Buhlergroup 2015 annual report en by Bühler Management AG

ANNUAL REPORT 2015

SUSTAINABLE PERFORMANCE

Global Presence

NORTH AMERICA 7 Sales offices 3 Manufacturing sites 6 Service stations 750 Employees

SOUTH AMERICA 6 Sales offices 2 Manufacturing sites 12 Service stations 400 Employees

Sales offices: 86 Manufacturing sites: 27 Service stations: 90 Employees: ~â&#x20AC;&#x2030;10,800

EUROPE 35 Sales offices 10 Manufacturing sites 27 Service stations 5,100 Employees

MIDDLE EAST & AFRICA 12 Sales offices 2 Manufacturing sites 15 Service stations 500 Employees

ASIA 21 Sales offices 9 Manufacturing sites 19 Service stations 3,500 Employees

SOUTH ASIA 5 Sales offices 1 Manufacturing sites 11 Service stations 550 Employees

Key Figures

Turnover (in CHF bn)

2.3

Order intake (in CHF bn)

2.3

2.4

EBIT (in CHF m)

Net profit (in CHF m)

177

2.6

2.5

139

22.0

145

143 123

6.0

2013 2014 2015

Return on Net Operating Assets (RONOA) (in %)

2013 2014 2015

18.1

17.6

121

7.3

6.2

2013 2014 2015

EBIT margin in %

Turnover

6 2

5 3

by business area 1 Grain Logistics 2 Sortex & Rice 3 Grain Milling 4 Value Nutrition 5 Consumer Foods 6 Die Casting 7 Grinding & Dispersion 8 Leybold Optics

Equity ratio (in %)

44.6

R & D costs (in CHF m)

45.2

45.6

109

7 % 9 % 31 % 21 % 12 % 12 % 3 % 5 %

by regions 1 North America 2 South America 3 Europe 4 Middle East & Africa 5 South Asia 6 Asia

2015

2014

9 % 9 % 29 % 21 % 11 % 12 % 3 % 6 %

Number of production sites reporting ecological footprint 17 99

2015

2014

15 % 9 % 31 % 15 % 5 % 25 %

15 % 8 % 28 % 16 % 7 % 26 %

Energy consumption per hour of activity (in GJ / h) 0.1029 0.0997 0.0915

102

Number of work-related injuries (per 100 FTE)

3.4 2.9

2013 2014 2015

2014

2015

Striving for Leadership Engineering our customers’ success and securing a sustainable future for ourselves requires a strong position. We strive for market leadership in every business we are active in. In 2015, we fostered our number one position in the Die Casting business, reporting a record result. This was only possible thanks to a unique product and service portfolio, leading technologies and outstanding quality. We offer our customers maximum productivity resulting in a best return on investment. The same is true for our rice processing business, in which we gained market leadership in 2015 for the first time.

Investing in Best People We at Bühler believe that the success of our company relies on the performance of our people. Therefore, we continuously invest in the education and training of our global workforce. We want to empower our employees to acquire the right strategic and operational skills and act with cool heads, warm hearts and strong hands.

Editorial Bühler Annual Report 2015 1

Committed to Sustainability Every day, billions of people come into contact with Bühler technologies to cover their basic needs for foods and mobility. With our industrial process technologies and solutions, we contribute significantly to feeding the world’s population, setting the focus on food security and safety. The global production and processing of wheat, maize, rice, pasta, chocolate, and breakfast cereals relies strongly on us. Furthermore, Bühler is a leading solution provider of die casting and surface coating technologies, with an emphasis on automotive and optics. As a leading technology group, Bühler invests every year up to 5 % of its turnover in Research & Development. In 2015, its around 10,800 employees in over 140 countries generated a turnover of CHF 2.4 billion. The family-owned company Bühler is proud of its Swiss roots and feels particularly committed to sustainability.

Highlights 2015 Bühler Annual Report 2015 2

Highlights 2015

January

February

March

Large rice mill for Bangladesh

Success for innovative atta flour processing technology

Opening of African Milling School in Kenya

Bühler receives a contract with a double-digit million figure from the food corporation City Group from Bangladesh and builds one of the most modern, high-performance and largest rice mills in the world. City Group will produce

In India atta flour, produced from v arious wheat mixtures, is the most important food staple along with rice. The processing of wheat into atta flour was previously carried out almost exclusively in commercial plants on traditional stone mills,

The last few years have seen an enormous increase in the need for basic foods in Africa due to the growth of its population. In addition, a change in eating habits has led to a continually rising demand for cereal products.

72 tonnes of rice, 12.5 tonnes of atta flour as well as 8.5 tonnes of red lentils per hour with the plant. The contract is a flagship example of Bühler’s beneficial strategy of offering solutions to customers for the entire value chain.

so-called Chakki mills. These stone mills have a low grinding capacity and incur high maintenance costs. Furthermore, the stone mills no longer meet the hygiene standards required these days in food production. Bühler developed an industrial process for producing hygienic and high-quality atta flour, which achieves the typical taste characteristics. The center of the new atta process is the high compression roller mill, PesaMill. Thanks to its compact construction, one PesaMill replaces up to 20 traditional Chakki mills, consumes up to 10 % less energy and has a higher yield. At the beginning of 2015, demand developed extremely positively. At the same time, several CombiMills, based on the PesaMill, were sold in Bangladesh, the Middle East and North Africa.

This growing demand is coming up against a dramatic shortage of specialist workers. Bühler has taken up the challenge and has opened the first-ever training mill in Africa in the Kenyan capital Nairobi. 27 students from nine different African countries began their two-year milling course to become millers. For Bühler, the opening of the milling school in Africa continues a long tradition of education and training, both for its own employees and for its customers, since only those who work with trained millers will be able to fully exploit the potential of their machines and raw materials.

Highlights 2015 Bühler Annual Report 2015 3

April

May

June

Taking the lead in rice processing

Trade fair appearance with new energy saving pasta dryer

Innovation: Absolute scrap rate reduced by 2.5 %

Bühler’s close partnership with the leading Thai company Merry Rice successfully delivered a USD 40 million contract to design, install and commission a comprehensive, fully automated rice processing solution handling the intake

Bühler presented itself as a global solution partner to the food industry at this year’s Ipack-Ima in Milan, the trade fair for processing and packaging technology. This year’s booth focused on application-specific solutions and innovative

At the 13th International Foundry Trade Fair (GIFA) Bühler Die Casting highlighted its role as the global solution provider for aluminum high-pressure die casting by presenting several innovations. Data View, for instance, is a new control con-

of raw material, pre-cleaning, storage, milling and packing. The agreement, featuring the supply of 62 premium SORTEX S U ltraVision optical sorters and 52 high-capacity UltraPoly polishers, added a further 10,000 tonnes per day capacity to their operation, transforming Merry Rice into the largest rice re-processing plant in the world. Bühler has experienced significant growth in the core rice regions, which has helped consolidate it as the overall number 1 supplier of rice plants in the world and an integral partner of the global rice processing industry.

process technologies as well as high energy efficiency and food safety. The new Antares Plus roller mill made its world debut at the exhibition. With integrated measurement of and control over particle size distribution, this new roller mill delivers a constant optimal grinding effect while simultaneously reducing energy consumption. Such a high level of automation has never been seen before in grain processing. The Ecothermatik long-cut pasta dryer, which Bühler introduced for the first time in Milan with a processing capacity of up to 5,500 kilograms per hour, impresses with its high energy efficiency and better environmental balance. Thanks to in-process heat recovery, Ecothermatik dryers require 40 % less thermal energy. Smart engineering also allows cooling and electrical energy savings of 20 % and 10 % respectively.

cept for Bühler’s two-platen die casting machine Carat. This sophisticated concept allows for easy, fast and intuitive operation of the machine, resulting in 25 % faster programming. Another highlight is the Ecoline Pro with integrated peripherals: For the first time, peripherals such as ladler, extractor and sprayer have been fully integrated in the cell. Another novelty is SmartVac: This new vacuum system is integrated in the die casting machine. This unprecedented level of integration allows for much tighter process control, resulting in higher productivity, quality and flexibility as well as a reduction of the absolute scrap rate by 2.5 %.

Highlights 2015 Bühler Annual Report 2015 4

July

August

September

Anniversary: 100 years of vocational training at Bühler

Caffè Chicco d’Oro acquires a taste for Bühler

Feeding pilgrims

Exactly 100 years ago, Bühler decided to rely on sound vocational training as the basis for its future business success. Today, the company still continuously and farsightedly takes account of on going changes within the organization,

Bühler has won a significant order from Caffè Chicco d’Oro for a complete coffee roasting and grinding line. The integrated Bühler processing solution covers the entire processing chain, starting with the green beans to the end product of

After a construction phase of four years, one of the largest mills to be constructed in one stage had its grand opening in Mecca. In the future, the flour from this mill will feed the pilgrims who come to Mecca every year. As prime contractor,

the economy, education, and society at large. In 2015 the company celebrated its anniversary with several novelties. Among those the advancement of the distance-teaching concept called ClassUnlimited, which was launched in 2012 by Bühler and the Vocational School and School of Further Education BZWU Wil-Uzwil. A unique form of decentralized learning has emerged that combines the benefits of classic teaching with the possibilities of the digital media and helps impart the required international mobility to the apprenticeship. A total of 22 apprentices are working 2 to 6 months in either China, the United States, South Africa, or the United Kingdom.

roast and ground coffee. The heart and soul of the coffee processing line is the roasting stage with the InfinityRoast. This roasting equipment converts the intrinsic potential of green beans into the ultimate flavor sensation of superbly roasted coffee. The new InfinityRoast features the broadest process flexibility and superior profile control. This will allow Caffè Chicco d’Oro to develop entirely new blends and flavor characteristics for new consumer segments.

Bühler was entirely responsible for the plant, which cost CHF 90 million. It is located on a site of almost 1 million square meters and has a d aily capacity of 1,200 tonnes. The plant stands out due to its productivity and uptime as well as by producing the highest quality of flour. This is one of 15 mills that Bühler has already built for the Saudi Arabian customer SAGO (former GSFMO).

Highlights 2015 Bühler Annual Report 2015 5

October

November

December

Confectionary processes from a single source

Collaborative innovation

Power your life!

Cocoa is the basis for numerous food products that make life sweet. One of them is chocolate. Bühler has become the leader in processing technology for transforming cocoa beans into finished products such as chocolate, pralines and

Four projects made it to the final in the Innovation Challenge 2014, a yearly Bühler in-house innovation competition, and received the go ahead to implement their idea. In November they presented the progress they had made. Fuelled by

Electric vehicles play a key role in the reduction of CO2 emissions and im provement of air quality. The battery is a critical criterion for a vehicle’s success. Range, speed, weight and costs: Energy storage plays a role in everything.

others. Now, with the acquisition of the German enrobing specialist Hosokawa Bepex, it has also added equipment to its portfolio for making enrobed products such as bars, cookies, and caramels. The acquired company possesses leading know-how in the areas of mass preparation, molding, extrusion, as well as enrobing and tempering. Together with Hosokawa Bepex, Bühler now offers its customers total plant solutions for making chocolate countlines, enrobed articles, and cereal bars. In the field of confectionary processes, Bühler customers can now benefit from all possible processing options.

different project acceleration models, the teams succeeded in implementing new business models, with two pro jects already serving customers in 2015. ChocoBotic was selected as the winning project: Major companies become chocolatiers while small enterprises get the chance to industrialize their production, with their compact, highly flexible moulding plant for the manufacturing of filled chocolate. And the next Innovation Challenge has already started looking for IoT-enabled services. Always under the motto: Creating tomorrow together.

Lithium-ion batteries offer a high degree of security and quality and are therefore ideal for use in electric vehicles. Bühler has developed a new, continuous production process for the electrode paste, which is now in use in a first pilot installation for the Chinese customer Lishen. The new process is significantly more cost-effective, as it requires less space, energy and manpower. Furthermore, it produces an improved quality.

Contents Bühler Annual Report 2015 7

Contents

Chairman / CEO Statement

Group Report

I Our Business

Our Core: Engineering customer success

Grains & Food: Safe and healthy food

Advanced Materials: Efficient mobility

Business Areas

II Best People

Employee Portraits: Making a difference

III Governance

Group Structure

Board of Directors

Executive Board

Advisory Board of Urs Bühler Innovation Fund

Collaboration Principles

Compliance

Remuneration Report

IV Sustainability

Sustainability Report

GRI G4 Content Index

Sustainability at Work

V Financial Report

104

Financial Commentary

106

Business Development

108

Financial Report

112

Chairman / CEO Statement Bühler Annual Report 2015 8

Chairman / CEO Statement Bühler Annual Report 2015 9

Important Progress Dear employees, customers and business partners, 2015 has put us through its paces! As the year started full of optimism and with strong growth signals, the abandonment of the Swiss franc-Euro cap in mid-January was the precursor of unexpected challenges. In addition, the global business environment heavily challenged our development: for instance, the Ebola epidemic, political conflicts, falling commodity prices and market slumps such as in South America. 2015 put the sustainability of our company to the test. We have passed this endurance test! Moreover, we have demonstrated sustainable and positive per formance with a turnover growth of 3.4 %, a significant improvement in our profitability with an EBIT margin of 7.3 % and RONOA of 22.0 %. Adjusted for currency effects, sales would have risen by 7.1 %. We can be proud of these achievements, which give our company the necessary financial solidity to continue important investments to secure our future. The essential cornerstones of our orientation have proven successful: Our leading solutions in process technology ensures that our customers receive the best return on investment. Our dense presence across the globe allows us to develop region-specific solutions in close coordination with our customers and to offer high quality and local services. With our open approach to innovation and partnerships we are able to develop new markets together with them. With this orientation, we have seen great success in 2015 and were able to more than offset the fluctuations of currencies and markets. Our forward-looking financial hedges as well as the short-term measures taken to counteract the strong Swiss franc, have also proven successful – including the working hour flexibility of our Swiss employees, who experienced much solidarity from our global workforce. Being able to respond so quickly and consistently as a company laid the foundation for the remarkable result of 2015. I owe our employees my sincerest thanks. For the current fiscal year, ongoing challenges can be anticipated. The geopolitical fires remain active. Important areas of the global economy – especially China – are undergoing change. In this situation marked by uncertainty one thing is certain: We will make every effort in 2016 to continue our sustainable corporate development, aiming to grow above the market average and to achieve sustainable profitability within our target range.

Calvin Grieder Chairman of the Board and Chief Executive Officer

Group Report B端hler Annual Report 2015 10

Group Report

Sustainable Performance Despite a challenging economic environment, in 2015 B端hler achieved a sustainable positive result, entering the new fiscal year with a solid base.

Group Report Bühler Annual Report 2015 11

Group Report

In 2015, Bühler achieved sustainable positive results, with growth in turnover and substantial improvement in profitability – despite a challenging economic environment. On the Group level, turnover was up by 3.4 % to CHF 2.4 billion. Order intake for the Group was down − 4.3 % to CHF 2.5 billion, while the order backlog at the reference date, at CHF 1.5 billion, remained at a high level. Profitability (EBIT) rose from CHF 145 million to CHF 177 million (+ 22.4 %), corresponding to an EBIT margin of 7.3 % (previous year: 6.2 %). Net profit for the Group achieved a plus of 18.0 % to CHF 143 million (previous year: CHF 121 million). RONOA rose from 18.1 % to 22.0 %. The financial position of the company remained strong: With an equity ratio of 45.6 % (previous year 45.2 %), at the changeof-year reference the company is free of bank obligations and has net liquidity available of CHF 392 million. Plenty of challenges This sustainable performance is to be assessed against a background of a considerable number of challenges during the fiscal year: Market recessions, such as in South America, overcapacities in China, epidemics such as Ebola, and political conflicts. In this context, the company had cancellations of orders that did not find continuous financing on the customer side of around 4 % of total turnover. Sharp drops in raw material prices, such as rice and grain, also put a brake on investments.

With currency adjustments Bühler would have grown by 7.1 %.

One major event was the decision by the Swiss National Bank on January 15 to suspend the exchange rate tie between the Franc and Euro. The devaluation of the Euro, by some 10 %, had a sharp impact on the Bühler cost base, and therefore also on competitiveness. Adjusted for currency effects, Group turnover was up by 7.1 %, and order intake remained almost stable.

Turnover (in CHF bn)

2.3

Order intake (in CHF bn)

2.3

2.4

2.6

EBIT (in CHF m)

Net profit (in CHF m)

177 2.5

139

22.0

145

143 123

6.0

2013 2014 2015

Return on Net Operating Assets (RONOA) (in %)

2013 2014 2015

6.2

18.1

121

7.3

2013 2014 2015 EBIT margin in %

17.6

2013 2014 2015

Group Report Bühler Annual Report 2015 12

With regard to profitability, the financial securing of current Advanced Materials achieves record result orders and projects proved to be key to sustaining income Both Bühler businesses, Grains & Food and Advanced strength. With an extensive package of actions, which was Materials, showed positive development in 2015. Advanced worked out and set in motion over a matter of weeks togeth- Materials proved particularly strong, achieving a record result er with the staff representatives, the company reacted to the in every respect. With a clear focus on core markets such new situation, starting with measures to boost productivity and as the automobile industry and the sectors of lightweight consecure orders through to raising weekly working hours at the struction and energy efficiency, turnover was up by 6.7 % to Swiss locations. In addition to this, the restructuring undertak- CHF 491 million. The Business Area Die Casting provided imen at the locations in Madrid and Braunschweig, which were pressive proof of its position as world market leader during started in 2014, had a positive effect on corporate profits. This the fiscal year, winning major orders such as that from the resulted in reported corporate profit not only being sustained, Chinese manufacturer Wencan. Bühler is the customer’s techbut actually increased. nology partner in this context, aiming to secure the market for high-quality structural components made of aluminum. The Business Area Leybold Optics completed its turnaround and expanded with a whole range of orders for optical coating systems, scoring success after success in this market. Together with the Chinese battery producer Lishen, Grinding & Dispersion took into operation a new process for the manufacture of battery slurries, the most important components of these energy storage devices, and so created the preconditions for conquering a new and highly promising field of application. As market leader, Grains & Food succeeded in raising turnover by 4.1 % to CHF 1.9 billion, in part developing its market position even further. After currency adjustment, Grains & Food grew twice as much. The Business Area Grain Logistics was particularly striking, with a plus of 23.8 %, not least thanks to new products for grain conveying. The year was marked by an impressive string of high points: In the vicinity of Mecca, Saudi

Turnover

6 2

5 3 4

by business area 1 Grain Logistics 2 Sortex & Rice 3 Grain Milling 4 Value Nutrition 5 Consumer Foods 6 Die Casting 7 Grinding & Dispersion 8 Leybold Optics

2015

2014

7 % 9 % 31 % 21 % 12 % 12 % 3 % 5 %

9 % 9 % 29 % 21 % 11 % 12 % 3 % 6 %

by regions 1 North America 2 South America 3 Europe 4 Middle East & Africa 5 South Asia 6 Asia

2015

2014

15 % 9 % 31 % 15 % 5 % 25 %

15 % 8 % 28 % 16 % 7 % 26 %

Group Report Bühler Annual Report 2015 13

Arabian customer SAGO (former GSFMO) opened, together with Bühler, one of the world’s largest milling plants to supply pilgrims, and placed another order in the double-digit million bracket. Marine Harvest – Norwegian world market leaders in farm-raised salmon – commissioned a Bühler system for the production of sustained soya-based fish feed. With regard to rice processing, it proved possible for the first time to achieve world market leadership: Some 30 % of the global rice harvest is now refined on systems from Bühler. One contribution to this was a major order from Merry Rice to install one of the highest performing rice processing systems in the world. To satisfy the uninterrupted strong growth in demand for sorting solutions for plastics, the Business Area Sortex & Rice and the US company National Recovery Technologies (NRT) have entered into a strategic agreement. This means that both companies can jointly offer total solutions for the sorting of bottles and flakes. In the coffee market, the Business Area Consumer Foods made a breakthrough with a new roasting system, winning an order for a complete installation from the Swiss premium customer Caffè Chicco d’Oro. To achieve further growth in the chocolate sector, at the end of the year Bühler acquired Hosokawa Bepex. The German company, previously Japanese-owned, specializes in industrial solutions for the production of chocolate-coated and filled confectionary. While 60 % of chocolate mass worldwide is produced on Bühler machines, this market segment, with vigorous growth, was not yet part of the company portfolio.

The company reacted to the new situation, starting with measures to boost productivity and secure orders through to raising weekly working hours at the Swiss locations.

Regional supply

5 3 Number of regional service stations

Production hours by regions 1 North America 2 South America 3 Europe 4 Middle East & Africa 5 Asia

2015

7 % 5 % 36 % 5 % 47 %

80 68

2013

2014

2015

Group Report Bühler Annual Report 2015 14

Growth in North America Customer service The broad regional setting was again an important factor for Business development in the Customer Service sector was success in 2015 for Bühler, with a number of shifts in focus. not entirely satisfactory, which remained essentially stable in Expectations for the markets in South America were not ful- relation to the previous year and achieved CHF 541 million, filled, in particular in Brazil. The recession following a failed corresponding to a turnover proportion of 22.4 % (previous economic policy had an impact on the markets of interest to year: 23.5 %). After currency adjustments, service business Bühler as well. In particular, financing for investment goods is at grew by 3.1 %. While North America, China, and Central Eurpresent hard to come by. Turnover in Europe was also slightly asia showed a strong increase, South America and Europe down, in particular due to the market slump in Eastern Europe. showed reduced volumes. In order to make further growth possible, Bühler opened 10 new service stations, which raises Once again, Asia has proved the powerhouse for the company, the global presence to 90. even if China has temporarily slipped in its role as the driving force, and turnover here for the first time showed only single-digit Bühler has also developed new service business models, growth. The reason for this lies in overcapacities in the industri- which go beyond traditional business with spare parts and al milling sector, which are now leading to a temporary market maintenance orders, and concentrate on allowing customers consolidation. The Middle East & Africa have gained ground, to achieve even higher efficiency and quality through advanced where major projects for milling and the further expansion of the maintenance and online access. service business have been at the focus of development. Four new service stations have been put into operation, as well as the Solid manufacturing new milling training facility in Nairobi, the African Milling School, Bühler has streamlined its manufacturing and adjusted its caopened. And business development in the regions of South pacities in Europe and China. Besides the shift of all production East Asia and North America has also developed very satis- from Spain to Germany, the strong Swiss Franc also enhanced factorily, where Bühler has been focusing with excellent timing a further shift of our manufacturing in Switzerland to our manu on niche markets of speciality milling or brewing. facturing hub in Žamberk (Czech Republic). We made the necessary investments in Žamberk to build up a most modern Overall, the regional split for Bühler in 2015 therefore looks production site. In China we brought our capacities in line with as follows: Europe comes to a turnover proportion of 28 %, the lower volumes. Bühler is strongly committed to work on Asia 26 %, Middle East & Africa 16 %, North America 15 %, an in-house professional value chain in order to secure high South America 8 % and South Asia 7 %. functionality, perfect quality and fast delivery of its equipment and services.

Breakthrough in sustainability 2015 saw a fundamental improvement in the implementation of our sustainability program: Our goals have been completely revised and aligned with the guidelines of the Fourth Generation of the Global Reporting Initiative (GRI G4), the leading international standard. We measure the progress we are making with regard to our ecological, social, and economic sustainability promises on the basis of clearly defined and quantifiable indicators. For the year under review, all Bühler production sites have submitted their reports according to GRI G4. This for the first time ever allows Group-wide verification of the success of our sustainability efforts. Operationally we improved the environmental performance of our global sites.

But a large share of the burden on the environment is created by the energy consumed by our equipment at customers’ locations. By systematically developing new technologies and products with our customers’ specific situation in mind, and by setting a standard for resource-efficient products, we contribute to creating sustainable value chains. Here are a few examples:

Our die casting, dispersion, and surface coating technologies contribute to more sustainable mobility and improve the energy efficiency of buildings. One of the main goals of our Research & Development activities is to improve food safety. The focus of this effort is on sanitary plant and equipment design. Our combination of optical, mechanical, and air-based sorting approaches produces outstanding results.

Technologies that are gentle on resources have enabled Bühler to become Our technologies for gentle processthe market leader in commercial-scale ing and highly selective sorting (Sortex rice processing. Our process solutions technology) of rice and grain help prevent have maximized the rice yield at a con- food wastage. Our energy-efficient PAK sistently high quality level while cutting machine for high-rate coating of food energy usage by as much as 20 %. packaging (Bühler Leybold Optics) also improves the shelf life of foods.

Group Report Bühler Annual Report 2015 15

High investments in Research & Development The foundation for sustained business development for Bühler rests on cutting-edge technical process solutions. Bühler puts the guiding motto “Engineering Customer Success” into practice; the company stands apart in all its sectors as a driving force for innovation (see infobox on page 16 and sustainability report from page 82). This is why in 2015 Bühler again invested substantial sums amounting to CHF 102 million in Research & Development (previous year: CHF 99 million), and overall launched more than 45 new products and services (Grains & Food: 30, Advanced Materials: 15). Just how much investments influence commercial success can be seen, for example, by a new process for producing atta flour, which is particularly popular in India. About a year ago Bühler introduced an industrial solution to the market here for the first time, which in 2015 sold more than 10 times.

This example in particular shows just how much innovation and sustainability go hand in hand at Bühler, and create a symbiotic effect. On the one hand, such innovations strengthen economic sustainability, which enables Bühler to break into new application fields, and, on the other, such technology promotes ecological sustainability, with less waste and better general conditions for electromobility.

Breakthrough in sustainability reporting The sustainability report from Bühler is in alignment with the guidelines of the “Global Reporting Initiative” (GRI), today’s internationally leading standard. The structure and content of this report in 2015 for the first time accorded with the GRI fourth-generation provisions (GRI G4). This step to GRI G4 called for an in-depth analysis of the economic, ecological, and social sustainability aims of relevance to Bühler and its stakeholders, which are in line with Bühler’s long-term corporate Bühler achieved an important milestone in China with the man- strategy. We measure our progress on the basis of 37 speufacturing of electrode slurries, the most important component cific and measurable performance indicators and targets. For of lithium-ion batteries. Given the anticipated demand for elec- the reporting year 2015, all Bühler production locations are tric vehicles, capacities are being increased worldwide, on a reporting in accordance with GRI G4. For the first time, this grand scale. For three years, the Business Area Grinding & allows for a Group-wide overview of success with regard to Dispersion has been working closely with the battery manu- our sustainability aims (see sustainability report from page 82). facturer Lishen to establish a new process: Instead of mixing the slurries batch by batch from the raw materials in mixing containers, they are now dispersed continuously in an extruder. Experiments at the Bühler battery laboratory in Wuxi show that the new process produces much less waste and can create higher quality of the end product. The experiments are now sufficiently advanced that Bühler has commissioned a pilot plant at the Lishen factory in Tianjin.

What characterizes all our innovations class outside Switzerland successfully is the fact that improved environmental completed its vocational training course performance is associated with reduced – at Bühler Minneapolis. costs and increased productivity at customers’ sites. We firmly believe that with- But here, too, the same rule applies as out economic sustainability, no real eco- everywhere else: Bühler’s commitment logical sustainability is possible. to vocational training also has sound business reasons, for the investment in But neither would be possible without future specialist and management staff motivated and carefully trained employ- will eventually produce a sustainable ees. Social sustainability therefore must payoff. always cover training and continuing education of our workforce at all levels. Bühler can look back as only very few companies can on a longtime track record as a trainer – to be exact: 100 years of experience in vocational training. Since 1915, Bühler has trained over 7,500 specialists in Switzerland, and more than 1,000 former apprentices are now employed in the organization. In 2015, a

Group Report Bühler Annual Report 2015 16

Employees A highlight in 2015 was the celebration of the 100 years of Bühler vocational training, drawing continuous interest from business and politics in Switzerland and abroad. Since the start of the vocational training, over 7,500 apprentices have completed their studies and 1,000 continue to work in the company today. In 2015, Bühler counted 600 apprentices worldwide. Of the 86 who finished their training in Switzerland in 2015, 66 continued their career at Bühler. Over the years Bühler managed to keep this rate at an average of around 70 %. Overall, the company counts around 10,800 employees (previous year: 10,600). This increase is mainly due to the acquisition of Hosokawa Bepex and growth in South East Asia. The positive annual result was only possible due to the professionalism, passion and flexibility of Bühler’s employees (see portraits from page 30). The company owes all employees Dipak Mane has been a member of the personnel represen- a large vote of thanks. tation organization for years, and has accordingly been appointed as a member of the extended Executive Board. Dipak Outlook Mane completed his studies in Chemical Engineering at the In 2015 Bühler has again proved that the company can Indian Institute of Technology, as well as advanced training at achieve a sustained positive performance even under difficult the University of Mumbai and at IMD in Lausanne. In 1992 he conditions. Regardless of the fluctuations presently taking joined Bühler as an engineer in the rice milling sector, being place, Bühler is well-positioned with its sectors of business on responsible from 2010 for the region of South Asia, a position global growth markets – the processing of basic foods and adhe has now left. vanced materials. In this context, the Bühler business model is based on an intrinsic sustainability, such as reducing food loss, ensuring food safety, and cutting CO2 emissions. The currently active megatrends, such as world population growth, increasing urbanization, and rising environmental awareness, are all

Sustainability was also the motive for two important personnel decisions which Bühler announced in the course of the business year. It was made known well in advance that, as of July 1, 2016, Stefan Scheiber will be taking over as successor to Calvin Grieder as Bühler CEO. Calvin Grieder, who has been in office for 15 years, will then be concentrating on his position as President of the Board of Directors. Stefan Scheiber undertook business studies at the College for Applied Sciences of St. Gallen, advanced training at the IMD in Lausanne and has been with Bühler since 1988. In his 25-year career with Bühler he has managed a range of different sales and production organizations in Kenya, South Africa, and Germany, having lived and worked abroad for a total of 15 years. In 2009 he took over the Food Processing division, and in 2014 the entire Grains & Food business at Bühler.

Adding value through open innovation In 2015 again, Bühler invested 4 % of its turnover in Research & Development. In this, Bühler relies on an open innovation management approach to efficiently tap and network the knowledge of employees, universities, customers, suppliers, and other partners. In order to take maximum advantage of this modern approach, Research & Development are placed within the domain of the Executive Board. At the same time, a high-ranking Innovation Advisory Board ensures that key technologies such as 3D printing or the Internet of Things will develop their immense potential throughout the organization.

teams were nominated as winners. In in March, Bühler entered a partnership 2015, they all worked intensely on putting with MassChallenge, an international their business ideas to practice, coached startup accelerator. Its purpose is to by an expert sponsor from the Execu- promote entrepreneurship in industries tive Board. The four ideas – a compact in Switzerland that are relevant to Bühler. chocolate moulding machine, a new In April, Bühler Uzwil also hosted the animal feed mixing process, an online “9th European PhD Workshop on Food spare parts platform, and a food safety Engineering and Technology”. At this acvalidation service – will likely be launched ademic conference, doctoral candidates in 2016. from leading universities presented the results of their research projects, for inCollaboration with universities and aca- stance in the field of food technology. demic partners is another high priority. For instance, last year Bühler intensified In 2015, Bühler once again launched its cooperation with the Swiss Feder- trend-setting product innovations. One al Institute of Technology in Lausanne particular highlight was the Antares Plus (EPFL). Since March 2015, the company roller mill of Bühler Grain Milling. Its inteBühler regularly promotes the develop- has operated an innovation satellite at grated system for online measurement ment of entrepreneurial ideas, for exam- the base of the EPFL in order to identify and automatic control of the particle size ple by organizing innovation contests. promising research projects and to im- distribution enables it to produce an opIn the Innovation Challenge 2014, four prove the exchange of knowledge. Also timal grinding result. In the price-sensi-

Group Report Bühler Annual Report 2015 17

in support of the excellent strategic placement of the Group. Launching from leading process technologies and solutions, Bühler sees high growth potential in neighboring markets, such as bakery & ingredients, feed, and the battery market. This is how Bühler will continue to ensure in the future that its successful development as a globally active independent Swiss family company can carry on for a very long time to come. For 2016 the company is expecting an ongoing challenging global economic and political environment. Nevertheless, Bühler aims to continue its growth above the market average in a corridor of 4 – 5 % and to achieve a profitability in the range of 8 – 10 %. To achieve this aim, the Group will continue to optimize its operational excellence and costs base, investing in leading technologies and process solutions, as well as expanding and e xtending its regional presence still further.

tive grain milling industry, this development allows a more consistent product quality and higher yield to be obtained while at the same time reducing energy consumption. It is thus yet another testament to the technology leadership of Bühler in the field of grain processing. Bühler Consumer Foods, on the other hand, launched the SmartChoc and RoastMaster solutions for producing compound chocolate and for roasting coffee. They are addressed primarily to small processors in emerging markets in Asia. Among other innovations, Bühler Sortex & Rice rolled out high-resolution InGaAs cameras for its sorting systems. Thanks to the doubling of their resolution, they are capable of detecting and separating even smaller foreign particles than before. In addition, the new Bio Vision sorting process selectively addresses

Bühler continues to invest substantially in Research & Development and launched more than 45 new products and services in 2015.

the needs of almond and nut processors process control, it among other things by allowing efficient removal of the shells. prevents contamination of the cast comBühler Value Nutrition optimized its ex- ponents by gases. This reduces the retrusion technology for aquafeed produc- ject rates and increases manufacturers’ tion. Since it also allows vegetable raw productivity. Finally, a highlight at Bühler materials to be processed into feed pel- Leybold Optics was the breakthrough lets, it increases the sustainability of fish with new applications for its well estabbreeding operations. lished Helios family of production lines for coating optical components. Bühler Grinding & Dispersion entered the battery market with its new continuous process for manufacturing electrode slurries – a key component of lithium-ion accumulators. The process, which is based on extrusion technology, slashes the reject rate and cuts the capital investment cost. Another trend-setter was the launch of SmartVac by Bühler Die Casting, a vacuum system that is seamlessly integrated in die casting machines. Thanks to the resulting improvement of

I Our Business Our Core: Engineering customer success GrainsÂ &Â Food: Safe and healthy food Advanced Materials: Efficient mobility Business Areas

Our Business Bühler Annual Report 2015 20

Our Core Engineering customer success Today, Bühler is a globally active solutions provider for the industrial manufacturing of food and advanced materials. The aim is to play a role in the success of our customers by providing sustainable process solutions and leading technologies. Our expectation is that our customers achieve the best ROI with our solutions. That is why Bühler’s range extends far beyond machines and installations. The worldwide solutions portfolio contains engineering, application development, manufacturing, services and training. No other provider covers the whole value chain like Bühler. The customers benefit from a higher level of efficiency, productivity and quality – and the opportunity to tap into new markets.

In the past year, Bühler has invested in the expansion of its solutions expertise and service capacities and now offers an extensive portfolio. Analysis. Bühler has highly qualified experts to analyze fundamental process sequences. What exactly happens to a grain kernel when it goes through the roller mill? How does a substance change morphologically as it passes through the Cenomic agitated bead mill in the Business Area Grinding & Dispersion? Does it really comminute, or are the e xisting individual components simply pulled apart? Bühler has the essential equipment to gain the necessary knowledge together with its customers, and to develop products and services accordingly. Product development. Bühler opens its application centers for customers, in order to develop and test new machine concepts, formulas, and end products together. In China, for

Bühler positions itself as an industrial solutions provider to engineer customer success. This means, offering our customers the best return on investment; services along the entire lifecycle of our equipment to improve operations; and technology support in the development of solutions in order to strengthen customers’ differentiation.

Machine and equipment

Process

End product

Sustainable processing solutions

Customer

Engineer customer success

Bühler

Return on investment

Lifecycle services

Solutions development

Intelligence based on big data analytics

Our Business Bühler Annual Report 2015 21

Professional installation increases productivity.

instance, Bühler is supporting local chocolate manufacturers with a particular laboratory. Here, more than 30 local experts are joining in to help develop confectionery typical of the country and the necessary production installations for this. In the new food laboratory in the state of Minnesota, USA, customers can try out new foods and, by doing so, carry out attempts at a complete processing line. Process expertise. In order to ensure the highest possible standards in food safety, Bühler has developed corresponding concepts and is consulting customers in their practical implementation. The Business Area Leybold Optics offers the necessary process expertise in addition to their vacuum coating machines, in order to manufacture heat insulating architectural glasses or optical filters. Together with the users, these formulas are then tailored to the specific application. Engineering. Bühler has a comprehensive portfolio of machines and components, in order to illustrate the entire value chain, for instance in grain or chocolate processing. From this, Bühler engineers develop a plant solution for mills, animal feed manufacturing or chocolate production, which are optimized for the needs of the individual customers.

Manufacturing and installation. We are committed to strong local manufacturing centers and installation experts to offer our customers fast logistics. Furthermore, with our good in-house capabilities along the value chain, we are able to guarantee excellent functionalities and quality. Maintenance. In the past years Bühler has developed a complete range of services for maintenance and servicing for the machines and plants. This ensures optimal operation and less downtime. Meanwhile, Bühler has a global network of 90 service stations, which ensure close customer care. Education and training. The numerous training courses on offer are exceptional, in order to qualify customers as well as Bühler’s own employees, so that they can make the most of the opportunities the high-tech aggregate has to offer. Entire business areas have developed relevant ranges for their customers.

Our Business Bühler Annual Report 2015 22

Grains & Food Safe and healthy food Technologies from Bühler business Grains & Food substantially contribute to supplying a growing global population with staple foods such as corn (maize), rice, or wheat – and it is also a leader in pasta and chocolate production.

Thanks to its worldwide service capacities and application centers, in which local solutions are produced, Bühler is highly appreciated as a partner of the food industry. Now the Group is advancing with aquafeed production solutions and pulses processing plants into new growth markets. The Bühler business Grains & Food is outstandingly positioned in the food industry. For example, 65 % of all wheat is milled using grinding technology that is supplied by Bühler. Bühler also makes an essential contribution to corn (maize) and rice processing. With its rice mills and sorting systems, the company covers some 30 % of all global rice production. And in the grain processing industry, volumes are stupendous: About 2,500 million tonnes of corn (maize), rice, and wheat are harvested and processed every year. For 4 billion people, wheat is the most important staple food. Another 3 billion live primarily on rice.

gardless of whether wheat, corn (maize), rye, spelt, or oats is involved, Bühler can offer a suitable processing solution for any application. Its offerings comprise everything from standalone machines to integrated total production lines. They cover a large portion of the value chain – from reception, drying, cleaning, and storage of the harvested crops to grinding of the raw materials and packaging of the finished flours or semolina.

Another example of the technological leadership of Bühler is optical sorting. This essentially means separating the acceptable product from the substandard product and foreign matter. Using special-purpose cameras such as semiconductor-based InGaAs cameras, such systems are capable of identifying even minute differences in color that are not visible to the human eye. One of the most frequent fields of application of this technology is rice sorting. Other applications include, for example, processing of grain, nuts, or coffee. Some 25,000 sorting systems have to date been installed at customers’ sites Bühler is a global player not only in the field of such basic around the world. Bühler is also a leader when it comes to foods. Its market share in other applications is also impres- extrusion and drying processes. Extrusion processes are apsive: 35 % of all breakfast cereals and 40 % of all industrially plied, among other things, to make pasta as well as breakfast produced pasta are made on Bühler plants and equipment. cereals, snack foods, or animal feed pellets. Last but not least, Bühler processing lines produce 60 % of all chocolate goods. Global service and training c apacities Cutting-edge process technology alone, however, is worthless. Bühler is the technology leader True added value is only generated when it is supplemented The successful market position of Bühler with its rich tradition with competent services, sound training and education ofis attributable to a number of factors. On the one hand, Bühler ferings. With its global network of 90 service stations in all possesses proven technology platforms that it has steadily continents, Bühler is in a position to maintain customer prorefined over the decades. In grain processing, for instance, the duction systems with high efficiency and to ensure maximum company’s grinding technology ensures gentle processing of productivity. Just as important is training and engineering, for the raw materials while also boasting high energy efficiency only qualified staff can get the most out of these high-tech and a consistently high yield of top-quality end product. Re- production plants. The most recent example of the global

Our Business Bühler Annual Report 2015 23

Fish farm of Marine Harvest: Production of sustained soya-based fish food.

training initiative of Bühler is the African Milling School: In this specialized grain milling school in Kenya, which opened in the spring of 2015, African grain millers receive sound training based on high Swiss quality standards. Bühler has therefore long been much more than a mere machine-builder. The company evolved a long time ago into a global solution provider of “low-moisture food and feed” with its training, consulting, and engineering services and its analy tical laboratories and application centers. This is supplemented with unique know-how in the area of food and feed safety: Bühler supports its customers in complying with today’s stringent food safety regulations and in meeting the ever more rigorous food quality needs of consumers – for example by efficient separation of foreign matter from packaged food products. Furthermore, new plants and equipment are systematically developed on the basis of the “Hygienic Design” principle. It enables the zones in contact with the product to be easily and efficiently cleaned during operation and contamination by foreign matter or to prevent micro-organisms. Global solutions for growing food quality requirements As the market leader, Bühler is prepared to coach players in the food industry in coping with future challenges. And indeed, the industry faces a number of tests: On the one hand, the global population is growing relentlessly. In July 2015, as many as 7.3 billion humans populated the planet. By 2050, this number is projected to rise to almost 9 billion. All these people need high-quality and safe basic foods, and Bühler is determined to make a significant contribution to this end also in the future. Moreover, as many as half of all people today live in c ities, and this urbanization stands to continue. Especially in the emerging countries of Asia, a new middle

Our Business Bühler Annual Report 2015 24

Antares Plus: Optimal quality and efficiency by integrated online measurement and automatic control.

class is arising. This trend is increasing the demand for high- Another agricultural segment showing sharp growth is aquaer-quality processed foods, and convenience is also becom- culture: Because fish assimilate feed much more efficiently ing more important. than land animals, they are becoming increasingly significant as protein suppliers. Bühler is addressing this growth market The Bühler business Grains & Food stands to benefit from with innovative production solutions for making feed pellets. these developments in the next few years. For example, de- This enables salmon feed with specific sinking properties to spite the progress of globalization, a clear trend exists to- be manufactured. Another benefit is that flexible control of the ward using local raw materials and products. Today, Bühler Bühler extrusion process allows also vegetable raw materioperates four main application centers in Switzerland, India, als such as corn (maize) or soya to be efficiently processed. the United States, and China. In these innovation laboratories, Because it requires less fishmeal and fish oil, this technology Bühler specialists team up with customers to develop pro- helps increase the sustainability of aquaculture. cessing solutions and products matched to local raw materials and tastes. This has produced, among other things, solutions for making Indian atta flour based on whole-grain flour or Mexican tortilla flour. These centers also develop systems that are specifically tailored to needs existing in individual markets – for instance production solutions that are particularly fit for processing small batches of chocolate or coffee roasters for small businesses aiming to enter the coffee production market. Pulses and aquaculture are growth markets One of the biggest future challenges facing us is how to supply the growing global population with proteins. Great hopes are being placed, among other products, in pulses such as beans or lentils: Beside being healthy, they are also fully adequate meat substitutes thanks to their high protein content. Bühler has specifically developed a hulling mill for pulses which allows various raw commodities to be processed in an efficient, hygienic, and energy-saving manner.

Our Business Bühler Annual Report 2015 25

Advanced Materials Efficient mobility Lower carbon emissions, fiercer competition, new technologies: The global a utomotive industry f aces numerous challenges. For Bühler, these trends mean new business opportunities. Even today, the company with its market share of about 25 % of all aluminum die casting is a relevant equipment provider to the car-making industry. Now Bühler Group is entering the electromobility market with battery manufacturing technologies.

Regulations on CO2 fleet emissions To meet the CO 2 objectives of the Kyoto Protocol, current regulations from China, Japan, the USA and the EU have to be tightened by a factor 10 or more.

200

Aluminum engine blocks and structural components, headlight and tail light reflectors, electrode materials for lithium-ion batteries, paints and protective lacquers, shaded windows, chrome-plated interior parts and cameras for driver-assistance systems: The Advanced Materials business of Bühler is a relevant equipment provider to the world’s automotive industry, offering innovative technologies with an optimized carbon footprint for ensuring safe and comfortable mobility.

150

100

40 10 2015

2025

2050

100 = Current regulations are around 100 g CO2 per km by 2025 10 = Necessary to comply with the Kyoto Protocol (less than 2°C warming)

The automobile industry is a growth market The increase in populations and prosperity in emerging countries is boosting demand for cars. In 2015, some 88 million units light vehicles were manufactured across the globe. By 2021, annual output is expected to rise to as many as 113 million units. This translates into an annual increase of 4 %, with China, South East Asia, and India accounting for most of this growth. It is especially in these markets that a rising number of people are now making the dream of owning their own cars come true. In 2009, China displaced the United States as the world’s largest automotive market. But the sharp growth of the automobile industry is also associated with challenges. For example, transport accounts for 13 % of all greenhouse gas emissions and 75 % is attributable to road traffic. As car production increases, so does the need for efficient and clean mobility. Lightweight designs reduce carbon emissions The key to cutting fuel consumption – and therefore also carbon emissions – is lightweight car design. Engine blocks, structural components such as shock towers or cross-members, as well as oil pans or transmission housing components are increasingly being made of light alloys such as aluminum instead of steel or cast iron. A modern-day car on average

Our Business Bühler Annual Report 2015 26

incorporates 150 kilograms of aluminum. By the year 2025, this figure is expected to rise to 250 kilograms. This trend benefits the Business Area Die Casting of Bühler as a leading global provider of die casting technology for the automotive industry. 25 % of all engine blocks are manufactured on Bühler die casting machines. One of the keys to this success is the complete portfolio of solutions, ranging from low to high locking force machines. In addition, the geographical presence of Bühler extends across Europe, the United States, and China, making Bühler the sole provider with production capacities in all three major markets of the global car-making industry. Lithium-ion batteries for e lectric vehicles Another long-term mobility trend is electric vehicles: The International Energy Agency (IEA) estimates that of the 120 million new cars sold in 2030, every other one will be powered by an electric motor. Hybrid or electric vehicles require a battery as an internal energy storage device. The next few years are therefore expected to see a massive expansion of global production capacities for lithium-ion batteries. This is a growth market in which the Business Area Grinding & Dispersion of Bühler operates:

Increased productivity thanks to Bühler technology.

Our Business Bühler Annual Report 2015 27

The technologies of Leybold Optics are the first choice for the architectural glass industry.

On the basis of the proven extrusion process technology, it Headlight reflectors and advanced driver a ssistance has developed a solution for producing electrode slurries. systems (ADAS) enhance safety Their quality has a direct impact on the performance of the In present-day cars, safety and comfort requirements are also storage cells. This allows battery-makers to boost their pro- on the rise. The high-vacuum thin-film coating technology of ductivity and become more efficient in a competitive market. the Business Area Leybold Optics, for instance, is used in the Moreover, this continuous manufacturing process is charac- architectural glass industry as well as for metalizing headlight terized by its low capital investment cost. plastic components. 50 % of all passenger cars worldwide are equipped with headlight and tail light reflectors that have been Protective coatings increase the lifecycle of cars coated with Bühler equipment. These systems are also used The wet-grinding and dispersion capabilities of Bühler are for chromium-plating plastic styling components such as trim also in high demand in the automobile industry in other areas strips, indicating instruments, door handles, or radiator grilles beside battery production. Thus, the Business Area Grinding to give them a high-quality appearance. Another trend-setting & Dispersion also offers solutions for producing high-grade application is the coating of head-up displays, which project vehicle coatings – ranging from primers and top coats to func- information on routes directly onto the windshield. Today’s cars tional coatings for protecting cars against corrosion or impacts are also increasingly equipped with advanced driver assistance from stones. Other applications include “glass ink” (paint with systems (ADAS), which make it easier to park them, to drive integrated UV protection properties for the frame area of wind- at nighttime or to enable future self-driving. Bühler possesses shields), “screen ink” (pigments for producing colored plas- vast experience in the field of high-precision optics, providtics for use in various interior components), or “color filters” ing solutions for coating the infrared cameras of night-vision (for pixel coloration of LCD displays such as those used in assistance systems. navigation systems). Bühler also offers solutions for making conductive metal pastes and ceramic materials for onboard electronics. Last but not least, high-grade lubricants are produced by wet-grinding technology, which increase the service life of engines.

Our Business Bühler Annual Report 2015 28

Grains & Food Business Areas

Grain Logistics Bühler Grain Logistics offers storage solutions, machinery and components throughout the entire food value chain – from an agricultural product’s reception through to the final stages of processing. Whether it’s a silo installation for harvesting purposes, a plant for grain trade, or a storage solution for the processing industry: Grain Logistics is a competent global partner providing individualized on-site customer service from conception to startup. With its knowledge and services, Grain Logistics sees to it that post-harvest losses, which are still occurring at an immense rate globally, are further reduced and that fewer commodities go to waste. Furthermore, with 75 % of all malt produced in plants provided by Bühler, Grain Logistics is the world-wide leading supplier of individually tailored malting systems.

Sortex & Rice Bühler Sortex & Rice significantly contributes to global rice and pulses nutrition and additionally ensures and safeguards food safety with its unique proprietary sorting technology. As the global benchmark in optical sorting, SORTEX advanced technology ensures that many crops are sorted with exceptional accuracy and speed. Defective grains and foreign materials are rejected, while maximizing speed and yield and minimizing the loss of good grains. The business area’s reputation for research and technology in the processing of rice byproducts helps customers to maximize value from every grain. In pulses, s esame, and spices processing, its approach of collaborative innovation aims to develop comprehensive processing solutions along the pulses value chain from farm to plate. With landmark rice mill installations in every major rice region, a worldwide sorter base of over 25,000 machines installed and extensive capabilities including consultation, project management, installation, and startups, Sortex & Rice is the technology partner of choice for processors who value excellence.

Grain Milling Bühler Grain Milling makes a significant contribution to feeding the global population. About 65 % of the wheat milled around the world is processed on Bühler grain mills. Grain Milling offers its customers state-of-the-art technology and innovative engineering for processing wheat, corn (maize), rye, oats, barley, millet & sorghum, buckwheat, and soya. At the same time, industrial-scale breweries and bakeries are supported by innovative plant concepts for producing crushed malt or dough and sponges. The business area covers the entire value chain from consulting and engineering to installation and start-up, including maintenance as well as training and further education. Bühler solutions ensure gentle handling of the valuable raw materials, top end product quality and yield, and optimized operating costs.

Value Nutrition Bühler Value Nutrition combines innovative process s olutions for the food and animal feed industries and pays particular attention to the ever-increasing requirements placed on valuable human and animal nutrition. As a result, Value Nutrition is the global solution partner for producers of food and animal feed: from pasta and noodles, cereals, and snacks to pet food and feed for fish, cattle, and poultry. The company’s contribution in this area is substantial: Around 40 % of global pasta production takes place on machines made by Bühler. It is also responsible for 35 % of the world’s cereals and 20 % of its feedstuff. The core technologies of Value Nutrition relate to the areas of pelletizing, extrusion and drying, all ingrained in comprehensive expertise throughout the entire process. This allows Bühler to time and again set international standards in various areas, including energy efficiency in the production process.

Consumer Foods Bühler Consumer Foods with its market share of 60 % substantially contributes to the processing and production of cocoa, chocolate, coffee, and nuts. The business area sets standards in chocolate production, be it conventional bar products or enrobed and filled goods such as bars, cookies, caramels, or other confectionary. This business area is committed to the continuous development of new innovative technologies. It is a complete provider of products and services to the confectionary industry, offering state-of-the-art production systems for any process stage. Consumer Foods stands for energy-efficient processes with maximum raw material yield and top product quality.

Our Business Bühler Annual Report 2015 29

Advanced Materials Business Areas

Die Casting Engine blocks, structural components such as shock towers or cross-members, as well as oil pans or power train components are increasingly being made from light metals such as aluminum, as lightweight designs reduce carbon emissions. Bühler Die Casting is the global leader in the field of lightweight aluminum solutions for the automotive industry. 50 % of all new passenger cars around the world are equipped with die cast components manufactured on Bühler m achines. Crucial for this success is the comprehensive range of solutions offered – from die casting cells and services to technological support. With its strong global services network, several application centers, and its own production, machine revision, and technology sites in Europe, Asia, and North America, the Business Area Die Casting supports customers in all investment phases. Maximum productivity and quality are ensured – from system engineering to start-up and throughout the entire lifecycle of the production systems.

Leybold Optics With its vacuum deposition equipment, Bühler Leybold Optics contributes among other things to energy efficiency, comfort and food preservation. Thin-film applied on our machines ranges from functional optics coatings for window glass to headlight reflectors as well as flexible packaging. Coatings for ophthalmic and precision optics products such as lenses, lasers, or high-end telescopes complete the Leybold Optics product portfolio. Buildings with coated facade glass require up to 50 % less energy for heating and cooling. Leybold Optics combines state-of-the-art equipment technology with comprehensive process and application know-how to offer customers complete production solutions.

Grinding & Dispersion In the production of paints and inks, printed products, solar m odules, or batteries for electric cars, customers rely on equipment and solutions from Bühler Grinding & Dispersion. 60 % of all offset inks are produced on Bühler systems. Bühler Grinding & Dispersion offers extensive expertise and supplies customized systems for complex processes. This includes the rapidly expanding lithium-ion battery market, where Bühler technologies are used for nanogrinding the raw materials and for manufacturing the electrode slurries. Its wet-grinding technology is also used for various products for the chemical industry. When it comes to drying, grinding, and sifting applications, the leading producers of superabsorbers – which are contained in almost all disposable diapers – also rely on Bühler process technology. Thanks to its continuous development efforts, the business area enables customers to make better products and to lead the industry with their market innovations.

II Best People Employee Portraits: Making a difference

Best People Bühler Annual Report 2015 31

Employee Portraits Making a difference The success of our company is based on our motivated and competent employees. In eight carefully selected portraits, we show how the flexibility and passion of our employees have contributed to our performance in a challenging 2015.

Mike Muriithi, Nairobi, Kenya What motivated this automation engineer to travel to Guinea despite Ebola?

Fernanda Tanko, Blumenau, Brazil How the passionate business woman copes with the downturn in Brazil.

Hans Gehrig, Uzwil, Switzerland The quality specialist counters the strong Swiss franc by putting in extra hours.

Maral Heshmati, Tehran, Iran What makes this Iranian site so s uccessful despite sanctions?

Zhao Nangang, Wuxi, China Why this salesman from China has more than just luck.

Matthew Schweizer, Minneapolis, USA Just finished with his training, this Bühler service engineer proves his skills at customers’ sites.

Béatrice Conde-Petit, Uzwil, Switzerland How this food expert develops new business models and services.

Shidi Huzeinat, Nairobi, Kenya The benefits that this young African woman draws from her Swiss vocational training.

Best People Bühler Annual Report 2015 32

Prince Braveheart This is the story of Mike Muriithi, the cool boy who in the times of Ebola went to Guinea to start up a flour mill – and escaped with no more than a scare.

At the end of 2014, it appeared that the world was doomed. The media had already declared Ebola the epidemic of the century. They flooded the world with pictures of the misery like a tsunami. The global temperature curve measured the fever daily, with West Africa at the center. Every slightly suspected case landed under the global microscope in real time. When the Ebola temperature curve had reached fever pitch at the end of the year, one person remained cool: Mike M uriithi, Bühler automation engineer based in Nairobi, Kenya. On Mike’s desk lay a request – now of all times – to travel to Guinea for a few weeks. To the epicenter of the disease. There, the Sonoco Group was busy building a flour plant of four mills with Bühler – and now they were ready for start-up. Would he go? Mike is a sunny young man. Aged 28, he is a carefree kind of person – but quite the opposite of careless. He is deliberate. Calm. Calculated. Even as a child, he started kneading, building, shaping things. Engineering is in his DNA. Mathematics came naturally to him. As a little boy, he pestered his mother at the table to give him more ogali, the African maize porridge. But not to eat. The porridge was Mike’s first engineering material. He used it to shape houses, cars, and faces – in such a lifelike way that he continually astounded his family and friends.

After successfully finishing school, Mike studied mechanical engineering and mecatronics in Nairobi. Here he could indulge his passion for designing things in a professional fashion. He won a national science contest with a robot design, which was capable of moving on its own through uncharted terrain. Would he go? To Ebolaland? His mother encouraged him to go, but his father advised him against it, and his girlfriend almost fainted. “I knew that the epi demic was dangerous,” says Mike. He too had been swept away by the flood of pictures. Bühler allows its employees to make the decision of whether to travel to risky countries or not. It was therefore his own personal decision. In order to reach a decision, Mike calculated the risk, relating the number of people affected by the disease to the country’s population. He asked for information from independent sources on how people were infected. He balanced the risks and opportunities. And Mike went. Three things spurred him on: The obligation he felt toward customers, the distress of the people in Guinea, and the unique opportunity for him personally. As a Swiss family-owned company with a global presence, Bühler is present in many crisis regions across the world.

Mike Muriithi

Nairobi, Kenya

Best People B端hler Annual Report 2015 33

Mike Muriithi

A new service station was just opened in Pakistan. In Tehran, the Group has operated a factory for decades, which continued to manufacture Bühler products even during the embargo. “We are at our customers’ side especially when things get rough,” says Mike. That is Bühler. And the Sonoco flour mill in Conakry, Guinea was not just any facility. It was a firm part of plans to supply food to the population of this crisis-ridden country. “On site, we saw that the storage bins were almost empty,” explains Mike. More than once, government officials came to check on the progress being made in the construction of the Sonoco mill. “To have failed to start up the mill would have further aggravated the suffering of the people living in Guinea,” says Mike. And personally, the project offered him, who has been with Bühler for two years now, the opportunity to become part of an international team under Swiss management. Moreover, an automation system – WinCos, to be precise – was to be installed, which he had never worked with before. “For me, this project was the right challenge at the right time,” says Mike.

body temperature every day. Determine the best routes to be taken between the hotel and the mill. Refrain from going to a hospital in case of an emergency and instead immediately contact SOS International. Evacuation plans were drawn up to ensure that those involved could leave the country within a few hours. The Bühler Executive Board, which must approve every journey to a maximum-risk country, gave the go-ahead.

The trip was painstakingly planned to minimize the risks. For this purpose, Bühler collaborated closely with SOS International, an institution specializing in such cases. The team was carefully instructed on how to behave: Measure your

But there was no time for doubts. The project was calling. The team’s task was to start up four finished grain-grinding systems with a total capacity of 600 tonnes a day. 600 tonnes translates into 480 tonnes of flour, which is equiva

And Mike went. He was not alone. Mike was part of a project team that was managed out of Uzwil, Switzerland and was supported by automation specialists from Bangalore, India. Olivier Galy, the head miller accompanying Mike on his assignment was from Casablanca, Morocco. “I was a member of the global Bühler family,” says Mike. Traveling via Côte d’Ivoire – direct flights from Kenya to Guinea had been suspended – he reached the place where it all was taking place. “When I passed the border control, I must admit I was feeling a bit queasy,” says Mike.

Top service Happy customers Mike’s travels to our customer Sonoco in Guinea is only one extraordinary example of how Bühler is living up to the claim of “engineering customer success”. We put ourselves in the shoes of our customers thinking and acting from their perspective. Therefore, services are becoming more and more important: to ensure high uptime, constant quality, high yield and less energy consumption. And in cases like Sonoco to support our customer even in difficult situations to guarantee the start of production.

Best People Bühler Annual Report 2015 35

“For me, this project was the right challenge at the right time.”

lent to 1 million one-kilogram loaves. Loaves of bread for the population of Ebola-ridden Guinea. The hardware – storage bins, building structures, roller mills, sifters, bagging lines – was all ready to turn the project into a reality. Mike did not hesitate to tackle the job. He was supported by his colleagues at Bühler and the customer Sonoco, and assisted by the head miller Olivier from Casablanca, who was in charge of startup and trial operation. Install and start up software, perform in / out tests, check sensors, grind the first grain batches, inspect the flour quality, fine-tune operation, continue to grind, check and readjust – until a smooth and reliable operation is achieved and the mill can be handed over to the customer. Mike must travel twice to Guinea to complete his assignment. The hotel he is staying in along with his colleague is deserted. His colleague and he himself are the only guests. He notices how little his own experiences match the reality described in the media. He does not learn of one single case of illness. The Ebola virus has not even arrived anywhere near the customer’s employees, who he befriends and who invite him to their homes. Yet still, the oppressive feeling just won’t go away. “You simply can’t switch it off,” says Mike. At last, on J anuary 25, 2015,

his courage, competence, and commitment are rewarded: Bühler successfully commissions the mill and ceremoniously hands it over to Sonoco. Mike returns home – relieved and his baggage full of experiences and successes. “This was my best installation job ever,” he says. He is proud. He boards the plane. His assignment is over. Almost. One day later, Mike feels unwell. Feverish. He must go to the hospital. The doctors immediately place him under quarantine. Total isolation. When they visit him, they are wrapped entirely in protective clothing. They carry out tests. In the afternoon, his condition worsens. Mike’s nose starts to bleed. He is alarmed. The longest hours of his young life start. In the evening, the doctors enter his room. Still wrapped up. Then suddenly they take off their masks and laugh: “Everything’s okay with you.” Now Mike’s assignment is over. Really.

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The Yin-Yang Lady This is the story of Fernanda Tanko, who in the Brazilian city of Blumenau stands her ground against the recession with determination, a cool head, and a warm heart – and who is taking unconventional approaches with WhatsApp.

Fernanda Tanko

Blumenau, Brazil

So far, it has been a unique success story. Set up in 1980, the Sanmak family business rapidly shot to the top in the field of optical grain sorting systems in Brazil. This did not remain unnoticed in far-away Switzerland. Bühler, which also serves this market and is always on the lookout for opportunities, took note – and did not hesitate to submit an attractive acquisition offer to the South American company. With the know-how, the global sales and production network, and the financial clout of Bühler, the partners thought, much more could be achieved jointly. The deal was closed in 2010, and this tripped a turbocharger that provided an additional boost to the Sanmak engine, which was already spinning at full speed. Within a matter of only three years, its market share rose from 50 % to over 65 %. What, then, could now prevent the glorious future of Bühler Sanmak? Then came October 5, 2014 – and with it Dilma Rousseff, the reelected President of Brazil. It was not long before the political leadership shattered the fairytale of a Brazilian economic miracle by political conflict, corruption, and incompetence. The economy had grown by as much as 7.5 % in the past years, but has slumped to a minus of more than 1 % in 2015. Some 2,000 businesses have gone bust – almost 25 % more than a year ago. The unemployment rate has increased from 4 % to almost 8 % – more

than 15 million inhabitants of the formerly seventh-largest economy of the world are now jobless. Bühler has suffered, too: Turnover in 2015 dipped for the first time by 8 %. And Fernanda? Has she given herself over to gloom? Does her face show lines of distress? Is her back bent by the weight of troubling thoughts? Quite the opposite is true: She is now more energetic than ever before. For her, recession is not followed by depression – facing and fighting decline is her stimulant: “Let’s show them what we are together,” is the motto she declares. As the daughter of an entrepreneur, she has tackled critical situations before, for example when the sale of her company to Bühler was first met with employees’ resistance. Here, too, she displayed staying power and assertiveness, eventually convincing her staff of the benefits of the sale. But this mother of three also knows that hard business decisions alone are not enough. If she wants to navigate her company through rough seas, she must be able to rely on a hardy and loyal crew. She therefore urges on her people, with praise, admonition, help, consolation, laughter – standing boldly on the bridge giving her commands. Just like Yin and Yang, she combines sharp business acumen with hearty passion – which allows her to find many unconventional solutions.

Fernanda Tanko

Engineering customer success Improved production process Founded in 1922, Josapar has established itself as one of the largest food products companies in Brazil, supplying quality goods to the main Brazilian retailers and exporting to over 40 countries worldwide. To ensure its high level of quality, Josapar relies on the premium technology of Bühler, delivering a highly efficient production process along the entire value chain of production. “With the know-how and the highly efficient solutions Bühler offers, the company has become an indispensable partner for us at Josapar. With the new B5 sorter of B ühler Sanmak, we were able to significantly improve our yield rate, production capacity and the energy consumption in the re-designed sorting process for parboiled rice“, states Carlos Renato Teixeira, Plant Manager at Josapar. ”We were even able to improve our employee’s satisfaction thanks to a training given by Bühler, that led to improved results and a new structure allowing desirable labor conditions and hence a better performance.”

Take quality assurance. In this area, Fernanda is uncompromising. Bühler is and will always be a premium solution provider – even in times of crisis. But because the dollar exchange rate has ballooned by almost 50 %, it has in many cases become unaffordable to import high-grade machinery components. This means that local vendors must now fill this gap – vendors capable of fulfilling the rigorous quality standards of Bühler Sanmak and also keeping up when it comes to efficiency. She leaves nothing to chance. She and her staff visit local vendors to analyze their entire production processes and supply chains. How can we generate quality in the processes? Where does potential for improvement still exist that will also allow better prices to be achieved? This close cooperation enabled Fernanda and a supplier of sheet metal components to slash the process of returning defective parts by three days. And this with a strikingly simple solution: When Fernanda realized how much time was being lost through paperwork and returns, she did not hesitate to set up a

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“Let’s show them what we are together.”

WhatsApp group with everyone involved in the process. This gave an extreme boost to communications between Bühler Sanmak and its vendors: Today, if one of her staff receives a defective machine component, they photograph it with their Smartphone and send it to the WhatsApp group. This provides the supplier with first-hand information within almost no time, allowing them to induce the production of a new part the same minute – and seven instead of the initial ten days later, it is available at the goods reception point of Bühler Sanmak. Such smart ideas are not the exception – they are the rule. Using tricks small and large, Fernanda and her team manage to improve time-consuming processes and procedures that have become stuck in a rut. Nothing escapes her scrutiny; if necessary, she will turn everything inside out, not tiring to rearrange things at her site if only this improves process flows and increases productivity and ultimately the competitiveness. Thus, installation engineers now receive their machine components every morning by trolley service from the spare parts warehouse. Until

recently, they lost valuable time leaving their workplaces individually to collect their machine parts from the warehouse.

she managed to speed up the machine delivery time by as much as 23 % by the end of 2015.

Finding and rapidly implementing such improvements is not possible without smooth communications and a closely- knit team of some 100 employees in B lumenau. “We are all pulling in the same direction,” says Fernanda. The team spirit has become a matter of course, and this across all departments. In order to firmly implant this philosophy in the minds of her staff, Fernanda regularly gathers her workforce to drive them on to further improve internal processes by intensifying collaboration across the boundaries of all the different functions.

Such successes are important not only for business, but also for the well-being of everyone in the company. “I cannot tell my people for sure what the future will look like. But I can motivate them with my positive attitude to not bury their heads in the sand when problems crop up, but to find a solution to them,” says Fernanda. This is how she keeps spirits high. Positive thinking – this is her firm conviction – may decide between success and failure, especially when times are gloomy.

And this is also reflected in the company’s positive figures. Despite a plunge in In June 2015, she started a workshop sales revenue, Blumenau continues to program with the Manufacturing & Lo- be profitable. Despite ever-fiercer comgistics and the Engineering team to petition, Bühler Sanmak is still the maroptimize their collaboration and the ket leader. Fernanda Tanko is still writing processes that have a direct impact the success story of her company. Times on the supply chain and therewith the may be uncertain, but the last chapter quality of Bühler Sanmak. By making her has certainly not been written yet. employees better understand each other’s perspective and by improving the leadership in the different departments,

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The Doer This is the story of Hans Gehrig, the Ironman, the Formula-1 car builder, the guitar collector – the welding expert at Bühler.

As many others too, Hans did unpaid summits that gives him strength, gives extra work last year in order to help mit- him the power to hang on in moments igate the consequences of the stronger when others give up. With a fire that Swiss franc. And although “I actually had allows him to bear defeat and rewards enough to do in Uzwil,” he said, he would him with lasting moments of bliss with be prepared to go and assist the German an intensity that grows out of his almost Bühler site in Beilngries near Ingolstadt superhuman exertion. “If you want life to to assure the welding quality. The loca- give a lot back to you, you must invest a tion had a need for action. lot first,” is one of his credos. Welding is Hans’s passion – one of many. Welds must be strong. They must be gastight. And they must look nice. “I can tell how good a weld is by its appearance,” says Hans. Uniform, straight, with an attractive form is what they should be like. “The weld decorates the component.” This is what he strives for. Because quality is important to Bühler. His company. Poor welds cost money and may become dangerous. And they rarely take less time to produce than a perfect one. The quality of welds reveals to customers what quality means for Bühler. His company. A weld is a business card. He works at “a good company.” He wants this to show. Out of conviction.

His life – he is now 58 years old, grew up in Flawil near the Bühler headquarters, became the father of son Jay at 44 – abounds with investments in his life. Even while training to become a metalworker, he was enraptured as a young man by the sport of motocross – until a serious accident abruptly cut off this passion. A fter recovering, he switched to endurance sport. He was driven by it. He started swimming intensively, cycling, running, more and more, faster and faster, until he completed his first ironman triathlon in Basel in 1984, finishing fifth, but soon going on to reach the very top in Hawaii, first as finisher – someone who makes it to the finishing line in the first place – and with ever improving results. He took part six This is Hans Gehrig: a convinced doer. times, more than once having to end this Calm. Patient. With a firm, long hand- brutal contest before the end because of shake, looking straight into your eyes. health problems. “Yes, I also know bitter His face tells the same story. With a defeat!” At his crowning point, he was the readiness to commit 100 % of his efforts world’s 48th-best amateur. That was back to a cause that fascinates him. And with in 1989. “If you want life to give a lot back an inner fire driving him toward ever-new to you, you must invest a lot first.”

Hans Gehrig

Uzwil, Switzerland

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And that is what he does! Hans Gehrig ing else in the world.” After five years of is a self-motivation acrobat on life’s tight- intense F1 racing car business, the next rope. That requires emotions: “Love what vocational change called. you do, and do what you love.” For this, you need mental stamina: “Your mind Why does someone come back to decides,” he says. “Even if you train to Bühler? excess, your psychic condition will decide whether you win or lose. You must Fist of all because of the products and know your strengths and your weak- technologies. “Unrivaled,” says Hans. He nesses and also how to mobilize your is proud of being “part of it all, of helpreserves at the crucial moment.” ing feed the world.” Proud to know that a large share of all cars – about 25 % Then he started training to become a worldwide – drive around with aluminum mental and motivation trainer to pass components inside that have been made on his own personal experience. on Bühler die casting machines. Proud that a Swiss family business from the For Hans, the parallel between sport region where he was born and grew up and profession is evident. Competition, is capable of this; that he can share in performance, quality, innovation, staying the company’s success; that the compower, dedication and devotion exist in pany always has the future in mind; that both worlds. After training apprentices it offers its employees top-notch training during nine years at Bühler, he is of- and continuing education; and that qualfered the once-in-a-lifetime opportunity ity is at the core of everything it does. in 1995 to head the car construction ac- His pride does not hide the fact from tivities of Sauber, the Formula 1 racing him that, say, workloads have greatly stable in Hinwil a mere 60 kilometers increased and there is occasionally not away from Uzwil. Yet another huge chal- enough time to carry out tasks with the lenge. The induction is tough and intense, desirable care. “There is no such thing with deadlines continuously looming and as the perfect company,” he says, and expectations high to achieve success. personally makes every effort to improve With each race comes the uncertainty things. “I would not hesitate for a moment whether the rocket on wheels will make to recommend Bühler as an employer.” it or fail because of a defect for which his people were responsible, which however That is why Hans Gehrig accepted worknever happened once in all the five years ing unpaid extra time when the landslide with Sauber. As many times before, he of the franc-to-euro exchange rate struck, passes also this acid test, experiencing ripping a hole of almost CHF 100 million moments of deep satisfaction that others into the assets of Bühler. “I accepted this can only dream of. Winter is always the action without reserve.” He and the entoughest time, when the first new cars tire workforce in Switzerland displayed are built. “The sensation of standing all the pragmatism so typical of this country, alone early in the morning in front of a to which it owes its success. Within a freshly designed racing car is like noth- matter of days, the employee commis-

Top quality Integral claim Quality for Bühler as a premium solutions provider and market leader in many fields is a mainstay in its business model. Its quality understanding is integral and not limited merely to hardware or, in other words: plant and equipment. In order to satisfy the requirements of its mission to enable customers’ success on the basis of sustainable process solutions, Bühler quality starts with the selection and continuous training and education of employees. It continues through consulting, engineering, and technology and product development services to production, start-up, and customer service. And also its comprehensive training opportunities offered to customers are crucial for living up to its quality claim.

“The sensation of standing all alone early in the morning in front of a freshly designed racing car is like nothing else in the world.”

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sion representing the employees agreed “If you want life to give a lot back to you, upon an extensive bundle of measures you must invest a lot first.” Hans relies on with the top company management, in- passion, performance, and quality, and cluding five more work-hours a week. he will continue to invest during his whole Not really enthusiastically, but accepted life, also in Bühler. for the sake of maintaining the organization’s competitiveness. “Introducing the It is fortunate that people such as Hans 45-hour week during a limited period of Gehrig work at Bühler. And perhaps it is time was without any doubt preferable not really by chance after all. as a solution to the problem to cutting wages or laying off employees. I trust our people at the top, who know the details, and I hope this decision will ultimately yield the expected results,” says Hans.

Hans Gehrig

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The “Just Do It” Lady This is the story of 31-year-old Maral Heshmati, the “Just Do It” Lady, who is having a great effect on the business success of Bühler Tehran with her creativity and talent for improvisation.

Iran: Until the end of the 1970s, the re- weeks. The yearly inflation rate jumped gion on the Persian highlands was where dramatically to 45 %. In the face of the three millennia ago, civilization began, currency crash, regular customers of and the first written sources were found Bühler Tehran stopped investing over– a promised land blessed with natural night. Was that the end? Did the Swiss resources, an open society with 80 mil- Company have a chance under the conlion people, predominantly young people. ditions of a world-wide ban, which forBühler decides in 1976 to expand into bade the import of technological goods the promising region with its own site. and cut off the corporation’s IT systems. Business is going well. Would Bühler Tehran give up?

Maral Heshmati Tehran, Iran

Then, in 1979 the turning point: The Islamic Revolution turned the country upside down. And that was the beginning of the phase of isolation that would last decades. The isolation and marginalization reaches its peak in 2012 as the USA implements an oil embargo in addition to tightening sanctions against the country.

That would not be Bühler! Sharif Nezam- Mafi, the Managing Director, went in front of his team and said: “We have the complete support of our entire organization. We will manage.” “But,” he added, “we need to completely re-establish ourselves.” Maral, who has been with them since 2010 and is one of the most experienced team members, served And Bühler? Can the site, which had as one of the most important levers by grown to employ 150 employees and managing the flow of funds in order to looked after 310 customers from the handle the transformation successfully. milling industry, adjust one more time She knew: “Now we needed to be as to this extreme situation? “The sanc- flexible as possible.” tions of 2012 changed everything again,” explains Maral Heshmati, 31 years old, Step one: Ensuring the margins under the working for Bühler Tehran in the mill- conditions of extreme currency volatility. ing department. “The sanctions were a “For that, we immediately made a huge shock for us,” she adds. Excel spreadsheet, in which the products were stripped down into their most The national currency, Rial, lost more important parts, with import countries than 40 % of its value against foreign and currencies.” This list is updated daily, currencies in a period of less than two in order to give each customer the relevant

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prices and adjust for hyper-inflation. Because they also had to operate under the same conditions, they accepted this procedure. That is a typical Maral solution; she is a “Just Do It” Lady. Before anyone has finished asking a question, it seems, she picks up the phone in order to undertake the necessary steps. Her philosophy: “You have to take charge of things yourself. Nothing happens by itself.” Sometimes that can be tiring and pushes her to her limits. She regains her energy with Zumba, and she teaches as an instructor five minutes away from Bühler Tehran. Maral Heshmati

In the region for the region Milling customer Vahdat Abade decides for local machines Vahdat Abade, founded in 1982, is owned by the Aram family and has a milling capacity of 230 tonnes per day. The company decided that for its next growth program, it will order 12 MDDP roller mills assembled in the Bühler factory in Astara. “We wanted local machines that will allow us to have faster access to technology know-how and spare parts; Astara provides all these characteristics and is very strategically located,” says managing director Hussain Aram. After the initial engineering by Bühler Tehran, the prefabricated MDDPs were ordered from Bühler China with final assembly in Astara – everything done was aligned to the high quality standards of Bühler. The customer start-up is scheduled for February 2016.

Step two: Ensuring financing. Since the sanctions went into force, issuing letters of credit specifically has become a challenge. Without this letter of credit, it is not possible to receive a loan from the bank to buy machines. No loan, no orders. No orders, no revenue. The equation is so simple and yet so tough, which Maral and her colleagues from Bühler Tehran are confronted with day in day out. Their remedy for this: Bühler Tehran, along with the customers, opened accounts with Chinese banks and also invoice in the Chinese currency, Renminbi. This was not banned under the sanction conditions and enabled further financing, and also to maintain certain foreign suppliers. It also has the effect of cushioning price fluctuations. Step three: Ensuring delivery quality. In the spirit of “Just Do It”, Maral v ehemently enjoys getting involved to counteract

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“You have to take charge of things yourself. Nothing happens by itself.”

possible delays. For the milling customer, desired specifications. Afterwards, their Qods Razavi, the lack of one single han- Manager, Sharif Nezam-Mafi, traveled dle for a plansifter threatened to delay the to China with a team, in order to check whole delivery. By reacting quickly and parts on site, to arrange the exact scope making countless telephone calls with of delivery of the “Iranian” roller mill to China, she and her team succeeded in be constructed, and to put the consigndelivering these on time, separately by air ment back on track. By doing so, they freight. Maral regularly inspires domestic succeeded in a short amount of time in suppliers as well as Bühler employees ordering a complete prototype, which to produce and deliver more quickly. would subsequently be constructed in Thanks to the very precise alignment Bühler’s own factory in Astara. Maral and of order and import documents, Maral her people also looked in Iran at the same recently succeeded, for example, in en- time for alternative suppliers. She carried abling a delivery to the milling customers out comprehensive audits among local Khousheh Fars on time. providers and look what happened: She struck gold and came across a local proStep four: Focus on the distribution of ducer, who was even partly better than individual machines and complete re- the previous foreign suppliers. construction of the value chain, in order to operate successfully and strategically “Just Do It”: After just two years, site manwithin the changed market conditions in ager Sharif, Maral and their colleagues the long term. Previously, Bühler Tehran are celebrating the first successes. At imported the most critical components the end of 2014, Bühler Tehran was able from the European Bühler sites. “Up to to sell the first locally assembled roller this point, our customers were prepared mill MDDP, and four additional types of to pay the appropriate prices”, Maral re- machines in the rice sector were added calls. The site could no longer afford that to the production line. For one and a half with the weakened Rial. Foreign suppli- years, Bühler Tehran has also been sellers had become too expensive because ing self-produced hopper scales, rotary of the weak currency. And raising prices valves and sieving machines. “To see was not an option. The economic situ- that our strategy is proving successful ation of the customers did not allow for makes us incredibly proud and inspires that. Bühler Tehran had two options: do- us,” says Maral. mestic production on the one hand and importing from Bühler Asia on the other. The pride is justified, as the concept to secure the future in Tehran worked: In order to ensure the correct procedure, Bühler Tehran is number one for individ Maral and her team thoroughly identified ual machines in the Middle East & Africa, the needs of the local market. They car- the site’s profitability is significantly highried out interviews with numerous cus- er than the Bühler average. All thanks to tomers, and meticulously collected their “Just Do It”!

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Lucky Man This is the story of Zhao Nangang, called Charlie, a Chinese economic miracle man whose flash of inspiration is apt to give wings to the use of clean electrical cars.

China in the year 1992: The Middle Kingdom is still slumbering and waiting to be kissed awake. The skies over Beijing are blue, the streets are swarming with bicycles, and the people are still poor. Bühler is still the traditional Swiss company of yore, for which China is a niche market; as yet, it has not built any factory there. A young man, trained as a mechanical engineer, enters the Bühler office in Beijing. He has applied for a sales job. His open and patient nature, his knowledge, his drive – they are all convincing. And also his modesty. When he leaves, he has the job. Is this what you call luck? China in the year 2011: The Middle Kingdom is hurtling down the fast lane of globalization. Beijing’s skies are gray, cars are stuck bumper to bumper in traffic jams, new money is on display everywhere. Bühler operates in 140 countries and has become a global Swiss family-owned company. China is Bühler’s most important market. Over 2,000 people work there in five factories. Our salesman – who has been with Bühler for 20 years without interruption – has a flash of inspiration. He has long been familiar with everything related to grinding raw materials into tiny particles measured on a nanometer scale. And how you mingle them with

other ingredients into homogeneous dispersions, for example for making paints and inks. He and his team have supplied them to the Chinese printing industry for the past 16 years. For mixing dispersions, Bühler offers the well-known batch process as well as its latest technology – a continuous process using extruders. They merge the ingredients in a small barrel equipped with a twin screw, which mixes them thoroughly and then forces them as a highly homogeneous product through a nozzle and out of the machine. Our man in Beijing, always on the lookout for new markets, knows that nanoparticles are also mixed in the production of lithium-ion batteries. Up until then, their key component – the electrode slurry – was mixed in huge mixing containers. That is costly, takes up much space, and is not always successful. The mixing time is long and quality fluctuates. If the process could be performed using an extruder, this would be a breakthrough, specifically for the rapidly growing electric car market. Charlie is aware that his colleagues in Uzwil, Dr. Markus Hofer and Dr. Bernhard Stalder, had worked out a general process years ago for mixing lithium-ion battery slurries based on existing Bühler extrusion technology. But none of the attempts to launch the new solution were crowned by success.

Zhao Nangang

Wuxi, China

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Zhao Nangang

Sustainable processing solutions Lishen as a technology partner The iPhone has them, fitbit b racelets contain them, Dell notebooks are equipped with them: Lithium-ion batteries from the Chinese manufacturer Lishen. The next big field of application for Lishen are energy storage devices for electrical vehicles. By the year 2017, the company based in Tianjin plans to almost double its production capacity. And it will do so with Bühler as its technology partner. Setting out from a new basic Bühler process, the two companies have jointly developed a new solution for making the core battery component – the electrode slurry: a continuous extrusion process. This approach has been designed to cut production costs on a sustainable basis and to achieve a better quality. An initial pilot line has already gone into operation at Lishen.

While listening to introductions on modern battery material production processes at a customer meeting in 2011, he is fully alert: Now the time has come to push this idea and revolutionize the battery production process. Intuition: Luck? That is precisely how our man views the matter, modest as he is: “I am a lucky man,” says Zhao Nangang, Charlie. His formula for success: competence and empathy. Knowing what his partners, his customers, need, what they feel, how they tick. Never pretending. Thinking for them. And then also: Luck.

Lishen: This is China 2.0 in its purest form. Set up in 1997, the company now has over 9,000 employees. Today, this Chinese organization is a supplier to the top brands of the electronics and entertainment industries – Apple, Samsung, Microsoft, to name but a few. Lishen spends up to 5 % of its revenues on research and development, and more than 1,500 of its engineers are busy developing the batteries of the future. And the future resides in the next expansion stage: automotive. Soon, Lishen has signed cooperation agreements with VW, BMW, and Jianghuai.

With all his skills, he focuses his energy on turning his hunch into a reality. His China is pushing electromobility. Its Swiss colleagues as inventors of the ba- megacities are to breathe freely again. sic solution promote his efforts to push The International Energy Agency (IEA) the concept into the market. “If you want estimates that of the 120 million new to be successful in business, you need cars that are projected to be sold in the full support of the entire organiza- 2030, every other one will be powered tion,” is one of his credos. Where is the by an electric motor. Most of them in door now? How does it open? “There China. The component of an electric car is always a door,” says Charlie. “All you most critical for its success is the battery. have to do is find it.” Just make sure Range, speed, weight, and costs: The you don’t run against a wall. The door energy storage system has an impact is some 1,000 kilometers away from his on everything. In all likelihood, global location in Wuxi, in the city of Tianjin – a manufacturing capacities for making lithcompany named Lishen. ium-ion batteries will expand massively in the next few years. Lishen is powered

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by this development. “Power your life” is its corporate motto. The company plans to invest almost CHF 2 billion in building a Power Battery Industrial Park with an annual production capacity of 10 billion watt-hours.

China in the year 2015: The country is on a consumption and innovation trip. Highspeed trains flit across the lands, Chinese investors are chasing investment opportunities around the world, and the current five-year plan promises greater sustainability. The country’s economy This is the opportunity that Charlie has has begun its challenging transition, been waiting for. accompanied by inevitable hiccups. By mid-year, Bühler and Lishen have For the evaluation and process develop- reached the next milestone. A thousand ment stages, Bühler has built a special miles after the first step, the two technolbattery lab in Wuxi to develop the slurry ogy partners have agreed to build a first production process using an extruder. pilot production line right inside Lishen’s This is the new Bühler, this is the new factory in Tianjin. And a few months latChina: an entrepreneurial spirit and cour- er, the first battery slurry comes out of age from Switzerland for the first time the extruder. Charlie’s plan to activate a combined with the capabilities of the network of supporters across different Group’s technology site in Wuxi. Another divisions and cultures together with a key milestone reached. Then come the first customer has worked out. The success trials in the battery lab. The results were of the launch of the revolutionary prodevastating, remembers Charlie. The cess is tangible. end of the dream? “You must always be prepared to accept the challenges,” Is that what you call luck? is another credo of his. Extracting the tiny positive aspects from the negative results and building upon them. His idea has already gained momentum, which helps bridge the first frustrations. Step by step, the development team forges ahead, improving parameter by parameter. Until the laboratory values show better processing properties in conjunction with half the former footprint and lower production costs per liter of slurry. With such values, you can start approaching customers.

“If you want to be a successful salesman, you need the full support of the entire organization.”

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The Perfect Match This is the story of Matthew Schweizer, who completed his vocational training at Bühler in the United States based on the Swiss model – and is unique not only because of that.

When Matthew Schweizer flies across the United States, he reads. Not light stuff – machine manuals. Today he is on his way to the American subsidiary of Lindt in Stratham, New Hampshire. In his hands: the operating instructions for a five-roll refiner. Matt is accompanied by Michael Furrer, a seasoned service engineer who has been with Bühler for 30 years.

Matthew Schweizer Minneapolis, USA

Mike is Matt’s mentor. He likes his 22-year-old, who looks as if he might be mother’s favorite son-in-law. For Matt is ambitious. He is tough. He painstakingly prepares what he is going to do before he does it. And he is also good at it, even outstandingly qualified. But this is not surprising, for Matt completed his vocational training in Minneapolis a few months ago to become a customer service engineer – in an apprenticeship program that exists in no other place in the world than in Switzerland or Germany – yet now also at Bühler in America. The statistical probability of meeting another U.S. citizen with a Swiss vocational training certificate is likely to be around one to a million. How did this happen? Why does Bühler not only export plants and equipment, but also its training model? And this not only to the United States, but also to Brazil, China, India, and South America. And

why does Matt, who actually planned to get a normal college degree, embark on the adventure of an apprenticeship – a form or training that no one has known in the United States up to now? It all started exactly 101 years ago. On May 2, 1915, at six in the morning, the then 16-year-old Albert Bürkler headed out to his workbench at Bühler in Uzwil. He was the first apprentice to learn the vocation of metalworker. This marked the starting point of an era of steadily intensifying training and continuing education for this Swiss company. From the beginning, Bühler pioneered industrial-scale process engineering. But the business concept of this prime solution provider can only work with the “Best People” – regardless of whether they are employed in product development, engineering, manufacturing, sales, or service. That was as true back then as it is now. Since that time, 7,000 apprentices have completed their basic vocational training at Bühler, and over 1,000 of them are regular Bühler employees today – almost 10 % of the total workforce. As the organization continued to globalize and add new sites to its network, which currently comprises 140 locations worldwide, Bühler also carried its vocational training model out into the big wide world – after all, the Best People are re-

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quired not only in Uzwil. For this, Bühler sends apprentices from Switzerland to its sites across the planet, where they can continue their basic vocational training in a virtual classroom. To support this effort, Bühler sets up its own vocational training schools at its major locations. This is done not only to cover its own needs, but also for the sake of its customers. The latest example of this is the African Milling School, which Bühler opened about a year ago in Kenya and where African specialists with a basic on-the-job training background receive systematic theoretical and practical education. The Bühler vocational training school in Minneapolis opened in 2012 – and it would become a kind of pilgrimage site for Matthew Schweizer. The education there was a perfect match for the needs of this young American with his thirst for knowledge and his love of experimenting. This is because Matt is a machine nerd. As a little boy, he took his toys apart because he wanted to see what they looked like from the inside. Though he was unable to put them all together again, his fascination had been awakened. In grade ten, he started working in a hardware store: his personal para dise populated by countless machine parts and tools. He collected whatever was discarded there and took it home for inspection, where he gradually built an impressive workshop. When his friends go to the movies, he goes to his workshop, which is located right next to his bedroom. Over 3,000 parts are sitting there, meticulously sorted and stowed away in parts drawers. He loves hammering, solder-

ing, filing, and bolting things together. He adores finding out how things work, exploring them down to the last detail – electrical circuits for example, or piping systems. He once even dismantled the piping in parts of his parents’ home, reassembling it in his own personal fashion. In his bedroom, the construction and all the electrical wiring is his own work.

imagine? “In such a learning atmosphere, you are much more likely to ask a question if something is not clear,” says Matt.

With his insatiable curiosity and his careful work style, he was a good apprentice, perhaps even the best of the first five. As a reward, Matt was offered the chance together with another apprentice to work for four months in Uzwil. “That was a When a Bühler full-time employee who very valuable experience because it alworked in the same hardware store drew lowed me to look into a large number Matt’s attention to the vacant appren- of different departments,” says Matt. In ticeship, he didn’t hesitate for a second. Uzwil, he also saw how the dual vocaHe immediately realized this once-in-a- tional training system works in Switzerlifetime opportunity to understand, re- land. Many things thrilled him, although pair, and maintain big machinery instead he preferred other aspects in his varof just selling small pieces of equipment ied apprenticeship in Minneapolis. “We – and promptly turned his passion into learned to solve a given problem in more his profession. than just one way,” he says. “Not every customer has a lathe or milling machine Three months of classroom work, then at their plant. But I know how to meathree months of hands-on work at sure and drill things even by hand.” Bühler: This was the cycle in the threeyear training program at Bühler Minne- Matt is a practical thinker. He wants to apolis and the vocational training school be productive, make sure that things at the Dunwoody College of Technolo- keep humming. During his apprenticegy. In the first year, the five apprentices ship, he made an extraordinary effort to learned how to use the various tools and travel to customers’ sites. In those three machinery. In the second, they familiar- years he worked more than 200 days at ized themselves with everything electri- customers’ locations. He seized every cal, and in the third were initiated into opportunity to gather experience on inthe fundamentals of machine design and stalled machines. Or even to install them business administration. A broad educa- himself in the first place. For example at tion, and one with enough room for ex- Lindt in Stratham, where two years ago, perimenting: When Matt was not helping he installed the production line and is out in the assembly shop or going along now carrying out the maintenance on a to visit customers, he and his four col- five-roller refiner. leagues in the apprenticeship workshop investigated the operating principle of Changing the rollers of a five-roller remechanical and electrical components. finer takes five days. Five days during The college class was made up of only which the machine is idle and chocolate the five Bühler apprentices – what bet- production is slowed down. During this ter instructor-to-trainee ratio could you brief span of time, everything Matt and

Engineering customer success Long tradition of trustful partnership For years now, Lindt has been writing a success story with its immense growth – also and especially in the American marketplace. In the premium segment, this Swiss producer has established itself as the global Number One, thanks to its exceptional quality, variety, and innovative power. In the background, Bühler acts as its core supplier of process solutions and its technology partner along the entire value chain of chocolate production – from preparation and processing of the cocoa beans and other selected ingredients to production of the “Lindor Kugel” chocolate balls and premium chocolates. This close collaboration between the two companies has a long tradition: It was first documented in 1947, when Dr. Rudolf R. Sprüngli worked as a young trainee on Bühler five-roller refiners.

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“We learned to solve a given problem in more than just one way.”

Matthew Schweizer

Mike do must be right, for this machine is the key to achieving a supreme chocolate quality. The five-roller refiner grinds the sugar crystals and other ingredients contained in the chocolate mass. The gap between the five rollers is in the double-digit micron range – the closer together the rollers, the finer the chocolate. For a premium producer such as Lindt, the roller gap is the eye of the needle leading to chocolate paradise.

Today, Matt could easily explain to customers almost anything about chocolate machines such as the five-roller refiner – knowledge gained from his high-altitude reading and from his mentor Mike. His broad training also enables him to diagnose faults with greater precision. His experimenting with devices and dismantling them into parts are paying off. When others would simply replace an entire machine part, Matt can say exactly what the problem is and whether it would make more sense to repair it.

So, the two arrive early in the morning at seven in the production hall of Lindt to work together with two maintenance It was only a matter of time before this employees. A defined procedure is now form of training would become noticed in place, with Mike determining the over- by the public at large. Now, Matt and his all plan and Matt taking over most of fellow apprentices have become media the tasks on his own, for example fitting stars and have granted numerous interheated bearings on the rollers or cleaning views both in the United States and in parts. His actions are quick and accurate. Switzerland. The impact even reached top political levels: Jill Biden, the U.S. Then, on a Tuesday morning – the bottle- Vice President’s wife, came personally to neck. One of the Lindt specialists must Uzwil to see the benefits of the dual votake care of something else at short no- cational training model. In return, Bühler tice. The tight schedule will not allow any CEO Calvin Grieder was invited to the delay. This is Matt’s chance to display his White House in Washington to provide skills. He and his mentor take charge of information on this Swiss form of training. the job for a short time, and Matt proves that he is fully up to the job. Though It won’t be surprising if we soon see Matt visited customers as Mike’s shadow the rare bird Matthew Schweizer with a during one whole year, his training and whole flock of young people with preinitiative make him a true partner. cisely this type of training.

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Best People Bühler Annual Report 2015 57

The Interface This is the story of Béatrice Conde-Petit, a pioneer of food safety who fights bacteria and mold with “killing steps” and sorters.

May 21, 2004 was a sunny day – and ended in a thunderstorm for the food industry. On this day, the U. S. Food & Drug Administration (FDA) furnished indisputable proof that also dry foods can be contaminated by disease-inducing bacteria. Using new analytical methods of molecular biology, the FDA was able to demonstrate that certain cases of salmonellosis could be traced back to raw almonds. Up to this day, the sole foods that were thought to pose a risk were those with a high water content such as meat, eggs, or salads. The scientific community was thunderstruck; in the food industry, only few people could visualize the profound change that this insight would trigger in the following 10 years.

Béatrice Conde-Petit Uzwil, Switzerland

common processes have on bacteria destruction,” she thought. And: “Why not apply tried-and-true solutions from the field of dairy technology to the processing of dry foods?” No one should be in a better position than Béatrice Conde to find such solutions.

As a food engineer, she focused her research on ways to transfer concepts of polymer physics to food processing. In the field of plastics, a large number of phase diagrams had long existed, which enabled manufacturing processes to be designed and explained with great reliability. But not for grain. Here, empiricism and experience still reigned supreme, having evolved over the millennia. However, if processes are to be fundamentally improved – for example for The news would change not only science halving energy consumption during dryand industry. It also reshaped the life of a ing – empiricism alone provides a shaky promising scientist working at the Swiss basis. Precisely quantifiable knowledge Institute of Technology (ETH) in Zürich: is needed in order to comprehend foods Béatrice Conde, at that time 43 years as a normal material and on the other old. “It became immediately clear to me hand to survey them as is done with that something dramatic was going on any other material and then to selectivehere,” says Conde, a former private lec- ly transform them. Béatrice Conde had turer at the ETH Faculty of Food Tech- already become a well-known expert for nology. All of a sudden, an entirely new her work on process design based on threat loomed ahead which nobody in phase diagrams for grain. the field had foreseen. This issue riveted Conde as a researcher and wouldn’t Thanks to the close ties between her Alma let her go. “We must arrive at a much Mater and Bühler, she knew this com better understanding of the effects that pany as a process and solution provider.

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And as the company began seeking specialist staff with the skills needed for building expertise in the area of food science and analytics, the spotlight turned on her. It appealed to her to apply her knowledge and abilities to finding practical solutions that would benefit people around the globe. Béatrice Conde agreed to join the effort. No one should be better suited to shaping the subject of food safety and giving it a clear profile at Bühler than her. In this, she benefits not only from her professional education with all its convolutions, but also her personal background. As a daughter of Swiss parents who lived abroad, she was born in Chile and grew up in La Paz in Bolivia. She also spent a number of her childhood years in India. Béatrice Conde speaks four languages and is well-versed also in cultural matters.

Who is taken seriously because of her by the Ceres dryer which was launched knowledge and her experience. A per- last year: the new machine cleans 75 % son like Béatrice Conde. Much more faster, doubles the operating time bethan most people, she moves with an tween cleaning intervals together with open spirit between these worlds, merg- improved hygiene. ing and fusing them into new solutions which make foods safer. Together with her team, Conde has now also developed complex solutions and In concrete terms, this means she trains is testing them in the field. Thus, Bühler customers and Bühler staff including today applies the newest scientific mold the Executive Board, develops service control knowledge to grain cleaning. The offerings, advises engineers on hygienic key to this resides in a smart combinadesign, initiates projects with universi- tion of mechanical cleaning, aspiration, ties, delivers talks. She helps develop and lightning-fast optical sorting of disnew processes, including the killing crete kernels. The latest versions of the steps designed to destroy the harmful Sortex sorter are capable of examining bacteria, and considers where optical thousands of kernels per second. This high-performance sorters must be used enables mold-infested batches of grain to eliminate highly toxic mold. When she to be removed from the food chain at an joined Bühler, the first question that many early stage. Such solutions are already skeptical colleagues asked was: “Where proving highly effective. “These are is the money?” Or, in other words: “Do merely the first important steps,” says Now she can benefit from this varied you suppose we can make any money Conde. We will not have reached our background, for the subject matter she with this?” Today, most of them have re- goal before special-purpose solutions deals with is as many-layered as lami- alized that food safety is not merely a for maize (corn) and peanut processing nated dough and as slippery as eel. One tedious school assignment, but offers are widely used in Africa. There, tens of person, one discipline alone will not suf- Bühler customers added value – and for thousands of people a year still fall victim fice to gain control over this toxic matter. Bühler it is a new and increasingly im- to liver cancer – triggered by aflatoxin, Coming to grips with food safety is only portant business field. the most toxic of all toxic molds. possible on the basis of interaction of a wide range of scientific disciplines: mi- This is demonstrated by the hard re- For Bühler, this change in mindset comes crobiology, engineering, process tech- sults that this cultural change has al- at exactly the right time. Food safety is nology, and automation, in conjunction ready brought about – for example in picking up speed, but the issue as yet with a fine instinct for practical mat- mechanical engineering. When today’s is far from having reached its climax. ters – plus close cooperation between Bühler machine designers, sensitized to Whether salmonella in nuts, non-deresearch institutes, the food industry, the issue of food safety, develop dryers clared allergens in chocolate, mycotoxand process and solution providers. Or- for breakfast cereals, chocolate refiners, ins in animal feeds, or metal splinters in chestrating all these players requires a grain flakers, or microfeeders, they do breakfast cereals are involved – not a day specialist, a person who is capable of so with easy cleaning in mind to prevent passes without news about disease-intraveling through this vast universe with food contamination. The commercial ducing contaminated foods. The new onthe unerring instinct of a sleepwalker. benefits that this produces are evidenced line communications technology with its

Sustainable processing solutions Advanced cleaning of mycotoxins Lorenzo Crivello, Managing Director of the Centro Cereali Carmagnola (close to Turin), states: “After more than one year running with my Bühler Sortex and their new cleaning concept for mycotoxins in corn, I'm really satisfied about the choice of my partnership with Bühler. And to use their latest technology for this so complex and difficult issue. Thanks to this, we were able to process corn that was highly contaminated by myco toxins and bring it to the legal EU limits of purity, giving me again the chance to remain the preferred supplier for all of my strategic customers.”

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hitherto unknown speed and transparency is ensuring that the new knowledge spreads in real time around the planet. “There are various reasons why a sharp focus is set on food safety today,” says Conde. The global trend toward urbanization – associated with industrial-scale food production, more meals eaten away from home, convenience foods, and globally available products – have made the risk more acute. Every fresh product recall encourages Bühler to forge ahead and find solutions, especially in connection with process validation. Have enough bacteria been killed in the thermal processing step? In the future, food producers will have to furnish more such proof. Béatrice Conde and a development team are therefore currently brooding over precisely this task. A new service is to make it easier to prove the effectiveness of the killing step in dry-foods processing with greater reliability and completeness. The first two prototypes are currently being fitted to roasters at customers’ sites. If the solution is found to be viable, nut processing will in the future be as safe as milk sterilization is today.

“We must arrive at a much better understanding of the effects that common processes have on bacteria destruction.”

This is how Béatrice Conde explores this vast terrain for Bühler and its customers, one step at a time. The world of food safety has become a new home to her. In our universal traveler, it arouses the longing for embarking on the next exploration trip. And she knows exactly where the journey will lead her: “After food safety comes feed safety,” says her navigation system.

Béatrice Conde-Petit

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Self-MadeWoman This is the story of 27-year-old Shidi Huzeinat, who has lofty ambitions in the African grain milling industry and who, for this purpose, has acquired the necessary skills in the African Milling School in Nairobi, Kenya.

Shidi Huzeinat

Nairobi, Kenya

She speaks softly with a mild voice. Her conduct signals reserve. She is young and of delicate stature. And still she is not only an Assistant Miller in one of the world’s largest grain milling operations, Flour Mills of Nigeria – the boss of rugged men, telling them what to do and making sure they do it; she not only loves the grinding floors of the mills – the roller mills, purifiers and sifters, these “dancing sieve boxes”; and she is not only getting through a vocational training in the African Milling School of Bühler in Kenya. First of all, Shidi Huzeinet is tough. To assert herself as the only current woman holding a milling management position in this gigantic men’s organization, she has a few tricks up her sleeve. “Most people underestimate me and think I’m harmless.” But when she sends her boys scurrying across the plant on assignments, this is no laughing matter. Her eyes sparkle. “Then I put on my governess’s face and talk plain language,” says Shidi. If someone stubbornly refuses to toe the line, she has her own personal way of responding: She fills out a form, suspending the offender from duty

for two days – without pay, of course. “Suspicion” is what she calls this – the wrongdoer has brought suspicion on himself. She then leaves the signed sheet lying for one hour in the Control Room for the whole team to see. “This usually solves the problem,” Shidi says, smiling. She knows exactly what she wants. First, see the whole picture; then, tackle the matter head-on. This is her tried-and-true method. She wants to have tight control over the situation. She is full of energy, not allowing even the tiniest doubt to arise for even a millisecond that she is determined to achieve what she wants. Shidi learned early on to organize herself. To realize that nothing was free. To find out that knowledge is crucial. She grew up in an extended Muslim family in the Nigerian city of Lagos with 7 brothers and 12 sisters from three mothers and one father, her mother being the youngest and the last wife. When her father died, she was just 15 years old. The family broke up and together with her twin sister, she moved to different places over and over again. Still, she managed to struggle through, qualifying with her good school grades

Shidi Huzeinat

to enter the Lagos State Polytechnic to In her job interview, it is made clear to study Science Laboratory Technology her that the company is not looking for and to graduate from the National Open interns, but regular employees. In the University of Nigeria. In her no-nonsense mill, she smells and feels her opportunity. manner, she had discovered her love of She says yes – and gets the job. hands-on jobs: “I feel satisfied when I see the immediate results of a job as soon as Nothing is free here, either. “That girl will it has been done,” says Shidi. One part not survive for a week,” murmur the men of her university training includes an in- behind her back. She is soon offered ternship in industry. A friend tells her that the chance to move to the laboratory: Flour Mills of Nigeria Plc is seeking em- however, they don’t know Shidi and with ployees – this is her ticket to a manage- her tenacity, curiosity and willpower, she ment position in the grain milling industry, learns everything needed to run the flour along with a world-class education at the mill. She stops anyone crossing her path new Bühler African Milling School. to ask questions, absorbing the new knowledge. This is also how she asserts “Wow” – on her first visit to the mega- herself as a member of the management. mill in Apapa near Lagos, Shidi is over- She enjoys her supervisors’ undivided whelmed. “Never in my whole life had I support. Flour Mills of Nigeria has deseen anything so gigantic,” she says. The cided to selectively employ women and company’s flagship mill comprises 16 in- to bring them into mill management tegrated milling lines. The plant has a rat- positions. In the heat of Nigeria, Shidi is ed milling capacity of over 8,000 tonnes an icebreaker. per day, making it one of the largest single-site mills in the world. In addition, Then something incredible happens: On the company maintains dedicated mills January 13, 2015, Shidi receives a phone for processing different wheat varieties call asking her to report without delay into different flour types. The Apapa Mill to the office of the Managing Director also boasts a modern bulk storage sys- of FMN. “Have I done anything wrong?” tem holding 191,000 tonnes. Flour Mills she asks herself. But quite the opposite of Nigeria Plc has been a loyal Bühler is true: She is told that together with customer for decades. a colleague she has been chosen to

“I had the urgent need to grasp how things work in our company and to see whether there was anything we might improve.”

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attend a three-year vocational training And again, she is alone as a woman course at the African Milling School in among men. And again, she absorbs Nairobi of Bühler to become a flour mill- every bit of knowledge that reaches er, starting in March. To learn the craft her eyes and ears. And again, it is a lot. from scratch; to master all aspects of the The aim of the program at Flour Mills of plant; to integrally comprehend grain and Nigeria was to train her to become an the grinding process; to optimally run a operator. Now she was learning the craft flour mill in terms of quality and efficiency. from scratch, without the pressures of round-the-clock operation in the back The miller makes the difference. A proper- of her mind. Day in, day out, she has ly managed mill can achieve an up to 2 % “aha” experiences because for the first higher yield while consuming up to 10 % time ever, she learns the theoretical unless energy and producing higher-quality derpinnings enabling her to understand flour. Because modern equipment tech- how everything intermeshes. nology is so sophisticated, millers need in-depth knowledge of how to control the For example, pre-cleaning: She took processes in the best possible manner – the raw material for granted that passafter all, you cannot leave flying an A380 es through the roller mills. Now she to a hobby pilot. With its milling schools learns about the significance of carefully and training centers, which it has estab- cleaned raw material and how grain can lished around the world since the fifties, be prepared in the best possible way for Bühler imparts precisely this knowledge the milling process. Following her first to its customers’ employees. Four years course in the African Milling School, she ago, Bühler decided to set up a voca- does not hesitate to go down to her comtional school modeled on the Swiss sys- pany’s storage silos and port. “I had the tem of apprenticeship programs also in urgent need to grasp how things work Africa, in order to help meet the rising in our company and to see whether demand for qualified staff in Africa with there was anything we might improve,” educated Africans. In February 2015, the says Shidi. There are many things that African Milling School opened. Shidi Hu- she learns, which she wishes to apply zeinat is part of the first class to have at Flour Mills of Nigeria: cleaning of the completed this training. optical sorters; correct dampening of the

Engineering customer success Flour Mills of Nigeria Plc Flour Mills of Nigeria Plc is a public limited liability company and its shares are listed on the Nigerian Stock Exchange. In its 54-year history, Flour Mills has remained at the forefront of wheat milling in Nigeria. The company’s flagship brand, Golden Penny, remains one of the best known brands amongst the bakers, confectioneries and consumers in Nigeria. Today, Flour Mills has a rated milling capacity of over 8,000 tonnes per day, making it one of the largest single site mills in the world. Flour Mills of Nigeria and Bühler have maintained a long lasting and solid partnership for more than 50 years. Bühler is the key supplier in Milling, Feed Milling and Grain Storage. The company’s flagship mill located in Apapa, Lagos comprises 16 integrated mills. But more to that, Bühler and Flour Mills of Nigeria have implemented a unique training program for mechanical and electrical maintenance staff as well as milling technologists. Flour Mills of Nigeria is a highly innovative company and in addition to Prime Flour, it has developed the Golden Penny Pasta as well as Golden Penny Noodles segments.

wheat before grinding; correct settings and adjustment of the roller mills, ash curve, laboratory analysis of the wheat and flour. All her tact is required to avoid being perceived as a school mistress, trying instead to convince the mills’ seasoned operating teams. For this, too, she has devised a trick: “Why not try it this way,” she proposes. Disguised as a simple suggestion, the knowledge transfer is successful almost every time and success is always the best proposition. After just a few months of training, this has won her respect: “When trouble used to crop up somewhere, I would be a simple onlooker. Now my colleagues call and ask me whether I know how to solve it.” She speaks softly with a mild voice. Her conduct signals reserve. She is young and of delicate stature. She is a woman. Whoever knows her, believes her that the African Milling School is just a milestone on her road to becoming the manager of a flour mill someday.

III Governance Group Structure Board of Directors Executive Board Advisory Board of Urs B端hler Innovation Fund Collaboration Principles Compliance Remuneration Report

Governance Bühler Annual Report 2015 66

Group Structure Bühler follows international standards of corporate governance As a non-listed, family-owned but economically significant company, Bühler has decided to give special attention to the design of its corporate governance. As a consequence, Bühler’s corporate governance goes far beyond the statutory requirements of the Swiss Corporate Law and incorporates to a great extent the recommendations contained in the “Swiss Code of Best Practice for Corporate Governance” issued by economiesuisse. Bühler’s Articles of Incorporation set material parameters of the corporate governance system. The Articles of Incorporation are complemented by Bühler’s Organ izational Regulations, which further specify the responsibilities, competences and regulations of the governing bodies of the Company. Unless prescribed by law or the Articles of Incorporation, the management is delegated by the Board of Directors, with the power to sub-delegate to the Chief Execu tive Officer, the Executive Board and its members. Separate Charters specify the organization of its two Board Committees. The Board of Directors has also issued a Regulation governing the cooperation between the Board of Directors, the CEO / Executive Board and the Urs Bühler Innovation Fund. Bühler remains a family-owned company In 2014, Urs Bühler transferred his shares in Bühler to his three daughters Karin, Maya and Jeannine Bühler, of whom each owns a third of the company. This change was based on long-term planning, effected with complete transparency and in agreement with the Board of Directors. For the new owners, continuity is the top priority as they want to build on the strengths and values of Bühler. They continue to maintain optimal general conditions for the company to operate in: a stable shareholder structure, a long-term orientation, steady company management which is not subject to the constraints of quarterly reporting – but nevertheless a management style pursuing business success. The three owners are organized as a family holding and have a clear and unified voice in relation to the company and within the Board of Directors, where they hold one seat on a rotating basis.

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Board of Directors Calvin Grieder (Chairman) Peter Quadri (Vice-Chairman) Dr. Konrad Hummler Josef M. Müller Ruth Metzler-Arnold Karin Bühler / Dr. Maya Bühler 1 Linda Yang Frank N. J. Braeken Clemens Blum 2

Urs Bühler Innovation Fund Urs Bühler (Chairman)

Executive Board CEO Group Calvin Grieder

CFO Group Andreas R. Herzog

CEO Grains & Food Stefan Scheiber

CEO Advanced Materials Samuel Schär

Manufacturing & Logistics Holger Feldhege

Asia Pacific Dieter Voegtli

Corporate Technology Ian Roberts 4

Human Resources Dipak Mane 3, 4

Human Resources Christof Oswald 3, 4

Business Areas Grain Logistics

Grain Milling

Consumer Foods

Grinding & Dispersion

Sortex & Rice

Value Nutrition

Die Casting

Leybold Optics

North America

South America

Europe

Middle East & Africa

South Asia

Asia

Regions

Dr. Maya Bühler succeeded Karin Bühler as member of the Board on February 9, 2015. Clemens Blum was elected as a member of the Board of Directors of Bühler in December 2015. 3 Dipak Mane succeeded Christof Oswald as Chief Human Resources Officer as of July, 2015. 4 Member of the extended Executive Board. 1

Governance Bühler Annual Report 2015 68

Board of Directors

Top row from left to right: Peter Quadri, Linda Yang, Frank N. J. Braeken, Josef M. Müller Bottom row from left to right: Ruth Metzler-Arnold, Dr. Konrad Hummler, Dr. Maya Bühler, Calvin Grieder

Governance Bühler Annual Report 2015 69

Frank N. J. Braeken (1960, Belgian) Frank N. J. Braeken graduated with a degree in Law and holds an MBA degree in Finance from the University of Leuven (Belgium). He is an alumnus of the Wharton Executive Program, Penn University (Philadelphia / USA). In his professional career, he specialized in finance and in general management. From 1996 to 2013, he held various management functions in different countries for Unilever, including a position as Group Vice-President of Unilever China (Shanghai), Executive Vice-President of Unilever Namca (Dubai), and Executive Vice-President of Unilever Africa (Dubai / Durban). Since 2013, Frank N. J. Braeken has acted as Chief Investment Officer of Amatheon Agri Holding (Berlin). He was elected to the Board of Directors of Bühler in 2014.

Clemens Blum

(1955, German) Clemens Blum holds a degree in E lectronic Engineering from Furtwangen University (Germany) and Business Management from Pforzheim University (Germany). After holding various positions in sales in different companies, he joined Swiss Industrial Group (SIG) as sales director of SIG Positec Automation in 1992 and was nominated General Manager thereof in 1997. In 2000, Schneider Electric acquired the SIG Positec activities from SIG and Clemens Blum then held various higher positions within the Schneider Electric Group. As of July 2010, he is Executive Vice President of the Industry Business. He is located in Foxborough (Massachusetts / USA). Clemens Blum was elected as a Member of the Board of Bühler in December 2015.

Dr. Maya Bühler

(1981, Swiss) Dr. Maya Bühler studied Veterinary Science at the University of Zurich. After the completion of her studies, she held various positions in the horse surgery department of the animal hospital in Zurich and became a Veterinary Specialist for Horses (FVH) in 2012. At the beginning of 2013, she became the owner and managing director of the company Pferdepraxis Thurland in Uzwil. Dr. Maya Bühler was elected as a Member of the Board of Directors and M ember of the Remuneration Committee of Bühler in February 2015.

Calvin Grieder (1955, Swiss) Chairman After being raised in the USA, Calvin Grieder graduated in Process Engineering from the Swiss Federal Institute of Technology in Zurich

Dr. Konrad Hummler (1953, Swiss) Dr. Konrad Hummler graduated in Law from the University of Zurich and in Economic Science from the USA University of Rochester. In the eighties, he acted as the personal assistant to the Chairman of the Board of Directors of former UBS, Dr. Robert Holzach. From 1991 to 2012, he was Managing Partner with unlimited liability of Wegelin & Co. Private Bankers (St. Gallen). In addition to his bank activities, he was a member of the board of various companies, including Neue Zürcher Zeitung (NZZ), Swiss National Bank (SNB), or the German Stock Exchange. Since 2013, Dr. Konrad Hummler has headed M1 AG, a private think tank dealing with strategic issues of current interest. Dr. Konrad Hummler was appointed as a Member of the Board of Bühler in 2010. In addition, he is strongly committed to cultural and social p rojects.

Ruth Metzler-Arnold (1964, Swiss) Ruth Metzler studied Law at the University of Freiburg i. Ue. and is a Federally Certified Auditor. From 1990 to 1999, she was active for PricewaterhouseCoopers in St. Gallen. In addition, she was a member of the Cantonal Government of Appenzell IR (Director of Finance) during three years. From 1999 to 2003, she headed the Federal Department of Justice and Police as Swiss Federal Councilor. Ruth Metzler then held leading positions at Novartis and was a member of the board and of the audit committee of SIX Group. She is a partner in a consultancy firm, chairperson of the board of Switzerland Global Enterprise, a member of the board of AXA Winterthur, a member of the council of the University of St. Gallen, and as of the end of February 2015 respectively April 2015, a board member of Fehr Advice AG and chairperson of the board of Aquila & Co. AG. Until May 2015, she was also a member of the board of the Hospital Association AR. Ruth Metzler was elected as a Member of the Board of Bühler in December 2011 and as Chairwoman of the Audit Committee in February 2014.

Josef M. Müller (1947, Swiss) Josef M. Müller holds a degree in Business Administration. He joined the Nestlé Group in 1972, with subsequent assignments in Switzerland, Europe, the USA, and South Africa. Furthermore, he then spent several years as a Sales and Marketing Manager in the Far East. From 1992 to 1995, he headed Nestlé Pakistan and from 1995 to 1998 Nestlé Korea. In mid1998, Josef M. Müller took charge of Nestlé China, and from mid-2000 to 2007 of the Nestlé Greater China Region. Josef M. Müller has been a Member of the Board of Bühler since 2007. He has served as President of Promarca, the Swiss Association of Branded Goods (Schweizerischer Markenartikelverband), since 2010. He is also a member of the board of Crown Holdings Inc. (Philadelphia / USA) and of Packages Ltd. (Lahore / Pakistan).

Peter Quadri (1945, Swiss) Vice-Chairman Peter Quadri graduated in 1969 in Economics and Business Administration from the University of Zurich as lic. oec. publ. In 1970, he joined IBM as a systems engineer and specialist for software and operating systems. Following various positions in the USA, Denmark, and Switzerland, he was president of the management board of IBM Switzerland from 1998 to April 2006. Peter Quadri was appointed as a Member of the Board of Bühler in 2006 and has been its Vice-Chairman (since 2014) and Chairman of the Remuneration Committee. He is also Chairman of the Board of TriplEat Holding AG, a member of the board of Run my Accounts AG and of Investiere (Verve Capital Partners AG) as well as advisor of the Quadriga Senior Executive Board. Until April 2015, Peter Quadri was also a member of the board of Vontobel Holding AG.

Linda Yang (1971, Chinese) Linda Yang holds one Bachelor degree each in Mathematics and Business / Finance from the Nan Kai University (Tianjin, China). She attended an Executive MBA program at the China Europe International Business School (CEIBS). Following various assignments in China in the fields of research, consulting, and marketing, at companies such as at Procter & Gamble (China) Ltd., she acted from 2001 to 2004 for Nestlé (China) Ltd. as Head of Consumer Insight. Since then she has been the General Manager of BSI (Tianjin) Foods Co. Ltd., a subsidiary of Savencia Fromage & Dairy (previously known as Bongrain SA). Thanks to her experience and training, Linda Yang has a proven understanding of the Chinese market. She has been a Member of the Bühler Board of Directors since 2014.

Clemens Blum was elected as a member of the Board of Directors of Bühler in December 2015. He does not appear in the picture (left). Dr. Maya Bühler succeeded Karin Bühler as member of the Board on February 9, 2015.

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(ETH). He then held various management positions in Swiss and German companies (Georg Fischer, Bürkert, Mikron, and SIG) in the fields of measurement and control, automation and engineering. In these functions, he was primarily responsible for successfully establishing and expanding international businesses. In 2001, Calvin Grieder moved from Swisscom to Bühler Group as CEO. As of February 2014, he is also Chairman of the Board of Directors. Furthermore, he is a member of the Board of the companies Implenia AG and Givaudan SA.

Governance B체hler Annual Report 2015 70

Executive Board

Dipak Mane, Andreas R. Herzog, Samuel Sch채r, Ian Roberts, Calvin Grieder, Stefan Scheiber, Holger Feldhege, Dieter Voegtli (from left to right)

Governance Bühler Annual Report 2015 71

Calvin Grieder

Stefan Scheiber

Ian Roberts

(1955, Swiss) Chief Executive Officer

(1965, Swiss) Chief Executive Officer Grains & Food

(1970, British) Chief Technology Officer

After being raised in the USA, Calvin Grieder graduated in Process Engineering from the Swiss Federal Institute of Technology in Zurich (ETH). He then held various management positions in Swiss and German companies (Georg Fischer, Bürkert, Mikron, and SIG) in the fields of measurement and control, automation and engineering. In these functions, he was primarily responsible for successfully establishing and expanding international businesses. In 2001, Calvin Grieder moved from Swisscom to Bühler Group as CEO. As of February 2014, he is also Chairman of the Board of Directors. Furthermore, he is a member of the Board of the companies Implenia AG and Givaudan SA.

Stefan Scheiber graduated in Business Administration from the University of Applied Science in St. Gallen and later continued his education at the Institute IMD Lausanne and other institutes. From 1988, he worked for 15 years in various management positions abroad, including East and South Africa, Eastern Europe and Germany. In 1999, he took charge of the global organization of the Brewing and Rice business units and then assumed overall responsibility for Bühler Germany. From mid-2005, Stefan Scheiber headed the Sales & Services division as a Member of the Executive Board. He has been in charge of the Food Processing division since 2009, which he merged with the Grain Processing division in 2014, and has since managed both as CEO of Grains & Food.

He graduated in Chemical Engineering and obtained a PhD in Process Engineering from the University of Wales (Great Britain). From 1997 to 2009, he held various management positions at Nestlé, acting among other positions as internal Management Consultant at Swiss headquarters, as Director of Innovation for Nestlé Mexico, and as Director of the Chocolate Centre of Excellence in Switzerland. He has been Chief Technology Officer at Bühler since 2010. Furthermore, he is on the board of the academic institutions Wyss Institute, UNITECH and IFNC-EPFL.

Andreas R. Herzog (1957, Swiss) Chief Financial Officer After graduating in Business Administration, Andreas R. Herzog continued his studies in various postgraduate courses in marketing and finance management at business schools in France, Canada, and the USA. He occupied management positions at Ciba-Geigy, Swatch and Swarovski. During his professional career he has worked in Switzerland, Mexico, Colombia, Ivory Coast and Germany. Andreas R. Herzog has been CFO of Bühler Group since 2002. Outside of Bühler he is a member of the board of CCS Holding AG, Leicom AG and the advisory board of Commerzbank in Germany. As of May 2015, he is also a member of the board of Bertrams AG.

Dieter Voegtli (1958, Swiss) Head of Region Asia Dieter Voegtli is a Mechanical Engineer (Swiss Federal Institute of Technology in Zurich, ETH) by training and holds an MBA from INSEAD. He started his career in global power plant commissioning and as a Software Development Manager for ABB. Following that, he worked for eight years as Technical Director of Roche China Ltd. Dieter Voegtli has been President of Bühler Group China and Asia Pacific since 2009, after serving as President of Bühler China since 2004.

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Samuel Schär (1975, Swiss) Chief Executive Officer Advanced Materials After obtaining a diploma as a Physics Engineer from the Swiss Federal Institute of Technology in Lausanne (EPFL) and accumulating three years of experience with the consultancy McKinsey, he joined Bühler in 2002, where he took charge of the Nanotechnology business unit in 2005. From 2009 to 2013, he bore overall responsibility for the Grinding & Dispersion business area, into which he integrated the Nanotechnology business unit. He has headed the Advanced Materials business since 2013 and was appointed CEO of Advanced Materials as of September 2014.

Holger Feldhege (1968, German) Head of Manufacturing & Logistics Holger Feldhege graduated in Business Administration and holds a PhD in Production Management. He has extensive experience in production, engineering, and logistics. For the past 13 years, he worked at ThyssenKrupp Elevator, spending more than seven years in Asia. Upon returning to Germany in 2010, Holger Feldhege took on the position of CEO Manufacturing for Central, Eastern, and Northern Europe and later Senior Vice-President Manufacturing Elevator for the worldwide group. In 2014, Holger Feldhege joined Bühler as Head of Manufacturing & Logistics.

Dipak Mane succeeded Christof Oswald as Chief Human Resources Officer as of July, 2015. Member of the extended Executive Board.

Dipak Mane

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(1960, Indian) Chief Human Resources Officer After completing his studies in Chemical Engineering at the Indian Institute of Technology, Dipak Mane worked in India for several years as an engineer in various positions. He joined Bühler India in 1992 as one of the first local employees. Step by step he built Bühler India, starting in 2000 as Managing Director and continuing from 2010 onward as Head of Region South Asia. In July 2015, he assumed the position of Chief Human Resources Officer from Christof Oswald and replaced him as a Member of the extended Executive Board.

Christof Oswald

(1961, Swiss) Chief Human Resources Officer Switzerland After completing his apprenticeship at Bühler, Christof Oswald continued his education in commerce and held various functions in development and customer projects for all divisions. In the course of this activity, he acquired broad management experience, which he continuously deepened as Information Technology Project Manager and Controlling Unit Manager. From 1993 to 2005, Christof Oswald was the Commercial Manager of the Manufacturing & Logistics division. He has headed Corporate Human Resources from 2006 through 2015 and since July 2015, he is Head of Human Resources Switzerland. Furthermore, he is Chairman of the Raiffeisenbank Regio Uzwil and committee member of the Retirement Fund of Raiffeisen Switzerland.

Governance Bühler Annual Report 2015 72

Advisory Board of Urs Bühler Innovation Fund

Urs Bühler

Hal Gurley

Dr. Matthias Kaiserswerth

(1943, Swiss) Chairman

(1955, Swiss and American) Managing Director, Service Management Solutions, Cisco Systems (Switzerland) GmbH

(1956, Swiss and German) Managing Director, Hasler Stiftung, Berne

Urs Bühler graduated as a mechanical engineer from the Swiss Federal Institute of Technology in Zurich (ETH). After holding a number of positions in Switzerland and abroad, he was appointed to the Corporate Management of Bühler AG in 1975, in charge of sales and development. From 1980 to 1984, he was President of Bühler GmbH, Braunschweig (Germany). In 1986, Urs Bühler was appointed CEO of Bühler in Uzwil. He handed over the executive management duties of the company to Calvin Grieder at the beginning of 2001. Urs Bühler has been a Member of the Board since 1981, from 1991 as its Vice-Chairman and from 1994 to 2014 as its Chairman. He was a member of the board of several Swiss companies.

Hal Gurley holds Bachelor’s and Master’s degrees in Electrical Engineering from the Georgia Institute of Technology (USA), and an executive MBA from the Institute IMD (Switzerland). Before moving to Switzerland in 1995, Gurley was President and Founder of Automation Intelligence, an advanced systems integration and software development firm based in the USA specializing in realtime communications and control systems for industrial, robotic, and military applications. Prior to joining Cisco in 2000, Gurley was Director Internet / IP at Swisscom. Before he moved into a global sales role in 2013, Gurley worked for over ten years in Cisco’s management and strategy consulting organization, engaging with service provider customer executives to accelerate business success using internet and cloud technologies for a competitive advantage. In his global sales leadership role, Hal Gurley is responsible for Cisco’s Cloud / Network Management and Automation software portfolio and goto-market execution. He also serves as sole Managing Director and legal representative of Cisco Systems (Switzerland) GmbH.

Dr. Matthias Kaiserswerth studied Computer Science at the Friedrich-Alexander University in Erlangen-Nuremberg (Germany) and at M cGill University in Montreal (Canada). He obtained his PhD in Engineering from Erlangen University. From 1988 to 2015 Dr. Kaisers werth worked for IBM. He has spent almost his entire career as a researcher in the areas of high-performing communication and security in Switzerland and the USA apart from mid-2002 to the end of 2005, when he was responsible for the global IBM business relations with a large international industrial customer. For eleven years Matthias Kaiserswerth was Director of the IBM Research Laboratory in Rüschlikon (Switzerland) until he became Managing Director of the non-profit Hasler Stiftung in Berne, in May 2015. This foundation supports education, research, and innovation in information and communication technologies. Dr. Kaiserswerth is member of the Federal Commission for Technology and Innovation.

Governance Bühler Annual Report 2015 73

Edward S. Steinfeld

Ian Roberts

(1966, American) Professor of Political Science; Director, Thomas J. Watson, Jr. Institute for International and Public Affairs, Brown University

(1970, British) Chief Technology Officer

Edward S. Steinfeld studied Government and Political Science at Harvard University (USA) and holds a PhD in Political Science. From 1996 to 2013, Steinfeld was a professor of Political Economy and Management at the Massachusetts Institute of Technology (USA). He also served as a visiting scholar at the Tsinghua University School of Public Policy and Management in Beijing from 2012 to 2013. From 2005 to 2013, he was Director of the China Energy Program at the MIT Industrial Performance Center. In 2013, Steinfeld moved to Brown University (USA), where he currently directs the Watson Institute for International and Public Affairs as well as the Brown China Initiative and is a Professor of the Department of Political Science. Beside his university engagement, Edward Steinfeld is a member of various boards of directors, academic and advisory boards in the USA, Asia, and Europe. In 2012, he was appointed as a Member of the China Advisory Board of Bühler Group.

Ian Roberts graduated in Chemical Engineering and obtained a PhD in Process Engineering from the University of Wales (Great Britain). From 1997 to 2009, he held various management positions at Nestlé, acting among other positions as internal Management Consultant at Swiss headquarters, as Director of Innovation for Nestlé Mexico, and as Director of the Chocolate Centre of Excellence in Switzerland. He has been Chief Technology Officer at Bühler since 2010. Furthermore, he is a member of the board of the academic institutions Wyss Institute, UNITECH and IFNC-EPFL.

Urs Bühler Innovation Fund

The Urs Bühler Innovation Fund (UBIF) was established in 2014 to support the company’s innovation efforts. Bühler invests roughly 5 % of its turnover in research & development every year – developing breakthrough technologies and services to strengthen Bühler’s market position as well as exploiting new opportunities to stay ahead of the innovation curve. The Advisory Board, managing the UBIF, focuses on accelerating the innovation process within the company as well as on its advancements in the field of Internet of Things.

Governance Bühler Annual Report 2015 74

Collaboration Principles

Permitted external activities of the Board of Directors and the Executive Board Bühler’s Articles of Incorporation provide for a certain restriction of the permitted external activities of the members of the Board of Directors. Members of the Board of Directors may not hold more than four additional mandates in listed companies, eight additional mandates against remuneration in unlisted companies and eight unpaid additional mandates. Not included in these limitations are mandates in companies affiliated with Bühler, corporate mandates of Bühler and mandates in associations, foundations, employee welfare foundations, charitable organizations and other comparable structures. However, no Board member shall hold more than twenty such additional mandates. Mandates refers to mandates in the supreme governing body of a legal entity registered in the commercial regis ter in Switzerland or elsewhere. Members of the Executive Board are limited to two mandates at public companies or other legal entities against remuneration and four unpaid mandates. Elections and term of office of the Board of Directors Bühler’s Articles of Incorporation provide for the annual election by the General Assembly of all Board members, its Chairman, and the members of its Remuneration Committee. Term of office shall be one year, starting with the General Assembly at which each individual member is elected and ending with the next following General Assembly. The members of the Audit Committee are annually elected by the Board of Directors. Election date and attendance For the dates of first election to the Board of Directors, please refer to the individual curriculum vitae of each Board member on page 69. At the General Assembly, the Board of Directors gives account to the shareholders on the attendance of Board and Committee meetings by each individual Board member. Audit Committee The Audit Committee shall monitor the integrity of the financial statements of the Company, including its annual report. It promotes effective communication between management, internal and external audit. The Audit Committee regularly reviews the functionality and effectiveness of the internal control system. It supports the Board of Directors in corporate governance issues. Remuneration Committee The Remuneration Committee determines and agrees with the Board of Directors on the policy for the remuneration of the members of the Board of Directors and of the Executive Board. It approves the design of, and determines targets for any performance-related compensation schemes operated by the Company and approves the total annual payments made under such schemes. Within the parameters of the agreed policy the Remuneration Committee determines the total individual remuneration package for each member of the Board of Directors as well as of the Executive Board and prepares the remuneration report.

Governance B端hler Annual Report 2015 75

Work method of the Board of Directors and its committees Board meetings are held as often as matters require or upon the request of a Board member, but at least four times per year. The agenda of the meeting shall be announced when it is convened and pertinent information, if needed, shall be sent in good time to each Board member. On unannounced items the Board can only decide if all members of the Board are in attendance. Decisions may also be taken by circulation, provided that none of the Board members request a formal meeting. Meetings of the Board Committees are convened separate from the Board meetings and scheduled as often as business requires. The Board of Directors receives verbal updates after each meeting of its Committees by their Chairperson. Areas of responsibilities The Board of Directors is responsible for the ultimate direction, strategic supervision and control of the management of the Company, and for other matters which are, by law, under its responsibility. Such inalienable duties include, essentially, (i) the ultimate management of the Company, (ii) the determination of its organization, (iii) the structuring of its accounting system and of the financial controlling, (iv) financial planning, (v) the appointment, removal and ultimate supervision of persons entrusted with the management and representation of the Company, (vi) the preparation of the business report as well as the General Assembly and the implementation of its resolutions. Executive Board The Executive Board is responsible for all areas of operational management of the Company which are not reserved to the Board of Directors. The Executive Board is chaired by the Chief Executive Officer. Urs B端hler Innovation Fund (UBIF) The Advisory Board of the Urs B端hler Innovation Fund supports and advises the Board of Directors in innovation strategy matters as well as in defining and executing an innovation strategy that provides future-oriented answers to market trends and the needs of current and future customers. External auditors The external auditors are appointed at the General Assembly and present the outcome of the audit to the Audit Committee.

Governance Bühler Annual Report 2015 76

Compliance

Effective corporate governance Effective corporate governance is a precondition for Bühler to ensure a long-term and sustainable increase of its corporate value. We base this both on the Swiss Code of Best Practice for Corporate Governance and the OECD Principles of Corporate Governance. Corporate governance at Bühler is organized with the interests of its stakeholders in mind, including customers, employees, suppliers, and public communities. They also comprise compliance with environmental and social standards as well as an uncompromising commitment to financial integrity. As an international Swiss company, strict observation of local laws on a global scale and systematic and continuous monitoring of compliance in all markets are indispensable for Bühler. This is the only way to prevent operating risks and an impairment of reputation which might be caused by violation of compliance rules. An active Code of Conduct The Code of Conduct is part of the so-called “Bühler Essentials”. It serves all employees as a beacon showing them how to live the Group’s core corporate principles (Trust, Respect, Recognition, Involvement, and Passion) in their day-to-day jobs. It states what is expected of employees and business partners, defines the standards governing compliance with laws and regulations, and includes the fundamentals of communications, employee rights, health and safety, and financial integrity. Bühler regularly reviews its own principles of corporate governance to ensure that they are up to date. Our Code of Conduct has been reviewed and now also includes binding standards for our business partners. The Code of Conduct is being continously adjusted to ongoing changes in the environment. Clear rules against corruption and bribery The so-called ABC (Anti Bribery & Corruption) rules against bribery and corruption unmistakably state that no violations will be tolerated. They concern in particular collaboration with agents. It is mandatory for all employees in procurement, sales, and management functions to undergo a comprehensive online training program (Web Based Training, WBT) after they have joined the company and to pass a final test. New compliance organization structure proves its effectiveness Bühler further decentralized the organizational structure of its compliance function in 2014. Since then, a regional compliance officer has acted as the first contact in eight Bühler regions, except for compliance cases involving special risks, which continue to be handled directly by the Compliance Board. This decentralization has greatly streamlined and accelerated the related processes. This is also because linguistic barriers have been eliminated and the regional compliance officers are familiar with the local regulations and conditions.

Governance Bühler Annual Report 2015 77

Redesigned compliance reporting In the course of the reorganization of the compliance function, also the r eporting process was redesigned. Clear accountability and defined actions ensure that compliance-related incidents are systematically reported to the central Compliance Board. This transparency is a precondition for ensuring that the company can gain the ne cessary insight from such incidents and take the required measures in response. We are happy to report that the awareness of the benefits of a transparent compliance reporting system have become increasingly acknowledged. Trade compliance The newly set up Trade Compliance Manager function shall ensure that the goods exported out of Switzerland in the context of free-trade agreements are correctly declared and cleared through customs. This function became necessary as the complexity of customs formalities has increased drastically due to the numerous cross-border purchases of goods and services. Group Internal Audit Group Internal Audit regularly and systematically reviews processes within the company. During the audits of the entities, Internal Audit also verifies worldwide implementation of our Code of Conduct. A further focus on anti-corruption and anti-bribery audits in 2014 was carried out on the basis of updated audit procedures. In countries considered at risk, auditors interview the local management to determine how to approach and address business ethic issues. A special focus in the audit procedures is set on agency agreements and travel. Group Internal Audit also examines the effectiveness of internal controls for preventing corruption such as the four-eyes principle or segregation of duties. In addition, Group Internal Audit is responsible for investigating suspected violations of our Code of Conduct or fraud. Risk management Bühler reviews the risk geography of the Company on a regular basis. It has e stablished an internal risk management process in order to manage, control, and contain identified risks. This process is under the responsibility of the Board of Directors.

Governance Bühler Annual Report 2015 78

Remuneration Report

Recruit, develop and align Bühler practices excellence in Human Resources, to motivate and develop its employees and in order to achieve the Bühler mission. The company wants to establish itself, as the best in class for employee development, across the entire career span of its people. The Remuneration Policies are designed with this purpose in mind.

1 Remuneration governance a) Overview The Members of the Remuneration Committee (RC) are elected by the General Assembly. The Board of Directors (BoD) appoints the Chairman from among the elected members. The RC supports the BoD in the remuneration issues defined here, with responsibilities being retained by the BoD. The RC is in charge of defining and periodically reviewing the Remuneration Policy. It prepares all the relevant decisions of the BoD in the area of remuneration, for the Members of the BoD, Members of the Executive Board (EB), and submits its proposals (remuneration type and annual remuneration) to the BoD. In addition, it submits proposals to the BoD defining the annual goals for success and performance related remuneration, and then defines the circle of potential recipients of this success and performance related remuneration. b) Remuneration Committee For the year under review, the members of the RC were Peter Quadri (Chairman), Dr. Konrad Hummler, and Dr. Maya Bühler. Permanent guests were the CEO and the Head of Corporate HR. External Advisors were invited relevant to individual agenda items. Four meetings were held. The RC Chairman reported to the BoD after each meeting and the minutes were kept and distributed in a timely manner. c) Authority chart SUBJECT

RECOMMENDATION

FINAL APPROVAL

Definition of Remuneration System and Policy for remuneration paid to the Board of Directors and the Executive Board

Board of Directors

Development of variable remuneration schemes plus approval of all annually paid performance-related remuneration at Bühler Group

Board of Directors

Definition of individual remuneration, including bonus, variable portion, shares-related remuneration, etc., to the Executive Board and the Board of Directors

Board of Directors General Assembly

Governance Bühler Annual Report 2015 79

2 Remuneration principles Bühler is committed to performance and market related remuneration. Success as a result of sound individual performance plus the success of the Organization will impact the remuneration. All employees, including the Executive Board, shall undergo a formalized annual performance appraisal process (EPM – Employee Performance Management). The Individual Performance Goals are defined and agreed upon jointly with each employee at the start of the fiscal year. The financial success of the organization, which is measured on the basis of EBIT, also impacts performance related remuneration.

Principles of remuneration policy: Fairness, consistency, and transparency

The remuneration schemes shall be simple, clearly structured, and transparent. They give consideration to the responsibilities and powers of the individual functions, thereby ensuring fair remuneration at all levels.

Performance-related remuneration

Variable remuneration is directly tied to the success of Bühler (EBIT) and to individual performance (EPM).

Long-term success sharing

Part of the remuneration of the Executive Board shall be paid in the form of blocked phantom options in order to ensure long-term sharing in the success of Bühler.

Orientation toward the labor market

In order to attract and retain talent, qualified and dedicated management staff and employees, remuneration shall be oriented toward the market environment and be regularly subjected to benchmarking.

Bühler values: TRRIP

The remuneration policy is oriented toward the Bühler values of TRRIP (Trust, Recognition, Respect, Involvement, Passion). These values are incorporated in the above-mentioned principles and determine the “Bühler way of doing business” in all respects.

Governance Bühler Annual Report 2015 80

3 Remuneration elements Overall remuneration model for employees and the Executive Board: INSTRUMENT

PURPOSE

INFLUENCING FACTORS

Fixed annual basic salary

Monthly cash remuneration

Regular, predictable remuneration for the specific function

Sphere of work, complexity, and responsibility of the function, competencies, and experience of the function owner, benchmarks

Performance- related variable portion

Annual cash remuneration

Remuneration for performance

Success of the organization (EBIT) and individual per formance (EPM) on an annual basis

Deferred compensation plan

Deferred compen sation plan with a vesting period of 3 years

Sharing in long-term success

Hierarchical position of the function within the organization

Other employee benefits

Pension and insur ance schemes; other fringe benefits

Protection against risks and coverage of expenses

Local legislation and market practice

Governance Bühler Annual Report 2015 81

4 Remuneration of the Board of Directors The members of the Board of Directors shall receive a fixed cash payment and be remunerated as Committee Members (if applicable). OFFICE

Basic remuneration

Membership in the Board of Directors

Additional remuneration

Chairmanship of the Board of Directors Vice-Chairmanship of the Board of Directors Chairmanship of the Audit Committee Activity in the Audit Committee Chairmanship of the Remuneration Committee Activity in the Remuneration Committee Other Committee Chairmanship / Memberships Other activities

Expenses

Only expenses incurred are reimbursed

5 Remuneration of the Executive Board The Members of the Executive Board shall receive a basic salary, a variable cash remuneration portion, employer contributions to pension funds and social security institutions, and long-term remuneration in the form of a deferred compensation plan with a vesting period of 3 years. In addition, the remuneration package also includes transportation and housing allowance plus a life insurance premium.

Sustainability B端hler Annual Report 2015 82

IV Sustainability Overview Ecological Sustainabilty Social Sustainabilty Economic Sustainabilty GRI G4 Content Index Sustainability at Work

Sustainability B端hler Annual Report 2015 83

Sustainability Report

Practiced Everyday An independent and sustainable business policy is at the core of the success story of B端hler, which has been in the making for more than 150 years. We strive to continuously improve our products and services in order to generate sustainable added value for our customers. In this effort, we give great consideration to the ecological, economic, and social impact of our activities. By defining clear and quantifiable goals, we aim at helping to gradually improve the quality of life and the environment. Our sustainability concept with its promises and goals supports us in this effort and provides 足transparency for all stakeholder groups. Our Sustainability Report testifies to our progress and also serves as a beacon for meeting current and future challenges. It shows where action is needed, documents improvements, and allows us to learn from one another on the basis of best practices.

Sustainability Bühler Annual Report 2015 84

Overview Sustainability based on three pillars

Ecological sustainability

Social sustainability

Economic sustainability

Energy consumption of our plant and equipment in operation at our customers’ sites accounts for a large share of the total burden on the environment. We have therefore set ourselves the goal of reducing both the ecological footprint of our own sites and that of our customers along their value chains. It is our declared goal to become the leader in these capabilities and to set the standard for products that spare resources. This enables us to make a substantial contribution to creating sustainable value chains. The reduction of the ecological footprint therefore goes hand in hand with new technologies for resource- saving production of healthy and nutritious foods, cost reductions, productivity gains, and reduction of food losses and waste.

Motivated, carefully trained employees Sustainable business success is a preand dedicated management staff are condition for Bühler to meet the ecokey to our success, based on a corpo- logical and social expectations that are rate culture that fosters personal initiative placed on our organization. We deliberand responsibility. Bühler is committed ately define long-term profitability targets, at all levels to the training and continued so as to secure our independence and education of its employees. As a global freedom. It is important to us to ensure organization, Bühler considers the cul- that all our market regions benefit from tural diversity of its employees to be one our value generation. of its major strengths. This is reflected in its efforts to fill also management-level positions with local candidates whenever possible. All employees have equal rights, regardless of their origin, nationality, religion, or gender.

Sustainability for us also means our preparedness to engage in partnerships. We are continuously expanding our innovation network by closely engaging ever more with academia, with our cusOur process technologies in die casting, tomers, and with suppliers. In collaboradispersion and surface coating help im- tion with international organizations, we prove sustainable mobility and the ener- are committed to improving the living gy efficiency of buildings. conditions and the education of people in all the markets we operate.

Bühler materiality aspects

Ecological

Social

Economic

Food Security, Safety & Nutrition

Health & Safety

Long-Term Profitability

Resource Efficiency

Culture of Continuous Learning

Corporate Governance

Environmental Footprint of Our Sites

Fair & Equal Treatment

Contribution to Local Economies

Sustainability Bühler Annual Report 2015 85

Reporting in alignment with GRI-standards

Transparent reporting in line with the latest Guidelines of the Global Reporting Initiative (GRI) Since 2013, we have decided to embrace the Guidelines of the Global Reporting Initiative to measure and report the impact of our sustainability strategy. We firmly believe that the transparent assessment of our progress will guide us to improve our sustainability commitments and hence our overall business performance. We are therefore committed to communicating relevant and accurate information to our stakeholders, and to improving the quality of our reporting year for year. In our first step in 2013, we defined the most relevant economic, ecological and social aspects of our sustainability strategy through an internal assessment according to the GRI Guideline (G3.1, Level C), and identified 19 indicators, which were used to measure our performance at our 5 major company sites. In a second step in 2014, this approach was strengthened by extending it to 11 sites.

Materiality analysis: What matters most to us and our stakeholders Our stakeholders are primarily our employees and customers as well as suppliers and other business partners, academia, the communities in which we operate, regulatory authorities, governments and not-for-profit organizations, and our employees as our major stakeholders. To identify the topics that affect our stakeholders and that are particularly relevant to our long-term success, we have conducted an intensive review of our materiality analysis at the corporate level by including all the key corporate functions that are representative of our stakeholders’ opinions, as well as external experts from academia and the private sector. The result is a portfolio of 9 materiality aspects. The progress of our initiatives relative to the materiality aspects is measured through a revised set of 37 indicators, which are aligned with our long-term business strategy and are reported in a quantitative form. Also, most of the indicators reflect the cumulative performance of all company sites. These indicators are derived from the “Core” application level of the GRI G4 guidelines, but we also report a number of additional indicators, which are specifically relevant to our business.

In 2015 our sustainability reporting has been completely revised and upgraded following the latest standards of the GRI G4, thus setting a major milestone in our reporting approach. This process included the complete review of the sustainability aspects that matter most to our stakeholders and to our company (cp. Materiality Analysis next column). E very year, our materiality analysis and our sustainability indicators will be reviewed and extended referring to the guidelines We want to further strengthen our enof the Global Reporting Initiative. gagement and focus at a global and local level on the aspects most relevant to us and our stakeholders.

Sustainability Bühler Annual Report 2015 86

Ecological Sustainability

MATERIALITY ASPECT

OUR COMMITTMENTS

NOTES

SUSTAINABILITY GOALS

Food Security, Safety and Nutrition

We set the standards for the reduction of food losses and for safe and healthy foods.

We continuously improve our solutions for safe and healthy foods.

Resource Efficiency

We set the standards for resource-efficient solutions.

We continuously improve our solutions for resource efficiency.

Environmental Footprint of Our Sites

We reduce the environmental footprint of our sites world-wide.

We reduce energy and water consumption as well as CO2 emissions and waste.

We ensure environmental compliance in our supply chain.

1 Solutions for reducing food losses along the value chain

such as aflatoxin have since recently also been encountered in northern latitudes, after occurring especially in the tropics up to now. Part of this is to be blamed on climate change. Early and selective cleaning of the grain and separation of individLess food losses ual mold-infested kernels by sorting technology ensure that The solutions developed by Bühler for eliminating fungal toxins these health-impairing substances are removed from the food at an early stage reduce grain losses during processing. Gen- chain. A combination of mechanical cleaning, aspiration, and tle drying and processing of rice and corn (maize) also help optical sorting using Sortex technology enables the mycotoxin minimize losses. contamination levels to be substantially reduced. Advanced cleaning of grain significantly contributes to increasing food In cooperation with universities and partners such as the World and feed safety. Another focus is on hygienic plant and equipEconomic Forum, the Clinton Foundation, the Bill and Melinda ment design. Hygienic design was a core element in roughly Gates Foundation, or Partners in Food Solutions, Bühler seeks half of all the projects handled by the business Grains & Food in to develop solutions suitable for reducing food losses along 2015. The aim is to develop solutions that maximize sanitation the entire value chain. while at the same time improving production efficiency, for instance by reducing cleaning times and reject rates. Ceres, the Food safety new breakfast cereals dryer, meets top sanitation requirements The improvement of food safety is one of the main objectives while at the same time ensuring much more efficient cleaning. of our Research & Development efforts. The focus in this is on developing processes for reducing contamination, for ex- Developing competencies ample, by mold toxins. According to information published by Bühler has set itself the goal of increasing its in-house food the FAO, about 25 % of all vegetable raw commodities are safety know-how. For this purpose, about half of all training infested by mold. Some of them form mycotoxins, which are events worldwide revolved around the subject of food safety toxic for humans and animals alike. Highly toxic mycotoxins and technology, some in collaboration with customers. This

Sustainability Bühler Annual Report 2015 87

KEY PERFORMANCE INDICATOR

GRI G4 ALIGNMENT

ACTUAL 2015

TARGET

Percentage of food-relevant R & D projects with focus on improving food safety.

G4-PR1

Number of employees in key positions to receive training in food safety within 2016.

Additional (related to G4-PR1)

28 %

50 %

498

600

Percentage of food-relevant R & D projects with focus on improving nutrition. Percentage of R & D projects with focus on improving energy efficiency per ton of end product or finished unit.

Additional (related to G4-PR1)

8 %

20 %

G4-EN27, Additional (related to G4-EN6, G4-EN7)

24 %

70 %

Percentage of R & D projects with focus on improving product yield. Percentage of reduction of energy consumption relative to product hours y/y.

G4-EN27

22 %

50 %

G4-EN3/EN6

8.2 %

5 %

Percentage of reduction of CO2 equivalents relative to product hours y/y.

G4-EN15

4.9 %

5 %

Percentage of reduction of water consumption relative to product hours y/y.

G4-EN8/EN10

9.5 %

5 %

Percentage of reduction of waste relative to product hours y/y.

G4-EN23

− 41.4 %

5 %

Percentage of reduction of hazardous waste relative to product hours y/y.

G4-EN23

− 4.9 %

5 %

Percentage of top suppliers that have qualified for Bühler QEHS standards (certified for ISO 9001, ISO 14001, OHSAS 18001).

G4-EN32

Rollout ongoing

100 %

has enabled us to firmly position this subject at the manage- processing pulses into attractive foods. Bühler in its capacity ment level, as well as to introduce it in development efforts as a process technology provider along the entire processing and in sales. The issue of food safety will also be increasingly chain and its strong presence in regions with high consumpintegrated in existing training modules for customers. tion of pulses, such as India, is in an outstanding position to contribute much of experience to this initiative. Healthy foods In 25 % of the research projects of the business Grains & Food, the focus in 2015 was on food quality. Here, Bühler also cooperates with customers and partners in seeking solutions 2 Improvement of energy efficiency to help improve nutrition. This includes process technologies at our customers for developing and processing new protein sources such as pulses and algae. On the other hand, Bühler helps prevent deficiencies in humans and animals with its new microfeeder Less energy consumption systems for highly accurate addition of minute quantities of Our target is to reduce energy consumption per ton of end micronutrients such as vitamins and trace elements to basic product at customers’ sites. A number of concurrent new foods such as flour and to animal feed. developments of the business Grains & Food helped improve energy efficiency in 2015: The Antares Plus roller mill for Healthy pulses grinding grain was equipped with a sensor that optimizes the Pulses are particularly apt to help improve the global food flour yield by improving particle distribution. Other projects situation, especially to cover the protein requirements on the focused on finding a gentler method of drying rice and grain basis of sustainable vegetable sources. The Pulse Partnership and on a new, energy-efficient design of flour mills. What Task Force brings the representatives of the global food value all projects have in common is the fact that their markedchain together around a table. Solutions aim at increasing con- ly lower energy consumption also increases profitability at sumption of pulses and developing suitable technologies for customers’ sites.

Sustainability Bühler Annual Report 2015 88

In the Advanced Materials business, several product develop- 3 We reduce the ecological footprint ments helped improve energy efficiency: Thus, the coating of of all our sites large glass surfaces (Business Area Leybold Optics) improves the insulation of buildings. The following figure may illustrate this point: 12 million square meters of coated glass surface Measuring and reducing the ecological footprint save the electrical equivalent of 500 megawatts of energy One thing we must do in order to achieve our ecological susover 10 years. This equals the power output of a mid-size tainability goals is continuously reduce the burdening of the environment caused by our sites. In 2015, the number of propower plant. duction sites with an ecological footprint that is completely CAP machines for manufacturing coated film capacitors also and continuously monitored was increased from 11 to 17. This stemmed from Leybold Optics. These are used for converting increases the significance of our objective of improving our and feeding renewable energy into the power grid or for pro- environmental performance by 5 % annually. In addition to enducing batteries for electric vehicles. The efficiency of batteries ergy and water consumption, this reduction target now also is also enhanced by the new process technology of Lishen applies to carbon emissions, material usage, plus pollutants (Business Area Grinding & Dispersion) for manufacturing elec- and waste. Special attention is also being paid in this respect trode slurries. The continuous process improves the energy to observing high environmental protection standards in properformance of batteries to a significant extent. duction transfers within the global Bühler production network. In the Business Area Die Casting, lightweight die-cast components of aluminum for the automotive industry allow lighter and thus more energy-efficient cars to be designed and built. Here too, the rule is: Better energy efficiency cuts costs at customers’ sites, which is a precondition for ensuring the success of the new products in the marketplace.

Environmental certifications Environmental certificates are an important step toward improving environmental performance. The environmental management standard ISO 14001 defines the requirements that an environmental management system must meet globally. Beside ISO 14001, three additional Bühler sites were certified in China and India in 2015 according to the ISO standard 9001. Moreover, apart from our site in Braunschweig, which has already been certified, also Bühler Alzenau was awarded the ISO energy management certificate (ISO 50001). Bühler Alzenau succeeded even during the course of certification to cut its energy consumption by a remarkable 800,000 kWh from a year ago. Energy efficiency The goal of cutting energy consumption per productive hour by 5 % was even surpassed in 2015 compared with the previous year with energy savings of 8.2 %. The major Bühler sites Uzwil, Wuxi, and Changzhou reached even above-average performance, with energy reduction rates of 11.4 %, 11.8 % and 27.6 % respectively. In the past five years, Bühler managed to reduce its energy consumption per productive hour by a substantial 15 %. Carbon emissions Bühler has set itself the goal of reducing its carbon emissions per productive hour by 5 % annually. In 2015, this target was well achieved with a total reduction of carbon emissions of 11 %. This result is due to the overall reduction of the energy consumption and the optimization of our energy mix. In 2015, the so-called CO2 footprint of the 17 Bühler production sites was about half the size of the daily CO2 footprint of New York City. Figuratively speaking, the compensation of these CO2 emissions equals the reforestation of a forest that is five times the area of Manhattan. A special distinction was awarded in 2015 by the Loyola University Chicago to our US site BuhlerPrince, Inc. in the form of its “Operations Excellence Award”. A prestigious jury distinguished BuhlerPrince as “Best in Class” for its carefully thought-out breakdown of production-related carbon emissions in conjunction with the carbon reduction measures implemented on the basis of these insights.

Sustainability Bühler Annual Report 2015 89

Material consumption and waste Bühler has a relatively low material consumption, consisting of 14,400 tonnes in 2015, of which 792 tonnes of hazardous materials. Nevertheless, Bühler has set itself the goal of lowering its material consumption, pollutants, and waste per productive hour by 5 % annually. In 2015, this target was not achieved. A series of corrective measures are being defined in order to reduce the material consumption and waste at all our sites, as well as improve the quality of the data records. The proportion of recyclable waste such as paper, wood or metals for Bühler last year amounted to 98 % of the total amount of waste, which is an improvement of 3 % compared to 2014. Water consumption Bühler wants to reduce annual water consumption by 5 % per productive hour, even if the water consumption of our production sites is comperatively low. In 2015 Bühler used a total of 484,045 m3 of water for all 17 sites, which equals the consumption of 10 liters of water per productive hour. Sustainable procurement In order to improve its environmental performance along the entire value chain, Bühler demands appropriate efforts also from its suppliers. By 2020, they must comply with our global quality, environmental, and safety standards on the basis of the standards ISO 9001/14001, ISO 50001, and OHSAS 18001.

Sustainability Bühler Annual Report 2015 90

Social Sustainability

MATERIALITY ASPECT

OUR COMMITTMENTS

Health & Safety

We strengthen our corporate culture of health & safety.

NOTES

SUSTAINABILITY GOALS

We want to increase the safety of our products and our manufacturing locations. We enhance the health and well-being of our employees world-wide.

Culture of Continuous Learning

We pursue our corporate culture of continuous learning.

We enable our employees around the world to increase their level of relevant competencies.

We ensure the sustained availability of core competencies in a dynamic context.

We offer attractive job opportunities and development for young employees. We want to promote our culture of innovation and entrepreneurship across all organizational levels.

We want to enhance the integration of our partners into our innovation process. Fair and Equal Treatment

We strengthen our corporate culture of fair and equal treatment.

1 A corporate culture that lives health and safety

We foster a workplace free from any discrimination.

Also in this context, an OHSAS 18001 certification audit was successfully conducted in the fall of 2015 at the Bühler sites in Appenzell, Uzwil, and Trübbach. These locations have thus triggered a new trend worldwide. Not only have their occupaOccupational safety and safeguarding of health tional safety and health management systems received top Employees’ health and safety and protection against physi- grades, the external auditors were also particularly impressed cal and mental harm is of prime importance to Bühler. Bühler by the exemplary occupational safety awareness of the Bühler strives to offer all its employees a safe and healthy work en- employees and their efforts to prevent accidents on the job. vironment. In addition, we also ensure the safety of visitors to our company during their stay. Bühler has compiled the most Health management important safety-related information and rules worldwide in a The concept of a healthy and balanced work environment short video, based on our mission: no accidents at Bühler and established together with experts stands on different pillars: no accidents at customers’ sites. strengthening of health, reduction of absences, and prevention of disability – and this, in turn, on the basis of employees’ Every accident inside and outside the company and every personal responsibility and an appropriate health culture. In the absence due to sickness is associated for Bühler with un- context of the specialist staff concept of Bühler, Viva shall also necessary efforts, lost labor hours, and expenses. Moreover, help maintain the abilities of employees as they age. accidents and sickness often have serious consequences for the employees affected and their families. In addition, the law Ethical and legal standards of suppliers and an increasing number of Bühler customers also demand Our Code of Conduct has been reviewed and now also inthat safety and health protection be documented at Bühler cludes binding standards for our business partners. The Code sites (for example on the basis of an Occupational Health and of Conduct is being continously adjusted to ongoing changes Safety Assessment Series / OHSAS 18001 certificate). in the environment.

Sustainability Bühler Annual Report 2015 91

KEY PERFORMANCE INDICATOR

GRI G4 ALIGNMENT

Percentage of R & D projects with focus on improving operator safety.

G4-PR1

Number of recordable work-related injuries per 100-full time employees.

Related to G4-LA6

Sickness related absenteeism (days per employee and year, CH only).

G4-LA6

Percentage of all employees who undergo the Employee Performance Management (EPM) process every year.

G4-LA10 and G4-LA11

The number of training days per full-time employee per year.

G4-LA9

Percentage of training costs over total personnel costs per local Learning Center.

Additional (related to G4-LA9)

Percentage of high potentials among all employees.

Additional

2.8 %

5 %

The key positions for the senior functions at management levels 1, 2 and 3 have been defined and potential successors have been determined.

Additional (related to G4-LA12)

100 %

Percentage of all apprentices who successfully pass their final apprenticeship examinations and continue their career at Bühler (CH only).

Additional (related to G4-LA12)

77 %

80 %

Percentage of employees participating in the Bühler Innovation Challenge (every two years).

Additional

34 %

≥ 40 %

Percentage of implemented project ideas from the Bühler Innovation Challenge.

Additional

67 %

75 %

Percentage of projects run in collaboration with partners (suppliers, customers, universities).

Additional

44 %

50 %

Percentage of female employees.

Related to G4-LA12

15 %

≥ 15 %

2 We live a corporate culture of continuous learning

ACTUAL 2015

TARGET

48 %

50 %

2.9

≤ 3.4

≤2

80 %

1.2 %

1 %

Training The Bühler Learning Center established in 2012 provides the roof for all training events worldwide. Based in and controlled by the Corporate Learning Center in Uzwil, it is divided into five Employee development centers in Europe, North America, South America, Asia, and Bühler is convinced that its sustainable success as a company is South East Asia. Its focus is on high-quality training programs closely associated with employing the right people with the right across the core processes of Bühler. By ensuring continuous skills in the right positions. According to the long-term develop- learning at all levels, we can make sure that employees’ skills ment concept of Bühler, employees at all levels are to be promoted are matched to the needs of business. and further trained so as to develop the required abilities also within the company itself. In the Employee Performance Management Evaluations show that in 2015, 1,650 global and regional train(EPM) process, the goals and development steps were systemati- ing events were held with a total of 14,247 attendees. This cally agreed with 80 % of all employees worldwide in 2015. Goals results in 22,384 training days for the whole year or 1.2 days and competencies are assessed from October 1 through the end for each full-time employee. The training costs per local training of January 2016. This process has been facilitated by the revised center in 2015 reached the specified target of about 1 % of and therefore improved internet-based HR software. The EPM total staff costs. process requires a shared understanding of values, goals, and performance. It supports employees and supervisors in achieving corporate goals and in employees’ individual development and career planning and serves as a basis for the talent management and succession planning process. The EPM process is conducted during the first quarter of each year and is reported in KPI form in the annual report of the following year. The KPIs reported in this annual report are based on the 2014 EPM process.

Sustainability Bühler Annual Report 2015 92

Talent management Succession planning In view of the increasing lack of specialists and demographic Key positions and potential successors were defined on a developments, in-house development of key staff both for spe- global scale for the first of three management levels. cialist and management positions is particularly important. In 2015, the share of high potentials relative to the total workforce Vocational training was still slightly below the target of 5 %. For 2016, measures In 2015, Bühler celebrated its Vocational Training Centenaare planned in the areas of diversity, branding, and marketing, ry with various public and in-house events. Since 1915, the in order to increase the high-potential pool with internal and company has trained over 7,500 specialists in Switzerland. At external recruitment and to tap the potential of hitherto unused present, 600 apprentices across the world are learning one of resources. ten different vocations, and more than 1,000 former apprentices are now regular Bühler employees. With the Master of Bühler Management (MBM) system, Bühler offers talented employees attractive in-house management The strategic target of retaining 66 % of all apprentices in the and leadership training. Thanks to its international partici- organization after they have completed their basic vocational pants, this fosters the creation of a Group-wide network while training was exceeded in 2015 with 77 %. Unlike many other also promoting leadership and management skills. In order to companies in Switzerland, Bühler does not have any difficulty directly put what they have learned in the three-week course finding suitable candidates for filling its open apprenticeships. into practice, the attendees work in project groups on innovation projects which are then presented to the Executive Board Together with the Vocational Training and Continuing Education as the completion of their continued education. The MBM Center Wil-Uzwil, the global classroom called “ClassUnlimited” participants of the 2014 class presented their projects to the was further developed. The new pedagogic concept combines Executive Board in October 2015. All projects were approved the benefits of the classic vocational training approach with the for execution, which is great proof of the sound return of invest- possibilities offered by the digital media. ClassUnlimited 2.0 ment that the MBM generates. The 2015 MBM began in June enables Bühler apprentices to spend a longer period of time 2015 with 29 participants from a total of 10 different countries abroad (up to 6 months) while still completing their vocational and 14 different Bühler sites. training. In August, a class for the first time successfully completed their vocational training outside Switzerland at Bühler Minneapolis. This training was held in collaboration with a local school. The expertise of Bühler in the field of vocational training was again highly praised in 2015 by decision-makers from politics and business inside and outside Switzerland. Trainee program Since 2015, Bühler has offered a three-year international trainee program for university graduates with a Master’s or PhD degree or a track record of a few years of consulting experience (pilot project to be officially rolled out in 2016). Following this three-year period of training with assignments in different business units and at different Bühler sites, 80 % of all trainees are expected to enter into regular employment. Bühler deliberately selects the trainees (max. 20 per year worldwide) in an extremely restrictive and quality-focused manner. Internal “Innovation Challenge” contest Bühler regularly promotes the development of entrepreneurial ideas, for example, by organizing innovation contests. In the Innovation Challenge 2014, four teams were nominated as winners. In 2015, they all worked intensely on putting their business ideas to practice, coached by an expert sponsor from the Executive Board. The four ideas – a compact chocolate molding machine, a new animal feed mixing process, an online spare parts platform, and a food safety validation service – will likely be launched next year. Then, also the next Innovation Challenge is planned for 2016.

Sustainability B端hler Annual Report 2015 93

3 A corporate culture based on fairness and equal rights Fairness and equal rights As a global Group, B端hler considers the cultural diversity of its employees to be one of its greatest strengths. As a result, also the management level positions are whenever possible filled with local candidates. All employees have equal rights, regardless of their origin, nationality, religion, or gender.

Sustainability Bühler Annual Report 2015 94

Economic Sustainability

MATERIALITY ASPECT

OUR COMMITTMENTS

Long-Term Profitability

We deliver long-term profitability.

NOTES

SUSTAINABILITY GOALS

We remain a profitable and independent business. We increase our employer attractiveness for best talents.

Corporate Governance

We ensure an effective approach to corporate governance.

We assure legal compliance and apply our code of conduct world-wide.

Contribution to Local Economies

We contribute to local economies.

We contribute to the development of local communities.

1 Sustainable profitability Financing growth Sustainable business success is a basic requirement for Bühler to also fulfill its expected ecological and social duties. We therefore deliberately define long-term profitability targets so as to ensure our entrepreneurial freedom. This also means that our growth is 100 % self-financed. In line with this philosophy, we continue to strive to avoid accepting any interest-bearing equity from third parties. Moreover, a liquidity plan for the next five years ensures that sufficient liquid funds will be available for replacement and strategic investments.

Staff turnover The turnover rate is a good indicator showing whether Bühler succeeds in recruiting adequate job applicants and fulfilling employees’ expectations in the organization. In 2015, the fluctuation rate was equal to 8 %.

2 Assurance of modern corporate governance

Clear rules against corruption and bribery Attractive employer Online training imparts the rules for preventing corruption and Carefully trained and motivated employees are the social cap- bribery. This web-based training is mandatory for all employital of any company. But the struggle for talents and special- ees in sales, procurement, or management functions. New ists in the labor market is becoming increasingly fierce, also employees from these functions are automatically nominated due to demographic developments. Bühler has taken various and must attend the course and pass the final test. By the end actions in the areas of employee development, branding, and of 2015, 97 % of all nominated new employees had completed marketing to become more globally known as an attractive this web-based training and are therefore now familiar with the employer. At the same time, tight controlling shall ensure that globally applicable compliance rules. these measures lead to the desired results.

Sustainability Bühler Annual Report 2015 95

KEY PERFORMANCE INDICATOR

GRI G4 ALIGNMENT

ACTUAL 2015

TARGET

100 % own financing of growth.

Additional (related to G4-EC1)

100 %

Number of applications received per open position (CH only).

Additional

Best practice in definition with peers

Percentage of terminations within the first 12 months of employment (CH only).

Additional

9 %

≤ 5 %

Percentage of terminations during the probation period (CH only).

Additional

1 %

≤ 1 %

Percentage of high potentials after 2 years of service.

Additional

2 %

3 %

Percentage of employee fluctuation.

G4-LA1

8 %

≤ 8 %

Percentage of new employees in the sales, purchasing, and management functions who have attended the online training against corruption and bribery.

Additional (related G4-SO8)

97 %

≥ 95 %

Number of companies audited on corruption prevention.

G4-SO8

Number of companies audited on fraud prevention.

G4-SO8

Number of relevant compliance fines (> CHF 200,000).

G4-SO8

Number of whistleblowing cases per year.

Additional (related to G4-SO8)

Best practice in definition with peers

Number of all compliance cases.

Additional (related to G4-SO8)

Best practice in definition with peers

Percentage of our management staff locally recruited.

Additional

Reported from 2016

90 %

Internal auditing In 2015, the internal auditing function audited 8 companies in depth. In talks with the company management and with employees selected at random, the Group Internal Audit function also checks knowledge and compliance with the rules.

3 Contribution to local economic development

Regionally oriented business policy Strong local presence is important to Bühler, also when it comes Compliance reporting to recruiting management staff. At the senior management levObservation of the compliance rules is permanently monitored el, about 90 % of all positions are to be filled by staff from the at the corporate level. Fines may result from infringement of relevant regions. In addition, employee training is increasingly taxation laws, provision and use of goods and services, vio- being moved to the regions. Bühler seeks to collaborate with lation of safety and environmental regulations, and especially local universities or institutes of education or to introduce provcorruption and bribery. The level of the fines imposed and en concepts such as in-house apprentice training also at other possible increases in the number of monetary fines provide locations. With this regionally oriented business policy, Bühler the standard for Bühler, against which it measures its success is also helping develop local economies. Thanks to this newly of sustainable compliance. In 2015, no cases were reported in introduced program, the management positions filled by regionwhich the total damage sum exceeded the amount considered al staff will be tracked from 2016. as critical.

Sustainability Bühler Annual Report 2015 96

Global Reporting Initiative (GRI) G4 Content Index STANDARD DISCLOSURE

DESCRIPTION

Strategy and Analysis G4-1

Statement from the CEO on sustainability

Organizational Profile G4-3

Name of the organization

G4-4

Primary brands, products, and / or services

G4-5

Location of the organization’s headquarters

G4-6

Number of countries where the organization operates, and names of countries where either the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report

G4-7

Nature of ownership and legal form

G4-8

Markets served (including geographic breakdown, sectors served, and types of customers and beneficiaries)

G4-9

Scale of the reporting organization

G4-10

Total workforce by employment type, employment contract, and region, broken down by gender

G4-11

Percentage of employees covered by collective bargaining agreements

G4-12

Description of the supply chain of the organization

G4-13

Significant changes during the reporting period regarding size, structure, ownership or supply chain

G4-14

Explanation of whether and how the precautionary approach or principle is addressed by the organization

G4-15

Externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or endorses

G4-16

List memberships of associations (such as industry associations) and national or international advocacy organizations in which the organization: – Holds a position on the governance body – Participates in projects or committees – Provides substantive funding beyond routine membership dues – Views membership as strategic

Identified Material Aspects and Boundaries G4-17

List of entities included in the organization’s consolidated financial statements or equivalent documents

G4-18

Process for defining report content

G4-19

List of Material Aspects identified in the process for defining report content

G4-20

Aspect Boundary within the organization for each Material Aspect

G4-21

Aspect Boundary outside the organization for each Material Aspect

G4-22

Explanation of the effect of any restatements of information provided in earlier reports, and the reasons for such restatement

G4-23

Significant changes from previous reporting periods in the scope and Aspect Boundaries

Stakeholder Engagement G4-24

List of stakeholder groups engaged by the organization

G4-25

Basis for identification and selection of stakeholders with whom to engage

G4-26

Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group

G4-27

Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting

Report Profile G4-28

Reporting period (e.g. fiscal / calendar year) for information provided

G4-29

Date of most recent previous report

G4-30

Reporting cycle

G4-31

Contact point for questions regarding the report or its contents

G4-32

Table identifying the location of the Standard Disclosures in the report

G4-33

Policy and current practice with regard to seeking external assurance for the report

Governance G4-34

Governance structure of the organization, including committees of the highest governance body responsible for decision-making on economic, environmental and social impacts

Ethics and Integrity G4-56

Fully

Values, principles, standards and norms of behavior

Partially

REPORTED

Sustainability Bühler Annual Report 2015 97

ANSWER OR CROSS REFERENCE

Annual Report 2015 – Chairman / CEO Statement See also: www.buhlergroup.com à Home à About Bühler à Corporate Profile “Committed to sustainability”

www.buhlergroup.com; Annual Report 2015 – Outside cover Annual Report 2015 – Our Business See also: www.buhlergroup.com à Home à Industry Solutions / Process Technologies / Products / Services www.buhlergroup.com à Home à About Bühler à Worldwide à Bühler Switzerland (Headquarters) Annual Report 2015 – Global presence www.buhlergroup.com à Home à About Bühler à Worldwide www.buhlergroup.com à Home à About Bühler à Corporate Profile à History www.buhlergroup.com à Home à About Bühler à Worldwide Annual Report 2015 – Key Figures and Financial Report Bühler workforce is comprised of 11,629 staff persons, and approximately 96 % of the total workforce are full-time employees. Regional breakdown: North America 7 %; South America 4 %; Switzerland 22 %; Rest of Europe 24 %; Middle East & Africa 5 %; South Asia 5 %; Asia 32 %, East Asia 1 % Function breakdown: Sales 9 %; Customer Service 13 %; Fulfillment 22 %; R & D 6 %; Factory 42 %; Administration 9 % Gender breakdown: female employees 15 % See also www.buhlergroup.com à Home à About Bühler à Career à Bühler as an employer Estimate: Around 90 % of the Bühler workforce is covered by collective bargaining agreements In preparation Annual Report – Key Figures and Financial Report See also: www.buhlergroup.com à About Bühler à Media à Media Releases” For Corporate Policy, including Corporate Governance, Risk Management, Environment, People, Code of Conduct: see www.buhlergroup.com à Home à About Bühler à Corporate Policy For Organization chart, Board of Directors, Corporate Executive Committee: see www.buhlergroup.com à Home à About Bühler à Organization In preparation Bühler is active in many organizations and associations, particularly those related to the scope of our business and our profession. Some of our significant memberships include the industry associations Swissmem, SwissHoldings, economiesuisse. See further memberships under: www.buhlergroup.com à Home à About Bühler à News à Details à Bühler joins “Partners in Food Solutions” www.buhlergroup.com à Home à Media à Media Releases à Media Releases Details à Bühler partners with global startup accelerator MassChallenge to advance open innovation www.buhlergroup.com à Home à About Bühler à Corporate Policy à Environment A full list of memberships is in preparation.

Annual Report 2015 – Financial Report Annual Report 2015 – Sustainability Report Annual Report 2015 – Sustainability Report In preparation In preparation There have been no restatements of data in this report. There have been no significant changes to the report scope. A comprehensive description of the Aspect Boundaries is in preparation.

Annual Report 2015 – Sustainability Report Annual Report 2015 – Sustainability Report Annual Report 2015 – Sustainability Report Annual Report 2015 – Sustainability Report

Annual Report 2015 – Cover page Our most recent Sustainability Report was included in our Annual Report 2014, issued in February 2015. www.buhlergroup.com à Home à About Bühler à Media à Publications Annual reporting cycle Bühler AG, Corporate Communications, Uzwil. Contact: media@buhlergroup.com This report contains Standard Disclosures from the GRI Sustainability Reporting Guidelines. Bühler did not seek external assurance for this report.

Annual Report 2015 – Corporate Governance

Bühler values and principles: www.buhlergroup.com à Home à About Bühler à Corporate Profile à Corporate Values Corporate Code of Conduct: www.buhlergroup.com à Home à About Bühler à Corporate Policy à Corporate Governance

Sustainability Bühler Annual Report 2015 98

Sustainability at Work

Door to the world Bühler and the Vocational and Continuing Education Center Wil-Uzwil (BZWU) have developed ClassUnlimited 2.0 – a new pedagogic concept for vocational training classes that combines the benefits of classic classroom education with the possibilities offered by digital media. This global classroom enables Bühler apprentices to go on prolonged assignments abroad while still undergoing their basic vocational training.

Sabrina makes a bit of a sleepy impression as she looks into the camera. For the 19-year old polymechanic-in-training, work starts earlier than usual in Minneapolis (USA). Sabrina is one of currently 22 Bühler apprentices who have been delegated on assignments abroad in the final year of their apprenticeships. In addition to specialist knowledge, these future experts are meant to also gather intercultural experience as early as possible in their lives and careers. To allow them to continue to take part in vocational training and remain in touch with their classes during their stints abroad, Bühler and the BZWU launched the virtual and global classroom called ClassUnlimited in 2012. As every Monday, Sabrina will actively attend vocational training classes in Uzwil – through a live link with a large display screen and in the wee hours of the morning due to the time difference. Modern learning arena and new learning culture Since 2012, ClassUnlimited has evolved into a learning arena equipped with cutting-edge technology that combines the benefits of classic courses with the possibilities of digital learning. Since August 2015, four vocational disciplines – polymechanic, plant builder, automation specialist, and machine designer – have taken part in the ClassUnlimited 2.0 project. The master class in Uzwil is linked live with two satellite groups at a time. The apprentices are coached during their periods abroad by their apprenticeship instructors and specially educated local instructors in China, the United States, South Africa, and the United Kingdom. They now build their basic knowledge essentially by self-study or in small learning teams. In this, they are directed by

The ClassUnlimited distance education concept allows today’s apprentices to gather experience on the job abroad and enhance the quality of their education during their basic training. a Learning Management System. What they have learned on their own is then deepened in classes und applied on the basis of sample cases. This departure from conventional classes – learn at school, deepen at home – suggested itself strongly because the virtual presence all day long of the apprentices in the satellites would have been too timeand labor-consuming. Moreover, studies prove that self-controlled learning is more effective. Long-term specialist training concept The commitment of Bühler to vocational training has sound business reasons: This investment in future specialist and management staff will pay off. In times when company bosses report in surveys that the lack of specialist staff is

their greatest challenge, Bühler does not find it difficult to fill its roughly 80 posted apprenticeships with talented school-graduates. About three out of four of all apprenticeship-graduates continue their professional careers with Bühler. A sound education, they say, is one of the strategic success factors of a company. A track record of 100 years in the field of vocational training – the centenary was celebrated in 2015 – exhibits this. If there is anything that needs to be emphasized, it is this: Also vocational training must continuously evolve.

Sustainability Bühler Annual Report 2015 99

The flexible Polymatik, designed for producing gluten-free pasta, can readily be retrofitted again at no extra cost for processing wheat flour or semolina.

Gluten-free pasta With its Polymatik pasta press, Bühler offers a flexible and therefore also sustainable solution for producing gluten-free pasta.

Gluten-free is trendy. Just a few years ago, the motto was: no pasta, no pizza, no bread, no croissants, but instead a daily ration of potatoes, rice, or corn. But today, you no longer have to remove any of these delicacies from your menu just because of the gluten proteins contained in wheat and some other grains. Gluten-free products can now be found on many shelves in supermarkets, ranging from baby food and pasta to animal feed. According to a study conducted by Mintel, the market for gluten-free products has grown by 44 % to USD 10.5 million between 2011 and 2013. 30 % of all US consumers heed the advice of stars such as tennis player Novak Djokovic or actress Gwyneth Paltrow and steer clear of foods containing gluten. But nutritional trends are not always based on strict scientific criteria. Only 2 % of the population advocate gluten-free foods, which is of course mandatory for people suffering from celiac disease or gluten intolerance. Even minute traces of the protein may lead to serious intestinal changes in celiac patients. But consumers profit from this global trend toward a richer menu. Some other 8 % of the global population react positively to wheat allergy tests, suffering from

intestinal disorders and gluten sensitivity or non-celiac gluten sensitivity. They, too, must submit to a diet or avoid wheat products completely. However, according to the current state of knowledge, the majority of the population cannot profit from any objectively measurable advantages of gluten-free nutrition. Ian Roberts, Chief Technology Officer at Bühler, states clearly: “Wheat as one of our main staple foods will continue to play am important role in the future in feeding our growing global population.” Whether based on scientific facts or not, pasta producers cannot ignore the rising demand for gluten-free foods. With the Polymatik pasta press, Bühler is the sole company to have offered a technically matured solution for making gluten-free pasta for ten years now. “The technology was originally developed as an alternative for regions in which wheat was becoming scarce,” explains Béatrice Conde, food technology expert at Bühler. “The greatest challenge in producing gluten-free pasta consists in achieving the same ‘bite’ as in traditional pasta.” Bühler has succeeded so well in this effort that gluten-free pasta hardly differs in taste and consistency from “true” pasta. The flexibility of the Polymatik is likely to be

just as important: Should the current hype concerning gluten level off one day, it would be easy to retrofit a pasta press configured for making gluten-free pasta so that is could be used without involving major expenditures for processing regular flours or semolina. But regardless of how the perception of gluten-containing or gluten-free foods develops in the future, this Bühler technology is a true trend-setter. This is because the Polymatik allows local grain varieties such as corn (maize) or sorghum to be readily processed precisely in countries in which wheat is not available and would have to be imported at high cost, ensuring the supply of basic foods also in these regions of the world.

Sustainability Bühler Annual Report 2015 100

Optimal dough quality Thanks to their beneficial baking characteristics, an increasing number of commercial-scale bakeries are using sponge and sour dough. The innovative Bühler JetMix solution is distinguished by the optimal dough quality and maximum hygiene that it offers.

The JetMix combines state-of-the-art process technology with the traditional bakery craft: The novel method of uniform hydration of dry substances is applied in the industrial-scale production of sponge and sour dough. The sour dough process is the oldest form of bread production and a natural process. Dough acidification and fermentation eliminate the need for additives and baking agents while at the same time ensuring a high end product quality.

JetMix reduces the kneading time by 30 %.

In addition to their “clean label” advan- The reproducibility of the production and tage, the loaves produced by this meth- cleaning processes allows a consistent od have a longer shelf life, which reduces end product quality to be achieved while food losses. also ensuring food safety. Tests conducted in the Bakery Application Center With the JetMix, Bühler has also reduced have already convinced several customthe kneading time required for a loaf of ers of the benefits of the JetMix. In 2016, bread by about 30 %, thanks to the ad- two pilot lines are scheduled to go into dition of hydrated dough. This has a service. positive impact on production efficiency or, in other words, on energy consumption. There is another important aspect:

Prolonged freshness Plastic packaging materials coated with aluminum increase the shelf life of foods such as snacks, chocolate bars, or coffee. They prevent oxygen or moisture from entering the packaging. The better the barrier characteristics of the packaging, the farther the “best before” date and therefore the longer the goods can be left in perfect condition on shelves for sale and be consumed. Peter Wohlfahrt, Head of Market Segment Large Area Coating at Bühler Leybold Optics, does not doubt for a moment: “Good barrier characteristics help prevent food wastage.”

The LEYBOLD OPTICS PAK 2900+ has enabled METLUX to increase its coating rate by 8 % from 12 to 15 meters per second without increasing energy consumption by the same rate.

The quality requirements that food packaging materials are expected to meet in terms of sanitation and safety are particularly high, but at the same time these materials must be cost-efficient. A highly productive manufacturing process must ensure minimum downtimes and the lowest reject rate possible. The LEYBOLD OPTICS PAK 2900+ machine has been developed for high-rate coating of plastic film. Since the end of 2014, the machine has been up and running at the production sites of Luxemburg-based METLUX, whose core business is the metallization of food packaging film. For Valerio Cassio, Head of

Research & Development and Business Development at M ETLUX, the investment pays off: “Our focus was on increasing our productivity.” The LEYBOLD OPTICS PAK 2900+ has enabled METLUX to increase the coating rate by 8 % from 12 to 15 meters per second without increasing energy consumption by the same rate. For METLUX, this was an important step forward in its capabilities, as it is now possible to expand web handling and increase the coating rate. This has opened up the opportunity to explore new industrial applications. Also s olar control and building insulation are markets that increasingly require vacuum- coated flexible material in large widths. In its core business, the food industry, the design of the machine allows METLUX to offer a wide range of metalized substrates. V alerio Cassio sums up: “Our customers now benefit from the right quality at the right price, and this with maximum flexibility.” In addition, the machine layout ensures the food safety and hygiene standards that the industry demands today.

Sustainability Bühler Annual Report 2015 101

Reduced reject rate Vacuum systems increase the quality of die-cast components. But up to now, peripheral systems that were simply attached to the die casting cell have met certain limits. Now the integrated SmartVac solution from Bühler offers markedly lower reject rates, higher flexibility and stability, and complete traceability.

Vacuum systems are crucial production elements for manufacturing high-quality structural components from the die-casting process. When molten aluminum is cast, contaminants are created by lubricant evaporation and gas emitted from the molten metal. They must be eliminated as efficiently as possible to ensure that no quality-impairing inclusions will be contained in the cast component. Up to now, the attitude of the industry was characterized by skepticism toward vacuum systems due to their susceptility to trouble and their unsatisfactory availability. With SmartVac, Bühler now offers customers a newly developed vacuum system that is seamlessly integrated with the die casting machine. This integration has significantly improved the exchange of information between the die casting machine and the vacuum unit. The system allows Bühler to take entirely novel approaches in the field of vacuum die casting. It all starts with easier operation and handling during production and production changes. Then, the much improved monitoring functions minimize downtimes. Throughout the process, complete traceability of the parts with their casting parameters is permanently ensured. The focus is always on enhancing customers’ productivity. This comprehensive integration has enabled the first phase of the die casting process to be automated on the basis of algorithms. As a result, gas entrapments are already minimized in the shot sleeve by optimal plunger motion. This function is unique in the marketplace and allows customers to achieve a higher component quality as well as reduced cycle times.

Productivity gain The feedback received from customers is positive throughout. “The SmartVac system has reduced the absolute reject rate after casting by 2.5 %.” Steffen Pech is the Casting Manager at DGS Druckguss Systeme, a mid-size company that manufactures complex lightweight components for the automotive industry. He is highly satisfied with the new machine, for aluminum is expensive and melting it requires a lot of energy. Rejects are therefore bothersome in two respects: First, parts are manufactured that cannot be sold. Second, the same amount of resources must be invested a second time, which significantly shrinks operating margins. In general, foundries as well as vendors to the car-making industry base their calculations on narrow margins. For Product Manager Claude Stalder, the matter is therefore clear: “Companies will only invest in new equipment if they can gain a clear, quantifiable advantage.” And proof of such an advantage has now been furnished by the SmartVac system. Integration of the vacuum system pays off for DGS Druckguss-Systeme – in terms of productivity, resource consumption, flexibility, and quality.

The new SmartVac vacuum system has reduced the absolute reject rate after casting by 2.5 %.

Sustainability Bühler Annual Report 2015 102

Cracking nuts Nuts are healthy, wholesome, and increasingly popular, regardless of whether we are talking about almonds, walnuts, or peanuts. Thanks to its bundled know-how, Bühler has become the global competence partner of the nut processing industry.

Nuts are healthy. But what health authorities now recommend schoolchildren to eat in between meals today – a handful of nuts per day – was long considered to be an unhealthy, greasy party snack. The rehabilitation of nuts came with nutritional scientists’ insight that – if they are not fried in oil and not salted – they contain a large amount of healthy unsaturated fatty acids, vitamins, and proteins, which may prevent cardiovascular diseases, high cholesterol, and cancer. In a broad study, the Harvard Medical School proved that people will have longer and healthier lives if they eat nuts regularly. As a consequence of their rehabilitation, global demand for nuts and nut products has mushroomed. In supermarkets, almonds, walnuts, and other nut varieties have conquered not merely a place on shelves alongside chips and salty snack foods, but now show off their benefits right next to fruits and vegetables. Within ten years, the nut market has grown by 53 %, and demand for almonds even more than 150 %, driven especially by US consumers, who often drink their lattes or eat their cereal with almond milk instead of cow milk. Bundling of competencies spells success Its vast nut processing experience allows Bühler to benefit from this rise in demand. In addition, the company has always focused on a healthy and gentle dry-roasting method. And thanks to its strategically clever acquisition of Barth, Aeroglide, and Sortex, it is the sole company worldwide today that can offer its customers a portfolio of all the principal nut processing steps – from cleaning and sorting to roasting and grinding. Moreover, Bühler satisfies the high food safety requirements in nut processing along the entire value chain. Bühler offers new solutions for sterilizing nuts, validating these critical process stages, and removing foreign materials and harmful nuts with high precision. In 2015, Bühler established its reputation as the global market and opinion leader

in nut processing. This was reflected in new customer orders for designing and constructing complex systems for processing a wide range of nut varieties on several continents, in which all relevant business units of Bühler were involved. The size of the plant and the end product determine the most suitable equipment for a specific purpose. “But before this could happen, a lot of in-house integration work and persuasion were needed.” Maik Schneider of Bühler Barth is in charge of this market segment and therefore of the design of the entire line. “Today, it no longer matters whether Bühler Aeroglide or Bühler Barth are supplying the drying roaster – what counts is that customers are offered the best possible solutions for their applications.” Thanks to its bundled know-how, Bühler can now offer largescale plants for multinational corporations as well as solutions for specialized confectionary producers.

Bühler is the world’s only company capable of offering a complete nut processing solution that ranges from large-scale systems to specialized products.

Sustainability Bühler Annual Report 2015 103

Saving resources Bühler has advanced to market leadership in industrial rice processing – from raw material reception through to packaging of the polished rice. The road to achieving this position has been paved by process technologies ranging from intake to storage of paddy (unmilled rice) that spare resources and close collaboration with the Bühler Rice Milling unit.

Have you even eaten Thai curry prepared Market leader in rice processing from broken rice kernels? That is quite There were awards: In 2013, the Bühler unlikely. And that is because only entirely EcoDry was chosen as the best dryintact rice grains ever reach the premium ing process for large-scale production market. Whether rice can be exported and was rewarded with the first orders with a profit or must be sold as a sub- in South East Asia. This was followed standard product at “fire-sale prices” is in 2014 by more large orders in South determined early on, during drying – an and South East Asia. The triumph of indispensable process for ensuring safe the Bühler paddy intake and storage storage of unmilled rice. Studies prove solutions continued in 2015, when it that the drying process has a significant was possible to play another winning impact on the quality and yield of the card – the close collaboration of Bühler finished rice. Grain Logistics with their Rice Milling colleagues. Bühler is thus the sole proLess brokens and lower energy vider capable of offering customers an consumption integral, single-source solution from raw Bühler therefore focused on finding an materials intake to outloading of the polinnovative solution that is gentler than ished rice. Thanks to innovation readiconventional drying processes and also ness and extensive know-how along the uses less energy. “We knew that we entire value chain, Bühler is the market would only have a chance of succeeding and quality leader in Asia today, where in the world’s largest rice market, Asia, if 90 % of the world’s rice is grown, which we managed to develop a process that is the staple food of more than half the enhances quality as well as cuts costs,” planet’s population. explains Business Unit Head Tobias Daniel. On the basis of the tried-and-true Bühler drying technology for corn (maize) and wheat, Bühler developed a new rice drying process that offers a twofold improvement: On the one hand, it creates less brokens, which means higher rice quality and lower loss. On the other, the new process technology consumes as much as 25 % less energy.

The new drying process enhances the rice quality and reduces losses. At the same time, the new technology requires as much as 25 % less energy.

Financial Report B端hler Annual Report 2015 104

V Financial Report

Financial Report B端hler Annual Report 2015 105

Contents

Financial Commentary

106

Business Development

108

Financial Report B端hler Group

112

Consolidated statement of income

113

Consolidated statement of comprehensive income

114

Consolidated statement of financial position

115

Consolidated statement of changes in equity

116

Consolidated statement of cash flows

118

Notes to the financial statements

119

Report of the statutory auditor

154

Financial Report Bühler Annual Report 2015 106

Financial Commentary 2015: Order intake slightly below previous year’s level, higher turnover and profitability, stable balance sheet.

The Group continued to invest in the development of new products and services at the same or even faster pace as in the years before. Total investments in R & D amounted to CHF 102 million (2014: CHF 99 million). As in the past, R & D investments are fully expensed. The return on net operational assets (RONOA) increased by almost 4 percentage points to 22.0 % compared to 2014 (18.1%), thanks to the improved EBIT. Thus the capital costs of the Group are more than covered and the ratio represents a good benchmark for other industry players. The number of employees (exclusive of temporary staff and apprentices) increased slightly by 298 persons or 2.8 % to 10,873.

Key points in brief The start into the fiscal year 2015 was marked by the decision of the Swiss National Bank to abandon the CHF / EURpeg of 1.20 on January 15. Thanks to a high level of order backlog of CHF 1,582 million as per the end of 2014 and a stringent foreign exchange hedging policy, the Group continues with cautious optimism notwithstanding the high competitive pressure due to the expensive Swiss franc against most foreign currencies. The circumstances forced the management to increase the weekly working hours in Switzerland from 40 to 45 hours, which was logical in view of the high backlog. Above all, the Group was confronted with a number of challenges caused by political unrest in some important markets in South America, political turmoil or even civil-war-like conditions in various countries of the Middle East & Africa region, and a slowdown of the economy in China. Additionally, an increasing number of principal banks of the Group withdrew their activities completely from politically critical regions. On the other hand, the regions North America and South East Asia have shown very positive d evelopments. Keeping this in mind, the Group has shown a very satisfying overall performance. The order intake of CHF 2,470 million decreased by only – 4.3 % (on a currency-adjusted basis by –1.8 %) in comparison to 2014 (CHF 2,582 million). In respect to turnover, the Group has managed to grow and generated CHF 2,412 million turnover or 3.4 % above the previous year’s level of CHF 2,332 million (+7.1% on a currency-adjusted basis).

Besides share buy-backs from minority interests of earlier acquisitions (three in China, one in Turkey) the Group acquired a chocolate company specialized in countlines in Leingarten, Southern Germany. The total sum of these transactions amounted to CHF 45 million. Higher net profit and financial result, normalized tax rate The net profit 2015 amounted to CHF 143 million or 5.9 % of turnover and was thus well above the result of the previous year (CHF 121 million or 5.2 %). The financial result of CHF 7 million remained substantially above the value of the year before (CHF 3 million) thanks to high volatility in the financial markets. The abandoning of the CHF / EUR-peg had no negative impact on the financial result. The tax rate of 22.4 % was considerably higher than in 2014 (17.9 %) which is the result of a sustainable tax management, restructuring activities within the Group and substantially improved operational performance of Leybold in Alzenau / Germany which was acquired in 2012. Hence the normalized corporate tax rate amounts to approximately 20 %.

The EBIT-level profitability increased from CHF 145 million or 6.2 % of turnover in 2014 to CHF 177 million in 2015 or 7.3 %, thanks to improved capacity management and effects of restructuring activities of prior years.

Order intake (in CHF m)

Order backlog (in CHF m)

1,582

2,363 2,582 2,470 1,319

Turnover (in CHF m)

1,529

EBIT (in CHF m)

Operating cash flow (in CHF m) 177

2,322 2,332 2,412 139

187

145 124 99

2013

2014

2015

2013

2014

2015

2013

2014

2015

2013

2014

2015

2013

2014

2015

Financial Report Bühler Annual Report 2015 107

Healthy balance sheet with stable net liquidity The equity as of December 31, 2015 amounted to CHF 1,155 million (2014: CHF 1,146 million). The equity ratio has thus slightly increased to CHF 45.7 % (2014: 45.2 %). Apart from loans granted by related parties to the amount of CHF 146 million (2014: 159 million) the Group does not have any significant financial liabilities towards third parties. The operational cash flow in 2015 of CHF 99 million is notably lower than the year before (2014: CHF 187 million), as a result of the Group-wide effort to reduce the huge order backlog. As a consequence the net liquidity has declined from CHF 464 million in 2014 to CHF 392 million at the end of the fiscal year 2015. Nevertheless the financial strength allows the Group to act and react to the quickly changing market environment and customer requirements. Additionally, the growth of the organization can be financed without incurring debt, in the future which is a key target of the long-term financial strategy.

Turnover 7 8

5 2 4

Equity ratio (in %)

1 5

By region 1 North America 2 South America 3 Europe 4 Middle East & Africa 5 Asia

2013

22.0

2014

2015

44.6

45.2

45.7

17.6

18.1

2013

2014

2015

2013

2014

RONOA (in %)

392

29 % 9 % 9 % 21% 11% 12 % 3 % 6 %

Turnover

464 377

By business 1 Grain Milling 2 Grain Logistics 3 Sortex & Rice 4 Value Nutrition 5 Consumer Foods 6 Die Casting 7 Grinding & Dispersion 8 Leybold Optics

Conclusion and outlook After the abandonment of the CHF / EUR-peg by the Swiss National Bank, 2015 has become a specially demanding fiscal year for every Swiss company competing against foreignbased companies. Even though the EUR has regained some strength against the CHF, the Group must stay alert and continue to find ways to maintain the technological strength and to increase productivity in order to safeguard the Group’s net result. Therefore, the management does not believe that 2016 will be any less challenging. The Group will also continue to consolidate its already strong market position in China, and push forward its activities in South East Asia. However, the situation in the Middle East & Africa region will remain very critical, where also sanctions in some markets are a limit in respect to financial transactions. Overall, the Group is well settled in the key markets and within the context of its long-term strategy, prepared to continue on the path of a financially sound and independent multi national family-owned company.

Net liquidity (in CHF m)

2015

15 % 8 % 28 % 16 % 33 %

Financial Report Bühler Annual Report 2015 108

Business Development Grain Milling

Grain Logistics

Total turnover

700

CHF m

Share of Group turnover

205

CHF m

Share of Group turnover

Business Area Grain Milling The overall market environment for Grain Milling remained stable, with an order volume at a level similar to the prioryear. The growth strategy to further diversify the product portfolio was successfully implemented. Business development in Industrial Milling remains stable, while Speciality Milling, Brewing and Bakery showed double-digit growth.

Business Area Grain Logistics As a result of reaching the main target of 10 % growth, 2015 was the most successful year for Grain Logistics ever. Market share slightly increased by approximately 1%. Malting exceeded all expectations and remained the dominant market leader with CHF 81 million in order intake. Customer service grew by almost 28 % in order intake.

While investments in Middle East & Africa were delayed, Europe and North America show saturated markets. The business in South America and China was affected by the slow down of the economy. Overall, Bühler was able to maintain its market share, also thanks to large investments in complex and large projects in markets like Bangladesh.

The most outstanding performance was achieved in Asia. Mainly driven by paddy solutions, which were successfully introduced in the market, Asia achieved more than CHF 67 million order intake. Another strong performance was achieved in North America, where Malting offerings were a key driver for achieving CHF 40 million in order intake. Double-digit growth was also achieved in the Middle East & Africa.

The new Atta grinding technology was a great success not only in India but also globally. The Pesa technology has potential for further applications and plants were already sold for guarassa and maize. Industrial Milling’s top launches in 2015 are Antares Plus (quality / efficiency), Matador (food safety) and Arenit (food safety), while the JetMix technology (Bakery), which was launched at IBA and already sold in three different applications, impressed with its production of homogeneous sponge dough. Tubo (Brewing), a new way of conveying product, was successfully implemented in new applications. The outlook remains cautiously optimistic. Bakery strives to position itself as a technology leader for dry and liquid handling solutions, while Speciality Milling aims to increase its market share in maize and industrial solutions for local grains.

The 2015 highlights focus on the overall strategy to reduce post-harvest losses. A benchmark was set with innovations in drying. The new drying automation solutions Ecomation and Ecointelligence raise the performance to a new level, by supplying the most energy-efficient grain drying technology. During Agritechnica, the most important exhibition for Grain Logistics in 2015, the cleaning line for mycotoxin reduction was launched. As more and more grains are contaminated, this is a key step in facilitating food and feed safety. As a result of its strong market position, Bühler was able to win all major projects in Grain Logistics. In 2015 the basis for continued growth over the coming years was laid. The focus regions Asia, South America and Africa showed great potential for further growth. A key priority for 2016 is further decentralizing the core competencies, with the aim to additionally boost sales of localized solutions for paddy, soya and maize.

Financial Report Bühler Annual Report 2015 109

Sortex & Rice

Value Nutrition

Total turnover

203

CHF m

Share of Group turnover

509

CHF m

Share of Group turnover

Business Area Sortex & Rice In 2015, the Business Area Sortex & Rice consolidated strong growth in order intake and moved into 2016 again with a record number of order backlog. Bühler also achieved its long-term goal of becoming the number one company in worldwide rice processing with regard to turnover. The new Business Unit structure for rice has been established in South Asia, Middle East & Africa and Asia.

Business Area Value Nutrition In 2015 the Value Nutrition order intake grew by 1% and turnover by impressive 10 % compared to 2014. The growth has a very heterogenous distribution amongst the regions. Customer service has developed positively with an increase in sales by 7 % turnover. While the market shares remained at the same level for most existing market segments, growth was achieved in new markets.

Business performance in terms of order intake was led by strong growth in Asia thanks to landmark orders for key processing projects in Thailand, Bangladesh, Indonesia and Philippines. North America and Europe supported business growth with solid performance, while South America, Middle East & Africa and South Asia were also able to realize profits.

Whereas business in terms of order intake significantly improved in South East Asia, thanks to the largest single order ever for Feed with a volume of CHF 66 million, China slipped into a consolidation phase. The crisis in Ukraine and Russia resulted in a slowdown of business for Value Nutrition in these regions. While business in North America and Europe remained stable, South American markets grew by remarkable 6 %. Middle East & Africa proved again to be very dynamic for larger projects.

The launch of the SORTEX E BioVision nut sorter successfully gained customer acceptance and market acceptance in the USA, Turkey and Moldova with notable large machine orders received for sophisticated walnut shell sorting. Meanwhile, the one hundredth Buhler W optical sorter from Buhler Sortex Hefei was sold in India, thereby strengthening market entry. Further innovations were the introduction of online measurement devices for rice processing and hyper spectral vision systems for protein measurement. In rice and pulses processing, new processing machines were intro duced, including CE-marked pulses hullers. The outlook for 2016 is positive. Several large growth opportunities are expected in fruit and vegetables, rice and pulses processing across the Americas, Asia and Africa. Customer service will strengthen regionally while innovations in measurement and sorting will increase market share.

Value Nutrition has participated in various important trade shows in 2015 to promote its innovations, such as the new cooler DFKM and the repositioning of the KubexT, a new flaker, Aeroglides’ roaster launch and the sales of Ceres for RTE as well as the first placement of the New Gen Industrial Dryer and also the expansion of the “Smart”-portfolio in China. In addition, the new Aqua business and Asian Noodles were further developed in the region and around the world. The overall outlook for 2016 is challenging with a lower order intake than last year. However, the introduction of the CE portfolio in Europe and the strong demand for large project opportunities in Middle East & Africa and emerging markets show great potential for 2016.

Financial Report Bühler Annual Report 2015 110

Consumer Foods

Die Casting

Total turnover

266

CHF m

Share of Group turnover

277

CHF m

Share of Group turnover

Business Area Consumer Foods The major key accounts have massively invested in the last years and have now entered into a consolidation phase. Moreover, the sluggish demand for confectionery products has slowed down the investment climate. As a consequence, order intake has shrunk but with market shares still rising at a high level. Turnover decreased by 4 %, largely driven by currency effects.

Business Area Die Casting The strong investment climate in the global automotive industry continued in 2015, leading Die Casting to a record order intake of CHF 308 million and turnover of CHF 277 million with strong performance in the three main regions North America, Europe and Asia. Market share remained stable at 25 %, as all equipment suppliers grew their business in the expanding market.

Business has suffered in South America and developed adversely in China. The order intake in the USA is 20 % behind the previous year, while Middle East & Africa shows strong growth. East Asia and India are growing moderately. Europe, the biggest market, has reduced compared to the previous year, mostly due to missing greenfield projects.

All three main regions, Europe, North America and China, strongly contributed to the order intake and turnover growth. Die Casting maintained its global No. 1 market position, consolidating strong positions with existing customers and opening up new opportunities within large Tier 1 suppliers as well as Chinese OEMs.

The compact solutions are selling well, particularly the coffee Roastmaster, resulting in a new turnover record in 2015, and are a key driver for growth in the Coffee business. The new Infinity Roast for high end coffee applications finds remarkable interest in the market and the moulding line newly manufactured in China helps in gaining ground in the area of chocolate with the bead milling systems. The attendance of several trade shows facilitated entering new markets, e.g. Saudi Arabia, Kazakhstan or Iran. The acquisition of Hosokawa Bepex GmbH, Leingarten was a strategic highlight of 2015 and is the foundation for entering into the bars- market, and also new solutions for Nutrition and Bakery.

Die Casting attended the Gifa ’15 and NADCA exhibitions, where the new SmartVac, DataView, structural compe tences, service solutions, and Bühler technology for the automotive industry were successfully showcased. Record activity in China and strong growth in North America and Central Eastern Europe have marked the past year. Also, 2015 was a record year for revision activity at Bühler Brescia, driven by strong sales in Germany. Customer service saw strong growth in China as well as in North America.

The business environment remains difficult and a quick recovery of the industry is not expected in the foreseeable future. The Chocolate business will remain slow, whereas Coffee will continue to grow. Nevertheless, positive signs from Middle East & Africa, Europe, the USA and newly launched products and compact solutions support the strategy. This will be achieved also by growing the customer service business.

The outlook for 2016 is positive as all three main regions will continue to stay strong due to increased automotive sales. Die Casting will focus on quality, product innovation, further development of its three main hubs in China, Europe and North America as well as strengthening of its local service presence on sales and service platforms all for building a more customer-centric organization.

Financial Report Bühler Annual Report 2015 111

Grinding & Dispersion

Leybold Optics

Total turnover

CHF m

Share of Group turnover

136

CHF m

Share of Group turnover

Business Area Grinding & Dispersion Turnover development was significantly higher than in previous years. Ink solutions again was the largest market segment, achieving more than 50 % of the annual volume, mainly driven by liquid inks for packaging and digital inks applications.

Business Area Leybold Optics Leybold Optics was able to defend its strong position in the market with a record year in order intake in Optics product lines. Its turnover increased by 17 % especially due to the realization of excellence in operations with an increase of 10 % of machines manufactured.

In contrast to previous years, the volumes in the North Amer ican and European markets were higher than those in Asia, the major reason being the missing plant projects in China and South East Asia. A positive trend was seen in the East Asian region in the ink and high-tech solutions segments.

In Europe, business development of Leybold Optics met our expectations. The order intake in Asia, which was slightly below the previous year, reflected the economic slowdown in 2015. Leybold Optics was able to increase its market share in South America and South Asia.

The first fully continuous mixing line for lithium-ion battery slurries based on twin-screw extruder technology was successfully commissioned. Furthermore, important contacts with various battery manufacturers for the new continuous mixing process were established. The inauguration of the new lead lab for Asia in China took place in June with the Top Asian Customer Summit. With a significant increase of 25 % compared to the previous year, a new record was achieved for machines manufactured in China. The first machine manufactured in Brazil was presented during the customer event at Joinville in October.

Leybold Optics achieved a breakthrough in the optoelectronics market with the sale of the precision optics machine HELIOS. In addition, China successfully launched the midmarket ophthalmic optics machine LEYBOLD OPTICS ECS as well as the mid-market metallization device AluMet. Also Optics achieved a record year with the SYRUS coater in ophthalmic optics. In addition, Advanced Materials took the strategic decision to build a state-of-the-art logistics center at Leybold Optics.

The outlook is very promising, driven by increased activities in the lithium-ion battery industry in Asia and new or reactivated projects from the traditional market segments in the chemical industry. Grinding & Dispersion’s plans to further increase customer support through local service stations.

In 2015 Leybold Optics has achieved and finalized the turnaround of the company. In 2016, Leybold Optics aims to defend its large volume in order intake and grow fruther in turnover.

Financial Report B端hler Annual Report 2015 112

Financial Report B端hler Group

Financial Report Bühler Annual Report 2015 113

Consolidated statement of income

Sales revenue

Notes

2015 CHF m

2014 CHF m

2,412.3

2,332.2

Changes in inventories of finished goods and work in progress

4.1

– 6.9

23.6

30.5

Total operating income

2,440.0

2,355.8

Cost of materials

– 1,058.7

– 989.5

Other operating income

Employee benefit expenses

– 751.0

– 759.9

Other operating expenses

– 401.5

– 402.6

Net result from associates

4.5

1.1

233.3

204.9

– 56.2

– 60.3

177.1

144.6

Operating result before interest, taxes, depreciation and amortization (EBITDA) Depreciation and amortization

7/8

Operating result before interest and taxes (EBIT) Finance income

10.8

13.7

Finance costs

– 4.0

– 11.1

6.8

2.7

183.9

147.3

– 41.2

– 26.4

142.7

120.9

140.1

113.9

2.6

7.0

Financial result Profit before taxes Income taxes Net profit

Attributable to: AA Shareholders of Bühler Holding AG AA Non-controlling interests

Financial Report Bühler Annual Report 2015 114

Consolidated statement of comprehensive income Notes

Net profit

2015 CHF m

2014 CHF m

142.7

120.9

– 28.9

25.1

Other comprehensive income Translation differences of foreign operations Available-for-sale financial assets – Change in fair value

0.0

– Realized through statement of income

0.0

– 1.0

– Tax effect

0.0

0.2

Cash flow hedges – Change in fair value

3.8

– 6.9

– Realized through statement of income

– 3.3

– 4.7

– Tax effect

– 0.1

2.0

– 18.8

– 3.9

1.4

0.5

– 45.9

11.3

– 38.7

– 42.4

6.9

8.3

Other comprehensive income not to be reclassified to profit or loss in subsequent periods

– 31.8

– 34.1

Total other comprehensive income

– 77.7

– 22.8

65.0

98.1

63.2

88.7

1.8

9.4

Net loss on hedge of net investment – Tax effect Other comprehensive income to be reclassified to profit or loss in subsequent periods Actuarial gains and losses of defined benefit plans – Tax effect

Total comprehensive income

17.3

Attributable to: AA Shareholders of Bühler Holding AG AA Non-controlling interests

Financial Report BĂźhler Annual Report 2015 115

Consolidated statement of financial position Notes

2015 CHF m

2014 CHF m

Property, plant and equipment

400.4

407.3

Intangible assets

273.7

301.0

Investments in associates

29.0

18.0

Long-term financial assets

123.1

99.0

Deferred tax assets

38.5

41.7

864.7

867.0

Assets

Non-current assets Inventories

347.8

357.5

Net assets of production orders in progress

291.3

202.1

Trade accounts receivable

506.4

503.3

Other accounts receivable, prepayments and accrued income

107.9

118.8

Current income tax assets

5.8

4.4

63.2

43.3

345.5

436.1

Current assets

1,668.0

1,665.5

Total assets

2,532.7

2,532.5

Marketable securities

16.2

Cash and cash equivalents

Equity and liabilities Share capital

15.0

Capital reserves

185.1

Other reservesâ&#x20AC;&#x160;/â&#x20AC;&#x160;retained earnings

929.9

904.3

1,130.0

1,104.4

24.8

41.4

1,154.8

1,145.8

136.6

150.8

Equity attributable to the owners of the parent Non-controlling interests Total equity Long-term financial liabilities Deferred tax liabilities Defined benefit obligations Long-term provisions

79.4

82.6

17.4

166.9

111.0

24.9

25.8

407.8

370.2

Non-current liabilities Short-term financial liabilities

16.4

15.7

Trade accounts payable

240.5

196.8

Net liabilities of production orders in progress

338.7

388.2

Short-term provisions

46.3

60.1

Other short-term liabilities, accruals and deferred income

305.8

341.1

22.4

14.6

970.1

1,016.5

Total liabilities

1,377.9

1,386.7

Total equity and liabilities

2,532.7

2,532.5

Current income tax liabilities Current liabilities

Financial Report Bühler Annual Report 2015 116

Consolidated statement of changes in equity

January 1, 2014

Share capital CHF m

Capital reserve CHF m

Retained earnings CHF m

15.0

185.1

986.3

Dividends paid

– 15.0

Changes in non-controlling interests Net profit

113.9

Other comprehensive income

– 34.1

December 31, 2014

15.0

185.1

1,051.1

January 1, 2015

15.0

185.1

1,051.1

Dividends paid

– 15.0

Changes in non-controlling interests

– 22.7

Net profit

140.1

Other comprehensive income

– 31.8

December 31, 2015

15.0

185.1

1,121.7

Financial Report Bühler Annual Report 2015 117

Hedge reserve CHF m

Available-for-sale reserve CHF m

Foreign currency translation reserves CHF m

Total reserves CHF m

Equity attributable to the owners of the parent CHF m

Non-controlling interests CHF m

Total equity CHF m

5.4

1.6

– 162.7

1,015.7

1,030.7

31.9

1,062.6

– 15.0

– 6.2

– 21.2

0.0

6.3

113.9

7.0

120.9

– 9.6

– 0.8

19.3

– 25.2

2.4

– 22.8

– 4.2

0.8

– 143.4

1,089.4

1,104.4

41.4

1,145.8

– 4.2

0.8

– 143.4

1,089.4

1,104.4

41.4

1,145.8

– 15.0

– 3.3

– 18.3

– 22.7

– 15.1

– 37.8

140.1

2.6

142.7

0.4

0.0

– 45.6

– 76.9

– 0.8

– 77.7

– 3.8

0.8

– 189.0

1,114.9

1,130.0

24.8

1,154.8

Financial Report Bühler Annual Report 2015 118

Consolidated statement of cash flows

2015 CHF m

2014 CHF m

183.9

147.3

– 6.8

– 2.7

177.1

144.6

56.2

60.3

Other items not affecting cash flow

– 2.3

– 3.3

Changes in provisions

– 3.7

– 2.3

– 28.1

12.5

Notes

Profit before taxes Financial result

Operating result before interest and taxes (EBIT) Depreciation and amortization

7/8

Changes in trade accounts receivable Changes in inventories

– 1.7

– 8.5

Changes in trade accounts payable

55.5

– 11.9

Changes in net assets / liabilities of production orders in progress

– 116.2

62.6

– 17.9

– 41.3

119.0

212.7

Gains / losses on disposal of fixed assets

0.6

0.4

Interest received

3.7

2.9

– 2.8

– 2.9

– 21.4

– 25.9

99.1

187.2

– 50.4

– 55.1

Changes in other net operating assets Cash flow generated from operations

Interest paid Income taxes paid Cash flow from operating activities Purchase of property, plant and equipment Disposal of property, plant and equipment Purchase of intangible fixed assets Cash flow from business combinations of Group companies, net of cash Purchase of non-consolidated participations Purchase of marketable securities Disposal of marketable securities

5.1

2.5

– 3.6

– 2.7

– 7.4

– 10.8

0.0

– 1.6

– 40.3

– 25.4

11.7

13.0

– 23.8

– 1.8

Disposal of long-term financial assets

3.2

3.9

Dividends received

1.3

1.6

– 104.4

– 76.4

Purchase of long-term financial assets

Cash flow from investing activities Proceeds from financial liabilities

0.0

0.2

Repayment of financial liabilities

– 15.0

– 15.6

Acquisitions and other transactions with non-controlling interests

– 37.8

2.4

Dividends paid of Bühler Holding AG

– 15.0

– 3.3

– 6.2

Cash flow from financing activities

– 71.2

– 34.2

Currency translation differences

– 14.3

12.1

Dividends paid to non-controlling interests

Changes in cash and cash equivalents

– 90.7

88.7

Cash and cash equivalents at the beginning of period

436.1

347.4

Cash and cash equivalents at the end of period

345.5

436.1

EBIT includes share of profit of associates in the amount of CHF 4.5 million (prior year: CHF 1.1 million); thereof cash-effective CHF 0.9 million (prior year: CHF 0.9 million). Changes in provisions include changes in short- and long-term provisions, defined benefit obligations and deferred taxes.

Financial Report Bühler Annual Report 2015 119

Notes to the financial statements Accounting policies Basis of preparation. The consolidated financial statements of the Bühler Group have been prepared in accordance with the International Financial Reporting Standards (IFRS) and comply with Swiss law. The consolidated financial statements are based on the audited single-entity financial statements of the Group companies, which are prepared in accordance with consistent accounting principles. The consolidated financial statements are prepared under the historical cost convention. Any exceptions to this general rule are outlined in the following accounting policies. Due to rounding, the numbers do not necessarily correspond exactly with the totals. Adoption of revised and new IFRS and new interpretations. The a ccounting policies adopted are consistent with those of the previous fiscal year, except for the following new and amended IFRS and IFRIC interpretations effective as of January 1, 2015. Only revised and new IFRS have been included in the following list which are rele vant to the Group: Amendments to IAS 19 Defined Benefit Plans – Employee Contributions. IAS 19 requires an entity to consider contributions from employees or third parties when accounting for defined benefit plans. Where the contributions are linked to service, they should be attributed to periods of service as a negative benefit. These amendments clarify that, if the amount of the contributions is independent of the number of years of service, an entity is permitted to recognize such contributions as a reduction in the service cost in the period in which the service is rendered, instead of allocating the contributions to the periods of service. This amendment is effective for annual periods beginning on or after July 1, 2014. This amendment is not relevant to the Group, since none of the entities within the Group has defined benefit plans with contributions from employees or third parties. Annual Improvements 2010 – 2 012 Cycle. All improvements are effective for accounting periods beginning on or after July 1, 2014. The Group has applied these improvements for the first time in these consolidated financial statements. They include: IFRS 3 Business Combinations. The amendment is applied prospectively and clarifies that all contingent consideration arrangements classified as liabilities (or assets) arising from a business combination should be subsequently measured at fair value through profit or loss whether or not they fall within the scope of IAS 39. This is consistent with the Group’s current accounting policy and, thus, this amendment did not impact the Group’s accounting policy. Standards, interpretations and amendments published but not yet applied. Standards, interpretations and amendments published but not yet applied up to the date of issuance of the Group’s financial statements are listed below. The Group intends to adopt these standards when they become effective. They may have an impact on future consolidated financial statements and are being monitored and analyzed.

IFRS 9 Financial Instruments. In July 2014, the IASB issued the final version of IFRS 9 Financial Instruments, which reflects all phases of the financial instruments project and replaces IAS 39 Financial Instruments: Recognition and Measurement and all previous versions of IFRS 9. The standard introduces new requirements for classification and measurement, impairment and hedge accounting. IFRS 9 is e ffective for annual periods beginning on or after January 1, 2018, with early application permitted. Amendments to IFRS 10 and IAS 28: Sale or Contribution of Assets between an Investor and its Associated or Joint Venture. The amendments address the conflict between IFRS 10 and IAS 28 in dealing with the loss of control of a subsidiary that is sold or contributed to an associate or joint venture. The amendments clarify that the gain or loss resulting from the sale or contribution of assets that constitute a business, as defined in IFRS 3, between an investor and its associate or joint venture, is recognized in full. Any gain or loss resulting from the sale or contribution of assets that do not constitute a business, however, is recognized only to the extent of unrelated investors’ interests in the associate or joint venture. These amendments must be applied prospectively and are effective for annual periods beginning on or after January 1, 2016, with early adoption permitted. These amendments are not expected to have any impact on the Group. IFRS 15 Revenue from Contracts with Customers. IFRS 15 was issued in May 2014 and establishes a new five-step model that will apply to revenue arising from contracts with customers. Under IFRS 15 revenue is recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The principles in IFRS 15 provide a more structured approach to measuring and recognizing revenue. The new revenue standard is applicable to all entities and will supersede all current revenue recognition requirements under IFRS. Either a full or modified retrospective application is required for annual periods beginning on or after January 1, 2018, with early adoption per mitted. The Group is currently assessing the impact of IFRS 15 and plans to adopt the new standard on the required effective date. IAS 19 Employee Benefits. The amendment clarifies that market depth of high-quality corporate bonds is assessed based on the currency in which the obligation is denominated, rather than the country where the obligation is located. When there is no deep market for high-quality corporate bonds in that currency, government bond rates must be used. This amendment must be applied prospectively. Amendments to IAS 1 Disclosure Initiative. The amendments to IAS 1 Presentation of Financial Statements clarify, rather than significantly change, existing IAS 1 requirements. The amendments are effective for annual periods beginning on or after January 1, 2016, with early adoption permitted. These amendments are not expected to have any impact on the Group.

Financial Report Bühler Annual Report 2015 120

Use of estimates. The preparation of the consolidated financial statements in accordance with IFRS requires management to make estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities and the related disclosures at the date of the financial statements. These estimates are based on management’s best knowledge of current events and possible future measures. However, actual results could differ from those estimates. If in future such estimates and assumptions, which are based on management’s best knowledge at the date of the financial statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the year in which the circumstances change. The estimates and assumptions that may have a higher risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial periods relate primarily to long-term construction contracts, goodwill and, to a lesser extent, defined benefit obligations, deferred tax assets, provisions and disclosure of contingent liabilities at the end of the reporting period. The Group accounts for customer projects using the percentage-ofcompletion method. Revenue (including a carefully estimated share of the outcome of the contract) is recognized by reference to the stage of completion. The stage of completion is determined according to the cost-to-cost method. The percentage-of-completion method involves the use of estimates and forecasts concerning future costs; actual costs may differ from these e stimates. The forecasts are reviewed on a regular basis and adapted where necessary. These changes affect costs, the stage of completion, and both realized and anticipated profits. Any changes in estimates are recognized in the period in which they occur. Losses identified on long-term construction contracts are recognized as an expense immediately. Losses on long-term construction contracts occur when the expected contract costs exceed the expected revenue.

Scope of consolidation. These financial statements are the consolidated financial statements of Bühler Holding AG, a company registered in Uzwil, Switzerland, and its subsidiaries. The list of subsidiaries is presented in Note 30 “Significant Group companies”. Principles of consolidation. Subsidiaries, which are those entities in which the Group has an interest of more than one half of the voting rights or otherwise has the power to exercise control over the operations, are consolidated. The cost of an acquisition is measured at the fair value of the consideration transferred at the date of exchange. For each business combination, the acquirer measures the noncontrolling interest in the acquiree either at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition costs incurred are expensed in the statement of income. Identifiable assets acquired and liabilities assumed in a business combination are measured initially at fair value at the date of acquisition, irrespective of the extent of any non-controlling interest assumed. When the Bühler Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances, and pertinent conditions as at the acquisition date. If the business combination is achieved in stages, the acquisition date fair value of the Bühler Group’s previously held equity interest in the acquiree is remeasured to fair value as at the acquisition date in the statement of income. Any contingent consideration to be transferred by the Group is recognized at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration are recognized in the statement of income. Subsidiaries are consolidated from the date on which control is transferred to the Group and are no longer consolidated from the date that control ceases.

The Group tests annually whether goodwill has suffered any impairment in accordance with its accounting policy. The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. These calculations require the use of e stimates.

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.

The cost of defined benefit pension plans and other long-term employee benefits is determined using actuarial valuations. Actuarial valuations involve making assumptions about discount rates, future salary increases, mortality rates, and future pension increases. Due to the long-term nature of these plans, such estimates are subject to significant uncertainty.

Investments in associated companies are accounted for using the equity method of accounting. These are companies over which the Group generally holds between 20 % and 50 % of the voting rights and has significant influence but does not exercise control. Goodwill arising on the acquisition is included in the carrying amount of the investment in associated companies. Equity accounting is discontinued when the carrying amount of the investment together with any long-term interest in an associated company reaches zero, unless the Group has in addition either incurred or guaranteed additional obligations in respect to the associated company.

The Group recognizes a collective valuation allowance based on its past experience of warranty costs on projects with similar conditions. Other known risks and risks related to projects with special conditions are estimated on a case-by-case basis and measured individually. The actual warranty costs incurred may differ from the costs provided for. All estimates mentioned above are further detailed in the corresponding disclosures.

All intercompany transactions and balances between Group companies are eliminated in full.

Investments below 20 % are recognized at fair value and presented as non-current financial assets. Changes in fair value are recognized directly in other comprehensive income.

Financial Report Bühler Annual Report 2015 121

Changes in the scope of consolidation. In the reporting period the scope of consolidation changed as follows: Additions A A Bühler Leingarten GmbH, Germany A A Buhler DMCC, Dubai A A Shijiazhuang Buhler Mechanical Co. Ltd. A A Buhler Pakistan (Private) Limited, Lahore Deletions A A Buhler S.à.r.l., Paris A A Bühler PARTEC GmbH, Saarbrücken A A Buhler Sortex Inc., Stockton Foreign currency translation. The individual financial statements of the Group companies are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”) and are translated into Swiss francs for consolidation. Year-end exchange rates are used for the statement of financial position and annual average exchange rates for the statement of income. The consolidated statement of cash flows is also translated at annual average exchange rates.

Differences resulting from the application of these different exchange rates for the statement of financial position and the statement of income and from equity transactions are recognized directly in the consolidated statement of comprehensive income. Goodwill arising on the acquisition of a foreign entity is expressed in the functional currency of the foreign operation and is translated at the closing rate. Foreign currency transactions translated into the functional currency are accounted for at the exchange rates prevailing at the date of the transactions; gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of income, except when they are deferred outside the statement of income as qualifying cash flow hedges. Foreign exchange differences arising on monetary items that form part of a company’s net investment in a foreign operation are reclassified to equity (currency translation adjustment) in the consolidated financial statements and are only fully recycled to the statement of income when Bühler Group loses control of a subsidiary or loses significant influence in an associate. For foreign currency translation, the Bühler Group used the following exchange rates:

Average exchange rates

Closing rates Dec 31

2015 CHF

2014 CHF

2015 CHF

2014 CHF

Europe

1.068200

1.214500

1.083000

1.203000

Great Britain

1.471100

1.507000

1.471000

1.529000

Czech Republic

0.039160

0.044200

0.040000

0.043500

USA

0.962300

0.915500

0.987000

0.985000

Canada

0.753900

0.828700

0.712000

0.846000

Brazil

0.293000

0.389000

0.250000

0.370000

Argentina

0.104800

0.113000

0.075000

0.115000

Japan

0.007950

0.008653

0.008190

0.008200

India

0.015000

0.014900

0.015600

China

0.153200

0.148600

0.152700

0.158200

Mexico

0.060800

0.068800

0.057100

0.067200

South Africa

0.075900

0.084400

0.064400

0.084900

Thailand

0.028135

0.028190

0.027350

0.029900

Singapore

0.700400

0.722300

0.701600

0.745200

Financial Report Bühler Annual Report 2015 122

Property, plant and equipment. Property, plant and equipment is valued at acquisition or construction cost less depreciation and writedowns for impairment. Items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful life, except for land, which is not depreciated. Estimated useful lives of major classes of depreciable assets are as follows:

Goodwill is tested annually for impairment or whenever there are i mpairment indicators and is carried at cost less accumulated impairment losses.

Buildings AABuilding shell AAInstallations / extensions Machinery and technical equipment

Intangible assets. Goodwill represents the excess of the aggregate of the consideration transferred and the amount recognized for the non-controlling interest over the fair value of the net identifiable a ssets acquired and liabilities assumed. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on acquisitions of associates is included in investments in associates.

25 –100 years 15 – 35 years 8 –16 years

IT hardware

2 – 4 years

Other tangible fixed assets

3 – 7 years

The estimated useful life of the assets is regularly reviewed and, if necessary, the future depreciation charge is accelerated. Costs are only included in the asset’s carrying amount when it is probable that economic benefits associated with the item will flow to the Group in future periods and the cost of the item can be measured reliably. Investment properties. Investment properties are capitalized in the statement of financial position at cost less depreciation and writedowns for impairment. The fair values of such properties, which are reported separately in the notes, are based mainly on in-house calculations (comparison with valuations of similar properties). Repair and maintenance expenses are expensed as incurred. Leases. Leases of property, plant and equipment where the Group has substantially all the risks and rewards of ownership are classified as finance lease. Property, plant and equipment acquired through a finance lease is capitalized at the date of the commencement of the lease term at the present value of the minimum future lease payment or, if lower, at the amount equal to the fair value of the leased asset as determined at the inception of the lease. The associated liabilities are recognized as either current or non-current financial liabilities, depending on their due dates. Leases where substantially all the risks and rewards of ownership are not transferred to the Group are classified as operating leases. Payments under operating leases are charged to the statement of income on a straight-line basis over the period of the lease. Assets under finance leases where the Bühler Group acts as lessor are recognized as receivables in the amount of the net investment. The risks and rewards incidental to ownership are transferred to the lessee. Lease income from these finance leases is subsequently recognized over the term of the lease based on the effective interest method.

If the consideration transferred is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized d irectly in the statement of income. On disposal of a subsidiary, associate or joint venture, the related goodwill is included in the determination of profit or loss on disposal. Goodwill on acquisitions of subsidiaries and interests in joint ventures is allocated to cash-generating units for the purpose of impairment testing. Impairment losses relating to goodwill cannot be reversed in future periods. Acquired patents, licenses, trademarks, and similar rights are initially recorded at cost and amortized on a straight-line basis over their estimated useful life or a period not exceeding 15 years. Intangible assets acquired through business combinations are carried in the statement of financial position at the fair value allocated in the acquisition accounting and amortized over their estimated useful life. Impairment of assets. At each reporting date, the Group assesses whether there is any indication that an asset may be impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the smallest cash-generating unit to which the asset belongs. The recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs to sell and its value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cashgenerating unit is reduced to its recoverable amount. Impairment losses are recognized immediately in the statement of income. Where an impairment loss is subsequently reversed, the carrying amount of the asset or cash-generating unit is increased to the revised estimate of its recoverable amount. However, this increased amount cannot exceed the carrying amount that would have been determined had no impairment loss been recognized for that asset or cash-generating unit in prior periods. A reversal of an impairment loss is recognized immediately in the statement of income.

Financial Report Bühler Annual Report 2015 123

Financial assets and liabilities. A distinction is made between the following four categories: A A Financial assets “at fair value through profit or loss” are generally acquired with the intention of generating a profit from short-term fluctuations in price. A A “Held to maturity” investments are those with a fixed maturity that the Bühler Group has the positive intention and ability to hold to maturity. A A “Loans and receivables” include loans granted and accounts r eceivable. A A A ll other financial assets are classified as “available for sale”. Financial assets “at fair value through profit or loss” are recognized on acquisition at cost and subsequently measured at fair value, with fair value changes recognized in the financial result in the period in which they arise. “Held to maturity” investments as well as “Loans and receivables” are measured at amortized costs using the effective interest method. “Available for sale” financial assets are measured subsequent to their initial recognition at fair value, with unrealized gains and losses recognized in other comprehensive income. When the financial asset is either impaired or disposed of, the cumulative gain or loss previously recognized in the other comprehensive income is reclassified from equity to the statement of income. Purchases and sales are recognized at the trade date rather than at the settlement date. The fair values of financial assets that are traded in an active market are based on the fair values at the end of the reporting period. The fair values of financial assets that are not traded in an active market are determined using established valuation techniques. Financial liabilities consist mainly of borrowings, which are initially recognized with the proceeds received, net of transaction cost incurred. Subsequently, the borrowings are measured at amortized cost using the effective interest method with any difference between net proceeds and the principal value due on redemption being recognized in the statement of income over the term of the borrowings. Financial assets are derecognized when the Bühler Group relinquishes control over them, that is when the contractual cash flows from the asset are sold or expired. Financial liabilities are derecognized when its contractual obligations are discharged, cancelled or expired. Derivative financial instruments and hedge accounting. Derivative financial instruments are initially recognized at cost and subsequently at fair value (replacement cost). The method applied in recognizing the resulting profits or losses depends on whether a derivative was designated for hedging purposes, and if so, on the type of position being hedged. Certain derivatives may be used to hedge foreign currency risks in connection with a transaction that is highly likely to take place in future, or to hedge a fixed commitment (hedging of cash flows). When the hedge is implemented, the Group documents the relationship between the hedging instrument and the risk being hedged, as well as setting out risk management objectives and strategies. Furthermore, the Group records its assessment of the effectiveness of the hedging instrument with respect to the hedged cash flows, both when the hedging transaction is concluded and on an ongoing basis.

The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining maturity of the hedged item is more than twelve months; it is classified as a current asset or liability when the remaining maturity of the hedged item is less than twelve months. Trading derivatives are classified as a current asset or liab ility. The hedging of cash flows is undertaken for certain anticipated Group-internal transactions as well as for the foreign currency risk of firm commitments. The effective portion of the change in fair value of derivatives used for the hedging of cash flows is recognized in other comprehensive income. The ineffective portion of the hedging instrument is immediately recognized as financial result in the statement of income. Amounts accumulated in other comprehensive income are recycled in the statement of income in the periods when the hedged item a ffects profit or loss. When a forecasted transaction is no longer expected to occur, the cumulative gain or loss that was recorded in other comprehensive income is immediately transferred to the statement of income. Derivatives not designated as hedging instruments are accounted for at fair value through profit or loss. Changes in the fair value of these derivative instruments are recognized immediately as financial result in the statement of income. Non-current assets (or disposal groups) classified as held for sale. Any non-current assets held for sale and discontinued operations are presented under this item. This includes all those assets associated with the discontinuation of entire lines of business or geographical areas of operation, which are to be realized through a sale transaction rather than through continued use. Reclassifications are only made if management is committed to the sale and has started seeking buyers. In addition, the asset or disposal group must be available for sale in its current condition and its sale must be highly probable within one year. Non-current assets or disposal groups classified as held for sale are no longer depreciated. If necessary, they are written down for impairment. The income and expenses of discontinued operations are separated from ordinary income and expenses in the statement of income for both the reporting period and the prior-year down to the “profit after tax” level. The resulting gain or loss (after taxes) is presented separately in the statement of income.

Financial Report Bühler Annual Report 2015 124

Inventories. Inventories are carried at the lower of cost or net realizable value. The cost of finished goods, semi-finished goods and work in progress includes raw materials, direct labor and other directly attributable costs and overheads based on the normal capacity of production facilities, excluding borrowing costs. Cost is determined using the standard cost method. Standard costs are regularly reviewed and, if necessary, revised in light of current conditions. Net realizable value is the estimated selling price less cost to completion and selling expenses. Obsolete inventories and goods with a low rate of inventory turnover are written down. Advance payments to suppliers are also included in inventories. Accounts receivable. Trade and other accounts receivable are carried at the original invoice amount less allowances made for doubtful accounts, trade discounts, volume rebates and similar items. Financing of customer orders using the Group’s own funds as part of its treasury strategy is included in this item. Marketable securities. Marketable securities include those that are held for trading without participation features. Securities included in financial assets are categorized as available for sale. Cash and cash equivalents. Cash and cash equivalents include cash on hand, time, call and current balances with banks and similar institutions. Cash and cash equivalents are carried at nominal amount. Such balances are only reported as cash and cash equivalents if they are readily convertible to known amounts of cash, are subject to insignificant risk of changes in value, and have a maturity of three months or less from the date of acquisition. Employee benefits. The company has, apart from legally required social security arrangements, numerous independent pension plans, which are either defined contribution plans or defined benefit plans. Further on, the company sponsors numerous other long-term e mployee benefit plans.

Employee benefits – defined benefit plans. These plans are generally funded through payments to legally independent pension or insurance funds. The aggregate of the present value of the defined benefit obligation and the fair value of plan assets for each plan is recorded in the balance sheet as net defined benefit liability or net defined benefit asset under long-term financial assets. The defined benefit obligation is determined annually by independent actuaries using the projected unit credit method. If the fair value of the plan assets exceeds the present value of the defined benefit obligation, only a net pension asset is recorded, taking account of the asset ceiling. Pension costs consist of three elements: service costs, net interest, and remeasurements of employee benefits. Service costs are part of personnel expenses and consist of current service costs, past service costs (including gains / losses from plan amendments or curtailments) and gains / l osses from plan settlements. Net interest is recorded as part of personnel expenses and is determined by applying the discount rate to the net defined liability or net defined asset that exists at the beginning of the year. The gains and losses resulting from the actuarial valuation are immediately recorded in other comprehensive income as remeasurements employee benefits. The return on plan assets (excluding interest based on the discount rate) and any change in the effect of an asset ceiling are also recorded in this item. Remeasurements of employee benefits are not recycled through the income statement at any later point in time. Pension assets and pension liabilities in different defined benefit plans are not offset unless the Group has a legally enforceable right to use the surplus in one plan to settle obligations in the other plan. Employee benefits – defined contribution plans. In addition to the defined benefit plans described above, some Group companies sponsor defined contribution plans based on local practices and regulations. The Group’s contributions to defined contribution plans are charged to the statement of income in the period to which the contributions relate.

Financial Report Bühler Annual Report 2015 125

Employee benefits – other long-term employment benefits. Other long-term employment benefits include jubilee, early retirement or other long-term service benefits, as well as deferred compensation, if not due to be settled within twelve months after the year-end. The Bühler Group operates deferred compensation plans for members of the management. The deferred compensation plans comprise a vesting period of three years and an execution period of ten years from the grant date. The amounts are charged to the statement of income over the relevant vesting periods and are adjusted to reflect actual and expected levels of vesting. The value of the deferred compensation is determined annually based on the Group’s annual profit for the three preceding years and equity at year-end. The obligations for other long-term employment benefits are disclosed as provisions for personnel expenses. The measurement of these obligations differs from defined benefit plans in that all actuarial gains and losses are recognized immediately in the statement of income. Provisions. Provisions are recognized when Bühler has a legal or constructive obligation arising from past events, an outflow of resources embodying economic benefits to settle the obligation is probable, and a reliable estimate can be made of this amount. When the Group expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit or loss net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Taxes. Income taxes comprise the tax expense in respect of all recognized profits for the reporting period. They include current and deferred income taxes. Current income taxes are calculated on taxable profit. Provisions for deferred taxes are calculated according to the liability method. Deferred taxes are recognized for temporary differences between the carrying amounts of assets and liabilities in the consolidated statement of financial position and their tax base taking into account actual or expected local tax rates. Changes in deferred tax balances are recognized in the statement of income, except when they relate to items recognized outside the statement of income, in which case the deferred tax is treated accordingly. Current income tax relating to items recognized directly in equity is recognized in equity and not in the statement of income. Deferred tax assets are only recognized for temporary differences and unused tax loss carry-forwards to the extent that it is probable that future taxable profit will be available against which temporary differences or unused tax losses can be utilized. Borrowing costs. Borrowing costs which are directly attributable to the acquisition, construction, or production of a qualified asset are capitalized as part of the cost of that asset. Research and development costs. Research costs are recognized in the statement of income in the period in which they are incurred. Development costs are capitalized only if, and to the extent that, the IFRS criteria are met and it is highly probable that the present value of the expected returns will exceed the development costs. Capitalized development costs are amortized on a systematic basis over the period in which the returns are expected to flow to the Group. Construction contracts, revenue and profit recognition. Revenue is recognized when it is probable that the economic benefits associated with the transaction will flow to the entity and the amount of the revenue can be measured reliably. Revenue is measured at the fair value of the consideration received net of sales taxes and discounts. Revenue from the sale of goods is recognized when delivery has taken place and the transfer of risks and rewards of ownership has been completed. Long-term construction contracts are accounted for using the percentage-of-completion method. The stage of completion is determined using the cost-to-cost method. The costs include a risk premium. The consolidated statement of income includes the pro rata revenue and a carefully estimated share of the outcome of the contract; the consolidated statement of financial position includes the relevant assets or liabilities after offsetting advance payments.

Financial Report Bühler Annual Report 2015 126

Financial risk management As a result of its global activities, the Group is exposed to financial market risks (currency risk, interest rate risk, price risk), credit risks and liquidity risks. Financial risk management focuses on the management of currency risk and credit risk. Derivative financial instru-

ments are used to hedge certain risks. The risk management function is exercised by the Group Treasury department in close collaboration with the operating units, as well as in accordance with treasury directives.

Financial assets 2015 Cash reserves

Cash and cash equivalents CHF m

Securities CHF m

614.3

Financial assets “available for sale”

Cash reserves

12.2

Total market value CHF m

345.5

63.2

89.9

704.2

4.9

17.1

345.5

75.4

614.3

94.8

1,130.0

Cash and cash equivalents CHF m

Securities CHF m

Receivables & accruals CHF m

Financial assets CHF m

Total book value CHF m

Total market value CHF m

436.1

Financial assets “at fair value through profit or loss”

43.3

Receivables and loans

622.1

Financial assets “available for sale” Total financial assets

Total book value CHF m

63.2

Receivables and loans

2014

Financial assets CHF m

345.5

Financial assets “at fair value through profit or loss”

Total financial assets

Receivables & accruals CHF m

436.1

43.3

622.1

43.3

90.5

712.6

6.1

96.6

1,198.1

Financial liabilities 2015 Financial liabilities at amortized acquisition costs Financial liabilities “at fair value through profit and loss” Total financial liabilities

2014 Financial liabilities at amortized acquisition costs Financial liabilities “at fair value through profit and loss” Total financial liabilities

Financial liabilities CHF m

Payables / accruals and deferred income CHF m

Total book value CHF m

Total market value CHF m

136.6

546.3

682.9

16.4

16.4 153.0

546.3

699.3

Financial liabilities CHF m

Payables / accruals and deferred income CHF m

Total book value CHF m

Total market value CHF m

150.8

537.8

688.6

15.7

704.3

15.7 166.5

537.8

Financial Report Bühler Annual Report 2015 127

Market risk. Bühler is exposed to market risks that relate primarily to exchange rates, interest rates, and the fair value of investments in liquid financial assets. The Group monitors these risks on an ongoing basis and reports to the Finance Committee every month. In order to manage the volatility associated with these risks, the Group e mploys financial derivative instruments such as forward contracts and options. Exchange rate risk. The Group reports in Swiss francs and is therefore exposed to exchange rate movements primarily in European, North American, South American, and Asian currencies. Various contracts are concluded with a view to offsetting exchange rate-related changes in the value of assets, liabilities, and future transactions. Bühler also uses currency forwards and options for this purpose. Net investments in foreign Group companies are long-term in nature. Their fair value changes with exchange rates. Over the very long term, however, the change in the inflation rate should match the corresponding exchange rate movements, so that changes in the fair value of foreign investments will offset the exchange rate-related changes in value. For this reason, Bühler only hedges its investments in foreign Group companies in exceptional cases. The following table shows the hypothetical repercussions of changes in the key currency pairs on profit after taxes. The volatility value used in the calculation is that of one-year historical volatility as per December 31.

2015

Currency pair

Volatility

EUR / CHF

USD / CHF

7.7 %

10.4 %

Effect in profit and loss (rate increase) CHF m

0.2

– 3.5

Effect in profit and loss (rate decrease) CHF m

– 0.9

3.2

EUR / CHF

USD / CHF

2014

Currency pair

Volatility

2.7 %

7.4 %

Effect in profit and loss (rate increase) CHF m

1.4

– 5.1

Effect in profit and loss (rate decrease) CHF m

– 1.6

2.9

Commodity risk. Bühler is exposed to a certain degree of comm odity price risk due to fluctuations in the prices of commodities required for production process. The Group does not conclude any significant futures, forwards, or options to hedge future commodity purchases. Equity security risk. The Group buys shares in other companies in order to invest its liquid funds. It does so in accordance with the treasury strategy approved by the Board of Directors. This sets precise limits, including investments in shares. Bühler limits the risk across all asset classes by holding less than 5 % of the Group’s invested funds in any single outside company. Call or put options are covered by securities or cash positions.

Interest rate risk. Interest rate risk arises from changes in interest rates that may affect the net assets and results of the Bühler Group. These risks are managed and monitored centrally. The robust liquidity situation and the fact that the Group is not reliant on external f inancing mean that interest rate changes have no material impact on the financial result of the Group. Changes in market interest rates may have an impact on the value of bonds in the category of financial assets stated at fair value. Assuming that the interest rate for all currencies had increased by 100 basis points while all other factors remained constant, the increased interest rates would have had an effect on the profit after taxes of CHF – 0 .2 million (prior year: CHF – 0 .3 million). A reduction of the interest rate by 100 basis points would have the opposite effect on profit after taxes to the value of CHF 0.2 million (prior year: CHF 0.3 m illion). Credit risk. Credit risks arise in connection with liquid funds, derivative financial instruments, investments with banks, marketable securities, and receivables from customers. In order to minimize potential losses on customers receivables, an Operational Risk Management (ORM) guideline has been drawn up. The evaluation of our customers’ financial reliability and / o r the terms of payment and hedging on our deliveries are key concerns in this respect. In addition, it can be stated that none of our customers has outstanding payments accounting for more than 5 % of Group sales. The nominal value of the trade accounts receivable less valuation allowances is considered an approximation of the receivables’ fair value. The book values stated represent the maximum credit risk. The default risk on marketable securities, derivative financial instruments, money market contracts, current-account deposits, and time deposits is minimized on one hand through the exclusive purchase of securities with at least an A rating, and on the other by selecting only financial institutions with at least an investment grade rating as the Group’s main global banks. The risks are monitored rigorously and kept within stipulated parameters. Group guidelines ensure that the Group’s credit risk visà-vis financial instit utions is limited. The limits set are regularly moni tored and adjusted. The Group does not expect to incur any loss as a result of its counterparties being unable to meet their contractual obligations, nor does it have any cluster risks with respect to individual sectors or countries.

Financial Report Bühler Annual Report 2015 128

Receivables outstanding analysis Overdue

Total book value Dec 31, 2015 CHF m

Not due CHF m

< 3 months CHF m

4 – 6 months CHF m

Accounts receivable trade and other

618.5

512.1

52.2

17.3

Allowance for bad debts

– 10.1

0.0

– 0.6

0.0

5.9

614.3

518.0

51.6

17.3

2015

Associated companies and other related parties Total accounts receivable, net

2014 Accounts receivable trade and other Allowance for bad debts Associated companies and other related parties Total accounts receivable, net

10 –12 months CHF m

> 12 months CHF m

9.4

7.2

20.3

– 0.3

– 8.9

9.1

6.9

11.4

7– 9 months CHF m

10 –12 months CHF m

> 12 months CHF m

7– 9 months CHF m

Overdue

Total book value Dec 31, 2014 CHF m

Not due CHF m

< 3 months CHF m

4 – 6 months CHF m

625.3

528.6

54.5

13.0

5.4

7.2

16.6

– 9.7

0.0

– 1.3

0.0

– 0.3

– 1.5

– 6.6

6.5

622.1

535.1

53.2

13.0

5.1

5.7

10.0

Allowance for bad debts 2015 CHF m

2014 CHF m

January 1

– 9.7

– 10.9

Additions

– 4.2

– 4.5

Consumption

1.6

0.6

Release

1.6

5.2

Changes in scope of consolidation

0.0

Translation differences

0.6

– 0.1

– 10.1

– 9.7

December 31

Financial Report Bühler Annual Report 2015 129

Liquidity risk. Liquidity risk refers to the risk of the Group being u nable to fulfill its obligations when due or at a reasonable price. The Group Treasury department is responsible for monitoring liquidity, financing, and repayment. In addition, liquidity and financing risks and the related processes and guidelines are checked by corporate management. Bühler manages its liquidity risk on a consolidated b asis, taking into account business policy, tax, financial and regu latory considerations. Free cash flow represents the main source of financing. If required, the Group also has recourse to approved lines of credit. Corporate management monitors the Group’s net liquidity position by means of ongoing forecasts based on expected cash flows.

Capital management. One of the Group’s main objectives is to apply a well-managed capital management system in order to ensure the continuity of the Group and generate added value for all stakeholders. Another goal is to optimize the cost of capital. Bühler does not have to comply with any capital requirements imposed by third parties, since the extent of its financial liabilities to third parties is of a negligible magnitude. Group management reviews the capital structure of the Group and the equity of Group companies on a regular basis. As at December 31, 2015, the equity ratio stood at 45.7 % (December 31, 2014: 45.2 % ).

Book value Dec 31, 2015 CHF m

Cash outflow Total CHF m

< 1 year CHF m

1– 5 years CHF m

> 5 years CHF m

236.8

0.0

Liabilities to associates, non-consolidated companies and related parties

152.4

20.2

Liabilities others / accruals and deferred income

316.1

77.2

55.0

316.1

311.3

4.8

6.4

7.1

– 0.7

711.7

575.4

81.3

55.0

Total CHF m

< 1 year CHF m

1– 5 years CHF m

> 5 years CHF m

193.0

0.0

Liabilities to associates, non-consolidated companies and related parties

166.0

20.3

90.7

55.0

Liabilities others / accruals and deferred income

344.5

339.4

5.1

6.7

6.0

0.7

710.2

558.7

96.5

2015 Trade accounts payable to third parties Financial liabilities to banks

Derivative financial instruments held for hedging net Total

2014 Trade accounts payable to third parties Financial liabilities to banks

Derivative financial instruments held for hedging net Total

Book value Dec 31, 2014 CHF m

Cash outflow

55.0

Financial Report Bühler Annual Report 2015 130

Risk assessment. The Board of Directors of Bühler Group assesses corporate risks by undertaking systematic risk identification and analysis. Based on this assessment, the measures required for risk management in the company are defined and monitored. The corresponding meeting of the Board of Directors took place on December 14, 2015.

2015

Estimation of fair values. The fair values of financial instruments that are actively traded on markets are based on the relevant trading e xchange prices (offer prices) on the balance sheet reference date. Instruments of this nature are classified as Level 1. The fair values of financial instruments that are not actively traded on markets (e.g., derivative OTC instruments) are determined using valuation models. If all the parameters required for the valuation are based on observable market data, the instrument in question is classified as Level 2. If one or more parameters are based on unobservable market data, the instrument is classified as Level 3. In the period under review as well as in the prior year no transfer occurred within the Levels.

CHF m

Financial assets “at fair value through profit or loss”

Level 1

Level 2

Level 3

56.8

Total

56.8

Derivative financial assets

7.6

Financial assets “available for sale”

4.9

12.2

17.1

56.8

12.5

12.2

81.5

0.0

16.8

0.0

16.8

Level 1

Level 2

Level 3

Total

Total financial assets Derivative financial liabilities

16.8

Total financial liabilities

2014 Financial assets “at fair value through profit or loss”

CHF m

39.6 3.8

Financial assets “available for sale”

6.1 39.6

9.9

0.0

16.4

Derivative financial liabilities Total financial liabilities

16.8

39.6

Derivative financial assets Total financial assets

7.6

3.8 6.1 0.0

49.5

0.0

16.4

Financial Report Bühler Annual Report 2015 131

1 Sales revenue CHF 1,753.4 million (prior year: CHF 1,513.7 million) of the total oper ating income was determined using the percentage-of-completion method in the reporting period.

2 Other operating income 2015 CHF m

2014 CHF m

Earnings from coordination of consortium business

1.4

2.1

Interest income from trade finance

1.2

2.2

Rental income

0.4

0.3

Gains from sale of fixed assets

0.9

0.4

Other operating income related parties

0.4

0.0

Others

19.3

25.5

Total

23.6

30.5

2015 CHF m

2014 CHF m

Wages and salaries

578.3

591.1

Social security and employee benefit expenses

112.9

110.6

59.8

58.2

751.0

759.9

“Others” comprises a number of individually immaterial items which cannot be allocated to another line item.

3 Employee benefit expenses

Other personnel expenses Total

Financial Report Bühler Annual Report 2015 132

4 Other operating expenses Administration expenses

2015 CHF m

2014 CHF m

105.8

101.5

Rental and leasing expenses, dues

28.1

31.5

Energy, maintenance and repairs

30.3

31.6

Travel expenses

77.5

72.1

Outbound freight costs

63.5

64.1

Consultancy fees

10.0

10.6

Marketing costs

18.7

18.0

Agency fees

13.3

14.0

Warranty costs, loss orders

– 0.1

3.7

Other operating expenses related parties

26.0

24.9

Others

28.4

30.6

401.5

402.6

2015 CHF m

2014 CHF m

Interest income

4.5

5.4

Interest income from related parties

0.8

1.4

Realized gains from securities

4.2

5.9

Other financial income

1.3

1.0

Total finance income

10.8

13.7

Interest expenses

– 0.9

– 0.7

Interest expenses from related parties

– 1.5

– 2.5

Realized losses from securities

– 0.5

0.0

Fair value adjustments net

– 0.6

– 0.7

1.3

– 4.0

Total

5 Financial result

Foreign exchange gains and losses net Other financial expenses

– 1.8

– 3.1

Total finance expense

– 4.0

– 11.0

6.8

2.7

Total

The introduction of negative interest rates by the Swiss National Bank and continuingly low interest rates in most other major curren cies resulted in a low interest result including interest from related parties of CHF 2.9 million (2014: CHF 3.6 million). Due to strict hedg ing of foreign currency risks the discontinuation of the minimum EUR / CHF exchange rate had no material impact on the foreign e xchange result (2015: CHF 1.3 million; 2014: CHF – 4 .0 million).

Financial Report Bühler Annual Report 2015 133

6 Taxes 6.1 Income taxes

2015 CHF m

2014 CHF m

Income taxes relating to the reporting period

– 39.0

– 38.6

Income taxes relating to prior periods

1.5

3.3

Deferred taxes due to temporary differences

– 2.2

– 1.0

Deferred taxes due to recognition of tax loss carry-forwards

– 1.4

10.3

Deferred taxes due to changes in tax rates

– 0.1

– 0.4

– 41.2

– 26.4

8.2

11.0

6.2 Reconciliation of income taxes

2015 CHF m

2014 CHF m

Profit before taxes

183.9

147.3

– 40.4

– 28.9

– 1.6

– 0.4

Total Taxes recognized directly in shareholders’ equity

Components of tax expenses: Income taxes at anticipated tax rate Income and expenses not subject to tax Income taxes relating to prior periods Deferred taxes due to changes in tax rates Effect of tax loss carry-forwards

1.5

3.3

– 0.1

– 0.4

0.5

1.9

– 3.3

– 4.6

2.2

2.7

– 41.2

– 26.4

22.4 %

17.9 %

2015 CHF m

2014 CHF m

Unlimited

77.8

85.4

In more than five years

22.0

20.5

In two to five years

35.8

23.0

0.2

2.3

135.8

131.2

106.8

108.9

7.0

5.8

Effect of losses without recognition of deferred tax assets Other impacts Total income taxes Total income taxes in % of profit before taxes

The anticipated tax rate was 22.0 % (prior year: 19.6 % ) and consisted of the weighted average of the applicable local tax rates for income taxes. The tax rate increased to 22.4 % in 2015 from 17.9 % in 2014. Contributory factors for the resulted tax rate included a sustainable tax management and restructuring measures within the Group.

6.3 Tax loss carry-forwards Expiry

Within one year Total Tax loss carry-forwards accounted for in deferred taxes Tax effect on tax loss carry-forwards unaccounted for

The change in tax loss carry-forwards results from the use of tax losses in particular in Brazil, Germany, Japan, China, and the USA as well as from the impact of additional tax loss carry-forwards in par ticular in Germany, Spain, South East Asia, and China.

Financial Report Bühler Annual Report 2015 134

7 Movements of property, plant and equipment Acquisition cost

Investment properties CHF m

Land and buildings CHF m

Machinery and technical Other tangible equipment assets CHF m CHF m

Assets under construction CHF m

Total CHF m

715.8

January 1, 2014

0.4

255.1

269.2

135.3

55.8

Additions

0.0

11.6

21.5

7.6

14.4

55.1

Disposals

0.0

– 0.3

– 9.0

– 13.3

– 0.3

– 22.9 0.9

Changes in the scope of consolidation

0.0

0.3

0.6

0.0

Reclassifications

0.0

25.4

16.2

2.8

– 44.1

0.3

Translation differences

0.0

6.0

5.1

1.0

2.0

14.1

December 31, 2014

0.4

297.8

303.3

134.0

27.8

763.3

Additions

0.0

3.5

12.9

9.0

25.2

50.6

Disposals

0.0

– 7.0

– 24.2

– 4.7

– 0.2

– 36.2 17.2

Changes in the scope of consolidation

0.0

9.1

4.3

3.8

0.0

Reclassifications

0.0

22.6

7.9

4.3

– 31.9

2.9

Translation differences

0.0

– 14.4

– 14.0

– 7.3

– 1.4

– 37.1

December 31, 2015

0.4

311.6

290.2

139.1

19.5

760.7

January 1, 2014

0.0

– 70.6

– 159.2

– 102.9

– 0.3

– 333.0

Additions

0.0

– 7.3

– 19.0

– 11.4

0.0

– 37.7

Disposals

0.0

0.1

8.1

12.3

0.0

20.5

Changes in the scope of consolidation

0.0

Impairment

0.0

– 2.1

– 0.3

0.0

– 2.4

Reclassifications

0.0

– 0.3

0.0

– 0.6

Translation differences

0.0

– 0.9

– 1.3

– 0.6

0.0

– 2.8

December 31, 2014

0.0

– 78.7

– 173.8

– 103.2

– 0.3

– 356.0

Additions

0.0

– 8.6

– 19.1

– 11.2

– 0.1

– 39.0

Disposals

0.0

3.3

22.5

4.5

0.0

30.3

Changes in the scope of consolidation

0.0

– 3.5

– 3.4

– 3.0

0.0

– 9.9

Impairment

0.0

Reclassifications

0.0

0.1

– 1.2

– 1.8

0.0

– 2.9

Translation differences

0.0

2.9

8.4

5.8

0.0

17.2

December 31, 2015

0.0

– 84.5

– 166.6

– 108.8

– 0.4

– 360.3

Depreciation

Net book values January 1, 2015

0.4

219.1

129.5

30.8

27.5

407.3

December 31, 2015

0.4

227.0

123.6

30.3

19.1

400.4

The market value of investment properties amounted to CHF 1.4 mil lion in the reporting year (prior year: CHF 1.5 million). As in the pre vious year, the Group did not enter in financial lease contracts as lessee. The fire insurance values (usually reinstatement values) of tangible fixed assets as at December 31, 2015, amounted to CHF 905.6 million (prior year: CHF 939.4 million). Net loss on dis

posal of tangible fixed assets amounted to CHF – 0 .6 million (prior year: net loss CHF – 0 .4 million). Commitments relating to property, plant and equipment, which are not shown in the balance sheet, amounted to CHF 57.8 million (prior year: CHF 69.8 million) and are mainly related to investments in the factories in China.

Financial Report Bühler Annual Report 2015 135

8 Movements of intangible assets Acquisition cost January 1, 2014

Goodwill CHF m

Other intangible assets CHF m

Total CHF m

405.8

259.9

145.9

Additions

0.0

2.7

Disposals

0.0

– 2.2

Changes in the scope of consolidation

8.8

7.1

15.9

Reclassifications

0.0

0.1

Translation differences

4.4

1.7

6.1

273.1

155.3

428.4

December 31, 2014 Additions

0.0

3.7

Disposals

0.0

– 3.0

Changes in the scope of consolidation

3.4

5.0

8.4

Reclassifications

0.0

3.3

Translation differences

– 18.2

– 10.3

– 28.5

December 31, 2015

258.3

154.0

412.3

Amortization – 29.0

– 78.6

– 107.6

Additions

January 1, 2014

0.0

– 20.2

Disposals

0.0

2.2

Impairment

0.0

Changes in the scope of consolidation

0.0

Reclassifications

0.0

– 0.7

– 1.1

– 1.8

– 29.7

– 97.7

– 127.4

Additions

0.0

– 17.2

Disposals

0.0

3.0

Impairment

0.0

Changes in the scope of consolidation

0.0

– 2.1

Reclassifications

0.0

– 3.2

Translation differences

1.8

6.5

8.3

– 27.9

– 110.7

– 138.6

January 1, 2015

243.4

57.6

301.0

December 31, 2015

230.4

43.3

273.7

Translation differences December 31, 2014

December 31, 2015

Net book values

Additions to goodwill and intangible assets are mainly attributable to acquisitions in the year under review (see Note 22). Other intangible assets mainly comprise customer relationships, technologies, patents, and software.

Financial Report Bühler Annual Report 2015 136

9 Investments in associates Net book values January 1

Share in equity CHF m

Goodwill CHF m

Total 2015 CHF m

Total 2014 CHF m

10.7

7.3

18.0

17.9

Reclassifications

0.0

Additions

4.2

5.9

10.1

0.0

Impairment

0.0

Share of net profit

4.5

0.0

4.5

1.1

Dividends received

– 0.9

0.0

– 0.9

Translation differences

– 1.8

– 0.9

– 2.7

– 0.1

December 31

16.7

12.3

29.0

18.0

2015 CHF m

2014 CHF m

31.8

19.7

4.5

1.1

Non-current assets

14.6

11.2

Current assets

21.9

16.6

Non-current liabilities

10.5

10.9

Translation differences are recognized in other comprehensive in come. The attributable net result is shown under “other operating income” in the statement of income.

Cumulative values of the associated companies Share of sales revenue Share of net profit Balance sheet values:

Current liabilities Shareholders’ equity

The associated companies mainly comprise three companies, two in Southern Europe and one in Switzerland. Bühler has a shareholding of 26 % , 49 % and 35 % respectively. The figures are based on avail able preview closing data as of December 31, 2015.

9.3

6.6

16.7

10.3

Financial Report Bühler Annual Report 2015 137

10 Long-term financial assets Due 1– 5 years CHF m

> 5 years CHF m

Total CHF m

Securities

0.0

12.2

Overfunding of post-employment benefit plans

0.0

16.1

Loans to non-consolidated companies

0.5

0.0

0.5

Loans to associated companies

16.1

0.0

16.1

Other non-current financial assets

73.3

4.9

78.2

Total

89.9

33.2

123.1

Due 1– 5 years CHF m

> 5 years CHF m

Total CHF m

Securities

0.0

Overfunding of post-employment benefit plans

0.0

2.4

Loans to non-consolidated companies

0.9

0.0

0.9

Loans to associated companies

17.3

0.0

17.3

Other non-current financial assets

72.3

6.1

78.4

Total

90.5

8.5

99.0

Net book values

2015 CHF m

2014 CHF m

Tangible fixed assets

December 31, 2015

December 31, 2014

11 Deferred tax assets and liabilities – 12.0

– 16.6

Post-employment benefits

32.9

24.0

Provisions

– 3.5

– 3.3

– 87.5

– 75.5

29.1

30.5

Total

– 41.0

– 40.9

Recognized on the balance sheet as deferred tax liabilities

– 79.4

– 82.6

38.5

41.7

Other items Tax loss carry-forwards

Recognized on the balance sheet as deferred tax assets

Change of deferred tax assets for post-employment benefits is pri marily due to a significant increase in the net defined benefit obliga tion (see Note 17). Deferred tax assets and liabilities are offset if there is a legally enforceable right to set them off and if the calculations of income taxes relate to the same taxation authority.

Financial Report Bühler Annual Report 2015 138

12 Inventories Raw materials and supplies

Gross value CHF m

Value adjustments CHF m

2015 CHF m

2014 CHF m

144.3

– 19.6

124.7

130.3

Unfinished goods

52.5

– 10.4

42.1

42.5

Finished goods and merchandise

77.4

– 5.7

71.7

73.6

Work in progress

84.6

– 0.9

83.7

86.0

Advance payments to suppliers

25.6

0.0

25.6

25.1

384.4

– 36.6

347.8

357.5

2015 CHF m

2014 CHF m

Total

In prior year, value adjustments deducted from inventories amounted to CHF – 3 8.9 million. No material reversals of value adjustments of the prior year were recognized in the reporting year.

13 Production orders in progress Production orders in progress

449.0

308.4

Advance payments from customers

– 157.7

– 106.3

Net assets of production orders in progress

291.3

202.1

Production orders in progress

– 30.3

– 24.4

– 308.4

– 363.8

Net liabilities of production orders in progress

– 338.7

– 388.2

Accumulated costs and recognized profits

1,766.8

1,690.1

2015 CHF m

2014 CHF m

Advance payments from customers

14 Trade accounts receivable AA From third parties

512.4

508.1

AA From non-consolidated companies

3.5

4.2

AA From associates

0.5

0.6

AA From related parties

0.1

– 10.1

– 9.7

506.4

503.3

Allowance for bad debts Total

Trade accounts receivable include supplier credits of CHF 73.4 mil lion (prior year: CHF 79.4 million), which are financed in accordance with the Treasury strategy. A generally high degree of liquidity char acterizes these items. CHF 28.6 million (prior year: CHF 34.5 million) of these will not be due within the next twelve months.

Financial Report Bühler Annual Report 2015 139

15 Other accounts receivable, prepayments and accrued income Value-added tax credits

2015 CHF m

2014 CHF m

38.2

37.9

Other accounts receivable 47.4

56.8

AA From non-consolidated companies

AA From third parties

1.9

1.1

AA From associates

0.0

0.4

AA From related parties

0.0

Prepayments and accrued income

20.5

22.6

Allowance for bad debts

– 0.1

0.0

107.9

118.8

Total

16 Marketable securities and derivative financial instruments Futures and options were entered into with banks mainly to hedge currency risks. The following positions were open as of Decem ber 31, 2015: Contract or underlying principal amount

16.1 Derivative financial instruments

2015 CHF m

2014 CHF m

Positive fair values 2015 CHF m

Negative fair values

2014 CHF m

2015 CHF m

2014 CHF m

16.0

Currency-related instruments Forward foreign exchange rate contracts

975.4

745.2

7.5

3.6

16.8

AA Held for trading

645.5

443.0

4.5

1.4

7.4

7.1

AA Cash flow hedges (effective part)

329.9

302.2

3.0

2.2

9.4

8.9

26.3

61.7

0.1

0.2

0.0

0.4

Total of currency-related instruments

Over-the-counter currency options

1,001.7

806.9

7.6

3.8

16.8

16.4

Total derivative financial instruments

1,001.7

806.9

7.6

3.8

16.8

16.4

952.9

781.5

6.5

3.7

16.3

15.6

48.8

25.4

1.1

0.1

0.5

0.8

Thereof included in securities and in short-term financial liabilities Thereof included in other long-term financial assets and financial liabilities

Financial Report B端hler Annual Report 2015 140

USD CHF m

EUR CHF m

Other currencies CHF m

Total 2015 CHF m

Total 2014 CHF m

Forward foreign exchange rate contracts

377.0

424.6

173.8

975.4

745.2

AA Held for trading

247.3

280.1

118.1

645.5

443.0

AA Cash flow hedges

129.7

144.5

55.7

329.9

302.2

9.8

16.5

0.0

26.3

61.7

Total of currency-related instruments

386.8

441.1

173.8

1,001.7

806.9

Total derivative financial instruments

386.8

441.1

173.8

1,001.7

806.9

2015 CHF m

2014 CHF m

Currency-related instruments

Over-the-counter currency options

Positive replacement values are included in securities or long-term financial assets and negative replacement values are included in finan足 cial liabilities.

16.2 Marketable securities Equity securities

4.2

Bonds

9.4

10.4

Derivative financial instruments

6.5

3.7

Accrued interest on debt securities

0.0

0.1

Other securities

43.1

24.9

Total marketable securities

63.2

43.3

Financial Report Bühler Annual Report 2015 141

17 Defined benefit obligations The company’s main defined benefit pension plans are in Switzerland and Germany. The defined benefit plans in Switzerland are funded through legally separate trustee administered funds. The cash funding of these plans, which may from time to time involve special payments, is designed to ensure that present and future contributions should be sufficient to meet future liabilities. The defined benefit plans in Germany are partially unfunded. Pension plans in Switzerland. The company’s Swiss pension plans contain a cash balance benefit formula, accounted for as a defined benefit plan. Employer and employee contributions are defined in the pension fund rules in terms of an age-related sliding scale of percentages of salary. Under Swiss law the pension fund guarantees the vested benefit amount as confirmed annually to members. Interest may be added to member balances at the discretion of the Board of Trustees. At retirement date members have the right to take their retirement benefit as a lump sum, an annuity or part as a lump sum with the balance converted to a fixed annuity at the rates defined in the fund rules. The Board of Trustees may change the annuity at their discretion subject to the plan’s funded status including sufficient free funds as determined according to Swiss statutory valuation rules.

17.1 Actuarial assumptions

Bühler AG pledged to assure any deficit of the pension fund in 2013. After the restructuring, the pension fund reached a coverage of more than 100 % , which is why the accrued amount (CHF 13.8 million) was released in 2014. Pension plans in Germany. The company’s German pension plans have defined benefit rights based on their length of service and / o r final pensionable pay. The employer gives a direct promise to the employee to pay him a certain amount once he retires. At retirement date the value of their benefits is paid as an annuity. The company is required by German law to increase pensions in payment all three years according to price inflation, as measured by the Consumer Price Index or according to comparable pay grades. Direct pension promises are usually funded via book-reserve accruals. In 2008 the company set up a trust fund to fund their pension liabilities for Bühler GmbH, Braunschweig. No material business combinations / c urtailments / s ettlements occurred during the reported financial period. Status of the company’s defined benefit plans. The status of the company’s defined benefit plans using actuarial assumptions determined in accordance with IAS 19 is summarized below.

2015

2014

Discount rate

1.6 %

2.1 %

Future salary increases

1.5 %

1.4 %

Future pension increases

0.2 %

Financial Report Bühler Annual Report 2015 142

17.2 Reconciliation of defined benefit obligation and fair value of plan assets Defined benefit obligation as of January 1

2015 CHF m

2014 CHF m

1,283.2

1,202.7

Interest costs

26.1

32.1

Current service costs (employer)

24.2

21.5

Contributions by plan participants

17.6

17.4

Past service costs

– 0.1

0.0

– 66.3

– 64.9

Business combinations

9.0

0.0

Curtailment and settlements

0.0

Other effects

0.6

1.2

Actuarial (gain) loss on obligation

56.6

73.8

Currency translation adjustments

– 9.4

– 0.6

1,341.5

1,283.2

Benefits (paid) / deposited

Defined benefit obligation as of December 31 Reconciliation of the fair value of plan assets Fair value of plan assets as of January 1

1,185.1

1,157.7

Expected return on plan assets

24.1

30.5

Contributions by the employer

28.8

14.7

Contributions by plan participants

17.6

17.4

– 66.3

– 64.9

Business combinations

0.0

Curtailment and settlements

0.0

Other effects

0.0

Return on plan assets excl. interest income

7.1

29.7

– 5.7

0.0

1,190.7

1,185.1

31.2

60.2

2015 CHF m

2014 CHF m

– 7.1

– 29.7

Benefits (paid) / deposited

Currency translation adjustments Fair value of plan assets as of December 31 Actual return on plan assets

17.3 Remeasurements of employee benefits Return on plan assets excl. interest income Current year actuarial loss (gain) on benefit obligation AA Change in demographic assumptions AA Change in financial assumptions AA Experience adjustments Change in effect of asset ceiling Other effects Remeasurements recognized in other comprehensive income Cumulative amount recognized in other comprehensive income

0.4

0.0

66.0

83.4

– 9.9

– 9.6

– 10.7

– 2.4

0.0

0.7

38.7

42.4

285.0

246.3

Financial Report Bühler Annual Report 2015 143

17.4 Reconciliation of the amount recognized in the statement of financial position at year-end

2015 CHF m

2014 CHF m

Present value of funded defined benefit obligation

1,341.5

1,283.2

Fair value of plan assets

1,190.7

1,185.1

150.8

98.1

0.0

10.5

150.8

108.6

Deficit / (surplus) Adjustment to asset ceiling Liability (asset) recognized in the statement of financial position Thereof recognized as separate asset

– 16.1

– 2.4

Thereof recognized as separate liability

166.9

111.0

17.5 Pension expenses recognized in the statement of income

2015 CHF m

2014 CHF m

24.4

22.0

2.0

1.6

– 0.1

0.0

Effect of curtailment and settlements

0.0

Other effects

0.9

Interest (income) on reimbursement right

0.0

Expenses recognized in the statement of income

27.2

24.5

Thereof service costs and administration costs

25.0

22.6

2.2

1.9

Current service costs (employer) Net interest employee benefit Past service costs

Thereof net interest on the net defined benefit liability (asset)

2016 CHF m

17.6 Best estimate of contributions Contributions by the employer

27.5

17.7 Plan assets at fair value consist of

2015 CHF m

2014 CHF m

Equity instruments third parties

301.0

367.4

Debt instruments third parties

358.8

277.3

Real estate

338.0

290.7

80.4

150.2

112.5

99.5

1,190.7

1,185.1

Cash and cash equivalents Others Total plan assets at fair value

Financial Report Bühler Annual Report 2015 144

2015 Switzerland

2015 Germany

2014 Switzerland

2014 Germany

Discount rate

1.4 %

2.4 %

2.0 %

2.5 %

Future salary increases

1.5 %

0.0 %

1.5 %

0.0 %

Costs of defined benefit plans (CHF m)

25.4

1.4

22.4

1.6

Remeasurements employee benefits (CHF m)

36.8

1.7

32.2

8.4

2015 CHF m

2014 CHF m

6.1

5.8

17.8 Information about the significant plans

17.9 Defined contribution plan Expenses for defined contribution plan

The discount rates are determined by referencing market yields at the end of the reporting period on AA- and AAA-rated corporate bonds. In recent years, longevity has increased in all major countries in which the company sponsors pension plans. The company sets mortality assumptions after considering the most recent statistics available and uses generational mortality tables to estimate probable future mortality improvements. Sensitivities of significant actuarial assumptions. The discount rate and the future increase in salaries were identified as significant actuarial assumptions. The following impacts on the defined benefit obli gation are to be expected:

A A 0 .25 % increase / d ecrease in the discount rate would lead to

a decrease / i ncrease of 3.5 % in the defined benefit obligation. A A 0 .25 % increase / d ecrease in the expected increase in salaries

would lead to an increase / d ecrease of less than 0.5 % in the defined benefit obligation. The sensitivity analysis is based on realistically possible changes as of the end of the reporting year. The average duration of the defined benefit plan obligation at the end of the reporting period is 13.9 years (2014: 13.4 years).

18 Short- and long-term provisions Provisions for warranties CHF m

Provisions for personnel expenses CHF m

Other provisions CHF m

2015 CHF m

2014 CHF m

January 1

40.6

26.1

19.2

85.9

90.4

Additions

19.2

9.5

14.6

43.3

46.7

Utilization

– 14.1

– 7.8

– 19.2

– 41.1

– 38.8

Release

– 9.0

– 1.6

– 2.3

– 12.9

– 12.4

Changes in the scope of consolidation

0.4

0.3

0.5

1.2

0.6

Reclassification

0.0

0.4

0.0

0.4

0.0

Present value adjustment

0.0

Translation differences

– 2.4

– 0.9

– 2.3

– 5.6

– 0.6

December 31

34.7

25.9

10.5

71.2

85.9

Thereof short-term

28.9

7.8

9.6

46.3

60.1

Thereof long-term

5.9

18.2

0.8

24.9

25.8

Warranty provisions are created with a view to meet potential guarantee obligations arising from the sale of machinery and technical equipment. The calculation is based on historic values as well as recognized claims.

Among other things the remaining provisions include provisions for pending legal cases, other project risks as well as a provision for restructuring of CHF 1.9 million.

Provisions for personnel expenses mainly include long-term employee benefits, such as long-service benefits, partial retirement, jubilee benefits, and deferred compensation plans.

Approximately 36 % (prior year: 39 % ) of the cash out flows of the long-term provisions are expected to materialize within the next three years.

Financial Report B端hler Annual Report 2015 145

19 Share capital As of December 31, 2015, share capital amounted to CHF 15.0 million (prior year: CHF 15.0 million) and consisted of 105,000 (prior year: 105,000) registered shares with nominal value of CHF 100 each and 112,500 (prior year: 112,500) with nominal value of CHF 40 each.

20 Trade accounts payable AA To third parties

2015 CHF m

2014 CHF m

236.8

193.0

AA To associates

1.4

AA To non-consolidated companies

0.6

0.7

AA To related parties

1.7

240.5

196.8

2015 CHF m

2014 CHF m

Total

21 Other short-term liabilities, accruals and deferred income Value-added tax owed Advance payments

9.5

18.7

97.2

132.5

37.0

34.7

Other liabilities AA To third parties AA To non-consolidated companies

2.2

2.1

AA To related parties

14.2

14.3

Personnel-related accruals

73.8

72.2

Other accruals and deferred income

71.9

66.6

305.8

341.1

Total

Financial Report Bühler Annual Report 2015 146

22 Additions and disposals of Group companies Market value 2015 CHF m

Market value 2014 CHF m

Cash and cash equivalents

0.4

2.9

Trade accounts receivable

2.8

2.3

Other receivables

4.1

0.9

10.1

6.1

0.0

17.4

12.2

Property, plant and equipment

7.2

0.9

Intangible assets

3.0

7.1

Financial assets

0.0

Deferred tax asset

1.3

0.6

Non-current assets

11.5

8.6

Trade accounts payable

– 1.1

– 5.4

0.0

Inventories Net assets of production orders in progress Current assets

Net liabilities of production orders in progress Short-term provisions

– 0.8

0.0

Other short-term liabilities, accruals and deferred income

– 3.1

– 7.2

Current liabilities and provisions

– 5.0

– 12.6

Deferred tax liabilities

– 1.1

– 1.5

Non-current liabilities and provisions

– 18.5

0.0

Non-current liabilities and provisions

– 19.6

– 1.5

Change in net assets

4.4

6.7

Non-controlling interests

0.0

– 1.8

Goodwill arising on acquisitions

3.4

8.8

Gain on sale of business

0.0

Addition (+) to / disposal (–) from the Group

7.8

13.7

Outstanding sale / purchase price payment and other non-cash items

0.0

Cash disposed (–) / acquired (+)

0.4

2.9

– 7.4

– 10.8

Cash flow from changes in the scope of consolidation

The goodwill in the amount of CHF 3.4 million (prior year: CHF 8.8 million) comprises the value of expected synergies arising from the a cquisitions. As in the previous year, the acquisition-related costs were not material. They were recognized as other operating expenses in the statement of income.

Financial Report Bühler Annual Report 2015 147

Additions to consolidation scope 2015 Acquisition of Hosokawa Bepex GmbH, Leingarten, Germany. On September 30, 2015 the Group acquired 100 % of the shares in H osokawa Bepex GmbH, Leingarten (renamed to Bühler Leingarten GmbH). The company is a global plant supplier in the field of confectionery and bakery and offers solutions ranging from engineering, design, manufacturing, and installation to commissioning of entire plants. From the date of acquisition, Bühler GmbH, Leingarten contributed CHF 7.7 million of revenue and CHF 0.03 million to profit before tax. If the combination had taken place at the beginning of of the year, revenue would have been CHF 21.0 Mio. and profit before tax would have been CHF –1.9 million. Establishment of Buhler Pakistan (Pvt.) Ltd. On April 28, 2015, the Group founded Buhler Pakistan (Pvt.) Ltd. with a capital of PKR 30.0 million. The company conducts sales activities and provides services to our customers in Pakistan. Establishment of Shijiazhuang Buhler Mechanical Co. Ltd. On June 6, 2015, the Group founded Shijiazhuang Buhler Mechanical Co. Ltd. with a capital of CNY 2.0 million. The company conducts sales activ ities and provides services to our customers in China. Establishment of Buhler DMCC, Dubai. On May 21, 2015, the Group founded Buhler DMCC, Dubai with a capital of AED 0.05 million. The company is the new regional headquarters for Middle East & Africa, conducts sales support and provides services to our customers in the region. 2014 Acquisition of Buhler (Guangzhou) Food Machinery Co. Ltd., China. On April 30, 2014 the Group acquired 80 % of the shares in Guangzhou Jinfu Electromechanical Technology Co. Ltd. (“Jinfu”) which was subsequently renamed. The company manufactures and sells various kinds of rice and wheat flour noodle production equipment. The main objective of this acquisition is to enter the Asian Noodles market in China and outside China. Acquisition of Wuhan Mingbo Electromechanical Equipment Co. Ltd., China. On July 17, 2014 the Group acquired 80 % of the shares in Wuhan Mingbo Electromechanical Equipment Co. Ltd., China. The company manufactures and sells feed machines for the Aqua market in China. Establishment of Buhler Malaysia Sdn. Bhd., Kuala Lumpur. On July 7, 2014 the Group founded Buhler Malaysia Sdn. Bhd. with a capital of MYR 1.0 million. The company conducts sales activities and provides services to our customers in Malaysia. Acquisitions of additional interests Acquisition of additional interest in Buhler (Changzhou) Machinery Co. Ltd., Liyang City. On January 18, 2015, the Group bought additional 20 % shares of Buhler (Changzhou) Machinery Co. Ltd., increasing its ownership to 100 % . A cash consideration of CHF 29.7 million was paid to the non-controlling shareholders. The carrying value of the net assets of Buhler (Changzhou) Machinery Co. Ltd. (excluding goodwill on the original acquisition) was CHF 50.1 million. Following is a schedule of additional interest acquired in Buhler (Changzhou) Machinery Co. Ltd.:

CHF m

Cash consideration paid to non-controlling shareholders

29.9

Carrying value of the additional interest

10.0

Difference recognized in retained earnings

19.9

Acquisition of additional interest in Buhler (Guangzhou) Food Machinery Co. Ltd., Guangzhou City. On August 8, 2015, the Group bought additional 20 % shares of Buhler (Guangzhou) Food Machinery Co. Ltd., increasing its ownership to 100 % . A cash consideration of CHF 2.3 million was paid to the non-controlling shareholders. The carrying value of the net assets of Buhler (Guangzhou) Food Machinery Co. Ltd. (excluding goodwill on the original acquisition) was CHF 5.8 million. Following is a schedule of additional interest acquired in Buhler (Guangzhou) Food Machinery Co. Ltd.: CHF m

Cash consideration paid to non-controlling shareholders

2.3

Carrying value of the additional interest

1.2

Difference recognized in retained earnings

1.1

Acquisition of additional interest in Buhler Yijiete Color Sorting Machinery (Hefei) Co. Ltd., Hefei. On April 10, 2015, the Group bought additional 30 % shares of Buhler Yijiete Color Sorting Machinery (Hefei) Co. Ltd., increasing its ownership to 100 % . A cash consideration of CHF 5.5 million was paid to the non-controlling shareholders. The carrying value of the net assets of Buhler Yijiete Color Sorting Machinery (Hefei) Co. Ltd. (excluding goodwill on the original acquisition) was CHF 12.2 million. Following is a schedule of additional interest acquired in Buhler Yijiete Color Sorting Machinery ( Hefei) Co. Ltd.: CHF m

Cash consideration paid to non-controlling shareholders

5.5

Carrying value of the additional interest

3.8

Difference recognized in retained earnings

1.7

23 Impairment tests The recoverable amounts have been determined based on a valuein-use calculation. This calculation uses cash flow projections based on financial budgets approved by the respective division management covering a five-year period. Key assumptions used in value-in-use calculations. The calculations of values in use are most sensitive to the following assumptions: A A Gross margin A A Discount rate A A Growth rate used to extrapolate cash flows beyond the budget period A A Raw materials price inflation A A Market share assumptions Gross margin – Gross margins are based on average values reported in the three years preceding the start of the forecast period. These gross margins are adjusted based on the latest available information

Financial Report Bühler Annual Report 2015 148

regarding the actual gross margins as well as anticipated efficiency improvements over the forecast period. Discount rate – The discount rates which are used to calculate the discounted present value of the future cash flows are derived from a capital asset pricing model using market data such as the yield on a ten-year government bond of the respective country or specific country risk premiums. Growth rate estimates – The assumptions used in the calculation reflect the long-term expected growth rate of the operational business and are based on the growth strategy of the Group. Raw materials price inflation – Estimates are obtained from published indices relating to specific commodities. Past actual raw materials price movements have been used as an indicator of future price movements.

Goodwill 2015

Market share assumptions – The management assumes that the unit’s position, relative to that of its competitors, may not change significantly over the forecast period. Market share is expected to be stable over the forecast period. Result of the impairment test. The impairment tests performed on December 31, 2015, support the value of the carrying amount. Like in prior year, no impairment needs to be recognized. Sensitivity to changes in assumptions. A possible increase in the discount rate of 1 percentage point result in the carrying amount not exceeding its recoverable amount (prior year: CHF 4.2 million). A drop in sales of 5 percentage point result in the carrying amount not e xceeding its recoverable amount (prior year: CHF 6.6 million).

Book value CHF m

Base data used Discount rate

Growth rate

Leybold Optics Verwaltungs GmbH, Alzenau

79.1

9.9 %

1.2 %

Buhler Aeroglide Corporation, Cary

61.2

10.5 %

1.2 %

Bühler Deutschland GmbH, Beilngries

37.1

9.9 %

1.2 %

Bühler Barth GmbH, Freiberg a.N.

16.0

9.9 %

1.2 %

Buhler Yijiete Color Sorting Machinery (Hefei) Co. Ltd., Hefei

7.3

12.2 %

3.1 %

Bangsheng Bio-Technology Co. Ltd., Guangzhou

6.9

12.2 %

3.1 %

Wuhan Mingbo Electromechanical Equipment Co. Ltd., Wuhan

6.2

12.2 %

3.1 %

Bühler Haguenau S.A.S., Haguenau

5.1

10.4 %

0.9 %

Bühler GmbH, Leingarten

3.5

9.9 %

1.2 %

Others

8.0

10.3 % –12.4 %

0.9 % – 2.5 %

Total as of December 31, 2015

Goodwill 2014

230.4

Book value CHF m

Base data used Discount rate

Growth rate

Leybold Optics Verwaltungs GmbH, Alzenau

87.9

10.0 %

1.2 %

Buhler Aeroglide Corporation, Cary

61.1

10.4 %

1.2 %

Bühler Deutschland GmbH, Beilngries

41.2

10.0 %

1.2 %

Bühler Barth GmbH, Freiberg a.N.

17.8

10.0 %

1.2 %

Buhler Yijiete Color Sorting Machinery (Hefei) Co. Ltd., Hefei

7.5

11.9 %

3.1 %

Bangsheng Bio-Technology Co. Ltd., Guangzhou

7.1

11.9 %

3.1 %

Wuhan Mingbo Electromechanical Equipment Co. Ltd., Wuhan

6.4

11.9 %

3.1 %

Bühler Haguenau S.A.S., Haguenau

5.7

9.4 %

0.9 %

Others

8.7

10.4 % –12.3 %

0.9 % – 3.5 %

Total as of December 31, 2014

243.4

Financial Report Bühler Annual Report 2015 149

24 Contingent liabilities 2015 CHF m

2014 CHF m

Sureties, guarantees and other obligations

1.4

0.7

Total

1.4

0.7

2015 CHF m

2014 CHF m

Leasing obligation up to one year

16.5

18.3

Leasing obligation as of one to five years

20.4

26.4

Leasing obligation over five years

12.4

7.1

Total

49.3

51.8

25 Off-balance sheet obligations under operating leases

This item mainly includes obligations under long-term leasing agreements relating to properties in Germany, Switzerland and Brazil.

26 Assets pledged or assigned to secure own liabilities In connection with the long-term loan from the shareholders of CHF 55 million and open legal cases, assets of CHF 45.0 million and CHF 0.9 million respectively (prior year: CHF 45.0 million and CHF 1.3 million) serve as collateral for own liabilities where the right of disposal is limited.

27 Research and development costs Research and development costs directly charged to the statement of income in the reporting period amounted to CHF 102.4 million (prior year: CHF 98.9 million).

28 Related parties Related-party transactions. A loan towards the shareholders in the amount of CHF 70.0 million (prior year: CHF 70.0 million) is disclosed under other non-current financial assets. Loans from the shareholders of CHF 132.2 million (prior year: CHF 132.2 million) are disclosed under long-term financial liabilities. Liabilities to pension plans amounted to CHF 13.5 million as per 2015 (prior year: CHF 27.0 mil-

lion) and are mainly related to a comprehensive restructuring of the Swiss pension fund. This amount is shown under other short-term liabilities (prior-year amount was split by CHF 13.5 million each into long-term financial liabilities and other short-term liabilities). Other related-party positions are disclosed separately in the notes. Relatedparty transactions are conducted at arm’s length. Key management compensation. Key management (defined as Group Management and Board of Directors) received a total shortterm compensation of CHF 6.8 million (prior year: CHF 7.2 million). In addition, pension and social security contributions of CHF 1.0 million (prior year: CHF 1.0 million) are recorded as expense. The provisions for other long-term benefits amount to CHF 3.2 million (prior year: CHF 1.6 million).

29 Government grants Government grants are offset with the items of expense which they finance. Government grants related to assets are deducted from the assets in deriving the carrying amount of the asset. Like in prior year, the Group received no government grants in 2015. In 2012, the construction of a new die casting factory in China has been subsidized by the government amounting to CHF 5.3 million. This government grant was recorded in 2012 whereas payments of CHF 3.7 million were received in 2013 and balance payment of CHF 1.6 million was received in 2015.

Financial Report Bühler Annual Report 2015 150

30 Significant Group companies Country

Share capital in millions of local currency

Bühler Holding AG, Uzwil

CHF 15.0

Bühler AG, Uzwil

CHF 30.0

100.0 %

Bühler-Immo Betriebs AG, Uzwil

CHF 0.1

100.0 %

Bühler Management AG, Uzwil

CHF 0.1

100.0 %

Bühler + Scherler AG, St. Gallen

CHF 0.8

60.0 %

Bühler Holding AG, Uzwil

Bühler CZ s.r.o., Zamberk

CZK 265.2

100.0 %

Bühler Holding AG, Uzwil

Bühler Deutschland GmbH, Beilngries

EUR 0.025

100.0 %

Bühler AG, Uzwil

Bühler GmbH, Beilngries

EUR 16.0

100.0 %

Bühler Deutschland Holding GmbH, Braunschweig

EUR 0.025

100.0 %

Bühler Barth GmbH, Freiberg a.N.

EUR 1.137

100.0 %

Bühler Deutschland Holding GmbH, Braunschweig

Bühler GmbH, Bergneustadt

EUR 0.275

100.0 %

Bühler Deutschland Holding GmbH, Braunschweig

Bühler GmbH, Braunschweig

EUR 12.629

100.0 %

Bühler Deutschland Holding GmbH, Braunschweig

Leybold Optics Verwaltungs GmbH, Alzenau

EUR 0.444

100.0 %

Bühler Alzenau GmbH, Alzenau

EUR 0.05

100.0 %

Leybold Optics Verwaltungs GmbH, Alzenau

Bühler GmbH, Leingarten

EUR 2.432

100.0 %

Bühler Deutschland Holding GmbH, Braunschweig

Buhler S.A., Madrid

EUR 0.06

100.0 %

Bühler Holding AG, Uzwil

Bühler Haguenau S.A.S., Haguenau

EUR 0.2

100.0 %

Buhler UK Holdings Ltd., London

GBP 3.6

100.0 %

Buhler Ltd., London

GBP 1.0

100.0 %

Buhler UK Holdings Ltd., London

Buhler Sortex Ltd., London

GBP 1.25

100.0 %

Buhler UK Holdings Ltd., London

Control Design & Development Ltd., Peterborough

GBP 0.0001

100.0 %

Buhler UK Holdings Ltd., London

Sortex Ltd., London

GBP 0.001

100.0 %

Buhler UK Holdings Ltd., London

Bühler Brescia S.r.L., Brescia

EUR 0.01

100.0 %

Bühler AG, Uzwil

Buhler S.p.A., Milano

EUR 2.665

100.0 %

Bühler Holding AG, Uzwil

Bühler B.V., Oldenzaal

EUR 0.034

100.0 %

Bühler Holding AG, Uzwil

Name of company

Participation rate

Holding / Financing Company

Held by

Switzerland C

Bühler Holding AG, Uzwil Bühler Holding AG, Uzwil C

Bühler Holding AG, Uzwil

Europe

Bühler Deutschland GmbH, Beilngries C

Bühler AG, Uzwil

Bühler Holding AG, Uzwil C

Bühler Holding AG, Uzwil

Financial Report Bühler Annual Report 2015 151

Country

Share capital in millions of local currency

Participation rate

Buhler US Holding Inc., Minneapolis

USD 0.05

100.0 %

Buhler Aeroglide Corporation, Cary

USD 0.004

100.0 %

Buhler US Holding Inc., Minneapolis

Buhler Inc., Minneapolis

USD 3.2

100.0 %

Buhler US Holding Inc., Minneapolis

BuhlerPrince Inc., Holland

USD 0.375

100.0 %

Buhler US Holding Inc., Minneapolis

Leybold Optics USA Inc., Cary

USD 0.1

100.0 %

Buhler US Holding Inc., Minneapolis

Buhler S.A., Buenos Aires

ARS 1.1

100.0 %

Bühler Holding AG, Uzwil

Buhler S.A., Joinville

BRL 20.685

100.0 %

Bühler Holding AG, Uzwil

Bühler Sanmak Indústria de Máquinas Ltda., Blumenau

BRL 10.0

100.0 %

Bühler Holding AG, Uzwil

Buhler S.A. de C.V., Metepec

MXN 50.0

100.0 %

Bühler Holding AG, Uzwil

Buhler (Private Joint Stock Co.), Teheran

IRR 9250,0

100.0 %

Bühler Holding AG, Uzwil

Buhler Limited, Nairobi

KES 900.0

100.0 %

Bühler Holding AG, Uzwil

Buhler (Pty) Ltd., Johannesburg

ZAR 11.371

100.0 %

Bühler Holding AG, Uzwil

Buhler Properties (Pty) Ltd., Johannesburg

ZAR 0.0001

100.0 %

Buhler (Pty) Ltd., Johannesburg

Name of company

Holding / Financing Company

Held by

North America C

Bühler Holding AG, Uzwil

Latin America

Middle East & Africa

Financial Report Bühler Annual Report 2015 152

Country

Share capital in millions of local currency

Participation rate

Bangsheng Bio-Technology Co. Ltd., Guangzhou

CNY 8.51

100.0 %

Buhler (Changzhou) Machinery Co. Ltd., Liyang City

CNY 240.0

100.0 %

Buhler (China) Holding Co. Ltd., Wuxi

USD 114.6

100.0 %

Buhler (China) Machinery Manufacturing Co. Ltd., Wuxi

CNY 150.0

100.0 %

Buhler (China) Holding Co. Ltd., Wuxi

Buhler (Guangzhou) Food Machinery Co. Ltd., Guangzhou City

CNY 51.0

100.0 %

Buhler (China) Holding Co. Ltd., Wuxi

Buhler (Wuxi) Commercial Co. Ltd., Wuxi

USD 5.5

100.0 %

Buhler (China) Holding Co. Ltd., Wuxi

Buhler Sortex Optical Equipment (Hefei) Co. Ltd., Hefei

CNY 18.0

100.0 %

Buhler (China) Holding Co. Ltd., Wuxi

Wuhan Mingbo Electromechanical Equipment Co. Ltd., Wuhan

CNY 5.0

80.0 %

Buhler (China) Holding Co. Ltd., Wuxi

Buhler Equipment (Xian) Co. Ltd., Xi’an

CNY 28.0

100.0 %

Bühler Holding AG, Uzwil

Buhler Food Ingredients (Guangzhou) Co. Ltd., Guangzhou

USD 3.8

100.0 %

Bühler Holding AG, Uzwil

Buhler Mechanical Equipment (Shenzhen) Co. Ltd., Shenzhen

USD 4.0

100.0 %

Bühler Holding AG, Uzwil

Wuxi Buhler Machinery Manufacturing Co. Ltd., Wuxi

USD 23.0

51.0 %

Bühler Holding AG, Uzwil

Buhler Leybold Optics Equipment (Beijing) Co. Ltd., Beijing

CNY 10.1

100.0 %

Bühler Alzenau GmbH, Alzenau

Buhler (India) Private Ltd., Bangalore

INR 100.0

100.0 %

Bühler Holding AG, Uzwil

Buhler K.K., Yokohama

JPY 250.0

100.0 %

Buhler Asia Private Limited, Singapore

USD 1.0

100.0 %

Buhler Farmila Vietnam Ltd., Long An

VND 41.656

96.0 %

Buhler Asia Private Limited, Singapore

Buhler Vietnam Company Limited, Ho Chi Minh City

VND 6.237

100.0 %

Buhler Asia Private Limited, Singapore

Buhler (Thailand) Ltd., Bangkok

THB 110.0

100.0 %

Buhler Asia Private Limited, Singapore

PT Buhler Indonesia, Jakarta

IDR 10.5

100.0 %

Buhler Asia Private Limited, Singapore

Name of company

Holding / Financing Company

Held by

Asia Bühler Holding AG, Uzwil Buhler (China) Holding Co. Ltd., Wuxi C

Bühler Holding AG, Uzwil

Bühler Holding AG, Uzwil C

Bühler Holding AG, Uzwil

Financial Report Bühler Annual Report 2015 153

31 Proposal of the Board of Directors At the General Meeting, the Board of Directors proposes a dividend of CHF 15.0 million (prior year: CHF 15.0 million) or CHF 100 (prior year: CHF 100) per registered share with a nominal value of CHF 100 and CHF 40 (prior year: CHF 40) per registered share with a nominal value of CHF 40. The dividend payment to the shareholders of the Bühler Holding AG amounted to CHF 15.0 million in the financial year 2015 (prior year: CHF 15.0 million).

32 Release for publication of the consolidated financial statements The consolidated financial statements were released for publication by the Board of Directors of the Bühler Holding AG on February 9, 2016.

33 Subsequent events No material events have occurred after the balance sheet date.

Financial Report Bühler Annual Report 2015 154

Report of the statutory auditor on the consolidated financial statements To the General Meeting of Bühler Holding AG, Uzwil, St. Gallen, February 9, 2016 As statutory auditor, we have audited the consolidated financial statements of Bühler Holding AG, which comprise the consolidated statement of income, consolidated statement of comprehensive income, consolidated statement of financial position, consolidated statement of changes in equity, consolidated statement of cash flows and notes (pages 113 to 153) for the year ended December 31, 2015. Board of Directors’ responsibility. The Board of Directors is responsible for the preparation of these consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) and the requirements of Swiss law. This responsibility includes designing, implementing and maintaining an internal control system relevant to the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. The Board of Directors is further responsible for selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances. Auditor’s responsibility. Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Swiss law and Swiss Auditing Standards and International Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers the internal c ontrol system relevant to the entity’s preparation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control system. An audit also includes e valuating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion. In our opinion, the consolidated financial statements for the year ended December 31, 2015 give a true and fair view of the financial position, the results of operations and the cash flows in accordance with IFRS and comply with Swiss law.

Report on other legal requirements We confirm that we meet the legal requirements on licensing according to the Auditor Oversight Act (AOA) and independence (article 728 CO) and that there are no circumstances incompatible with our i ndependence. In accordance with article 728a paragraph 1 item 3 CO and Swiss Auditing Standard 890, we confirm that an internal control system exists, which has been designed for the preparation of consolidated f inancial statements according to the instructions of the Board of Directors. We recommend that the consolidated financial statements submitted to you be approved.

Ernst & Young Ltd Christian Schibler Licensed audit expert (Auditor in charge)

Andreas Bodenmann Licensed audit expert

Publisher Bühler AG, 9240 Uzwil Concept / design Calydo, Steinhausen Realization gateB AG, Steinhausen Copywriting and editing Bühler AG Corporate Communications, Uzwil Simone Hofer, Zürich Boris Schneider, Zürich Photographs Rolf Richter, Düsseldorf Printers Körner Premium GmbH, Sindelfingen (D)

This Annual Report is published in English and in German. The binding version is English.

B端hler AG CH-9240 Uzwil, Switzerland T +41 71 955 11 11 www.buhlergroup.com