ANNUAL REPORT 2017

DRIVING
THE FUTURE

Innovations for a better world.

WE DRIVE BÜHLER IN AUTOMOTIVE
Most people are aware of Bühler’s position in the food

THE FUTURE and feed industry. But did you know that over the
years, our Advanced Materials (AM) segment has
become a relevant partner of the automotive industry?
Around 60% of the AM business is associated with
this industry. 2017 has been a very successful year
for AM – which is why we’ve made it the focus of this
Annual Report.

Rearview Lubricants Engine block Head-up Capacitor LED and laser

camera Trias Carat 350 Compact display Leybold Optics CAP light systems
SYRUSpro three-roll mill die-casting machine SYRUSpro 1500 vacuum coater SYRUSpro
vacuum coater vacuum coater vacuum coater

Taillight reflector Shock tower Steering column

AluMet Carat 280 Compact column
Ecoline 84
metallizer die-casting machine die-casting
Ecoline 84 machine

These are just a few examples of Bühler’s AM solutions for the automotive industry.
THE BÜHLER GROUP
Every day, billions of people come into contact with
Bühler process technologies to cover their basic needs
for food and mobility. We develop innovations for a bet-
ter world with a focus on sustainability, health, safety,
and energy efficiency.

GRAINS & FOOD

Bühler is an industrial process and technologies pro-
vider for the food and feed manufacturing industries.
We significantly contribute to safely feeding the world’s
population as a front-runner in the global production
and processing of wheat, maize, rice, pasta, cereals,
cocoa, and coffee. Our Grains & Food (GF) solutions
and technologies help manufacturers make safe and
healthy finished products for human and animal nutri-
tion. Learn more about where you will find our GF
technologies on pages 32−33.

ADVANCED MATERIALS
Bühler is a solution provider of die-casting, wet-
grinding, and thin-film technologies for high-volume
application areas, including the automotive industry,
precision optics, opthalmics, electronics, paints,
packaging, and inks. Our Advanced Materials (AM)
solutions and technologies help manufacturers pro-
duce higher-efficiency vehicles, keep foods safe,
give prescription-glasses wearers improved eyesight,
advance telecommunications, and make buildings
more economical. Learn more about where you will
find our AM technologies on pages 34−35.
2

Calvin Grieder, Chairman, and Stefan Scheiber, CEO.

 STATEMENT
Bühler Annual Report 2017
3

GROWTH
THROUGH VALUES

Dear colleagues, customers, and business partners,

Bühler developed favorably in 2017 thanks to substantial organic growth. Order intake
increased by 10% to CHF 2.80 billion and turnover rose by 9% to CHF 2.67 billion.

For us, growth is not an end in itself. Instead, we view it as a genuine sign that our
customers and the markets have responded positively to our mission of creating sus-
tainable value. We have focused our efforts on achieving 30% less energy and waste
in our customers’ process solutions – this is the target we set ourselves for 2020.
We are fully aware that we have taken on a significant challenge.

With the introduction of numerous new technologies and solutions in 2017, we have
moved closer to achieving these ambitious objectives. We have brought more than
50 new products to market that use less energy, reduce waste, and bring about
greater yield and quality. The Bühler Networking Days held at Interpack in 2017 also
centered on our overarching drive for innovation and sustainability.

An important strategic step in 2017 was the announcement of the acquisition of the
Austrian Haas Group, the world market leader for biscuit, wafer, and waffle production
systems. The integration of Haas will enable us to offer customers new, comprehen-
sive solutions; and it will enable Bühler to secure a leading position in the attractive
consumer food business.

Serving our customers every day in a better way has also driven our efforts to expand
our service network and build our digital services platform. We have installed more
than 100 service stations around the world, and our digital myBühler portal is already
used by 20% of our customers − a significant step in real-time and proactive service.

Alongside other significant strategic developments – such as the start of construc-

tion of the CUBIC innovation campus at the Uzwil headquarters and the moderniza-
tion of our Swiss sites – keeping quality and the best delivery service in our hands
has driven us to invest and expand our global local manufacturing sites as well. We
built a new 200,000-square-meter site in China. In 2017, Bühler also took the plunge
into the capital market for the first time in its 150-year history. We raised new capital
with a corporate bond to increase our leeway to develop further projects. We are
moving into 2018 with optimism and the objective of continuing our sustainable and
profitable growth.

We would like to express our sincere gratitude to our customers, partners, employees
and their families, and our owners. Our success is based on their trust and commit-
ment. We look forward to continuing this close and fruitful cooperation in the future.

Sincerely,

Calvin Grieder Stefan Scheiber

Chairman of the Board Chief Executive Officer
4
 CONTENTS
Bühler Annual Report 2017
5

CONTENTS

Statement of the Chairman and the CEO 2

Highlights 2017 6
Interview with CEO Stefan Scheiber 10

GROUP REPORT 17

OUR BUSINESS 31
Bühler in your life 36

THE FUTURE
OF MOBILITY 51

PARTNERSHIP
WITH CUSTOMERS 65
Lishen, China 66
City Group and Akij, Bangladesh 72
Africa Improved Foods, Rwanda 80
ZEISS Vision Care, Germany 88

SUSTAINABILITY 95

GOVERNANCE 107

FINANCIAL REPORT 129

6

HIGHLIGHTS
OF THE YEAR 2017
MODERNIZATION 2017 NETWORKING DAYS BEST SUPPLIER AWARD
OF SWISS SITES @ INTERPACK FOR SLURRY SOLUTION
At the Interpack trade show in Düsseldorf,
Germany, Bühler applies its Networking Days
concept to create an industry platform for the
development of sustainable solutions.

20 inno- 6 pro-
vations cesses
are unveiled are shown
at the event. at the event. With the Chinese battery
manufacturer Lishen, Bühler
developed a new process for
producing battery slurry – the
Bühler begins modernizing its core component of these
Swiss sites, with a focus on energy storage devices. With
manufacturing and logistics. the signing of the first large-
scale contracts in 2016, Bühler
250 guests 1.1 m reached achieved a market breakthrough. In July 2017,
attend the special Bühler’s social media Lishen presents Bühler with its award for Best
VIP event. activities are popular. Supplier for its performance.

January February March April May June

BÜHLER INSECT TECHNOLOGY SOLUTIONS ANNIVERSARY:

IS FOUNDED 70 YEARS OF SORTEX
Bühler establishes the joint venture, ing of insects. In mid-year, BITS was 70 years ago, Sortex invented the optical sorting
Bühler Insect Technology Solutions (BITS), awarded its first contract for building a process. Today it is one of the leading providers
together with the technology start-up factory. It is scheduled to go onstream in of such systems. Optical sorting is an important
Protix to drive the industrial process- the second half of 2018. process stage in ensuring food safety and in
recycling applications.
Eggs
Everything that can be sorted with
Sortex technologies:
Adult black
soldier fly
Food Rearing Larvae
losses Agricultural Coffee
Co
offee
fee Confe
Con
Confec-
fec- Dehydrated
up to 80% nutrient recovery
seeds tionery
ry foods
and waste
1.3 billion
t/year
300 million t/year of nutrients
could be recovered Fruits
Fruiits Grain Nuts Oil
Ol
seeds
see
eds
Rearing residue Larvae
processing processing

Fertilizer for Lipids and protein meal Pulses

s Plastics Rice Spices
S
plant nutrition for animal nutrition

Snacks Soup Tea Vegetables

pasta
 HIGHLIGHTS
Bühler Annual Report 2017
7

BAKERY INNOVATION HAAS AND BÜHLER: TOGETHER THEY WILL

CENTER REOPENS BECOME NO. 1 IN CONSUMER FOODS
The new Bakery Inno-
vation Center in Uzwil
opens. Bühler customers
can now test product
formulas and processes,
and develop solutions
to consistently create Bühler announces that Haas, the Austrian 2018. By teaming up with Haas, Bühler is in
top-quality products market leader in the field of wafers, biscuits, a position to develop and market complete
in this 1,000-square- and confectionery production equipment, is solutions for making wafers, cakes, choco-
meter facility. joining the Bühler family effective January late confectionery, and bakery products.

10 YEARS OF APPREN- YOUNG DELEGATES FIRST CAPITAL

TICES ABROAD VISIT BOGOTÁ MARKET ENTRY
Bühler celebrates 10 years of Bühler sends seven delegates to For the first time in its corporate
sending its apprentices in Switzerland One Young World. This annual history, Bühler enters the capital
abroad for a portion of their training. conference brings together the market by launching a
world’s most talented young leaders, corporate bond.
Apprenticeship locations abroad encouraging them to bring about
Braunschweig positive change.
London
Changzhou
Minneapolis Wuxi CHF 420 m
Bangalore Through the issue of a dual-tranche
bond, Bühler will enhance its invest-
Johannes-
Joinville burg ment and acquisitions potential.

July August September October November December

CONSTRUCTING EMBRACING GROWTH BÜHLER BUILDS

THE CUBIC DIGITALIZATION IN ASIA HUGE BAKERY
Building work on Bühler founds a new business Bühler opens a new factory Bühler builds one of the
the new CUBIC area: Digital Technologies. in Changzhou, China. This world’s largest bakeries
innovation campus Its purpose is to develop production, research, and de- in Wittenberg, Germany.
begins. This project new digital services and velopment center specializes The Lieken bakery has now
is the expression of business models to keep our in processing equipment and started production.
Bühler’s commit- customers at the forefront of plants for animal and aquatic
ment to developing digitalization. One of the first feed and pet food. It will
innovations for a cloud services it launched is produce more than 10,000
better world. The TotalSense, which enables machines annually.
innovation center rice processors to check the
is connected to quality of their rice quickly, 200,100 m2 683,520 kg
an application easily, and cost-efficiently. is the total size of dough per day
center to bring of the is the maximum
the worlds of premises. total capacity of the bakery.
engineering
and business 9–10 km of piping
together.
are installed by Bühler
for liquids handling.

4.5 km of
pneumatic
conveying lines
are incorporated for
dry materials handling.

1.2 km of
aspiration lines
are installed.
8

HAAS ACQUISITION
One and one makes three
For Bühler, the strategic acquisition
of Haas (effective January 2018) is a
milestone in the development of its
consumer food operations. Bühler is
the market leader for manufacturing
chocolate mass and finished products
along the entire value chain. Haas is
the undisputed leader in the produc-
tion and manufacturing of equipment
for wafers, waffles, biscuits, and con-
fectionery – a very attractive market
that Bühler is now part of as a result
of this acquisition.

With this combination, Bühler can offer

customers in the consumer food in-
dustry new opportunities for innovation
and growth. We can now also provide
our milling customers with additional
opportunities for diversification. Both
family-owned companies have long
histories, a reputation for delivering
quality, and corporate cultures based
on trust and a commitment to sus-
tainability – an ideal starting point for
successful cooperation and integration.
 HIGHLIGHTS
Bühler Annual Report 2017
9

Bühler will open up its global network of around 100 service

centers, application centers, and innovation partnerships for
Haas customers and develop and provide complete solu-
tions for the production of wafers, waffles, biscuits, and
confectionery with chocolate and baked goods. Thanks
to Bühler’s strong presence in Asia, new opportunities are
opening up for waffle and biscuit products in this important
growth market.

Like Bühler, Haas is a family-owned business with over

100 years of tradition. Founded in Vienna by a locksmith,
Haas began producing wafer machines in the middle of
the century. Over the decades, the company became a
world leader in production equipment for wafers, waffles,
hard and soft biscuits, ice-cream cones, cakes, and baked
goods. With around 1,750 employees worldwide, Haas
generates a turnover of EUR 300 million and is active in
six countries with its own production facilities.
10
 INTERVIEW
Bühler Annual Report 2017
11

“WE’VE MADE AN
IMPRESSIVE LEAP”
CEO Stefan Scheiber, in an inter-
view with Head of Communications,
Burkhard Böndel, explains how
Bühler combines customer success
and sustainability, the role of digital-
ization – and why a strong corpo-
rate culture fuels growth.

Mr. Scheiber, a lot is happening at Bühler: You

acquired the Austrian wafer, waffle, and biscuit
specialist Haas, you are building an innovation
center in Uzwil, and you have successfully
entered the electric vehicle battery market.
That isn’t everything by a long shot. The list goes on. The first
orders for insect processing have come in; we’ve launched
the first digital service for the quality assessment of rice;
we’ve opened a new factory in Changzhou, China; we are
equipping our production with Industry 4.0 methods; and
we have aligned our Grains & Food operations more closely
with market needs.

Transformations like you’ve described don’t

happen overnight.
The foundations for it were laid years ago, and in many
cases we are now reaping the benefits. Take batteries, for
example. Five years ago, we began developing a completely
unique continuous mixing process to produce battery slurry
with our customers. The pilot line was launched in 2016, and
in 2017 Lishen opened its new gigafactory in Suzhou using
our new process.

How did you bring this change about?

It’s due to our innovation culture, which is bearing fruit.
Bühler reached a leading position in many areas over the
past few decades. But that can quickly lead to a situation
where people suppose that no further progress is possible.
People then automatically adopt a defensive attitude, and
they fight defensive battles. We’ve definitely broken through
12

Burkhard Böndel, Head of Corporate Communications. Stefan Scheiber, Chief Executive Officer.

this way of thinking. Of course, you can’t just change your
market share as and when you like. But even where we’re
already number one, there is so much untapped potential
in the markets. We’ve now so deeply ingrained a motto into
our consciousness that we’re making huge progress. We
call that motto “play-to-win” – for our customers, the world,
and also for ourselves.
In what direction is Bühler moving with this
impressive dynamism?
We have transformed ourselves into a solution provider
for the sustainable production of food and feed as well as
for applications for mobility and optics. We integrate value
chains and processes with one point of contact between
us and the customers. This way, we stand out from all the
other providers in the market.
What are some examples of full solutions?
Take the processing of grain, for example. We come in after
the combine harvester with silos, conveying systems, load-
ing and unloading systems. Then the raw materials go
through the cleaning process, optical sorting to ensure food
safety, processing with grinding and milling – through to
packaging. We can supply our milling customers with plants
for producing dough or pasta, and also waffles and biscuits.
In the Advanced Materials business, solutions consist of
highly integrated die-casting cells, including all the peripher-
ies, such as robotics. On top of that are our services, train-
ing courses, and the opportunity to work together on solu-
tions, such as new recipes, in our application centers. This
comprehensiveness is one of Bühler’s unique selling points.
We are extending it in a calculated way with new technolo-
gies, application centers, and the innovation campus – the
CUBIC – which is currently under construction. We no
longer think in terms of organizational business areas, but
from the customer’s perspective. We think in terms of pro-
cess solutions, for example: from grains to pasta, or from
aluminum to the finished structural element.
What do customers gain from this
comprehensive approach?
With our solutions, we can help our customers assure food
safety, increase the quality and nutritional value of their
products, reduce their energy consumption and waste, and
increase their efficiency. Our sustainability objective is to
enable our customers to use 30% less energy and produce
30% less waste. Such value is not created purely at the
machine level, but rather by integrating value chains across
entire systems. This becomes visible with major projects,
such as the ones we are completing in Bangladesh. Here
we are helping to fundamentally improve food supply
throughout the region. For us, sustainability isn’t just an
afterthought; it’s the starting point for our actions, espe-
cially when developing new technologies.
What are other benefits of this setup?
They are very practical: our customers don’t have to deal
with 20 different people, just with one contact. That makes
it easier to develop and implement complex projects. As
we develop products further, we can synchronize and stan-
INTERVIEW
Bühler Annual Report 2017
13
dardize individual elements strategically, with automation, for
example. Of course, it’s only possible to offer these kinds of
integrated solutions with qualified employees. This is why we
run excellent training programs for our employees, and our
customers also benefit from our offering. After all, top-range
equipment needs to be operated properly to reap the most
benefits. This training takes place in our global application
centers, or the milling schools that we run on every continent.
Which new opportunities does digitalization
open up for the industry?
We urgently need new technologies and solutions to make
our world more sustainable. Approximately 30% of all food
still goes to waste, too many antibiotics are being used in
animal feed, and our transport systems are coming close to
their limits. How can we better understand, manage, and
control such complex systems and value chains? This is
where data-based applications will help us in the future.
Can you give us an example?
We have now launched a quality check for rice made up
of a light box, an app, and a cloud solution. The rice pro-
cessor prepares a rice sample, slides it into the light box,
opens the app, and scans the grains with a mobile phone.
The app sends the image to our cloud, where it is analyzed
and a precise result is produced in minutes. The processor
can then use this information to optimize their plant and
negotiate prices with retailers with the documented quality
data. This is a significant leap relative to existing practice.
Currently, rice producers manually take samples once a day
“In 2017, we also established
our first team of data analytics
experts. Our goal is to help
advance digital transformation
in our industries.”
STEFAN SCHEIBER
CEO
by placing them on a grooved board and sorting the grains
of rice by hand according to their quality. This is not only
inconvenient, time consuming, and inaccurate; it doesn’t
produce structured, traceable data.
How is Bühler adapting to these changes?
We are doing this by setting up our new Digital Technol-
ogies business area, accelerating the development of such
services from our site in London, and investing extensively
in technical platforms and specialists. In 2017, we also es-
tablished our first team of data analytics experts. Our goal
is to help advance digital transformation in our industries.
14

How is this changing the relationship with our

customers and other partners?
We are moving even closer together. The enormous poten-
tial of connectivity lies not only in technology, but also in
people with their specific knowledge, experience, and skills.
A few years ago, we completely opened up the innovation
process at Bühler. Meanwhile, collaborative innovation with
customers, our employees, scientific institutions, start-ups,
nongovernmental organizations, and technology partners
has become an established practice for us.
No individual can answer the question of how to sus-
tainably nourish 9 billion people in 2050. This requires net-
works where various experts come together to develop
and implement new solutions. The fact that we at Bühler
have contributed to establishing such networks, not least
through our Networking Days, makes us proud, and we
regard it as a duty.
As a relevant market player in the areas of nutrition and
mobility, we have a responsibility to our customers and soci-
ety. We strive to live up to that calling.

“As a relevant market player in

the areas of nutrition and mo-
bility, we have a responsibility to
our customers and society.”
STEFAN SCHEIBER
CEO
 INTERVIEW
Bühler Annual Report 2017
15
16
 GROUP REPORT
Bühler Annual Report 2017
17

GROUP
REPORT
We present ourselves in a sound operating
condition and strategic setup. In the year under
review, we made important decisions, from our
successful entry into new markets and the
continuing expansion of our production network
to a strategic acquisition.
18

VALUE THROUGH
PROFITABLE GROWTH
How sustainability contributes to our
corporate success.

2017 was a successful year for Bühler. We succeeded in
creating sustainable value for customers, employees, and
the environment, in growing organically in almost all regions
and business areas, and in making a strategically significant
acquisition. Commissioning our newest production plant in
China has helped us further expand our global production
network. We also began modernizing our sites in Switzer-
land. Significant progress was made in the implementation
of our sustainability goals through the market launch of new
technologies and process solutions, such as manufacturing
battery slurry and the industrial processing of insects.
Our collaboration with partners in industry, science, and
business start-ups has played a key role in developing such
innovative solutions. We therefore plan to continue our Net-
working Days and have started building the CUBIC inno-
vation campus in Uzwil − a networking venue. This effort
includes remodeling our application centers. Digitaliza-
tion is increasingly the focus of our innovations – not as
an end in itself, but rather as a key technology to arrive
at new, sustainable solutions in food manufacturing and
materials processing. We are looking into the future with
optimism and are confident that we will be able to further
solidify our business development as we continue to work
on improving profitability.
Double-digit organic growth
The most important indicator of growth for Bühler is order in-
take. We were able to raise these by 10% to CHF 2.80 billion
compared to the previous year. Turnover increased by 9%
to CHF 2.67 billion, which resulted in an order backlog of
CHF 1.73 billion (+9%). All three figures are at record lev-
els. We have succeeded in setting a new, clear course of
growth – benefited by the overall positive world economy.

Order intake Turnover

(in CHF billion) + 10% (in CHF billion) + 9%
2.80 2.67
2.58 2.47 2.54 2.41 2.45
2.36 2.32 2.33

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

Equity ratio Net liquidity

(in %) -2.2 pp (in million CHF) + 87%
863*

45.7 47.0
44.6 45.2 44.8

464 462
377 392

*Includes corporate
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 bond of CHF 420 m.
 GROUP REPORT
Bühler Annual Report 2017
19

It is also gratifying to note that both businesses of Bühler
have grown. Grains & Food (GF) increased its received order
intake by 7% to CHF 2.1 billion and Advanced Materials (AM)
by 21% to CHF 672 million.
GF turnover grew by 7% to CHF 2 billion, and AM by 19% to
CHF 640 million. In terms of regions, Asia (+20%) and the
Middle East & Africa (+12%) showed the strongest turn-
over growth. Even Europe saw a reasonable increase of 4%.
In terms of turnover, our geographic range is thus broad
and well-balanced: Europe 29%, Asia 28%, North America
16%, Middle East & Africa 15%, South Asia 6%, and South
America 6%.
Structurally, our portfolio mix showed progress as well. In
2017 we decided to independently capture and strengthen
the single machines business sector in addition to projects
and plants and services. Since then, we have shown strong
growth of 32% in this area. Our growth in turnover for proj-
ects and plants is 8%, and for services 4%.
Profitability
Our increase in profitability shows that we have established
solid, profitable growth despite a challenging cost situa-
tion. EBIT increased in absolute terms by 18% to CHF 205
million, which represents an EBIT margin of 7.7% (previous
year: 7.1%). Supported by a good financial result of CHF
13 million (previous year: CHF 6 million), net profit reached
CHF 174 million (+22%).
Already at a solid level, Bühler’s financial situation continued
to strengthen. We had a strong increase in investment into
the asset base of CHF 100 million (+41%). The operating
cash flow dropped slightly to CHF 158 million. Net liquidity
jumped to CHF 863 million (+87%) as a result of the cash
inflow from the corporate bond of CHF 420 million. Despite
this gain from external financing, the equity ratio remained
high at 44.8% (previous year: 47.0%). The capital perfor-
mance indicator RONOA (return on net operating assets)
grew from 19.5% to 21.0%, indicating the efficient use of
given resources and an ongoing high financial flexibility.
Corporate bond successfully launched
In order to finance our many strategic initiatives long-
term, we decided to obtain capital from the financial mar-
ket for the first time. The company bond of CHF 420 million
is divided into two tranches with terms of five and nine
years – CHF 180 million (Tranche A), and CHF 240 million
(Tranche B). The bond gives us the needed company flexi-
bility at favorable conditions to invest in modernizing our
locations, our innovation centers, and the digital trans-
formation of our company, in addition to acquisitions.

EBIT Net profit

(in CHF million) + 18% (in CHF million) + 22%
205 174
177 174 143 143
139 145 123 121

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

Return on net operating Investments into

assets (RONOA) asset base
(in %) +1.5 pp (in CHF million) +41%
100
88
22.0 21.0
18.1 19.5 71
17.6
58
54
0

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
20

STRONG OPERATING BUSINESS

Both Bühler businesses contributed to the positive result for the year, and
Advanced Materials once again stood out with strong growth rates and
record results. Both businesses were able to gain additional market share
despite somewhat saturated markets.

Turnover by business area

(in %)

4 27
Grinding & Dispersing Grain Milling

8
Leybold Optics
12
Die Casting

8
Grain Logistics 21
9 Value Nutrition
Sortex & Rice
10
Consumer Foods

GRAINS & FOOD

The food processing business increased order in-
take by 7% to CHF 2.1 billion and, with that, its
turnover by 7% to CHF 2 billion. An important
factor in our success is the ability of Grains & Food
to offer sustainable, integrated, complete solutions,
which we demonstrated at our booth at Interpack, in
Düsseldorf, Germany where we held our Networking
Days @ Interpack event. To continue promoting this
approach of providing integrated solutions, we decid-
ed in 2017 to refocus Grains & Food. This involves
the renaming and further development of the business
areas. These changes took effect at the beginning of
2018. The business areas and results shown in this
report reflect the structures from 2017.
Grain Logistics (in 2018: Grain Quality & Supply)
Grain Logistics continued to expand its leading position in
the beer market and was able to win globally significant malt-
ing projects. Five of the newest plants in Holland, the US,
Australia, China, and Vietnam were put into operation. The
rice business was equally successful. Bühler secured its
position as the global market leader with large orders, pri-
marily from Nigeria and Angola. To achieve this, the close
collaboration with the individual business areas was crucial.
The conveying system TUBO, launched in 2016, was very
well received on the market and was launched for other raw
materials such as coffee and rice. In contrast, challenging
conditions in the grain storage market led to postponement
of large investments in Asia.

Order intake
CHF 2.1 billion + 7%
Turnover
CHF 2.0 billion + 7%
Grain Milling (in 2018: Milling Solutions)
With multiple large projects, Grain Milling is again on a
course of growth and was able to further expand its lead-
ing position in saturated markets. In Switzerland, the highly
acclaimed Kornhaus in Zurich was completed through a
close partnership between Swissmill and Bühler. In the US,
we successfully put a new process for manufacturing corn
flour into operation for our customer Plant Good Harvest.
The Prime Masa reduces wastewater by about 90% using
steam and increases yields at the same time.
In Rwanda, a plant for manufacturing fortified foods for ex-
pectant mothers and babies started operation with the goal
of reducing malnutrition in the country. It was a community
project within Bühler Milling Solutions and Value Nutrition
and partner DSM (see pages 80–87). Bühler also received
a large order to supply over 1,000 microdosing units in Pa-
kistan. These have been placed with local milling operations
as part of the British Food Fortification Programme and will
have a positive effect on millions of people in this region.
Value Nutrition
Value Nutrition recorded an excellent business year. The stra-
tegic focus on the feed business led to strong increases in
market share in Europe, the Middle East & Africa, and Asia.
After the delivery of the first five plants for the Philippine
food group San Miguel, Bühler and the company reached
an agreement on further expansions.
The close partnership with the pasta maker Barilla resulted
in a new project in Russia and an expansion of the Bühler
pasta business. Value Nutrition opened application centers
in China to adapt end products even more to market de-
mands: in Wuxi, it opened Pasta & Noodles, and in Chang-
zhou, a center for the production of machinery and plants
for animal feed, aquafeed, and pet food. With an order for
the first industrial insect processing plant in Europe, Bühler
GROUP REPORT
Bühler Annual Report 2017
21
proved that it is possible to scale protein production from
insects. The plant will serve as a blueprint.
Sortex & Rice (in 2018: Digital Technologies)
Sortex & Rice recorded above-average growth in optical
sorters as well as in rice processing. The newly introduced
sorting technology for frozen vegetables and fruits grew
faster than the market; at the same time, Bühler was able
to reinforce its position in the recycling market. Sorting PET
waste using the Bühler Sortex E PolyVision and Sortex A
ColorVision machines creates bottle-grade recycled PET
flakes at the highest yield in the market. The business area
has now put the same technical capabilities to use for de-
veloping the first completely digital quality service for rice:
TotalSense. This app allows processors to subscribe to a
cloud solution that can reliably collect and document the
quality of a rice sample in just a few seconds.
Consumer Foods
Consumer Foods developed very well over 2017. Japanese
customer Meito decided to build a new plant in Seto, north
of Nagoya, and chose Bühler as their preferred full-scope
provider. The order consists of a complete cocoa processing
line, from cocoa bean intake to cocoa liquor, and a choco-
late mass production line from ingredient handling to liquid
chocolate mass storage.
The coffee business was also successful in the past year.
The new coffee roaster ordered by Chicco d’Oro in 2015 was
successfully commissioned. Bühler also signed a contract
with its Norwegian customer Joh. Johannson to build a
carbon-neutral plant. We demonstrated our competence
in integrated and sustainable complete solutions with our
Networking Days @ Interpack where we launched 20 pro-
duct innovations, including a robot-supported plant for
lower volumes (ChocoBotic) and DoMiReCo, a digital, self-
controlled process.
22
ADVANCED
MATERIALS
The Advanced Materials business developed excep-
tionally and recorded a record year in 2017. Order
intake increased substantially by 21% to CHF 672 mil-
lion; and turnover rose strongly by 19% to CHF 640
million. This shows that Advanced Materials was the
growth engine for the Bühler Group and, with the fo-
cus on mobility over the past years, it has become the
second pillar together with the food processing area.
About 60% of revenues for Advanced Materials stem
from the automotive industry.
Grinding & Dispersing
After multiple years of joint research and development with
its Chinese customer Lishen, followed by a first pilot line in
2015, Grinding & Dispersing finally made a breakthrough in
its new battery business in 2017 (see pages 66–71). The
business area successfully launched a new process for
manufacturing electrode slurries. The process enables
maximization of the energy density of the batteries and
is also more economical. Lishen successfully started up
a total of 10 production lines and honored Bühler with its
Best Supplier Award.
In addition, the business area also won contracts from other
customers, which made the battery business into a robust
and quickly expanding market for Grinding & Dispersing. The
business area also continued to grow in other application
fields, such as digital printing for personalized applications
and, especially, color printing for the packaging industry –
also driven by innovative technologies such as Macro-
Media and MicroMedia, along with integrated plant construc-
tion competences for efficient solutions in wet grinding.
Die Casting
After several years of strong growth and moving up to be-
come the global market leader, Die Casting increased its
order intake to a high level and revenues rose considerably
again. The Ecoline machine series was a particular growth
driver, with more than 100 orders logged. Three factors are
decisive in addition to leading technical solutions. First, Die
Casting is the only supplier in all three relevant production
regions of the automotive industry – Europe, America, and
China – and has its own assembly plants, service and ap-
plication centers. It can thus support internationally active
processors globally.
Second, the business area has extensive application knowl-
edge about structural aluminum components and can assist
its customers with this demanding application. Third, Die
Casting is also benefiting from the rapid growth of e-mobility,
because more and more parts are being made of light alloys
to cut down on weight for these vehicles.
With more than 400 Carat machines installed for large and
complex components as well as over 400 installed Eco-
line machines, Bühler has the strongest global presence.
To continue this growth curve and increase service quality
for customers, Die Casting opened a global parts center in
Alzenau, Germany. The business area also commissioned
an application and technology center in China in order to
 GROUP REPORT
Bühler Annual Report 2017
23

Order intake
CHF 672 million + 21%
Turnover
CHF 640 million +19%

offer training as well as customer-specific application devel-

opment in the region. In the US, Die Casting installed the
largest-ever die-casting machine built by Bühler with a lock-
ing force of 4,500 tons for its customer Mercury Marine.

Leybold Optics
Leybold Optics was the most successful business area of
the Group in 2017 in terms of growth. After its big turnaround
and a very promising 2016, Leybold Optics was able to or-
ganically increase its incoming orders by more than 50%.
Plants for large-scale architectural glass coating, for which
Leybold Optics now has a global market share of about
60%, decisively contributed to this.

More intense market cultivation and extensive service offers

based on innovative technologies led to success. Solutions
for precision coating of sensors, camera lenses, and screens
for the automotive industry and entertainment electronics
were also significant. The increasing emergence of driver-
assisted systems, mobile devices, and devices equipped
with sensors and IoT solutions is generating a demand that
Bühler can exploit with its ultra precise and economical ma-
chines for coatings on the nanometer scale.

To further respond to current trends, Bühler opened an ap-

plication center at Leybold Optics in Alzenau, Germany. It
offers different vacuum-coating machines, ranging from
small to large rigid substrates; to plastic films; to deposition,
such as evaporation with various types of plasma assistance;
to sputtering, including ion-beam sputtering.
24

REGIONAL
PRESENCE
Bühler enjoyed growth in
all regions, with Europe 29% 28%
and Asia as front-runners.

Europe Asia
Following its strategy of “in the region, Turnover
for the region”, Bühler has become share by
region
a true global player with a balanced 5,205 (+3.1%)
presence of production sites, service
stations, research and development 3,535 (+3%)
facilities, and application and training
centers around the globe.
Employees
2017
(10,972
compared to
10,641 in 2016)

Sales offices 26 19

Service stations 26 22

Manufacturing sites 13 7

Application centers 6 6

Highlights Networking Days @ Inter- Record order intake

pack Düsseldorf boosts
Consumer Foods Europe
Well-performing markets
for Advanced Materials
Strong growth of opti-
cal sorting triggered by
innovations for fruits
and vegetables
Important strategic
projects won: GoodMills
Germany, Coffee Norway,
Malteries Soufflet Bulgaria,
Barilla Russia
Rapid growth with aqua-
feed solutions
Started first continuous
mixing process for electrode
slurry with more orders from
other customers coming in
Established Bühler Insect
Technology Solutions and
signed first full-plant contract
Strong growth of our
Customer Service business,
especially in China and
Southeast Asia
 GROUP REPORT
Bühler Annual Report 2017
25

15% 16%

6% South Middle East 6% South North

Asia & Africa America America

590 (+3.7%) 470 (+4.4%) 399 (+1%) 773 (+3.6%)

5 14 5 8

15 15 12 8

1 2 2 3

1 1 1 4

Successful market entry
in aqua feed
Speciality Milling continues
to grow with new applica-
tions in maize
Market leadership for
optical sorting
Growth in the Advanced
Materials business, with
an exceptional year for
Die Casting
Strong order growth in
plants and projects, sin-
gle machines, and in Cus-
tomer Service
Successful diversification
from Grain Milling to other
business areas
Substantial growth in Rice
and Grain Logistics
New orders for glass
coaters from Turkey
Biggest single-machine
order to improve nutrition
in Pakistan with over
1,000 microdosing units
Strong sales performance
of Colombia, Peru, Ecua-
dor, Chile, and Argentina
Good order intake in Cus-
tomer Service with growth
of nearly 20%
Successful sale of more
than 50 oil-processing
machines for Renova, and
ship loaders and conveyors
for port terminals AGD and
Terminal 6 in Argentina
Sale of a 20 t/h rice mill to
ORF in Colombia
ISO 9000 accreditation
Introduction of a new
optical sorter for fruits,
vegetables, and tree nuts
Successful commissioning
of 120,000-tonne malting
facility commissioned for
Great Western Malting
Banco de México places
largest order in the region
for Grinding and Dispersing
Die Casting increased
market share to 50% for
new structural castings
Regional apprenticeship
program enhanced
26

STRATEGIC INVESTMENTS
We made considerable investments for the future in 2017, including
the Haas acquisition, the development of new digital technologies
and process solutions, the modernization and expansion of our
production network, and breaking ground for our innovation campus.

Haas joins the Bühler Group
A high point of 2017 was the announcement of the take-
over of the Austrian Haas Group. The transaction closed in
January 2018. The Haas family decided to put the company
under the Bühler Group umbrella after long-term strategic
considerations. Haas is a highly regarded manufacturer of
plants for wafers, biscuits, and confectionery and a clear
market leader. None of the machines or solutions of either
company overlap, and they complement each other superb-
ly. It also became clear that many customers use products
from both Bühler and Haas at the same time.
This step has opened great perspectives for Bühler and
Haas to jointly take a leading position in the consumer food
market and also to offer customers integrated solutions
along the entire value chain from a single source. For the
time being, Haas will be managed as an independent unit.
Because of similar corporate cultures as family companies,
and identical customer orientation and quality standards,
the conditions for successful integration are optimal.
Expansion of digital services
Bühler achieved a milestone in its digital transformation
and development of new, service-oriented business mod-
els. Digitalization creates new possibilities to control the
quality of processes, enhance transparency along the
value chain, and improve efficiency of machines and sys-
tems worldwide, thereby achieving Bühler’s sustainability
goals. Bühler developed a new global platform for digital
services in collaboration with Microsoft, and also created
a new business area, Digital Technologies, as part of the
Grains & Food business refocus. The first digital services

The Bühler factory in Changzhou, China, specializes in processing equipment for animal and aqua feed and pet food.

Bühler’s secure, Internet of Things technology solutions enable customers to remotely access production data.
have already been launched, for example, TotalSense. For
the first time, Bühler sold not only hardware, but also an
app that is installed on a smartphone. TotalSense enables
rice producers to determine quality online. Until now, espe-
cially with smaller processors, the rice was controlled man-
ually. This approach is slow and prone to error.
The user takes a photo of the rice sample using an
Android smartphone, uploads it to the Bühler cloud, and
within a few minutes it has been analyzed according to the
parameters the user has set. This low-cost solution gives
rice processors peace of mind with consistent, reliable feed-
back on the quality of their rice. Currently, there are about
50 such new digital services under development, and about
10 of them will be put on the market in early 2018. Bühler
is investigating how to further expand its growing portfolio
of digital services.
Modernization of the global production network
With regard to investments in Bühler’s global production net-
work, two projects stand out: the opening of the new factory
in Changzhou, China, and the modernization of the Swiss
sites. The new plant in Changzhou was put into operation in
September and now serves as a global center for the man-
ufacturing, research, and development of feed machines
and plants. The focus is on process solutions and complete
GROUP REPORT
Bühler Annual Report 2017
27
systems for the processing of feed for farm animals, fish,
and pets. In terms of production capacity, Changzhou is
one of Bühler’s three largest production sites. In terms of
production methods, manufacturing standards, and quality,
the plant sets a new standard within the Bühler Group.
Work on the modernization of the Swiss sites is on schedule.
The goal of the five-year project in Uzwil is to develop it into
one of the world’s leading production sites using Industry
4.0 technologies. In this way, the competitiveness of Swit-
zerland as a location should remain strong. The first phase,
which is largely completed, was to refurbish production and
logistics for mass-produced parts.
Construction of innovation campus begins
Bühler broke ground for its new innovation campus in Uzwil
(CUBIC) in 2017. The CUBIC comprises two elements: the
modernized application development lab and the new inno-
vation building. The building is slated for completion in the
first quarter of 2019. The considerable investment of about
CHF 50 million over a period of three years is a symbol of
Bühler’s dedication to innovation, technology, and Switzer-
land as its headquarters. This investment will strengthen the
company’s market leadership, and it contributes to the goal
of innovating to improve the world in collaboration with part-
ners from industry, science, NGOs, and start-ups.
28
FACING THE FUTURE WITH OPTIMISM
With our collaborative innovation model, we are developing
sustainable technologies and solutions – and are well posi-
tioned for the future.
Innovation
In 2017, Bühler already achieved its 2020 sustainability
target of running 50% of its research and development (R&D)
projects in collaboration with our business partners. We in-
vested around 4.5% of turnover into R&D (CHF 119 million),
and are expanding our collaboration network with custom-
ers, suppliers, start-ups, and leading academic institutions
to drive innovation and help meet our sustainability goals.
Bühler partnered with UNITECH to invite young people to
participate in the Carbon Footprint Challenge 2017. More
than 100 proposals to reduce carbon footprint came in, and
the teams behind the five best ideas were invited to Uzwil
to develop them further and pitch them to attending com-
panies. The winners, Counting Carbon, from Trinity College
Dublin, have a solid plan to change consumer behavior
ChocoBotic reinvents the traditional moulding line with robotics.
with transparent labeling that features carbon footprint infor-
mation. They are now working in the Bühler-supported Mass-
Challenge accelerator.
Sustainability
This has been a landmark year for Bühler as we continue
to play our part in creating a safe, healthy planet for future
generations (see pages 96–97). In 2017, we already exceed-
ed our target to ensure 20% of our R&D projects focus on
improved nutrition, and the number of R&D projects that
increase yield and reduce waste have also risen to 39%,
showing good progress toward our ultimate target of 50%.
The Bühler Supplier Code of Conduct, designed to help
our suppliers as well as our manufacturing and logistics
partners achieve greater sustainability, has been signed by

Bühler’s process for manufacturing electrode slurries enables the maximization of the energy density of batteries.
30% of our primary suppliers from a standing start of zero in
2016, when it was rolled out. We are pleased with the prog-
ress being made toward the goal of 100% by 2020.
Outlook
Bühler is looking to the future with optimism. We are aware of
the speed of change in the digital age and have kept the un-
certainties of current world events in view − such as geopolit-
ical, currency, and interest rate issues as well as trends con-
trary to free trade. However, in view of these factors, we are
convinced that for Bühler the opportunities are significantly
greater than the risks. 2017 was an important milestone for
Bühler, including the acquisition of Haas, and securing the
financial means needed to expand the company’s investment
and acquisition potential. We will continue to focus more
sharply on this as we work toward our vision of “innovations
GROUP REPORT
Bühler Annual Report 2017
29
for a better world” and achieve our ambitious sustainability
goals. Supported by new opportunities that have opened
up thanks to digitalization, unique integrated process solu-
tions, leading technologies, and its global presence, Bühler
is well-positioned for the future.
We will use this positioning in 2018 to present two more
Networking Days: in China, on the topic of “the future of
mobility”, and in Milan as part of the Ipack-IMA trade fair
under the theme “feeling good about food”. The official
opening of the new factory in Changhzou, China, in the mid-
dle of this year will strengthen our position in Asia as well as
in the global feed segment.
In fiscal 2018, Bühler is anticipating its growth course to
continue with further improved profitability.
30
 OUR BUSINESS
Bühler Annual Report 2017
31

OUR
BUSINESS
As diverse as Bühler’s end markets may be –
from food and feed, to vehicles, printing units,
buildings, packaging, lenses, batteries, and much
more – two common factors hold its broad port-
folio together: process solutions and sustainability.
32

GRAINS & FOOD

At a glance
We want everyone to have access to
Bühler Grain Quality & Supply provides
healthy food. Although the technolo-
gies, process solutions, and applica-
Grain Quality high-quality and safe solutions for
grains, malting and brewery, and rice.
tions of Grains & Food may be diverse, & Supply Its aim is to increase efficiency, improve
traceability, and reduce food loss.
they share the same focus − quality
and safety. We provide solutions for
the processing of grains, pulses, rice, Bühler Milling Solutions delivers state-
corn, cocoa, nuts, and coffee beans, Milling of-the-art process technology for
transforming raw materials such as soft
to name but a few. Bühler’s custom-
ers supply foods to more than 2 billion Solutions wheat, durum, rye, and maize into high-
grade flour and semolina products.
people every day. We want there to
be enough food for everyone, and we Bühler Value Nutrition is the global
want to reduce food waste. We want
to conserve energy and water, and we
Value solution and technology partner for
producers of animal feed, pasta and
want to help reduce the need for sugar Nutrition noodles, vegetable oil, cereals and
snacks, and pet food.
and fat in food to address overnutrition
and obesity.
Bühler Digital Technologies offers sort-
Grain Quality & Supply offers safe Digital ing machines, industrial measuring ma-
chines, sensors, control systems, and
cleaning, storage, and transport solu-
tions for raw materials and solutions
Technologies service-driven products for the food
and non-food processing industries.
for the processing of grains into malt
for beer. Milling Solutions combines Bühler Consumer Foods provides
the optimum grinding and processing Consumer innovative solutions for the processing
of cocoa, nuts, and coffee as well as
of grains and pulses with the highest
hygienic standards. Consumer Foods Foods the manufacturing of chocolate, bakery
products, and various bars.
enables confectionery manufacturers
to efficiently produce high-quality end
products. Value Nutrition allows energy-
efficient and safe production of pasta,
breakfast cereals, and animal feed via
extrusion, drying, and feed mills. The
70%
of all chocolate is produced
About

30%
newly established Digital Technologies in Bühler plants. 4 million
of all breakfast
tons of cocoa beans are
business area uses optical sorting and cereals are
harvested every year.
processed
cloud-based monitoring solutions to
with Bühler
ensure that contaminants are removed technologies.
during processing and the safety of
food and feed is documented.

All business areas offer integrated pro-

30%
of global rice and pulse pro-
cess solutions for value-added chains duction is covered by Bühler
from a single source: from green solutions. Rice is a staple
food for 3 billion people.
coffee or cocoa beans and harvest-
ed grain to roast and ground coffee,
chocolate bars, pralines, flour, noodles,
dough, or animal feed. This portfolio
is complemented by a global network
65%
of the world’s grain is pro-
of service, training, and application cessed on Bühler machinery.
centers for our customers around the
world. Our training offering helps cus-
tomers to operate Bühler systems op-
timally to achieve maximum yield and
reduced downtime.
75%
of global malt
40%
of industrially-made
processing is covered pasta is produced using
by Bühler solutions. Bühler technology.
 OUR BUSINESS
Bühler Annual Report 2017
33

How various raw materials become high-quality food products:

Seven examples of Bühler Grains & Food process technologies

= Where Bühler technologies are involved

Grain Paddy Coffee Cocoa

rice beans beans

Cleaning Intake, precleaning Cleaning, Cleaning, alkalization,

and storage sorting debacterizing, roasting

Grinding
Liquor grinding,
pressing
Rice
Dosing cleaning
Storage, handling,
conveying
Dosing, mixing

Weighing Dough Mixing

preparation
Drying
Refining,
Mixing Blending conching

Extrusion
Dough preparation Rice milling Forming Tempering
Hygienizing

Extrusion Roasting
Cutting Depositing
Drying
Grading
Baking

Tempering Cooling
Pelleting
Cooling Grinding
Cooling Bagging and
load out
Enrobing Demoulding
Enrobing

Decorating, Storing Cooling Supporting element Storage, Cooling Handling

sprinkling degassing

Biscuit Pasta Feed White Roast and Chocolate Chocolate

products rice ground coffee products products
34

ADVANCED MATERIALS
At a glance
We want to contribute to protecting
Bühler Die Casting is the global
the climate through the use of energy-
efficient vehicles, machines, and build-
Die technology partner for all die-casting
needs and supports its customers
ings – and this leitmotif plays an Casting through all phases of their investment.
important role in the technologies,
process solutions, and applications of
Advanced Materials. Lightweight alu- Bühler Leybold Optics is the special-
minum or magnesium parts – manufac- Leybold ist for state-of-the-art development
and manufacturing of vacuum deposi-
tured on die-casting cells – reduce fuel
consumption. Vacuum-coated archi-
Optics tion equipment.

tectural glass for facades – produced

on Leybold Optics equipment – makes Bühler Grinding & Dispersing offers
buildings more energy-efficient. Bat- Grinding & future-oriented technology and tailor-
tery slurry – manufactured on equip- made solutions for wet-grinding and
ment from Grinding & Dispersing – in- Dispersing dispersing processes.
creases the range of electric vehicles.

The range of applications the custom-

ers of the three business areas serve
is virtually endless: finely ground pig-
ments for paints, printing inks, cos-
metics, coatings for sensors, lenses,
camera lenses, smartphone screens,
precision optics, packaging, engine
blocks, oil pans, gear housings, struc-
tural parts, and more.
About 100%
of the top 10 packaging
Over

The markets are extremely diverse, but

60%
of all offset inks worldwide
ink producers use Bühler
solutions. 60%
of all banknote printing
Advanced Materials has one constant are manufactured with inks are made with
factor: mobility. The segment gener- Bühler technology. Bühler machines.
ates around 60% of its sales from the
automotive industry.

There are also similarities between the

business areas in terms of technology.
30
gigafactories will be running
worldwide by 2030. Bühler
It always comes down to the most pre-
technology
cise material processing with the high- has gained Some
est level of reliability and reproducibility
under industrial conditions.
market
share in the bat-
tery segment beyond
first-reference installations.
25%
components produced
of all
die-cast

Bühler manufactures high-precision globally are made on

die-casting cells. Its vacuum-coating Bühler systems.
systems deposit thin films on glass Nearly
and plastic on a scale measured in
nanometers. And wet milling produces
dispersions of pigments and particles
1,000
die-casting foundries
that are also on a nanometer scale. rely on Bühler
The business areas not only supply the day in, day out.
machines and systems to do this, but
also the process expertise – including
a worldwide network for training, con-
sulting, and services.
50%
of new cars worldwide
50%
of the world’s car
have die-cast compo- taillights and head-
nents produced with lamps are metallized
Bühler technology. on Bühler machines.
 OUR BUSINESS
Bühler Annual Report 2017
35

Aluminum to die-cast parts, pigments to cosmetics:

Six examples of Bühler Advanced Materials process technologies

= Where Bühler technologies are involved

Aluminum, Pigments Active material, Acrylic Resin Film

magnesium and chemical conductive additives, acid
materials binder, and solvent

Dosing Storage and Material Purifying Lens design Film manufacturing

conveying handling and primary slitting

Surfacing

Dosing and Liquid and powder Polymerization Film metallizing

weighing dosing

Polishing

Casting

Mixing and Dissolving Drying Slitting

pre-grinding Cleaning

Hardcoating
Wet grinding Continuous mixing Grinding Top coating
and dispersing

Extracting

Anti-reflective
coating

Conditioning, let- Filtering Surface Printing

down, adjustments crosslinking
Edging

Marking Potting, Storage and Diaper Framing Laminating

packaging degassing making

Die-cast Paint and inks, Electrode slurries Diapers Eyeglasses Food

components coatings, cosmetics, for batteries packaging
agrochemicals material
YOU’LL BE SUPRISED
TO SEE ...
 OUR BUSINESS
Bühler Annual Report 2017
... EVERYWHERE
OUR TECHNOLOGIES
TOUCH YOUR DAILY LIFE.
AM Coatings for
architectural glasses

AM Die-cast parts
for street lamps

GF Flour for
a variety of
bread and
baked goods

GF Chocolate
bars and
hollow figures
AM Filter
for sensors
in fitness
trackers

GF Beer

AM Coatings for
decorative metallizing

Every day, billions of people come into diapers, lipstick, banknotes, the foods Bühler’s businesses:
contact with Bühler technologies to you eat, and the vehicles you drive. We
cover their basic needs for food and strive to create innovations for a better Grains & Food GF
mobility, and more. Our technologies world, with a special focus on healthy,
Advanced Materials AM
are in your smartphone, solar panels, safe, and sustainable solutions.

This is just a small selection of products made with Bühler technologies.

 AM Paints
for houses

GF Sinking and
floating aqua feed

AM Color filters
for LCD screens

AM AM Lacquers AM Household
Inks and for furniture ceramics
coatings for
food packaging

GF Solutions AM Ink for

for recycling AM Electronic components inkjet printers
PET bottles for smartphones

GF Wheat and GF Rice

gluten-free pasta AM Die-cast
GF Pasta pots and pans

AM Security printing AM Electrode slurries for

inks and holograms residential stationary batteries
for banknotes
 AM Electrode slurries for
industrial stationary batteries

AM Film capacitors
for windmills
AM Metal slurry
for solar cells AM Coatings for
windmills

GF Coffee

GF Asian
noodles

INFOGRAPHIC
Inks for
AM
magazines

AM Agrochemicals

AM AM Inks and AM Automotive AM Superabsorbent

Lipsticks dyes for textiles coatings polymers for diapers
and nail-
polishes

AM Electrode slurries AM Protective coatings

for electric car batteries

AM Film capacitors for

electric and hybrid vehicles
 OUR BUSINESS
Bühler Annual Report 2017

AM Batteries,
sensors, and cameras

GF Handling
and storage
for grain, rice,
cocoa, and coffee

GF
Pellets
to feed
cattle
GF Vegetable oil

AM Coatings for
camera lenses
AM Anti-fingerprint
coatings and
decorative coatings
for eyeglasses
and sunglasses

AM Die-cast parts
AM Coatings for cars and scooters
for automobile
bezels and AM Augmented reality,

GF Waffles reflectors e.g., head-up display

for ice-cream
cones

GF Pet food
38

OUR SUSTAINABLE
STRATEGIC FRAMEWORK
To safely feed the world, reduce emissions,
and promote customer success, Bühler is
driven by its core topics.

Our mission is to find ways to feed a growing world popula-

tion with healthy and safe food and to translate the sustain-
ability issues facing the global food, feed, and automotive
industries into opportunities for our customers. To do this,
we identified five core topics in 2016 that are decisive for
driving change: food and feed safety, nutrition, energy and
waste reduction, digitalization and mobility.

Food and feed safety

Each year, an astonishing 10% of the world’s population
becomes ill from eating contaminated food, with the
World Health Organization noting that children under
five are the most-at-risk group. With a quarter of glo-
bal grain crops contaminated with dangerous myco-
toxins, and overuse of antibiotics in farming leading
to critical levels of resistance, it’s plain to see why it’s
crucial to address food and feed safety issues.

We have already developed a broad range of tech-

nologies to meet this growing challenge, from high-
capacity drying after harvest, to cleaning and optical
sorting solutions that address contamination of the
grain crop, and from there to processing and pack-
aging. We continue to explore means to harness the
immense opportunities offered by digitalization and
cloud solutions to enable far greater traceability and
transparency throughout the production process.

Seamless traceability allows customers to track every pro-

cess step from field to fork and determine the exact time,
location, and ingredients affected in case of any contam-
ination. With heightened food and feed safety regulations
and the rise of the empowered consumer wanting full trans-
parency about what they buy, food and feed processors
must be enabled to collect this high-quality track-and-trace
data along the entire supply chain. Bühler’s digital and auto-
mation solutions make this possible.

In 2017, we launched a new food alert system, which takes

food safety information from across the globe and with data
analytics distills it into a seamless, easy-to-use tailored solu-
tion that gives customers instant, vital information to enable
them to make timely and effective responses to food safety
risks. Quick understanding of a potential risk could mean
the difference between commercial inconvenience and rep-
utational disaster. Our Leybold Optics PAK and PAK T series
have improved food safety in the packaging industry, with a
 OUR BUSINESS
Bühler Annual Report 2017
39

Food and feed safety

We are continuously improving our solutions
for the production of safe foods. In 2017, 34%
of our R&D projects focused on the topic, and
we launched a digital food safety alert system.

thin coating film providing an effective barrier against gases,

moisture, odors, and microorganisms, while the Choco-
Botic solution has reinvented chocolate lines with fewer
stations and components, more hygienic design, and
far greater ease of cleaning. Other recent innovations
include the PolyFlake flaking mill, which offers signifi-
cantly higher standards of hygiene, and the Sortex E
BioVision for removing foreign objects from the pro-
cessing line.

We are also committed to raising awareness and de-

veloping skills through extensive training and educa-
tion with a variety of tailored food safety courses for
our customers. Bühler also applies these principles
in-house: nearly 1,900 employees have participated
in our training program to learn about food hazards
and hygienic product design, and get an entire over-
view of food safety from the point of harvest to the
end consumer.

Nutrition
With an estimated 840 million people suffering from
hunger and one-third of the developing world’s popula-
tion experiencing micronutrient deficiencies, it has never
been more obvious that our global nutrition system has
become unsustainable. At the same time, obesity is placing
a huge burden on the health systems of the industrialized
–  and, increasingly, the developing – world, while popula-
tion growth means that by 2050 we’ll need an additional
265 million tonnes of protein to feed more than 9 billion
people. No single company can fully address these issues;
however, we are in a unique position to make a real differ-
ence, because food produced using our technologies serves
more than 2 billion people every day.

Bühler takes a collaborative approach to developing innova-

tions, pushing research to new levels, and investigating new
methods and materials research further with our in-house
experts, customers, and partners. To address the need for
alternative, sustainable protein sources, solutions will need
to be found, and we are exploring alternatives to turn these
significant challenges into business opportunities.
40
Nutrition
In 2017 we exceeded our 2020 target of
ensuring that 20% of our food-relevant R&D
projects would focus on improving nutrition
by 3%. This is just the beginning.
Food fortification is a vital tool in the fight against malnutrition.
In 2017 Bühler supplied more than 1,000 microfeeders to
local mills and food factories in Pakistan under the lead of
the UK-based Food Fortification Programme. It is helping to
tackle the high levels of child stunting and malnutrition in the
region by adding vitamins and minerals to foods. Around half
of Pakistan’s mills will soon be equipped with these solutions.
With its 2017 partnership with Protix, one of the world’s
leading insect production companies, Bühler will drive the
industrial production of animal feed from insects. Insects
are reared on food waste, which they efficiently turn into
protein. It’s a sustainable, virtuous cycle, as they are the pre-
ferred food source for many animals and their by-products
become plant fertilizer. The company has already achieved
a milestone with the first order for the largest industrial-
scale insect processing plant in Europe, which is expected
to be fully operational and leading the way in this rapidly
developing field by the second half of 2018. Longer-term,
Bühler is looking at algae as another potential protein solu-
tion. The company supports producers efforts to bring the
safest, most nutritious foods to the market. Bühler is also
collaborating with its partners and customers to help cut
sugar and fat content.
The latter are one of the increasingly popular alternatives
used by our customers to provide high-protein, high-fiber
meat substitutes, while texturized vegetable proteins are
becoming increasingly important alternatives for consumers
looking to reduce their meat intake. Known as textrudates,
these are made from vegetable raw materials using a cook-
ing extrusion process. Bühler has long been at the forefront
of producing dry – and now wet – textrudates as meat alter-
natives and is expanding its research. Through collaboration
with ETH Zurich (Swiss Federal Institute of Techology), a
study has shown that bean isolate, wheat gluten, and sun-
flower seeds are also promising alternatives.
Energy and waste reduction
Our goal is to reduce energy and water
consumption, carbon emissions, and waste by
30% by 2020. In 2017, we introduced 50 new
products and technologies that do just that.
Energy and waste reduction
Improved energy efficiency isn’t just good for the environ-
ment – it’s good for business too. With energy use account-
ing for anywhere up to 10% of a company’s total costs, any
savings translate directly into better margins. Bühler wants
to reduce energy consumption and waste at customer sites
and its own by 30% over the next three years, and is con-
tinuing to develop machines and partnerships that make a
significant contribution to tackling some of the world’s most
pressing ecological issues.
Sortex A ColorVision and Sortex E PolyVision enable re-
cyclers to sort out different types of plastics that arrive at
their sites and produce food-bottle-grade PET flakes at the
highest yield in the market. Our new Tubex hopper scale
is helping to cut energy costs by more than 95% with an
innovative drive and control system that stores energy be-
tween driving cycles. Alongside this dramatic saving, cus-
tomers also benefit from easy operation, accurate weigh-
ing, and minimal maintenance. Among other innovations
that are slashing energy consumption are the JetMix flour
hydration method and Solano roasting machine, both of
which reduce energy use by up to 30%. Bühler’s Prime
Masa process for manufacturing Nixtamal corn flour em-
ploys steam technology to use 90% less water, while offer-
ing a higher yield and eliminating wastewater during the
production process without compromising flavor or texture.
And the Ecothermatik, a solution for long-cut pasta drying,
optimizes thermal energy use to combine low energy con-
sumption with top product quality.
A key part of our drive to help create a more sustainable
world is a constant commitment to exchanging knowledge
and ideas. Bühler is a Diamond Sponsor of MassChallenge,
the world’s largest start-up accelerator, and we work closely
with Partners in Food Solutions to support food processing
entrepreneurs in Africa.

Digitalization
Digital solutions will help us – and our cus-
tomers – improve quality, reduce waste,
energy, and downtime. We currently have
over 50 digital services in development.
Digitalization
The opportunities offered by digitalization enable us to help
customers reach new levels of productivity. Digital solutions
can help customers cut their energy use and drive down
their carbon footprint while also achieving significant cost
savings via improved quality, increased differentiation, and
reduced downtime, among others. Machines today no lon-
ger “merely” produce goods, but also produce valuable data
that can revolutionize business. We view digitalization as an
enabler for positive progress. With our profound machine
and process knowledge, we can offer digital solutions to our
customers that go beyond machinery.
Among the wide range of digital innovations we’ve launched
in 2017 is TotalSense, which uses digital technology to en-
able rice producers to analyze their yield whenever they
need to and get a detailed report anywhere in just a few
minutes. The purely digital solution is portable, low-cost, and
a perfect example of Bühler’s approach to digitalization.
At Networking Days @ Interpack 2017, Bühler launched sev-
eral digital innovations, including ChocoGenius – an any-
time, anywhere web-based training service to train choco-
late line operators. We also released the Smart Chocolate
Factory, a self-optimizing digital service for dosing, mixing,
refining, and conching. It’s a digital factory that helps cus-
tomers achieve a 10% reduction in operating costs and a
10% increase in performance. Another example is AeroPro
Moisture Control, which enables clients to closely moni-
tor moisture content in their production processes to ensure
optimum end results via sensor technology, the Internet of
Things (IoT), and cloud-based storage architecture. The in-
telligent drying solution with real-time, continuous moisture
management improves quality and cuts waste. Through this
intelligent moisture control, every 1% of moisture gain in a
typical feed dryer operation is equivalent to a annual saving
of USD 300,000.
OUR BUSINESS
Bühler Annual Report 2017
41
Mobility
We contribute to making cars lighter with
our die-casting systems, and electric vehicles
more energy efficient with our new electrode
slurry solution.
IoT technology enables clients to remotely access critical
production data practically in real time, and so make cru-
cial decisions about machine performance, tolerance levels,
and sorting criteria to ensure optimum production. This year
saw Bühler launch AnywarePro, which is designed to take
complex analysis data produced by an optical sorter and
transmit it to whoever needs it, anywhere in the world. That
key data provides information to optimize production. It also
allows engineers to diagnose and solve system malfunctions
remotely, dramatically cutting wasteful downtime.
Mobility
Nowhere are the sustainability pressures facing the planet
more acutely visible than on our roads. As populations and
wealth grow in emerging economies, so does the demand
for cars. Transport now accounts for 13% of all greenhouse
gas emissions, 75% of which comes from road traffic. As
demand increases, so does the need for clean, efficient mo-
bility solutions, with China now the world’s fastest-growing
market for electric cars. In 2017 around 800,000 electric
vehicles were sold there, a number that’s expected to reach
5 million by 2020, with global sales predicted to reach the
60 million mark a decade later.
Bühler is playing a key role, having developed a unique
continuous mixing process to produce a key component in
batteries: the electrode slurry for the positive and negative
poles in the battery. With this, the industry is able to enhance
the production of batteries and their energy density. With the
opening of the Lishen plant in Suzhou, Bühler was able to
demonstrate the industrial scalability of this new technology.
Our traditional die-casting methods are also in high demand,
as they enable the production of lightweight engine blocks
and structural components, which cut fuel consumption and
carbon emissions. With a 10% reduction in weight delivering
as much as an 8% improvement in fuel efficiency, the bene-
fits for the planet and the bottom line are immense.
42
INNOVATIONS FOR
A BETTER WORLD
Bühler continues to lead the way in harnessing
the potential of new technologies.
Innovation has been at the very center of Bühler’s activities
for more than 150 years, from the earliest days of mecha-
nized food production to today’s ever-evolving digital world.
The company invests as much as 5% of its turnover in re-
search and development each year, and works in close col-
laboration with customers, suppliers, start-ups, and leading
academic institutions to continually drive innovation and
help meet its ambitious sustainability goals.
Key elements of this are the company’s Innovation Chal-
lenges and Networking Days, which allow extensive collab-
oration with scientists, staff, industry partners, students, and
start-ups, all of whom are able to bring fresh perspectives to
help turn today’s challenges into tomorrow’s opportunities.
The 2017 Networking Days brought together 750 people to
discuss sustainability and nutrition. This year, Bühler will hold
its first Networking Days event dedicated to Advanced Ma-
terials, with a focus on the lithium-ion battery business and
how it can make mobility more sustainable.
Collaboration is key
One of the key drivers of Bühler’s ongoing innovation is its
close working relationship with a whole range of networks.
Among the major institutions Bühler collaborates with are
ETH Zurich (Swiss Federal Institute of Technology), EPFL
(École Polytechnique Fédérale de Lausanne), University
College London, Imperial College London, the University of
Digital value chain
Digitalization drives transparency, efficiency, and performance
across the entire food value chain.
= Bühler IoT solutions
Agriculture Storage Transportation
St. Gallen (HSG), Kansas State University, and the UNITECH
university network. Its strategic partnerships include the
EIT Food Accelerator Network, Partners in Food Solutions,
Africa Improved Foods, and leading start-up accelerator
MassChallenge. Alumni of the latter alone have so far raised
more than USD 2 billion, generated over USD 900 million
in revenue, and created more than 65,000 jobs. In 2017,
Bühler began working with the Swiss Data Science Center,
a joint venture between EPFL and ETH Zurich, which accel-
erates the adoption of data science and machine-learning
techniques in the industrial sector.
Another successful collaboration was the founding of the
joint venture Bühler Insect Technology Solutions together
with Protix, a leading insect production company based
in the Netherlands, to address the world’s growing protein
gap with a sustainable protein source − insects. It’s an ideal
partnership as Bühler provides its expertise in developing
scalable, cost-effective industrial processing solutions for
food and feed, and Protix has 10 years of experience in the
field of insect breeding, rearing, and processing.
The opening of a new production, research, and develop-
ment center in Changzhou, China, was another highlight. It
specializes in processing equipment and complete plants
for animal and aqua feed and pet food. Its large application
center is dedicated to animal nutrition.
Primary processing Secondary processing Retailer Consumer

The CUBIC innovation campus will be a space for people to meet and create solutions for a better world.
Working side by side
The company is investing CHF 50 million in the CUBIC
innovation campus at its Uzwil headquarters, where the
industry’s smartest minds will come together in an open
atmosphere in state-of-the-art application labs to create
innovations for a better world. The expanded and modern-
ized Bakery Innovation Center is where the Bühler knowl-
edge gained from decades in the industry is applied to a
whole range of creative, customized solutions.
The best facilities need the best staff, and each year Bühler
trains nearly 600 apprentices in Switzerland, Germany,
China, India, and the US, while the ClassUnlimited teach-
ing concept allows apprentices to spend months gaining
valuable experience abroad while still taking classes via live
OUR BUSINESS
Bühler Annual Report 2017
43
camera links. Bühler’s African Milling School provides peer-
less training for the continent’s next generation of millers,
equipping them with the knowledge to process grain into
high-value products.
Challenging times
The world is facing unprecedented challenges. Bühler part-
nered with UNITECH to invite young people to participate
in the Carbon Footprint Challenge 2017, an ideas forum for
creating a more sustainable future. This generated more than
a hundred proposals, and the teams behind the best were
invited to Uzwil to work on their ideas and pitch them to
partner companies. The winners, Counting Carbon, from
Trinity College Dublin, have their sights on changing con-
sumer behavior with transparent labeling that features
44
carbon footprint information. They are now working in the
MassChallenge accelerator and already have a number of
big-name companies behind them.
Bühler is center stage in the rapidly growing e-mobility
marketplace and its drive to cut emissions and improve air
quality. The sector is experiencing phenomenal growth, and
Bühler’s unique mixing process for electrode slurries is dra-
matically boosting the quality of lithium-ion batteries and al-
lowing vehicles to travel up to a third farther than those with
conventional batteries. In 2017 Bühler also commissioned
a new plant with four industrial-scale production lines for
battery slurry for Lishen, one of the largest battery manu-
facturers in China.
Digital futures
The key driver of innovation across all sectors, however, is
digitalization. Bühler has been at the forefront, establishing
the Urs Bühler Innovation Fund three years ago to support
development in key areas such as the Internet of Things
(IoT). The company sees digitalization as a key enabler
and genuine driver of value. When harnessed properly, the
potential of digital innovations is immense, not just in drama-
tically cutting waste, downtime, operating costs, and energy
use, but also improving quality, safety, and productivity, and
boosting the bottom line.
In just three years from now, it’s estimated that 28 billion
“things” will be connected to the Internet, with sensors mon-
itoring and tracking data sent to the cloud to be converted
into “smart” information, then transferred back to become
real-time action. It’s in this intelligent gathering and leverag-
ing of data that the true value of IoT lies.
The easy availability of low-cost sensors, low-cost data
transfer, and unlimited cloud storage are potential game
changers for food industry efficiency, for example, with
the ability to revolutionize monitoring and optimization pro-
cesses, improve productivity and transparency, and create
Innovation
In 2017, we achieved our 2020
sustainability target of running 50% of
R&D projects in collaboration with our
business partners.
a far more sustainable industry. Real-time monitoring and
control mean that even the most modest benefits can ac-
cumulate into substantial gains over the course of a year.
In terms of reducing unplanned downtime, machine-learning
algorithms can predict where and when failures will occur,
allowing customers to schedule maintenance activities to
avoid any interruption to production schedules.
Bühler never loses sight of the fact that technology is an
enabler rather than a solution in itself, and will always work
closely with customers to develop exactly the right solution.
Complete commitment
Both Bühler’s management and board are fully committed
to driving a digitalization strategy that utilizes the immense
business value potential of IoT technology. The technology
is developing at an exponential rate.
One of Bühler’s recent groundbreaking digital solutions that
harnesses IoT technology to offer revolutionary user benefits
is the TotalSense rice analyzer. This allows users to virtually
send grains to the cloud for a full quality analysis in under
two minutes, meaning producers can analyze their yield any-
where and at any time. All users need to do is place samples
in a special tool and upload a picture via smartphone to
receive a detailed report. TotalSense came out of a Bühler
Challenge organized in partnership with UNITECH.
Then there’s AnywarePro, a diagnostic tool that sorts com-
plex production analysis data and again transmits it to the
cloud for access by anyone with permission on their phone,
tablet, or computer. Initially introduced for rice mills, it is now
being rolled out to any food or non-food production lines
using an optical sorter, taking all the complex analysis data
and providing feedback to a customized dashboard.
Cloud-based data analytics solution, myAssist, helps to
streamline milling production processes and maximize pro-
ductivity, while integrated robotic technology plays a central

Digital solutions, implemented correctly, can reduce waste, energy, and downtime; improve quality; and boost the bottom line.
role in ChocoBotic, which is reinventing traditional moulding
methods with more hygienically designed lines that are free
of chains and their lubricants, and have fewer stations and
components. The increased flexibility offers customers ad-
justable process times, makes cleaning simpler, and allows
for easily extended modules.
There’s also Smart Chocolate Factory, a self-optimizing dig-
ital service for dosing, mixing, refining, and conching lines.
This “digital factory” is able to boost a line’s quality and
performance, giving customers both a 10% reduction in
operating costs and a 10% increase in performance.
Bühler’s state-of-the art food safety alert system is able to
apply data analytics to an immense amount of worldwide
sources to provide the most accurate, up-to-date information
available. Data searches are made through an intuitive and
easily navigated dashboard, with analysis available by prod-
uct, country, time period, data source, or risk type, reducing
a complex process that may once have taken hours or even
days to a matter of moments.
OUR BUSINESS
Bühler Annual Report 2017
45
The power of networks
Digitalization technology is developing at an extraordinary
pace, and those organizations that fail to fully embrace the
potential will inevitably be left behind. Digitalization is an on-
going – and highly complex – journey, which is why a broad
network of strong partnerships with other industries, aca-
demia, and start-ups is vital to staying ahead of the game
and maximizing the opportunities. Bühler thinks far beyond
the realm of simple machine solutions to create genuine val-
ue for its customers.
The digitalized world is very much the “new normal”, and
Bühler has positioned itself centerstage. This, combined with
its profound process expertise and knowledge gained from
decades of experience, makes it uniquely placed to offer its
customers a truly competitive advantage.
With 150 years of process technology behind it, an expert
team of in-house data analysis scientists, and a truly global
physical infrastructure, Bühler is able to offer unrivaled digi-
talization possibilities. It’s time to explore the future together.
46
OUR EMPLOYEES
A key element of our sustainability
approach is the promotion and
training of our staff.
At Bühler, we recognize it is our employees that make us
the success that we are. It is their innovation and creativity
that give life to future products, and it is their entrepreneur-
ship and corporate insight that bring those products to mar-
ket. But no company can just hope these skills will emerge.
We all need support to become the best we can be, and
at Bühler, we believe it is our role to help our colleagues
achieve just that with training and development.
The kind of training we provide depends on an indivi-
dual’s ambition and career stage. Which is why Bühler en-
sures it delivers tailored career development to the right
people when they will benefit most. One such initiative,
which we are proud to be running for the first time this
year, is the Bühler Excelerator. One of Bühler’s great as-
sets is the breadth of its global reach, with thousands of
The 2017 Bühler apprentices from Switzerland.
employees spread across different continents. It gives us
access to some of the best talents the world has to offer.
Through Excelerator, Bühler is preparing for future chal-
lenges by nurturing these talents into our next generation
of leaders. Each year, employees are nominated for a two-
day assessment program from which 20 candidates are
selected. Each successful candidate receives their own
unique development plan to build on strengths and galva-
nize leadership qualities.
Developing leadership
Successful companies need strength. The Master of Bühler
Management (MBM) program ensures that it is not just our
leaders, but also our future senior managers who are well
equipped with the entrepreneurial agility, corporate under-
standing, and creativity to ensure Bühler’s ongoing success.

Mike Muriithi, Service Automation Engineer.
Helmut Heiken, Service Engineer.
First launched in 2012, the MBM involves the selection of
around 30 candidates from a pool of nominees around
the globe. Drawn from across Bühler’s regions and busi-
ness portfolios, they will have demonstrated the drive to
win and a curiosity to learn. The 12-month program in-
volves both virtual learning and active classroom partici-
pation. Candidates attend week-long themed training pro-
grams at different international locations, covering subjects
such as innovation, leadership, and entrepreneurship. The
participants are required to identify and develop potential
business opportunities, with the course culminating in a proj-
ect presentation to the Bühler Executive Board. The inter-
national program helps candidates develop cross-boundary
networks while appreciating the strength that comes with
cultural diversity.
OUR BUSINESS
Bühler Annual Report 2017
47
Bianca Sissing, Lead Project Engineer.
Alfred Zou, Team Leader Engineering.
Bühler has been a pioneer in vocational training for over
100 years. In 1915 Albert Bürkler began his training in me-
chanics as the first apprentice. Since then, approximately
7,700 young men and women have completed an appren-
ticeship at Bühler.
Today, about 1,000 former apprentices are still working with
the company. Bühler has managed to keep the retention rate
steady at around 73% over the years. For the past decade it
has been applying the highly successful Swiss apprentice-
ship model across the globe. About 600 apprentices enroll
in 12 different vocational courses at Bühler around the world
each year, 292 of them in Switzerland. Our sites in Germany,
Austria, China, India, Brazil, the US, and South Africa like-
wise provide vocational training.
48

Bühler training is based on the Swiss system of dual ed-

ucation, combining work in the classroom with hands-on
practical experience in a Bühler plant. Apprentices receive a
salary and social benefits, and their training needs covered.
It means that graduates start their careers prepared and
debt-free, while Bühler benefits from hiring an already highly
skilled workforce.

The next generation of managers

A fourth and equally important development pipeline is
aimed at the smartest and brightest leaving business
schools and universities. The Bühler Management Trainee
Program takes seven trainees a year and fast-tracks them
through the Bühler corporate experience on a path to senior
management and even leadership. They work in different
plants, are introduced to clients, and learn about all aspects
of entrepreneurship. Over the three-year program they are
provided with the broadest insight into the company from the
shop floor to the highest decision-making arenas. For a year
students will work as assistants to the Executive Board or
to a regional head, gaining a unique insight into the highest
level of corporate decision-making. This is no normal training
program. This is the best a company can offer.

Bühler was voted Switzerland’s Most Attractive Employer

2017 in the products and services category. Each year, the
international recruitment research company Universum
surveys engineering and business students to see which
companies are perceived as the most attractive potential
employers. Bühler topped the field when it comes to what
we produce. We also received Silver in a Best Machine Tool
Employer recruitment survey across Switzerland, Germany,
and Austria.
Equally important is how our own employees judge our per-
formance, as it helps us attract and retain the best talent.
When comparing what we do well to what our staff think
is important that we do well, there is a pleasing fit. When
surveyed, 67% said having exciting products and services
was the most important corporate quality for a company
to have. When staff were asked to rate Bühler’s qualities,
producing exciting products and services was rated our
greatest strength.
These accolades show us that our efforts to maintain the
values we have acquired as a Swiss family-run business
are paying off. Once potential employees get to know about
us, they understand the very special culture we try to gen-
erate, where staff arrive for work each day enthused and
empowered by the opportunities we offer across the globe
to our more than 10,900 employees.

Employees who supported the 2017 Networking Days @ Interpack in Düsseldorf.
An inclusive approach
It is because of that global reach that Bühler has made diver-
sity and inclusion ever-increasing objectives. As a company
with 140 locations around the world, we understand the
strength, creativity, and imagination that a culturally diverse
workforce brings to an international enterprise.
Our training and recruitment programs hire the best can-
didates from around the world, and place importance on
filling management positions with local candidates when-
ever possible. We want to further increase diversity across
OUR BUSINESS
Bühler Annual Report 2017
49
the company in all aspects of what we do. Therefore, we
brought together business groups in 2017 to create road
maps on how we can improve gender balance and inclusion
at all echelons of the company.
All employees have equal rights, and regardless of gender,
origin, nationality, ethnicity, or age, we strive to collaborate
with respect and candor. We want physical disability to be
properly supported, with every new building being disability-
friendly. At Bühler we believe in creating an inclusive culture
so that all talents are allowed to flourish.
50
 THE FUTURE OF MOBILITY
Bühler Annual Report 2017
51

THE FUTURE
OF MOBILITY
The story of humanity is also the story of mobility.
Over the millennia, our species has spread across
the globe, subjecting its living environments to ever-
increasing traffic flows. This development is now
reaching its limits: traffic density, climate change, air
pollution, and accident victims call for safer and more
sustainable mobility solutions. Bühler contributes to
this with its Advanced Materials business.
52

UPWARDLY
mobile
Mobility is a basic
human instinct
“All human activity is prompted by desire,” said the
philosopher Bertrand Russell. He also said some of
these wishes “can never be fully gratified.” One of our
most relentless desires has always been to discover,
explore, and settle in new places, something that has
defined our species since its very beginnings.

What else could explain the Russian town of Oymy-

akon, whose 500 inhabitants live on permanently
frozen ground with 21 hours of darkness a day
during winter, and which once recorded a low of
minus 67°C? Or Dallol in Ethiopia, where settlers
endured annual average temperatures of 34.6°C, the
highest ever recorded for an inhabited location on
earth? Then there’s the Peruvian town of La Rinco-
nada, which sits at a vertigo-inducing 5,130 meters
above sea level, or the island of Tristan Da Cunha,
whose 2,400-kilometer distance from the nearest
inhabited land mass hasn’t stopped 300 people
from making it their home.

No other species has this same drive. And while

we’ve always needed to find natural resources, that
can only explain part of it. It must simply be some-
thing that’s in our genes.
THE FUTURE OF MOBILITY
Bühler Annual Report 2017
53
54

NEW CHALLENGES,
new horizons
The car has transformed
the way we live
The last century saw the car coming in to play a cen-
tral role in our lives and our imaginations, and we went
on to design our towns and cities around it. With its
total number now reaching an estimated 1.2 billion,
the car’s success has revolutionized our world – and
thereby sowed the seeds of the need for change.
So successful has been the car that it’s bringing
the world’s most populated cities to a standstill. The
average driving speed in ultra-congested Mumbai is
now around 8 mph – little more than twice our aver-
age walking speed.

More distressing is the rate of accidents. Global road

traffic deaths now stand at more than 1.25 million
per year, says the World Health Organization, with
almost 90% in low- and middle-income countries.
And the damage doesn’t stop there. Carbon monox-
ide, nitrogen oxides, and particulate matter are just
some of the harmful emissions from car exhausts,
and more than 90% of the world’s population now
lives in places where air quality exceeds safety limits.
With around 3 million deaths a year linked to exposure
to air pollution, clearly it’s time for transformation.

As the population grows, and with it our consump-

tion of precious resources, the race is on to create
sustainable solutions.
THE FUTURE OF MOBILITY
Bühler Annual Report 2017
55
56
 THE FUTURE OF MOBILITY
Bühler Annual Report 2017
57

THE LIGHT
touch
Aluminum die casting for
greener vehicles
By late 2016, car ownership in the world’s most pop-
ulous country had reached a staggering 190 million.
With the average car weighing in at something like
1,500 kg, that’s a total of 285 billion kg in China alone.
That’s a lot of car.

Clearly, the heavier a vehicle is, the more energy it

uses, with just a 10% reduction in weight estimated
to deliver as much as an 8% improvement in fuel
efficiency. Researchers have been exploring the pos-
sibility of replacing heavy steel car parts with plastic
or even wood pulp, but the heaviest part of a car
remains its engine.

Bühler – at the forefront of aluminum die-casting

machinery – is supporting the automotive industry’s
efforts to make cars as light as possible with alumi-
num structural components rather than steel. Today,
the average car contains around 180 kg of alumi-
num, and forecasts say that this will grow to 220 kg
by 2025.
58

FULLY
charged
The rise of the electric car
The world is increasingly looking toward e-mobility
to solve the urgent problem of emissions and danger-
ously poor air quality, and the development of elec-
tric cars is proceeding at a dizzying pace. Charging
points will soon be as familiar a sight on our roads as
gas stations are now.

Tesla aims to have not only ultra fast electric sports

cars but even articulated trucks for sale within a few
short years, and Norway has already set an ambitious
target that 100% of all new cars sold will be electric,
hydrogen, or “plug-in” hybrids by 2025. India, mean-
while, has committed to selling only electric cars to
its vast domestic market just five years after that, and
China wants to see 5 million electric cars on its roads
by 2020.

Electric cars may be low-maintenance, but they need

powerful, state-of-the-art batteries, and in order to
meet this rapidly growing demand, Bühler has devel-
oped a unique process to produce a key component
of batteries: the electrode slurry for the positive and
negative poles in the battery. With this, the industry is
able to enhance the production of batteries and their
energy density.
THE FUTURE OF MOBILITY
Bühler Annual Report 2017
59
60

SELF
determination
Self-driving cars are the future
With the appalling death toll on our roads, and
studies estimating human error to be the primary
cause of all traffic accidents, it seems a logical step
to remove humans from the driving equation.

With other potential benefits, including drastically

reduced emissions, minimized congestion, and the
freeing up of vast areas of land once used for park-
ing spaces, autonomous vehicles have the potential
to fundamentally change our mobility system. They
represent nothing less than a paradigm shift – a move
to a new, truly individualized level of public transport.

A large number of companies are actively devel-

oping self-driving technology, and the autonomous
taxis already tested in Singapore are just the start.
Pittsburgh’s streets have seen driverless Ubers, and
self-driving trucks have even been delivering refriger-
ators in California, albeit with a human observer on
board – for now. Dubai’s ambition to become the
world’s smartest city, meanwhile, includes a target
to have self-driving vehicles account for a quarter of
all its journeys by 2030.

These new vehicles demand sophisticated onboard

cameras, sensors, head-up displays, lightweight con-
struction, and long-life batteries – all of which are part
of Bühler’s solution portfolio.
THE FUTURE OF MOBILITY
Bühler Annual Report 2017
61

© Rinspeed AG
62
 THE FUTURE OF MOBILITY
Bühler Annual Report 2017
63

IN FULL
flight
The move from the ground
to the sky
What was once the preserve of science fiction is fast
on its way to becoming a reality, with a number of
companies now working on developing vehicles that
can take to the air.

Dubai has already tested an automated flying taxi

service that it hopes to have operational in the next
five years, and Chinese multinational Geely – par-
ent company of Volvo – is also investing in flying car
technology. Flying taxis and drones benefit from
Bühler’s process technologies for the production of
high-end batteries, sensors, cameras, and more.

One of the main challenges for aspiring flying car-

makers is mastering vertical takeoff and landing
technology, which does away with the need for
a runway and could make traffic jams a thing of
the past – on the ground, at least. The fully electric,
autonomous Volocopter is designed to transform
urban mobility by relieving the strain of road traffic.

So whether it’s electric cars, self-driving cars, or fly-

ing cars, one thing is certain – we’re entering a new
dimension in the quest to make mobility more sustain-
able. The next few years are going to see a complete
and dramatic shift in our perceptions of transport
and travel. That basic human instinct to discover,
develop, and explore remains as powerful as ever.

It’s going to be quite a journey.

© Volocopter
64
 PARTNERSHIP WITH CUSTOMERS
Bühler Annual Report 2017
65

PARTNERSHIP
WITH CUSTOMERS
“Engineering Customer Success” – this is the
level of performance that Bühler promises its
customers. In four examples, we show how
we honor this promise to help our customers
change the world for the better.
66
 PARTNERSHIP WITH CUSTOMERS
Bühler Annual Report 2017
67

BREAKTHROUGH
on the sixth attempt
LISHEN
Tianjin, China
It’s 2014: Jesse Wang wipes a bead of sweat
from his face and readjusts his breathing mask.
He knows that now is not the time to make
mistakes. He joined Bühler three years ago, in
July. He didn’t know much about batteries
when he started, and he never thought that he
would become an expert working tirelessly to
develop a new electrode slurry. A process that
would be so unique that his customer, Yi Liu,
would later say: “This solution from Bühler will
completely change the battery industry. It is a
historic moment, a revolution.”

YI LIU
Lishen Manager of the
Engineering Department
68

Just after starting in this position, Wang received the

order to expand the battery laboratory at the Bühler site in
Wuxi. The talks with the first customer were so promising that
Bühler quickly decided to make this preliminary investment.
Wang was responsible for the battery industry in China, sup-
ported by his colleagues at the Swiss headquarters who had
originally developed the idea for the new process.
But now he is alone in the battery lab, already working on
the sixth trial to make the electrode slurry. So far, the tests
have not produced the sought-after results. Would he meet
the high requirements his customer Lishen was looking for
this time?

Batteries are the guiding factor

Batteries keep our world turning. They are the small energy
stores that drive our lives and make them easier. More and
more cars are being entirely powered by batteries – partic-
ularly in China. In 2017, around 800,000 electric cars were
sold in the country; that’s nearly half the total global produc-
tion. E-mobility is heavily supported and subsidized by the
Chinese government. It is an effective measure against air
pollution and crucial to China’s strategy of becoming a high-
tech country. Financial support is expected to run out by the
end of 2020 though. By that point at the latest, car batteries
will have to be powerful enough to be able to survive in the
free market. Reason enough for battery manufacturers such
as Lishen to invest significantly in research and development
of new processes to produce batteries.
Founded in 1997, Lishen today employs over 9,000 peo-
ple. Its list of customers reads like a “who’s who” of the
electronics and entertainment industry: Apple, Samsung,
Dell, HP, Huawei, and Lenovo are just some of the illustrious
names. The Chinese battery manufacturer has production
plants in Beijing, Qingdao, Suzhou, Wuhan, Shenzhen, and
Mianyang and is one of the top-five battery producers in
China. Lishen is planning to increase yearly output from
around 10 GWh currently to 40 GWh by 2021 – which is
equivalent to an output of around 800,000 car batteries.

It’s all about the slurry “This order has allowed us to

Wang applies the electrode slurry carefully onto a carrier film.
It is black and slightly viscous in consistency. He is using
a film applicator to apply the layer as thinly as possible on
the film – this should be no thicker than 100 micrometers.
Afterward, the dried electrode goes to Lishen and to his
main contact, Liu, the engineer who is responsible on the
customer side.
The cooperation with Lishen is extremely close. The two
companies work well together: as the client, Lishen brings its
expertise and knowledge of batteries to the table. In return,
Bühler brings knowledge of processes and years of expe-
rience in continuous mixing: a unique mixing process never
used in the battery industry before until now.
The electrode slurry is essential for the power density
and energy density of a battery, that is to say, for the output
and energy per battery volume. Traditionally, slurries are pro-
duced in batches in large vessels. These conventional plants
are huge and expensive. The process is also very inflexible:
if a batch does not meet the requirements, it is either dis-
posed of or used for inferior products. While the production
send a clear signal to the industry:
the new mixing process is ready
for industrial use.”
JESSE WANG
Bühler Engineer
of large batches takes several hours, the production in the
new process developed by Bühler takes only a few minutes.
Using a rotating twin-shaft mixer, the necessary process
steps – such as mixing, homogenizing, dispersing, and de-
gassing – are combined in a single, continuously running unit.
Thanks to this continuous mixing process, the manufac-
turer is able to intervene at any given moment should the
results not meet the requirements. Ultimately, what counts
is that the improved mixing process significantly increases
battery performance. It also reduces the investment costs,

and the energy costs are much lower using this new process
in comparison to using conventional production methods.
Lastly, the space requirements of the new process are con-
siderably lower, and fewer rejects are produced. Something
that has also impressed Lishen. Abandoning the classic
batch processing of electrode slurry in favor of a new con-
tinuous process benefits the customer. But will Bühler be
successful in developing the industrial-scale process soon
enough for Lishen’s new plant?
Each trial takes several months. First, the Bühler engi-
neers develop and validate the optimum slurry composition
based on Lishen specifications. Once the Bühler team is
satisfied with the test results, they produce 50 liters using
the new formula, which is then sent to Lishen. Liu, currently
a leading engineer from the process department at Lishen,
then takes over. The Lishen team uses the new electrode
slurry to create battery prototypes and conducts extensive
tests. Because this is no ordinary electrode slurry. Bühler
has revolutionized the battery-making process.
PARTNERSHIP WITH CUSTOMERS
Bühler Annual Report 2017
69
The viscosity of the electrode slurry took six years to perfect.
Will the sixth attempt pay off?
Wang is in the analysis laboratory. In addition to the many
other parameters, for this sixth test he has further adjusted
the concentration of the bonding agent. The test results are
in. He checks the viscosity and the distribution of particles
in the electrode slurry as well as the electrical conductivity
of the electrode; together these determine the power density
and energy density of the battery. The viscosity of the slurry
was particularly problematic in the last series of tests. New
raw materials and new parameter settings led to the slurry
being too thick, so that it could not be optimally used. “Thick
and viscous like toothpaste,” Wang recollects.
The latest values convince the engineer. The test results
meet Liu’s requirements. But it will be several months before
Lishen confirms the results. It’s a long wait before Wang
knows whether the client will want to perform more trials.
But time is of the essence, because Lishen’s competitors
are also working on innovations, and the Bühler process is
the first in a series of steps in the complicated process of
70
The rotating twin-shaft mixer is the heart of Bühler’s continuous process to produce electrode slurry.
developing batteries. Should the Bühler engineers miss their
goal, it endangers the whole manufacturing process and the
new plants Lishen is planning in Suzhou.
The production of batteries takes place in several phases.
It begins with preparing the various raw materials that the
battery manufacturers usually buy from chemical companies.
These are then processed into anode and cathode slurries
in a mixing process.
This is where Bühler’s innovative continuous mixing pro-
cess comes in; however, Bühler solutions are also used in
the upstream process to ensure correct dosing of raw materi-
als. After the mixing process, the slurries are applied to films.
These are then cut to size and rolled up into battery cells. In
the next step, the manufacturers charge and discharge the
cells to ensure the best possible battery performance. Final-
ly, the cells are packaged in battery packs, which are then
used in cars. A single electric car battery consists of several
hundred to several thousand battery cells.
Everything hinges on this one call
Months later, Wang’s mobile phone rings. He takes the call.
Liu is on the other end of the line. The Lishen project manager,
who is usually rather restrained, is delighted: the results of
the sixth trial are impressive. The viscosity problem has been
solved, and the power density and energy density of the
batteries have significantly increased during the test series.
Wang can hardly believe it. He only trusts the results after
conducting the tests again. But in fact, Wang and his team
have done it. The electrode slurry was indeed of the required
quality. Things now start picking up pace, and Lishen signs a
contract for the delivery of a pilot plant to their factory in Tian-
jin. It is August 2014, three years after Wang started working
for Bühler. The successful trials that eventually led to ordering
the first pilot plant were the beginning of a mutual success
story for Lishen and Bühler. Both partners agreed the deliv-
ery of 10 production lines on an industrial scale. Four will be
opened in the new Suzhou factory, two in Tianjin, where the
pilot plant is located, and four more at the Qingdao location.
“This solution from Bühler will
completely change the battery
industry. It is a historic moment,
a revolution.”
YI LIU
Lishen Engineer
Altogether, the lines have a yearly output of up to
10 GW/h. Enough to produce more than 200,000 car bat-
teries per year.
“This order allowed us to send a clear signal to the in-
dustry: the new mixing process is ready for industrial use;
the benefits can be seen directly in an industrial context. So
it did not take long for additional orders to roll in. Another
customer has already ordered four production lines, and we
are in talks with further customers,” Wang explains.

Bühler engineer Jesse Wang was instrumental in revolutionizing the battery-making process.
A milestone for the battery industry
Wang ties his tie. It is July 20, 2017. Today is a historic
moment, the grand opening of the Lishen plant in Suzhou in
front of hundreds of spectators. He has already visited the
plant and knows just how impressive it is: stretching over
600 by 50 meters, the plant contains all the processing steps
for car batteries, from the raw materials and the electrode
slurry right up to the finished electric car battery. Everyone
from the battery industry will get together tonight. Represen-
tatives of the local and regional government will show up. A
great success after six years of work in the lab.
It has grown dark in Suzhou. The audience listens with
bated breath to the statements made by Qin Xingcai, the
President of Lishen. The company plans to be at the fore-
front of the Chinese battery market with the new plant. “This
PARTNERSHIP WITH CUSTOMERS
Bühler Annual Report 2017
71
new factory of ours is producing a new generation of bat-
teries. This 30% increase in energy density means we have
achieved a quantum leap,” Liu and Wang nod to each other
with appreciation. Lishen Suzhou honors Bühler with the
Best Equipment Supplier award.
“Six years of joint research and development have paid
off. Six years of strong cooperation between Lishen and
Bühler colleagues in China and Switzerland. This award and
10 production lines at Lishen are visible proof of this,” Wang
says with pride. And Liu adds: “Bühler kept the promise they
made. Bühler is our long-term partner; we tackle new pro-
jects together.” Since then, Liu has been appointed Manager
of the Engineering Department at Lishen. Not least because
of the successful project with Bühler, and a milestone for the
battery industry.
72
 PARTNERSHIP WITH CUSTOMERS
Bühler Annual Report 2017
73

FOODS FOR
a brighter future
CITY GROUP AND AKIJ
Dhaka, Bangladesh
Poverty, malnutrition, infectious diseases. The
common perception so many people have of
Bangladesh has been out of date for some time.
The country has been experiencing an eco-
nomic upturn for well over two decades, which
is also evident in the indigenous food industry.
More food, better, safer, and at lower prices is
the motto. Together with the producers City
Group and Akij, Bühler is undoubtedly involved
in the positive development of food security for
the country.
74

AKIJ GROUP
Akij Group is a conglomerate that grew out of
“Our products are for human the jute trading business. Founded by Sheikh Akij
Uddin in the latter part of the 1940s, the com-
consumption, and food safety pany now operates in the textile, cement, ceram-
is indeed the most important ics, packaging, plastic, and steel industries, and
is the country’s largest tobacco producer. In the
thing to take into consideration food sector, Akij produces mineral water, milk, soft
drinks, snacks, wheat flour, and bakery products.
when designing a product.” With Bühler, Akij set up a flour mill close to Dha-
ka. The Akij Group includes 26 companies and has
SHEIKH BASHIR UDDIN more than 50,000 employees. The destiny of the
Owner and Managing Director of Akij Flour Mills Ltd. company is now in the hands of the founder’s son,
Sheikh Bashir Uddin.

Sheikh Bashir Uddin, owner of Akij Flour Mills Ltd., employs 50,000 people.

Dry mops and dust cloths are in constant use. Bharati
is one of dozens of cleaning women who ensure a pristine
production environment in the Akij flour mill. She wears
colorful attire, the salwar kameez, consisting of green trou-
sers, a matching long top, and a head scarf. The colors
glow in the glossy white, immaculate mill. No dust particles
are found here. And this in Bangladesh, where, especially in
the late monsoon season, the dust from the road sticks to
clothing moist from the heat.
Cleanliness is the watchword in industrial food pro-
duction, says Sheikh Bashir Uddin, owner and Managing
Director of Akij Flour Mills Ltd.: “I don’t even know who could
say food safety is not important. Our products are for human
consumption, and food safety is indeed the most import-
ant thing to take into consideration when designing a prod-
uct.” Akij’s business is booming. In 70 years, the company
Zahid Abu, Senior Engineer Bühler Dhaka and Galibur Rahman, Head Miller Akij Flour Mills Ltd. inspect the newly-built production site.
PARTNERSHIP WITH CUSTOMERS
Bühler Annual Report 2017
75
has grown from a small jute-trading operation to one of the
biggest corporate conglomerates in Bangladesh. Akij has
also engaged in food and drink production for more than
10 years. Cooperation with Bühler began in 2014, when
Bashir decided to build a mill. Since then, two production
lines have been developed for traditional flour, with daily ca-
pacities of 500 and 550 metric tons, respectively, as well as
an Atta mill with a capacity of 150 metric tons per day.
The project also includes a flour storage system with a
capacity of 3,200 metric tons. “Akij has invested in our latest
equipment and technology, and therefore has the most
state-of-the-art mill in the whole of South Asia,” says Marcel
Züst, Senior Advisor at Bühler for the region.
Industrial food production in Bangladesh has become
more important in recent years. After all, production is
the country’s greatest hope. It is thanks to industry that
76

CITY GROUP
The City Group conglomerate has been in food
production since the 1970s. Once Fazlur Rahman’s
first mustard mill project was successful, the founder
began to diversify. Other lines of business, such as
packaging, energy, and steel, were added. The co- “The government has set itself
operation with Bühler began in 1997, with the con-
struction of the first mill. Rahman soon expanded the goal of making Bangladesh
his business to include more mills, two pelleting a middle-income country by
plants for poultry feed, and a production plant for
fish feed. Bühler also supplied machines for crush- 2020. In order to achieve this,
ing soybeans, which are integrated into the pro-
cess of the soybean oil extraction plant supplied the private sector must invest in
by Andreotti. City Group now has 26 companies, production – we need more
which together employ over 10,000 people. Rahman
is still the head of the company as Chairman and rice, flour, and cooking oil.”
has named his daughter Shampa as his successor.
FAZLUR RAHMAN
Founder and Chairman of City Group

City Group’s Shampa Rahman and her father, Fazlur Rahman, have counted on the partnership with Bühler for over 20 years.

Local markets offer a bigger variety of foodstuffs thanks to increased industrial production.
Bangladesh has been able to cross the poverty thresh-
old as defined by the Human Development Index of
the United Nations. This slow but steady economic growth
has meant the country is now classified as one with me-
dium development. The average life expectancy is 72, and
the average school education lasts 10.2 years. Average
per capita annual income is USD 1,600.
The food sector is supporting the upturn
Nevertheless, the way out of poverty is difficult. With approx-
imately 165 million inhabitants, Bangladesh has one of the
highest population densities in the world. Streets and hous-
es are already overflowing in the capital city of Dhaka; the
settlement stretches across huge areas with slums and sub-
urbs. Mountains of garbage are piling up outside the city
center. Flooding is a routine occurrence.
A silver lining can be seen, though. GDP has been growing
steadily since 1995; in 2016, it grew by 7.1%, and in the three
years before that, the annual rate was approximately 6%. The
textile and metal industries are the most notable drivers of
this development, but the domestic food processing indus-
tries are keeping pace. “The livelihood of the population will
increase first and foremost with the growth in the economy,”
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Bühler Annual Report 2017
77
explains Sheikh Bashir Uddin. “From our side, we can drive
the development of new, nutritional products; of course, we
also need people to buy them. Thanks to the size of our indus-
trial operations, our products are available for a reasonable
price, which enables more consumers to have access to
more foods.”
Also convinced of this is Fazlur Rahman, Chairman of
City Group, the biggest Bühler customer in the country.
“Bangladesh is growing,” says Rahman. “We want to help
establish a sound basis for the country’s economy. The gov-
ernment has set the goal of making Bangladesh a middle-
income country by 2020. In order to achieve this, the
private sector must invest in production – we need more
rice, flour, and cooking oil.”
Rahman’s conglomerate is active in the domestic food
industry. Having originally processed mustard seeds to
make oil, Rahman developed the business over a period
of 50 years to become a highly diversified company. In
the food and feed sector, City Group now not only pro-
duces mustard, sunflower, and soybean oil, but also flour,
lentils, and rice. Today, Fazlur’s daughter, Shampa Rahman,
is No. 2 at City Group, and will take over the business in
the future.
78

The company’s newly commissioned production plant

on the bank of the Shitalakshya River, 30 kilometers out-
side Dhaka, was brought about together with Bühler.

Industrial production means safe production

The new production plant’s capacities exceed the di-
mensions of those hitherto seen and are among the
biggest projects that Bühler has ever carried out: during
peak times, up to 50 metric tons of finished products leave
the new production lines every hour. The production location
includes a transshipment center for wheat with an intake
capacity of 600 metric tons per hour as well as a facility
for processing red lentils (600 metric tons per day), rice
(72 metric tons per hour), and Atta flour (4 x 150 metric tons
per day). In addition, a soybean warm dehulling plant with
a throughput rate of 5,000 metric tons per day is currently
under construction.
The food situation in the country is still not where it should
be. With an unbalanced rice diet, malnutrition is still an issue,
as are food-borne bacterial infections. And this is precisely
why City Group is going for diversification with protein-rich
lentils and vitamin-rich Atta flour. Safe food production is
also a priority. Cleanliness is the top priority at the City
Group production plant; gloves and caps are just as much
a part of cleaning staff attire as the salwar kameez.
With Bühler, the company has a partner that has been
employing the highest standards of hygiene for years.
Bühler has been working with City Group to raise domestic
food production to the highest level since 1997. The pro-
duction site recently established outside Dhaka proves that
this is possible.

Partnerships built on trust

City Group’s positive experience in previous projects with
Bühler is the reason their family again awarded the big
contract to Bühler, says Shampa Rahman: “I have known
the people at Bühler since my childhood – some of them are
just like family to me.”
She and her father value the quality of work at Bühler
above all else: “And when problems arise, we can ask the
people at Bühler to solve them – and they always do!”
Customer care is right at the top of the priority list for
Bühler in Bangladesh. In the past two years, Marcel Züst
made an average of one trip a month to Dhaka to monitor
the progress of both major projects. “Being able to inau-
gurate the new Bühler Dhaka Service Station in the early
summer of 2017 was helpful,” says Züst. “This means that
a highly competent team will be available on-site to help
with technical problems or inspections in the future.”
The fruits of the joint endeavors are offered on the local
market; alongside the traditional huge supply of rice from
jute sacks, there are more and more prepackaged foods,
lentils, flour, and cooking oil. City Group’s Teer brand is as
common at every stand as Akij’s Sunshine flour. Thanks to
the industrial processing by Bühler machines, these pro-
ducts comply with the highest standards in the sphere of
food safety, and are available at prices that many people
now can already afford.
 PARTNERSHIP WITH CUSTOMERS
Bühler Annual Report 2017
79

A bird’s-eye view of City Group in Dhaka. Here, they produce rice, dal, and wheat flour, and trade raw materials.
80
 PARTNERSHIP WITH CUSTOMERS
Bühler Annual Report 2017
81

PROJECT LIFE
Fighting malnutrition
AFRICA
IMPROVED FOODS
Kigali, Rwanda

A toddler dances. She wears one shoe, holding

the other as she happily sways to imaginary
music. Her mother glances at the 1.5-year-old
now and again, but her attention – along with
that of the other mothers gathered in a little
room at the Centre de Santé health facility in
the Rulindo district of Rwanda – is on the nurse
explaining the importance of proper nourish-
ment for their babies and themselves while
pregnant or nursing. The mothers and children
in this room are recipients of the fortified por-
ridge made by Africa Improved Foods (AIF) and
distributed by the Government of Rwanda to
scale up nutrition efforts and combat stunting in
the country.
82
Amar Ali, CEO of AIF, in the company warehouse. AIF produces 16 million metric tons of relief food for the World Food Programme each year.
The mothers have brought their babies to be weighed and
measured to assess their development progress. When they
come for a check-up, they take part in a lesson and then get
more of the fortified cereal, which they have also learned
to prepare in similar classes. The mothers receive the AIF-
made fortified cereal for free as part of the Rwandan Ministry
of Health’s Thousand Days program to address the effects
of malnutrition, particularly in the critical first 1,000 days of
development from conception to age two.
Finding lasting solutions
The young women keenly listen as a nurse describes how to
prevent malnutrition in their babies and themselves. Nourish
your own body properly during pregnancy, breastfeed for at
least two years, and when your infant is six months old, be-
gin to supplement with the fortified porridge provided by the
government. The majority of the women here are among the
poorest 20% in the country and lack education, making them
especially vulnerable to malnutrition. Added to that is food in-
“The world needs smallholder
farmers. AIF can do its part
by making rural livelihoods
more sustainable.”
AMAR ALI
CEO of Africa Improved Foods
security, a significant threat in Rwanda. The government has
partnered with AIF to find a lasting solution to both issues.
Despite ongoing efforts, nearly 37% of children under
five in Rwanda are affected by stunting, according to the
government’s 2015 Comprehensive Food Security and Vul-
nerability Analysis report. Stunting is one consequence of
under nutrition, and simply put, it means a child’s height is

AIF produces its commercial Nootri range cereals for mothers and infants.
significantly less than the average for their age. However, the
complexities of stunting extend far beyond impaired growth
to include poor cognitive and organ development, weakened
immune systems, and nutrition-related chronic diseases in
adulthood. Though the numbers have improved from 43%
in 2012 when the last study was made, there is still much to
be done, primarily in rural areas, such as Rulindo, where the
average is still 40% compared to 27% in urban areas.
Taking action in the first 1,000 days
While the statistics are daunting, stunting can be prevented
if the right steps are taken in those first 1,000 days. “We’ve
placed 46 children in the government program at the Centre
de Santé. All of them have stunting problems where their
height did not match their age,” says Jacqueline Urures,
head of the health center and a nurse for 15 years. “It will take
some time to accurately evaluate, but we can already say
that three of them are now in the correct height-age range.
We also see that well-nourished children have more energy.”
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Bühler Annual Report 2017
83
AIF’s mission is curbing malnutrition not only in Rwanda
but across sub-Saharan Africa, which has been heavily
impacted by famine in recent years. The famine is fueled
by the worst El Niño event on record. While achieving its
mission, AIF is also working to develop a truly sustainable
food value chain in Rwanda that it hopes to extend to other
countries, including Uganda, eastern Congo, Kenya, Tanza-
nia, and Ethiopia, in the next five years. “We are happy to be
providing relief foods and foods to address malnutrition, but
more needs to be done. Our premise is to support African
countries so they reach a level where they no longer need
international support and can be economically self-sustain-
ing using local capacities,” explains AIF CEO, Amar Ali.
AIF directly employs 300 people – among them mill oper-
ators, who required training to learn how to effectively and
safely operate the high-end Bühler-built factory, located in
the Kigali Special Economic Zone. The factory has a produc-
tion capacity of 45,000 metric tons annually. “The need in
Africa for the products we produce is extremely high consider-
84
ENGINEERING
CUSTOMER SUCCESS
Bühler’s involvement in what would become AIF be-
gan in 2009, when Peter Boehni, Head of the Bühler
Innovation Satellite at the Swiss Federal Institute of
Technology in Lausanne, heard about a DSM project
that would address malnutrition in Africa with a facto-
ry in Africa. “I knew this was the perfect project for us
because we share DSM’s goals of wanting to create
a more sustainable food industry to feed the grow-
ing global population and address malnutrition,” says
Boehni. The project was aptly named “Life.” Though
technical discussions with the Bühler team, DSM, and
consortium initiator CHAI (Clinton Health Access Ini-
tiative) began in 2013, Project Life only really began
to take form in 2015 when the AIF consortium was
established and the decision was made to build a
plant in Kigali, Rwanda. “Things happened fast after
we signed the contract in July 2015,” says Bühler’s
Theodor Sutter, Key Account Manager for the project.
By December 2016, the plant was fully productive.”
Bühler Key Account Manager, Theodor Sutter, and AIF Chief Operating Officer, Jan Vriens, worked together to make the AIF factory a reality.
ing the famine in East Africa,” Ali says. “We can’t afford down-
time. We chose Bühler because we wanted a reputable com-
pany that knows how to build in Africa and in challenging
environments without compromising quality and that will be
with us through all the challenges. There have been many
challenges, and Bühler has been there as a partner through-
out. One of the challenges was finding people to operate
the mill. Bühler did that as well, training our people on their
equipment in Nairobi.”
AIF officially inaugurated its CHF 60 million plant in May
2017, but already in late 2016 had begun manufacturing
fortified cereals for its biggest customers – the World Food
Programme (WFP) and the Government of Rwanda. From
the start of production to the end of 2017, the company
had produced 4 million kilograms of fortified cereal for the
Rwandan government, and 17 million bags – 26 million kilos
– of relief foods for the WFP.
The WFP and the Government of Rwanda are not only
customers. They are also members of the AIF public-private
joint venture, along with Royal DSM (the project initiator), the
International Finance Corporation, Dutch development bank
FMO, and the UK-based CDC Group. “We could not achieve
our mission without the support of the Rwandan govern-
ment, which is a shareholder, customer, and partner in all

Bühler Service Engineer Alex Ndachi is often on-site to train AIF technicians in the maintenance of machinery.
ways,” says Ali. “The WFP is our biggest customer. They
enable us to build scale and make our products more
affordable, and their stringent quality standards give us
the opportunity to improve overall standards of production
in the country. Together, we sustainably catalyze the eco-
system around us with this economic development model.”
In the region, for the region
By sourcing the maize and soy for their porridges from nearly
10,000 local smallholder farmers, cutting out the intermedi-
aries, and paying them at the point of pickup, the company is
supporting the government’s plans to spur agricultural trans-
formation. Agriculture currently contributes to about 33%
of Rwanda’s Gross Domestic Product (GDP), according to
its National Institute of Statistics. It plans to increase this.
Today, about 70% of Rwandans make their living from
agriculture. One of them is farmer Vestine Akmanizanye. On
her own, the widow cannot handle the planting and harvest-
ing of her 250-square-meter field in the northern province.
Thankfully, she doesn’t have to. She’s a member of the AIF-
supported Rulindo district Farmer’s Cooperative, which over-
sees 160 hectares – 1.6 million square meters – of farmland
run by 3,300 families. On a hazy, warm morning in Septem-
ber 2017, almost 20 cooperative members have gathered to
help Akmanizanye sow maize. “I could not manage it on my
own,” she explains in Kinyarwanda, the country’s national
language. Cooperative manager, Thacien Hakizimana, inter-
prets her words into English. “People in the cooperative work
together. We work in harmony to help one another,” she says.
PARTNERSHIP WITH CUSTOMERS
Bühler Annual Report 2017
85
Each family tends between 100 and 1,500 square meters
of land. The majority of them lack access to modern meth-
ods of harvesting, processing, and storage. This is where
AIF comes in. The consortium collects the maize shortly
after harvest and transports it directly to its facilities, where
the moisture content is maintained to acceptable levels.
“With AIF picking up maize harvests immediately, we have
seen a significant reduction of post-harvest loss due to afla-
toxin,” says Yassin Iyamuremye, Director General of Corpo-
rate Services for the country’s Ministry of Agriculture and
Animal Resources.
The farmers in the AIF-supported cooperatives are paid
at the moment of pickup, an unusual but effective practice.
Raising the income of local farmers by sourcing crops from
them, as AIF does, improves their livelihoods and creates
financial inclusion. “I’m grateful to be in the cooperative and
have access to good seeds and fertilizer. Without the mid-
dlemen, I get a good price for my crop,” says Akmanizanye.
Keeping up with growing demand
Just three years ago the government was struggling to find
a market for the maize and soy crops produced by small-
holder farmers, but it now faces a new issue, explains
the Director General, as AIF is currently consuming about
30,000 metric tons of maize a year. “Our next issue is devel-
oping a strategy to ensure the raw materials continue to
remain available to them. We need to put a system in place
to mitigate drought impact and resilience against climate
change, and irrigation systems are a big part of this.”
86

“AIF’s partnerships with

the cooperatives create
financial inclusion. This is a
big achievement.”
YASSIN IYAMUREMYE
Director General of Corporate Services
for the Rwandan Ministry of Agriculture
and Animal Resources

Rulindo Cooperative Manager, Thacien Hakizimana, and Cooperative Chairman, Elia Habimana, say AIF has changed the lives of farmers.
 PARTNERSHIP WITH CUSTOMERS
Bühler Annual Report 2017
87

Cooperatives play a vital role in drought preparedness,
Iyamuremye says. “Well-managed cooperatives can make
a difference, not only in the lives of individual farmers. They
also help the government obtain its goal of increasing agri-
cultural GDP. The cooperatives have a successful ‘teach my
neighbor’ approach.”
Elia Habimana, Cooperative Chairman of the Rulindo
district, applied for this voluntary position to help fellow
farmers actively exchange knowledge. He is respected and
viewed as a role model by his peers, explains Cooperative
Manager Hakizimana. “It is a lot of work to be the Chairman,
but I want to support my government with the sustainable
development of farming,” Habimana says. “We farmers have
learned from the challenge of drought, we are elevating the
quality of our harvests, and we are improving our yields. We
have benefited 100% from our partnership with AIF.”
The investment into the cooperatives has a greater pur-
pose than meeting AIF’s production goals, the company’s
CEO explains. “Worldwide, 80% of farmers are smallholders,
and they produce over 80% of the food consumed in the
developing world. They have an essential role to play in food
security, and with this in mind, we are facing a big problem.
Young people today don’t want to take over the smallholder
farms of their parents,” says Ali. “This has a lot to do with
the fact that these farms just haven’t paid off in the past.
We are trying to solve this because it is part of a bigger pic-
ture. The population of Africa is projected to grow at about
100,000 people a day between now and 2050. They need
food and jobs, and the world needs smallholder farmers to
meet its nutrition needs. AIF can do its part by making rural
livelihoods more sustainable.”
“I am grateful to be in the
cooperative and have access
to good seeds and fertilizer.
Without the middlemen, I get
a good price for my crop.”
VESTINE AKMANIZANYE
Smallholder farmer and cooperative member

Vestine Akmanizanye is a member of the Rulindo district cooperative.

88
 PARTNERSHIP WITH CUSTOMERS
Bühler Annual Report 2017
89

A HINT OF
HIGH TECH
ZEISS VISION CARE
Aalen, Germany
The best perspective in every situation: ZEISS
is driving the functionality and quality of glasses
to new heights with its innovations. With its
coating unit, Bühler is part of this unique devel-
opment. How will the success story continue?
90

“The better we under- Victoria Beckham swears by them, and the Spanish ath-
lete Ruth Beitia wore them in Rio 2016 for her Olympic high
stand what’s going on in jump victory: glasses with lenses from ZEISS. If there is one
the brain, the better we global brand of optics that guarantees the best perspective,
it has to be the German manufacturer ZEISS. As Rolex is to
can construct glasses.” watches, Rolls Royce to cars, Apple to phones, and Chanel
to perfumes, ZEISS is to lenses.
MARKUS HAIDL And with good reason. The company’s history is filled
ZEISS Researcher with groundbreaking innovations to this day: as early as the
19th century, ZEISS developed the first physical models for
the optical calculation of microscopes. In 1912, the compa-
ny invented the Punktal spectacle lens, which was the first
modern precision spectacle lens ever. The anti-glare coating
followed in 1959. In 1986, ZEISS made progressive lenses

Bühler coating specialist Karl Matl and ZEISS researcher Markus Haidl work together to perfect the coating process.

with horizontal symmetry easy to wear for the first time.
ZEISS has been digitizing optics since 1992, starting with
a video-based system for making individual measurements
to ensure the lenses fit perfectly. In 2013, ZEISS launched
DuraVision Platinum, the most scratch-resistant glass on the
market so far. ZEISS also revolutionized customer-specific
lens production, so that lenses now need only be processed
on the one side – many eyewear manufacturers through-
out the world have acquired a license for this technology.
Every year, ZEISS invests 10% of its revenue in research
and development – which is reflected in the pace of innova-
tion in lenses and optical instruments.
ZEISS plays a huge roll in the successful track record of
glasses. Every year, it sells 100 million spectacle lenses in
more than 60 countries around the world. There are special
designs and coatings for car drivers, people who work with
computers and athletes – custom-made lenses optimized
“We need to ensure that the
results we achieve with proto-
types can be reliably repro-
duced in mass production.”
KARL MATL
Bühler Coating Specialist
for the eyes, face, frame, and lifestyle all bear the ZEISS
hallmark. Glasses have since evolved from being a medically
prescribed visual aid to becoming an industrial mass-pro-
duced fashion staple, an everyday object that sits on your
nose and does far more than simply correct vision.
Of course, this makes it easy to forget how important it
is to have good vision. “Seeing is believing,” ZEISS research-
er Markus Haidl puts it in a nutshell. Education, quality of
life, and comfort are unthinkable without clear vision. See-
ing is considered to be the most important sense humans
have – we take in 80% of all information through our eyes.
If your vision is impaired, it is difficult to learn, your working
life is drastically shorter, and your quality of life suffers. As
in other areas of basic human needs, when it comes to vi-
sion, there are still many people who do not have access to
optical aids – an estimated 625 million people worldwide.
Customized mass production
The high-tech nature of glasses is often overlooked. At first
glance, a plastic lens just appears to be a transparent piece
of plastic. But the ZEISS lenses pack a real punch, in three
different ways:
Individual optics: With the ZEISS i.Profiler, the opti-
cian can capture the eye’s defects with extreme precision at
1,500 measuring points per eye. A special algorithm – known
as the Coca-Cola formula of spectacle lens manufacturers –
calculates the best possible correction for your vision. Using
PARTNERSHIP WITH CUSTOMERS
Bühler Annual Report 2017
91
this as a basis together with your personal visual require-
ments, it feeds the relevant production parameters for the
lens into the processing machine at one of the production
sites in America, Europe, or Asia. The result is a truly tailor-
made, personalized lens, as unique as a fingerprint. The
effect is impressive: “The vision performance in low light
conditions and at night is significantly improved. As a result,
motorists are safer on the road. Colors appear much more
intense – all visual impressions appear sharper and with
more contrast,” explains ZEISS researcher Haidl.
Production and logistics: ZEISS manufactures up to
15,000 of this type of custom product every day alone in
its prescription production facility in Aalen, Germany, and
the shaping process is carried out individually for each
lens, rather than in batches. Production and logistics run as
smoothly as the internal workings of a Swiss watch. Starting
from a blank, the glass is shaped completely automatically in
around 90 seconds by a five-axis CNC (Computer Numer-
ical Control) processing machine and optically adjusted for
its future wearer. The production process from calculating
the individual lens to shaping, polishing, tinting, and coating
includes more than 30 individual stages in total.
Functionality: “This is where the magic happens, be-
cause this is where we differ so much from other manufac-
turers,” explains Haidl. Basic functions such as anti-glare
or scratch resistance have long been part of the standard
repertoire of glass manufacturers; but now there is a trend
toward glasses that are developed for the highest level of
comfort and safety in every conceivable situation.
For motorists, for example: The ZEISS developers have
created special spectacle lenses that filter out part of the
high-energy blue light of modern LED headlights. This part
of the light makes the modern lights very bright – good
for the driver – but it is irritating for others, for example, for
drivers in oncoming traffic. The reduction provided by the
ZEISS DriveSafe coating reduces the glare, making it more
pleasant to drive at night or in poor visibility conditions. For
screen use, for example: the high-resolution retina screens
on tablets and smartphones send light waves that signal to
our brains that it is day. This affects the distribution of the
sleep hormone melatonin. ZEISS lenses can also mitigate
the effects of these particular wavelengths. Contact lenses,
for example: With EnergizeMe, ZEISS has developed lenses
specifically for contact lens wearers. Contact lens wearers
also wear glasses for several hours a day to rest their eyes.
Given the intensive use of digital devices – which emit a high
proportion of blue light – and the particular viewing habits
of contact lens wearers, ZEISS offers this target group a
product that is optimized for their special vision requirements
and digital lifestyle.
Coatings are crucial
This brings us to the subject of coatings: “We use coatings to
give the lenses their special functions,” Haidl explains. This
means that the coating is a crucial process stage in produc-
ing the lenses – and also one of Bühler’s areas of application.
After an immersion bath for a scratch-resistant coating,
the polished spectacle lenses are put in a vacuum chamber,
92
Markus Haidl is convinced: the glasses success story is not yet over.
where the layers for the other functions are vapor-deposited.
Up to nine individual layers made from six different materials
are applied in individual steps. Metal oxides are evaporated
in a high vacuum and deposited on the surface of the lens,
which is ionized and therefore attracts the oxide molecules
with the opposite charge. To also achieve extremely hard
and resilient layers, the coating packages are then addition-
ally compressed using ionizing radiation. By the end of the
process, all the layers together are only 400 nanometers
thick. This is a hint of hightech: this is the distance that grass
grows in 15 seconds.
“Compared to these dimensions, in which we have to
produce things precisely and reliably, everything else is fairly
trivial,” says Bühler coating specialist Karl Matl. In case of a
potential error, the automated production means that the
production process for an individual lens must be started
again from scratch. The delivery of the affected customer
orders would be delayed by having to produce the lens again,
especially if things did not quite go to plan in the coating
stage at the end of the process. With several thousand or-
ders a day in Aalen, error-free production is a real challenge.
“Together, we are working
towards being able to control
and adapt the coating process
more effectively.”
MARKUS HAIDL
ZEISS Researcher
With the SYRUS coating systems, Bühler Leybold Optics
has more or less mastered the art of coating to perfection.
It’s essential that the high-performance unit does not fail: it
must reliably deliver the coating results 24 hours a day, and
this is what makes the quality of the ZEISS lenses so unique.
The blue reflex color of the ZEISS glasses requires coating
thickness accuracy down to the nanometer – these are just
a few atom layers on top of each other.
For over 10 years, ZEISS has been so satisfied that Bühler
is one of their preferred suppliers and the SYRUS system is

used in all of the spectacle lens manufacturer’s production
sites. “For us, Bühler is not just a supplier, but really a part-
ner,” Haidl explains. After all, it is not just the technologies
and machines, but ultimately the people who ensure that
the research and development work actually ends up on
the lens in an efficient industrial process. “And for this, we
consider Bühler a reliable partner that shows a great deal of
initiative,” says Haidl.
Trust on both sides also plays a crucial role here. “We
need to ensure that the results we achieve with prototypes
can be reliably reproduced in mass production,” says Matl.
This requires close coordination between ZEISS and Bühler,
especially in particular situations. For the transfer of a newly
developed, functional coating such as ZEISS DriveSafe, it
is also necessary to develop new technologies and coating
standards – parts of the innovation process that must be
mastered together.
After more than 170 years of ZEISS and over 100 years
of precision lenses, one might ask: Is the glasses success
story slowly coming to an end? Have developments of the
transparent piece of plastic been exhausted?
This question makes ZEISS researcher Haidl and Bühler
expert Matl smile. It all comes down to the fact that vision
itself is not fully understood. Current brain research allows us
The blue reflex color of the ZEISS lenses is a unique characteristic made with Bühler coating technology.
PARTNERSHIP WITH CUSTOMERS
Bühler Annual Report 2017
93
to gain deeper and deeper insights into how we humans form
a subjective and emotional picture based on a physically ob-
jective input of light waves. “The better we understand what’s
going on in the brain, the better we can construct glasses,”
explains ZEISS researcher Haidl. At the ZEISS Vision Science
Lab in Tübingen, researchers are working on these funda-
mental questions in close interdisciplinary cooperation with
universities and nonuniversity research institutions.
There is also still potential for further optimization in pro-
duction. “Together, we are working toward being able to con-
trol and adapt the coating process more effectively,” says
Haidl. If that works, it would be possible to work more pre-
cisely and eliminate the source of errors more easily. Bühler
is currently developing an even more accurate measurement
of the nanometer-thin layers in order to achieve greater ac-
curacy for the layer thickness cut-off.
And also in terms of functionality, more riddles need to
be deciphered; preventing lenses from fogging up is right at
the very top of the list. If antifog glasses were to be launched
on the market, it would not just be appreciated by winter
sports athletes and chefs. All the renowned eyewear manu-
facturers are working on it – and it would not be a coincidence
if ZEISS, with the close cooperation of Bühler, were to solve
the problem and impress eyeglass wearers once again.
94
 SUSTAINABILITY
Bühler Annual Report 2017
95

SUSTAINABILITY
We live a sustainable business policy. We strive
to improve our solutions and services to generate
long-term added value for our customers, feed
the world’s growing population, reduce energy
consumption, and leave a healthier planet to
future generations.
96
ALIGNING WITH THE UNITED NATIONS
SUSTAINABLE DEVELOPMENT GOALS
Bühler is committed to making a meaningful impact for its customers,
employees, partners, and the environment. To realize this on a global
scale, it has aligned its sustainability strategy with the United Nations
Sustainable Development Goals (SDGs).
The 17 SDGs are a universal call to action to end poverty,
protect the planet, and ensure that all people enjoy peace
and prosperity in inclusive societies. They are a guide to
help governments achieve the ambitious and transforma-
tional 2030 Agenda for Sustainable Development. Leaving
a healthier planet for future generations is a global under-
taking. It requires the partnership of governments, the private
sector, civil society, and citizens alike.
Working today for tomorrow
Making the right choices now to improve life in a sustain-
able way for future generations is important to Bühler. As
a leading international solutions provider for the industrial
manufacturing of food and advanced materials we, like all
corporations, play a significant role in helping governments
worldwide achieve the 2030 Agenda. We’ve made it a pri-
ority to engage and align with the SDGs because a sustain-
able business policy is at the core of our success. For over
150 years, we have striven to continuously improve our prod-
ucts and services to generate sustainable added value for
our customers. In this effort, we place great emphasis on
the ecological, economic, and social impact of all our activ-
ities, and the SDGs underline our vision of “innovations for
a better world.”
In these times of accelerated change, it is vital to understand
how our industries will transform, identify where we are able
to generate positive impact, and position ourselves to sup-
port this transformation. We believe that only through broad-
scale collaboration will we continue to create a sustainable
business that delivers a significant impact in line with the
SDGs. Equally, we are convinced that industry must step up
to the challenge of catalyzing sustainable change.
During the last 10 years, we have opened up our innovation
model, developing close partnerships with customers, sup-
pliers, academic institutes, and start-ups to understand the
challenges of our times and anticipate future trends.
Gaining strength through alignment
People are at the core of everything Bühler has achieved.
We are strong thanks to our employees. A key element of
our sustainability approach is the promotion, training, and
further education of our staff and those in our ecosystem.
We foster a culture where personal initiative and responsibil-
ity are encouraged in a diverse and inclusive environment.
Aligning with the SDGs and incorporating them into our
activities and culture will further strengthen Bühler’s efforts
to remain a global employer of choice.

BÜHLER IMPACTS
THESE 10 KEY SDGS
Developing solutions to sustainably feed
9 billion people by 2050 is our goal. We
are creating industrial-scale solutions for
the processing of insects and pulses as
alternative protein sources and improv-
ing the efficiency of food production to
reduce waste by 30%. Bühler Insect
Technology Solutions, and partner, Protix, are building the
world’s largest industrial insect-processing plant, scheduled
to be operational in the second half of 2018.
The health and well-being of our em-
ployees and the population at large is
important to Bühler. We work with food
manufacturers globally to help them
make foods safe and more nutritious,
for example, by reducing sugar and salt
while still retaining taste. We offer our
employees a safe, healthy, and balanced work environment,
and a health-management program. Our mission is no acci-
dents at Bühler and no accidents at customer sites.
Bühler established its Learning Center
in 2012 to offer high-end training pro-
grams to customers and employees
in Europe, North and South America,
Asia, Southeast Asia, Middle East and
Africa. In its global application centers,
experts run practical tests with custom-
ers to help them develop and improve products. Bühler has
been training apprentices for more than 100 years, and its
model is a benchmark for many countries and companies.
Diversity and inclusion are top priori-
ties for Bühler, as innovation and lead-
ership will be enhanced when the col-
lective skills of employees of different
gender, origin, nationality, ethnicity,
age, knowledge, and skill levels are
brought to bear. The company Code
of Conduct serves as a guide for employees to live the
company principles of trust, respect, recognition, involve-
ment, and passion.
Motivated employees and dedicated
management staff are key to Bühler’s
long-term growth and business per-
formance. Adequate compensation;
safe, rewarding work in an international
environment; and employee develop-
ment programs enable Bühler to at-
tract and retain talent. Over 73% of apprentices remain
with the company after completing their training. Each year,
600 apprentices are enrolled worldwide.
These are just a few examples of Bühler’s sustainability efforts.
SUSTAINABILITY
Bühler Annual Report 2017
97
Bühler has started construction of its
new innovation campus – the CUBIC
– in Uzwil, Switzerland. It is designed
to be a state-of-the-art workplace
focused on collaborative innovation,
where knowledge holders from across
our industries and beyond can come
together to address global challenges. The CUBIC will bring
together the worlds of engineering and business, as diverse
approaches lead to success. It opens in 2019.
To reduce societal inequity through
education, training, and collaboration,
Bühler partners with various organiza-
tions. It established the African Milling
School in Kenya in 2015 to train mill-
ers, and has joined Partners in Food
Solutions to create a more sustainable
food industry on the continent via volunteering. Bühler also
strives to create a positive workplace where all employees
have equal rights.
Responsible production means align-
ing our purchasing policies and pro-
duction processes in compliance with
international standards. To improve
its environmental performance, Bühler
also requires its suppliers to com-
ply with our global quality, environ-
mental, and safety standards. Its ISO 9001:2015 and ISO
14001:2015 certificates were renewed and are valid through
November 2020.
Bühler’s goal is to reduce its environ-
mental footprint, energy consumption
and waste at its customers’ sites, and
in its own manufacturing and logistics
by 30% by 2020. Bühler has set a goal
to lower its material consumption, pol-
lutants, and energy consumption per
productive hour at 5% annually. By developing new digital
solutions, the company will further help its customers im-
prove quality and reduce waste.
Broadscale collaboration supports the
creation of a sustainable business that
delivers a significant impact on climate
goals. Bühler has been expanding its
collaborative innovation model, devel-
oping close partnerships with custom-
ers, suppliers, academic institutes, and
start-ups over the last decade. We are committed to driving
collaboration further. In the digital world, collaboration is a
key basis for success.
98
OUR KEY PERFORMANCE
INDICATORS FOR SUSTAINABILITY
Our guidelines are aligned with
the Global Reporting Initiative (G4)
To report accurately on sustainability, it is necessary to set
measurable performance indicators and define a transpar-
ent evaluation method to measure and compare yearly pro-
gress. Bühler has aligned the sustainability report with the
requirements of the Global Reporting Initiative (G4), which is
the leading international standard. In particular, Bühler’s re-
porting is adapted from the core option of the GRI guidelines.
Our sustainability reporting has been expanded continually
since 2013. At present, the 17 major Bühler sites out of a
total of 25 sites are reporting on 39 key performance in-
dicators (KPIs). The reporting sites account for 92 % of all
productive hours.
In 2016, Bühler reviewed all sustainability KPIs and
aligned them with the Bühler2020 strategy. The year 2015
forms the baseline for the performance evaluation by
2020. In 2017, Bühler aligned its sustainability strategy with
the United Nations Sustainable Development Goals (SDGs),
which came into effect in January 2016. The SDGs are com-
mon global measures put in place to tackle the world’s most
pressing issues. Bühler began exploring how to incorporate
the SDGs into its KPIs and materiality aspects in 2017. Our
approach to sustainability is always evolving, and we will
further review how best to align our KPIs with the SDGs in
the coming years.
Materiality analysis
Bühler’s stakeholders are its customers, employees, sup-
pliers, and other business partners, academia, the commu-
nities in which Bühler operates, the regulatory authorities,
governments, nongovernmental organizations, as well as
the environment.
Bühler fosters a continuing exchange with its stakeholders
regarding all aspects of sustainability. These stakeholders
were included when the most important materiality aspects
were identified (see page 99). The materiality aspects are
constantly being revised and upgraded to reflect the market
conditions and the changing priorities of the stakeholders.
 SUSTAINABILITY
Bühler Annual Report 2017
99

BÜHLER MATERIALITY ASPECTS

ENVIRONMENTAL
Energy consumption at our locations and the plants and
equipment in operation at our customers’ sites account for a
Food security, safety, share of the total burden on the environment. We have there-
and nutrition fore set ourselves the goal of reducing both the ecological
footprint of our own sites and that of our customers along
Resource efficiency their value chains. Our process technologies in die casting,
dispersion, and surface coating help improve sustainable
Environmental footprint mobility and the energy efficiency of buildings.
of our sites

SOCIAL
Motivated, carefully trained employees and dedicated man-
agement staff are key to our success. Bühler is commit-
Health and safety ted at all levels to the training and continued education of
its employees. As a global organization, Bühler considers
Culture of continuous the cultural diversity of its employees to be one of its major
learning strengths. This is reflected in its efforts to fill management-
level positions with local candidates whenever possible.
Fair and equal treatment All employees have equal rights, regardless of their origin,
nationality, religion, or gender.

ECONOMIC
Sustainable business success is a precondition for Bühler to
meet the ecological and social expectations that are placed
Long-term profitability on our organization. We deliberately define long-term profit-
ability targets, so as to secure our independence and free-
Corporate governance dom. It is important to us to ensure that all our market regions
benefit from our value generation.
Contribution to local
economies
100

INSECT PROTEIN A LANDMARK SHIFT

AN INDUSTRY IS BORN
In 2017, Bühler made great advances toward its goal of utili-
zing protein from insects for animal feed, realizing that as
the global population grows and environmental stresses in-
crease, we will need alternative and more sustainable pro-
tein sources. Insects are rich in protein, and they feed on
food waste, leaving a minimal environmental footprint.
In early 2017 Bühler teamed up with Protix, one of the
world’s leading insect-rearing and processing companies,
to form Bühler Insect Technology Solutions. The joint ven-
ture was set up to develop industrial-scale production pro-
cesses to manufacture protein-rich feedstock using insects
and larvae. As part of the project, Bühler is currently building
the world’s largest industrial insect processing plant in Chi-
na, with an opening date in the second half of 2018.
By 2050 it is estimated that insects could be the source of
15% of the world’s protein. We are witnessing the birth of a
new industry, with Bühler spearheading change through its
unrivaled experience in developing scalable, hygienic, and
cost-effective processing plants.
CARBON-NEUTRAL COFFEE
With Oslo’s ambition to become carbon-neutral by 2030 and
Norwegians being among the world’s biggest per capita
drinkers of coffee, it seems natural that Bühler should team
up with the country’s largest coffee manufacturer to build
the world’s first carbon-neutral coffee plant. Joh. Johannson
produces high-quality roasted beans and ground coffee.
The challenge has been how to produce carbon-neutral
coffee without compromising on flavor or quality. Extensive
flavor-matching trials took place at our Application Center
in Uzwil until cupping experts gave their seal of approval.
The new greenfield plant in Vestby will be using two Bühler
InfinityRoast 2000 roasters with green bean preheating units
along with sophisticated energy recovery systems and emis-
sion control technologies to cut energy consumption and
greenhouse gases. Bühler is providing all the processing
equipment apart from packaging. Hundreds of photovoltaic
panels will be used to mitigate energy consumption to en-
sure the whole plant is carbon-neutral. The future plant is a
landmark change that will allow Joh. Johannson’s customers
to enjoy carbon-neutral coffee.

ENVIRONMENTAL SUSTAINABILITY
SDG Materiality aspect Our commitment Sustainability goals

Food security, safety, We set the standards for the We continuously improve our solutions for safe
and nutrition reduction of food losses and and healthy foods.
for safe and healthy foods.

Resource efficiency We set the standards for We continuously improve our solutions for
resource-efficient solutions. resource efficiency.

Environmental footprint We reduce the environ- We reduce energy and water consumption as well
of our sites mental footprint of our sites as carbon emissions and waste by 30% by 2020.
worldwide.

We ensure environmental compliance in our

supply chain.
 SUSTAINABILITY
Bühler Annual Report 2017
101

OPTIMAL MOISTURE CONTENT

FOR PERFECT PET FOOD
The efficiency of the machinery and production processes
that Bühler manufactures is at the forefront of the challenge
to cut waste and energy usage by 30% for our customers
by 2020. The beauty of the challenge is that an efficiently
run business means saving costs while reducing carbon
footprint. An example is the new AeroPro Moisture Control –
a complete moisture control system that, in realtime, aug-
ments the dryer temperature profile to minimize overdrying.
Using microwave sensor technology and the Internet of
Things, Bühler has devised a continuous moisture manage-
ment process that improves dryer yield and cuts energy use
for drying.

Through continuous analysis, the time gaps associated

with traditional manual sampling techniques are eliminated,
allowing algorithms to immediately adjust production para-
meters so the optimum moisture content is achieved. Speci-
fically, 1% moisture gain in final product water content is
equivalent to USD 300,000 a year for the average pet food
line. It’s a win-win-win for the customer, for Bühler, and for
carbon emissions.

GRI G4- Target Baseline

Key performance indicator (KPI) related KPI 2020 2015 2016 2017

Percentage of food-relevant R & D projects with focus to improve G4-PR1 50 % 28 % 29 % 34 %

food safety.
Number of employees in key positions to receive training in food safety. Additional 3,000 498 1,572 1,884
(related to G4-PR1)

Percentage of food-relevant R & D projects with focus to improve nutrition. Additional 20 % 8% 10 % 23 %

(related to G4-PR1)

Percentage of R & D projects with focus to improve energy efficiency per Additional 70 % 24 % 29 % 37 %
tonne of end product or finished piece. (related to G4-EN6,
G4-EN7, G4-EN27)

Percentage of R & D projects with focus to improve product yield. G4-EN27 50 % 22 % 29 % 40 %

Energy consumption relative to 1,000 productive hours, GJ/1,000 h. G4-EN3/EN6 30 % 91.5 77.1 79.9
reduction
to baseline

Carbon equivalents relative to 1,000 productive hours, t/1,000 h. G4-EN15 30 % 12.8 10.8 10.1
reduction
to baseline

Water consumption relative to 1,000 productive hours, l/1,000 h. G4-EN8/EN10 30 % 84.1 89.5 55.5
reduction
to baseline

Amount of waste (including recycled material) relative to 1,000 G4-EN23 30 % 3,715 3,178 2,266
productive hours, kg/1,000 h. reduction
to baseline

Amount of hazardous waste relative to 1,000 productive hours, G4-EN23 30 % 246 151 153
kg/1,000 h. reduction
to baseline

Number of significant fines for noncompliance with environmental laws. G4-EN29 0 0 0 0

Percentage of top suppliers that have signed the Bühler Supplier G4-EN32 100 % 0 Rollout 30 %
Code of Conduct or have an own equivalent code of conduct. ongoing
102

TRAINING DRIVES FARM-TO-FORK PROTECTION

FUTURE SUCCESS
At Bühler we pride ourselves on the breadth and depth of
the lifelong learning and education we provide, both inter-
nally and externally. With Bühler support, 600 apprentices
enrolled in courses across the globe this year, ranging from
boilermaking to plant design. Each apprentice benefits from
the unique Swiss dual vocational system, which combines
practical experience with classroom exposure while earning
as they learn.
Bühler also applies this principle of balancing the practical
with the theoretical to the African Milling School it set up in
Kenya’s capital, Nairobi. Each year two-dozen students
from across Africa begin a two-year course where they learn
to become the next generation of millers and head millers.
Within Bühler we run the Master of Bühler Management
(MBM), where 30 of our best employees are selected from
across Bühler’s regions and businesses for themed training
programs held at different international locations. The MBM
aims to ensure our future managers are equipped with the
right leadership and entrepreneurial skills to drive Bühler’s
future success.
FOOD SAFETY TRAINING
It is only if every link in the food chain is secure against
potential pathogen risk that we can be sure our food is
properly protected. Five years ago Bühler launched a major
food-training program with the goal of ensuring every em-
ployee knows about food hazards and hygienic product
design, while understanding that food safety is paramount in
all we do.
Our food-training courses have evolved since the launch.
Bühler invites its clients to training courses to explain the
food and feed safety challenges each industry or processor
faces. It’s through this interchange of knowledge that Bühler
is able to adapt food safety solutions to its many different
markets, and so help achieve farm-to-fork protection. Bühler
does not just want to understand the food safety concerns
of its customers, but also their customers in turn. This year
the reach of the program extended beyond on-site training,
with the launch of an e-learning module and off-site training
at customer sites. To date nearly 1,900 employees in key
positions have completed the food safety training online or
in courses.

SOCIAL SUSTAINABILITY
SDG Materiality aspect Our commitment Sustainability goals

Health and safety We strengthen our corporate We want to increase the safety of our products
culture of health and safety. and our manufacturing locations.

We enhance the health and well-being of our

employees worldwide.

Culture of continuous We pursue our corporate We enable our employees worldwide to increase
learning culture of continuous learning. their level of relevant competencies.

We ensure the sustained availability of core

competencies in a dynamic context.

We offer attractive job opportunities and develop-

ment for young employees.
We want to promote our culture of innovation and
entrepreneurship across all organizational levels.

We want to enhance the integration of our

partners into our innovation process.

Fair and equal treatment We strengthen our We foster a workplace free from any
corporate culture of fair and discrimination.
equal treatment.
 SUSTAINABILITY
Bühler Annual Report 2017
103

EMPOWERING YOUNG
LEADERS TO DRIVE CHANGE
A sustainable future requires informed, empowered, and
connected leaders. The One Young World initiative brings
together young future leaders from across the globe with a
call to action to bring about positive change. This is the
second year that Bühler has sent a delegation to the annual
summit, where they were inspired and encouraged by world
leaders in politics, NGOs, the arts, and corporations to de-
bate and formulate solutions that address some of the most
pressing issues of our time.

Bühler celebrates the opportunity One Young World pro-

vides to inspire the future generation to drive change for a
more sustainable future from within companies and across
industries. It is also a chance for Bühler’s young leaders to
meet, discuss, and form networks with colleagues and
clients that will help to improve and strengthen Bühler and
its aims from within. At this year’s October summit in
Bogotá, Colombia, delegates addressed diversity and inclu-
sion, peace and reconciliation, powering sustainable de-
velopment through technology, business ethics, and doing
well by doing good.

GRI G4- Target Baseline

Key performance indicator (KPI) related KPI 2020 2015 2016 2017

Percentage of R & D projects with focus to improve operator safety. G4-PR1 50 % 48 % 43 % 22 %

Number of recordable work-related injuries per 100 full-time employees. G4-LA6 0 2.9 2.9 2.3

Sickness-related absenteeism (days per employee and year). G4-LA6

0 2 3.8 2.4

80 % 80 % 86% 89 %
Percentage of all employees undergo the Employee Performance G4-LA10 and
Management process every year. G4-LA11
The number of training days per full-time employee per year. G4-LA9 2 2 2.3 1.85
Percentage of training costs over total personnel costs per local Additional 1% 1.2 % 1.9 % 0.9 %
Learning Center. (related to G4-LA9)

Percentage of High Potentials among all employees. Additional 5% 2.8 % 3.1% 3.2 %
The key positions for the senior functions at management level 1, 2, and 3 Additional 100 % 100 % 80 % 88 %
have been defined, and potential successors have been determined. (related to G4-LA12)

Percentage of all apprentices who are hired subsequently to Additional 80 % 77 % 71% 73 %

their apprenticeship. (related to G4-LA12)

Percentage of employees participating in the Bühler Innovation Challenge Additional 60 % 34 % 32 % NA

(every two years).
Percentage of implemented business ideas from the Additional 5% NA 2% NA
Bühler Innovation Challenge (every two years).
Percentage of projects run in collaboration with partners Additional 50 % 44 % 47 % 53 %
(suppliers, customers, universities).

Percentage of female employees. G4-LA12 20 % 15 % 16 % 15 %

104

COLLABORATION DRIVES A BREAKTHROUGH

ECONOMIC SUSTAINABILITY
Bühler believes that to help achieve a sustainable future, it
needs to support new, cutting-edge businesses to ensure
it can carry innovation forward for the benefit of future gen-
erations. In 2014, Bühler partnered with MassChallenge in
Boston, a nonprofit organization that helps support start-
ups by providing them with mentors from across the busi-
ness community. A year later Bühler, along with other part-
ner companies, founded the MassChallenge accelerator
program in Switzerland, and in 2017 alone we are proud to
report 75 fledgling companies benefiting from the initiative,
bringing the total to 140 start-ups to date.
An example of the type of innovation that Bühler is support-
ing through MassChallenge is Counting Carbon – an en-
gineering team that is developing a smart shopping as-
sistant that uses computer algorithms to raise consumer
awareness by calculating the health and environmental im-
pact of the food we buy.
Taste of Kenya is another – in 2017, Bühler presented it with
its first Bühler Sustainability Award for its efforts to simplify
the coffee supply chain in Africa through direct trade bet-
ween farmers and retailers.
FOR THE BATTERY INDUSTRY
2017 has been a milestone year for electric vehicles as
China considers following France and Britain in setting a
deadline for a ban on the sale of new gas-fueled and diesel
cars. Public health concerns about air quality is driving
change, and Bühler is part of the revolution to support the
development of e-mobility through its partnership with
Lishen, one of China’s largest battery manufacturers.
Bühler’s development of an innovative continuous mixing
process for battery slurry that is capable of cutting battery
manufacturers’ investment and operating costs by up to
60% is set to help companies meet the increasing demand
for the lithium-ion batteries needed for electric vehicles.
In July 2017, Lishen’s new battery plant in Suzhou, China,
opened four industrial-scale production lines for battery
slurry to be used in the production of a new generation of
batteries that will be lighter, with a higher energy density,
and cheaper to produce. Bühler received Lishen’s Best
Equipment Supplier award at the inauguration ceremony.
It is anticipated that, thanks to Bühler technology, the new-
generation battery will increase the range of an electric
vehicle by a third.

ECONOMIC SUSTAINABILITY
SDG Materiality aspect Our commitment Sustainability goals

Long-term profitability We deliver long-term We remain a profitable and independent business.

profitability.

Corporate governance We ensure an effective We assure legal compliance and apply our Code
corporate governance of Conduct worldwide.
approach.

Contribution to local We contribute to local We contribute to the development of

economies economies. local communities.
 SUSTAINABILITY
Bühler Annual Report 2017
105

VOLUNTEERING VIRTUALLY
FOR AFRICA’S DEVELOPMENT
Knowledge underpins sustainable success. The vast exper-
tise and experience of Bühler and the partner companies of
Partners in Food Solutions (PFS) – General Mills, Cargill,
DSM, Hershey, and Ardent Mills – is invaluable to food pro-
cessors in Africa. It improves food security, nutrition, and
economic development across the continent. Which is why
four years ago, Bühler began supporting the nonprofit orga-
nization PFS. It links industry experts with small and mid-
size food processors in Africa. In our interconnected world,
a volunteer using a computer can share knowledge that can
help train and build the capacity of a business thousands of
miles away.

The initiative supports Bühler’s desire to ensure every living

person has access to healthy food. To help achieve this,
Bühler has set up a working group to better match the right
expertise with the right company, while encouraging more
staff to become virtual volunteers. In September, Bühler
volunteers and other partner companies met for the first
time in Switzerland to hear from PFS partners working in
Africa how support networks can be better developed. It
was an opportunity to hear firsthand what sort of knowledge
local producers are looking for.

GRI G4- Target Baseline

Key performance indicator (KPI) related KPI 2020 2015 2016 2017

100 % own financing of growth. Additional 100 % 100 % 100 % 100 %

(related to G4-EC1)

Number of applications received per open position. Additional 30 16 23.0 22.4

Quote of terminations within the first 12 months of employment. Additional <5 9 3 8
Quote of terminations during the probation period. Additional <1 1 2 4
Quote of high potentials after two years of service. Additional 3% 2% 1% >1%
Percentage of employee turnover. G4-LA1 < 8% 8% 7.5 % 8.3 %

Percentage of new employees in the sales, purchasing, and G4-SO8 100 % 97 % 92 % 87 %

management functions who have attended the online training against
corruption and bribery.
Number of companies audited on corruption prevention. G4-SO8 10 8 9 11
Number of companies audited on fraud prevention. G4-SO8 10 8 9 11
Number of relevant compliance fines (higher than CHF 200,000). G4-SO8 0 0 0 0
Number of whistleblowing cases per year. Additional Best practice 11 5 2
(related to G4-SO8) in definition
with peers

Number of all compliance cases. Additional Best practice 64 47 11

(related to G4-SO5 in definition
and G4-SO8) with peers

Number of projects supported by Bühler employees through Partners Additional 10 0 Rollout 12

in Food Solutions and other nongovernmental organizations. (related to G4-EC6) ongoing
106
 GOVERNANCE
Bühler Annual Report 2017
107

GOVERNANCE
Bühler follows international standards of corporate
governance. We base our corporate governance
activities on the principles of the Swiss Code of
Best Practice – a useful instrument for clearly
defining internal powers and responsibilities and
optimally designing the interaction between the
Board of Directors, the Executive Board, and the
Internal Audit Group.
108

GROUP STRUCTURE As a non-listed, family-owned, but economically significant

Bühler follows international
standards of corporate
governance.
company, Bühler has decided to pay special attention to
the design of its corporate governance. As a consequence,
Bühler’s corporate governance goes far beyond the statutory
requirements of Swiss corporate law and incorporates, to a
great extent, the recommendations contained in the “Swiss
Code of Best Practice for Corporate Governance” issued by
economiesuisse.

Bühler’s Articles of Incorporation set material parameters

of the corporate governance system. The Articles of In-
corporation are complemented by Bühler’s Organizational
Regulations, which further specify the responsibilities,
competencies, and regulations of the governing bodies of
the company. Unless prescribed by law or the Articles of
Incorporation, the management is delegated by the Board
of Directors, with the power to subdelegate to the Chief
Executive Officer, the Executive Board, and its members.
Separate charters specify the organization of the Nomina-
tion and Compensation Committee and the Audit Committee.

The Board of Directors has also issued a regulation governing

the cooperation between the Board of Directors, the CEO /
Executive Board, and the Urs Bühler Innovation Fund.

Bühler remains a family-owned company

In 2014, Urs Bühler transferred his shares in Bühler to his
three daughters, Karin, Maya, and Jeannine Bühler, each
of whom now owns a third of the company. For the three
sisters, continuity is the top priority, as they want to build on
the strengths and values of Bühler. They continue to maintain
optimal general conditions for the company to operate in: a
stable shareholder structure, a long-term orientation, steady
company management that is not subject to the constraints
of quarterly reporting – but nevertheless a management style
pursuing business success. The three owners are represent-
ed on the Board of Directors and have a clear and unified
voice in relation to the company.
 GOVERNANCE
Bühler Annual Report 2017
109

Board of Directors

Chairman Vice Chairman

Calvin Grieder Josef M. Müller1

Clemens Blum Jeannine Bühler Maya Bühler Ruth Metzler-Arnold

Frank N.J. Braeken Karin Bühler Konrad Hummler Linda Yang

Executive Board

CEO CFO Grains & Food Advanced Materials

Stefan Scheiber Andreas R. Herzog Johannes Wick Samuel Schär

CTO Manufacturing, Sales & Services2 Human Resources

Ian Roberts Logistics & Supply Chain Dieter Voegtli Dipak Mane
Holger Feldhege

Business Areas

Grains & Food Advanced Materials Haas Group2

Grain Quality & Supply2 Die Casting Wafer & CFT

(Convenience Food and Cones)

Milling Solutions2 Leybold Optics Biscuits

Value Nutrition Grinding & Dispersing Mixing Systems

Digital Technologies2 Non Food

Consumer Foods

Regions

North America South America Europe

Middle East & Africa South Asia Asia

Urs Bühler Innovation Fund

Founder Chairman
Urs Bühler Ian Roberts Hal Gurley Dr. Matthias Kaiserswerth Edward S. Steinfeld

1 2
Resigned effective February 6, 2018. Effective January 2018.
110

BOARD OF DIRECTORS
 GOVERNANCE
Bühler Annual Report 2017
111
112
BOARD OF
DIRECTORS
01
01 Clemens Blum
Clemens Blum holds a degree in Elec-
tronic Engineering from Furtwangen
University (Germany) and Business
Management from Pforzheim Universi-
ty (Germany). After holding various po-
sitions in sales at different companies,
he joined the Swiss Industrial Group
(SIG) as Sales Director of SIG Positec
Automation in 1992 and was nominat-
ed General Manager in 1997. In 2000,
Schneider Electric acquired the SIG
Positec activities from SIG, and Clem-
ens Blum then held various leading po-
sitions within the Schneider Electric
Group. From July 2010 until December
2016, he was Executive Vice President
of the Industry Business located for
two years in Foxborough (Massachu-
setts/US) and is currently responsible
for specific mergers and acquisition
strategies, and key executive custom-
ers in the industrial automation market.
He is also a member of the Presiding
Committee and Chairman of the Work-
ing Group Information and Communi-
cation of the IBC International Business
Congress e.V. Berlin. He was elected a
Member of the Board of Bühler in De-
cember 2015. Clemens Blum was born
in 1955 and is German.
03 Karin Bühler
After obtaining her university entry
qualifications, Karin Bühler acquired a
degree in Marketing. Following a num-
ber of activities in the fields of market-
ing, communications, and equestrian
sports, she became General Manager
of Horse Vision AG as owner in 2008.
She has been with UZE AG since 2011,
first as Manager Marketing, then as
member of the General Management in
charge of Human Resources & Market-
ing, and since 2014 as General Manag-
er. Karin Bühler was re-elected to the
Board of Directors in 2017. Karin
Bühler was born in 1978 and is Swiss.
02
02 Linda Yang
Linda Yang holds Bachelor’s degrees in
both Mathematics and Business/Fi-
nance from Nan Kai University (Tianjin,
China). She graduated from the Execu-
tive MBA program at the China Europe
International Business School (CEIBS)
in 2009. Following various assignments
in China in the fields of research, con-
sulting, and marketing, at companies
such as Procter & Gamble (China) Ltd.,
she acted from 2001 to 2004 for Nestlé
(China) Ltd. as Head of Consumer In-
sight. Since then, she has been the
General Manager of BSI (Tianjin) Foods
Co. Ltd., a subsidiary of Savencia Fro-
mage & Dairy (previously known as
Bongrain SA) in China. Thanks to her
experience and training, Linda Yang
has a proven understanding of the Chi-
nese market. She has been a Member
of the Bühler Board of Directors since
2014. Linda Yang was born in 1971
and is Chinese.
04 Jeannine Bühler
After successfully completing her fed-
eral vocational matriculation certificate
and passerelle (supplementary exam
certificate) in St. Gallen, Jeannine Bühler
was awarded a Bachelor of Arts degree
from the University of Zurich. She later
received a Master of Arts in Social
Sciences in journalism and communi-
cation sciences and political science.
While still a student, she worked with
foundations committed to charitable
and sustainable projects. Following
completion of her studies, she joined
the development organization Helve-
tas Swiss Intercooperation. Jeannine
Bühler was elected to the Board of Di-
rectors of Bühler in 2016. Jeannine
Bühler was born in 1986 and is Swiss.
04
03
06 05
06 Calvin Grieder
Chairman
In 1980, Calvin Grieder started his ca-
reer as Marketing Manager with Georg
Fischer Ltd. in Switzerland and contin-
ued in various executive positions at
Swiss and German companies, includ-
ing Bürkert Controls Ltd., Mikron Ma-
chines Ltd., Swiss Industrial Company
(SIG) Ltd., and Swisscom Telecom
Ltd., where he served as Head of the
Mobile and Internet business and
member of the Executive Board. He
was CEO of the international engineer-
ing group Bühler from 2001 to 2016. In
2014, he was elected Chairman of the
Board of Directors of Bühler and in
2017, Chairman of the Board of Direc-
tors of Givaudan. Calvin Grieder holds
the following mandates in unlisted
companies: Member of the Board of
Trustees of Avenir Suisse, owner and
Member of the Board of CGTech in
Küsnacht, and member of the Advisory
Board of the ETH, Department of Me-
chanical and Process Engineering.
Calvin Grieder holds a Master of Sci-
ence from ETH Zurich and has com-
pleted an Advanced Management Pro-
gram (AMP) at Harvard University. He is
a citizen of Switzerland and was born
in 1955 in the US.

05 Maya Bühler
Maya Bühler studied Veterinary Sci-
ence at the University of Zurich. After
completing her studies, she held vari-
ous positions in the horse surgery de-
partment of the animal hospital in Zu-
rich and became a Veterinary Specialist
for Horses (FVH) in 2012. At the begin-
ning of 2013, she became the owner
and Managing Director of Pferdeklinik
Thurland in Uzwil. Maya Bühler was
re-elected to the Board of Directors of
Bühler in 2017. Maya Bühler was born
in 1981 and is Swiss.
07 08
07 Frank N. J. Braeken
Frank N. J. Braeken graduated with a
degree in Law and holds an MBA de-
gree in Finance from the University of
Leuven (Belgium). He is an alumnus
of the Wharton Executive Program,
Penn University (Philadelphia, US). In
his professional career, he specialized
in finance and in general management.
From 1996 to 2013, he held various
management functions in different
countries for Unilever, including a posi-
tion as Group Vice President of Unilever
China (Shanghai), Executive Vice Pres-
ident of Unilever Namca (Dubai), and
Executive Vice President of Unilever
Africa (Dubai/Durban). Subsequent to
leaving Unilever, Frank N. J. Braeken
has acted as investment advisor and
investor for large-scale agro and food
enterprises on the African continent. In
2016, he was elected Chairman of the
Board of Feronia Inc., a Toronto-listed
palm oil producer on the African conti-
nent. He is also a nonexecutive board
member of Marie Stopes International
and Agra, both not-for-profit organi-
zations. He was elected to the Board
of Directors of Bühler in 2014. Frank
N. J. Braeken was born in 1960 and
is Belgian.
*
Resigned effective February 6, 2018.
09
08 Josef M. Müller*
Vice Chairman
Josef M. Müller holds a degree in Busi-
ness Administration. He joined the
Nestlé Group in 1972, with subsequent
assignments in Switzerland, Europe,
the US, 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. From 2010 to
2017, he served as President of Pro-
marca, the Swiss Association of Brand-
ed Goods (Schweizerischer Marken-
artikelverband). He is also a Member of
the Board of Crown Holdings Inc. (Phil-
adelphia / US) and of Packages Ltd.
(Lahore / Pakistan). Josef M. Müller was
born in 1947 and is Swiss.
GOVERNANCE
Bühler Annual Report 2017
113
10 Konrad Hummler
Konrad Hummler graduated in Law
from the University of Zurich and in
Economic Science from the University
of Rochester (US). In the eighties, he
acted as the personal assistant to Dr.
Robert Holzach, the Chairman of the
Board of Directors of what is now UBS.
From 1991 to 2012, he was Managing
Partner with unlimited liability at We-
gelin & Co. Private Bankers (St. Gallen).
In addition to his banking activities, he
was a member of the board of various
companies, including Neue Zürcher
Zeitung (NZZ), Swiss National Bank
(SNB), and the German Stock Ex-
change. Since 2013, Konrad Hummler
has headed M1 AG, a private think-
tank dealing with strategic issues of
current interest. Konrad Hummler was
appointed as Member of the Board of
Bühler in 2010 and as Chairman of the
Nomination and Compensation Com-
mittee in 2016. He is strongly commit-
ted to cultural and social projects.
Konrad Hummler was born in 1953
and is Swiss.
10
09 Ruth Metzler-Arnold
Ruth Metzler studied Law at the Univer-
sity of Freiburg i. Ue. and is a Federally
Certified Auditor. From 1990 to 1999,
she was active for Pricewaterhouse
Coopers in St. Gallen. In addition, she
was a member of the Cantonal Govern-
ment of Appenzell IR (Director of Fi-
nance) during three years. From 1999 to
2003, she was member of the Swiss
Government and headed the Federal
Department of Justice and Police. Ruth
Metzler then held leading positions at
Novartis and was a Member of the
Board and of the Audit Committee of
the SIX Group. Ruth Metzler is Chair-
woman of the Board of Switzerland
Global Enterprise. She is also a Board
Member of AXA Winterthur, Fehr Ad-
vice, Reyl & Cie SA, Swiss Medical Net-
work SA, and a member of the council
of the University of St. Gallen (HSG).
Since April 2016, Ruth Metzler has been
a Member of the Board of Trustees of
Avenir Suisse. She was elected as a
Member of the Board of Bühler in De-
cember 2011 and as Chairwoman of
the Audit Committee in February 2014.
Ruth Metzler-Arnold was born in 1964
and is Swiss.
114

EXECUTIVE BOARD
 GOVERNANCE
Bühler Annual Report 2017
115
116
EXECUTIVE BOARD
01
01 Holger Feldhege
COO Manufacturing, Logistics
& Supply Chain
Holger Feldhege studied Business
Administration and holds a PhD in
Production Management. He has ex-
tensive experience in the sales and
service business as well as production,
engineering, and logistics. He worked
in various management positions at
Mannesmann and ThyssenKrupp El-
evator, spending more than seven
years in Asia. Upon his return to Ger-
many in 2010, Holger Feldhege took
on the position of CEO Manufacturing
for the business unit Central, Eastern,
and Northern Europe and later Senior
Vice-President Manufacturing Elevator
for the worldwide group. In 2014, Hol-
ger Feldhege joined Bühler as Head of
Manufacturing & Logistics. In 2017, he
was named Chief Operations Officer re-
sponsible for Manufacturing, Logistics
& Supply Chain. Holger Feldhege was
born in 1968 and is German.
* Effective January 2018.
02
02 Dieter Voegtli
President Sales & Services*
Dieter Voegtli is a Mechanical Engineer
(Swiss Federal Institute of Technolo-
gy in Zurich, ETH) and holds an MBA
from INSEAD. He started his career in
global power plant commissioning and
as a Software Development Manager
for ABB. Following that, he worked
for eight years as Technical Director
of Roche China Ltd. Dieter Voegtli has
been President of Bühler Group China
and Asia Pacific since 2009, after serv-
ing as President of Bühler China since
2004. He was named President of the
Sales & Services organization as of Jan-
uary 1, 2018. Dieter Voegtli was born in
1958 and is Swiss.
03 Samuel Schär
CEO Advanced Materials
After obtaining a diploma as a Physics
Engineer from the Swiss Federal Insti-
tute of Technology in Lausanne (EPFL)
and accumulating three years of expe-
rience with the consultancy McKinsey,
Samuel Schär joined Bühler in 2002.
He took charge of the Nanotechnolo-
gy business unit in 2005. From 2009
to 2012, he bore overall responsibility
for the Grinding & Dispersing business
area. Samuel Schär has headed the
Advanced Materials business since
2013 and was appointed CEO of Ad-
vanced Materials as of September
2014. Samuel Schär was born in 1975
and is Swiss.
03 04
04 Stefan Scheiber
Chief Executive Officer
Stefan Scheiber graduated in Business
Administration from the University of
Applied Science in St. Gallen and later
continued his education at the Institute
IMD Lausanne and Harvard Business
School. From 1988, he worked for 15
years in various international manage-
ment positions worldwide, including
East and South Africa, Eastern Europe,
and Germany. In 1999, he took charge
of the Brewing/Malting and Rice busi-
ness units and thereafter assumed
overall responsibility for Bühler in Ger-
many. From mid-2005, Stefan Scheiber
headed the Sales & Services division as
a Member of the Executive Board. In
2009, he was assigned Division Manag-
er of the Engineered Products division,
which he reorganized into the Food
Processing and the Advanced Material
divisions. He led the Food Processing
division as of 2009. In 2014, Stefan
Scheiber integrated the Food Process-
ing and the Grain Processing divisions,
creating the Grains & Food business,
which he led until 2016. He was ap-
pointed CEO of the Bühler Group on
July 1, 2016. Stefan Scheiber was born
in 1965 and is Swiss.
 GOVERNANCE
Bühler Annual Report 2017
117

06 Ian Roberts 07 Andreas R. Herzog 08 Dipak Mane

Chief Technology Officer
Ian Roberts graduated in Chemical
Engineering and obtained a PhD in
Process Engineering from the Univer-
sity of Wales (Great Britain). From 1997
to 2009, he held various management
positions at Nestlé, acting among other
positions as internal management con-
sultant at Swiss headquarters, as Direc-
tor of Innovation for Nestlé Mexico, and
as Director of the Chocolate Centre of
Excellence in Switzerland. He has been
Chief Technology Officer at Bühler since
2011. He is also a board member of
the academic institutions Wyss Insti-
tute and IFNC-EPFL. Ian Roberts was
awarded European CTO of the Year
2016 and is a Fellow of the Institute of
Chemical Engineers. Ian Roberts was
born in 1970 and is British.
Chief Financial Officer
After graduating with a degree in Busi-
ness Administration, Andreas R. Her-
zog continued his studies in various
postgraduate courses in marketing
and finance management at business
schools in France, Canada, and the US.
He has held management positions at
Ciba-Geigy, Swatch, and Swarovski.
During his professional career, he has
worked in Switzerland, Mexico, Co-
lombia, Ivory Coast, and Germany. An-
dreas R. Herzog has been the CFO of
Bühler Group since 2002. He is also a
Member of the Board of Bertrams AG,
CCS Holding AG, and the advisory
board of Commerzbank in Germany.
Andreas R. Herzog was born in 1957
and is Swiss.
Chief Human Resources Officer
After completing his studies in Chem-
ical Engineering at the Indian Institute
of Technology, Dipak Mane worked in
India for several years as an engineer
in various positions. He joined Bühler
India in 1992 as one of the first local
employees. Step by step, he built up
Bühler India, starting in 2000 as Manag-
ing Director and continuing from 2010
onward as Head of Region South Asia.
In July 2015, he took on the role of
Chief Human Resources Officer for the
Group. Dipak Mane was born in 1960
and is Indian.

05 06 07 08

05 Johannes Wick
CEO Grains & Food
Johannes Wick joined Bühler in 2014
and took over the management of
Grain Milling, the largest business area.
He has led the Bühler Grains & Food
business since April 1, 2016. Before
joining Bühler, he worked for more than
twenty years in different management
positions in the energy and infrastruc-
ture sector at ABB, ABB Alstom Power,
Iberdrola, and Alstom. Johannes Wick
earned a Master’s degree in engineer-
ing at the ETH in Zurich with an ex-
change at the Technical University in
Madrid. He expanded his knowledge
with an MBA from IESE in Barcelona
with an exchange at Sloan Manage-
ment School of Business at the Mas-
sachusetts Institute of Technology (MIT)
in Boston. Johannes Wick was born in
1969 and is Swiss.
118
ADVISORY BOARD OF
Urs Bühler Innovation Fund
Urs Bühler
Founder
Urs Bühler graduated as a mechanical en-
gineer from the Swiss Federal Institute of
Technology in Zurich (ETH). After holding
a number of positions in Switzerland and
abroad, he was appointed to the Corpo-
rate Management of Bühler AG in 1975, in
charge of sales and development. From
1980 to 1984, he was President of Bühler
GmbH, Braunschweig (Germany). In 1986,
Urs Bühler was appointed CEO of Bühler
in Uzwil. He handed over the executive
management duties of the company to
Calvin Grieder at the beginning of 2001.
Urs Bühler has been a Member of the
Board since 1981, from 1991 as its Vice
Chairman and from 1994 to 2014 as its
Chairman. He was a member of the board
of several Swiss companies. Urs Bühler
was born in 1943 and is Swiss.
Hal Gurley
Automation intelligence expert and
Founding Member of UBIF
Hal Gurley holds Bachelor’s and Master’s
degrees in Electrical Engineering from the
Georgia Institute of Technology (US), and
an Executive MBA from the Institute IMD
(Switzerland). Before moving to Switzer-
land in 1995, Gurley was President and
Founder of Automation Intelligence, an
advanced systems integration and soft-
ware development firm based in the US
specializing in real-time communications
and control systems for industrial, robotic,
and military applications. Prior to joining
Cisco in 2000, Gurley was Director Inter-
net/IP at Swisscom. During his 17-year
career at Cisco, Gurley held executive
leadership positions within Cisco’s pro-
fessional services, management con-
sulting, and sales organizations. From
2013 until his retirement in late 2016, Hal
Gurley had global responsibility for Cis-
co’s Cloud/Network Management and
Automation software sales and go-to-
market execution. He also served as
sole Managing Director and legal repre-
sentative of Cisco Systems (Switzerland)
GmbH. Hal Gurley was born in 1955. He
is Swiss and American.
Dr. Matthias Kaiserswerth
Managing Director,
Hasler Stiftung
Dr. Matthias Kaiserswerth studied Com-
puter Science at the Friedrich-Alexander
University in Erlangen-Nuremberg (Ger-
many) and at McGill University in Montreal
(Canada). He obtained his PhD in Engi-
neering from Erlangen University. From
1988 to 2015, Dr. Kaiserswerth worked
for IBM. He has spent almost his entire
career as a researcher in the areas of high-
performing communication and securi-
ty in Switzerland and the US apart from
mid-2002 to the end of 2005, when he
was responsible for global IBM business
relations with a large international indus-
trial customer. For more than 11 years Dr.
Matthias Kaiserswerth was Director of the
IBM Research Laboratory in Rüschlikon
(Switzerland) until he became Managing
Director of the nonprofit Hasler Stiftung in
Berne, in May 2015. This foundation sup-
ports education, research, and innovation
in information and communication tech-
nologies. Dr. Matthias Kaiserswerth was
born in 1956. He is Swiss and German.

Urs Bühler
Innovation Fund
Edward S. Steinfeld
Professor of Political Science;
Director, Thomas J. Watson, Jr. Insti-
tute for International Public Affairs,
Brown University
Edward S. Steinfeld studied Government
and Political Science at Harvard Univer-
sity (US) and holds a PhD in Political Sci-
ence. From 1996 to 2013, Steinfeld was a
Professor of Political Economy and Man-
agement at the Massachusetts Institute
of Technology (US). He also served as a
visiting scholar at the Tsinghua University
School of Public Policy and Management
in Beijing from 2012 to 2013. From 2005
to 2013, he was Director of the China
Energy Program at the MIT Industrial
Performance Center. In 2013, Steinfeld
moved to Brown University (US), where
he currently directs the Watson Institute
for International and Public Affairs as well
as the Brown China Initiative and is a
Professor of the Department of Political
Science. Beside his university engage-
ment, Edward Steinfeld is a member of
various boards of directors, academic
and advisory boards in the US, Asia, and
Europe. In 2012, he was appointed as a
member of the China Advisory Board of
Bühler Group. Edward Steinfeld was born
in 1966 and is American.
GOVERNANCE
Bühler Annual Report 2017
119
The Urs Bühler Innovation Fund (UBIF) was established in 2014
to support the company’s innovation efforts. Bühler invests
roughly 5% of its turnover in research and development every
year – developing breakthrough technologies and services
to strengthen Bühler’s market position as well as exploiting
new opportunities to stay ahead of the innovation curve. The
Advisory Board, managing the UBIF, focuses on accelerating
the innovation process within the company as well as on its
advancements in the field of the Internet of Things.
Ian Roberts
Chief Technology Officer, Bühler
Ian Roberts graduated in Chemical En-
gineering and obtained a PhD in Pro-
cess Engineering from the University
of Wales (Great Britain). From 1997 to
2009, he held various management po-
sitions at Nestlé, acting among other
positions as internal management con-
sultant at Swiss headquarters, as Direc-
tor of Innovation for Nestlé Mexico, and
as Director of the Chocolate Centre of
Excellence in Switzerland. He has been
Chief Technology Officer at Bühler since
2011. He is also a board member of the
academic institutions Wyss Institute and
IFNC-EPFL. Ian Roberts was awarded
European CTO of the Year 2016 and is
a Fellow of the Institute of Chemical En-
gineers. Ian Roberts was born in 1970
and is British.
120

COLLABORATION Permitted external activities of the Board of

Directors and the Executive Board
principles Bühler’s Articles of Incorporation provide for a certain re-
striction of the permitted external activities of the members
of the Board of Directors. Members of the Board of Direc-
tors may not hold more than four additional mandates in
listed companies, eight additional mandates against remu-
neration in unlisted companies, and eight unpaid additional
mandates. Not included in these limitations are mandates
in companies affiliated with Bühler, corporate mandates
of Bühler, and mandates in associations, foundations, em-
ployee welfare foundations, charitable organizations, and
other comparable structures. However, no Board Member
shall hold more than 20 such additional mandates. Mandates
refers to mandates in the supreme governing body of a legal
entity registered in the commercial register in Switzerland
or elsewhere. Members of the Executive Board are limited
to two mandates at public companies or other legal entities
against remuneration and four unpaid mandates.

Elections and term of office of the Board

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

Election date and attendance

For the year of first election to the Board of Directors, please
refer to the individual curriculum vitae of each Board Member
on pages 112–113. At the General Assembly, the Board of
Directors gives account to the shareholders on the atten-
dance of Board and Committee meetings by each individual
Board member.

Audit Committee
The Audit Committee shall monitor the integrity of the finan-
cial statements of the Company, including its Annual Report.
It promotes effective communication between the manage-
ment, internal and external audits.
The Audit Committee regularly reviews the functionality and
effectiveness of the internal control system. It supports the
Board of Directors in corporate governance issues.
Nomination and Compensation Committee
The Nomination and Compensation Committee determines
and agrees with the Board of Directors on the policy for the
compensation of the Members of the Board of Directors
and of the Executive Board. It approves the design of, and
determines targets for any performance-related compensa-
tion schemes operated by the Company and approves the
total annual payments made under such schemes. Within
the parameters of the agreed policy the Nomination and
Compensation Committee determines the total individual
compensation package for each Member of the Board of
Directors as well as of the Executive Board and prepares
the renumeration report.
Work method of the Board of Directors
and its committees
Board meetings are held as often as matters require or
upon the request of a Board Member, but at least four times
per year. The agenda of the meeting shall be announced
when it is convened, and pertinent information, if needed,
shall be sent 10 days before the meeting to each Board
Member. On unannounced items the Board can only decide
if all members of the Board are in attendance. Decisions may
also be taken by circulation, provided that none of the Board
Members request a formal meeting.
Meetings of the Board Committees are convened separately
from the Board meetings and scheduled as often as business
requires. The Board of Directors receives verbal updates after
each meeting of its Committees by their Chairperson.
GOVERNANCE
Bühler Annual Report 2017
121
Areas of responsibilities
The Board of Directors is responsible for the ultimate direc-
tion, strategic supervision, and control of the management
of the Company, and for other matters which are, by law,
under its responsibility. Such inalienable duties include,
essentially, (i) the ultimate management of the Company,
(ii) the determination of its organization, (iii) the structuring
of its accounting system and of the financial controlling,
(iv) financial planning, (v) the appointment, removal, and ulti-
mate supervision of persons entrusted with the management
and representation of the Company, (vi) the preparation of
the business report as well as the General Assembly and the
implementation of its resolutions.
Executive Board
The Executive Board is responsible for all areas of operational
management of the Company that are not reserved to the
Board of Directors. The Executive Board is chaired by the
Chief Executive Officer.
Urs Bühler Innovation Fund (UBIF)
The Advisory Board of the Urs Bühler Innovation Fund sup-
ports and advises the Board of Directors in innovation strat-
egy matters as well as in defining and executing an innova-
tion strategy that provides future-oriented answers to market
trends and the needs of current and future customers.
External auditors
The external auditors are appointed at the General Assembly
and present the outcome of the audit to the Audit Committee.
122

COMPLIANCE Effective corporate governance

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

An active Code of Conduct

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

Bühler regularly reviews its own principles of corporate gov-

ernance to ensure that they are up to date. Our Code of
Conduct has been reviewed and now also includes binding
standards for our business partners. The Code of Conduct
is being continuously adjusted to ongoing changes in the
environment. Furthermore, a new Supplier Code of Conduct
has been introduced.

Clear rules against corruption and bribery

The so-called ABC (Anti Bribery & Corruption) rules against
bribery and corruption unmistakably state that no violations
will be tolerated. They concern, in particular, collaboration
with agents. It is mandatory for all employees in procurement,
sales, and management functions to undergo a comprehen-
sive online training program (Web Based Training, WBT) after
they have joined the company and to pass a final test.

Compliance organizational structure
proves its effectiveness
Bühler further decentralized the organizational structure of
its compliance function. In eight Bühler regions a region-
al compliance officer acts as the first contact, except for
compliance cases involving special risks, which are handled
directly by the Compliance Board. This decentralization has
greatly streamlined and accelerated the related processes.
This is also because linguistic barriers have been eliminated,
and the regional compliance officers are familiar with local
regulations and conditions.
Compliance reporting
Clear accountability and defined actions ensure that com-
pliance-related incidents are systematically reported to the
central Compliance Board. This transparency is a precondi-
tion for ensuring that the company can gain the necessary
insight from such incidents and take the required measures
in response. We are happy to report that awareness of the
benefits of a transparent compliance reporting system have
become increasingly acknowledged.
Trade compliance
Free trade agreements can offer advantages in cross-border
traffic. In order to use these, high demands are placed on
the organization and documentation of the supply chain. In
addition, strict guidelines are set for the export industry in the
fields of export control, sanctions, and customs. Accordingly,
these tasks are steadily expanding and increasingly support-
ed by technical systems.
Group Internal Audit
The Internal Audit Department reports functionally to the
Chairwoman of the Audit Committee and administratively to
the Chief Financial Officer. Meetings between internal and
external auditors take place on a regular basis. The audit plan
is aligned with the strategy and key business risks. A yearly
risk assessment is prepared by Group Internal Audit. It is
the basis for the yearly audit plan, which is approved by the
Audit Committee. The results of the audits are discussed with
the management of the audited unit, and major topics are
presented to the Executive Board and the Audit Committee
and thereafter reported to the Board of Directors. In 2017, 15
worldwide audits were carried out.
GOVERNANCE
Bühler Annual Report 2017
123
Group Internal Audit is responsible for reviewing Group-wide
compliance with the Code of Conduct. Violations are report-
ed to the Audit Committee and the Executive Board.
Risk management
Bühler reviews the risk geography of the company on a
regular basis. The objective of the established risk process
is to review − on a continuous basis − the consequences,
probabilities, impacts, and mitigation measures of the iden-
tified risks. This process is the responsibility of the Board
of Directors.
Quality system
With the renewal of the certificates for another three years,
Bühler continues to meet the highest internationally recog-
nized quality and environmental standards. With the new ISO
revision 2015, both the quality and environmental standards
structures were harmonized with the focus on risk-based
thinking in all business processes. This was the result of the
multi-site assessment sampling at our Bühler sites: Bühler AG
(BUZ), Uzwil, Switzerland; Bühler Management AG (BMGT),
Uzwil, Switzerland; Bühler + Scherler AG (SCHS), St. Gal-
len, Switzerland; Bühler CZ s.r.o. Zamberk (BZAM), Czech
Republic; Bühler GmbH (BBIN), Reichshof, Germany;
Buhler (China) Holding Co. Ltd. (BCHN), Wuxi, China;
Wuxi Buhler Machinery Manufacturing Co. Ltd. (BWUX),
China; Buhler (Wuxi) Commercial Co. Ltd. (BCOM), Wuxi,
China, which all successfully passed SGS audits. The
ISO 9001:2015 and ISO 14001:2015 certificates are valid
until November 16, 2020.
SEDEX/SMETA 4 Pillars recertification
In addition, Headquarters Bühler AG (BUZ), Uzwil, Swit-
zerland successfully passed the SEDEX/SMETA 4 audit
of the four main pillars (labor standards, health and safety
standards, environmental standards, and business ethics).
SGS granted the letter of conformity, which is valid until Sep-
tember 1, 2020.
124

REMUNERATION Recruit, develop, and align

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

Remuneration governance
Overview
The Members of the Nomination and Compensation Commit-
tee (NCC) are elected by the General Assembly. The Board
of Directors (BoD) appoints the Chairman from among the
elected members. The NCC supports the BoD in the re-
muneration issues defined here, with responsibilities being
retained by the BoD. The NCC is in charge of defining and
periodically reviewing the Remuneration Policy. It prepares
all the relevant decisions of the BoD in the area of remuner-
ation, for the Members of the BoD, Members of the Exec-
utive Board (EB), and submits its proposals (remuneration
type and annual remuneration) to the BoD. In addition, it
submits proposals to the BoD defining the annual goals for
success- and performance-related remuneration, and then
defines the circle of potential recipients of this success- and
performance-related remuneration.

Nomination and Compensation Committee

For the year under review, the members of the NCC were
Konrad Hummler (Chairman), Frank N. J. Braeken, Karin
Bühler, and Maya Bühler. Permanent invitees were Calvin
Grieder, Chairman of the Board of Directors; Stefan Scheiber,
CEO; Dipak Mane, Chief HR Officer; and Christof Oswald,
Head of HR. Four meetings were held. The NCC Chairman
reported to the BoD after each meeting, and the minutes
were kept and distributed in a timely manner.

Authority chart

Subject Recommendation Final approval

Definition of Remuneration System and Policy for NCC Board of Directors

remuneration paid to the Board of Directors and the
Executive Board

Development of variable remuneration schemes NCC Board of Directors

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

Definition of individual remuneration, including bonus, NCC Board of Directors

variable portion, shares-related remuneration, etc., to the General Assembly
Executive Board and the Board of Directors
 GOVERNANCE
Bühler Annual Report 2017
125

Remuneration principles
Bühler is committed to performance- and market-related
remuneration. Success as a result of sound individual per-
formance plus the success of the organization will impact
the remuneration.

All employees, including the Executive Board, shall un-

dergo a formalized annual performance appraisal process
(Employee Performance Management, EPM). The Individual
Performance Goals are defined and agreed upon jointly with
each employee at the start of the fiscal year. The financial
success of the organization, which is measured on the basis
of EBIT, also impacts performance-related remuneration.

Principles of Remuneration Policy

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

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

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

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

Bühler values: The Remuneration Policy is oriented toward the Bühler values of TRRIP (Trust, Recognition,
TRRIP Respect, Involvement, Passion). These values are incorporated in the above-mentioned
principles and determine the “Bühler way of doing business” in all respects.
126

REMUNERATION
elements

Overall remuneration model for employees and the Executive Board

Instrument Purpose Influencing factors

Fixed annual Monthly cash Regular, predictable Sphere of work,

basic salary remuneration remuneration for the complexity, and
specific function responsibility of the
function, competen-
cies, and experience
of the function owner,
benchmarks

Performance- Annual cash Remuneration for Success of the

related variable remuneration performance organization (EBIT)
portion and individual per-
formance (EPM) on
an annual basis

Deferred compen- Deferred compensation Sharing in long-term Hierarchical position

sation plan plan with a vesting period success of the function within
of three years the organization

Other employee Pension and insurance Protection against Local legislation and
benefits schemes; other fringe risks and coverage of market practice
benefits expenses
 GOVERNANCE
Bühler Annual Report 2017
127

Remuneration of the Board of Directors

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

Office

Basic remuneration Membership in the Board of Directors

Additional Chairmanship of the Board of Directors

remuneration Vice Chairmanship of the Board of Directors

Chairmanship of the Audit Committee

Activity in the Audit Committee

Chairmanship of the Nomination and Compensation Committee

Activity in the Nomination and Compensation Committee

Other Committee Chairmanship/Memberships

Other activities

Expenses Only expenses incurred are reimbursed

Remuneration of the Executive Board

The Members of the Executive Board shall receive a basic
salary, a variable cash remuneration portion, employer con-
tributions to pension funds and social security institutions,
and long-term remuneration in the form of a deferred com-
pensation plan with a vesting period of three years. In addi-
tion, the remuneration package also includes transportation
and housing allowance plus a life insurance premium.
128
 FINANCIAL REPORT
Bühler Annual Report 2017
129

FINANCIAL
REPORT
FINANCIAL REPORT BÜHLER GROUP 130
Consolidated income statement 131
Consolidated statement of other comprehensive income 132
Consolidated balance sheet 133
Consolidated statement of changes in equity 134
Consolidated statement of cash flows 136
Notes to the financial statements 137
Report of the group auditor Bühler Group 182
FINANCIAL STATEMENTS BÜHLER HOLDING AG 187
Income statement Bühler Holding AG 188
Balance sheet Bühler Holding AG 189
Notes to the financial statements Bühler Holding AG 190
Report of the statutory auditor Bühler Holding AG 192
130

Financial Report
Bühler Group
 FINANCIAL REPORT
Bühler Annual Report 2017
131

Consolidated income statement

2017 2016
Notes CHF m CHF m

Revenue 3.1 2,671.7 2,448.6

Other operating income 3.2 21.4 22.0

Total operating income 2,693.1 2,470.6

Cost of materials –1,226.0 –1,047.4

Changes in inventories of finished goods and work in progress 55.2 5.1
Employee benefit expenses 3.3 –825.7 –793.2
Other operating expenses 3.4 –441.3 –408.2
Net result from associates 4.3 2.0 4.6

Operating result before interest, taxes, depreciation and amortization (EBITDA) 257.3 231.5

Depreciation and amortization 4.1/4.2 –52.5 –57.9

Operating result before interest and taxes (EBIT) 204.8 173.6

Interest income and expenses 3.5 2.7 3.0

Other financial income and expenses 3.5 10.7 3.2

Financial result 13.4 6.2

Profit before taxes 218.2 179.8

Income taxes 3.6 –44.0 –36.5

Net profit 174.2 143.3

Attributable to:
– Owners of the parent 168.3 136.3
– Non-controlling interests 5.9 7.0
132

Consolidated statement of other comprehensive income

2017 2016
Notes CHF m CHF m
Net profit 174.2 143.3

Other comprehensive income

Translation differences of foreign operations 6.2 –5.2
Net gain (loss) on hedge of net investment 20.9 –1.1
– Tax effect –1.6 0.1

Cash flow hedges

– Change in cash flow hedges 15.2 2.4
– Tax effect –2.5 –0.4

Other comprehensive income to be reclassified to profit or loss in subsequent periods 38.2 –4.2

Remeasurements of defined benefit plans 4.12.3 101.4 –1.0

– Tax effect –18.4 1.6

Other comprehensive income not to be reclassified to profit or loss in subsequent periods 83.0 0.6

Total other comprehensive income 121.2 –3.6

Total comprehensive income 295.4 139.7

Attributable to:
– Owners of the parent 289.0 133.5
– Non-controlling interests 6.4 6.2
 FINANCIAL REPORT
Bühler Annual Report 2017
133

Consolidated balance sheet

2017 2016
Assets Notes CHF m CHF m

Property, plant and equipment 4.1 471.8 415.1

Intangible assets 4.2 266.6 261.6
Investments in associates 4.3 27.5 33.5
Long-term financial assets 4.4 175.8 108.9
Deferred tax assets 3.6.4 46.4 43.0

Non-current assets 988.1 862.1

Assets classified as held for sale 4.3 25.7 0.0

Inventories 4.5 445.3 365.6
Net assets of production orders in progress 4.6 376.1 326.9
Trade accounts receivable 4.7 583.9 532.3
Other accounts receivable, prepayments and accrued income 4.7 137.8 131.0
Current income tax assets 3.7 6.6
Marketable securities 2.3.2 63.4 60.2
Cash and cash equivalents 4.8 832.5 431.3

Current assets 2,468.4 1,853.9

Total assets 3,456.5 2,716.0

Equity and liabilities

Share capital 4.13 15.0 15.0

Capital reserves 185.1 185.1
Other reserves/retained earnings 1,321.2 1,048.2

Equity attributable to the owners of the parent 1,521.3 1,248.3

Non-controlling interests 28.5 28.2

Total equity 1,549.8 1,276.5

Long-term financial liabilities 2.2 530.8 122.7

Deferred tax liabilities 3.6.4 108.1 78.4
Defined benefit obligations 4.12.4 76.6 156.3
Long-term provisions 4.10 27.4 24.6

Non-current liabilities 742.9 382.0

Short-term financial liabilities 2.2 33.4 29.7

Trade accounts payable 4.9 266.8 242.2
Net liabilities of production orders in progress 4.6 367.7 366.0
Short-term provisions 4.10 55.3 44.7
Other short-term liabilities, accruals and deferred income 4.11 418.4 350.7
Current income tax liabilities 22.2 24.2

Current liabilities 1,163.8 1,057.5

Total liabilities 1,906.7 1,439.5

Total equity and liabilities 3,456.5 2,716.0

134

Consolidated statement of changes in equity

Retained
Share capital Capital reserve earnings
Notes CHF m CHF m CHF m

January 1, 2016 15.0 185.1 1,121.7

Dividends paid 6.4 –15.0
Net profit 136.3
Other comprehensive income 0.6

December 31, 2016 15.0 185.1 1,243.6

January 1, 2017 15.0 185.1 1,243.6

Dividends paid 6.4 –18.0
Changes in non-controlling interests 1.5 2.0
Net profit 168.3
Other comprehensive income 83.0

December 31, 2017 15.0 185.1 1,478.9

 FINANCIAL REPORT
Bühler Annual Report 2017
135

Foreign Equity
Available- currency Total other attributable
for-sale translation reserves and to the owners Non-controlling
Hedge reserve reserve reserves retained earnings of the parent interests Total equity
CHF m CHF m CHF m CHF m CHF m CHF m CHF m

–3.8 0.8 –189.0 929.7 1,129.8 24.8 1,154.6

–15.0 –15.0 –2.8 –17.8
136.3 136.3 7.0 143.3
2.0 –5.4 –2.8 –2.8 –0.8 –3.6

–1.8 0.8 –194.4 1,048.2 1,248.3 28.2 1,276.5

–1.8 0.8 –194.4 1,048.2 1,248.3 28.2 1,276.5

–18.0 –18.0 –4.1 –22.1
2.0 2.0 –2.0 0.0
168.3 168.3 5.9 174.2
12.7 25.0 120.7 120.7 0.5 121.2

10.9 0.8 –169.4 1,321.2 1,521.3 28.5 1,549.8

136

Consolidated statement of cash flows

2017 2016
Notes CHF m CHF m

Profit before taxes 218.2 179.8

Financial result 3.5 –13.4 –6.2

Operating result before interest and taxes (EBIT) 204.8 173.6

Depreciation and amortization 4.1/4.2 52.5 57.9
Other items not affecting cash flow 5.9 1.8
Changes in provisions 8.6 –7.8
Changes in trade accounts receivable –46.6 –25.7
Changes in inventories –68.4 –17.4
Changes in trade accounts payable 24.1 1.2
Changes in net assets/liabilities of production orders in progress –43.4 –14.7
Changes in other net operating assets 53.1 23.3
Gains/losses on disposal of fixed assets 2.0 0.2
Interest received 4.4 3.6
Interest paid –1.6 –1.6
Income taxes paid –36.9 –32.4

Cash flow from operating activities 158.5 161.9

Purchase of property, plant and equipment –93.1 –67.7

Disposal of property, plant and equipment 7.9 9.5
Purchase of intangible fixed assets –6.7 –3.2
Cash flow from business combinations of group companies, net of cash acquired –18.0 –0.9
Purchase of marketable securities –21.5 –22.4
Disposal of marketable securities 30.4 29.9
Purchase of long-term financial assets –47.2 –6.2
Disposal of long-term financial assets 7.5 7.3
Dividends received 1.7 3.9

Cash flow from investing activities –139.0 –50.0

Proceeds from financial liabilities 420.8 0.0

Repayment of financial liabilities –17.6 –7.6
Dividends paid of Bühler Holding AG –18.0 –15.0
Dividends paid to non-controlling interests –4.1 –2.8
Acquisitions and other transactions with non-controlling interests –1.9 0.0

Cash flow from financing activities 379.2 –25.3

Translation differences 2.5 –0.8

Changes in cash and cash equivalents 401.2 85.8

Cash and cash equivalents at the beginning of period 431.3 345.5

Cash and cash equivalents at the end of period 832.5 431.3

Notes to the financial statements
1. Group information
1.1 General information
The consolidated financial statements of the Bühler Group
and its subsidiaries (collectively, the Group) for the year end-
ed December 31, 2017, were authorized for issue in accor-
dance with a resolution of the Board of Directors on February
6, 2018. Bühler Holding AG (the Company or the parent) is
a company incorporated and domiciled in Switzerland whose
shares are privately held. The registered office is located at
Uzwil, Switzerland.
The Group is a globally active solutions provider for the
industrial manufacturing of food and advanced materials.
The worldwide solutions portfolio contains engineering, ap-
plication development, manufacturing, services, and training.
These financial statements are the consolidated financial
statements of Bühler Holding AG and its subsidiaries. The list
of significant Group companies can be found on page 141.
1.2 Use of estimates
The preparation of the consolidated financial statements in
accordance with IFRS requires management to make esti-
mates and assumptions that affect the reported amounts of
revenue, expenses, assets, and liabilities and the related
disclosures at the date of the financial statements. These
estimates are based on management’s best knowledge
of current events and possible future measures. However,
actual results could differ from those estimates.
If in the future such estimates and assumptions, which are
based on management’s best knowledge at the date of the
financial statements, deviate from the actual circumstances,
the original estimates and assumptions will be modified as
appropriate in the year in which the circumstances change.
FINANCIAL REPORT
Bühler Annual Report 2017
137
The consolidated financial statements of the Bühler Group
have been prepared in accordance with the International
Financial Reporting Standards (IFRS) as issued by the Inter-
national Accounting Standards Board (IASB) and comply
with Swiss law. The consolidated financial statements are
based on the single-entity financial statements of the Group
companies, which are prepared in accordance with consis-
tent accounting principles. The consolidated financial state-
ments are prepared under the historical cost convention.
Any exceptions to this general rule are outlined in the respec-
tive note. The overall accounting principles applied to the
Annual Report as a whole are described below. The account-
ing policies related to specific line items are described in the
notes to which they relate.
Due to rounding, the numbers do not necessarily correspond
exactly with the totals.
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 goodwill (Note 4.2) and, to a lesser extent, defined
benefit obligations (Note 4.12), deferred tax assets (Note 3.6),
provisions, and contingent liabilities (Note 4.10) at the end of
the reporting period.
Estimates related to specific line items are described in the
notes to which they relate.
138

1.3 Foreign currency translation

The individual financial statements of the Group companies
are measured using the currency of the primary economic
environment in which the entity operates (“the functional cur-
rency”) and are translated into Swiss francs for consolidation
purposes. Year-end exchange rates are used for the balance
sheet and the average exchange rate for the income state-
ment, statement of other comprehensive income, and cash
flow statement.
Differences resulting from the application of these different
exchange rates for the balance sheet and the income state-
ment and from equity transactions are recognized directly in
the consolidated statement of other comprehensive income.
Goodwill arising on the acquisition of a foreign entity is ex-
pressed in the functional currency of the foreign operation
and is translated at the closing rate.
Foreign currency transactions translated into the functional
currency are accounted for at the exchange rates prevailing
at the date of the transactions; gains and losses resulting
from the settlement of such transactions and from the trans-
lation of monetary assets and liabilities denominated in for-
eign currencies are recognized in the income statement,
except when they are deferred outside the income statement
as qualifying cash flow hedges.
Foreign exchange differences arising on monetary items that
form part of a company’s net investment in a foreign opera-
tion are reclassified to equity (currency translation adjust-
ment) in the consolidated financial statements and are only
fully recycled to the income statement when the Group loses
control of a subsidiary or loses significant influence in an as-
sociate.
In 2016, the IASB issued IFRIC Interpretation 22, which be-
comes effective for annual periods beginning on or after
January 1, 2018. The interpretation clarifies the date of trans-
action for the exchange rate to be used for considerations
received or paid in advance for foreign currency-denominat-
ed contracts. This interpretation is not expected to have a
material impact on the income statement or the balance
sheet of the Group.
For foreign currency translation, the Bühler Group used the
following exchange rates:

Average exchange rates Closing rates 31.12.

2017 2016 2017 2016
CHF CHF CHF CHF
ARS 0.0597 0.0669 0.0530 0.0660
BRL 0.3086 0.2842 0.2960 0.3140
CAD 0.7589 0.7439 0.7790 0.7570
CNY 0.1458 0.1483 0.1502 0.1477
CZK 0.0423 0.0403 0.0458 0.0398
EUR 1.1116 1.0902 1.1710 1.0760
GBP 1.2684 1.3355 1.3190 1.2620
INR 0.0151 0.0147 0.0153 0.0151
JPY 0.0088 0.0091 0.0087 0.0087
MXN 0.0522 0.0528 0.0499 0.0495
SGD 0.7132 0.7137 0.7337 0.7086
THB 0.0290 0.0279 0.0301 0.0285
USD 0.9846 0.9849 0.9820 1.0270
ZAR 0.0740 0.0672 0.0797 0.0738

1.4 Principles of consolidation
Subsidiaries are all entities over which the Group has control.
The Group controls an entity when the Group is exposed to,
or has rights to, variable returns from its involvement with the
entity and has the ability to affect those returns through its
power to direct the activities of the entity. The cost of an ac-
quisition is measured at the fair value of the consideration
transferred at the date of exchange. For each business com-
bination, the acquirer measures the non-controlling interest
in the acquiree either at fair value or at the proportionate
share of the acquiree’s identifiable net assets. Acquisition
costs incurred are expensed in the income statement. Iden-
tifiable 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 busi-
ness, it assesses the financial assets and liabilities assumed
for appropriate classification and designation in accordance
with the contractual terms, economic circumstances, and
pertinent conditions as at the acquisition date.
If the business combination is achieved in stages, the acqui-
sition date fair value of the Group’s previously held equity
interest in the acquiree is remeasured to fair value at the date
control is obtained. Any gain or loss arising from such
remeasurement is recognized in the income statement.
Any contingent consideration to be transferred by the Group
is recognized at fair value at the acquisition date. Subsequent
changes to the fair value of the contingent consideration are
recognized in the income statement.
FINANCIAL REPORT
Bühler Annual Report 2017
139
Subsidiaries are consolidated from the date on which control
is transferred to the Group and are no longer consolidated
from the date that control ceases.
A change in the ownership interest of a subsidiary, without
a loss of control, is accounted for as an equity transaction.
All intercompany transactions and balances between Group
companies are eliminated in full.
Investments in associated companies are accounted for us-
ing the equity method of accounting. These are companies
over which the Group generally holds between 20 % and
50 % of the voting rights and has significant influence but
does not exercise control. Goodwill arising on the acquisition
is included in the carrying amount of the investment in asso-
ciated companies. The Group does not recognize further
losses when the carrying amount of the investment together
with any long-term interest in an associated company reach-
es 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 clas-
sified as available for sale. Changes in fair value are recog-
nized directly in other comprehensive income.
140

1.5 Additions and disposals of Group companies

Additions

2017
Several small acquisitions are individually and in aggregate
not significant.

Refer to Note 4.3 for transactions with associates.

2016
There were no significant additions in 2016.

Disposals

Any non-current assets held for sale and discontinued oper-
ations are presented separately on the face of the balance
sheet. This includes all those assets associated with the dis-
continuation of entire lines of business or geographical areas
of operation, which are to be realized through a sale trans-
action 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 dispos-
al 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 income
statement 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 income statement.
The amendments to IFRS 12 as part of the annual improve-
ment cycle 2014–2016 became effective on January 1, 2017.
These amendments do not have a material impact on the
results or financial position of the Group.
There was no significant disposal in 2017 and 2016.
 FINANCIAL REPORT
Bühler Annual Report 2017
141

1.6 Significant Group companies

Share capital Holding/
in millions of Participation Financing
Name of company Country local currency rate Company Held by
Switzerland
Bühler Holding AG, Uzwil CH CHF 15.0 C
Bühler AG, Uzwil CH CHF 30.0 100.0% Bühler Holding AG, Uzwil
Bühler-Immo Betriebs AG, Uzwil CH CHF 0.1 100.0% Bühler Holding AG, Uzwil
Bühler Management AG, Uzwil CH CHF 0.1 100.0% Bühler Holding AG, Uzwil
UBIF AG, Uzwil CH CHF 4.0 100.0% Bühler Holding AG, Uzwil
Bühler Insect Technology Solutions AG, CH CHF 1.5 100.0% Bühler Holding AG, Uzwil
Uzwil
Bühler + Scherler AG, St. Gallen CH CHF 0.8 60.0% Bühler Holding AG, Uzwil
Europe
Bühler CZ s.r.o., Zamberk CZ CZK 265.2 100.0% Bühler Holding AG, Uzwil
Bühler Deutschland GmbH, Beilngries DE EUR 0.025 100.0% Bühler AG, Uzwil
Bühler GmbH, Beilngries DE EUR 16.0 100.0% Bühler Deutschland GmbH,
Beilngries
Bühler Deutschland Holding GmbH, DE EUR 0.025 100.0% C Bühler AG, Uzwil
Braunschweig
Bühler Barth GmbH, Freiberg a.N. DE EUR 1.137 100.0% Bühler Deutschland Holding GmbH,
Braunschweig
Bühler GmbH, Reichshof DE EUR 0.275 100.0% Bühler Deutschland Holding GmbH,
Braunschweig
Bühler GmbH, Braunschweig DE EUR 12.629 100.0% Bühler Deutschland Holding GmbH,
Braunschweig
Leybold Optics Verwaltungs GmbH, DE EUR 0.444 100.0% C Bühler Deutschland Holding GmbH,
Alzenau Braunschweig
Bühler Alzenau GmbH, Alzenau DE EUR 0.05 100.0% Leybold Optics Verwaltungs GmbH,
Alzenau
Bühler GmbH, Leingarten DE EUR 2.432 100.0% Bühler Deutschland Holding GmbH,
Braunschweig
Buhler S.A., Madrid ES EUR 0.06 100.0% Bühler Holding AG, Uzwil
Bühler Haguenau S.A.S., Haguenau FR EUR 0.2 100.0% Bühler Holding AG, Uzwil
Buhler UK Holdings Ltd., London GB GBP 3.6 100.0% C Bühler Holding AG, Uzwil
Buhler UK Ltd., London GB GBP 1.25 100.0% Buhler UK Holdings Ltd., London
Control Design & Development Ltd., GB GBP 0.0001 100.0% Buhler UK Holdings Ltd., London
Peterborough
Buhler Brescia s.r.l., Brescia IT EUR 0.01 100.0% Bühler AG, Uzwil
Buhler S.p.A., Milano IT EUR 2.665 100.0% Bühler Holding AG, Uzwil
Bühler B.V., Oldenzaal NL EUR 0.034 100.0% Bühler Holding AG, Uzwil
142

Share capital Holding/

in millions of Participation Financing
Name of company Country local currency rate Company Held by
North America
Buhler US Holding Inc., Minneapolis US USD 0.05 100.0% C Bühler Holding AG, Uzwil
Buhler Aeroglide Corporation, Cary US USD 0.004 100.0% Buhler US Holding Inc., Minneapolis
Buhler Inc., Minneapolis US USD 3.2 100.0% Buhler US Holding Inc., Minneapolis
BuhlerPrince Inc., Holland US USD 0.375 100.0% Buhler US Holding Inc., Minneapolis
Latin America
Buhler S.A., Buenos Aires AR ARS 1.1 100.0% Bühler Holding AG, Uzwil
Buhler S.A., Joinville BR BRL 20.685 100.0% Bühler Holding AG, Uzwil
Buhler Sanmak Industria BR BRL 10.0 100.0% Bühler Holding AG, Uzwil
de Maquinas Ltda., Blumenau
Buhler S.A. de C.V., Toluca MX MXN 50.0 100.0% Bühler Holding AG, Uzwil
Middle East and Africa
Buhler (Private Joint Stock Co.), IR IRR 9,250.0 100.0% Bühler Holding AG, Uzwil
Teheran
Buhler Limited, Nairobi KE KES 900.0 100.0% Bühler Holding AG, Uzwil
Buhler (Pty) Ltd., Johannesburg ZA ZAR 141.4 100.0% Bühler Holding AG, Uzwil
Buhler Properties (Pty) Ltd., ZA ZAR 0.0001 100.0% Buhler (Pty) Ltd., Johannesburg
Johannesburg
 FINANCIAL REPORT
Bühler Annual Report 2017
143

Share capital Holding/

in millions of Participation Financing
Name of company Country local currency rate Company Held by
Asia
Bangsheng Bio-Technology Co. Ltd., CN CNY 8.51 100.0% Bühler Holding AG, Uzwil
Guangzhou
Buhler (Changzhou) Machinery Co. Ltd., CN CNY 320.0 100.0% Buhler (China) Holding Co. Ltd., Wuxi
Liyang City
Buhler (China) Holding Co. Ltd., Wuxi CN USD 123.6 100.0% C Bühler Holding AG, Uzwil
Buhler (China) Machinery CN CNY 150.0 100.0% Buhler (China) Holding Co. Ltd., Wuxi
Manufacturing Co. Ltd., Wuxi
Buhler (Guangzhou) Food CN CNY 51.0 100.0% Buhler (China) Holding Co. Ltd., Wuxi
Machinery Co. Ltd., Guangzhou City
Buhler (Wuxi) Commercial Co. Ltd., Wuxi CN USD 5.5 100.0% Buhler (China) Holding Co. Ltd., Wuxi
Buhler Sortex Optical Equipment CN CNY 18.0 100.0% Buhler (China) Holding Co. Ltd., Wuxi
(Hefei) Co. Ltd., Hefei
Buhler Aquatic Equipment (Changzhou) CN CNY 10.0 100.0% Buhler (China) Holding Co. Ltd., Wuxi
Co. Ltd., Liyang City
Wuhan Mingbo Electromechanical CN CNY 5.0 100.0% Buhler (China) Holding Co. Ltd., Wuxi
Equipment Co. Ltd., Wuhan
Buhler (Changzhou) Insect Technologies CN CNY 8.0 80.0% Buhler (China) Holding Co. Ltd., Wuxi
Co. Ltd., Changzhou
Buhler Equipment (Xian) Co. Ltd., Xi’an CN CNY 28.0 100.0% Bühler Holding AG, Uzwil
Buhler Food Ingredients CN USD 3.8 100.0% Bühler Holding AG, Uzwil
(Guangzhou) Co. Ltd., Guangzhou
Buhler Mechanical Equipment CN USD 4.0 100.0% Bühler Holding AG, Uzwil
(Shenzhen) Co. Ltd., Shenzhen
Wuxi Buhler Machinery CN USD 23.0 51.0% Bühler Holding AG, Uzwil
Manufacturing Co. Ltd., Wuxi
Buhler Leybold Optics Equipment (Beijing) CN CNY 10.1 100.0% Bühler Alzenau GmbH, Alzenau
Co. Ltd., Beijing
Buhler (India) Private Ltd., Bangalore IN INR 100.0 100.0% Bühler Holding AG, Uzwil
Buhler K.K., Yokohama JP JPY 250.0 100.0% Bühler Holding AG, Uzwil
Buhler Asia Private Limited, Singapore SG USD 14.375 100.0% C Bühler Holding AG, Uzwil
Buhler Asia Vietnam Limited, Long An VN VND 149,815.5 98.0% Buhler Asia Private Limited, Singapore
Buhler (Thailand) Ltd., Bangkok TH THB 110.0 100.0% Buhler Asia Private Limited, Singapore
PT Buhler Indonesia, Jakarta ID IDR 68,500 100.0% Buhler Asia Private Limited, Singapore

No significant change to prior year.

144

2. Financial risk management

The Board of Directors of the Group assesses corporate risks
by undertaking systematic risk identification and analysis.
Based on this assessment, the measures required for risk
management in the Group are defined and monitored. The
corresponding meeting of the Board of Directors took place
on December 18, 2017.
Capital management. One of the Group’s main objectives
is to apply a well-managed capital management system in
order to continuously secure the Group's liquidity and gen-
erate added value for all stakeholders. Another goal is to
optimize the cost of capital. Group management reviews the
capital structure of the Group and the equity of Group com-
panies on a regular basis. As at December 31, 2017, the
equity ratio stood at 44.8% (prior year: 47.0%).
As a result of its global activities, the Group is exposed to
financial market risks (currency risk, interest rate risk, and
price risk), credit risks, and liquidity risks. Financial risk man-
agement focuses on the management of currency risk, cred-
it risk, and liquidity risk. Derivative financial instruments are
used to hedge certain risks. The risk management function
is exercised by the Group Treasury department in close col-
laboration with the operating units, as well as in accordance
with treasury directives.
Market risk. The Group is exposed to market risks that relate
primarily to exchange rates. The Group monitors these risks
on an ongoing basis and reports to the Finance Committee
every month. In order to manage the volatility associated with
these risks, the Group employs financial derivative instru-
ments 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 hedging contracts are concluded with a
view to offsetting exchange-rate related changes in the value
of assets, liabilities, and future sales and purchase transac-
tions. The Group uses currency forwards and options for this
purpose. In prior periods hedge accounting was applied for
transactions exceeding a certain threshold. To further reduce
the volatility arising from exchange rate movements, begin-
ning in 2017 the threshold was reduced to zero. The Group
continues to be exposed mainly to currency risks resulting
from the translation of foreign subsidiaries into Swiss francs,
which are not hedged. Net investments in foreign Group
companies are longterm in nature. Their fair value changes
with exchange rates. Over the very long term, however, the
change in the inflation rate should match the correspond-
ing 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, the Group only
hedges its investments in foreign Group companies in ex-
ceptional cases.
The following table shows the hypothetical repercussions of
changes in the key currency pairs on profit after taxes. The
translation risks were for the first time considered in the vol-
atility calculation in 2017. The comparison period was restat-
ed according to the same principles. The volatility value used
in the calculation is that of one year historical volatility as per
December 31.

Currency
2017 pair EUR/CHF USD/CHF CNY/CHF GBP/CHF

Volatility 6.2% 7.8% 7.0% 8.3%

Effect on profit after taxes (rate increase) CHF m 0.9 0.8 3.0 1.0
Effect on profit after taxes (rate decrease) CHF m –0.9 –0.8 –3.0 –1.0
Effect on equity (rate increase) CHF m 40.6 –7.1 5.0 –0.1
Effect on equity (rate decrease) CHF m –34.7 7.1 –5.0 0.1

Currency
2016 pair EUR/CHF USD/CHF CNY/CHF GBP/CHF

Volatility 7.5% 10.3% 10.4% 10.8%

Effect on profit after taxes (rate increase) CHF m 0.6 1.2 4.0 1.8
Effect on profit after taxes (rate decrease) CHF m –0.6 –1.2 –4.0 –1.8
Effect on equity (rate increase) CHF m 2.9 –5.3 –0.2 –0.2
Effect on equity (rate decrease) CHF m –2.9 5.3 0.2 0.2
 FINANCIAL REPORT
Bühler Annual Report 2017
145

Commodity risk. The Group can be exposed to a certain
degree to commodity price risk due to fluctuations in the
prices of commodities required in the production process.
The Group does not conclude any significant futures, for-
wards, or options to hedge future commodity purchases.
Equity security risk. The Group can buy shares in other
companies or make investments in stock indices or funds in
order to invest its liquid funds. It does so in accordance with
the treasury strategy approved by the Board of Directors.
This sets precise limits, including investments in shares.
Interest rate risk. Interest rate risk arises from changes in
interest rates that may affect the net assets and results.
These risks are managed and monitored centrally. Commit-
ments from the bond obligation are interest rate fixed. The
exposure of the Group to interest rate changes was not
material during the current and previous reporting period.
Liquidity risk. Liquidity risk refers to the risk of the Group
being unable to fulfill its obligations when due or at a reason-
able 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. The
Group manages its liquidity risk on a consolidated basis,
taking into account business policy, tax, financial, and regu-
latory considerations. Free cash flow is used as a source of
financing. The proceeds from the bond issued in 2017 will
be used exclusively to finance the acquisition of Haas, the
investments in the production and innovation site of Uzwil,
and investments in digital business models. If required, the
Group can use additional lines of credit from banks. Group
management monitors the Group’s net liquidity position by
means of ongoing forecasts based on expected cash flows.
Information on the maturity analysis is disclosed in Note 2.2.

Credit risk. Credit risks arise in connection with investments

of liquid funds, derivative financial instruments, and receiv-
ables from customers. In order to minimize potential losses
on customers’ receivables, an Operational Risk Management
(ORM) guideline has been drawn up. The evaluation of our
customers’ financial reliability and/or the terms of payment
and hedging on our deliveries are key concerns in this re-
spect. 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 ap-
proximation of the receivables’ fair value. The book values
stated represent the maximum credit risk. The default risk
on investments, derivative financial instruments, money mar-
ket contracts, current-account deposits, and time deposits
is minimized by selecting counterparties with at least an in-
vestment grade rating and adequate diversification. The risks
are monitored rigorously and kept within stipulated parame-
ters. Group guidelines ensure that the Group’s credit risk
vis-à-vis financial institutions is limited. The limits set are
regularly monitored and adjusted. The Group does not ex-
pect to incur any material 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.

Information on the analysis of outstanding receivables and

allowance for bad debts is disclosed in Note 4.7.
146

2.1 Financial assets

A distinction is made between the following three categories:
A Financial assets “at fair value through profit or loss”
are generally acquired with the intention of generating
a profit from short-term price fluctuations.
A “Loans and receivables” include loans granted and
accounts receivable.
A All other financial assets are classified as “available for sale.”
Financial assets “at fair value through profit or loss” are rec-
ognized on acquisition at cost and subsequently measured
at fair value, with fair value changes recognized in the finan-
cial result in the period in which they arise.
“Available for sale” financial assets are measured subsequent
to their initial recognition at fair value, with unrealized gains
and losses recognized in other comprehensive income.
When the financial asset is either impaired or disposed of,
the cumulative gain or loss previously recognized in the oth-
er comprehensive income is reclassified from equity to the
income statement. Provided that fair value cannot be reliably
determined, available-for-sale financial assets are measured
at cost. This applies to financial assets that do not have a
quoted market price in an active market and decisive param-
eters cannot be reliably estimated to be used in valuation
models for the determination of fair value.
In 2014, the IASB issued the final version of IFRS 9 Financial
Instruments, which replaces IAS 39 and all previous versions
of IFRS 9. IFRS 9 is effective for annual periods beginning on
or after January 1, 2018. The Group anticipates the following
impacts on the different financial statement line items:
A Cash and cash equivalents: Valuation continues to be
based on amortized costs and the Group therefore does
not expect any impact.
A Trade accounts receivable and net assets from produc-
tion orders: The simplified approach will be used under
the new impairment model. The Group expects an
immaterial increase in the allowance for bad debts
based on the historically low number of defaults as well
as the high rate of secured receivables. The new
calculation methodology has not yet been internally
approved by all required approval level and the impact
can therefore not be quantified at this point in time.
A Financial assets: Valuation of financial assets without a
quoted market price will change from at cost to fair
value through profit and loss as already applied for all
other financial assets. The Group does not expect any
impact due to this change.
A Financial liabilities: Valuation continues to be based on
amortized costs, and the Group therefore does not
expect any impact.

Purchases and sales are recognized at the trade date rather Valuation and recording of the Group's hedge accounting is
than at the settlement date. not impacted by IFRS 9.

Cash and Receivables Financial Total Total

cash equivalents Securities and accruals assets book value market value
2017 CHF m CHF m CHF m CHF m CHF m CHF m

Cash and cash equivalents 832.5 832.5 832.5

Financial assets at fair value through profit or loss 50.2 50.2 50.2
Loans and receivables 721.7 93.0 814.7 814.7
Financial assets available for sale 47.4 3.5 50.9 50.9
Derivative financial instruments held for hedging 13.2 13.2 13.2

Total financial assets 832.5 110.8 721.7 96.5 1,761.5 1,761.5

As at December 31, 2017, capital commitments of CHF 13.4 mil-

lion (prior year: 13.0 million) have not yet been drawn.

Cash and Receivables Financial Total Total

cash equivalents Securities and accruals assets book value market value
2016 CHF m CHF m CHF m CHF m CHF m CHF m

Cash and cash equivalents 431.3 431.3 431.3

Financial assets at fair value through profit or loss 56.9 56.9 56.9
Loans and receivables 663.3 84.1 747.4 747.4
Financial assets available for sale 14.4 3.6 18.0 18.0
Derivative financial instruments held for hedging 3.3 3.3 3.3

Total financial assets 431.3 74.6 663.3 87.7 1,256.9 1,256.9

 FINANCIAL REPORT
Bühler Annual Report 2017
147

2.2 Financial liabilities

Bond. Financial liabilities consist mainly of the dual tranche
bond issued in 2017, which were initially recognized at the
proceeds received, net of transaction cost incurred. Subse-
quently, the borrowings are measured at amortized cost
using the effective interest method with any difference be-
tween net proceeds and the principal value due on redemp-
tion being recognized in the income statement over the term
of the borrowings. Financial liabilities are derecognized when
the contractual obligations are discharged, cancelled, or ex-
pired.

Financial Payables/accruals Total Total

liabilities and deferred income book value market value
2017 CHF m CHF m CHF m CHF m

Financial liabilities at amortized acquisition costs 543.2 685.2 1,228.4 1,228.8

Financial liabilities at fair value through profit and loss 13.5 13.5 13.5
Financial liabilities held for hedging 7.5 7.5 7.5

Total financial liabilities 564.2 685.2 1,249.4 1,249.8

Financial Payables/accruals Total Total

liabilities and deferred income book value market value
2016 CHF m CHF m CHF m CHF m

Financial liabilities at amortized acquisition costs 135.1 592.9 728.0 728.0

Financial liabilities at fair value through profit and loss 10.4 10.4 10.4
Financial liabilities held for hedging 6.9 6.9 6.9

Total financial liabilities 152.4 592.9 745.3 745.3

Maturity analysis Cash outflow

Book value
Dec 31, 2017 Total < 1 year 1–5 years > 5 years
2017 CHF m CHF m CHF m CHF m CHF m

Trade accounts payable to third parties 264.6 264.6 264.6

Liabilities to associates and related parties 124.8 124.8 5.6 76.2 43.0
Liabilities others/accruals and deferred income 440.3 440.3 439.8 0.5
Corporate bonds 420.8 433.9 1.6 186.5 245.8
Derivative financial instruments held for hedging 7.5 7.5 7.5

Total 1,258.0 1,271.1 719.1 263.2 288.8

Cash outflow
Book value
Dec 31, 2016 Total < 1 year 1–5 years > 5 years
2016 CHF m CHF m CHF m CHF m CHF m

Trade accounts payable to third parties 240.6 240.6 240.6

Liabilities to associates and related parties 137.4 137.4 6.3 76.1 55.0
Liabilities others/accruals and deferred income 374.2 374.2 373.0 1.2
Derivative financial instruments held for hedging 6.9 6.9 6.4 0.5

Total 759.1 759.1 626.3 77.8 55.0

148

Corporate bonds
Nominal Effective
value interest 2017 2016
Company Term Currency CHF m rate CHF m CHF m

Bond, Switzerland 0.1% Bühler Holding AG 12/2017 – 12/2022 CHF 180.0 0.11% 179.9 0.0
Bond, Switzerland 0.6% Bühler Holding AG 12/2017 – 12/2026 CHF 240.0 0.55% 240.9 0.0

Total corporate bonds 420.8 0.0

The corporate bonds are quoted at the SIX Swiss Exchange.

Reconciliation of liabilities arising from financing activities

Non cash-changes
Cash Acquisi- FX move- Reclassifi-
2016 flows tion ment cation 2017
CHF m CHF m CHF m CHF m CHF m CHF m

Short-term borrowings 29.7 –7.5 11.2 33.4

Long-term borrowings 122.7 410.7 –2.6 530.8

Total liabilities from financing activities 152.4 403.2 0.0 0.0 8.6 564.2

Non cash-changes
Cash Acquisi- FX move- Reclassifi-
2015 flows tion ment cation 2016
CHF m CHF m CHF m CHF m CHF m CHF m

Short-term borrowings 16.4 –7.1 20.4 29.7

Long-term borrowings 136.6 –0.5 –13.4 122.7

Total liabilities from financing activities 153.0 –7.6 0.0 0.0 7.0 152.4

2.3 Marketable securities and derivative financial instruments
Derivative financial instruments and hedge accounting.
Derivative financial instruments with banks are mainly con-
cluded to hedge currency risks. They are initially recognized
at cost and subsequently at fair value (replacement cost). The
method applied in recognizing the resulting profits or losses
depends on whether a derivative was designated for hedging
purposes, and if so, on the type of position being hedged.
Certain derivatives may be used to hedge foreign currency
risks in connection with a transaction that is highly likely to
take place in future, or to hedge a fixed commitment (hedg-
ing of cash flows). When the hedge is implemented, the
Group documents the relationship between the hedging in-
strument and the risk being hedged, as well as setting out
risk management objectives and strategies. Furthermore, the
Group records its assessment of the effectiveness of the
hedging instrument with respect to the hedged cash flows,
both when the hedging transaction is 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 12 months; it is classified
as a current asset or liability when the remaining maturity of
the hedged item is less than 12 months. Trading derivatives
are classified as a current asset or liability.
FINANCIAL REPORT
Bühler Annual Report 2017
149
The hedging of cash flows is undertaken for certain antici-
pated Group-internal transactions as well as for the foreign
currency risk of firm commitments. The effective portion of
the change in fair value of derivatives used for the hedging
of cash flows is recognized in other comprehensive income.
The ineffective portion of the hedging instrument is immedi-
ately recognized in the income statement.
Amounts accumulated in other comprehensive income are
recycled in the income statement in the periods when the
hedged item affects profit or loss. When a forecasted trans-
action is no longer expected to occur, the cumulative gain or
loss that was recorded in other comprehensive income is
immediately transferred to the income statement.
Derivatives not designated as hedging instruments are
accounted for at fair value through profit or loss. Changes in
the fair value of these derivative instruments are recognized
immediately in the income statement.
Marketable securities. Marketable securities include those
that are held for trading without participation features. Secu-
rities included in financial assets are categorized as available
for sale.
Futures and options were entered into with banks mainly to
hedge currency risks. The following positions were open as
of December 31, 2017:
150

Contract or underlying Positive fair values Negative fair values

principal amount
2017 2016 2017 2016 2017 2016
2.3.1 Derivative financial instruments CHF m CHF m CHF m CHF m CHF m CHF m

Currency-related instruments
Forward foreign exchange rate contracts 1,599.0 951.7 16.3 6.9 21.0 16.9
– held for trading 786.0 596.1 4.2 3.6 13.5 10.0
– cash flow hedges (effective part) 813.0 355.6 12.1 3.3 7.5 6.9
Over-the-counter currency options 174.5 16.1 1.1 0.1 0.0 0.1
Total of currency-related instruments 1,773.5 967.8 17.4 7.0 21.0 17.0

Equity-related instruments
Over-the-counter equity options 10.0 30.0 0.0 0.0 0.0 0.8

Total of equity-related instruments 10.0 30.0 0.0 0.0 0.0 0.8

Options 184.5 46.1 1.1 0.1 0.0 0.9

Futures 1,599.0 951.7 16.3 6.9 21.0 16.9

Sum of derivative financial instruments 1,783.5 997.8 17.4 7.0 21.0 17.8

Thereof included in securities and in 1,773.5 974.8 17.3 6.7 21.0 17.3
short-term financial liabilities
Thereof included in other long-term 10.0 23.0 0.1 0.3 0.0 0.5
financial assets and financial liabilities
 FINANCIAL REPORT
Bühler Annual Report 2017
151

Other Total Total

USD EUR currencies 2017 2016
CHF m CHF m CHF m CHF m CHF m

Currency-related instruments
Forward foreign exchange rate contracts 393.3 899.9 305.8 1,599.0 951.7
– held for trading 260.7 384.4 140.9 786.0 596.1
– cash flow hedges 132.6 515.5 164.9 813.0 355.6
Over-the-counter currency options 0.0 174.5 0.0 174.5 16.1

Total of currency-related instruments 393.3 1,074.4 305.8 1,773.5 967.8

Equity-related instruments
Over-the-counter equity options 0.0 0.0 10.0 10.0 30.0

Total of equity-related instruments 0.0 0.0 10.0 10.0 30.0

Options 0.0 174.5 10.0 184.5 46.1

Futures 393.3 899.9 305.8 1,599.0 951.7

Sum of derivative financial instruments 393.3 1,074.4 315.8 1,783.5 997.8

Positive replacement values are included in securities or

long-term financial assets and negative replacement values
are included in financial liabilities.
152

2017 2016
2.3.2 Marketable securities CHF m CHF m

Equity securities 5.5 4.8

Bonds 6.2 9.5
Derivative financial instruments 17.3 6.7
Other securities 34.4 39.2

Total marketable securities 63.4 60.2

2.4 Estimation of fair values

The fair values of financial instruments that are actively trad-
ed on markets are based on the relevant trading exchange
prices (offer prices) on the balance sheet reference date.
Instruments of this nature are classified as Level 1. The fair
values of financial instruments that are not actively traded on
markets (e.g., derivative OTC instruments) are determined
using valuation models. If all the parameters required for the
valuation are based on observable market data, the instru-
ment in question is classified as Level 2. If one or more pa-
rameters are based on unobservable market data, the instru-
ment is classified as Level 3. In the period under review as
well as in the prior year no transfer occurred within the Levels.
In addition to the financial assets below, as of December 31,
2017, the Group discloses an asset held for sale which is
valued at fair value (Level 3). Refer to Note 4.3 for more de-
tails.

2017 CHF m Level 1 Level 2 Level 3 Total

Financial assets at fair value through profit or loss 46.2 4.1 50.3
Derivative financial assets held for hedging 13.2 13.2
Financial assets available for sale 36.3 14.6 50.9

Total financial assets 46.2 53.6 14.6 114.4

Derivative financial liabilities 21.0 21.0

Total financial liabilities 0.0 21.0 0.0 21.0

2016 CHF m Level 1 Level 2 Level 3 Total

Financial assets at fair value through profit or loss 53.5 3.7 57.2
Derivative financial assets held for hedging 3.3 3.3
Financial assets available for sale 3.6 14.4 18.0

Total financial assets 53.5 10.6 14.4 78.5

Derivative financial liabilities 17.8 17.8

Total financial liabilities 0.0 17.8 0.0 17.8

 FINANCIAL REPORT
Bühler Annual Report 2017
153

3. Detailed information on consolidated income statement

3.1 Revenue
Revenue is recognized when it is probable that the econom-
ic benefits associated with the transaction will flow to the
entity and the amount of the revenue can be measured reli-
ably. Revenue is measured at the fair value of the consider-
ation 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.
The Group accounts for customer projects using the per-
centage-of-completion method. Revenue (including an esti-
mated share of the outcome of the contract) is recognized
by reference to the stage of completion. The stage of com-
pletion is determined according to the cost-to-cost method.
The percentage-of-completion method involves the use of
estimates and forecasts concerning future costs; actual
costs may differ from these estimates. The forecasts are
reviewed on a regular basis and adapted where necessary.
These changes affect costs, the stage of completion, and
both realized and anticipated profits. Any changes in esti-
mates are recognized in the period in which they occur. Loss-
es identified on long-term construction contracts are recog-
nized as an  expense immediately. Losses on long-term
construction contracts occur when the expected contract
costs exceed the expected revenue.
CHF 2,118.2 million (prior year: CHF 1,777.9 million) of the
total operating income was determined using the percent-
age-of-completion method in the reporting period.
The Group will apply IFRS 15 (Revenue from Contracts with
Customers) starting on January 1, 2018, using the full retro-
spective approach. Under IFRS 15, revenue is recognized as
the control of the goods or services is transferred to the
customer. This can occur at a point in time or over time.
For projects/plants and services/maintenance, the Group will
continue to recognize revenue over time. For single machines
and spare parts, the Group will recognize revenue at a point
in time. The main impact of IFRS 15 is that revenue recogni-
tion for single machines changes from over time to a point
in time. This will lead to a revenue shift to later periods com-
pared to the currently applied IFRS guidance. Prior reporting
periods presented will be restated and thus the effect of
initial application of IFRS 15 will be recognized directly in
equity of the earliest period presented.
The Group is currently finalizing the calculation of the re-
statement net impact on its 2017 financial statement, which
is expected to increase annual revenues by +2.9%, increase
EBIT by +7.6% and decrease total equity by –2.0% compared
to the currently disclosed figures.

3.2 Other operating income

2017 2016
CHF m CHF m

Earnings from coordination of consortium business 1.4 0.0

Interest income from trade finance 1.4 2.1
Rental income 1.2 0.9
Gains from sale of fixed assets 2.4 2.3
Other operating income related parties 2.0 0.7
Dividend income 0.4 0.6
Gains from sale of scrap materials 2.7 1.5
Supplier discounts 1.4 1.1
Government grants 2.0 0.0
Others 6.5 12.8

Total 21.4 22.0

Others comprises a number of individually immaterial items.

154

3.3 Employee benefit expenses

2017 2016
CHF m CHF m

Wages and salaries 640.8 607.7

Social security and employee benefit expenses 117.1 116.9
Other personnel expenses 67.8 68.6

Total 825.7 793.2

3.4 Other operating expenses

2017 2016
CHF m CHF m

Administration expenses 108.1 104.0

Rental and leasing expenses, dues 31.8 31.1
Energy, maintenance and repairs 32.6 29.3
Travel expenses 82.8 79.4
Outbound freight costs 76.0 66.6
Consultancy fees 15.1 13.4
Marketing costs 21.1 17.7
Agency fees 13.3 15.5
Other operating expenses related parties (Note 6.2 Related parties) 23.9 25.2
Losses on sales of fixed assets 5.0 1.0
Fixed assets < 10 kCHF 2.3 1.6
Contributions and memberships 2.3 1.5
Others 27.0 21.9

Total 441.3 408.2

 FINANCIAL REPORT
Bühler Annual Report 2017
155

3.5 Financial result

2017 2016
CHF m CHF m

Interest income 3.8 4.1

Interest income from related parties 0.6 0.7
Interest expenses –0.3 –0.3
Interest expenses from related parties –1.4 –1.5

Total interest income and expenses 2.7 3.0

Total other financial income 10.7 3.2

Total financial result 13.4 6.2

The continuously low interest rates in most major currencies

resulted in an interest result including interest from related
parties of CHF 2.7 million (prior year: CHF 3.0 million). Other
financial income mainly comprised foreign exchange gains
of CHF 6.9 million (prior year: CHF –1.1 million).
156

3.6 Taxes
Income taxes comprise the tax expense in respect of all
recognized profits for the reporting period. They include cur-
rent 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 between the carrying
amounts of assets and liabilities in the balance sheet and their
tax base taking into account actual or substantially enacted
tax rates. Changes in deferred tax balances are recognized in
the income statement, except when they relate to items rec-
ognized outside the income statement, in which case the de-
ferred tax is treated accordingly.
Current income tax relating to items recognized directly in
equity is recognized in equity.
Deferred tax assets are only recognized for temporary differ-
ences 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. This assessment is based on estimates, which could
differ from actual results and require a valuation allowance.
The amendments to IAS 12 became effective on January 1,
2017. The amendments clarify the accounting for deferred
taxes where an asset is measured at fair value and that fair
value is below the asset’s tax base. These amendments do
not have a material impact on the income statement or bal-
ance sheet. The IASB issued IFRIC 23, which becomes ef-
fective on January 1, 2019. The interpretation clarifies how
to apply the requirements in IAS 12 when there is uncertain-
ty over income tax treatment. The Group does not expect a
significant impact from this clarification.

2017 2016
3.6.1 Income taxes CHF m CHF m

Income taxes relating to the reporting period –39.7 –40.1

Income taxes relating to prior periods 0.4 –1.1
Deferred taxes due to temporary differences –11.0 3.4
Deferred taxes due to recognition of tax loss carry-forwards 0.9 1.4
Deferred taxes due to changes in tax rates 5.4 –0.1

Total –44.0 –36.5

Deferred taxes recognized in other comprehensive income –22.5 1.3

2017 2016
3.6.2 Reconciliation of income taxes CHF m CHF m

Profit before taxes 218.2 179.8

Components of tax expenses:

Income taxes at anticipated tax rate –48.6 –40.1
Income and expenses not subject to tax 1.3 0.7
Income taxes relating to prior periods 0.4 –1.1
Deferred taxes due to changes in tax rates 5.4 –0.1
Effect of tax loss carry-forwards 1.9 1.2
Effect of losses without recognition of deferred tax assets –2.0 –2.7
Other impacts –2.4 5.6

Income taxes disclosed (current and deferred) –44.0 –36.5

Total income taxes in % of profit before taxes 20.2% 20.3%

The anticipated tax rate was 22.3 % (prior year: 22.3 %) and to 20.2 % in 2017 from 20.3 % in 2016. Contributory factors
consisted of the weighted average of the applicable local for the resulted tax rate included sustainable tax manage-
tax rates for income taxes. The tax rate decreased slightly ment and a special effect due to the US tax reform.
 FINANCIAL REPORT
Bühler Annual Report 2017
157

2017 2016
3.6.3 Tax loss carry-forwards CHF m CHF m

Expiry
Unlimited 93.0 86.4
In more than five years 22.2 22.7
In two to five years 30.1 34.7
Within one year 1.9 1.3

Total 147.2 145.1

Tax loss carry-forwards accounted for in deferred taxes 116.4 110.5

Tax loss carry-forwards not accounted for in deferred taxes 30.8 34.6
Tax effect on tax loss carry-forwards unaccounted for 7.7 8.5

The change in tax loss carry-forwards results from the use many, as well as from the impact of additional tax loss car-
of tax losses in particular in China, South Africa, and Ger- ry-forwards in particular in Germany, China, and Brazil.

2017 2016
CHF m CHF m
3.6.4 Breakdown of deferred taxes per line item Assets Liabilities Assets Liabilities

Property, plant and equipment 6.5 16.2 7.8 15.8

Post-employment benefits 16.1 12.8 39.7 10.8
Provisions 3.2 7.9 3.3 13.1
Other items (mainly inventory, construction contracts and other current 109.9 191.9 64.7 141.7
liabilities)
Tax loss carry-forwards 31.4 0.0 30.5 0.0

Total deferred taxes gross 167.1 228.8 146.0 181.4

Offset –120.7 –120.7 –103.0 –103.0

Total deferred taxes net 46.4 108.1 43.0 78.4

Deferred tax assets and liabilities are offset if there is a legal-

ly enforceable right to set them off and if the calculations of
income taxes relate to the same taxation authority.
158

3.7 Research and development costs

Research costs are recognized in the income statement in Research and development costs directly charged to the
the period in which they are incurred. Development costs are income statement in the reporting period amounted to
capitalized only if, and to the extent that, the IFRS criteria are CHF 119.0 million (prior year: CHF 108.5 million).
met and it is probable that the present value of the expected
returns will exceed the development costs. Capitalized de-
velopment costs are amortized on a systematic basis over
the period in which the returns are expected to flow to the
Group.

4. Detailed information on consolidated balance sheet
4.1 Property, plant and equipment
Property, plant, and equipment is valued at acquisition or
construction cost less depreciation and write-downs for im-
pairment. Items of property, plant, and equipment are depre-
ciated on a straight-line basis over their estimated useful life,
except for land, which is not depreciated. Estimated useful
lives of major classes of depreciable assets are as follows:
A Building shell: 40 – 80 years
A Installations / extensions: 20 – 25 years
A Machinery and technical equipment: 10 years
A Other tangible fixed assets: 3 –10 years
The estimated useful life of the assets is regularly reviewed
and, if necessary, the future depreciation charge is acceler-
ated.
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.
Borrowing costs. Borrowing costs which are directly at-
tributable to the acquisition, construction, or production of
a  qualified asset are capitalized as part of the cost of that
asset.
FINANCIAL REPORT
Bühler Annual Report 2017
159
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 possible
to estimate the recoverable amount of an  individual asset,
the Group estimates the recoverable amount of the smallest
cash-generating unit to which the asset belongs. The recov-
erable amount is the higher of an asset’s or cash-generating
unit’s fair value less costs to sell and its value in use. If the
recoverable amount of an  asset or cash-generating unit is
estimated to be less than its carrying amount, the carrying
amount of the asset or cash-generating unit is reduced to its
recoverable amount. Impairment losses are recognized im-
mediately in the income statement.
Where an impairment loss is subsequently reversed, the car-
rying amount of the asset or cash-generating unit is in-
creased 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 periods. A reversal of an impairment loss is recog-
nized immediately in the income statement.
160

Machinery Other Assets

Land and and technical tangible under
buildings equipment assets construction Total
Acquisition cost CHF m CHF m CHF m CHF m CHF m

January 1, 2016 311.6 290.2 139.5 19.5 760.7

Additions 15.0 16.3 12.7 23.8 67.8
Disposals –0.8 –19.6 –12.2 –2.2 –34.8
Reclassifications 11.9 0.1 1.9 –14.0 –0.1
Translation differences –2.7 –0.2 0.2 –0.1 –2.8

December 31, 2016 335.0 286.8 142.1 26.9 790.8

Additions 7.8 23.7 10.9 50.6 93.0

Disposals –1.4 –22.1 –8.5 –2.3 –34.3
Reclassifications 40.5 4.1 3.4 –48.0 0.0
Translation differences 11.9 7.6 3.9 0.0 23.4

December 31, 2017 393.8 300.0 151.8 27.2 872.8

Depreciation

January 1, 2016 –84.5 –166.6 –108.8 –0.4 –360.3

Additions –9.5 –19.2 –11.7 –0.2 –40.6
Disposals 0.4 14.3 10.5 0.0 25.2
Impairment 0.0 –0.1 0.0 0.0 –0.1
Reclassifications –0.5 0.2 0.0 0.2 –0.1
Translation differences 0.4 0.1 –0.3 0.0 0.2

December 31, 2016 –93.7 –171.3 –110.3 –0.4 –375.7

Additions –10.4 –19.4 –9.9 –0.1 –39.8

Disposals 1.3 15.5 7.7 0.0 24.4
Impairment 0.0 0.0 0.1 0.0 0.1
Reclassifications 0.2 1.1 –1.0 –0.3 0.0
Translation differences –2.5 –5.0 –2.8 0.3 –10.0

December 31, 2017 –105.2 –179.1 –116.2 –0.5 –401.0

Net book values

January 1, 2017 241.3 115.5 31.8 26.5 415.1

December 31, 2017 288.6 120.9 35.6 26.7 471.8

As in the previous year, the Group did not enter in financial plant, and equipment, which are not shown in the balance
lease contracts as lessee. Net loss on disposal of tangible sheet, amounted to CHF 33.6 million (prior year: CHF 53.8 mil-
fixed assets amounted to CHF –2.0 million (prior year: net lion) and are mainly related to application centers (in Switzer-
loss CHF – 0.2 million). Commitments relating to property, land and United States).
 FINANCIAL REPORT
Bühler Annual Report 2017
161

Off-balance sheet obligations under operating leases

2017 2016
CHF m CHF m

Leasing obligation up to one year 20.3 16.2

Leasing obligation as of one to five years 25.5 19.7
Leasing obligation over five years 14.2 8.7

Total 60.0 44.6

Leases. Leases of property, plant, and equipment where the
Group has substantially all the risks and rewards of owner-
ship are classified as finance lease. Property, plant, and
equipment acquired through a finance lease is capitalized at
the date of the commencement of the lease term at the pres-
ent value of the minimum future lease payment or, if lower,
at the amount equal to the fair value of the leased asset as
determined at the inception of the lease. The associated lia-
bilities are recognized as either current or non-current finan-
cial liabilities, depending on their due dates.
Leases where substantially all the risks and rewards of own-
ership are not transferred to the Group are classified as op-
erating leases. Payments under operating leases are charged
to the income statement on a  straight-line basis over the
period of the lease.
Assets under finance leases where the Bühler Group acts as
lessor are recognized as receivables in the amount of the net
investment. The risks and rewards incidental to ownership
are transferred to the lessee. Lease income from these
finance leases is subsequently recognized over the term of
the lease based on the effective interest method.
In 2016, the IASB issued the final version of IFRS 16 Leases,
which replaces IAS 17. IFRS 16 is effective for annual periods
beginning on or after January 1, 2019. The Group is current-
ly assessing the impact of IFRS 16 and plans to adopt the
new standard on the required effective date.
This item mainly includes obligations under long-term leasing
agreements relating to properties in Germany, China, and
Switzerland.
162
4.2 Intangible assets
Goodwill represents the excess of the aggregate of the con-
sideration transferred and the amount recognized for the
non-controlling interest over the fair value of the net identi-
fiable assets acquired and liabilities assumed. Goodwill on
acquisitions of subsidiaries is included in intangible assets.
Goodwill on acquisitions of associates is included in invest-
ments in associates.
Goodwill is tested annually for impairment or whenever there
are impairment indicators and is carried at cost less accu-
mulated 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 income statement.
On disposal of a subsidiary, associate, or joint venture, the
related goodwill is included in the determination of profit or
loss on disposal.
Goodwill on acquisitions of subsidiaries and interests in joint
ventures is allocated to cash-generating units for the purpose
of impairment testing. Impairment losses relating to goodwill
cannot be reversed in future periods.
Acquired patents, licenses, trademarks, and similar rights are
initially recorded at cost and amortized on a straight-line ba-
sis over their estimated useful life or a period not exceeding
15 years. Intangible assets acquired through business com-
binations are carried in the balance sheet at the fair value
allocated in the acquisition accounting and amortized over
their estimated useful life.
Other intangible assets mainly comprise customer relation-
ships, technologies, patents, and software.
 FINANCIAL REPORT
Bühler Annual Report 2017
163

Other
intangible
Goodwill assets Total
Acquisition cost CHF m CHF m CHF m

January 1, 2016 258.3 154.0 412.3

Additions 0.9 3.1 4.0
Disposals 0.0 –0.6 –0.6
Reclassifications 0.0 0.4 0.4
Translation differences 1.1 0.5 1.6

December 31, 2016 260.3 157.4 417.7

Additions 0.0 6.8 6.8

Disposals 0.0 –4.6 –4.6
Reclassifications 0.0 –0.1 –0.1
Translation differences 11.3 7.1 18.4

December 31, 2017 271.6 166.6 438.2

Amortization

January 1, 2016 –27.9 –110.7 –138.6

Additions 0.0 –17.3 –17.3
Disposals 0.0 0.6 0.6
Reclassifications 0.0 –0.2 –0.2
Translation differences –0.3 –0.3 –0.6

December 31, 2016 –28.2 –127.9 –156.1

Additions 0.0 –12.7 –12.7

Disposals 0.0 4.6 4.6
Reclassifications 0.0 0.1 0.1
Translation differences –0.9 –6.6 –7.5

December 31, 2017 –29.1 –142.5 –171.6

Net book values

January 1, 2017 232.1 29.5 261.6

December 31, 2017 242.5 24.1 266.6
164
Goodwill impairment test
Goodwill is allocated to the identifiable cash-generating units
of the Group. The Group changed its organization structure
by centralizing key functions and reorganizing one of its op-
erating segments. This change in the organization structure
led to a reassessment and redefinition of the cash-generating
units compared to 2016. Starting in 2017 the definition of the
cash-generating unit changed from a legal entity to a busi-
ness perspective.
The recoverable amounts have been determined based on
a  value-in-use calculation per cash-generating unit. This
calculation uses cash flow projections based on financial
budgets approved by management covering a  five-year
period.
Key assumptions used in value-in-use calculations. The
calculations of values in use are most sensitive to the follow-
ing assumptions:
A Discount rate
A Growth rate
A Revenue growth
A EBIT margin growth
Discount rate – The discount rates which are used to calcu-
late the discounted present value of the future cash flows are
derived from a capital asset pricing model using market data
such as the yield on a 10-year government bond of the re-
spective country or specific country risk premiums.
Growth rate – The assumptions used in the calculation reflect
the long-term expected growth rate of the operational busi-
ness and are based on the growth strategy of the Group.
Revenue growth – The assumptions used in the calculation
reflect the expected order backlog at year-end as well as
the expected market development based on the strategic
priorities set by the Group.
EBIT margin growth – The EBIT margin growth used in the
calculation reflects the margin goal as defined in the Group’s
vision and is based on the margin improvement projects
initiated.
Result of the impairment test. The impairment tests
performed on December 31, 2017, support the value of the
carrying amount. As in prior year, no impairment was recog-
nized.
Sensitivity to changes in assumptions. The value in use
of the cash-generating unit Nutrition equals its carrying
amount. For Grain Logistics the following change in key as-
sumptions would result in a value in use equal to the carrying
amount:
Grain
Key assumptions Logistics
Discount rate +1.336%
Growth rate –2.044%
Revenue growth –3.998%
EBIT margin growth –0.169%
For all other cash-generating units a possible increase in the
discount rate of 1 percentage point or a drop in revenue of
5  percentage points result in the carrying amount not ex-
ceeding its recoverable amount.
 FINANCIAL REPORT
Bühler Annual Report 2017
165

Base data used

Book value Long-term Revenue EBIT margin
Goodwill 2017 CHF m Discount rate growth rate growth growth

Grain Milling 12.3 10.7% 1.5% 4.4% 0.9%

Grain Logistics 40.1 10.6% 2.0% 8.6% 0.9%
Sortex & Rice 7.2 13.4% 2.1% 6.9% 0.1%
Feed 3.4 11.1% 1.4% 13.2% 2.0%
Pasta & Noodles 2.5 9.5% 0.7% 7.0% 1.0%
Nutrition 6.1 10.7% 1.6% 3.5% 0.9%
Aeroglide 60.9 10.1% 1.8% 10.6% 1.1%
Consumer Foods 22.0 9.4% 1.0% 6.0% 1.6%
Die Casting 1.8 9.3% 0.8% 6.4% 0.2%
Grinding & Dispersion 0.7 9.6% 0.9% 8.1% 1.0%
Leybold Optics 85.5 9.8% 1.7% 4.9% 1.1%

Total at December 31, 2017 242.5

Base data used

Book value Long-term Revenue EBIT margin
Goodwill 2016 CHF m Discount rate growth rate growth growth

Leybold Optics Verwaltungs GmbH, Alzenau 78.6 8.8% 1.2% 7.2% 0.6%
Buhler Aeroglide Corporation, Cary 63.7 9.6% 1.2% 11.2% 1.5%
Bühler Deutschland GmbH, Beilngries 36.9 8.8% 1.2% 5.0% 1.7%
Bühler Barth GmbH, Freiberg a.N. 15.9 8.8% 1.2% 16.8% 4.2%
Buhler Yijiete Color Sorting Machinery (Hefei) Co. Ltd., 7.0 11.2% 3.1% 14.8% 2.8%
Hefei
Bangsheng Bio-Technology Co. Ltd., Guangzhou 6.7 11.2% 3.1% 13.3% 0.3%
Wuhan Mingbo Electromechanical Equipment Co. Ltd., 6.0 11.2% 3.1% 18.3% 1.5%
Wuhan
Bühler Haguenau S.A.S., Haguenau 5.1 9.2% 1.2% 10.5% 2.9%
Bühler GmbH, Leingarten 4.3 8.8% 1.2% 19.0% 7.5%
Others 7.9 9.2%–11.0% 0.9%–2.5% –2.2%–23.9% –0.6%–7.7%

Total at December 31, 2016 232.1

166

4.3 Investments in associates

Share in
equity Goodwill 2017 2016
Net book values CHF m CHF m CHF m CHF m

January 1 21.2 12.3 33.5 29.0

Reclassifications –5.1 –4.2 –9.3 0.0
Share of net profit 2.0 0.0 2.0 4.6
Dividends received –0.9 0.0 –0.9 0.0
Translation differences 1.5 0.7 2.2 –0.1

December 31 18.7 8.8 27.5 33.5

Translation differences are recognized in other comprehen- ues of the associated companies are disclosed as only one
sive income. The attributable net result is shown under other of the associated companies is material to the Group.
operating income in the income statement. Cumulative val-

2017 2016
Cumulative values of the associated companies CHF m CHF m

Share of revenue 23.3 33.4

Share of net profit 2.0 4.6

Balance sheet values:

Non-current assets 10.7 14.4
Current assets 11.7 23.9
Non-current liabilities 1.3 8.4
Current liabilities 2.5 8.7
Shareholders' equity 18.6 21.2

The associated companies comprise two companies located
in South Europe. The Group has a shareholding of 26% and
49%, respectively. The figures are based on available pre-
view closing data as of December 31, 2017.
On July 19, 2017, the Group acquired all remaining outstand-
ing shares of Polymetrix Holding AG (prior year: 35%) with
the intent to sell a majority stake to an engineering group
active in the polymer industry. On November 10, 2017, the
Group sold 80% of Polymetrix Holding AG with a put option
to sell the remaining 20% by January 1, 2021. The transaction
is subject to the approval of the authorities. The closing of
the transaction is expected in early 2018.
The Group applied the shortcut method from IFRS 5. The
interests in Polymetrix Holding AG were reclassified from in-
vestments in associates to assets classified as held for sale
and valued at fair value less cost to sell as of December 31,
2017. The revaluation resulted in an immaterial loss that was
recognized in the income statement.
 FINANCIAL REPORT
Bühler Annual Report 2017
167

4.4 Long-term financial assets

Due
1–5 years > 5 years Total
December 31, 2017 CHF m CHF m CHF m

Securities 0.0 47.5 47.5

Loans to associated companies 12.3 0.0 12.3
Other non-current financial assets 80.7 3.5 84.2
Overfunding of post-employment benefit plans 0.0 31.8 31.8

Total 93.0 82.8 175.8

Due
1–5 years > 5 years Total
December 31, 2016 CHF m CHF m CHF m

Securities 0.0 14.4 14.4

Loans to associated companies 9.3 0.0 9.3
Other non-current financial assets 74.8 3.5 78.3
Overfunding of post-employment benefit plans 0.0 6.9 6.9

Total 84.1 24.8 108.9

168

4.5 Inventories
Inventories are carried at the lower of cost or net realizable In prior year, value adjustments deducted from inventories
value. The cost of finished goods, semi-finished goods, and amounted to CHF –37.7 million. No material reversals of
work in progress includes raw materials, direct labor, and value adjustments of the prior year were recognized in the
other directly attributable costs and overheads based on the reporting year.
normal capacity of production facilities, excluding borrowing
costs. Cost is determined using the standard cost method. Advance payments to suppliers are also included in inven-
Standard costs are regularly reviewed and, if necessary, re- tories.
vised in light of current conditions. Net realizable value is the
estimated selling price less cost to completion and selling
expenses. Obsolete inventories and goods with a low rate of
inventory turnover are written down.
Value
Gross value adjustments 2017 2016
CHF m CHF m CHF m CHF m

Raw materials and supplies 141.8 –22.2 119.6 137.8

Unfinished goods 61.5 –10.1 51.4 40.4
Finished goods and merchandise 105.1 –5.6 99.5 73.0
Work in progress 126.5 –2.1 124.4 78.0
Advance payments to suppliers 50.4 0.0 50.4 36.4

Total 485.3 –40.0 445.3 365.6

4.6 Production orders in progress

2017 2016
CHF m CHF m

Production orders in progress 626.0 482.0

Advance payments from customers –249.9 –155.1

Net assets of production orders in progress 376.1 326.9

Production orders in progress 3.2 13.7

Advance payments from customers –370.9 –379.7

Net liabilities of production orders in progress –367.7 –366.0

Accumulated costs and recognized profits 1,923.0 1,965.9
 FINANCIAL REPORT
Bühler Annual Report 2017
169

4.7 Accounts receivable

Trade and other accounts receivable are carried at the orig-
inal invoice amount less allowances made for doubtful ac-
counts, trade discounts, volume rebates, and similar items.
Financing of customer orders using the Group’s own funds
as part of its treasury strategy is included in this item.
Trade accounts receivable include supplier credits of
CHF  60.1  million (prior year: CHF  84.4  million), which are
financed in accordance with the treasury strategy.

2017 2016
CHF m CHF m

– from third parties 591.1 542.1

– from associates 0.1 0.3
– from related parties 1.5 0.0
Allowance for bad debts –8.8 –10.1

Total trade accounts receivable 583.9 532.3

2017 2016
CHF m CHF m

Value added tax credits 47.5 36.4

Other accounts receivable

– from third parties 52.8 56.4
– from associates 0.2 0.0
Prepayments and accrued income 37.4 38.3
Allowance for bad debts –0.1 –0.1

Total other accounts receivable 137.8 131.0

170

Receivables outstanding analysis

Overdue
Total
book value <3 4–6 7–9 10–12 > 12
Dec 31, 2017 Not due months months months months months
2017 CHF m CHF m CHF m CHF m CHF m CHF m CHF m

Accounts receivable trade and other 728.8 553.1 87.3 24.5 17.8 7.9 38.2
Allowance for bad debts –8.9 0.0 –0.5 0.0 0.0 0.0 –8.4
Associated companies and other related parties 1.8 1.8

Total accounts receivable, net 721.7 554.9 86.8 24.5 17.8 7.9 29.8

Overdue
Total
book value <3 4–6 7–9 10–12 > 12
Dec 31, 2016 Not due months months months months months
2016 CHF m CHF m CHF m CHF m CHF m CHF m CHF m

Accounts receivable trade and other 668.2 527.4 64.9 32.8 11.3 7.4 24.4
Allowance for bad debts –10.2 0.0 –0.4 0.0 –0.5 –0.2 –9.1
Associated companies and other related parties 5.3 5.3

Total accounts receivable, net 663.3 532.7 64.5 32.8 10.8 7.2 15.3

Allowance for bad debts

2017 2016
CHF m CHF m

January 1 –10.2 –10.1

Additions –2.1 –4.5
Consumption 2.9 1.5
Release 1.1 2.7
Translation differences –0.6 0.2
December 31 –8.9 –10.2

4.8 Cash and cash equivalents

In the consolidated cash flow statement, cash and cash
equivalents includes cash in hand, deposits held at call with
banks, other short-term highly liquid investments with original
maturities of three months or less, and bank overdrafts. In
the consolidated balance sheet, bank overdrafts are shown
within borrowings in current liabilities.

Cash and cash equivalents include bank accounts and time

deposits with an original maturity of a maximum of three
months.

4.9 Trade accounts payable
Trade accounts payable
– to third parties
– to associates
– to related parties
Total
4.10 Provisions and contingent liabilities
Provisions are recognized when the Group has a  legal or
constructive obligation arising from past events, an outflow
of resources embodying economic benefits to settle the
obligation is probable, and a reliable estimate can be made
of this amount. Actual expenses may differ from the accrued
amounts.
A contingent liability is disclosed when there is a possible
obligation that arises from a past event and whose existence
will be confirmed only by the occurrence or non-occurrence
of one or more uncertain future events not wholly within the
control of the Group. A contingent liability is also disclosed
when there is a present obligation that arises from past
events but is not recognized, because an outflow of resourc-
es embodying economic benefits to settle the obligation is
not probable, or the respective amount of the obligation
cannot be measured with sufficient reliability.
When the Group expects some or all of a  provision to be
reimbursed, for example, under an insurance contract, the
reimbursement is recognized as a separate asset, but only
when the reimbursement is virtually certain. The expense
relating to a provision is presented in the income statement
net of any reimbursement.
If the effect of the time value of money is material, provisions
are discounted using a  current pre-tax rate that reflects,
when appropriate, the risks specific to the liability. When dis-
FINANCIAL REPORT
Bühler Annual Report 2017
171
2017 2016
CHF m CHF m
264.6 239.7
0.7 0.7
1.5 1.8
266.8 242.2
counting is used, the increase in the provision due to the
passage of time is recognized as a finance cost.
Warranty provisions are created with a view to meet potential
guarantee obligations arising from the sale of machinery and
technical equipment. The calculation is based on historic
values as well as recognized claims.
Provisions for personnel expenses mainly include long-term
employee benefits, such as long-service benefits, partial re-
tirement, jubilee benefits, and deferred compensation plans.
Among other things the other provisions include provisions
for pending legal cases, other project risks as well as a 
provision for restructuring of CHF  0.2  million (prior year:
CHF 1.8 million).
Approximately 43 % (prior year: 37 %) of the cash outflows of
the long-term provisions are expected to materialize within
the next three years.
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 estimated on a case-by-
case basis and measured individually. The actual warranty
costs incurred may differ from the costs provided for.
172

Provisions for
Provisions for personnel Other
warranties expenses provisions 2017 2016
CHF m CHF m CHF m CHF m CHF m

January 1 31.0 28.4 9.9 69.3 71.2

Additions 22.6 18.1 24.0 64.7 55.9
Utilization –16.1 –5.7 –25.5 –47.3 –43.7
Release –4.9 –0.4 –0.4 –5.7 –13.7
Translation differences 0.6 0.7 0.4 1.7 –0.3

December 31 33.2 41.1 8.4 82.7 69.3

Thereof short-term 29.2 18.9 7.2 55.3 44.7

Thereof long-term 4.0 22.2 1.2 27.4 24.6

Contingent liabilities
2017 2016
CHF m CHF m

Sureties, guarantees and other obligations 1.6 2.0

Total 1.6 2.0
 FINANCIAL REPORT
Bühler Annual Report 2017
173

4.11 Other short-term liabilities, accruals and deferred income

2017 2016
CHF m CHF m

Value added tax owed 18.3 13.3

Advance payments 168.9 140.1

Other liabilities
– to third parties 53.7 39.0
– to related parties 0.6 0.9
Personnel-related accruals 90.4 78.6
Other accruals and deferred income 86.5 78.8

Total 418.4 350.7

4.12 Defined benefit obligations

The Group’s main defined benefit pension plans are in Swit-
zerland and Germany. The defined benefit plans in Switzer-
land are funded through legally separate trustee adminis-
tered funds. The cash funding of these plans, which may
from time to time involve special payments, is designed to
ensure that present and future contributions should be suf-
ficient to meet future liabilities. The defined benefit plans in
Germany are partially unfunded.
Pension plans in Switzerland. The Group’s Swiss pension
plans contain a cash balance benefit formula, accounted for
as a defined benefit plan. Employer and employee contribu-
tions are defined in the pension fund rules in terms of
an age-related sliding scale of percentages of salary. Under
Swiss law the pension fund guarantees the vested benefit
amount as confirmed annually to members. Interest may be
added to member balances at the discretion of the Board of
Trustees. At retirement date members have the right to take
their retirement benefit as a lump sum, an annuity, or part as
a lump sum with the balance converted to a fixed annuity at
the rates defined in the fund rules. The Board of Trustees
may change the annuity at their discretion subject to the
plan’s funded status including sufficient free funds as deter-
mined according to Swiss statutory valuation rules.
Swiss pension law requires the Board of Trustees to take
measures to resolve a statutory underfunding. The possible
measures affect both employers and employees (risk sharing).
Pension plans in Germany. The Group’s German pension
plans have defined benefit rights based on their length of
service and / or final pensionable pay. The employer gives
a direct promise to the employee to pay him a certain amount
once he retires. At retirement date the value of the employ-
ee's benefits is paid as an annuity. The Group is required by
German law to increase pensions all three years according
to price inflation, as measured by the Consumer Price Index
or according to comparable pay grades. Direct pension
promises are usually funded via book reserve accruals. In
2008, the Group set up a  trust fund to fund their pension
liabilities for Bühler GmbH, Braunschweig. No material busi-
ness combinations / curtailments / settlements occurred
during the reported financial period.
Status of the Group’s defined benefit plans. The status of
the Group’s defined benefit plans using actuarial assump-
tions determined in accordance with IAS 19 is summarized
below.
174
Employee benefits – defined benefit plans. These plans
are generally funded through payments to legally indepen-
dent pension or insurance funds.
The aggregate of the present value of the defined benefit
obligation and the fair value of plan assets for each plan is
recorded in the balance sheet as net defined benefit liability
or net defined benefit asset under long-term financial assets.
The defined benefit obligation is determined annually by in-
dependent actuaries using the projected unit credit method.
If the fair value of the plan assets exceeds the present value
of the defined benefit obligation, only a net pension asset is
recorded, taking account of the asset ceiling.
Pension costs consist of three elements: service costs, net
interest, and remeasurements of employee benefits.
Service costs are part of personnel expenses and consist of
current service costs, past service costs (including gains/loss-
es from plan amendments or curtailments) and gains / losses
from plan settlements.
Net interest is recorded as part of personnel expenses and
is determined by applying the discount rate to the net defined
liability or net defined asset that exists at the beginning of the
year.
The gains and losses resulting from the actuarial valuation
are immediately recorded in other comprehensive income as
remeasurements of employee benefits. The return on plan
4.12.1 Actuarial assumptions
Discount rate (weighted)
Future salary increases
Future pension increases
The discount rates are determined by referencing market
yields at the end of the reporting period on AA- and AAA-
rated corporate bonds. In recent years, longevity has
increased in all major countries in which the Group sponsors
pension plans. The Group sets mortality assumptions after
considering the most recent statistics available and uses
generational mortality tables to estimate probable future
mortality improvements.
assets (excluding interest based on the discount rate) and
any change in the effect of an asset ceiling are also record-
ed in this item. Remeasurements of employee benefits are
not recycled through the income statement at any later point
in time.
Pension assets and pension liabilities in different defined
benefit plans are not offset unless the Group has a legally
enforceable right to use the surplus in one plan to settle
obligations in the other plan.
Employee benefits – defined contribution plans. In addi-
tion 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 income
statement to which the contributions relate.
Employee benefits – other long-term employment bene-
fits. Other long-term employment benefits include jubilee,
early retirement, or other long-term service benefits, as well
as deferred compensation, if not due to be settled within
12 months after the year-end.
The obligations for other long-term employment benefits are
disclosed as provisions for personnel expenses. The mea-
surement of these obligations differs from defined benefit
plans in that all actuarial gains and losses are recognized
immediately in the income statement.
2017 2016
0.8% 0.7%
1.0% 1.5%
0.2% 0.2%
Risk Sharing. As in prior year the defined benefit obligation
was valued using a risk sharing approach. This approach
reflects the shared burden among employer and employees
to keep the pension fund balanced in case this is necessary.
The assumptions changed relate to the possible measures
provided by Swiss pension law.
 FINANCIAL REPORT
Bühler Annual Report 2017
175

Sensitivities of significant actuarial assumptions. The
discount rate and the future increase in salaries were identi-
fied as significant actuarial assumptions. The following im-
pacts on the defined benefit obligation are to be expected:
A 0.25 % increase / decrease in the discount rate would
lead to an increase of 3.3 % (prior year: 3.5 %) /
a decrease of 3.6 % (prior year: 3.8 %) in the defined
benefit obligation.
A 0.25 % increase / decrease in the expected increase
in salaries would lead to a  decrease of less than 0.2 %
(prior year: 0.3 %) / increase of less than 0.2 %
(prior year: 0.4 %) in the defined benefit obligation.
The sensitivity analysis is based on realistically possible
changes as of the end of the reporting year.
The average duration of the defined benefit plan obligation
at the end of the reporting period is 13.8 years (prior year:
14.3 years).
The cost of defined benefit pension plans and other long-
term employee benefits is determined using actuarial valua-
tions. Actuarial valuations involve making assumptions about
discount rates, future salary increases, mortality rates, and
future pension increases. Due to the long-term nature of
these plans, such estimates are subject to significant uncer-
tainty.

2017 2016
4.12.2 Reconciliation of defined benefit obligation and fair value of plan assets CHF m CHF m

Defined benefit obligation at January 1 1,391.1 1,341.5

Interest costs 9.4 20.6
Current service costs (employer) 22.6 24.1
Contributions by plan participants 17.6 17.9
Past service costs –2.6 0.0
Benefits (paid)/deposited –71.1 –63.5
Other effects 0.9 0.7
Remeasurements on obligations 17.6 54.9
Currency translation adjustments 8.6 –5.1

Defined benefit obligation at December 31 1,394.1 1,391.1

Reconciliation of the fair value of plan assets

Fair value of plan assets at January 1 1,241.7 1,190.7
Interest 8.1 18.1
Contributions by the employer 28.1 28.9
Contributions by plan participants 17.6 17.8
Benefits (paid)/deposited –71.1 –63.5
Return on plan assets (excluding interest) 119.0 53.9
Currency translation adjustments 5.9 –4.2

Fair value of plan assets at December 31 1,349.3 1,241.7

Actual return on plan assets 127.1 72.0
176

2017 2016
4.12.3 Remeasurements of employee benefits CHF m CHF m

Return on plan assets excluding interest income –119.0 –53.9

Current-year actuarial loss (gain) on benefit obligation:

– change in demographic assumptions –0.2 –5.3
– change in financial assumptions –29.7 133.2
– experience adjustments 47.5 –73.0
Remeasurements recognized in other comprehensive income –101.4 1.0

Cumulative amount recognized in other comprehensive income 184.6 286.0

2017 2016
4.12.4 Reconciliation of the amount recognized in the statement of financial position at year-end CHF m CHF m

Present value of funded defined benefit obligation 1,394.1 1,391.1

Fair value of plan assets 1,349.3 1,241.7
Deficit/(surplus) 44.8 149.4

Liability (asset) recognized in the statement of financial position 44.8 149.4

Thereof recognized as separate asset –31.8 –6.9

Thereof recognized as separate liability 76.6 156.3

2017 2016
4.12.5 Pension expenses recognized in the statement of income CHF m CHF m

Current service costs (employer) 22.6 24.1

Net interest employee benefit 1.3 2.6
Past service costs –2.6 0.0
Other effects 0.8 0.7

Expenses recognized in the statement of income 22.1 27.4

Thereof service costs and administration costs 20.8 24.8

Thereof net interest on the net defined benefit liability (asset) 1.3 2.6

2018
4.12.6 Best estimate of contributions CHF m

Contributions by the employer 29.5

 FINANCIAL REPORT
Bühler Annual Report 2017
177

2017 2016
4.12.7 Plan assets at fair value consist of CHF m CHF m

Equity instruments third parties 391.9 337.7

Debt instruments third parties 374.5 368.8
Real estate 378.2 369.8
Cash and cash equivalents 63.2 38.8
Others 141.5 126.6

Total plan assets at fair value 1,349.3 1,241.7

Thereof quoted 1,349.2 1,241.5

Thereof unquoted 0.1 0.2

2017 2017 2016 2016

4.12.8 Information about significant plans Switzerland Germany Switzerland Germany

Discount rate 0.7% 1.9% 0.6% 1.3%

Future salary increases 1.0% 1.5% 1.5% 1.5%
Costs of defined benefit plans 19.8 1.5 25.1 1.7
Remeasurements employee benefits –82.1 –15.0 –13.4 10.0

2017 2016
4.12.9 Defined contribution plan CHF m CHF m

Expenses for defined contribution plan 6.2 6.3

4.13 Share capital

As of December 31, 2017, 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 nom-
inal value of CHF 100 each and 112,500 (prior year: 112,500)
with nominal value of CHF 40 each.
178

5. Segment reporting
Segment information. The Group consists of two reportable
segments which are identified on the basis of internal busi-
ness updates that are regularly reviewed by the Chief Exec-
utive Officer (CEO). The CEO, being the Chief Operating
Decision Maker, regularly reviews the allocation of resources
to the two operating segments. The group is managed under
its businesses Grains & Food and Advanced Materials.
such as the processing of grains, rice, cocoa, coffee, and
other raw materials for intermediate and finished products.
Advanced Materials: Engineering and sale of solutions for
die-casting, grinding and dispersion, and surface-coating
technologies in high-volume application areas such as auto-
motive, optics, inks, and batteries.

Grains & Food: Engineering and sale of industrial process

technologies and solutions for the food and feed industry,

5.1 Segment reporting

Grains & Advanced Corporate
Foods Materials Functions Group
Segment reporting 2017 CHF m CHF m CHF m CHF m

Segment revenue 2,000.2 640.4 32.7 2,673.3

Less intersegment revenue –0.8 –0.8 0.0 –1.6

Total segment revenue third parties 1,999.5 639.6 32.7 2,671.7

EBIT 136.5 57.5 10.8 204.8

in % of revenue 6.8% 9.0% 32.9% 7.7%

Non-current assets 532.7 173.0 60.2 765.9

Grains & Advanced Corporate

Foods Materials Functions Group
Segment reporting 2016 CHF m CHF m CHF m CHF m

Segment revenue 1,874.5 537.5 38.3 2,450.2

Less intersegment revenue –1.3 –0.3 0.0 –1.6

Total segment revenue third parties 1,873.2 537.1 38.3 2,448.6

EBIT 121.0 45.4 7.2 173.6

in % of revenue 6.5% 8.4% 18.9% 7.1%

Non-current assets 488.4 160.2 61.5 710.2

Internal and external reporting are both based on the same

valuation and accounting principles, and there is therefore
no need to provide a reconciliation.

The business results are carried over to the Group's consol-

idated figures by including the results of units with no market
operations as well as consolidation effects.
 FINANCIAL REPORT
Bühler Annual Report 2017
179

5.2 Geographical information

2017 2016
Segment revenue CHF m CHF m

North America 426.6 422.5

South America 171.1 147.4
Europe 773.8 746.4
Middle East & Africa 413.1 370.2
South Asia 147.7 148.0
Asia 739.4 614.1

Total 2,671.7 2,448.6

– thereof Switzerland 46.9 80.0

– thereof USA 283.6 306.9
– thereof China 436.7 339.9

2017 2016
Segment non-current assets CHF m CHF m

North America 101.4 111.1

South America 3.9 3.4
Europe 443.5 410.3
Middle East & Africa 16.6 16.9
South Asia 12.6 13.3
Asia 187.9 155.2

Total 765.9 710.2

– thereof Switzerland 134.8 128.6

– thereof USA 100.7 110.5
– thereof China 178.8 147.2

The information about geographical areas is determined

based on the Group’s operations. The Group operates in six
geographical areas: North America, South America, Europe,
Middle East & Africa, South Asia, and Asia. Revenues are
shown based on the physical location of the equipment.
180

6. Other disclosures

6.1 Assets pledged or assigned to secure own liabilities

In connection with the long-term loan from related parties of
CHF 43.0 million and open legal cases, assets of CHF 45.0 mil-
lion and CHF 1.2 million, respectively (prior year: CHF 45.0 mil-
lion and CHF 1.4 million) serve as collateral for own liabilities
where the right of disposal is limited.

6.2 Related parties

Related-party transactions. A loan toward the sharehold-
ers in the amount of CHF 74.5 million (prior year: CHF 70.0 mil-
lion) is disclosed under other non-current financial assets.
Loans from the shareholders of CHF 109.5 million (prior year:
CHF  121.5  million) are disclosed under long-term financial
liabilities and of CHF 12.4 million (prior year: CHF 12.4 million)
under short-term financial liabilities.
Lease payments to related parties amounted to CHF 23.9
million (prior year: 25.2 million) and are included in other op-
erating expenses. Other related-party positions are disclosed
separately in the notes.
Liabilities to pension plans amounted to CHF 0.2 million as
per 2017 (prior year: CHF 0.2 million). This amount is includ-
ed in other short-term liabilities.
Key management compensation. Key management (de-
fined as Group Management and Board of Directors) re-
ceived a  total short-term compensation of CHF  7.7  million
(prior year: CHF 8.2 million). In addition, pension and social
security contributions of CHF  1.0  million (prior year:
CHF  1.0  million) are recorded as expense. The provisions
for other long-term benefits amount to CHF 17.5 million (prior
year: CHF 5.6 million).
The Bühler Group operates deferred compensation plans for
members of the management. The deferred compensation
plans comprise a vesting period of 3 years and an execution
period of 10 years from the grant date. The amounts are
charged to the income statement over the relevant 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 net profit for the
3 preceding years and equity at year-end.

6.3 Government grants

Government grants are offset with the items of expense
which they finance. Government grants related to assets are
deducted from the assets in deriving the carrying amount of
the asset. In 2017 the Group received government grants of
CHF 2.0 million (prior year: nil).
 FINANCIAL REPORT
Bühler Annual Report 2017
181

6.4 Proposal of the Board of Directors

At the General Meeting, the Board of Directors proposes per registered share with a  nominal value of CHF 40. The
a dividend of CHF 21.0 million (prior year: CHF 18.0 million) dividend payment to the shareholders of Bühler Holding AG
or CHF 140 (prior year: CHF 120) per registered share with amounted to CHF 18.0 million in the financial year 2017 (pri-
a nominal value of CHF 100 and CHF 56 (prior year: CHF 48) or year: CHF 15.0 million).

6.5 Release for publication of the consolidated financial statements

The consolidated financial statements were released for pub-
lication by the Board of Directors of Bühler Holding AG on
February 6, 2018.

6.6 Subsequent events

Acquisition of Haas Group, Vienna, Austria.
On January 9, 2018, the Group acquired 100% of the Haas
Group, a privately owned world market leader of wafer, bis-
cuits, and confectionery production systems. Total revenue
of the Haas Group in 2016 amounted to EUR 305 million.
Updated financial figures are not yet available.
182

Report of the statutory auditor

to the General Meeting of Bühler Holding AG
Uzwil

Report on the audit of the consolidated financial statements

Opinion
We have audited the consolidated financial statements of Bühler Holding AG and its subsidiaries (the
Group), which comprise the consolidated income statement and consolidated statement of comprehensive
income for the year ended 31 December 2017, the consolidated balance sheet as at 31 December 2017, the
consolidated statement of cash flows and consolidated statement of changes in equity for the year then
ended and notes to the consolidated financial statements, including a summary of significant accounting
policies.
In our opinion, the consolidated financial statements (pages 131 - 181) give a true and fair view of the
consolidated financial position of the Group as at 31 December 2017 and its consolidated financial perfor-
mance and its consolidated cash flows for the year then ended in accordance with the International Finan-
cial Reporting Standards (IFRS) and comply with Swiss law.

Basis for opinion

-
We conducted our audit in accordance with Swiss law, International Standards on Auditing (ISAs) and
Swiss Auditing Standards. Our responsibilities under those provisions and standards are further de-
scribed in the “Auditor’s responsibilities for the audit of the consolidated financial statements” section of
our report.
We are independent of the Group in accordance with the provisions of Swiss law and the requirements of
the Swiss audit profession, as well as the IESBA Code of Ethics for Professional Accountants, and we have
fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Our audit approach

Overview Overall Group materiality: CHF 10,900,000

•
We concluded full scope audit work at 17 Group companies in
11 countries.
•
These group companies represented 79% of the Group's revenue.

As key audit matters the following areas of focus have been identi-
fied:
•
Accounting of production orders
•
Impairment testing of goodwill

PricewaterhouseCoopers AG, Birchstrasse 160, Postfach, CH-8050 Zürich, Switzerland

Telefon: +41 58 792 44 00, Telefax: +41 58 792 44 10, www.pwc.ch






 


 


















 FINANCIAL REPORT
Bühler Annual Report 2017
183

Audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion
on the consolidated financial statements as a whole, taking into account the structure of the Group, the
accounting processes and controls, and the industry in which the Group operates.
The audit strategy for the audit of the consolidated financial statements was determined taking into ac-
count the work performed by the component auditors. As Group auditor, we performed the audit of the
consolidation, disclosures and presentation of the consolidated financial statements and of the impair-
ment testing of goodwill. Where audits were performed by component auditors, we ensured that, as
Group auditor, we were adequately involved in the audit in order to assess whether sufficient appropriate
audit evidence was obtained from the work of the component auditors to provide a basis for our opinion.
Our involvement comprised communicating the risks identified at Group level, specifying the audit proce-
dures relating to the accounting of production orders, specifying the materiality thresholds to be applied,
making visits to selected subsidiaries and component auditors abroad, conducting telephone calls with the
component auditors during the interim audit and the year-end audit and analysing the reporting.

Materiality
The scope of our audit was influenced by our application of materiality. Our audit opinion aims to provide
reasonable assurance that the consolidated financial statements are free from material misstatement.
Misstatements may arise due to fraud or error. They are considered material if, individually or in aggre-
gate, they could reasonably be expected to influence the economic decisions of users taken on the basis of
the consolidated financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality, in-
cluding the overall Group materiality for the consolidated financial statements as a whole as set out in the
table below. These, together with qualitative considerations, helped us to determine the scope of our audit
and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements,
both individually and in aggregate, on the consolidated financial statements as a whole.

Overall Group materiality CHF 10,900,000

How we determined it 5% of profit before taxes

Rationale for the materiality We chose profit before taxes as the benchmark because, in our view,
benchmark applied it is the benchmark against which the performance of the Group is
most commonly measured, and it is a generally accepted benchmark
for materiality considerations.

We agreed with the Audit Committee that we would report to them misstatements above CHF 450,000
identified during our audit as well as any misstatements below that amount which, in our view, warranted
reporting for qualitative reasons.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the consolidated financial statements of the period under review. These matters were addressed
in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
184
Accounting of production orders
Key audit matter
The Bühler Group has production orders, which
are accounted for using the percentage-of-com-
pletion (PoC) method in accordance with IAS 11
‘Construction Contracts’. In the year under re-
view, revenue from production orders in the
amount of CHF 2,118.2 million were recorded
on the basis of the PoC method. The percentage
of completion is determined based on the in-
curred direct costs attributable to the contracts.
Management estimates the progress of projects
as of the balance sheet date and the costs to be
incurred until their completion. An incorrect es-
timate could have a significant impact on the
recorded revenue and the net profit of the
Group.
Please refer to pages 137 (Use of estimates),
page 153 (Revenue) and page 168 (Production
orders in progress) in the notes to the consoli-
dated financial statements.
How our audit addressed the key audit matter
Our audit of the production orders using the PoC
method mainly comprised of the following proce-
dures:
•
We assessed the design and the existence of the
key controls regarding the production orders and
tested the effectiveness of selected controls.
•
We assessed whether the internal guidelines re-
garding the approval of the costs and margins had
been respected.
•
We selected various production orders (sample
testing based on the contract volumes, the contri-
bution margin and changes in the margin com-
pared with prior year and the planning phase)
and focussed our testing on the following, in par-
ticular:
–
We assessed the contract-related calculations
to determine whether the contractual terms
and the approved planned costs had been rec-
orded appropriately.
–
We discussed with the project controllers and
project managers the progress of the projects
based on the latest project accounts, the costs
still to be incurred until their completion and
changes in the margin.
–
We obtained written information from the le-
gal representatives of the Group. We inspected
this written information with regard to indica-
tions of potential quality deficiencies or penal-
ties for non-performance and assessed
whether these matters were presented appro-
priately in the consolidated financial state-
ments.
•
For the production orders completed during the
year under review, we compared various final pa-
rameters with the estimates made in the planning
phase or those as of the previous balance sheet
date in order to assess, with hindsight, the accu-
racy of the estimates made by Management.
•
In addition, we examined and discussed the re-
sults of the reviews performed by Internal Audit
of the production orders.
Our audit approach allowed us to make an adequate
assessment of the accounting applied to the produc-
tion orders.

Impairment testing of goodwill
Key audit matter
The impairment testing of goodwill was deemed
a key audit matter for the following two reasons:
Goodwill is a significant item on the consoli-
dated balance sheet (CHF 242.5 million); it is
not amortised but tested for impairment at least
annually. In calculating the value-in-use for
these tests, the Board of Directors and Manage-
ment have significant scope for judgement in
defining the cash-generating units (CGUs), in
allocating the goodwill and net operating assets
to the CGUs and in determining the underlying
assumptions (discount rate, growth rates, reve-
nue growth and EBIT margin growth).
Management adopted an established process in
order to forecast the cash flows. The Board of
Directors monitored adherence to this process
and approved the impairment tests conducted
by Management.
Please refer to page 137 (Use of estimates) and
pages 162 - 165 (Intangible assets) in the notes
to the consolidated financial statements.
Other information in the annual report
The Board of Directors is responsible for the other information in the annual report. The other infor-
mation comprises all information included in the annual report, but does not include the consolidated fi-
nancial statements, the stand-alone financial statements of Bühler Holding AG and our auditor’s reports
thereon.
FINANCIAL REPORT
Bühler Annual Report 2017
185
How our audit addressed the key audit matter
In our audit of the impairment testing of goodwill,
we performed the following main audit procedures:
•
We assessed the design and the existence of the
key controls regarding the impairment testing of
goodwill. Further, we checked whether the Board
of Directors approved the impairment tests.
•
We assessed how the CGUs were defined, taking
into account the accounting standards and our
knowledge of the organisation of the Group.
•
We assessed the appropriateness of the procedure
for allocating goodwill and net operating assets to
the CGUs.
•
We compared the revenue and the EBIT of the
year under review with the budget approved by
the Board of Directors in order to identify, in ret-
rospect, any forecasts that were too optimistic
and to assess the accuracy of the estimates that
were made.
•
We performed plausibility checks on the key as-
sumptions Management used for the impairment
tests as well as on the changes in net working cap-
ital resulting from the application of these as-
sumptions. To this end, we involved our internal
valuation experts, who compared the assump-
tions with data from analogous companies and
market data. Further, we assessed the technical
and arithmetical correctness of the valuation
model.
•
In addition, we assessed the sensitivity analyses
carried out by Management. Further, we per-
formed our own sensitivity analyses using differ-
ent discount rates, revenues and gross profit mar-
gins. These analyses enabled us to assess any po-
tential impairment of the goodwill.
•
We assessed the appropriateness of the disclo-
sures in the notes to the financial statements in
accordance with IAS 36 ‘Impairment of Assets’.
We consider the valuation process and the assump-
tions applied by Management to be an appropriate
and adequate basis for the impairment testing of the
goodwill.
186

Our opinion on the consolidated financial statements does not cover the other information in the annual
report and we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the
other information in the annual report and, in doing so, consider whether the other information is materi-
ally inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that
there is a material misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.

Responsibilities of the Board of Directors for the consolidated financial statements

The Board of Directors is responsible for the preparation of the consolidated financial statements that
give a true and fair view in accordance with IFRS and the provisions of Swiss law, and for such internal
control as the Board of Directors determines is necessary to enable the preparation of consolidated finan-
cial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless the Board of Directors either intends to liquidate
the Group or to cease operations, or has no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s re-
port that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with Swiss law, ISAs and Swiss Auditing Standards will always de-
tect a material misstatement when it exists. Misstatements can arise from fraud or error and are consid-
ered material if, individually or in the aggregate, they could reasonably be expected to influence the eco-
nomic decisions of users taken on the basis of these consolidated financial statements.
A further description of our responsibilities for the audit of the consolidated financial statements is lo-
cated at the website of EXPERTsuisse: http://expertsuisse.ch/en/audit-report-for-public-companies.
This description forms part of our auditor’s report.

Report on other legal and regulatory requirements

In accordance with article 728a paragraph 1 item 3 CO and Swiss Auditing Standard 890, we confirm that
an internal control system exists which has been designed for the preparation of consolidated financial
statements according to the instructions of the Board of Directors.
We recommend that the consolidated financial statements submitted to you be approved.

PricewaterhouseCoopers AG

René Rausenberger Philipp Gnädinger

Audit expert Audit expert
Auditor in charge

Zürich, 6 February 2018

 FINANCIAL REPORT
Bühler Annual Report 2017
187

Financial Statements
Bühler Holding AG
188

Income statement Bühler Holding AG

2017 2016
Notes CHF m CHF m

Investment income 11 58.3 48.2

Financial income 12 19.8 16.4
Exchange gains on foreign currency valuation 13 16.7 0.0
Other operating income 14 10.3 4.4

Total operating income 105.1 69.0

Investment expenses 15 –11.6 0.0

Financial expenses 16 –7.1 –0.8
Exchange losses on foreign currency valuation 13 0.0 –8.6
Other operating expenses 17 –8.0 –11.3

Operating expenses –26.7 –20.7

Profit before taxes 78.4 48.3

Taxes –1.8 –0.6

Net profit 76.6 47.7

 FINANCIAL REPORT
Bühler Annual Report 2017
189

Balance sheet Bühler Holding AG

2017 2016
Assets Notes CHF m CHF m

Cash and cash equivalents 440.4 26.1

Other accounts receivable third parties 0.2 0.2
Other accounts receivable group 5 97.7 81.6
Current loans third parties 0.2 0.3
Current loans group 5 49.4 52.4
Accrued income and prepaid expense 0.1 0.0

Current assets 588.0 160.6

Non-current securities 4.3 0.0

Other financial assets third parties 2.3 0.0
Other financial assets related parties 8 82.3 79.3
Other financial assets group 6 377.2 346.3
Investments 18 706.3 697.1

Non-current assets 1,172.4 1,122.7

Total assets 1,760.4 1,283.3

Equity and liabilities

Financial liabilities group 7 22.2 48.7

Accounts payables related parties 0.6 0.6
Accounts payables group 7 134.2 120.3
Short-term provisions 10 26.0 20.0
Other liabilities group 7 0.0 0.1
Deferred income and accrued expense 3.0 0.3

Current liabilities 186.0 190.0

Financial liabilities third parties 9 420.0 0.0

Financial liabilities related parties 8 66.5 66.5
Long-term provisions 10 2.5 0.0

Non-current liabilities 489.0 66.5

Total liabilities 675.0 256.5

Share capital 15.0 15.0

Legal reserves 7.5 7.5
Other free reserves 275.6 275.6
Available earnings brought forward from prior year 710.7 681.0
Net profit 76.6 47.7

Shareholders’ equity 1,085.4 1,026.8

Total shareholders’ equity and liabilities 1,760.4 1,283.3

190

Notes to the financial statements

Bühler Holding AG

1 General information 6 Other financial assets group

The financial statements of Bühler Holding AG, domiciled in Financial assets mainly include loans to Group companies,
Uzwil SG, were prepared in accordance with the regulations which are granted at market conditions and are long-term
of Swiss financial reporting law. (more than one year).

Bühler Group prepares consolidated financial statements on

a Group level according to International Financial Reporting
Standards (IFRS). Therefore, Bühler Holding AG does not
publish additional notes, a cash flow statement, and man-
agement reporting according to article 961d Swiss Code of
Obligations.
7 Liabilities group
Liabilities Group consist primarily of short-term liabilities re-
lated to cash pooling (mainly Bühler AG, Uzwil) as part of the
Groups' cash management.

8 Other financial assets/liabilities related parties

2 Valuation principles
The financial statement accounting policies meet the require-
ments of Swiss financial reporting law. The main financial
statement line items are accounted for as described below.
The balance sheet positions in foreign currency have been
valued at the following closing rates:
These loans are owed from and to the shareholders as well
as from other related parties (associates).
9 Financial liabilities third parties
This position contains corporate bonds issued to third par-
ties.

2017 2016
CHF CHF Nominal Interest Period Expiration
amount in CHF Valor rate of validity nominal value
CNY 0.1502 0.1477
180 Mio. 38‘960‘607 0.10% 12/21/2017 – 12/21/2022
EUR 1.1710 1.0760 12/21/2022
GBP 1.3190 1.2620 240 Mio 38‘960‘608 0.60% 12/21/2017 – 12/21/2026
USD 0.9820 1.0270 12/21/2026

Loans to Group subsidiaries are recorded at their nominal

value. If necessary, value adjustments are made for potential
impairment losses. 10 Provisions
This item mainly includes provisions for currency risks relat-
ing to loans to Group companies and accounts receivable
3 Number of full-time equivalents from Group companies.
The number of full-time equivalents is on average less than
10 employees (prior year: less than 10 employees).
11 Investment Income
This position mainly contains dividend income from subsid-
4 Definition of related parties and Group companies iaries and other participations.
Related parties are companies which are directly or indirect-
ly owned by the Bühler family. Also included are members of
the Bühler family as well as the Board of Directors and com- 12 Financial income
panies owned by members of the Board of Directors of the Financial income mainly includes interest income on loans to
Bühler Group. Group companies.

Group companies are companies in which Bühler Group

holds direct or indirect investments and are included in the
consolidated Group financial statements.
5 Other accounts receivable and current loans group
Accounts receivable and current loans Group mainly include
short-term loans to Group companies for working capital
financing purposes.
13 Exchange gains/losses on foreign currency valuation
Exchange gains/losses on foreign currency valuation con-
tains currency gains and losses. In previous years gains were
shown in financial income and expense.
14 Other operating income
Other operating income contains licence fee income.
 FINANCIAL REPORT
Bühler Annual Report 2017
191

15 Investment expenses 17 Other operating expenses

Investment expenses include the liquidation loss of a Group Other operating expenses predominantly include negative
company and impairments. value adjustments of loans as well as service fee expenses.

16 Financial expenses 18 Investments

Financial expenses primarily include interest on foreign ex-
penses paid to Group companies.
Investments are recorded at cost less economically neces-
sary adjustments. The principal investments that are held
directly or indirectly by Bühler Holding AG are shown in the
table on page 141. The participation rate is equal to the vot-
ing rights and share in capital.

19 Contingent liabilities
2017 2016
CHF m CHF m
Sureties, guarantees and other obligations in favor of Group companies 548.4 487.0
Sureties, guarantees and other obligations in favor of third parties 84.4 70.8

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

2017 2016
CHF m CHF m

Balance brought forward from prior year 710.7 681.0

Net profit of the year 76.6 47.7
Available earnings at the disposal of the General Meeting 787.3 728.7

The Board of Directors proposes to the General Meeting:

– The distribution of a dividend 21.0 18.0

– Allocation to other reserves 0.0 0.0

– Carry forward to new accounting period 766.3 710.7

The statutory obligation of appropriation to reserves is waived

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

21 Deviation from the continuity of the presentation all times. The issued letter of comfort is valid as long as
In 2017 exchange gains/losses on foreign currency valuation Bühler Barth GmbH belongs to the Bühler Group, at the
are disclosed net in one financial statement account line item. latest until December 31, 2020.
In previous year's gains were reflected in financial Income
and the losses in financial expenses.
23 Significant events after the balance sheet date
22 Letter of comfort On January 9, 2018, Bühler Holding AG acquired 20% of
Bühler Holding AG issued a letter of comfort for Bühler the Haas Group, a privately owned world market leader in
Barth GmbH, Germany on 17 August 2017. With this letter wafer, biscuits, and confectionery production systems.
of comfort, Bühler Holding AG commits itself to financially
support Bühler Barth GmbH in order that Bühler Barth
GmbH is able to meet its current and future obligations at
192

Report of the statutory auditor

to the General Meeting of Bühler Holding AG
Uzwil

Report on the audit of the financial statements

Opinion
We have audited the financial statements of Bühler Holding AG, which comprise the income statement for
the year ended December 31, 2017, the balance sheet as at 31 December 2017 and notes, including a sum-
mary of significant accounting policies.
In our opinion, the financial statements (pages 188 - 191) as at 31 December 2017 comply with Swiss law
and the company’s articles of incorporation.

Basis for opinion

We conducted our audit in accordance with Swiss law and Swiss Auditing Standards. Our responsibilities
under those provisions and standards are further described in the “Auditor’s responsibilities for the audit
of the financial statements” section of our report.
We are independent of the entity in accordance with the provisions of Swiss law and the requirements of
the Swiss audit profession and we have fulfilled our other ethical responsibilities in accordance with these
requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to pro-
vide a basis for our opinion.

Our audit approach

Overview Overall materiality: CHF 17,600,000

We tailored the scope of our audit in order to perform sufficient

work to enable us to provide an opinion on the financial statements
as a whole, taking into account the structure of the entity, the ac-
counting processes and controls, and the industry in which the entity
operates.

As key audit matter the following area of focus has been identified:
Impairment testing of investments in subsidiaries

PricewaterhouseCoopers AG, Birchstrasse 160, Postfach, CH-8050 Zürich, Switzerland

Telefon: +41 58 792 44 00, Telefax: +41 58 792 44 10, www.pwc.ch






 


 


















 FINANCIAL REPORT
Bühler Annual Report 2017
193

Audit scope
We designed our audit by determining materiality and assessing the risks of material misstatement in the
financial statements. In particular, we considered where subjective judgements were made; for example,
in respect of significant accounting estimates that involved making assumptions and considering future
events that are inherently uncertain. As in all of our audits, we also addressed the risk of management
override of internal controls, including among other matters consideration of whether there was evidence
of bias that represented a risk of material misstatement due to fraud.

Materiality
The scope of our audit was influenced by our application of materiality. Our audit opinion aims to provide
reasonable assurance that the financial statements are free from material misstatement. Misstatements
may arise due to fraud or error. They are considered material if, individually or in aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of the financial
statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality, in-
cluding the overall materiality for the financial statements as a whole as set out in the table below. These,
together with qualitative considerations, helped us to determine the scope of our audit and the nature,
timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually
and in aggregate, on the financial statements as a whole.

Overall materiality CHF 17,600,000

How we determined it 1% of total assets

Rationale for the materiality We chose total assets as the benchmark because, in our view, it is a
benchmark applied relevant benchmark against which holding companies can be as-
sessed, and it is a generally accepted benchmark with regard to ma-
teriality considerations in holding companies.

We agreed with the Audit Committee that we would report to them misstatements above CHF 450,000
identified during our audit as well as any misstatements below that amount which, in our view, warranted
reporting for qualitative reasons.

Report on key audit matters based on the circular 1/2015 of the Federal Audit Oversight
Authority
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial statements of the period under review. These matters were addressed in the context
of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
194

Impairment testing of investments in subsidiaries

Key audit matter
Investments in subsidiaries represent a significant
balance sheet line item (CHF 706.3 million).
The Board of Directors uses business valuations in
order to test these investments for impairment.
The business valuations are calculated using the
‘practitioner’s method’. In cases were indications
of impairment exist, the book values of the invest-
ments are compared with the impairment test ap-
plied to assess the goodwill at the Group level. In
calculating these business valuations, there is sig-
nificant scope for judgement in determining the
underlying assumptions, particularly with regard
to the future business results and the discount rate
to apply to the forecast cash flows.
Management adopts a specified impairment test-
ing process to identify the potential need for the
impairment of investments.
Please refer to pages 191 (investments) in the
notes to the financial statements.
How our audit addressed the key audit matter
In our audit of the investments in subsidiaries, we
performed the following main audit procedures:
•
We assessed the design and the existence of the
key controls regarding the valuation of the in-
vestments.
•
We compared the book value of the invest-
ments in the year under review with the results
from using the practitioner’s method of valua-
tion. If there were indications of impairment,
we compared the book values of the invest-
ments with the impairment test applied to as-
sess the goodwill at the Group level.
•
We performed plausibility checks on the key
assumptions applied by Management used for
the impairment tests (discount rate, growth
rates, revenue growth and EBIT margin
growth). To this end, we involved our internal
valuation experts, who compared the assump-
tions with data from analogous companies and
market data. Further, we assessed the technical
and arithmetical correctness of the valuation
model.
We consider the valuation process and the as-
sumptions used to be an appropriate and adequate
basis for the impairment testing of investments in
subsidiaries as at 31 December 2017.

Responsibilities of the Board of Directors for the financial statements

The Board of Directors is responsible for the preparation of the financial statements in accordance with
the provisions of Swiss law and the company’s articles of incorporation, and for such internal control as
the Board of Directors determines is necessary to enable the preparation of financial statements that are
free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors is responsible for assessing the entity’s abil-
ity to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the Board of Directors either intends to liquidate the entity
or to cease operations, or has no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that in-
cludes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with Swiss law and Swiss Auditing Standards will always detect a material mis-
statement when it exists. Misstatements can arise from fraud or error and are considered material if, indi-
vidually or in the aggregate, they could reasonably be expected to influence the economic decisions of us-
ers taken on the basis of these financial statements.
 FINANCIAL REPORT
Bühler Annual Report 2017
195

A further description of our responsibilities for the audit of the financial statements is located at the web-
site of EXPERTsuisse: http://expertsuisse.ch/en/audit-report-for-public-companies. This description
forms part of our auditor’s report.

Report on other legal and regulatory requirements

In accordance with article 728a paragraph 1 item 3 CO and Swiss Auditing Standard 890, we confirm that
an internal control system exists which has been designed for the preparation of 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 ap-
proved.

PricewaterhouseCoopers AG

René Rausenberger Philipp Gnädinger

Audit expert Audit expert
Auditor in charge

Zürich, 6 February 2018