2011 Company Report

Hilti. Outperform. Outlast.
www.hilti.com

Hilti Corporation2011 Company Report

We help our customers to be
successful. We identify theirneeds and provide them with
innovative solutions featuring
outstanding added value.

We passionately create
enthusiastic customers andbuild a better future.

2011 Company Report

Hilti. Outperform. Outlast.
www.hilti.com

Hilti Corporation2011 Company Report

We help our customers to be
successful. We identify theirneeds and provide them with
innovative solutions featuring
outstanding added value.

We passionately create
enthusiastic customers andbuild a better future.

Trades2011 Hilti Company Report

Overview.

This is Hilti.

We supply the construction industry with

Key figures (in CHF million)
2011

2010

Change

3,998

3,930

+68

Operating result

207

268

–61

Cash flow from operating activities

242

376

–134

Net sales

97

142

–45

21,84820,305+1,543

Net income
Employees (as at December 31)

technologically superior products, systems
and services. We provide innovative solutions that feature outstanding added value.
We passionately create enthusiastic customers and build a better future with approximately 22,000 team members located in
more than 120 countries around the world.

Net sales (in CHF million)
6,000

2007

2008

2009

2010

2011

5,000

We live clear values. Integrity, the courage toembrace change, teamwork and commitment are the foundations of our corporate

4,000

culture.

3,000
2,000
1,000
4,667

4,700

3,845

3,930

3,998

We combine long-term financial success withcomprehensive responsibility toward society
and the environment. Reciprocal tenets ofopenness, honesty and tolerance apply to

600

2008

2009

Plumbing, heating
and air conditioning
The ability to work quickly andefficiently while achieving highquality, regardless of the application or the materials on
which the installation work is
carried out, is an essential
everyday requirement for specialists in this field. The Hilti
product range offers a multitude of efficient solutions formeasuring and laying out fastening points, drilling anchor
holes, making penetrations inwalls and ceilings, and fastening pipes and ducts of all
kinds to walls, floors and ceilings. We also supply a comprehensive range of firestop
products designed to seal off
pipes and openings in theevent of fire.

Electrical
Hilti direct fastening systems
make electrical installation
work exceptionally efficient –and virtually dustless. The
comprehensive range of electrical fasteners supplied by
Hilti covers a broad spectrum
of applications in this trade,while highly effective dust removal systems for power tools
make slitting, cutting, drillingand chiseling on mineral materials of all kinds quicker, easierand more reliable. Hilti cordless tools for drilling, screwdriving and cutting set thestandard where maximum mobility is required in conjunction
with high performance andlong battery life.

Concrete sawing
and coring
Reliable equipment anddependable services are ofgreat importance to service
contractors. Hilti is renowned
not only for innovative equipment and accessories, butalso for on-time delivery andquick repairs. Our unique Hilti
Fleet Management systemguarantees availability of
replacement tools at all times,
comprehensive services at calculable costs as well as rental
equipment to cover periods ofpeak demand. Hilti also manufactures wall saw blades andcore bits to customer specifications for special applications. Training for users inoperating new equipment plus
expert advice from Hilti engineers are just some of theadditional services we offer.

MiningA combination of outstanding technology, competenton-site analysis of requirements and reliable services
make Hilti the preferred partner for the mining industry.
Our TE MD20 electric rock
drilling system not only provides high performance, italso significantly reduces
health hazards caused bynoise and vibrations. Hilti’s
OneStep self-drilling rockanchor system makes walland roof bolting quicker
while cutting operating andservicing costs. The comprehensive Hilti portfolio of
products and accessories
makes the installation of infrastructure above and below ground more efficientthan ever before.

Solar
The ability to install any
type of solar panel with only
six system components ensures high cost-efficiency
and great flexibility. The Hilti
panel mounting system
consists of preassembled,
corrosion-resistant parts
and thus ensures easy installation and long life. Hilti
know-how in structural design and foundation work
combined with a broad
range of innovative products ensure the required
versatility for groundmounted solar parks as wellas roof installations. Our experts with many years ofexperience provide support
in planning, specificationand project management.

EnergyOne of our prime goals in
the energy industry is toprovide innovative solutions that boost productivity, increase reliability andminimize health and safety
risks. Hilti certainly has agreat deal to offer in thisfield. Our well-proven direct fastening methods
and flexible modular pipe
installation systems, for instance, can make timeconsuming and costly
welding or tedious installation work unnecessary inmany cases. Offering
competent, on-the-spot
support with the planningand execution of complex
energy projects of all magnitudes, our specialists areat your service throughout
the world.

Hilti GX 120 gas-actuatedfastening tool

Hilti TE 6-A36 cordless rotary
hammer with the TE DRS-6-A
dust removal system

Hilti CP 653 speed sleeveHilti DST 10-E wall saw system

Hilti TE MD20 drilling system

Hilti MSP-AL photovoltaic
panel mounting system

Hilti DX 351 BT powder-actuated fastening tool with X-BT
threaded studteam members, partners and suppliers alike.

Operating result (in CHF million)
2007

Interior finishing
Our goal is higher productivity
and greater reliability for contractors in every field of interior
finishing including drywall andceiling installation, tiling andfloor renovation and door andwindow installation. Laser tools
for measuring and aligning, acomprehensive range of drilling
tools and anchors, and direct
fastening and screw fastening
systems for repetitive use ensure top productivity and cost
efficiency. Concrete surface finishing, keeping dust to a minimum, plus the use of special
foams for insulation, filling, fastening and soundproofing, areother areas in which our knowhow is in great demand. Hilti’s
product portfolio for interior finishers is rounded off by a comprehensive range of firestop
products.

2010

2011

500

Our corporate goal is to generate sustainable profitable growth.

400
300
200
100
533

450

172

268

207

Trades2011 Hilti Company Report

Overview.

This is Hilti.

We supply the construction industry with

Key figures (in CHF million)
2011

2010

Change

3,998

3,930

+68

Operating result

207

268

–61

Cash flow from operating activities

242

376

–134

Net sales

97

142

–45

21,84820,305+1,543

Net income
Employees (as at December 31)

technologically superior products, systems
and services. We provide innovative solutions that feature outstanding added value.
We passionately create enthusiastic customers and build a better future with approximately 22,000 team members located in
more than 120 countries around the world.

Net sales (in CHF million)
6,000

2007

2008

2009

2010

2011

5,000

We live clear values. Integrity, the courage toembrace change, teamwork and commitment are the foundations of our corporate

4,000

culture.

3,000
2,000
1,000
4,667

4,700

3,845

3,930

3,998

We combine long-term financial success withcomprehensive responsibility toward society
and the environment. Reciprocal tenets ofopenness, honesty and tolerance apply to

600

2008

2009

Plumbing, heating
and air conditioning
The ability to work quickly andefficiently while achieving highquality, regardless of the application or the materials on
which the installation work is
carried out, is an essential
everyday requirement for specialists in this field. The Hilti
product range offers a multitude of efficient solutions formeasuring and laying out fastening points, drilling anchor
holes, making penetrations inwalls and ceilings, and fastening pipes and ducts of all
kinds to walls, floors and ceilings. We also supply a comprehensive range of firestop
products designed to seal off
pipes and openings in theevent of fire.

Electrical
Hilti direct fastening systems
make electrical installation
work exceptionally efficient –and virtually dustless. The
comprehensive range of electrical fasteners supplied by
Hilti covers a broad spectrum
of applications in this trade,while highly effective dust removal systems for power tools
make slitting, cutting, drillingand chiseling on mineral materials of all kinds quicker, easierand more reliable. Hilti cordless tools for drilling, screwdriving and cutting set thestandard where maximum mobility is required in conjunction
with high performance andlong battery life.

Concrete sawing
and coring
Reliable equipment anddependable services are ofgreat importance to service
contractors. Hilti is renowned
not only for innovative equipment and accessories, butalso for on-time delivery andquick repairs. Our unique Hilti
Fleet Management systemguarantees availability of
replacement tools at all times,
comprehensive services at calculable costs as well as rental
equipment to cover periods ofpeak demand. Hilti also manufactures wall saw blades andcore bits to customer specifications for special applications. Training for users inoperating new equipment plus
expert advice from Hilti engineers are just some of theadditional services we offer.

MiningA combination of outstanding technology, competenton-site analysis of requirements and reliable services
make Hilti the preferred partner for the mining industry.
Our TE MD20 electric rock
drilling system not only provides high performance, italso significantly reduces
health hazards caused bynoise and vibrations. Hilti’s
OneStep self-drilling rockanchor system makes walland roof bolting quicker
while cutting operating andservicing costs. The comprehensive Hilti portfolio of
products and accessories
makes the installation of infrastructure above and below ground more efficientthan ever before.

Solar
The ability to install any
type of solar panel with only
six system components ensures high cost-efficiency
and great flexibility. The Hilti
panel mounting system
consists of preassembled,
corrosion-resistant parts
and thus ensures easy installation and long life. Hilti
know-how in structural design and foundation work
combined with a broad
range of innovative products ensure the required
versatility for groundmounted solar parks as wellas roof installations. Our experts with many years ofexperience provide support
in planning, specificationand project management.

EnergyOne of our prime goals in
the energy industry is toprovide innovative solutions that boost productivity, increase reliability andminimize health and safety
risks. Hilti certainly has agreat deal to offer in thisfield. Our well-proven direct fastening methods
and flexible modular pipe
installation systems, for instance, can make timeconsuming and costly
welding or tedious installation work unnecessary inmany cases. Offering
competent, on-the-spot
support with the planningand execution of complex
energy projects of all magnitudes, our specialists areat your service throughout
the world.

Hilti GX 120 gas-actuatedfastening tool

Hilti TE 6-A36 cordless rotary
hammer with the TE DRS-6-A
dust removal system

Hilti CP 653 speed sleeveHilti DST 10-E wall saw system

Hilti TE MD20 drilling system

Hilti MSP-AL photovoltaic
panel mounting system

Hilti DX 351 BT powder-actuated fastening tool with X-BT
threaded studteam members, partners and suppliers alike.

Operating result (in CHF million)
2007

Interior finishing
Our goal is higher productivity
and greater reliability for contractors in every field of interior
finishing including drywall andceiling installation, tiling andfloor renovation and door andwindow installation. Laser tools
for measuring and aligning, acomprehensive range of drilling
tools and anchors, and direct
fastening and screw fastening
systems for repetitive use ensure top productivity and cost
efficiency. Concrete surface finishing, keeping dust to a minimum, plus the use of special
foams for insulation, filling, fastening and soundproofing, areother areas in which our knowhow is in great demand. Hilti’s
product portfolio for interior finishers is rounded off by a comprehensive range of firestop
products.

2010

2011

500

Our corporate goal is to generate sustainable profitable growth.

400
300
200
100
533

450

172

268

207

Topics.
04

Editorial

06

Strategy

10

Customers

16

Areas of business

22

Products

28

Research and development

34

Team members

40

Executive Board

42

Board of Directors

44

Corporate responsibility

64

Key figures

76

TradesPublisher: Hilti Corporation, Corporate Communications,
PO Box 333, 9494 Schaan, Liechtenstein
Editor-in-chief: Jessica Nowak
Editorial team / Text / Translation: Nicole Bays, Priya Ender, Claudia
Fernus, Matthias Hassler, Stephan Moosbrugger, Jessica Nowak, Anja
Nöstler-Büchel, Susie Wellendorf, Chris Larson
Design: Jeannine Merkli
Photography: Uli Reitz, AlpTransit Gotthard AG, Aaron Bunch (Karratha,
Australia), Jason Hendriks, Ambient Photography (Toronto, Canada), Karl
Hopkinson, Image Group (Preston, England), Roland Korner, Close up AG(Triesen, Liechtenstein), Wolfgang C. Kuthan (Thüringen, Austria), Dmitry
Kuzmin, with the kind permission of PWC (Moscow, Russia), Jorge Lara
Martinez, Doos Comunicación Gráfica (Mexico City, Mexico), Michael
Zanghellini, zanghellini.li Fotografie (Schaanwald, Liechtenstein), Leiming
Zhang, Newsco (Shanghai, China)
Printed by: BVD Druck + Verlag AG (Schaan, Liechtenstein)
Image processing: Miro Repro (Hamburg, Germany)
The Company Report is published in German and English. Duplication, even inpart, only with permission of the publisher.
The complete Financial Report, principles of corporate governance, a Group
organizational chart, list of consolidated companies and information on theMartin Hilti Family Trust may be found on the Internet at www.hilti.com.
This Company Report was printed on paper bleached without chlorine.

4

Editorial
2011 Hilti Company Report

Dear Readers,

From Hilti’s point of view, the summary of the 2011
business year has two sides. While we posted
above-average worldwide sales growth andgained added market share, our successes were
not significantly reflected in our operating result.
There are many reasons for this.
Negative currency influences and rising material
and logistics costs are contributing factors. The
significant strategic investments we made in
growth markets and new areas of business, someof which have yet to generate satisfactory profitability, also impacted our overall results.
The strong level of increased sales is a confirmation of our strategy of maintaining focus on growthmarkets and new business areas where we can set
ourselves apart from the competition and generate
sustainable profitable growth. Our operating result
nonetheless clearly shows that we must return to amore robust performance level to sustain our investments and better prepare for future global influences and market uncertainties.
Growth is important, but it must be profitable.
Profitability is key, but it must be sustainable. Together they form the mainspring for our activities

Pius Baschera
Chairman of the Board of Directors

in 2012. The core of our efforts is based on whatmakes Hilti so unique: our quality, strength of innovation and differentiation in both products and services – all of which generate enthusiasm as well astrue added value for our customers.
The decisive resource we need to achieve our aspirations is our employees. Their great commitment and bond with Hilti were reflected in 2011
through top rankings in numerous benchmark
competitions on employee satisfaction. We areproud of this recognition and will build on these results in the future. A competent and highly motivated team is invaluable, particularly in demandingtimes.
2012 will be characterized by new challenges andchanges. We will target our investments, and wewill perceptively adapt our structures. We willstrongly focus on profitability, but not at the costof sustainability. We also will allocate competencies and responsibilities for maximum impact. One
thing remains certain amid any changes: Hilti willremain Hilti. This is true for our customers as wellas our team members.

Bo Risberg
Chief Executive Officer

56Strategy
2011 Hilti Company Report

Differentiation is, and willcontinue to be, our claim.
Bo Risberg, Chief Executive Officer: “We have to look closely at where
and how we can focus on differentiation while also being able to growin a sustainably profitable manner.”7

Our goal is to achieve a sustainable
double-digit return on sales.
2011 was a year replete with both highs and lows. Hilti accelerated its
rate of growth in most countries and gained greater market share. But
extensive currency influences and rising material and logistics costs had
a strongly negative influence on results. The company plans to significantly improve profitability in the coming months through the consistent
implementation of a program of initiatives.

8

Strategy
2011 Hilti Company Report

Mr. Risberg, how did 2011 play out for Hilti?
Bo Risberg: We took significant steps in terms ofsales and posted double-digit sales growth innumerous countries over many months, and we
also improved our market position. There wereeven positive sales results in North America, where
the construction industry remains slow. In Europe
the picture diverged due to the growing debt problems in some countries, but was also positive
overall. We were satisfied with sales developmentin the growth markets and in our new areas ofbusiness in 2011, even if we invested significantly
in support of this growth. But despite our solid
sales growth, our overall result is significantly
below the prior-year level and not at all
satisfactory.
What put so much pressure on the result?
Bo Risberg: The greatest influence was generated
by the massive currency losses. The strong appreciation of the Swiss franc alone influenced our net
income by more than 120 million Swiss francs. But
we also had to contend with rising material prices
and higher transportation costs. The rise in transportation costs was not solely due to external factors. This also was based on our strong growth indeveloping countries. But these additional influences were all the more painful for us because of
the numerous strategic investments we made in
developing countries and in new areas of businessin 2011. We were not as profitable in 2011 as weshould have been.
Does this mean you will stop investing?
Bo Risberg: Certainly not. Investments in growthmarkets and segments where we can improve ourposition and market share are central to Hilti’s
strategy. In the future we will have to better target
our opportunities, and we will primarily invest
where we can generate the most profitable growth.
Our focus will clearly rest on increasing our profitability. This applies not only to developing our market share in various countries or to new areas ofbusiness, but also for all areas of investment.

We also will adapt our cost structure and havebegun to significantly reduce expenses at our corporate headquarters, where we are optimizingorganizational structures and processes. In addition to sustainable profitable growth, our goal is tobecome faster, more flexible and more efficientand to package competencies wherever it makes
sense.
Will there be a change to Hilti’s strategy?
Bo Risberg: In principle, no. Our strategy is theright one and also serves as the basis for our subsequent development. Differentiation is, and willcontinue to be, our claim. As a result our focus willremain on our quality, power of innovation, consulting competence and service level. Now wehave to see exactly which markets, which segments and which product and service portfolios
are appropriate for differentiation while also being
able to generate profitable growth.
What are your expectations for this year?
Bo Risberg: In times such as these it’s difficult tomake a forecast because the entire atmosphere
will continue to be volatile. Overall we expect themarket to cool and to see a further shift of economic power and financial strength towards developing markets. But I’m also confident, particularly
regarding our profitability. We expect to see strong
growth in our operating result this year, but withlower sales growth than in 2011. Both customer
and market requirements will continue to change:
worldwide competition will become more difficult
and the demands on global players will grow. We
know what we can do and where we want to go
and we have a certain something that many othercompanies envy. We are owned by a family trust
which is oriented towards the long term. We also
have a motivated and competent worldwide team,innovative products and services, as well as thecourage and ability to change and adapt to a shifting framework. This gives us what we need to generate sustainable success, even in a volatileenvironment.

9

We belong at the sideof our customers.
Marco Meyrat, Executive Board Member: “Two-thirds of ouremployees are involved in sales and engineering, acting directly
on behalf of our customers. This generates more than 200,000
customer contacts every day.”10

Customers
2011 Hilti Company Report

Hilti know-how was indemand during the construction of the 12th lineof Mexico City’s Metrotransportation system.

11

12

Customers
2011 Hilti Company Report

There has to be more thanmerely good products.
Hilti places the needs of customers at the top of the priority list.
This is why Hilti employees are there when the customer needs
them, whether to provide technical support, to assist in producttests or to deliver replacement tools.

Three questions for José
Oscar Bernal Espinoza, ProjectManager for ICA on the construction of the “Estación 20
de Noviembre” metro station.

Mr. Espinoza, why did you decide to partnerwith Hilti on this project?
Because we know the brand well and have enjoyed many years ofcooperation with Hilti. We also have concluded a Hilti Fleet Management agreement that provides us with replacement tools, if we needthem, quickly and without red tape.
Where do you see the added value of working with Hilti?
The constant availability of account managers when we face questions or problems, and the associated excellent service. The quality
level of Hilti’s consulting services and product support is very high.
Were there any problems during construction of
the “Estación 20 de Noviembre”?
No. Everything went very smoothly. We enjoyed good cooperation
with all our partners and Hilti always supported us with advice andknow-how.

13

Striving to be the best
possible partner.
The construction of the 12th line of Mexico City’s Metro transportation system places significant demands on all participating companies. This makes
the task of Hilti’s Project Coordinator very important to ICA, the secondlargest construction company in Mexico. The project coordinator is on theconstruction site every day, organizing important topics, carrying out advance planning work and thinking ahead.

14

Customers
2011 Hilti Company Report“The biggest challenge is keeping up with theschedule,” says Carlos Gidi Casas, Hilti’s primary
Project Coordinator. “There is a distance of 50
kilometers between the Line 12 project and the
Emisor Oriente Tunnel, which are being built at thesame time. The two projects need to be bridged interms of logistics. We have our hands full at the
moment.” Gidi Casas has managed all of Hilti’s
activities associated with this large project since itbegan three years ago. He holds all the strings,
whether in terms of sales, consulting or administrative questions. “I’m the first point of contact forcustomers,” explains Gidi Casas.

there for us when we require support and this isvery helpful for us as, in the end, it saves us timeand money.”

As Project Coordinator he not only ensures thatany questions are answered as quickly as possible, he also does everything he can to quickly suggest product solutions or provide customers withsuitable applications. “We want to offer a type ofcustomized service throughout all phases of the
project,” says Gidi Casas. This approach is a popular one with customers as delays are the lastthing they want to deal with on the construction
site. José Oscar Bernal Espinoza, Project Manager
with ICA on the construction of the “Estación 20
de Noviembre” metro station, adds: “Hilti is always

Eight Hilti employees are directly involved in the
project, including a key account manager, twosales managers and one field engineer. Carlos Gidi
Casas remains at the center of all the activity, looking after the needs and concerns of customers
around the clock, if required. “Our claim is to be
the best partner for our customers. Not only whenit comes to demonstrating an application or interms of sales, but also when it comes to solid
consulting, providing great service and standing
shoulder to shoulder with the customer,” says the
Project Coordinator.

The Mexico City Metro is the second-largest subway system in North America and was the firstworldwide to designate stations via individuallogos, a system that developed due to the highilliteracy rate prevalent when the system’s first line
opened in 1969. The construction of Line 12,
which will again increase the capacity of the entire
metro network, was set in motion in 2007. Construction work should conclude this year.

15

The Pluto Liquefied Natural Gas (LNG) Plant inWestern Australia. Contractors in the energy
and industry sector
expect a high level ofsafety and efficiency for
Hilti relevant applications.

16

Areas of business2011 Hilti Company Report

Going the extra mile.
Christoph Loos, Executive Board Member: “Hilti has become a presence inthe energy and industry sector through its participation in numerous large
projects. The company’s goal is to further establish its core abilities andcompetencies in these areas, thereby underpinning the Hilti Group’s growth
on a global basis.”

17

18

Areas of business2011 Hilti Company Report

Meeting demands ina harsh environment.
As one of the contractors involved in the construction of the
Pluto LNG Plant, Monadelphous is responsible for providing
structural, mechanical and piping works to the project. With ateam of international specialists, Hilti assists this customer inevery phase of the project.

Three questions for DaveBurch, Senior Construction
Manager with Monadelphous.

Mr. Burch, productivity, efficiency and safety have the utmost
priority in your industry. How did the solutions Hilti provided
support these aspects?
With first-class consulting services and many product training sessions. This helped us to complete many tasks faster and easier than
we would have otherwise. This is very important because during
peak construction times there were more than 1,000 Monadelphousworkers at the facility.
What type of challenges did you face in this project?
Working in such a remote area definitely has its challenges, especially when you are more than 1,500 kilometers away from the capital city of Western Australia. Having an efficient logistics network isvital. Hilti was able to meet these demanding supply conditions fromthe outset. The harsh climate of this region also posed challenges;
and that’s where Hilti products and know-how helped, such as the
X-BT grating fastening system made of stainless steel components.
What aspects of your relationship with Hilti impressed you?
Whether it is the competence of their technical support, their customer service or the reliability, the commitment provided by Hilti was
unparalleled. Hilti technical and service representatives provided
valuable support during the project. There aren’t many suppliers whoback up their products with that type of service offering.

19

No compromising on quality
and service.
New natural gas fields are being tapped in the Pilbara region ofWestern Australia, 1,535 kilometers north of Perth. The Pluto LNG
Plant being constructed there will produce approximately 4.3
million tons of gas per year. Hilti supports customers in this large
project, from product specification to on-site logistics.

There is a hive of activity on the giant industrial siteon the Indian Ocean, under the unforgiving sun of
the Australian Pilbara. Construction cranes, steel
towers, giant tanks and a labyrinth-like pipe system
flicker in the midday sun as if a mirage. The Pluto
LNG Project is one of many large projects worldwide that is supported by the specialists from Hilti’s
Energy and Industry Business Area. For more thanten years Hilti has made incremen­tal inroads into
new markets in this area.

20

Natural gas is a significant source of energy in the
future of the world economy. With the Pluto LNG
Project and other production and processing facilities in the planning stages, Australia aims tobecome one of the world’s leading producers ofliquefied natural gas. A massive amount of investment is going into the Pluto LNG Project – a joint
venture between the facility’s operator, Woodside,
who owns 90 percent of the project, and partners

Areas of business2011 Hilti Company Report

Tokyo Gas (TG) and Kansai Electric (KE), who eachhold a five percent interest in the foundation
project.
The facility has been under construction since2007 and the first gas shipments should flow inearly 2012. Hilti’s involvement in the project has
been as a supplier and technical consultant to anumber of construction companies contracted towork on the site. Since work began, Hilti Australia
has supplied the project with more than 6 kilometers of MI-90 girder, part of the MI-90 channel
installation system, used as cable tray support
under the project’s seven substations, as well as
80,000 X-BT and X-FCM-R 25/30 grating discs,
for securing grating on many of the elevated walkways. Apart from the corrosive environment
caused by the coastal location, temperatures regularly reach 40° Celsius and higher in the summer
months and cyclones causing torrential downpours and devastating winds are not uncommon

between late spring and early autumn. To tolerate
the variable weather conditions, the chemicalanchor used due to its high load capacity andwide range of installation temperatures was Hilti
HIT-RE 500. “The construction site and the structures being built need to endure the harshest of
weather conditions, that’s why there is no compromising on quality,” says Dave Burch, Senior Construction Manager at Monadelphous. “With Hilti we
get support from the experts and have absolute
faith that their products meet the strictest
requirements.”
An international team of Hilti specialists and engineers from Australia, England and Liechtenstein
worked on product specifications, as well as intechnical planning, sales consulting and logistics.
The smooth cross-border teamwork and the highly
differentiated offering of applications and services
turned out to be decisive factors in the success ofthe project within Hilti.

21

The Hilti HAC anchor channel
increases the ability to takeup greater shear loads close
to edges. It was the first
choice of contractors constructing the “L’Avenue”
luxury shopping center inShanghai.

22

Products
2011 Hilti Company Report

Our products deliver
what we promise.
Stefan Nöken, Executive Board Member: “We have the right products
for every application. Our product portfolio is regularly monitored andadapted to meet changing market needs.”

23

24

Products
2011 Hilti Company Report

Hilti sets product standards
for tomorrow.
The small details are often decisive when it comes to representing the true quality of a product. This was the case with the Hilti
HAC anchor channel, which has thoroughly convinced users
with its new V shape – unheard of in the market until now.

Three questions for Helen Xue,
Product Manager with Hilti
China who leads the“L’Avenue” project, the new
business complex being built
in Shanghai by the Moët Hennessy Louis Vuitton luxury
group and by Stanley Ho, theHong Kong billionaire and realestate entrepreneur.

How has the Chinese market responded to the Hilti HAC
anchor channel?
While cast-in anchor channels are a new product in the Hilti portfolio, they have been used in the Chinese market for some time. Therefore our biggest challenge was to convince construction professionals, who had been using competitor products, of the advantages of
our anchor channel. Hilti China thus prepared a six-month softlaunch and conducted product launch seminars in Shanghai, Beijing
and Shenzhen, where most of the curtain wall companies and consultants are based.
“L’Avenue” is the first building in China to feature the new
Hilti HAC anchor channel. How did this come about?
Hilti’s anchor channel had yet to be launched when building specifications were drawn up. When the Gartner Company was selected tocarry out façade construction, and the technical requirements for the
project had been specified, the engineers involved immediately
thought of Hilti HAC.
Which characteristics of the Hilti product proved decisive?
The ability to take up greater shear loads close to edges and the fastand simple installation.

25

26

Products
2011 Hilti Company Report

Where luxury meets precision
technology.
The new office building of the Moët Hennessy Louis Vuitton luxury group and Hong Kong billionaire Stanley Ho not only sets new
standards in an optical sense. Significant attention also was given to technical quality. It is the first building in China to use theHilti HAC anchor channel.

The silhouette of the highly modern building,located in Shanghai’s Hongqiao district, quickly
gained form when the German façade specialist
Gartner began constructing a three-dimensional
curtain wall façade. Some 140,000 square metersof office and commercial space are being constructed, packed in modern steel and glass. The
28-story building is being built by the Moët Hennessy Louis Vuitton group (LVMH) and Hong Kong
real estate magnate Stanley Ho. The investors are
creating a fashionable address for luxury brands.
In late 2010, as Gartner Shanghai was considering
options to attach the curtain wall brackets to theconcrete structure, Hilti China approached thecompany to discuss Hilti’s newly launched HAC
anchor channel product. Thus began an intense
period of calculations, clarifications and detailed
technical discussions between Gartner and Hilti in
Germany, Liechtenstein and China. As Gartner engineers were using HAC for the first time, the burden of proof was on Hilti. Product Manager HelenXue and her internationally based colleagues had
to prove that all loads were accounted for, all approvals had been obtained and all certifications

were in place. Hilti was successful as the HAC,
one of the company’s most significant innovations
in recent years, was selected to fasten the curtain
wall façade.
Anthony Bai, a Project Manager with Gartner,
doesn’t regret the decision to go with Hilti. The
groundbreaking V shape of the HAC directs occurring loads into the concrete particularly well, thereby increasing the ability to take up greater shear
loads close to edges. This not only reduces Gartner’s material costs, but also simplifies planningwork. “The ease of positioning the Hilti anchor
channels is better than anything we have seen
until now,” says Bai.
By the time construction is finished in the second
half of 2012, some 4,000 Hilti HAC anchor channels will have been used in “L’Avenue”. Then thecomplex will be ready to host the world’s luxury
brands. Construction workers soon will pack up
their toolboxes and head home, making way forthe logos and monogrammed bags and clothes ofLouis Vuitton and others.

27One also has to gain
an in-depth look.
Matthias Gillner, Executive Board Member: “Hilti stands for the power ofinnovation. We continually invest in research and development, even in difficult economic times. Our new products meet the continuous rise in customer demands, even those based on the harshest operating conditions.”28

Research and development
2011 Hilti Company Report

An extensive innovation forstructural analysis entered
the market with the launchof the new Hilti X-Scan
PS 1000 detection system.
An interdisciplinary development team from Hilti’s
Measuring Systems Business Unit created a precision tool that looks insideconcrete construction.

29

30

Research and development
2011 Hilti Company Report

An “X-ray” through concrete.
The Hilti X-Scan PS 1000 detection system looks inside concrete
construction. It allows the user to precisely locate rebars, pipes
or cable channels, minimizing the risk of damage when drilling.

Three questions for Sascha
Korl, head of a team of experts
and Technical Project Manager
for the development of the
new Hilti X-Scan PS 1000 at
Hilti’s Measuring Systems
Business Unit.

Mr. Korl, what goes into real Hilti innovation?
Real Hilti innovation is not merely satisfying the customer, but
enthusing them! This begins with a construction site analysis, when
we attempt to understand the customer’s needs. It ends with solutions that provide the customer with true added value.
What drove the team in developing the new detection system?
The immediate sense of enthusiasm we saw when we initiallyshowed the customer the X-Scan PS 1000. All of a sudden there
were pipes and cables that were not previously visible. That’s when
we knew that we were on the right track.
Why are detection systems playing an increasingly significant
role in building analysis?
New buildings and their architecture are more complex. More older
buildings also are being examined. Detection systems help to avoid
damage to pipes and they also increase safety for construction
workers when they carry out drilling work.

31

We have to reinvent ourselves
on a daily basis.
The claim of tirelessly searching for new products and solutions
has been part of Hilti since the beginning. Hilti is treading newtechnological ground with the X-Scan PS 1000 detection system,
which specializes in the non-destructive examination of concrete
structures.
Sascha Korl quickly moves across the wall of acellar in Hilti’s technical center with a laptop-sized
tool. In 30 seconds he has scanned a section of
the wall, covered with a paper grid, with the new
X-Scan PS 1000. Korl follows the horizontal andvertical lines and traces shown on the grid. “Ournew technology, which includes three antennas
that are integrated in the scanner, allows us toscan to a depth of 30 centimeters relatively
quickly,” adds Dietmar Schönbeck, the interdisci-

32

plinary team member responsible for the scanner’s electronics. Thanks to radar technology it ispossible to see other objects located behindrebars in buildings with complex designs.
The question of how to precisely locate cablechannels or rebars buried in concrete, and to avoid
costly and time-consuming drilling errors, hasbeen a concern of both Hilti developers and customers. The damage associated with drilling into

Research and development
2011 Hilti Company Report

hidden objects can be very serious and is associated with high costs. There also is a significant
safety risk if a tensioning cable in bridge or deckconstruction is hit. The user could be severely
injured by the uncontrolled release of a tensioning
cable. A solution had to be found that would allow
an anchor to be precisely positioned and set in the
thick concrete wall of an atomic power plant.
“This is no standard product; it is cutting-edge
technology,” comments Schönbeck. A team ofhighly specialized employees, including physicists
and high-frequency electronics technicians andmechanics, were involved in the detector’s development. All of the tool’s components are basedon Hilti research and development. One quickly
notices the fascination development team members have for the project. “We were motivated todevelop something completely new,” says Patrick
Haldner, Software Development Project Manager.
The X-Scan PS 1000 is truly a high-tech tool.
Measuring data is collected in intervals of billionths of seconds. The signals are immediately

converted into images, and it is easy to identify
objects concealed beneath the concrete. Rebars,
water pipes and cable channels are clearly visible
to the viewer. Now the user can decide where to
drill. A new feature is a three-dimensional image,which appears on a monitor. This makes structural
analysis and evaluation simpler, as confirmed bymany customers in various field tests. “It’s neverbeen easier to identify and localize individual
objects.” Customers do not explicitly note thetool’s complex technology. Thanks to the simple
operating concept and the clear visual presentation of results, the operator needs no particularspecialized know-how and can use the tool after
completing a brief training session.
The development project will not end for the teamwith the X-Scan PS 1000’s introduction. “We’renot running out of ideas and we already havestarted work on a subsequent project,” says Sascha Korl. While he won’t reveal what is involved,
it is certain to once again be based on generating
customer enthusiasm.

33

Frank Iaccino, Hilti AccountManager in Toronto, ventured a new start in more
ways than one. He simultaneously changed sales
areas and trade segments
and launched a new careerin doing so.

Responsibility for people
and the company.
Jörg Kampmeyer, Executive Board Member: “Entrepreneurial successis deeply linked to the leadership and development of team members.
Hilti offers every employee the opportunity to grow and to personallydiscover new horizons.”

34

Team members2011 Hilti Company Report

35

36

Team members2011 Hilti Company Report

An incentive and motivation to
become even better.
The ongoing development of employees is a firm component of
Hilti’s corporate management. For the first time, Hilti ranked 15th
in the benchmark study of the world’s best multinational workplaces conducted by the Great Place to Work® Institute. This
places Hilti among the best multinational employers and in thesame league as firms such as Microsoft, Google and 3M.
Three questions for
Klaus Risch, Head of Global
Human Resources for the Hilti
Group.

Mr. Risch, the study looked into workplace culture and studied
the attractiveness of an employer using employee surveys. Whatsignificance does this recognition have for you?
We were very happy to receive this independent recognition, particularly because it was for a topic that is close to the heart of the company: being a great place to work for our employees. It also is arenewed incentive and motivation to continue to consistently follow
the course to become even better. This is an ongoing task for us.
What are the pillars of employee development?
People and the development of their talents and aptitude are a primary focus at Hilti. Managers and human resources are not the only
ones responsible for employee development. Employees also have agreat deal of responsibility for their own progress and growth.
What possibilities for growth do employees have at Hilti?
Hilti is an ideal employer for anyone who wants to accept responsibility and grow professionally. We grant people a great deal of flexibility and encourage them to leave the circle of habits, to collectnew experiences and to grow as they do. Hilti provides a solid
framework for this and a wealth of opportunities, such as training
possibilities, moving into a new function or working in a different
country and culture.

37

Having the chance to growwith the company.
When talking with Frank Iaccino, it’s impossible not to feel thepassion he has for his job. The Canadian with Italian heritage
recently took the courageous step of changing careers, albeit in
the same company and with the blessing of his boss.

38

Team members2011 Hilti Company ReportFrank Iaccino is one of eight account managers inToronto. He and the entire building and construction team are responsible for industrial constructionin the smallest, yet most central territory in the citythat borders Lake Ontario. Small, however, only
refers to the geographical area as his territory has
more construction sites than any other in Canada.
The growth appears to be unlimited and new skyscrapers appear every 500 meters. There are somany that it’s difficult to figure out which construction site the many crane jibs are moving towards.
Hotels, offices, apartment buildings – Canada’s
largest city appears to be bursting at the seams.
This is good news for Iaccino and his team. Theirorder books are full and the team members arealways greeted enthusiastically on construction
sites. But it wasn’t always this way. The 40-year-old
has only recently taken over responsibility for thesales territory in the heart of Toronto, switching not
only the area where he worked previously, but also
the trade segment. Until recently Iaccino was oneof the residential construction specialists on the
Canadian team, and there were very few construction and renovation projects that didn’t require his
advice or expertise. He also was a committed
member of all relevant associations and boards.
“I had nothing to do with industrial construction.
I didn’t know anyone and the people there didn’tknow me either,” says Iaccino.
One day his boss came to him, certain that Frank
had the potential to delve into a new segment andtake on a higher position. “It’s fantastic when thecompany you work for trusts you to develop personally and professionally. They could have left me
where I was. The customers were happy and I was
happy and everything was running smoothly,” explains Iaccino. But Hilti gave him the opportunity
to do more, and the father of two had the courage

to take this step and start from scratch. Today he’s
happy that he made the transition, even though it
wasn’t easy at the outset.
“Everyone supported me. My colleagues, my newteam, my boss and my family. Initially I didn’t know
where and how to begin. Everything was new. My
trade segment, my customers, my territory and myteam. I was very impatient with myself and wanted
to do everything correctly from the get-go, but I
had too many things going at the same time. My
boss helped me to learn to take it one step at atime, not to be discouraged and to see every newexperience as an important one,” says Iaccino.
The most difficult thing for him was giving up thecustomer relationships he had built up over years.
“They were like a part of my family and I almost felt
like I was letting them down. But my successor did
a great job and that relieved my apprehensions.”
The only thing Iaccino couldn’t give up was his“personal neighborhood.” This is where he grewup, where he still lives with his family and where hehas been known as the Hilti guy for decades. People recognize and trust him. They go to him when
they have questions about construction. His bossand his successor both understood and didn’t takelong to create a small island of territory for which
he is still responsible.
His red Hilti pickup is still a popular place to meeton the street where he lives. People stop by to talkshop and chat. For Iaccino this is always a pleasure, just like his everyday job. Even if it gets late or
takes place on Sunday. “It’s very satisfying andprideful when people need your help and you canplace products in their hands that almost always
elicit a ‘wow’ in response,” he laughs. That’s when
one senses the great passion for what he does.

39

The Executive Board.

40

Bo Risberg
Chief Executive Officer
Wollerau, Switzerland
Bo Risberg (born 1956, Sweden) has been CEO
since January 1, 2007. He trained as a mechanical engineer at Queen’s University in Canada
and then acquired an MBA at IMD in Lausanne,
Switzerland. From 1981 to 1995 he worked invarious positions with the ABB Group before
working for a consulting firm between 1995 and1999. He joined Hilti in 1999 as Head of the Drilling and Demolition Business Unit. From 2001 to
2006, as a Member of the Executive Board, he
was responsible for the Business Areas, theSupply Chain comprising production, sourcing
and logistics and New Business & Technology.
Bo Risberg is a Member of the Board of Directors of Trelleborg AB, Sweden, Grundfos Holding A/S, Denmark, and IMD, Switzerland.

Jörg Kampmeyer
Vaduz, Principality of LiechtensteinJörg Kampmeyer (born 1968, Germany) has beena Member of the Executive Board since April
2011. He is responsible for the Finance, Human
Resources, IT and Corporate Development units.
Jörg Kampmeyer studied mechanical engineeringand economics at RWTH Aachen University after
which he worked as a management consultant.
He began his Hilti career in 2002 as the Head ofCorporate Development in Schaan. From 2003 to2005 he was responsible for the company’s worldwide marketing activities before heading the German market organization in 2006 and, as of 2010,
the Market Region Central Europe.

Matthias Gillner
Grabs, Switzerland
Matthias Gillner (born 1967, Germany) has beena Member of the Executive Board since April
2011. He is responsible for the Electric Tools &Accessories, Corporate Research & Technology
and Global Tool Service units. Matthias Gillner
studied chemical engineering at Friedrich-Alexander University of Erlangen-Nürnberg, Germany. He was then employed by a consulting company from 1993 to 2000. During this time heacquired an MBA at INSEAD in Fontainebleau,
France. He began his Hilti career in 2000 as the
Head of Corporate Development. After leading
Corporate HR he was named Head of the Measuring Systems Business Unit in 2003. From2006 to 2011 Matthias Gillner was Head of theElectric Tools & Accessories Business Area.
Matthias Gillner is Member of the Board of theEuropean Power Tool Association (EPTA).

Dr. Christoph Loos
Schaan, Principality of Liechtenstein
Christoph Loos (born 1968, Germany) has been a
Member of the Executive Board since 2007. He is
responsible for the Emerging Markets and Energy& Industry units. Subsequent to training as a banker, he completed studies in business administration with a doctorate from the University of St. Gallen. He then worked as a management consultant
in Germany and China. Upon joining Hilti in 2001,
he first led the Corporate Development team, after
which he established the Strategic Marketing unit.
At the end of 2003 he moved to Germany, first as a
Regional Sales Director and then as General Manager of Hilti Germany.

Executive Board
2011 Hilti Company Report

The Executive Board (from left): Stefan Nöken, Marco Meyrat, Christoph Loos, Bo Risberg, Matthias
Gillner and Jörg Kampmeyer on the occasion of their visit to the Hilti Development Corporation in
Kaufering, Germany.

Marco Meyrat
Chur, Switzerland
Marco Meyrat (born 1963, Switzerland) has beena Member of the Executive Board since the beginning of 2005. He is responsible for the markets in Europe and North America. With a business degree from the University of St. Gallen, hebegan his career in 1989 as Product Manager at
Hilti Headquarters in Schaan. After holding various positions in Hilti France and Hilti Germany,
he was named Head of Hilti Switzerland in 1999
and was subsequently appointed General Manager of Hilti Germany in 2002. Marco Meyrat is
Chairman of the Board of Directors of OLMeROAG, Glattbrugg, Switzerland.

Dr. Stefan Nöken
Mörschwil, Switzerland
Stefan Nöken (born 1965, Germany) has been on
the Executive Board since the beginning of 2007.
He is responsible for the Fastening & Protection,
Global Logistics, Global Manufacturing and Corporate Intellectual Property units. Following studies in mechanical engineering at Aachen University, where he earned a doctorate, he was employedat the Fraunhofer Institute for Production Technology in Aachen, Germany. In 2000 he joined Hilti as
the Head of Corporate Engineering. In 2004 he
was appointed Head of Supply Chain Management. Stefan Nöken is a Member of the Board ofTrustees of the Fraunhofer Institute for Production
Technology in Aachen and Vice President of Unitech International, the network of Europe’s leading
technical universities.

41

The Board of Directors.

Prof. Dr. Pius Baschera
Chairman of the Board of Directors
Zurich, Switzerland
Pius Baschera (born 1950; re-elected to serve until
the 2013 Annual General Meeting) is Chairman of
the Board of Directors. He studied mechanical engineering and business administration at the Swiss
Federal Institute of Technology Zurich, where heearned his doctorate. In 1979 he came to Hilti as
Head of Financial Controlling in the production
area. Before being named Chairman, he served as
CEO for 13 years. He is currently a Member of theBoard of Directors of F. Hoffmann-La Roche Ltd.,Basel, and the Schindler Group, Hergiswil. He also
is a Member of the Advisory Boards of Vorwerk &Co., Wuppertal, and Ardex GmbH, Witten, Chairman of the Board of Directors of Venture Incubator
AG, Zug, and a Professor of Corporate Management at the Swiss Federal Institute of Technology
Zurich.
Michael Hilti
Schaan, Principality of Liechtenstein
Michael Hilti (born 1946; re-elected to serve until
the 2012 Annual General Meeting), son of company founder Professor Martin Hilti, has been a
Member of the Board of Directors since 1990. After studying business administration at the University of St. Gallen he worked in banking in London
before joining Hilti in 1974 as the Deputy Head ofMarketing. Two years later he was named to thecompany’s Executive Board and he served as
CEO from 1990 to 1993. He was Chairman of theBoard of Directors from 1994 to 2006. Michael
Hilti is a Trustee of the Martin Hilti Family Trustand President of the Board of the Hilti Foundation.
Prof. Dr. Giorgio Behr
Buchberg, Switzerland
Giorgio Behr (born 1948; re-elected to serve until
the 2012 Annual General Meeting), Honorary Professor at the University of St. Gallen, was previously a Member of the Board of Directors of the
Hilti Corporation between 1993 and 2007. Since
January 2008 he has been a Trustee of the Martin
Hilti Family Trust and in January 2009 he was42again elected to serve on the Board of Directors ofthe Hilti Corporation. Giorgio Behr is a Member of
the Supervisory Board of ZF Friedrichshafen AG.
He gained his doctorate at the law school of the
University of Zurich, was admitted to the bar andobtained a diploma as a Certified Public Accountant. Today he is an entrepreneur in the industrial
sector (Behr Bircher Cellpack BBC Group).
Kim Fausing
Sonderborg, Denmark
Kim Fausing (born 1964; elected to serve until the2013 Annual General Meeting) was elected to theBoard of Directors in 2010. He earned a degree inmechanical engineering at Aarhus Teknikum, in
Denmark, in 1987, and an MBA degree at Henley
Management School, in London, in 1996. His professional career led him to the Hilti Group in 1990,
where he served in various management functions
in Europe and Asia until 2007. After moving to theDanish Danfoss Group, he was named Chief Operating Officer and Member of the company’s executive committee in January 2008. He also is a
Director of Sauer-Danfoss Inc., USA, Danfoss Turbocor Compressors, Inc., in Tallahassee, Florida(USA), and the Velux Group in Copenhagen.
Heinrich Fischer
Rüschlikon, Switzerland
Heinrich Fischer (born 1950; re-elected until the2013 Annual General Meeting) has been a Memberof the Board of Directors since 2007. He graduated in 1973 with an engineering diploma from the
Swiss Federal Institute of Technology Zurich, having studied electrical engineering and technicalphysics. He then went on to study business administration at the University of Zurich while working in this field, earning a master’s degree in 1976.
Beginning in 1977 he held senior management positions at Oerlikon Bührle Holding, Balzers AG(1980 to 1989), and finally at Oerlikon Holding
once again (1990 to 1995). From 1996 to 2007 he
was Chief Executive Officer at Saurer AG, Arbon.
Heinrich Fischer is a Member of the Board of Directors at Schweiter AG, Tecan AG, Fortu AG and
Sensirion AG.

Board of Directors
2011 Hilti Company Report

The Board of Directors (from left): Michael Jacobi, Michael Hilti, Pius Baschera, Tis Prager, Giorgio Behr,
Heinrich Fischer and Kim Fausing on a trip to the Eastern Europe Region, where they visited the Hilti
Center in Prague as well as other locations.

Dr. Michael Jacobi
Binningen, Switzerland
Michael Jacobi (born 1953; re-elected until the2013 Annual General Meeting) was elected to theBoard of Directors in 2007. He studied businesseconomics at the University of St. Gallen and at
the University of Washington, Seattle, and earned
his doctorate from St. Gallen in 1979. From 1978
until 2007 he held various management positionsin the financial area of Ciba Geigy AG and later in
Ciba Specialty Chemicals Inc., Basel. He was
Global Chief Financial Officer from 1996 until 2007.
Today Michael Jacobi is an independent corporate
consultant. Since 2003 he has been a Member ofthe Board of Directors of Sonova Holding AG,
Stäfa, and since December 2008 a Trustee of theMartin Hilti Family Trust. He was named to theBoard of Directors of Actelion Pharmaceuticals
Ltd., Allschwil, in 2009.

Dr. Tis Prager
Zumikon, Switzerland
Tis Prager (born 1948; re-elected until the 2013
Annual General Meeting) has been a Member ofthe Board of Directors since June 1, 2006. He
earned a doctorate in law from the University of
Zurich in 1975, was admitted to the bar of the
Canton of Zurich in 1978 and is a founding member of the Prager Dreifuss law firm in Zurich andBern. Among other mandates, Tis Prager is the
Chairman of the Board of the IE Engineering GroupAG, Zurich, Hotel Zurich AG (Marriott), Caprez Ingenieure AG, Zurich, and Scherer & Bühler AG,
Meggen. He also is a Member of the Board of Directors of Bourquin SA, Couvet, and is active in
STEP, the Society of Trust and Estate Practitioners.

43

44

Corporate responsibility

Team members

User health and safetyCorporate responsibility
2011 Hilti Company Report

Corporate social responsibility

Environment

Compliance46

Corporate responsibility

Team members

User health and safetyCorporate responsibility
2011 Hilti Company Report

Hilti’s business activities have local, national andglobal influence on society, employees, the environment and the economy. Accepting responsibility for this influence is a matter of course for Hilti
and at the heart of the corporate philosophy. Hilti
focuses on transparency, ethics and respect towards all stakeholders, underscoring this accountability by separating corporate responsibility into
five segments: team members, user health andsafety, corporate social responsibility, the environment and compliance.
The company creates an environment – a greatplace to work – for team members in which they
enjoy a sense of well-being, can grow personallyand can fully develop their potential. True to thecompany values of integrity, courage, teamwork
and commitment, the Hilti Group invests in its employees, creating perspectives that make customized development and long-term worldwide careerplanning possible for everyone.
There are few professions as dangerous as that ofa construction worker. Thousands of accidents occur every year on construction sites throughout
Europe. User health and safety is therefore aconstant topic of interest. Hilti competence centers for ergonomics and reduction of dust, noiseand vibration continue to develop new technologies aimed at protecting the user. This enhances
jobsite safety and reduces the danger of injury andresulting work interruptions. Viewed together,
these efforts make the construction site a safer
place.

As part of corporate social responsibility, theHilti Foundation and the Hilti Group jointly support
projects in the areas of affordable housing, community development, culture, disaster relief, education and social entrepreneurship. All of thesecommitments are based on the goal of helping
people towards a dignified, sustainable and independent life while reducing the gaps and divisions
within society.
The construction industry is responsible for a significant amount of the world’s CO2 emissions. To
help maintain the environment for future generations, Hilti has commitments at both product andcorporate levels. Hilti’s production facility in Austria, for example, is a pioneer in environmentallyfriendly construction. Eighty percent of the energy
used at this Hilti plant is taken from renewable resources. Hilti customers benefit from energy-efficient tools that enjoy a long life and are made witha significant amount of recyclable materials. Hilti also offers products in the areas of green building
and solar, water and wind power and has supported the UN’s Caring for Climate initiative since 2007.
The compliance standards apply to all Hilti employees, suppliers and partners worldwide. The obligation to observe legal and ethical rules, particularly those for anticorruption, fair competition andthe protection of data, is integrated in the company’s Code of Conduct. Hilti has a strict zero-tolerance policy for bribery and corruption in all of its
business activities worldwide. Hilti’s participationin the UN Global Compact and in the Partnering
against Corruption Initiative demonstrates its determination to counter corruption and to support andmaintain social and ecological standards.

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ComplianceAt the forefront of international
competition.
Being at the front is not merely a goal for veteran Hilti employees.
Newer employees also are encouraged to achieve top technicalresults. Manufacturing specialist Sandro Ospelt showed off his talents last year at the WorldSkills professional championships in
London, winning a bronze medal in the CNC milling category.

The WorldSkills 2011 event hosted some 1,000
young people from 51 countries, competing
against each other in 46 separate skills categories. Approximately 200,000 visitors watched thesemiannual competition, among them U.K. Prime
Minister David Cameron who gamely followed theaspiring specialists.
These included Liechtenstein’s Sandro Ospelt. He
concluded his polymechanic apprenticeship with
Hilti in 2010 and is now a manufacturing specialist
at Hilti’s production facility in Schaan.
At WorldSkills the 21-year-old completed three test
modules over a period of 18 hours. The modules,
to manufacture aluminum and steel parts, included
all the necessary work steps from programming acomputer to finishing the work on the CNC millingmachine.

48

Corporate responsibility

The strenuous training completed in advance ofthe competition by the CNC milling specialist andhis vocational trainer, Reto Blumenthal, paid off inthe end as the young man from Liechtenstein outpaced all but a few of the international competitors. “The medal means a great deal to me. Itshows that I can keep up with anyone from anywhere,” said a happy Sandro Ospelt. The gold
medal was shared by representatives from Japanand South Korea.
Sandro Ospelt’s third place ratifies the high qualityof Hilti’s vocational training. “Once they conclude
their apprenticeship our trainees are highly coveted professional specialists,” adds Remo Kluser,
Head of Vocational Training at Hilti. “This is why
we want to give them various perspectives andpossibilities that make a career with our company
an attractive option.”

Team members

User health and safety

Team members2011 Hilti Company Report

The company within the company.

During the third year of their apprenticeship training, Hilti Corporation trainees based at headquarters in Schaan, Liechtenstein, operate their own company over a six-month period. They learn agreat deal about company management and collect experiencesthat will be valuable to them later in their careers.

Over the last year the team members of Hilti’s “AllIn” junior enterprise have displayed a significant
amount of entrepreneurial spirit. The 28 apprentices, including commercial and IT specialists,
polymechanics and logisticians, have developed
an innovative product portfolio that has generated
solid results. The primary customers were employees based at Hilti headquarters who purchased
creative garden decorations, bottle openers andraclette grills, among other items. The young entrepreneurs ran their company under actual conditions with real cash flow and movement of goods.
As with any company, the junior enterprise underwent various phases during its six-month lifecycle.
The company created a business plan, was officially founded, experienced initial success andeven survived a crisis in January when it had no inventory of products and required new ideas. Thiswas followed by successful change management

Corporate social responsibility

and a renewed upturn in business. The learning
experience was a great one and the company also
booked a positive financial result, generating afive-digit net profit. “All In” General Manager Dermot Allen knows the secret of the company’s success: “It’s due to our cohesiveness, our team spirit
and the constructive way we managed the crisis.
We always focused on the positive aspects, evenwhen it was difficult to do so.”
Hilti gives the managers of tomorrow a comprehensive education that includes social, systematicand technical focus. The junior enterprise is a significant cornerstone of the vocational training concept. “Entrepreneurial thought is developed byhaving the apprentices complete practical tasks.
But initiative and independence also are stimulated by giving the young people the responsibility
to make their own decisions,” adds Remo Kluser,
Head of Vocational Training at Hilti.

Environment

ComplianceSafely through the mountain.
It is currently the largest construction project in Switzerland. The
construction of the New Railway Link through the Alps (NRLA) creates a fast and efficient railway connection through the Swiss Alpsfor the transport of both passengers and freight. Hilti is delivering
on-site support to customers in the form of comprehensive advice
and consulting while also providing user training to ensure the safe
handling and usage of Hilti tools.
The centerpieces of the NRLA project are theGotthard and Ceneri Base Tunnels. The Gotthard
Base Tunnel is 57 kilometers long, making it thelongest tunnel in the world. If one adds together
both main tunnel bores and all the tunneling work
done for the cross-passages, access tunnels andshafts, the total length of the tunnel system ismore than 152 kilometers. After some 11 years ofconstruction, the initial final breakthrough took
place in mid-October 2010. The Ceneri Base Tunnel also is an impressive construction project with
its two 15-kilometer-long bores. AlpTransit Gotthard AG is responsible for construction.

50

Corporate responsibility

A total of 5,500 people are working along theentire tunnel route. In addition to the strict safety
regulations governing work in the tunnel, ensuring
user safety when handling and operating tools is ahigh priority. The workers are constantly subject tohigh temperatures, dust, noise and vibrations. To
help reduce the impact of these factors, Hilti
Account Manager Gregorio Vincenzino advises
customers on the jobsite and provides them withthe most suitable tool for the various applications.
“The Hilti TE 80 combihammer, for example, uses
Active Vibration Reduction (AVR), which limits
vibration intensity and is much less tiring to work

Team members

User health and safety

User health and safety
2011 Hilti Company Report

with,” explains Vincenzino. A mass damper systemabsorbs vibrations along the tool’s longitudinalaxis. The grip also is decoupled from the rest of
the tool, helping to reduce vibrational torque. Electronic Active Torque Control (ATC) affords the user
additional safety in the event of the drill bit becoming stuck. The Hilti Account Manager also had aready solution to reduce dust levels when drilling:
the Hilti Dust Removal System (DRS) allows forpractically dust-free work when used together with
Hilti rotary hammers, combihammers and mediumand heavy-duty breakers.
In user training sessions, Vincenzino also familiarizes workers with the tools and the correct protective clothing and equipment. The iron safety nets
fastened to the walls and decks of the Ceneri Base
Tunnel are fastened with Hilti nails by the ItalianSwiss joint venture Consorzio Condotte Cossi. The
nails are driven into the hard base material with theHilti DX 460 powder-actuated fastening tool.
“I provide comprehensive safety training to eachworker before they begin using the tool. The powder-actuated fastening tools are in use all day
long. It’s therefore important to be on-site,” adds
the experienced Account Manager, who has
worked for Hilti for more than 20 years.

Corporate social responsibility

Alpiq Burkhalter Bahntechnik AG, the company
responsible for part of the technical railway infrastructure and another Hilti customer, also profits
from Hilti’s consulting services. Vincenzino provides the company with lightweight cordless drill/
drivers to complete what can be tiring overhead
work. This greatly simplifies installation work.
“In advance of the actual construction work welooked at many tools from different manufacturers
together with our people. We also tried them out ina test gallery. One hundred percent of our installers said that they wanted to work with the Hilti
products. Other firms may be able to deliver goodtools, but the additional expert advice and service
one gets with Hilti is unique,” says Beat Klossner,
South Section Manager with Alpiq Burkhalter
Bahntechnik AG.
The Gotthard Base Tunnel is scheduled to beopened at the end of 2016, the Ceneri Base Tunnel at the end of 2019. When finished, trains willtravel at top speeds of up to 250 kilometers perhour on the high-speed rail line.

Environment

Compliance

The window to the world.
Fatima is 27 years old. Together with her parents and two siblings she lives in an apartment that has 50 square meters of area
in a poor section of Cairo. Making her way to work at seven eachmorning, she travels to El Nafeza, a center for manufac­turing
handmade paper.

52

Corporate responsibility

Team members

User health and safetyCorporate social responsibility
2011 Hilti Company Report

El Nafeza, also known as “the window to theworld,” was founded by the Egyptian artist Mohamed Abou El Naga. He was inspired to create
this center after traveling during his education. “InJapan I saw that the production of handmade paper products not only created jobs and generated
income for untrained workers, but that it could reinvigorate entire communities. I decided to implement this concept in Egypt.”
The Hilti Foundation and its partner organization
Ashoka supported him in realizing his idea. “Weadvised Mohamed Abou El Naga and provided him
with entrepreneurial knowledge and financial support, making it possible for him to have access toa worldwide network of contacts in the social sector,” says Egbert Appel, Managing Director of the
Hilti Foundation.
Since 2005 women, young people and the disabled have learned how to make handmade paper
in El Nafeza and how to create artfully designed
paper products such as gift boxes, book covers
and cards. They use only agricultural waste, suchas rice straw or banana bushes, in the production.
El Nafeza is a good example of an innovative project that combines entrepreneurial activity and sustainability. Creating new jobs is just as important in
Egypt as environmental protection and the preservation of traditional paper-making methods.
Fatima is the first to arrive at El Nafeza – she opens
the window to the world. Her morning rounds takeher to a water basin where she placed rice straw tosoak the previous day. She removes the saturated
rice straw from the water and heats it in a pale. The
straw is boiled for two hours, after which it isworked into a paste and dried before being turned

Corporate social responsibility

into paper. During the cooking stage she discusses
the workday with her colleagues and also uses sign
language as eight of the ten women and youths aredeaf and unable to speak. Often isolated socially, it
is nearly impossible for them to find work, and establish an existence, outside El Nafeza. The idea totrain the deaf at El Nafeza was made possible incooperation with Tamer Bahaa, another Egyptian
entrepreneur. Contact was established through theHilti Foundation and Ashoka.
In the afternoons Fatima and her colleagues regularly conduct courses for children and young people from poor villages surrounding Cairo. The idea
is to show the children that they can influence theirlives with their own hands.
Fatima is satisfied when she closes the doors of
El Nafeza at 4:30 p.m. She loves her work and isproud to earn her own money. The roughly 700
Egyptian pounds (about 105 Swiss francs) she
earns per month is more than the 500-pound
average monthly income of an Egyptian worker.
The money allows Fatima to support her family
and save a small amount. She hopes that her savings will be enough to help realize her dream of
one day opening her own paper manufacturing
center. Fatima wants to pass on her knowledge
and to train as many women and young people aspossible. This corresponds exactly to the Hilti
Foundation’s long-term approach in the area of social entrepreneurship. The Foundation supportsbusiness models that can be copied and replicated. The positive effect of such projects expands again and again, giving more people theability to shape their own life and destiny.

Environment

ComplianceA rating of “attractiveness andsustainability.”
The pulsating finance and cultural metropolis of London is scheduled
to gain another luxury hotel in 2012, just in time for the Summer Olympic Games. In addition to quality, the building’s owners also place agreat deal of significance on sustainability and ecological aspects.

54

Corporate responsibility

Team members

User health and safety

Environment
2011 Hilti Company Report

Knightsbridge, in the heart of London, is one of thecity’s most prestigious districts. Luxury brands
such as Gucci, Chanel and Louis Vuitton can befound on the most popular promenades. This was
the location that the Italian luxury group Bulgari
selected for its latest Bulgari Hotels & Resorts
project. Construction began in 2010 and the fivestar Bulgari Hotel & Residences is scheduled toopen in May 2012. The design is extravagant, thestyle timeless and the material selected is only thebest. Silver dominates the interior design in homage to the founder of Bulgari, the silversmith
Sotirio Bulgari. Star architect Antonio Citterio
selected Portland stone and bronze materials sothat the building would fit neatly into the existing
cityscape.
The glamorous appearance is based on a conceptof sustainability. The Bulgari Hotel & Residenceswere built according to the highest ecologicalstandards. There were no compromises maderegarding the building’s CO2 footprint, and nostone was left unturned in attempts to minimize
the influence on the environment. This uncompromising claim was honored in 2010 when the project was given the U.K. Property Award in the “Best
Hotel” and “Best Development” categories.
The developer of the property, Prime Development, paid strict attention to green building criteria
when selecting partners for the project. A building
earns the green building designation when it isplanned, built and operated in an environmentallycompatible manner, using less energy, water andmaterials while reducing CO2 emissions and operating costs.
Hilti is acutely aware of customers’ green building
requirements and offers a range of products andservices that help meet the worldwide criteria forecological construction such as the BRE Environmental Assessment Method, or BREEAM. BREEAM
is one of the leading providers of building certification standards and has become a benchmark fordescribing the influence a building has on theenvironment.
With the aim of achieving a BREEAM certificationof excellent, the Bulgari Hotel & Residences is thefirst building in the United Kingdom that deploys
ground-source heat pumps, which reduce CO2
emissions when heating and cooling. Time-saving
installation, quality, resource and cost efficiency
also were a focus to enhance mechanical andelectrical installation aspects.

Corporate social responsibility

Neil McGurk of Briggs & Forrester is responsible
for the project’s electrical installation. To help with
the installation he contacted Hilti expert Jon Gammidge, Central London Account Manager. Gammidge recommended Hilti’s new MM channel installation system, designed for light- and mediumduty loads, for the ventilation channels and cabletrays. The mobile MQ channel installation system
was used with heavy-duty pipe installation, andthe MM push-button system also enables simple,
time-saving installation. The intelligent design significantly reduces the required amount of steel aswell as the weight of channels without diminishing
durability. This is a unique solution feature. Compared to common systems, 9.96 tons of steel were
saved in the electrical installation alone. This is asignificant plus in the eyes of the BREEAM
evaluation.
Gammidge also calculated the CO2 footprint of the
Hilti system – the amount of CO2 produced by thechannels during their lifetime from gaining the raw
materials though production, transport, assemblyand eventual disposal. The Hilti Account Manager
calculated an impressive reduction in CO2 emissions of 29 tons, or 49 percent, compared to common solutions. Neil McGurk was sold: “Sustainability aspects are becoming increasingly important in construction projects. As contractors, it’scentral that we make an effective contribution to
our customers’ ecological targets if we are to remain competitive.”
The Bulgari Hotel & Residences is well on the way
to being awarded BREEAM’s excellent rating.
Thanks to its glamour, style and class, it also will
leave a sustainable impression with guests in more
ways than one.

Environment

ComplianceHonesty is thebest policy.
A sustainable fight against corruption is
only possible if all market forces work together and are committed to maintaining
compliance standards. The International
Business Leaders Forum is committed tothis goal and is supported in its efforts by
Hilti Russia.

Key phrases such as anticorruption, corporate
governance and business ethics are part of Vera
Cherepanova’s daily work. She is an Internal Audit
and Financial Investigation Manager with Hilti Russia. For the past year she also has spent about 50
percent of her time working on behalf of the International Business Leaders Forum (IBLF), a nonprofit organization that works together with leadinginternational corporations to promote sustainable
and ethical business practices around the world.
Cherepanova works in a five-person team of compliance experts, all of whom come from the fieldsof finance and academia. Under the leadership ofBrook Horowitz, the manager of IBLF in Russia,
they are defining anticorruption measures specificto the Russian market as part of the IBLF’s Improving Business Standards in Russia project. The
Russian economy has experienced a significant
uptick in recent years and investments in Russia
are increasingly popular. “In spite of this, problems
such as corruption, murky legal ground and a lackof transparent administrative structures remain unsolved,” says Cherepanova in describing the difficult market conditions that plague most Western
European companies.

56

The secondment of an employee by a member
company is unique in the history of the IBLF. “Byplacing Vera directly with the IBLF we are able tomove our program of promoting responsible business standards in Russia to a new level by making
workshops, information material and common action programs accessible to a new generation of
Russian managers,” says Brook Horowitz. Vera
Cherepanova’s professionalism and efforts in thefight against corruption are not going unnoticed. In
2011 the International Compliance Association
named her best compliance manager in the area ofanticorruption in Russia and the Commonwealth of
Independent States.
Anticorruption is a global topic. The United States
and United Kingdom have the strictest anticorruption laws in the world. The Hilti Group has based
its internal compliance rules on these standards.
They must be maintained without exception on aworldwide basis and extend far beyond the requirements of many national regulations.
Hilti is convinced that it is the responsibility of thepeople in the markets to help shape conditions
that will allow sustainable economic growth

Corporate responsibility

Team members

User health and safety

Compliance2011 Hilti Company Reportthrough their own business activities. This is particularly true for those markets that are not yet fully
developed. Hilti is therefore committed to putting
its own high compliance strategy standards into
the markets. “Hilti Russia’s cooperation with the
IBLF has sent a corresponding message to partners and other market players and also underscores the Hilti Group’s companywide compliancestrategy,” assures Cherepanova.
The project is clearly aimed at actively developing
business ethics in Russia. One of the things Vera
Cherepanova is responsible for is the organizationof roundtable discussions involving managers andcompliance and legal experts from both Russianand foreign companies. This forum is used to exchange best practices, to learn from one anotherand to jointly create approaches for combatting
corruption. “While they cannot define the framework, participants can outline their own businessconduct. By being jointly committed to the fightagainst corruption and showing integrity, reputablecompanies can successfully sensitize authorities
towards anticorruption topics,” explains
Cherepanova.

Corporate social responsibility

Future Russian generations and decision-makers
also will be trained to recognize the significance ofcompliance standards for the national economy.
Vera and her team see a significant potential for increasing knowledge and sustainably improving the
economic framework through the training of economists and lawyers. The team organizes workshops for students that are led by managers and
IBLF members and creates training documentation
for five Moscow universities. Thanks to the team’s
efforts, a course in business ethics will be offered
for the first time in Russia, at Moscow’s Mirbis
Business School, beginning in September 2012.
“We want to help create a generation that is sensitized toward combatting corruption,” emphasizes
Cherepanova.
In the future the more people who stand up to corruption in the market, the less compelling the incentive to deviate from compliance standards or to
engage in bribery or blackmail. Initiatives such as
those carried out by the IBLF and its members will
decisively contribute to eliminating corruption fromeveryday business activity.

Environment

ComplianceUN Global
Compact
GRI Indicators
Activities / Measures 2011
58

Human rights

Labor norms

Principle 1: Businesses should support and respect
the protection of internationally proclaimed humanrights within their sphere of influence; andPrinciple 2: make sure that they are not complicit inhuman rights abuses.

Principle 3: Businesses should uphold the freedom of
association and the effective recognition of the right tocollective bargaining, as well as
Principle 4: the elimination of all forms of forced andcompulsory labor;
Principle 5: the abolition of child labor; andPrinciple 6: the elimination of discrimination in respectof employment and occupation.

LA8: Education, training, counseling, prevention andrisk-control programs in place to assist workforce
members, their families or community members regarding serious diseases.
HR2: Percentage of significant suppliers and contractors that have undergone screening on human rights
and actions taken.

HR6: Operations identified as having significant risk forincidents of child labor, and measures taken to contribute to the elimination of child labor.
HR7: Operations identified as having significant risk forincidents of forced or compulsory labor, and measurestaken to contribute to the elimination of forced or compulsory labor.

• Hilti’s Mission Statement calls for responsible behavior toward team members, customers, partners andsuppliers as well as society and the environment.
This is consistently implemented throughout thecompany (pages 44 – 57 and 61).
• “Our Culture Journey” (OCJ): The company’s distinct
culture and the Hilti values continue to be strengthened and further implemented in corporate culture
workshops (pages 47, 60).
• “Hilti, a great place to work” is measured both internally and externally. Within the company it is gauged
by the Global Employee Opinion Survey, or GEOS,
which consistently generates high participation rates
and very positive results (page 60). These results
show that Hilti takes its team members seriously andinitiates the measures required for a positive working
environment. The Great Place to Work® Institute carries out external assessments. Hilti has taken part inthese surveys for three years, often attaining top results at the national level. In 2011, for example, Hilti
ranked 3rd in Liechtenstein/Switzerland and in Singapore; an outstanding 1st place in Australia; 4th in Portugal and 16th in Germany. Hilti laid the groundwork
for a Europe-wide ranking of 12th place while also finishing 15th in the category of the world’s best multinational workplaces, putting the company solidly
among the best employers globally (page 37).

• The health circle at Hilti Corporation headquarters in
Liechtenstein provides employees with informationon the topics of health and safety. Regular advisory
sessions are held regarding workstation ergonomics.
• A company physician, located at corporate headquarters in Liechtenstein, supports employees inmany health-related questions while also offering eye
tests, immunization advice and preventive medical
checkups.
• Employees are schooled annually on fundamental
safety regulations via an e-learning module.
• Fire prevention training was again carried out in 2011
for all employees at Hilti headquarters. Some 900
staff members have completed this training.
• The Hilti plant in Nersingen-Strass, Germany received the “Top Health Management Award 2011”
for its operational health management. The award
was given by TG LifeConcept in cooperation with theBavarian State Ministry for Labor and the Bavarian
Chamber of Industry and Commerce. The Hilti plant
offers regular training and activities on the topic ofhealth, improves work station ergonomics and carries
out an annual health day that features lectures andworkshops on nutrition, sport and stress prevention.
• The goal of “zero occupational accidents” has been
established in all plants worldwide. Additionally, allplants record and process standardized dangerous
situations (near accidents) on a daily basis.

Corporate responsibility

Team members

User health and safetyCorporate responsibility
2011 Hilti Company Report

Environmental protection

Combatting corruption

Principle 7: Businesses should support a precautionary approach to environmental challenges;
Principle 8: undertake initiatives to promote greater
environmental responsibility; andPrinciple 9: encourage the development and diffusionof environmentally friendly technologies.

Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

EN3: Direct energy consumption by primary energy
source.
EN5: Energy saved through environmentally friendly
use and increased efficiency.
EN7: Initiatives to reduce indirect energy use; savings
made.
EN8: Total water withdrawal separated by source.
EN16: Entire direct and indirect greenhouse gas
emissions by weight.
EN18: Initiatives to reduce greenhouse gas emissions; results achieved.
EN22: Total weight of waste by type and disposal
method.
EN26: Initiatives to mitigate environmental impacts ofproducts and services, and extent of impact mitigation.

SO4: Actions taken in response to incidentsof corruption.

• Hilti strongly focuses on reducing the influence its
products have on the environment. In 2009 the company began measuring this influence through Life
Cycle Assessments. All new Hilti tools are analyzed
according to the Product Carbon Footprint methodand Hilti has set a goal of reducing the ecologicalfootprint of the next generation of its products. Other
guidelines and instruments aiming to further reduce
CO2 emissions have been integrated into the productdevelopment process (pages 47 and 62).
• A new guideline for the company’s fleet of automobiles defines relevant environmental and safety standards. This includes regional consumption limits thatwill lead to significant savings in fuel consumption(20 percent) over the next six years. Plans also callfor replacing established automobile technologies(gasoline and diesel) with alternative technologies(electric automobiles), (pages 47 and 63).
• The topics of energy efficiency and waste and water
management, as well as occupational safety andhealth management, have been defined as central
HSE elements for Hilti plants. Clear targets and measures have been defined for all units. These will leadto a significant reduction in Hilti’s ecological footprint.
As a result, Hilti has decided to improve energy efficiency by 2 percent per year. Until 2015 this measure
will lead to an improvement of 10 percent (pages 47,
62 and 63).

• Monitoring and reinforcing the compliance network by
naming local compliance officers.
• Revising anticorruption guidelines (Hilti’s internal regulations on the offering, providing and receiving of donations and contributions, such as gifts and hospitality
services).
• Introduction of a new approval form and a new approval process for documenting, reporting and monitoring doubtful cases.
• Creating a new global Code of Conduct that includes
the most significant Hilti compliance regulations.
• Carrying out workshops for the Group-wide rollout of
the new anticorruption guidelines and the global Codeof Conduct through personal training sessions withmore than 70 local compliance officers.
• Testing all external compliance helplines, monitoring
the helpline system and changing the helpline provider
in more than 20 countries.

Corporate social responsibility

Environment

ComplianceCorporate culture.
The people at Hilti
Based on its highly developed corporate culture, Hilti offers employees
outstanding career opportunities in a worldwide group. In 2011, employees
invested 24,000 working days in corporate culture workshops.

2011

2010

2009

2008

24,00032,00018,00035,000

9.5

10.3

7.6

11.4

Fluctuation

14%

13%

15%

14%

Number of working days employees have used forcorporate culture workshops
Expenditure for corporate culture
workshops (in CHF million)
Integration success rate*

83%

83%

74%

79%

Open management positions filled with internal
candidates

81%

85%

85%

80%

Number of apprentices worldwide

366

360

341

320

+3%
21,848+3%
20,305–6.1%
19,709+5.5%
20,994

Employees (at December 31)* The integration success rate measures the number of employees
who joined Hilti during the past two years and are still employedat the company.

Employees exhibit a high level of identification and commitment
A survey of Hilti employees worldwide is carried out once a year. In
2011 the participation rate of this Global Employee Opinion Survey(GEOS) was 90%.
Favorable

Neutral5%

Unfavorable
1%

6%

2%

6%
12%

94%

92%

94%

are willing to do
the utmost for Hilti

60

Corporate responsibility

82%

92%

are proud to workfor Hilti

82%

would recommend Hilti
as a great place to work

Team members

User health and safetyCorporate responsibility
2011 Hilti Company Report

Suppliers.
Hilti suppliers sign a Code of Conduct
All potential Hilti suppliers must complete a comprehensive
audit before being considered an official partner of thecompany. A total of nine areas are monitored in detail. In
addition to topics such as technology, quality and efficiency, the Hilti Code of Conduct for Suppliers, which is basedon compliance standards, also plays a significant role.
Each new Hilti supplier must sign the Code of Conduct

which serves as an integral part of the contractual agreement. By signing suppliers are obligated to observe theprinciples contained in the Code of Conduct. It includes
clear rules for maintaining legal requirements and social
responsibility as well as the obligation to observe a zerotolerance policy regarding any type of corruption.

Suppliers of direct production materials and allied suppliers

2011

2010

Suppliers who have signed the Code of Conduct

100%

100%

Share of suppliers audited through the end of 2011
Existing suppliers*

97%*

79%*

New potential suppliers

100%

100%

8%

0%

Additional share of suppliers* subject to a Code of Conduct compliance audit
by an external, accredited partner in addition to undergoing the evaluation
audit.
Improvement potential was agreed upon with audited suppliers* as appropriate. The implementation of thisimprovement will be monitored.
Suppliers of indirect production materials
In 2010 Hilti expanded its Code of Conduct for Suppliers to include the procurement of indirect construction
materials. Suppliers of all material groups are therefore obligated to meet the stipulations in the Code of Conduct. Particular attention was paid to suppliers of the material groups of merchandizing, trade fairs, cleaning,catering, building safety, temporary work, transport and logistics. Hilti monitors the maintenance of the Codeof Conduct in the critical area of clothing production through neutral external auditors. The regular, contractual
application of the Code of Conduct is also a main task of the Chief Compliance Officer and of the Procurement
Indirect Materials Unit in 2012.

* These suppliers account for over 90% of the procurement volumeof direct production materials and related products.

Corporate social responsibility

Environment

ComplianceEnvironment-related key data.

CO2 emissions of Hilti Group

Comments(in t) CO 2 equivalents

2008

120,000

2009

2010

2011

87,20987,30496,807100,000
80,00060,00040,00020,00097,853Market organizations (top 13)

PlantsHilti Group CO2 emissions rose 10.9 percent in 2011 compared to the previous
year. The reason for the increase is a shift
in the energy mix at two Hilti plants inGermany. The new energy mix contains asignificant increase in energy derived
from fossil fuels, leading to the increase inCO2 emissions. Total energy consumption, however, declined over the same period due to the results of Hilti’s energy efficiency program.

CO2 emissions per employee (in t)
12

2008

2009

2010

2011

4.78

4.56

4.30

4.43

10
8
6
4
2

Despite the rise in total CO2 emissions byapproximately 10.9 percent, and the factthat the number of employees in the fieldusing an automobile again rose in 2011,
CO2 emissions per employee rose only
3 percent. The two main reasons for thispositive trend are energy efficiency projects implemented at Hilti plants and theestablishing of Hilti International Car Fleet
Guidelines, which call for regional consumption limits, among other measures.

Energy consumption in the Hilti
plants (in MWh)
120,000

2008

2009

2010

2011

78,46869,634

81,93978,477100,000
80,00060,00040,00020,000Electricity

62

Gas

Energy consumption at all Hilti plants fell
by approximately 4.2 percent in 2011 inspite of a significant rise in production
volume. This was achieved through theimplementation of Hilti’s energy efficiency
program, agreed to in 2010, that calls foran annual improvement in energy consumption of 2 percent.

Oil

Corporate responsibility

Team members

User health and safetyCorporate responsibility
2011 Hilti Company Report

Fuel consumption in the top 13
market organizations (in million liters)
2008

2009

2010

2011

19,07018,902

18,937

19,113

30
25
20
15
10
5
DieselGasoline

Comments

Although the number of sales employees
grew significantly in 2011, the consumption of diesel and gasoline rose only marginally in the Hilti Group’s 13 largest market organizations. This was achieved,
among other measures, by using lowconsumption vehicles. Some two-thirdsof all Hilti employees worldwide work insales, a fact that has a direct influence on
fuel consumption.

Water consumption (in m )3300,000

2008

2009

2010

2011

200,412

124,825

140,836

164,256

250,000
200,000

Water consumption is directly linked to
production volume. As production volumerose significantly in 2011 water consumption was correspondingly higher.

150,000
100,000
50,000Total waste production (in t)
12,000

2008

2009

2010

2011

5,910

6,672

6,844

10,000
8,000
6,000
4,000
2,000
6,638
Recycled

Hazardous

Residual

Corporate social responsibility

Waste production increased by approximately 2.6 percent in 2011. This slight increase is also linked to the increase inproduction volume. Hilti has planned
measures that will reduce the total waste
amount. In Plant 1, in Schaan, Liechtenstein, for example, waste amounts will be
substantially reduced by the recycling ofsegments containing cobalt and the reuseof industrial diamonds.

Environment

Compliance

64Key figures
2011 Hilti Company Report65Currency effects weakenstrong growth.
The Hilti Group generated sales growth of 14.6 percent
in local currencies in the 2011 business year. In spite ofthis strong operating performance the company’s operating result declined by 23 percent while net income
was down 32 percent; developments largely due tonegative currency influences.

The 2011 economic environment was primarily
dominated by positive development. The construction industry pertinent to the largest segmentof business proved very dynamic in Northern andCentral Europe as well as in Eastern Europe, Asiaand Latin America. The market environment inNorth America, however, declined as it did inSouthern Europe.
Broad-based organic growth
Against the backdrop of solid framework conditions, significant sales growth was achieved overa broad geographic area. Strong growth was recorded in the Eastern Europe / Middle East / Africa
Region with sales advancing 39 percent in local
currencies. This included an acquisition-related
impact on growth of 22 percent, caused by the integration of existing distribution partners. At Grouplevel the acquisition-related impact amounted to
1.8 percent.
Latin America continued the trend of strong
growth witnessed in recent years (+24%). Sales
grew 13 percent in North America although theprevalent economic environment remained difficult. The Asia/Pacific Region posted double-digit
growth (+12%). Europe, the region with the largest
share of sales, also had strong growth (+11%) although development in individual markets varied.
While double-digit growth was posted in North
and Central Europe, sales development was negative in the weaker economies of Southern Europe (Greece, Portugal, Spain, Italy).

66

The positive growth in local currencies was significantly reduced at Group level due to the ongoing,
massive appreciation of the Swiss franc. The influence was exceptionally large in the North America
and Eastern Europe / Middle East / Africa Regions
as the currencies of these regions suffered disproportionate devaluation against the Swiss franc.
Due to the great significance the euro zone holds
for Hilti the weakness of the euro also was strongly
felt. When translated into Swiss francs, sales
growth at Group level was correspondingly reduced by 12.9 percent to 1.7 percent.
Strong Swiss franc weighs down profit
In spite of a noteworthy rise in sales the 2011 annual results are characterized by a significant dropin the profit level. The operating result (EBIT) was
23 percent lower, declining from CHF 268 million to
CHF 207 million. The operating margin (EBIT margin) was reduced from 6.8 percent to 5.2 percent.
Great strides were made in terms of productivity
in both sales and production. Despite an increase
in research and development expenditures to
CHF 184 million (+7%) expenses at Hilti Corporate Headquarters were below their 2010 level.
The robust improvement in operational performance was nonetheless significantly overcompensated by two strongly negative factors: the strong
rise in material prices, primarily for steel and oiland mainly in the first half of 2011, and risingtransport costs. Due to existing price agreements

Key figures
2011 Hilti Company Reportthese factors were only transferred to the market
with a significant delay. Gross margins therefore
continued to be under pressure in 2011. The positive effect of compensating measures will largely
take hold in 2012.
The Swiss franc had a considerable impact on theoperating result. When adjusted for currencies theoperating result advanced 8.1 percent. But negative currency effects weakened the operating result by CHF 87 million. An additional negative currency effect of CHF 39 million in the financial result was generated by the valuation of monetarybalance sheet items. Currency influences in the
Hilti Group’s profit and loss statement total
CHF 126 million. Group net income therefore fell
from CHF 142 million to CHF 97 million (–32%).
Reducing the share of Swiss franc costs
The extent of the dramatic appreciation of the
Swiss franc during 2011 can be viewed as an exceptional development. We nonetheless continue
to expect further pressure on results due to boththe overvalued Swiss franc and anticipated exchange rate volatility.
Special importance is therefore given to the intensification of measures, initiated several years ago,
designed to improve the natural hedge. Ongoing
improvement efforts in purchasing and manufacturing have been redoubled and further shifts ofproduction volume to plants in Mexico, China andHungary, as well as into the euro zone, have been

implemented. Additionally, a program was introduced at Corporate Headquarters in Liechtensteinthat will reduce costs by CHF 50 million (approximately 10%), having a positive influence on results
within 18 months. In addition to implementing increased efficiency and cost-cutting measures,
there is also a central emphasis on shifting development and support activities to less wage-costintensive regions and on optimizing the cost shareof the Swiss franc.
Balance sheet and cash flow remain solid
Negative currency translation effects, resulting
from the balance sheet conversion of Group companies into Swiss francs, amounted to CHF 35 million. Hilti Group equity also was negatively impacted due to the increase in pension fund provisionsof CHF 92 million required to close a balance sheet
deficit for the pension fund, in accordance with
IFRS. The share of equity as a proportion of total
capital nonetheless remained at a very solid
51 percent (2010: 54%).
The positive trend of net working capital, seen in
the previous year, continued in 2011. Net working
capital, valued at constant exchange rates, rose by
9.7 percent due to the generated growth. This
growth rate, however, was significantly below the
14.6-percent level of sales growth in local currencies. Turnover rates further improved as a result.
The receivables from finance leasing rose by
CHF 67 million due to the growth in sales volume.
Cash flow from operating activities was reduced to67

CHF 242 million due to lower profitability and higher net working capital. Due to the comprehensive
renovation of production and logistics structures
made in recent years, investments in tangible fixed
assets could again be reduced, dropping from
CHF 135 million to CHF 124 million. In spite of thelower profitability, caused by currency effects, free
cash flow once again amounted to CHF 82 million(before finance leasing, acquisition and integration
effects).
The Board of Directors recommends a dividend
payment of CHF 47 million (2010: 71 million) for
the 2011 business year.
Cash and cash equivalent declined slightly from
CHF 1.134 billion to CHF 1.063 billion. Interest
bearing debts amounted to CHF 942 million at
the end of 2011, having risen by CHF 34 million.
Short-term bank liabilities were CHF 113 million(+15 million) while long-term bank liabilities were
CHF 81 million (+17 million). As of December 31,
2011, the Hilti Group maintained three bonds
placed on the Swiss capital market totaling
CHF 750 million. They have maturities in 2012(300 million), 2013 (150 million) and 2014(300 million).
The Hilti Group thereby has a stable and comfortable level of net liquidity of CHF 121 million. Combined with the high equity ratio of 51 percent this68

underscores the pronounced strength of theGroup’s financial basis, even in an environment
as difficult as 2011.
OutlookThe Hilti Group remains cautiously optimistic in
2012. Demand in most end markets is solid at the
beginning of the year. However, due to the problems in the euro zone we expect demand to levelout, particularly in Southern Europe, resulting in anegative influence on growth as a whole. Singledigit expansion is anticipated.
Assuming that there are no significant economic
upheavals, the measures introduced to cut costs
and to compensate the negative currency influ­
ences should allow for sizeable increases to boththe operating result and the operating margin in2012.

Key figures
2011 Hilti Company Report

Key figures.
Net sales (in CHF million)
6,000

2007

2008

Operating result (in CHF million)
2009

2010

2011

600

5,000

500

4,000

400

3,000

300

2,000

200

1,000

100
4,667

4,700

3,845

3,930

3,998

Cash flow fromoperating activities (in CHF million)
600

2007

2008

2009

2010

2011

600
500

400

400

300

300

200

200

100

100
437

487

376

242

Research and development
expenditure (in CHF million)
300

2007

2008

2009

2010

2011

24,00022,000200

20,000150

18,000100

16,00050

14,000
189

182

172

2009

2010

2011

533

450

172

268

207

2007

2008

2009

2010

2011

422

243

78

142

97

Employees (as at December 31)

250

177

2008

Net income (in CHF million)

500

453

2007

184

2007

2008

2009

2010

2011

19,90320,994

19,70920,305

21,848

Please note
The following pages contain extracts from the 2011 Financial Report of the Hilti Group. Because these pages do notcontain 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 2011. Complete information, including the notes
to the consolidated financial statements, is contained in the2011 Financial Report which will be available on theGroup’s website (www.hilti.com) from late March 2012.
The full 2011 consolidated financial statements, which areincluded in the 2011 Financial Report, have been preparedin accordance with international financial reporting standards (IFRS).

69

Consolidated balance sheet of Hilti Group as at December 31 (in CHF million)
ASSETS
2011

2010

Intangible assets

394.4

396.8

Property, plant and equipment

746.4

765.6

6.8

4.6

Investments in associates and joint ventures

12.1

10.9

Deferred income tax assets

130.4

96.1

Investment property

Other financial investments

16.6

12.5

Trade and other receivables

312.0

250.0

Derivative financial instruments

43.5

59.8

1,662.2

1,596.3

Inventories

615.9

559.8

Trade and other receivables

930.6

877.1

Current income taxes receivable

14.4

10.1

Accrued income and prepayments

47.6

47.8

Derivative financial instruments

8.2

27.7

Financial assets at fair value through profit or loss

26.4

40.2

1,062.5

1,134.4––

Total current assets

2,705.6

2,697.1

TOTAL ASSETS

4,367.8

4,293.4

Total non-current assets

Cash and cash equivalents
Assets classified as held for sale70

Key figures
2011 Hilti Company Report

EQUITY AND LIABILITIES2011
Non-controlling interest

2010

13.0

4.3

Equity attributable to equity holders of the parent

2,198.9

2,300.1

Total equity

2,211.9

2,304.4

Provisions

108.7

89.2

Pension and termination benefit obligations

303.2

226.5

Deferred income tax liabilities

29.8

24.7

Bonds

447.8

746.0

Long-term bank borrowings

81.2

63.8

Trade and other payables

24.7

19.8

Derivative financial instruments

1.4

1.7

Total non-current liabilities

996.8

1,171.7

Provisions

51.4

58.7

Trade and other payables

278.0

266.0

Current income taxes payable

98.4

102.7

Accrued liabilities and deferred income

304.8

290.4

Bonds

299.8

–

Short-term bank borrowings

112.7

97.9

Derivative financial instruments

14.0

1.6

Total current liabilities

1,159.1

817.3

Total liabilities

2,155.9

1,989.0

TOTAL EQUITY AND LIABILITIES

4,367.8

4,293.4

Equity comprises share capital (176,000 registered shareswith par value of CHF 500 each) and participation capital(774,400 participation certificates with par value of CHF 50
each) as well as reserves.

All of the registered shares and participation certificates are
owned by the Martin Hilti Family Trust.

71Consolidated income statement of Hilti Group (in CHF million)

Net sales

2011

2010

3,997.5

3,929.9

Other operating revenues

73.9

87.6

Total operating revenues

4,071.4

4,017.5

62.4

22.6

Material costs

Change in inventory(1,418.0)(1,260.4)

Personnel expenses(1,572.1)(1,594.5)(215.8)(213.0)Depreciation and amortization
Other operating expenses(720.7)(704.6)

Total operating expenses(3,864.2)(3,749.9)

207.2

267.6

2.4

0.6

Other revenues and expenses (net)(33.2)(43.9)

Finance costs(57.5)(57.2)Net income before income tax expense

118.9

167.1

Income tax expense(22.4)(25.3)Net income

96.5

141.8

Equity holders of the parent

94.1

142.8

Non-controlling interest

2.4

(1.0)

Operating result
Share of profit / (loss) of equity-accounted associates and joint ventures

Attributable to:

The notes to the consolidated financial statements, that immediately follow the consolidated cash
flow statement, are an integral part of, and should be read in conjunction with, the consolidatedbalance sheet, the consolidated income statement, the consolidated statement of com­prehensive
income and the consolidated cash flow statement.

72

Key figures
2011 Hilti Company Report

Consolidated statement of comprehensive income of Hilti Group (in CHF million)
2011

2010

Net income per income statement

96.5

141.8

Gains/(losses) on cash flow hedges taken to equity

(2.1)

8.7

(Gains) / losses on cash flow hedges transferred from equity to
income statement

(9.3)

(2.0)

Actuarial gains / (losses) on defined benefit plans(91.8)(70.3)

Foreign currency translation differences(34.5)(180.0)

Deferred tax on items taken directly to or transferred from equity

13.9

9.2

Other comprehensive income(123.8)(234.4)

Total comprehensive income(27.3)(92.6)(30.2)(91.3)

2.9(1.3)

Attributable to:Equity holders of the parent
Non-controlling interest

73

Consolidated cash flow statement of Hilti Group (in CHF million)
2011

2010

Net income

96.5

141.8

Adjustment for depreciation and amortization

215.8

213.0

Adjustments for non-operating transactions

127.3

136.6

Cash flow from operating activities before interest, tax andworking capital changes

439.6

491.4

(Increase) / decrease in inventories(62.4)(28.5)(Increase) / decrease in trade receivables(54.9)(41.9)

Increase / (decrease) in trade payables

20.7

7.0

(Increase) / decrease other net operating assets

(3.8)

48.0

Cash flow from operating activities before interest and tax

339.2

476.0

7.1

6.1

Interest paid

(57.5)(57.2)

Income tax paid

(47.3)(49.3)Cash flow from operating activities

241.5

375.6

Capital expenditure on intangible assets(87.9)(85.1)

Capital expenditure on property, plant and equipment

Interest received(123.7)(134.6)

Acquisition of subsidiaries(7.2)(149.7)(Increase) / decrease in financial investments

9.1

(3.6)

–

0.4

Disposal of intangible assets

7.9

3.3

(Increase) / decrease in finance lease receivables

Disposal of property, plant and equipment(67.4)(19.3)Cash flow from investing activities(269.2)(388.6)

Increase in long-term bank borrowings

26.7

29.4

(Decrease) in long-term bank borrowings(10.1)(30.3)

Increase / (decrease) in long term loans

3.2–

Increase / (decrease) in short-term bank borrowings

18.8

23.8

–

–

Increase / (decrease) in liability to shareholder

(0.4)

0.2

Dividend paid

(71.0)–Cash flow from financing activities(32.8)

23.1

Effects of exchange rate changes on cash and cash equivalents(11.4)(42.5)

Total increase / (decrease) in cash and cash equivalents(71.9)(32.4)Cash and cash equivalents at January 1

1,134.4

1,166.8

Cash and cash equivalents at December 31

1,062.5

1,134.4

Increase in bonds

74

Key figures
2011 Hilti Company Report

Key figures of Hilti Group
2011

2010

2009

2008

2007

Results (CHF million / %)
3,998

3,930

3,845

4,700

4,667

Depreciation and amortization

Net sales

216

213

200

185

181

Operating result

207

268

172

450

533

Net income before tax

119

167

136

308

496

Net income

97

142

78

243

422

Return on assets (RoA) in % (Net income + Finance costs)

3.6

4.6

3.2

7.1

12.8

Return on equity (RoE) in % (Net income)

4.3

6.0

3.2

9.9

18.2

Cash flow from operating activities

242

376

487

437

453

2,212

2,304

2,396

2,429

2,483

Balance sheet (CHF million / %)Total equity
Total equity in % Total equity and liabilities

51

54

55

58

64

Non-current liabilities

997

1,172

1,135

829

436

1,159

817

795

946

942

212

209

283

290

246

1,141

1,162

1,101

1,024

952

521

434

414

386

339

Current liabilities
Capital expenditures on Intangible assets and on Property,
plant and equipment
Intangible assets and Property, plant and equipment
Other non-current assets
Current assets

2,706

2,697

2,811

2,795

2,570

Total assets

4,368

4,293

4,326

4,204

3,861

Dividend*

47

71

–

96

117

21,84820,305

19,70920,994

19,903

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

2011 sales growth year on year*

Europe2011

2010

ChangeChangein CHF million

in CHF million

in CHF (%)

in local currencies (%)

2,240

2,229

0.5

11

North America

712

740

-4

13

Latin America

118

110

7

24

Asia / Pacific

488

485

0.5

12

Eastern Europe / Middle East / Africa

440

366

20

39

3,998

3,930

2

15

Hilti Group* The segmentation of the regions corresponds with the changed internal organization. The previous year’s figures were restatedaccordingly.

75

The Hilti trades.

76

Building construction
The innovative tools and accessories we supply to the construction industry are as varied as theapplications in this field. Hilti
supplies a range of products formeasuring, drilling, chiseling,
cutting, grinding or fastening aswell as special solutions for applications such as rebar connections or formwork in construction, renovation and demolition.
Being matched system components, these products offer outstanding performance, reliability
and high efficiency. Health andsafety always have priority, andour well-proven dust removal, vibration reduction and active
torque control systems provide
highly effective protection for theuser.

Civil engineering
One of Hilti’s aims in civil engineering is to provide the ability tocarry out demolition or heavychiseling work quickly and safely.
Our powerful and durable tools
provide high reliability in this field.
Many of our products, including
time-saving fastening solutions,are also approved for use in sensitive environments such as in theatomic power industry. Criticalfastenings designed to take uphigh loads or post-installed rebar
connections can be installed withexceptional reliability thanks tofield-leading technological developments and the experienced
advice offered by Hilti engineers
at the planning stage or on theconstruction site.

Steel and metal
Steel and metal construction
specialists expect peak performance – and achieve it with oursystem solutions. With our
know-how and aids such as anchor design software we also
support planners and contractors in this business. Whether
leveling, aligning and anchoring
steel structures, fastening profile metal roofing sheets and façade panels or installing railings
or canopy roofs, we are theone-stop shop for all requirements. We supply direct fastening systems, high-speed screw
fastening systems and versatileanchor solutions backed by abroad range of advanced, safety-tested and ergonomically designed tools – all in renowned
Hilti quality.

Hilti DX 460 MX powder-actuatedfastening tool with X-FS form stop

Hilti POS 18 total station

Hilti ST 1800-A22

Trades2011 Hilti Company Report

Overview.

This is Hilti.

We supply the construction industry with

Key figures (in CHF million)
2011

2010

Change

3,998

3,930

+68

Operating result

207

268

–61

Cash flow from operating activities

242

376

–134

Net sales

97

142

–45

21,84820,305+1,543

Net income
Employees (as at December 31)

technologically superior products, systems
and services. We provide innovative solutions that feature outstanding added value.
We passionately create enthusiastic customers and build a better future with approximately 22,000 team members located in
more than 120 countries around the world.

Net sales (in CHF million)
6,000

2007

2008

2009

2010

2011

5,000

We live clear values. Integrity, the courage toembrace change, teamwork and commitment are the foundations of our corporate

4,000

culture.

3,000
2,000
1,000
4,667

4,700

3,845

3,930

3,998

We combine long-term financial success withcomprehensive responsibility toward society
and the environment. Reciprocal tenets ofopenness, honesty and tolerance apply to

600

2008

2009

Plumbing, heating
and air conditioning
The ability to work quickly andefficiently while achieving highquality, regardless of the application or the materials on
which the installation work is
carried out, is an essential
everyday requirement for specialists in this field. The Hilti
product range offers a multitude of efficient solutions formeasuring and laying out fastening points, drilling anchor
holes, making penetrations inwalls and ceilings, and fastening pipes and ducts of all
kinds to walls, floors and ceilings. We also supply a comprehensive range of firestop
products designed to seal off
pipes and openings in theevent of fire.

Electrical
Hilti direct fastening systems
make electrical installation
work exceptionally efficient –and virtually dustless. The
comprehensive range of electrical fasteners supplied by
Hilti covers a broad spectrum
of applications in this trade,while highly effective dust removal systems for power tools
make slitting, cutting, drillingand chiseling on mineral materials of all kinds quicker, easierand more reliable. Hilti cordless tools for drilling, screwdriving and cutting set thestandard where maximum mobility is required in conjunction
with high performance andlong battery life.

Concrete sawing
and coring
Reliable equipment anddependable services are ofgreat importance to service
contractors. Hilti is renowned
not only for innovative equipment and accessories, butalso for on-time delivery andquick repairs. Our unique Hilti
Fleet Management systemguarantees availability of
replacement tools at all times,
comprehensive services at calculable costs as well as rental
equipment to cover periods ofpeak demand. Hilti also manufactures wall saw blades andcore bits to customer specifications for special applications. Training for users inoperating new equipment plus
expert advice from Hilti engineers are just some of theadditional services we offer.

MiningA combination of outstanding technology, competenton-site analysis of requirements and reliable services
make Hilti the preferred partner for the mining industry.
Our TE MD20 electric rock
drilling system not only provides high performance, italso significantly reduces
health hazards caused bynoise and vibrations. Hilti’s
OneStep self-drilling rockanchor system makes walland roof bolting quicker
while cutting operating andservicing costs. The comprehensive Hilti portfolio of
products and accessories
makes the installation of infrastructure above and below ground more efficientthan ever before.

Solar
The ability to install any
type of solar panel with only
six system components ensures high cost-efficiency
and great flexibility. The Hilti
panel mounting system
consists of preassembled,
corrosion-resistant parts
and thus ensures easy installation and long life. Hilti
know-how in structural design and foundation work
combined with a broad
range of innovative products ensure the required
versatility for groundmounted solar parks as wellas roof installations. Our experts with many years ofexperience provide support
in planning, specificationand project management.

EnergyOne of our prime goals in
the energy industry is toprovide innovative solutions that boost productivity, increase reliability andminimize health and safety
risks. Hilti certainly has agreat deal to offer in thisfield. Our well-proven direct fastening methods
and flexible modular pipe
installation systems, for instance, can make timeconsuming and costly
welding or tedious installation work unnecessary inmany cases. Offering
competent, on-the-spot
support with the planningand execution of complex
energy projects of all magnitudes, our specialists areat your service throughout
the world.

Hilti GX 120 gas-actuatedfastening tool

Hilti TE 6-A36 cordless rotary
hammer with the TE DRS-6-A
dust removal system

Hilti CP 653 speed sleeveHilti DST 10-E wall saw system

Hilti TE MD20 drilling system

Hilti MSP-AL photovoltaic
panel mounting system

Hilti DX 351 BT powder-actuated fastening tool with X-BT
threaded studteam members, partners and suppliers alike.

Operating result (in CHF million)
2007

Interior finishing
Our goal is higher productivity
and greater reliability for contractors in every field of interior
finishing including drywall andceiling installation, tiling andfloor renovation and door andwindow installation. Laser tools
for measuring and aligning, acomprehensive range of drilling
tools and anchors, and direct
fastening and screw fastening
systems for repetitive use ensure top productivity and cost
efficiency. Concrete surface finishing, keeping dust to a minimum, plus the use of special
foams for insulation, filling, fastening and soundproofing, areother areas in which our knowhow is in great demand. Hilti’s
product portfolio for interior finishers is rounded off by a comprehensive range of firestop
products.

2010

2011

500

Our corporate goal is to generate sustainable profitable growth.

400
300
200
100
533

450

172

268

207

Trades2011 Hilti Company Report

Overview.

This is Hilti.

We supply the construction industry with

Key figures (in CHF million)
2011

2010

Change

3,998

3,930

+68

Operating result

207

268

–61

Cash flow from operating activities

242

376

–134

Net sales

97

142

–45

21,84820,305+1,543

Net income
Employees (as at December 31)

technologically superior products, systems
and services. We provide innovative solutions that feature outstanding added value.
We passionately create enthusiastic customers and build a better future with approximately 22,000 team members located in
more than 120 countries around the world.

Net sales (in CHF million)
6,000

2007

2008

2009

2010

2011

5,000

We live clear values. Integrity, the courage toembrace change, teamwork and commitment are the foundations of our corporate

4,000

culture.

3,000
2,000
1,000
4,667

4,700

3,845

3,930

3,998

We combine long-term financial success withcomprehensive responsibility toward society
and the environment. Reciprocal tenets ofopenness, honesty and tolerance apply to

600

2008

2009

Plumbing, heating
and air conditioning
The ability to work quickly andefficiently while achieving highquality, regardless of the application or the materials on
which the installation work is
carried out, is an essential
everyday requirement for specialists in this field. The Hilti
product range offers a multitude of efficient solutions formeasuring and laying out fastening points, drilling anchor
holes, making penetrations inwalls and ceilings, and fastening pipes and ducts of all
kinds to walls, floors and ceilings. We also supply a comprehensive range of firestop
products designed to seal off
pipes and openings in theevent of fire.

Electrical
Hilti direct fastening systems
make electrical installation
work exceptionally efficient –and virtually dustless. The
comprehensive range of electrical fasteners supplied by
Hilti covers a broad spectrum
of applications in this trade,while highly effective dust removal systems for power tools
make slitting, cutting, drillingand chiseling on mineral materials of all kinds quicker, easierand more reliable. Hilti cordless tools for drilling, screwdriving and cutting set thestandard where maximum mobility is required in conjunction
with high performance andlong battery life.

Concrete sawing
and coring
Reliable equipment anddependable services are ofgreat importance to service
contractors. Hilti is renowned
not only for innovative equipment and accessories, butalso for on-time delivery andquick repairs. Our unique Hilti
Fleet Management systemguarantees availability of
replacement tools at all times,
comprehensive services at calculable costs as well as rental
equipment to cover periods ofpeak demand. Hilti also manufactures wall saw blades andcore bits to customer specifications for special applications. Training for users inoperating new equipment plus
expert advice from Hilti engineers are just some of theadditional services we offer.

MiningA combination of outstanding technology, competenton-site analysis of requirements and reliable services
make Hilti the preferred partner for the mining industry.
Our TE MD20 electric rock
drilling system not only provides high performance, italso significantly reduces
health hazards caused bynoise and vibrations. Hilti’s
OneStep self-drilling rockanchor system makes walland roof bolting quicker
while cutting operating andservicing costs. The comprehensive Hilti portfolio of
products and accessories
makes the installation of infrastructure above and below ground more efficientthan ever before.

Solar
The ability to install any
type of solar panel with only
six system components ensures high cost-efficiency
and great flexibility. The Hilti
panel mounting system
consists of preassembled,
corrosion-resistant parts
and thus ensures easy installation and long life. Hilti
know-how in structural design and foundation work
combined with a broad
range of innovative products ensure the required
versatility for groundmounted solar parks as wellas roof installations. Our experts with many years ofexperience provide support
in planning, specificationand project management.

EnergyOne of our prime goals in
the energy industry is toprovide innovative solutions that boost productivity, increase reliability andminimize health and safety
risks. Hilti certainly has agreat deal to offer in thisfield. Our well-proven direct fastening methods
and flexible modular pipe
installation systems, for instance, can make timeconsuming and costly
welding or tedious installation work unnecessary inmany cases. Offering
competent, on-the-spot
support with the planningand execution of complex
energy projects of all magnitudes, our specialists areat your service throughout
the world.

Hilti GX 120 gas-actuatedfastening tool

Hilti TE 6-A36 cordless rotary
hammer with the TE DRS-6-A
dust removal system

Hilti CP 653 speed sleeveHilti DST 10-E wall saw system

Hilti TE MD20 drilling system

Hilti MSP-AL photovoltaic
panel mounting system

Hilti DX 351 BT powder-actuated fastening tool with X-BT
threaded studteam members, partners and suppliers alike.

Operating result (in CHF million)
2007

Interior finishing
Our goal is higher productivity
and greater reliability for contractors in every field of interior
finishing including drywall andceiling installation, tiling andfloor renovation and door andwindow installation. Laser tools
for measuring and aligning, acomprehensive range of drilling
tools and anchors, and direct
fastening and screw fastening
systems for repetitive use ensure top productivity and cost
efficiency. Concrete surface finishing, keeping dust to a minimum, plus the use of special
foams for insulation, filling, fastening and soundproofing, areother areas in which our knowhow is in great demand. Hilti’s
product portfolio for interior finishers is rounded off by a comprehensive range of firestop
products.

2010

2011

500

Our corporate goal is to generate sustainable profitable growth.

400
300
200
100
533

450

172

268

207

2011 Company Report

Hilti. Outperform. Outlast.
www.hilti.com

Hilti Corporation2011 Company Report

We help our customers to be
successful. We identify theirneeds and provide them with
innovative solutions featuring
outstanding added value.

We passionately create
enthusiastic customers andbuild a better future.

2011 Company Report

Hilti. Outperform. Outlast.
www.hilti.com

Hilti Corporation2011 Company Report

We help our customers to be
successful. We identify theirneeds and provide them with
innovative solutions featuring
outstanding added value.

We passionately create
enthusiastic customers andbuild a better future.