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Hilti Corporation│2013 Company Report2013 Company ReportMUCH MORE
THAN
EMPTY SPACE.
How many holes have been drilled by Hilti drill bits? In the morethan 70 years of our company history the number has to be close
to a billion. This is a point of pride, because a hole created by a
Hilti bit serves a purpose, fulfills a duty. It’s rare that our holes
remain empty. They’re filled with anchors or screws and become
elemental components of a solid object.
A hole that has been precisely drilled by a Hilti drill bit, whether
in concrete, steel, masonry or wood, is more than empty space.
It opens myriad possibilities and forms the basis for stability
and safety. It’s the beginning of something new.
The reports from construction sites around the world containedin this publication bear witness to this.

There’s a story behind every hole.
Scan the QR code to see theunusual way that holes foundtheir way into our 2013 Company
Report.

3

A YEAR OF CHANGES.

4

Dear Readers

Some years are particularly decisive in the history of companies because they are like crossroads for the future. 2013 was such a year for Hilti.
In a persistently volatile market environment, we
succeeded in continuing our course of growth andbringing our profitability back to the level ­before
the economic and currency crisis.
Hilti posted a moderate but solid 3.2 percent
sales growth in line with expectations, although
our European core market remained difficult, inparticular in Southern Europe. On the other hand,
our growth regions achieved solid double-digit
growth in local currencies and also North America
generated excellent results despite economic andmonetary turbulences.
We note with satisfaction that we achieved theobjectives of our profitability enhancement andcapital efficiency program launched at the end of
2011 one year ahead of schedule. Thanks to this,the operating result grew by 40 percent and returnon sales improved from 7.2 to 9.7 percent, which
is a solid foundation to secure our long-term competitive position.
But profitability is not our only goal. Our revised and fine-tuned corporate strategy clearlystates that we are keen on accelerating growthand creating sustainable value for the Group as awhole and we are fully aware that this can only beachieved through a long-term approach based on
clear market leadership and differentiation.
Our highly qualified and dedicated employees
are the key to the successful execution of ours­ trategy. To motivate our team members we ensure a positive working environment and em­power
them with responsibility and trust. In return, ouremployees go the extra mile and fully identify with
their company, which is more than ever reflectedin the satisfaction ratings of our anonymous 2013
employee opinion survey and has brought us thebest Group result in the company’s history.
Another remarkable achievement was thethoroughly prepared, smooth handover of the
CEO position at the end of last year. Christoph
Loos, who has been a member of the Executive
Board for the past seven years, took over as CEO
from Bo Risberg, who retired at the age of 57 dueto the Group’s internal age regulations.
2013 was an important year for us. Not only did
it show how well we can cope with change but
also that we have the dynamic power it takes torise to ever new challenges and to emerge from acrisis stronger than before.
We will continue to build on our strengths,­ xpand our global footprint and accept to be put
eto the test each and every day as we passiona­tely
create enthusiastic customers and build a better
future.
We wish to thank our customers for placing
their trust in us, our products and our services as
this inspires us time and again to be even betterat everything we do. And we wish to thank all our
employees around the world for their dedicationand high level of personal commitment for the
benefit of our company.

Pius Baschera
Chairman of the Board

Bo Risberg
Chief Executive Officer until December 31, 2013

Christoph Loos
Chief Executive Officer as of January 1, 20145

BRIEFLY.
Key figures

2012
2013

(in CHF million)+135
Net sales

4,205
4,340

+120
Operating result

301
421

–21
Cash flow fromoperating activities

619
598

+117
Net income

187
304

+317
Employees(as of December 31)

21,13921,456

2009

3,845

2010

3,930

2011

3,998

2012

4,205

2013

4,340

Net sales(in CHF million)

0

Operating result(in CHF million)

2009

172

2010

268

2011

207

2012

301

2013

421
0

6

1,000 2,000 3,000 4,000 5,000 6,000

100

200

300

400

500

600

Note: The comparative figures for the 2012 business year
have been retroactively adjusted to reflect the applicationof IAS 19, Employee Benefits (revised), and IFRS 11, Joint
Arrangements. The comparative figures for the businessyears before 2012 have not been retroactively adjusted.

TOPICS.
04

Editorial

08

Strategy

12

A look at the 2013 business year

34

Executive Board

36

Board of Directors

38

Corporate responsibility

46

Key figures

New CEO Christoph Loos (l), and Bo Risberg, CEO until
the end of 2013, discuss the future of the company.

A new lock is being built in Antwerp, Belgium.
Hilti is the on-site problem solver.

Tunnel workers are drilling their way under London.
Hilti is an important partner in the project.

7

SEIZING OPPORTUNITIES.
MEETING CHALLENGES.

From right: Bo Risberg and Christoph Loos.

8

The past turn of the year has brought change for Hilti.
After having served on the Executive Board for thirteen
years, including seven years as the company’s CEO,Bo Risberg left the company as per the end of 2013 dueto the Group’s internal age regulations. Christoph Loos,
who joined Hilti in 2001 and has been a member ofthe Executive Board since 2007, took over as CEO on­January 1, 2014, in a thoroughly prepared, smooth transition process.
After the global financial crisis and the ensuing economic difficulties of the past few years, Hilti has regained
its financial strength and Bo Risberg handed over thecompany to his successor on a strategically and finan­cially sound footing. With sales at CHF 4.3 billion, returnon sales at 9.7 percent, return on capital employed at
12.8 percent and free cash flow at above CHF 354 million­
in 2013, Hilti was back at its 2006 levels.
Now Hilti is building momentum to herald in a new
growth period. Thanks to the strong foundation and aclear corporate strategy with ambitious objectives,
Christoph Loos and his team are poised to accelerate
growth, gain global market share and further enhance
the financial strength.

Mr. Risberg, you have been with Hilti since 1999.
During your tenure you have served on the Executive
Board for thirteen years and headed the company as
CEO for seven years. To what extent has the company
changed during this period?
BR Hilti has become more globalized over the past ten
years – in terms of customers, sales volume, structure andemployees. Today, we stand out more clearly from our competitors because we have extended our multichannel direct
sales approach and stepped up both the pace and customerorientation of our innovations. This not only applies to ourtools and fastening products but also to services such as
fleet management. Over the past few years, we have also
made a conscious effort to focus even more on those segments where we have the potential to be successful.
­Throughout the Group, we have become more efficient,more flexible and also more robust, which has helped us tocreate more value.

growth in 2011, it was all the more frustrating to see our net
profit being eroded by more than CHF 120 million due to an
extremely negative exchange rate effect. So we had tolaunch yet another turnaround initiative that we have managed to complete successfully in the meantime.

What were your personal highlights during your tenureas CEO?
BR Both my first and my last year with Hilti were the mostmemorable. When I took over as CEO in 2007, we had thebestever result in Hilti’s history. What a magnificent moment! Today, having overcome a difficult period, it fills mewith great pride to see how our global teams have steered
the company back to strong profitability and value creation.
The solid foundation on which we stand in 2013 is the resultof the proper strategic measures and the full dedication of
all our teams and has made 2013 one of the best years ofmy time as CEO.

In retrospect, how has Hilti fared during the years of
the crisis?
BR Winston Churchill once said: „Never let a good crisis
go to waste.” In my opinion, we have learned a lot from thecrisis. We were under enormous pressure to act, which has
forced us to make the company even more agile, flexible andfit. Thanks to our financial robustness, strong strategic­position and great corporate culture, we are now better­prepared and positioned than ever before to rise to the­challenges of the future.
In the past few years, you have been shifting yourcompany’s focus from sustainable, profitable growth toa more pronounced cashflow orientation. Why?
BR Since both sales and profitability were decreasing
during the crisis, we had no choice but to turn our attention
to cash flow and capital efficiency. While we continue tofocus on sustainable, profitable growth, we are increasingly
concentrating on the return on capital employed (ROCE),
which is in line with our target to create sustainable value forour company.

In your opinion, what was the most difficult period
for Hilti?
BR Dealing with the situation in 2009 was a major challenge. Our initiative included structural measures that also
had an impact on our people. But our teams were aware of
the difficult situation and were supportive of management’s
decisions. When the company returned to the road of strong

9You have left Hilti at the end of 2013. What does the
future hold in store for you in your private life?
BR I am looking forward to having more time for my ­family
and friends, to venture into new things, to travel in countries
that I have had the pleasure to visit but never really got toknow during my business trips. As far as my professional
future is concerned, I will become a member of a few boardsof directors and work as an industrial advisor within private
equity. I shall not serve on the Board of Directors of Hilti as
it would not be in line with our view of good corporate­governance to have three former CEOs on the same board
and it could disrupt the balance between internal and external perspectives.

10

What message would you like to give your successor
for his future job as CEO of Hilti?
BR The success of Hilti is based on the great passion,competence and commitment of our team members on the
one hand and on highly innovative products and services on
the other hand. Add to this our strong values and a clear
corporate purpose. These are assets that must be upheld
and nurtured even if Hilti is growing further and becoming
even more globalized. And finally: Focus on what is essential!
Mr. Loos, following up on Mr. Risberg’s advice: Whatdo you value personally?
CL I couldn’t agree more with Mr. Risberg’s advice. We
want to grow and become more globalized while preserving
the strengths of Hilti. These strengths are deeply rooted inour core as a family-owned business: a strong commitment
and identification of the Hilti employees with their company,a minimum of hierarchy and a maximum of energy. It is ourtask now to achieve significant profitable growth without
turning into a „large”, impersonal company.

Over the past few months, the management has
worked hard on Hilti’s corporate strategy. What was
the reason for the strategy review?
CL The recent turbulences have changed both the market
conditions and our competitive environment. Therefore,2013 was the perfect moment to examine whether our„Champion 3C” strategy continues to meet the current­requirements. In essence, our existing strategy was confirmed. In particular, our strong focus on differentiation anddirect customer contact will remain the main pillars of ourstrategy in the future.
What is new and what are the most important elementsof this strategy?
CL In our revised strategy „Champion 2020”, we have­refined the topic of leadership. Differentiation, combinedwith a more pronounced move towards market leadership,
is the key ingredient for sustainable value creation. In ourefforts to maintain a differentiated portfolio, we will have toinvest even more in the development of products and superior services for our customers. However, these investments
are more closely connected to the objective of growing ourmarket shares in those product groups and segments where
we can achieve real market leadership. Another element isa more intensive approach towards loyal customers. This
will lead to more differentiated marketing efforts focusing
clearly on building deeper customer relationships rather
than broad market coverage.
What are the specific objectives you wish to achievewith the revised strategy?
CL The main goal of Champion 2020 is to stimulate ourgrowth further and to substantially outperform the growthrate of the global construction market. Having said this, wemust focus on gaining market shares in our key productsegments in order to generate economies of scale at a global level. Furthermore, we will concentrate on increasing thenumber of loyal customers significantly and strive to offer
our employees a high-quality working environment also in
the future. By doing this, we will be able to generate attractive financial results and create sustainable value for thecompany and its shareholders with the aim of ensuring theGroup’s independence in the long term.

Will the non-European markets become even more
important in the future? How well-positioned is thecompany for this scenario?
CL Absolutely. The recent economic shift towards growth
regions will also continue to affect the global construction
market. Already today, the non-European markets accountfor 50 percent of Hilti’s sales. As a result of our objective togain market shares on a global scale, the non-European
business share will grow even further. We are well-prepared
for this. In many of those countries, Hilti is just as well-­positioned as in Europe. In the emerging countries, we arefocusing on market segments where we can meet customer
needs in terms of quality, productivity and safety with acompetitive value proposition.
Which opportunities and challenges will Hilti face inthe next few years?
CL As far as our opportunities are concerned, I am very
confident. Over the past ten years we have made enormous
investments, created global structures, optimized processes, enhanced our innovation capabilities and have invested
into the skills of our employees. We have used the crisis tobe even better prepared for the future. And today we arestronger than ever before. We will now be able to use thisstrength to our benefit in what we hope will be a more stable
market environment. And this is exactly where we are goingto face the greatest challenge as we must reckon with persistently volatile markets. In other words, we must be able
to respond more swiftly to volatile market conditions. So if
we live up to Bo Risberg’s quote „Never let a good crisis go
to waste”, we have done our homework.

What are your expectations in terms of the economic
prospects for the coming months?
CL Although the crisis we have lived through will continue
to affect the general economic climate for years, we expect
to see a slightly better global market environment in 2014.
Construction industry forecasts in the United States and inmany growth regions are promising. While we expect stabilized construction investments at a low level in most Southand East European countries, we anticipate a slightly improved situation in the rest of Europe.

11THE YEARIN REVIEW.
What challenged us?
Our own expectations.
What animated us?

Our innovations.

What moved us forward?
Our customers.

12Europe

EARTHQUAKE SAFETY.

The damage caused to buildings andstructures by earthquakes can be enormous. The danger is not limited to people
as buildings can be so substantially damaged that they must often be completely
demolished. Earthquake safety is a central topic for Hilti, one of the leading fastening technology companies.
Numerous worldwide research projects focus on the effects of seismic activity on buildings and infrastructure. The
goal of this research is to develop designs and solutions thathave favorable resistance to the effects of seismic stressloads. Fastening technology literally plays a key supportingrole.
Since June 2013, the European Union has officially regulated the qualification and design of fastening systems regarding seismic loads. The European Technical Assessment
for anchors now includes all the technical data required forearthquake-resistant construction. In the future the earth-quake resistance of anchors will be given in performance­categories. Category C1 is suitable exclusively for non-loadbearing applications in regions having low seismic activity.
Category C2, however, represents the highest qualification
currently available for all applications and earthquake magnitudes in Europe.
Thanks to Hilti’s intensive developmental work on earthquake-resistant fastening solutions, the company celebrated
a significant milestone last year. Hilti was one of the first manufacturers to be given C1 and C2 approval, for its HIT-HY 200
injectable adhesive mortar in conjunction with the HIT-Z­anchor rod and the HST stud anchor. Additionally, PROFIS
Anchor software is the first software that allows users to design anchor connections in accordance with the seismiccode framework.

Thanks to the gradient technology incorporated
in its solid carbide head, the Hilti TE-CX hammer drill
bit can drill through steel reinforcing bars easily,with minimal wear and tear.

13

ChinaHIGH ALTITUDE.

14

“Saves time, saves money
and potentially saves lives”
Three questions for ...
Sun Kejin, Senior Project Manager for Otis on the
1.6 million sqm Tianjin Goldin Metropolitian Project witha 572,700 sqm, 600 m tall, 117 floor tower as its iconic
centerpiece.
Why did Otis choose to use a cast-in anchor
channel as opposed to a post-installed anchor
on the 117 project?
SK The subsequent ease and speed of installation of
the elevators in the shaft was one of the main factors inselecting a cast-in place solution but of equal importance is our belief that during the construction, it is a far
safer and easier system from the point of view of
the construction workers, installing the guide rails.
­Before 1984, Otis typically used embedded plate in theshaft and from 1984 transitioned more to post-installed­anchors.
More recently however, the belief and especially in highstrength, heavily reinforced super high rise structures isthat a cast-in anchor channel is the right solution. For
anybody who has ever spent time in an elevator shaft, it
is clear that post installing anchors is a time consuming,
often hazardous task and the advent of cast-in placesolutions is a welcome development. While not uncommon in the rest of the world, 117 will in fact be our first
Otis project in China to use a cast-in place solution.
Why did Otis choose Hilti’s HAC anchor channel?
Otis of course considered different vendors as isrequired by Otis internal procedures but following due
technical and commercial diligence, Hilti was chosen as
providing the best performance and best value for money. In addition not only is the quality of the Hilti productabove reproach but the service provided by Henry Shu,
Hilti’s Tianjin based Technical Representative is outstanding.

SK

Which characteristics of the Hilti products proved
decisive?
SK From a product perspective, the V shaped profile
fits easily into the rebar cage prior to concreting but
decisive is the subsequent ease of removal of the filler
strip. The user friendly filler strip is also an advantage in
an increasingly environmentally conscious world withalmost no debris to collect on a construction project.

Rising 597 m into the north China skyline,
even by Chinese standards, the 117 Tower
is one of a kind and when complete in2015 will be the 3rd tallest building in China
and the 7th tallest building in the world.
The commercial residential complex being developed byGoldin Properties is designed by Hong Kong based P&T Architects with Arup International acting as structural consultants.
The task of moving people in this vast structure has been
awarded to Otis, who will provide 255 units including 50 double deck elevators to the development. High speed, high riseGeN2-MRL elevators moving at an astonishing 12m/s will
glide the 117 floors of the structure reaching the top in lessthan 50 seconds.
Post installed anchoring solutions are commonly used insuch structures to fasten the guide rails on which the elevator cars ride the high strength, heavily reinforced concrete
hoist way. The Otis High Rise Team, headquartered in China
and having supplied elevators to eight of the ten tallest buildings in the world decided to use a cast-in place solution as
opposed to post installed anchors.
Following multiple meetings and the submission of detailed and comprehensive technical proposals to meet both
static and dynamic loading requirements in accordance with
Chinese as well as international codes of practice, it waspossible to define an acceptable solution. Supply chain andcommercial negotiations followed ultimately concluding in
Otis choosing Hilti’s HAC 40 solution in varying lengths.
For Otis the complex and always difficult task of installing
guide rails in the hoist way will now become much simpler,allowing the installers to enter the shaft, remove the filler
strip, install the HBC-T head bolts and secure the guide rail
bracket all essentially in a matter of seconds as compared tothe arduous task of drilling holes in the heavily reinforced
concrete structure.
By the time construction is finished in the second halfof 2015, many Hilti HAC anchor channels will have beenused in 117, together with chemical anchors, stainless steel
anchors and Hilti detection technology.

15

Belgium

PROBLEM SOLVER.

There are big construction sites andthere are very big construction sites.
There are also construction sites thatare so big that, at first glance, theyafford no overview at all. The Waasland
lock at the Port of Antwerp in Belgium isthis kind of project. Some 10 million
cubic meters of earth will be moved
while 740,000 cubic meters of concreteand 22,000 tons of structural steel
will be used in the construction of what
will be the largest lock in the world.

Hilti Key Account Manager Wouter Arnaert drives throughthe Waasland construction site, passing numerous cranes,
concrete walls, casting molds and concrete pumps. Today
he’s meeting a customer at a location that sits at least 25 meters below sea level. He wants to demonstrate a new tool forthe construction supervisor of the THV Waaslands­luis consortium, consisting of the BAM (representing the merger of CEI –De Meyer and Betonac), Eiffage (the Antwerpse Bouwwerken
and HERBOSCH-Kiere) and Jan De Nul companies. The application is for a fastening solution in a corrosive environment,
one of Hilti’s specialty areas. The lock’s sidewalls must standup to the pounding they may take from ship hulls. To ensure
this, heavy cork slabs are fastened to the concrete. Arnaert
has a GX 120 gas-actuated fastening tool that quickly andsecurely drives steel fasteners into the concrete base material. The direct fastening tool is easy to handle and, thanks to
its large magazine, can ­execute many fastenings in a relatively short period of time. Arnaert’s extensive clarification andon-site demonstration of the tool convince the customer that
the GX 120 is exactly the solution they were looking for.
“Hilti solves all our problems,” is a sentence that Wouter
Arnaert hears often. On a construction site having the dimen-

16

sions of this one, there are new challenges on a daily basis.
Such as when 100 post-installed rebar connections suddenly need to be installed. Drilling the 100 holes, at a depth ofroughly one meter, was a task for Hilti’s powerful TE combihammers, of which there are more than 25 in use on theconstruction site. But what about the anchoring application?
“We also had a suitable product ready for this task. Our HITRE 500 injectable mortar system was the best solution, particularly for the deep holes as the epoxy resin hardens slowly after injection, allowing plenty of time for the application.”
The customer was immediately enthusiastic. Hilti also trained
the workers in the safe usage of the injection technology
directly on the construction site.

Until the Waasland lock becomes operational in 2016
Wouter Arnaert will undoubtedly have a few more challenges
to master. “Yes, there’s a lot of work. I’m nonetheless proud
to be working on a project as gigantic as this one,” says the
Key Account Manager as he drives off to his next appointment.

Hilti had already proven itself a reliable partner among
various suppliers in an earlier construction project with Jan
De Nul. Now Hilti is aiding customers in the project to build
the world’s largest lock. “The only company we never haveproblems with is Hilti,” says a satisfied construction super­visor. As an example he cites the PRE 38 dual grade laser that
had been sent for repair the previous week. “The next day
Hilti provided us with a replacement tool and three days afterthat our repaired and recalibrated tool was returned to us.”17

France

SUCCESS STORY.

Boya Achille Omang happily receives his Hilti tools.

The largest fleet management agreement in the history of Hilti
France includes some 1,400 tools and 5,000 additional parts
and accessories. Hilti’s customer SNIE, a Paris-­based electrical-installation specialist employing 465 people, signed
the agreement with an eye on long-term cooperation. For
comparative purposes: An average fleet management agreement includes about 13 tools.

Hilti has offered the “Tool Fleet Management” concept
for more than ten years. The advantage is clear. Companies pay a fixed monthly amount and they receive a fleet
of tools tailored to their needs that always corresponds
to the latest technological standards. The trend continues unabated. In certain countries more than half of alltools are sold via fleet management agreement.

The Hilti TE-CD hammer drill bit is hollow inside.
This allows the dust removal system connectedto the power tool to clean the hole while drilling isin progress, speeding up the process tremendously.
The anchor can then be set correctly very simply.

18

Hong Kong

CORDLESS PERFORMANCE.
No bothersome cable, no dependence
on mains electricity, lighter weight,
yet with the performance and reliabilityof a corded tool? The world’s first cordless combihammer, the Hilti TE 30-A36,
takes cordless tools to a new level of
performance.
Gammon Construction, headquartered in Hong Kong, is
one of the local leading construction and engineering contractors. The strength of its reputation lies in the collective
skills of its people of more than 8,000, while safety serves as
one of Gammon Construction’s core values.
“Gammon strives to work together with its business partners to achieve its safety vision, Hilti is one of them. To avoid

the risks of workers being tangled up in electric cables andexposed to electrical shocks, we resolve the situation byusing cordless tools. The measure has greatly enhanced
safety at our construction sites. It also brings effectivenessand efficiency to the projects,” says K.C. Lau, Construction
Manager with Gammon Construction.
Hilti has had a presence in Hong Kong since 1974 andworks closely together with Gammon, particularly on ­safe­ty-related issues. Gammon has recently equipped construction sites to use only cordless tools such as hammer drills,
angle grinders or circular saws, and combihammers. Because­of its tremendous level of safety performance ­Gammon
uses the new combihammer as it would use a ­corded tool.
The TE 30-A36 offers a great deal in terms of user safety.
One standard feature is the Active Vibration Reduction (AVR)
function which significantly reduces hand-arm vibrations. Aneven bigger plus in terms of working safety is provided by
the TE 30-A36’s optimized slip clutch and the patented­Active Torque Control (ATC), an electronic cutout systemthat monitors acceleration of the tool about its own axis andcuts power to the motor fully automatically, in a fraction of a­second, in the event of hitting a rebar. This greatly reduces
the risk of wrist injury caused by a sudden twisting of the tool.
In February 2013, the TE 30-A36 received the renowned“iF product design award.” The award is based, among­others, on the criteria of safety, ergonomics, functionality
and innovation.

K.C. Lau, Construction Manager with Gammon Construction.

19

England

TUNNEL MARATHON.

20

Over a stretch of about 42 km, sevenhuge tunnel boring machines are now atwork creating new rail tunnels at depthsof up to 40 meters for London’s Crossrail
project. Hilti is a project partner in what
is currently Europe’s largest infrastructure project.
At the beginning of the 19th century the renowned “Quarterly
Review” periodical discussed the “practically unfeasible ideaof a railway running beneath the city.” Today the London Underground is the most important transportation link in the city.
Some 1 billion riders use the system every year. Despite­substantial ongoing investment the system is known to benotoriously overburdened.
The Crossrail expansion project is designed to help solve thisproblem. When finished the significant expansion of the railbased mass transit system will unite the East End of London
with the West End, creating an additional transit capacity ofroughly 10 percent. The Crossrail project currently includes
more than 40 construction sites.
As a project partner Hilti not only provides products to theconstruction site operators, but also advises the Crossrail
Ltd project management company on topics such as user
safety and the handling of construction chemicals. Hilti isalso responsible for special solutions that were created­specifically with tunnel construction in mind. Hilti has, forexample, a safe and efficient total solution for post-installing
rebar in concrete. The reinforced concrete is initially scannedwith the PS 1000 detection system to eliminate rebar strikes
when drilling. A hollow drill bit designed specifically for theapplication is then used to drill the hole in the existing­concrete without scattering large amounts of dust in theworking environment – something particularly significant intunnel construction. The rebar is then anchored with the Hilti­HIT-HY 200 chemical injection system.

For example, Hilti helped simplify the monitoring process forshotcrete strength with the help of a unique pullout process
for direct-fastening elements. This was done by setting afastening element in the shotcrete with the Hilti DX 450 SCT
setting tool and then determining the degree of concrete
hardness with an extraction device developed specificallyfor this purpose. This method not only conforms to European
standard EN 14488-2, but was also documented in the Austrian Society for Construction Technology guidelines. The
customer gains a clear advantage in having a fast and reliable method for monitoring concrete substrates so that work
can quickly continue analog to existing specifications.
When completed in 2018 the Crossrail project will significantly ease the transit situation in London. The commute formany people will be much shorter and many new jobs will
have been created. One nice ancillary effect is the creationof a new wildlife sanctuary on nearby Wallasea Island, which
will be fashioned from the tunnel material excavated from the
Crossrail project. Until now the amount is approximately one
million tons.

A team of five Hilti specialists works on the Crossrail projectaround the clock. They have access to the various construction sites. “Our customers view us as partners so we’re included in their deliberations early on in the process. We canprovide our expertise to help select productive and efficientsystems and to remove any potential sources of error well inadvance,” says Pavlos Gklavinas, Hilti’s Project Manager for
Crossrail.

21

Liechtenstein

PRODUCT INNOVATIONS.
Fast driverThanks to new, more rigid
screw strips, the new Hilti
SD-M 1 screw magazine
can be loaded extremely
quickly. The strip doesn’tbuckle when pushed in andscrews of various lengths
are transported and driven
with virtually no resistanceand no time-consuming
jamming. Clever details likethese make interior finishing work easier than ever.

RuggedThe innovative Hilti
PR 2-HS and PR 30-HVS
rotating lasers, featuring ­a unique impact-absorbing
system, withstand drops
from a height of up twometers without damage.
Even rain and dust have noeffect on the reliable accuracy of these ruggedly built
laser tools.

Red hot

Ideal for use where electric-cable installations are
modified frequently, the
new Hilti CFS-BL firestop
brick can be cut without
need for special tools andis easy to install. This
internationally approved,
fiber-free, time-saving
product is not only theperfect solution for appli­
cations in dust-sensitive
areas such as data centers,laboratories or hospitals,
it also complies with green
building requirements.

Mobile revolution

Providing up to 30 percent
higher drilling performance
than comparable corded
tools, previously undreamed­of cordless chiseling power
and featuring a brushless
motor that requires virtuallyno maintenance, the new
Hilti TE 30-A36 cordlesscombihammer defines
an entirely new class of­cordless tool.

USA / Canada

ONLINE BUSINESS.

24

After months of preparations the newgeneration of Hilti Online successfully
went live in August 2013. With more than
50,000 page hits each day Hilti Online
has developed into a popular sales
channel.
Construction professionals are not only gathering more
information from Internet sources, they are buying what theyneed from these sources with greater frequency. As a result
the online catalog for the new generation of Hilti Online has
been optimized to reflect the changing needs of construction professionals. From quickly locating the right productand showing current availability, to simple ordering and support information on shipping status, Hilti Online now ranks
among the most modern Web sites in the professional construction industry.
Hilti is aware of the significance mobility plays for on-site
professionals and even has a specific Hilti Online version
designed for mobile devices which automatically appears on
the display once a smartphone or tablet logs on to the Web
site. While there may not be electrical outlets or desktop
computers on the 12th floor of a building shell, the need for
digital information still exists. If accessories are running low
the customer must only scan the QR code on the packaging
with a smartphone, select the desired amount and place
their online order. Documents such as operating instructions
or approvals can now be accessed anywhere and at any
time. More than 10 percent of the visits to Hilti Online now
take place via mobile devices.
The new Hilti Online was introduced after almost two
years of intensive preparations. All existing customer contact data has been successfully migrated. Successively
rolled out in the USA, Europe and Asia, almost the entire Hilti
world is operating on this brand-new Web platform as thisCompany Report is published.

25

Saudi Arabia

MEGACITY.
The plans for the project appear as though
they are from another time. Some 34
futuristic high-rises, apartments,
hotels, parks, open space and many
shopping areas, all linked by a monorailsystem. These are all part of the King
Abdullah Financial District, one of
the largest construction projects in the
Saudi A­ rabian­capital of Riyadh.
The King Abdullah Financial District (KAFD) marks a significant milestone in sustainable city planning and is well
positioned to be a trailblazing global project in terms of sustained environmental protection and natural resource conservation. The KAFD is the first district worldwide to apply
for Leadership in Energy and Environmental Design certification from the American Green Building Council. As a result,environmental conditions are taken into consideration fromthe beginning of the planning stages.
Saudi Oger, a leading Saudi construction, facility management and infrastructure company, designed and is building, among other projects, the aboveground monorail system that will link all sections of the new city district. Having
a length of 3.5 kilometers, the system features 131 support
pillars and 30 bridges and is a true challenge for both thetechnicians working on the project and for Hilti. For fastening
work Saudi Oger needs some 5,000 meters of anchor channels designed specifically for the project. “In addition to thespecial anchor channel construction the calculation process
for the corresponding anchors is complicated. The anchor
penetration depth may not exceed 150 millimeters yet they

still have to ensure maximum safety and stability,” explains
Hilti Engineering Manager Hussein Abu-Sheikha. He works
closely with the customer and, together with a team of specialists, ensures that the required products and solutions aredeveloped and delivered on time.
Saudi Oger greatly appreciates the commitment of the
Hilti team: “We have been working with Hilti for a long time.
This project was a great challenge for us all and Hilti always
provided us with the ideal solution that met our requirements.”

The special alloy from which the Hilti HSS twist drill
is manufactured makes it extremely durable andresistant to deformation at temperatures up to
600°C. This special alloy also helps prevent swarf
sticking to the bit while drilling through steel.

26

27

Australia

TOTAL PACKAGE.

Sydney is booming. “Barangaroo” is thelargest development project the city has
seen since the 2000 Olympic Games. A newcity district having an investment volume of
6 billion AUD is taking shape on the city’s
western edge. When finished, BarangarooSouth will be the first large-scale carbonneutral precinct in Australia.
Initial grading work began on the former container port in
2011. To date, more than 680,000 tons of material have been
excavated and removed from site. A true gauge of the project’s size, however, has only recently become visible. Cranes
dot the city’s western shoreline and the site is pulsing withactivity. An initial high-rise commercial tower is already28

­rapidly growing into the sky. When the transformation iscomplete, the city will have a brand-new international financial services precinct.
Lend Lease, a globally renowned property development
and construction company, is responsible for the development of Barangaroo South, the southern 7.5 hectares of the
precinct. This includes three main commercial buildings,
known as the International Towers Sydney. Hilti has supported Lend Lease in all facets of development since planningwork began. This is not the first time that the two companies
have worked together. Lend Lease has ranked among thebiggest customers in Hilti’s Australian market organization
for years. “Working on such a large-scale, high-profile project,­it is vital that we partner with a reliable supplier who canbe trusted to deliver day in, day out,” says David Langford,­Construction Manager, Barangaroo South, Lend Lease.
In addition to the various products, comprehensive services and Hilti know-how are in high demand. “In the end, it’s
the total package that counts,” explains Langford. Hilti’s­coordinated effort includes area sales managers, field engineers, logistics and finance experts and customer service
representatives, ensuring that Hilti delivers the required services when and where they are needed.
A fully air-conditioned shipping container, in striking Hilti
red, stands conspicuously on the Barangaroo South construction site and houses the most important Hilti tools andaccessories. Lend Lease workers have constant access tothe container, ensuring no delay when one tool or another isneeded in a hurry. The most popular items are the Hilti collection of cordless tools. In the formwork phase for the firstcommercial tower more than 60 cordless circular saws alone
are being put to work. For Lend Lease, working with cordlesstechnology is also a matter of safety. “Safety, mobility andreliability is what we were looking for and the Hilti cordlesssystem ticks all of those boxes. It also helps that our workforce really appreciates using the best tools for the job,” says
Langford.

29Germany

CORROSION PROTECTION.

In 2003, when Hilti introduced the X-BT,
a short threaded stud with a blunt end,
it represented a small revolution. Customers in the offshore sector finally hada fastening element that made corresponding applications much more efficient and was also much more corrosionresistant than standard fasteners. Thislatter point now has scientific backing.
Even when facing the most dreadfulambient conditions the X-BT has a lifetime of more than 40 years.

30

Saltwater environments are perfect for corrosion. But a
resistance to corrosion is essential for all components usedon oil and natural gas drilling platforms and in shipbuilding.
More than ten years ago Hilti developed the X-BT threaded
stud, a fastener suited particularly well for use in demanding
offshore environments. The threaded stud has a blunt end
and is equipped with a sealing washer. These features avoid
through-penetration of the steel structure and thus damage
to its corrosion protection coating while also preventing theentrance of moisture. The life expectancy of the stud is also
an important factor. Hilti left nothing to chance and therefore
started a 10-year test program on the German North Sea
island of Helgoland in cooperation with the Materials Testing
Institute University of Stuttgart. Facing the ebb and flow of

the tide, saltwater, rain, wind and even snow, the X-BT had
to withstand extremely harsh conditions. But this test on theseawater test rig has now confirmed that the X-BT can resist
corrosion for at least 40 years, even when exposed to salt
spray.

The Hilti TE 7 and TE 7-C rotary hammers are equip­­ped
with high-performance dust removal systems to ensureclean, dust-free holes in masonry.

31

9

seconds: the average time worldwide that a customer must wait when dialing the Hilti service
number before being personally welcomed by a Hilti employee.

1millisecond: all the time it takes for the Hilti TE 70-ATC-AVR combihammer’s sensors to analyze the movement
patterns of the tool in order to initiate electronic cutout of the tool in the event of the drill bit sticking.

3.5

days: the average time worldwide that passes between a customer reporting a defective tool and Hilti
returning the repaired, inspected tool to the customer.

0

francs: cost accrued by a Hilti tool if it has to be repaired during the first two
years after the date of purchase.

92

percent: share of Hilti employees that are proud to work forthe company according to the Global Employee Opinion Survey.

0

grams: amount of dust that must be manually removed from a drilled hole whenusing the new Hilti HIT-HY 200 chemical anchor system.

32

Liechtenstein

SUCCESS IN FIGURES.

33

THE EXECUTIVE BOARD.

Dr. Christoph Loos

Chief Executive Officer
Schaan, Principality of Liechtenstein
Christoph Loos (born 1968, Germany) assumed CEO re­sponsibilities in January 2014. He has been a member of the
Executive Board since 2007. During the first four years of thistenure he was responsible for Finance, Human Resources, IT
and Group Strategy. From 2011 to 2013 he was in charge of
the Emerging Markets and the global Energy & Industry units.
After finishing his business administration studies at the­University of St. Gallen and earning his doctorate he worked
for an international management consultancy in Germany
and China. Upon joining Hilti in 2001, he first led the Corpo­
rate Development team and then established the Strategic
Marketing 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. Christoph Loos is amember of the Board of Trustees of the St. Gallen Founda­tion for International Studies.

34

Jörg Kampmeyer

Vaduz, Principality of LiechtensteinJörg Kampmeyer (born 1968, Germany) has been CFO anda member of the Executive Board since April 2011. He is
responsible for the Finance, Human Resources, IT andGroup Strategy units. Jörg Kampmeyer studied mechanicalengineering and economics at RWTH Aachen University.
After completing his studies he worked for international­
management consulting firms. He began his Hilti career in2002 as the Head of Corporate Development in Schaan.
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 courseof the year he became General Manager at Hilti Germany.
Since 2010, he has also headed the Central Europe Market
Region.

Jahangir (Jan) Doongaji

Maienfeld, Switzerland
Jahangir (Jan) Doongaji (born 1967, India/Switzerland) has
been a member of the Executive Board since the beginningof 2014. He is responsible for the Electric Tools and Corpo­
rate Research & Technology units. After completing his­master’s degree in mechanical engineering at the Swiss
Federal Institute of Technology Zurich, Jahangir Doongaji
held various worldwide positions in an international indu­s­trial corporation between 1992 and 2000. During this time
he also earned an MBA from INSEAD in Fontainebleau,
France. 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 heheld various positions in Hilti’s tools business units. Most
recently he headed the Power Tools and Accessories Busi­
ness Unit. Jahangir Doongaji is a member of the European
Power Tool Association (EPTA) Board.

Matthias Gillner

Grabs, Switzerland
Matthias Gillner (born 1967, Germany) has been a memberof the Executive Board since April 2011. He was initially responsible for Electric Tools and Corporate Research & Technology. Since the beginning of 2014, he has led the Emerging
Markets and global Energy & Industry units. Matthias Gillner
studied chemical engineering at Friedrich-Alexander University of Erlangen-Nürnberg, Germany. He was employed byan international consulting company from 1993 to 2000.
During this time he earned an MBA at INSEAD in Fontaine­
bleau, France. He began his Hilti career in 2000 as the Headof Corporate Development. In mid-2001, he was named
Head of Corporate Human Resources and then moved
to lead the Measuring Systems Business Unit. From 2006 to
2011, Matthias Gillner was Head of the Electric Tools &­Accessories Business Area.

Dr. Stefan Nöken

Mörschwil, Switzerland
Stefan Nöken (born 1965, Germany) has been a member ofthe Executive Board since the beginning of 2007. He is­responsible for Fastening Technology and Logistics. Following studies in mechanical engineering at Aachen University,where he earned a doctorate, he was employed at the Fraunhofer Institute for Production Technology in Aachen. In 2000,
he joined Hilti as the Head of Corporate Engineering. In 2004,
he was appointed Head of Supply Chain Management.
­Stefan Nöken is Chairman of the Board of Trustees of the
Fraunhofer Institute for Production Technology in Aachen
and member of the Industry Executive Advisory Board of the
Executive MBA in Supply Chain Management at the Swiss
Federal Institute of Technology Zurich.

Marco Meyrat

Chur, Switzerland
Marco Meyrat (born 1963, Switzerland) has been a memberof the Executive Board since the beginning of 2005. He is
responsible for the markets in Europe and North America.
With a business degree from the University of St. Gallen, hebegan his Hilti career in 1989 as Product Manager at Hilti
corporate headquarters in Schaan. After holding various­positions in Hilti France and Hilti Germany, he was named
General Manager of Hilti Switzerland in 1999 and was subsequently appointed General Manager of Hilti Germany in2002. Marco Meyrat is Chairman of the Board of Directors of
OLMeRO AG, Glattbrugg, Switzerland.

35

THE BOARD OF DIRECTORS.

Prof. Dr. Pius Baschera

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

Michael Hilti

Schaan, Principality of Liechtenstein
Michael Hilti (born 1946; re-elected to serve until the 2015
Annual General Meeting), son of company founder Professor
Martin Hilti, has been a member of the Board of Directors
since 1990. After studying business administration 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 the company’s Executive
Board and he served 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 Hilti Family Trust andPresident of the Board of the Hilti Foundation.

Prof. Dr. Giorgio Behr

Buchberg, Switzerland
Giorgio Behr (born 1948; re-elected to serve until the 2015
Annual General Meeting), Honorary Professor at the University of St. Gallen, was previously a member of the Board of
Directors of the Hilti Corporation between 1993 and 2007.
Since January 2008, he has been a Trustee of the Martin Hilti
Family Trust and in January 2009 he was again elected toserve on the Board of Directors of the Hilti Corporation.
­Giorgio Behr gained his doctorate degree at the law schoolof the University of Zurich, was admitted to the bar and­obtained a diploma as a Certified Public Accountant. Today
he is an entrepreneur in the industrial sector (Behr Bircher
Cellpack BBC Group). Giorgio Behr is also Chairman of theSupervisory Board of ZF Friedrichshafen AG.

Kim Fausing

36

Sonderborg, Denmark
Kim Fausing (born 1964; elected until 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, and an MBA degree at Henley Management School, in London, in 1996. His professional career led him to the Hilti Group in 1990, where he servedin various management functions in Europe and Asia until
2007. After moving to the Danish Danfoss Group, he wasnamed Chief Operating Officer and member of the com­pany’s executive committee in January 2008. He also is a
­Director of the German-Danish Chamber of Industry andCommerce and Vice-President of the Velux Group in Copenhagen, Denmark.

Heinrich Fischer

Rüschlikon, Switzerland
Heinrich Fischer (born 1950; re-elected until the 2016 ­Annual
General Meeting) has been a member of the Board of Direc­
tors since 2007. He graduated in 1973 with an engineering
diploma from the Swiss Federal Institute of Technology­Zurich, having studied electrical engineering and technicalphysics. He then went on to study business administration
at the University of Zurich while working in this field, earninga master’s degree in 1976. Beginning in 1977, he held senior
management positions at Oerlikon Bührle Holding, Balzers
AG (1980 to 1989), 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 ofthe Board of Directors of Tecan AG, Orell Füssli AG ­(Chairman)
and Sensirion AG.

Dr. Tis Prager

Zumikon, Switzerland
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 the­University of Zurich in 1975, was admitted to the bar of­
the Canton of Zurich in 1978 and is a founding memberof the Prager Dreifuss law firm in Zurich and Bern. Amongother mandates, Tis Prager is the Chairman of the Board ofScherer & Bühler AG, Meggen, 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 Chairman of IE Engineering Group AG, Zurich, andCaprez Ingenieure AG, Chur. He is also active in STEP, theSociety of Trust and Estate Practitioners.

Dr. Michael Jacobi

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

37

CORPORATERESPONSIBILITY.
Anchored in the business model. Practiced on a daily basis.
At Hilti corporate responsibility means:
The best working conditions for our team members.
Everything needed for the safety of our customers on the construction site.
Worldwide responsibility towards society.
The highest environmental and climate protection standards.
Integrity and ethics at all times in all locations.
We build a better future.

7HDP
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38

6RFLDO(QYLURQPHQWUHVSRQVLELOLW\&RPSOLDQFH
DQGEXVLQHVVHWKLFV$FWLYHO\PDQDJLQJ (QVXULQJFRPSOLDQFH&RQWULEXWLQJWRVXVWDLQDEOHVRFLDO WKHHIIHFWVRQZLWKVWDWXWRU\DQG
WKHHQYLURQPHQWGHYHORSPHQWHWKLFDOVWDQGDUGVEMPLOYEE SATISFACTION
IN 2013.
Pride and commitment

Positive
Neutral
Negative

A survey of Hilti employees worldwide iscarried out once a year. In 2013 the participation rate of the Global Employee Opinion Survey (GEOS) was 93 percent.

GE
OS
0%

0%

94%

100%

are willing to do the utmost
for Hilti.

5%

1%

0%

100%

92%

1%

82%

would recommend Hilti
as a great place to work.

7%

are proud to workfor Hilti.

100%

13%

5%

39

CORPORATE CULTURE.
The people at Hilti
Based on its highly developed corporate culture, Hilti offers employees outstanding career opportunities in a worldwide Group. In 2013, employees invested 24,000
working days in corporate culture workshops.

2010

2011

2012

2013

32,00024,00024,00024,000

10.3

8.5

7.6

8.9

Number of working days employees spent on
corporate culture workshops
Expenditure for corporate culture workshops(in CHF million)

13%

14%

15%

14.1%

Fluctuation

83%

83%

78%

82.4%

Integration success rate*

85%

81%

88%

82.2%

360

366

348

331

+3%
20,305+8%
21,848−3%
21,139+1%
21,456

Open management positions filled with internal
candidates
Number of apprentices worldwide
Number of employees (at December 31)* The integration success rate measures the number of employees who joined Hilti in the last
two years and are still employed at the company.

40

SUPPLIERS.
Compliance with the Code of Conduct for Suppliers
in mandatory
Each potential Hilti supplier must complete a comprehensive audit before they are
considered an official partner of the company. In addition to topics such as technology, quality and efficiency, their adherence to the stipulations of our Code of
Conduct for Suppliers is also monitored. The Code of Conduct is based on compliance standards and an integral part of the contract and obligates suppliers to­observe the Code’s principles. The Code of Conduct contains clear guidelines formaintaining high standards in terms of social and environmental responsibility andalso obligates suppliers to observe zerotolerance regarding any type of corruption.
Compliance with the Code of Conduct is closely monitored by Hilti. All existing
suppliers of direct production materials and allied products in high-risk areas are
regularly monitored by an independent and internationally recognized organization.
The Code of Conduct also forms the basis for sustainable cooperation with theHilti Group in terms of procuring indirect production materials as the Code is
mandatory when concluding a corresponding supplier agreement. Hilti’s efforts inthis area were reinforced in 2013 and today some 90 percent of the procured
goods come from suppliers who are either covered by Hilti’s Code of Conduct or
are obligated to observe their own, equally strict regulations. Additionally, thesuppliers of clothing are monitored and audited by an independent, internationally recognized organization.

41

KEY ENVIRONMENTRELATED DATA.
CO2 emissions of the
Hilti Group (in t) CO2 equiv.
PlantsMarket organizations (top 13)

2009

87,2092010

87,303

2011

99,317

2012

97,507

2013

94,3810

CO2 emissions per
employee (in t)(in MWh)

40,00060,00080,000 100,000 120,000

2009

4.56

2010

4.30

2011

4.55

2012

4.61

2013

4.40
0

Energy consumptionin Hilti plants

20,000

1

2

3

4

5

6

2009

69,634

2010

81,9392011

81,048

2012

80,287

2013

80,2800

20,00040,00060,00080,000100,000

Comments
CO2 emissions
In 2013, we further improved our CO2 balance sheet. Since 2011, we have­reduced Hilti Group CO2 emissions by some 5%. Energy efficiency atpro­duction facilities and the use of more fuel-efficient automobiles by Hilti
sales employees significantly contributed to this result.
Energy consumption in the Hilti plants
We are working on increasing energy efficiency throughout our production
network. Over the last three years we have invested CHF 2.3 million in almost
100 energy-related projects at our production facilities. As a result we wereable to save 7,000 megawatt-hours of energy despite the increase in capa­c­
ity utilization.

42

Fuel consumption
in the top 13 market
organizations(in million liters of fuel)Gasoline
DieselWater consumption
for manufacturing (in m3)

2009

18.902

2010

18.9362011

19.111

2012

18.9182013

18.212
0

10

15

20

25

2009

124,8252010

140,836

2011

177,9622012

168,415

2013

167,8160

Total waste production frommanufacturing (in t)

550,000100,000

150,000

200,000

2009

5,911

2010

6,672

2011

6,851

2012

6,753

2013

7,310
0

2,000

4,000

6,000

8,000

Comments
Fuel consumption
In Hilti’s 13 largest market organizations the ongoing shift to more fuel-­
efficient vehicles has resulted in a reduction of fuel consumption by some1 million liters since 2011. This equates to a reduction in fuel consumptionof roughly 5%.
Water
Water consumption in our production facilities has fallen roughly 5.7% since2011 in spite of greater capacity utilization. This result was made possible by,among other measures, a 40% reduction in water consumption at our plantin China. This was achieved by introducing closed water circulation loops invarious significant production processes. Countering this, however, was acorresponding increase in water usage at our plant in Mexico due to greater
production capacity.
Waste
We continue to develop innovative production technologies aimed at avoiding waste from the outset of our processes. Waste volume increased, however, in 2013 due to the integration of waste volume from our plant in China,
included in calculations for the first time, as well as from increased concrete
usage for test purposes in our tool development processes.

43

UN GLOBAL COMPACT
PROGRESS REPORT.
Human rights nline learning program: Our Codes of Conduct for emO
ployees and suppliers contain binding worldwide directives for, among others, maintaining human rights and labor norms. In the 2013 business year, some 16,000
employees in 65 countries successfully completed ane-learning program on the topic of compliance and business ethics.
Helplines: We encourage our employees to report any suspicion they have regarding Code of Conduct violations,either directly to their supervisors and our Compliance Delegate or via our compliance helplines which are accessiblearound the clock. The helplines are available to employees
in 70 different countries and in 40 different languages.
 orporate culture: “The Hilti Way” describes our culture,
C
which is characterized by common values, exemplary
management behavior and the conviction that corporate
growth and the personal growth of the employee form asingle unit. In 2013, our employees spent some 24,000
working days in corporate culture workshops.

Global Initiative Reporting: GRI G4 indicators
LA8 Health and safety topics covered in formal agreementswith trade unions.
HR2 Total hours of employee training on human rights policies or procedures concerning aspects of human rights thatare relevant to operations, including the percentage of employees trained.

44

Labor norms
W orker safety: Health protection enjoys the highest priority with Hilti and is firmly anchored in all work processes.
We have taken a proactive approach worldwide with theassistance of numerous measures aimed at preventing
occupational accidents, work-related illnesses or occupational illnesses. Worker safety and health management areincluded in our Codes of Conduct for employees and suppliers.
 rgonomics: In 2013, systematic investigations were carE
ried out at workplaces having repetitive activities, such as
grasping or turning. These often lead to complaints andillnesses in the upper extremities, the neck and back. To
prevent these work-related injuries we offer our employees a comprehensive consulting service and a company
doctor.

Global Initiative Reporting: GRI G4 indicators

HR5 Operations and suppliers identified as having significant

risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor.
HR6 Operations and suppliers identified as having significant
risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced orcompulsory labor.

The Hilti Corporation has been a signatory to the United Nations Global Compact since 2006 and expressly subscribes to its ten principles for responsible corporate management.
This overview provides an exemplary listing of the measures implemented in the year under review.

Environmental protectionEnergyefficiency: In Hilti’s manufacturing plants some 95
projects have been initiated over the last three years
aimed at increasing efficiency in the areas of energy andwater consumption and waste generation. This has resulted in a significant energy savings equivalent to roughly
7,000 megawatt-hours.
Awardfor sustainable products: In 2013, the Hilti TE-XY
hammer drill bit, for use in reinforced concrete, was awarded the German Federal Ecodesign Award. The drill bit isunique on the market and manufactured via cold-forming
process, which significantly reduces the burden on theenvironment as it eliminates material waste. The bit also
has a significantly longer lifetime.
Sustainability
certification: Hilti’s new HAC anchor channel system was the first new product in this segment toreceive the Environmental Product Declaration (EPD). EPD
forms the basis for the ecological building evaluation andhas been evaluated according to ISO norm EN 15804.

Global Initiative Reporting: GRI G4 indicators

EN3 	Energy consumption within the organization.
EN6 	Reduction of energy consumption.
EN8 	Total water withdrawal by source.

EN15 	Direct greenhouse gas (GHG) emissions (scope 1).

Combating corruption
 ompliance standards for distributors: We are also acC
tive outside of our company in terms of encouraging integrity in business practices. This includes obligating ourbusiness partners to observe our guidelines. In 2013, we
integrated 19 distributors into our compliance management system from countries in the Middle East and Africa.
Local personal training was the primary emphasis of thisinitiative.
 eporting and approvals processes: The reporting andRapprovals processes that are valid under the anti­cor­
ruption guidelines in 2012 were monitored in all country
organizations in 2013. Implementation took place throughthe Chief Compliance Officer in cooperation with the Local
Compliance Delegate.
 ontract administration: Hilti’s Code of Conduct forC
Suppliers was revised in 2013. The Hilti Corporation now
has a special right of termination if serious violations are
identified. The new Code of Conduct is now an integral
part of contractual agreements concluded by our market
organizations and plants regarding the procurement of indirect production materials and services.

Global Initiative Reporting: GRI G4 indicators
DMA 	Disclosures on Management Approach.
SO4 	Communication and training on anticorruption­policies and procedures.

EN16 	Energy indirect greenhouse gas (GHG) emissions(scope 2).

EN19 Reducing greenhouse gas emissions.

EN23 Total weight of waste by type and disposal method.

EN27 	Extent of impact mitigation of environmental impacts

of products and services.

45

KEY FIGURES.

46

47

ANOTHER SUBSTANTIAL
IMPROVEMENT OF PROFI­T­­­
ABILITY AND CAPITALEFFICIENCY.
With a moderate 3.2 percent sales
growth in line with expectations, the Hilti
Group increased its operating result by
40 percent while return on sales grewsignificantly from 7.2 to 9.7 percent
in 2013. The Group thus achieved theobjectives of its profit­ability enhancement and capital efficiency program,initiated at the end of 2011, ahead ofschedule, which has created scope for
new investments.

The regions in which the Hilti Group operates were again
characterized by distinctly heterogeneous economic developments. While the construction sector in most of West­ern,
Central and Eastern Europe remained subdued and markets
in Southern Europe were declining, Northern ­Europe showedsigns of growth. North America’s solid economic environment was overshadowed by monetary uncertainties andmarket development remained modest. Latin America, theMiddle East and Asia, however, continued to display good
economic momentum.
Overall moderate sales growth
The Group’s regional sales figures are a reflection of thismixed picture. In the growth regions of Latin America, East­
ern Europe / Middle East / Africa and Asia/Pacific, theGroup’s sales growth in local currencies reached double digits (+17.9%, +14.3% and +17.3%). In North America (+8.2%
excl. Solar, +2.8% incl. Solar) distribution and marketing activities were enhanced to cope with uncertain economic conditions. European sales continued to shrink slightly (–1.1%),
characterized by stronger growth in Northern Europe, subdued performance in Western Europe and persistent downward pressure in Southern Europe (Italy, Spain, Greece).
Against this backdrop, the Hilti Group succeeded in increasing global sales by 4.5 percent in local currencies.
While business in general developed in line with expectations, sales to the solar industry showed an unsatisfying picture. Asia (in particular Japan) enjoyed substantial growth,
but the US solar market was a challenge and sales continued
to drop significantly in Europe. The Hilti Group expects that
the European solar market will stabilize at a low level in thelong run as a result of the cut in public subsidies such as inGermany. In response to this development, the Group has
resorted to structural adjustments and partial write-offs reflecting the dampened business potential.

48

On the exchange rate front, several regions were marked
by weakening currencies against the Swiss franc, which waspartly due to the monetary signals sent out by the US Fed(with secondary impacts on Brazil, India, South Africa) andprotective devaluation measures such as in Japan. The exchange rate effect diminished the Group’s sales growth by–1.3 percent. In Swiss francs, sales have grown by 3.2 percent to CHF 4.3 billion.
Substantial enhancement of profitability
The Hilti Group achieved the objectives of its profitability
enhancement and capital efficiency program, launched at
the end of 2011, ahead of schedule in 2013. Additional actions to reduce product costs and enhanced distribution
productivity as well as structural adjustments at corporate
headquarters and in slow-growth markets have resulted in a
gratifying improvement of the operating profit margin (ROS)
from 7.2 to 9.7 percent. Like sales, the operating result wasalso negatively affected by exchange rates, as reflected by
the reduction of ROS by –0.6 percent.
Strong cash flow and improved capital efficiency
Capital efficiency was improved further thanks to a newinternal steering and management compensation system.
Average days sales outstanding (DSO) for receivables andinventory range were again brought down by more than
three days (6 and 3 percent, respectively). As a consequence, net working capital relative to sales was reduced
from 22 to 21 percent. Operating cash flow was again highat CHF 598 mil­lion and free cash flow reached the excellent
level of CHF 354 ­million. Return on capital employed (ROCE)
improved from 9.5 to 12.8 percent.
Sound balance sheet structure
Cash and cash equivalents increased to CHF 1,538 mil­lion. Financial debt amounted to CHF 879 million at the endof 2013. Short-term bank borrowings stood at CHF 125 million (2012: –16 million), while long-term bank borrowings
were CHF 40 million (–25 million).

For 2013, the Board of Directors proposes an ordinary
dividend payment of CHF 153 million (2012: CHF 131 mil­lion).
Over the next few years and in line with business results,
the Hilti Group intends to make use of its strong cash flow
position to gradually repay excess liquidity – which it held
throughout the recent period of macroeconomic turbulence– to its owner. Having reviewed the company’s strategy lastyear, the Group has come to the conclusion that Hilti’swell-established and sound business profile no longer calls
for this reserve and that the repayment of excess liquidity will
not compromise the company’s flexibility. Therefore, theBoard of Directors proposes the payment of a special dividend of CHF 240 million, which will bring up the aggregate
dividend payout to CHF 393 million. The Hilti Group contin­
ues to hold high liquidity reserves to secure the company’s
independence even in more challenging times. Furthermore,
the Group’s sole shareholder, the Martin Hilti Family Trust,owns sufficient liquidity for contingency financing, e.g. formajor acquisitions.
Outlook
Economic forecasters seem to agree that the businessclimate will be similar to or moderately better than last year
in most markets. At the same time, scope for additional investments in new products and distribution facilities could
emerge earlier than anticipated as a result of positive profit­
ability and cash flow trends. Hence, the Hilti Group is confident about the prospects for 2014 and expects growth inlocal currencies to be slightly above 2013 levels. On the other hand, exchange rate markets will probably remain ­volatile.
The Group’s profitability and capital efficiency enhancement
initiatives will continue to be effective in 2014 and are expected to create more added value.

Thanks to the sound Group’s balance sheet structure, it
was decided that the two bonds maturing in 2013 and 2014
(CHF 150 million and 300 million, respectively) would only bepartially replaced by a new CHF 200 million bond issued in
2013. The new issue came in two tranches, five and ten
years, and was met with great demand. With coupons of
0.875 percent and 1.875 percent, respectively, the Hilti
Group managed to offer attractive conditions for bondholders.
Net liquidity rose to CHF 659 million. The equity ratio improved to 53 percent at year-end and continues to be verysatisfactory.

49

Key figures

Net sales(in CHF million)

2009

3,845

2010

3,930

2011

3,998

2012

4,205

2013

4,340
0

Cash flow fromoperating activities(in CHF million)(in CHF million)

2,000

3,000

4,000

5,000

6,000

2009

487

2010

376

2011

242

2012

619

2013

598
0

Operating result

1,000

150

300

450

600

750

900

2009

172

2010

268

2011

207

2012

301

2013

421
0

100

200

300

400

500

600

Please note: 2012 numbers have been restated due to the adoption of IAS 19 Employee Benefits (Revised) and IFRS 11 Joint
Arrangements. Numbers prior to 2012 have not been restated.

50

Net income(in CHF million)

2009

78

2010

142

2011

97

2012

187

2013

304
0

Research and deve­l­op­ment expenditure(in CHF million)(as at December 31)

200

300

400

500

600

2009

182

2010

172

2011

184

2012

175

2013

189
0

Employees

100

50

100

150

200

250

300

2009

19,7092010

20,305

2011

21,848

2012

21,1392013

21,456

12,00014,00016,00018,00020,00022,00024,000Please note: The following pages contain extracts from the2012 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 2013. Complete information, including the notes tothe consolidated financial statements, is contained in the 2013
Financial Report, which will be available on the Group’s Web
site (www.hilti.com) from late March 2014.
The full 2013 consolidated financial statements, which areincluded in the 2013 Financial Report, have been prepared inaccordance with international financial reporting standards(IFRS).

51

Consolidated balance sheet of Hilti Groupas at 31 December(in CHF million)

52

2012

2013

ASSETS

371.3

340.0

Intangible assets

751.4

760.8

2.2

2.2

142.6

126.5

Deferred income tax assets

14.4

13.4

Other financial investments

349.1

362.4

Trade and other receivables

19.2

–

1,650.2

1,605.3

563.4

548.5

Inventories

899.2

943.2

Trade and other receivables

Property, plant and equipment
Investment property

Derivative financial instruments
Total non-current assets

8.3

11.4

Current income taxes receivable

83.0

50.3

Accrued income and prepayments

9.0

33.8

Derivative financial instruments

35.9

32.1

Financial assets at fair value
through profit or loss

1,306.6

1,538.3

Cash and cash equivalents

2,905.4

3,157.6

Total current assets

4,555.6

4,762.9

TOTAL ASSETS

2012

2013

EQUITY AND LIABILITIES

14.3

9.3

2,313.8

2,513.5

Equity attributable to equity holders of the parent

Non-controlling interest

2,328.1

2,522.8

Total equity

49.9

57.5

Provisions

329.0

308.4

Employee benefits

28.6

26.0

Deferred income tax liabilities

510.3

414.7

Bonds

64.3

39.5

Long-term bank borrowings

22.0

24.9

Trade and other payables

0.9

1.0

Derivative financial instruments

1,005.0

872.0

Total non-current liabilities

68.1

75.3

Provisions

48.9

8.7

Employee benefits

318.7

342.7

Trade and other payables

92.2

89.5

Current income taxes payable

399.8

424.9

Accrued liabilities and deferred income

149.7

299.8

Bonds

141.7

125.3

Short-term bank borrowings

3.4

1.9

1,222.5

1,368.1

Total current liabilities

Derivative financial instruments

2,227.5

2,240.1

Total liabilities

4,555.6

4,762.9

TOTAL EQUITY AND LIABILITIES

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

53

Consolidated income statementof Hilti Group(in CHF million)

2012

2013

4,204.6

4,340.2

83.3

92.3

Other operating revenues

4,287.9

4,432.5

Total operating revenues(57.5)

1.2

Net sales

Change in inventory(1,274.4) (1,317.9)

Material costs(1,692.4) (1,702.9)

Personnel expenses(197.2)(220.3)

Depreciation and amortization(765.2)(771.5)

Other operating expenses(3,986.7) (4,011.4)

Total operating expenses

301.2

421.1

Operating result(22.0)(16.0)

Other revenues and expenses (net)(56.3)(51.0)

Finance costs

222.9

354.1

Net income before income tax expense(35.6)(50.0)

Income tax expense

187.3

304.1

Net income

185.8

305.5

Equity holders of the parent

1.5

(1.4)

Non-controlling interest

Attributable to:

The notes to the consolidated financial statements, which immediately follow theconsolidated cash flow statement, are an integral part of, and should be read in conjunction with, the consolidated balance 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)

2012

2013

187.3

304.1

3.5

0.4

Net movement on cash flow hedges

Net income

(0.4)

(0.1)

Deferred tax on net movement on cash flow hedges(6.7)(21.2)

Foreign currency translation differences(3.6)(20.9)

Items that may be subsequently reclassified to the income
statement(78.3)

47.6

Remeasurements on employee benefits

12.5

(5.5)

Deferred tax on remeasurements on employee benefits(65.8)

42.1

Items that will never be reclassified to the income statement(69.4)

21.2

Other comprehensive income (OCI)

117.9

325.3

Total comprehensive income

116.8

326.9

Equity holders of the parent

1.1

(1.6)

Non-controlling interest

Attributable to:55

Consolidated cash flow statementof Hilti Group(in CHF million)

56

2012

2013

187.3

304.1

Net income

197.2

220.3

Adjustment for depreciation and amortization

114.1

116.8

Adjustment for non-operating transactions

57.5

(1.2)

(Increase)/decrease in inventories

55.1(18.7)(Increase)/decrease in trade receivables

22.8

25.1

Increase/(decrease) in trade payables

81.5

51.2

(Increase)/decrease other net operating assets

715.5

697.6

Cash flow from operating activities before interest and tax

5.5

5.3

(56.3)(51.0)

Interest paid

(45.6)(53.9)

Income tax paid

619.1

598.0

Cash flow from operating activities(61.9)(79.1)

Capital expenditure on intangible assets(126.1)(130.1)

Capital expenditure on property, plant and equipment(11.0)

6.7

2.0

–

5.2

6.9

Interest received(Increase)/decrease in financial investments
Disposal of intangible assets
Disposal of property, plant and equipment(61.7)(48.5)(Increase)/decrease in finance lease receivables(253.5)(244.1)

Cash flow from investing activities

2012

2013

0.4

2.8

(12.7)(18.8)

1.0

0.9

Increase in long-term loans

(1.2)

(2.3)

(Decrease) in long-term loans

27.0(19.7)

Increase/(decrease) in short-term bank borrowings

Increase in long-term bank borrowings(Decrease) in long-term bank borrowings

210.9

200.0

Increase in bonds(300.0)(150.0)(Decrease) in bonds–

0.2(46.9)(130.5)

Increase/(decrease) in liability to shareholder
Dividend paid

(121.5)(117.4)

Cash flow from financing activities

(2.8)

(4.8)

Effects of exchange rate changes on cash and cash equivalents

241.3

231.7

Total increase/(decrease) in cash and cash equivalents

1,065.3

1,306.6

Cash and cash equivalents at January 1

1,306.6

1,538.3

Cash and cash equivalents at December 31

57

Key figures information of Hilti Group

2009

2010

2011

2012

2013
Results (in CHF million / %)

3,845

3,930

3,998

4,205

4,340

200

213

216

197

220

Net sales
Depreciation and amortization

172

268

207

301

421

Operating result

136

167

119

223

354

Net income before tax

78

142

97

187

304

Net income

5.4

8.2

6.5

9.5

12.8

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

3.2

6.0

4.3

8.3

12.5

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

487

376

242

619

598

Cash flow from operating activities
Balance sheet (in CHF million / %)

2,396

2,304

2,212

2,328

2,523

55

54

51

51

53

1,135

1,172

997

1,005

872

795

817

1,159

1,223

1,368

283

209

212

188

209

1,101

1,162

1,141

1,123

1,101

Total equity
Total equity in % Total equity and liabilities
Total non-current liabilities
Total current liabilities
Capital expenditures on intangible assets and on
property, plant and equipment
Intangible assets and property, plant andequipment

414

434

521

528

504

2,811

2,697

2,706

2,905

3,158

Other non-current assets

4,326

4,293

4,368

4,556

4,763

Total assets

–

71

47

131

393

Dividend*

19,70920,305

21,84821,13921,456

Total current assets

Employees (as at December 31)* Proposal by the Board of Directors

58

2013 sales growth year on year

2012

2013

ChangeChangein CHF million

in CHF million

in CHF (%)

in local currencies (%)

2,152

2,178

1.2

(1.1)

Europe

859

867

0.9

2.8

North America

156

168

7.7

17.9

Latin America

561

603

7.6

17.3

Asia/Pacific

477

524

9.9

14.3

Eastern Europe / Middle East / Africa

4,205

4,340

3.2

4.5

Hilti Group59

Hilti.
Outperform.
Outlast.

Publisher
Hilti Corporation, Corporate Brand & Communication,
PO Box 333, 9494 Schaan, Liechtenstein
Editor-in-chief
Jessica Nowak
Editorial team / text / translation
Tom Allen, Nicole Ender, Priya Ender, Matthias Hassler,
Fiona Kwong, Lisa Liu, Jessica Nowak, Manuela Vinke,
Chris Larson, Christoph Renfer, CLS Communication,
Text Control
DesignHilti Corporation
Photography
Hilti: Uli Reitz, Reinhard Buhri, Phil Noller
Lend Lease: Zhang Xu
Saudi Oger: Houssam Cheaib
Printed by
BVD Druck + Verlag AG (Schaan, Liechtenstein)
Image processing
Miro Repro (Hamburg, Germany)
We wish to thank our customers and partners for theirkind support.
The Company Report is published in German andEnglish. Duplication, even in part, only with permissionof the publisher.
The complete Financial Report, the principles of­corporate governance, the organizational chart, the listof consolidated companies and information on theMartin Hilti Family Trust can be found on the Internet
at www.hilti.com.

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Hilti. Outperform. Outlast.
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