2016 COMPANY REPORT2016 Hilti Company Report

HILTI’S RED
TOOLBOX
It’s been one of Hilti’s primary trademarks for 45 years and will beredesigned in 2017.
Anyone who sees it immediately thinks about innovative products andhigh quality. It has become an international brand ambassador for Hilti.
Construction sites all over the world are unimaginable without it. As partof the company’s brand revision strategy, Hilti’s red toolbox was also­redesigned and improved. The first tools will be delivered in the new toolbox by the end of 2017.
This is reason enough to give this brand icon a starring role in the 2016
Company Report. More than 3000 old Hilti toolboxes went through a­special machining process to create the cover for this year’s report. Eachone of them represents an original toolbox, carried from construction site
to construction site and from job to job over many years. The signs ofwear, some more, some less, bear witness to the harsh day-to-day­environment on the construction site and make each copy of this reportunique. The stories told in this year’s Company Report are not only foundon the inside pages. The cover also tells a fascinating tale about a strong
company and a strong brand.

Scan the QR code to find out more about Hilti’s red
toolbox as well as the production methods used increating the 2016 Company Report.

CONTENT

2
5
8
10
36
38
40
52

Editorial
The year in figures
CEO interview
2016 highlights
Executive Board
Board of Directors
Corporate
responsibility
Key figures

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2016 Hilti Company Report

DEAR
READERSWe are looking back on an exciting and successful year
in what continues to be a challenging environment. As we
had hoped, we began to reap the fruits of the investments
made over the past few years and managed to accelerate
our sales growth. After adjusting for currency effects andthe divestment of our US-based solar affiliate Unirac, oursales were up 7.1 percent.
This dynamic growth momentum has resulted from asolid double-digit increase of our R&D spend and the
expansion of our global sales team by more than 1000
new colleagues since the launch of our revised Champion
2020 corporate strategy at the end of 2013. Moreover, in2016 we managed to step up profitability once again, withthe company’s operating result having risen by 10 percent
and net income up 17 percent. Our two main profitability
targets ROS at 13 percent and ROCE at 21 percent are
now at the upper end of their target range.

We are pleased to note that almost all regions provided positive growth impulses, with Latin America being
the only region where we suffered a decline owing toan­extremely­diffi­cult­market­environment­in­Brazil.­On­a positive note, North America posted another set of
double-digit­growth­fi­gures­(excluding­the­Unirac­effect),­
mostly due to the region’s consistently dynamic construction­ sector­ and­ signifi­cant­ internal­ progress­ achieved­by­our­regional­market­organization.
In 2016, the Group continued to create enthusiastic
customers with some 60 new products, such as the BX 3,
the­ fi­rst­ battery-actuated­ concrete­ nailer,­ RE­ 500,­ our­new injectable adhesive anchor system, the PLT, the total
station for layout data transfer to the jobsite and, last but
not least, our completely revamped portfolio of combiand rotary hammers. Special emphasis goes to the rolloutof­ON!Track,­our­highly­effi­cient­system-based­solution­that combines software, hardware and Hilti services tohelp customers manage their assets. Within just a year
after launch, over 2300 customers had discovered theadded value afforded by this new solution.
But, as always, the most important achievement of theyear­cannot­be­put­in­fi­gures:­the­untiring­commitment­of­our team members around the world who have grown in
number to more than 24,000. They are the reason for our
success in all business areas and the enthusiasm of ourcustomers.­The­high­degree­of­motivation­and­identifi­cation­of­our­global­team­was­confi­rmed­by­Hilti­coming
in tenth place among Europe’s best multinational employers in the 2016 Great Place to Work ranking.
In 2016, we also had the pleasure of looking back on 75
exciting years of Hilti’s corporate history. We celebrated
our anniversary with pride and gratitude for our achievements­whilst­realizing­that­the­true­reason­to­celebrate­
was not the anniversary itself but the fact that after morethan seven decades we feel younger and more dynamic
than ever before in our history.
Hence,­we­conclude­the­2016­fi­nancial­year­with­deep­
satisfaction,­ but­ also­ with­ great­ confi­dence.­ Looking­back positively, our heartfelt thanks go especially to ouremployees, our partners and our customers all aroundthe world.

Pius Baschera
Chairman of the Boardof Directors

Christoph Loos
Chief­Executive­Offi­cer

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2016 Hilti Company Report

THE COMPANY

Hilti develops and produces products, systems, software and services
that feature leading-edge technology and provide the construction andenergy sectors with outstanding added value.
Hilti stands for innovation, quality and direct customer relationships.
Some two-thirds of Hilti’s more than 24,000 worldwide employees work
directly­on­behalf­of­customers­in­Hilti­sales­organizations­and­technicalservice units. They generate more than 230,000 daily interactions withcustomers, creating the basis for the ongoing development of new solutions. For this reason, Hilti invests more than 5 percent of turnover in
research and development on an annual basis.
Hilti Group headquarters are located in Schaan, Principality of Liechtenstein, where the company was founded in 1941 by brothers Eugen andMartin Hilti. All company shares are held by the Martin Hilti Family Trust,a fact that ensures long-term continuity and the ongoing developmentof the company.
The Group’s strategy is aimed at sustainable value creation through market leadership and differentiation.
The overarching goal is to create enthusiastic customers on a daily basis and to build a better long-term
future.
As­a­result,­Hilti­connects­its­fi­nancial­success­with­a­comprehensive responsibility towards society and theenvironment. A mutual sense of openness, honesty
and tolerance applies to team members, partners andsuppliers alike.
Guided by the conviction that entrepreneurial growth
also generates personal growth, Hilti pursues an employee and performance-oriented corporate culture.
The values of integrity, courage, teamwork and commitment form a solid foundation and are equally supported by all worldwide employees.

The Champion 2020 corporate strategy

THE YEAR IN FIGURES
4,633

4,800
4,600
4,400
4,200
4,000

2012

2013

2014

2015

2016

3,800

Net sales in CHF million

700
600

400

500

300

400

200

300

2012

2013

2014

2015

481

500

604

100

2016

200

2012

Operating result in CHF million

15.0

18.0
14.0

9.0

10.0
2012

2013

2014

2015

2016

21.0

6.0

2016

5.0

2012

2013

2014

2015

2016

2.0

Return on sales (ROS) in %Return on capital employed (ROCE) in %

400

300

360

260

287

320

280

220

280

200

2015

22.0

13.0

11.0

240

2014

Net income in CHF million

13.0

7.0

2013

0

180
2012

2013

2014

2015

140

2016

2012

2013

2014

2015

2016

100

Free cash flow in CHF million

Research and development expenditure
in CHF million
24,61925,00024,00023,00022,00021,00020,000

2012

2013

2014

2015

2016

Employees as at December 31

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2016 Hilti Company Report

SYSTEM SOLUTIONSFOR THE PROFESSIONALCONSTRUCTION INDUSTRY
Hilti’s portfolio contains seven business units. The company’s electric tools, accessories, softwareand services cover a broad spectrum of applications which make Hilti a factor in all phases of aconstruction project and in all construction sectors. This addresses planners and architects just as it
does construction professionals focused on civil engineering, building construction, interior finishing orelectrical installation, steel/metal construction and HVAC. Diamond service providers and customers in
the energy industry can all find specific products suiting their needs at Hilti. This is supplemented withcomprehensive services such as fleet management and software-based solutions as well as a worldwide
logistics network.

Anchor systems

Hilti sets new standards in anchor fastening technology witha product portfolio comprising mechanical and chemicalanchoring systems as well as cast-in fastening solutions. Thesesystems are designed for ultimate performance even under the
toughest service conditions and many are capable of withstanding seismic action. Architects and planners also benefit fromproducts such as the PROFIS Anchor design software as wellas the comprehensive range of technical services provided by
Hilti engineers and technical specialists.

Direct fastening and screw fastening

The comparatively environmentally friendly gas-, batteryand powder-actuated systems from Hilti make direct
fastening on steel and concrete simple, safe, fast andproductive. Compared to other installation methods,
they keep vibration, noise and dust emissions to aminimum. Optimized systems comprising tools,
accessories and fasteners form the foundation for
innovative, cost-efficient fastening solutions for interior
finishing as well as work on the building envelope.

Firestop systems

In addition to a wide range of firestop systems to prevent the
spread of fire, smoke and toxic fumes, Hilti provides a comprehensive technical consulting service for building owners,
architects and planners. These firestop solutions undergo
rigorous testing. In countries where they are marketed, the solutions comply fully with current standards for environmentally compatible construction and energy efficiency. New software
solutions also support the efficient design and subsequent
documentation of firestop installations in buildings.

Electric tools and accessories

Hilti electric tools are renowned for top performance and user convenience. Robust and longlasting, these tools are equipped with special
safety features such as the Active Torque Control(ATC) quick-acting safety cutout or Active Vibration Reduction (AVR). The tools, together withaccessories designed for maximum efficiency andease of use, make construction site work involving
chiseling, grinding and drilling safer and more productive.

Diamond systems

Hilti diamond systems for drilling, cutting,sawing and grinding concrete and othermineral building materials achieve maximum accuracy and efficiency while
keeping dust and vibration to a minimum. Machines perfectly tailored to theapplication, featuring optimized hightech diamond cutting tools, ensure top
performance, safe and easy operation as
well as low diamond tool wear.

Measuring systems

The laser, radar and optical tools from
Hilti assist construction professionals
during many phases of their work,
ranging all the way from staking out
positions for excavation, measuring
and laying out foundations, detecting
concealed objects, leveling and aligning in interior finishing, right throughto renovation and maintenance tasks.
Firmly established in the so-calledbuilding information modeling process,Hilti brings digital planning directly tothe construction site.

Installation systems

Modular installation systems from Hilti
provide flexible, efficient solutions forsupporting and fastening pipes, ventilation ducts, sprinkler systems and electrical installations. The extremely wide
range of products available from Hilti iscomplemented by engineering and logistics services as well as software for thecomputer-assisted design of fastenings
and support structures.

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2016 Hilti Company Report“WELL-POSITIONED
IN EVERY RESPECT”

CEO Christoph Loos talks about progress achieved instrategy work, ventures an outlook on 2017 and explains
why Hilti is ready for the future.

The red toolbox on the cover of theCompany Report puts the strong
Hilti brand center stage. What
does the name Hilti stand for?
/
Innovativeness, differentiation andstrong customer relationships. A
customer opening our red toolbox
expects to get more than just a highquality tool. Something that stands
out against its competitors: better
performance, special design, enhanced safety, more services andsupplementary sofware. Responding
to these requirements is what makes
us tick, day by day. Hilti offers strong
partnership and genuine added

value, an objective also embedded in
our Champion 2020 corporate strategy.
Where does Hilti stand in terms of
the implementation of the Champion 2020 corporate strategy?
/
Our corporate strategy is very wellestablished throughout the Groupin terms of mind-set, language andpriorities. In 2016, we continued
to implement Champion 2020 in ahighly focused way. And it’s paying
off: We managed to speed up sales
growth and outperformed many of
our competitors. All members of

our global team have done an excellent job in pushing ahead further
with Champion 2020. It’s exactly
this ­
commitment and energy that
we will need in the next few years
to achieve our ambitious goals.
­Having said this, we cannot expectthat the general market conditions for our business are likely to
improve going forward. Many u­nsolved issues all around the world,
seemingly unstoppable public debts,
alarming deglobalization trends andexacerbating political tensions will
impact the global economy, and withit the construction industry.

“We managed to speed
up sales growth andoutperformed many of
our competitors.”

And what are Hilti’s plans for 2017?
/
One of the Champion 2020 goals is
to outperform the market and ourmain competitors even in a challenging environment. We use the financial strength of our company tofurther expand our offering made up
of first-class products, value-added
services and powerful software while
harnessing the potential of a hostof new technologies. At the sametime, we continue to grow our global
sales team to be a reliable partner
for an ever larger number of customers. We will proceed along thesemain lines of action in 2017. If thegrowth forecasts of 3-to-4 percent
for the global construction market
materialize, our growth target inlocal currencies will be in the ballpark of 6-to-8 percent.
In the year of its 75th anniversary,
Hilti communicated to be “Readyfor the Future.” What stands behind this claim?
/
The conviction to be well-positioned
in every respect: Our business is
growing steadily and sustainably, we
operate on a sound financial basis,
we are close to our customers andwe continue to drive our innovative

offering. In doing so, we never stop
challenging ourselves, take corrective action, where necessary, to improve continuously and develop ourcompany further. Our company ispervaded by vibrant energy, we havea highly motivated global team andour customer satisfaction ratings
have never been higher. Thanks to all
this, we are “Ready for the Future,”perfectly in keeping with the slogan
of our anniversary year.

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2016 Hilti Company Report2016 HIGHLIGHTS
Underground palaces
Moscow is famous for its metro, theunderground railway system, andits magnificent stations, known as
underground palaces. The Russian
capital’s subway is one of the world’s
busiest, transporting well over two
billion passengers each year. Overthe next three years several new
stations are being built while existing stations are renovated. Hilti is
contributing numerous solutions tothis gigantic project, including those
aimed at safely and efficiently fastening electric rails in tunnels, installingengineering systems and equipment,
mounting stations’ tunnel walls andsetting post-installed rebar connections.

3.3
million usesof various Hilti software solutions by customers in 2016(2015: 2.5 million)

3.5
More thanmillioncustomer visits were recordedby the roughly 730 Hilti Storesin 2016.

Perfect in every detail
Innovative, flexible and efficient are three characteristics
defining the SD-5 impact anchor that Hilti developed jointlywith construction material manufacturer Saint-Gobain Weber
AG. The product can be used on any material and only requires
two hammer blows to be put in place, thereby saving time andeffort. The SD-5 was named best product of 2015/2016 by the
Plus X Award, one of the most significant innovation awards fortechnology, sport and lifestyle.

280
millionSwiss francs were invested by
Hilti in research and development
activities in 2016, 17 percent morethan in the previous year.

Extremely flexible
Hilti’s MQ-41-L new modular support system enhances the already rich installation systems portfolio. Built for indoor use and with its optimized
design, the new MQ-41-L system allows the customer to cover a wider range of piping and ventilation
applications.

246 meters high
15,000 m 3 of concrete
2640 tons of steel
20,000 meters of Hilti
anchor channels

Using transparency to gain
efficiency and successHilti ON!Track is now available on four continents – Europe, North America, Asia andAfrica. The system solution for simple asset
management has continued to create enthusiastic customers in 2016. Some 18 months
after introduction the results are correspondingly positive.

Available in 11 languages
More than 2300 active customers
30,000 users
683,000 registered tools
27,841,000 registered commodities
1,252,000,000 registered consumables
5,430,000 asset movements in 2016 from 		
one location to another 			according to ON!Track
All figures as of December 2016

From A to B in record time
Cabins moving either vertically or horizontally, withor without cable support and at speeds of up to 18
meters per second. Beginning in 2017 this and otherrevolutionary elevator technologies will be researchedand developed by the German Thyssenkrupp industrial group at a dedicated testing tower in Rottweil,
Germany. The tower was constructed using Hilti HAC
anchor channels which are aiding in the research forthe elevator technologies of tomorrow.
For more information:
http://testturm.thyssenkrupp-elevator.com
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2016 Hilti Company Report

A STRONG
BRAND
Hilti has revised its brandidentity. New content anda fresh design will makethe brand more diverse,
modern and dynamic.

Over more than seven decades Hilti has developed intoa prestigious global brand and is one of the benchmarksof the construction industry. The trademarked Hilti logo,
the unmistakable toolbox and the Hilti red have become
established as iconic brand elements.
Since Hilti last revised its brand strategy some 12 years
ago, both the market and overall environment havechanged radically. New business areas, new customer
requirements, new information and communication

technologies have been developed and the Hilti brandmust take this all into consideration.
At the core of the revised strategy is the new brandpositioning centered on the topics of differentiation,customer orientation and a modern, more dynamic design. In addition to innovative products and services, therange of communication is increasingly aimed at Hilti’s
significant differentiating features, such as direct customer contact, the high degree of employee commitment

or activities focusing on the entrepreneurial responsibility. Modern communication channels and digital media
are used to a much larger degree and more comprehensively than ever.
With an eye towards costs and feasibility, the new brand’s
implementation will be completed over the various communication channels on a step-by-step basis. All points ofcontact will be realigned to conform to the new branddesign no later than the end of 2019.

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2016 Hilti Company Report

Hilti’s new brand identity is communicated along a diverse
range of channels, including the well-known red toolbox,
in Hilti Stores or in digital environments on the company’s
revised website.

The­fi­rst­red­Hilti­
toolbox made of metal,
at front, followed
chronologically by
the succeeding four
generations of plastic
toolboxes.

The red toolbox
Hilti’s­ fi­rst­ toolbox­ was­ made­ of­ metal­ and­ in­ use­ from­ 1967­ to­1972.­Hilti­then­became­the­fi­rst­company­to­put­its­tools­in­plastic­
toolboxes. The robustness and light weight soon eliminated any
misgivings toward plastic. Legend has it that the idea to use thetoolbox as a recurring theme was based on a television series thatwas­popular­in­the­late­1960s­called­“Man­in­a­Suitcase.”­As­with­the tools they carried, the red toolbox design was updated andimproved from time to time. The toolbox redesign as part of therevised brand identity represents the next generation of Hilti’s red
brand icon.

“Man with the red
toolbox”­was­featured­on the cover of a Hilti
brochure in 1977.

Hilti Store
Whether in Christchurch, New Zealand, New York, USA, or Durban,
South Africa, more than 700 Hilti
Stores around the world open theirdoors every day for Hilti customers
and fans alike. The look of thesestores will also be adapted to conform to the new brand identity on a
step-by-step basis. The goal is toimprove the Hilti Store customers’
experience. As a result, the newconcept will pay special attention
to optimizing product demonstrations, visitor experiences and thepossibility to consult with customers. Digital channels will also play
an enhanced role as consulting
and purchasing information can beaccessed by Hilti employees via
tablets when on the go.

Hilti website
At the end of the year, the new brandidentity also received an online
presence in the form of the new
website. Since it was launched, visitors to the new website have experienced and been enthused by amodern look and feel, new content
and functions. Content is tailored totarget groups through recommendations and shortcuts; customers
can find customized informationand more easily manage their data
once they’ve logged in. In addition
to an intelligent search function,
improved content processing helps
customers find the solution thatbest suits their needs. Mobile devices were given special priority.
Initially, a “mobile first” approach
focused on design development
for smartphones and tablets and, ina later step, on PCs. This ensuresthat the website provides an optimal user experience for all devices.

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2016 Hilti Company Report

HIGHLIGHTS FROM
THE ANNIVERSARY YEAR
Happy Birthday! Hilti celebrated its 75th anniversary in 2016 andshowed, in a variety of ways, exactly why the company is ready forthe future. Employees, customers, partners, media and friends ofthe company – Hilti aimed its anniversary activities broadly.

“Hilti at 75. This is a special
moment to pause and to lookback on past successes. But
it’s also a moment in which we
confidently and inquisitively
look into the future. Our great
worldwide team, our financial strength and an ownership structure that is built for
the long term make us fitterand younger than ever. These
are good reasons to celebrate
our anniversary proudly andwith pleasure.”
Michael Hilti
Schaan, Liechtenstein

1 … 2 … 3 … 4 … all together
The song composed for Hilti’s 75th anniversary. Teamsfrom around the world celebrated and danced in the“Hilti Around the World” music video. Viewed on YouTube
almost 20,000 times, the song and video display
employee enthusiasm and identification with Hilti.

Company chronicle
The beginnings, successes and setbacks in the company
history are laid out and highlighted over more than 180 pages.
But the heart of the book belongs to the many people who
shaped the company and continue to represent it to thisday. Private insights from the Hilti family, numerous stories
and anecdotes from employees, innovations and curiosities
make the company’s first chronicle a fascinating collector’s
piece. It bears witness to the fact that 75 years of learningand development have made Hilti what it is today. Namely,
younger and more dynamic than ever.

A gift on four wheels
Unmistakably Hilti even back then: A Volkswagen van, which was in service in 1959, has
stood in the entrance area to Hilti’s testing
lab and repair center in Tulsa, Oklahoma,
for years. As part of the anniversary celebrations, Cary Evert (right), Head of theNorth America Market Region, gave Michael
Hilti this special gift on behalf of his team.
The vehicle symbolizes just how central the
aspect of service has always been to Hilti’s
entrepreneurial activities.

A joyous celebration
Hilti’s corporate headquarters in
Schaan, Liechtenstein, was the stage
for a diverse anniversary celebration
at the beginning of September.
International customers and members of the media, partners fromthe worlds of politics, finance andsociety were invited to any ofnumerous events at headquarters.
The highlight was an open day
activity which was attended bysome 7000 employees, their family
members and friends. These people
took the opportunity to explore thecompany grounds and to visit oneof the many activities, exhibitions
or shows that were on offer. The
company’s anniversary was also thefocus of international celebrations
as various employee and customer
events were held throughout theHilti world.

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2016 Hilti Company Report

STOPS DATA
CHAOS
Measure, document and share: Thanks to
the new PD-C laser range meter, complex
measurements on the jobsite turn into an
absolute breeze – even if you are measuring
in a centuries-old building.

From left: Moritz Dietrich, Managing Director of the scaffolding
contractor Hopfenzitz, and Roberto Nofi, Hilti Sales Manager.

The PD-C laser range meter received aBest of the Best award in the Interface
Design category of the Red Dot
Award’s Communication Design 2016
competition for its highly sophisticatedinterface solution.

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2016 Hilti Company Report

Jesus hovers above it all. A ceiling
fresco from 1724, warm colors, framed by signal white stucco. Fourteen meters below, on the ground,everything is grey and full of dust.
In December 2012, the floor of thechurch had caved in. Ever since,
the old Dominican Church in Augsburg, Germany, has been closed
to the public. Where bulky stonemonuments used to stand, a massive
metal scaffold reaches up to theceiling, assembled by Moritz Dietrich and his team from the Hopfenzitz scaffold company. Restorers arebusy inspecting 400 square metersof figures, windows, columns andceilings to work out a restorationbudget for the old church.
The steel scaffolding must be positioned with utmost accuracy toprovide access to every nook andcranny of the ancient building. The
16th century church is in shambles,
which presents a serious challenge.
“What used to be a solid floor is fullof gaping holes with the crypt underneath,” says Moritz Dietrich, Managing Director of Hopfenzitz, a local

Main features of the
PD-C laser range meter• High-resolution touchscreen• Digital target camera• Android-based operating system• Direct and indirect measurement; surface and volume
measurement function• Measurement data with comment function• 4 GB built-in memory for up to 3000 measurements• Share data via USB or Bluetooth•­ Export­photos­with­measurement­data­as­image­fi­lescaffolding contractor. “Wherever weare placing the scaffold, it rests on
different­ levels.”­ Since­ there­ are­ no­ancient construction plans to rely on,
the engineer depends on technicalsupport­ from­ Hilti:­ the­ new­ PD-C­
laser range meter. The PD-C laser
range meter merges the user interface of a smartphone with the measurement functions of a laser range
meter. The user can take high-detailjobsite pictures, capture measurements, draw precise laser measurements onto the picture by touchscreen technology and export data
to other devices. Hence, the workers
on the jobsite know exactly what todo – and where. “No need for complicated explanations over the phone

anymore,”­ says­ Moritz­ Dietrich.­
According to Marco Kerschbauer,
Global Project Manager with Hilti,
this greatly accelerates the jobsite
processes, which was one of thedeclared objectives of developing
the­PD-C.­He­adds:­“It­has­become­much­more­effi­cient­for­the­customer­
to capture and save measurement
data and connect them to the digitaldata­fl­ow­of­his­in-house­systems.”
Provided that the restoration andrebuilding schedule will be kept, theDominican Church will reopen in
2022 allowing visitors to admire thecolorful ceiling frescos in a dust-freeenvironment.

Picture­credits:­
Römisches Museum Augsburg, 2016
20–21

2016 Hilti Company Report

THUMBSUP

Hilti is increasingly using e-business and online
channels for communicating with customers.
One country organization leading the way is Hilti
Great Britain.

Four product photos, a web link and some text, “The Hilti Radio
Charger: it’s here!” Social Media Manager Jess Matthewman clicks
the “publish” button, and the contribution is visible on the Facebook
page of Hilti Great Britain. The reaction is swift. Jess Matthewman
can trace the enthusiasm of users on her screen. The number of“thumbs-up” likes continues to climb for the robust, practical radio
charger which charges tool batteries and can stand up to construction site conditions. Within less than one week Facebook contacts
resulted in more than 350 customer discussions and 100 concreteorders placed. A comparable result via traditional acquisition channels
would have taken customer account managers weeks, if not monthsof time. Digitalization and e-business have fundamentally changed
the sales patterns at Hilti Great Britain. In 2004, social media was in
its infancy and Hilti GB sold products and services exclusively offline. Seven years later e-business accounted for 11 percent of sales.
In 2016 the online business will make up almost 50 percent of sales,a tremendous expansion. “Availability, measurability, scalability andDigital where the customers are
Up to now, the sales counter at Hilti Stores
was the central element for interactingwith customers. This was the only place inthe store where employees had computer
access to customer data, tool lists andproduct information. Since 2016 employees
have been able to use tablets as an alternative. This has made sales and interaction
with customers much more flexible andpractical, effectively allowing them to takeplace anywhere in the store. All the information can be accessed at any time and sales
agreements can be concluded. In addition
to Hilti Stores, Hilti salespeople continue tobe outfitted with this technology.

individualization are just a few of the advantages of digital platforms,” explains Kris Levey, Head of the Digital Team for Hilti
Great Britain and Northern Europe. “They have developed toprovide true added value for our customers and our business.”
Facebook, Twitter, YouTube and LinkedIn provide new interactive
possibilities. “Let’s talk about cordless. We want to know when
you first used a cordless tool, and what was it like compared toyour normal kit? Do you have a favorite tool? What would you liketo see next?” This is one survey example which was responsible
for valuable data conveyed via social media channels. The supplyof training and information videos is also much more diverse.
More than 2500 customers ‒ a number which continues to grow– are already using Hilti Great Britain’s technical webinars. Theyeither interact live or through recorded sessions on the comprehensive online library. Once customers are on the Hilti GB
website, many browse the digital “Innovation Magazine,” whichuses animation, photo galleries, audio and video material to givelife to Hilti solutions. “Whether online or offline, we go where ourcustomers are – anytime, anywhere and from any device,”summarizes Kris Levey. This is why customers keep giving Hilti
Great Britain the thumbs-up, on all channels.

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2016 Hilti Company Report2016 HIGHLIGHTS
Supporting cave art
The Lascaux caves in southwesternFrance house archaeological treasuresin the form of prehistoric cave paintings.
With the aim of preserving the original
artwork which was discovered in the
1940s, the CO2 emissions of visitors
were damaging the paintings, a replica
cave was opened in the early 1980s. At
the end of 2016, a new museum, knownas­ Lascaux­ IV,­ was­ opened.­ The­ museum is located adjacent to the replica
cave and presents cave drawings fromaround the world as well as informationon the discovery and development ofearly modern humans. Hilti supported
the construction with anchor, injection,
SAFEset and software solutions that will
suffi­ciently­protect­Lascaux­IV­from­noise­and vibrations, among other things.

More than 10,000 m 3 of concrete poured
More than 700 tons of steel used

A simple click keeps an eye
on everything
188,000 times per week is how
often the Hilti ID Service is used.
1.2 million Hilti identities aremanaged in the Hilti Cloud ID
Service.
All­fi­gures­as­of­December­2016

Since April 2016, customers have been able tolog in a single time to gain access to a wide variety
of information thanks to the Hilti ID Service. Oncelogged in, the customer receives access to all the
relevant software applications that have beencustomized­for­them.­The­technology­is­a­part­of­the Hilti Cloud which, in addition to the ID Service,includes all software components used jointly by
Hilti and its customers – such as the interfaces in
the global SAP system.

77%of customers would repurchasefrom Hilti again in the near future.

New standard in jobsite productivity
Fast, light and quiet: With up to 50 percent more speed, 20 percent
less weight and the lowest vibration levels compared with similar
tools, the Hilti combihammer TE 30-ATC (Active Torque Control)
sets new standards on the jobsite in terms of productivity andinjury prevention. Whether drilling anchor holes, fixing rebar or
working on steel, the tool makes every task it performs seem
effortless.

70%

of customers would
recommend Hilti.

70%

of customers are verysatisfied with Hilti AccountManagers.

Picture credit: Hilti Art Foundation

66%

of customers are very satisfied
with Hilti engineering advice.

“Kirchner, Léger, Scully & more”
The Hilti Art Foundation’s latest exhibition, entitled “Kirchner,
Léger, Scully & more,” opened in Vaduz, Liechtenstein, in December
2016. A total of 38 pieces, representing art from classical modernism to the present, are displayed on three different floors. The
exhibition runs until October 8, 2017.

All results from the 2016 Integrated
Customer Opinion Survey

24–25

2016 Hilti Company Report

DRILLING
THROUGH
EUROPEThe Gotthard Base Tunnel
is the world’s longest railway
tunnel and Switzerland’s
most expensive public works
project ever. The project
broke many records and was
supported by Hilti.

26–27

2016 Hilti Company Report

An architectural masterpiece
The digital speedometer needle
pauses at a speed of 170 kilometers
per hour. The speed on the firstday is relatively leisurely. While
Camillo Censi doesn’t see muchof the work he was responsible foron this day, the emergency lightsthat roll by illuminate a smile on his
face. “I’m proud to have been a partof it. It’s a great feeling to drive
through the finished tunnel afteralmost nine years of work.”  
At peak times some 2600 workers
were busy on this architectural masterpiece and Camillo Censi is one ofthem. Both of the tunnel’s one-way
tubes are 57 kilometers in length.
With Hilti’s help, Camillo Censi’s

100-person team was responsible
for fastening rails and installing
cable ducts along a ten-kilometertunnel stretch. With 150 combihammers workers drilled more than
30,000 holes into the Saint Gotthard
Massif, and everything went according to plan. “We couldn’t afford
delays at these construction sites
which is why service was of vital importance,” says the engineer. The
product quality allowed the sitemanager to work along the routeworry-free and safely. This is why
Camillo Censi placed the highest
priority on high-quality tools.
The tunnel links the German- andItalian-speaking regions of Switzer-“We couldn’t afford delays
at these construction sites
which is why service wasof vital importance.”
Camillo Censi
Railway Engineering Management,
Censi GroupFacts and figures
Direct fastening: more than 5 million fasteners
Electric tools and accessories: 700 batteries and150 combihammers used; more than 30,000 holes drilled
Anchors: more than 900,000 mechanical anchors

land, from Erstfeld in the north to
Bodio in the south and has almost
no gradient, meaning that trains cantravel through the tunnel at speedsof up to 250 kilometers per hour.
Above the tunnel is an overburdenof rock reaching as high as 2300
meters, greater than anywhere elsein the world. Hilti construction solutions were required for emergency precautions. “People travelling throughthis tunnel by train will be safe. What
we installed was one contribution
to this,” says Martino Incarbone,

Regional Sales Manager with Hilti
Switzerland. Emergency lights andsafety railing were fastened to concrete with Hilti anchors.
Camillo Censi is already working on
his next tunnel project, the Ceneri
Base Tunnel, which is 15.4 kilometers long and runs between
Camorino and Lugano in the Swisscanton of Ticino. It is scheduled toopen in 2020, when Camillo Censi
plans on taking another train ride
through a new tunnel.

28–29

2016 Hilti Company Report

DON’T PLAY
WITH FIRE
600 construction workers installingfire protection devices in a 1700room hotel and casino resort – that’squite a challenge. Thanks to a close
collaboration between planners,
building inspectors and Hilti, nothing
was left to chance.

“The magnitude, the tight scheduleand the complexity of the construction project presented an enormous
task,”­ says­ Adrian­ Huson,­ Project­
Manager with Wynn Design & Development­(WDD).­Judging­from­the­sheer dimensions of the USD 4 billion Wynn Palace Luxury Resort in
Cotai,­Macau­(autonomous­territory­in­Southern­China),­it­became­clear­from the very outset that there wasa need to install countless passivefi­re­ protection­ devices­ throughout­the property.
The­fi­re­protection­system­had­to­be­in compliance with the International
Building­Code­(IBC)­which­contains­numerous health and safety regula-tions. Hence, both technical knowhow and experience were required
to plan and execute the project.
“We­ benefi­ted­ greatly­ from­ the­ expertise of the Hilti team members
who not only supported us when it
came to select the right systems andproducts but also ensured proper
application­ on­ the­ jobsite,”­ adds­
Adrian Huson.
Some 600 workers attended theoretical and practical training workshops where they learned how tocarry out high-quality installation
work on site. And the Hilti team wasavailable whenever there was a needto deviate from the plan and special
solutions were called for.

PHC­ (Macau)­ Ltd.,­ the­ company­ in­charge­ of­ inspecting­ the­ fi­re­ protection­ measures,­ also­ benefi­ted­from the training sessions provided
by Hilti. Special seminars were organized­ to­ train­ inspectors­ how­ to­carry out system audits in keepingwith safety regulations. Phil Harvey,­ owner­ of­ PHC,­ says:­ “Thanks­
to this, we were able to simplify the
problem solution process, to eliminate­uncertainties­and­to­ensure­fi­re­protection measures in conformity
with regulations throughout the property.”­Or­to­put­it­in­simple­terms:­“Hilti’s­support­was­indispensable.”Picture­credit:­Adrian­Huson

The Hilti team instructed workers on the correct way to
install­fi­restop­systems­directly­on­the­construction­site.­
30–31

2016 Hilti Company Report2016 HIGHLIGHTS

10
Hilti ranked

th in the Great Place to Work
Institute’s 2016 European
rankings in the “BestMultinational Employer”
category.

A successful competition

Aiming high with Hilti
Seattle, Washington, is teeming with development. Botha multifunctional building some 45 stories high and thecity’s largest hotel are currently under construction.
Since mid-2015, Hilti has worked earnestly to partnerwith the owner and general contractor bringing productivity and innovation to its development. The Emerald City’s new architectural landmarks are being builtwith Hilti products, accessories and fleet managementagreements.

~8
millioncustomer service contacts
worldwide in 2016.
Some 1300 employees in
49 countries look after Hilti
customers via telephone,e-mail, web chat and fax.

Hilti IT’s fourth global student competition
focused on developing a mobile Hilti app.
The high standard of the submissions greatly
pleased the jury of professors and Hilti managers. In February 2016 at the event finale in
Kuala Lumpur, Malaysia, three winners wereselected from among the apps submitted forcustomers and account managers. Eleven of
the competition participants were granted internships with Hilti, a number of which are now
employed with the company.

220 students from 11 countries
85 entries
3 winning teams

Dmitry Kamaev, Procurement Manager with the LBK “Michko” Ltd. construction company

GOING WHERE THE CUSTOMER IS
Direct customer relationships are a basic component of Hilti’s corporate strategy. The logistics service isplying new paths in Russia in order to reach even more customers.

There are 150 kilometers between
Moscow, the workplace of Procurement Manager Dmitry Kamaev from
LBK “Michko” Ltd., and Hilti’s closest warehouse. The largest country
in the world faces tremendous logistical challenges. To meet the needsof customers such as Kamaev, Hilti
has created a new service: PUDO
which stands for pick up and drop
off points. This retrieval and delivery service is aimed at providingclassic Hilti services, such as tools,
accessories and repairs, to custom-ers who find themselves in remote or
peripheral areas.
“We make deliveries to shops, petrol
stations and even to florists,” says
Fabrice Atallah, Head of Global
Logistics Services Hilti; locations
that are easily reachable for any
customer. With these numbers increasing constantly, the service isdestined to grow further. “PUDO is
designed to increase customer satisfaction and to expand our value
proposition,” says Atallah.

Dmitry Kamaev finds the service
quite practical: “Once my orderarrives, I receive a text message orphone call telling me where I canpick up the delivery, and I get to decide when I will go and retrieve it.”
So Hilti is where the customer needs
their delivery. For Atallah this is “awin-win situation.” Additional countries will begin offering this service
in 2017, bringing Hilti even closer tocustomers.

32–33

2016 Hilti Company Report“IT’S A TWO-WAY STREET”
Generational diversity at Hilti
Diversity is at the heart ofHilti’s business. The company strives to create an
inclusive and inspiring work
environment, mirroring therich diversity in the markets
it serves and with this contributing to the businessperformance.

Frank D. McMahon of the baby boomer generation

Diversity & Inclusion (D&I) is embedded in the Champion 2020
corporate strategy and focusesin particular on the three G's:
gender, global and generation.
Frank D. McMahon (Director ofEngineering Support and Special Projects, Hilti North America) and Sanda Bjelan (Customer
Relationship Manager, Hilti Belgium) represent two importantage groups at Hilti. Read theirdialogue on working across generations.

Sanda
Frank, after 29 years ofexperience in various jobs, you must
know Hilti inside out while I havejoined the company only two years
ago. What is the main difference ofworking for Hilti today compared toback when you started?
Frank
I think that the implementation and mastery of the technological advancements are the maindifference – and they are championed by the younger colleagues,
especially the millennials. Having
said this, the culture of Hilti has basically stayed the same as when I

began. Our core values reflect thestrong foundation that Hilti was built
on …
Sanda
… and they open doors
wherever you are in the Hilti world.
This is what I’ve noticed; it feels likea big family wherever you travel.
Even though we work in different
countries, the values build a common
understanding and promote communication.
Frank
I really like your reference
to family when thinking about thecontribution everybody makes. The

Generational mix at Hilti:
Flexible working-timemodels, international
networks and mentoring
programs support theimplementation of Diversity & Inclusion, as well as
generational diversity, at
Hilti.
Facts and figures:
Average age:
37 years and 5 months
Share of generations:
Traditionalist: 0.1 %Baby boomer: 11.1 %Generation X: 25.8 %Millennial: 63 %Share of generations
hired in 2016:
Traditionalist: 0 %Baby boomer: 1.5 %Generation X: 10.3 %Millennial: 88.2 %Sanda Bjelan of the millennial generation

analogy fits nicely showing how awell-functioning group across generations can be so beneficial to adesired outcome. Where do you see
the strongest benefits in working
across generations?
Sanda
Personally, I appreciate
listening to the older generation. You
bring in the knowledge of the construction process and the procedures needed.
Frank
Absolutely, but to makethe mix of generations really work,from my point of view, it is importantthat the older generation learns fromthe younger generation and yourideas. Mentoring has to be viewed
as a two-way street, both sides need
to be open for new ways of thinking
and acting – a very important element for leveraging the full power ofthe different generations.
Sanda
I completely agree. By
switching perspectives, you candiscover a lot. The many team andnetwork events sponsored by Hilti
promote an exchange and a transfer
of knowledge on a worldwide basis.
On the whole, where do you see Hilti

in terms of D&I? How far along are
we?
Frank
I think Hilti’s overall
approach to Diversity & Inclusion
is paving the way for a more inclusive working environment. Mixing
teams, also with regard to generations, is just one of many important
steps. If we can keep pushing that,
I think that the company will benefit
greatly and go a long way in the
future.

34–35

2016 Hilti Company Report

EXECUTIVE
BOARD“My highlight of 2016
was the excellent further
development of ourbusiness in North America.
Never before have we had
a stronger position in thisdynamic growth market.”“My highlight of 2016 was
to experience the trustbased and open cooperation
with our customers aroundthe world. It is these parnerships that build our long-termbusiness success.”“My highlight of 2016 was
the buildup of our global
software team. For me,
this is a significant step
towards the future ofdigital construction.”

Dr. Stefan Nöken
Mörschwil,­Switzerland

Jörg Kampmeyer
Schaan, Liechtenstein

Matthias Gillner
Grabs,­Switzerland

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

Jörg­Kampmeyer­(born­1968,­Germany)­has­been­
CFO and a member of the Executive Board sinceApril 2011. He is responsible for the Finance,
Human Resources, IT and Group Strategy units.

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

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

Matthias­Gillner­(born­1967,­Germany)­has­been­a­member of the Executive Board since April 2011.
He was initially responsible for Electric Tools andCorporate Research & Technology. Since thebeginning of 2014, he has led the Emerging
Markets and global Energy & Industry units.
He began his Hilti career in 2000 as the Head ofCorporate Development. In mid-2001, he wasnamed Head of Corporate Human Resources
and then moved to lead the Measuring Systems
Business Unit. From 2006 until the end of 2013,
Matthias Gillner was Head of the Electric Tools &Accessories Business Area.

“ My highlight of 2016 was
the acceleration of ourglobal growth which
confirms that our investments are bearing fruit.”“My highlight of 2016 was
the company anniversary
at our headquarters which
attracted some 7000 guests– many of them team memberswith their families. The spiritof that day was simply overwhelming!”“My highlight of 2016 werethe many encounters with
our team members all aroundthe world. Their passion for
their job, their commitment
and their energy are not only
contagious, but motivating.”

Dr. Christoph Loos
Chief­Executive­Offi­cer
Schaan, Liechtenstein

Jahangir (Jan) Doongaji
Maienfeld,­Switzerland­­Marco Meyrat
Chur,­Switzerland

Christoph­Loos­(born­1968,­Germany)­assumed­
CEO responsibilities in January 2014. He has beena member of the Executive Board since 2007.
During­the­fi­rst­four­years­of­this­tenure,­he­was­responsible for Finance, Human Resources, IT
and Group Strategy. In 2011, he took over theEmerging Markets and the global Energy &Industry units.

Jahangir­(Jan)­Doongaji­(born­1967,­India/Switzerland)­has­been­a­member­of­the­Executive­Board­since 2014. He is responsible for the Electric Tools
and Corporate Research & Technology units.

Marco­Meyrat­(born­1963,­Switzerland)­has­been­a member of the Executive Board since the beginning of 2005. He is responsible for the markets
in Europe and North America.

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

He began his Hilti career in 1989 as Product Manager at Hilti corporate headquarters in Schaan.
After holding various positions in Hilti France andGermany, he was named General Manager of
Hilti­Switzerland­in­1999­and­was­subsequently­
appointed General Manager of Hilti Germany in
2002.

Upon­ joining­ Hilti­ in­ 2001,­ he­ fi­rst­ led­ the­ Corporate Development team and then establishedthe Strategic Management unit. At the end of
2003,­he­moved­to­Germany,­fi­rst­as­a­Regional
Sales Director and then, starting in 2005, as
General Manager of Hilti Germany.

36–37

2016 Hilti Company Report

BOARD OFDIRECTORS

During their visit to the USA, fromleft­to­right:­Dr.­Michael­Jacobi,­
Kim Fausing, Calvin Grieder,
Prof. Dr. Pius Baschera,
Michael Hilti, Heinrich Fischer,
Barbara Milian Thoralfsson
and Dr. Tis Prager.

Dr. Michael Jacobi
Binningen,­Switzerland

Kim Fausing
Sønderborg, Denmark

Calvin Grieder
Küsnacht,­Switzerland

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

Michael­ Jacobi­ (born­ 1953;­
re-elected until the 2019 Annual
General­ Meeting)­ was­ elected­ to­
the Board of Directors in 2007.
He studied business economics
at the University of St. Gallen andat the University of Washington,
Seattle, and earned his doctorate
from St. Gallen in 1979. From 1978
until­2007­he­held­various­fi­nancial­management­ positions­ in­ Brazil,
the­USA­and­Switzerland­at­CibaGeigy AG and, later, Ciba Specialty
Chemicals Inc., Basel. He was thecompany’s Global Chief Financial
Offi­cer­from­1996­until­2007.­Today­
Michael Jacobi is an independent
corporate consultant. Since 2003,
he has been a member of the Boardof Directors of Sonova Holding AG,
Stäfa, and, since December 2008,a Trustee of the Martin Hilti Family
Trust. He was named to the Boardof Directors of Actelion Pharmaceuticals Ltd., Allschwil, in 2009.

Kim­Fausing­(born­1964;­re-elected until the 2019 Annual General
Meeting)­was­elected­to­the­Board­of Directors in 2010. He earned adegree in mechanical engineering
at Aarhus Teknikum, in Denmark, in
1987, and an MBA degree at Henley Business School, in London, in
1996. His professional career led
him to the Hilti Group in 1990, where
he served in various management functions in Europe and Asia
until 2007. After moving to theDanish Danfoss Group, he wasnamed­ Chief­ Operating­ Offi­cer­and member of the executive committee in January 2008. He alsois­ Vice­ President­ of­ SMA­ A/G,­ in­
Kassel,­ Germany,­ and­ Vice­ President­of­the­Velux­Group­in­Copenhagen, Denmark.

Calvin­ Grieder­ (born­ 1955;­ elected until the 2019 Annual General
Meeting)­has­been­a­member­of­the­
Board of Directors since April 2016.
He studied process engineering
at the Swiss Federal Institute ofTechnology in Zurich. He then held
various management positionsin Swiss and German companiesin­ the­ fi­elds­ of­ measurement­ and­control, automation and engineering. In 2001 Calvin Grieder left
Swisscom to join the Bühler Group,
where he served as CEO until theend of June 2016. Since February
2014 he has been Chairman of theBoard of the Bühler Group. He is
also­Vice­Chairman­of­Implenia­AG­
and, since March 2017, Chairmanof Givaudan SA.
Due to the future time-consuming
duties as the Chairman of Givaudan, Calvin Grieder decided
to resign from the Hilti Corporation Board of Directors effective
December 31, 2016.

Pius­Baschera­(born­1950;­re-elected to serve until the 2019 Annual
General­ Meeting)­ is­ Chairman­ of­the Board of Directors. He studied
mechanical engineering and business administration at the Swiss
Federal Institute of Technology
Zurich, where he earned his doctorate. In 1979, he came to Hilti as
Head of Financial Controlling in the
production area. Before being named Chairman he served as CEO
for 13 years. He is a member of theBoard of Directors of Roche Holding­ AG­ (until­ March­ 2017),­ Basel.­
He is also a member of Board of
Directors of the Schindler Group,
Hergiswil, and a member of theAdvisory­Boards­of­Vorwerk­&­Co.,
Wuppertal, and Ardex GmbH,
Witten, and President of the ETH
Zurich Foundation.

* Effective at the Annual General Meeting of 2017, Pius Baschera will relinquish the post of Chairman. He will be succeeded by Heinrich Fischer
and will remain a member of the Hilti Board of Directors, while also
serving as the Speaker of the Martin Hilti Family Trust, the sole shareholder of the Hilti Corporation.

Michael Hilti
Schaan, Liechtenstein

Heinrich Fischer*
Rüschlikon,­Switzerland

Barbara Milian Thoralfsson
Oslo, Norway

Michael­Hilti­(born­1946;­re-elected to serve until the 2018 Annual
General­Meeting),­son­of­company­
founder Professor Martin Hilti, hasbeen a member of the Board of
Directors since 1990. After studying business administration at the
University of St. Gallen he worked
in the Chase Manhattan Bank in
London before joining Hilti in 1975
as the Deputy Head of Marketing.
One year later he was named tothe company’s Executive Boardand he served as CEO from 1990
to 1993. He was Chairman of theBoard of Directors from 1994 to
2006. Michael Hilti is a Trustee andSpeaker of the Martin Hilti Family
Trust, a member of the Board of
the Hilti Foundation, and Chairmanof the Hilti Art Foundation. He has
held numerous directorships, wasnamed an Honorary Senator by
the University of St. Gallen, andwas named a Princely Commerce
Councilor by H.S.H. Prince HansAdam­II­von­und­zu­Liechtenstein.­Heinrich­ Fischer­ (born­ 1950;­
re-elected until the 2019 Annual
General­ Meeting)­ has­ been­ amember of the Board of Directors since 2007. He graduated in1973 with an engineering diploma
from the Swiss Federal Institute ofTechnology Zurich, having studied
electrical engineering and technical physics. He then went on to
study business administration at
the University of Zurich while working­in­this­fi­eld,­earning­a­master’s­
degree in 1976. Beginning in 1977,
he held senior management positions at Oerlikon Bührle Holding,
Balzers­ AG­ (1980­ to­ 1989)­ and,­fi­nally,­ at­ Oerlikon­ Holding­ once­
again­ (1990­ to­ 1995).­ From­ 1996­
to 2007, he was Chief ExecutiveOffi­cer­at­Saurer­AG,­Arbon.­Heinrich Fischer is a member of theBoard of Directors of Tecan AG,
Orell­ Füssli­ AG­ (Chairman)­ and­Sensirion AG.

Barbara­ Milian­ Thoralfsson­ (born­
1959; re-elected until the 2017
Annual­ General­ Meeting)­ was­elected to the Board of Directors
in September 2014. She has anMBA­ in­ marketing­ and­ fi­nance­from Columbia University in New
York and a BA in psychology fromDuke University in North Carolina.
Barbara Milian Thoralfsson has
held CEO positions in the telecomand consumer goods sectors,
and has extensive experience asa non-executive director, in bothpublic and privately held global
companies. Since 2006 she has
been an entrepreneur in the industrial­sector­(Fleming­Industrier­AS,­
Oslo)­and,­since­2007,­has­been­an­
Industrial Advisor of EQT Partners
AS, Oslo. She is Chairwoman of
ColArt International Holdings Ltd,
London, and a member of theBoard and Chairwoman of the
Audit Committee of SCA AB,
Stockholm. She also holds board
mandates with G4S Plc, London,and Norfolier GreenTec AS, Oslo.

Dr. Tis Prager
Zumikon,­Switzerland
Tis­ Prager­ (born­ 1948;­ re-elected­
until­December­31,­2018)­has­been­a member of the Board of Directors
since June 2006. He earned a doctorate in law from the University of
Zurich in 1975, was admitted tothe bar of the Canton of Zurich in1978 and is a founding member ofthe­ Prager­ Dreifuss­ law­ fi­rm­ in­
Zurich and Bern, which specializes­ in­ international­ business­law. Among other mandates, Tis
Prager is the Chairman of theBoard of Scherer & Bühler AG,
Meggen, the Hotel Zurich AG(Marriott),­Zurich,­and­Emil­Hitz­AG,­
Bassersdorf. He is also a memberof the Board of Directors of the
Bourquin Group, Couvet, of the
Diogenes­ Verlag­ AG,­ Zurich,­ as­well as former Chairman of both IE
Engineering Group AG, Zurich, andCaprez­Ingenieure­AG,­Chur.­He­is­also active in STEP, the Society ofTrust and Estate Practitioners.

38–39

2016 Hilti Company Report

CORPORATERESPONSIBILITYCENTRAL
FIELDS OF
ACTIONTeam
members

User healthand safety

Get employees enthusiastic
about Hilti and develop themand their skills

Offer solutions that enhancesafety and productivity forthe customers

At Hilti, corporate responsibility is an integral component of the business model. Sustainable corporate success islinked to fundamental responsibility towards employees, customers, partners and suppliers, as well as society and theenvironment. This claim goes back to company founder Martin Hilti.
The corporate culture, lived out by employees around the world, forms the basis for corporate responsibility. The valuesof integrity, courage, teamwork and commitment, coupled with a high degree of engagement, define the daily interaction and deeds of more than 24,000 team members. Lawful ethical behavior and fair trade are essential aspects inall Hilti activities.
The Code of Conduct for employees and suppliers gives the company a written foundation for its daily actions as well
as for maintaining essential standards. Beyond this, Hilti is obligated to abide by transparency and business practices
free of corruption and to meet social and ecological standards as a member of the UN Global Compact.

Socialresponsibility

Compliance andbusiness ethics

Environment

Make a contribution towards
society’s sustainable
development

Meet legal and ethicalstandards

Proactively manage theimpact on the environment

40–41

2016 Hilti Company Report

HIGH-PERFORMINGGLOBAL TEAM

5

60

399

13,780

Head count(1941–2016)

24,619Diversity & Inclusion

1941

1950

1960

2000

69 %
31%

Inclusion
69% of team members
find that Hilti offers an
inclusive working
environment.*

2016

124

13

56

23%

17%

nationalities
in the global team(2015: 120)nationalities on the
Executive Board,
Board of Directors
and in top
management(2015: 13)

nationalities at
headquarters(2015: 55)

of team members
are women(2015: 22%)of team leaders
are women(2015: 16%)

Corporate culture

18,500

CHF 7.1 million

working days
team members spent on
corporate culture workshops

have been invested in workshops
on corporate culture.

Engagement and identification
with the company
71 %
73 %

29 %

27 %

Engagement

Say

Willingness to say,stay and strive*

I recommend Hilti
to others as a greatplace to work.*

67 %
33 %

Stay

70 %

Hilti inspires me to
do my best work
every day.*

It would take a lot to
get me to leave thisorganization.*90 %of team members took part in the employee survey(2015: 91%)84 %of new team members
successfully integrated(2015: 88%)**30 %Strive12 %employee fluctuation(2015: 14%)highlyfavorable
unfavorable

77%

of management positions werefilled with internal candidates(2015: 77%).

* Results of 2016 Hilti Employee Survey: We changed the methodology in 2016 to provide deeper insights into employee engagement.
**	The integration success rate measures the number of team members who joined Hilti in the last two years and are still employed at thecompany.

42–43

2016 Hilti Company Report

COMPLIANCE
MANAGEMENT
The way Hilti China manages
compliance and financial risks

Commercial aspects are not the only important component to Hilti when selecting themost suitable project partner. Any partner must also meet the company’s risk management
and compliance-relevant requirements. This is significant in all countries including thosesuch as China, where there is a sound economy and rapid growth; but where this development may often be coupled with relevant financial and corruption risks according to Transparency International.

“The objective is to establish
long-term relationships with reliable
and trustworthy partners who meet
our risk management guidelines.”
Sam Feng
Sales Manager, Hilti China

Shanghai, China

The Compliance Management System (see 2015 Company Report) applies across all Group entities but it also
respects local cultures and customs. One good exampleof this is the market organization in China, which has
been developed according to a hybrid business model. In
addition to Hilti’s standard direct sales approach, products and services are also offered for sale via partner
networks. This special business model for Hilti requires
an equally special focus on risk management topics. In
2016 the market organization, together with the Asia /Pacific Region management and corporate headquarters, therefore introduced the project partner management policy where a 360˚ vetting process was adopted
to objectively gauge a potential partner’s risk level onboth the business and operational compliance fronts.
Defined assessment criteria make the screening process fast, transparent and comprehensive. Empha-

sizing that the policy is, and remains, a living document, Stanley Lui, Head of Legal & Compliance for the
Asia / Pacific Region, states “after its launch, the Legal& Compliance department and the local finance team
were in constant contact to refine the evaluation process
based on feedback from the sales teams.” Additionalcommercial and finance risk-related assessment criteria
were incorporated in the evaluation process.
Sam Feng, Sales Manager in China, explains: “What may
at first glance look like added administrative work actuallytranslates to additional sustainable growth for our market organization. Ultimately, the objective is to establish
long-term relationships with reliable and trustworthy partners who meet our risk management guidelines, ensuring the generation of sustainable value and a growing
business.”

44–45

2016 Hilti Company Report

SOCIALRESPONSIBILITYThe Hilti Foundation is jointly operated by the Martin Hilti Family Trust and theHilti Group. The Foundation has supported institutions from the sectors ofeducation, society and science since 1996. Foundation efforts focus on giving
people a perspective for the future and enabling them to independently improvetheir living conditions. In 2016 the Foundation’s donation volume amounted to
CHF 14 million.

A statuette of Osiris and a leadvotive barque which were bothfound in the Bay of Aboukir.

Picture credits: Christoph Gerigk © Franck Goddio/Hilti Foundation

This head once belonged toa statuette of the Phoenician
god Baal.

Diving into the past
The trigger for the founding of the Hilti Foundation more than 20 years ago was
Michael Hilti’s enthusiasm for the scientific research carried out by underwaterarchaeologist Franck Goddio, the activities of whom are still supported by thecharitable foundation. The results of this cooperation are spectacular discoveries
and artefacts that provide insights into past worlds, which are currently shown inan exhibition entitled “Osiris – Egypt’s sunken mysteries.” Some 300,000 people
visited the exhibition in 2016 at London’s British Museum. Until mid-July 2017 theMuseum Rietberg in Zurich is hosting the treasures that were recovered from theocean floor.
The exhibition focuses on artefacts found over the last decade in the submerged,
ancient cities of Thonis-Heracleion and Canopus, just off the Egyptian coast. The
research work was carried out by the European Institute of Underwater Archaeology, which is led by Franck Goddio, in cooperation with the Egyptian Ministry ofState for Antiquities and with the support of the Hilti Foundation. The exhibition is
supplemented by 40 highly impressive artefacts contributed from various museums
in Cairo and Alexandria.
The legend of Osiris is one of the most important myths from ancient Egypt and it
is celebrated and kept alive through the annual “Mysteries of Osiris” celebration.
One such Osiris ceremony took place regularly on the waterways between ThonisHeracleion and Canopus. Small votive boats, made of lead, and other objects, whichwere found by Franck Goddio and his team in the canals of the city, bear witness tothis ceremony. The exhibition’s scope ranges from small, everyday items to monumental five-meter-tall statues of pharaohs and gods.

This intact stele was discoveredin the sunken city of ThonisHeracleion (above), as was the
shipwreck which probably dates
back to the 4th century BCE.

46–47

2016 Hilti Company Report

UN GLOBAL COMPACT –PROGRESS REPORT

Human rights

Labor standards

Anti-discrimination
Part of Hilti’s corporate social responsibility is
to provide a harassment and discriminationfree workplace. Hilti has issued an Anti-discrimination Directive as a means of fulfilling thisobligation. This also serves as a basis for the
key Diversity & Inclusion initiative, within theChampion 2020 strategy. With the Anti-discrimination Directive Hilti puts existing practicein writing to create transparency and minimize
risk of discrimination.

Safety at work
One of the key issues in ensuring safety in theworkplace is accident prevention. On a daily
basis, employees get together for shopfloor
meetings in the Hilti plants, logistics and repair centers, in which occupational safety issues are discussed. This ensures that working
conditions are constantly reviewed and improved where necessary.

Helplines
Hilti encourages employees to report every
suspected violation of the Code of Conduct,either directly to management and Compliance
Officers or by using the helplines, which areavailable round the clock to all employees in 70
countries and 40 languages.
Business culture“The Hilti Way” is a description of an employeeand performance-focused business culture
characterized by shared values, managementby example, and the conviction that corporate
growth and employee development are inseparable. In the 2016 financial year, employees
spent 18,500 working days taking part in corporate culture workshops.

Employee health
Hilti also implemented global health activities
in 2016; for example, the introduction of occupational health management in Kaufering,
Germany, which is based on three pillars:• Development of a health-conscious
management culture• Improving the health of our employees
through support of balanced nutrition andsufficient exercise• Healthy workplace conditions

Protection of theenvironment
Energy efficiency
Hilti’s infrastructure and equipment is continuously monitored to ensure that state-of-theart technology is used in order to have a positive impact on energy efficiency. In 2016, as aresult, lighting in three global production
facilities was optimized and converted toenergy-efficient LED technology. This generated a saving of approximately 200,000 kWhof energy.
Products
Collaboration between environmental andproduct development managers ensuresthat products meet the highest environmental and safety standards. An example ofthis collaboration is the TE 800-AVR breaker, which has an energy-saving drive witha long lifetime. The ability for operators tocarry out their own repairs and long service
cycles reduces the frequency of sending products in for maintenance. Optimized materials
and a lightweight design result in a lower carbon
footprint. The vibration reduction feature allows
the product to be operated for a longer periodof time and the optional dust removal system
ensures dust-free working conditions. The TE
800-AVR was nominated for the 2016 German
Federal Ecodesign Award.

Global Reporting Initiative(GRI): G4 indicators

Combating corruption
Prevention
Hilti employees are regularly given training
sessions that cover the rules of the company’s
internal Anti-corruption Directive. The IT-based
system introduced in 2015 for the internal process relating to the approval of gifts, hospitality
and customer events has been rolled out at all
Hilti organizations around the world during thereporting year.
Organization
The Compliance Management System established in the past years and the organizational structure implemented on a regional
basis have formally been summarized in an
Organizational Directive in the reporting year.
This Directive was issued by the Executive
Board and rolled out worldwide at all Hilti
organizations.

LA 8 Health and safety topics
covered in formal agreementswith trade unions

HR 5 Operations and suppliers
identified as having significant
risk for incidents of child labor,
and measures taken to contributeto the effective abolition of childlabor

HR 2 Total hours of employee
training on human rights policies
or procedures concerning
aspects of human rights that are
relevant to operations, including
the percentage of employees
trainedHR 6 Operations and suppliers
identified as having significant
risk for incidents of forced orcompulsory labor, and measures
to contribute to the elimination of
all forms of forced or compulsory
labor
EN 3 Energy consumption
within the organization

The indicators EN3, EN6, EN8, EN15, EN16, EN19 and EN23 are related
to the environmental key indicators shown on pages 50/51.

EN 6 Reduction of energy
consumption
EN 8 Total water withdrawal bysourceEN 15 Direct greenhouse gas(GHG) emissions
EN 16 Energy indirect greenhouse gas (GHG) emissions

EN 27 Extent of impact mitigationof environmental impacts ofproducts and services
DMA General information on the
management approachSO 4 Communication and training on anti-corruption policies
and procedures

EN 19 Reduction of greenhousegas (GHG) emissions
EN 23 Total weight of waste bytype and disposal method

48–49

2016 Hilti Company Report

ENVIRONMENTAL
KEY INDICATORS
Hilti is working consistently to reduce its
environmental footprint. In this respect
CO2 emissions and energy efficiency
play a key role.

+6.0%

Production(machine hours)+2.1%

Logistics volume(order volume)

As capacity utilization was higher in 2016, Hilti’s consumption of energy also increased.
Hilti is constantly working on improving energy efficiency in its plants, which helps tocompensate the growth in consumption. Specific steps taken during the reporting year
enabled the plants to use around 1 million kWh less energy. One such measure, which
resulted in savings of more than 100,000 kWh, was the seasonal regulation of the new
cooling water units at the Kecskemét, Hungary plant.

+2.7%

Services(repair hours)

-4.2%
CO2 emissions
per employee+0.8%*+5.3%

CO 2 emissions
in total

Employees* influenced by decreasing CO 2 factors for the energy used

+6.6%

Energyconsumption

+0.7%

Fuel
consumption+7.1%

Kilometers driven

Further key figures

The recruitment of additional sales staff
resulted in an increase of kilometers
driven by the Hilti car fleet. The rise infuel consumption was compensated by
optimizing travel routes, tightening standards of vehicle fuel consumption andother measures, such as driver education. Average fuel consumption dropped
by 6.2 percent.

2014

2015

2016

CO2 emissions
per employee (t)

5.27

5.30

5.08

CO2 emissions (t)117,177

123,911

124,951

Energy consumption(MWh)113,333

115,573

123,166

Fuel consumption(1,000 l)

23,80825,54625,736

Water consumption(m3)

166,849

177,025

182,004

Waste volume (t)15,231

16,45917,90450–51

2016 Hilti Company Report

KEY FIGURES

52–53

2016 Hilti Company Report

STRONGPERFORMANCE
IN 2016
With yet another successful financial year, the Hilti Group has confirmed its growth course.
Hilti performed very well and achieved sales growth of +5.7 percent in Swiss francs in what
continued to be a challenging market environment. After adjusting for the sale of US-basedsolar affiliate Unirac, sales in Swiss francs grew by +7.1 percent over the previous year. Hilti
benefited from the substantial investments in new products, services and software madeover the past few years, as well as from a significant expansion of the direct sales force andmanaged to gain additional market share. With an increase of +10 percent, the operating
result is again at a record level.

The Hilti Group has generated broad-based ­sales
growth again in 2016. Looking to the differ­ent
regions, performance in North America was­­especially noteworthy with another set of ­doubledigit growth figures (+11.6% in local currencies,
excluding the Unirac effect). The European ­region
added +6.2 percent with the Southern European
markets in particular displaying growing momentum. As a result of the persistent economic crisisin Brazil, the Latin American region as a whole
was slightly below the previous year’s perfor­
mance (-1.2%). Continued sales increases wereachieved in the regions of Eastern Europe /­Middle East / Africa (+5.6%) and Asia / Pacific(+3.3%). Overall, sales growth was clearly above
the market average. Furthermore, the Group has
succeeded in increasing globally the number ofcustomers and their loyalty.
Continued high investments in sales, products
and software
The investment drive initiated in 2014 as partof the Champion 2020 corporate strategy was

executed consequently. At CHF 280 million, theR&D spend was up 17 percent over last year andglobal sales capacity was expanded by 820 employees (+6%). Particular investment focus wasplaced on software and digital solutions. Three
years into the strategy implementation, the positive effects of these investments are beginning toemerge clearly. As an example, online sales havegone beyond the CHF 1 billion mark for the firsttime. The global introduction of the innovative
new Hilti ON!Track asset management solution
has also proven to be very successful.
By closing the takeover of the PEC Group basedin Duisburg, Germany, near the end of 2016, Hilti
has complemented its cast-in anchor and assembly channel portfolio and expanded its leading
position as a provider of fastening solutions.
Operating result continues to set records
In a relatively stable currency environment, theoperating result was up 10 percent to a record
CHF 604 million (2015: CHF 547 million) andnet income amounted to CHF 481 million (2015:

604

In a relatively stable currency environment,
the operating result was up 10 percent to arecord CHF 604 million.

CHF 410 million). Return on sales (ROS) and return on capital employed (ROCE) also achieved
record levels at 13.0 percent (2015: 12.5%) and
21.0 percent (2015: 19.0%), respectively. Despitea high level of investments and stronger growth,the Hilti Group has generated a free cash flow of
CHF 287 million (2015: CHF 335 million).
The main driver of the continued profitability increase was the further optimization of productcosts fueled by lean programs in manufacturing,procurement and supply chain management.
Solid balance sheet and liquidity strengthened
further
At year-end 2016, the equity ratio was at a remarkably solid 53 percent (2015: 52%). Cash andcash equivalents amounted to CHF 1,114 million(2015: CHF 1,046 million) and financial debt wasslightly down at CHF 474 million (2015: CHF 490
million). These good figures are the result of additional measures taken to improve capital efficiency and of the continued high profitability of the
Hilti Group. For the 2016 financial year, the Boardof Directors proposes a CHF 243 million ordinary
dividend payout (2015: CHF 205 million).
OutlookThe market and currency environments will remain­challenging given the large number of unsolved global issues. Based on the 2017 market
forecasts, we expect growth in the lower­single-digit range, marked, however, by growing
volatility. The Hilti Group will continue to adhere toits strategic objectives and invest further in new
products, digital concepts, services and sales­expansion. Given a stable market environment,
Hilti reckons with a slightly higher sales growththan in 2016 and constantly high levels of its key
financial ratios.

54–55

2016 Hilti Company Report

KEY FIGURES
4,633

4,800
4,600
4,400
4,200
4,000

2012

2013

2014

2015

2016

3,800

Net sales in CHF million

700
600

400

500

300

400

200

300

2012

2013

2014

2015

100

2016

200

15.0

2013

2014

2015

2016

Net income in CHF million

18.0

11.0

14.0

9.0

10.0
2012

2013

2014

2015

21.0

22.0

13.0

13.0

6.0

2016

5.0

2012

2013

2014

2015

2016

2.0

Return on sales (ROS) in %Return on capital employed (ROCE) in %

400

300

360

260

320

287

280

220

280
240

2012

0

Operating result in CHF million

7.0

481

500

604

180
2012

2013

2014

2015

140

2016

200

2012

2013

2014

2015

2016

100

Free cash flow in CHF million

Research and development expenditure
in CHF million
24,61925,00024,00023,00022,00021,00020,000

2012

2013

2014

2015

2016

Employees as at December 31

54.0

53.3

53.0

18.0

52.0

14.0

51.0

10.0

50.0

6.0
2012

2013

2014

2015

2016

49.0

20.1

22.0

2012

2013

2014

2015

2016

2.0

Total equity
in % Total equity and liabilities

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

900

1,600

800

1,450

700

1,300

600

1,150

474

500
2012

2013

2014

2015

1,000

2016

400

1,114

2012

2013

2014

2015

2016

850

Cash and cash equivalents
in CHF million

Financial debts in CHF million

289

300

500

250

400

200

300

150

200

100

243

100
2012

2013

2014

2015

2016

50

Capital expenditures on intangible assets
and on property, plant and equipmentin CHF million

2012

2013

2014

2015

2016

0

Dividend in CHF million

Please note
The following pages contain extracts from the 2016 Financial Report of the Hilti Group. Because these pages do not contain the full consolidated financial statements, they do not present complete information about the financial position, financial performance and cash flows of
the Hilti Group for 2016. Complete information, including the notes to the consolidated financial statements, is contained in the 2016 Financial
Report, which will be available on the Group’s website (www.hilti.group) from mid-March 2017. The full 2016 consolidated financial statements,
which are included in the 2016 Financial Report, have been prepared in accordance with International Financial Reporting Standards (IFRS).

56–57

2016 Hilti Company Report

CONSOLIDATEDBALANCE SHEETOF HILTI GROUP AS AT 31 DECEMBER

Assets in CHF million

2016

2015

Intangible assets

471.7

410.5

Property, plant and equipment

812.8

779.0

1.9

1.9

Deferred income tax assets

158.3

143.7

Other financial investments

11.0

16.0

Trade and other receivables

481.3

422.5

7.0

7.2

1,944.0

1,780.8

542.5

528.4

1,014.2

959.0

Current income taxes receivable

22.4

8.9

Accrued income and prepayments

47.9

46.1

Derivative financial instruments

5.9

3.4

Financial assets at fair value through profit or loss

23.5

34.0

Cash and cash equivalents

1,113.8

1,046.2

TOTAL CURRENT ASSETS

2,770.2

2,626.0

TOTAL ASSETS

4,714.2

4,406.8

Investment property

Derivative financial instruments

TOTAL NON-CURRENT ASSETSInventories
Trade and other receivables

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

2016

2015

4.6

9.0

Equity attributable to equity holders of the parent

2,507.6

2,262.5

TOTAL EQUITY

2,512.2

2,271.5

Provisions

70.4

58.4

Employee benefits

582.4

506.0

Deferred income tax liabilities

48.3

29.8

Bonds

242.4

360.8

Long-term bank borrowings

28.4

28.1

Trade and other payables

21.9

26.2

–

0.7

993.8

1,010.0

Provisions

70.1

65.1

Employee benefits

6.6

107.7

Trade and other payables

377.3

355.8

Current income taxes payable

124.4

101.0

Accrued liabilities and deferred income

415.5

386.6

Bonds

117.1

–

Short-term bank borrowings

86.0

100.9

Derivative financial instruments

11.2

8.2

TOTAL CURRENT LIABILITIES

1,208.2

1,125.3

TOTAL LIABILITIES

2,202.0

2,135.3

TOTAL EQUITY AND LIABILITIES

4,714.2

4,406.8

Equity and liabilities in CHF million

Non-controlling interests

Derivative financial instruments

TOTAL NON-CURRENT LIABILITIES

58–59

2016 Hilti Company Report

CONSOLIDATEDINCOME STATEMENTOF HILTI GROUP

in CHF million

2016

2015

4,632.9

4,383.5

103.3

94.9

4,736.2

4,478.4

15.6

(7.6)

Material costs(1,330.4)(1,306.4)

Personnel expenses(1,886.2)(1,752.5)

Depreciation and amortization(156.4)(157.0)

Other operating expenses(775.0)(707.5)(4,132.4)(3,931.0)

OPERATING RESULT

603.8

547.4

Other revenues and expenses (net)(3.3)(14.6)

Finance costs(27.4)(26.5)NET INCOME BEFORE INCOME TAX EXPENSE

573.1

506.3

Income tax expense(91.7)(96.6)NET INCOME

481.4

409.7

Equity holders of the parent

485.9

410.4

Non-controlling interests

(4.5)

(0.7)

Net sales
Other operating revenues

TOTAL OPERATING REVENUES

Change in inventory

TOTAL OPERATING EXPENSES

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

CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
OF HILTI GROUP

in CHF million

2016

2015

NET INCOME

481.4

409.7

Net movement on cash flow hedges

3.2

(1.0)

Deferred tax on net movement on cash flow hedges

(0.4)

0.1

Foreign currency translation differences(3.0)(95.7)

Deferred tax on foreign currency translation differences

0.2

1.3

–

(95.3)(43.4)(41.3)

8.0

3.9

ITEMS THAT WILL NEVER BE RECLASSIFIED TO THE INCOME STATEMENT(35.4)(37.4)OTHER COMPREHENSIVE INCOME (OCI)(35.4)(132.7)TOTAL COMPREHENSIVE INCOME

446.0

277.0

Equity holders of the parent

450.4

277.7

Non-controlling interests

(4.4)

(0.7)

ITEMS THAT MAY BE SUBSEQUENTLY RECLASSIFIED TO THE INCOME STATEMENT

Remeasurements on employee benefits
Deferred tax on remeasurements on employee benefits

Attributable to:60–61

2016 Hilti Company Report

CONSOLIDATEDCASH FLOW STATEMENTOF HILTI GROUP

in CHF million

2016

2015

NET INCOME

481.4

409.7

Depreciation and amortization

156.4

157.0

(Gain) / loss on disposal of subsidiary

1.4–(Increase) / decrease in inventories(15.6)

7.6(Increase) / decrease in trade receivables(32.4)(12.4)(Increase) / decrease in finance lease receivables(102.0)(76.0)

Increase / (decrease) in trade payables

20.3

4.7

Change in non-cash items and other net operating assets

(2.8)

67.6

CASH FLOW FROM OPERATING ACTIVITIES

506.7

558.2

Capital expenditure on intangible assets(148.8)(113.6)

Capital expenditure on property, plant and equipment(140.1)(132.5)

Disposal of subsidiary

38.5

–

(Increase) / decrease in financial investments

16.1

(3.3)

Disposal of intangible assets

0.6

0.4

Disposal of property, plant and equipment

13.7

26.1

(220.0)(222.9)CASH FLOW FROM INVESTING ACTIVITIESin CHF million

2016

2015

Proceeds from long-term borrowings

1.8

4.0

Repayment of long-term borrowings

(1.4)

(0.5)

Proceeds from / (repayment of) short-term borrowings(15.9)

1.2–(28.6)(0.4)

0.3

Dividend paid

(205.3)(454.9)CASH FLOW FROM FINANCING ACTIVITIES(221.2)(478.5)

Exchange differences

2.1(33.4)TOTAL INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS

67.6(176.6)

Cash and cash equivalents at January 1

1,046.2

1,222.8

CASH AND CASH EQUIVALENTS AT DECEMBER 31

1,113.8

1,046.2

3.9

3,7Interest paid

(27.4)(27.2)

Income tax paid

(66.4)(71.1)

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

Cash flow from operating activities includes
Interest received

62–63

2016 Hilti Company Report

KEY FIGURES INFORMATIONOF HILTI GROUP

Results in CHF million / %

2016

2015

Net sales

4,633

4,384

Depreciation and amortization

156

157

Operating result

604

547

Net income before tax

573

506

Net income

481

410

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

21.0

19.0

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

20.1

17.4

Return on sales (ROS) in %

13.0

12.5

Free cash flow

287

335

Balance sheet in CHF million / %

2016

2015

Total equity

2,512

2,272

Total equity in % Total equity and liabilities

53

52

Total non-current liabilities

994

1,010

1,208

1,125

289

246

1,285

1,190

660

591

Total current assets

2,770

2,626

Total assets

4,714

4,407

Dividend*

243

205

24,61923,385

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

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

2016 SALES GROWTHYEAR ON YEAR
Sales growth in CHF million

2016

2015

Change in CHF (%)

Change local currencies (%)

Europe

2,222

2,081

6.8

6.2

North America
North America excluding Unirac effect

1,120
1,103

1,046
972

7.1
13.5

5.2
11.6

Latin America

117

132

-11.4

-1.2

Asia / Pacific

662

627

5.6

3.3

Eastern Europe / Middle East / Africa

512

498

2.8

5.6

4,633

4,384

5.7

5.3

HILTI GROUP

Please note
Effective April 15, 2016, the US-based solar affiliate Unirac was divested. Without consideration ofthis business activity, the sales growth of the Hilti Group amounts to 7.1 percent in Swiss francs.

64–65

2016 Hilti Company Report

PUBLICATIONDETAILS
Publisher
Hilti Corporation
Corporate Brand & Communications
PO Box 333, 9494 Schaan, Liechtenstein
Editors-in-chief
Jessica Nowak, Jagna Jera
Concept
Hilti Corporate Brand & Communications
Editorial team, text
Jessica Nowak, Jagna Jera, Nele Rummert,
Matthias Hassler, Sarah Hilbe, Felix Reichstein,
Martin Kussler
Designzurgams Kommunikationsagentur(Dornbirn, Austria)
Photography
Uli Reitz, Roland Korner (Triesen, Liechtenstein),Reinhard Fasching (Bregenz, Austria),
Luca Fasching (Bregenz, Austria)
Translation
Chris Larson, Christoph Renfer (Riehen, Switzerland),CLS Communication AG (Basel, Switzerland)
Image processing
pro.file Armin Kofler (Lustenau, Austria)
Production coordinator
Lise Santschi
Printed by
BVD Druck + Verlag AG
9494 Schaan, Liechtenstein

We wish to thank our customers and partners
for their kind support.
The Company Report is published in German andEnglish. Duplication, even in part, only with permission of the publisher.
The complete Financial Report, the principles ofcorporate governance, the Group organizational
chart, a list of consolidated companies and information on the Martin Hilti Family Trust can befound on the internet at www.hilti.group.

The 2016 Hilti Company Reportis available online atwww.hilti-companyreport.com.