Once again, significant organic growth How Hilti steers sustainability Red shell - sophisticated core Supply Chain shapes up for further growth ...
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Annual Report
2007
with Sustainability Report
Once again, significant organic growth
How Hilti steers sustainability
Red shell – sophisticated core
Supply Chain shapes up for further growth
Page 2
Contents
4 “We create enthusiastic customers”:
the complete Mission Statement
6 How Hilti organizes and steers sustainability
8 “We want to help people believe in themselves”
10 Hilti in 2007
Once again, significant organic growth
18 People culture, corporate culture
2 1 The strategy
22 Red shell – sophisticated core
30 Research and development
3 1 Supply Chain
The company
34 Systematically working the market
35 Customers without a care in the world
in brief
38 The best for building professionals:
the new products at a glance
44 Social entrepreneurs
H ilti provides leading-edge
technology to the global
construction industry. Hilti prod-
production plants as well as re-
search and development centers
in Europe and Asia.
48 Sustainability: an overview ucts, systems and services offer
50 The Executive Board the construction professional in- Founded in 1941, the worldwide
52 The Board of Directors novative solutions with outstand- Hilti Group evolved from a small
ing added value. The headquar- family company. Since 2000, the
ters of the Hilti Group are in Martin Hilti Family Trust holds
Schaan in the Principality of all shares and, since January
Liechtenstein. 2008, all participation certificates
of Hilti Corporation. This safe-
Some 20,000 employees, in more guards the further development
than 120 countries around the of the company founder Martin
10 Hilti made significant world, enthuse their customers Hilti’s life’s work in the long
gains in 2007 as well: and build a better future. The cor- term.
more employees, more porate culture is founded on in-
sales, higher profit. tegrity, courage, teamwork and Hilti upholds a clear value orien-
commitment. tation and pursues a policy of
stakeholder value. Integrating the
Hilti excels through outstanding interests of all the company’s
innovation, top quality, direct cus- partners – customers, suppliers
tomer relations and effective mar- and employees – into its strategy
22 Sophisticated tech- keting. Two-thirds of the employ- and actively honoring its social
niques – and success – ees work directly for the customer and ecological responsibility cre-
are a product of in sales organizations and in engi- ates the foundation of trust that
teamwork. neering, which means a total of makes possible the long-term suc-
more than 200,000 customer con- cess of the company.
tacts every day. Hilti has its own
44 Social responsibility
starts at the bottom and
creates new ideas.
Annual Report 2007
Page 3
Hilti Group:
sustainable success
“
The strong economy put ronment. For this reason, acting
wind in our sails in 2007. At with a sense of social and ecologi-
the same time, we also took full ad- cal responsibility is a fixture of our
vantage of our ability to make the Mission Statement. So when we
very best of a business upturn. For talk about “building a better fu-
the fourth year in a row we ex- ture,” we mean every word of it.
panded our worldwide sales net- And this same conviction is behind
work and thus garnered additional our decision to publish information
market share, as witness our sales about our economic development
growth of 13 percent. We have together with an account of our
grown further under our own sustainability in one single Annual
steam, and our profitable growth Report.
is continuing: thanks also to a
healthy increase in productivity, We stand by the principles of the
our operating result in 2007 rose UN Global Compact, which we
by 26 percent to 533 million Swiss signed in early 2006. We strive
francs. with resolve to make them a
reality – increasingly and with ever
Behind this accomplishment is a greater insistence in the case of our
global team capable of conveying suppliers too, as you will read on
its enthusiasm to customers – as page 31, training our own auditors
well as attracting new team mem- for the task as well.
bers: the average number of em-
ployees rose in 2007 by 10 percent You will find more information on
to reach 18,930, with 1389 new sustainability in this Annual Report Bo Risberg (left) and Pius Baschera: The company saw further
team members alone working in than in last year’s. Part of the report- organic growth in 2007.
sales. We intend to further build up ing processes for the measurement
our efforts in that field in the year of aspects of sustainability relevant improvement and can continuously Board of Directors, so carefully
to come, in order to meet future to us is now in place, and we can put enhance the interaction among the prepared in 2006, now success-
economic fluctuations from a posi- figures to activities and chart per- economic, social and ecological as- fully completed.
tion of strength. formance over the course of several pects of our business.
years. We consider our progress to- We would like to express our sin-
For many years now, we have firm- ward social and ecological sustain- This same dedication to the twin cerest thanks to the people around
ly believed that economic success ability a journey, just as we do the principles of development and con- the globe who have made our suc-
can only be sustained by meeting development of our corporate cul- tinuity is reflected in our personnel cess possible: to our customers, our
the needs of all major stakeholders, ture. As we continue on this road policy, with the changing of the employees, our partners and
including our society and the envi- we are constantly capable of further guard on our Executive Board and our suppliers.
”
Pius Baschera Bo Risberg
Chairman of the Board of Directors Chief Executive Officer
Page 4
“We create
enthusiastic
customers”
Hilti employees follow the Mission Statement in
their everyday work. It provides them with a
foundation for effective collaboration, personal
development and success.
Mission Statement We take self-responsibility for the quality, direct customer relation-
We create enthusiastic customers development of the business, our ships and effective marketing.
and build a better future! team and ourselves.
Concentration: We focus on prod-
Enthusiastic customers We encourage, coach and support ucts and markets where we can
We create success for our cus- each other to achieve outstanding achieve and sustain leadership
tomers by identifying their needs results. positions.
and providing innovative and
value-adding solutions. Our culture is a journey – Our Cul- We accomplish our
ture Journey. purpose through global
Build a better future processes
We foster a company climate in People All of our activities are derived
which every team member is val- We have excellent team members. from our strategic imperatives
ued and able to grow. “Product Leadership,” “Market
We expect high performance and Reach” and “Operational Excel-
We develop win-win relationships we offer high incentives. lence.”
with our partners and suppliers.
We recruit and develop our people In order to continuously improve
We embrace our responsibility to- based on their competencies, ac- customer satisfaction and produc-
ward society and environment. complishments and potential. tivity, our approach is based on
the highest level of harmonization
We aim to achieve significant and We give them the chance to grow and ongoing optimization of our
sustainable profitable growth, thus with us as part of a team and to business processes.
securing our freedom of action. develop a long-term career within
the Hilti Group.
We live our values
The foundation of our culture is Our “Champion 3C
integrity, courage, teamwork and Strategy”
commitment. Customer: We want to be our cus-
tomers’ best partner. Their require-
Our culture ments drive our actions.
We share a common purpose.
Competency: We are committed
to excellence in innovation, total
Annual Report 2007
Page 5
Page 6
“This is how we organize
and steer sustainability”
An integral part of the Hilti Mission Statement and business model is the aim
to grow profitably over the long term, by means of its positive influence on
employees, customers, suppliers, society and environment as well as the
way these stakeholders interact positively with each other. A vision of sus-
tainability integrated to this degree demands a systematic approach and
transparency, as outlined below by Executive Board member Christoph Loos.
That’s why we made our responsi- Legal affairs is home to our Chief
bility to our crucial stakeholders Compliance Officer, who has al-
part of our Mission Statement, ready been named and who is
summed up in the sentence “We charged with the issue of corrup-
build a better future.” This respon- tion, as well as the person respon-
sibility was part of our company sible for all our activities as a
tradition before anyone was talk- “great citizen,” our involvement in
ing about sustainability. Seen from the environment in which we work.
today’s point of view, however, Health & Safety and Environment,
we weren’t systematic enough, nor meanwhile, have a new unit all of
were we terribly transparent, wheth- their own, whose head reports di-
er internally or externally. rectly to Executive Board member
Stefan Nöken.
Well, in the meantime Hilti initi-
ated an internal sustainability The people handling these assign-
management project in 2004, ments make up our sustainability
agreed to the UN Global Com- core team, setting the agenda and
pact in 2006, signed the Caring an annual plan for our activities in
for Climate Convention in 2007 that area, reporting regularly, and
and speaks out against all forms coordinating the collaboration of
of corruption. the Hilti Group and the Hilti Foun-
Christoph Loos: That is all true, dation on “great citizen” projects.
and important. We might also note
that, beginning as early as 1998, all That’s a lot of work for our core
production plants as well as prod- team!
uct development of the individual Christoph Loos: Well, the way
Business Units, and now some we see it, sustainability has many
of our national organizations too, facets. And, as you can see from the
were certified to the ISO 14001 en- articles in this year’s Annual Re-
vironmental standard. port, we’re already doing a pretty
good job of covering them. But we
Christoph Loos: Now, in order to address this mat- can still do much better. We think
“A core team sets the agenda Mr. Loos, a company which aims ter in an orderly and sustainable of the continuing expansion of our
for our sustainability.” at comprehensive sustainability fashion, we have created the nec- sustainability as a journey, just as
must surely lay the groundwork essary organizational structures, we do the development of our cor-
for it in its strategy. which were launched in January porate culture. And as we continue
Christoph Loos: I think sustain- 2008. Human resources, part of my down that path, we will not cease
ability needs to start even earlier, in mandate on the Executive Board, is to become more sophisticated, in-
the attitude of management and responsible for all support and ac- crease our commitment and refine
employees. They must believe in tivities which affect our employees our system. Just as we are doing
the entire approach so they can act directly – in line with our vision of with our economic sustainability,
on the strategy with a whole heart. Hilti as a “great place to work.” we aim to steer the efficiency and
Annual Report 2007
Page 7
Systematic
responsibility
Only a company which shoulders its responsibility to society and the
environment can grow profitably over the long term. This belief is well
entrenched at Hilti; over the last three years it has been lent additional
support with the phasing in of sustainability management, which is
now being further expanded and systematized within the organization.
I n their Mission Statement, Hilti
employees vow to “build a bet-
ter future.” This is their way of ex-
ed its “Sustainability Management
at Hilti” project.
to plants and product development
as well as to sales organizations in
specific countries, a first for Hilti.
over the long term ensure the
development and implementation
of strategic initiatives with an eye
pressing their traditionally strong It began with an intensive stake- Hilti management’s core steering to sustainable corporate manage-
sense of responsibility toward so- holder dialogue, to identify indi- instrument, its so-called “Value ment, and which would constitute
ciety and environment. System- vidual topics and establish a prior- Cockpit,” was gradually supple- the backbone of systematic sus-
atized sustainability management ity list. Together with ongoing mented with indicators designed to tainability management. The re-
began in 2004, when the direction projects and activities, this led to a track the achievement of sustain- sult of this work is a sustainabili-
to be taken by the management comprehensive project portfolio, ability, some of which are included ty core team, headed by Christoph
system was clearly sustainability, the “Sustainability Roadmap.” Ele- in this Annual Report. Loos and Stefan Nöken, both
building on numerous environ- ments of this portfolio were con- members of the Executive Board.
mental protection activities in pro- cerned with the development and One crucial milestone was the cre- It covers the entire range of sus-
duction and product development, launch of appropriate processes ation of a new organizational ap- tainability issues, from its social
a strong corporate culture and a and steering instruments. A newly proach to sustainability manage- to its ecological aspects. For more
variety of social projects. Accord- defined ecological management ment, intended to establish an details, see the interview with
ingly, the Executive Board initiat- process, for instance, is applicable organizational structure that would Christoph Loos opposite.
the effectiveness of our sustain- come to the Hilti Foundation. It
ability measures in the areas of basically concentrates on larger
Our commitments at a glance
society, education, culture, health projects with global impact, while Responsibility to employees:
and safety, and the environment. our national organizations and Corporate culture: pages 18 –19
This will in turn mean greater production plants as well as our Training and career: page 19
transparency in the interaction headquarters in Liechtenstein get Health promotion: pages 20–21
among our key stakeholders. involved locally and give some-
thing back to the society in which Responsibility to society: pages 8 and 44
You mention society, they are enjoying success.
education and culture. How do Responsibility to the environment: pages 32 and 34
the commitments of the Hilti
Group differ from the activities Zero tolerance of corruption:
of the Hilti Foundation? Code of Conduct for employees: page 9
Christoph Loos: The Hilti Group’s Code of Conduct for suppliers, supplier audits: page 31
proprietor, the Martin Hilti Family
Trust, was solely responsible for Summary of all sustainability measures: page 48
financing the Hilti Foundation until
the end of 2006. Now, as a stake-
holder, the Hilti Group passes on
at least one percent of its net in-
Page 8
“We want
to help people believe
in themselves”
As of 2007, the Hilti Foundation is pursuing a new strategy: it supports social
and educational projects around the world, and continues to fund the
research work of marine archaeologist Franck Goddio. The Hilti Foundation
is now jointly financed by the Martin Hilti Family Trust and the Hilti Group.
Egbert Appel, a member of the Executive Board until the end of 2006, has since
the beginning of 2007 been charged with the Hilti Foundation’s business.
Mr. Appel, not much has been Board, of which Michael Hilti, his between profit and non-profit words, if a company wants to turn
known about the Hilti Founda- brother Markus Hilti, Bo Risberg organizations still apply? a profit, it has to think about more
tion until now, apart from the and Christoph Loos from the Exec- Egbert Appel: The idea that the one than just its employees, customers,
fact that it supports marine utive Board, and I are all members. side earns the money while the oth- suppliers and shareholders; it must
archaeologist Franck Goddio. We have decided that the Hilti er spends it on charitable causes is also make a contribution to society
Egbert Appel: As part of the Mar- Foundation should have a global no longer valid, as far as I’m con- and to the environment. This is the
tin Hilti Family Trust, the Hilti presence, and that this requires it cerned. The non-profit organiza- integrated approach that the Hilti
Foundation has done a great deal to consolidate its forces. For this tions we work with account for the Group supports, because it be-
of good without making a lot of reason it is now concentrating on effectiveness of their use of our lieves in it, and because it is part of
fuss about it. It has made a host social and educational projects, funds. We have figures we can keep its tradition. The words “We build
of extremely generous commit- while continuing to co-operate track of and help them to improve. a better future” in our Mission
ments, largely focusing on social with the international organization For our part, we provide material Statement are not simply window-
projects in Egypt and the Rhine Ashoka* in support of so-called and human resources to ensure that dressing!
valley, which means in Liechten- social entrepreneurs. These are they meet the objectives we have
stein, where Hilti has its headquar- people who implement initiatives jointly set. After a few years, a proj- If we turn what you say around,
ters, as well as the neighboring in their own region for the good ect should be able to do without our can we also assume that the
Austrian and Swiss regions. of the local population. In the cul- financial support and stand on its needy in principle have a right to
tural department, meanwhile, the own, earning its own keep. That's expect help?
Since January 1, 2007, the Hilti Hilti Foundation also continues the sort of sustainability we have in Egbert Appel: Put it this way: there
Foundation is no longer financed to support the research work of mind. is such a thing as the right to be
solely by the Martin Hilti Family Franck Goddio. helped to help oneself! It is unfor-
Trust, but by the Hilti Group as But let’s change our point of view. givable to simply abandon an illiter-
well, which has pledged a portion Becoming general manager of If a profit-making organization is ate person to the winds of fortune.
of its net income to the Hilti the Hilti Foundation in 2007 looking to maximize its profits Basic education is the prerequisite
Foundation. This new arrangement meant moving from the profit over the long term, it needs to take for self-determination. And self-
dovetails with the new strategy side of things to the non-profit the requirements of all interest determination is the soil from which
elaborated by the Hilti Foundation side. Do the classic distinctions groups into account. In other grows the will to take one’s life
Annual Report 2007
Page 9
Zero
tolerance of
corruption
Hilti tolerates no corruption in any form and
provides its employees with the appropriate
Code of Conduct.
I n line with its well-developed
corporate culture, Hilti sets
high ethical standards. At the
ness about employees’ duty to
combat corruption and to train
them in correct behavior.
2004 Davos World Economic Fo-
rum, Pius Baschera, in his then- In 2007, the Chief Compliance
capacity as Chief Executive Offi- Officer trained Hilti general man-
cer, signed the Partnering Against agers in European countries and
Corruption Initiative (PACI) in the Near/Middle East and
launched there to oblige engineer- Africa regions, as well as em-
ing and construction firms world- ployees of both Business Areas.
wide to introduce anti-corruption Furthermore, all new employees
principles. The UN Global Com- are taught the basic elements of
pact as well, which Hilti agreed the Code of Conduct. Employees
to in 2006, provides measures who become aware of dubious
against corruption in its Principle goings-on can contact the Chief
10 – see page 48 for more details. Compliance Officer confidential-
ly by way of a central helpline or
Egbert Appel: “It is unforgivable to simply abandon an The Hilti Group is strictly op- local helplines in the various
illiterate person to the winds of fortune.” posed to any form of bribery and countries. The Group uses the ap-
corruption, in all areas of busi- propriate audits to monitor the
in one’s hands. As with illiterate field – as well as going beyond ness, and in all geographical re- implementation of the Code of
people, so it is with the homeless: it: construction means jobs, as well gions. The relevant directives are Conduct, and to investigate all
their will does not simply grow all as experience that can be passed available to all employees on the tips. A proven case of corruption
on its own. This is precisely where on; it means lasting values, which Intranet. The centerpiece is the led to the summary dismissal of
the Hilti Foundation comes in. We are in turn the bedrock of new Code of Conduct, drafted in 2002. one person in 2007.
want to help needy people believe in ideas. It helps reach a global standard
themselves again. To this end we which not only satisfies legal pro-
are preparing a worldwide project * www.ashoka.org visions, but actually exceeds them
aimed at giving the needy a roof www.changemakers.net in many points. In addition, an
over their head. After all, this is e-learning program is currently
a project with a direct connection Learn more about the Hilti Foun- being rolled out to raise aware-
to the Hilti Group’s professional dation’s involvement on page 46.
Page 10
The Hilti Group in 2007
Once again,
significant organic
growth
In 2007 the Hilti Group was able to put the favorable global economic situa-
tion to full use by growing vigorously: turnover posted its fourth double-digit
advance in a row and increased 13 percent, from 4.1 to 4.7 billion Swiss
francs. Operating result growth outstripped that of sales turnover, increas-
ing 26 percent from 422 to 533 million Swiss francs. The Hilti Group thus
continued its very profitable growth.
A gainst a generally rosy eco-
nomic backdrop, the Hilti
Group enhanced global sales ca-
performed the previous year’s
figure of 4.118 billion by 13 per-
cent, or 11 percent in local curren-
high growth in general, and Hilti
is riding the trend to make signifi-
cant turnover inroads there.
result of 422 million. The Hilti
Group was thus able to speed up
the pace of its ongoing profitable
pacities in 2007 on an even grander cies. growth.
scale than the year before. The re- Result
sult was additional market share Growth was broad-based in 2007, The operating result rose signifi- Earnings before interest and income
and further organic growth for the with all regions except North cantly, buoyed up by the strong tax expenses climbed 20 percent,
company. America boasting double-digit in- sales growth as well as by marked from 471 million Swiss francs in
creases. Europe continues to ac- cost discipline. 2006 to 564 million in 2007.
The Hilti Group’s average number count for the majority of the Hilti
of employees rose by 9.7 percent, Group’s turnover (65% of total The additional improved services Net income rose 23 percent, from
from 17,250 in 2006 to 18,930. sales), with Eastern Europe post- and the product innovations 344 million to 422 million Swiss
Of the total of 1680 new positions ing the strongest growth. Thanks to launched by the Hilti Group in francs.
Hilti created in 2007, 1389 alone its focus on the commercial and in- 2007 offer customers overall added
(or 82.7 percent) are in sales. dustrial construction sector, mean- value and increased efficiency, a On December 31, 2007, the equity
while, Hilti North America has felt bonus they are willing to pay for. ratio stood at 64 percent as against
In addition to benefiting from per- the economic effects of the finan- This in turn has allowed Hilti to 57 percent year on year.
sonnel reinforcements in sales, cial crisis to only a limited degree, compensate for higher commodity
Hilti also saw turnover increase on and its single-digit growth can be prices. 2008 outlook
the back of services with a decid- considered a sign of health in view The Hilti Group plans to grow fur-
edly improved reach as well as of a generally sluggish US building Taken together, these factors ther in 2008 and is aiming at a
its launch of a wide range of inno- market. The Latin America and Asia helped to generate a 2007 operating turnover of 5 billion Swiss francs.
vative products. At 4.667 billion regions as well as the Near / Middle result of 533 million Swiss francs, To what extent the economic un-
Swiss francs, 2007 turnover out- East and Africa region* promise or 26 percent more than the 2006 certainty arising from the financialAnnual Report 2007
Page 11
crisis in the United States will af- will have several more in the search and development at its head-
fect matters by dampening growth, pipeline for the following years. It quarters in Schaan.
however, cannot be predicted. Fur- will expand production plants in
thermore, negative currency devel- Schaan (Liechtenstein), Thüringen
opment could also feed through (Austria), Kaufering and Strass
into sales and results. (Germany) and build up warehouse
capacity worldwide. Another im-
The Hilti Group will make selected portant project will be the construc-
major investments during 2008 and tion of an innovation center for re-
2007 sales growth year on year
2007 2006 Difference Difference
in CHF million in CHF million in CHF (%) in local currencies (%)
Europe 3,037 2,617 16 11
North America 939 906 4 7
Latin America 109 96 14 16
Asia 414 364 14 13
Near / Middle East
and Africa* 168 135 24 28
Total 4,667 4,118 13 11
* Starting in 2007, Hilti now includes sales development figures in its reporting from the Near / Middle East and
Africa region. The 2006 figures have been adjusted to the new reporting structure.Page 12
Key statistics
Net sales (CHF million) Operating result (CHF million)
2003 2004 2005 2006 2007 2003 2004 2005 2006 2007
168
91 135
Near / Middle 69 414
East and Africa 64 364
335
303
Asia 280 939
906
764 96 109
685
North America 649 81
64
Latin America 59
2,617 3,037
2,178 2,367
Europe 1,961
3,013 3,299 3,638 4,118 4,667 235 276 322 422 533
EBIT (CHF million) Net income (CHF million)
2004 2005 2006 2007 2003 2004 2005 2006 2007
343 389 471 564 186 246 284 344 422
Research and
development expenditure (CHF million) Employees (average of year)
2003 2004 2005 2006 2007 2003 2004 2005 2006 2007
300
230 2,560
Near / Middle 170 2,200
150 2,980
East and Africa 170 1,930
1,750 660
Asia 1,680 2,730
2,500 600
North America 2,280 2,350 560
Latin America 550 500
12,430
10,890 11,490
Europe 9,960 10,370
137 140 151 164 177 14,640 15,120 16,050 17,250 18,930Annual Report 2007
Page 13
Important Note
The following pages contain extracts from the 2007 financial report of The full 2007 consolidated financial statements which are included in
the Hilti Group. Because these pages do not contain the full consolidated the 2007 financial report have been prepared in accordance with inter-
financial statements, they do not present complete information about national financial reporting standards (IFRS). The five-year summary
the financial position, financial performance and cash flows of the Hilti information in the charts on the opposite page is reported in accordance
Group for 2007. Complete information, including the notes to the con- with IFRS only from the 2004 year. The 2003 information has not been
solidated financial statements referred to below, is contained in the 2007 restated from the prior basis of reporting (Swiss GAAP FER).
financial report which will be available on the Group’s website
(www.hilti.com) from late March 2008.
Consolidated income statement (amounts in CHF million)
Note 2007 2006
Net sales (29) 4,666.5 4,118.2
Other operating revenues 53.1 55.6
Total operating revenues 4,719.6 4,173.8
Change in inventory of components of work in progress and finished goods 39.5 48.5
Material costs (30) (1,459.0) (1,304.0)
Personnel expenses (31) (1,712.8) (1,565.0)
Depreciation and amortisation (32) (180.8) (170.7)
Other operating expenses (33) (873.6) (760.8)
Total operating expenses (4,186.7) (3,752.0)
Operating result 532.9 421.8
Share of profit / (loss) of equity-accounted associates and joint ventures (10) 0.7 0.8
Other revenues and expenses (net) (34) 30.3 48.6
Earnings before finance costs and income tax expense (EBIT) 563.9 471.2
Finance costs (35) (68.0) (70.4)
Net income before income tax expense 495.9 400.8
Income tax expense (36) (74.3) (56.9)
Net income 421.6 343.9
Net income is 100% attributable to equity holders of the parent. The the consolidated income statement, the consolidated statement
group has no minority interest. of recognized income and expense, and the consolidated cash flow
statement.
The notes to the consolidated financial statements are an integral part of,
and should be read in conjunction with, the consolidated balance sheet,Page 14
Consolidated balance sheet of the Hilti Group as at December 31 (amounts in CHF million)
Note 2007 2006
ASSETS
Intangible assets (7) 207.5 184.5
Property, plant and equipment (8) 744.5 704.4
Investment property (9) 5.6 5.9
Investments in associates and joint ventures (10) 6.7 6.0
Deferred income tax assets (11) 124.1 101.7
Other financial investments (12) 13.5 14.1
Trade and other receivables (14) 189.5 119.6
Derivative financial instruments (16) – –
Total non-current assets 1,291.4 1,136.2
Inventories (13) 681.9 560.2
Trade and other receivables (14) 1,129.1 992.2
Current income taxes receivable (26) 8.7 9.6
Accrued income and prepayments (15) 71.2 51.2
Derivative financial instruments (16) 2.6 5.9
Financial assets at fair value through profit or loss (17) 44.6 45.0
Cash and cash equivalents (18) 627.9 978.0
Assets classified as held for sale (19) 3.9 0.5
Total current assets 2,569.9 2,642.6
TOTAL ASSETS 3,861.3 3,778.8
The notes to the consolidated financial statements are an integral part of, of recognized income and expense, and the consolidated cash flow
and should be read in conjunction with, the consolidated balance sheet, statement.
the consolidated income statement, the consolidated statementAnnual Report 2007
Page 15
Note 2007 2006
EQUITY AND LIABILITIES
Equity (20) 2,483.2 2,158.9
Provisions (21) 132.4 138.6
Pension and termination benefit obligations (22) 80.8 108.3
Deferred income tax liabilities (11) 48.3 35.5
Bonds (23) 148.0 147.6
Long-term bank borrowings (24) 8.1 11.3
Trade and other payables (25) 18.3 13.1
Derivative financial instruments (16) – 0.9
Total non-current liabilities 435.9 455.3
Provisions (21) 63.1 45.6
Trade and other payables (25) 318.8 272.5
Current income taxes payable (26) 118,2 100.6
Accrued liabilities and deferred income (27) 358.7 334.1
Bonds (23) – 200.7
Short-term bank borrowings (28) 74.8 204.8
Derivative financial instruments (16) 8.6 6.3
Total current liabilities 942.2 1,164.6
Total liabilities 1,378.1 1,619.9
TOTAL EQUITY AND LIABILITIES 3,861.3 3,778.8
Equity comprises share capital (176,000 registered shares with par The notes to the consolidated financial statements are an integral part of,
value of CHF 500 each) and participation capital (774,000 participation and should be read in conjunction with, the consolidated balance sheet,
certificates with par value of CHF 50 each) as well as reserves. the consolidated income statement, the consolidated statement
The group has no minority interest. of recognized income and expense, and the consolidated cash flow
statement.More strengt
Annual Report 2007
h
B ern is looking forward to
this June, when the Euro-
pean Football Championship (Euro
shops no longer met current safety
standards and could not have been
subjected to new loads from above-
tial suggestions for dealing with
this potential danger were text-
book solutions which turned out to
ment. The new method has already
been proven in trials, and its
world premiere in Bern is sure
08) is held in Switzerland and Aus- ground traffic – so reinforcement be unsuited to the particular de- to attract adherents – so let the
tria. Bern’s gigantic Bahnhofplatz, was called for, to prevent load- mands of the site’s structural engi- games begin!
as well as the shopping arcade un- bearing columns from punching neering and architecture. Hilti had
derneath it, will have to be reno- through the concrete when stress the right answer: Drill inclined
vated by then. The ceiling over the exceeds the critical level. The ini- holes and bond-in shear reinforce-Page 18
People culture, corporate culture
Courage and loyalty
In 2007, Hilti continued to build up its reputation as a “great place to work.”
Its corporate culture affords Hilti employees a basis for success – for both
themselves and their company. This in turn means long-term career opportu-
nities within the company. Economic success is of a piece with the strong
personal growth enjoyed by individual team members as well as vigorous
growth in employee numbers.
The Hilti team in Dubai:
Taking on challenges together,
celebrating successes
together. P eople with the courage to
look unflinchingly at them-
selves and their work day after day
and will find themselves with
new and promising ideas. Courage
leads to innovation – and it is a
culture, which, together with the
company’s strategy, provides the
foundation for economic success.
will grow, and help others to grow, solid pillar of the Hilti corporate
Practically all Hilti employees
around the world have attended at
2005 2006 2007 least one Corporate Culture Work-
Number of working days employees have used for shop since the workshops were
Corporate Culture Workshops 16,000 32,000 38,000 launched in 2004. They think of the
Expenditure for Corporate Culture evolution of the Hilti corporate
Workshops (in CHF million) 6.8 12.5 13.2 culture – as well as their own evo-
Internal survey: participation rate 91% 92% 92% lution, and that of the company it-
Proud to work for Hilti 87% 87% 87% self – as a journey. Taking part in a
Fluctuation 13% 13% 14% Culture Workshop means regularly
Successful integration* 80% 82% 83% pausing to take stock, before con-
Open management positions filled with internal 82% 76% 82% tinuing to work as part of a team
candidates with fresh awareness and new
Number of apprentices worldwide 296 302 344 goals. The employees also take
Average number of employees +6%; 16,050 +7.5%; 17,250 +9.7%; 18,930 time to think about their own par-
ticular development and to deter-
* By “successful integration” Hilti means an employee working for two years or longer at the company. mine their next individual develop-Annual Report 2007
Page 19
More apprentices
Since the summer of 2007, 82 apprentices are being trained at Hilti head-
quarters in Schaan, up from 73. By 2009 the ranks of apprentices will
have swelled past the hundred mark, and as of 2013, 116 young people
will be learning their trade at the Liechtenstein location. Traditional pro-
fessions such as clerk, polymechanic and designer have been joined by
three new trades, practical mechanic, practical machinist and logistician.
All training programs are open to both men and women. Hilti is thus not
only ensuring its own continued supply of skilled employees, it is also
doing its part to lower youth unemployment and providing many young
people with a solid education.
In addition to the apprenticeships at headquarters and production plants
in Liechtenstein, Hilti also offers training opportunities at four production
plants in Germany, Austria and Hungary as well as in the Swiss, Austri- Greetings from Shanghai
an, German, UK / Irish, French, Portuguese, Brazilian, Venezuelan, Indo-
“
nesian, Indian and New Zealand national organizations. Before I had completed my High-rises as far as the eye can see,
four-year training as a poly- and every skyscraper trying to out-
Read the article entitled “Greetings from Shanghai” to learn how a Hilti mechanic I was already thinking do the others in design and altitude.
apprenticeship can open the door to a professional career. about what I would do next. I had a The extreme climate is another
chat with my instructor, and so it challenge, with icy cold winters
was that, just a few months after and brutally hot summers. But I
completing my apprenticeship, I quickly grew accustomed to city
They’re proud – naturally!
found myself an apprentice once life and the hectic pace of the
Every year, Hilti takes its employees’ pulse. After all, when you’re talking again, doing a two-year follow-on streets, with their unbelievable
about work, the atmosphere on the job, and teams, there’s always room stint to become a designer. Then, in crowds of people. I live right in the
for improvement – that’s why it’s called continuing development! And the spring of 2006, with thoughts middle of it, in the heart of Shang-
employees appreciate it. It’s no accident that more than 90 percent take of the future in my head again, my hai, on the top floor of a 34-storey
part in the survey every year, entirely of their own free will. And every year, instructor drew my attention to the high-rise.
more than 87 percent of those who do take part, veterans and new- job in Shanghai I have had since
comers alike, say they are proud to work for Hilti. January 2007, with a year-and-a- It was only when I got to Shanghai
half contract. that I realized how tranquil and
sleepy my life had been back in
Before leaving Europe, I was able Liechtenstein. Here in China there
ment steps: every employee meets increase in the number of working to take a month-long intensive Chi- isn’t much else you can do but go
with his or her supervisor at least days employees used for them. nese course in Germany, and to at- with the flow and adapt as fast as
once a year to discuss and evaluate Despite a depleted labor market on tend a cultural training program. possible. You need lots of patience
performance and to make plans for which engineers are especially in Once in Shanghai, I spent a semes- and frequently nerves to get un-
the next individual move. demand, the fluctuation rate re- ter at Jiao Tong University to con- scathed through the day, because
mained virtually constant in 2007, tinue learning Chinese. It’s a lan- the culture is completely different
The economic growth that Hilti is while the share of employees who guage one can in fact learn, but it and occasionally difficult to under-
undergoing in line with its cor- spend more than two years at Hilti calls for a certain amount of com- stand.
porate strategy also calls for more after signing on has risen slightly. mitment and motivation. I’m now
personnel, and the average number Hilti employees’ continuing deve- working here at the Hilti produc- I have also discovered a whole new
of employees accordingly contin- lopment means that, when vacan- tion plant as a builder in the design way of traveling. The country and
ued to show considerable growth in cies open up in management, four- department. I had not had anything its people, their language and cul-
2007. Indeed, in the last five years fifths of the positions can be filled to do with rotary hammers and ture widen my horizons, as does
it has increased by 29.3 percent, with internal candidates. cordless screwdrivers before, so my professional life. To my way of
from 14,640 in 2003 to 18,930 this my time here has been a profes- thinking, if you can get along in
year. sional awakening as well, very in- China without too much trouble,
teresting and exciting. you’re set for the rest of the
Along with the number of employ-
ees, the financial outlay for the
Corporate Culture Workshops has
When I arrived in Shanghai, the
city made an enormous impression
world.
Patrick Lampert,
”
also risen, joined by a concomitant on me, in fact it almost scared me. DesignerPage 20
Fitness has taken on a No charge
for the swimming
whole new meaning pool
Hilti employees in Germany inter-
ested in their own fitness need
nothing more than a bit of motiva-
tion: the rest is laid on. At head-
quarters in Kaufering, for exam-
ple, they pay 120 euros for three
months at a fitness studio – and
get 80 euros back when they’re
done. Participation in health-
related courses such as autoge-
nous training or Pilates at the local
community college is subsidized
50 percent by Hilti. And in winter,
employees can even swim or en-
joy a sauna free of charge once a
week. “We also promote sports
groups outside the company,” ex-
plains Peter Göllner, a safety spe-
cialist at Hilti in Kaufering, whose
job includes being the contact
for the “Healthy and Active” pro-
gram. Andreas Kutschera, Head
of Human Resources at the Hilti
production plant in Kaufering,
“
I used to do a lot of sports, You have to be ready to call a spade My general state has improved in adds: “We are constantly working
play badminton and ride mo- a spade and to make changes when just a few weeks, my weight is to develop further health-promot-
tocross. But with the claims of my you start having trouble. That’s one slowly dropping, and I am per- ing activities.”
career, sports took more and more of the things we learn in our Cor- forming better too. I’m not just
of a back seat. At the same time I porate Culture Workshops, after saying it, it’s actually true! And of Hilti has launched a new wellness
quit smoking – and suddenly I had all. When I did the fitness test our course it sometimes requires a cer- incentive program in the United
put on an extra ten kilos. My mus- health management organized and tain kick in the pants to get me into States to help team members live
cle tone diminished, my joints had was asked if I wanted to take part in the swimming pool. But now I longer and healthier lives. The
less support, and I developed prob- a monitored fitness training pro- know that my company values my program focuses on measuring
lems with my knees. It was obvious gram, I said yes. fitness, and that gives me an incen- key risk factors for cardiovascular
to me that I had to do something. tive to stay at it and keep to disease, stroke and type 2 dia-
Since January 2006 I have been
working as a development engi-
By investing time and money in me,
the company is giving fitness a new
significance. And it rubs off on my
my sports goals.
Ulrich Birnbaum,
” betes. With the launch of this pro-
gram in 2007, 83 percent of team
members and their partners par-
neer for installation systems at attitude and behavior, too: together Hilti Development Engineer, ticipated in a health screening. In
Hilti headquarters in Liechten- with a fitness trainer, I have ana- Schaan, Liechtenstein 2008, a coaching program will be
stein. I began my career with an ap- lyzed my pattern in the past and de- introduced to help team members
prenticeship as a toolmaker at the signed improvements. My physical and their partners take action to
Hilti production plant in Kaufer- condition matters to me again. More improve their long-term health by
ing, in Germany. My new office movement, more fruit, more fluids – reducing risk factors associated
is just a stone’s throw from the that’s nothing new. The challenge with diseases that can be influ-
Rhine. The little road along the has been to change the rhythm of my enced by lifestyle adjustments.
top of the dike built to contain life, and for example to alter my for-
floods is perfect for in-line skat- mer eating habits, and stick to it. So
ing. I have also chosen swimming I have started to plan sports the way
and Nordic walking as two other I plan work. I’m not going to give up
sports. until my new rhythm has simply be-
come a part of my life.Annual Report 2007
Page 21
Keeping health in mind,
day after day
Physical fitness and sound mental health are the prerequisites for
taking on challenges with gusto. Hilti employees are responsible for their
own health, but since 2004 they have enjoyed the support of
a health manager at headquarters. Other organizations are following suit.
H ow do working people deal
with stress? What does a
healthy diet mean? What ergonom-
also offers individual counseling
on workplace design, and encour-
ages employees to be health and
ready were naturally happy to take
part, and did so with ease,” recalls
Christian Frenck. In fact, however,
look at habits and patterns of be-
havior, and to change them if nec-
essary.
ic principles should be followed safety conscious in their free time he had actually wanted to appeal
when setting up a workplace? as well. to overweight or sluggish people, See opposite how
Health Manager Christian Frenck “and it took some courage for them Ulrich Birnbaum benefits from his
is constantly raising his colleagues’ In 2007, for instance, he invited his to come forward.” A small group of individual fitness program.
awareness at Hilti headquarters in colleagues to take a fitness test. just such courageous people was
Liechtenstein, pointing out impor- They could assess their body-mass prepared to look squarely at their
tant health and safety issues. He index and the proportion of fat in own physical condition and took
publishes information pamphlets their total weight, test their physi- up his offer of an individually run
and organizes events to keep the cal fitness and have their coor- fitness program. For most mem-
topics of health and safety on dination and strength measured. bers of that group, it paid to find
everyone’s mind. Christian Frenck “Those who felt fit and healthy al- the courage and the will to take a
On the growth path
in line with strategy
Customers, competency and concentration – these are the three Cs of the
“Champion 3C Strategy.” In 2007, the Hilti strategy, which was introduced
in 1996, entered its third phase, due to conclude in 2015. During this period,
Hilti aims at growth, differentiation and productivity – and most of all,
employee development.
T he Hilti growth course in
2007 was unmistakable:
thanks to its worldwide expansion
10. New products skillfully tailored
to customer requirements like the
Hilti GX 120 gas system – see the
company-wide target portfolio was
created, containing products that
are best suited to distinguishing
Executive Officer Bo Risberg ap-
pealed to employees to improve ba-
sic productivity in 2008. For more
of sales employees, the Group was following pages for more infor- Hilti and promise the greatest information on employee develop-
able to take full advantage of the mation – and innovative service growth potential. ment please see page 18.
positive economic situation, gain offerings like Hilti Lifetime Ser-
market share, and make further vice or Hilti Fleet Management Productivity was up strongly in
significant advances in turnover afford Hilti further prominence on 2007 as well, albeit in part growth-
and profit – for details see page the market. Furthermore, in 2007 a related. For this reason, ChiefPage 22
sophAnnual Report 2007
Page 23
Red shell –
isticated core
Works like a radio but isn’t one, works like a car but isn’t one.
A glimpse inside the new Hilti GX 120 gas system: it just functions
the way a Hilti tool must, simply, efficiently and as user- and
environment-friendly as possible. It took a team of developers all
of their knowledge and innovative energy to come up with it –
and a certain amount of passion as well.Page 24
T he more than ten members of
the team went through thick
and thin together. The development
tem, a supply engineer was already
organizing production in consulta-
tion with the quality manager, and
development of the Hilti GX 120.
“We brought the tool’s center of
gravity right up close to where it
double wall there, with a heat
shield, because the tool can get
warm.”
engineers, the research engineers the product manager was getting is held in the user’s hand,” he
and the research mechanic – they ready for the launch. All of this ef- explains, looking back. So users All in all, compared with its
didn’t require long explanations to fort – for the sake of customers – don’t need to exert a great deal of predecessor, the Hilti GX100, the
understand each other. Together paid off. With the Hilti GX 120, in- force to hold and guide it. Stefan new tool is lighter – and slimmer.
they celebrated successful devel- terior specialists now have a tool at Bönig and his colleagues know Drywallers who need to fasten
opment milestones, overcame in- their disposal that lets them work very well how workers on a con- U-tracks for their plasterboard
evitable setbacks, picked them- more efficiently and protect their struction site use their tools; after walls to the floor, wall and ceiling
selves up and carried on – six days health at the same time. all, they’ve observed them at it. first, can now set nails, even into
a week when things were really When setting a nail they use their the edges of buildings, without
happening. And while they were Stefan Bönig was the technical left hand to hold the tool at the rear any effort. And there’s no problem
creating the Hilti GX 120 gas sys- project head responsible for the as well. “So that’s why we put in a getting the tool’s slimmer nose into
any U-profile.
Environment-friendly In terms of performance, however,
The Hilti GX 120 gas system is hardly in circulation, Only a minimal residual amount of some 4 percent the Hilti GX 120 is anything but
and it’s already being broken down into its various must be disposed of, and thus constitutes actual a lightweight: “If you want to,
components, to determine how environment-friendly waste. you can set two nails a second
its eventual disposal will be. When its materials are without any trouble,” says Stefan
subjected to analysis accurate to a tenth of a gram, In contrast to the earlier model, the Hilti GX 120’s gas Bönig with conspicuous sangfroid.
the system does practically as well as its predecessor, can makes do without a dosage valve, which theoret- “Which means that, in constant
the Hilti GX 100. Almost 96 percent of the materials ically means a saving of 22.4 tons of synthetic materi- use, it’s no problem to put in up to
used to construct it can either be reused or recovered, al per million cans. Further evidence of how big a dif- 1200 fasteners an hour.” The new
partly as a source of energy, partly for other purposes. ference ostensibly small improvements can make. gas system has also plainly passed
speed tests at rates of 3000 settings
World premiere: An LED gas indicator tells users the current gas level. The tool’s nose can be removed and
keylessly adjusted.Annual Report 2007
Page 25
per hour. And what’s more, workers
need less strength than previously
to press the tool against the materi-
al they’re working on prior to set-
ting the nail. High efficiency with
less effort – exactly what everyone
is looking for. Users only need to
reload the magazine every now and
then, since it now holds four sets of
ten nails each.
The contents of the gas can that de- “I love it! I want it!”
livers the power to drive in the nails
“
is sufficient for at least an entire The GX 120 was a tool that what’s the reason?’ I think you’re nails are more important than
package, that is, for 750 nails. No I heard a lot about and I was probably going to get several dif- their price. I also explain to peo-
matter how fast the tool is called pretty excited about working with ferent answers. The truth is they ple the benefits of an account
upon to work, it will calculate it. I had one particular super at don’t know. They will have to go manager like me. ‘Where else can
the gas-air mix for each fastening one of my larger drywall accounts through a series of problem-solv- you go and have a guy come out to
anew. For example, if the air is thin- who was not using any Hilti prod- ing steps to find the answer. First, your jobsite, who will actually
ner, at a higher altitude, it will need ucts. I arranged a demonstration they will have to go back to their hold your hand, and explain
less gas. That’s why Stefan Bönig with him and many members of gangbox to get a new gas canister, everything you need to know
and his team developed the first his company including the vice- a new battery or nails. Then they about this tool. You don’t have to
consumable that can “think”: be- president of operations. While do- will have to change the gas canis- spend another two hours of your
fore the nail is set, radio waves ing the demo, I explained all the ter. If that doesn’t work, they will life reading the instruction ma-
transmit the fill level from a chip at features and benefits of the tool have to change the battery and fi- nual. We do it for you. So we’re
the can to the tool. And after the and everybody was really im- nally, it could be that they are out worth the price.’
nail is set, these same waves tell the pressed. So the next step was to of nails. The point is that all of
take the tool out to the jobsite. these steps take time. Now with As far as price goes, I’ve never
About two weeks later, I checked the GX 120, the LED gas indicator had someone come up to me and
back with him. He said: ‘It was light combined with the internal ask: ‘What’s the value of this
working like a champ.’ This was battery system which doesn’t need tool?’ They always say: ‘What’s
impressive since the concrete on charging eliminates all of this your price?’ The key is to discuss
this job was especially hard and guesswork. It is the same thing the features and benefits of the
the competitive tool that he was with the front end of the tool: show tool and the value of it to the
using was not working. He said: your customers how easy the front customer. 75 percent of the job
‘Mark, I love the tool!’ Now here’s end is to remove and how you can is labor, 25 percent is material, of
a guy that had been using the adjust the power of it. I really think which the material for the fasten-
competition for years and over- this tool is top-notch, and I think ings is a mere fraction. So what’s
night, he became a believer. ‘I when you combine the DX351 really important is saving time,
love it! I want it! I want to make with the GX120 you can cover all and how productive the
a deal!’ So I thought that was a
pretty good experience.
the needs on the jobsite.
In the northeastern United States
tools are.
Mark Tett,
”
The tool has certain features and you have high wages, so any time Hilti Account Manager,
benefits that need to be explained. you have a problem with tools or New York, USA
You have to go out onto the jobsite with the quality of fastenings, it
and talk to the users and say: ‘Lis- costs a lot of money. My customers
ten, when the tool stops working, are quick to see that the quality of
meaning the competitor’s tool, the tool and the performance of thePage 26
Success grows out of teamwork:
together they overcame
setbacks and celebrated
successful milestones.
Stefan Bönig (second from left)
and his colleagues, creators
of the new gas system.
chip the fill level less the amount
of gas just used. The can’s “little
brain” records this value and pro-
vides the tool’s electronic appara-
tus with the data, so it can prepare
the optimal dose for the next deliv-
ery of gas – no matter whether the
gas can is used in the same tool, or
in another. “This is the same tech-
nology, though slightly simplified,
that has been used in automotive
construction for some time now,”
explains Stefan Bönig. “A car key
with a door-opener function works
according to the same principle.”
An LED gas indicator, a world pre- manufacturers’ tools are dependent
For electricians, plumbing fitters and
miere, lets users know the current on a battery-driven fan, which
ventilation technicians
gas level and reminds them to means that the battery must be
change cans in time, so that they recharged from time to time. The
don’t have to break off their work Hilti GX 120 is different: thanks to
unexpectedly. its flying plate, it can go its entire
lifetime without a new battery. One
There are other ways in which the single battery is enough to run all
Hilti GX120 is like a car: if the tool of the electronic switches inside
ever fails to function, a specialist in the tool. Think of it as a small con-
the Hilti repair center can hook it tribution to the environment and to
up to the so-called service interface user-friendliness.
on his or her computer and imme-
diately discover the cause for the And by the way, before the tool’s
breakdown. And if the specialist developers built the prototype,
opens the tool up, its components they were able to look at it on the
are arranged so cleverly that it is computer screen and shorten the
easy to replace individual parts. On time needed for development by
the other hand, the piston isn’t like- simulating airstreams and thermal
ly to need replacing all that soon: it conduction. In other words, the
was made to deliver 50,000 fasten- prototype itself already enjoyed
ings, probably a record. And cer- optimal cooling. Because exces-
tainly another gain in efficiency sively high operating temperatures
and economy for users. reduce performance, the tool cools The new Hilti GX 120 gas system is available as a special model for
itself as much as possible during the electrical industry, as well as for heating, plumbing and air condi-
So does the new gas system actual- use. And once the nail has been set, tioning. The magazine holds only 20 fasteners, and the tool’s nose
ly work like an airplane in the end? the flying plate returns to its origi- can be exchanged without any appliances, just as on the standard
It certainly is the case – and Stefan nal position. tool. Electricians can use the Hilti GX 120-ME to fasten clamps, brackets,
Bönig and his team are particular- pegs and cable bends directly to the necessary material. All they need
ly proud of this – that a flying plate to do is attach the right tool nose, and they will be amazed at their own
mixes the air sucked into the efficiency.
tool with gas until it ignites. OtherYou can also read
