2017 | Vetropack Holding Ltd
Annual Report and Remuneration ReportCold-pressed, but hot stuff: high-quality,
natural olive oil is pure pleasure – foryour eyes and nose as well as your taste
buds. The warm climate and fertile
soil of the growing regions, coupled withthe manufacturers’ extensive experience,guarantee a full-bodied flavour.
Glass bottles in various different shapes
and colours provide protection and preserve
the popular oil’s unique character.
Whether it comes in traditional standard
containers or exclusive bottles tailor-madeto customers’ requirements, olive oil enriches
the diversity of life.

Content
At a Glance

Key Figures 2017

Board of Directors' Report
Interview06“2017 was a year of continuity
and new faces”

Impressions 2017
Report on Group Companies

05

10

12
Vetropack Ltd
Vetropack Austria GmbH
Vetropack Moravia Glass, a.s.
Vetropack Nemšová s.r.o.
Vetropack Straža d.d.
PrJSC Vetropack Gostomel
Vetropack Italia S.r.l.
Müller + Krempel Ltd
Vetroconsult Ltd

Vetropack Group

19
19
20
20
23
23
24
24
25
26

Financial Reporting –Vetropack Group

Consolidated Balance Sheet
Consolidated Income Statement
Consolidated Cash Flow Statement
Changes in Consolidated Shareholders' Equity
Consolidation Principles
Valuation Principles
Notes
Additional Information
Ownership Structure
Company Participations
Auditor's Report
Five Year Overview

28
29
30
31
33
34
38
49
54
55
57
60

Financial Reporting –Vetropack Holding Ltd

Balance Sheet
Income Statement
Notes
Auditor's Report
Five Year Overview

62
63
64
67
68

Corporate Governance70

Remuneration Report79

Organisation and Glassworks

Organisation
Vetropack Glassworks

84
90

At a Glance
Key Figures 2017

Net Sales
EBIT
Consolidated Profit
Cash Flow*
Investments
Production
Unit Sales
Exports (in unit terms)
Employees

CHF millions
CHF millions
CHF millions
CHF millions
CHF millions
1 000 metric tons
billions%
number

+/–

2016

2017

5.0%
30.0%
33.8%
20.2%
– 29.8%
0.6%
4.0%
–
0.4%

601.7
49.3
42.6
105.1
95.8
1 398
4.87
43.5
3 243

631.5
64.1
57.0
126.3
67.3
1 407
5.07
43.4
3 257

* operating cash flow before change of net working capital

Agenda2018
Annual General Assembly (Bülach)
20 April 2018, 11:15
Semi-Annual Report
28 August 20182019
Press Conference (Bülach)
19 March 2019, 10:15
Annual General Assembly (St-Prex)
24 April 2019, 11:15

The portraits used to illustrate this business report are of employees of the Vetropack Group. They are allunited and characterised by a love of glass, regardless of the country or site where they work. Year after year,
day after day, hour after hour, they produce glass packaging for customers in nine different standard coloursand numerous speciality colours, if so required. The variety of shapes and customised engravings on offer also
ensure that no wish goes unfulfilled.

Vetropack Group5

Board of Directors’ Report
Dear shareholders,
Vetropack Group enjoyed a successful 2017 marked by healthy growth and continued expansion
on its domestic and foreign markets. Sales of glass packaging broke through the 5 billion unit
barrier for the first time. With all plants working to full capacity and no significant stoppages in
production due to furnace repairs, performance improved substantially and the balance sheet
was strengthened.

Net and unit sales. Under favourable market conditions, Vetropack Group increased net sales by 5.0% to
CHF 631.5 million in the 2017 fiscal year (2016:
CHF 601.7 million). This equates to growth of 3.4% in
local currencies.
Unit sales of container glass rose by 4.0% to 5.07
billion units of glass packaging over the same period(2016: 4.87 billion units), bringing Vetropack Groupover the 5 billion unit threshold for the first time andmarking a new record for unit sales. This increase inunit sales was spread evenly between the domestic
markets on the one hand and the export business on
the other. As a result, the percentage of total unit sales
attributable to the domestic markets remained virtually constant at 56.6% (2016: 56.5%), with exports
accounting for 43.4% (2016: 43.5%).
Performance of the Vetropack companies. All
Vetropack companies contributed to the increase inrevenue and unit sales.

6

volume slightly as well as ramping up export activities
to neighbouring countries. This increase in volume wasdown to the Pöchlarn plant’s new, added-capacity
flint glass furnace commissioned in late 2016. This
extra capacity is enabling Vetropack Austria GmbHto further consolidate its strong market position both
domestically and internationally and to meet customer
needs in a more tailored way.
The Czech plant, Vetropack Moravia Glass, increased
its focus on making heavier and higher-quality glass
packaging during the 2017 reporting year, a sales
strategy that saw sales volumes dip but the added
value improve significantly.
The measures intended to boost productivity at the
Slovakian glassworks, Vetropack Nemšová, bore fruit,enabling the plant to expand its production volume bymore than 2% in 2017. This additional volume mainlytranslated into higher export sales.

On a challenging and fiercely competitive domestic
market, Vetropack’s Swiss glassworks managed tokeep volume steady while substantially increasing theamount it exported thanks to targeted sales activities.

Following a lengthy period in the doldrums, theeconomy in Croatia and its surrounding countries
has brightened slightly, benefiting the Croatian plant,
Vetropack Straža, which increased both unit sales
and revenue year on year.

Vetropack Austria, with its two glassworks in Pöchlarn
and Kremsmünster, succeeded in increasing domestic

A much more stable environment in Ukraine during thereporting year heralded the first signs of an economic

Board of Directors' Report

Claude R. Cornaz, CEO (left), Hans R. Rüegg, Chairman of the Board of Directors (right)

upturn and enabled Vetropack Gostomel to growsales significantly in both unit and net terms. Export
activities were also expanded strategically to over
twice the volume that they generated in the previous year. This positive trend, coupled with an unexpectedly stable Ukrainian currency – the hryvnia – in2017, pushed net sales in Swiss francs up by over 20%
year on year.

Vetropack’s largest. The subsidiary now handles
exports by its sister companies to Italy, enabling it toenhance relationships with local Italian customers andfurther extend its market presence. Boosted by these
additional deliveries from its sister companies, Vetropack Italia’s net sales jumped by over 25% comparedwith the previous year. Production capacity at thesubsidiary’s own plant was lower than last year due toscheduled maintenance to improve quality.

In 2017, Vetropack Italia assumed responsibility
for sales activities on its domestic market, which is

Board of Directors' Report7

Production volume on the rise. A total of 1.41 million
tonnes of saleable glass packaging were produced, asagainst 1.40 million tonnes in 2016.
Improvement in operating profitability. Vetropack
Group generated consolidated EBIT of CHF 64.1
million, up by 30.0% on the previous year (2016: CHF
49.3 million). At 10.1% of net sales, the EBIT margin
was well above the previous year’s figure of 8.2%.
This pleasing development reflects the positive market
environment, greater production capacity and stableproduction costs in the reporting year.
Growth in consolidated profit. The strong operating added value and exchange rate gains on eurodenominated credit balances drove the consolidated
annual profit up by an impressive 33.8% to CHF
57.0 million (2016: CHF 42.6 million), while the profit
margin climbed to 9.0% (2016: 7.1%).
Further improvement in liquidity situation. Cashflow from operating activities increased further during
the reporting year and amounted to CHF 124.7 million(2016: CHF 116.6 million), equating to 19.7% (2016:
19.4%) of net revenue. With only one furnace being
repaired in 2017, the cash outflow from investing
activities dropped from CHF 96.0 million in the previous year to CHF 64.7 million in this. All investments
were fully financed by the Group’s own funds. Free
cash flow increased from CHF 20.6 million in the previous year to CHF 60.0 million, pushing the Group’s
net liquidity up accordingly to CHF 68.3 million(2016: CHF 16.9 million).
Balance sheet structure. Consolidated total assets
grew significantly year on year to CHF 932.2 million

8

Board of Directors' Report(2016: CHF 840.7 million). Thanks to the positivechange in liquid assets and the increase in accounts
receivable due to the revenue trend, short-term assets
were up by 20.0% to CHF 407.9 million (2016: CHF
339.9 million). As most of the Group’s long-term assets
are denominated in Euros, the weaker Swiss franccaused this item to rise by CHF 23.5 million to CHF
524.3 million (2016: CHF 500.8 million).
Exchange rates also brought about a CHF 8.6 million
increase in liabilities to CHF 243.9 million (2016: CHF
235.3 million). Some long-term financing was reclassified as short-term, which will enable Vetropack Groupto repay some of its borrowings in 2018.
Shareholders’ equity increased to CHF 688.3 million(2016: CHF 605.4 million). With an equity ratioof 73.8% (2016: 72.0%), the balance sheet remains
very healthy.
At the end of the reporting year, Vetropack Group
employed a workforce of 3,257 people (31 December
2016: 3,243 people).
Investments. Vetropack Group invested a total of
CHF 67.3 million (2016: CHF 95.8 million) during
the reporting year. The focal points were scheduled
repairs to a flint glass furnace and the installationof a modern glass-blowing machine at the Ukrainian
plant, Vetropack Gostomel. More new glass-blowing
machines were also put in place at the Swiss, Czech
and Croatian plants in 2017 to increase the capacity
utilisation of the furnaces while giving greater flexibility in production. In Italy, meanwhile, in addition tosome significant infrastructure maintenance projects,

a new sorting system was installed on a production
line and equipped with powerful inspection machines.

be nominated for election as Chairman of the Boardof Directors at the Annual General Assembly in April.

Vetropack share. The stock market price of the
Vetropack bearer share was CHF 1,876.00 at theend of 2017 (31 December 2016: CHF 1,775.00).
Compared to the previous year, the share increasedin value by 5.7%.

Thank you. On behalf of the Board of Directors,
we would like to thank our employees for their outstanding commitment and hard work during 2017.
We would also like to thank our customers, suppliers,
business partners and shareholders for their support
and the confidence that they have shown in us.

Dividend. The Board of Directors will propose to
the Annual General Assembly on 20 April 2018that a gross dividend of CHF 45.00 per bearer share(2016: CHF 38.50) and CHF 9.00 per registeredshare (2016: CHF 7.70) be paid out.
Outlook for the 2018 fiscal year. As things stand,the glass packaging industry will continue to enjoy
a positive market environment in 2018. Consumption
and demand appear to be stabilising at a slightly
higher level. Vetropack Group will be able to utilise
all its capacity to the full and is anticipating a slightincrease in net sales. An operating result similar tothat achieved in 2017 is forecast in view of the higher
expenses incurred on the two major furnace products.
Consolidated profit, by contrast, looks set to come inbelow 2017’s level as the high exchange rate gains
seen in 2017 are unlikely to be repeated. As in thepast, however, the exchange rate trend could have asignificant impact on the Group’s results.

Hans R. Rüegg
Chairman of the Board of Directors

Claude R. Cornaz
CEO

Bülach, 14 March 2018

New CEO. The changing of the guard on the Management Board that was announced back in February 2017 was completed as planned: with effect from
1 January 2018, Claude R. Cornaz handed over thebaton as CEO to Johann Reiter, previously head of theBusiness Division Switzerland/Austria. Mr Cornaz will

Board of Directors' Report9

“2017 was a year of continuity andnew faces” – Claude Cornaz, CEO of Vetropack (until 31 December 2017)
Mr Cornaz, we’re having this conversation at a time
when you’re no longer CEO but not yet Chairmanof the Board of Directors of Vetropack Group. How
do you feel?
Great! I can look back on 18 years of being responsible
for Vetropack Group’s day-to-day operations as CEO
and forward to being involved in the long-term strategic
management of our group of companies. It’s a new challenge that I’m very excited about. And today, the dayof this interview, I’m a member of the Board of Directors – as I have been for the past 20 years, incidentally(smiles). But, as we know, the reason we’re having thisconversation is to look back on the 2017 fiscal year,
in other words the year in which I still held operational
responsibility for Vetropack in my role as CEO.
Agreed. So let’s talk about 2017. What has
made this year special? And what will make it stickin your mind?
This would take us back to the handover ... Being mylast year as CEO, it goes without saying that 2017
will stick very clearly in my mind. Rather than beinga year with major rough edges, it was another year
marked by positive continuity. I say “positive” because
we succeeded – entirely in line with expectations – inbringing about continuous improvement: we ramped

10Interview

up our production, increased unit sales and revenue,
and improved performance.
Thinking about internal events, I’ll remember 2017 asa year of new faces. Several changes in the make-upof the Management Board were completed or set inmotion. We spent a lot of time discussing and deliberating how many changes were sensible, but also easily
digestible, in what was, after all, quite a short space oftime. Looking back – even though we haven’t fully taken
the final step yet – I’m very happy and feel vindicated in
my belief that a strong group of companies with strong
local management teams can cope with a great deal.
So what were the individual changes?
As well as the CEO handover on 1 January 2018that we’ve already talked about, we welcomed a
new head of the Business Division Ukraine in February 2017: Pavel Prinko took over from the retiring
Andriy Girnyk, who had held the post for many years.
Someone else entering retirement is Gregor Gábel,who was replaced as head of the Business Division
Czech Republic/Slovakia by Boris Sluka with effectfrom 1 January of this year. Both men worked hard tofamiliarise themselves with their new remit even before
they took up their respective posts and have really got
to know their customers, management teams and staff,

but also the Group as a whole. The final step is now
under way with Johann Eggerth replacing the Group’s
new CEO Johann Reiter as head of the Business Division Switzerland/Austria on 1 March 2018.
A bit much all in one go?
I don’t think so. Firstly, we’re not doing everything “all in
one go”, but rather we’re spreading it out over more thana year. Secondly, it serves as confirmation as far as I’mconcerned that a robust organisation with an experienced management team and stable business operations can “digest” an awful lot. And thirdly, we planned
all the changes carefully and placed a lot of emphasison the right internal and external communications.
But you didn’t just focus on internal affairs and yourorganisational structure in 2017, did you?
No, of course not. One focal point, for instance, was thecontinued harmonisation of Group processes at Vetropack Italia, where we invested in the sorting systems on
a production line and brought the quality assurance process in-house – this had previously been taken care ofby external companies. Vetropack Italia has also been
responsible for all our Italian sales since the start of2017, in other words including deliveries from the sistercompanies, which also brought about major changes
to workflows. The second example I’d like to mention is
the successful certification of the St-Prex plant to FSSC
22000. This means that an important food-safety objective has now been achieved in this plant too. On thetechnical side of things – for my third example – we’ve
done a lot to optimise capacity and production. In the

Croatian plant, for instance, where we’ve installed a new
production machine, or with the work done to plan thetwo furnace overhauls in Nemšová and Kremsmünsterfor 2018. The two projects entail much more than actually replacing the furnace, because major investment isbeing made at both sites to improve capacity utilisationand optimise production flexibility. And it’s also worth
mentioning the opening of our group-wide training centre at the Pöchlarn plant, which hosted its first training
courses for production staff from several of the Group’s
plants during 2017.
What’s the current status of the hard glass project?
It’s now called “VIP glass”, which stands for “Vetropack Improved Performance Glass”. We successfully
began series production of hardened container glass
for a beer bottle in mid-2017. Before the initial market trials can be carried out, we still need to conduct
extensive tests and studies, which are unlikely to finish
before the end of 2018. We are planning to trial VIP
glass in a small market – “small” in the geographicalsense – in the first half of 2019.
Mr Cornaz, thank you very much for talking to us.
We wish you every success and a lot of satisfaction inyour new role.
Bülach, 14 March 2018

Interview

11

Impressions 2017
Successfully certified. A certified management
system for work safety is successfully introduced into
Vetropack's Austrian glassworks in Pöchlarn in
February. This certification is in accordance withOHSAS 180001:2007.
Lightweight in cuvée. In spring, PrJSC Vetropack
Gostomel wins over the jury of the Ukrainian
Packaging Stars with its “Bordolesse light 750 ml”
wine bottle from the standard range and wins thethirteenth star. The light weight and the glassworks’
new cuvée bottle colour get a particular mention.
New production machine. The production machineon one line in the Czech glassworks is changed atregular intervals.
Customer feedback. The Vetropack companies in
Croatia, Switzerland, Austria and in selected export
countries conduct a customer satisfaction survey inApril. As well as very positive feedback, some areas
for improvement are identified.
New online catalogue. The Vetropack Grouppublishes the new online catalogue. Searches can befiltered by product groups, shapes, colours, mouths,
sealing types and content quantities and detailed
information is available for each product.

12

Impressions

First appearance at GLASS PACK. Vetropack
Italia presents an ample range of glass containers
at GLASS PACK exhibition, which is held for the
first time in Pordenone, Italy. The fair is dedicated tocompanies that produce glass containers for the
food and beverage industry and also to the ones
involved in the packaging sector.

Excellent exports. In June, Vetropack Straža d.d.
wins the “Golden Key” as the best company thatexports to Serbia. The glassworks has been carryingout intensive market research in the neighbouring
country for sixteen years.
Successfully certified by TÜV. In July, Vetropack
Italia S.r.l. renews its certification and flawlessly meetsthe hygiene standards in the production of glass
containers for the food and beverage industry. The
audit has been carried out by TÜV Saarland inaccordance with the European EN 15593, a big step
forward to achieve ISO 22000.
Investments in technology. In the Swiss glassworks
in Saint-Prex, the forehearths’ fireproof material isreplaced on three lines. On one line, the production
machine, the lehr and the cold end are replaced

Impressions

13

by new, modern facilities. This allows for better exchanging of moulds with other Vetropack glassworks
and for lightweight wine bottles and similar glass containers to be produced using the press-blow-narrowneck method.
Training and development. With the support of
Vetroconsult AG, the new Group-wide training centre
in Pöchlarn for production employees starts its training
courses in September. The first national and international participants from the area of hot ends start

their training. The new glass-process engineering
apprenticeship is also created. The first apprentices
will start their training in September 2018.
Group appearance. At the SIMEI@drinktec in
Munich, Germany, the Vetropack Group primarily
presents its extensive standard wine range. Visitors
are able to taste wine from all Vetropack countries.
Particularly successful packaging solutions fromthe beer, soft drinks, mineral water and fruit juice
sectors are also presented.
Two new production machines. The flint glass
furnace in the Croatian glassworks receives two new
production machines – one of which has twelve
stations. This leads to better use of the melting
capacity and allows for a higher yearly productionof 5,600 tonnes of molten glass.

14

Impressions

Flint glass furnace repaired. In Gostomel, Ukraine,
the flint glass furnace is completely renovatedfollowing eleven years of continuous operation.
Repairs are also carried out at hot and cold ends toensure high-quality production over the next
few years. The new furnace is more energy-efficientand has a higher melting capacity.
Cooking with Friends of Glass. Friends of Glass,
together with Vetropack Austria GmbH and Austria
Glas Recycling launches a food-blogger event, where
people are invited to cook together using products
packaged in glass. Many interested parties take up
the offer and learn why glass is the healthiest
packaging for food and drink.
Investments in Italy. The second semester 2017
starts with the modernization of the Cold End areawith introducing a cutting-edge technology on one line
and completing automatization of the inspection andpackaging areas. The renewal includes also an extension to the working area and a brand new hall roof.
The Hot End area is now as well state of the art after acompleted major maintenance program of IS machines.

Impressions15

Craft beer booms. In spring and autumn, PrJSC
Vetropack Gostomel takes part in the local brewer
forum and presents the wide selection of products inthe standard beer bottle range. They are joined at
the event by 34 local craft-beer brewers.
Equal opportunities ensured. Vetropack Straža d.d.
signs the Diversity Charter, pledging the creation andpromotion of equal opportunities for its employees.
Protective storage. Another 6,500 square metres of
the warehouse in Rogatec, Slovenia, are now covered.
The storage of pallets with ready goods in the covered
warehouses helps the Croatian glassworks meet the
FSSC requirements.
Reward for untiring efforts. Vetropack Straža d.d.
wins the CSR Index Award in the large company

16

Impressions

category. This award is a tribute to the continuous
efforts of the glassworks to constantly take account of
its impact on the environment, society, employees andbusiness partners.
Local success. As the most successful and largest
company in north-west Croatia, the Croatian Chamberof Economy honours Vetropack Straža d.d. with the“Golden Marten” award.

Nine lubricating robots at work. By the end of 2017,
Vetropack has fitted out nine production machines in
Kremsmünster, Pöchlarn, Kyjov and Hum na Sutli withlubricating robots, which coat preforms with an oil
and graphite layer. Constant and equal lubrication isa basic requirement for ensuring a flawless moulding
process and the quality of the glass containers.
Successfully certified. Vetropack Nemšová s.r.o.
successfully passes in December the Re-Certification
Audit FSSC 22000 and the Surveillance Audit ISO
9001:2015. In the same month, the Czech glassworks
successfully passes the Surveillance Audit FSSC 22000.

Impressions

17

Report on Group Companies
Vetropack Ltd (Switzerland)

Vetropack Austria GmbH (Austria)

Vetropack Ltd made net earnings of CHF 78.3 million in
the 2017 fiscal year, up by 6.4% on the previous year. A
total of 456.4 million units of glass packaging were sold.
Exports made up 23.2% of total sales.

In the 2017 fiscal year, the net earnings of Vetropack
Austria GmbH amounted to EUR 177.3 million, an improvement of 3.1% on the previous year. Sales of glass
packaging increased to 1,631.0 million units. Exports
made up 45.9% of total sales.

In Switzerland, the demand for empty glass containers
was kept steady despite the increase in imports of glass
packaging already filled abroad.

+/–

2016

2017

Net sales in CHF millions

6.4%

73.6

78.3

Unit sales in millions

7.6%

424.2

456.4

21.2%

23.2%

8.5%

95 342 103 429

Exports in unit terms
Production in tons

In 2017 investments were made in more up-to-date
production lines. The plant in St-Prex is thus now better
placed to meet market requirements and offer new,innovative products. The loss of capacity that theglassworks suffered when operations were interrupted
for machine replacement and repair work was offset bybringing in additional deliveries from its sister plants.
Vetropack Ltd’s recycling activities again focused on
close cooperation with organisations, municipalities,
cities and authorities. The St-Prex plant was able toobtain sufficient used glass for its production purposes
despite high demand for this material from foreign
recycling companies.

Two main factors were responsible for this welcome
trend: sales growth in Austria itself, which translated inparticular into very high demand during a summer ofgood weather, and a highly successful working
relationship with key customers at home and abroad.
Both Austrian glassworks (Pöchlarn and Kremsmünster)began switching their forklift fleet to electric in 2017,
further reducing their carbon footprint. The same motive was behind a move to replace the compressed air
supply system at the Kremsmünster plant. Even at thisearly stage, the groundwork began for the scheduledinstallation of a new furnace in Kremsmünster, whichis slated for 2018. As well as the planning work, thebuilding infrastructure in and around the mould store
has already been revamped. Both Austrian plants alsopressed on with efforts to modernise their production
and testing facilities.

+/–

2016

2017

Net sales in EUR millions

3.1%

171.9

177.3

Unit sales in millions

6.0% 1 538.7 1 631.0

Exports in unit terms

45.2%

Production in tons

4.7% 330 248 345 814

1 EUR = CHF

Apart from the downtimes caused by the machine
replacement and repair work, production capacity
was fully utilised. At the end of the 2017 fiscal year,
Vetropack Ltd employed 206 people (2016: 199).

1.090

45.9%
1.111

Production capacity at both glassworks was fully
utilised. At the end of the 2017 fiscal year, Vetropack
Austria GmbH employed 680 people (2016: 686).

Report on Group Companies

19

Vetropack Moravia Glass, a.s. (Czech Republic)

Vetropack Nemšová s.r.o. (Slovakia)

In the 2017 fiscal year, Vetropack Moravia Glass, a.s.
generated net earnings of CZK 2,221.00 million, down
4.0% on the previous year. A total of 829.2 million unitsof glass packaging were sold. Whilst domestic sales
and exports to third parties declined, deliveries to sistercompanies increased by 35.4% in unit terms.

Net earnings at Vetropack Nemšová s.r.o. amounted to
EUR 56.3 million, while a total of 489.2 million units ofglass packaging were sold – both improvements on theprevious year. Exports made up 55.7% of total sales.

+/–

Following the move by the Czech National Bank to
depeg the koruna from the euro in April 2017 (the rate
having been fixed at CZK 27.00 to the euro up tothat point), the Czech economy began to grow, also
signalling potential market expansion. However, thispushed the koruna higher, putting the export activities of
Vetropack Moravia Glass, a.s. at a disadvantage.
Nevertheless, positive results were achieved by focusing
particularly on customers from whom a reasonable margin could be generated and on the necessary ongoingcost management.

+/–
Net sales in CZK millions– 4.0%

Unit sales in millions– 5.0%

20162017

2 313.8 2 221.0
873.0

829.2

Exports in unit terms

42.9%

42.8%

Production in tons

– 1.0% 220 060 217 943

100 CZK = CHF

4.033

At the end of the 2017 fiscal year, Vetropack Moravia
Glass, a.s. employed 462 people (2016: 458).

Report on Group Companies

2017

Net sales in EUR millions

3.1%

54.6

56.3

Unit sales in millions

3.8%

471.1

489.2

Exports in unit terms

48.7%

55.7%

Production in tons

2.1% 139 125 142 022

1 EUR = CHF

1.090

1.111

The faster-growing Slovakian economy in 2017 improved the country’s economic stability and boosted private
consumption, which increased demand amongst thecustomers of Vetropack Nemšová s.r.o. The company
successfully defended its strong market position by
concentrating primarily on manufacturing quality andcapacity utilisation on its production lines. In terms of
product groups, efforts focused on beer, spirits and wine,with the latter enjoying a noticeable increase in sales.
The equivalent figures for spirits and mineral water,
meanwhile, fell slightly.

4.225

Existing production capacity was fully utilised in 2017.
All plants were run highly efficiently and major progress
was made in using the new cullet recycling plant.

20

2016

The focus during the 2017 reporting year lay on
preparing the ground for modernising and expanding
production capacity in 2018. This represents a
sizeable investment.
At the end of the 2017 fiscal year, Vetropack Nemšová
s.r.o. employed 345 people (2016: 344).

Vetropack Straža d.d. (Croatia)

PrJSC Vetropack Gostomel (Ukraine)

In the 2017 fiscal year, Vetropack Straža d.d. achieved net earnings of HRK 842.0 million, up by 0.9% on
the previous year. A total of 1,132.8 million unitsof glass packaging were sold. Exports made up 74.2%
of total sales.

In the 2017 fiscal year, the net earnings of PrJSC
Vetropack Gostomel amounted to UAH 1,716.1 million,
up by 16.2% on the previous year. A total of 667.8
million units of glass packaging were sold. Exports as aproportion of total sales increased to 17.1%.

The economic upturn that Croatia has enjoyed since2015 continued during the reporting year and boosted
domestic demand. However, the effects of the regional
economic crisis that neighbouring countries suffered
for several years continued to be felt. Nevertheless,turnover in these markets remained on a par with theprevious year. Alongside Croatia itself, sales rose mostin Serbia, while matching the previous year’s levels in
the other export markets.
Vetropack Straža d.d. developed and produced
25 new kinds of glass packaging during the 2017
reporting year. All production capacity was fully
utilised and increased volumes were bought in fromother Group companies in order to meet demand.
Purchasing activities focused on obtaining new local
sources of cullet. Straža was supplied with 105,860
tonnes of the material in 2017, 14.0% more than in
2016. At the end of the 2017 fiscal year, VetropackStraža d.d. employed 575 people (2016: 565).

+/–

2016

2017
842.0

Net sales in HRK millions

0.9%

834.7

Unit sales in millions

3.4%

1 095.7 1 132.8

Exports in unit terms

75.5%

Production in tons

0.8% 259 460 261 445

100 HRK = CHF

14.471+/–
Net sales in UAH millions

16.2%

Unit sales in millions

4.4%

2016

2017

1 477.0 1 716.1
639.3

667.8

Exports in unit terms

9.2%

17.1%

Production in tons

– 2.6% 224 226 218 437

100 UAH = CHF

3.846

3.668

Ukraine continues to experience economic difficulties.
In addition, inflation remains high, the weakening
hryvnia is shrinking purchasing power and the conflictin the east of the country is still unresolved. Acrossthe board, the entire glass industry is offsetting lower
domestic demand by ramping up exports. PrJSC
Vetropack Gostomel succeeded in retaining its leading
position on the Ukrainian glass market in an
increasingly competitive environment.
Apart from the planned break in production for the
regular refurbishment of a furnace, all capacity was
fully utilised. At the end of the 2017 fiscal year,
PrJSC Vetropack Gostomel employed 635 people(2016: 636).

74.2%
14.887

Report on Group Companies

23

Vetropack Italia S.r.l. (Italy)

Müller + Krempel Ltd (Switzerland)

Vetropack Italia S.r.l. generated net earnings of EUR
82.3 million in the 2017 fiscal year, up by 25.3% on
the previous year. A total of 540.5 million units of glass
packaging were sold, 31.2% more than the previous
year. Exports amounted to 11.8% of total sales.
Vetropack Italia S.r.l. assumed responsibility for sales
activities on its home market in 2017.

In the 2017 fiscal year, the trading company
Müller + Krempel Ltd, which is based in Bülach andbelongs to Vetropack Group, had net earnings of
CHF 9.3 million, matching its performance last year
(2016: CHF 9.3 million). Of that sum, 75.2%
came from the retailing sector and 24.8% from thepharmaceutical and cosmetics sector. With a few
exceptions, Müller + Krempel Ltd only operates
in Switzerland.

The Italian glass market remained characterised byvery competitive behaviour by all players. As illustrated
above, however, Vetropack Italia S.r.l. successfully
held its own in this environment and benefited from its
strong relationships with both long-standing and newly
acquired customers.

+/–

2016

2017

Net sales in EUR millions

25.3%

65.7

82.3

Unit sales in millions

31.2%

412.0

540.5

Exports in unit terms

18.0%

11.8%

Production in tons

– 8.6% 129 425 118 254

1 EUR = CHF

1.090

The retailing sector increased its share of sales
slightly by expanding its online business and introducing new products. Its business involving primary
packaging for pharmaceuticals and cosmetics
continued to shrink slightly as glass is increasingly
being replaced by plastic as the primary packaging
material used in this sector. The surprisingly sharp
rise of the euro eroded margins somewhat.
At the end of the 2017 fiscal year, 11 people were
employed at Müller + Krempel Ltd (2016: 11).

1.111
2016

At the end of the 2017 fiscal year, Vetropack Italia
S.r.l. employed 270 people (2016: 269).

24

Report on Group Companies

2017

Net sales by Business Unit
Retail Trade

73.5%

75.2%

Pharmaceutical & Cosmetics

26.5%

24.8%

Vetroconsult Ltd (Switzerland)
Vetroconsult Ltd, Bülach, covers technology,
production and informatics, as well as dealing withthe purchasing of all capital and industrial goods.
These services are provided for all Vetropack
companies.

In the field of informatics, meanwhile, the focus lay
on completing the integration of the Italian subsidiary
Vetropack Italia S.r.l. into the Group-wide IT systems
as well as working on traceability and a new online
catalogue and product information system.

As well as replacing the glass production lines in
the Swiss glassworks in St-Prex, the Czech plant inKyjov and its Croatian counterpart in Hum na Sutli,
the main activities in the field of technology in2017 also included scheduled repairs to a flint glass
furnace at the Ukrainian plant in Gostomel. With
Vetroconsult’s support, the new Group-wide training
centre for production employees at the Austrian
glassworks in Pöchlarn launched its training courses
in the third quarter of the year.

At the end of 2017, Vetroconsult Ltd employed
33 people (2016: 34).

Work in the field of production focused on providing
production technology support and integrating
Vetropack Italia S.r.l. into Vetropack Group in order tomeet the Group-wide quality and productivity criteria.
Procurement activities were targeted on the Groupwide optimisation of how industrial goods arepurchased, especially energy, raw materials, moulds
and packaging, alongside obtaining capital goods
for Vetropack’s various plants.

Report on Group Companies

25

Sales by Group Company 2017
(total 5.07 billion units)

0

5

10

15

20

25

0

5

10

15

20

25

8% Vetropack (CH)
29% Vetropack Austria (AT)
11% Vetropack Moravia Glass (CZ)
7% Vetropack Nemšová (SK)22% Vetropack Straža (HR)
12% Vetropack Gostomel (UA)11%8% Vetropack Italia(CH) (IT)
29% Vetropack Austria (AT)30
11% Vetropack Moravia Glass (CZ)
7% Vetropack Nemšová (SK)22% Vetropack Straža (HR)
12% Vetropack Gostomel (UA)11% Vetropack Italia (IT)30

Sales by Markets 2017
(total 5.07 billion units)
57% Domestic Sales
25% Exports Western Europe
9% Exports Eastern Europe
9% Vetropack
Exports South-East
83%(CH) Europe
0

10

20

30

40

50

Cullet Ratio for Glass Production 2017(by Group Company)
0
0

1020

20 40

0

20

0

20

30

60 40

8050

40

60

80

40

60

80

26

0

10

20

30

40

50

60

70

0

10

20

30

40

50

60

70

0

10

20

30

40

50

60

70

0

10

20

30

40

50

0

10

20

30

40

50

0

10

20

30

40

50

Vetropack Group

60% Vetropack Moravia Glass (CZ)
57%
Domestic Sales
65% Vetropack
Nemšová (SK)25%
Exports Western
45% VetropackStražaEurope(HR)
9% Vetropack
Exports Eastern
83%(CH) Europe
39%
Gostomel(UA)
9% Vetropack
Exports South-East
Europe68%
Austria(AT)
48%
Italia (IT)60 60% Vetropack Moravia Glass (CZ)
100

83% Vetropack Nemšová
(CH)
65%
(SK)
68% Vetropack Straža
Austria (HR)(AT)
45%
60% Vetropack Gostomel
Moravia Glass
39%(UA) (CZ)
65% Vetropack Nemšová
48%
Italia (IT) (SK)
45% Vetropack Straža (HR)100
39% Vetropack Gostomel (UA)48% Vetropack Italia (IT)

Vetropack is one of Europe's leading
manufacturers of glass packaging
for the food and beverage industry0with group managementin 20
Bülach 40(Switzerland). It runs state-of-the-art
production facilities, as well as sales
and distribution centres in Switzer02040
land, Austria, the Czech
Republic,
Slovakia, Croatia, Ukraine and Italy.
As a customer orientated company,
Vetropack guarantees innovative
packaging solutions, reliable productquality and on-time deliveries.
Tailor-made glass from Vetropack
0
10
20
30
gives a basis for a successful
market performance of our customers'
products.
0

10

20

30

60

80

60

80

40

50

60

40

50

60

100

Cullet Ratio for Glass Production 2017
(by Colours)

Primary Raw Materials Ratio 2017(excluding cullet)

60 68% Vetropack Austria (AT)

Vetropack Group

79% Feuille Morte
67% Green/Vetrogreen
61% Olive/Cuvée
61% Primeur
48% Amber
79% Flint
Feuille Morte
43%
67% Ø
Green/Vetrogreen
53%
all colours
61% Olive/Cuvée
80
79% Primeur
Feuille Morte
61%
67% Amber
Green/Vetrogreen
48%
61% Flint
Olive/Cuvée
43%
61% Ø
Primeur53%
all colours
48% Amber
80
43% Flint
53% Ø all colours
80

53% Quartz sand
17% Soda
10% Dolomite
10% Lime
8% Feldspar
53%
Quartzcomponents
sand
2% Minor
17% Soda
60
10% Dolomite
53%
10% Quartz
Lime sand17%
Soda
8% Feldspar
10%2% Dolomite
Minor components
10% Lime
60
8% Feldspar
2% Minor components
60

0

10

20

30

40

5

0

10

20

30

40

5

Financial Reporting – Vetropack Group
Consolidated Balance Sheet
CHF millions
ASSETS
Short-term Assets
Liquid funds
Marketable securities
Accounts receivables
Other short-term receivables
Inventories
Accruals
Subtotal Short-term Assets
Long-term Assets
Tangible assets
Financial assets
Intangible assets
Subtotal Long-term Assets
Total Assets
LIABILITIES
Liabilities
Short-term liabilities– Accounts payables– Short-term financial debts– Other short-term liabilities– Deferrals– Short-term provisions
Total Short-term Liabilities
Long-term liabilities– Long-term financial debts– Other long-term liabilities– Long-term provisions
Total Long-term Liabilities
Subtotal Liabilities
Shareholders' Equity
Share capital
Capital reserves
Retained earnings
Consolidated profit
Subtotal Shareholders' Equity excl. Minorities
Minority interests
Subtotal Shareholders' Equity
Total Liabilities

28

Financial Reporting

Note

31.12.2016

31.12.2017

1
2
3
4
5

89.7
0.8
105.4
13.1
128.1
2.8
339.9

133.6
10.9
117.0
10.4
130.9
5.1
407.9

459.5
29.0
12.3
500.8
840.7

499.0
17.5
7.8
524.3
932.2

80.0
0.5
18.9
19.6
3.0
122.0

78.4
12.4
21.9
21.1
3.7
137.5

74.2
1.8
37.3
113.3
235.3

63.9
1.6
40.9
106.4
243.9

19.8
0.3
542.6
42.6
605.3
0.1
605.4
840.7

19.8
0.3
610.7
57.0
687.8
0.5
688.3
932.2

6
7
8

9
10
11
12

13
14

15

16

Consolidated Income Statement
CHF millions

Note

2016

2017

Net Sales from Goods and Services
Other operating income
Changes in inventories

17
18

601.7
12.0
– 0.1

631.5
10.8
– 7.7

Material costs
Energy costs
Personnel expenses
Depreciation/Impairments of tangible assets
Depreciation/Impairments of intangible assets
Other operating expenses

19
20
6
8
21

– 100.6– 90.0– 142.1– 54.2– 7.9– 169.5– 100.8– 88.9– 150.1– 61.5– 6.2– 163.0

Operating Result (EBIT)
Financial result

22

49.3
1.5

64.1
7.5

Ordinary Result
Non-operating result*

23

50.8
0.7

71.6
0.9

24

51.5
– 8.7

72.5
– 15.1

42.8
– 0.2
42.6

57.4
– 0.4
57.0

107.5
21.5
107.5
21.5

143.9
28.8
143.9
28.8

Consolidated Profit before Income Taxes
Income taxes
Consolidated Profit before Minority Interests
Minority interests from Group companies
Consolidated profit
Earnings per Share
Undiluted earnings per bearer share in CHF
Undiluted earnings per registered share in CHF
Diluted earnings per bearer share in CHF
Diluted earnings per registered share in CHF

25* This includes depreciation of CHF 1.0 million on non-operating real estate and buildings (2016: CHF 1.1 million).

Financial Reporting29

Consolidated Cash Flow Statement
CHF millions

2016

2017

Consolidated profit incl. minorities+ Asset depreciation+/– Loss/gain from applying/removing impairments+/– Increase/decrease in provisions+/– Loss/gain from disposals of tangible assets+/– Other changes in non-cash items= Operating Cash Flow before Change of Net Working Capital

42.8
62.9
0.3
– 1.8
1.1
– 0.2
105.1

57.4
68.4
0.3
0.1
0.4
– 0.3
126.3

+/– Decrease/increase in accounts receivables+/– Decrease/increase in inventories+/– Decrease/increase in other receivables and accruals+/– Increase/decrease in accounts payables+/– Increase/decrease in other short-term liabilities and deferrals= Cash Inflow/Drain from Operating Activities

– 4.1
0.2
1.5
15.0
– 1.1
116.6

– 2.2
6.2
– 0.2
– 7.4
2.0
124.7

– 81.40.3– 11.4
0.0
– 3.0
– 0.5
– 96.0– 65.5
0.4
0.0
2.9
– 1.8
– 0.7
– 64.7– 15.3– 19.543.5
8.7– 15.3– 0.4– 2.1– 17.8Foreign Exchange Differentials

– 1.3

1.7

Changes in Liquid Funds

28.0

43.9

Liquid funds as per 1.1.
Liquid funds as per 31.12.
Changes in Liquid Funds

61.7
89.7
28.0

89.7
133.6
43.9

Inflows from interest
Outflows for interest
Outflows for income taxes

1.6
– 0.4
– 7.8

0.5
– 0.3
– 17.3– Outflows for investments in tangible assets+ Inflows for sales of tangible assets– Outflows for investments in financial assets– Inflows for sales of financial assets– Outflows for investments in intangible assets+/– Changes in marketable securities= Cash Inflow/Drain from Investment Activities– Dividend distribution to shareholders+/– Formation/repayment of short-term financial debts+/– Formation/repayment of long-term financial debts= Cash Inflow/Drain from Financing Activities

30

Financial Reporting

Note

26

Changes in Consolidated Shareholders' Equity
CHF millions

Shareholders' Equity as per 1.1.2015
Accounting goodwill
Consolidated profit
Foreign exchange differentials
Dividends
Shareholders' Equity as per 31.12.2015
Consolidated profit
Foreign exchange differentials
Dividends
Shareholders' Equity as per 31.12.2016
Consolidated profit
Foreign exchange differentials
Dividends
Shareholders' Equity as per 31.12.2017

Share Capital

Capital Reserves(Agio)

Retained
Earnings

Subtotal
excl. Minoritiy
Share Interests

Minority
ShareInterests

Subtotalincl. Minoritiy
Share Interests

19.8

0.3

611.7
– 16.842.1– 58.0– 15.3
563.7
42.6
– 5.8
– 15.3
585.2
57.0
40.8
– 15.3667.7

631.8– 16.842.1– 58.0– 15.3
583.8
42.6
– 5.8
– 15.3
605.3
57.0
40.8
– 15.3
687.8

1.0

632.8
– 16.841.4– 58.4– 15.3
583.7
42.8
– 5.8
– 15.3
605.4
57.4
40.8
– 15.3
688.3

19.8

0.3

19.8

0.3

19.8

0.3

– 0.7
– 0.4
– 0.1
0.2

0.1
0.4

0.5

The legally non-distributable reserves of Vetropack Holding Ltd amount to CHF 4.0 million (2016: CHF 4.0 million).
Vetropack Holding Ltd did not hold own shares from 2015 to 2017.

Financial Reporting31

Consolidation Principles
Basis for the Consolidated Financial Statement
The consolidation of the Group's financial statements provides an actual picture of the Group's assets, financial
and income situation, and regards therefore the Vetropack Group as a single business entity.
Consolidated Group statements are based on financial statements for the year and are prepared in accordance withapplicable national laws of each of the companies concerned. They are then restated in accordance with internalGroup valuation and formatting principles. Financial statements conform to the principles of Swiss GAAP FER in
addition to accounting prescriptions set out in regulations for companies listed on the Swiss Stock Exchange.
In accordance with the FER framework 30, changes to estimates are permitted and result in the book value of anasset or liability being corrected. These changes can arise from new developments or new information. Vetropack
Group has applied FER framework 30 to tangible assets in the moulds segment in the 2017 fiscal year. These werepreviously posted as costs under other operating expenses. After an in-depth analysis of moulds stocks, it was ascertained that the maximum service life of the moulds is now two years rather than 12 months at most as was previously
the case. Newly acquired moulds will therefore be capitalised from 2017 onwards and will be depreciated over a
maximum of two years. The general costs of moulds will also continue to be posted directly to expenses. CHF 10.9
million was invested in moulds in the 2017 financial year (previously posted to expenses) and the depreciation ofmoulds amounted to CHF 2.3 million.

Consolidation Scope
Consolidated Group statements include Vetropack Holding Ltd, as well as all domestic and foreign subsidiaries inwhich Vetropack Holding Ltd has a direct or indirect interest of more than 50%. In such cases, "Full Consolidation
Method" is applied, i.e. assets, liabilities, expenses and incomes of consolidated companies are consolidated 100%,
whereby all intra-Group transactions are eliminated (accounts receivables and payables, incomes and expenses).
Minority interests are posted separately in the balance sheet and income statement.
Holdings between 20% and 50% are included in Group accounts, and are carried out according to the "Equity Method". The Group's percentage share of net assets is reported in the balance sheet under Financial Assets. Percentage
share of net income is stated in the Consolidated Income Statement.
Holdings below 20% are posted in the consolidated balance sheet at acquisition cost less any necessary
value adjustments.
An overview of companies within Vetropack Group and methods used to consolidate them into Group financial
statements is found on page 55.

Capital Consolidation
Capital consolidation is carried out according to the "Purchase Method", whereby acquisition cost of an acquiredcompany is charged against its net assets according to Group principles at the time of purchase. Any goodwill paid
at the time of acquisition is charged directly to Group's reserves in acquisition year.

Financial Reporting33

Foreign Exchange (FX) Differentials
Financial statements produced by foreign companies within the Group in their respective currencies are converted
into Swiss francs as follows:– Balance sheet figures according to the exchange rate valid at year end.
– Income statement figures according to the average annual exchange rate.
– Cash flow statement figures according to average and year end rates respectively.
Exchange rate differentials resulting from such foreign currency conversions are charged to profit reserves. Exchange
rate differentials caused by converting transactions and balance sheet items in foreign currencies are recorded in thebooks of the respective Group company. Foreign exchange rate effects on long-term intra-Group loans with the natureof shareholders’ equity are recorded in the consolidated shareholders’ equity, not affecting net income.

EUR
CZK
HRK
UAH

Average Exchange Rate
2016
2017
1.09030
1.111290.04033
0.042250.144710.14887
0.03846
0.03668

Year End Exchange Rate
2016
2017
1.07390
1.170200.03974
0.04583
0.14206
0.157280.03756
0.03482

Valuation Principles
Financial statements for individual companies are consolidated into the Group's financial statements, and valuedin accordance with uniform principles across the Group. The most important valuation methods for the individual
balance sheet positions are as follows:

Liquid Assets
Liquid assets include cash, current account balances at banks and other financial institutions, as well as fixed term
deposits with maturity of no more than 90 days. Liquid assets are valued at their nominal rate.

Marketable Securities
Short-term securities include marketable and easily realisable securities investments and term deposits with a maturityof three to twelve months. Securities are valued at market prices. Term deposits are valued at their nominal rate.

Receivables
Receivables are valued at their nominal rate. Value adjustments are carried out for identifiable individual risks.
Experienced based country-specific value adjustments (2% to 15%) are applied to other risks.

34

Financial ReportingInventories
Inventories are valued at either their acquisition or manufacturing costs. However, if the market price is lower, thisfigure is applied instead. Manufacturing costs include the cost of raw materials, individual production costs anda portion of allocated general overhead costs. The values used for items whose marketability is limited, are partiallyor entirely corrected according to their recognisable risks of loss. Inventories of intra-Group distribution are notassigned an intermediate profit. Discounts are recorded as reductions in the cost of goods.

Tangible Assets
Tangible assets are valued at their acquisition or manufacturing cost less any applicable depreciation. Depreciation
is linear over the expected useful life of the asset, taking residual values into account. The relevant depreciation
periods are as follows:– Buildings– Production facilities– Machinery and furnaces– Vehicles– Office and other equipment

15 – 50 years
10 – 20 years
5 – 20 years
5 – 7 years
5 – 10 years

Assets of insubstantial value are directly expensed in the income statement upon acquisition. Intermediate profits
arising from intra-Group asset transfers are eliminated.

Leasing
Leased assets (financial leases) are reported as assets in the balance sheet. At the beginning of the contract, leasing
payments are established by applying either the leased goods' purchase value or market value respectively. Alternatively cash value is applied if lower. The corresponding liability toward the leasing grantor is carried as liabilities
from financial leasing. Cost from rental agreements and operational leasing are recorded in the income statement.

Financial Assets
Non-consolidated participations are recorded in the balance sheet at their proportionate equity or purchasevalues. Loans and marketable securities are recorded at their nominal values or purchase prices respectively less any
applicable value adjustments.

Intangible Assets
Intangible assets include brands, patents, licences, software and other intangibles. Acquired intangible assets arereported in the balance sheet at acquisition cost and are subject to linear amortisation over their estimated useful life.
If it is impossible to determine the useful life of an intangible asset, it is generally amortised over a period of five years.
– Licences, patents, brands– Software– Other intangible assets

5 years3 – 5 years
5 years

Assets of insubstantial value are directly expensed in the income statement upon acquisition.

Financial Reporting35

Asset Impairment
If there is evidence that the value of an asset has been impaired, an "Impairment Test" is carried out. If the test reveals
that there is indeed an impairment of assets, the book value is reduced with a net income effect on the attainable value.

Liabilities
Short-term a.k.a. current liabilities are debts that are repayable within one year. When the due dates are beyond
one year they are posted in the balance sheet under long-term liabilities. Liabilities (incl. financial debts) are recorded in the balance sheet at nominal value.

Provisions
Provisions are formed when a legal or de facto obligation from past events has arisen. The outflow of funds tomeet this obligation is likely, and provisionally it is possible to estimate its' amount reliably. The future outflow of funds
is reported in the balance sheet at nominal value. If material, it is discounted as per the balance sheet date.

Taxes
All tax obligations, irrespective of their due dates, are set aside. Ongoing income taxes are calculated on the basisof taxable income and reported in the balance sheet under Liabilities. Deferred taxes are calculated based on
all temporary differences between the values from the tax statement and the operating values. Tax relevant losses
carried forward are only taken into account if it seems possible to offset them against income. The country specific tax rates are applied when calculating deferred taxes. Deferred tax assets are recorded in the balance sheet as
financial assets and deferred tax liabilities as long-term provisions.

Derivative Financial Instruments
Derivative financial instruments are valued for trading and hedging purposes at their current value. Balance sheet
relevant derivatives are reported under Other short-term receivables or Other short-term liabilities. Valuation
changes are reported in the income statement.

36

Financial Reporting

Notes
1. Marketable Securities
This position includes bonds in the amount of CHF 9.4 million (EUR 8.0 million) measured at market value, whichwere repaid early in February 2018.
2. Accounts Receivables
CHF millions
Gross receivables
Value adjustments
Net receivables

31.12.2016

31.12.2017

107.7
– 2.3
105.4

117.9
– 0.9
117.0

31.12.2016

31.12.2017

3.1
1.7
8.3
13.1

3.2
2.6
4.6
10.4

31.12.2016

31.12.2017

8.6
41.0
2.7
115.5
0.3
– 40.0
128.1

10.9
44.2
3.0
117.4
0.3
– 44.9130.931.12.2016

31.12.2017

1.1
1.7
2.8

3.3
1.8
5.1

3. Other Short-Term Receivables
CHF millions
VAT (value added tax) credit
Withholding tax credit
Other short-term receivables
Total

4. Inventories
CHF millions
Raw materials
Materials and supplies
Work-in-progress
Finished goods, merchandise
Advance payments
Value adjustments
Total

5. Accruals
CHF millions
Ongoing income tax (credit)
Other active accruals
Total

38

Financial Reporting6. Tangible Assets
CHF millions
Real Estate& Buildings
NonOperating

Acquisition Value
As per 1.1.2016
Additions
Disposals
Reclassifications
Foreign exchange differentials
As per 1.1.2017
Additions
Disposals
Reclassifications
Foreign exchange differentials
As per 31.12.2017
Accumulated Depreciation
As per 1.1.2016
Ordinary depreciation 2016
Disposals
Reclassifications
Asset impairments*
Foreign exchange differentials
As per 1.1.2017
Ordinary depreciation 2017
Disposals
Reclassifications
Asset impairments*
Foreign exchange differentials
As per 31.12.2017
Book Value
As per 1.1.2017
As per 31.12.2017

81.5
0.1
– 0.1
– 6.6

Furnaces
Real Estate
Equipment& Buildings
Operating Prod. Facilities
MouldsOther
Tangible
AssetsAdvance
Payments for
Assets Under
Construction

Total

12.2
21.3

1 090.3
81.4– 41.6
1.6– 7.3
1 124.4
65.5– 20.50.0
88.9
1 258.3

262.5
7.1
– 0.5
9.1
– 1.6
276.6
4.0
– 0.1
0.4
21.8
302.7

700.2
49.3
– 39.0
25.1
– 5.6
730.0
35.3
– 18.9
16.8
63.4
826.6

33.9
3.6
– 2.0
0.9
– 0.2
36.2
2.2
– 1.5
0.5
2.5
39.9

150.8
7.5
– 0.5
3.6

26.6
3.0
– 1.9

– 0.7
160.7
7.7
– 0.1

444.2
43.4
– 37.8
1.5
0.3
– 3.5
448.1
50.2
– 18.3

– 0.2
27.5
3.3
– 1.4

29.6

11.9
180.2

0.3
37.9
518.2

1.9
31.3

0.0

652.6
55.0
– 40.2
1.6
0.3
– 4.4
664.9
62.2
– 19.8
0.0
0.3
51.7
759.3

46.3
**45.8115.9**122.5

281.9
308.4

8.7
8.6

6.7
13.7

459.5
499.0

74.9
0.2
0.1
0.2
75.4

31.0
1.1
– 3.5

28.6
1.0

– 26.90.1
6.7
23.8– 17.8
1.0
13.7

0.0

0.0

* The asset impairments relate to adjustments to the residual values of production facilities.
** This includes vacant real estate plots valued at CHF 3.7 million (2016: CHF 3.4 million).
As per 31.12.2017 payments on assets under construction amounted to CHF 4.6 million (2016: CHF 1.0 million).

Financial Reporting39

7. Financial Assets
CHF millions
Employer's contribution reserves
Assets from pension funds
Deferred taxes
Marketable securities
Participations in associated companies
Other financial investments
Total

Note

31.12.2016

31.12.2017

31

11.5
1.3
3.2
1.1
0.5
11.4
29.0

11.6
1.4
2.4
0.0
0.5
1.6
17.5

24

8. Intangible Assets
CHF millions

Acquisition Value
As per 1.1.2016
Additions
Disposals
Reclassifications
Foreign exchange differentials
As per 1.1.2017
Additions
Disposals
Reclassifications
Foreign exchange differentials
As per 31.12.2017
Accumulated Amortisation
As per 1.1.2016
Ordinary amortisation 2016
Disposals
Reclassifications
Asset impairments
Foreign exchange differentials
As per 1.1.2017
Ordinary amortisation 2017
Disposals
Reclassifications
Asset impairments
Foreign exchange differentials
As per 31.12.2017
Book Value as per 1.1.2017
Book Value as per 31.12.201740

Financial Reporting

Software

Software in
Development

Other
Intangible
Assets

Total

41.1
1.7
– 0.2
1.3

3.1
1.2

1.1
0.1

45.3
3.0
– 0.2
0.0
0.0
48.1
1.8
– 0.1
0.0
0.2
50.0

43.9
1.1
– 0.1
1.9
0.1
46.9

– 1.3
3.0
0.7

1.2

– 1.9
1.8

0.1
1.3

27.0
7.9
– 0.2

0.0

1.1

34.7
6.2
– 0.1
0.1

0.0

1.1

0.1
41.0

0.0

0.2
1.2

28.1
7.9
– 0.2
0.0
0.0
0.0
35.8
6.2
– 0.1
0.0
0.0
0.3
42.2

9.2
5.9

3.0
1.8

0.1
0.1

12.3
7.8

– 0.1

As part of ongoing group-wide IT projects, internal labour of CHF 0.1 million was capitalised (2016: CHF 0.9 million)in the “Software in development” category. There were no licences, patents or brands in 2016 or 2017.
The acquisition in Italy gave rise to goodwill in the amount of CHF 16.8 million in the 2015 financial year,
which was charged directly to the shareholders' equity at the time of the acquisition. Were this to have been
capitalised and amortised across a lifespan of five years, the shareholders’ equity would be CHF 696.9 million
as at 31 December 2017 (2016: CHF 617.4 million) and the 2017 consolidated profit would be CHF 53.6 million(2016: CHF 39.2 million). Amortisation in the 2017 reporting year would have amounted to CHF 3.4 million(2016: CHF 3.4 million). The remaining book value of the goodwill would amount to CHF 8.6 million as at
31 December 2017 (2016: CHF 12.0 million). There were no asset impairments in either the reporting year or
the previous year.
9. Short-Term Financial Debts
CHF millions

31.12.2016

31.12.2017

Bank credits
Total

0.5
0.5

12.4
12.4

The item includes mortgages in the amount of CHF 12.3 million, which are to be repaid within the first six
months of 2018.
10. Other Short-Term Liabilities
CHF millions
Prepaid recycling fees
Advance payments
Liabilities to employees
Other short-term liabilities
Total

31.12.2016

31.12.2017

4.2
0.7
6.2
7.8
18.9

4.0
2.1
5.2
10.6
21.9

31.12.2016

31.12.2017

5.4
6.5
7.7
19.6

4.8
6.8
9.5
21.1

11. Deferrals
CHF millions
Ongoing liable income taxes
Unclaimed vacations and overtime compensations
Other deferrals
Total

Financial Reporting41

12. Short-Term Provisions
CHF millions

As per 1.1.2016
Reclassifications
Formations
Liquidations
Utilisations
Foreign exchange differentials
As per 1.1.2017
Reclassifications
Formations
Liquidations
Utilisations
Foreign exchange differentials
As per 31.12.2017

Service
Anniversaries

Legal
Proceedings

Guarantee
Warranty

Other

Total

0.5

0.2

0.2

1.3

0.8
– 0.1
– 0.1

0.7
– 0.1
– 0.4

0.2

0.8

1.5

0.1
– 0.1
– 0.1

1.7

– 0.1

0.4

0.1

0.5
– 0.3
– 0.4
0.1
0.7

– 0.8
0.1
2.5

2.2
0.0
1.7
– 0.2
– 0.7
0.0
3.0
0.0
2.3
– 0.4
– 1.4
0.2
3.7

31.12.2016

31.12.2017

21.0
51.6
1.6
74.2

59.9
4.0
0.0
63.9

0.2
– 0.2
0.5

13. Long-Term Financial Debts
This category comprises loans that fall due for repayment as follows:
CHF millions
Residual period– 1 to 2 years*– 3 to 5 years**– > 5 years
Total* in CHF; interest rate between 0.65% to 1.995% (2016: 0.5% to 1.95%)** in CHF; interest rate between 0.85% to 1.85% (2016: 0.7% to 1.995%)
This item includes a bank loan of EUR 40.0 million, which has an interest rate of 0.7% and runs until 30 June 2019.

42

Financial Reporting14. Long-Term Provisions
CHF millions

As per 1.1.2016
Reclassifications
Formations
Liquidations
Utilisations
Foreign exchange differentials
As per 1.1.2017
Reclassifications
Formations
Liquidations
Utilisations
Foreign exchange differentials
As per 31.12.2017

Deferred
Tax Liabilities

Service
Anniversaires

Pensions

Total

20.1

5.6

13.7

1.8
– 2.9

0.3
– 0.1
– 1.5

1.7
– 0.2
– 1.1

– 0.1
18.9

4.3

14.1

2.3
– 1.4

0.6
– 0.5

1.6
21.4

0.3
4.7

1.0
– 0.1
– 1.3
1.1
14.8

39.4
0.0
3.8
– 3.2
– 2.6
– 0.1
37.3
0.0
3.9
– 2.0
– 1.3
3.0
40.9

Deferred Tax Liabilities: cp. note no. 24
Service Anniversaries: Provisions are formed in respect to remuneration for long service to the company as
defined in the Employment Regulations. These provisions, which take into account country-specific corrective factors
for the staff turnover, were discounted between 0% to 16% (2016: 0% to 16%) as per balance sheet date.
15. Share Capital
The share capital is structured as follows:
CHF millions
220 480 Bearer Shares (2016: 220 480)
nominal value CHF 50.00 (issued and paid in full)
880 000 Registered shares (2016: 880 000)
nominal value CHF 10.00 (issued and paid in full)
Total

31.12.2016

31.12.2017

11.0

11.0

8.8
19.8

8.8
19.8

The bearer shares (Security no. 622 761) are listed on the SIX Swiss Exchange, Swiss Reporting Standard,with a year end closing price of CHF 1,876.00 (2016: CHF 1,775.00). Their total capitalisation equalled
CHF 743.8 million (2016: CHF 703.8 million). Each registered and bearer share holds one voting right.
Major Shareholders with > 3% of Voting Rights
Cornaz AG-Holding
Elisabeth Leon-Cornaz
La Licorne Holding SA

31.12.2016
67.6%
5.2%
4.6%

31.12.2017
67.6%
5.2%
4.6%

Shareholder's agreements exist between these and other persons and/or their shareholders (cp. page 70).

Financial Reporting43

16. Minority Interests
The proportion of shareholders' equity held by minority shareholders of PrJSC Vetropack Gostomel equals 14.7%(2016: 14.7%).

17. Segment Reporting
The segment reporting used at the top management level for corporate management has just one significant
segment ("Glass packaging"). The secondary segment "Speciality glass" comprises only trade revenue in Switzerland(Müller + Krempel Ltd).
Net Sales per Country
CHF millions

ChangePrevious year

ChangeCurrent year

2016

2017

– 5.5%– 2.2%
0.0%
8.8%
4.5%
– 6.3%
165.7%
1.1%
8.0%– 0.7%
3.4%– 12.8%
3.3%
1.6%
20.7%
27.0%
0.0%
5.0%

69.8
172.3
70.9
116.4
44.5
47.3
71.2
9.3
601.7

69.3
178.2
61.8
120.2
45.2
57.1
90.4
9.3
631.5

Glass Packaging– Switzerland– Austria– Czech Republic– Croatia– Slovakia– Ukraine– Italy
Specialty Glass (Switzerland)
Total

Vetropack Group does not publish details on its segment results, as there is a significant risk that this could cause
competitive disadvantages. The markets in which our business units operate are narrow niche sectors with few,
primarily private suppliers, who could draw conclusions about our margins and prices from the segment results.

18. Other Operating Income

44

CHF millions

2016

2017

Materials and energy sales
Ancillary services
Real estate management income
Internally produced additions to plant and equipment
Supplier commissions
Allocations disposal fees
Other income
Total

2.5
0.7
0.6
1.5
0.9
0.6
5.2
12.0

3.1
0.2
0.7
0.4
1.3
0.6
4.5
10.8

Financial Reporting19. Cost of Materials
CHF millions

2016

2017

Raw materials
Merchandise
Total

92.1
8.5
100.6

92.8
8.0
100.8

CHF millions

2016

2017

Wages and salaries
Social benefits
Other personnel expenses
Total

108.1
29.9
4.1
142.1

113.1
32.6
4.4
150.1

20. Personnel Expenses

Headcount by country (final count)

Switzerland
Austria
Czech Republic
Croatia
Slovakia
Ukraine
Italy
Total

ChangePrevious year

ChangeCurrent year

31.12.2016

31.12.2017

1.1%
2.7%
0.4%
– 3.6%– 2.0%
1.0%
5.5%
0.5%

2.5%
– 1.2%
0.9%
1.8%
0.3%
– 0.2%
0.4%
0.4%

280
691
458
565
344
636
269
3 243

287
683
462
575
345
635
270
3 257

ChangePrevious year

ChangeCurrent year

2016

2017

– 1.8%
1.9%– 0.2%– 1.0%– 0.6%– 1.1%
1.2%– 0.2%

1.8%
2.3%
1.7%
– 0.3%– 2.0%– 0.9%
6.2%
0.9%

280
683
462
576
355
637
260
3 253

285
700
470
574
348
632
276
3 285

Headcount by country (average)

Switzerland
Austria
Czech Republic
Croatia
Slovakia
Ukraine
Italy
Total

Financial Reporting45

21. Other Operating Expenses
CHF millions

2016

2017

Maintenance and repairs
MouldsPackaging material
Transport costs
Other administrative and operating expenses
Total

28.2
14.4
25.6
41.8
59.5
169.5

31.4
5.3
26.7
42.6
57.0
163.0

CHF millions

2016

2017

Interest income
Interest expenses
Currency exchange gains
Currency exchange losses
Other financial income
Total

2.1
– 0.3
3.5
– 5.0
1.2
1.5

0.9
– 0.5
12.1
– 4.8
– 0.2
7.5

CHF millions

2016

2017

Non-operating real estate income
Non-operating real estate expenses
Non-operating real estate depreciation / impairments
Total

3.6
– 1.8
– 1.1
0.7

3.5
– 1.6
– 1.0
0.9

CHF millions

2016

2017

Ongoing income taxes
Deferred income taxes
Total

10.2
– 1.5
8.7

13.5
1.6
15.1

22. Financial Result

23. Non-Operating Result

24. Income Taxes

Loss carryforwards amounted to CHF 10.5 million (2016: CHF 9.9 million) in total at the end of the reportingyear. Tax loss carryforwards of CHF 3.7 million were included in the calculation of the deferred income tax assets(2016: CHF 6.3 million).

46

Financial Reporting

The impact on the tax on earnings of unrecognised loss carryforwards was CHF 1.6 million in the reporting year
(2016: CHF 0.9 million). In the reporting year, as in the previous year, unrecognised loss carryforwards were used.
The impact that this had on the tax on earnings in the reporting year was CHF –0.5 million (2016: CHF –1.0 million).
In the reporting year, as in the previous year, there was no impact due to the use or expiry of unrecognised loss
carryforwards.
The country-specific tax rates that apply to the calculation of the deferred taxes on earnings range from 7.8% to27.9% (2016: 7.8% to 27.9%).
The weighted average tax rate to be applied based on the ordinary result is 16.5% (2016: 19.0%).

25. Results per Participation Right
The undiluted result per share is calculated by dividing the consolidated profit for the applicable year that is to beallocated to the shareholders of the Vetropack Group by the weighted average number of outstanding shares.

Consolidated profit allocated to the shareholders of the Vetropack Group in million CHF
Weighted number of outstanding bearer shares for undiluted result per share
Weighted number of outstanding registered shares for undiluted result per share
Undiluted result per bearer share in CHF
Undiluted result per registered share in CHF

2016

2017

42.6

57.0

396 480
1 982 400

396 480
1 982 400

107.5
21.5

143.9
28.8

The diluted result per share is calculated in the same way as the undiluted result for both share types, as no
dilution potential exists for either.

26. Investments
Investment Breakdown:
CHF millions

2016

2017

Switzerland
Austria
Czech Republic
Croatia
Slovakia
Ukraine
Italy
Total

4.7
38.6
10.6
9.2
8.5
7.0
2.8
81.4

8.4
12.5
5.3
12.3
7.0
12.6
7.4
65.5

Financial Reporting47

Additional Information
27. Off Balance Sheet Transactions
CHF millions

31.12.2016

31.12.2017

2.7
2.5
0.2
0.2
1.7
7.3

1.9
2.5
0.5
0.0
1.9
6.8

31.12.2016

31.12.2017

0.2
1.5
0.0
1.7

0.2
1.7
0.0
1.9

31.12.2016

31.12.2017

6.5
1.6
33.1
41.2

7.1
2.7
32.2
42.0

Recourse from drafts
Letters of comfort
Guarantees
Other off-balance-sheet obligations
Off balance sheet leasing
Total
Contingent liabilities are stated at their maximum amounts (full sum of liability).

The repayment structure of the off balance sheet leasing liabilities is as follows:
CHF millions
Maturity– 1 to 2 years– 3 to 5 years– > 5 years
Total

28. Pledged Assets
The following assets' book values are used as collateral to secure bank credits and mortgages:
CHF millions
Accounts receivables
Marketable securities
Real estate
Total

Financial Reporting4929. Derivative Financial Instruments
No derivative financial instruments were held as at the reporting date in the previous year. As at 31 December 2016,
Vetropack Holding Ltd had an open currency swap in the amount of CHF 20.0 million with a positive replacement
value of CHF 0.1 million.

30. Transactions with Closely Associated Persons
CHF millions

31.12.2016

31.12.2017

0.0
0.2
0.0

0.0
0.1
0.0

Associated Companies
Accounts receivables
Accounts payables
Capitalised services
Service income
Equity income
Glass cullet purchasing expenses
Maintenance and repairs expenses
Other service expenses
Equity valutation expenses

0.0
0.9
0.0
0.0
0.2
– 4.1
– 0.3
0.0
0.0

0.0
1.0
0.0
0.0
0.0
– 4.2
– 0.3
0.0
0.0

Other Closely Associated Persons
Accounts receivables
Accounts payables
Investments in tangible assets
Distribution income
Packaging material expenses
Distribution expenses
Service expenses
Interest expenses
Tangible assets sales

0.0
0.1
0.0
0.0
– 0.4
0.0
0.0
0.0
0.0

0.0
0.2
0.0
0.0
– 0.5
0.0
0.0
0.0
0.0

Pension Funds
Accounts receivables
Accounts payables
Interest expenses

The classification of "Other Closely Associated Persons" includes transactions with the following natural persons andlegal entities, irrespective of the Vetropack Company in which they occurred: shareholders with voting rights of morethan 20%, BoD members, MB members and all companies that are directly or indirectly controlled by these persons.
Transactions with closely associated persons and companies are handled on the basis of normal market terms
and conditions.

50

Financial Reporting31. Pension Fund
There exist various pension schemes within the Group, which are based on regulations of their respective countries.
In Switzerland, these are contributor funded schemes in accordance with Swiss pension fund law; abroad they arestate-guaranteed contribution-based pension schemes. The schemes are financed either through contributions tolegally independent institutions and trusts or by registering the pension fund liability in the financial statements of theGroup companies.

Employer's Contribution Reserves
CHF millions

Company Sponsored Pension Funds
2016
2017

Nominal value 31.12.
Utilisation waiver 31.12.
Other value adjustments 31.12.
Discounting effects 31.12
Book value 31.12.
Changes

13.0
0.0
0.0
– 1.5
11.5
0.0

13.1
0.0
0.0
– 1.5
11.6
0.0

CHF millions

2016

2017

Key influential factors– Change in discount rate
– Interest effect– Utilisation and other effects
Total Change in Employer's Contribution Reserves

0.0
0.4
– 0.4
0.0

0.0
0.4
– 0.4
0.0

Financial Reporting51

Assets and Liabilities from Pension Funds
CHF millions
Company
Sponsored
Pension Funds

Pension Funds
without Excess /Deficiency CoverPension Funds
with Excess
Cover

Pension Funds
without
Own Assets

Total

8.0

0.0

4.0

0.0

12.0

0.0

0.0

0.0

– 12.0– 12.0

0.0
0.0
–0.1
0.0
– 0.1

0.0
0.0
0.0
0.0
0.0

0.0
0.0
2.5
2.2
2.5

– 12.7
0.7
1.3
1.5
2.0

– 12.7
0.7
3.7
3.7
4.4

Excess / deficiency cover 31.12.2017
Economic utilisation /liabilities 31.12.2016
Economic utilisation /liabilities 31.12.2017
Changes 2017
Contributions restricted to the period *Pension expenses 2016
Pension expenses 2017

* including changes in employer's contribution reserves
The values for pension funds of Swiss companies are based on previous years' financial statements, whereby all
substantive decisions in the current fiscal year are taken into account. The uncommitted funds are not available to the
Vetropack Group.

CHF millions
Key influential factors– Changes in employer's contribution reserves– Changes in economic utilisation / liabilities– Pension fund contributions
Total Pension Fund Expenses

2016

2017

0.0
0.3
3.4
3.7

0.0
0.7
3.7
4.4

32. Events after the balance sheet dateNo significant events occurred between the balance sheet date and the Board of Directors approving theconsolidated financial statements on 14 March 2018 that could negatively affect the declarations made in the2017 annual financial statements.

52

Financial ReportingOwnership Structure

Vetropack Holding Ltd
St-Prex (CH)

Vetropack Ltd
St-Prex (CH)Share Capital
CHF 8 000 000

Müller + Krempel Ltd
Bülach (CH)Share Capital
CHF 1 000 000

Vetropack Austria Holding AG
Pöchlarn (AT)

Share Capital
EUR 10 905 000

Vetroconsult Ltd
Bülach (CH)Share Capital
CHF 1 000 000

Vetropack Austria GmbH
Pöchlarn (AT)

Joint Stock
EUR 8 725 000

Vetroreal Ltd
St-Prex (CH)Share Capital
CHF 500 000

Vetropack Moravia Glass, a.s.
Kyjov (CZ)85%

Share CapitalCZK 800 000 000

Vetropack Nemšová s.r.o.
Nemšová (SK)

Joint Stock
EUR 16 596 960

PrJSC Vetropack Gostomel
Gostomel (UA)Share Capital
UAH 55 500 000

Vetropack Italia S.r.l.
Trezzano sul Naviglio (IT)Share Capital
EUR 1 000 000

Vetropack Straža d.d.
Hum na Sutli (HR)54

Share Capital
CHF 19 824 000

Financial Reporting

Share Capital
HRK 208 290 000

Company Participations
Company

Domicile

Currency

Share Capital

Switzerland
Vetropack Holding Ltd
Vetropack Ltd
Vetroconsult Ltd
Vetro-Recycling Ltd
Müller + Krempel Ltd
Vetroreal Ltd

St-Prex
St-Prex
BülachBülachBülachSt-Prex

CHF
CHF
CHF
CHF
CHF
CHF

19 824 000
8 000 000
1 000 000
100 000
1 000 000
500 000

Austria
Vetropack Austria Holding AG
Vetropack Austria GmbH
Austria Glas Recycling GmbHPTP Pro Glas GmbH

PöchlarnPöchlarn
Wien
Wien

EUR
EUR
EUR
EUR

Czech Republic
Vetropack Moravia Glass, a.s. Kyjov
Croatia
Vetropack Straža d.d.
Straža-Imo d.o.o.

*Share Consolidation

Owner

100%
100%
100%
100%
100%

K
K
K
K
K
K

the public
VPH
VPH
VPH
VPH
VPH

10 905 000
8 725 000
50 00035 000

100%
100%
24.5%
50%

K
K
E
E

VPH
VAH
VPA
VPA

CZK

800 000 000

100%

K

VAH

Hum na Sutli
Hum na Sutli

HRK
HRK

208 290 000
855 031

100%
25.1%

K
E

VPH
VST

Slovakia
Vetropack Nemšová s.r.o.

NemšováEUR

16 596 960

60/40%K

VPH/VAH

UkrainePrJSC Vetropack Gostomel**

Gostomel

UAH

55 500 000

85.3%

K

VAH

Italy
Vetropack Italia S.r.l.

Trezzano

EUR

1 000 000

100%

K

VAH

K
E

= Fully consolidated companies= Equity method

VPH = Vetropack Holding Ltd
VAH = Vetropack Austria Holding AG***

VPA = Vetropack Austria GmbHVST = Vetropack Straža d.d.

Capital shares and voting rights are identical.
During the year under review JSC Vetropack Gostomel was renamed PrJSC Vetropack Gostomel.

As per 31 Dezember 2017

Financial Reporting55

To the General Meeting of Vetropack Holding Ltd, Saint-Prex
Zurich, 14 March 2018
Report of the statutory auditor on the consolidated financial statements
As statutory auditor, we have audited the consolidated financial statements of Vetropack Holding Ltd, which
comprise the balance sheet, income statement, cash flow statement, statement of change in equity and notes(pages 28 to 55), for the year ended 31 December 2017.
Board of Directors’ responsibility. The Board of Directors is responsible for the preparation of the consolidated
financial statements in accordance with Swiss GAAP FER and the requirements of Swiss law. This responsibility
includes designing, implementing and maintaining an internal control system relevant to the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. The Board of
Directors is further responsible for selecting and applying appropriate accounting policies and making accounting
estimates that are reasonable in the circumstances.
Auditor’s responsibility. Our responsibility is to express an opinion on these consolidated financial statements
based on our audit. We conducted our audit in accordance with Swiss law and Swiss Auditing Standards. Thosestandards require that we plan and perform the audit to obtain reasonable assurance whether the consolidated
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessmentof the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In
making those risk assessments, the auditor considers the internal control system relevant to the entity’s preparation of the consolidated financial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control
system. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made, as well as evaluating the overall presentation of the consolidated financial
statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Opinion. In our opinion, the consolidated financial statements for the year ended 31 December 2017 givea true and fair view of the financial position, the results of operations and the cash flows in accordance with
Swiss GAAP FER and comply with Swiss law.
Report on key audit matters based on the circular 1/2015 of the Federal Audit Oversight Authority.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of theconsolidated financial statements of the current period. These matters were addressed in the context of our auditof the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide aseparate opinion on these matters. For each matter below, our description of how our audit addressed the matteris provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibility section of our report, including in
relation to these matters. Accordingly, our audit included the performance of procedures designed to respondto our assessment of the risks of material misstatement of the consolidated financial statements. The results of ouraudit procedures, including the procedures performed to address the matters below, provide the basis for our
audit opinion on the consolidated financial statements.

Financial Reporting

57

Tangible Assets
Area of focus. The balance sheet position “tangible assets” as of 31 December 2017 amounts to CHF 499.0 million(Prior Year: CHF 459.5 million) and therefore represent approximately 54% of total assets. More than half of thetangible assets are furnaces, equipment and production facilities, which are exposed to hard industrial operations.
This leads to two significant management assessments. Firstly, the management has to assess the moment a machine is ready for use and therefore depreciation can start. Secondly, management has to estimate the useful lifeand challenge the estimations continuously. Furthermore, events during production could lead to unplanned impairment of machines. These events can have an impact on the consolidated profit as well as the consolidated equity.
Our audit response. We assessed and tested controls regarding design and operational effectiveness of asset
purchase respectively recognition and valuation of tangible assets. Besides testing controls we performed substantive procedures where we recalculated the depreciation rates, evaluated the appropriateness of tangible
asset lives applied in the calculation of depreciation and searched for indications for impairment. Furthermore, we
performed test of details regarding the recognition of tangible assets and assessed the timeliness of the transfer ofassets in the course of construction.
Refer to consolidated Balance Sheet on page 28, Valuation Principal on page 34 as well as Note Nr. 6
on page 39 regarding the financial statement.
Report on other legal requirements. We confirm that we meet the legal requirements on licensing according to
the Auditor Oversight Act (AOA) and independence (article 728 CO and article 11 AOA) and that there are no
circumstances incompatible with our independence.
In accordance with article 728a para. 1 item 3 CO and Swiss Auditing Standard 890, we confirm that an internal
control system exists, which has been designed for the preparation of consolidated financial statements according
to the instructions of the Board of Directors.
We recommend that the consolidated financial statements submitted to you be approved.

Ernst & Young Ltd
Daniel Zaugg
Licensed audit expert(Auditor in charge)

58

Financial Reporting

Marc Hegetschweiler
Licensed audit expert

Financial Reporting

59

2014
2015
2016
2017

55
72
55
64
50
81
54
66
62
0

Five Year Overview

20

40

60

80

Investments
Depreciations

2013

2014

2015

2016

2017

CHF millions%
number
TCHF

617.2
2.7
3 014
205

599.3
– 2.9
2 985
201

557.0
– 7.1
3 228
173

601.7
8.0
3 243
186

631.5
5.0
3 257
194

CHF millions
%

110.4
17.9

107.2
17.9

103.7
18.6

105.1
17.5

126.3
20.0

CHF millions
CHF millions
CHF millions

55.3
12.8
56.4

56.1
5.0
49.2

51.6
7.3
42.1

55.3
8.7
42.6

62.5
15.1
57.0

CHF millions
CHF millions
30
CHF millions 40
CHF millions
CHF millions
CHF millions
%

50.5
794.1
299.3 50
494.8
151.5
642.6
80.9

72.1
792.1
309.6 60
482.5
159.3
632.8
79.9

63.7
784.3
312.1
472.2
200.6
583.7
74.4

81.4
840.7
339.9
500.8
235.3
605.4
72.0

65.5
932.2
407.9
524.3
243.9
688.3
73.8

Consolidated Income Statement
Net sales from goods and services
Change net sales from previous year
Employees
Net sales per employee
Operating cash flow before change innet short-term assets
Cash flow as % of net sales
Depreciations/2013 56
Impairments
on tangible assets *15
2014
Income49taxes
15
Net profit
2015 4215432016
Consolidated
Balance Sheet as per 31.12.
15
Investments
intangible assets
2017 57
18
Total assets
10
20
Short-term0 assets
Consolidated
AnnualProfitLong-term assets
Dividends Vetropack Holding Ltd
Liabilities
Shareholders' equity
Equity ratio

100* This includes amortisation on non-operating real estate and buildings.

Consolidated Net Sales 2013 – 2017 in CHF millions
2013
2014
2015
2016
2017

617
599
557
602
632

83

192

79

42

82

191

78

50

113

95

120

74

176

71

43

107

50 27 9

70

172

71

45

117

47

69

179

62

45

120

57

100

0

Glass CH
Glass AT

200

Glass CZ
Glass SK

300

400

Glass HR
Glass UA

Glass IT
Other

500

13
12

66
71

9
91 9

600

700

800

Investments and Depreciations 2013 – 2017 in CHF millions
2013
2014
2015
2016
2017

51
55
72
55
64
50
81
54
66
62
0

20

Investments
Depreciations

60

Financial Reporting

40

60

80

100

Financial Reporting – Vetropack Holding Ltd, St-Prex
Balance sheet
CHF millions
ASSETS
Short-term Assets
Liquid funds
Marketable securities
Accounts receivables from Group companies
Total other short-term receivables in relation to holding
Accruals
Subtotal Short-term Assets
Long-term Assets
Marketable securities
Loans to Group companies
Participations
Tangible assets
Subtotal Long-term Assets
Total Assets

Note

5

4

LIABILITIES
Liabilities– Accounts payables to third– Accounts payables to Group companies
Accounts payables– Short-term financial debts to Group companies
Short-term interest-bearing financial debts
Deferrals and short-term provisions
Subtotal Short-term Liabilities– Long-term financial debts to Group companies– Long-term provisions
Total Long-term Liabilities
Total Liabilities
Shareholders' Equity
Share capital
Legal capital reserves / reserves from capital investments
Legal profit reserves– Free reserves
Retained earnings brought forward from previous year
Annual profit– Accumulated profits
Voluntary retained earnings
Subtotal Shareholders' Equity
Total Liabilities

62

Vetropack Holding Ltd

6

31.12.2016

31.12.2017

54.4
0.0
2.3
23.3
0.1
80.1

102.4
9.4
2.2
5.6
0.0
119.6

11.2
176.7
102.4
0.1
290.4
370.5

0.0
181.6
108.7
0.1
290.4
410.0

2.2
0.4
2.6
8.7
8.7
2.3
13.6
3.0
0.6
3.6
17.2

1.9
0.6
2.5
15.4
15.4
3.2
21.1
3.0
0.7
3.7
24.8

19.8
28.6
0.3
244.3
24.9
35.4
60.3
304.6
353.3
370.5

19.8
28.6
0.3
264.4
25.0
47.1
72.1
336.5
385.2
410.0

Income Statement
CHF millions

2016

2017

Dividend income
Income generated from licenses
Management fees
Other income
Total income

25.5
8.5
7.0
2.2
43.2

25.3
9.0
7.0
2.2
43.5

Personnel expenses– Administrative expenses– Promotional expenses– various operating expenes
Other operating expenses
Depreciation of tangible assets

– 7.8
– 6.0
– 1.3
– 2.4
– 9.7
– 0.1

– 7.9
– 4.4
– 1.0
– 2.1
– 7.5
– 0.1

Operating Result (EBIT)

25.6

28.0

Currency exchange losses
Total financial expenses– 17.8– 17.8

– 5.2
– 5.2

Interest income
Currency exchange gains
Other financial income
Total financial income

5.1
16.5
1.0
22.6

4.3
15.4
0.1
19.8

Ordinary Result
Extraordinary income

30.4
6.3

42.6
6.3

36.7
– 1.3
35.4

48.9
– 1.8
47.1

Annual Profit Before Taxes
Income taxes
Annual Profit

Note

2/4

Vetropack Holding Ltd

63

Notes
1. Information on the principles applied in the annual financial statement
The annual financial statement has been prepared in accordance with the provisions of Swiss law, in particular thearticles governing commercial accounting and financial reporting in the Swiss Code of Obligations (Art. 957 ff).
2. Net release of hidden reserves
Hidden reserves of CHF 6.3 million were released in the reporting year (2016: CHF 6.3 million).
3. Range of full-time positions averaged across the year
The company employed between ten and 50 persons in the reporting year and the previous year.
4. Participations
The overview on page 55 provides a breakdown of the participations held directly or indirectly by Vetropack
Holding Ltd. Value adjustments to participations of CHF 6.3 million were released in the reporting year
(2016: CHF 6.3 million).
5. Marketable securities
The amount of CHF 9.4 million (EUR 8.0 million) relates to bonds measured at market value, which were repaid
early in February 2018.
6. Share capital
Regarding detailed information on the share capital, refer to Vetropack Group’s financial reporting(cp. note no. 15, page 43).
7. Total amount of securities provided for third-party liabilities
A guarantee of CHF 2.5 million exists in favour of Vetropack Ltd, St-Prex (2016: CHF 2.7 million).
8. Joint Liability
In the framework of VAT group taxation, all affiliated Swiss companies within the Vetropack Group are jointly
and severally liable for total debt owed to the federal tax authorities.
9. Contingent Liabilities
Vetropack Group operates a cash pooling system for which Vetropack Holding Ltd performs the function ofpool master. As a result of the cash pooling agreements with the banks, the pool master has a liability for possible
negative balances in the participating pool accounts.
10. Derivative Financial Instruments
No derivative financial instruments were held as at the reporting date in the previous year. As at
31 December 2016, Vetropack Holding Ltd had an open currency swap in the amount of CHF 20.0 million witha positive replacement value of CHF 0.1 million.

64

Vetropack Holding Ltd

11. Disclosure in Accordance with Swiss Code of Obligations (663c)
The table below lists the numbers of shares per member of the BoD and MB as of 31 December 2017. Shares heldby closely associated persons are included in the total for the respective individual.
Voting Rights

Registered Shares 2016

Bearer Shares 2016 Registered Shares 2017

Bearer Shares 2017

Hans R. Rüegg *Sönke Bandixen *Pascal Cornaz *Rudolf Fischer *Richard Fritschi *Jean-Philippe Rochat *Urs Kaufmann*
Total

0
0
5 000
0
0
0
–
5 000

100
40
0
10
250
10
–
410

0
0
5 000
0
0
0
0
5 000

100
40
0
10
250
10
49
459

Claude R. Cornaz **David Zak **Günter Lubitz **Marcello Montisci **Johann Reiter **
Total

1 381
0
0
0
0
1 381

215
0
130
0
0
345

1 381
0
0
0
0
1 381

215
0
140
0
0
355

* BoD members; position see Corporate Governance, page 72 to 74** MB members; position see Corporate Governance, page 75 to 76
List of Major Shareholders with Holdings > 5%
Cornaz AG-Holding
Elisabeth Leon-Cornaz

31.12.2016
67.6%
5.2%

31.12.2017
67.6%
5.2%

Shareholder's agreements exist between these and other persons and/or their shareholders (cp. page 70).

Vetropack Holding Ltd

65

Board of Directors' (BoD) Proposal for the Corporate Profit Appropriation
The board of Directors proposes the following appropriation of profits to the Annual General Assemblyof shareholders (AGA):CHF millions

2016

2017

At disposal of the AGA
Retained earnings
Annual profits
Total profit
Total at the disposal of the AGA

24.9
35.4
60.3
60.3

25.0
47.1
72.1
72.1

Board of Directors' Proposal
Total profit
Allocation profit
Dividend
2013 51 payment
55 earnings
Retained

60.3– 20.0– 15.325.0

72.1– 30.0– 17.8
24.3

2014

72
55
2015 6450
Acceptanceof this proposal results in the following dividend payments:
2016 8154
2017 millions
66
CHF
Gross Dividend
62

Bearer shares CHF 50.00 nominal value
02040Registered shares CHF 10.00 nominal value

60

45.00
9.00

35% Withholding Tax
15.75
80
100
3.15

Investments
Depreciations

Net Dividend
29.25
5.85

The dividend payment is to be paid to registered shareholders on 27 April 2018 via the usual appointed paying
agents. Payment to holders of bearer shares is to be made in exchange for coupon number 22 at the Swiss branch
offices of the following banks: Banque Cantonale Vaudoise, UBS, Credit Suisse, Zürcher Kantonalbank.

Consolidated Annual Profit and Dividends 2013 – 2017 in CHF millions
2013
2014
2015
2016
2017

56
15
49
15
42
15
43
15
57
18
0

10

20

Consolidated Annual Profit
Dividends Vetropack Holding Ltd

66

Vetropack Holding Ltd

30

40

50

60

To the General Meeting of Vetropack Holding Ltd, Saint-Prex
Zurich, 14 March 2018
Report of the statutory auditor on the financial statements
As statutory auditor, we have audited the financial statements of Vetropack Holding Ltd, which comprise the balance
sheet, income statement and notes (pages 62 to 66), for the year ended 31 December 2017.
Board of Directors’ responsibility. The Board of Directors is responsible for the preparation of the financial statements in accordance with the requirements of Swiss law and the company’s articles of incorporation. This responsibility includes designing, implementing and maintaining an internal control system relevant to the preparation offinancial statements that are free from material misstatement, whether due to fraud or error. The Board of Directors isfurther responsible for selecting and applying appropriate accounting policies and making accounting estimates thatare reasonable in the circumstances.
Auditor’s responsibility.Our responsibility is to express an opinion on these financial statements based on our
audit. We conducted our audit in accordance with Swiss law and Swiss Auditing Standards. Those standards requirethat we plan and perform the audit to obtain reasonable assurance whether the financial statements are free frommaterial misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks ofmaterial misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, theauditor considers the internal control system relevant to the entity’s preparation of the financial statements in order todesign audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the entity’s internal control system. An audit also includes evaluating the appropriateness of
the accounting policies used and the reasonableness of accounting estimates made, as well as evaluating the overall
presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion. In our opinion, the financial statements for the year ended 31 December 2017 comply with Swiss law andthe company’s articles of incorporation.
Report on key audit matters based on the circular 1/2015 of the Federal Audit Oversight Authority.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of thefinancial statements of the current period. We have determined that there are no key audit matters to communicate inour report.
Report on other legal requirements. We confirm that we meet the legal requirements on licensing according
to the Auditor Oversight Act (AOA) and independence (article 728 CO and article 11 AOA) and that there are no
circumstances incompatible with our independence.

Vetropack Holding Ltd

67

In accordance with article 728a para. 1 item 3 CO and Swiss Auditing Standard 890, we confirm that an internal
control system exists, which has been designed for the preparation of financial statements according to the instructions of the Board of Directors.
We further confirm that the proposed appropriation of available earnings complies with Swiss law and thecompany’s articles of incorporation. We recommend that the financial statements submitted to you be approved.

Ernst & Young Ltd
Daniel Zaugg
Licensed audit expert(Auditor in charge)

Marc Hegetschweiler
Licensed audit expert

Five Year Overview
2013

2014

2015

2016

2017

Income Statement and Balance Sheet (CHF millions)
Total income
Annual profit
Total assets
Participations
Share capital
Shareholders’ equity

57.9
39.8
336.2
79.9
20.5
325.7

44.3
36.0
338.8
86.1
19.8
322.5

42.9
25.9
370.7
96.1
19.8
333.2

43.2
35.4
370.5
102.4
19.8
353.3

43.5
47.1
410.0
108.7
19.8
385.2

Share Details (CHF millions)Share prices– Bearer share high– Bearer share low

1 990
1 660

1 933
1 495

1 655
1 200

1 777
1 350

2 175
1 710

Earnings per share

138

124

106

108

144

Dividends– Bearer share– Registered share

37.50
7.50

38.50
7.70

38.50
7.70

38.50
7.70

*45.00*9.00

Distribution ratio in %

26.4

31.0

36.2

35.8

31.3

* motion for the AGA on 20 April 2018

68

Vetropack Holding Ltd

Corporate Governance
The following explanations contain fundamental information for the Vetropack Group as laid out in the Corporate
Governance Guidelines defined by the SIX Swiss Exchange as per 13 December 2016.
Operational Group Structure
Refer to the illustration on page 88.
Group Companies
For Shareholdings and their Percentage Breakdowns, refer to the illustration on page 55.
Capital Structure
For details of the share capital, refer to note no. 15 on page 43. For details of changes in capital structure within thelast three years, refer to table “Changes in Consolidated Shareholders’ Equity” on page 31. Vetropack Holding Ltd
does not issue options on participation rights.
Dividends
Registered and bearer shares are dividend bearing.
List of Major Shareholders with Holdings > 3%
31.12.2016

31.12.2017

No. of Registered Shares

No. ofBearer Shares

VotingRights in %No. of Registered Shares

No. ofBearer Shares

VotingRights in %Cornaz AG-Holding
Oberrieden

721 946

22 09767.6

721 946

22 097

67.6

Elisabeth Leon-Cornaz
St-Prex

56 8680

5.2

56 8670

5.2

La Licorne Holding SA
Martigny

50 7220

4.6

50 7220

4.6

A shareholders’ lock-in agreement exists between the shareholders of Cornaz AG-Holding. A further shareholders’agreement exists between Cornaz AG-Holding and the shareholders mentioned above, as well as 4 further
shareholders (cp. the disclosure report dated 21 December 2017 published on the SIX Swiss Exchange website:
https://www.six-exchange-regulation.com/en/home/publications/significant-shareholders.html).
The core elements of both agreements are:
– Uniform exercise of voting rights at the AGA.
– Mutual obligation to offer shares to parties to the agreement.
During the year under review, no disclosure reports were issued to the company within the meaning of Art. 120
of the Swiss Stock Exchange Act.

70

Corporate GovernanceBoard of Directors (BoD)
Principles Underlying the Voting Procedure for Members of the Board of Directors and theirTerms of Office
The members of the Board of Directors of Vetropack Holding Ltd are each elected by the Annual General Assemblyof shareholders (AGA) on an annual basis. Re-election is permitted. Each year, the AGA elects the Chairman of
the Board of Directors and the individual members of the Nomination and Compensation Committee (NCC), whomust be members of the Board of Directors, as well as the independent proxy. Their term of office shall end upon the
conclusion of the next AGA. The BoD appoints the Chairman of the NCC.
BoD Duties
The BoD performs its duties as laid out in the Swiss Code of Obligations (CO) 716a.
The BoD Chairman has the following additional main duties:– Preparing and drawing up the invitations to the AGA jointly with the CEO.
– Drawing up the agenda for BoD meetings, and issuing invitations and relevant documentation jointly with the CEO.
– Chairing the AGA and the BoD meetings.
– Monitoring the implementation of resolutions passed by the AGA and the BoD.
– In urgent cases, the BoD Chairman can conclude transactions that fall within the competence of the BoD byexecutive decision. Any such actions are communicated in writing without delay to the BoD.
Respective Areas of Responsibility for the BoD and Management Board (MB)The duties that are not reserved for the BoD in accordance with CO 716a are delegated to the MB. This means that
the MB can act freely within the guidelines laid down by the BoD, but it is also fully responsible for the operational
management of the Group.
Working Methods
In 2017, the BoD exercised its overall supervisory and monitoring role by receiving oral and written reports from the
MB at five regular annual meetings, by consulting amongst its members, and by reaching decisions in relation to any
motions raised. Ordinary BoD meetings normally last at least four hours. The head auditor was invited to the Marchmeeting to disclose the results of the external audit. Moreover, a two-day strategy meeting was held in August.
During the November meeting, the results of the 2017 internal audit were discussed and focal areas were defined forthe 2018 internal audit. A further ten annual meetings were held, exclusively involving the BoD Chairman, the CEO,and the CFO. They discussed operational topics, preparations for ordinary meetings, as well as reports from internal audit. The BoD is regularly informed regarding the Group’s commercial state of affairs and planning via written
Monthly, Semi-Annual and Annual Reports, and receives a planning dossier at both company and Group levels(three year plan). The Nomination and Compensation Committee (NCC) is responsible for checking the BoD andextended MB remuneration scheme. The working methods of the NCC are set out on page 79 of the Remuneration
Report. With the exception of the NCC, the BoD forms no committees.

Corporate Governance71

Risk Assessment
Vetropack Holding Ltd utilises a risk management system that enables the identification, early recognition, andanalysis of risks in order for the company to take appropriate action. The system’s scope includes strategic,
operational, financial, and compliance risks. It covers not only Vetropack Holding Ltd’s risks, but also the key
risks of its subsidiaries. All systematically identified risks are listed according to rank. This risk ranking system isformulated from a risk probability matrix. Management is actively involved in checking annually the matrix
and in keeping it up to date. During the year under review, the Board of Directors dealt with the topic of risk
assessment in its August meeting.
BoD Members

Hans R. Rüegg
Richard Fritschi *Claude R. Cornaz *Sönke Bandixen
Pascal Cornaz
Rudolf W. Fischer *Jean-Philippe Rochat
Urs Kaufmann

Position
Chairman, non-executive
Vice-Chairman, non-executive
Member, executive
Member, non-executive
Member, non-executive
Member, non-executive
Member, non-executive
Member, non-executive

Nationality
CH
CH
CH
CH
CH
CH
CH
CH

Appointed
1993
2005
1998
2012
2009
2000
2006
2017

Elected till
May 2018
May 2018
May 2018
May 2018
May 2018
May 2018
May 2018
May 2018*Members of the Nomination and Compensation Committee (NCC)

Hans R. Rüegg (1946, Rüti ZH)
Dipl. El. Ing., ETH, Zürich, Switzerland / MBA, University of Florida, Gainesville, USA
1983 – 1993
1993 – 20111993 – 2005
2005 – present
2011 – 2017

Delegate of the BoD, Baumann Federn AG, Rüti, Switzerland
Chairman and Delegate of the BoD, Baumann Federn AG, Rüti, Switzerland
Member of the BoD, Vetropack Holding Ltd, Bülach, Switzerland
Chairman of the BoD, Vetropack Holding Ltd, Bülach, Switzerland
Chairman of the BoD, Baumann Federn AG, Rüti, Switzerland

Richard Fritschi (1960, Oberrieden ZH)
Dipl. Controller SIB, Zürich, Switzerland
1979 – 1985
1985 – 1987
1987 – 1991
1991 – 1999
1999 – 2001
2001 – 2003
2003 – 2005
2006 – 8/2011
9/2011 – present

Various functions for Luwa SA, in Zürich, Switzerland and England
Project Controller, Airchal-Luwa SA, Paris, France
Head of Finance and Administration, Isolag AG, Zürich, Switzerland
Head of Finance, Allo Pro / Sulzer Orthopädie, Baar / Winterthur, Switzerland
Head of Sales, Sulzer Orthopädie/Sulzermedica, Winterthur, Switzerland
President Europe / Asia / South America, Sulzer Orthopädie / Sulzermedica, Winterthur, Switzerland
President Europe / Australasia, Zimmer, Winterthur, Switzerland
CEO, Ypsomed AG, Burgdorf, Switzerland
Board of Directors in various private and listed companies

Governing Mandates: Chairman, Cornaz AG-Holding, Oberrieden, Switzerland / Chairman, Bibus Holding AG,
Fehraltorf, Switzerland / Member, Fromm Holding AG, Cham, Switzerland

72

Corporate GovernanceClaude R. Cornaz (1961, Bülach ZH)
Dipl. Mechanical Engineering, ETH / BWI, Zürich, Switzerland
1987 – 1989
1998 – present
1989 – 1993
1993 – 1999
1996 – 20172000 – 2017Management Services Contraves AG, Zürich, Switzerland
Member of the BoD, Vetropack Holding Ltd, Bülach, Switzerland
Project Engineer, Nestec in Vevey, Switzerland and Thailand
Head of Corporate Development and Head of Technology & Production Vetropack GroupMB Member, Vetropack GroupCEO of Vetropack Holding Ltd, Bülach, Switzerland

Governing Mandates: Member, Bucher Industries AG Niederweningen, Switzerland / Vice-Chairman,
H. Goessler AG, Zürich, Switzerland / Vice-Chairman, Cornaz AG-Holding, Oberrieden, Switzerland /Member, Glas Trösch Holding AG, Buochs, Switzerland
Offices: BoD Member of the European Federation for Glass Packaging (FEVE), Brussels, Belgium

Sönke Bandixen (1957, Stein am Rhein SH)
Dipl. Mechanical Engineer, ETH Zürich, Switzerland, PMD Harvard Business School, USA
1984 – 1993

Various functions for SIG AG, as of 1990 MB Division Packaging
Machines, Neuhausen am Rheinfall, Switzerland
1994 – 1996
Vice President Marketing, Cosatec AG, Dübendorf, Switzerland
1997 – 2003
CEO Division Door Systems, Kaba Holding AG, Rümlang, Switzerland
2004 – present Partner, AMC Account Management Center AG, Zürich, Switzerland
2007 – 2010
CEO, Orell Füssli Holding AG, Zürich, Switzerland
2010 – 2011
Self-employed Management Consultant
2012 – 2014
CEO, Landert Motoren AG, Bülach, Switzerland
2015 – present Self-employed Management Consultant
Governing Mandate: Member of Schweizerische Schifffahrtsgesellschaft Untersee und Rhein, Schaffhausen
Offices: Member Advisory Board, CGAM Center for Global Account Management, HSG St. Gallen, Switzerland,
Mayor of Stein am Rhein, Member of the Board of Trustees of the Jakob and Emma Windler Foundation, Stein am Rhein

Pascal Cornaz (1971, Les Paccots FR)
Dipl. Purchaser, Switzerland
1995 – 2005
2005 – 20072008 – 20112012 – present

Various functions in technical customer support, purchasing, and logistics, Switzerland
Member of the Executive Board of Giovanna Holding SA, Clarens, Switzerland
Member of the Executive Board and Head of Customer Service of Ginox SA, Clarens, Switzerland
CEO Diamcoupe SA, Cheseaux s. Lausanne, Switzerland

Corporate Governance73

Rudolf W. Fischer (1952, Bergdietikon AG)
PhD. Economics. publ., University of Zürich, Switzerland
1982 – 1991

Various management positions in HR and Trade Marketing,
Jacobs Suchard, Switzerland and Belgium
1991 – 1994
CEO Jockey (Switzerland), Uster, Switzerland part of theAustrian Huber Tricot Group (91 & 92), and Hanro AG, Liestal (93 & 94), Switzerland
1994 – 1995
Partner Bjørn Johansson Associates, Executive Search, Zürich, Switzerland
1996 – 2011
Schindler Management AG, Ebikon, Switzerland, Group Management Member,responsible for HR and Training
2012 – 8/2016 Schindler Holding Ltd, Member of the Board of Directors, Member of the Supervisory andNomination Committee, Member of the Compensation Committee (full-time), Switzerland
9/2016 – present Schindler Holding Ltd, Member of the Board of Directors, Member of the Supervisory andNomination Committee, Member of the Compensation Committee

Jean-Philippe Rochat (1957, Lausanne VD)
Lic. iur. University of Lausanne, Switzerland
1980 – 1984
1984 – 1985
1985 – 1987
1987 – 1989
1989 – 2015
2015 – present

Publicitas Ltd, Lausanne, Bern and Basel, Switzerland
Fiduciaire Fidinter Ltd, Lausanne, Switzerland
Legal internship in Geneva, Switzerland
Lawyer, Pfyffer, Argand, Troller & Associates, Geneva, Switzerland
Partner Lawyer at Carrard, Paschoud, Heim et Associés, Lausanne, Switzerland
Partner Lawyer at Kellerhals Carrard, Lausanne, Switzerland

Governing Mandates: Chairman, MCH Beaulieu Lausanne SA, Lausanne, Switzerland / Member,
PKB Privatbank, Lugano, Switzerland / Member, Investissements Fonciers SA – La Foncière, Lausanne, Switzerland /Member, Vaudoise Holding SA, Lausanne, Switzerland
Offices: Member of the Strategy Council “Chambre Vaudoise du Commerce et de I’Industrie” (CVCI), Lausanne,
Switzerland / Honorary consul of Finland in Lausanne, Switzerland

Urs Kaufmann (1962, Rapperswil-Jona SG)
Dipl. Mechanical Engineer, ETH/BWI Zürich, Switzerland
1987 – 1993
1994 – present
1994 – 1997
1997 – 2000
2001 – 2002
2002 – 20172017 – present

Project Manager, Production Manager and Head of Sales, Zellweger Uster AG, Uster and USA
HUBER+SUHNER GroupManaging Director of Henry Berchtold AG, Kollbrunn
Division Head and Member of Management Board
Sector Head and Member of Executive Group Management
CEO, since 2014 Delegate of the Board of Directors
Chairman of the Board of Directors

Governing Mandates: Chairman of Schaffner Holding Ltd, Luterbach / Member of SFS Group Ltd, Heerbrugg /Member of Gurit Holding Ltd, Wattwil / Member of Müller Martini Holding Ltd
Offices: Member of the Executive Committee of Swissmem

74

Corporate GovernanceMembers of the BoD for Vetropack Holding Ltd do not sit with other BoD members on the boards of otherlisted companies, nor are there any business relationships between the BoD members and Vetropack Holding Ltd.
Claude R. Cornaz, Rudolf W. Fischer, Jean-Philippe Rochat and Urs Kaufmann also act as directors of otherlisted companies as set out on pages 72 to 74 of this report.

MB Members
Claude R. Cornaz
David Zak
Günter Lubitz
Johann Reiter
Marcello Montisci

PositionCEO
CFO
GM Techniques/Production/Procurement
GM Business Division Switzerland/Austria
GM Marketing/Sales/Production Planning

Nationality
CH
CH
DE
AT
IT

Appointed
1.5.1993
1.5.2002
1.6.2003
1.11.2010
1.3.2005

Claude R. Cornaz (1961)
Dipl. Mechanical Engineer, ETH / BWI, Zürich, Switzerland
1987 – 1989
1989 – 1993
1993 – 1999
1996 – 2017
1998 – present
2000 – 2017Management Services, Contraves AG, Zürich, Switzerland
Project Engineer, Nestec in Vevey, Switzerland and Thailand
Head of Corporate Development for Technology and Production, Vetropack GroupMB Member, Vetropack Group
Member of the Board of Directors, Vetropack Holding Ltd
CEO of Vetropack Holding Ltd

David Zak (1965)
BSc., Business Administration, Boston University, Boston, USA
1989 – 1997

Various international Finance and Management positions within the ABB Group,
including Controller for ABB Holding AG, Zürich, Switzerland
Vice-Chairman, ABB s.r.o., Prague, Czech Republic
1998 – 2002
CFO, Studer Professional Audio AG, Regensdorf, Switzerland
5/2002 – present CFO, Vetropack Holding Ltd / MB Member, Vetropack Group

Günter Lubitz (1953)
Dipl. Engineer, Glass and Ceramics Engineer, University of Duisburg, Duisburg, Germany
1977 – 1985

Management Positions as Production Engineer and Head of Production within theGerman glass packaging industry
1985 – 1988
Production Manager and Technical Director at Bangkok Glass Industry, Bangkok, Thailand
1989 – 2003
Technical and Works Manager at various glass packaging companies in Germany
6/2003 – present Head of Techniques/Production/Procurement for the Vetropack Group / MB Member,
Vetropack Group

Corporate Governance75Johann Reiter (1960)
Dipl. Industrial & Mechanical Engineer, HTL, Kapfenberg, Austria
1976 – 2010

Various functions at Böhler Edelstahl GmbH & Co KG, Kapfenberg, Austria,
including business area manager for freeform forge and casting parts
11/2010 – present GM Business Division Switzerland/Austria / MB member, Vetropack Group

Marcello Montisci (1954)
PhD., Electrical Engineer, University of Rome, Italy, MBA, Università Commerciale Luigi Bocconi, Milan, Italy
1980 – 1985
1985 – 1991
1991 – 2001
2001 – 2005
3/2005 – present
2/2006 – present
2006 – 2009

Technical Sales, VARIAN, Turin, Italy
Various management functions, AXIS Spa, Florence, Italy
Including four years in the USA
Commercial Director, AVIR Spa (O.I.), Milan, Italy
MD, United Hungarian Glass (O.I.), Oroshaza, Hungary
Head of Marketing/Sales/Production Planning, Vetropack GroupMB Member, Vetropack Group
Division Head, Czech Republic/Slovakia

There are no management agreements between Vetropack Holding Ltd and companies, nor individuals
outside the Group.

Remuneration and Additional Information
The Remuneration Report on pages 79 to 82 and the disclosure pursuant to Art. 663 CO on page 65 provide details
on the remuneration, shareholdings, loans and credits granted to members of the BoD and MB as well as closely
associated persons.

Shareholders’ Participation Rights
Voting Rights, Voting Rights Restrictions and Representation: Each registered or bearer share has one voting right.
There is no representation restriction in respect of bearer shares. Registered shares can only be represented by otherholders of registered shares (persons or legal entities).
Statutory Quorums: The articles of incorporation of Vetropack Holding Ltd specify only the statutory requirements aslaid out in Articles 703 and 704 of the Swiss Code of Obligations.
Convocation of the AGA: The invitation is issued at least 20 days prior to proposed date of the assembly. Within theinvitation the shareholders are informed of business items to be negotiated during the assembly, as well as motions
proposed by the BoD, and by shareholders who have demanded that a given business item be placed on theagenda. Extraordinary General Assemblies (EGAs) are convened as necessary and as defined by legal precedent.
Shareholders representing at least one tenth of total share capital can demand convocation of an EGA at any time.
Composition of the Agenda for the AGA: Shareholders who represent shares with a nominal value of CHF
1,000,000 can demand that a business item is placed on the agenda. This request must be submitted in writing to
the Chairman of the BoD at least 40 days prior to AGA.
Transfer Provisions: There are no ownership nor transfer restrictions for registered or bearer shares. Transfers ofregistered shares must be reported to the Shareholders’ Office of Vetropack Holding Ltd.

76

Corporate GovernanceRegistrations in the Share Register: For the voting right to be exercised, registration must take place at least 20 days
prior to the AGA.
Changes of Control and Defence Measures: There is no statutory regulation in relation to “opting-out” nor “optingup”. There are no clauses on changes of control in favour of members of the BoD nor the MB.
Period of Notice: Fixed-term contracts of MB members may not be longer than one year (cp. article 22 of the articles
of incorporation). Likewise, the period of notice for terminating permanent contracts may not be longer than one year
(cp. article 22 of the articles of incorporation). Permanent contracts of employment with a maximum period of noticeof twelve months have been concluded with the MB members (cp. article 22 of the articles of incorporation).

Auditors
Mandate: Ernst & Young Ltd have been auditors for Vetropack Holding Ltd since 1995. The head auditor has been
responsible for the auditing mandate since 2013. The head auditor is changed every seven years.
Fees: During the year under review, Ernst & Young Ltd invoiced Vetropack Group the sum of CHF 0.4 million forauditing services regarding accounts of individual Group companies as well as consolidated accounts. In 2017,
all affiliates of the Vetropack Group were audited by Ernst & Young Ltd.
Supervisory and Control Instruments Vis-à-Vis the External Auditors: At the ordinary November meeting, theentire BoD reviews the scope and key aspects of the external audit, including key aspects for auditing the internal
control system of the current year. At the ordinary March meeting all BoD members are informed of audit results
both in writing (Auditor's Report, Group Auditor's Report, Management Letter, Explanatory Notes) and verbally(the lead auditor attends the BoD’s March meeting). In February, the main points and results of audits carried out
at subsidiaries are also discussed with auditors at the ordinary meetings of the governing body of each subsidiary.
A member of the BoD is present at these meetings. With the help of the above-mentioned information sources, theBoD annually assesses both the statutory auditors’ and group auditors’ performance and independence during the
March meeting. The BoD annually analyses the development of external audit costs (multiple year comparison).

Information Policy
Vetropack Holding Ltd provides information through the following channels: Annual Report, Annual Press
Conference, Annual General Assembly and Semi-Annual Report. Current information is available via the company’s
website at www.vetropack.com.
Press releases are published under the “News” header (http://www.vetropack.com/en/vetropack/news/).
Under the “Investor Relations” header (http://www.vetropack.com/en/vetropack/investor-relations/
vetropack-in-figures/) key figures, financial publications, financial agenda, news subscription, articles ofincorporation, minutes of the last AGA and contact information are published.
By registering for the newsletter (push mail), one automatically receives an e-mail directing to newly released
investor relations information pages on the company‘s website (http://www.vetropack.com/en/vetropack/investor-relations/news-service/).

Contact Address
Shareholders' Officec/o Vetropack Holding Ltd
PO Box, CH-8180 Bülach, Switzerland
Phone +41 44 863 32 70
Fax +41 44 863 31 25
Corporate Governance77Remuneration Report Vetropack Holding Ltd
1. Introduction
The strategy adopted by Vetropack Group is aimed at ensuring the company’s sustainable long-term development,
taking into account the interests of its stakeholders. Since Vetropack is firmly rooted in local markets, a high degree ofimportance is attached to the specific conditions at individual locations. Vetropack’s remuneration principles
have been drawn up with this in mind; they include a fixed component aligned with local market conditions and an
appropriate variable component, which is performance- and results-related.

2. Principles of the Remuneration Scheme and its Components
Vetropack Group’s remuneration scheme is geared towards its employees’ level of responsibility and experience
as well as local conditions. It is managed and further developed without drawing on any external advice.
Members of the Board of Directors (BoD) receive a fixed cash benefit with no variable components.
Members of the Management Board (MB) receive basic remuneration reflecting their individual responsibility andexperience as well as a variable performance- and results-related component. They are also awarded non-cash benefits
in the form of supplementary pension contributions and a company car, which is also available for their private use.
All remuneration is paid in cash and there are no share or option plans.

3. Organisation and Authorities for Determining Remuneration
The BoD determines the principles underlying its own remuneration scheme as well as that of the MB at the requestof the Nomination and Compensation Committee. It sets remuneration for the BoD and the CEO annually at therequest of the Nomination and Compensation Committee.
The Nomination and Compensation Committee (NCC) consists of three members of the BoD who are electedindividually by the Annual General Assembly each year. The Annual General Assembly of 10 May 2017 elected
Claude R. Cornaz, Richard Fritschi and Rudolf Fischer to the NCC, with the latter being elected its Chairman by the
BoD. The NCC reports on its discussions and decisions and proposes any motions at the next meeting of the entire
BoD. The committee met four times in 2017: March, May, August and November.
The main task of the NCC is to regularly check the BoD’s and MB’s remuneration schemes. The NCC recommends
remuneration proposals for the members of the BoD and the CEO to the entire BoD for resolution, with the CEO
not taking part in discussions concerning his own remuneration. The committee takes independent decisions
regarding the remuneration of the remaining members of the MB at the request of the CEO. The NCC also puts to
the BoD the motions relating to overall remuneration for the BoD and MB that are to be proposed at the Annual
General Assembly. The CEO does not attend meetings at which his remuneration is discussed.
It also prepares the medium- and long-term human resources planning for the members of the BoD and the MB
and submits its proposals to the entire BoD for resolution.

Remuneration Report Vetropack Holding Ltd

79

The Annual General Assembly of Vetropack Holding Ltd votes on the remuneration of the Board of Directors
and the Management Board as follows:– prospectively and separately on the maximum total amount of remuneration for the Board of Directors forthe period until the next Annual General Assembly (cp. article 27 of the company’s articles of incorporation
https://www.vetropack.com/en/vetropack/investor-relations/corporate-governance/).
– prospectively and separately on the maximum total amount of remuneration for the Management Board forthe fiscal year that follows the Annual General Assembly (cp. article 27 of the articles of incorporation).
Article 28 of the articles of incorporation provides for an additional 40% of the amount approved by the Annual
General Assembly for members of the Management Board nominated during the remuneration period.

4. Description of the Remuneration Components

Board of Directors
Members of the BoD receive fixed remuneration in cash, with the Chairman, Vice-Chairman and ordinary members
entitled to different amounts based on a graduated scale. The members of the NCC also receive fixed remuneration in cash for their work on the Committee, with the Chairman and ordinary members likewise entitled todifferent amounts based on a graduated scale. There are no variable components. Remuneration is paid out after
each Annual General Assembly.
Management Board
Members of the MB receive fixed basic remuneration (fixed basic salary), which is commensurate to the level of
responsibility they have in their individual role, their experience and local conditions.
They also receive a variable cash bonus that consists of two parts:– an individual bonus, based on the achievement of individually defined performance goals,– a net result bonus, calculated on the basis of an individually defined per mille rate of the Group’s consolidated
net profit after tax. If the consolidated net profit is lower than 2% of the net revenue, this net result bonus is zero.
When appraising the extent to which individual performance goals have been achieved, the elements that cannot be
quantified are evaluated at the appraiser’s discretion.
The target value for the variable component as a whole, i.e. the individual bonus and net result bonus together,is between 25% and 50% of the basic salary.
It is limited to a maximum of 75% of the basic salary and is paid out in March of the following year after the
Annual Report has been approved by the BoD.

5. Board of Director’s (BoD) Remuneration
Only cash benefits were paid to members of the BoD in 2017. No shares, options, loans and credits, additional
fees or remuneration of any other kind were disbursed to either members of the BoD, former members of the BoDor persons closely associated with them. There are also no outstanding credits or loans.

80

Remuneration Report Vetropack Holding Ltd

2016 BoD Remunerationin CHF
Hans R. Rüegg, Chairman
Richard Fritschi, Vice-Chairman*
Claude R. Cornaz, Member*
Sönke Bandixen, Member
Pascal Cornaz, Member
Rudolf W. Fischer, Member*Jean-Philippe Rochat, Member
Total

Cash
BoD
120 000
85 00061 00061 00061 00061 00061 000510 000

Social Security Contributions

Total

6 465
6 751
4 578
4 493
4 493
5 229
4 493
36 502

126 465
98 41872 24565 49365 49376 22965 493569 836

Social Security Contributions

Total

6 706
7 272
5 006
4 708
4 708
3 895
4 708
3 204
40 207130 039
105 605
78 67368 37568 37582 56268 37546 537648 541

NCC
6 667
6 667

10 00023 3342017 BoD Remunerationin CHF
Hans R. Rüegg, Chairman
Richard Fritschi, Vice-Chairman
Claude R. Cornaz, Member
Sönke Bandixen, Member
Pascal Cornaz, Member
Rudolf W. Fischer, Member
Jean-Philippe Rochat, Member
Urs Kaufmann, Member
Total

Cash
BoD
NCC
123 333
88 333 10 000
63 667 10 000
63 667
63 667
63 667 15 000
63 66743 333573 334 35 000

6. Management Board’s (MB) Remuneration
Only cash benefits were paid to members of the MB in 2017. No shares, options, loans and credits, additional
fees or remuneration of any other kind were disbursed to either members of the MB, former members of the MB or
persons closely associated with them. There are also no outstanding credits or loans.
in CHF
Basic SalaryBonus

Pension/Social
Security
Contributions** Non-cash
Benefits

Total

2016 MB Remuneration
Total MB
Highest level of remuneration *2 009 700
618 240

538 505
181 940644 240
208 140

31 1595 280

3 223 604
1 013 600

2017 MB Remuneration
Total MB
Highest level of remuneration *2 018 390618 240592 117193 306

656 642207 757

32 6505 280

3 299 799
1 024 583

* Claude R. Cornaz, CEO** Company car for personal use

Remuneration Report Vetropack Holding Ltd81

7. Comparison of Remuneration disbursed with the Remuneration approved by the 2016 and 2017
Annual General Assembly
Board of Directors
At the Annual General Assembly on 10 May 2017, the total amount of remuneration on the Board of Directors
was voted and a maximum of CHF 690,000 defined.
Remuneration to the Board of Directors is approved prospectively for the period until the next ordinary Annual
General Assembly in accordance with the articles of incorporation. The table below compares the maximum
amount of remuneration to the Board of Directors approved by the Annual General Assembly with the amounts
actually disbursed in 2017.
in CHF
Approved total remuneration for the BoD from the 2017 AGA until the 2018 AGA
Remuneration disbursed to the BoD in 2017

690 000
648 541

Remuneration
report for the 2017
fiscal year

AGA

Board of Directors

AGA 2019

AGA 2017

AGA 2018

The difference is due to a slight increase in Board of Directors’ fees as well as the addition of a new member of theBoard of Directors and a postponement (see diagram below).

Maximum total amount of
remuneration to the Boardof Directors until the 2019
Annual General Assembly

1.1.2020

1.1.2019

1.1.2018

1.1.2017

DecisionManagement Board
The total remuneration to the Management Board for the 2017 fiscal year (CHF 4,400,000) was approved at the Annual
General Assembly on 11 May 2016. See below a comparison of approved and disbursed remuneration for 2017.
CHF millions
Approved total remuneration for the Management Board for 2017
Remuneration disbursed to the Management Board in 20172017
4 400 000
3 299 799

8. Shareholdings
Information on shares held by members of the Board of Directors and the Management Board can be found in the
Financial Report of Vetropack Holding Ltd on page 65.

82

Remuneration Report Vetropack Holding Ltd

To the General Meeting of Vetropack Holding Ltd, Saint-Prex
Zurich, 14 March 2018
Report of the statutory auditor on the remuneration report
We have audited the remuneration report of Vetropack Holding Ltd for the year ended 31 December 2017. The
audit was limited to the information according to articles 14–16 of the Ordinance against Excessive Compensation in Stock Exchange Listed Companies (Ordinance) on pages 79 to 82 of the remuneration report.
Board of Directors’ responsibility. The Board of Directors is responsible for the preparation and overall fairpresentation of the remuneration report in accordance with Swiss law and the Ordinance. The Board of Directors
is also responsible for designing the remuneration system and defining individual remuneration packages.
Auditor’s responsibility. Our responsibility is to express an opinion on the remuneration report. We conducted
our audit in accordance with Swiss Auditing Standards. Those standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whether the remuneration
report complies with Swiss law and articles 14 – 16 of the Ordinance.
An audit involves performing procedures to obtain audit evidence on the disclosures made in the remuneration
report with regard to compensation, loans and credits in accordance with articles 14 – 16 of the Ordinance.
The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material
misstatements in the remuneration report, whether due to fraud or error. This audit also includes evaluating thereasonableness of the methods applied to value components of remuneration, as well as assessing the overall
presentation of the remuneration report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Opinion. In our opinion, the remuneration report for the year ended 31 December 2017 of Vetropack Holding Ltd
complies with Swiss law and articles 14 – 16 of the Ordinance.

Ernst & Young Ltd
Daniel Zaugg
Licensed audit expert(Auditor in charge)

Marc Hegetschweiler
Licensed audit expert

Remuneration Report Vetropack Holding Ltd

83

84

Organisation

Organisation
Extended Group Management
as per 31 December 2017

Back row: Pavel Prinko, Tihomir Premužak, Gregor Gábel, Christoph Burgermeister
Middle row: Marcello Montisci, David Zak, Elisabeth Boner, Günter Lubitz
Front row: Inge Jost, Johann Reiter, Claude R. Cornaz, Sergio Antoci

Organisation

85

Back row: David Zak, Pavel Prinko, Johann Eggerth, Tihomir Premužak, Elisabeth Boner, Christoph Burgermeister
Front row: Marcello Montisci, Inge Jost, Sergio Antoci, Johann Reiter, Boris Sluka, Günter Lubitz

86

Organisation

Organisation
Extended Group Management
as per 1 March 2018

Organisation

87Organisation as per 1 March 2018

Board of Directors Vetropack Holding Ltd
Hans R. Rüegg, Chairman

Vetropack Group
Johann Reiter, CEO
Corporate Development and Human Resources |Quality and Management Systems
Christoph Burgermeister

Corporate Communications
Elisabeth Boner

Finance | Controlling | IT
David Zak, CFO

Marketing | Sales | Production Planning
Marcello Montisci

Techniques | Production | Procurement
Günter Lubitz

88

Organisation

Italy
Sergio Antoci

UkrainePavel Prinko

Croatia
Tihomir Premužak

Czech Republic | Slovakia
Boris Sluka

Switzerland | Austria
Johann Eggerth

Internal Audit | Compliance | Legal Affairs
Inge Jost

Group Management Board
Johann Reiter, CEODavid Zak, CFO
Günter Lubitz
Johann Eggerth
Marcello Montisci
Finance, Controlling and IT
David Zak
– Shared Service Centre Switzerland Christian Trösch– Group Controlling and Accounting Adriano Melchioretto– IT
Bruno Hennig
Marketing, Sales and Production Planning
Marcello Montisci
Techniques, Production and Procurement
Günter Lubitz– Procurement
Ulrich Ruberg
Corporate Development and Human Resources
Quality and Management Systems
Christoph Burgermeister– Quality Management
Andrea Steinlein– Quality Assurance
Christoph Böwing
Corporate Communications
Elisabeth Boner
Internal Audit, Compliance, Legal Affairs
Inge Jost
Business Division Switzerland/Austria
Johann Eggerth
Marketing + Sales
Herbert Kühberger– Switzerland
Christine Arnet– Austria
Herbert Kühberger– Export Europe West
Leopold Siegel
Finance + Administration
Bernhard Karrer
Supply Chain
Werner Schaumberger
TechniquesThomas Poxleitner– St-Prex Plant
Philippe Clerc– Pöchlarn and Kremsmünster Plant Thomas PoxleitnerBusiness Division Czech Republic/Slovakia
Boris Sluka
Marketing + Sales
Dana Švejcarová– Czech RepublicDana Švejcarová– Slovakia
Zuzana Hudecová– Export Europe East
Vlastimil Ostrezi
Logistics
Jaroslav MiklišTechniques
Miroslav Šebík
Kyjov Plant– Production
Antonín Pres– Finance
Milan Kucharčík
Nemšová Plant– Production
Roman Fait
– Finance
Eva Vanková
Business Division Croatia
Tihomir Premužak
Marketing + Sales
Logistics
Finance
Personnel
Production
Techniques

Darko Šlogar
Robert Vražić
Marija Špiljak
Damir Gorup
Josip Šolman
Velimir Mrkus

Business Division Ukraine
Pavel PrinkoMarketing + Sales
Logistics
Finance
Personnel
Production
Techniques

Hennadiy Arsiriy
Vladimir Lysenko
Nataliia Bukreieva
Maria Dukhenko
Roman Yatsuk
Mikola Marchenko

Business Division Italy
Sergio Antoci
Marketing + Sales
Supply Chain
Finance
Personnel
Production
Techniques

Giusi Cremonesi
Luca Marini
Alberto Borroni
Annalisa Girardi
Davide Barenghi
Ruggero SperaGroup Companies
Vetroconsult Ltd
Müller + Krempel Ltd
Vetroreal Ltd

Günter Lubitz
Mark Isler
Fabian Rittener

Organisation89

Vetropack Glassworks

90

St-Prex Plant, Switzerland

Pöchlarn Plant, Austria

Kremsmünster Plant, Austria

Kyjov Plant, Czech Republic

Nemšová Plant, Slovakia

Hum na Sutli Plant, Croatia

Gostomel Plant, Ukraine

Trezzano sul Naviglio Plant, Italy

Vetropack- Glassworks

Published by
Overall Responsibility and Concept: Vetropack Holding Ltd, Bülach
Design: Arnold & Braun Grafik Design, Luzern
Photography: Emanuel Ammon, Luzern, Béatrice Devènes, Bern, Daniel Meyer, Luzern
Printing: Kalt Medien AG, Zug
Languages: This publication is available in the original legallybinding German version, as well as in the translated English version.
Copyright Reproduction, either partial or in full, is permitted only
if the source is cited. A specimen copy is requested.
Additional copies of this report are available at the postal address
mentioned on the reverse side or may be downloaded from theInternet site www.vetropack.com

Vetropack Holding Ltd
CH-8180 Bülach
Phone +41 44 863 31 31
Fax +41 44 863 31 21
www.vetropack.com

Vetropack Nemšová s.r.o.
SK-914 41 Nemšová
Phone +421 32 6557 111

Group Companies

Vetropack Straža d.d.
HR-49231 Hum na Sutli
Phone +385 49 326 326
Fax +385 49 341 041

Vetropack Ltd
CH-8180 Bülach
Phone +41 44 863 34 34
Fax +41 44 863 31 23

PrJSC Vetropack Gostomel
UA-08290 Gostomel
Phone +380 44 392 41 00
Fax +380 4597 311 35

CH-1162 St-Prex
Phone +41 21 823 13 13
Fax +41 21 823 13 10

Vetropack Italia S.r.l.
IT-20090 Trezzano sul Naviglio
Phone +39 02 458771
Fax +39 02 45877714

Vetropack Austria Holding AG
AT-3380 Pöchlarn
Phone +43 2757 7541
Fax +43 2757 7541 202
Vetropack Austria GmbH
AT-3380 Pöchlarn
Phone +43 2757 7541
Fax +43 2757 7541 202
AT-4550 Kremsmünster
Phone +43 7583 5361
Fax +43 7583 5361 112
Vetropack Moravia Glass, a.s.
CZ-697 01 Kyjov
Phone +420 518 733 111

Müller+Krempel Ltd
CH-8180 Bülach
Phone +41 44 863 35 35
Fax +41 44 863 31 24
Vetroconsult Ltd
CH-8180 Bülach
Phone +41 44 863 32 32
Fax +41 44 863 31 22
Vetroreal Ltd
CH-8180 Bülach
Phone +41 44 863 33 33
Fax +41 44 863 31 30