a n n Ua l r e P o r t 2 013

insPireD By efficiency

highlights 2013

Solid sales growth in the americas by 20.4 %And asia-Pacific by 27.8 %RiSe in eBitDa margin to 14.3 %Us acqUisition Portec SucceSSfully integRAted
inteRRoll sUBsiDiary in italy eStAbliShed

Contents

Contents

Annual review

2Interroll on the capital market

4

Report by the Board of Directors and Group Management

6Group Management

10

Our business

12

Overview of financial position, earnings and cash flows

14

Overview by product groups

16

Overview by region18

Non-financial performance indicators

20

Interview: “Seizing our opportunities worldwide”

24

Momentum for our growth29

Corporate Governance

55

Financial statements of Interroll Group75

Financial statements of Interroll Holding Ltd.

143

1

Key figUres
2013

2012

2011

2010

2009

Total incoming orders

318.8

302.6

288.7

285.2

238.9

Drives

109.4

99.3

95.1

97.9

82.9

in CHF million, if not stated differently

Incoming orders/net sales

Rollers

75.4

80.4

83.2

79.2

73.3

Conveyors & Sorters

71.2

69.3

42.8

52.1

33.6

Pallet & Carton Flow

60.3

58.1

50.8

53.9

44.3

Total net sales

316.3

307.2

271.9

283.1

234.0

Profitability
EBITDA

45.4

41.1

36.2

35.8

18.8

in % of net sales

14.3

13.4

13.3

12.6

8.0

EBITA

34.0

30.3

25.7

24.8

8.0

in % of net sales

10.7

9.9

9.5

8.8

3.4

EBIT

27.2

24.8

20.4

20.4

3.1

in % of net sales

8.6

8.1

7.5

7.2

1.3

Net profit

20.5

19.4

18.2

14.4

5.7

in % of net sales

6.5

6.3

6.7

5.1

2.4

20.4

Cash flow
Operating cash flow

44.5

38.2

14.5

18.7

in % of net sales

14.1

12.4

5.3

6.6

8.7

Free cash flow

5.0

30.2

–5.6

–8.5

–6.0

in % of net sales

1.6

9.8

–2.1

–3.0

–2.6

Total investments/capital expenditure

39.8

10.6

19.6

26.4

22.9

Total assets

258.2

227.6

239.2

211.3

215.7

Goodwill

16.0

9.0

9.0

9.3

11.0

Net financial assets (debts)

Balance sheet (31.12.)

20.2

8.7

–17.6

–12.9

–4.2

Gearing (net debt/equity)

–

–

0.12

0.10

0.03

Indebtedness factor (net debt/cash flow)

–

–

1.21

0.69

0.20

Equity

187.2

157.6

143.3

127.5

133.0

Equity ratio (equity in % of assets)

72.5

69.3

59.9

60.3

61.7

Return on equity (in %)

11.9

12.8

13.4

11.1

4.3

Other key figures
RONA (Return on Net Assets, in %)

12.2

12.6

9.9

10.4

1.6

Average number of employees

1 488

1 420

1 340

1 255

1 206

Net sales per employee (in thousands CHF)

213

216

203

226

194

Productivity (Added value/total personnel expenses)

1.95

1.92

1.77

1.98

1.66

aBoUt interroll
Interroll Group is a worldwide leading provider of high-quality key products and services for internal logistics.
The company offers a broad product range in the four product groups “Rollers”, “Drives”,“Conveyors & Sorters” and “Pallet & Carton Flow” to around 23,000 customers around the world.
Core industries are courier, parcel, express and postal services, airports, food processing as well as distribution
centres. Customers are amongst others well-known global brands such as Amazon, Bosch, Coca-Cola, Coop,
DHL, FedEx, Peugeot, PepsiCo, Procter & Gamble, Siemens, Walmart or Yamaha.
Interroll is engaged in global research projects on logistics efficiency and actively supports industry
associations in developing standards. Headquartered in Sant’Antonino, Switzerland, Interroll operates aworldwide network of 31 companies with around 1,600 employees. The company was founded 1959. Since
1997, Interroll Group has been listed on the SIX Swiss Exchange and included in the SPI index.
www.interroll.com

Interroll product groups
Rollers

DrivesConveyors & Sorters

Pallet & Carton Flow

AnnuAl Review

AnnuAl Review

Q1|2013
ThailandMajor order for a modern dynamic storage system
by Red Bull

Innovation
Magnetic speed controller introduced to the market

Q2|2013
Italy
Opening of new Interroll subsidiary

RussiaDaifuku placed major order for a modern sorter

Germany
International in-house exhibition attended by Ex-Formula-1
driver Heinz-Harald Frentzen in Wermelskirchen was highly

Switzerland
Coop benefits from space and energy-saving dynamic
storage system in Pearlwater Mineralquellen bottling centre

2

successful

AnnuAl Review

Q3|2013
Asia
Dr. Ben Xia appointed as Executive Vice President Asia
and Member of Group Management

Q4|2013
USA
New regional Centre of Excellence in Atlanta completed

USA
Acquisition of Portec Inc., the leading US supplierof belt curves

Innovation
Synchronous drum motor received EHEDG certificate

Germany

Spain

White paper by the Karlsruhe Institute for Technology (KIT)Interroll recognised in the category “Mejor Empresa Logistica

analysed efficiency gains of 24 volt drive technology

Internacional” at the Salon Internacional de la Logistica y de la
Manutencion (SIL)

China
MM Enery Savings Award from the Chinese edition of the
trade magazine Maschinen-Markt received3

i n t e R R o l l o n t h e C A p i tA l m A R k e t

inteRRoll on the CApitAl mARket

Volatility a major feature ofinternational equity markets

30 December 2013 was CHF 490.00. The stock was therefore

Taken overall, the European financial markets experienced

mance reflects the company’s fundamentally sound position.

47.1% up on the 2012 year-end price. This excellent perfor-

positive growth from the beginning of the year, even though
there were occasional reversals. On the one hand, equity mar-

Based on these figures, Interroll shares clearly outperformed

kets were bolstered by the monetary policy of the US Federal

the SPI Index, which on 30 December 2013 stood at 7,838

Reserve (FED). On the other, occasionally weak economic data

points, just 24.6% above the 2012 year-end figure of 6,290

from some European countries depressed the mood.

points.

But while some European stock markets were only moving

Stable shareholder structure

sideways, there were significant gains on the Swiss equity

Around 26% of Interroll shares are held by the founding

market in 2013. From the beginning of the year, the SMI Index

family Specht and another main shareholder. As at 31 Decem-rose by around 20%.

ber 2013, members of the Group management held a total of
2.3% of the shares. Information about the significant share-

Forward momentum for Interroll stock

holders can be found on page 148. Based on the SIX defini-Interroll shares experienced a very strong upward trend

tion, the company’s free-float is around 56%.

in 2013. They opened in January at CHF 333.00 and rosesignificantly over the course of the year. The closing price on

Share price performance Interroll

Shareholder structure in % as at 31 December 2013

© Swissquote50.15 %

500

42.64 %

475

35.14 %

450

Fixed
shareholdings 44%

27.63 %

425

Free-float 56%

20.12 %

400

12.61 %

375

5.11 %

350

0%

325

2013

Feb.

Interroll share

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Geographical distribution of the identified
shareholder base as per stock register in % as
at 31 December 2013

SPI/SXGE Share price on 28.12.2012: CHF 333,– Share price on 30.12.2013: CHF 490,–

Switzerland 68.5%
EMEA region excluding
Switzerland 30.2%
Rest of world 1.3%

4

i n t e R R o l l o n t h e C A p i tA l m A R k e t

Active investor relations work

Those interested in our company’s performance can register

In 2013, we continued to pursue our goal of raising the profileon our website www.interroll.com (Investor Relations section)of Interroll globally and consolidating and developing thefor our mailing list or request our standard publications. We

perception of Interroll as an attractive growth stock. Throughalso publish information about Interroll’s share performance.

continuous and reliable communication with institutional

Financial reports and presentations are available for down-

and private investors as well as analysts, we are committed toload and all key financial market dates and details of contact

supporting Interroll’s strategic orientation, which is geared

persons can also be found here.

to sustainable growth and sustainable margins. Our aim is toincrease confidence in our stock and to achieve a realistic andfair valuation.

Investor Information
2013

2012

2011

2010

2009

Number of registered shares

854 000

854 000

854 000

854 000

854 000

Number of average outstanding shares

826 920799 090791 452775 724

771 475

Number of outstanding shares as at 31.12.

850 151

802 282793 901

779 600

771 775
320

Information on the Interroll share

Share price: highest

CHF

490

360

450

371

Share price: lowest

CHF

333

270

271

267

173

Share price: per 31.12.

CHF

490

333

279

368

307

Mio. CHF

416.57267.16221.50286.89236.55Market capitalization as at 31.12.
Par value as at 31.12.

CHF

10.00

10.00

10.00

10.00

15.00

Reduction of par value

CHF

–

–

–

–

5.00

Distribution out of reserves from capital contributions*

CHF

8.80

8.00

7.00

5.00

–

35.43

32.98

30.45

26.89

67.48

24.84

24.25

22.99

18.59

7.41

19.73

13.72

12.14

19.79

41.37

Pay out ratio
Earnings per average share outstanding

CHF

P/E Ratio
Cash f low per average share outstanding

CHF

53.79

47.78

18.34

24.09

26.43

Equity per share outstanding as at 31.12.

CHF

220.25

198.64180.48163.49172.36* The distribution out of reserves from capital contributions in the year under review is proposed by the Board of Directors to the annual general assembly on 9 May 2014.

Stock market launch: 1997 | Stock exchange: SIX Swiss Exchange | Market segment: Main Standard | Indices: SPI
ISIN: CH0006372897 | Security symbol: INRN | Security number: 637289

5

RepoRt by the boARd of diReCtoRs And GRoup mAnAGement

RepoRt by the boARd of diReCtoRs
And GRoup mAnAGement

Dear Shareholders and Business Partners,
An exciting year 2013 lies behind us. The global market forinternal logistics solutions has developed quite differently ineconomic terms and shown a completely different level ofgrowth momentum in parts of South America and Asia as inEurope or the USA. The markets are influenced by megatrends,
such as demographic development, increasing individualisation of customer needs, more distinct networking due totechnological advances and growing environmental awareness.

Solid and strong
Kurt Rudolf
Chairman of the Board of Directors

We, the Interroll Group, intend to play a more influential partin these developments. We are investing. We are engaging inchange. At the same time, however, we also place a great dealof importance on retaining things that have proven themselves.
And, we do all of this from a position of economic strength.
We have a solid balance sheet and are profitable. Here, we
benefit from our strategic global position as a full-scale, neutral
supplier of key products for use in internal logistics. Today, ourproducts can be found in 6 out of 10 supermarkets, and 80% of
the world‘s airports. Customers like Red Bull, Coop, Amazon,
Pepsi-Cola, Zalando, UPS, Hugo Boss and many others use our
products on a daily basis.

Paul Zumbühl
CEO“In 2013, Interroll increased sales by 3.0% to
CHF 316.3 million and the order intake by
5.4% to CHF 318.8 million. EBITDA roseby 10.4% to CHF 45.4 million and thus
exceeded last year’s high level. We increased
our operating profit (EBIT) by 9.6% to
CHF 27.2 million.”6

RepoRt by the boARd of diReCtoRs And GRoup mAnAGement

Growing profitably
We concluded financial year 2013 with solid earnings,
increasing our sales by 3.0% to CHF 316.3 million and ourorder intake by 5.4% to CHF 318.8 million. EBITDA rose by
10.4% to CHF 45.4 million and thus exceeded last year’s highlevel. Furthermore, we managed to significantly increase our
EBITDA margin of 13.4% to 14.3%. We increased our operating profit (EBIT) by 9.6% to CHF 27.2 million.

“Today, our products can be foundin 6 out of 10 supermarkets,and 80% of the world‘s airports.
Customers like Red Bull, Coop,
Amazon, Pepsi-Cola, Zalando,
UPS, Hugo Boss and many others
use our products on a daily basis.”Due to our strong net earnings, we will be proposing an
increased distribution of reserves from capital contributionsof CHF 8.80 (2012: CHF 8.00) to you, dear shareholders, atyear 2013. We would thus like you to have a share in the

Acquisition of Portec gives us accessto a new group of customers

company’s success without sacrificing the funds that will be

For example, we put our second regional US Centre of Excel-

needed to fuel our future growth.

lence in Atlanta into operation as planned. This has allowed us

our Annual General Meeting on 9 May 2014 for financial

to further complement our dynamic storage solution and otherWe will continue to pay close attention to maintaining a strong

conveyor technology product lines that we manufacture locally.

balance sheet and a solid financial condition. Our goal is a highMoreover, we have taken yet another strategic step in thislevel of equity with sufficient liquidity. Here, we would like toimportant market with the acquisition of Portec. Portec notpoint to our net financial assets of CHF 20.2 million despite

only extends our offerings with respect to highly efficient belt

having paid for the Portec acquisition, ongoing investments

curves and other conveyor solutions, but also provides us withand the dividend.

access to new groups of customers, particularly in the USA.

Strengthening our international presence

Harmonizing processes worldwide

The year 2013 has shown that we are able to partially compen-

We also implemented our new, global SAP process platform

sate for negative developments in individual markets thanks toat our site in China as planned. As in 2012, continued imple-

our broad diversification into various customer segments andmentation of SAP also ranked among our most importantregional markets. In addition, we have taken advantage of thestrategic projects in 2013. By harmonising processes andopportunity to further improve our market position throughdata, we are able to serve our customers even more efficiently

the Portec acquisition in the USA and by setting up a new sub-and roll out new products on a global basis. By doing so,sidiary in Italy. We also now cover Portugal on our own.

we increased our productivity and strengthened our market
position relative to our competition.

Last year, we made a good deal of progress in pursuing manyof the areas that we had referred to in our Annual Report 2012.

7

RepoRt by the boARd of diReCtoRs And GRoup mAnAGement“Our strong growth inAmerica and the AsiaPacific region lowers ourdependence on the European
market. We see excellent
chances of generating morethan half of our businessoutside Europe only a few
years from now.”

Outlook
The economic environment will remain challenging in 2014.
We will need to prepare ourselves to face tougher global competition and rising demands from our customers. Nevertheless,our outlook for the future remains optimistic.
At the international level, our growth will continue to be
fuelled by several sources. On the one hand, we will continue
to benefit from the dynamics of economies above all in the
Asia-Pacific region. Therefore, we are planning to continue
expanding our sales activities in this region. Furthermore, ourgoal is to continue to grow organically, but also to strengthen
our market position through acquisitions when occasions
arise.
And, not to forget: our largest product introduction in thehistory of Interroll – our new, global module platform for

The fact that we have received six orders from Red Bull inconveyor technology – is scheduled for 2014.

Thailand, three of which in 2013 alone, also deserves special
mention. We signed our largest pallet flow order with thiscustomer that is worth around CHF 6.5 million at the beginning of 2013 and this distribution centre had already been put
into operation at the end of the year. The repeat orders fromRed Bull show how satisfied they are with our solutions.
Dr. Ben Xia joined the Group management team in July 2013.
With him, a distinguished expert on material handling hastaken over management of our Asian business. We plan tocontinue expanding our business activities in Asia and benefit
from the above-average development in these markets. Dr. Xia
will concentrate primarily on expanding our market positionin the core industries airports, distribution centres, postal andcourier services and the consumer goods industry while leveraging the growth potential in China, North Asia, Thailand,
Indonesia and the Philippines.
All in all, our Company continues to rest on a strong and solid
foundation. And we want this to stay that way. With that inmind, let us now take a look to what the future has in store
for us.

8“The global availability of our
products, our proven quality andour short delivery times as well as
our ever stronger presence in theimportant economic regions of theworld and ultimately our leading
market and technology position in
the field of internal logistics willcontinue to form the basis of our
success in the future as well.”RepoRt by the boARd of diReCtoRs And GRoup mAnAGement

Basis of further growth

Our strong growth in America and the Asia-Pacific region low-

The global availability of our products, our proven quality anders our dependence on the European market. We see excellent

our short delivery times as well as our ever stronger presence

chances of generating more than half of our business outside

in the important economic regions of the world and ultimately

Europe only a few years from now.

our leading market and technology position in the field of
in the future as well. We intend to continue driving Interroll’s

Owing our thanks to our employees,
customers and shareholders

growth on this basis in the future. Our successful cooperation

Here, we continue to count on the know-how and dedication

with the ten largest system integrators in the world and ourof our employees. We would like to thank all of our employees

understanding of customer demands in the regional markets

for contributing to Interroll’s continued market success andwill generate additional revenue. Even if these orders are

growth. We also thank our customers, suppliers and investors

handled by our partners, they often result out of the fact thatfor their trust in our company.

internal logistics will continue to form the basis of our successcustomers, such as Amazon, Red Bull and Walmart rely on
proven Interroll products and specify them. We are interna-

Our thanks also go out to you, dear shareholders, for yourtionally recognised as an expert in the field of internal logistics

loyalty. We will continue to develop our strategy in a consistentand our expertise is appreciated whenever new approaches tomanner and convince you of our performance.

internal logistics need to be developed and customers must
make decisions.

Kurt Rudolf
Chairman of the Board of Directors

Sant’Antonino, 21 March 2014

Paul Zumbühl
CEO
Chief Executive Officer

9GRoup mAnAGement

Dr. Christoph Reinkemeier
Executive Vice President
Global Sales & Service

10

Tim McGill
Executive Vice President
AmericasPaul Zumbühl
Chief Executive Officer(CEO)GRoup mAnAGement

Daniel Bättig
Chief Financial Officer(CFO)

Dr. Ralf Garlichs
Executive Vice President
Products & Technology

Jens Karolyi
Vice President
Corporate Marketing

Dr. Ben Xia
Executive Vice President
Asia

11

ouR businessouR businessLeading supplier of products
to attractive end-markets

product management as well as global purchasing. Committed to

We are a global market leader and technological front runnerare strongly positioned in virtually all key markets with our Cen-in key products and services for internal logistics – fromtres of Excellence in Europe, the USA and Asia. For more details,

totes and cartons to pallets and loose goods. Within our four

please refer to our Corporate Governance report on page 60.

maintaining a global presence that is unique in our industry, we

product groups – Rollers (conveyor rollers), Drives (motors
sorter systems) and Pallet & Carton Flow (dynamic storage)

We create added value through our experience,technological expertise and talent for innovation– we supply some 23,000 customers around the world with

As a strategic partner to our customers, we deliver solutions

high-quality products and solutions that in many cases arethat meet their application requirements through a global

critical to efficient operations.

product platform. In doing so, we draw on our expertise andand drives for conveyors), Conveyors & Sorters (conveyor andin-depth knowledge of the needs of the market. We apply subThe Interroll Group has a market reputation centred aroundstantial understanding of products and deep know-how of pro-decades of expertise, high added value for customers, global

duction technology and guarantee exceptionally fast delivery

availability of consistently high-quality products and fasttimes. System integrators on the other hand have experience indelivery times. This combination forms the basis for strong

project management and knowledge of material flows at end

customer satisfaction and provides the foundation for successuser companies.

in our business over the long term.
Creating benefits for the end user is our central priority, andOur “Global Sales & Service” division consistently markets ourour products deliver a return on investment after two years on

entire product range according to the needs of our customer

average. This is one of the reasons why they are often specified

groups – Original Equipment Manufacturers (OEMs), systemby the end user.

integrators and end customers – and is responsible for 18 own
sales and service units worldwide. Meanwhile, our Products

Our power of innovation is substantiated and our prominent& Technology division comprises seven global Centres oftechnological position within the global market is secured by

Excellence, four regional Centres of Excellence and three othermore than 341 active patents and utility models around the

production sites; it is responsible for research and development,

world.

Delivery of products
for internal logistics

Delivery ofoverall systems
Original equipment
manufacturer/
system integratOr

interrOll

Orders for Interroll

Orders for Original Equipment
Manufacturer (OEM)/ system integrator

Marketing activity, also aiming at being
specified by end user

12

end user** In particular:– Courier, express, parcel– Airport logistics– Food processing industry– Distribution

ouR businessother postal services, airports, food processing and distribution

Successful organic growth and selective
acquisitions to raise value

as well as branches of industry that require internal logistics.

We are pursuing a strategy of organic growth and incorpo-

Our products include easy-to-integrate drive solutions such as

rating targeted acquisitions. To boost organic growth, we are

drum motors for belt conveyors, conveyor rollers and directcontinually seeking to expand application solutions for existing

current (DC) drive rollers for roller conveyors, zero-energy

clients while identifying and securing new customers andflow storage modules for compact pallet/tote storage systems at

geographical markets (see section 'Momentum for our growth'

distribution centres, crossbelt sorters and belt curves.

on page 29).

Megatrends favour the long-term deploymentof our products and solutions

Select acquisitions aimed at complementing internal growth

Customer requirements continue to progress at pace withinlong term. We keep a close eye on the market for internal

our various markets. Change is driven on the one hand bylogistics and apply strict criteria as we identify and evaluate

evolving needs such as greater product diversity, less packaging

possible acquisition targets. All companies previously acquired

and simpler operation of products in the conveying process;were quickly incorporated into the Interroll Group, whereon the other hand, megatrends like globalisation and urbani-

they began making consistent contributions to our sales andsation, more pronounced networking, rising mobility and theearnings figures from the outset. Future acquisitions will

greater differentiation of our customers and their clients withinconsolidate Interroll's regional presence, expand our productour defined target markets continually present us with new

portfolio, improve access to customers and help to unlock

challenges. Against this backdrop, we are proactively sup-synergies. We are well placed to benefit from the fragmentation

porting customers with a broad range of proven, tailor-madeof the market.

We are focused on the core industries of courier, express andsolutions; at the same time we are enhancing existing products

are another integral feature of our expansion strategy for theto the section 'Momentum for our growth' on page 29 of thisWe are continually optimising our production
processes and cost structures

report.

Our strategic goals are to position ourselves as the clear tech-and investing in the development of new products. Please refernological front runner and global market leader in internal

Our success factors are a global presence,
proven reliability and a talent for innovation

logistics, while steadily increasing market share. In pursuing

Our aim is to expand our presence within existing markets

cash flow. We support and monitor progress through a wide

while moving into emerging markets that offer attractive

range of measures that include cost discipline and continual

growth potential. In emerging markets, we perceive opportu-

improvements to processes across all functions and regions. In

nities for growth stemming from the burgeoning buying power

2006, we introduced the Interroll Production System (IPS) onof the middle class, the resultant rise in industrial production,

the basis of Kaizen, the management method inherited fromincreasing automation and the greater need for investment

the Japanese automobile industry. The integrated approach ofin the logistics area. To capitalise on this potential, we are

Kaizen draws together the whole workforce and every aspectutilising the production and marketing presence we haveof a company that impacts the bottom line – including logis-

steadily built up throughout these markets over recent years

tics, safety, quality, costs, technology and the environment.

(see section 'Operational management structure' on page 58).

It also takes account of suppliers and customers. Under thisAmong the emerging market nations, we focus mainly on

dynamic concept, profitability is enshrined as part of the pro-

China, Southeast Asia and Brazil.

cess. Over the long term, we want to maintain and expand ourthese aims, we achieve high profitability and strengthen ourhealthy margin. To remain competitive, we will also continue
to pursue the Cost Fitness Programme that we launched in
2013.

13

Review of the finAnCiAl yeAR

oveRview of finAnCiAl position, eARninGs And CAsh flows

Significant events for business development

Earnings before interest and taxes (EBIT) climbed fromIn July 2013, we acquired Portec Inc., Canõn City, USA. Portec

CHF 24.8 million to CHF 27.2 million, i.e. by 9.6%, while theis a leading supplier of belt curves. In the air transportation

EBIT margin for 2013 was 8.6%, compared to 8.1% in 2012.

sector, its products are deployed at around 70% of US airports

In the financial year 2013, we accounted for amortisation of– especially in the area of baggage handling, as for example

CHF 3.8 million in respect of SAP; the corresponding figure

at O’Hare Airport in Chicago or San Francisco Internationalfor 2012 was CHF 2.9 million.

Airport. Portec products are also installed by goods distribution
centres as well as courier and postal service providers such as

Compared to the previous year’s figure of CHF 19.4 million,

UPS and Fedex. The acquisition has enhanced our global range

net profit increased by 6.4% to CHF 20.5 million.

in the area of highly efficient belt curves and other conveying
solutions while consolidating our market presence in North

We were not only able to maintain margin levels, but thanks

America. Thanks to Portec's technological expertise in belt

to our Cost Fitness programme we also managed to absorb

conveying solutions for moderately heavy to heavy generalconsiderable incremental costs linked to the establishment ofcargo, we will open up new application fields for our customers

the regional Centre of Excellence in Atlanta and the develop-

around the globe.

ment of the new modular platform for conveyor technology.

Dynamic growth in logistics area has positive
impact on order intake and revenue

Net sales

Order intake increased by 5.4%, from CHF 302.6 million in+3.0 %

2012 to CHF 318.8 million in 2013. As a result, we were able toraise net sales to CHF 316.3 million, 3.0% up on the previous
year’s healthy figure of CHF 307.2 million. The increase was

283.1

271.9

2010

2011

234.0

307.2

316.3

2012

2013

19.4

20.5

2012

2013

attributable to both organic revenue growth of 1.2% as well as
the successful acquisition and integration of Portec, adjusted
for minor divestments in Europe.
2009

In terms of local currency, order intake rose by 5.6% and net

in million CHF

sales by 3.1%.
Since our production facilities are located in the respective
markets they serve, costs accrue in the currency in which we
generate sales. For this reason, it is possible to compensate for

Net profit+6.0 %

currency effects, which play a secondary role for our company.

Earnings increased on high level
Earnings before interest, taxes, depreciation and amortisation

18.2

14.4
5.7

(EBITDA) rose by 10.4%, from CHF 41.1 million in 2012 to14

CHF 45.4 million in 2013; the EBITDA margin increased from2009

13.4% to 14.3%.

in million CHF

2010

2011

Review of the finAnCiAl yeAR

Total assets reflect expansion and acquisition
Total assets rose to CHF 258.2 million as at 31 December 2013,

Strong cash flow underlines
sound financial position

13.5% above the value on the last day of 2012 (CHF 227.6

In 2013, we succeeded in generating a healthy operating

million). The increase was due to the acquisition of Portec as

cash flow of CHF 44.5 million. This was mainly due to solid

well as various asset additions. The initial inclusion of Portec

operating profit and further improvement to current assets.

in Interroll’s scope of consolidation and the impact of this on
assets and liabilities are shown in the notes to the consolidated

Our investments of CHF 16.2 million (CHF 10.6 million inbalance sheet starting at page 103.

the prior year) were mainly devoted to expansion of the new
regional Centre of Excellence in Atlanta, USA, as well as the

Shareholders’ equity as at 31 December 2013 was CHF 187.2

extension and modernisation of machine assets. Additionally,

million, 18.8% higher than the figure of CHF 157.6 million

we invested CHF 23.7 million net in the acquisition of Portec.

recorded as at 31 December 2012. The main factor behind the

Despite the substantial investment level, we managed toincrease was net profit; on the other hand, the distribution ofgenerate free cash flow of CHF 5.0 million in 2013.

reserves from capital contributions served to reduce equity.
The equity ratio thus stood at 72.5%, compared to 69.3% as at
31 December 2012.
In spite of the Portec acquisition in July 2013, which was paid
from cash and cash equivalents, net financial assets remained
well within positive territory at CHF 20.2 million.

EBITDA

EBIT+10.4 %
35.8
12.6%

41.1
13.4%

36.2
13.3%

45.4
14.3%

18.8
8.0%

2009

2010

2012

2011

2013

20.4
7.2%

2009

2010

2011

in million CHF or in % () of net sales

Equity

27.2
8.6%

2012

2013

) of net sales

Operating cash flow

+18.8 %

2009

20.4
7.2%

24.8
8.1%

3.1
1.3%

in million CHF or in % (

133
61.7%

+9.6 %

127.5
60.3%

2010

157.6
69.3%

143.3
59.9%

2012

2011

in million CHF/equity ratio (

)

187.2
72.5%

2013

+16.5 %
38.2
20.4

18.7

2009

2010

44.5

14.5

2011

2012

2013

in million CHF

15

oveRview by pRoduCt GRoup

oveRview by pRoduCt GRoup

Product group “Drives”

costs, operational downtime, energy consumption and noise

The Drives product group successfully grew by 10.2%, fromlevels in pneumatic conveying devices. Upgrading to Interroll’s

CHF 99.3 million in 2012 to CHF 109.4 million, while order

RollerDrive technology generated considerable advantages

intake increased from CHF 99.9 million to CHF 109.6 million.

for Triumph, including energy savings of 50% and clear noise

A number of factors contributed to this promising perfor-

reduction of 18%.

mance. Further technical improvements to our SynchronousDrum Motor have led to strong demand in conveying areas not

Product group “Rollers”

previously open to us.

Net sales for the Rollers product group stood at CHF 75.4
million, 6.2% down on the previous year’s figure of CHF 80.4

Given the trend towards greater flexibility and energy savings

million. Order intake in 2013 was CHF 75.1 million, comparedin conveyor systems, 24 volt technology has extensively

to CHF 80.8 million in 2012.

assumed greater importance throughout the market. Offering
a range of benefits, this technology was specifically chosen for

Although a number of important projects which served toseveral new installations and many retrofitting projects. We

increase volume significantly in the prior year were absent inare the only supplier offering this broad range of RollerDrives,

2013, we were able to gain market share for our pallet rollers inwhich includes powered rollers and control systems as well assome countries.

complete modular solutions for simple installations.
We were also able to increase turnover in Eastern Europe by
In Thailand, we introduced a drum motor campaign, as part ofwhich business partners and consumers were invited to share

12% by gaining new customers.

technological and application expertise in the field of food

Product group “Conveyors & Sorters”

production.

The Conveyors & Sorters product group managed to exceed
the high sales level of the previous year to stand at CHF 71.2

16

In Europe, meanwhile, amongst other projects we supplied amillion, 2.6% up on the 2012 figure of CHF 69.3 million. Ordernew logistics platform solution for Triumph International inintake stood at CHF 70.3 million, compared to CHF 63.9

the French town of Obernai; the solution significantly reduces

million in 2012.

Sales Drives

Sales Rollers

Sales Conveyors & Sorters

Sales Pallet & Carton Flow

Chf 109.4 million

Chf 75.4 million

Chf 71.2 million

Chf 60.3 million

References:

References:

References:

References:itab

dematic

AmazonCoca-Colasmiths detection

knapp

China post

first Quality tissue

triumph internationalssi schäfer

fedex

procter & Gamble

villeroy & bochtGwhugo boss

Red bull

walmartvanderlandesmiths detection

yamahaoveRview by pRoduCt GRoup

This performance was attributable to a clear trend towards

Early in 2013, we concluded our biggest pallet flow order toautomation, driven mainly by e-commerce and ergonomics indate, as Red Bull in Thailand invested CHF 6.5 million in pallet

the working environment. The more goods are sold online, theflow technology to expand its regional distribution centre.

more flexibility and speed are needed by trading companies.

In total, we secured three pallet flow orders from Red Bull in

Company management teams are thus required to improve

Thailand in 2013.

ergonomic and safety conditions at work with a view to minimising unproductive incidents. We have received promising

In Korea, meanwhile, we received an order regarding a distri-orders for our sorters not just from Europe and the USA but

bution centre for noodle dishes from a new client.

also from Japan, Russia, Brazil, Korea and China.
In undertaking the installation of a complex logistical solution,
In June 2013, for example, we received an order from thewe successfully negotiated a challenging construction phase to

Japanese logistics supplier Daifuku for an ultra-modern sort-the utmost satisfaction of our client Swiss Pearlwater despite

ing system in Russia comprising a crossbelt sorter and otherinitial difficulties with the project.

materials handling technology. The order value was EUR 1.7
Pallet flow revenue also expanded markedly by nearly 50% in

million.

Product group “Pallet & Carton Flow”

the USA.

In the Pallet & Carton Flow product group, net sales increasedby an encouraging 3.8% to stand at CHF 60.3 million (2012:
CHF 58.1 million); order intake increased from CHF 58.1
million to CHF 63.9 million.

Sales byproductgroupsDrives 35%
Rollers 24%
Conveyors & Sorters 22%
Pallet & Carton Flow 19%

17

oveRview by ReGion

oveRview by ReGion

Performance differs across thethree operational regions

We have now opened a branch office close to Milan with a view

We have been pursuing our strategy of internationalisation

will be on food processing, e-commerce, postal and parcel

by moving into new markets and attracting new customers.

delivery and the area of security and logistics at airports.

to serving the Italian market directly in future. The emphasis

Performance varied considerably in the three key regions ofbusiness during the period under review: EMEA (Europe,

We are also increasing our business activity in Portugal

Middle East and Africa), Americas and Asia-Pacific.

through Interroll Spain.

Slight temporary dip in net sales
in the EMEA region

Highly satisfactory sales performancein the Americas

At CHF 203.0 million, net sales in the EMEA region were

Our revenue growth of 20.4% in the Americas was driven by

5.7% lower than the 2012 figure of CHF 215.2 million owing

strong organic expansion and the acquisition of Portec in Julyto a faltering economy, temporary decline in the logistics area

2013. Net sales reached CHF 68.1 million in 2013, compared toand project postponements. The EMEA region accounted for

CHF 56.6 million in 2012. The region contributed around 22%

around 64% of total revenue due to accelerated expansion in

to revenue, compared to approximately 18% in 2012.

the Americas and Asia-Pacific, down from approximately 70%
On the basis of good market prospects in North and Southin 2012.

America, we expect to invest up to USD 40 million by 2015;
The pattern of sales varied greatly across the European regions.

this figure will cover not only the regional Centre of Excellence

Revenue grew by between 5% and 12% in France, Spain, thein Atlanta and the acquisition of Portec but also other invest-

United Kingdom and Eastern Europe thanks to overdue invest-

ment in high-performance systems.

ment in logistical projects. By contrast, the saturation point
was temporarily reached in the internal logistics field in otherWe have received repeat orders for sorters from a number ofcountries, especially Germany and Scandinavia.

leading suppliers, among them Amazon and Walmart. The
introduction of our EC310 RollerDrive on the North American
market is also proceeding very satisfactorily.

Sales bygeographicalmarkets

18

EMEA 64%
Americas 22%
Asia-Pacific 14%

oveRview by ReGion

New regional Centre of Excellence in Atlanta, USA(completed in December 2013)

Through the acquisition of Portec, we are expanding ourOnce again, our prominent technological position and theclient base and offering a wider range of products for thegrowth of Asian markets have been a major driving force

airports and parcels sector. Integration of the former Portec

behind our expansion. Interroll companies in Korea, Thailand,organisation will also improve customer service for Inter-

China and Singapore have improved their market positions

roll clients on the west coast while opening up cross-sellingby taking significant orders. The performance of the regional

opportunities for customers whose needs were not fully met

Centre of Excellence in the Chinese city of Suzhou was further

by Portec in the past.

enhanced by establishing global processes and programmes
aimed at promoting skills. SAP has been in operation in all

In the past financial year, we overhauled our sales and distri-

Asian organisations since 1 April 2013; the final step was thebution structure in the USA. The field service division wasgo-live at Interroll China.

strengthened, user know-how was purposely expanded andcustomer proximity was improved. We also implemented

In Thailand, we secured three dynamic storage orders fromour global marketing strategy; please refer to the ‘Marketing’

Red Bull in 2013, bringing the total number of orders com-section on page 21.

pleted for Red Bull to six since 2009. Please refer to the section

Net sales up significantly in Asia-Pacific region‘Overview by product group’ on page 17.

The Asia-Pacific region remains critical to our growth

Dr. Ben Xia, an expert in materials handling with a provenpotential. The rise in living standards in these emerging

track record in this field, has been running our businesses

markets has led to more pronounced consumption and thusin Asia since 1 July 2013. Under his leadership, businessincreased demand for appropriate internal logistics. Net sales

activity will be promoted and organisational structures will beamounted to CHF 35.3 million in 2012, rising by 27.8% in

optimised in anticipation of future requirements in Asia.

2013 to stand at CHF 45.2 million; the proportion of total sales
was around 14% in 2013, compared to approximately 12% in
the previous year.

19n o n - f i n A n C i A l p e R f o R m A n C e i n d i C At o R s

non-finAnCiAl peRfoRmAnCe indiCAtoRs

Research and development

Important developments in 2013 included:

Our customers are constantly facing new challenges (seesection 'Megatrends favour the long-term deployment of our

The magnetic speed controller for our pallet flow products

products and solutions' on page 13). Intense research activity

is integrated into the roller conveyor module, thereby regu-

and the development of new products and solutions are essen-

lating the speed of pallets weighing up to 1,250 kg. The pat-tial elements in helping our clients to meet their specific needs,

ented magnetic solution prevents wear and the overheating

whether they be more efficient assembly, easier transport ofof brakes while ensuring a higher throughput.

commodity units, less packaging, space savings, flexible andload-dependent system control at various speeds, fast response

Our 24 volt conveyor technology is centrally oder decen-times, energy savings or low maintenance costs. Modular, scal-

trally controlled by our Conveyor Control technology. Ourable systems are key prerequisites. As an international market'Gateway', an interface to fieldbuses that can be used toleader, we are involved in global research projects in the field

control a wide range of functions in a conveyor system, isof logistical efficiency; moreover, we actively support indus-

a useful addition to our conveyor control product family.

trial associations in developing standards. For this reason,

Since fieldbuses can be used in controlling Interroll mate-

we attach great importance to full compliance with current

rials handling solutions as well as other external compo-

legal regulations and to anticipating the product development

nents, this addresses the wish expressed by customers forrequirements of the future.

greater automation in their overall systems.

The Interroll Research Centre (IRC) in Wassenberg, Germany,

To keep pace with increasing automation in the deep-

concentrates on 'Innovation Pure'. Working closely with thefreeze area, we have expanded our conveyor rollers andInterroll Centres of Excellence, the Global Product Manage-

RollerDrives to include a special version for freezers. A

ment team and the sales department, it develops new products,

new kind of interlocking connection ensures the conveyor

processes and technologies that deliver critical efficiency atrollers and RollerDrives operate reliably at temperatures as

key points in internal logistical systems. Its focus ranges from

low as -28 degree Celsius and that conveyor systems can beenergy efficiency, hygiene and new materials to noise reduction

deployed without limitation.

and decentralised intelligence.
Our Centre of Excellence in Sinsheim has developed a new
Innovation is very important to us, which is why we invest

global 'conveyor platform'. It addresses additional cus-some 3% of revenue in research and development – and intend

tomer requirements by offering very high flexibility, ultra-

to carry on doing so. To safeguard our innovations and main-

fast delivery times and extremely quiet operation. The newtain the competitive advantage we have earned, we consistently

platform, which will be gradually rolled out worldwide,

register new industrial property rights around the world.

and which will enable us to improve our worldwide market
position in the area of internal logistics, will be unveiled at
the CeMAT fair in Hanover in the second quarter of 2014.
To gain a deeper understanding of the two leading drive
systems (24 volt and 400 volt technology), we lent our support
to a Karlsruhe Institute of Technology (KIT) study overseen by
Professor Furmans. In the case of the 24 volt technology that
we utilise, the conveyor only operates as needed; in the case20

n o n - f i n A n C i A l p e R f o R m A n C e i n d i C At o R s

of conventional 400 volt technology with geared motors, thewhy in 2013, at our biggest site in Wermelskirchen, we set up aconveyor runs continuously. Having compared the two sys-

fitness group open to all staff members (both past and present).

tems, the study concluded that 24 volt technology can reduce

The fitness sessions are already attended on a regular basis

the energy requirement by approximately 30%; energy savingsby around half of the workforce; they take the form of circuitof as much as 50% can be achieved by using conveyors with antraining and utilise a balanced blend of strength and stamina

accumulating function.

building equipment. Technically speaking, the sessions take

Employees

the form of cardio training as the circulatory system is boosted
alongside all the key muscle groups.

By devoting their skills and their passion for internal logistics
on a daily basis, our employees are of fundamental impor-Marketingtance to the success of our company. We set high standards in

Our marketing activities are aimed at supporting the sale ofterms of commitment, performance and conduct. For many

our products and enhancing our brand image around theyears, annual performance reviews have served to maintain aworld. We believe it is very important for our campaigns

consistent dialogue with staff. By agreeing on personal targets

to reach out not just to our direct clients but also to end

and communicating openly, we encourage entrepreneurshipcustomers.

amongst our employees while ensuring that they hold a stakein the success of the Group and its future prosperity.

In 2013, we were represented through our own booth at 21
trade fairs around the world, showcasing the products and

Low fluctuation level points to employee satisfaction

solutions that we supply to various industries.

As our low fluctuation rate in the Interroll companies worldwide testifies, our staff are highly motivated and exceptionally

We further developed the marketing programme in placecommitted to the company and its success.

since 2011 and also implemented it in the USA and Asia. This
involved the effective implementation of marketing campaigns

Strategic investment in training

aimed at highlighting Interroll innovations in select growth

Back in 2008, we founded the Interroll Academy. By promoting

markets and clearly distinguishing ourselves from the com-the advancement of staff members, the internal training centre

petition; the campaigns were created in Europe before being

is playing a key role in helping the Interroll Group implementtransferred to the regions. In 2013, the marketing focus was

its long-term growth strategy.

on the e-commerce, distribution and food processing sectors.
Campaigns are always linked to ambitious local sales targets.

The Academy utilises a mix of traditional teaching and Inter-

For the year in question, we can point to a highly positive

net-based instruction methods, a combination of training

impact: taken together, countries in which the campaigns wereapproaches that ensures that the knowledge acquired is

introduced saw revenue increase by 50% more compared to theretained and applied to practical situations. All sales repre-

other countries.

sentatives and technicians not only receive training on our
products but are also familiarised with customer requirements
and applications. In this way, they are able to offer clients
effective support.
Fitness training based on 'one-piece flow' principle
We believe it is important to look after our health – which is21

n o n - f i n A n C i A l p e R f o R m A n C e i n d i C At o R s

To present the customer benefits of our portfolio in a credible

demonstrated that aligning ourselves with a Formula 1 teamfashion, more research and consultancy projects were under-

captures the attention of customers and the media. Bothtaken with universities and other institutes in 2013. The pro-companies stand for a clear focus and outstanding process

jects, which clearly underlined the competitive advantages ofmanagement. The value of media reporting is almost equal totechnology supplied by Interroll, included a partnership withthe sponsoring budget.

Professor Furmans of the Karlsruhe Institute of Technology(see page 52) and our collaboration with the consultancy firm

We monitor the influence of marketing on the success of theIntralenco. Other international contacts have been estab-company very closely. Aside from analysing press coverage

lished in Italy, the USA and China, and these will be extended

and the impact of trade shows and the Internet, we obtainover the year ahead.

assessments from sales directors around the world regarding the contribution of the marketing team to company

Once again, the Sauber F1 Team formed part of our market-

prosperity.

ing plans in the context of sports sponsoring in 2013; this wasachieved within a manageable budget roughly equivalent to

We plan to push ahead with our marketing strategy that has

the task of planning two large-scale trade fairs for Interroll.

already proved to be successful. In particular, we will seek to

Joint appearances at international conferences, an in-house

improve our positioning in the areas of sustainability, inno-

exhibition aimed at a global audience and the organisation

vation and the presentation of competitive advantages whileof several management workshops by the teams have again

highlighting user benefits for end customers.
.

Interroll is a “Promotional
Partner” of the Sauber F1 team22

n o n - f i n A n C i A l p e R f o R m A n C e i n d i C At o R s

Sustainability
We believe reconciling the impact of our business activity
with the expectations and needs of society is a key responsibility. In a globalised world, the challenge is to accommodate
the rising tide of goods traffic and the increasing movementof persons without impacting unnecessarily on resources.
More and more companies are taking environmental protection into consideration; they are utilising resources more
efficiently and conserving energy while demanding the sameof their suppliers. As a leader in innovation and technology,
we are well placed to respond to this market environment.

Gravity saves energy costs:
Loading units “flow” onslightly inclined roller
conveyors through thechannels

By implementing sustainable measures aimed at conserving
resources, we can help our customers to reduce their costs
and thus brighten their competitive prospects.
New materials handling technology saves energy
According to calculations of the Fraunhofer Institute forMaterial Flow and Logistics (IML) in Dortmund, optimising
drive technology can cut energy consumption by almosta third. This applies not only to new systems but also to
retrofits, where best possible utilisation of time, space, staff

sumes up to 50% less energy than a conventional system inresources, energy and materials can be achieved in a shortwhich a geared motor runs continuously (i.e. independently

period of time.

of the throughput). Operation according to need and the factthat no additional drive mechanism is required also serve to

Efficiency-optimised drives, lightweight components across

suppress the noise level of the system considerably. Further-the board and material combinations with low rolling resist-

more, since the drives are in operation much less than thoseance offer easy ways to achieve double-digit decreases inof conventional systems while delivering the same conveyor

energy consumption.

output, the effects of wear are minimised. Please refer to thesection 'Research and development' on page 20.

Our EC310 RollerDrive, for example, is capable of reducing asystem's energy consumption by as much as 30%. The energy

A study by Intralenco, a German consulting firm withefficient drive guarantees ideally coordinated operational

extensive experience in the internal logistics market, con-procedures for zero-pressure accumulation conveyors on

firmed that using other energy-efficient technologies such as

both straight conveyor sections and curves.

dynamic storage systems reduces carbon emissions significantly. Our Pallet Flow and Carton Flow dynamic storage

By deploying our RollerDrives, it is possible to set up an

solutions are fitted with non-driven rollers. Loading units

intelligently controlled conveyor system subdivided intosuch as pallets are moved by gravity, as slightly inclined roller

zones without significantly altering the basic construction of

conveyors feed them through a channel. As a result, there is

the system. Assuming medium throughputs of 600 to 1,000

no need for competitor solutions powered by electric motors

containers per hour, a system modernised in this way con-to lift and handle the pallets.

23inteRview“seizinG ouR
oppoRtunities
woRldwide”
The Interroll Group is maintaining its pattern of profitable growth.
For some time, the conveyor technology manufacturer has been setting
its sights more and more on the Asian and American markets. We spoke
to Chief Financial Officer Daniel Bättig and Dr. Christoph Reinkemeier,
Executive Vice President Global Sales & Service at the Swiss Group, about
international strategies, new business opportunities and financial strength.

Mr. Bättig, Dr. Reinkemeier, financial year 2013 saw marked

Dr. Reinkemeier: As regards generating further profitable

increases once again in sales in the Americas and the Asia-Pacificgrowth – particularly in Asia and the Americas – 2013 was a

region, in earnings and, above all, in the cash flow of the Interroll

very important financial year, and not just in terms of our key

Group. Will Interroll be able to maintain this momentum in theperformance indicators. Not only did we succeed in winning

future?

many new customers for our products and services, securing
important follow-up orders and thus confirming the trust

Daniel Bättig: Yes, all managers who are responsible for the busi-

that our business partners have in us, we also laid strategic

ness activities of the Interroll Group firmly believe that this is thefoundations and reached commercial milestones with a viewcase. Together with our workforce of around 1,600 employees

to leveraging our growth potential even more effectively in thearound the globe, we are pulling out all the stops to ensure that

future. Above all, we enhanced our product platform around

we continue this successful course in the years to come. In thisthe globe, for instance by standardising our RollerDrive tech-regard, our strategy focuses clearly on organic growth. At the

nology at an improved technical level worldwide. In addition,same time, we intend to look into acquisitions that match ourby setting up an internal customer information system, we laid

strategic outlook.

the cornerstone for an international Key Account Management system. This will help us to respond quickly to customer
expectations and needs worldwide.

24

inteRview

Dr. Christoph Reinkemeier, Executive Vice President, Global Sales & Service

Daniel Bättig, Chief Financial Officer (CFO)

What are the special features that characterise the further

is no longer sufficient – not by a longinternationalisation of Interroll?

shot. This trend can also be seen to havea particular momentum in emerging

Dr. Reinkemeier: Needless to say, internationality has beenmarkets. We will continue to tap into

one of Interroll’s key strengths for decades. Traditionally, ourthis potential with a view to providing

home market here in Switzerland does not even account for two

reliable and extensive solutions exper-

percent of our total sales. At present, our efforts are not gearedtise for our customers.

towards stepping up internationalisation at any price. Rather,
our main focus is on raising our profile within the markets –and setting ourselves clearly apart from the competition. Our
outlook is based on the need to meet the different customer
demands that exist in the various regions. This regional outlook
is achieved by having our own sales and support organisation
directly in the markets. Direct selling is the only way to achieve
a “climate of excellence” in our relationship with our customers.
Even when it comes to our products and services, quality alone25

inteRview

overall, but also lay the foundations for maximising the advantages of a global presence in the future. Our strategy consistsof centralising the respective product development activities
at our global Centres of Excellence and decentralising value
creation in the relevant production area within the individual
regions. To achieve this, we need – figuratively speaking – anervous system that provides a reliable connection between thehead and the hand. This allows us to ensure that the service weprovide anywhere in the world is as good, as reliable and as fast
as Interroll’s customers have come to expect.
Dr. Reinkemeier: We have standardised our operational structures and processes in order to prime them for the demands
and complexity of global business. For years, our globally
implemented Interroll Production System (IPS) has allowed us
to ensure the highest product and process quality. At the sametime, we are investing in a new conveyor platform that will
reduce our delivery time enormously while opening up entirely
new business opportunities. Beside this, we are providing trainDaniel Bättig

ing and internal know-how certification to our sales staff in order topack an even harder punch on the“We finance our internationalisation from ourcash flow. This financial strength gives us a clear
advantage over our competitors.”sales front. This is because we haveobserved that, in addition to ourdirect customers, more and more
end customers are expecting us toprovide comprehensive solutions
expertise in addition to our productand application know-how.

Daniel Bättig: This is why we have been focusing particularattention on Asia and the Americas for some time. At present,

Is this internationalisation drive also the reason for the acquisi-

these continents only account for a third of our Group sales.

tion of the US company Portec Inc. in mid-2013?

However, the commercial significance of these regions meansthat there is still enormous potential there. Because of this,Daniel Bättig: Yes, that was a further milestone in continu-

we intend to gradually increase the share of sales attributableing our internationalisation strategy. In the recent past, weto these markets to over 50 percent of our Group sales in thehave already stepped up our presence in Asia significantly

coming years.

by expanding our regional Centre of Excellence in Suzhou,
China. With our plant in Atlanta, Georgia, we are also building

Doesn't this strategy also mean that Interroll will have to deal

a new regional Centre of Excellence for dynamic storage

with increased requirements and more complex processes?

solutions and subsystems. The Portec acquisition meets all
the criteria that we specify for acquisitions. This acquisition

26

Daniel Bättig: Without doubt. This is also one of the reasons

creates value. It makes an immediate contribution to ourwhy we are harmonising and standardising our processes

business activity and, with its location in the Western USA,worldwide – for instance by implementing SAP at 23 subsidi-

fits with our geographical expansion plans. In addition, thearies so far. In this way, we not only become more productive

acquisition increases and improves our range of products – as

inteRview

well as strengthens our position in the airport business, one

international supplier of logistics systems to offer this broadof the main sectors in which Interroll operates successfully

spectrum of products. For the most part, our competitors areworldwide.

only active on a local or regional level or have a smaller pro-Dr. Reinkemeier: In 2013, besides acquiring Portec, we paved

extent from worldwide growth trends – such as globalisation,

the way for further organic growth in key markets aroundurbanisation and digital networking. Owing to the size of our

the world. For instance, we set up a subsidiary of our own incompany and our access to global markets, we are in a position

Italy and are working the Portuguese market directly via ourto invest more in technologies and product innovations thancompany in Spain. This means that we now have direct accesssmaller, local competitors with lower order volumes.

duct portfolio. This gives us the opportunity to benefit to a greatto these markets. Our production, sales and service companies
around the world allow us to maintain a very close dialogue

As an international company, we are able to achieve higher

with our customers. Incidentally, this direct market access not

economies of scale than local competitors and can follow inter-

only benefits us, but also – and above all – our customers. Ulti-

national customers virtually anywhere and offer them better

mately, customers in all markets expect the same high quality,

service worldwide as well. A prime example of this can be seen

reliability and speed from Interroll.

in our projects for PepsiCo, which we regularly serve in theAmericas, Asia and Europe – and for which we implemented a

How does this international strategy set Interroll apartmajor project in Russia recently.

from its competitors?
Such an international business outlook requires investments.
Dr. Reinkemeier: First of all, internationalisation allows

Can Interroll afford this strategy?

companies to become less dependent on developments inindividual economic regions. In our market environment,

Daniel Bättig: Yes. Interroll has enjoyed financial solidity for

however, internationalisation gives us another key competitive

years. This means that the expenditure required to safeguard

advantage: with this strategy, we have developed into the onlyand drive our future development can be financed through our
cash flow, rather than having to be financed by banks and other
lenders of capital. In the past year, we repaid our last longterm bank liabilities. This means that our business decisions
do not have to take into account external interests, such as
those of financial markets. This year, for example, the Portec
takeover and our investments in infrastructural projects, suchas the construction of the new Atlanta plant, were all financed
by cash inflows from current business operations. This selffinancing and our high equity ratio give us a clear advantage
over our competitors. With this strategy, we create lasting value– i.e. we ensure that our shareholders, who have a long-term
outlook, will continue to reap the rewards of their investment
in Interroll well into the future.

Dr. Christoph Reinkemeier

27

RubRik

28

momentum foR
ouR GRowth

GlobAlisAtion
More people and goods in motion

30

uRbAnisAtionThe flow of goods will continue to rise36

net woRkinG
The whole world at a click

42

ClimAte ChAnGeHigh energy efficiency protects the environment

48

29

GlobAlisAtion

30

The world is growing closer. This development is putting people
and goods in motion. For example, the annual number of flights is
expected to increase from 5.4 billion to 12.2 billion in the next 20
years. The global freight volume could also increase nearly fourfold by
2050. These megatrends will provide for rising demand for innovative
material flow solutions.

31

G l o b A l i s At i o nmoRe people And
Goods in motion

and borders. High rates of growth can thus beIntelligent control saves up
to 50 percent energy

expected in air traffic, which plays a central role

While central gear motors provide the

Globalisation is eliminating trade barriers

in international travel. According to the 2013 ACI Traffic

power for entire lines with conven-

Forecast Report, the annual number of passengers is expectedtional conveyor technology, Roller-

to increase by around 125 percent by 2031.

Drive solutions are designed decentrally by Interroll. They are made up

In addition, most products or services have long been offeredof independent segments powered

worldwide and many companies are expanding into new

by RollerDrives with integrated 24

markets. The International Transport Forum (ITF) therefore

volt motors. The intelligent Interroll

expects an increase in global freight volume of up to 230 per-ConveyorControl solution also always

cent within the OECD countries by 2050. An increase of up

ensures that only those segments thatto 550 percent is even forecasted for the remaining countries.

are currently conveying unit loads are

Cross-border competition requires
efficient material flow

trol system's modular design, newsystems can be easily configured to

But the increase in freight traffic is not the only reason thatmeet customer-specific requirements

additional investments in more efficient distribution ware-or existing systems can simply behouses and centres are necessary. Competition is increasing

reconfigured. Depending on the mate-in a global economy in which suppliers everywhere can takerial throughput, energy savings of up

over new markets. So it is all the more important for compa-

to 50 percent can be achieved.

nies to organise their processes efficiently and to keep theircosts under control – this is the only way to bring about thenecessary preconditions for holding and expanding market
positions.
In the area of internal logistics, Interroll helps its customers
and users to stay ahead of the increasingly fierce competition.
Our RollerDrives, which facilitate particularly efficient solutions with respect to material flow, are one example. These
driven conveyor rollers based on 24 volt technology can usually reduce operating costs significantly while considerablyincreasing material flow efficiency compared to conventional
400 volt driven conveyor systems.

32

driven. Thanks to the ConveyorCon-

G l o b A l i s At i o n

AiR tR Avel: emeRGinG mARkets tAke off
Passengers 2011

Passengers 2031

Growth 2031 Emerging Markets

Growth Mature Economies 2031

5 445 million

12 248 million

5 164 million

1 639 million

+

6

80

3

m

io

.

Passengers per year // Source: ACI Traffic Forecast Report 2013

Rapid Growth of worldwide freight traffic
oeCd countries

non-oeCd countries

250

550
500
450

200

400
350
300

150

250
200

100

150
100

50

50
2010

2015

2020

2025

2030

Expected development

2035

2040

2045

2050

Weak economic development

2010

2015

2020

2025

2030

2035

2040

2045

2050

Source: International Transport Forum, Transport Outlook 2012, 2010=100%

Forecast air traffic 2012 – 2032
Middle East – Asia-Pacific7.3%

Within Latin America

6.9%

Within China

6.9%
6.5%

Within Asia-Pacific incl. China
Europe – Asia-Pacific5.5%Annual growth of selected regions // Source: Boeing 201333

G l o b A l i s At i o nRollerdrive:the intelligent drive solution

Significant cost advantages duringcontinuous operations
Interroll RollerDrives offer other advantages besides theirenergy-efficient basic concept. A feedback system delivers theenergy that is generated during braking to other drive units.
Because brushless 24 volt drives require less maintenancedue to how they are built, this lowers the costs for repairs andmaintenance. Furthermore, the motors are in operation considerably less often, yet provide the same conveying capacity.
This minimises the effects of wear, of course. Because 24 volt
drives generate less heat, the costs of regulating the room
temperature are much lower. RollerDrive solutions fromToday, Interroll ranks as the world's leading manu­

Interroll are not only ideally suited for use in the original

facturer of motor­driven 24 volt conveyor rollers.

equipment used in modern logistics systems, but also repre-

These RollerDrives offer advantages not only insent an ideal choice with retrofit projects. In most cases, theterms of energy consumption, but are also far supe­existing main drives, including the redirection station andrior to traditional solutions in terms of their design,
installation, noise development, maintenance andsafety. RollerDrives can be used to rebuild entire
conveyor systems or to incrementally modernise
existing systems.
A RollerDrive system operates decentrally: therespective drives are located directly inside the indi­vidual conveyor zones. This means these segments
can be switched on and off independently of eachother. In other words, movement only takes placewhen goods actually need to be moved.
Furthermore, the many different conveying parame­ters in the individual zones, for instance the runningspeed, braking, rolling direction or performance
speed of RollerDrives can be changed with the helpof an intelligent control solution called the Convey­
orControl. This system is much more user­friendly
than complex programmable controls (PLC). And
users require no programming skills. It can be
operated simply by a mouse click on the graphic userinterface of a software program that runs on com­
mercially available Windows computers.

34“Innovative 24 volt drives and drum motors
from Interroll facilitate an extremely efficientmaterial flow. This is how we help ourcustomers and system users to master thechallenges of globalised competition.”
Dr. Christoph Reinkemeier, Executive Vice President
Global Sales & Service at Interroll GroupG l o b A l i s At i o nback-up rollers, only need to be disassembled. The new RollerDrives canthen be installed in the existing con-villeroy & boch:
A global brand with a rich tradition

veyor frame. Based on the experiencesof many leading system integrators,

Villeroy & Boch was founded in 1748 and is known around the world forthis represents an extremely effective

its high-quality ceramic products. The company operates a large high-bay

way to increase the performance

warehouse in Merzig in the German state of Saarland. The products thisof many older systems. In fact, thistraditional German company manufactures are shipped all over the worldmodernisation measure often pays offfrom here.

in only a few months.

Efficient conveyor solutions
for airports

Two different commissioning systems have been in use here for several years.
One has a conventional design, which means the picker collects the products
to be processed from the shelves. The newer system, on the other hand,Interroll solutions also score highperforms these tasks automatically with the help of 24 volt RollerDrives fromwith respect to their high perfor-

Interroll. In contrast to the older system, vertical “buffer stretches” so to speak

mance and efficiency in places wherethat are designed as towers are automatically filled with orders and the pickers

people and their luggage need to be

take care of everything else.

transported as safely and comfortably
as possible. For this reason, theseA direct comparison clearly shows

systems are already used at many

the advantages that the Interroll

airports all over the world today. And,system has to offer. According toby the way, they are not only used

Villeroy & Boch, sequences can bein the area of check-in and security,

completed roughly 10 times faster

where drum motors, conveyor rollers,with the new system. Furthermore,

redirection drums and Intelliveyor

less space and energy is needed.

conveyor modules ensure a smooth

The Interroll solution is also

flow of materials. They are also usedmuch quieter than the traditionalquite successfully in conveying andconveyor system that uses a central

sorting baggage, freight handling, anddrive motor and pneumatic control

catering.

of the individual sections andstorage spaces.

Through the acquisition of Portec
Inc. in 2013, Interroll managed to

Other important advantages:

significantly strengthen its position

defective parts can be changedin this field. Portec with its mainor replaced much more quickly. With the older system, this takes about two

headquarters in Colorado, USA, hashours. With the Interroll system, however, only individual units need to be

ranked among the leading suppliers

replaced. This can be done in about 30 minutes, as we were told during a

in the area of belt curves for decades.

visit to see the system in Merzig. Furthermore, new 24 volt segments can be

Their products are used not only byintegrated into the existing system very easily and flexibly. All you need to do

airports, but also by many distribution

to gradually replace the older drive system is to remove the older segment andcentres, and courier and postal service

install a RollerDrive zone from Interroll.

providers.

35

uRbAnisAtion36

In 1950, over one quarter of the world's population
lived in cities. Today, it is already more thanhalf. In 2050, it will be more than two-thirds.
Efficient material flow systems are needed toensure the provision of goods to people in growing
metropolitan areas.

37

u R b A n i s At i o n

the flow of Goods
will Continue to Risein metropolitan regions continues unabated.

Metropolitan areas require
professional internal logistics

Whereas in 1950 only 28.8 percent of all people

As a globally operating and well-known supplier with a broadwere city dwellers, today it is already more than 50 percent.

range of products, Interroll has specialised for many years in

According to estimates by the United Nations' Department

providing key products that are optimally tailored to the vari-of Economic and Social Affairs, this number will increase toous needs of modern, internal logistics. For instance, Interroll

68.7 percent by the year 2050.

offers a broad range of conveyor rollers, RollerDrives, drum

The concentration of the world's population

motors and corresponding control systems. The productThis global urbanisation requires continuous efforts in order

range also includes sorters, flow storage systems and otherto ensure the provision of metropolitan areas with foodsolutions that provide the basis for realising an especiallyand daily necessities. But there are other factors causing

efficient flow of material.

the requirements in internal logistics to become ever more
complex.

Drum motors as innovative drive solutions
Drum motors from Interroll are not only extremely durable,

Consumers want choicereliable and low on maintenance; special attention was also

Among other things, the volume of goods is growing along

given to making them as energy efficient as possible duringwith the ever-greater concentration of more and more people

their development. They also meet the highest demands forin increasingly congested spaces. In developing nations, thehygiene.

middle class and the demand for goods and services are also
growing along with the cities. The desire for more variety

One fundamental constructional advantage that Interroll

within individual groups of products is also growing.

drum motors offer is that they take up significantly lessspace than conventional drive motors. No further expensive,

Retail businesses are also becoming more diverse. For

failure-prone parts, such as chains, v-belts, clutches, bearings,

instance, the times are long gone in which any given productsupport constructions, or other special protective devices

can only be found in supermarkets. In addition, specialty

are needed to operate the drum motor. The entire drive unit,

stores with a limited range of products and major department

including the bearings, is found inside the drum capsule. The

stores provide all the daily necessities, while e-commerce

drives also meet the requirements of the international protec-

retailers and a multitude of smaller sales outlets provide

tion classes IP66 and IP69k.

for the needs of consumers. This intricacy has given rise
to highly complex distribution chains through which theinternal logistical processes are also becoming increasingly
elaborate.

38

u R b A n i s At i o n

meGACities: less spACe to live
ManilaCairo

MadrasCalcutta

MumbaiDhaka

2

42 858/km

37 136/km

26 705/km

23 951/km

20 680/km

14 608/km2

Tokyo

Jakarta

Osaka

Bangalore

LondonBerlin

11 371/km

5 285/km

3 814/km22

2

14 578/km

14 494/km

2

2

2

12 084/km

2

2

2

2

Resident per square kilometer // Source: Wikipedia, 1/2014, respective city data

People turn to city dwellers
1950
1970
1990
Urban population

28.8%
36.1%
42.6%
Rural population

71.2%

2010

63.9%

2030

57.4%

2050

50.5%
59.0%
68.7%

49.5%
41.0%
31.3%

Percentage of urban compared to rural population 1950 – 2050 //Source: www.bpb.de“The volumes of goods and handling speed
will continue to increase in congested urban areas.
High-performance and efficient material flow
solutions will be needed in order to keep up withthis development.”
Dr. Ralf Garlichs, Executive Vice President
Products & Technology at Interroll Group39

u R b A n i s At i o n

inteRRoll ensuRes An effiCient flow of Goods

prOducers

distributiOn centre

1

2
3

ce
E-commerSupermarket

Specialist retailer

dealers

Conveying, distributing, sorting: Interroll products for internal logistics are used throughout the supply chain

market leader on drives for check-out desks
Six out of ten of the world’s supermarkets rely on drum motors
from Interroll. For good reason: Interroll offers drum motors
and conveyer rollers that are specially designed for conveyor
applications in supermarkets and meet these demands justperfectly.
For example, a ready to install cassette system can be used as adrive for conveyer belts at check­out desks and other equipment
at a supermarket, such as reverse vending machines. The Inter­roll cassette system is equipped with a patented rapid clamping
system for deflection rollers that makes it much easier to installand change a conveyer belt.
Fast working and energy­efficient solutions can be developed tomeet all needs thanks to the wide range of equipment that spansfrom mounting supports and non­driven rollers to preassem­
bled, ready to install conveyer cassettes.

40

u R b A n i s At i o n

Quick and easy to clean

Because waste heat is so low with drum motors, less energy is

To start with this means that, even under the most difficult sur-needed to cool the rooms that these types of conveyer solutions

rounding conditions, no soil, dust or water is able to penetrate

are operated in. This represents an important cost factor, par-into the drive and cause failures. Furthermore, special models

ticularly when it comes to processing foods and in deep freeze

also withstand the effects of high pressure cleaning. This

environments.

shortens the cleaning cycles and thus significantly lowers theoperating costs.

Hygiene the number one priority
According to an estimate from the World Health Organization(WHO), even in industrial nations, roughly 30 percent of the

Quality vegetables

population is afflicted by food-related diseases. Nevertheless,this not only poses a risk to people’s health and lives, theVirto Group, a company based in Spain, ranks among

outbreak of diseases due to contaminated food can dismantle

the leaders in the food industry, particularly when it

companies or affect the performance of entire economies.

comes to frozen vegetables. Since 2010, the company
has been operating the most technologically advanced

Interroll pays particularly close attention to hygiene require-production centre in the world in Extremadura inments with its product development. Interroll drum motors forSouthern Spain to manufacture spinach, tender beetthe food industry stand up to even intensive cleaning processes

and chard leaves.

in which high-pressure, steam or chemicals are used without
breaking down.

Interroll drum motors not only ensure a reliable andefficient material flow around the clock at the produc-

For example, synchronous drum motors from Interroll meettion centre in Ulbasa Ultracongelados, thanks to how

the material requirements that the USDA/FDA and the EUthey are built, but also meet the highest demands forordinance EG 1935/2004 make on use in the area of food. Only

hygiene in the area of foods. These drives even standrecently, they were certified as the only drum motors for use

up to intensive cleaning processes using high pres-in hygienic industrial applications by the European Hygienic

sure and steam without the risk of a breakdown. In

Engineering & Design Group (EHEDG) following in-depth

comparison with gear motors, they significantly lower

testing.

operating costs due to shorter cleaning times and lower

82 percent overall efficiency

water consumption.

The compact design is also conducive to extremely energy-efficient operation. For example, synchronous drum motors fromInterroll achieve overall efficiency of 82 percent (motor: 89
percent, translation: 92-95 percent).
They therefore rank among the highest performance and mostenergy-efficient conveyer belt drives that have ever been developed. Synchronous drum motors from Interroll also require
only very little maintenance compared to other asynchronous
drives. And they require about 40 percent less energy andrelease significantly less heat than gear motors that have aworm gear drive.

41

netwoRkinG

42

At the beginning of 2000, around 300 million people owned acomputer with Internet access. At the beginning of last year, thisfigure had already increased to over 2.7 billion – not even counting
the mobile Internet. Online trading has also become more important
as a result of this global networking. The world of internal logistics
will face significant changes in the years to come because of this trend.

43netwoRkinG

the whole woRld At A CliCk

Most people take the Internet for granted. Never-Dependable, quiet and compact

theless, the World Wide Web as we know it today

Crossbelt carriers that feature a patented drive make up theis only about 20 years old. During this period, theheart of these sorting solutions. They are based on a sim-

number of users has grown at a breath-taking pace. Even now,

ple mechanical principle, require no special control IT, andmore than 200,000 new households connect with the Internet

contain only very few wear parts. Sorters from Interroll canfor the first time each day.

therefore easily be put to continuous use for ten years with
only minimal maintenance. Besides virtually silent operation

But the Internet has not only fundamentally changed howof under 68 dBA on average, one of the lowest values in theinformation is exchanged and personal relationships are main-industry, they are also known for how little space they taketained. Companies too recognized early the possibilities global

up. For instance, a vertical sorter equipped with a crossbelt

networking has to offer and gradually started shifting theircarrier 400 x 400 millimetres in size requires stand space only

business processes to virtual space. Retailers are also faced with

1.7 meters in width. More space can even be saved by centrally

challenges that were completely unknown just decades ago.

integrating the outfeed transport path for containers that are

Internal logistics has changed from being a costto become a competitive factor

already full between the upper and the lower tower, somethingunique in the marketplace to date.

With the emergence of e-commerce, consumer expectations

Integrated processing of returns

have risen, not only with respect to being able to choose from a

Because of the continued success of Internet trade, companies

greater variety of products. Consumers have also become moremust also deal with more returned products. For instance,

demanding with respect to how quickly orders are processed

the return rate with clothing can exceed 50 percent at times.

and products are delivered. This acceleration in processes has

Crossbelt sorters from Interroll are also an excellent choicefundamentally changed the importance of internal logistics. It

when it comes to performing these tasks. With a modular

has long changed from being a cost factor and become a com-system design that includes intelligent sorting technology, both

petitive factor and even an important differentiation instru-

incoming and outgoing shipments can be processed.

ment in competing. Companies that fall behind will lose theircustomers relatively quickly and eventually go out of business.

The pace will continue to pick up in the area of e-commerce in

Solutions from Interroll have been helping companies to meetthe years to come. One of the reasons lies in mobile use of thethese higher demands for years now. For example, materialInternet via smartphones. This makes spontaneous purchases

handling solutions that feature crossbelt sorters are capable offrom mail-order companies possible. But only those companies

processing extremely large quantities of bulk goods and huge

who have access to a high-performance material flow solution

product varieties. Depending on what needs to be shipped,

will be able to benefit from these new business opportunities.

they can be used to transport and discharge cargo that weighs
only 50 grams or up to about 35 kg – in other words, as muchas 70 percent of the packages that companies like Amazon
need to deliver.

44

netwoRkinG

inCReAsinG numbeR of households ARe online
2000

2003

2006

2009

2012

2013

304 million

608 million

1 023 million

1 596 million

2 336 million

2 749 million

5%

9.7%

15.7%

23.8%

33.3%

38.8%

Worldwide internet users and their percentage of worldwide population // Source: www.internetworldstats.com

Online shoppers: How important are simple returns?
Europe

55%

Asia

40%

Australia

38%

USA

62%

Important

Not that important

Source: UPS Pulse of the Online Shopper™ Global Study ©2013 United Parcel Service of America, Inc.

“Product variety and the sorting volumes in the
product distribution centres will continue to increase
and at the same time we will be seeing shorter
delivery times. For this reason, sorter solutions thatoffer maximum availability, sorting accuracy, butalso flexibility, are in great demand.”Dr. Heinrich Droste, Managing Director of Interroll Automation GmbH45

netwoRkinG

hiGh potentiAl in upCominG mARkets

North America$ 419.53 billion
12.5%
72.0%

Western Europe

Middle & Eastern Europe$ 291.47 billion$ 48.56 billion

14.0%

20.9%

72.3%

41.6%

Asia-Pacific$ 388.75 billion
Middle East & Africa$ 27.00 billion

23.1%
44.6%

31.0%
31.3%
Latin America$ 45.98 billion
22.1%
33.0%

$ E-commerce sales
Sales growth 2013 compared to previous year
Percentage of online buyers comparedto Internet users
Source: eMarketer

dhl relies on sorters from interroll
The multichannel mail­order company HSE24 ships its entire range of
products via the DHL logistics centre in Greven, Germany, from diamondnecklaces to cosmetics and healthcare products, but also even LCD televi­
sions. A high­performance material flow solution is essential to ensuring
rapid delivery of the products ordered and processing returns swiftly.
Crossbelt sorters from Interroll perform the most important function inprocessing returns. After the parcels that have been returned have beentransported to the logistics centre, they are automatically sorted here forrepackaging or reconditioning.

46

netwoRkinG

Every company that is actively involvedin the supply chain will have to face thisinterview

challenge. This explains why not just shipping companies, but also express, courier,and package service providers all over theworld rely on sorting solutions from Interroll. For example, Interroll has installed
these types of systems in the distribution
centres of DHL, UPS and Amazon, butalso Chinese Post and Zalando.

Economical and future-proof
Due to the high price pressures in Internet
trade, the operating costs of the systems
used in internal logistics will also play
an increasingly important role. Because
sorting represents one of the most costly
activities in internal logistics, next to picking, high-performance sorting solutions
are becoming increasingly important also
from a cost perspective.
The capital recovery times (return on
investment, ROI) of two years on averagefor Interroll solutions are significantly
shorter than those of competitive
solutions. This represents a key advantage,
especially in an environment dominatedby fast-changing offers and productportfolios. In addition, mechanical sortersfrom Interroll save up to 50 percent
energy in comparison with the linear
motors used in other sorting systems.
Furthermore, Interroll guarantees not
only outstanding ongoing support andfast delivery of spare parts, solutions
from Interroll are also constantly further

Prof. Dr. Michael ten Hompel,
Fraunhofer Institute of Material Flowand Logistics (IML), Dortmund

What challenges does the logistics industry
need to prepare itself for in the future?
The most important future trends in logistics include individualization,
sustainability and urbanization. The complexity will increase exponentially,
and with it, the demands that are placed on problem-solving expertise.
More than ever before, companies will have to leverage the full logistics
potential in order to stand up to global competition.
How will they be able to do this?
The question is how do we convert these challenges into innovations?
At the efficiency cluster LogistikRuhr, we have been conducting research on
innovations and products that will allow for 100 percent performance to beachieved with only 75 percent of the current resources. This is a beginning,but in order to become a driver of innovation, logistics will have to assume
more leadership responsibility in developing new technologies in the future.
How can logistical structures be improved?
I see the greatest potential in standardization of software and methods.
Here, cloud computing opens up completely new dimensions in crosscompany collaboration as well as double digit synergy potential.
Industry 4.0 is the keyword in the production environment …
Now, following the steam engine, assembly line production, andautomation on the basis of IT systems, we are experiencing the fourthindustrial revolution. Things will connect autonomously and set
themselves in motion in order to organize their own route within the
supply chain. The fourth industrial revolution will change our economy
faster than all of the revolutions that preceded it.

developed. Users can therefore be surethat they will own a highly competitive
solution in the future as well.

“We are currently experiencing
the fourth industrial revolution”

47

ClimAte ChAnGe

48

The demand for energy will continue to grow.
According to the forecasts of the International Energy
Agency (IEA), the annual demand for energy on ourplanet could well increase by around one third by 2035.
Higher energy efficiency is therefore becoming more
and more important in protecting the environment.

49

C l i m At e C h A n G e

hiGh eneRGy effiCienCy
pRoteCts the enviRonment

The human race needs energy – for living, every-

more and more often, this results

day care, transportation, economic development,in high repair costs and, even more

and to improve people's living conditions.

importantly, unnecessarily high energy

Nevertheless, energy is still largely produced from fossil fuels,

consumption. Significant savingsand this, in turn, releases the greenhouse gas carbon diox-

can be achieved rather quickly withide. According to calculations from the International Energy

retrofitting.

Agency (IEA) in Paris, global CO2 emissions could be reduced
by another 23 percent by 2035.

Internal logistics have an important
contribution to make here

for operations to be shut down during
retrofitting. In fact, in most cases, theexisting installation can be gradually

Increasing energy efficiency can be considered one of the mostequipped with more modern com-

important measures in counteracting the environmental effects

ponents. Furthermore, lower energy

this development is expected to have. According to an IEA

costs can have a positive effect on bankstudy, for example, the world's projected energy consumption

ratings when it comes to taking out

could be reduced by 17 to 33 percent by 2050 by improving theloans. Rising or highly volatile energy

energy efficiency of buildings, transportation and industrial

costs have an effect on the yield andprocesses. Internal logistics must also face up to this challenge

therefore could lead to a downgrade inthat will be accompanied by stricter regulations and thresholdthe credit rating if interest rates rise.

values in the years to come. Energy-efficient solutions fromInterroll will help to master this challenge.

Modernization measures pay off
Companies must not even invest in completely rebuilding
their warehouse systems in order to benefit from the efficiency advantages that innovative Interroll technologies offer.
Targeted modernization of the existing equipment usually represents an economical alternative that increases performanceand yet saves resources.
Carrying out these types of retrofit measures opens up significant savings effects. Depending on the industry, warehousesystems are technologically obsolete anyway or at least in
need of replacement due to the wear and tear of everyday use
after seven to ten years. Besides the disorders that take place

50

Further advantages: there is no needC l i m At e C h A n G e

Mtoe

eneRGy effiCienCy: the hidden eneRGy souRCe

1 600
1 400
1 200
1 000
800
600
400
200
0
Oil

Electricity

Gas

Coal

Other

Avoided energy
consumption

In million tons oil equivalent (Mtoe). Comparison of energy consumption in 2010 of eleven industrial countries
with energy quantity which was reduced in the same year due to the efficiency improvements initiated in 1974.
The countries are Australia, Denmark, Finland, France, Germany, Italy, Japan, the Netherlands, Sweden, theUnited Kingdom and the United States. Source: IEA 2013 // Source: IEA 2013

Mtoe

Worldwide energy demand 1990 – 2035
20 000
16 000
12 000
8 000
4 000
0

1990

2011

2020

2025

2030

2035

Million tons oil equivalent (Mtoe), without tightened measuresfor climate protection // Source: IEA 2013

Firm, low maintenance and efficient: Interoll Drum
Motors have a total efficiency of up to 82 percent

51

C l i m At e C h A n G eStudy confirms energy savings
Improvements can be achieved by using RollerDrives fromInterroll, for example. The Institute for Material Handlingand Logistics (IFL) at the Karlsruhe Institute of Technology(KIT) in Germany examined these modules more closely
in a study that was published in June 2013. Compared withconventional 400 volt drives, considerable energy savings
potential was identified in accumulation mode.
The values of the centrally designed 24 volt solutions wereapproximately 50 percent lower in accumulation mode.
Besides the direct energy savings potential, the study showedthat secondary costs can also be reduced by using 24 volt
drives. The ongoing maintenance costs are lower to begin
with due to the fact that this construction requires less maintenance. And thanks to the compact design of these drives,
they can also be protected against external environmental
influences more effectively and are therefore easier to keep
clean.

large order from Red bull in thailand

Interroll succeeded in closing the single largest order forflow storage in company history in 2013. This order wasplaced by Red Bull and amounted to nearly CHF 6.5 million
in total.
Red Bull is using this solution from Interroll to increase
the efficiency and capacity of its distribution centres basednear Bangkok. The order included storage areas for 16,340
pallets that are processed according to the FIFO principle(First In, First Out). Yet another 9,132 pallets are to be
stored in a LIFO area (Last In, First Out). The energy drink
Red Bull ranks among the world's most popular soft drinks.
In 2012, Red Bull GmbH based in Austria sold 5.2 billioncans of this drink and generated sales of EUR 4.93 billion.
At the end of 2012, Red Bull employed 8,966 people in 165
countries.

52“Flow storage technology is known
for its high energy efficiency.
The loading units inside the channel use
gravity to flow. Therefore, drive motors are
no longer necessary. Furthermore,
space resources can be saved thanks tothe compact design.
All in all, flow storage achieves a high level ofenvironmental compatibility.”Prof. Dr.-Ing. Lothar Schulze, Leibniz University in Hannover/GermanyC l i m At e C h A n G e

Synchronous drum motors stand out thanks
to their extremely high efficiency

interviewThe drum motors from Interroll represent yet anotherexample of the highest possible energy efficiency. They were
designed especially for use in belt conveyors and connected
conveyor systems. And synchronous drum motors are
particularly economical when it comes to how they use theDr. Ralf Garlichs, Executive Vice President
Products & Technology at Interroll Groupenergy they are supplied with. They achieve overall efficiencyof 82 percent. Compared with gear motors that have worm
gear drives, they require roughly 40 percent less energy andWill the subject of energy consumption continue toemit significantly less heat.

become more important in the area of internal logistics?

Gravity facilitates the flow of goods

Every company that transports goods needs energy,
and this will cost more in the long term. Competitive

When it comes to storage systems, Interroll relies on provenpressure alone is already forcing companies to save

dynamic storage products. And this technology has broughtmoney. Nevertheless, energy efficiency is no longera roughly 35 percent increase in capacity within the same

only a cost concern. Today, legislators, consumers, andamount of space for Procter & Gamble in Crailsheim, Ger-

the companies themselves are paying more and moremany, for example. Flow storage utilizes the effect of inclined

attention to protecting the environment.

planes during the flow of goods. The loading units are placedon slightly tilted roller beds and thus are able to move in the

Can Interroll benefit from this development?

desired direction on their own due to gravity. In contrast toYes. Our solutions help companies to stand up to theseother solutions, there is no need to supply power to thesechallenges. And if achieving an efficient flow of goods

drive systems. Furthermore, the transport routes for forklift

is the main objective, then our innovative solutions

trucks can be shortened by up to 80 percent.

are able to demonstrate their full potential. The samecan be said, by the way, for our 24 volt drives, drum

According to a study conducted by the consulting firm

motors, sorters, and flow storage.

Intralenco, significant advantages result with pallet warehouses that have medium to high handling capacities in com-

How efficient are these systems?

parison with competitive solutions. This study is based on a

Our drives achieve efficiency rates of up to 82 percent.

detailed calculation that takes energy consumption, the initial

With sorters, we mechanically convert the actuatorpurchase price, installation costs, space usage, personnel

movement into a transverse movement with practi-

usage, and depreciation into account. The bottom line is thatcally no friction losses. And with our flow storage, weflow storage can deliver monthly savings of up to 28 percent

refrain from using any additional energy whatsoever

per pallet space compared to competitive solutions.

and rely on gravity instead.

A study conducted by the Leibniz University in Hannover,So, what developments will we be seeing in the future?

Germany, in 2012 under the scientific direction of Prof. Dr.-We will be focusing more closely on sustainability as aIng. Lothar Schulze in cooperation with the Southeast Uni-

whole. After all, energy efficiency is only one concern.

versity in Nanjing, China, also confirms that flow storage is

For this reason, we are currently looking more closely

known for its high energy efficiency. According to this study,

at how we can realize an entirely closed life cycle withflow storage systems also achieve a high degree of environ-our products.

mental compatibility.

“Energy efficiency is no longer only
a cost concern”

53Corpor ate GovernanCe

Contents

Corporate
GovernanCe
Contents
1

Introduction

56

2Group structure and shareholders

56

3

Capital structure

57

4Operational management structure

58

5

Board of Directors

61

6Internal organisation

64

7

Competence regulations

65

8

Information and control instruments

65

9Group Management

66

10

Compensation system of the Board of Directors

69

11

Compensation system Group Management

69

12

Shareholders’ Participation Rights

72

13

Change in control and defence measures

73

14

Auditor73

15

Information Policy

74

55

IntroduCtIon
Group StruCture and ShareholderS

Corpor ate GovernanCe

1 IntroduCtIon
Base of the corporate governance report
The corporate governance report 2013 of the Interroll Group refers to the official guideline of the SIX
Swiss Exchange on Corporate Governance, best practice related to the hustler initiative as well as to the regulations of the “Swiss code of best practice for corporate governance”.

Cross references
In order to minimise repeated comments, certain sections cross refer to other sections, especiallyto the financial report.

Compensation report
The compensation report is part of the financial statements of Interroll Holding Ltd.

2 Group StruCture and ShareholderS
Group structure
The operational management structure is disclosed in chapter 4 of this report.

Mother company and stock listing
The mother company of the Group, Interroll Holding Ltd., is domiciled in Sant’Antonino/TI, Switzerland.
Its registered shares are traded in the main segment of the SIX Swiss Exchange under the security
number 637289. Further notes to the listing can be found in chapter “Interroll on the Capital Market” onpage 4 of the annual report.

Consolidation range
Subsidiaries belonging to the consolidation range of the Interroll Group are disclosed in note 8.4 of
the Group’s financial statements. There are no other equity instruments publicly traded expect thoseof Interroll Holding Ltd.

Significant shareholders
All significant shareholders holding a reportable participation are disclosed in note 3.6 (“Significant
shareholders”) of the financial statements of Interroll Holding Ltd.

Cross shareholdings
The Interroll Group does neither maintain capital nor voting rights with other entities.

56

Corpor ate GovernanCe

CapItal StruCture

3 CapItal StruCture
Share capital and voting rights
The share capital of Interroll Holding Ltd. amounts to CHF 8.5 million and is made up of 854 000 fully
paid registered shares with a par value of CHF 10 each. Each share has one voting right.

Authorised or conditional capital
There is no authorised or conditional capital.

Other equity or participation instruments
Furthermore, there are no other equity-like instruments such as profit sharing rights or participation
certificates.

Changes in capitalIn the year under review, the share capital remained unchanged at CHF 8.5 million.

Limitations on transferability and nominee rights
Information about limitations on transferability and other nominee rights of the shareholders is disclosed
in chapter 12 (“Shareholders’ participation rights”) of this report on the corporate governance.

Convertible bonds and options
There are no convertible bonds outstanding. In 2006, the Board of Directors approved a management shareoption plan. Further information on this plan is disclosed in chapter 7.1 of the notes to the financial
statements of the Interroll Group. The option plan ceased as per 30 September 2013.

Further information on the shareholders’ equity
Additional information on the equity is disclosed in the financial statements of the Group(see 1.5 – “Consolidated statement of changes in equity”) and in the respective notes.

57oper atIonal M anaGeMent StruCture

Corpor ate GovernanCe

4 oper atIonal ManaGeMent StruCture
Functional organisational structure
The Interroll Group consists of one single business unit. The complete product range is sold in all markets
through local sales organisations. Interroll caters to the needs of its customers (system integrators, plant
manufacturers, end users) by offering a tailor-made product portfolio and expert consultancy. The Interroll
manufacturing units focus on the production of specific product ranges. Assembly units receive semifinished products from the manufacturing units and assemble a wide product range for their local markets.
The Interroll Research Centre, which is centrally located, researches new application technologies anddevelops new products. Global Centers of Excellence continue developing the product range they focus on.

Management structure
The Group Management and the Interroll management structure are organized by functions (Overall
Management, Products & Technology, Global Sales & Service, Corporate Marketing, Corporate Finance).
The financial management of the Group by the Board of Directors is, on the one hand, based on turnoverof the product groups and geographical markets and, on the other hand, on the reporting of theconsolidated financial statements. In addition, Group Management assesses the achievement of financial
and qualitative targets and other key performance indicators of all subsidiaries.
The Interroll Group has no advisory body.
Board of dIreCtorS
ChaIrMan

Kurt Rudolf

vICe ChaIrMan

audIt CoMMIttee

CoMpenSatIon
CoMMIttee

other MeMBerS

Urs TannerPhilippe Dubois

Kurt Rudolf

Stefano Mercorio

Paolo Bottini

Prof. Dr. Horst Wildemann

Ingo Specht

Group ManaGeMent
ChIef exeCutIve offICer

Paul Zumbühl
ChIef fInanCIal offICer

vICe preSIdent
Corporate MarketInG

Daniel Bättig

Jens Karolyi

exeCutIve vICe preSIdent
GloBal SaleS & ServICe

exeCutIve vICe preSIdent
produCtS & teChnoloGy

Dr. Christoph Reinkemeier

Dr. Ralf Garlichs

reGIonS

58

Executive Vice President Americas

Tim McGill

Executive Vice President Asia

Dr. Ben Xia

Corpor ate GovernanCe

oper atIonal M anaGeMent StruCture

Interroll reSearCh Centre (IrC), GloBal produCt ManaGeMent
The Interroll Research Centre (IRC) develops in close cooperation with the Centres of Excellence, Global
Product Management and Global Sales new products, techniques and technologies.
Functional unit

Managed byCompany

Research & Development

Helmut Maiwald

Interroll Holding GmbH, Wermelskirchen (DE)Global Product Management

Dietmar Hager

Interroll Holding GmbH, Wermelskirchen (DE)GloBal CentreS of exCellenCe
The seven Interroll Centres of Excellence are responsible worldwide for product development, strategicpurchasing and the application and development of production technologies for specific product ranges.
Furthermore, they produce for the European markets and supply semi-finished goods to group companies
overseas. The global Centres of Excellence of the Interroll Group are managed by the following persons:Products

Managed byCompany

Rollers, RollerDrives

Armin LindholmInterroll Engineering GmbH, Wermelskirchen (DE)

Industrial Drum Motors

Dr. Hauke TiedemannInterroll Trommelmotoren GmbH, Baal (DE)Supermarket products

Dr. Anders-Staf Hansen

Interroll Joki A/S, Hvidovre (DK)

Flow storage products

Bertrand RaymondInterroll SAS, La Roche-sur-Yon (FR)Conveyor modules

Michael Kuhn

Interroll Automation GmbH, Sinsheim (DE)

Subsystems

Dr. Heinrich Droste

Interroll Automation GmbH, Sinsheim (DE)Techno polymers

Ingo Specht

Interroll AG, Sant’Antonino (CH)

HoldingGlobal Centers of Excellence
Sales/Production
Agents/Distributors

59oper atIonal M anaGeMent StruCture

Corpor ate GovernanCe

WorldWIde SaleS and produCtIon CoMpanIeS

Regional Centres of Excellence (RCoE)
Regional Centres of Excellence produce for the Americas and Asia-Pacific. These centres take over the fullproduct programme of the global Centres of Excellence and serve the regional sales and service subsidiaries
with finished products and the assembly sites with unfinished goods.

Production companies and local assemblies
Guided by the production processes and production technology by the Interroll Centres of Excellence,
local production companies manufacture and assemble products for regional markets. They concentrate on
specific product groups within the full product range.

Sales and service subsidiaries
Interroll sales companies concentrate on specific market and customer segments offering the full range
of Interroll products and 24-hour repair service.

Management of the operational subsidiaries
The management of above companies was delegated to the following persons:

Function

Region/country

Managed by

EuropeSales, service

Central Europe

O. Schopp

Interroll Fördertechnik GmbH, Wermelskirchen (DE)Sales, service

FranceG. Calvez

Interroll SAS, Saint-Pol-de-Léon (FR)Middle East

Sales, service

Northern Europe

E. KaiserInterroll Nordic A/S, Hvidovre (DK)

Sales, service

Great Britain, Ireland

Ch. Middleton

Interroll Ltd., Corby (GB)Sales, service

Iberic peninsula

R. RoviraInterroll España SA, Cerdanyola del Vallès (ES)Sales, service

Czech Rep., Balcany, Hungary

F. Ratschiller

Interroll CZ s.r.o., Breclav (CZ)

Sales, service

Poland, Russia, Ukraine

F. Ratschiller

Interroll Polska sp.z.o.o., Warsaw (PL)Sales

Turkey, Middle East

F. Ratschiller

Interroll Lojistik Sistemleri Ticaret Limited, Istanbul (TR)Sales, assembly, service

AfricaH. Campbell

Interroll SA (Proprietary) Ltd., Johannesburg (ZA)

RCoE, sales, service

North America

R. KeelyInterroll Corporation, Wilmington/NC (US)Sales, production, service

North America

S. CwiakInterroll Automation LLC, Jeffersonville (US)RCoE, Sales, production, service

North America

M. Oropeza

Interroll Engineering West, Cañon City Inc. (US)

Production

North America

C. Parsons

Interroll Dynamic Storage, Inc., Hiram/Atlanta (US)Sales, production, service

North America

S. Gravelle

Interroll Canada Ltd., Newmarket/Toronto (CA)Sales, production

North and South America

S. Gravelle

Interroll Components Canada Ltd., Concord/Toronto (CA)Sales, assembly, service

Brazil, Argentina

D. HahnInterroll Logística Ltda., Jaguariuna/São Paulo (BR)Asia-

RCoE, sales, service

China

S. Foong

Interroll (Suzhou) Co. Ltd., Suzhou (CN)Sales, service

South Korea

N. KimInterroll Korea Corp. Seoul (KR)

Pacific

Sales, service

Japan

G. W. Seng

Interroll Japan Co. Ltd., Tokyo (JP)Sales, assembly, service

ThailandN. Grisorn

Interroll (Thailand) Co. Ltd., Panthong (TH)Sales, service

Singapore, South East Asia

G. W. Seng

Interroll (Asia) Pte. Ltd., Singapore (SG)Sales, assembly, service

Australia

P. CieriInterroll Australia Pty. Ltd., Melbourne (AU)

AfricaAmericas60CompanyCorpor ate GovernanCe

Board of dIreCtorS

5 Board of dIreCtorS
Members of the Board of Directors

From left to rightProf. Dr. Horst Wildemann, Urs Tanner, Stefano Mercorio, Kurt Rudolf, Ingo Specht, Paolo Bottini and Philippe Dubois

The Board of Directors of Interroll Holding Ltd., Sant’Antonino (CH), consisted of seven members at
year-end 2013:
Name

Year of birth
Nationality

Function
Committee membership

Initialelection

Electeduntil

Kurt Rudolf

1942
Swiss

Chairman since 2006
Compensation Committee since 2006

2001

2013

Urs Tanner

1951
Swiss

Deputy chairman since 2009

2008

2014

Paolo Bottini

1965
Swiss

MemberAudit Committee since 2003

2003

2015

Philippe Dubois

1950
Swiss

MemberAudit Committee since 2003

2003

2015

Prof. Dr. Horst Wildemann 1942
GermanMemberCompensation Committee since 1999

1999

2014

Ingo Specht

1964
GermanMember2006

2015

Stefano Mercorio

1963
ItalianMember

Entry inMay 2013

2015

Election principles and terms of office
The Board of Directors is composed of at least six members. These members are elected individually by
the General Meeting of the shareholders for a one-year term. The shareholders Dieter Specht and Bruna
Ghisalberti or their direct first-generation descendants are entitled to nominate totally two representatives(one representative per family), as long as they hold at least 10% each of the share capital.

61

Board of dIreCtorS

Corpor ate GovernanCe

Professional background and vested interests of the Board of Directors
Kurt Rudolf
Dipl.-Ing. ETH
Current activities
Since 2014:

Member of the Board of Trustees of the Olle Larsson-Rosenquist Trust, Zug (CH)

Professional background
1996–2013:

Member of the Board of Directors of the Medela Group, Zug (CH)

1986–1990:

CEO Portescap Group, La Chaux-de-Fonds (CH)

1982–1985:

Managing Director of LGZ Landis & Gyr Zug Ltd., Zug (CH)Urs Tanner
Executive MBA, University St.Gallen (CH)
AMP, Harvard (US)Current activities
Since 2012:

Co-owner of Halcyon Associates Inc., Monson (US)

Since 2010:

Member of the Board of Directors of Belimed Ltd., Zug (CH)

Since 2007:

Member of the Board of Directors of Plaston Ltd., Widnau (CH)

Since 1995:

Member of the Board of Directors of Medela Group, Zug (CH)

Professional background
1995–2007:

CEO of Medela Group, Baar (CH)

1983–1994:

Managing Director of Tool & Plastics, Mikron Group, Biel (CH)

1967–1983:

Management positions at Styner + Bienz (Adval Tech), Niederwangen (CH)

Paolo Bottini
Lic. iur., lawyer
Tax specialist (Eidg. dipl.)
Current activities
Since 2011:

Managing Partner of Bär & Karrer, Zurich (CH)

Professional background
2002–2010:

Partner and Director of Bär & Karrer, Lugano (CH)

2000–2001:

Partner of Bär & Karrer, Lugano (CH)

1996–2000:

Associate of Bär & Karrer, Lugano (CH)

Philippe Dubois
Lic. iur. and lic. oec.
Current activity
Since 2002:

Independent management and financial consultant for M&A, corporate financeand management coaching, Zurich (CH)

Professional background62

1999–2001:

Senior Investment Banking positions at Bank Julius Bär, Zurich (CH)

1982–1999:

UBS Warburg (also responsible for the IPO of Interroll), Zurich (CH)Corpor ate GovernanCe

Board of dIreCtorS

Prof. Dr. Horst Wildemann
Prof. of university Dr. Dr. h. c. mult.
Honorary professor at the universities of Klagenfurt, Passau and Cottbus (DE)Award of the first class cross merit of the Federal Republic of Germany
Award of the order of merit of Bavaria
Dipl.-Ing. in mechanical engineering and Dipl.-Kfm. in business administration at the universities of
Aachen and Cologne (DE) and also of the universities of Southern California and Indianapolis (US)Member of the Logistic Hall of Fame (since 2004)
Current activities
Since 2009:

Chairman of the board of Directors, Möhlenhoff GmbH, Salzgitter (DE)

Since 2008:

Chairman of the board of Directors, IWIS-Ketten GmbH, Munich (DE)

Since 2008:

Chairman of the board of Directors, Rudolf GmbH, Geretsriet (DE)

Since 2007:

Chairman of the board of Directors, Pinta Elements GmbH, Munich (DE)

Since 2007:

Member of the Board of Directors, Sick AG, Waldkirch (DE)

Since 2000:

Member of the Board of Directors, Hamberger Industriewerke GmbH, Stephanskirchen (DE)

Since 1998:

Chairman of the Board of Directors, Grosshaus GmbH, Lennestadt (DE)

Since 1996:

Member of the Board of Directors, Zeppelin GmbH, Friedrichshafen (DE)

Since 1988:

Professor ordinarius for management, production and logistics,
Technische Universität München, Munich (DE)

Since 1980:

Managing Director of TCW Consulting GmbH, Munich (DE)

Ingo Specht (executive member)
Professional qualification as Industrial Business Manager, Chamber of Commerce and Industry Cologne (DE)Current activity
Since 2007:

Managing Director of Interroll Ltd., Sant’Antonino (CH)

Professional background2010:

Head of Corporate Marketing, Interroll (Schweiz) Ltd., Sant’Antonino (CH)

2003–2007:

Head of Corporate IT, Interroll Management LTD., Sant’Antonino (CH)

1998–2002:

Vice President Corporate Development, Interroll (Schweiz) AG, Sant’Antonino (CH)

1993–1997:

Owner and managing director of Luxis, Locarno (CH)

1986–1993:

Deputy Managing Director of Interroll LTD., Sant’Antonino (CH)

Stefano Mercorio
Degree in economics from the University of Bergamo (IT)Current activity
Since 1995:

Legal Auditor in Italy

Since 1990:

Founder and Senior Partner of “Studio Castellini Mercorio & Partners”, Milan (IT)

Since 1987:

Dottore Commercialista “Albo dei Dottori Commercialisti e degli Esperti contabili
di Bergamo” (IT)

Marco Ghisalberti left the Board of Directors in May 2013.

63

Internal orGanISatIon

Corpor ate GovernanCe

6 Internal orGanISatIon
Constitution and comittees of the Board of Directors
The Board of Directors consists of the Chairman, the Deputy Chairman and the other Members. The Boardof Directors is assisted by two permanent committees within the areas of auditing (Audit Committee) andremuneration policy (Compensation Committee).

Audit Committee
The Audit Committee receives the audit reports prepared by the local external auditors and of the Groupauditor. It prepares the respective reporting on them to the Board of Directors. In particular, it satisfies itself
that the Group companies are also being audited on a regular basis. The Audit Committee mandates theinternal audit department to execute internal audits and revises respective audit reports.
At least once a year, the Audit Committee also commissions a report on audits undertaken and planned
as well as on any proposals to improve the auditing function. The Audit Committee submits its proposals to
the Board of Directors for decision.

Compensation Committee
The Compensation Committee submits its proposals for the salary and bonus of the CEO, the membersof Group Management, and the compensation of the Board of Directors to the Board of Directors for
decision. At the beginning of the year, it defines the targets to be attained for bonus payments to become
applicable. In addition, the Compensation Committee is responsible for establishing the terms of theshare ownership scheme.

Mode of collaboration of the Board of Directors and its committees
The Board of Directors meets as often as business requires, but at least four times per year. The meetings areconvened by the Chairman of the Board of Directors. Each member of the Board of Directors may demandthat a meeting be convened, specifying the item on the agenda to be discussed. The CEO participates in themeetings of the Board of Directors. The Executive Vice Presidents of the respective functional units andthe Vice Presidents of the Corporate Functions as well as other members of the management are invited toattend meetings when necessary.
The Board of Directors is deemed quorate if an absolute majority of its members is present in person.
Resolutions are adopted on the basis of an absolute majority of votes present. In the event of an equal divisionof votes, the Chairman casts the deciding vote. All resolutions are recorded in the minutes.
Both committees of the board meet as necessary. Any member is entitled to convene committee meetings.
In the business year 2013 the Board of Directors met on five occasions, the Audit Committee three times
and the Compensation Committee twice for regular scheduled meetings.

64

CoMpetenCe reGul atIonS
Corpor ate GovernanCe

Infor M atIon and Control InStruMentS

7 CoMpetenCe reGul atIonS
Statutory base for the competence regulations
All basic competences and tasks of the organs are lined out in the articles of association of Interroll
Holding Ltd. Responsibilities and duties that cannot be transferred to third parties are defined in thesearticles.

Responsibility of the Board of Directors
The Board of Directors is responsible for the Group’s strategy and governs the overall management, supervision and control over the operational management of the Interroll Group. The Board of Directors
has exercised its statutory authority to delegate management to third parties who need not be shareholders(Group Management).

Management and organisational regulations
In the provisions of the organisational regulations, the Board of Directors has delegated the managementof ongoing business to a Chief Executive Officer (CEO). The CEO is responsible for the overall managementof the Interroll Group and for all matters not falling under the purview of another governing body,as specified by law, the Articles of Association or the organisational regulations. In particular, the CEO
is responsible for the operational management of the company as a whole. Competences and controls are
specified within a set of organisational regulations.

8 InforMatIon and Control InStruMentS
Reporting to the Board of Directors
At each meeting, the CEO informs the Board of Directors of the course of business, the principal events
within the Group and the discharge of duties delegated to the Group Management.

Management information system
The Management Information System (MIS) of the Interroll Group consolidates the balance sheet, income
statement and cash flow statement, as well as financial data pertaining to the subsidiary companies, on amonthly basis and compares the current figures with those of the previous year and the budget. On the basisof the quarterly financial statements, the budget is assessed in the form of a forecast as to whether it isattainable with regard to each entity and also for the consolidated group. The financial reports are discussed
during the meetings of the Board of Directors.

Internal audit and control instruments
On behalf of the Audit Committee, internal audits are performed annually at selected subsidiary companies.
The focal points of the audit are defined according to the risk profile of the respective entity. The reportsof the Audit Committee are discussed with the local management.
Extraordinary occurrences and decisions of material importance, as specified in the organisational
regulations, are immediately brought to the attention of all members of the Board of Directors in writing.

65

Group ManaGeMent

Corpor ate GovernanCe

9 Group ManaGeMent
The Group Management of Interroll Group had the following members as at
end of 2013:
Name

Year of birth
Nationality

Function

Member sincePaul Zumbühl

1957
Swiss

Chief Executive Officer (CEO)January 2000

Daniel Bättig

1964
Swiss

Chief Financial Officer (CFO)

Entry in March 2013

Dr. Ralf Garlichs

1962
GermanExecutive Vice President Products & Technology

July 2006

Dr. Ch. Reinkemeier

1966
GermanExecutive Vice President Global Sales & Service

January 2011

Jens Karolyi

1970
GermanVice President Corporate Marketing

January 2011

Tim McGill

1955
EnglishExecutive Vice President Americas

January 2011

Dr. Ben Xia

1966
Chinese

Executive Vice President Asia

Entry in June 2013

Professional background and vested interests of the Group Management
Paul Zumbühl
Dipl.-Ing., Lucerne university of applied sciences, Lucerne (CH)MBA, Joint University Program of the univ. in Boston, Berne, Shanghai
AMP, Kellogg Business School of Northwestern University, Chicago (US)Marketing Management Diploma (Eidg. Dipl.)
Current activity
Since 2000:

Chief Executive Officer

Further activities
Since 2009:

Member of the Board of Directors, Looser Holding AG, Arbon (CH)

Since 2007:

Member of the Board of Directors, Schlatter Holding AG,
Zurich (CH)

Professional background
1994–1999:

CEO of Mikron Plastics Technology and member of the Executive
Management Board, Mikron Group, Biel (CH)

1988–1994:

Managing Director and further management positions at
Sarna Group, Sarnen (CH)

1984–1987:

66

Sales Manager/Engineer at SYMALIT AG, Lenzburg (CH)Corpor ate GovernanCe

Group ManaGeMent

Daniel Bättig
Executive MBA, Certified Public Accountant, Certified Business Economist
FHNW (CH)
Current activity
Since 2013:

Chief Financial Officer (CFO)

Professional background
1999–2013:

CFO later Head of International Mail with Swiss Post
International Management AG, Bern (CH)

1998–1999:

Group Chief Accountant with Südelektra Holding AG, Zug (CH)

1991–1998:

Various positions in finance with Von Roll Holding AG in
Switzerland, Brasil and the USA

Dr. Ralf Garlichs
Dr.-Ing. (Mechanical engineering, focus production engineering),
University Hannover (DE)Current activity
Since 2011:

Executive Vice President Products & Technology

Professional background
2006–2010:

Managing Director of “Drives & Rollers”,
Interroll Group

1999–2006:

Managing Director of Reflex Winkelmann and further
managing positions at Winkelmann, Ahlen/Westfalen (DE)

1994–1999:

Head of Production, Logistics, Festo Tooltechnic, Esslingen (DE)Dr. Christoph Reinkemeier
Dr. rer. pol. (Business Administration: Industrial Marketing),
University of Münster (DE)Current activity
Since 2011:

Executive Vice President Gobal Sales & Service

Professional background
2007–2010:

CEO for North and South America at Deckel Maho
Gildemeister (DMG) America Inc., Chicago (US)

2000–2006: Several management positions at Ista International GmbH,
Essen (DE)
1998–2000: Project manager of corporate development E.On AG,
Düsseldorf (DE)67

Group ManaGeMent

Corpor ate GovernanCe

Jens Karolyi
Certified in Business Administration, University of Bamberg and Giessen (DE)Current activity
Since 2011:

Vice President Corporate Marketing

Professional background
2007–2010:

Vice President Marketing and Communications Northern
Europe, Ericsson, Düsseldorf (DE)

2000–2007: Management positions in Marketing, Branding and Communications at Ericsson Northern Europe, Düsseldorf (DE)Tim McGill
Majored in English, Brockenhurst College, Hampshire (GB)Current activity
Since 2011:

Executive Vice President Americas

Professional background
2000–2010:

Head of Interroll Dynamic Storage North America, Newmarket(CA)

1996–2000: President of Interroll Canada, Newmarket (CA)1995–1996:

President of Werner Precision Rollers Canada, Concord (CA)

1990–1995:

Sales Director Interroll Canada, Newmarket (CA)Dr. Ben Xia
Dr.-Ing, Electrical Engineering (Electrical Machinery)
Advanced Management Programme for Senior Executives, China Europe
International Business School (CEIBS)Current activity
Since 2013: Executive Vice President Asia
Professional background
2006–2013:

Managing Director Vanderlande Industries, North Asia (CN)

2002–2005:

Head of Shanghai Citel Electronics Co., Ltd. (CN)

1998–2001:

Marketing Manager Pirelli Cables Asia-Pacific Shanghai
Representative Office (CN)Kwang-Heng Seng left the Group Management as at 31 March 2013.

Management contracts
There are no management contracts with third parties.

68

CoMpenSatIon SySteM of the Board of dIreCtorS
Corpor ate GovernanCe

CoMpenSatIon SySteM Group M anaGeMent

10 CoMpenSatIon SySteM of the Board of dIreCtorS
Method used to determine the level of compensation of the Board of Directors
Every year, the Board of Directors determines the level of total compensation for its members, at its discretion and depending on the workload and responsibilities of its members, taking into account the new regulations on excessive compensation in listed stock companies. No separate compensation is paid for membership in committees. Extraordinary efforts that go beyond the normal duties of the Board of Directors may
additionally be compensated. All remuneration paid to members of the Board of Directors of Interroll Holding
Ltd. by Interroll Holding Ltd. and the subsidiaries over which it has direct or indirect control is decisive indetermining the annual total remuneration.

Components of the compensation of the Board of Directors
The total remuneration of the Board of Directors is exclusively paid in cash. It comprises no variable elements. All social security contributions are made by the employer.
No loans or advances were granted to members of the Board of Directors by Interroll Holding Ltd. and its
subsidiaries in the two reporting years.

11 CoMpenSatIon SySteM Group ManaGeMent
Powers to specify the remuneration of Group Management and principles
At the Remuneration Committee’s request, the Board of Directors decides every year on the total remu neration of the Group Management, subject to approval by the General Meeting from 2015 onwards.
The Remuneration Committee works out the CEO’s total remuneration. The CEO works out the total remuneration of the other members of the Group Management (including former members of the Group Management) and submits his proposal to the Remuneration Committee every year for approval by the Board of
Directors.
In determining the annual total remuneration, all remuneration paid to members of the Group Management by Interroll Holding Ltd. and the subsidiaries over which it has direct or indirect control is decisive,
irrespective of whether global or local activities for one or more subsidiaries in Switzerland or abroad(based on a separate contract of employment) of the respective member of the Group Management are compensated.
The Group Management’s actions must always focus on achieving a long-term sustained increase in value
rather than pursuing short-term profit maximisation. The composition of total remuneration for the membersof the Group Management in general and the CEO in particular is based on this aim.

Elements of the total remuneration of the Group Management and criteria
for determining the remuneration
For each Group Management member an individual remuneration agreement exists, the projected total remuneration, which is based on the criteria specified below for determining the remuneration and market
conditions in the relevant country.

69

CoMpenSatIon SySteM Group M anaGeMent

Corpor ate GovernanCe

The projected total remuneration per annum may be exceeded as a result of an excellent performance.
Remuneration is determined on the basis of key criteria, such as global responsibility in the relevant role, individual actual performance contributing to the Group’s long-term strategic development, the complexity of
the area of responsibility and the personal results achieved on behalf of the Group. Similarly, any additional
local roles fulfilled in one or more subsidiaries are also taken into account, including the relevant responsibilities and individual actual performance contributing to their operational and strategic development.
External consultants may additionally be involved in determining the structure and level of remuneration
on a case-by-case basis.

Overview of total remuneration for the Group Management
Total remuneration for each Group Management member comprises a fixed and a variable remuneration
component. The variable remuneration component includes a bonus and/or the allocation of shares with ablocking period of several years.
The fixed remuneration component of total remuneration is contractually stipulated and generally remains
unchanged for three to four years if the job does not change. Adjustments may be made on the basis of theassessment of individual performance and in the event of changes to the area of responsibility.
The share of variable remuneration varies, depending on the roles of the members of the GroupManagement, and amounts to up to approx. 60% for members in an operating managerial role and to up
to approx. 30% for members in a centralised holding role of the projected total remuneration.
In the reporting year, the variable share in relation to total remuneration of the Group Management
amounted to approx. 33%.
The starting point for the variable remuneration of members of the Group Management includes the measurable sustained financial success of the company, measured in terms of the 3-year plan (rather than theannual budget) and compared with the previous year, as well as the individual, strategically relevant, measurable targets agreed each year with the members of the Group Management. They relate, for example,
to new products, gaining market share, developing new markets, successful strategic projects and other personal targets.
Using the plan for several years as the basis of variable remuneration motivates members of the Group Management to think long-term. It means that the relative improvement is measured compared to the previous
year and short-term cost-cutting is prevented in the areas of market development, innovation etc. which
could hamper the long-term development of Interroll. Based on these considerations, members of theGroup Management receive a share of their remuneration in the form of Interroll shares, which are blocked
for sale for a period of four years.

70Corpor ate GovernanCe

CoMpenSatIon SySteM Group M anaGeMent

The company’s financial success is measured in terms of five key figures: operating profit, operating profit
margin, gross margin, sales growth and the return on capital, with a different weighting depending on
the roles of the members of the Group Management. The Remuneration Committee may deviate from theagreement in favour of an Group Management member if failure to achieve specific targets was
solely attributable to external factors, or if an exceptional one-off performance was delivered. In the two reporting years, no deviation from the agreement occurred.
Individual targets impact on the variable remuneration component of Group Management members
in an operating managerial role by up to approx. one third and by up to approx. two thirds for GroupManagement members in a centralised managerial role.

Allotment of shares and management stock option plan
The Interroll shares granted as part of fixed (CEO) and variable remuneration to members of the GroupManagement are blocked for four to a maximum of six years, in order to ensure the sustainable long-term
development of the Interroll Group. The blocking period is aimed at motivating the Group Management
to perform its duties in the interests of the Interroll Group’s long-term sustainable development rather thanshort-term profit optimisation.
Based on their commitment and influence, the Group Management members are to participate long termin the Group’s increased value and also share the business risk as shareholders (and equity co-investors).
In this sense, the share plan for the Group Management represents a long-term performance incentive andis intended to promote identification with and loyalty to Interroll in the long run.
Group Management members and a further forty employees, who have already been entrusted with management duties for the Interroll Group since 2006, were given the opportunity to participate in a management
stock option plan. The term of this stock option plan ended on 30 September 2013. Each option entitledthe holder to subscribe to one Interroll registered share. The exercise price was CHF 323 per share. Cash compensation for the difference between the market price on the exercise date and the exercise price was notavailable. In financial year 2013, no new stock option plan was introduced, and the existing option planceased as per 30 September 2013.

Other remuneration
The regulations on expenses and pensions are specified in the applicable local employment terms and conditions as well as the relevant statutory and prevailing market conditions of the countries concerned, in particular Germany, the USA and China as well as Switzerland.
In Switzerland, each Group Management member contributes a quarter to a third of the “savings element” tothe pension fund. The rest is paid by the employer.
A company car and mobile phone are made available to the members of the Group Management for business and private use. Alternatively, the corresponding amount is paid as a monthly flat rate. The maximum
permitted limits in terms of the value of company cars are regulated in-house.
No other remuneration in the form of significant benefits in kind is made. Further details regarding other
remuneration are provided in section 13 – Change in control clauses.
71

CoMpenSatIon SySteM Group M anaGeMent
ShareholderS’ partICIpatIon rIGhtS

Corpor ate GovernanCe

Valuation of the total compensation of the Group Management
Compared with the previous year, the total remuneration of the Group Management decreased. The main
reasons for this change were unfilled posts and the appointment of two new members of the Group Management for less than twelve months. An adjustment to the fixed salary of one Group Management member was
made compared with the previous year. No significant changes occurred in respect of the variable remuneration component.

Loans to officers
In the current year and the previous year, Interroll Holding Ltd. and its subsidiaries did not grant loans andadvances to members of the Group Management.

12 ShareholderS’ partICIpatIon rIGhtS
Representation and restriction of voting rights
Rights governing shareholder participation are in accordance with the requirements specified within
the Swiss Code of Obligations. Each share issued has one vote. A shareholder’s voting rights are restricted
to a maximum of 5% of the total number of votes. Individual nominees, however, are entitled to exercise
more than 5% of the total votes if they disclose the identity of the beneficiaries they represent and if therespective beneficiaries as a whole do not exercise more than 5% of the voting rights. This restriction of
voting rights does not apply to the founding families, insofar as the individual families hold at least 10%of the share capital.
Registered shares of nominees that exceed 2% of the shares outstanding are only listed in the Register asshares furnished with voting rights if the nominee has provided written consent to the possible disclosure ofnames, addresses and shareholdings of those persons for whom the said nominee holds 0.5% or more of
the shares outstanding.

Statutory quorum
Subject to contrary statutory or legal provisions, the General Meeting of Shareholders is quorate irrespectiveof the number of shareholders present and the shares represented by proxy.

Convocation of General Meeting of Shareholders
The invitation to the General Meeting of Shareholders is issued at least twenty days prior to the Meetingand is legally effective upon inclusion in the Company’s chosen vehicle of communication (“Schweizerisches
Handelsamtsblatt”). In addition, the Board of Directors sends a written invitation to those registeredshareholders listed in the share register.

72

ChanGe In Control and defenCe MeaSureS
Corpor ate GovernanCe

audItorAgenda and registration in the share register
The invitation to the General Meeting of Shareholders shall include all items on the agenda as well as all
motions put forward by the Board of Directors and, if applicable, by the shareholders who have called
for a General Meeting or the inclusion of an item on the agenda. No resolutions shall be passed on motions
relating to items which have not been announced in the requisite manner, with the exception of thosemotions relating to the convocation of an Extraordinary Meeting of Shareholders or the execution of a
special audit. No entries are made into the share register less than ten days prior to a General Meetingof Shareholders up to the day subsequent to the General Meeting of Shareholders.

13 ChanGe In Control and defenCe MeaSureS
Obligation to make an offer
There are no statutory regulations regarding opting up and opting out.

Change in control clauses
There are no agreements for severance pay, other agreements and plans in the event of a change in control
or upon termination of a contract of employment. The notice periods for members of the Group Management
range from three to twelve months. For one member of the Group Management, the twelve-month period
will start on 1 January 2016.

14 audItor
Duration of the mandate and term of office of the lead auditor
With decision of the general assembly of 10 May 2013, Interroll Holding Ltd. has appointed
PricewaterhouseCoopers (PwC) for another term of one year as its auditing company. PwC is the Group
Auditor of Interroll Group since 2011. Mr. Patrick Balkanyi is the lead auditor with audit responsibility
since 2012.

Audit fees
The audit fees charged by PwC to subsidiaries of Interroll Group in the business year 2013 amounted to
CHF 0.4 million. The audit fees charged by PwC in 2012 amounted to CHF 0.4 million.

Additional fees charged by PwC
In 2013, PwC branch offices charged a total of CHF 0.02 million for tax and other consulting services(fees for such services charged in 2012: CHF 0.04 million).

Supervisory and control instruments pertaining to the audit
The Audit Committee is responsible for evaluating the external audit. The external auditors prepare an
audit report to be submitted to the Board of Directors. At least two consultations are held each year between
the external auditors and the Audit Committee. Material findings for each entity (Management Letters)
as well as for the consolidated accounts are presented in the “Comprehensive Auditor’s Report to the Boardof Directors” which is discussed in detail.

73

Infor M atIon polICy

Corpor ate GovernanCe

15 InforMatIon polICy
Contact person
Interroll is committed to providing swift, transparent and simultaneous information for all stakeholders.
To ensure that, the CEO is available as a direct contact person.

Published reports on the course of business
Interroll Group publishes comprehensive financial results twice a year: for the first half and for thefinancial year as a whole. In addition to the financial results that are carried out in accordance with IAS/IFRS,
shareholders and financial markets are regularly kept informed of significant changes and developments.

Source of information
Further relevant information and financial reports are available from www.interroll.com reports can be
downloaded as PDF documents from www.interroll.com. Shareholders recorded in the share register may
request to receive the Annual Report in printed form and register for automatic submission of the annual reportwith the Investor Relations department.

74Interroll Group

fInanCIal report: ContentS

fInanCIal reportof Interroll Group
Contents
1

Consolidated financial statements of Interroll

76

1.1

Consolidated statement of financial position

76

1.2

Consolidated income statement

77

1.3

Consolidated statement of comprehensive income

78

1.4

Consolidated statement of cash flows

79

1.5

Consolidated statement of changes in equity

80

Notes to the financial statement of Interroll Group81

2

General information to the financial statements

81

3

R isk management

99

4

Changes to the scope of consolidation

103

5

Operating segments

106

6

Notes to the consolidated statement of financial position

107

7

Notes to the consolidated income statement

130

8

Other disclosures to the financial statements

137

9Report of the statutory auditor

141

75

fInanCIal report: StateMent of fInanCIal poSItIon

Interroll Group

1 ConSolIdated fInanCIal StateMentS of Interroll
1.1 Consolidated statement of financial positionin thousands CHF

seenotes*

31.12.2013

in %31.12.2012
restatedin %01.01.2012
restated

1)

in %

1)

aSSetS
Property, plant and equipment

6.1

83 26676 82882 107

Intangible assets

6.3

53 05439 15240 687

732

890

932

7.6

3 387

2 838

960

Financial assets
Deferred tax assets
Total non-current assets

140 43954.4

119 70852.6

124 686

Non-current assets held for sale

6.2

–

–

950

Inventories

6.5

38 11935 59545 100

706

741

528

58 16457 43957 654Current tax assets
Trade and other accounts receivable

6.6

Cash and cash equivalents

6.7

20 79714 10952.1

10 522

Total current assets

117 78645.6

107 88447.4

114 754

47.9

Total assets

258 225

100.0

227 592

100.0

239 440

100.0

eQuIty and lIaBIlItIeS
Share capital

8 540

8 540

8 540

Share premium

13 73920 42726 630Reserve for own shares–1 641–17 670–21 018

Translation reserve–45 454–44 319–43 856

Retained earnings

211 916

190 659

173 010145–

Non-controlling interests
6.10

187 245

Non-current financial liabilities

6.12

253

5 025

5 271
2 441

72.5

157 63769.3

143 306

Deferred tax liabilities

7.6

5 071

2 300

Pension liabilities

6.15

2 824

3 469

1 179

Provisions

6.14

5 902

5 322

5 256

Total non-current liabilities

14 0505.4

16 116

7.1

14 147

Current financial liabilities

6.12

320

396

Current tax liabilities

7.6

9 831

9 068

9 264

Trade and other accounts payable

6.16

46 77944 37549 87359.9

5.9

22 850Total current liabilities

56 93022.0

53 83923.7

81 987

34.2

Total liabilities

70 98027.5

69 95530.7

96 134

40.1

Total liabilities and shareholder’s equity

258 225

100.0

227 592

100.0

239 440

100.0* See notes to the consolidated financial statements.
1)
See remarks regarding restatement in chapter 2.1 (IAS 19R).

76–

Total equity

Interroll Group

fInanCIal report: InCoMe StateMent

1.2 Consolidated income statementin thousands CHF

see notes*

2013

in %

2012

in %

restated 1)

Sales
Material expenses

316 334100.0

307 155

100.0–131 878–41.7–128 056–41.7

7.1 & 6.15

–94 131–29.8–89 692

–29.2

–771

–0.2

–5 951–1.9

Other operating expenses

7.3–52 516–16.6–52 798–17.2

Other operating income

7.4

8 341

2.6

10 456

3.4

45 37914.3

41 114

13.4

Personnel expenses
Increase/(Decrease) in work in progress,
finished products and own goods capitalized

Operating result before depreciation
and amortisation (EBITDA)
Depreciation

6.1–11 389–3.6–10 824–3.5

Amortisation

6.3–6 799–2.1–5 469–1.8

Operating result (EBIT)

27 191

8.6

24 821

8.1

Finance expenses–1 689–0.5–1 304–0.4

Finance income

145

0.0

540

0.2

–1 544

–0.5

–764

–0.2

25 647

8.1

24 0577.8–5 041–1.6–4 683–1.5

20 606

6.5

19 374

6.3

Finance result, net

7.5

Result before income taxes
Income tax expense

7.6

ResultResult attributable to:– Non-controlling interests– Owners of Interroll Holding Ltd.

62

0.0

–

–

20 544

6.5

19 374

6.3

Values per share (in CHF)
Non-diluted earnings (result) per share

6.11

24.84

24.25

Diluted earnings (result) per share

6.11

24.71

24.21

8.00

7.00

Distribution out of reserves from capital contributions* See notes to the consolidated financial statements.
1)
See remarks regarding restatement in chapter 2.1 (IAS 19R).

77

fInanCIal report: StateMent of CoMprehenSIve InCoMe

Interroll Group

1.3 Consolidated statement of comprehensive incomein thousands CHF

see notes*

2013

in %

2012

in %

restated 1)

Result20 60619 374

Other comprehensive income
Items that will not be reclassified to income statement
Remeasurement of pension liabilities903–2 194

Income tax on items that will not be reclassified

–182

469

Total items that will not be reclassified to income statement721–1 725–1 144–463––

Total items that may be reclassified subsequently to income
statement–1 144–463

Other comprehensive income–423–2 188Comprehensive income

20 18317 1866.15

Items that may be reclassified subsequently to income
statement
Currency translation differences
Income tax on items that may be reclassified

Result attributable to:– Non-controlling interests– Owners of Interroll Holding Ltd.
* See notes to the consolidated financial statements.
1)
See remarks regarding restatement in chapter 2.1 (IAS 19R).

78

62
20 121

6.4––

17 186

5.6

Interroll Group

fInanCIal report: StateMent of CaSh floWS

1.4 Consolidated statement of cash flows
in thousands CHF

see notes*

2013

2012
restated 1)

ResultDepreciation, amortisation and impairment

20 60619 374

6.1 & 6.3

18 18816 293

6.2, 7.3 & 7.4

206–1 260Financing result, net

7.5

1 544

734

Income tax expense

7.6

5 041

4 689

Changes in inventories–2 8708 678

Changes in trade and other accounts receivable

3 580

181

Changes in trade and other accounts payable

1 380–5 137

Loss/(gain) on disposal of tangible and intangible assets

Changes in provisions, net

6.14

Income tax paid
Personnel expenses on share based payments

7.1

Other non-cash income
Cash flow from operating activities

1 256

181

–5 855–6 597

1 012

964

396

76

44 48438 176

Acquisition of property, plant and equipment

6.1–14 444–6 564

Acquisition of intangible assets

6.3–1 641–4 082

–129

–20

75

2 580

288

42

Acquisition of financial assets
Proceeds from disposal of property, plant and equipment

6.2

Settlement of loans receivable
Acquisition of subsidiaries, net of cash acquired–23 739

–

154

102

Cash flow from investing activities–39 436–7 942Distribution out of reserves from capital contributions–6 520–5 594

4Interests received

Purchase of own shares

–143

–

Sale of own shares

14 988

1 750

Proceeds from financial liabilities

469

49

Repayment of financial liabilities–5 815–22 502

Interests paid

–407

–276

Cash flow from financing activities

2 572–26 573

Translation adjustments on cash and cash equivalents

–932

–74

Change in cash and cash equivalent

6 688

3 587

Cash and cash equivalent at 1 January
Cash and cash equivalent at 31 December

6.7

14 10910 52220 79714 109* See notes to the consolidated financial statements.
1)
See remarks regarding restatement in chapter 2.1 (IAS 19R).

79

fInanCIal report: StateMent of ChanGeS In eQuIt yInterroll Group

1.5 Consolidated statement of changes in equity

in thousands CHF

see notes*

Balance at 31 December 2011

Share
CapitalreServe
Share for own
premium
ShareS

tranSlation
reServeretainedearningS

26 630–21 018–43 856

172 989
21

21

8 540

26 630–21 018–43 856

173 010143 306

19 37419 374

Result1)

143 285

Other comprehensive income,net of taxes1)–463–1 725–2 188

Total comprehensive income1)–463

17 64917 186

Distribution from reserves
from capital contributions, net
Share based payments

7.1

Sale of own sharesincl. tax effects

6.10

Balance at 31 December 2012

8 540

–5 594––5 594

–320

1 284

964

–289

2 064

20 427–17 670

1 775–44 319

Result190 659
20 544

Other comprehensive income,net of taxes–1 144721

Total comprehensive income–1 14421 265Distribution from reserves
from capital contributions, net

157 63762

20 606–423

62

20 183–6 521––6 520Share based payments

7.1

–114

1 127

1 013

Sale of own sharesincl. tax effects

6.10

–52

15 04514 992

Purchase of own sharesincl. tax effects

6.10

–143

–143

Acquisition of non-controllinginterests

4

Balance at 31 December 2013
* See notes to the consolidated financial statements.
1)
See remarks regarding restatement in chapter 2.1 (IAS 19R).

80

total eQuIty

8 540

Restatement
Balance at 1 January 2012

nonControllingintereStS

8 540

13 740–1 641–45 463

211 924

83

83

145

187 245

INTERROLL GROUP

GENER aL INfOR m aTION TO ThE fINaNcIaL sTaTEmENTs

2 Gener al InforMatIon to the fInanCIal StateMentS
2.1 Convention of preparation
General notes to the convention of preparation
The 2013 consolidated financial statements of Interroll Group are based on the annual financial statementsof Interroll Holding Ltd., Sant’Antonino and its subsidiaries as of 31 December 2013, drawn up according
to uniform Group accounting principles. The consolidated financial statements present a true and fair viewof the financial position, results of operations and cash flows in accordance with the International Financial
Reporting Standards (IFRS) and comply with Swiss law.
The consolidated financial statements are based on historical cost except for marketable securities,
investments not involving significant influence and derivative financial instruments, which are stated
at fair value.
The preparation of financial statements in conformity with IFRS requires management to make judgments,
estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities,
income and expenses. These judgments, estimates and assumptions are based on historical experienceand other factors that are believed to be reasonable under the given circumstances. Actual results may differ
from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that period
or in the period of the revision and future periods if the revision affects both current and future periods.
Judgments made by management in the application of IFRS that have a significant effect on the consolidated
financial statements and estimates with a significant risk of material adjustment in the next years are disclosed under “2.2 – Critical accounting estimates and judgments”.

81Gener al Infor m atIon to the fInancIal statements

Interroll GroUP

New and amended IAS/IFRS standards and interpretations coming into effect in 2013
The Group’s results are in line with IAS/IFRS standards and interpretations. Thus, the Group regularly
monitors the amendments and new standards published by the International Accounting Standards Board(IASB). In the course of the business year 2013, the following amended standards and interpretations
were enacted:– Amendment of IAS 1 (effective as per 1.7.2012, presentation of other comprehensive income)– Amendment of IAS 7 (effective as per 1.1.2013, netting of financial assets with financial liabilities)– New: IFRS 10 (effective as per 1.1.2013, consolidated financial statements)– New: IFRS 11 (effective as per 1.1.2013, joint arrangements)– New: IFRS 12 (effective as per 1.1.2013, disclosure of interests in other entities)– Amendments of IFRS 10, 11, 12 (effective as per 1.1.2013, consolidated financial statements)– New: IFRS 13 (effective as per 1.1.2013, fair value measurement)– Amendment of IAS 19 (effective as per 1.1.2013, employee benefits)– Amendment of IAS 27 (effective as per 1.1.2013, separate financial statements)– Amendment of IAS 28 (effective as per 1.1.2013, investments in associates and joint ventures)– Amendment of IAS 36 (effective as per 1.1.2014, but already adopted by 1.1.2013, information on
the recoverable amount of non-financial assets)– Annual improvement project 2011 (effective as per 1.1.2013)
The application of these new and amended standards and interpretations have no significant effect on the
consolidated financial statements of the Interroll Group results, with the exception of IAS 1, IFRS 13 and
IAS 19 (amended) as follows:
IAS 1, Presentation of other comprehensive income
The standard requires companies to divide the items presented in other comprehensive income into
two categories – depending on whether they are posted in the future on the income statement (so-called“recycling”) or not. The presentation of comprehensive income in 2013 was adapted to the new rules.
IFRS 13, Fair value measurement
The standard describes how the fair value shall be determined and expands related disclosures. The information in Section 6.8 Financial instruments has been amended according to the new rules.
IAS 19, Employee Benefits
The principle effects of adopting IAS 19 (amended) on the financial statements of Interroll Group are
as follows:– Elimination of the corridor method: in future, actuarial gains and losses (new “Remeasurements”) are to
be captured at the event of the occurrence in other comprehensive income.
– Calculation of pension costs: The annual cost of defined benefit pension plans include now the netinterest expense or the income calculated on the net position of the plan using the discount rate for thedefined benefit obligations.
– Past service costs are recognised immediately in profit or loss at the event of the occurrence.
– Risk sharing: The new provision on the sharing of risk between the employees and the employer has
an impact on the defined benefit obligation and the distribution of the service cost.

82

INTERROLL GROUP

GENER aL INfOR m aTION TO ThE fINaNcIaL sTaTEmENTs

The adoption of IAS 19 (amended) led to adjustments in prior periods (Restatement) as well as to changes in
section 6.15 Employee benefits. The effects on the respective positions of the income statement, statementof comprehensive income, the balance sheet, cash flow statement and the equity statement of prior periods
are presented below:

Consolidated statement of financial positionin thousands CHF

31.12.2012
reported

31.12.2012
revaluationin %restatedaSSetS
2 118

720

2 838

Total non-current assets

Deferred tax assets

118 988720

119 708

52.4

Total assets

226 872720

227 592

100.0

Retained earnings

192 385–1 726

190 659

Total equity

159 363–1 726

157 637
3 469

eQuIty and lIaBIlItIeS

Pension liabilities

70.2

–

3 469

Provisions

6 345–1 023

5 322

Total non-current liabilities

13 6702 446

16 116

6.0

Total liabilities

67 5092 446

69 955

29.8

Total liabilities and shareholder’s equity

226 872720

227 592

100.0

83

Gener al Infor m atIon to the fInancIal statements

Interroll GroUP

Consolidated income statementin thousands CHF

2012

2012

reportedrevaluation

restated

Personnel expenses–89 6942–89 692

Operating result before depreciation
and amortisation (EBITDA)

41 112

2

41 114

Operating result (EBIT)

24 8192

24 821

Finance expenses–1 274–30–1 304

Finance result, net

–734

–30

–764

Result before income taxes

24 085–28

24 057

Income tax expense–4 6896–4 683Result19 396–22

19 374

Values per share (in CHF)
Non-diluted earnings (result) per share (in CHF)

24.25

–0.0

24.25

Diluted earnings (result) per share (in CHF)

24.21

–0.0

24.21

Distribution from reserves from capital contributions

7.00

–

7.00

reportedrevaluation

restated

19 396–22

19 374–2 194–2 194

Consolidated statement of comprehensive incomein thousands CHF
Result2012

2012

Other comprehensive income
Items that will not be reclassified to income statement
Remeasurement of pension liabilities
Income tax on items that will not be reclassified
Total items that will not be reclassified to income statement

–

469

469

–1 725–1 725

Items that may be reclassified subsequently to income statement

84

Currency translation differences

–463

–463

Total items that may be reclassified subsequently
to income statement

–463

–

–463

Other comprehensive income–463–1 725–2 188Comprehensive income

18 933–1 74717 186

INTERROLL GROUP

GENER aL INfOR m aTION TO ThE fINaNcIaL sTaTEmENTs

Consolidated statement of cash flows
in thousands CHF
Result2012
revaluation

restated

19 396–22

19 3745422

76

38 176–

38176

Other non-cash income
Cash flow from operating activities

2012

reported

Consolidated statement of changes in equity
in thousands CHF

2012

2012

reportedrevaluation

restated

Balance as per 1 January 2012143 28521

143 306

Result19 396–22

19 374

Other comprehensive income–463–1 725–2 188Comprehensive income

18 933–1 74717 186

Other equity changes–2 855––2 855

Total equity as per 31 December 2012159 363–1 726

157 637

Future new or revised IAS/IFRS standards and interpretations
The following new or revised standards and interpretations were enacted before the balance sheet date
but will come into force later. Interroll does not early adopt these standards and interpretations in its
consolidated financial statements:– Amendment to IAS 19 (effective as of 1/7/2014, employer benefits: employee contributions)– Amendment to IAS 32 (effective as of 1/1/2014, Offsetting financial assets with financial liabilities)– New: IFRS 9 (effective date open, Financial Instruments)– Amendment to IAS 39 (effective as of 1/1/2014, novation of derivatives and continuation of hedge
accounting)Group Management currently analysis potential effects of other new or amended standards and interpretations on the consolidated financial statement. Interroll Group closely follows discussions on IAS/IFRS
standards and checks potential effects on group financial statement or disclosure requirements. At the
moment being, the Group expects only minor impacts in the presentation of the financial statements and nomaterial impact on the annual financial statements.

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Interroll GroUP

2.2 Critical accounting estimates and judgments
When preparing the consolidated financial statements, Group Management and the Board of Directors
must make estimates and assumptions concerning the future. The resulting accounting estimates havean impact on the Group's assets, liabilities, income and expenses. Also, these estimates have an impact on
the presentation of financial statments. Estimates made are assessed continuously and principally underlie
historical experiences and other factors. The resulting accounting estimates can, by definition, deviate fromthe actual outcome.
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying
amount of assets and liabilities within the next financial years are discussed below:a) Income tax expense
The Holding company and its subsidiaries are subject to income taxes in various countries. Significant
judgment is required in determining the required worldwide provision for current and deferred income
taxes and the realization of tax losses carried forward. There are many transactions and calculations
made for which the final tax determination is uncertain in the year under review. In case final tax assessments or tax audits of such matters are different from the amounts that were initially recorded, such differences may materially impact income tax expenses of the current period. The assessment of deferred tax
assets is done with reference to business plans. Capitalised effects of losses carried forward are subject
to annual review. Losses carried forward are only capitalised if they are usable within the next three years
under valid fiscal law in respective countries. The relevant figures are outlined in note 7.6.
b) Recoverable amount of goodwill, patents and licenses
The assessment of the recoverable amount of goodwill and other intangible assets is, by definition,subject to uncertainties regarding expected future cash flows. It requires making assumptions
and calculating parameters, whose adequacy will only turn out in the future. We refer to comments
made under note 6.3 that also includes the relevant carrying amounts.
c) Provisions
Liabilities from warranty are a result of the operational business of the Group. These provisions are accrued at balance sheet date based on historical experience. The actual cash flow can be lower or higher or
specific requests can be covered by insurance.
The assessment of provisions and pension liabilities is, by definition, subject to uncertainties regarding
future cash flows. It requires making assumptions and determining parameters, whose adequacy will
only become clear in the future. We refer to comments made under notes 6.14 and 6.15, which also include the relevant carrying amounts.

86INTERROLL GROUP

GENER aL INfOR m aTION TO ThE fINaNcIaL sTaTEmENTs

2.3 principles of consolidation and valuation
General notes to the principles of consolidation
The consolidated financial statements of Interroll Holding Ltd. include the parent company’s financial
statements and the financial statements of all directly or indirectly held Swiss and foreign subsidiaries
where the parent company holds more than 50% of the voting rights or effectively exercises control throughother means.
The full consolidation method is applied, whereby the assets, liabilities, income and expenses are fully
incorporated. The proportion of the net assets and net income attributable to minority shareholders
is presented separately as minority interest in the consolidated statement of financial position, the consolidated income statement and the consolidated statement of comprehensive income.
Accounts payable to, accounts receivable from, income and expenses between the companies included in
the scope of consolidation are eliminated. Intercompany profits included in inventories of goods produced
are also eliminated.
Subsidiaries acquired during the year are included in the consolidated financial statements from the dateon which control is obtained, while subsidiaries sold are excluded from the consolidated financial statementsfrom the date on which control is given up. The capital consolidation at acquisition date is effected on
the purchase method. The acquisition price for a business combination is defined by the sum of assets andliabilities acquired or incurred, measured at fair value, and of the sum of equity instruments issued. Transaction costs related to a business combination are expensed. The goodwill resulting from such businesscombination is to be recognised as an intangible asset. It corresponds to the excess of the sum of the acquisition price, the amount of non-controlled interests of the entity acquired, the fair value of equity instruments
held already held before over the balance of assets, liabilities and contingent liabilities at fair value. For thevaluation of non-controlled interests there are options per transaction. Either the non-controlled interests
is valued at fair value or based on the proportion of the net assets acquired at fair value related to the noncontrolled interests. An eventual negative goodwill is immediately recognised in the income statement after
review of the fair value of the net assets acquired and eliminated against the purchase price. The goodwill
is subject to a yearly impairment test or even before if indications for an early impairment test exist.
Changes in the amount of holding which do not result in a loss of control are considered to be transactions
with equity holders. Any difference between the acquisition price paid respectively the consideration received and the amount, by which the non-controlled interests value is adjusted, is recognised in the equity.

87Gener al Infor m atIon to the fInancIal statements

Interroll GroUP

Investments in associates are investments where the parent company is either (directly or indirectly) entitledto 20% to 50% of the voting rights or has considerable influence through other means. Investments inassociates are accounted for by applying the Equity Method. Under this method, the investment is initially
recorded at the purchase price and subsequently increased or decreased by the share of the associate’s
profits or losses incurred after the acquisition, adjusted for any impairment losses. The Group’s share of
results of associates is recognised in the income statement and in the statement of comprehensive income
under share of profit and loss of associates. Goodwill included in the purchase price, representing any excess
of consideration over the Group’s share in net assets of the associate, is recognised as part of the investment’s
carrying amount. Dividends received during the year reduce the carrying amount of such investments.
Investments of which the Group does not hold a significant position of voting rights or of which theGroup holds less than 20%, are not consolidated but stated at their estimated fair value. Such investments arepresented under financial assets at their estimated fair value. Any fair value adjustments are recognised inretained earnings. Fair value adjustments are recycled through the income statement at the date of disposal.

Foreign currency translation
The consolidated financial statements are presented in Swiss Francs (CHF). All assets and liabilities of
the consolidated foreign subsidiaries are translated using the exchange rates prevailing at the closing date.
Income, expenses and cash flows are translated at the average exchange rates for the year under review.
The foreign currency translation differences resulting from applying different translation rates to the statement of financial position, the income statement and the statement of comprehensive income are added toor deducted from the line translation reserve of the equity. The same principle is applied for those resulting
from the translation of the subsidiaries’ opening net asset values at year end rates and those arising fromlong term intercompany loans (net investment approach).
Transactions in consolidated entities where the transaction currency is different from the functional
currency of the entity are recorded using exchange rates prevailing at the time of the transaction. Gains orlosses arising on settlement of these transactions are included in the income statement. Monetary assets andliabilities denominated in foreign currencies are translated using the exchange rates prevailing at year end(closing date). Any gains or losses resulting from this translation are also recognised in the income statement.

88

INTERROLL GROUP

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The following most important exchange rates were used for the translation of financial statements
denominated in foreign currencies:

1 EUR

InCoMe StateMent

BalanCe Sheet(averaGe rateS)(year end rateS)

2013

2012

1.229

1.204

Changein % 31.12.2013

31.12.2012

Change
in %
1.7

2.1

1.228

1.207

1 USD

0.924

0.932

–0.9

0.890

0.915

–2.7

1 CAD

0.894

0.934

–4.3

0.837

0.919

–8.9

1 GBP

1.446

1.484

–2.6

1.473

1.479

–0.5

1 SGD

0.738

0.750

–1.6

0.705

0.749

–5.9

1 CNY

0.150

0.148

1.7

0.147

0.147

0.1

1 JPY

0.010

0.012

–18.8

0.009

0.011

–19.8

1 PLZ

0.292

0.289

0.9

0.296

0.296

–0.3

1 THB

0.030

0.030

–0.3

0.027

0.030

–9.0

1 ZAR

0.095

0.114

–16.8

0.084

0.108

–21.9

1 DKK

0.165

0.162

1.9

0.165

0.162

1.7
–16.2

1 AUD

0.886

0.968

–8.4

0.796

0.950

1 CZK

0.047

0.048

–1.5

0.045

0.048

–6.7

1 BRL

0.427

0.477

–10.5

0.377

0.447

–15.6

100 KRW

0.084

0.083

1.4

0.085

0.086

–1.4

2,3f
t20

Current/Non-current distinction
Current assets are assets expected to be realised within one year or consumed in the normal courseof the Group’s operating cycle or assets held for trading purposes. All other assets are classified as
non-current assets.
Current liabilities are liabilities expected to be settled by use of cash generated in the normal course of theGroup’s operating cycle or liabilities due within one year from the reporting date. These also include shortterm borrowings made as part of credit limits granted for an indefinite period, but subject to a termination
period of less than one year from reporting date. All other liabilities are classified as non-current liabilities.

89

Gener al Infor m atIon to the fInancIal statements

Interroll GroUP

Segment reporting
Since 1 January 2011, Interroll Group consists of one single business unit. The complete product range
is sold in all markets through the respective local sales organisation. The customer groups being OEM’s(original equipment manufacturers), system integrators and end users are taken care of by tailor-made productofferings and differentiated consulting levels. The Interroll manufacturing units focus on the productionof specific product ranges. Assembly units receive semi-finished products from the manufacturing units andassemble a wide product range for their local markets. The Interroll Research Center, which is centrally
located, develops new application technologies and new products for all product groups. The manufacturing
units continuously refine the current product ranges they are focused on.
Group Management and the Interroll management structure are organised by functions (Overall Management, Products & Technology, Global Sales & Service, Corporate Marketing and Corporate Finance). The
financial management of the Group by the Board of Directors is effected on one hand by turnover of the
product groups and geographical markets and on the other hand by the reporting of the consolidated financial statements. Group Management additionally assesses the achievement of financial and qualitative
targets of all legal entities.
Based on the current management structure, financial reporting to the chief operating decision makers
is carried out in one reportable segment which is equal to the consolidated statements of the Group.

90

INTERROLL GROUP

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Statement of cash flows
The statement of cash flows presents, net of any foreign exchange rate effects, cash flows during the year
classified by operating, investing and financing activities, thereby providing information about the changesof cash and cash equivalents during the reporting period. Cash equivalents are held for the purpose of meeting the Group’s short term cash commitments rather than for investment or any other purposes. The effectof foreign exchange rate changes on cash and cash equivalents in foreign currencies is disclosed separately.
Net cash from operating activities is determined using the indirect method, whereby the net result
for the year is adjusted for:a) effects of transactions of non-cash nature;b) deferrals or accruals of past or future operating cash receipts or payments;c) items of income or expense associated with investing or financing cash flows.

Impairments
The carrying value of long term non-financial assets except assets from retirement benefits and assets fromdeferred taxes are assessed at least once a year. If indications for an impairment exist, a calculation of
the recoverable amount is performed (impairment test). For goodwill, other intangible assets with an indefinite useful lifetime and intangible assets which are not yet available for use, the recoverable amount is calculated regardless of the existence of indications of a decrease in value. If the carrying value of such an asset or
the cash generating unit to which such an asset belongs is to exceed the recoverable amount, an adjustment
is recognised through the income statement. Impairments on a cash generating unit or a group of cash
generating units are first adopted on the goodwill and are thereafter proportionally split onto the other assetsof the unit (or the Group).
The recoverable amount is the higher value of fair value less selling costs and value in use. The estimatedfuture discounted cash flows are evaluated to determine the value in use. The discounting rate appliedcorresponds to a pre-tax rate which reflects the risk related to the assets. If an asset does not largely generate independent cash flows, the recoverable amount of the cash generating unit is calculated to which theasset concerned belongs to.
Impairments on the remaining assets are reversed if the estimations made in the calculation of therecoverable amount have changed and either has resulted in a reduction of the impairment amount or no
impairment is required anymore. An appreciation in value of the goodwill may not be performed.

91

Gener al Infor m atIon to the fInancIal statements

Interroll GroUP

Derivative financial instruments
Derivatives financial instruments are stated at fair value. The method of recognising gains or losses depends
on the type of the underlying transaction. The Group designates certain transactions with derivatives
as either hedges of the fair value of recognised assets or liabilities (fair value hedges); or hedges of highly
probable forecasted financial transactions (cash flow hedges). The Group documents at the inception of
the transaction the relationship between hedging instruments and hedged items within the context of its risk
management objective and strategy. The Group also documents its assessment of the effectiveness of thederivatives at acquisition and during its term in relation to both, the values hedged or also in view of future
cash flows.
Changes in fair value are recognised as follows:a) Fair value hedges
Changes in the fair value of derivatives designated and qualified as fair value hedges are recorded in theincome statement, together with any changes in the fair value of the hedged assets or liabilities.
b) Cash flow hedges
Changes in fair value of derivatives designated and qualified as cash flow hedges are recognised in equity.
Amounts accumulated in equity are recycled to the statement of comprehensive income in the periods
when the hedged item will affect profit or loss. When a hedging instrument expires or is sold, or whena hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity
at that time remains in equity and is recognised when the initial transaction is ultimately recognisedin the income statement. When a forecast transaction is no longer expected to occur, the cumulative gainor loss that was reported in equity is immediately transferred to the income statement.
c) Other securities or financial instruments
Certain derivatives do not qualify for hedge accounting. Changes in the fair value of such hedging instruments are recognised immediately in the income statement. The fair value of derivatives traded in publicmarkets is based on quoted market prices at the balance sheet date. The quoted market price used forfinancial assets is the current bid price; the appropriate quoted market price for financial liabilities is thecurrent ask price. The fair value of derivatives which are not traded publicly (for example, “over-thecounter” derivatives) is determined by a valuation provided by the financial institution from whom thederivative has been acquired.

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INTERROLL GROUP

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2.4 accounting principles: statement of financial position
Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and any impairment losses.
Non-current assets acquired by way of finance leases are recognised at the lower of the present value of
future minimum lease payments and fair value, and depreciated accordingly. The related leasing liabilities
are presented at their present value.
Depreciation is recognised on a straight-line basis over the estimated useful life and considering a potential
residual value. The following useful economic life terms apply to the Group's main asset categories:
Buildings

25 years

Machinery

10 years

Vehicles5 years

Office machines and furniture

5 years

Tools and moulds

5 years

IT infrastructure

3 years

Components of major investments in fixed assets with different estimated useful lives are recognised
separately and depreciated accordingly. Estimated useful lives and estimated residual values are revised ona yearly basis as per reporting date and resulting adjustments are recorded in the income statement.
Assets under construction which completion has not yet been concluded or which cannot be used yet
are capitalised based on incurred costs as per closing date. Respective depreciation is recognised when theconstruction can be used.
Interests directly related to the acquisition or construction of property, plant and equipment is capitalised
and allocated to the related asset.

93Gener al Infor m atIon to the fInancIal statements

Interroll GroUP

Intangible assets
Intangible assets include goodwill, intangible assets purchased in the course of business combinations(patented and unpatented technology, customer relationship), licenses and patents and similar rights
acquired from third parties as well as software acquired from third parties. These assets are stated at costvalue and are are amortised on a straight-line basis over the following, expected useful life time:Standard software
ERP software
Customer relationshipPatents, technology and licenses

3 years
8 years
5 –10 years
6 years

Acquired customer relationship are customer values identified within the scope of IFRS 3. They are amortised based on their estimated melt off being a period of 5 –10 years. In markets in which Interroll holds
a solid market position, customer value is amortised over 10 years. A shorter amortisation period is definedin markets with stiff competition.
Patents and technical know-how are amortised over their expected useful life. In view of the innovative
market and competition environment the amortisation period has been determined to be 6 years.
Furthermore, intangible values acquired within business combinations may be identified. Such result
from individual contractual agreements. These values are amortised over the period deviated from thecontractual agreement.
Goodwill and intangible assets with an indefinite useful life are allocated to specific cash generating units
in order to allow the identification of possible impairment. Such impairment tests are carried out on a yearlybasis and any impairment is recognised in the income statement. Goodwill arising from the acquisition of
a foreign entity is attributed to that entity’s net assets and reported in the functional currency of that entity
being translated to the Group’s reporting currency at the year end rate.

Financial assets
Financial assets mainly comprise loans receivable that are stated at amortised cost less any valuation
allowance. The recognition of interest income is based on the effective interest rate method. Moreover, thisitem includes investments of less than 20%. They are stated at their estimated fair value. Any fair value
adjustments are recognised in the equity and are recycled in the income statement only at the date of disposal
or when impairment arises.

94

INTERROLL GROUP

GENER aL INfOR m aTION TO ThE fINaNcIaL sTaTEmENTs

Non-current assets held for saleTangible assets or a group of assets are classified as “non-current assets held for sale” if their carrying value
will most probably be realised in a divestment transaction rather than by being used in the normal courseof business. Such assets are brought actively onto market and should be sold within one year. Non-current
assets held for sale are presented at the recoverable amount, which is the lower of book value or fair valueless costs to sell.

Inventories
Inventories are stated at the lower of cost (purchase price or Group production cost) and net realisable value.
The cost of inventories is calculated using the weighted average method. Production overheads are allocatedto inventories on a proportional basis. Slow moving goods and obsolete stocks are impaired. Intercompany
profits included in inventories are eliminated by affecting net result.

Trade and other accounts receivable
Trade and other accounts receivable are stated at amortised cost, generally equalling nominal value.
The amount of valuation adjustments corresponds to the difference between the carrying amount and thenet present value of the future estimated cash flow. The valuation adjustments include individual impairment for specifically identified positions, where indication exists that the outstanding amount might not be
fully recovered.
Lump sum impairment covers expected losses that cannot be excluded based on historical data and payment
statistics. As soon as sufficient evidence is available that the receivable will definitively not be recovered,
the related amount is directly written off and offset with the specific individual impairment respectively.

Marketable securities
Marketable securities are stated at their fair value as of balance sheet date. Unrealised gains and losses
are included in the financial result.

Cash and cash equivalents
Cash and cash equivalents include cash on hand, postal and bank accounts, as well as credit balances
payable on demand and deposits with a residual maturity of not more than 90 days at acquisition date.
These balances are stated at nominal value.

95

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Interroll Group

Shareholders’ equity
Shareholders’ equity is categorised as follows:a) Share capital
The share capital contains the fully paid in registered shares.
b) Share premium
Share premium comprises payments from shareholders that exceed the par value as well as realised
gains/losses including tax on transactions with own shares.
c) Reserve for own shares
The acquisition price of own shares is disclosed as a reduction of shareholders’ equity. Realised gains andlosses on transactions with own shares are recognised in share premium. Compensation and cash inflows
resulting from the issue and subsequent possible exercise of share options are credited to the Groups’
reserves.
d) Translation reserve
Translation reserve consists of accumulated translation differences resulting from translation of groupsubsidiaries’ financial statements with a functional currency other than Swiss Franc and of equity-alikeintercompany loans. The changes in currency differences is presented in the consolidated statementof comprehensive income.
e) Retained earnings
Retained earnings contain not distributed profits.

Financial liabilities
Loans payable and overdrafts are stated at amortised cost. The recognition of interest expenses is basedon the effective interest rate method.

Provisions
Provisions relate to product warranties and impending losses whose amount and timing is uncertain. They
are recognised if the Group has an obligation based on past occurrences at balance sheet date or a cash
drain is probable and can be reliably determined. The amounts recognised represent management’s best
estimate of the expenditure that will be required to settle the obligation. Providing the effect is material,
long-term provisions are discounted.

96

INTERROLL GROUP

GENER aL INfOR m aTION TO ThE fINaNcIaL sTaTEmENTs

Retirement benefits
The Group sponsors pension plans according to the national regulations of the countries in which it
operates. All significant pension plans are operated through pension funds that are legally independent
from the Group. Generally, they are funded by employees’ and employers’ contributions. The foreignpension schemes are normally defined contribution plans whereby the pension expense for a period equals
the companies’ contributions during that period. The Swiss and French pension schemes have certain
characteristics of a defined benefit plan; the financial impact of this plan on the consolidated financial statements is determined based on the Projected Unit Credit Method.

Trade accounts payable
Trade accounts payable are stated at amortised cost, generally equalling nominal value.

2.5 accounting principles: income statement
Revenue recognition, income from services
Revenue is generally recognised upon delivery (transfer of risk and use), depending on the size and thecomplexity of the order, when technically approved by the customer. The Group establishes appropriate
warranty provisions relating to rendered services in order to cover expected claims. Services which theInterroll Group performs in direct relation to its core products sold are recognised upon delivery in net
sales. The Group performs services to third parties in connection with administrative tasks and freight.
Furthermore, the Group grants distribution licenses to selected franchisees. Revenue resulting from these
services are disclosed as other operating income in the income statement.

Material expenses
Material expenses include all costs of raw materials and consumables used, goods purchased and thirdparty manufacturing, processing or conversion of the Group’s products (services purchased).

Product development
Expenditure on research and development is only capitalised when the cumulative recognition criteria of
IAS 38 are met. Expenses for product development include wages and salaries, material costs, depreciationof technical equipment and machinery dedicated to research and development, as well as proportional
overhead costs. Such expenses are included in the respective line item of the income statement.

97

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Interroll Group

Employee participation plans
Certain employees participate in equity based compensation plans of Interroll Holding Ltd. All equity based
compensation granted to these employees is valued at fair value at grant date and recognised as personnel
expense over the period until vesting date. The fair value is calculated on the basis of the Binomial method.
Discounts granted to beneficiaries on the unconditional purchase of Interroll shares are recognised in theincome statement at grant date. Cash inflows resulting from equity based participation plans are recognised
as an increase in equity. Cash compensated participation plans are recognised as other liabilities and arevalued at fair value at balance sheet date.

Operating lease expenses
Property, plant and equipment that are held under operating leases are not recognised on the statement offinancial position. The operating lease expense is recognised in the income statement on a straight-line
basis over the lease contract period. Operating lease obligations depending on revenues are estimated andaccrued as they become due.

Financial result
Interest expenses on loans and finance lease liabilities are recognised as financial expenses, whereasinterest income on financial assets is recognised in financial income, both on an accrual basis. Moreover, thefinancial result includes foreign exchange gains and losses arising from the translation of items of thestatement of financial position and transactions in foreign currencies as well as changes in fair value offinancial instruments.

Income tax expense
Current income taxes are calculated on the statutory results of the Group companies at the enacted or
substantively enacted tax rate. They also include adjustment charges and credit notes issued on previous
years’ results.
Changes in deferred taxes are generally recognised in the income tax position, unless the underlying
transaction has been directly recognised in the other comprehensive income. In such case the related
income tax is also directly recognised in the statement of comprehensive income or in equity. Temporary
differences resulting from initial recognition of assets and liabilities are not recognised in the income
statement. Temporary differences on the participation value of subsidiaries are not recognised if it is probablethat the temporary differences will not go into reverse in the foreseeable future.
Deferred taxes are calculated using local enacted or substantively enacted tax rates. The future benefits of
tax loss carry-forwards are recognised as an asset if it is probable that future taxable profits will be available
to realise such benefits.

98

Interroll GrouprISk ManaGeMent

3 rISk ManaGeMent
3.1 operational and strategic risk management
Risk management on group level supports strategic decision making. Operational and strategic risk
management coordinates and monitors risks arising from the economic activities of the Group.
A systematic operational and strategic risk analysis is performed annually by Group Management. In anannual strategy meeting, Group Management discusses and analysis such risks. The Board of Directors isregularly informed in a uniform manner with the nature, scope, assessment and counteractive measures of
the risks.

3.2 financial risk management
General information to the financial risk management of Interroll GroupThe Group’s activities expose it to a variety of financial risks: market risk (currency risk, interest rate risk
and price risk), credit risk, liquidity risk and cash flow risk. The Group’s risk management program focuseson the unpredictability of financial markets and seeks to minimize potential adverse effects on Group’s
financial performance.
The Board of Directors has the supreme responsibility for risk management. The Board of Directors
appoints thereto the Audit Committee, who is responsible for the development and the supervision of therisk management principles. The Audit Committee reports regularly to the Board of Directors.
The principles established for risk management are geared to identify and analyse those risks that may
impact the Group, to define adequate limits and to perform controls over the risks and their adherence to.
The risk management principles and the related procedures are regularly verified in order to consider
changing market conditions and operations of the Group. The target is to develop management regulations
and management processes and a disciplined and constructive control environment through existing
training and guidelines ensuring a disciplined and conscious handling of risks.
The Audit Committee supervises management in the control of compliance with principles and processes.
Their adequacy is permanently verified in respect of the risks that the Group is exposed to. The Audit
Committee is supported in this respect by the internal audit department.

99

rISk ManaGeMent

Interroll Group

Financial risk management is carried out by the central treasury department. Group Treasury identifies,
evaluates and reduces financial risks in close co-operation with the Group’s operating units and reports atregular intervals to the Audit Committee.
The following sections provide a summary of the scope of individual risks and on the targets, principles andprocesses implemented for measuring, monitoring and hedging financial risks. Additional information on
the financial risks is included in the notes to the consolidated financial statements (see note “6.9 – Financial
risks”).

Market Risk
Market risks to which Interroll Group is exposed to can be summarised into the following three main risk
categories:a) Currency risk exposure
The Group operates internationally and is exposed to foreign exchange risks arising from various currencies. Foreign exchange risks arise from future commercial transactions and from recognised assets andliabilities. To manage its foreign exchange risk arising from future commercial transactions and recognised assets and liabilities, the Group operates an internal monthly “netting” process. Net exposure
resulting from assets and liabilities recognised is partially reduced using forward currency contracts. Suchcontracts are entered into only with high-credit-quality financial institutions. Furthermore, the decentralised structure of the Group contributes to a substantial reduction of foreign currency exchange risks.
b) Interest rate risk
Financial assets and liabilities contain interest bearing loans at either a fixed or a variable rate. Relatinginterest risks are disclosed in 6.9.
c) Price risk
The Group is exposed to raw material price changes (steel, copper, technical polymers) as well as to pricechanges on financial liabilities and assets. Raw material price risks are not hedged while risks from financial assets and liabilities may partially or fully reduced using derivative financial instruments (as describedin 2.3 – Principles of consolidation and valuation, section “derivative financial instruments”).

100Interroll GrouprISk ManaGeMent

Credit Risk
The risk of default is the risk to incur a financial loss when a customer or a counterparty to a financial instrument does not fulfill its legal obligation. The default risk at Interroll exists on trade and other accounts
receivable and on cash and cash equivalents.
Customers exceeding EUR 5 000 credit limit are verified for their creditworthiness before the order is
executed. The creditworthiness verification is also based on the credit information database provided by aninternational service provider leading in this sector. Their software allows determining a credit limit per
single customer, based on specifically determined calculation formulas. The calculation formulas have been
defined by Interroll Group.
Accumulation of credit risks in trade and other accounts receivable is limited due to numerous customers
and their worldwide location. The extent of credit risks is mainly determined by the individual characteristics of each single customer. The risk evaluation includes an assessment of the creditworthiness by considering the customer’s financial situation, its credit history and other factors. Sales and revenue from services
are performed only with customers whose credit worthiness is proved through the above process. A credit
limit is defined for each customer. These limits are verified at least once a year.
Interroll invests its funds in short term deposits at a multitude of banks with whom long standing relationships exist. Such deposits have a maturity date shorter than twelve months. Likewise, transactions with
derivative financial instruments are entered into only with major financial institutions. Interroll does nothold material open positions with these institutions.
The maximum credit risk from financial instruments corresponds to the balance sheet amount ofeach single financial asset. There are no guarantees or other liabilities that could increase the risk overthe corresponding amount in the statement of financial position.

Liquidity Risk
Liquidity risk is the risk that the Group cannot fulfil its financial obligations on time.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, theavailability of funding through an adequate amount of committed credit facilities and the ability to closemarket positions at any time. Due to the dynamic nature of the underlying business, Group Treasury
aims to ensure funding by keeping committed credit limits available.

101

rISk ManaGeMent

Interroll Group

3.3 Capital risk management
Objectives and principles of capital management
It is the objective of Interroll Group to safe-guard its going concern by the definition and adherence
to a strong base of equity. Such equity level is defined based on the operational and balance sheet risk of theGroup. Refunding of the Group shall be adapted to the asset structure and allow further growth of thebusiness. The distribution of a regular portion of the profits shall be made possible based on the realisationof an appropriate return on equity.

Equity ratio targets and pay-out ratio
Based on above targets and principles, Group Management aims at a long-term equity ratio of approximately
50 %. The ordinary pay-out ratio corresponds to about 30 % of net profits. This ratio may deviate dependingon the general economic outlook and the planned future investment activities.

Key figures to capital management
The following table discloses some essential key figures in regards to capital risk management.
Further notes can be found in the inbounds of the annual report.
in million CHF, if not stated differently

2013

2012

Total assets

258.2

227.6

Net financial assets

20.2

8.7

Gearing (net debts/equity)

n/a

n/a

Operating cash flow

44.5

38.2

Indebtedness factor (net debt/cash flow)

n/a

n/a

Equity

187.2

157.6

Equity ratio (equity in % of assets)

72.5

69.3

Result20.5

19.4

Return on equity (in %)

11.9

12.8

Non-diluted earnings per share (in CHF)

24.84

24.25

Distribution per share (in CHF)

8.80

8.00

Pay out ratio (in %)

35.4

33.0

Debt Covenants
Determined debt covenants for comitted credit lines over CHF 40 million demand an equity ratio of at least
35 % (see 6.9 Financial risks – Credit facilities and debt covenants)

102

Interroll Group

ChanGeS to the SCope of ConSolIdatIon

4 ChanGeS In the SCope of ConSolIdatIon
Changes in business year 2013
New companies
Interroll’s business activities in Italy were conducted by the newly formed Interroll Italia S.r.l. in Rho near
Milano since June 2013. Previously, Interroll was represented in the Italian market by Rulmeca. The newcompany was consolidated as from 1 July 2013. Furthermore, as from November 2013 Interroll started witha new company in Atlanta/USA. The effects of the establishment of these new companies had no material
impact on the Interroll Group’s consolidated financial statements in the 2013 reporting year.

Acquisitions
As at 10 July 2013, 100 % of the shares in the Portec Group International, Inc. in Cañon City, USA wereacquired for a purchase price of CHF 25.3 million, providing control over the Portec Group. The company
produces belt curves and primarily sells to customers from the airport, postal services and logistics sectors
in the USA, Europe and Asia-Pacific. At the same time, 100 % of the shares in Portec Inc., Cañon City,
USA, and 60 % of the shares in Portec Asia Ltd., Hong Kong, China, were also acquired.
The value of the net assets acquired totalled CHF 17.9 million. Goodwill amounted to CHF 7.4 million.
It is not expected that the goodwill will be deductible for income tax purposes. Intangible assets amounting
to CHF 13.0 million mainly comprised customer relationships, trademarks and patents. The purchase priceallocation was not final as at the reporting date of 31 December 2013.
It is expected that Interroll’s presence in US airports will be strengthened, in particular, following thisacquisition. In addition, cost savings as a result of synergies are anticipated. The goodwill amounting to
CHF 7.4 million resulted from the customer base and major synergies expected from the integration ofPortec Group into Interroll.

103

ChanGeS to the SCope of ConSolIdatIon

Interroll Group

Allocation of net assets acquired
The following overview shows in summary paid purchase price for the acquisition as well as the values of
the identified assets and liabilities as per acquisition date. In addition, it shows the non-controlling interestsof Portec Asia Ltd. as per acquisition date, which corresponds to 40 % of the net asset value of the company.
2013

2012

fair value

fair value

Property, plant and equipment

3 640

–

Intangible assets

12 977–

Deferred tax assets

608

in thousands CHF

Total non-current assets
Other receivables

17 225–44

Inventory

1 619

Trade receivables

4 597

–

Cash & cash equivalents

1 591

Total current assets

7 851

–

Total assets

25 076–

Trade payables

1 531

Bank loans

431

Other short-term accounts payable29

Accrued expenses & deferred income

437

Deferred tax liabilities

4 462

Provisions

201

Minority interests

92–

Total liabilities

7 183

–

Total net assets acquired

17 893–

Goodwill acquired

7 436

–

Total acquisition costs

25 329–Cash flow from acquisitions
The full amount is for the acquisition of Portec Group International, Inc. (short: Portec) and was settled in
cash.
2013

2012

Settled in cash for the acquisition of CSA Conveyor

25.3

–

./. acquired liquid funds from Portec

–1.6

–

Net cash used in acquisitions

23.7

–

in millions CHF

104

Interroll Group

ChanGeS to the SCope of ConSolIdatIon

Further notes to acquisitions
Acquisition-related expenses of CHF 0.24 million were stated under consultancy expenses in the profit andloss account for financial year 2013.
The fair value of trade receivables amounted to CHF 4.6 million. The gross amount of trade receivables due
totalled CHF 4.9 million. Of this amount, it is expected that CHF 0.3 million will be irrecoverable.
Since 10 July 2013, Portec Group has made a contribution totalling CHF 8.6 million to Interroll Group’s
sales revenue. Its share in the profit for the same period of time amounted to CHF 0.5 million.
Had Portec Group already been consolidated from 1 January 2013, sales revenue of CHF 327.9 million and a
profit of CHF 21.3 million would have been reported in Interroll Group’s profit and loss account.

Changes in business year 2012
In the previous year, there was no acquisition of subsidiaries or business activities respectively. There werealso no payments due from previous acquisitions.

105

oper atInG SeGMentS

Interroll Group

5 oper atInG SeGMentS
Sales and non-current assets by geographical markets
Sales and non-current assets according to geographical markets is presented as follow:
SaleS

in thousands CHF

2013

in %

2012

in %

non-Current aSSetS

2013

in %

2012

in %

Other EMEA

140 91544.5

136 992

44.6

12 914

9.5

13 854

11.9

Germany

58 063

18.4

73 25423.8

50 33736.9

53 06845.8

Switzerland

4 034

1.3

4 983

1.6

42 07230.9

37 624

32.4

Total Europe,
Middle East, Africa (EMEA)

203 01264.2

215 22970.1

105 32377.3

104 54690.1

USA

54 936

17.4

42 49413.8

26 513

19.4

5 902

5.1

Other Americas

13 2004.2

14 083

4.6

1 465

1.1

1 822

1.6

Total Americas

68 136

21.5

56 57718.4

27 978

20.5

7 724

6.7

Total Asia-Pacific

45 186

14.3

35 349

11.5

3 019

2.2

3 710

3.2

Total Group316 334100.0

307 155

100.0

136 320

100.0

115 980

100.0

The key definition of turnover has been defined according to the invoice address. Switzerland is the country of domicile of Interroll
Holding Ltd. Non-current assets are disclosed excluding financial assets and deferred tax assets.

Information about major customers
Sales are realised with more than 10 000 customers. There is no customer achieving a turnover of more than four percent
of Group sales.

Sales by product group
Sales realised by product group is presented as follow:

106

in thousands CHF

2013

in %

2012

in %

2011

in %

Drives

109 447

34.6

99 29732.3

95 13235.0

Rollers

75 40623.8

80 42826.2

83 212

30.6

Conveyors & Sorters

71 164

22.5

69 34722.6

42 75815.7

Pallet & Carton Flow

60 31719.1

58 08318.9

50 83018.7

Total Group316 334100.0

307 155

100.0

271 932

100.0

Interroll Group

noteS to the ConSolIdated StateMent of fInanCIal poSItIon

6 noteS to the ConSolIdated StateMent of fInanCIal poSItIon
6.1 property, plant and equipment
Movements of property, plant and equipment
land &
Building

in thousands CHF

produCtion
equipment &maChinery

offiCe equipment& motor vehiCleS

aSSetS under
ConStruCtion

total
property, plantand eQuIpMent

2013

2012

2013

2012

2013

2012

2013

2012

2013

2012

74 90574 78287 79688 197

8 287

8 765

805

1 999

171 793

173 743

Currency translation adj.

242

–659

–495

–670

–95

–64

3

–13

–345

–1 406

Additions

8 137

449

3 884

4 440

1 416

1 675

1 007

–

14 444

6 564

Disposals–99–8–1 120–6 001–874–1 245–––2 093–7 254

–

341

544

1 830

2

–844

–546

–1 181

–

146

Cost
At 1.1.

Reclassifications
Changes in the scopeof consolidation*

2 435

–

1 125

–

68

–

12

–

3 640

–

At 31.12.

85 62074 90591 73487 796

8 804

8 287

1 281

805

187 439

171 793–26 359–23 562–63 095–61 648–5 511–6 426–94 965–91 636

–151

243

394

456

81

22

324

721

–3 007–2 823–7 349–6 973–1 033–1 028–11 389–10 824
6 920

Accumulated Depreciation& impairments
At 1.1.
Currency translation adj.
Depreciation
Disposals

75

5

1 069

5 931

713

984

1 857

Reclassifications

–

–222

–

–861

–

937

–

–146

At 31.12.

–29 442–26 359–68 981–63 095–5 750–5 511–104 173–94 965

Property, plant andequipment at 31.12.

56 17848 54622 75324 701

3 054

2 776

83 26676 828

Capital commitments**
Insurance value***

1 281

805

–

5 187

1 227

1 646

16

82

1 243

6 915

104 235

85 357

116 776

119 664––

221 011

205 021* Detailed information on the changes in the scope of consolidastion is disclosed in note 4.
** Capital commitments for land and buildings are related to the erection of the Regional Center of Excellence in Atlanta.
*** The insurance value of production equipment and machinery also covers other tangible assets.

Further notes to property, plant and equipment
At the end of the period under review no risks exist in the opinon of Group Management which negatively impacted the book valueof fixed assets.

6.2 non-current assets held for saleIn the year under review 2013 there are no non-current assets held for sale. In the first half of 2012 both buildings held for sale
(Spain and Wassenberg/Germany) were sold for a total of CHF 2.2 million. The profit realised on these sales was CHF 1.2 million
and is included in other operating income.

107

NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

INTErrOLL grOuP

6.3 Intangible assets
Movements of goodwill and intangible assets

in thousands CHF

goodwill

SoftwarepatentS,
teChnology andliCenCeS

CuStomer
relationShip

total
IntanGIBle
aSSetS

2013

2012

2013

2012

2013

2012

2013

2012

2013

2012

At 1.1.

12 12512 17429 99426 12813 528

13 77320 73920 98876 38673 063Currency translation adj.

–470

–49

–21

–19

–356

–91

–261

–125

–1 108

–284

–

–

1 641

4 082

–

–

–

–

1 641

4 082

Cost

Additions
Disposals

–

–

–106

–197

–

–154

–

–124

–106

–475

Reclassifications

–

–

–

–

–

–

–

–

–

–

Changes in the scopeof consolidation*

7 436

–

–

–

8 342

–

4 635

–

20 413–

At 31.12.

19 09112 12531 50829 99421 51413 52825 11320 73997 22676 386

Accumulated amortisation& impairments
At 1.1.

–3 126–3 126–6 757–4 096–13 458–13 332–13 893–11 822–37 234–32 376

Currency translation adj.

–

–

19

20

–169

88

–50

72

–200

180

Amortisation–––3 611–2 877–683–368–2 505–2 224–6 799–5 469

Disposals

–

–

61

196

–

154

–

81

61

431

Reclassifications

–

–

–

–

–

–

–

–

–

–

At 31.12.

–3 126–3 126–10 288–6 757–14 310–13 458–16 448–13 893–44 172–37 234

Total intangible assets, net
at 31.12.

15 9658 999

21 22023 237

7 204

70

8 665

6 846

53 05439 152

–

–

1

1 244

–

–

–

–

1

1 244

Capital commitments* Detailed information on the changes in scope of consolidastion is disclosed in note 4.

Goodwill: impairment test
The impairment tests are generally based on a three year plan and on the present value of future (pre-tax) cash flows (value in use)
determined using a discount rate before tax of 12.0 % (previous year: 10.4 %). The growth rate and the discount rate were defined as
key assumptions. No further growth was assumed for the extrapolation of free cash flows.

Sensitivity analysis to the goodwill impairment tests
The sensitivity analysis performed resulted in both years under review in the conclusion that the discounted value of future free
cash flows exceeds the value of the current goodwill also when assuming a change of the discount rate under normal economical
conditions. The growth rate was reviewed in regards to its sensitivity. This test lead to the conclusion that the discounted valueof future cash flows exceeds the value of the current goodwill position even if no growth is assumed.

108

Interroll group

noteS to tHe ConSolIDAteD StAteMent oF FInAnCIAl poSItIon

Software
Out of the accumulated acquisition costs, CHF 27.9 million (previous year: CHF 26.7 million) relate to thesetup, design and introduction of SAP. In the year under review the additions to this process management
system amount to CHF 2.7 million (previous year: CHF 3.8 million). Capital commitments for software are
related to the investment and development of SAP.
SAP was launched mid 2011 for the two Centers of Excellence for Drum Motors and Rollers/RollerDrive
as well as for all European sales and service subsidiaries. Development costs incurred until that date in theamount of CHF 19.5 million were capitalised mid 2011 and are subject to amortisation over 8 years. In thethird quarter of 2012, SAP was also launched in the Center of Excellence for Supermarket Products, in the
Regional Center of Excellence for Rollers and Drum Motors in the USA as well as in several sales subsidiaries
in Asia-Pacific. Respective development costs of CHF 6.9 million were capitalised and are subject to amortisation over 8 years since October 2012. During the reporting period SAP became active with Interroll China
and the launch in the Competence Center Automation was designed. Respective development costs of
CHF 0.5 million were capitalised in December 2013 and are subject to amortisation over 8 years. Further
developments to introduce this ERP in other production sites were undertaken already and respective investments amounted to CHF 1.0 million. No amortisation has been recognised so far on these amounts.

Patents and licenses
Patents and licenses are normally amortised on a straight line basis over 6 years. At year end 2013, due tothe acquistion of Portec, an amortisation term of additional 6 years remains on the major portion of patents
and licenses. A review if indicators exist that point towards an impairment of patents and licenses was performed. There are no signs that would indicate an impairment of this value.

Customer relationship
Customer relationship is normally amortised on a straight line basis over 10 years. At year end 2013, anamortisation term of additional 7 years remains on the major portion of customer relationship. A review if
indicators exist that point towards an impairment of customer relationship was performed. There are nosigns that would indicate an impairment of this value.

109

NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

INTErrOLL grOuP

6.4 assets pledged or assignedin thousands CHF

31.12.2013

31.12.2012

Land & buildings

1 317

1 299

Trade receivables

161

593

1 478

1 892

31.12.2013

31.12.2012

Total assets pledged or assigned

These assets are pledged respectively assigned to local credit lines granted (see liquidity risk in note 6.9).

6.5 Inventories
Detailed overview on the positions belonging to the inventory
in thousands CHF
Raw materials

27 05024 879Work in progress

12 001

11 824

Finished products

969

1 097

Valuation allowance–1 901–2 205

Total inventory, net

38 11935 595in thousands CHF

2013

2012

Balance per 1.1.

–2 205–1 886

No inventory was pledged in both years under review.

Developement of valuation allowance on inventory

Currency translation adjustment
Additions
Reductions
Total valuation allowance on inventory per 31.12.

56

36

–583

–734

831

379

–1 901–2 205The addition of valuation allowances is due to slow or non moving items within the inventory. The reduction of valuation
allowance on inventory is related to sale or scrap of items, as well as to a reassessment of the valuation allowance affecting
the consolidated income statement of the Group.

110Interroll group

noteS to tHe ConSolIDAteD StAteMent oF FInAnCIAl poSItIon

6.6 trade and other accounts receivable
Detailed overview of trade and other accounts receivable
Trade accounts receivable arise from deliveries and services relating to the Group’s operating activities. VAT, whithholding tax
and other current receivables are included in the other accounts receivable. The other accounts receivables are analised for valuation
adjustment like trade receivables. There was no valuation adjustment necessary on other accounts receivable in both years underreview.
in thousands CHF

31.12.2013

31.12.2012

51 60852 648Trade accounts receivable from goods and services
Valuation allowance–2 873–2 376

Total trade accounts receivable, net

48 73550 272

Prepaid expenses and accrued income

1 501

1 223

Prepayments for inventories

2 273

1 244

Other accounts receivable

5 496

4 700

Forward exchange dealing

159–

Total other accounts receivable

9 429

7 167

Total trade and other accounts receivable, net

58 16457 439Aging and valuation allowance of trade accounts receivable
Trade accounts receivables are due and specific/general valuation allowance have been evaluated as follows:
31.12.2013

in thousands CHF
groSS

valuation allowanCe
individualnet

31.12.2012
groSS

ColleCtive

valuation allowanCe
individualnet

ColleCtive

Not past due

34 209–78

34 13134 53234 532

Past due 1–30 days

8 036

–1

8 035

10 893

10 893

Past due 31–60 days

3 259

–

3 259

3 337

Past due 61–90 days

1 599

–

1 599

684

–11

Past due > 90 days

4 506

–1 813

–982

1 711

3 202

–1 158–1 207837

Total trade accounts
receivable

51 609–1 892–982

48 73552 648–1 169–1 20750 272

3 337
673

111

NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

INTErrOLL grOuP

Development of the individual and collective valuation allowance of trade accounts receivable
The valuation allowance on trade accounts receivable from third parties developed as follows:
2013

2012

valuation allowanCe

valuation allowanCein thousands CHF

At 1.1.

total

individualColleCtive

total

individualColleCtive–2 376–1 169–1 207–2 407–1 191–1 216

243

264

–21

11

2

9

–1 557–1 557

–655

–655

242

242

Currency translation adjustment
Additions
Alllowance used

581

581

Allowance reversed

236

–10

246

433

433

–2 873–1 891–982–2 376–1 169At 31.12.

–1 207

During the year under review, an amount of CHF 0.6 million (previous year: CHF 0.2 million) relating to irrecoverable trade receivables was written off. Currently, no other risks are identifiable in the net trade accounts receivable. Sales are broadly diversified
across geographical and industrial markets. Thus, the risk of unexpected losses from trade receivables is assessed to be low.

Currencies in trade accounts receivable
Trade accounts receivable reported in CHF are denominated from the following currencies:
31.12.2013

in thousands CHF

31.12.2012

in %
EUR

23 105

USD
CNY
THB

in %

44.8

25 051

47.6

10 046

19.5

7 798

14.8

6 244

12.1

4 755

9.0

938

1.8

4 324

8.2

DKK

2 181

4.2

2 325

4.4

all other currencies

9 094

17.6

8 395

16.0

Total trade accounts receivable, gross

51 608100.0

52 648100.0

Regional break down of trade accounts receivable
Trade accounts receivable can be broken down into the following geographical areas:
31.12.2013

in thousands CHF

31.12.2012

in %

in %

Europe, Middle East, Africa

28 72555.7

31 212

59.3

Americas

10 865

21.0

9 276

17.6

Asia-Pacific

12 01823.3

12 16023.1

Total trade accounts receivable, gross

51 608100.0

52 648100.0

At average, trade accounts receivable are 57 days outstanding (DSO). The respective value is for Europe 54, for Americas 58 and for
Asia 69. In the previous year, the DSO was 53 for the Group, for Europe 45, for Americas 64 and for Asia 93.

112

Interroll group

noteS to tHe ConSolIDAteD StAteMent oF FInAnCIAl poSItIon

6.7 Cash and cash equivalents
Positions included in cash and cash equivalentsin thousands CHF
Cash on hand, bank and postal accounts

31.12.2013

31.12.2012

17 53212 559

Short-term deposits

3 265

1 550

Total cash and cash equivalents

20 79714 109Interest rates of cash and cash equivalents
The interest rates on cash and cash equivalents vary between 0 % (for CHF) and 10 % (BRL). The respective rates of 2012 were 0 %(CHF) and 11 % (BRL) respectively .

Currencies hold in cash and cash equivalents
in %31.12.2013

31.12.2012

EUR

39.0

49.0

CHF

3.0

8.0

USD

18.0

14.0

THB

11.0

4.0

JPY

–

2.0

KRW

2.0

4.0

ZAR

3.0

8.0

other currencies

24.0

11.0

Total cash and cash equivalents

100.0

100.0

Transfer limitations on cash and cash equivalents
Cash and cash equivalents of CHF 0.9 million (2012: CHF 1.3 million) at Interroll South Africa as well as at Interroll Brasil are
subject to transfer limitations. These transfer limitations do not have any impact on their operating activities.

113

NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

INTErrOLL grOuP

6.8 financial instruments
Reconciliation from balance sheet items to valuation categories as per IAS 39
The table below shows an overview of financial instruments held by valuation category according to IAS 39:
in thousands CHF

31.12.2013

31.12.2012

Cash and cash equivalents

20 79714 109Trade and other accounts receivable (without townpayments)

55 57356 195732

890

77 10271 194

Financial assets
Total financial assets
at amortised costs
Foreign currency forward contracts*

159

–213

Total financial instruments at fair value

159

–213

34 91633 284573

5 421

35 48938 705Trade and other accounts payable
Financial liabilities
Total financial liabilities
at carrying value* see notes 6.6, 6.9 and 6.16

Book values of cash and cash equivalents, trade and other accounts receivable and payable as well as financial assets amount closely
to fair value due to their short-term maturity. Advance payments for inventory are excluded form the valuation categories as per
IAS 39 because the subsequent transaction is not of monetary nature. Financial assets and liabilities are predominantly due withinapproximately 2 years and their net present values corresponds very closely to their book values.

114Interroll group

noteS to tHe ConSolIDAteD StAteMent oF FInAnCIAl poSItIon

6.9 financial risks
Currency risk exposure
Due to its international focus, Interroll Group is exposed to foreign currency risks. Risk exposures result from transactions
in currencies deviating from the entities’ functional currency.
The following table shows the major currency risks at the respective balance sheet date:
31.12.2013

in thousands CHF
EUR
Financial assets

CHF

USD

SGD

JPY

70

31.12.2012
EUR

CHF

USD

SGD

JPY

2

70

–

–

–

Trade and other accounts
receivable

3 559

532

5 246

2 701

1 486

4 744

1 390

3 024

2 346

1 804

Cash and cash equivalentsincl. intercompany loans

2 089

14 189

2 057

353

3

683

19 486

1 220

–

–

–

4 965

2 196

–

–

6 391

4 534

2 087

2 411

62

3 909

2 725

2 196

–

–

15 72933 17010 723

4 757

1 866

–5 092–21 386–3 721–164–36

10 637

11 784

7 002

4 593

1 830

Financial liabilities
Trade and other accounts payable
Short-term liabilities

7 452
7 114

3 380

3 262

54

17 027267

1 347

Currency risks on the balance
sheet (gross)12 81635 19818 2844 401

Elimination equal currency–5 268–29 204–7 050–92

Currency risks on the balance
sheet (net)

7 548

5 994

11 2344 309

Natural hedges–290

FX forward contracts
Net currency risk exposure

7 258

8

1 497

1 497

–189

–282

–189

–1 355

–912

–220

–

–

–865

–2 705–2 295–880–2 874––1 844–2 577–1 262

4 940

8 247

1 825

617

6 407

10 872

4 938

2 016

568

The curency risk on the balance sheet (gross) is equal to the sum of the value of all positions in the balance sheet that are held in adifferent currency than the functional currency of a company. Such positions contain both, group internal as well as external
amounts. In a first step, all of those risks are added up because a currency risk can arise on the debit as well as on the credit side of
the balance sheet. The total is then disclosed as currency risk on the balance sheet (gross). The risk of each currency group is translated into CHF at the closing rate and added up to total Group values. “Elimination equal currency” results from setting off shortpositions versus long positions of currrency risks which exist in the same foreign currency deviating from the functional currency
and which are presented in the same group entity. Natural hedges result from netting out currency risks among all group entities.
The amount disclosed in line “FX forward contracts” (foreign currency forward contracts) corresponds to the amount actually
hedged and translated into CHF. Changes in the valuation of fair value hedges are recognised in the financing result (see note 7.5).
The table only contains the material foreign currency risks. All others are regarded to be immaterial in both years.
Net investments in foreign subsidiaries are long term investments. Such investments are exposed to currency fluctuation, because
they are held in another currency than the Group’s functional currency. From a macroeconomic and long term point of view, thecurrency exchange effects should be neutralised by the inflation rate at the subsidiaries’ domicile. Due to this reason and also due
to costs for respective derivative instruments, the Group does not hedge such risks.

115

NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

INTErrOLL grOuP

Foreign currency forward contracts
The Group prepares regularly a rolling forecast of foreign currency cash flows. 0–50 % of such budgeted, future foreign currency
flows may be hedged through forward contracts. At the end of the year under review, there were no open cash flow hedges held by
the Group.
The notional amount corresponds to the hedged balance sheet risk, translated into CHF. With derivative financial instruments, theGroup hedges normally 50–100 % of its net currency risks on the balance sheet.
The following table shows the contractual and fair values of the foreign currency forward contracts held by the Group:
31.12.2013

in thousands CHF
Hedgedcurrency

Sell/Buy

maturity

notional
amount in Chf

fair value

Sell/Buy

notional
amount in Chf

fair value

USD

USD/CAD

Feb–14

1 202–35

USD/CAD

1 224

17

USD

USD/CHF

Feb–14

1 503

16

USD/CHF

620

5

SGD

SGD/EUR

Feb–14

1 245

30

SGD/EUR

1 413

–13
–100

SGD

JPY/SGD

Feb–14

1 050

56

JPY/SGD

1 164

EUR

EUR/CHF

Feb–14865–4EUR/CHF

5 749

12

EUR

CHF/EUR

Feb–14––

CHF/EUR

2 874

–4

JPY

JPY/EUR

Feb–14880

71

JPY/EUR

1 262

–131

CNY

CNY/EUR

Feb–141 723

25CNY/EUR

654

–

THB

THB/EUR

Feb–14––

THB/EUR640

1

Total FX forward
contracts** see note 6.16

116

31.12.2012

159

–213

Interroll group

noteS to tHe ConSolIDAteD StAteMent oF FInAnCIAl poSItIon

Sensitivity analysis of the currency risk exposure
As per year end, a sensitivity analysis was carried out in respect to financial instruments. The sensitivity analyses calculates the effect of FOREX – changes on the major currency pairs within the Group. These risks particularly result from different currencies
between costs for production and invoicing currency to the customers. Assumed currency fluctuations would have the following
effects on the foreign currency positions in the balance sheet:
31.12.2013

in thousands CHF

CURRENCY PAIR
Financial assets

31.12.2012

EUR

CHF

CAD

EUR

CHF

CAD

vs. CHF

vs. USDvs. USDvs. CHF

vs. USDvs. USD

70

–

–

70

–

–

Trade and other receivables–1 361879

2 183–1 396338

1 765

Cash and cash equiv. incl. IC-loans

13 069367989

19 464

368

809

–

–

–

4 965

–

–

1 645

–

1 360

2 255

–200

638

Financial liabilities
Trade and other payables
Short-term and current liabilities

17 027

–

–

2 725

2 196

–

Gross exposure per currency pair

30 450

1 246

4 532

28 083

2 702

3 212

Risks opposing each other–23 558––2 721–19 892–1 412–1 276

FX forward contracts–865–1 503–1 202–2 875––1 224

Net FX exposure per currency pair

6 027

–257

609

5 316

1 290

712

2

1

4

2

6

5

Currency change in %Effect on the result (+/–)

121

3

24

532

129

71

Income tax expense at 20.1 %

–24

–1

–5

–107

–26

–14

Net FX exposure after income taxes

97

2

19

425

103

57

Analogously to the currency risk analyis, the net risks of currency pairs are summed up. The position “Risks opposing each other”
is a result of netting out those risks that are contrary to each other. The disclosed amount in line “FX forward contracts” equals thetotal of hedged currency risks of a currency pair. It is also deducted from the gross risk as it deviates linearly with the fluctuation of
the currency. The income taxes are calculated in line with the applicable rate for an ordinary taxed entity in Switzerland (see note 7.6).

117

NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

INTErrOLL grOuP

Interest risks
As per balance sheet date, the Group had interest bearing net financial assets of CHF 3.6 million (previous year: CHF 2.9 million
financial liabilities , see also note 6.12). There are CHF 4 million (previous year: 2.4 million financial assets, of which CHF 0.6 million (previous year: CHF 0.5 million) are not interest bearing. There are financial liabilities of CHF 0.5 million (previous year:
CHF 5.4 million). The portion of not interest bearing financial liabilies was immaterial in both years under review.
The following table divides interest bearing assets and liabilities into fix and variable as well as shows none interest bearing positions
within financial assets and liabilities. A change of the interest rate would have had no effect on equity because the Group currently
does not hold any cash flow hedges to hedge currency risks and because there are no assets held for sale at a fix interest rate. The
Group regularly monitors its interest risks and reserves the possibility to hedge such in future.
31.12.2013

in thousands CHF
Financial assets

nom. int.
rate in %BookvalueSBaSiS pointS
+100
–100

31.12.2012
nom. int.
rate in %BookvalueSFix interest rate

0–2.63

1 593

16

–16

0–3.4

615

Variable interest rate

0–10.3

1 809

18

–18

0–11.01 284

Not interest bearing

–

645

–

541

Total deposits

4 047

34

–34

–

–

–

BaSiS pointS
+100
–100

13

–13

2 440

13

–13

–

–

–

Fix interest rate
Total loans
Cash on hand, bank and postal accounts

17 53212 559Trade and other receivables

55 573

Total other financial assets

73 105––68 75456 195––

Total financial assets

77 15234–34

71 194

13

–13

4 965

–

–

Financial liabilities
Fix interest rate

1.7

Variable interest rate
Total bank loans
Fix interest rate

118

6.0–9.85

–

–

–

310

3

–3

3

–3

Not interest bearing

158

Total other loans

468Bank overdrafts

1

6.0

4 965

–

–

389

–

–

–

–

–
389
67

Trade and other accounts payable

34 916

Total trade and other accounts payable

34 917––33 35133 284––

Total financial liabilities

35 385

3–3

38 705––

Net financial assets

41 76737–37

32 48913–13

Interroll group

noteS to tHe ConSolIDAteD StAteMent oF FInAnCIAl poSItIon

Sensitivity analysis of interest risks
Interest sensitivity is only calculated on interest bearing items of the balance sheet. No effect is calculated
on items bearing interests at a fixed rate. As per above analysis, the Group’s annual result would have changed slightly by CHF 0.04 million in case of an interest rate being one percentage point higher or lower. In
the previous year, an increase of the interest rate of one percentage point, would have changed the Group’s
result only slightly. The result would have improved with an interest reduction of one percentage point by
CHF –0.01 million in the previous year. For certain interest bearing positions, the interest rate is alreadylower than one percent. Therefore, the effect of the reduction was only calculated up to the current interest
rate being lower than 1.0 %.

Liquidity risk
The Group carries out a complete liquidity planning on a quarterly basis. The Group holds liquidity reservesin form of committed and uncommitted credit lines in order to comply with an unexpected and extraordinary liquidity demand.

Credit facilities and debt covenants
The amount of unused credit facilities as per end of the reporting year amounted to CHF 80.6 million(previous year: CHF 77.4 million).
In the year under review, the committed credit lines for an amount of CHF 40.0 million which were agreed
upon in 2009 were extended with the same conditions for another duration of 3 years. They ensure thefunding of the future investment programme and serve generally for the business financing. The Group
always complied with the agreed debt covenants which are the following:
EBITDA: net interest costs= min. 4.0

Net debt: EBITDA= max. 3.0

Equity: total assets= min. 35 %The ageing of the financial liabilities is disclosed in note 6.12 (see “Ageing of financial liabilities”).

119

NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

INTErrOLL grOuP

6.10 Information on shareholders’ equity
Reconciliation from total issued shares to outstanding shares
2013

2012

Issued shares par value CHF 10.00 each (previous year: CHF 10.00)

854 000

854 000

Own shares held by the Group as per 1.1.

51 71860 099Purchase of own shares300––2 964–2 700Attribution of shares relating to bonus plan

–2 580–2 941Attribution of shares related to options exercised–42 625–2 740Own shares held by the Group as per 31.12.

3 849

51 718–43 225

3 849

8 493

850 151

802 282

Sale of own shares

thereof reserved for issuance under option programme
thereof unreserved
Shares outstanding as per 31.12.

6.11 earnings per shareNon-diluted earnings per share
The non-diluted earnings per share in 2013 amount to CHF 24.84 (2012: CHF 24.25). The calclulation is based on the profit
attributable to the equity holders of the parent company, divided by the weighted average of shares outstanding.
2013

2012
restated

Result attributable to the equity holders (in thousands CHF)

20 54419 374

Shares outstanding as per 1.1.

802 282793 901

Effect of the purchase of own shares

120

–

–

Effect of the sale/attribution of own shares

2 177

4 503

Effect of the issue of shares under option plans

22 461

686

Weighted average of shares outstanding

826 920799 090

Non-diluted earnings per share (in CHF)

24.84

24.25

Interroll group

noteS to tHe ConSolIDAteD StAteMent oF FInAnCIAl poSItIon

Diluted earnings per share
The diluted earnings per share in 2013 amount to CHF 24.71 (2012: CHF 24.21). They are calculated
by adjusting the weighted average number of ordinary shares outstanding to include all dilutive potential
ordinary shares.
The potential ordinary shares resulting from the issue of options under the employee stock option plan(see note 7.1) had a dilutive effect in both years under review due to the fact that the strike price (CHF 323)
was below the average share price (current year: CHF 409, previous year: CHF 333) during the year under review. This effect is outlined below.
2013

2012
restated

Result attributable to the equity holders (in thousands CHF)

20 54419 374Weighted average of shares outstanding

826 920799 090

Dilutive effect of share options
Weighted average of shares outstanding (diluted)
Diluted earnings per share (in CHF)

4 562

1 319

831 482

800 409

24.71

24.21

31.12.2013

31.12.2012

6.12 financial liabilities
Details to current and non-current financial liabilities
in thousands CHF
Bank overdrafts/loans

167

Other financial liabilities

215

329

Financial leasing

104–

Total current financial liabilities

320

396

Bank loans

–

4 965

Other loans

253

60

Total non-current financial liabilities

253

5 025

Total financial liabilities

573

5 421

121

NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

INTErrOLL grOuP

Net financial liabilities to equity ratio
in thousands CHF

31.12.2013

31.12.2012

573

5 421

Total financial liabilities./. Cash and cash equivalents–20 797–14 109

Net financial liabilities (-net cash)–20 224–8 688Equity187 245

157 637n/a

n/a

Net financial debt in % of the equity

Loan structure
31.12.2013

in thousands CHF

faCe
value

Carrying
amount623

572

Total other loans

623

Total Loans

623

CurrenCy

122

weighted av.
intereSt rateintereSt due year of
fix/variaBle maturity

Bank loans

CHF

1.70 %

F

2013

Other loans

EUR/DKK

0 %–6.00 %

F

2017

31.12.2012
faCe
value

Carrying
amount

5 041

4 965

413

389

572

413

389

573

5 454

5 354

I n t e r r o l l g r o u p NOTE S TO T H E C ON S OL I D A TE D S T A TE M ENT O F F I N A N C I A L PO S I T I ON

Ageing of financial liabilities
The financial liabilities as per 31 December 2013 are due as follows:in thousands CHF

Book value

Face value(undiscounted)

within6 months

within6–12months

572

623

110

211

1

1

1

within
1–2 years

within
2–5 years

Bank loans
Other loans
Bank overdrafts
Trade/other accounts payable*

34 91634 91634 916

Total financial liabilities

35 48935 54035 027

211

302

–

302

within
1–2 years

within
2–5 years* An ageing analysis is not readily available. Based on past experience, it can be reliably assumed that the full amount is due within less than 6 months.

The financial liabilities as per 31 December 2012 were due as follows:in thousands CHF

Book value

Face value(undiscounted)

within6 months

Bank loans

4 965

5 041

Other loans

389

413

Bank overdrafts

67

67

67

Trade/other accounts payable*

33 49733 49733 497

Total financial liabilities

38 91839 01833 564

within6–12months

5 041
413

5 041

413

–

* An ageing analysis is not readily available. Based on past experience, it can be reliably assumed that the full amount is due within less than 6 months.

123

NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

INTErrOLL grOuP

6.13 leasing liabilities
Finance leases
In the year under review, there were CHF 0.4 million finance leases of which CHF 0.3 million will becomedue in one to five years. In the previous year there were no finance leases.

Operating leases
Liabilities from operating leases mainly relate to building rentals and will become due as follows:
31.12.2013

in thousands CHF

31.12.2012

within 1 year

2 308

2 810

between 1 and 5 years

6 550

4 984

over 5 years

1 539

2 797

Total operating leases

10 397

10 591

In both years under review, operating lease expenses do not include material amounts for contingent rent.

6.14 provisions
Movements in provisions
otherproviSionS

warrantieS

in thousands CHF

2013

2012

2013

2012

total provISIonS

2013

restated

As per 1.1.

5 122

4 916

200

340

5 322

5 256

Currency translation adjustments

–97

–43

4

–3

–93

–46

Provisions made

3 280

3 292

34

200

3 314

3 492

Provisions used

–1 997–2 166––337–1 997–2 503

Provisions reversed

–620

–877

–204

–

–824

–877

Acquired provisions

180

As per 31.12.

124

2012
restated

5 868

5 122

34

200

180

–

5 902

5 322

Interroll group

noteS to tHe ConSolIDAteD StAteMent oF FInAnCIAl poSItIon

Warranty provisions
The Group companies normally grant a 24-month warranty. The warranty provision is recognised basedon past experience as well as on specific projects. The warranty provision corresponds to roughly 1.9 %(previous year: 1.7 %) of net sales. The increase in the percentage of sales is a consequence of more warranty
cases for certain product groups. In absulute terms, the warranty was only increased due to the higher
sales volumes.
Data from the past indicates that between 30 % and 50 % of the warranty provision will be used in
the subsequent year.

Other provisions
The other provisions mainly include provision for litigation. In connection with the restatement related to
IAS 19 pension liabilities were reclassified from other provisions to a separate balance sheet line

6.15 pension obligations and pension costs
General information to the pension plans of the GroupThe pension costs for 2013 amounted to CHF 2.3 million (2012: CHF 1.6 million). Such costs consist of
employer contributions relating to the defined contribution plans and pension costs relating to the defined
benefit plans.
The pension plans in Switzerland and France are regarded as defined benefits plans in line with IAS 19.
In 2012, 192 and in 2013, 201 employees participated in the defined benefit plans. The Swiss plan is outsourced to a collective foundation whereas the plan in France is outsourced to an insurance company. It can beassumed that the assets of both plans do not include Interroll shares.

125

NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

INTErrOLL grOuP

Components of defined benefit costin thousands CHF

2013

2012
restated

Costs of the defined contribution plans

1 477

924

Current service costs, net

802

609

Interest costs

66

28

Costs of the defined benefit plans

868

637

Effects of changes in demographic assumptions–416

Effects of changes in financial assumptions741–1 816

Effects of experience assumptions

123

44

(Return) on plan assets (excl. interest income)

64

–79

Remeasurements included in OCI

928–2 267

Defined benefit cost

3 273

–706

The expected future contributions of the employer will not change materially in future years provided the numberof insured employees remains stable.

Amounts recognised in the statement of financial positionin thousands CHF, as per 31.12.

2013

2012
restated

126

Present value of defined benefit obligation–15 787

Fair value of plan assets

12 962–14 887
11 419Pension liability–2 824–3 468

Interroll group

noteS to tHe ConSolIDAteD StAteMent oF FInAnCIAl poSItIon

Roll forward of the defined benefit obligationin thousands CHF

2013

2012
restated

Benefit obligation as per 1.1.

–14 888–12 191

Current service costs, net

–802

–609

Interest costs

–302

–347

Contributions from employees

–393

–362

Benefits funded/(paid), net

–521

539

Translation difference–96Insurance premiums

263

265

Remeasurements– Effects of changes in demographic assumptions– Effects of changes in financial assumptions– Effects of experience assumptions
Benefit obligation as per 31.12.

–

–416

741

–1 816123

44–15 787–14 887

Roll forward of the present value of plan assets
in thousands CHF

2013

2012
restated

Fair value of plan assets as per 1.1.

11 41811 012

Interest income

236

319

Employer contributions

591

609

Employee contributions

393

362

Benefits funded/(paid), net

521

–539

Insurance premiums

–263

–265

Translation difference2–1

Remeasurements– Income of plan assets

64

–79

12 962

11 4182013

2012

Equity securities

3.0

1.4

Fair value of plan assets as per 31.12.

Investment categories
in %Debt securities

75.2

75.3

Real estate

16.5

16.7

Other investments

5.4

6.6

100.0

100.0

Total Investments in %127

NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

INTErrOLL grOuP

Net defined benefit liability (asset) reconciliation2013

in thousands CHF

2012
restated

Net defined benefit liability (asset) as per 1.1.

–3 469Defined benefit cost included in P/L

–868

–637

Total remeasurements included in OCI

929–2 267

Employer contributions

591

609

Translation difference–75–2 824–3 469Net defined benefit liability (asset) as per 31.12.

–1 179Actuarial assumptions
2013

in %

2012
restated

Discount rate

2.3

2.0

Future salary increases

1.5

1.5

Expected benefit increases

1.8

1.8

Fluctuation rate
Mortality probabilities

10.0

10.0

BVG 2010

BVG 2010

Sensitivities
Discount rate and future salary increases are considered as essential actuarial assumptions.
Following effects are expected:
Discount rate

2.30 %+0.25%–0.25%

Benefit obligation–15 787–15 240–16 424Rate of salary increase

1.50 %+0.25%–0.25%

Benefit obligation–15 787–15 919–15 656

Sensitivities are based on likely possible changes as per end of 2013.

128

Interroll group

noteS to tHe ConSolIDAteD StAteMent oF FInAnCIAl poSItIon

6.16 trade and other accounts payable
31.12.2013

31.12.2012

Trade accounts payable to third parties

13 371

12 356

Advances received from customers

11 86310 878

Total trade accounts payable

25 23423 234

Other liabilities

9 618

8 321

in thousands CHF

Foreign currency forward contracts*–

213

Total other accounts payable

9 618

8 534

Accrued personnel expenses

7 854

7 994

Accrued interest

7

15

Other accrued expenses

4 066

4 598

Total accrued expenses

11 927

12 607

Total trade and other accounts payable

46 77944 375* see note 6.9

Advances received from customers mainly relate to larger projects within the product groups Conveyors &Sorters and Pallet & Carton Flow. Other liabilities include VAT and social security related liabilities. Accrued personnel expenses relate to accrued vacation and bonuses.

129

NOTES TO THE CONSOLIDATED INCOME STATEMENTI nterroll g roup

7 NOTES TO THE CONSOLIDATED INCOME STATEMENT
7.1 Personnel expenses
Details to personnel expenses and number of employees
in thousands CHF

2013

2012

Wages and salaries

77 26073 030Social security costs

11 37411 140Pension costs (see note 6.15)

2 345

1 559

Other personnel related costs

2 139

2 999

Equity based personnel expenses to management personnel

1 013

964

Total personnel expenses

94 13189 692

Thereof production related personnel expenses

41 12539 567

Average number of employees

1 488

1 420

In the period under review 2 580 own shares (previous year: 2 941) were attributed to management members as part of their bonus
scheme. In the year under review 2 175 shares (previous year: 2 174) have been blocked for sale for a period of four to six years as ofgrant date. The shares were valuated at the market value of the attribution date.

Option plan
On 3 March 2006 the Board of Directors approved a management share option plan for the next five years. In the course of thefirst half year of 2010, the option life time and blocked period was extended by two years for plan participants still being employed
without notice as per 31 March 2010. Respective increase in value of the option (CHF 0.7 million) was debited to personnel expenses and credited to capital reserve in the year 2010.
The key data of the changed option plan is as follows:

130

Option life:

3 April 2006–30 September 2013 (previously until 30 September 2011)

Blocked period:

3 April 2006–2 April 2012 (previously until 2 April 2010)

Exercise period:

3 April 2006–30 September 2013 (previously until 30 September 2011)

Strike price:

CHF 323.00 per registered share INRN

Reference price:

Average INRN price from 27 March 2006–31 March 2006 less 4 %Option/share:

1 option entitles to acquire 1 registered share INRN

Option price:

CHF 15 per option

Interroll Group

noteS to the ConSolIdated InCoMe StateMent

The following movements took place in the option plan in the years under review:
31.12.2013

allocated

exercised

expired reclassified 31.12.2012

exercised

Outstanding options––42 625–600

43 225–2 740

Option life until 30.09.2013––42 625–600

43 225–2 740

Option life until 30.09.2011–

Thereof not excercised–

Thereof exercisable–

expired reclassified–––42 625–600

43 225–45 965–2 74045 965All outstanding options have been attributed in 2006 and are exercisable since September 2011. The fair value at the grant date was
CHF 4.7 million (CHF 88.64 per option). The employees’ contribution amounted to CHF 0.8 million (CHF 15 per option). The valuation of the option is always calculated on the basis of the binomial method and is carried out by a specialised institute. Besides
above data on the option plan, the following parameters were used for the valuation:– risk free interest rate of 2.82 %– volatility 25 %– yearly unchanged profit distribution of CHF 6 per INRN
– average share price CHF 337
The options included in the plan are not subject to any vesting condition. In the year under review 42 625 options were exercisedand 600 options expired. This plan ceased as per 30 September 2013.

7.2 research and development expenditures
These expenses are mostly incurred to further develop and complete the product range of the segments. They are included inpersonnel and other operational expenses as well as in depreciation on fixed tangible assets. No expenses have been capitalised as
the preconditions stated in IAS 38 are not met cumulatively.
The Group incurred the following expenses for research and development during the years under review:in thousands CHF

2013

2012

Research and development (R&D) expenditures

8 931

7 781

R&D in % of net sales

2.82

2.53

131

noteS to the ConSolIdated InCoMe StateMent

Interroll Group

7.3 other operating expenses
in thousands CHF

2013

2012

Production related expenses

7 121

6 719

Freight

8 238

7 706

Office, administration and IT services

6 463

8 493

Building costs

5 388

5 157

Travelling and transportation

5 297

5 153

Marketing

4 767

3 742

Consultancy, auditing and insurances

5 739

7 539

Provisions and allowances, net

2 354

2 219

Variable sales costs

2 486

2 267

Non-income taxes

1 776

504

Other expenses and services

2 681

3 299

Loss on disposal of property, plant and equipment/intangible assets

206–

52 51652 798in thousands CHF

2013

2012

Income from commissions, licences and freight

7 869

8 250

Income from services

363

845

Government grants received

109

101

–

1 260

8 341

10 456

Total other operating expenses

7.4 other operating income

Gain on disposal of tangible and intangible assets
Total other operating income132Interroll Group

noteS to the ConSolIdated InCoMe StateMent

7.5 financial resultin thousands CHF
Fair value changes of foreign currency forward contracts
Realised translation gains

2013

2012

–54

–

–1 211–998

Realised translation expenses–37–

Interest expenses

–387

–306

Finance expenses–1 689–1 304Foreign exchange gains, net––

Fair value changes of foreign currency forward contracts–

435Interest income

145

105

Finance income

145

540

Finance result, net–1 544–764

The realised currency loss for the year 2013 is due to a repayment of the loan with Interroll Components
Canada Ltd. to Interroll Holding AG and a waiver on the loan (with equity character) with Interroll Australia
Pty. Ltd. Last year there were no realised currency differences.

133

noteS to the ConSolIdated InCoMe StateMent

Interroll Group

7.6 Income tax expense
Components of income tax expensein thousands CHF

2013

2012

Income taxes relating to the current period

5 274

5 684

Income taxes relating to past periods, net

1 454

226

Current income tax expense

6 728

5 910

Due to temporary differences–1 267–978

Due to tax rate changes

–61

–168

Due to (recognition)/use of tax loss carry-forwards

–321

–79

Adjustments to deferred tax assets

–123

–1

Other effects (including acquisition)

85–1

Deferred income tax expense/(income)–1 687–1 227

Total income tax expense

5 041

4 683

Taxes on capital are included in other operating expenses (see note 7.3).
Deferred tax liabilities of CHF 0.2 million (previous year: CHF 0.2 million) have not been recognised forwithholding and other taxes on the un-remitted earnings. Such distributable earnings which are subject towithholding tax are normally left in the respective companies.

Reconciliation of effective tax ratein thousands CHF

2013

2012

Result before income taxes

25 64724 057

Income tax expenses at the expected tax rate of 20.1 % (2012: 20.1 %)

5 155

4 836

(Tax credits)/tax charges on prior years’ results, net

1 454

226

Effect from deviation to tax rates in Group companies

92

–201

Tax rate changes, net

–61

–168

–1 781–148(use of unrecognised tax losses)/effect of unrecognised tax losses on the current year’s
result, net

293

157

(Reversal of)/write offs on deferred tax assets, net

–123

–1

(Non-taxable income)/non-tax deductible expenses, net

Other effects
Effective (total) income tax expense

12

–18

5 041

4 683

The income tax expense analysis is based on the expected tax rate for an ordinarily taxed company
in Switzerland.

134

Interroll Group

noteS to the ConSolIdated InCoMe StateMent

Tax effects on and expiry dates of losses carried forward
31.12.2013

in thousands CHF
not
aCtIvated

aCtIvated

31.12.2012
not
aCtIvated

aCtIvated

448–

Expiry:
2013
2014

186

–

492

–

2015

–

–

–

–

2016

–

–

–

–

2017

30

–

925

–

14 891

5 177

16 831

1 545

2018 and later
unlimited

9 108

–

7 701

797

Total

24 2155 177

26 3972 342

Tax benefit

7 903

1 767

8 904

759

Thereof unrecognisable–7 903

Deferred tax assets from losses
carried forward–8 904
1 767

759

A tax effect of CHF 1.4 million resulted from new tax losses carried forward of CHF 5.2 million in 2013 ofwhich CHF 0.1 million were capitalised (previous year: new tax losses of CHF 4.6 million with a tax effectof CHF 1.3 million, whereof nil was capitalised).
Deferred tax assets on unused tax losses carried forward and based on temporary differencies are capitalised in case it is probable that such assets can be set off against future taxable profits. Due to the probability
to set off current tax losses carried forward against future profits in various subsidiaries, an amount of
CHF 1.8 million has been capitalised in 2013 (2012: CHF 0.8 million). Interroll considers the future set off
probable based on approved business plans. The majority of non-capitalised deferred tax assets on losses
carried foward concern US-based subsidiaries. The applicable tax rate for both years under review is 39 %.

135

noteS to the ConSolIdated InCoMe StateMent

Interroll Group

Attribution of defered tax assets/liabilities to balance sheet items

x031.12.2013

in thousands CHF
deferred tax
aSSetS

deferred tax
lIaBIlItIeS

31.12.2012
deferred tax
aSSetS

deferred tax
lIaBIlItIeS

Intangible assets

956

1 513

556

548

Property, plant and equipment

663

2 590

340

2 331

Financial assets

194

31

27

10

Inventory

298

62

232

102

Benefits of losses carry forward

1 703

–

759

–

Receivables

226

85

128

190

Total assets

4 040

4 281

2 042

3 181

Long-term debts

124

27

–

12

Provisions

1 196

2 629

1 344

421

Short term debts

188

323

266

145

Other liabilities

28

–

43

118

Total liabilities

1 536

2 979

1 653

696

Set-off–2 189–2 189–1 577–1 577

Total net

3 387

5 071

2 118

2 300

Deferred tax assets and deferred tax liabilities are netted within and between companies belonging
to the same taxable unit.
The reduction of deferred tax assets and liabilities of net CHF 2.2 million (previous year: decrease of
CHF 1.5 million) corresponds to net deferred tax income recognised in the income statement of CHF 1.8 million (previous year: deferred tax income of CHF 0.8 million) and a reclassification from current tax liabilities to deferred tax liabilities in the amount of CHF 0.4 million.
In the year under review no taxes were charged or credited to the equity. In the previous year the credit
amounted to CHF 0.1 million. The other result was charged with CHF 0.2 million in the reporting year andcredited with CHF 0.5 million in the previous year.

136

Interroll Groupother dISCloSureS to the fInanCIal StateMentS

8 other dISCloSureS to the fInanCIal StateMentS
8.1 Contingent liabilities and other commitments
In 2013 Interroll Group has committed to guarantees versus third parties in the amount of CHF 0.3 million (2012: CHF 0.2 million).
These guarantees are in relation to customer orders. There are no further contingent liabilities in both years under review.

8.2 related party transactions
Transactions with related parties
open payaBleS

in thousands CHF

Category

2013

2012

31.12.2013

31.12.2012

Purchase of materials

a

1 751

2 502

115

264

Consulting services

b

2 680

1 747

–

1

IT investments/IT Services

a

221

371

4

6

Other purchases

a+b

Total purchases

193

567

2

3

4 845

5 187

121

274

open reCeIvaBleS

Category

2013

2012

31.12.2013

31.12.2012

Sale of material

a

4 936

5 400

917

1 013

Other incomebin thousands CHF

Total services

232

525

–

103

5 168

5 925

917

1 116

Definition of related parties
Interroll Group defines and categorises its related parties as follows:a) Shareholders of Interroll Holding Ltd. holding more than 3 % of the shareholder capital.
b) Members of the Board of Directors of Interroll Holding Ltd. and legal entities that are directly controlled by them.
c) Members of Group Management of Interroll Group and legal entities that are directly controlled by them.
d) Local managing directors as well as people reporting to them (only for substantial transactions).

137

other dISCloSureS to the fInanCIal StateMentS

Interroll Group

Total compensation to Board of Directors
Total compensation in the year 2013 to the Board of Directors of Interroll Holding Ltd. is CHF 0.54 million (2012: 0.51 million).
The detailed disclosure on the compensation to and shares owned by the Board of Directors and Group Management required by
Swiss law are included in the notes to the financial statements of Interroll Holding Ltd.

Total compensation to Group Managementin thousands CHF

2013

2012

Salaries incl. bonus

3 646

3 845

Post-employment benefits

541

595

Equity based compensation

867

913

5 054

5 353

Total compensation to Group Management

In the period under review as well as in the previous year no loans were granted. For a member of the Executive Management,
which left the Group in the previous year a compensation of CHF 0.3 million was agreed in 2012. This compensation is included in
the totals shown above.
The detailed disclosure of the compensation and equities held by the Group Management in line with Swiss law (OR) can be foundin the notes to the financial statements of Interroll Holding Ltd.

138

Interroll Groupother dISCloSureS to the fInanCIal StateMentS

8.3 Subsequent events
The consolidated financial statements for the year 2013 were approved by the Board of Directors on 4 March 2014 and are subject
to further approval by the General Meeting of the Shareholders on 9 May 2014.
As per 28 February 2014 the activities of the Interroll Dynamic Storage Inc. in Hiram/Atlanta (United States of America) were sold for
USD 1.1 million to the local management. The company had achieved a turnover of CHF 1.7 million in fiscal year 2013. The result
was not essential for the consolidation of Interroll Group.
No event has occurred between 31 December 2013 and 4 March 2014 which would require adjustment to the carrying amountof the Group’s assets and liabilities as per 31 December 2013, or would require disclosure in accordance with IAS 10.

8.4 Scope of consolidation
Name

Share capital in 1 000

Ownership in%

Location (country)

Function Owner

Interroll Holding Ltd.

Sant’Antonino (CH)

F

0

CHF

Interroll SA

Sant’Antonino (CH)

P

HD

CHF

100.0

100 %

Interroll (Schweiz) AG

Sant’Antonino (CH)

S

HD

CHF

5 000.0

100 %Interroll Management AG

Sant’Antonino (CH)

F

HD

CHF

100.0

100 %

Interroll Fördertechnik GmbH

Wermelskirchen (DE)

S

DP

EUR

25.6

100 %

Interroll Engineering GmbH

Wermelskirchen (DE)

P

DHO

EUR

1 662.2

100 %Interroll Automation GmbHSinsheim (DE)

P

DHO

EUR

2 000.0

100 %Interroll Holding GmbH

Wermelskirchen (DE)

F

HD

EUR

500.0

100 %

Interroll GmbH

Wermelskirchen (DE)

D

HD

EUR

25.0

100 %

Interroll Trommelmotoren GmbH

Baal/Hückelhoven (DE)

P

DHO

EUR

77.0

100 %

Interroll SAS

Saint-Pol-de-Léon (FR)

F

HDE

EUR

2 808.0

100 %Interroll SAS

La Roche-sur-Yon (FR)

P

F

EUR

2 660.0

100 %Interroll SAS

Saint-Pol-de-Léon (FR)

S

F

EUR

61.0

100 %

Interroll Nordic AS

Hvidovre (DK)

S

DKP

EUR

67.1

100 %

Interroll Joki AS

Hvidovre (DK)

P

HD

EUR

2 013.8

100 %Portec International Ltd.

Leicester (GB)

D

HDP

GBP

0.0

100 %

Interroll Ltd.

Corby (GB)

S

HDE

GBP

0.0

100 %

Interroll Engineering Ltd.

Corby (GB)

D

HDE

GBP

0.1

100 %

Interroll Italia S.r.l

Rho (IT)

S

HDE

EUR

10.0

100 %

Interroll España SA

Cerdanyola del Vallès (ES)S

HDE/TI

EUR

600.0

100 %

Interroll CZ sro.

Breclav (CZ)

S

HDE

CZK

1 000.0

100 %Interroll Europe BV

Emmeloord (NL)

F

HD

EUR

90.8

100 %

Interroll Polska Sp.z.o.o.

Warszaw (PL)

S

HD

PLZ

100.0

100 %

Interroll Lojistik Sistemleri

Istanbul (TR)

S

HD

TRY

1 000.0

100 %Interroll SA (Proprietary) Ltd.

Johannesburg (ZA)

S

HD

ZAR

0.3

100 %

Switzerland
8 540.0

Europe, Africa excl. Switzerland

139

other dISCloSureS to the fInanCIal StateMentS

NameInterroll Group

Share capital in 1 000

Ownership in%

Location (country)

Function Owner

Interroll Corporation

Wilmington/N.C. (US)

P/S

HD

USD

65.0

100 %

Interroll Automation LLC

Jeffersonville (US)

P/S

HD

USD

0.1

100 %

Portec Group International, Inc.

Cañon City (US)

F

IAU

USD

0.2

100 %

Interroll Engineering West, Inc.

Cañon City (US)

P/S

HDP

USD

33 500.0

100 %Interroll Atlanta LLC

Hiram/Atlanta (US)

P/S

IAU

USD

0.0

100 %

Interroll Dynamic Storage, Inc.

Hiram/Atlanta (US)

P/S

USA

USD

0.0

100 %

Interroll Canada Ltd.

Aurora (CA)

P/S

HD

CAD

1 720.0

100 %Interroll Components Canada Ltd.

Concord (CA)

P/S

HD

CAD

0.1

100 %

Interroll Logistica Ltda

Jaguariuna/S. Paolo (BR)

P/S

E

BRL

1 000.0

100 %Interroll (Asia) Pte. Ltd.

Singapore (SG)

S

HDE

SGD

18 625.0

100 %Interroll Suzhou Co. Ltd.

Suzhou (CN)

P/S

SGP

CNY

42 490.2

100 %Portec Asia Limited

Hong Kong (CN SAR)

S

HDP

HKD

420.0

60 %

Interroll Australia Pty. Ltd.

Victoria (AU)

S

HD

AUD

51.2

100 %

Interroll (Thailand) Co. Ltd.

Panthong (TH)P/S

SGP/HDTHB

100 000.0

100 %Interroll Japan Co. Ltd.

Tokyo (JP)

S

HD

JPY

10 000.0

100 %Interroll (Korea) Corporation

Seoul (KR)P/S

SGP/HDKRW 1 500 000.0

100 %AmericasAsia-PacificFunction:

P = Production, S = Sales, F = Finance, D = dorming

Owner:

HD = Interroll Holding Ltd., HDE = Interroll Europe BV, TI = Interroll SA, DHO = Interroll Holding GmbH, DKP = Interroll Joki AS,
F = Interroll SAS, Saint-Pol-de-Léon, E = Interroll España SA, SGP = Interroll (Asia) Pte. Ltd., Singapore

Movements within the scope of concolidation in 2013
In 2013, Portec Group International, Inc. including the subsidiaries Portec, Inc., Portec International Ltd. and Portec Asia Limited
was acquired. Portec, Inc. is now trading under the name Interroll Engineering West, Inc. Furthermore, in the USA the company
Interroll Atlanta LLC and in Italy the company Interroll Italia S.r.l were set up.

Movements within the scope of concolidation in 2012
In 2012, Transtechnik GmbH was merged with Interroll Trommelmotoren GmbH.

140

Interroll Group

report of the Statutory audItor

9 report of the Statutory audItor
report of the statutory auditor to the General Meetingon the consolidated financial statements 2013

Report of the statutory auditor on the consolidated financial statements
As statutory auditor, we have audited the consolidated financial statements of INTERROLL HOLDING
LTD, which comprise the balance sheet, income statement, statement of comprehensive income, cash flow
statement, statement of changes in equity and notes (pages 76 to 140), for the year ended 31 December 2013.

Board of Directors’ responsibility
The Board of Directors is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with the International Financial Reporting Standards (IFRS) and the requirements of Swiss law. This responsibility includes designing, implementing and maintaining an internal control system relevant to the preparation and fair presentation of consolidated financial statements that are
free from material misstatement, whether due to fraud or error. The Board of Directors is further responsible for selecting and applying appropriate accounting policies and making accounting estimates that arereasonable 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 as well as the International Standards on Auditing. Those standards 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 assessment of the risks of material misstatement of the consolidated financial statements, whether due
to fraud or error. In making those risk assessments, the auditor considers the internal control system relevantto the entity’s preparation and fair presentation of the consolidated financial statements in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the entity’s internal control system. An audit also 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.

141

report of the Statutory audItor

Interroll Group

OpinionIn our opinion, the consolidated financial statements for the year ended 31 December 2013 give a true andfair view of the financial position, the results of operations and the cash flows in accordance with the International Financial Reporting Standards (IFRS) and comply with Swiss law.

Report on other legal requirements
We confirm that we meet the legal requirements on licensing according to the Auditor Oversight Act (AOA)
and independence (article 728 CO and article 11 AOA) and that there are no circumstances incompatible
with our independence.
In accordance with article 728a paragraph 1 item 3 CO and Swiss Auditing Standard 890, we confirm thatan internal control system exists which has been designed for the preparation of consolidated financial
statements according to the instructions of the Board of Directors.
We recommend that the consolidated financial statements submitted to you be approved.
PricewaterhouseCoopers AG

Patrick Balkanyi

Martin Graf

Audit expert

Audit expert

Auditor in charge

Zürich, 4 March 2014142

Interroll holdInG ltd.

fInanCIal StateMentS ContentS

fInanCIal StateMentSof Interroll holdInG ltd.
Contents
1

Financial statements of Interroll Holding Ltd.

144

2

General information to the financial statements

146

3

Notes to the financial statements

147

4

Other disclosures according to Swiss law

149

5

Proposed appropriation of available earnings

153

6

Report of the statutory auditor

154

143

FINANCIAL STATEMENTS

INTErroLL HoLdINg LTd.

1 fInanCIal StateMentS of Interroll holdInG ltd.
1.1 Balance sheet
in thousands CHF

see notes*

31.12.2013

31.12.2012

aSSetSCash and cash equivalents

1 361

701

Accounts receivable from subsidiaries

907

870

Other receivables from third party
Own shares

3.1

Total current assets
Investments
Loans to subsidiaries

278

340

1 641

16 805

4 187

18 716

213 169

213 169

19 298

11 953

Total non-current assets

232 467

225 122

Total assets

236 654

243 838

1 080

386

3.3

eQuIty and lIaBIlItIeS
Trade and other accounts payable from subsidiaries
Trade and other accounts payable from third party

51

27

Accrued expenses

1 180

2 119

Total current liabilities

2 311

2 532

Loans from subsidiaries

3.4

–

4 094

Provision for loan assets and investment risks

3.5

110 771

110 771

110 771

114 865

8 540

8 540

5 209

5 209

7 501

14 022

Total non-current liabilities
Share capital

3.6

Legal reserves– General legal reserve– Share premium– Reserve for own shares

1 641

17 671

Available earnings

100 681

80 999Total shareholders’ equity

123 572

126 441

Total liabilities and equity

236 654

243 838* See notes to the financial statements.

144

3.6

Interroll HoldIng ltd.

FInAnCIAl StAteMentS

1.2 Income statement2013

in thousands CHF
Investment income
Royalty income

2012

575

737

3 005

2 983

Other operating income

5 893

1 414

Financial income

2 397

3 468

Total income

11 870

8 602

Administration expenses

–405

–432

Personnel expenses–1 984–1 763

Other operating expenses–4 379–1 429Financial expenses–1 428–559

Total expenses–8 196–4 183Result before income taxes

3 674

4 419

Income tax expenses
Result

–22

–89

3 652

4 330

1.3 Statement of changes in equity
in thousands CHF
as per 1.1.2012

Share Capital

reServeS from
Capital ContriB.

legal reServereServe for
own ShareS

availaBle
earningS

total

8 540

19 616

5 209

21 01873 322

127 705

4 330

4 330

Result 2012
Distribution from approbrationfrom capital contributions–5 594–5 594

Change of reservefor own sharesas per 31.12.2012

8 540

14 0225 209–3 3473 347–

17 67180 999126 441

3 652

3 652

Result 2013
Distribution from approbrationfrom capital contributions–6 521–6 521

Change of reservefor own sharesas per 31.12.2013

8 540

7 501

5 209

–16 030

16 030–

1 641

100 681123 572

145

Gener al Infor M atIon to the fInanCIal StateMentS

Interroll holdInG ltd.

2 Gener al InforMatIon to the fInanCIal StateMentS
2.1 accounting policies
Current/non-current distinction
Current assets are assets expected to be realised or consumed in the normal course of the Company’s
operating cycle or assets held for trading purposes. All other assets are classified as non-current assets.
Current liabilities are liabilities expected to be settled by use of cash generated in the normal course of
the Company’s operating cycle or liabilities due within one year from the reporting date. All other liabilities
are classified as non-current liabilities.

Foreign currency translation
Transactions in foreign currencies are recorded using exchange rates prevailing at the time of the transaction.
Gains or losses arising on settlement of these transactions are included in the current year’s income underfinancial income and financial expenses respectively. Monetary assets and liabilities denominated in foreign
currencies are translated using the exchange rates prevailing at the balance sheet date. Any gains or losses
resulting from this translation are also included in the current year’s income, except for unrealised gains
which are deferred.

Accounting law
Applying the transitional provisions of the new accounting law, these financial statements have been
prepared in accordance of the Swiss Code of Obligations effective until 31 December 2012.

2.2 principles of valuation
Cash and cash equivalents, accounts receivable and payable
Cash and cash equivalents are stated at nominal value. Accounts receivable are stated at nominal value lessany valuation adjustment for credit risks. Accounts payable are stated at nominal value. Accounts receivablefrom Group companies arise from services provided by Interroll Holding Ltd. and related interest androyalties billed. These services are recognised on an accrual basis.

Own shares and options
Own shares and options to buy own shares are stated at the lower of cost and fair value.

Loans
Non-current loans receivable are stated at nominal value less any valuation adjustments deemed necessary
to reflect the credit risk. Non-current loans payable are stated at nominal value.

Investments
Investments are stated at cost less any valuation adjustments deemed necessary to recognise a decline otherthan temporary in value (impairment). Additional provisions are recognised for general investment risks.

Accrued expenses
Accrued expenses primarily relate to interest due on loans payable stated at nominal value and to accruals
for the compensation of the Board of Directors.
146

In t e rr o l l H o l d i n g LTD . 

Notes to the Financial statements

3 Notes to the Financial statements
3.1 Own shares and options
Shares sold, acquired and held in the periods under review
In the year under review, the Company sold 2 964 own shares at an average price of CHF 409 (previous year:
sale of 5 440 shares at an average price of CHF 321). In the year under review, the Company did acquire
300 shares (previous year: 0 shares). At year end 2013, the Company held 3 849 own shares at a book value of
CHF 1.6 million (2012: 51 718 own shares at a book value of CHF 16.8 million).

Shares held to cover the option planAt year end 2013, there was no Management Option Plan any more. At year end 2012, there were 43 225 own
shares reserved to cover the management option plan (see note 7.1 of the consolidated financial statements).
In the year under review, 42 625 shares (2012: 2 740 shares) from the option plan were sold at the strike priceof CHF 323 (2012: CHF 323).

Attribution of own shares to employees
2 580 shares (previous year: 2 941 shares) at a carrying value of CHF 1 million (previous year: CHF 0.9 million) were attributed to employees.

3.2 Investments
An overview on the material investments either directly or indirectly held by Interroll Holding Ltd. can befound in the notes to the consolidated statements of the Interroll Group (see 8.4 – Scope of consolidation).

3.3 Loans to subsidiaries
The interest rates used were the following:

lowesthighestIn 20130.00 %

4.00 %In 20120.00 %

6.00 %The loans due to Group companies are normally redeemable with a notification period of three months.
As of year end, the total outstanding group loans amounted to CHF 19.3 million (2012: CHF 12 million).
For CHF 2.8 million (previous year: CHF 2.8 million) a valuation allowance has been accounted for.

147

noteS to the fInanCIal StateMentS

Interroll holdInG ltd.

3.4 loans from subsidiaries
The following interest rates were used:lowesthighestIn 20131.00 %

1.50 %In 20120.00 %

5.50 %The loans due from Group companies are normally redeemable with a notification period of three months.
As of year end 2013, the total outstanding group loans amounted to CHF 0 million (2012: CHF 4.1 million).

3.5 provision for investment risks
In 2003 as well as in 2008, the Group implemented internal changes in the financing structure that generated an unrealised capital gain. Therefore the Company created a provision for investment risks that relates
to investments in and loans due from Group companies. Thereby, it is ensured that the amount of shareholders’ equity presented of the parent company appears reasonable compared to the consolidated shareholders’ equity.

3.6 Shareholder equity
Composition of the share capital
The share capital consists of 854 000 fully paid-in registered shares with a par value of CHF 10 each(previous year: CHF 10). Each share entitles to equal dividend and voting rights.

Significant shareholders (at least 3 % of the share capital)
The following table shows the number of shares held by the most significant shareholders as well as their
participation in percent.
31.12.2013
numBer of
ShareS

partiCipationin %B. Ghisalberti/E. Moreschi and family

112 743

D. Specht and family

108 610

Sarasin Investmentfonds AG

31.12.2012
numBer of
ShareS

partiCipation
in %

13.20

112 743

13.20

12.72

108 61012.72

72 874

8.53

84 712

9.92

Allianz Group42 930

5.03––

N. Axmann and family

39 017

4.57

39 017

4.57

Shareholder/shareholder Group

Public (f loating)477 82655.95

508 918

59.59

Total

854 000

100.00854 000

100.00Details of the disclosure reports, which the Interroll Holding Ltd. has obtained, can be found on the SIX
Exchange Regulation site under http://www.six-swiss-exchange.com.

Reserve for own shares
The reserve for own shares equals the purchase price of own shares held as of balance sheet date.

148

noteS to the fInanCIal StateMentS
Interroll holdInG ltd.

other dISCloSureS aCCordInG to SWISS l aW

3.7 Contingent liabilities
Interroll Holding Ltd. has issued a guarantee for an existing shared credit facility in the amount of
CHF 42 million (previous year: CHF 42 million) in favour of Interroll (Schweiz) AG.
In addition, Interroll Holding Ltd. issued letters of continuing financial support in favour of the following
Group companies:
Country

Company

Germany

Interroll Automation GmbH, Sinsheim (DE)FranceInterroll S.A.S., La Roche-sur-Yon (FR)Switzerland

Interroll (Schweiz) AG, Sant’Antonino (CH)

CanadaInterroll Canada Ltd., Aurora (CA)Interroll Components Canada Ltd., Concord (CA)Interroll Holding Ltd. carries joint liability in respect of the federal tax authorities for value added tax debts
of all Swiss subsidiaries.

4 other dISCloSureS aCCordInG to SWISS l aW
4.1 risk assessment
The risk management coordinates and aligns the risk management processes and reports to the Board of
Directors on a regular basis on risk assessment and risk management. Organizational and process measuresdesigned to identify and mitigate risks at an early stage have been assessed to be satisfactory by the Boardof Directors.

4.2 Internal control system
The Board of Directors and management of the Group are responsible for establishing and maintaining
adequate internal control over financial reporting. Interroll Holding Ltd.’s and the Interroll Group’s internal
control system was designed to provide reasonable assurance to the Interroll Group’s management andBoard of Directors regarding the reliability of financial reporting and the preparation and fair presentationof its published consolidated financial statements.
All internal control systems no matter how well designed have inherent limitations. Therefore, even thosesystems determined to be effective may not prevent or detect misstatements and can provide only reasonableassurance with respect to financial statement preparation and presentation. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate becauseof changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.
Interroll Group management assessed the effectiveness of the Group’s internal control over financial reporting
as per December 31, 2013. Based on its assessment, management has concluded that, as per December 31, 2013,
the Interroll Group’s internal control over financial reporting was effective based on those criteria (see notes
to the consolidated financials statements “3 – Risk Management”).

149other dISCloSureS aCCordInG to SWISS l aW

Interroll holdInG ltd.

4.3 Compensation of and shares held by the Board of directors
Compensation and shares held by the Board of Directors
The compensation of the members of the Board of Directors (BoD) and the shares held by them at year end are disclosed in accordance with the Swiss Code of Obligations 663bis and 663c. The total compensation amounted to:in thousands CHF

CaSh

ShareS/
optionS

SoCialSeCurity*

other BenefitS

total
CoMpenSatIon

ShareS heldaS per 31.12.

voting rightSin %Kurt Rudolf
2013

P, CC

150

18

168

800

0.10

2012

P, CC

150

17

167

800

0.11

2013

VP

75

12

87

60

0.01

2012

VP

75

12

87

60

0.01

2013

AC

50

8

58

20

0.00

2012

AC

50

7

57

20

0.00

Urs Tanner

Paolo Bottini

Philippe Dubois
2013

AC

50

8

58

100

0.01

2012

AC

50

7

57

100

0.01

Horst Wildemann
2013

CC

50

5

55

–

0.00

2012

CC

50

4

54

–

0.00

2013

21

3

24

–

0.00

2012

50

7

57

112 743

14.83

Marco Ghisalberti

Stefano Mercorio
2013

29

5

34

–

0.00

2012

–

–

–

–

0.00

Ingo Specht
2013

50

8

58

108 610

13.25

2012

29

5

34

108 610

14.29

Total Board of
Directors
2013

475

–

67

–

542

109 590

13.37

2012

454

–

59

–

513

222 333

29.24

P : Chairman of the BoD
AC : Audit Committee
VP : Vice Chairman of the BoD CC : Compensation Committee* Social security costs consist of employers and employees contributions to the state run Swiss social security system.

Options held by the Board of Directors
The Board of Directors does not hold any options to buy shares of Interroll Holding Ltd.

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I n t e rro l l H o l d i n g L T D . 

O th e r d i s c l o s ur e s accor d i n g to S w i s s l a w

4.4 Compensation of and shares held by Group Management
Total compensation of Group Management
The compensation of the members of Group Management and the shares held by them at year end are disclosed in accordance with
the Swiss Code of Obligations 663bis and 663c. The total compensation amounted to:

Remuneration (net)fix

Equity based compens.

variable*

Shares**

Options

SocialSecurity

Total
Other
Benefits Compensation

CEO (highest)
2013

667

798

386

–

496

43

2 390

2012

666

863

351

–

494

41

2 415

2013

1 321

444

243

–

268

69

2 345

2012

1 530

436

402

–

319

62

2 749

2013

1 988

1 242

629

–

764

112

4 735

2012

2 196

1 299

753

–

813

103

5 164

Other members

Total GroupManagement* The difference between provisions made in the previous year and the actually paid-out bonuses is netted with the variable compensation planned for the year under review.
** In the period under reivew 2 234 (previous year: 2 871) own shares were attributed. 2 045 (previous year: 2 104) of these shares may not be sold for a period of four to five years as ofgrant date. Share based payments correspond to tax values.

The main reason for the lower total amount of remuneration for the previous year was the vacancy and reentry of two Executive
Board members during the year. For one member the fixed salary was adjusted. There were no significant changes to the variablesalary components.

Explanation to the calculation methods and further notes to the total compensation
The calculation method according to IFRS deviates in two points from the calculation method applied for the compensation as per
Swiss law, OR 663bis and 663c:a) The compensation for business cars results from all amounts recognised in the income statement including depreciation/leasing
instalments. According to Swiss law, 0.8 % per month based on the acquistion value of the cars has been considered.
b) According to IFRS share-based payments are based on their market value at grant date. Granted shares are valuated at market
value according to Swiss law (OR). This value is reduced depending on the agreed blocking period on these granted shares.
The difference of total compensation between the two methods of CHF 0.32 million (previous year: CHF 0.19 million) is made up
by business cars (CHF 0.08 million, previous year: CHF 0.05 million) and by share-based payments (CHF 0.24 million, previous
year: CHF 0.14 million).

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other dISCloSureS aCCordInG to SWISS l aW

Interroll holdInG ltd.

Shares and options held by Group Management
Shares and options owned by the members of Group Management and their related parties were the following:
ShareS aS per 31.12.

2013

2012

2013

2012

Paul Zumbühl

16 08814 098–10 000Dr. Ralf Garlichs

250

100

–

2 500

Dr. Christoph Reinkemeier

290

110

–

–

Jens Karolyi

57

–

–

–

Tim McGill

2 886

2 350

–

1 800

–

300

–

1 200

19 571

16 958–15 500

Kwang-Heng Seng*
Total
*

152

optIonS aS per 31.12.

Kwang-Heng Seng left Interroll per end of March 2013.

I nterro l l H o l ding L T D . 

P ropo s ed a ppropri a tion of a v a i l a b l e e a rning s

5 Proposed appropriation of avail able earnings
Appropriation of available earnings
The Board of Directors proposes to the General Assembly as of 9 May 2014 to appropriate the available earnings as per end of the year under review as follows:in thousands CHF

2013

2012

Result

3 652

4 330

Available earnings carried over from previous year

80 99973 322

Change of reserve for own shares

16 030

3 347

To be carried forward

100 681

80 999Proposed distribution of reserves from capital contributions
The Board of Directors proposes to the General Assembly the distribution of reserves from capital contributions of CHF 8.80 per share (previous year: CHF 8.00). If the distribution is approved, the respective settlement will be processed in the subsequent week to the General Assembly 2014.
in thousands CHF

2013

2012

Reservers from capital contributions carried over from previous year

14 02219 616

Distribution of CHF 8.00 in the year 2013–6 521–5 594

Distributable reserves from capital contributions

7 501

14 022Distribution of CHF 8.80 per share in 2014*–7 481

Reserves from capital contributions to be carried forward*

19

14 022All shares held by Interroll Holding Ltd. or by its subsidiaries neither have voting nor dividend rights. The number of shares entitled to dividends
may increase or decrease due to the exercise of options or changes in the number of own shares held. The maximum number of shares entitled todividends is 854 000. Accordingly the maximum amount of distribution is CHF 7.52 million. Disclosed amount of CHF 7.48 million is based on theoutstanding shares as per 31 December 2013.

153

report of the Statutory audItor

Interroll holdInG ltd.

6 report of the Statutory audItor
report of the statutory auditor to the General Meetingon the financial statements 2013

Report of the statutory auditor on the financial statements
As statutory auditor, we have audited the financial statements of INTERROLL HOLDING LTD, which comprise the balance sheet, income statement and notes (pages 144 to 153), for the year ended 31 December 2013.

Board of Directors’ responsibility
The Board of Directors is responsible for the preparation of the financial statements in accordance with therequirements of Swiss law and the company’s articles of incorporation. This responsibility includes designing, implementing and maintaining an internal control system relevant to the preparation of financial statements that are free from material misstatement, whether due to fraud or error. The Board of Directors isfurther responsible for selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances.

Auditor’s responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted
our audit in accordance with Swiss law and Swiss Auditing Standards. Those standards require that we planand perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditor’s judgment, including the assessmentof the risks of material misstatement of the 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 preparationof the financial statements in order to design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control system. An
audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness ofaccounting 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.

154

Interroll holdInG ltd.

report of the Statutory audItor

OpinionIn our opinion, the financial statements for the year ended 31 December 2013 comply with Swiss law andthe company’s articles of incorporation.

Report on other legal requirements
We confirm that we meet the legal requirements on licensing according to the Auditor Oversight Act (AOA)
and independence (article 728 CO and article 11 AOA) and that there are no circumstances incompatible
with our independence.
In accordance with article 728a paragraph 1 item 3 CO and Swiss Auditing Standard 890, we confirm
that an internal control system exists which has been designed for the preparation of financial statements
according to the instructions of the Board of Directors.
We further confirm that the proposed appropriation of available earnings comply with Swiss law andthe company’s articles of incorporation. We recommend that the financial statements submitted to you be
approved.
PricewaterhouseCoopers AG

Patrick Balkanyi

Martin Graf

Audit expert

Audit expert

Auditor in charge

Zürich, 4 March 2014155

IMprInt

IMprInt
Editor:Interroll Holding Ltd.
Via Gorelle 36592 Sant’Antonino, Switzerland
Phone: +41 91 850 25 25
Fax: +41 91 850 25 05
Concept and design:
Media Office Network
Hans-Peter Ott, Dormagen (D)Jürgen Kosmalla, Köln (D)Layout & DTP financial section:
gateB AG | Communication Engineering, Steinhausen (CH)
Printing:
Nastro & Nastro Srl, Germignaga (I)Note on the annual report
This annual report is also available in German. If there are differences between the two, the German version takes priority.
Note on rounding
Please note that slight differences may arise as a result of the use of rounded amounts and percentages.
Forward-looking statements
This annual report contains certain future-oriented statements. Future-oriented statements include all statements which do not relate to historical facts and eventsand contain future-oriented expressions such as “believe”, “estimate”, “assume”, “expect”, “forecast”, “intend”, “could” or “should” or expressions of a similar kind. Suchfuture-oriented statements are subject to risks and uncertainties since they relate to future events and are based on the company‘s current assumptions, which may
not in the future take place or be fulfilled as expected. The company points out that such future-oriented statements provide no guarantee for the future and that theactual events including the financial position and profitability of the Interroll Group and developments in the economic and regulatory fundamentals may vary substantially (particularly on the down side) from those explicitly or implicitly assumed in these statements. Even if the actual assets for the Interroll Group, including its
financial position and profitability and the economic and regulatory fundamentals, are in accordance with such future-oriented statements in this annual report, noguarantee can be given that this will continue to be the case in the future.

156

f i n a n c i a l c a l e n D a r | c o n ta c tfinancial calenDar 2014
Preliminary Financial Figures 201324 January 2014

Publication Annual Report 2013 and Balance Sheet Press Conference

21 March 2014

Annual General Assembly

9 May 2014

Publication Half-Year Report 2014

8 August 2014

contact
If you have any questions regarding Interroll Group or would
like to be included in our distribution list, please contact theInvestor Relations Team:
Investor.relations@interroll.com
Petra Müller
Head of PR & Investor Relations
Phone: +41 91 850 25 21
E-Mail: p.mueller@interroll.com

Interroll Holding AG
Via Gorelle 3 | 6592 Sant’Antonino | Switzerland© Interroll Holding AG

www.interroll.com