Hilti Corporation | Company Report 2015

2015

2015

COMPANY REPORT

2015
2015

2015
COMPANY REPORTCOMPANY REPORTCOMPANY REPORT

2015
20152015
COMPANY REPORTCOMPANY REPORTCOMPANY REPORTCOMPANY REPORTCOMPANY REPORT

www.hilti.com

COMPANY REPORTCOMPANY REPORTCOMPANY REPORTTransparency
is a frame of mind that is put into practice daily at Hilti. It is a permanent ﬁxture
in the corporate culture – in its dialogue with customers, in the way it works
with partners and in the way its worldwide teams work with each other.
This way of thinking relates not only to obvious areas such as risk andreputation management and corporate governance, but also characterizes
the company’s socially responsible approach to management, its internaland external communications and its development of products.
ON!Track, a system solution for customer asset management (see article on
page 14 ﬀ.), is just one of the innovative ways in which Hilti takes up the themeof transparency. Further evidence of a practiced culture of openness canbe found in the modern oﬃce spaces at various locations (see Highlights on
page 10 ﬀ.).

That is a good enough reason for this report to focus on transparency:
not only will you ﬁnd it in a number of articles, but it is also illustrated by the
red cover.

The red transparent film provides a clear view of thefacts on pages where this symbol appears.

Hilti

The Hilti 2015
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2015
Company Report
Report 2015

Company Report
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Hilti Report

The Hilti

Company Report 2015
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Reportwww.hilti.com
www.hilti.com

Content.

Editorial
Overview
CEO interview
Highlights 2015
Executive Board
Board of Directors
Corporate responsibility
Key figures

1
26317
52
85
495
78
13
3
901
153
10
576
30
539
8
2232
15
34
6
4746
38
3
8
153
2
1

Hilti Company Report 2015

Dear readers
Although 2015 was a challenging year for us, it ended with highly satisfactory results. The year
started with the decision by the Swiss National Bank to discontinue the Swiss franc’s minimum
exchange rate against the euro, which led to a very strong appreciation of the Swiss currency.
Additionally, we were faced with a substantial economic slowdown in many emerging markets,
continued weaknesses in Europe, the very low oil price and the international sanctions against
Russia. Despite these numerous challenges, we managed to increase our sales in local currencies substantially. While we did quite well relative to the market, with sales growth of just under
6 percent in local currencies, we have not yet achieved our long-term objective of ­significantlyoutperforming the main competitors. The operating result exceeded last year’s good figure,which helped offset the enormous exchange rate burden to a large extent. Net income was nearly at the level of the previous year. Return on sales and return on capital employed even roseslightly and have now reached the upper range of our target corridor. Furthermore, we posted yet
another very good free cash flow of CHF 335 million.
We wish to thank our global team, which has grown to more than 23,000, for having successfully
coped with such a formidable workload in a challenging environment. For Hilti, 2015 was a year thatsaw substantial investments and preparations for accelerated growth rates. As an example, we
increased our research and development spending to CHF 240 million (+8,1%) and beefed up ourworldwide headcount by 1137 employees (+5,1%), mostly in sales. We focussed on investments
in strategically important areas such as digitalization, new software packages and enhancing services for our customers. This will have a positive effect on our results in the next years.
We expect the global construction market to be volatile in 2016 as well. Moreover, we willcontinue to be exposed to major exchange rate fluctuations. Despite this backdrop, we will holdon to our Champion 2020 strategy geared for sustainable growth and market leadership, andare convinced that we will deliver strong financial results and gain market share in the next few
years as well.
This confidence is also nourished by the gratifying results of our periodic customer and employee surveys. The strong energy pervading our company as well as the high level of employee
identification have again brought us a top position among the “World’s 25 Best Multinational
Workplaces 2015” as ranked by the Great Place to Work Institute. Furthermore, we succeeded inincreasing the loyalty of our customers.
Our innovative capacity, the strength of the direct sales approach and our unique corporate culture have been Hilti’s success factors for more than seven decades. In 2016, we will celebrate
the 75th anniversary of our company. In doing so, we will not only look back to our history rich intradition but also to the road ahead in anticipation of many more successful years with our employees, partners and customers all around the world.

Christoph Loos
Chief Executive Officer

Pius Baschera
Chairman of the Board of Directors

3

Hilti develops and produces products, systems and services that feature leading-edge technology
and provide the construction and energy sectors with outstanding added value.

The company.
Hilti stands for innovation, quality and direct customer relationships. Some two-thirds of Hilti’s
more than 23,000 worldwide employees work directly on behalf of customers in Hilti sales organizations and technical service units. They generate more than 200,000 daily interactions with­customers, creating the basis for the ongoing development of new products and services.
The Group’s strategy is aimed at sustainable value creation through market leadership and differentiation. The overarching goal is to create enthusiastic customers on a daily basis and to build
a better long-term future.
As a result, Hilti connects its financial success with a comprehensive responsibility towards
society and the environment. A mutual sense of openness, honesty and tolerance applies to teammembers, partners and suppliers alike.
Guided by the conviction that entrepreneurial growth also generates personal growth, ­Hilti­pursues an employee- and performance-oriented corporate culture. The values of integrity,­courage, teamwork and commitment form a solid foundation and are equally supported by all
worldwide employees.
Hilti Group headquarters are located in Schaan, Principality of Liechtenstein, where the company was founded in 1941 by brothers Eugen and Martin Hilti. All company shares are held by theMartin Hilti Family Trust, a fact that ensures long-term continuity and the ongoing development of
the company.
4Hilti Company Report 2015

The year in figures.
Net sales in CHF million

4,384
4,497

2015
2014
Operating result in CHF million

547
537

2015
2014
Net income in CHF million

410
426

2015
2014
Return on sales (ROS) in %
2015
2014

12.5
11.9

Return on capital employed (ROCE) in %
2015
2014

19.0
16.8

Free cash flow in CHF million
2015
2014

335
383

Employees as at December 31
2015
2014

23,38522,2485

Hilti Company Report 2015

System solutions
for the professional­construction industry.
Hilti provides the construction industry with technologically leading products andsystems, innovative software and comprehensive services. Hilti possesses, inaddition to its business units, its own network of centers for research, production
and logistics. The company employs a direct sales model complete with
consulting and sales units.

Electric tools and accessories
Hilti’s electric tools are renowned for optimal­performance and user comfort. Robust and longlasting, these tools are equipped with special safetyfunctions, such as Active Torque Control (ATC), a
safety cutout feature, or Active Vibration Reduction(AVR). The tools, together with the accessories designed
for optimal and efficient utilization, make construction
site work involving chiseling, grinding and drilling
safer and more productive.

Measuring systems
Hilti’s range of laser, radar and optical tools provide
support for construction professionals during all phasesof their work: starting with staking out positions for
excavation and measuring and laying out foundations,through to detecting concealed objects, leveling andaligning in interior finishing, on to renovation and­maintenance work. Firmly established in the so-calledbuilding information modeling process, Hilti brings­digital planning directly to the construction site.

6Anchor systems
Hilti sets new standards in anchor fastening technology.
The product portfolio comprises chemical and mechanicalanchoring systems and cast-in fasteners. The systems
are designed for ultimate performance, even under the
toughest service conditions, including seismic action. In
addition to software products, such as the PROFIS Anchor
design software, technical services by Hilti engineers andtechnical specialists are available to architects
and planners.

Firestop systems
Hilti provides sustainable firestop systems to preventthe spread of fire, smoke and toxic fumes and alsooffers consulting to architects and planners. The firestop
solutions undergo rigorous testing and correspond tocurrent standards for environmentally compatible construction and energy efficiency. A new software solution
helps to efficiently manage firestop documentation.

Diamond systems
Hilti’s diamond systems allow precise drilling, cutting,
grinding and sawing of concrete and other mineralbuilding materials with less dust or vibration. Machines
perfectly tailored to the application, with accessories
and high-tech diamond cutting tools, ensure optimal
performance, simple and safe operation while keeping
tool wear low.

Direct fastening and screw fastening
Hilti gas-, battery- and environmentally friendly powder-­actuated systems make direct fastening on steel andconcrete simple, safe, fast and productive. Vibration,
noise and dust emissions are reduced to a minimum
compared to other installation methods.
Optimized systems of tools, accessories and ­fasteners
are the foundation for innovative screw fastening
solutions for interior finishing and building envelope
applications.

Installation systems
Hilti has the suitable solution to fasten building equipment and appliances such as pipes. Modular channel
systems and pipe rings, for example, provide flexible
and ­efficient solutions in all kind of private, commercial
and industrial buildings.

7

“2015 hascertainly been thedecisive year forthe success ofChampion 2020.”

A year marked bymassive investments.
CEO Christoph Loos talks about the 2015 business year, the challenges ofthe future and the implementation of Hilti’s Champion 2020 corporate strategy.
Which events had a particularly large inﬂuence on the 2015 business year?
First of all, they were very positive events. We are satisfied with our results even if we have notachieved all our sales targets. We have launched more than 40 great new products and inaugurated our new Innovation Center at our headquarters in Liechtenstein. This year, we broke the
USD1 billion sales mark in North America for the first time while we also opened our new regional head office in Plano, Texas. Overall, the year was characterized by extraordinary dynamics.
Never before in our history have we launched as many initiatives across all business units as in2015, including investments, hiring drives and intensive project work. This will certainly have apositive effect on our figures over the next few years.

8Hilti Company Report 2015

We have, of course, also been faced with challenges, in particular the discontinuation of the
Swiss franc minimum exchange rate against the euro. Furthermore, we experienced a significant
economic slowdown in emerging countries, lower oil prices – which stopped many investments– and the international sanctions against Russia. Nevertheless, we are satisfied and convincedthat 2015 was a landmark year for the implementation of our Champion 2020 corporate strategy.

How does Hilti cope with the new exchange rate reality in the Swiss franc area?
The appreciation of the Swiss currency has substantially impacted our results, by a high doubledigit million Swiss franc amount. After the Swiss National Bank’s decision on January 15, we engaged in intensive discussions as to whether we could continue to pursue our forward strategy,
involving significant investments, under these circumstances.
The answer was a unanimous “yes”. Everyone – from people in sales to the Board of Directors– is backing the strategy and firmly believes in its success. Thanks to this process, the initial stirturned into positive momentum. It is impressive to see how courageous, self-assured and confident our global team acts.

How does Hilti prepare for the challenges of the future?
The inherently volatile construction market forces us to be agile. But most of all, we have tomaster the balancing act between strategic focus and agility. Rather than operating our strategy
in a stop-and-go mode, we have to go ahead with our investments as planned. In addition, we
need a good natural hedge of our inflows and outflows to counteract exchange rate volatility.
Furthermore, we have to achieve greater fixed-cost flexibility to be able to react more quickly.
And this is where we have made considerable progress: Having spread our sales more evenly
around the globe, we are less dependent on Europe. Also in terms of costs, we have obtained awider distribution reflecting our regional sales breakdown. Last but not least, we have steppedup our cooperation with external partners in areas such as logistics, research and development,
which gives us more breathing space. Flexible new working time models in our plants help us
create new and effective scope of action.

Where does Hilti stand in the implementation of the Champion 2020 strategy?
2014 was the year in which we spread the strategy throughout the organization, which created agreat spirit of optimism within the company. In retrospect, 2015 has certainly been the decisive
year for the success of Champion 2020 because this year was clearly marked by massive investments in sales capacities, services and product development. With this, we have built a solid
foundation and are now poised to reap what we have sown, to significantly accelerate our sales
growth and gain new market share.

9Hilti Company Report 2015

Highlights 2015.
New dimension forelectrical fastenings.
The Hilti BX 3-ME is the world’s first battery-powered
fastening tool designed for driving fasteners into hardsurfaces such as concrete and steel. It makes thefastening of cables, lightconnections and distributor boxes not only easier and faster, but also
safer.
The BX 3-ME requires
little pressure during
setting and its recoil is
minimal.

83

percent of customers are happy with
Hilti, according to the 2015 Integrated
Customer Opinion Survey.

25

awards won by Hilti worldwide as
top employer in 2015. Among otherachievements, Hilti placed 22nd in
the Great Place to Work Institute’s
worldwide rankings.

10

6

new Hilti products
were awarded theinternational
Red Dot Awardfor productdesign in 2015.

Touchdown.
Over 30 stories high and costing USD1.1 billion, thenewly completed U.S. Bank Stadium will be the newhome of the Minnesota Vikings American footballclub starting in July 2016. Hilti played a major partin this large-scale construction project, contributing
SAFEset drilling systems, anchors and fire prevention solutions.

A harmonious
building.

The Philharmonie de Paris in France opened its doors
in 2015. The project managers involved in its construction relied on Hilti products and expertise. The entire
building incorporates installation system solutions. Hilti
experts also advised on the internal layout to ensure a
special acoustic experience in the hall.

Technologicalcenterpiece.
30,000 m² surface
area
122 m long
59 m wide
19 m highThe Innovation Center in Schaan, Liechtenstein, officially opened in May 2015. It has
space for around 400 employees who develop and test tomorrow’s technical solutions. Designed with an emphasis on transparency, the new building is an inspiring
environment for the various teams.

Gigantic drilling units.
London’s “Crossrail” project, scheduled for completion in 2018, is expanding and improving the networkof tunnels and railways beneath the city. Hilti worked together with Rowa Tunnelling
Logistics AG to develop two drilling
units with combihammers and builtin suction function. Automation makes holes drilled per
the drilling process safer, more pre- hour by eachcise and more efficient.
drilling unit

125

11

Hilti Company Report 2015

Highlights 2015.
Reliably calculable.
The process of post-installing rebar with chemical anchors is subject to new safety regulations inNorth America. Since 2015, Hilti has been the firstcompany to offer help with these new ­regulations
by providing a full set of online software that­­produces a reliable basis for calculations in linewith the current norms. PROFIS Rebar makesplanning ahead safer and its precise layout saves
time and material on site. The program is accessible in the Hilti Cloud, and the software does notneed to be downloaded or installed.

Significant
works of art.
In May 2015 the Hilti Art Foundation
opened its own exhibition space, an­­extension of the Kunstmuseum Liechtenstein in Vaduz. The new building isin the form of a cube, and 50 selected
works of art – ranging from classicalmodernism to contemporary – are currently on display.

New Austrian­head office.
Hilti Austria opened a new head office in Vienna
in June of 2015. The new building features transparent office space for the 120 Hilti employees
working there. The building also contains a new
Hilti Center flagship store.

12

Hilti North America
on the move.
In 2015, Hilti North America moved its
head office facilities to the city of Plano,
Texas. The different, transparently designed offices, in which more than 300
people work, promote a creative and­efficient approach to working for bothindividuals and groups. The test lab andrepair center were relocated, from Tulsa
to Irving, Texas, which is near Plano.

1,000,000,000

USD in revenue:
Hilti North America managed to achieve
this spectacular feat in December of last year – a historic success.

Optimized Tool Service.
The Hilti Tool Service was launched in2015 and is already offered by many of
the European sales organizations.

3 business days are sufficient for a repair – or the repair
is made free of charge.
A 2-year no-cost repair period (including wear-and-tearcoverage) after the date of purchase.

2.5

millionuses of various Hilti software
solutions by customers in 2015.

1 click on the Hilti website, or one call to customer service, and customers receive the information they need.

13

“The system solution ON!Track makes
for more transparency and creates
an enhanced sense of responsibility
among all stakeholders.”
Jürgen Jäger
Warehouse manager at Max Bögl Group

14

15

Hilti Company Report 2015

With transparency
comes efficiency.
ON!Track connects software, hardware and personal advice and helps customers in theconstruction industry to manage their assets.

The larger the number of construction sites under management, the more complex it is to keep track of equipment andconsumables. Now there is a way to overcome this challenge.
ON!Track, a system-based solution made up of software, hardware and services, creates full asset transparency in terms ofstatus, condition and location. Assets are equipped with robust
RFID and bar code tags that are scanner- or smartphone-readable. This makes for flexible management by different departments and persons, no matter where the assets are located – inthe warehouse, at the office or on the construction site. And
ON!Track comes with training, advice and support.
“Combining technology and customized advice is an essential
success factor for us,” says Hilti product manager Martin Inganäs.
Moreover, customers benefit by a better capacity utilization of
their assets and save time thanks to digitization. ON!Track promotes the correct care and usage of all your equipment and materials. The information being tracked can be easily understoodand acted upon.

The German Max Bögl Group is among the many users of the
ON!Track solution. For two years, the group has sourced Hilti
angle grinders for manufacturing in steel and plant engineering.
Before 2015, the entire stocktaking procedure was performed
with manual lists or Excel files. “Documentation was extremely
cumbersome,” says warehouse manager Jürgen Jäger. In its
search for a more efficient asset management solution, thecompany came across ON!Track and has been using this system since the beginning of 2015 to keep track of all steel andplant engineering assets.
“ON!Track has accelerated our asset management processes
to a significant degree. We no longer have to keep lists, our datais always uptodate and we know if a tool is under repair, in stock
or in use.” For Jürgen Jäger, ON!Track is a “quantum leap in
efficiency improvement” in asset management.

Close cooperation between Max Bögl Groupand Hilti, from left to right: Jürgen Jäger,Helmut Ochsenkühn, Anita Jokiel andRüdiger Schidzig of Max Bögl Group,Peter Neumair, Erwin Schmid, Martin Singer
and Dietmar Bock of Hilti Germany.

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457
2,234,589
eﬃciency
A total of

1,000,000
transparencyeﬃ
ciency38

assets recorded by ON!Track intransparency

four months of operation.
According to ON!Track, assets have changed location

579 transparency

45,00042
eﬃciency42
efficiency

times altogether (four months post-launch)

3,198,715

transparency

17

Hilti Company Report 2015

Strong interface,smart solution.
Downtime on the jobsite is a nuisance and a substantial cost item. Now, Hilti
has developed a simple and effective problem solver: the new diamond core
bit with the X-Change module.
Users of diamond coring technology lose precious time because of stuck core bits, transportof bulky equipment to the jobsite as well as therepair loop needed to replace the worn cutters.
These unproductive work steps are now a thingof the past thanks to Hilti’s new system solutionthat consists of a steel barrel and a removable
X-Change module (cutting ring). All the customer has to do is choose the combinable individual parts suitable for the job. It’s the best ofboth worlds: Carry fewer materials andbe ready for all possible problem solutions. The X-Change module can beremoved from the barrel in no timewith just a simple screwdriver. No
matter, if the core bit gets stuck, if
faced with a different base mate-

18

rial or if the diamond segments are worn – work
can continue with minimum delay.
If you are bold enough to turn a one-piece steel
tube with welded-on cutting segments into a
two-component click-and-lock design, youhave to be pretty confident that the system
actually works. The connecting interface has
to be extremely robust to withstand enormous
forces and yet be easy-to-use at the same time.
“Initially, many customers were extremely skeptical. In situations such as these, it’s our direct
sales teams that make the difference when it
comes to convincing customers that our solution meets their requirements,” says Christoph Amman, Project Manager in the DiamondBusiness Unit.

The solution – a rotary plug-in connection
based on smart geometry – was tested withnumerous customers throughout Europe. After thousands of successful drillings, there
were no questions left. Kristof Decloedt fromthe HVAC specialist company TSVB BVBA, in
Torhout, Belgium, says: “It’s remarkable howmuch time you can save with the X-Change
module. I always have my portable bag withme on the jobsite, which puts me in the position

to solve problems right away and on-site.
That’s a tremendous advancement.” The jury of
the 30th Martin Hilti Innovation Prize, an internal global competition of the Hilti Group, wasequally impressed when it awarded the prize to
the X-Change module in May 2015. “The system solves a large number of customer problems in a straightforward and effective way,”
the jury said when commenting on the winning
project.

Less steel consumption
The X-Change module helps save resources
and is environment-friendly. Compared tothe amount of material used for the production of conventional diamond core bits, the
X-Change module uses an average of 2.3kg
less steel, which adds up to some 2400 tonsof steel per year. On top of that, CO₂ emissions are reduced by 4800 tons as a result of
the lower steel consumption.

19

20

Serving science.
Hilti was involved to a large extent in the construction of
the new MAX IV Laboratory hosted by Lund University in
Sweden. The outcome is a scientiﬁc research facility of
global signiﬁcance.

21

Hilti Company Report 2015

In the world of science, Lund University in Sweden is synonymous with excellence in various disciplines such as medicine, chemistry, physics or mechanical engineering. Here, experts from all over
the world have been involved in research with electromagnetic synchrotron radiation for decades.
Since 1987, Lund University has commissioned three storage rings with twelve beamlines for different experiments. Over the past five years, fourth and fifth storage rings – MAX IV Laboratory – werebuilt, replacing the other three that closed on December 13, 2015. In the process, the capacity of
the laboratory building was doubled to the extent that it can now house up to 28 beamlines, serving
up to 2000 scientists annually. Building the MAX IV Laboratory was a dual challenge as it required
the instalment of the most advanced electromagnetic radiation technology coupled with extremely
stringent safety standards customary for a research facility of this kind.
Swedish companies Peab and Wihlborgs took the lead in the consortium and resorted to Hilti experts for measuring, direct fastening, anchor, screw fastening and installation systems. The construction project was carried out in two stages: First, a tunnel 420 meters long and ten meters widewith two-meter thick walls was built to accommodate the synchrotron linear accelerator. The second stage included the construction of a circular laboratory building, ten to twelve meters in height,
with a circumference of 650 meters, housing the large storage ring for seven beamlines.
During the project, Hilti teamed up with Swedish partner firm Assemblin in charge of heating, sanitation and sprinklers. All installations had to be protected against vibration and noise because of theextremely high demands on stability in the building. Engineers from both Assemblin and Hilti were22

30
Hilti managed
projecttime“Thanks to the use of beams
ready-cut, marked up anddeliveredin sections, we
beams
ready-cut
managed to obtain timesavings of 30 percent acrossdifferent project phases.”

use
38

time
beams
use ready-cut

project 30

Krister Andersson, Project Manager Assemblin

percent

diﬀerent
diﬀ

present on site in a joint calculation and planning effort. Furthermore, both partners had to make sure that there was enoughinstallation material available at all times. Hilti experts also provided efficient fastening know-how, trained craftsmen and offered a customized rail and fastening alternative to conventional
techniques that was both time and cost efficient.

23

“Getting to know students from all over theworld and gaining valuable experience ininternational companies – Unitech has opened
my eyes in many ways. True, I had to leave mycomfort zone but it was definitely worth all thehard work!”
Xavier Moix-Vallribera
Portfolio Manager Hilti Great Britain

Hilti Company Report 2015

Networking
for the future.

When companies and universities cooperate, they create an ideal opportunity tosupport and challenge each other. Hilti is globally engaged in many different ways
at universities.

New perspectives
16 international companies and eight technical universities in Europe
have formed the “Unitech International” partnership. Hilti has supported this organization since its establishment in 2000 and Hilti Executive
Board member Stefan Nöken serves as Unitech’s Vice President.
The one-year program for highly qualified engineering students includes an exchange program at a university abroad as well as an internship with one of the corporate partners. “Unitech creates the perfectlink between theory and practice,” says Xavier Moix-Vallribera. Back in
2011, the Spanish student did his Unitech internship with Hilti and was
hired once he had completed the program. “Hilti was instrumental formy personal and professional development and has opened the door
to the world for me. What more can you ask for?”Xavier Moix-Vallribera studied Industrial Engineering at the­Polytechnic University of Barcelona (UCP). He divided his Unitech year between Dublin, Ireland, where he was an exchange
student, and Hilti in Schaan, Liechtenstein, where he served as
an intern. After completing his master’s thesis in cooperation
with Hilti, he was hired as a Product Manager at Hilti Great Britain
in the Fastening Technology Business Unit. Since 2015, he has
worked as a portfolio manager for the Fastening Technology
Business Unit in Northern Europe.

25

Hilti Company Report 2015

Encouraging innovations
Combining theory and practice is essential
in research and development. That is why in2007 Hilti endowed a chair in Business Process
Management at the University of Liechtenstein.
The primary concern is with the development ofinnovative business models based on modern
information and communications technologies. Cooperation opens up attractive researchand education opportunities for the university.
In turn, Hilti has the opportunity to recruit upand-coming talent and gain early insights into
the latest trends in this academic field and draw
on them for its own initiatives.
Hilti supports the chair not only financially but
also as a primary industry partner in a variety
of projects; these include offering case studies
or problem scenarios for seminars to discuss,and by organizing lectures. It also runs the Hilti
Fellowship Program, which enables selectedstudents working towards master’s degrees togain practical experience with the company invarious countries.

new perspectives

encouraging innovations

learning
andlearning together
togetherandnew perspectives
helping to shape careers
from each
each other
from
other
finding young talents
finding young talents

helping to shape careers

encouraging innovations

26

Finding young talents
Hilti uses talent recruitment and career information events
around the world to present itself as an attractive employer
among students. One such event is an annual job fair for master’s degree graduates at the London Business School.
This is where Hilti Great Britain has established contacts withpotential future employees since 2014 with the objective of
expanding its activities in order to awaken the interest of students at an early stage. In 2016 Hilti representatives will attend
a speaker’s panel as one method to publicize the company andits employment conditions and to build brand awareness in thestudent community – a key driver for the choice of a first or new
employer.

Helping to shape careers
Among other things, in 2015 Hilti team members gave guest lectures about a talent development program and career opportunities for engineers at the University of Tokyo. Among others, Pius Baschera, Chairman of the Board of Directors, spoke to the students. Furthermore, representatives regularly performed advisory functions at lectures ­during which Japanese and American
students were communicating in two languages via Skype – an ideal opportunity to strengthen cooperation. Hilti Japan intends
to further enhance this commitment by planning guest lectures at the University of Tokyo and creating internships for students.

27

“Mixed teams
have proven to
be more creativeand innovative.”
Marci Bonham
General Manager Hilti Ireland

Hilti Company Report 2015

It’s the mix thatmatters.
Nowadays, leading industrial companies rely increasingly on­diverse teams of different genders, cultural backgrounds, career
paths and ages. In particular, companies with a global footprint
put emphasis on Diversity and Inclusion (D&I), with ­demographics
having added momentum to the trend over the past few years.
Companies who are serious about D&I have to address their culture and ­hence
their leadership behavior. By embedding this topic in the Champion 2020
­corporate strategy from the very start, Hilti has made it clear that D&I is a top
management concern.
Marci Bonham, General Manager of Hilti Ireland, sums up her Hilti career:“Five years, four jobs, three countries.” Obviously, such a career is only possible in a context that accepts and fosters individual and cultural diversity. In
this respect, Hilti focuses in particular on strengthening D&I in the three G’s:
­Generation, Gender and Global, with the latter reflecting both origin and cultural background. Furthermore, the policy aims at bringing together people
with different experiences and qualifications.
Inclusion at Hilti is not only about integrating employees with different values,
ideas and opinions. For Hilti inclusion, first and foremost, is a frame of mind.
With this, the company aims to create an inspiring work climate, allowing employees to be themselves and to thrive by seeing the world through the eyesof others.
“With more than 200,000 customer contacts per day, the diversity of our teams
often makes the difference when it comes to gaining access to customers andtheir individual needs,” says Marci Bonham. “Our customers expect that theircorporate diversity is also reflected in our structures. It is a fact that mixed
teams have proven to be more creative and innovative. Hence, D&I has becomea critical success factor for Hilti.”

29

“My highlight of 2015 wasthat, after the January 15
decision by the Swiss
National Bank, we had
the courage to carrythrough our significant
investments ­unchanged.”“My highlight of2015 was meeting
our teams in the­emerging markets.
The dedication of
our Hilti teams
around the world
is a source of inspiration for me.”“My highlight of 2015
was the inauguration of our Innovation
Center in Schaan. Thismodern, functional andtransparent working
environment will substantially enhance ourinnovative capacity.”

Executive Board.
Dr. Stefan Nöken
Mörschwil, Switzerland

Matthias Gillner
Grabs, Switzerland

Dr. Christoph Loos
Chief Executive Officer
Schaan, Liechtenstein

Stefan Nöken (born 1965, Germany) has beena member of the Executive Board since the beginning of 2007. He is responsible for Fastening
Technology and Logistics.

Matthias Gillner (born 1967, Germany) has been amember of the Executive Board since April 2011.
He was initially responsible for Electric Tools andCorporate Research & Technology. Since the beginning of 2014, he has led the areas of Emerging
Markets and global Energy & Industry.

Christoph Loos (born 1968, Germany) assumed
CEO responsibilities in January 2014. He has
been a member of the Executive Board since2007. During the first four years of this tenure, he
was responsible for Finance, Human Resources,
IT and Corporate Development. In 2011, he took
over the areas of Emerging Markets and the global Energy & Industry.

He joined Hilti in 2000 as the Head of Corporate
Engineering. In 2004, he took over responsibility
for Supply Chain Management with the global
plants, procurement and global logistics.

30

He began his Hilti career in 2000 as the Head ofCorporate Development. In mid-2001, he wasnamed Head of Corporate Human Resources
and then moved to lead the Measuring Systems
Business Unit. From 2006 until the end of 2013,
Matthias Gillner was Head of the Electric Tools &Accessories Business Area.

Upon joining Hilti in 2001, he first led the Corporate Development Team and then established theStrategic Management unit. At the end of 2003,
he moved to Germany, first as a Regional Sales
Director and then, starting in 2005, as General
Manager of Hilti Germany.

“My highlight of 2015 was the
opening of our new site in North
America. That has been a greatand important investment in the
future of this growth market.”“My highlight of2015 was that
we succeededin repeating the­record ­financial
performance of2014 ­despite­uncertain markets
and persistentexchange rate
volatility.”“My highlight of 2015
was this year’s Martin
Hilti Innovation Prize.
Never before have theentries of our employees
been so convincing and­innovative.”

From left to right: Stefan Nöken, Matthias Gillner, Christoph Loos,
Marco Meyrat, Jörg Kampmeyer and Jan Doongaji.

Marco Meyrat
Chur, Switzerland

Jörg Kampmeyer
Vaduz, Liechtenstein

Jahangir (Jan) Doongaji
Maienfeld, Switzerland

Marco Meyrat (born 1963, Switzerland) has beena member of the Executive Board since the beginning of 2005. He is responsible for the markets in
Europe and North America.

Jörg Kampmeyer (born 1968, Germany) has
been CFO and a member of the Executive Board­since April 2011. He is responsible for the areasof ­Finance, ­Human Resources, IT and Corporate
Development.

Jahangir (Jan) Doongaji (born 1967, India/Switzerland) has been a member of the Executive Board
since 2014. He is responsible for the areas of Electric Tools and Corporate Research & Technology.

He began his Hilti career in 1989 as Product Manager at Hilti corporate headquarters in Schaan.
After holding various positions in Hilti Franceand Germany, he was named General Manager
of Hilti Switzerland in 1999 and was ­subsequently
appointed General Manager of Hilti Germany
in 2002.

He began his Hilti career in 2002 as the Head ofCorporate Development. From 2003 to 2005,
he was responsible for the company’s Strategic
Marketing unit. In 2006, he moved to Germany,
initially serving as Regional Sales Director, and in
the course of the year, he became General Manager at Hilti Germany. Since 2010, he has also
headed the Central Europe Market Region.

He began his Hilti career in 2000, initially leading
customer service in the Swiss market organization. In 2002, he moved to corporate headquarters
in Schaan where he held various positions in different business units. Most recently, he headed
the Power Tools & Accessories Business Unit.

31

Hilti Company Report 2015

Board of Directors.

32

Kim Fausing
Sønderborg, Denmark

Barbara Milian Thoralfsson
Oslo, Norway

Michael Hilti
Schaan, Liechtenstein

Kim Fausing (born 1964; re-electeduntil the 2016 Annual General Meeting) was elected to the Board of Directors in 2010. He earned a degree
in mechanical engineering at Aarhus
Teknikum, in Denmark, in 1987, andan MBA degree at Henley Business
School, in London, in 1996. His professional career led him to the Hilti
Group in 1990, where he served invarious management functions in Europe and Asia until 2007. After moving
to the Danish Danfoss Group, he wasnamed Chief Operating Officer andmember of the executive committee
in January 2008. He also is Vice-President of the Velux Group in Copenhagen, Denmark.

Barbara Milian Thoralfsson (born1959; re-elected until the 2017 Annual General Meeting) was elected to
the Board of Directors in September
2014. She has an MBA in marketingand finance from Columbia University
in New York and a BA in psychology
from Duke University in North Carolina. Barbara Milian Thoralfsson has
held CEO positions in the telecom andconsumer goods sectors, and has extensive experience as a non-executive
director, in both public and privately
held global companies. Since 2006
she has been an entrepreneur in theindustrial sector (Fleming Industrier
AS, Oslo) and, since 2007, an Industrial Advisor of EQT Partners AS, Oslo.
Barbara Milian Thoralfsson is also amember of the Board of Directors of
SCA AB, Stockholm; Cable and Wireless Communications Plc, UK; ColArt
International Holdings Ltd, London;and Norfolier GreenTec AS, Oslo.

Michael Hilti (born 1946; re-elected
to serve until the 2018 Annual General Meeting), son of company founder Professor Martin Hilti, has beena member of the Board of Directors
since 1990. After studying businessadministration at the University of
St. Gallen he worked in banking in
London before joining Hilti in 1974
as the Deputy Head of Marketing.
Two ­years later he was named to thecompany’s Executive Board and heserved as CEO from 1990 to 1993.
He was Chairman of the Board of Directors from 1994 to 2006. Michael
Hilti is a Trustee of the Martin Hilti­Family Trust and a member of theBoard of the Hilti Foundation.

From left to right: Kim Fausing, Barbara Milian Thoralfsson, Michael Hilti,
Pius Baschera, Heinrich Fischer, Tis Prager and Michael Jacobi.

Prof. Dr. Pius Baschera
Chairman of the Board of Directors
Zurich, Switzerland

Heinrich Fischer
Rüschlikon, Switzerland

Dr. Tis Prager
Zumikon, Switzerland

Dr. Michael Jacobi
Binningen, Switzerland

Pius Baschera (born 1950; re-elected to serve until the 2016 Annual
General Meeting) is Chairman of theBoard of Directors. He studied mechanical engineering and businessadministration at the Swiss Federal
Institute of Technology Zurich, ­where
he earned his doctorate. In 1979, hecame to Hilti as Head of Financial
Controlling in the production area.
Before being named Chairman heserved as CEO for 13 years. He is currently a member of the Board of Directors of Roche Holding Ltd, Basel;and the Schindler Group, Hergiswil.
He also is a member of the Advisory
Boards of Vorwerk & Co., Wuppertal;
and Ardex GmbH, Witten, Chairmanof the Board of Directors of Venture
Incubator AG, Zug; and a professorof entrepreneurship at the Swiss Federal Institute of Technology Zurich.

Heinrich Fischer (born 1950; re-elected until the 2016 Annual General Meeting) has been a member of the Boardof Directors since 2007. He graduatedin 1973 with an engineering diploma
from the Swiss Federal Institute ofTechnology Zurich, having studied
electrical engineering and technicalphysics. He then went on to study business administration at the Universityof Zurich while working in this field,
earning a master’s degree in 1976.
Beginning in 1977, he held senior
management positions at Oerlikon­
Bührle Holding, Balzers AG (1980 to1989), and finally at Oerlikon Holding
once again (1990 to 1995). From 1996
to 2007, he was Chief Executive Officer at Saurer AG, Arbon. Heinrich
Fischer is a member of the Board of
Directors of Tecan AG, Orell Füssli AG(Chairman), Sensirion AG and SWM
Inc.

Tis Prager (born 1948; re-elected until the 2016 Annual General Meeting)has been a member of the Board of
Directors since June 2006. He earned
a doctorate in law from the Universityof Zurich in 1975, was admitted to thebar of the Canton of Zurich in 1978 andis a founding member of the Prager
Dreifuss law firm in Zurich and Bern.
Among other mandates, Tis Prager isthe Chairman of the Board of Scherer& Bühler AG, Meggen; the Hotel Zurich
AG (Marriott), Zurich; and Emil Hitz
AG, Bassersdorf. He is also a memberof the Board of Directors of the Bourquin Group, Couvet; former Chairmanof IE Engineering Group AG, Zurich;and Caprez Ingenieure AG, Chur. He
is also active in STEP, the Society ofTrust and Estate Practitioners.

Michael Jacobi (born 1953; re-elected until the 2016 Annual General
Meeting) was elected to the Board of
Directors in 2007. He studied businesseconomics at the University of St. Gallen and at the University of Washington, Seattle, and earned his doctorate
from St. Gallen in 1979. From 1978
until 2007 he held various management positions in the financial area of
Ciba-Geigy AG and later in Ciba Specialty Chemicals Inc., Basel. He wasthe company’s Global Chief Financial
Officer from 1996 until 2007. Today
Michael Jacobi is an independent
corporate consultant. Since 2003, hehas been a member of the Board of Directors of Sonova Holding AG, Stäfa,
and since December 2008 a Trusteeof the Martin Hilti Family Trust. He wasnamed to the Board of Directors of Actelion Pharmaceuticals Ltd., Allschwil,
in 2009.

33

Hilti Company Report 2015

quality standards

comprehensive
responsibility

actionresponsibility
ethicspassiontowards
environmentsociety andsocietytransparency

essential
ethicsthe environmentsocietysuccess

Hilti company

34

Corporate
responsibility.
Hilti combines long-term entrepreneurial success with comprehensive
responsibility towards society and the environment.

Putting this commitment into practice and making it a reality
has a history within the company that dates to the time of company founder, Martin Hilti. That’s why corporate responsibility
is an integral part of Hilti’s business model. Hilti acts ethicallyand sustainably, exercising responsibility towards team members, customers, partners and suppliers as well as towards
society and the environment. This is because Hilti sees responsible action and long-term business success as indivisible factors.
The sense of responsibility is founded on the corporate culture
which is lived by the team members, more than 23,000 of them.
The values – integrity, courage, teamwork and commitment –define how the team works together. They guide the everyday
actions in every area and at every location; they also help employees to do their best for Hilti with dedication and passion.
Acting ethically and in accordance with the law and competing fairly are essential in every activity. In the Code of Conduct the company endeavors to comply with the rules of law
and of ethics, and to agree on the highest quality standards
with its suppliers. Furthermore, Hilti’s membership in the UN
Global Compact underscores its commitment to transparency
and corruption-free business processes as well as compliancewith social and environmental standards.

TEAM
MEMBERSUSER HEALTHAND SAFETY

SOCIALRESPONSIBILITY

Get employees­ nthusiastic about Hiltieand develop them andtheir skills.

Offer solutions that­ nhance safety ande­productivity for the­customers.

Make a contribution t­ owards society’s­sustainable development.

COMPLIANCE
AND BUSINESSETHICS

Meet legal andethical standards.

ENVIRONMENT

Proactively ­manage­
the impact on the­environment.

35

Hilti Company Report 2015

High-performing global team.
Diversity & Inclusion

120

23,385

nationalities in the
global team(2014: 117)

55

nationalities at
headquarters(2014: 52)

22%

employees(2014: 22,248)

13of staff are women(2014: 20 %)nationalities on the Executive
Board, Board of Directors and in
top management(2014: 12)16%

of managers are women(2014: 14 %)Corporate culture

25,000working days employees
spent on corporate
culture workshops

36

CHF 7 million
has been invested inworkshops on
corporate culture

Engagement & alignment

93% positive
5% neutral
2% negative

Employees who areproud to work for Hilti.*

88%

of new employees successfully
integrated(2014: 84%)**94% positive
5% neutral
1% negative

85% positive
10% neutral
5% negative

88% positive
9% neutral
3% negative

Employees who areprepared to do theirutmost for Hilti’s success.*

Employees who
recommend Hilti as agood employer.*

Employees who areconvinced of the company’s
prospects of long-term
success, by its vision andby its strategy.*

91%

14%
employee fluctuation(2014: 14%)77%

of management positions werefilled with internal candidates(2014: 75%)of employees took part in
the employee survey(2014: 90%)

*Results of Hilti Employee Survey 2015**The integration success rate measures the number of
employees who joined Hilti in the last two years and arestill employed at the company.
37

Hilti Company Report 2015

Compliancemanagement.
Lawful, ethical behavior and fair competition are integral
components of all activities Hilti engages in. The Group
Compliance Organization, with its Management System,
oversees the strict adherence to laws and regulations
across the Group. It is headed by the Chief Compliance­Officer who is accountable to the Head of the Corporate­Legal ­Department. The Chief Compliance Officer reports
periodically to the Audit Committee of the Board of Direcsubmits a comprehensive annual status report
tors and ­to the Board of ­Directors. Implementation is ensured by­regional Compliance Officers devoting some 25 percent of
their working time to this function. They are supported by
local Compliance Officers in all market organizations who
spend about 10 percent of their working time for compliancemanagement. The objective of Hilti’s Compliance Management System is to take preventive action against infringements, to detect misconduct at an early stage and to reactwith efficiency. The main fields of action are anticorruption,­antitrust, fraud prevention and conflicts of interest.
Key 2015 activity:
Antitrust compliance initiative
Hilti believes in the importance of functioning markets andcompetition as a driving force for innovation, technologicalprogress and continuous quality improvement.
Violations of the applicable antitrust legislation can result invery significant damages for Hilti. This is why Hilti is pursuinga strict zero-tolerance policy concerning any type of antitrust infringement.
The Group rolled out a comprehensive antitrust complianceinitiative in 2015. The specific rules of the antitrust compliance directive, issued by the Executive Board in March 2015,
were discussed in depth during workshops with the leadership teams of the European regions, of all Business Units at
headquarters and the Executive Board. Furthermore, selected employees at headquarters were trained by means of an
antitrust e-learning module.
As far as content is concerned, the initiative focuses on therules for correct behavior in competition, in particular theprohibition of any type of anticompetitive agreements andthe prohibition of the exchange of market-relevant information between competitors.

39

Hilti Company Report 2015

Social responsibility –for a strong society.
Hilti’s corporate responsibility focuses on four main areas: donating, sponsoring, employee involvement in charity projects
and the activities of the Hilti Foundation.
The Hilti Foundation was established in 1996 as a charitable organization and is jointly administered by the Martin
Hilti Family Trust and the Hilti Group. It supports projects
and institutions around the world with the aim of making asustainable contribution to better quality of life for disadvantaged people, and to strengthening a modern and discrimination-free society.

The Hilti Foundation supports activities andprojects in six focus areas:•

Culture, science and education•

Affordable housing•

Disaster relief•

Vocational education and training•

Social entrepreneurship•

Community development

In the year under review, the Foundation’s overall award
volume was CHF 13.5 million.

Social entrepreneurship
6% | CHF 0.8 million

Affordable housing
34% | CHF 4.6 million

Community development
3% | CHF 0.4 million

Disaster relief
2 % | CHF 0.3 million

40

2015
2015
Foundationin 2015 in
Supportexpenditures
Hilti Foundation
Support expenditures Hilti

Supportexpenditures
Hilti
Supportexpenditures
2015
Hilti Foundation in 2015
Foundationin 2015

Culture, scienceand education
43% | CHF 5.7 million

Vocational educationand training
12% | CHF 1.7 million

Aﬀordable housing.
The “Base Bahay” project in the Philippines is one example of the Foundation’s
activity.
According to the United Nations, more than two billion people around the world do not have adequate
housing. In its quest to improve this situation, theHilti Foundation pursues two lines of thought: With
reduced construction costs, more housing spacecan be created and market-oriented projects will
provide business for small local enterprises. “We
are convinced that only market-based approaches
will release resources sufficient enough to address
the issues,” says Bruno Walt, Managing Directorof the Hilti Foundation.
This is where bamboo comes into play. It is theworld’s fastest growing plant and is more stable than wood or concrete. In Southeast Asia,
bamboo has been used as a traditional building
material for many generations. Together with theHomeless People’s Federation Philippines, theHilti Foundation has studied the success potential of a market-based project and the approachthat would help mitigate the housing shortage bybuilding homes made of bamboo. This is where“Base Bahay” came to life in 2013: The project hascreated some 500 jobs and built new homes for
147 families.

Hilti Company Report 2015

UN Global Compact –Progress Report.

Human rights

Labor standards

Code of Conduct
The Code of Conduct for employees and suppliers comprises globally binding directives,
including, among others, the maintenanceof human rights and compliance with labor
standards. The focus in 2015 was the global
rollout of a new e-learning module, which was
successfully completed by some 17,000 employees.

Workplace safety
In 2015 workplace safety efforts focused on
the reduction of occupational accidents. By
managing near misses, the hazard potential
was significantly reduced.

Helplines
Hilti encourages employees to report any suspicion of violation of the Code of Conduct,either directly to the managers and Compliance Officers or through the 24-hour compliance helplines. These are available to all employees in 70 countries and 40 languages.
Corporate culture
The Hilti Way describes the employee- andperformance-focused corporate culture,
which is characterized by common values,
exemplary leadership and the belief that thepersonal development of the employees goes
hand in hand with the growth of the company.
In 2015 employees spent 25,000 workdays on
corporate culture workshops.

42

Employee health
Hilti carries out health-related initiatives,
such as health education days or ergonomic
workplace optimization. At headquarters in
Schaan, Liechtenstein, Hilti has significantly
invested in health infrastructure for the approximately 1700 employees: In the new Innovation Center there are separate areas for sportand exercise activities, medical examinations
and spiritual reflection.

Global Reporting
Initiative (GRI):
G4 indicators

LA 8 Health and safety topics
covered in formal agreements withtrade unions
HR 2 Total hours of employee
training on human rights policies
or procedures concerning aspectsof human rights that are relevant
to operations, including thepercentage of employees trained

Environmental protection

Combating corruption

Energy consumption
Hilti strives to reduce energy requirements
on a global level. This leads to energy-saving
measures.

Prevention
Hilti employees are regularly trained on therules contained in the Group’s internal
anticorruption directive. In 2015 the internal
process for the approval of gifts, hospitality
and customer events was transferred to an ITbased system which refers approval requests
to the managers as well as Compliance Officers and automatically archives the approval
procedures. This system allows for the centralized monitoring and quality control of all
global approval procedures.

For example, more than 100,000 kg of carbon dioxide emissions are voided every year
by a cogeneration plant at the plant in Strass,
Germany. This is achieved by substituting
270,000 kWh of electricity with self-generated
electricity and the simultaneous use of the lostheat in the production process.
Products
Hilti’s product development process musttake environmental, safety and health aspects
into consideration, ensuring that products
continuously improve in these areas. For example, last year the diamond core bit with the
X-Change module was nominated for the German Federal Ecodesign Award.

Organization
The successful implementation of a regional
compliance structure was extended to moreregions during 2015. The Hilti Group Compliance Organization currently consists of the
Chief Compliance Officer and a ComplianceManager, based at corporate headquarters in
Liechtenstein, as well as eight regional and 66
local Compliance Officers.

HR 5 Operations and suppliers
identified as having significant
risk for incidents of child labor,
and measures taken to contributeto the effective abolition of childlabor
HR 6 Operations and suppliers
identified as having significant
risk for incidents of forced orcompulsory labor, and measures
to contribute to the elimination of
all forms of forced or compulsory
labor
EN 3 Energy consumption within
the organization
EN 6 Reduction of energy
consumption
EN 8 Total water withdrawal bysourceEN 15 Direct greenhouse gas(GHG) emissions
EN 16 Energy indirect greenhousegas (GHG) emissions
EN 19 Reduction of greenhousegas (GHG) emissions
EN 23 Total weight of waste bytype and disposal method
EN 27 Extent of impact mitigationof environmental impacts ofproducts and services
DMA General information on the
management approachSO 4 Communication andtraining on anticorruption policies
and procedures

43

Hilti Company Report 2015

Environmental
key indicators.
In the past years, Hilti’s data collection for the CO₂ footprint, for energy, fuel, water consumption and waste production focused on production facilities and the largest market organizations.
This year data collection has been expanded to additionally include twelve logistic centers, ten
repair centers and a further 17 market organizations. Due to the greater volume of data, there
are now differences in the results when compared with those listed in previous company reports. In the figures below, 2014 results have been adjusted to include the new data scope.
Hilti continuously works to reduce its environmental footprint and numerous measures havebeen implemented. However, due to an increase in overall production and a higher headcount,the relevant indicators have increased slightly.

CO 2 emissions in t
2015
2014
The increase in overall CO₂
emissions can be attributed to
an increase in revenue (in local
currencies), a related production
increase and an increase in thenumber of employees. For several
countries higher CO₂ equivalents
are effective for the energy usedcompared to the previous year.
The numerous energy efficiency
measures could not fully compensate the above mentioned
increase.

123,911
117,177

CO 2 emissions per employee in t
2015
2014

44

4,354

5.30
5.27

–2%

Energy consumption in MWh
2015
2014

115,573
113,333–1.5%

Fuel consumption in 1,000l
2015
2014

25,54623,8082014

177,025
166,849

2014

Compared to the previous
year, water consumption
at the plant in Mexico was
reduced by 40% due to anumber of optimization measures. Overall, an increase
in total water consumption,
due to one-time effects, wasrecorded.

–30%

Waste volume in t
2015

The fuel consumption in l/100km
was reduced by 1.5% comparedto the previous year. Total consumption increased due to anincrease in sales employees andcompany vehicles.

–40%

Water consumption in m 3
2015

The relative energy consumption (in relation to production)
was reduced by 2% comparedto the previous year. Overall
energy consumption at Hilti
plants and logistic and repair
centers rose slightly in 2015
due to higher utilization.

16,45915,231Alongside other measures, forexample the usage of aerosolcans at the plant in Liechtenstein, was reduced by about
10,000 units. Additionally, thevolume of separating agents
contained therein was also reduced by roughly 30%. Overall
waste volume was increasing,amongst other reasons because of an increase inconcrete usage and reconstruction activities in the plant.

45

Hilti Company Report 2015

Key figures.

46

47

Hilti Company Report 2015

On profitable growth track.
The economic momentum of the markets in which Hilti is operating has showna mixed picture in 2015: While the markets continued to develop favorably
in the US and turned stable in Europe, many emerging countries were facedwith a challenging environment. This was compounded by the Swiss ­National
Bank’s decision to remove the 1.20 floor on the Swiss franc against the euro
resulting in a massive appreciation of the Swiss franc. Against this backdrop,
Hilti is satisfied with last year’s results: Sales in local currencies (+5.8%) werein line with expectations and the operating result slightly outgrew last year’srecord level.

With growth figures in local currencies of+10.2 and +5.9 percent respectively, business in North America and Northern Europe
was gratifying. Also the regions Central Europe (+4.5%), Western Europe (+1.7%) andSouthern Europe (+6.3%) developed positively. In contrast, the emerging markets were
suffering from difficult conditions driven by
the low oil price as well as other economic
and geopolitical tensions. The growth rates of+3.0 percent in Asia / Pacific, +7.7 percent in
Latin America and +7.5 percent in Eastern Europe / Middle East / Africa remained below thehigh expectations placed upon these regions.
The decision by the Swiss National Bank on
January 15, 2015 significantly accelerated
the appreciation of the Swiss franc against
the currencies of both emerging and industrialized countries. As a result, the +5.8 percent
growth in local currencies was reduced to aslightly negative sales figure of -2.5 percent inSwiss francs.

48

Continued investments in growth areas
The company continued to implement its
Champion 2020 corporate strategy with unchanged speed. This applied in particular toall strategic investments in new products andservices. In this vein, software products anddigital communication were expanded significantly and the sales force was strengthened.
At the same time, major investments weremade in new infrastructure at the ­Liechtenstein
headquarters and in European and North
American markets. This is exemplified by
the Group’s R&D spending, which was again
stepped up by +8.1 percent to CHF 240 million
as planned.
Record-level operating result
Despite currency pressure and high investments, the operating result was slightly
improved over last year’s record-level with
CHF 547 million (2014: 537 million), net inco-

7
%
5
%
84
%
12.5
%
19 %
36 % 6 %1,3%
28 % 3.6 %253 240
1,835
4,384
240
547
5
47
23 85
89
2366,235
64 3,378
42

36

ROCE

CHF million
net sales

ROS

658

CHF million
research & development
researchme amounted to CHF 410 million (2014:
426 million) and return on sales (ROS) was
12.5 percent (2014: 11.9%). Return on capital
employed (ROCE) rose substantially to a very
gratifying 19.0 percent (2014: 16.8%) andfree cash flow stabilized at a high level of
CHF 335 million (2014: 383 million).
The strong operating result is the outcomeof the efforts made in the past few years,
such as mitigating the currency exposure byvalue chain transfers and cost reductions in
the Swiss franc area. Thanks to accompanying measures towards more flexible costs,
the company was also able to respond more
quickly to changes in the environment.
Solid balance sheet
Due to its good results and conservative
financial management, Hilti continues tohave a sound balance sheet structure. At
52 percent, the equity ratio remains high

CHF million
operating result(2014: 53%). Cash and cash equivalents
amounted to CHF 1046 million at year-end(2014: 1223 million). This CHF 177 million decrease contains dividend payments of
CHF 455 million for 2014. Financial debt was
reduced to CHF 490 million as at the end of2015 (2014: 553 million). For the year underreview, the Board of Directors proposes an ordinary dividend payment of CHF 205 million(2014: 214 million).
OutlookFor 2016, economic forecasters expect a similar growth rate as in the previous year. At thesame time, it appears that there are increasing
signs of enhanced volatility, in particular inemerging markets. However, the Hilti Group is
confident that the investments made will allow
for more growth than in 2015 and expects a
positive development of the most importantfinancial key figures.

49

Hilti Company Report 2015

Key figures.
Net sales in CHF million

4,384

2015

4,497

2014

4,340

2013

4,205

2012

3,998

2011

Free cash flow in CHF million

335

2015

383
354
366

2014
2013
2012

-28 2011

Operating result in CHF million

547

2015

537

2014

421

2013

301

2012
2011

50

207

Net income in CHF million

410
426

2015
2014

304

2013

187

2012
2011

97

Research and development expenditure in CHF million
2015
2014
2013
2012
2011

240
222
189
175
184

Employees as at December 31
2015
2014

23,38522,2482013

21,456

2012

21,1392011

21,848

Please note
The following pages contain extracts from the 2015 Financial Report of the Hilti Group. Because these pages do not contain the full consolidated financial statements, they do not present complete information about the financial position, financial performance and cash flows of the Hilti Group for 2015. Complete information, including the notes to the ­consolidated
financial statements, is contained in the 2015 Financial Report, which will be available on the Group’s website(www.hilti.com) from late March 2016. The full 2015 consolidated financial statements, which are included in the 2015
Financial Report, have been prepared in accordance with International Financial Reporting Standards (IFRS).
51

Hilti Company Report 2015

Consolidated balance sheetof Hilti Group as at 31 December.
Assets in CHF million

2015

2014

Intangible assets

410.5

360.5

Property, plant and equipment

779.0

791.9

1.9

1.9

Deferred income tax assets

143.7

146.6

Other financial investments

16.0

14.3

Trade and other receivables

422.5

404.0

7.2

5.9

1,780.8

1,725.1

Inventories

528.4

559.7

Trade and other receivables

959.0

1,004.5

Current income taxes receivable

8.9

9.9

Accrued income and prepayments

46.1

45.4

Derivative financial instruments

3.4

7.4

Financial assets at fair value through profit or loss

34.0

34.2

Cash and cash equivalents

1,046.2

1,222.8

TOTAL CURRENT ASSETS

2,626.0

2,883.9

TOTAL ASSETS

4,406.8

4,609.0

Investment property

Derivative financial instruments

TOTAL NON-CURRENT ASSETS

Please note
Equity comprises share capital (176,000 registered shares with par value of CHF 500 each) and participation capital (774,400 participation certificates with par value of CHF 50 each) as well as reserves. All of the registered shares and participation certificates are owned by
the Martin Hilti Family Trust.
52

2015

2014

9.0

9.7

Equity attributable to equity holders of the parent

2,262.5

2,439.7

TOTAL EQUITY

2,271.5

2,449.4

Provisions

58.4

68.4

Employee benefits

506.0

526.6

Deferred income tax liabilities

29.8

23.3

Bonds

360.8

378.4

Long-term bank borrowings

28.1

28.5

Trade and other payables

26.2

28.2

Derivative financial instruments

0.7–

1,010.0

1,053.4

Provisions

65.1

62.8

Employee benefits

107.7

15.8

Trade and other payables

355.8

350.3

Current income taxes payable

101.0

91.2

Accrued liabilities and deferred income

386.6

425.3

–

31.9

Short-term bank borrowings

100.9

114.6

Derivative financial instruments

8.2

14.3

TOTAL CURRENT LIABILITIES

1,125.3

1,106.2

TOTAL LIABILITIES

2,135.3

2,159.6

TOTAL EQUITY AND LIABILITIES

4,406.8

4,609.0

Equity and Liabilities in CHF million
Non-controlling interests

TOTAL NON-CURRENT LIABILITIES

Bonds

53

Hilti Company Report 2015

Consolidated income ­statementof Hilti Group.
2015

2014

4,383.5

4,497.3

94.9

102.6

4,478.4

4,599.9–7.6

6.7

Material costs–1,306.4–1,363.0

Personnel expenses–1,752.5–1,783.9

Depreciation and amortization– 157.0–194.4

Other operating expenses–707.5–728.8–3,931.0–4,063.4

OPERATING RESULT

547.4

536.5

Other revenues and expenses (net)

–14.6

–6,1

Finance costs

–26.5

–31,6

NET INCOME BEFORE INCOME TAX EXPENSE

506.3

498.8

Income tax expense

–96.6

–72.5

NET INCOME

409.7

426.3

Equity holders of the parent

410.4

426.9

Non-controlling interests

–0.7

–0.6

in CHF million
Net sales
Other operating revenues

TOTAL OPERATING REVENUES
Change in inventory

TOTAL OPERATING EXPENSES

Attributable to:Please note
The notes to the consolidated financial statements are an integral part of, and should be read in conjunction with, the consolidatedbalance sheet, the consolidated income statement, the consolidated statement of comprehensive income and the consolidated cash
flow statement.
54

Consolidated statement of ­comprehensive incomeof Hilti Group.
in CHF million

2015

2014

NET INCOME

409.7

426.3

Net movement on cash flow hedges

–1.0

4.8

Deferred tax on net movement on cash flow hedges

0.1

–0.6

–95.7

22.8

1.3

–

ITEMS THAT MAY BE SUBSEQUENTLY RECLASSIFIED TO THE INCOME STATEMENT– 95.327.0

Remeasurements on employee benefits–41.3–159.3

3.9

25.4

–37.4

–133.9OTHER COMPREHENSIVE INCOME (OCI)–132.7–106.9TOTAL COMPREHENSIVE INCOME

277.0

319.4

Equity holders of the parent

277.7

319.0

Non-controlling interests

–0.7

0.4

Foreign currency translation differences
Deferred tax on foreign currency translation differences

Deferred tax on remeasurements on employee benefits

ITEMS THAT WILL NEVER BE RECLASSIFIED TO THE INCOME STATEMENT

Attributable to:55

Hilti Company Report 2015

Consolidated cash flow statementof Hilti Group.
in CHF million

2015

2014

NET INCOME

409.7

426.3

Depreciation and amortization

157.0

194.4

7.6

–6.7

(Increase) / decrease in trade receivables

–12.4

–10.0

(Increase) / decrease in finance lease receivables

–76.0

–86.7

Increase / (decrease) in trade payables

4.7

2.2

Change in non-cash items and other net operating assets

67.6

110.1

CASH FLOW FROM OPERATING ACTIVITIES

558.2

629.6

Capital expenditure on intangible assets–113.6–104.8

Capital expenditure on property, plant and equipment–132.5–152.7(Increase) / decrease in financial investments

–3.3

–1.0

Disposal of intangible assets

0.4

0.1

Disposal of property, plant and equipment

26.1

11.4

–222.9–247.0(Increase) / decrease in inventories

CASH FLOW FROM INVESTING ACTIVITIES

56

2015

2014

Proceeds from long-term borrowings

4.0

0.6

Repayment of long-term borrowings

–0.5

–1.3

Proceeds from / (repayment of) short-term borrowings

1.2

–15.2

–28.6

–300.00.3

0.1

Dividend paid

–454.9–392.8

CASH FLOW FROM FINANCING ACTIVITIES–478.5–708.6

–33.4

10.5

TOTAL INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS–176.6– 315.5

Cash and cash equivalents at January 1

1,222.8

1,538.3

CASH AND CASH EQUIVALENTS AT DECEMBER 31

1,046.2

1,222.8

3.7

5.9Interest paid

–27.2

–38.4

Income tax paid

–71.1

–61.9

in CHF million

Repayment of bonds
Increase / (decrease) in liability to shareholder

Exchange differences

Cash flow from operating activities includes
Interest received

57

Hilti Company Report 2015

Key figures informationof Hilti Group.
Results in CHF million / %

2015

2014

Net sales

4,384

4,497

Depreciation and amortization

157

194

Operating result

547

537

Net income before tax

506

499

Net income

410

426

Return on capital employed (ROCE) in % (operating result)

19.0

16.8

Return on equity (ROE) in % (net income)

17.4

17.1

Return on sales (ROS) in %

12.5

11.9

Free cash flow

335

383

Balance sheet in CHF million / %

2015

2014

Total equity

2,272

2,449

52

53

Total non-current liabilities

1,010

1,053

Total current liabilities

1,125

1,106

246

258

1,190

1,152

591

573

Total current assets

2,626

2,884

Total assets

4,407

4,609

Dividend*

205

455

23,38522,248

Total equity in % Total equity and liabilities

Capital expenditures on intangible assets and on property, plant and equipment
Intangible assets and property, plant and equipment
Other non-current assets

EMPLOYEES (AS AT DECEMBER 31)*Proposal by the Board of Directors; 2014 included a special dividend.

58

2015 sales growthyear on year.
ChangeChangeSales growth in CHF million

2015

2014

in CHF (%)

local currencies (%)

Europe

2,081

2,221

–6.3

4.2

North America

1,046

924

13.2

10.2

Latin America

132

177

–25.0

7.7

Asia / Pacific

627

633

–0.9

3.0

Eastern Europe / Middle East / Africa

498

543

–8.3

7.5

4,384

4,497

–2.5

5.8

HILTI GROUP

59

Hilti Company Report 2015

Publication details.

Publisher
Hilti Corporation
Corporate Brand & Communication
PO Box 333, 9494 Schaan, Liechtenstein
Editors-in-chief
Jessica Nowak, Jagna Jera
Concept
Hilti Corporate Brand & Communication
Editorial team, text
Jessica Nowak, Jagna Jera, Nele ­Rummert,
Matthias Hassler, Sarah Hilbe, ­Annett ­Urbaczka (Krefeld, Germany)
Designzurgams Kommunikationsagentur(Dornbirn, Austria)
Photography
Reinhard Fasching (Bregenz, Austria),
Tommy Clancy (Dublin, Ireland),Image Photography (Lancashire, England)
Translation
Chris Larson, Christoph Renfer (Riehen, Switzerland),CLS Communication AG (Basel, Switzerland)
Image processing
Miro Repro (Hamburg, Germany)
Production coordinator
Lise Santschi
Printed by
BVD Druck + Verlag AG
9494 Schaan, Liechtenstein

60

We wish to thank our customers and partners
for their kind support.
The Company Report is published in German
and English. Duplication, even in part, only withpermission of the publisher.
The complete Financial Report, the principles
of corporate governance, the Group organizational chart, a list of consolidated companies
and information on the Martin Hilti Family Trustcan be found on the internet at www.hilti.com.

Transparency
is a frame of mind that is put into practice daily at Hilti. It is a permanent ﬁxture
in the corporate culture – in its dialogue with customers, in the way it works
with partners and in the way its worldwide teams work with each other.
This way of thinking relates not only to obvious areas such as risk andreputation management and corporate governance, but also characterizes
the company’s socially responsible approach to management, its internaland external communications and its development of products.
ON!Track, a system solution for customer asset management (see article on
page 14 ﬀ.), is just one of the innovative ways in which Hilti takes up the themeof transparency. Further evidence of a practiced culture of openness canbe found in the modern oﬃce spaces at various locations (see Highlights on
page 10 ﬀ.).

That is a good enough reason for this report to focus on transparency:
not only will you ﬁnd it in a number of articles, but it is also illustrated by the
red cover.

The red transparent film provides a clear view of thefacts on pages where this symbol appears.

Hilti

The Hilti 2015
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