz

Status January 1, 2012

57Organization Chart.

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


URS BÜHLER *

(1943, Swiss)

Chairman

Graduate mechanical engineer from

the Swiss Federal Institute of Tech-

nology 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 devel-

opment. 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 manage-

ment duties of the company to Calvin

Grieder at the start of 2001. Urs

Bühler has been a member of the

board since 1981, from 1991 as its

vice-chairman and since June 1994

as its chairman.

DR. BENNO SCHNEIDER *

(1942, Swiss)

Vice-Chairman

Obtained his doctorate in Law

(Dr. iur.) from the University of Berne

and became an attorney at law. After

filling various management functions

in law and administration, he was

appointed secretary general of the

Swiss Federal Department of Justice

and Police (EJPD) in 1976. In 1985,

he retired from this function to open

his own attorney’s office in St.Gallen,

which specializes in business and

corporate law. Beside his activity as

an attorney, Dr. Benno Schneider

is also an entrepreneur in the plastics

and construction industries. He

has been a member of the board

since 1992 and its vice-chairman

since 1994.

THE BOARD OF DIRECTORS.

The Board of Directors of Bühler Holding AG and Bühler AG includes eight

members. They are elected for a period of three years. The age limit is 70

years.

In 2011, the Board of Directors convened four times. The main items

discussed were strategic planning and review of risk management. The main

decisions concerned the acquisition of a company in Oldenzaal (Netherlands)

producing high-grade pelleting dies and rollers for the feed industries.

Furthermore, the Board of Directors decided to expand the existing production

site in Wuxi (China) and to acquire a new production site in Zamberk

(Czech Republic).

The Board Committee, which has three members, met five times, discussing

especially the internal audits and the introduction of a code of conduct.

* Board Committee

** Calvin Grieder is executive member of the board.

The other members are non-executive members of the board.

59The Board of Directors. 59

CALVIN GRIEDER **

(1955, American and Swiss)

Chief Executive Officer

He graduated in process engineering

from the Swiss Federal Institute of

Technology Zurich (ETH Zurich).

Then he occupied a number of

management positions in Swiss and

German companies engaged in the

fields of control engineering, automa-

tion, and plant construction. In these

functions, he was primarily in charge

of establishing and expanding inter-

national business. In 2001, Calvin

Grieder switched from Swisscom to

Bühler Group, which he has headed

as CEO since then. He is member of

the board of the companies Metall

Zug AG and Model AG.

HANS J. LÖLIGER *

(1943, Swiss)

Studied business administration in

London and Philadelphia. After ten

years in the storage and materials

handling equipment business, he

joined the Crown Cork & Seal Com-

pany, Philadelphia in 1977. For Crown

Holdings, 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 busi-

ness. Since 2001 he has served on the

boards of several Swiss and interna-

tional companies. Hans J. Löliger has

been a member of the board of Bühler

since 2004.

PETER QUADRI

(1945, Swiss)

Graduated in 1969 in economy and

business administration from the

University of Zurich as lic. oec. publ.

In 1970, he joined IBM as a systems

engineer and specialist for software

and operating systems. Following

various positions in the U.S.,

Denmark, and Switzerland, he was

president of IBM Switzerland from

1998 to April 2006. Peter Quadri was

appointed member of the board of

Bühler in 2006.

JOSEF M. MÜLLER

(1947, Swiss)

With a degree in business adminis-

tration, 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.

DR. KONRAD HUMMLER

(1953, Swiss)

He graduated in Law from the

University of Zurich and in Economic

Science from the U.S. University

of Rochester. In 1989, he moved

to Wegelin & Co. Private Bankers,

St.Gallen, where he has been partner

with unlimited liability since 1991.

In addition to his bank activities, he

is Member of the Board of various

companies, including Neue Zürcher

Zeitung (NZZ) and the German Stock

Exchange. 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 Pricewater-

houseCoopers 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. Today, she has her own consul-

tancy and is Chairperson of the Board

of Directors of OSEC, Zürich and Vice

Chairperson of the Board of Directors of

the Hospital Association AR. In Decem-

ber 2011, she was elected as Member

of the Board of Bühler.

61

FINANCIAL REPORT.

62 Financial commentary

64 Financial statements Bühler Group

65 Consolidated statement of income

66 Consolidated statement of comprehensive income

67 Consolidated statement of financial position

68 Consolidated statement of changes in equity

70 Consolidated statement of cash flows

71 Notes to the financial statements

102 Report of the statutory auditor

103 Financial statements Bühler Holding AG

104 Income statement Bühler Holding AG

105 Balance sheet Bühler Holding AG

106 Notes to the financial statements Bühler Holding AG

108 Group companies Bühler Holding AG

111 Report of the statutory auditor

62

Key points in brief. In the 2011 reporting year, the order

intake and sales revenue rose by 8 % and 15 % respectively,

after currency and acquisitions adjustments. The business

unit Die Casting and Asia among the regions made a particu-

larly important contribution to the healthy business develop-

ment. Europe also recorded a 21 % rise in new orders follow-

ing the acquisition of Schmidt-Seeger (grain management

and malting) completed in the autumn of 2010. Annual profit

rose slightly by 3 % to CHF 163 million (2010: CHF 158 million).

Three acquisitions were completed in 2011: Draiswerke Inc,

a US company in the cleantech sector, J.A. Tijdhof Beheer

B.V., a Dutch enterprise in the spare parts sector for feed sys-

tems and Hefei Yijite Optoelectronic Technology Co. Ltd., a

Chinese company in the sorting equipment sector. Investment

in research and development was substantially increased.

Excluding temporary workers and trainees, the number of

employees rose by 12 % to 8,828, due mainly to the company

acquisitions and the growth in China. The return on net operat-

ing assets (RONOA) at 51 % (2010: 52 %) was once again an

excellent achievement. Net liquidity increased substantially,

creating a sound basis for funding the future growth of the

Group.

Stable net profit, negative financial result and low tax rate. At CHF 163 million, net profit was only slightly up

on the year before. The swings in the currency markets left

their mark on price quality and hence on margins, despite all

the measures that were taken, e.g. in strategic purchasing, by

extending the weekly working hours in Switzerland, or the

consistent positioning of the organization in the markets. Nev-

ertheless, the Group increased its investment in research and

development – which are not capitalized – by 13 % year on year

to CHF 89 million. Moreover, the financial result stood at minus

CHF 9 million (2010: CHF + 10 million), while the negative result

in FX Management was to some extent cushioned by careful

asset management. Thanks to a series of sustained measures

and one-off effects, the taxation rate was reduced to 22 %

(2010: 26 %).

Net profit (CHF m)

2009 104.2

2010 158.0

2011 163.1

FINANCIAL COMMENTARY. 2011: Strong growth in order intake and sales revenue, sustainable growth

in profitability, stable balance sheet

Equity development (CHF m)

December 31,

2010

Net profit

2011

Dividends IAS19

equity effect

(net of taxes)

Currency

effect

Hedge

accounting

(net of taxes)

Other December 31,

2011

– 47.1

743.4

163.1

– 9.3 – 6.7 1.4 823.2

– 21.6

Bühler Financial Report 2011

Consolidated Financial StatementsFinancial Statements Bühler Holding AG

63

Healthy balance sheet with very high net liquidity. As at December 31, 2011, equity capital stood at CHF 823 mil-

lion, CHF 80 million higher than at the end of the previous year.

One major negative item, CHF – 47 million, relates to the effects

of defined benefit obligations under IAS19 (in particular reduc-

tion of profitability forecasts). The equity ratio, at 38 %, remains

nearly unchanged from the previous year (2010: 39 %). The

Group has virtually no financial liabilities, apart from net

loans from the shareholders totalling CHF 68 million (2010:

CHF 59 million). Cash flow from business activities of

CHF 197 million (2010: CHF 171 million) was more than

sufficient to absorb the investments in production capacities,

especially in China, India, South Africa and Brazil, but also

in the three acquisitions in the USA, the Netherlands and

China. Net liquidity rose sharply to CHF 490 million (2010:

CHF 415 million).

Summary and outlook. Because of the turbulence on the

currency markets, 2011 was a very challenging year. Thanks

to a variety of measures, Bühler has managed to keep nega-

tive impact factors to a minimum and to achieve a sustainable

result and a stable balance sheet. Given the healthy level of

the order book, at CHF 1,329 million, 7 % up on the previous

year, the prospects for 2012 can be assessed as relatively

optimistic, despite the still increasingly gloomy economic

outlook. As in previous years, we will be continuing to work on

optimizing processes along the whole value-added chain in

order to improve productivity and quality and to safeguard

the value promise for our customers. In 2012 the major focus

will be on improving our customer services. It will subse-

quently be necessary to further improve the flexibility of the

organization, to withstand the adverse market conditions or

even to use them to our advantage. The financial engineering

that has been a major development over recent years in the

areas of customer project financing, taxation and cash man-

agement, and the management of current assets are further

key elements that will continue to ensure profitable growth for

Bühler in the future.

Analysis net liquidity (CHF m)

December 31,

2010

Operating

cash flow

Net

investments

fixed assets

Investments

M&A

Dividends Other December 31,

2011

197.4

414.8

– 18.5– 21.6

– 36.5

490.0

– 45.6

64

FINANCIAL REPORT BÜHLER GROUP.



65

See notes

2011

CHF m

2010

CHF m

Sales revenue 1 2,130.8 1,906.8

Changes in inventories of finished goods and work in progress 21.0 31.9

Other operating income 2 40.0 27.1

Total operating income 2,191.8 1,965.8

Cost of materials – 885.3 – 762.7

Employee benefit expenses 3 – 678.3 – 604.4

Other operating expenses 4 – 366.9 – 350.3

Operating result before interest, taxes, depreciation and amortization (EBITDA) 261.3 248.4

Depreciation and amortization 7/8 – 43.7 – 45.8

Operating result before interest and taxes (EBIT) 217.6 202.6

Financial result 5 – 9.0 10.4

Profit before taxes 208.6 213.0

Income taxes 6 – 45.5 – 55.0

Net profit 163.1 158.0

Attributable to:

Owners of the parent 157.9 153.7

Non-controlling interests 5.2 4.3

CONSOLIDATED STATEMENT OF INCOME.

66

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME.

See notes

2011

CHF m

2010

CHF m

Net profit 163.1 158.0

Other comprehensive income

Translation differences of foreign operations – 6.8 – 58.6

– Tax effect 0.0 0.0

Available-for-sale financial assets

– Change in fair value 0.7 0.2

– Realized through statement of income 0.0 0.0

– Tax effect – 0.1 0.0

Cash flow hedges

– Change in fair value – 6.9 9.2

– Realized through statement of income – 1.2 0.0

– Tax effect 1.4 – 1.6

Net gain on hedge of net investment – 2.5 – 9.2


Actuarial gains and losses on defined benefit plans 17 – 57.1 – 55.4


Total other comprehensive income – 62.5 – 103.6

Total comprehensive income 100.6 54.4

Attributable to:

Owners of the parent 93.9 51.5




67

As at December 31

See notes

2011

CHF m

2010

CHF m

Assets

Property, plant and equipment 7 303.3 285.3

Investment properties 7 0.4 0.5

Intangible assets 8 175.7 172.6

Investments in associates 9 9.4 8.3

Long-term financial assets 10 91.9 24.6

Deferred tax assets 11 19.5 21.3

Non-current assets 600.2 512.6

Inventories 12 306.3 255.6

Net assets of production order in progress 13 147.7 161.2

Trade accounts receivable 14 442.0 424.0

Other accounts receivable, prepayments and accrued income 15 78.6 71.2

Current income tax assets 6.8 2.1

Marketable securities 16 100.1 107.8

Cash and cash equivalents 481.5 377.8

Current assets 1,563.0 1,399.7

Total assets 2,163.2 1,912.3

Equity and liabilities

Share capital 19 15.0 15.0

Capital reserves 185.1 185.1

Other reserves / retained earnings 594.8 520.2

Equity attributable to the owners of the parent 794.9 720.3


Total equity 823.2 743.4

Long-term financial liabilities 97.7 16.7

Deferred tax liabilities 11 75.4 85.1

Defined benefit obligations 17 170.9 115.5

Long-term provisions 18 40.4 53.4

Non-current liabilities 384.4 270.7

Short-term financial liabilities 63.8 54.1

Trade accounts payable 20 152.1 139.3

Net liabilities of production orders in progress 13 303.1 287.5

Short-term provisions 18 58.7 54.1

Other short-term liabilities, accruals and deferred income 21 354.0 341.1

Current income tax liabilities 23.9 22.1

Current liabilities 955.6 898.2

Total liabilities 1,340.0 1,168.9

Total equity and liabilities 2,163.2 1,912.3

CONSOLIDATED STATEMENT OF FINANCIAL POSITION.

68

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY.

Share capital

CHF m

Capital reserve

CHF m

Retained earnings

CHF m

January 1, 2010 15.0 185.1 548.0

Dividends paid – 12.0

Changes in non-controlling interests – 4.2

Net profit 153.7

Other comprehensive income – 43.7

December 31, 2010 15.0 185.1 641.8

January 1, 2011 15.0 185.1 641.8

Dividends paid – 18.0

Changes in non-controlling interests – 1.3

Net profit 157.9

Other comprehensive income – 47.1

December 31, 2011 15.0 185.1 733.3



69

Hedge reserve

CHF m

Available-for-sale

reserve

CHF m

Foreign currency

translation reserves

CHF m

Total reserves

CHF m

Equity attr ibutable

to the equity holders

of the parent

CHF m

Non-controll ing

interests

CHF m

Total equity

CHF m

0.0 0.7 – 63.8 670.0 685.0 22.3 707.3

– 12.0 – 12.0 – 2.0 – 14.0

– 4.2 – 4.2 – 0.1 – 4.3

153.7 153.7 4.3 158.0

7.6 0.2 – 66.3 – 102.2 – 102.2 – 1.4 – 103.6

7.6 0.9 – 130.1 705.3 720.3 23.1 743.4

7.6 0.9 – 130.1 705.3 720.3 23.1 743.4

– 18.0 – 18.0 – 3.6 – 21.6

– 1.3 – 1.3 2.1 0.8

157.9 157.9 5.2 163.1

– 6.7 0.6 – 10.8 – 64.0 – 64.0 1.5 – 62.5

0.9 1.5 – 140.9 779.9 794.9 28.3 823.2

70

See notes

2011

CHF m

2010

CHF m


Financial result 5 9.0 – 10.4

Operating result before interest and taxes (EBIT) 217.6 202.6

Depreciation and amortization 7/8 43.7 45.8

Other items not affecting cash flow 17.3 0.8

Changes in provisions – 4.1 – 20.6

Changes in trade accounts receivable – 19.3 – 91.5

Changes in inventories – 45.2 – 52.9

Changes in trade accounts payable 17.3 29.1

Changes in net assets / liabilities of production orders in progress 25.4 16.8

Changes in other net operating assets – 27.8 76.1

Cash flow generated from operations 224.9 206.2

Gains / losses on disposal of fixed assets – 0.2 0.6

Interest received 11.4 9.2

Interest paid – 2.9 – 3.4

Income taxes paid – 35.8 – 41.6

Cash flow from operating activities 197.4 171.1

Purchase of property, plant and equipment – 49.9 – 38.3

Disposal of property, plant and equipment 4.3 4.3

Purchase of intangible fixed assets – 1.6 – 2.4

Cash flow from business combinations, net of cash acquired 23 – 18.5 – 81.8

Purchase of non-controlling interests 0.0 – 5.0

Purchase of non-consolidated participations – 2.6 – 1.4

Purchase of marketable securities – 26.7 – 49.9

Disposal of marketable securities 27.6 55.4

Purchase of long-term financial assets – 3.1 – 0.8

Disposal of long-term financial assets 2.6 1.1

Dividends received 1.2 0.8

Cash flow from investing activities – 66.7 – 118.0

Proceeds from financial liabilities 7.7 8.6

Repayment of financial liabilities – 8.5 – 22.1

Dividends paid of Bühler Holding AG – 18.0 – 12.0

Dividends paid to non-controlling interests – 3.6 – 2.0

Cash flow from financing activities – 22.4 – 27.5

Translation differences – 4.6 – 20.2

Changes in cash and cash equivalents 103.7 5.4

Cash and cash equivalents at the beginning of period 377.8 372.4

Cash and cash equivalents at the end of period 481.5 377.8

EBIT includes share of profit of associates in the amount of CHF 1.6 million

(prior year CHF 1.5 million); thereof cash-effective CHF 0.8 million (prior

year CHF 0.8 million). Changes in provisions include changes in short- and

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

CONSOLIDATED STATEMENT OF CASH FLOWS.

71Bühler Financial Report 2011


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 previous fiscal

year, except for the following new and amended IFRS and IFRIC interpre-

tations effective as of January 1, 2011:

IAS 24 Related Party Disclosures (amendment). The definition of

a related party has been clarified to simplify the identification of related

party relationships, particularly in relation to significant influence and

joint control. A partial exemption from the disclosures has been included

for government-related entities, whereby the general disclosure require-

ments of IAS 24 will not apply.

IAS 32 Financial Instruments: Presentation (amendment). The defini-

tion of a financial liability has been amended to classify rights issues (and

certain options and warrants) as equity instruments if the rights are given

pro-rata to all of the existing owners of the same class of an entity’s non-

derivative equity instruments and the rights are to acquire a fixed number

of the entity’s own equity instruments for a fixed amount in any currency.

IFRIC 14 Prepayments of a Minimum Funding Requirement (amend-

ment). The amendment of IFRIC 14 provides further guidance on assess-

ing the recoverable amount of a net pension asset. The amendment per-

mits an entity to treat the prepayment of a minimum funding requirement

as an asset.

Improvements to IFRSs. The improvements to IFRSs were primarily is-

sued to remove inconsistencies and to clarify the wording. The adoption

of the following improvements resulted in changes to accounting policies,

but had no impact on the financial position or performance of the Group:

IFRS 3 Business Combinations – the measurement options available for

non-controlling interest (NCI) were amended. Only components of NCI

that constitute a present ownership interest that entitles their holder to

a proportionate share of the entity’s net assets in the event of liquidation

should be measured at either fair value or at the present ownership instru-

ments’ proportionate share of the acquiree’s identifiable net assets.

IAS 1 Presentation of Financial Statements – the amendment clarifies

that an entity may present an analysis of each component of other com-

prehensive income maybe either in the statement of changes in equity or

in the notes to the financial statements.

The adoption of the above stated revised and new IFRS and new interpre-

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

of the Group.

Standards, interpretations, and amendments published but not

yet applied. Standards, interpretations, and amendments published

but not yet applied up to the date of issuance of the Group’s financial

statements are listed below. The Group intends to adopt these stan-

dards when they become effective.

IFRS 7 Financial Instruments: Disclosures (amendment). The

amendment requires additional quantitative and qualitative disclosures

relating to transfers of financial assets, when: a) financial assets are

derecognized in their entirety, but when the entity has continuing involve-

ment in them (e.g., options or guarantees on the transferred assets) or

when b) financial assets are not derecognized in their entirety. The

amendment becomes effective for annual periods beginning on or after

July 1, 2011.

IFRS 9 Financial Instruments: Classification and Measurement.

IFRS 9 as issued reflects the first phase of the IASBs work on the replace-

ment of IAS 39 and applies to classification and measurement of financial

assets and financial liabilities as defined in IAS 39. The standard is effec-

tive for annual periods beginning on or after January 1, 2013. In subse-

quent phases, the IASB will address hedge accounting and impairment of

financial assets. The Group is currently assessing the impact that IFRS 9

as issued (i.e. the first phase of the IFRS 9 project) will have on the finan-

cial position and performance.

IFRS 10 Consolidated Financial Statements. IFRS 10 establishes

a single control model that applies to all entities including special purpose

entities and replaces the portion of IAS 27 Consolidated and Separate

Financial Statements that addresses the accounting for consolidated fi-

nancial statements as well as SIC-12 Consolidation – Special Purpose

Entities. The changes introduced by IFRS 10 will require management to

exercise significant judgment to determine which entities are controlled,

and therefore are required to be consolidated by a parent. The applica-

tion of this new standard is not expected to impact the financial position

of the Group. This standard becomes effective for annual periods begin-

ning on or after January 1, 2013.

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 application of this new standard is not ex-

pected to impact the financial position of the Group. This standard be-

comes effective for annual periods beginning on or after January 1, 2013.

IFRS 12 Disclosure of Involvement with Other Entities. IFRS 12 in-

cludes all of the disclosures that were previously included in IAS 27 re-

lated to consolidated financial statements, as well as all of the disclo-

sures that were previously included in IAS 31 and IAS 28. These

disclosures relate to an entity’s interests in subsidiaries, joint arrange-

72

ments, associates and structured entities. A number of new disclosures

are also required. This standard becomes effective for annual periods

beginning on or after January 1, 2013.

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

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

change when an entity is required to use fair value, but rather provides

guidance on how to measure fair value under IFRS when fair value is

required or permitted. The Group is currently assessing the impact that

this standard will have on the financial position and performance. This

standard becomes effective for annual periods beginning on or after

January 1, 2013.

IAS 1 Financial Statement Presentation: Presentation of Items of

Other Comprehensive Income (amendment). The amendments to

IAS 1 change 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 has therefore no impact on the Group’s financial

position or performance. The amendment becomes effective for annual

periods beginning on or after July 1, 2012.

IAS 12 Income Taxes: Recovery of Underlying Assets (amendment).

The amendment introduces a rebuttable presumption that deferred tax

on investment properties measured at fair value will be recognized on

a sale basis, unless an entity has a business model that would indicate

the investment property will be consumed in the business; if consumed,

an own use basis must be adopted. The amendment also introduces the

requirement that deferred tax on non-depreciable assets measured us-

ing the revaluation model in IAS 16 should always be measured on a sale

basis. The amendment is not expected to impact significantly the finan-

cial position of the Group and becomes effective for annual periods be-

ginning on or after January 1, 2012.

IAS 19 Employee Benefits (amendment). The IASB has issued numer-

ous 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 re-wording. The Group

has been already recognizing actuarial gains and losses directly in other

comprehensive income. The Group is currently assessing the full impact

of the remaining amendments. The amendment becomes effective for

annual periods beginning on or after January 1, 2013.

IAS 27 Separate Financial Statements (as revised in 2011). As a con-

sequence of the new IFRS 10 and IFRS 12, what remains of IAS 27 is

limited to accounting for subsidiaries, jointly controlled entities, and as-

sociates in separate financial statements. The Group does not present

separate financial statements. The amendment becomes effective for

annual periods beginning on or after January 1, 2013.

IAS 28 Investments in Associates and Joint Ventures (as revised in

2011). As a consequence of the new IFRS 11 and IFRS 12, IAS 28 has

been renamed IAS 28 Investments in Associates and Joint Ventures, and

describes the application of the equity method to investments in joint

ventures in addition to associates. The amendment becomes effective for

annual periods beginning on or after January 1, 2013 and will not have an

impact on the financial position and performance.

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 long-term construction contracts using the percent-

age-of-completion method. Revenue (including a carefully estimated

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

stage of completion. The stage of completion is determined 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 recognized as

an expense immediately. Losses on long-term construction contracts

occur when the expected contract costs exceed the expected revenue.

The Group tests annually whether goodwill has suffered any 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, expected rates of re-

turn on plan assets, future salary increases, mortality rates and future

pension increases. Due to the long-term nature of these plans, such esti-

mates are subject to significant uncertainty.

The Group recognizes a collective valuation allowance based on its past

experience of warranty costs on projects with similar conditions. Other

known risks and risks related to projects with special 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. Business combinations occurring on or after January 1,

2010, are accounted for using the acquisition method. The cost of an

acquisition is measured at the fair value of the consideration given at the

date of exchange. For each business combination, the acquirer mea-

sures the non-controlling interest in the acquiree either at fair value or at

the proportionate share of the acquiree’s identifiable net assets. Acquisi-

tion costs incurred are expensed in the statement of income. Identifiable

assets acquired and liabilities assumed in a business combination are

measured initially at fair value at the date of acquisition, irrespective of

the extent of any non-controlling interest assumed. When the Bühler

Group acquires a business, it assesses the financial assets and liabilities

assumed for appropriate classification and designation in accordance

with the contractual terms, economic circumstances and pertinent con-

ditions 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 percent of the voting rights and has sig-

nificant 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 associat-

ed company.

Investments below 20 % are recognized at fair value and presented as

non-current financial assets. Changes in fair value are recognized di-

rectly in other comprehensive income.

Changes in the scope of consolidation. In the reporting period the

scope of consolidation changed as follows:

Additions.

Draiswerke Inc., United States of America

Buhler Asia Pte Ltd., Singapore

Buhler (Thailand) Ltd., Thailand

J.A. Tijdhof Beheer B.V., The Netherlands

Hefei Yijiete Optoelectronic Technology Co. Ltd, China

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 statements of financial position and annual average

exchange rates for the statements 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 deferred outside the statement of income as qualifying cash flow

hedges.

Foreign exchange differences arising on monetary items that form part of

a company’s net investment in a foreign operation are 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.

74

For foreign currency translation, the Bühler Group used the following

exchange rates:

2011 2010 2011 2010

CHF CHF CHF CHF

Europe 1 EUR 1.233100 1.383300 1.216000 1.250000

Great Britain 1 GBP 1.421100 1.611200 1.456000 1.450000

USA 1 USD 0.886400 1.043300 0.937500 0.935000

Canada 1 CAD 0.896400 1.012600 0.920000 0.937500

Brazil 1 BRL 0.529900 0.594780 0.503100 0.563600

Argentina 1 ARS 0.214700 0.267590 0.217750 0.235550

Japan 1 JPY 0.011100 0.011890 0.012140 0.011500

India 1 INR 0.018800 0.022820 0.017700 0.021000

China 1 CNY 0.136900 0.154270 0.149000 0.142000

Mexico 1 MXN 0.071500 0.082640 0.067200 0.075600

South Africa 1 ZAR 0.122500 0.142900 0.115900 0.141000

Iran 1 IRR 0.000084 0.000110 0.000084 0.000090

Thailand 1 THB 0.028900 – 0.029700 –

Singapore 1 SGD 0.704500 – 0.723000 –

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 values of similar properties). Repair and maintenance ex-

penses 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 in-

ception 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

and interests in joint ventures 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 re-

corded at cost and amortized on a straight-line basis over their estimated

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 am-

ortized 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 as-

set’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 esti-

mated to be less than its carrying amount, the carrying amount of the as-

set or cash generating unit is reduced to its recoverable amount. Impair-

ment losses are recognized immediately in the statement of income.

Where an impairment loss subsequently reverses, 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 exceed

the carrying amount that would have been determined had no impairment

loss been recognized for that asset or cash generating unit in prior peri-

ods. A reversal of an impairment loss is recognized immediately in the


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 comprehensice 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 recognized

initially at the proceeds received, net of transaction cost incurred. Subse-

quently, the borrowings are measured at amortized cost using the effec-

tive 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 expire. Financial liabilities are derecognized when its contrac-

tual obligations are discharged, cancelled or expired.

Derivative financial instruments and hedging accounting. Deriva-

tive financial instruments are initially recognized at cost and subsequent-

ly at fair value (replacement cost). The method applied in recognizing the

resulting profits or losses depends on whether a derivative was desig-

nated as being used for hedging purposes, and if so, on the type of posi-

tion being hedged. Certain derivatives may be used to hedge foreign

currency risks in connection with a transaction that is highly likely to take

place in future, or to hedge a fixed commitment (hedging of cash flows).

When the hedge is implemented, the Group documents the relationship

between the hedging instrument and the risk being hedged, as well as

76

setting out risk management objectives and strategies. Furthermore, the

Group records its assessment of the effectiveness of the hedging instru-

ment with respect to the hedged cash flows, both when the hedging

transaction is concluded and on an ongoing basis.

The full fair value of a hedging derivative is classified as a non-current

asset or liability when the remaining maturity of the hedged item is more

than twelve months; it is classified as a current asset or liability when the

remaining maturity of the hedged item is less than twelve months. Trading

derivatives are classified as a current asset or 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


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 cost and 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. Extended

customer finance refinanced using the Group’s own funds as part of its

treasury strategy is included in this item.

Marketable securities. Marketable securities include those that are

held for trading without participation features. Securities included in fi-

nancial 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 – defined benefit plans. Some Group companies

provide defined benefit pension plans for employees. Independent actu-

aries value the defined benefit obligations on a regular basis. The obliga-

tion and expenses of pension benefits are determined using the projected

unit credit method. The projected unit credit method considers each pe-

riod of service as giving rise to an additional unit of benefit entitlement

and measures each unit separately to build up the final obligation. Past

service costs are recognized on a straight-line basis over the average

period until the amended benefits become vested. Gains or losses on the

curtailment or settlement of pension benefits are recognized when the

curtailment or settlement occurs.

Actuarial gains or losses, which consist of differences between assump-

tions and actual experiences and the effects of changes in actuarial as-

sumptions, are recorded in the other comprehensive income.

The pension obligation is measured at the present value of estimated fu-

ture cash flows using a discount rate that is similar to the interest rate on

high quality corporate bonds where the currency and terms of the corpo-

rate bonds are consistent with the currency and estimated terms of the

defined benefit obligation.

A net pension asset is recorded only to the extent that it does not exceed

the present value of any economic benefits available in the form of re-

funds from the plan or reductions in future contributions to the plan.

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 em-

bodying economic benefits to settle the obligation is probable, and a reli-

able 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.

78

Financial assets

Cash and

cash

equivalents

CHF m

Securities

CHF m

Receivables

& accruals

CHF m

Financial

assets

CHF m

Total

book value

CHF m

2011

Total

market value

CHF m

Cash reserves 481.5 481.5 481.5

Financial assets “at fair value through profit or loss” 100.1 100.1 100.1

Receivables and loans 520.6 77.5 598.1 598.1

Financial assets “available for sale” 9.1 9.1 9.1

Total financial assets 481.5 100.1 520.6 86.6 1,188.8 1,188.8

Cash and

cash

equivalents

CHF m

Securities

CHF m

Receivables

& accruals

CHF m

Financial

assets

CHF m

Total

book value

CHF m

2010

Total

market value

CHF m

Cash reserves 377.8 377.8 377.8

Financial assets “at fair value through profit or loss” 107.8 107.8 107.8

Receivables and loans 495.2 10.9 506.1 506.1

Financial assets “available for sale” 7.2 7.2 7.2

Total financial assets 377.8 107.8 495.2 18.1 998.9 998.9

Financial liabilities

Financial

l iabil ities

CHF m

Payables /

accruals and

deferred

income

CHF m

Total

book value

CHF m2011

Total

market value

CHF m

Financial liabilities at amortized acquisition costs 149.0 506.1 655.1 655.1

Financial liabilities “at fair value through profit and loss” 12.5 12.5 12.5

Total financial liabilities 161.5 506.1 667.6 667.6

Financial

l iabil ities

CHF m

Payables /

accruals and

deferred

income

CHF m

Total

book value

CHF m2010

Total

market value

CHF m

Financial liabilities at amortized acquisition costs 67.1 480.4 547.5 547.5

Financial liabilities “at fair value through profit and loss” 3.7 3.7 3.7


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.



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 in-

flation 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.

2011

Currency pair EUR / CHF USD / CHF

Volatility 16.4 % 17.8 %

Effect in profit & loss (rate increase) CHF m – 1.2 – 7.1

Effect in profit & loss (rate decrease) CHF m 0.1 3.9

2010

Currency pair EUR / CHF USD / CHF

Volatility 8.5 % 10.4 %

Effect in profit & loss (rate increase) CHF m – 1.2 – 3.0

Effect in profit & loss (rate decrease) CHF m 1.7 3.4

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

for investments in shares. Bühler limits the risk across all asset classes by

holding less than 5 % of the Group’s invested funds in any one 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 – 0.6 million

(prior year CHF – 1.0 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 0.6 million (prior year CHF 1.0 million).

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

financial instruments, investments with banks, marketable securities,

and receivables from clients. In order to minimize potential losses on cli-

ent receivables, an Operational Risk Management (ORM) guideline has

been drawn up. The evaluation of our customers’ financial reliability

and / or the terms of payment and hedging on our deliveries are key con-

cerns in this respect. In addition, it can be stated that none of our custom-

ers 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 mini-

mized on one hand through the exclusive purchase of securities with at

least an A rating, and on the other by selecting only financial institutions

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

are monitored rigorously and kept within stipulated parameters. Group

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.

80

Receivable outstanding analysis

Total

book value

Dec 31,

2011

CHF m

Not due

CHF m

Overdue

2011< 3 months

CHF m

4 – 6 months

CHF m

7 – 9 months

CHF m

10 –12 months

CHF m

> 12 months

CHF m

Accounts receivable trade and other 529.2 442.9 55.3 11.2 3.7 3.9 12.2

Allowance for bad debts – 13.9 0.0 – 1.4 – 0.5 – 0.2 – 0.2 – 11.6

Associated companies and other

related parties 5.3 5.3

Total accounts receivable, net 520.6 448.2 53.9 10.7 3.5 3.7 0.6

Total

book value

Dec 31,

2010

CHF m

Not due

CHF m

Overdue

2010< 3 months

CHF m

4 – 6 months

CHF m

7 – 9 months

CHF m

10 –12 months

CHF m

> 12 months

CHF m

Accounts receivable trade and other 503.2 422.6 40.4 22.4 2.9 5.8 9.1

Allowance for bad debts – 10.5 0.0 – 1.4 – 0.5 – 0.4 – 0.3 – 7.9

Associated companies and other

related parties 2.5 2.5

Total accounts receivable, net 495.2 425.1 39.0 21.9 2.5 5.5 1.2

Allowance for bad debts2011

CHF m

2010

CHF m

January 1 – 10.5 – 9.6

Additions – 4.5 – 2.5

Consumption 1.0 2.3

Release 0.6 0.0

Changes in scope of consolidation – 0.9 – 1.5

Translation differences 0.4 0.8

December 31 – 13.9 – 10.5



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, 2011

CHF m

Cash outf low

2011Total

CHF m

< 1 year

CHF m

1– 5 years

CHF m

> 5 years

CHF m

Trade accounts payable to third parties 148.7 148.7 148.7

Financial liabilities to banks 1.2 1.2 1.2

Liabilities to associates, non-consolidated companies

and related parties 142.2 142.2 54.4 87.8

Liabilities others / accruals and deferred income 375.4 375.4 368.0 7.4

Derivative financial instruments held for hedging net 5.0 5.0 5.2 – 0.2

Total 672.5 672.5 577.5 95.0 0.0

Book value

Dec 31, 2010

CHF m

Cash outf low

2010Total

CHF m

< 1 year

CHF m

1– 5 years

CHF m

> 5 years

CHF m

Trade accounts payable to third parties 134.4 134.4 134.4

Financial liabilities to banks 0.2 0.2 0.2

Liabilities to associates, non-consolidated companies

and related parties 66.0 66.0 56.9 9.1

Liabilities others / accruals and deferred income 350.6 350.6 343.4 7.2

Derivative financial instruments held for hedging net – 2.2 – 2.2 – 0.6 – 1.6

Total 549.0 549.0 534.3 14.7 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 is of a negligible magnitude. Group management re-

views the capital structure of the Group and the equity of Group compa-

nies on a regular basis. As at December 31, 2011 the equity ratio stood at

38.0 % (December 31, 2010: 38.9 %).

82

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 15, 2011.

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 ascertained 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 classed as Level 3.

2011

CHF m Level 1 Level 2 Level 3 Total

Financial assets “at fair value through profit or loss” 91.8 91.8

Derivative financial assets 9.4 9.4

Financial assets “available for sale” 9.1 9.1

Total financial assets 91.8 18.5 0.0 110.3

Derivative financial liabilities 13.5 13.5


2010

CHF m Level 1 Level 2 Level 3 Total

Financial assets “at fair value through profit or loss” 93.2 93.2

Derivative financial assets 14.6 14.6

Financial assets “available for sale” 7.2 7.2

Total financial assets 93.2 21.8 0.0 115.0

Derivative financial liabilities 3.7 3.7




1 Sales revenue

CHF 1,401.0 million (prior year CHF 1,214.3 million) of the total operating

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

the reporting period.

2 Other operating income2011

CHF m

2010

CHF m

Earnings from coordination of consortium business 6.8 0.3

Interest income from trade finance 2.5 1.5

Rental income 0.2 1.1

Gains from sale of fixed assets 0.5 0.3

Other operating income related parties 0.1 0.8

Others 29.9 23.1

Total 40.0 27.1

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

belonging to the core business.

3 Employee benefit expenses2011

CHF m

2010

CHF m

Wages and salaries 527.0 489.2

Social security and employee benefit expenses 101.3 77.4

Other personnel expenses 50.0 37.8

Total 678.3 604.4

4 Other operating expenses2011

CHF m

2010

CHF m

Administration expenses 85.9 61.5

Rental and leasing expenses, dues 20.9 20.6

Energy, maintenance and repairs 22.5 27.5

Travel expenses 63.0 54.4

Outbound freight costs 64.1 52.9

Consultancy fees 14.7 11.4

Marketing costs 18.0 12.7

Agency fees 18.0 24.7

Warranty costs, loss orders 15.1 13.4

Other operating expenses related parties 25.6 28.4

Others 19.1 42.8

Total 366.9 350.3

84

5 Financial result2011

CHF m

2010

CHF m

Interest income 9.6 8.4

Interest expenses – 2.3 – 1.4

Total interest result 7.3 7.0

Realized gains from securities 9.6 12.6

Realized losses from securities – 5.9 – 2.2

Total securities result 3.7 10.4

Interest income from related parties 0.1 0.0

Interest expenses from related parties – 2.2 – 1.8

Total interest result from related parties – 2.1 – 1.8

Fair value adjustments – 0.5 – 8.3

Foreign exchange gains and losses – 16.4 3.9

Other financial income and expenses – 1.0 – 0.8

Total – 9.0 10.4

In 2011, the financial result amounted to CHF – 9.0 million (prior year

CHF 10.4 million). The negative financial result in 2011 is predominantly

due to the negative foreign exchange rate developments that resulted in

a foreign exchange loss in the amount of CHF 16.4 million (prior year for-

eign exchange gain of CHF 3.9 million). This year’s result was again posi-

tively influenced by the recovery in security prices following the financial

crisis. This positive financial market development was slightly more pro-

nounced in 2011, which is why the income on securities (including market

value adjustments) was CHF 3.2 million, or CHF 1.1 million higher than

the previous year (prior year CHF 2.1 million).



6 Taxes

6.1 Income taxes2011

CHF m

2010

CHF m

Income taxes relating to the reporting period – 41.0 – 47.8

Income taxes relating to prior periods – 1.0 – 1.0

Deferred taxes due to temporary differences – 3.5 – 6.7

Deferred taxes due to first time recognition of tax loss carry-forwards 0.4 0.5

Deferred taxes due to changes in tax rates – 0.4 0.0

Total – 45.5 – 55.0

Deferred taxes recognized directly in other comprehensive income 11.4 9.0

6.2 Reconciliation of income taxes2011

CHF m

2010

CHF m


Components of tax expenses:

Income taxes at anticipated tax rate – 46.4 – 51.6

Income and expenses not subject to tax 2.6 0.4

Income taxes relating to prior periods – 1.0 – 1.0

Deferred taxes due to changes in tax rates – 0.4 0.0

Effect of tax loss carry-forwards – 0.2 0.2

Effect of losses without recognition of deferred tax assets – 0.7 – 1.0

Other impacts 0.6 – 2.0

Income taxes disclosed (current and deferred) – 45.5 – 55.0

Total income taxes in % of profit before taxes 21.8 % 25.8 %

The anticipated tax rate was 22.2 % (prior year 24.2 %) and is composed

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

The tax rate fell to 21.8 % in 2011 from 25.8 % in 2010. Contributory fac-

tors here included the various global optimization measures.

6.3 Tax loss carry-forwards2011

CHF m

2010

CHF m

Expiry

Unlimited 5.2 4.3

In more than five years 6.2 25.6

In two to five years 13.7 3.3

Within one year 0.2 0.0

Total 25.3 33.2

Tax loss carry-forwards accounted for in deferred taxes 22.3 32.3

Tax effect on tax loss carry-forwards unaccounted for 0.5 0.2

The change in tax-offsettable loss carry-forwards stems from the use

of tax loss carry-forwards in Switzerland, France and the US, as well as

from the impact of additional loss carry-forwards in the US, China and

Germany.

86

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, 2010 0.5 202.3 215.6 119.4 9.4 547.2

Additions 0.0 10.6 10.5 9.0 8.9 39.0

Disposals 0.0 – 1.6 – 8.6 – 3.6 – 1.3 – 15.1

Changes in the scope of consolidation 0.0 21.0 6.5 3.7 2.2 33.4

Reclassifications 0.0 7.9 2.6 – 1.1 – 11.4 – 2.0

Translation differences 0.0 – 17.4 – 13.7 – 7.0 – 0.6 – 38.7

December 31, 2010 0.5 222.8 212.9 120.4 7.2 563.8

Additions 0.0 14.2 14.7 9.0 13.0 50.9

Disposals 0.0 – 0.7 – 6.4 – 6.2 – 1.9 – 15.2


Reclassifications 0.0 2.9 5.7 – 2.4 – 6.7 – 0.5

Translation differences – 0.1 – 2.6 – 2.3 – 1.5 0.1 – 6.4

December 31, 2011 0.4 240.3 226.3 119.7 12.7 599.4

Depreciation

January 1, 2010 0.0 – 54.7 – 129.1 – 89.6 0.0 – 273.4

Additions 0.0 – 5.1 – 14.7 – 11.3 0.0 – 31.1

Disposals 0.0 0.9 5.9 3.4 0.0 10.2


Impairment 0.0 – 1.9 – 0.7 0.0 0.0 – 2.6

Reclassifications 0.0 – 0.4 0.8 1.9 0.0 2.3

Translation differences 0.0 3.2 8.0 5.4 0.0 16.6

December 31, 2010 0.0 – 58.0 – 129.8 – 90.2 0.0 – 278.0

Additions 0.0 – 5.9 – 13.8 – 10.5 0.0 – 30.2

Disposals 0.0 0.3 5.3 5.3 0.0 10.9


Impairment 0.0 0.0 – 1.4 0.0 0.0 – 1.4

Reclassifications 0.0 – 0.5 – 1.2 1.7 0.0 0.0

Translation differences 0.0 0.5 1.3 1.2 0.0 3.0

December 31, 2011 0.0 – 63.6 – 139.6 – 92.5 0.0 – 295.7

Net book values

January 1, 2011 0.5 164.8 83.1 30.2 7.2 285.8

December 31, 2011 0.4 176.7 86.7 27.2 12.7 303.7

As in previous year, the additions to tangible fixed assets included no

government grants. The market value of investment properties amounted

to CHF 1.8 million in the reporting year (prior year CHF 1.8 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, 2011 amounted to CHF 841.8 million

(prior year CHF 753.5 million). Net profit on disposal of tangible fixed as-

sets amounted to CHF 0.2 million (prior year net loss CHF – 0.6 million).

Commitments relating to land and buildings, machinery and technical

equipment, as well as other tangible fixed assets, which are not shown

in the balance sheet, amounted to CHF 10.7 million (prior year CHF

7.9 million).



8 Movements of intangible assets

Goodwill

CHF m

Other intangible

assets

CHF m

Total

CHF m

Acquisition cost

January 1, 2010 98.1 66.4 164.5

Additions 0.0 5.0 5.0

Disposals 0.0 – 0.1 – 0.1

Changes in the scope of consolidation 54.9 22.4 77.3

Reclassifications 0.0 0.1 0.1

Translation differences – 16.1 – 9.8 – 25.9

December 31, 2010 136.9 84.0 220.9

Additions 0.0 2.9 2.9

Disposals 0.0 – 2.8 – 2.8



Translation differences – 0.6 – 1.0 – 1.6

December 31, 2011 147.1 86.1 233.2

Amortization

January 1, 2010 – 12.2 – 29.6 – 41.8

Additions 0.0 – 12.1 – 12.1

Disposals 0.0 – 0.1 – 0.1

Impairment 0.0 0.0 0.0



Translation differences 1.0 4.7 5.7

December 31, 2010 – 11.2 – 37.1 – 48.3

Additions 0.0 – 10.2 – 10.2

Disposals 0.0 2.6 2.6

Impairment 0.0 – 1.9 – 1.9



Translation differences 0.0 0.3 0.3

December 31, 2011 – 11.2 – 46.3 – 57.5

Net book values

January 1, 2011 125.7 46.9 172.6

December 31, 2011 135.9 39.8 175.7

The addition to goodwill and intangible assets from changes in the group

of consolidated companies is attributable to acquisitions in the year

under review (see note 23).

88

9 Investments in associates

Share in equity

CHF m

Goodwill

CHF m

Total 2011

CHF m

Total 2010

CHF m

Net book values

January 1 5.5 2.8 8.3 8.9

Reclassifications 0.0 0.0 0.0 0.0

Additions 0.1 0.4 0.5 0.0

Amortization 0.0 0.0 0.0 0.0

Share of net profit 1.6 0.0 1.6 1.5

Dividends received – 0.8 0.0 – 0.8 – 0.8

Translation differences – 0.1 – 0.1 – 0.2 – 1.3

December 31 6.3 3.1 9.4 8.3

The translation differences are recognized in other comprehensive in-

come. The attributable net result is shown under “other operating income”

in the statement of income.

Cumulative values of the associated companies2011

CHF m

2010

CHF m

Share of sales revenue 10.1 9.7

Share of net profit 1.6 1.5

Balance sheet values:


Current assets 5.5 5.7

Non-current liabilities 0.2 0.1

Current liabilities 2.2 2.6

Shareholders’ equity 6.1 5.5

The associated companies mainly comprise two companies in southern

Europe. Bühler has a shareholding of 26 % and 30 % respectively. The

figures are based on available preview closing data as of December 31,

2011.



10 Long-term financial assets

Due

1– 5 years

CHF m

> 5 years

CHF mDecember 31, 2011Total

CHF m

Securities 0.0 1.6 1.6

Overfunding of post-employment benefit plans 0.0 5.3 5.3

Loans to non-consolidated companies 1.5 0.0 1.5

Other non-current financial assets 74.3 9.2 83.5

Total 75.8 16.1 91.9

Due

1– 5 years

CHF m

> 5 years

CHF mDecember 31, 2010Total

CHF m

Securities 0.0 1.7 1.7

Overfunding of post-employment benefit plans 0.0 6.5 6.5

Loans to non-consolidated companies 0.6 0.0 0.6

Other non-current financial assets 8.7 7.1 15.8

Total 9.3 15.3 24.6

11 Deferred tax assets and liabilities2011

CHF m

2010

CHF m

Net book values

Tangible fixed assets – 16.6 – 13.8

Post-employment benefits 31.8 18.9

Provisions 0.1 – 1.1

Other items – 77.2 – 75.5

Tax loss carry-forwards 6.0 7.7

Total – 55.9 – 63.8

Recognized in the statement of financial position as deferred tax liabilities – 75.4 – 85.1

Recognized in the statement of financial position as deferred tax assets 19.5 21.3

Changes vis-à-vis the previous year were only minimal. Deferred tax

assets and liabilities are offset if there exists a legally enforceable right

to set them off and if the calculations of income taxes relate to the same

taxation authority.

90

12 Inventories

Gross value

CHF m

Value

adjustments

CHF m

2011

CHF m

2010

CHF m

Raw materials and supplies 123.0 – 15.2 107.8 89.1

Unfinished goods 51.0 – 9.6 41.4 42.8

Finished goods and merchandise 52.7 – 6.5 46.2 36.5

Work in progress 75.8 – 0.3 75.5 66.0

Advance payments to suppliers 35.4 0.0 35.4 21.2

Total 337.9 – 31.6 306.3 255.6

In prior year, value adjustments deducted from inventories amounted to

CHF – 34.0 million. No material reversals of value adjustments of the prior

year were recognized in the reporting year.

13 Production orders in progress2011

CHF m

2010

CHF m

Production orders in progress 291.8 265.4

Advance payments from customers – 144.1 – 104.2

Net assets of production orders in progress 147.7 161.2

Production orders in progress – 24.1 – 27.6

Advance payments from customers – 279.0 – 259.9

Net liabilities of production orders in progress – 303.1 – 287.5

Accumulated costs and recognized profits 1,355.2 1,254.5

14 Trade accounts receivable2011

CHF m

2010

CHF m

Trade accounts receivable

from third parties 453.6 433.6

from non-consolidated companies 0.6 0.3

from associates 0.0 0.0

from related parties 0.1 0.2

Allowance for bad debts – 12.3 – 10.1

Total 442.0 424.0

The trade accounts receivable include supplier credits of CHF 89.6 million

(prior year CHF 128.7 million), which are financed in accordance with the

treasury strategy. A generally high degree of liquidity characterizes these

items.

CHF 35.6 million (prior year CHF 64.7 million) of these will not be due

within the next twelve months.



15 Other accounts receivable, prepayments and accrued income2011

CHF m

2010

CHF m

Value added tax credits 24.2 17.8

Other accounts receivable

from third parties 37.3 36.7

from non-consolidated companies 3.2 2.0

from associates 0.0 0.0

from related parties 1.4 0.0

Prepayments and accrued income 14.1 15.2

Allowance for bad debts – 1.6 – 0.4

Total 78.6 71.2

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, 2011:

Contract or underlying

principal amount Positive fair values Negative fair values

16.1 Derivative financial instruments2011

CHF m

2010

CHF m

2011

CHF m

2010

CHF m

2011

CHF m

2010

CHF m

Currency-related instruments

Forward foreign exchange rate contracts 531.7 272.2 7.7 5.0 11.8 3.2

held for trading 177.0 224.9 2.3 2.8 1.4 3.2

cash flow hedges (effective part) 354.7 47.3 5.4 2.2 10.4 0.0

Over the counter currency options 199.7 485.1 1.7 9.6 1.7 0.5

Cross currency swaps 0.0 0.0 0.0 0.0 0.0 0.0

Total of currency-related instruments 731.4 757.3 9.4 14.6 13.5 3.7

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

Futures 0.0 0.0 0.0 0.0 0.0 0.0

Total derivative financial instruments 731.4 757.3 9.4 14.6 13.5 3.7

Thereof included in securities and in

short-term financial liabilities 674.8 757.3 8.3 14.6 12.5 3.7

Thereof included in other long-term financial

assets and financial liabilities 56.6 0.0 1.1 0.0 1.0 0.0

92

USD

CHF m

EUR

CHF m

Other

currencies

CHF m

Total

2011

CHF m

Total

2010

CHF m

Currency-related instruments

Forward foreign exchange rate contracts 183.7 273.2 74.8 531.7 272.2

held for trading 71.3 44.1 61.6 177.0 224.9

cash flow hedges 112.4 229.1 13.2 354.7 47.3

Over the counter currency options 77.8 113.4 8.5 199.7 485.1

Cross currency swaps 0.0 0.0 0.0 0.0 0.0

Total of currency-related instruments 261.5 386.6 83.3 731.4 757.3

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 261.5 386.6 83.3 731.4 757.3

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

nancial assets and negative replacement values are included in financial

liabilities. The futures are equity indexes and commodity futures.

16.2 Marketable securities2011

CHF m

2010

CHF m

Equity securities 5.6 1.7

Bonds 73.6 84.1

Derivative financial instruments 8.3 14.6

Accrued interest on debt securities 0.9 1.3

Other securities until twelve months 11.7 6.2

Total marketable securities 100.1 107.8



17 Defined benefit obligations

17.1 Actuarial assumptions 2011 2010

Discount rate 2.7 % 3.0 %

Expected rate of return on plan assets 3.4 % 4.5 %

Future salary increases 1.4 % 1.5 %

Future pension increases 0.1 % 0.2 %

17.2 Reconciliation of defined benefit obligation and fair value of plan assets2011

CHF m

2010

CHF m

Defined benefit obligation at January 1 1,147.6 1,123.1

Interest costs 34.3 41.0

Current service costs (employer) 25.3 24.6

Contributions by plan participants 15.9 15.9

Past service costs 0.0 – 26.6

Benefits (paid) / deposited – 61.6 – 58.6

Business combinations 0.0 1.2

Curtailment and settlements 0.0 – 2.4

Other effects 0.0 – 26.3

Actuarial (gain) loss on obligation (balancing figure) 3.3 66.5

Currency translation adjustments – 1.0 – 10.8

Defined benefit obligation at December 31 1,163.8 1,147.6

Reconciliation of the fair value of plan assets

Fair value of plan assets at January 1 1,046.0 1,041.5

Expected return on plan assets 34.6 48.0

Contributions by the employer 25.4 54.5

Contributions by plan participants 15.9 15.9

Benefits (paid) / deposited – 61.6 – 58.6

Business combinations 0.0 0.0

Curtailment and settlements 0.0 0.0


Actuarial gain (loss) on plan assets (balancing figure) – 56.9 – 20.4

Currency translation adjustments – 0.8 – 8.6

Fair value of plan assets at December 31 1,002.6 1,046.0

Actual return on plan assets – 22.2 27.6

In the prior year, “Contributions by the employer” included a one-off de-

posit of Bühler AG in the pension fund of the Swiss entities of CHF 18.9 mil-

lion; “other effects” of CHF – 26.3 million stemmed from the closure of a

defined-benefit pension plan in the US in 2010. No such effects occurred

in 2011.

94

17.3 Statement of income and (expense) recognized directly in other comprehensive income 2011

CHF m

2010

CHF m

Current year actuarial loss (gain) on plan assets 56.9 20.4

Current year actuarial loss (gain) on benefit obligation 3.3 66.6

Effect of IAS 19, § 58 (b) limitation – 3.1 – 5.0

Past service costs 0.0 – 26.6

Currency translation adjustments 0.0 0.0

Amount recognized outside the statement of income: loss (gain) 57.1 55.4

Cumulative amount recognized outside the statement of income 233.6 176.5

In the prior year, past service costs of CHF – 26.6 million were recog-

nized within other comprehensive income due to an amendment of the

pension fund policies of the Swiss entities. In 2011, no past service costs

were recognized.

17.4 Reconciliation of the amount recognized in the statement of financial position at year-end2011

CHF m

2010

CHF m

Present value of funded defined benefit obligation 1,158.6 1,142.2

Fair value of plan assets 1,002.6 1,046.0

Difference 156.0 96.2

Present value of unfunded defined benefit obligation 5.2 5.4

Unrecognized (past) service costs 0.0 0.0

Amounts not recognized because of IAS 19, § 58 (b) limitation 4.4 7.4

Liability (asset) recognized in the statement of financial position 165.6 109.0

Thereof recognized as separate asset – 5.3 – 6.5

Thereof recognized as separate liability 170.9 115.5

17.5 Pension expenses recognized in the statement of income 2011

CHF m

2010

CHF m

Current service costs (employer) 25.3 24.6

Interest costs 34.3 41.0

Expected return on plan assets – 34.6 – 48.0

Past service costs 0.0 0.0

Effect of curtailment and settlements 0.0 – 3.0


Currency translation adjustments 0.0 0.0

Expenses recognized in the statement of income 25.0 12.6

17.6 Best estimate of contributions2012

CHF m

Contributions by the employer 28.8



17.7 Plan assets at fair value consist of2011

CHF m

2010

CHF m

Equity instruments of the Group 0.0 0.0

Equity instruments third parties 307.8 385.2

Debt instruments of the Group 0.0 0.0

Debt instruments third parties 245.9 258.8

Properties occupied by or used by the Group 0.0 0.0

Other properties 244.9 233.0

Others 204.0 169.0

Total plan assets at fair value 1,002.6 1,046.0

17.8 Comparison of deficit / surplus2011

CHF m

2010

CHF m

2009

CHF m

2008

CHF m

2007

CHF m

Present value of defined benefit obligation 1,163.8 1,147.6 1,123.1 1,100.8 1,230.3

Fair value of plan assets 1,002.6 1,046.0 1,041.5 1,034.1 1,253.7

Deficit (surplus) 161.2 101.6 81.6 66.7 – 23.4

Experience adjustments on defined benefit obligation – 28.4 – 0.7 24.6 – 1.9 – 43.3

Experience adjustments on plan assets – 56.9 – 20.4 – 0.4 – 295.8 13.9

17.9 Defined contribution plan2011

CHF m

2010

CHF m

Expenses for defined contribution plan 3.7 4.1

The expected yield from investments is based on long-term market ex-

pectations and expert actuarial opinions that take into account the asset

allocation as well as closely observing and monitoring current develop-

ments. Taking into account the long-term nature of the various categories

of in vestment as well as the current market environment, an expected

yield of 3.4 % (prior year 4.5 %) was incorporated in the actuarial valuation.

96

18 Short- and long-term provisions

Provisions for

warranties

CHF m

Provisions for

personnel

expenses

CHF m

Other

provisions

CHF m

2011

CHF m

2010

CHF m

January 1 51.9 34.4 21.2 107.5 91.0

Additions 37.9 5.8 2.0 45.7 55.0

Utilization – 18.7 – 1.3 – 3.2 – 23.2 – 30.8

Release – 16.2 – 0.3 – 9.0 – 25.5 – 12.8

Changes in the scope of consolidation – 0.1 0.1 0.1 0.1 8.5

Reclassification – 0.3 – 3.7 0.0 – 4.0 1.4

Present value adjustment 0.0 0.0 0.0 0.0 0.0

Translation differences – 0.5 – 0.3 – 0.7 – 1.5 – 4.8

December 31 54.0 34.7 10.4 99.1 107.5

Thereof short-term 43.9 10.8 4.0 58.7 54.1

Thereof long-term 10.1 23.9 6.4 40.4 53.4

Guarantee provisions are created with a view to meeting potential guar-

antee obligations arising from the sale of machinery and technical equip-

ment. 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, 2011 resulted in an expense of

CHF 5.0 million (prior year CHF 4.5 million).

Among other things, the remaining provisions include provisions for

pending legal cases and other project risks.

Approximately 39 % (prior year 40 %) of the cash out-flows of the long-

term provisions are expected within the next three years.

19 Share capital

As of December 31, 2011 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 payable2011

CHF m

2010

CHF m

Trade accounts payable

to third parties 148.7 134.4

to associates 0.4 0.9

to non-consolidated companies 0.8 1.0

to related parties 2.2 3.0

Total 152.1 139.3

21 Other short-term liabilities, accruals and deferred income2011

CHF m

2010

CHF m

Value added tax owed 12.9 9.3

Advance payments 129.0 119.7

Other liabilities

to third parties 46.8 42.7

to non-consolidated companies 0.9 1.3

to associates 0.0 0.0

to related parties 0.1 0.6

Personnel related accruals 73.1 63.3

Other accruals and deferred income 91.2 104.2

Total 354.0 341.1

22 Information on financial leases (Bühler Group as lessor)2011

CHF m

2010

CHF m

Gross receivables from finance lease:

Not later than one year 0.0 1.4

Later than one year and not later than five years 0.0 0.0

Later than five years 0.0 0.0

Gross receivables from finance lease 0.0 1.4

Unearned future finance income on finance lease 0.0 0.0

Net investment in finance lease 0.0 1.4

Analyzing net investment in finance lease:

Not later than one year 0.0 1.4

Later than one year and not later than five years 0.0 0.0

Later than five years 0.0 0.0

Net receivables from finance lease 0.0 1.4

Additional information:

Allowance on receivables of financial leases 0.0 0.0

Unguaranteed residual values accruing to the benefit of the lessor 0.0 0.0

Contingent rents recognized as income in the period 0.0 0.0

98

23 Additions and disposals of Group companiesBook value

2011

CHF m

Market value

2011

CHF m

Market value

2010

CHF m

Cash and cash equivalents 1.8 1.8 34.3

Trade accounts receivable 4.2 4.2 13.0

Other receivables 1.7 1.7 1.9

Inventories 5.5 5.5 15.0

Net assets of production orders in progress 0.0 0.0 7.8

Current assets 13.2 13.2 72.0

Property, plant and equipment 6.7 6.7 33.4

Intangible assets 0.0 2.7 22.4

Financial assets 0.0 0.0 2.8

Deferred tax asset 0.5 0.5 0.3

Non-current assets 7.2 9.9 58.9

Trade accounts payable – 3.3 – 3.3 – 9.9

Net liabilities of production orders in progress 0.0 0.0 – 27.0

Short-term provisions 0.0 0.0 – 8.0

Other short-term liabilities. accruals and deferred income – 6.0 – 6.0 – 14.6

Current liabilities and provisions – 9.3 – 9.3 – 59.5

Deferred tax liabilities 0.0 – 0.5 – 6.7

Non-current liabilities and provisions – 1.6 – 1.6 – 1.9

Non-current liabilities and provisions – 1.6 – 2.1 – 8.6

Change in net assets 9.5 11.7 62.8

Non-controlling interests – 2.1 0.0

Effect of foreign exchange 0.0 0.0

Goodwill arising on acquisitions 10.7 54.9

Addition (+) to / disposal (–) from the Group 20.3 117.7

Outstanding purchase price payment 0.0 1.6

Cash disposed of (–) / acquired (+) 1.8 34.3

Cash flow from changes in the scope of consolidation – 18.5 – 81.8

The goodwill in the amount of CHF 10.7 million (prior year CHF 54.9 mil-

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

tions.

In the reporting period, the acquisition of Hefei Yijiete Optoelectronic

Technology Co. Ltd. with an addition to the Group in the amount of

CHF 11.2 million had the most substantial impact.



2011

Acquisition of Draiswerke Inc., United States of America. On Janu-

ary 1, 2011 the Group acquired 100 % of the shares in Draiswerke Inc.,

Mahwah, NJ, United States of America. The company develops, manu-

factures and sells cleantech products that enable productivity and effi-

ciency to be increased while conserving natural resources and cutting

energy consumption at the same time. In addition, Draiswerke Inc. main-

tains a testing center and provides process engineering as well as cus-

tomer services.

Establishment of Buhler Asia Pte Ltd. Singapore. On January 1, 2011

Buhler Asia Pte Ltd. started to operate as a sales, service and engineering

company in Singapore with a capital of USD 1.0 million.

Establishment of Buhler (Thailand) Ltd., Thailand. On January 4,

2011 the Group founded Buhler (Thailand) Ltd. with a capital of THB

10.0 million. The company conducts sales activities and provides services

to our customers in Thailand.

Acquisition of J.A. Tijdhof Beheer B.V., The Netherlands. On May 6,

2011 the Group acquired 100 % of the shares in J.A. Tijdhof Beheer B.V.,

Oldenzaal, The Netherlands, which was subsequently renamed into

Bühler B.V. The company manufactures and sells extrusion dies for the

feed and biomass market.

Acquisition of Hefei Yijiete Optoelectronic Technology Co. Ltd.,

China. On June 21, 2011 the Group acquired 70 % of the shares in Hefei

Yijiete Optoelectronic Technology Co. Ltd., Hefei, China. The company

manufactures and sells sorting machines focusing primarily on sorting

machines for the mid-sized market.

2010

Acquisition of Sanmak Industria de Maquinas S.A., Brazil. On Janu-

ary 15, 2010 the Group acquired 100 % of the shares in Sanmak Industria

de Maquinas S.A., Blumenau, Brazil. The company develops, manufac-

tures and sells sorting machines, and focuses primarily on the South

American market.

Acquisition of Bangsheng Bio-Technology Co. Ltd, China. On

June 1, 2010 the Group acquired 100 % of the shares in Bangsheng Bio-

Tech nology Co. Ltd., Guangzhou, China. The company manufactures,

distributes and trades food ingredients, food mixtures, specialty flour

improvers and baking ingredients for flour mill operators and the food-

processing industry.

Acquisition of Schmidt-Seeger GmbH, Germany. On September 22,

2010 the Group acquired 100 % of the shares in Schmidt-Seeger GmbH,

Beilngries, Germany. The company is globally active as a plant supplier in

the field of grain management and malting. In addition to its headquarters

in Beilngries, north of Munich, the company also has further production

sites in Döblen, near Dresden, and Delhi, India.

Establishment of Hebei Buhler Machinery Co. Ltd, China. On

July 28, 2010 the Group founded the Hebei Buhler Machinery Co. Ltd.

with capital of CNY 3.0 million. The company processes, sells and main-

tains mechanical components as well as providing services to millers.

24 Impairment tests

The 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.

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.

100

Result of the impairment test. The impairment test performed on

December 31, 2011 support the value of the carrying amount. As in the

prior year, no impairment needs to be recognized.

Sensitivity to changes in assumptions. A possible change in the dis-

count rate of 1 percentage point or a drop in sales of 5 percentage points

would not cause the carrying amount to exceed its recoverable amount.

Book value

CHF m

Base data used

Goodwill 2011 Discount rate Growth rate

Aeroglide Corporation, Cary 58.2 9.1 % 1.0 %

Bangsheng Bio-Technology Co. Ltd. 6.7 9.8 % 1.0 %

Bühler Barth AG, Freiberg a.N. 18.0 8.9 % 1.0 %

Hefei Yijiete Optoelectronic Technology Co. Ltd. 7.1 9.8 % 1.0 %

Schmidt-Seeger GmbH, Beilngries 41.7 8.9 % 1.0 %

Others 4.2 8.9 % 1.0 %

Total at December 31, 2011 135.9

Book value

CHF m

Base data used

Goodwill 2010 Discount rate Growth rate

Aeroglide Corporation, Cary 58.0 10.0 % 1.0 %

Bangsheng Bio-Technology Co. Ltd. 6.4 10.6 % 1.0 %

Bühler Barth AG, Freiberg a.N. 18.5 10.0 % 1.0 %

Schmidt-Seeger GmbH, Beilngries 42.8 10.0 % 1.0 %

Total at December 31, 2010 125.7

25 Contingent liabilities

Contingent liabilities to third parties are comprised as follows:

2011

CHF m

2010

CHF m

Bills discounted 0.0 0.5

Sureties, guarantees and other obligations 1.4 1.7

Total 1.4 2.2

26 Off-balance sheet obligations under operating leases

2011

CHF m

2010

CHF m

Leasing obligation up to one year 13.7 13.0

Leasing obligation as of one to five years 18.8 11.8

Leasing obligation over five years 6.8 4.6

Total 39.3 29.4

This item mainly includes obligations under long-term leasing agreements

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



27 Assets pledged or assigned to secure own liabilities

Borrowers’ notes in the following amounts were created with respect to

mortgages:

2011

CHF m

2010

CHF m

Carrying amount of real estates 0.0 17.8

Nominal amount used 0.0 9.3

Actual amount used 0.0 0.0

In the previous year, the acquisition of Schmidt-Seeger GmbH resulted

in the Group acquiring mortgage debts that were fully repaid by the end

of 2010.

In connection with open legal cases, assets of CHF 1.0 million (prior year

CHF 5.4 million) serve as collateral for own liabilities where the right of

disposal is limited.

28 Research and development costs

Research and development costs directly charged to the income state-

ment in the reporting period amounted to CHF 88.8 million (prior year

CHF 78.8 million). The main research and development unit is located at

the Uzwil headquarters.

29 Related parties

Related party transactions. A loan towards the shareholders in the

amount of CHF 70.0 million (prior year CHF 0.0 million) is disclosed under

other non-current financial assets. Loans from the shareholders in the

amount of CHF 50.0 million (prior year CHF 50.0 million) respectively

CHF 87.8 million (prior year CHF 9.2 million) is disclosed under short-term

respectively long-term financial liabilities. Other related party positions

are disclosed separately in the notes. Liabilities to pension plans amount-

ed to CHF 1.1 million as per 2011 (prior year CHF 1.7 million). 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 8.7 million (prior year CHF 7.1 million). In addition, pension

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

0.9 million) and CHF 5.0 million (prior year CHF 4.5 million) provisions for

other long-term benefits are recorded as expense.

30 Proposal of the Board of Directors

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

CHF 18.0 million (prior year CHF 18.0 million) or CHF 120 (prior year

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

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

CHF 40 for the fiscal year 2011. The dividend payment to the sharehold-

ers of the Bühler Holding AG amounted to CHF 18.0 million in the finan-

cial year 2011 (prior year CHF 12.0 million).

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 March 20, 2012.

32 Subsequent events

As of January 1, 2012 the Group has acquired a manufacturing facility in

Zamberk (Czech Republic). With these manufacturing capacities, the

Group is pursuing the strategic goals of continuing the growth especially

in Eastern Europe and manufacturing the products as closely to the cus-

tomers as possible; of building a cost-efficient production site for the top

market; and of increasing the flexibility by absorbing capacity peaks in

the future.

No other material events occurred after the balance sheet date.

102

Report of the statutory auditor on the consolidated financial statements

As statutory auditor, we have audited the accompanying consolidated

financial statements of Bühler Holding AG, which comprise the consoli-

dated statement of income, consolidated statement of comprehensive

income, consolidated statement of financial position, consolidated

statement of changes in equity, consolidated statement of cash flows

and notes (pages 65 to 101) for the year ended December 31, 2011.

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 se-

lecting and applying appropriate accounting policies and making ac-

counting 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, 2011 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 Markus Abderhalden

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, March 20, 2012


Consolidated Financial Statements

Financial Statements Bühler Holding AG

FINANCIAL STATEMENTS BÜHLER HOLDING AG.

104

INCOME STATEMENT BÜHLER HOLDING AG.

See notes

2011

CHF m

2010

CHF m

Income from subsidiaries 2 100.4 51.7

Financial income 3 8.3 6.6

Other income 4 0.0 1.6

Total income 108.7 59.9

Expense from subsidiaries 0.0 – 2.1

Amortization – 0.5 0.0

Financial expenses 5 – 6.8 – 18.0

Other expenses 6 – 1.0 0.0

Taxes – 1.2 – 0.6

Net income for the year 99.2 39.2




BALANCE SHEET BÜHLER HOLDING AG.As at December 31

See notes

2011

CHF m

2010

CHF m

Assets

Investments in subsidiaries 7 490.1 453.8

Loans to Group companies 8 130.6 113.7

Loans to related parties 9 70.0 0.0

Intangible assets 1.4 0.0


Accounts receivable from Group companies 10 43.5 40.1

Other accounts receivable 0.2 0.5

Prepayments and accrued income 1.3 0.8

Cash and cash equivalents 45.8 0.5

Current assets 90.8 41.9

Total assets 782.9 609.4

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 179.7 158.5

Net income for the year 99.2 39.2

Shareholders’ equity 577.0 495.8

Liabilities to Group companies 11 119.9 97.0

Liabilities to third parties 3.0 0.0

Liabilities to related parties 0.0 0.0

Short-term provisions 12 11.7 16.5

Accruals and deferred income 1.3 0.1

Short-term liabilities 135.9 113.6

Loans from related parties 9 70.0 0.0

Long-term liabilities 70.0 0.0

Total liabilities 205.9 113.6

Total shareholders’ equity and liabilities 782.9 609.4

106

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 663 b 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 predominantly reimbursements for administra-

tive services.

5 Financial expenses

Financial expenses primarily include interest expenses paid to Group com-

panies, in particular to Bühler AG, Uzwil, as well as net exchange losses.

6 Other expenses

Other expenses predominantly include non-refundable withholding taxes.

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 granted long term (more than one year).

9 Loans to and from related parties

These loans are owed from and to the shareholders.

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

These liabilities are primarily owed to Bühler AG, Uzwil.

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 obligations2011

CHF m

2010

CHF m

Sureties and guarantee obligations in favor of Group companies 390.2 347.6

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

2011

CHF m

2010

CHF m

Result for the year 99.2 39.2

Balance brought forward from prior year 179.7 158.5

Available earnings at the disposal of the General Meeting 278.9 197.7

The Board of Directors proposes to the General Meeting:

The distribution of a dividend 18.0 18.0

Carry forward to new accounting period 260.9 179.7

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 663 b,

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).

108

GROUP COMPANIES BÜHLER HOLDING AG.As at December 31, 2011. All companies listed are included as fully consolidated companies (C).

Production

Engineering

Share capital Partici- Distribution

in millions of pation Services / Consoli-

Name of company Country local currency rate Financing Held by dation

Switzerland

Bühler Holding AG, Uzwil CH CHF 15.0

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

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

Bühler Druckguss AG, Uzwil CH CHF 7.8 100.0 % Bühler Holding AG, Uzwil C

ASE-Bühler AG, Uzwil CH CHF 0.5 100.0 % Bühler Holding AG, Uzwil C

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

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

Europe

Bühler Deutschland GmbH, Beilngries DE EUR 0.0025 100.0 % Bühler AG, Uzwil C

Bühler Bindler GmbH, Bergneustadt DE EUR 0.275 100.0 % Bühler AG, Uzwil C

Bühler GmbH, Braunschweig DE EUR 12.629 100.0 % Bühler AG, Uzwil C

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

Bühler Druckgiessysteme GmbH,

Viernheim DE EUR 0.767 100.0 % Bühler AG, Uzwil C

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

Schmidt-Seeger GmbH, Beilngries DE EUR 16.0 100.0 % Bühler Deutschland GmbH, Beilngries C

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

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

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

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

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

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

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

Bühler B.V., Oldenzaal NL EUR 0.04538 100.0 % Bühler Holding AG, Uzwil C

Control Design & Development Ltd.,

Peterborough GB GBP 0.0001 100.0 % Buhler UK Holdings Ltd., London C

North America

Buhler Inc., Minneapolis US USD 3.2 100.0 % Bühler Holding AG, Uzwil C

BuhlerPrince Inc., Holland US USD 0.375 100.0 % Bühler Druckguss AG, Uzwil C

Buhler Aeroglide Corporation, Cary US USD 0.004 100.0 % Bühler AG, Uzwil C

Draiswerke Inc., Mahwah US USD 0.01 100.0 % Bühler AG, Uzwil C

Buhler Sortex Inc., Stockton US USD 1.0 100.0 % Bühler Holding AG, Uzwil C

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




Production

Engineering


in millions of pation Services/ Consoli-


Latin America

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

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

Buhler Sanmak Industria

de Maquinas S.A., Blumenau BR BRL 15.5 100.0 % Bühler Holding AG, Uzwil C

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

Africa

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

Buhler Properties (Pty) Ltd.,

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

Buhler Service Station (Zambia) Ltd.,

Lusaka ZM ZMK 700.0 100.0 % Buhler (Pty) Ltd., Johannesburg C

Buhler Limited, Nairobi KE KES 80.0 100.0 % Bühler Holding AG, Uzwil C

Asia

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

Schmidt-Seeger India Private Limited, Schmidt-Seeger GmbH,

New Delhi IN INR 41.4 100.0 % Beilngries C

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

Buhler (China) Holding Co. Ltd., Wuxi CN USD 30.0 100.0 % Bühler Holding AG, Uzwil C

Buhler Equipment Engineering (Wuxi)

Co. Ltd., Wuxi CN CHF 2.1 100.0 % Bühler Holding AG, Uzwil C

Buhler Food Ingredients (Guangzhou)

Co. Ltd., Guangzhou CN USD 5.3 100.0 % Bühler Holding AG, Uzwil C

Bangsheng Bio-Technology Co. Ltd.,

Guangzhou CN CNY 8.51 100.0 % Bühler Holding AG, Uzwil C

Zhengzhou Buhler Mechanical Co.

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

Yanzhou Buhler Mechanical Co.

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

Changji Buhler Machinery Co. Ltd.,

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

Buhler Fuyang Machinery Co. Ltd.,

Fuyand City CN CNY 3.0 100.0 % Buhler (Wuxi) Commercial Co. Ltd., Wuxi C

110

Production

Engineering


in millions of pation Services/ Consoli-


Asia (continued)

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

Buhler Mechanical Equipment

(Shenzhen) Co. Ltd., Shenzhen CN USD 0.6 100.0 % Bühler Holding AG, Uzwil C

Wuxi Buhler Machinery Manufacturing

Co. Ltd., Wuxi CN USD 23.0 51.0 % Bühler Holding AG, Uzwil C

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

Buhler Industrial (Shenzhen) Co. Ltd.,

Shenzhen CN USD 1.96 100.0 % Bühler Holding AG, Uzwil C

Buhler (Changzhou) Machinery Co. Ltd.,

Liyang City CN CNY 80.0 80.0 % Bühler Holding AG, Uzwil C

Changzhou Buhler Mechanical and Buhler (Changzhou) Machinery

Electric Engineering Co. Ltd., Liyang City CN CNY 3.0 80.0 % Co. Ltd., Liyang City C

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

Hefei Yijiete Optoelectronic

Technology Co. Ltd., Hefei CN CNY 18.0 70.0 % Buhler (China) Holding Co. Ltd., Wuxi C

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

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

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




Report of the statutory auditor on the financial statements

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

ments of Bühler Holding AG, which comprise the balance sheet, in come

statement and notes (pages 104 to 110) for the year ended December 31,

2011.

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 De-

cember 31, 2011 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 Markus Abderhalden

Licensed audit expert Licensed audit expert

(Auditor in charge)

To the General Meeting of Bühler Holding AG, Uzwil, St. Gallen, March 20, 2012

REPORT OF THE STATUTORY AUDITOR.

112

Publisher

Bühler Holding AG, 9240 Uzwil (CH)

Design/artwork

New Identity Ltd., Basel (CH)

Publishing system

Multimedia Solutions AG, Zürich (CH)

Text and editing

Bühler AG

Corporate Communications, Uzwil (CH)

PEPR, Peter Eberhard, Oetwil am See (CH)

Primafila, Zurich (CH)

Photography

Peter Tillessen, Zurich (CH), pages 20 / 21, 34–41

Raffael Waldner, Zurich (CH), pages 24–31

Erik Chmil, Cologne (DE), pages 44–49

Stephan Knecht, Zurich (CH), pages 4, 57

Cover photograph

BMW Leipzig, photograph: Erik Chmil, Cologne (DE)

Lithography

Roger Bahcic, Zurich (CH)

Printers

galledia ag, Flawil (CH)

This annual report is published in English and in a

prevail.

German translation. The English original version shall

5 Bühler Geschäftsbericht 2011

Bühler AG

CH-9240 Uzwil, Switzerland

T +41 71 955 11 11

F +41 71 955 33 79

www.buhlergroup.com

Documents

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