Consolidated financial statements

Notes to the consolidated financial statements

Segment information

	GF Piping Systems		GF Automotive		GF Machining Solutions		Total segments
CHF million	2016	2015	2016	2015	2016	2015	2016	2015

Order intake 1	1'488	1'429	1'346	1'331	917	902	3'751	3'662
Orders on hand at year-end 1	73	81	353	346	189	185	615	612

Sales 2	1'494	1'417	1'335	1'321	916	902	3'745	3'640

Sales by region
Europe	546	538	1'120	1'126	419	420	2'085	2'084
– Thereof Germany	139	134	724	755	134	133	997	1'022
– Thereof Switzerland	107	105	3	3	51	53	161	161
– Thereof Austria	22	22	51	53	17	17	90	92
– Thereof Rest of Europe	278	277	342	315	217	217	837	809
Americas	315	297	38	37	189	180	542	514
Asia	448	404	169	154	271	261	888	819
– Thereof China	326	298	168	153	180	179	674	630
Rest of world	185	178	8	4	37	41	230	223
Sales	1'494	1'417	1'335	1'321	916	902	3'745	3'640

EBITDA	214	193	161	148	77	92	452	433

Depreciation on tangible fixed assets	–49	–48	–61	–59	–12	–12	–122	–119
Amortization on intangible assets	–3	–2			–3	–2	–6	–4
Operating result (EBIT)	162	143	100	89	62	78	324	310

Assets 3	1'254	1'159	1'094	1'070	674	671	3'022	2'900
– Thereof current assets	759	684	394	393	498	506	1'651	1'583
– Thereof non-current assets	495	475	700	677	176	165	1'371	1'317

Investments by region
Europe	28	22	65	66	11	8	104	96
– Thereof Germany	1	1	26	17	1		28	18
– Thereof Switzerland	18	14			8	5	26	19
– Thereof Austria	5	4	39	49			44	53
– Thereof Rest of Europe	4	3			2	3	6	6
Americas	10	8	13		1		24	8
Asia	7	7	11	14	3	2	21	23
– Thereof China	7	7	11	14	1	1	19	22
Rest of world	6	11					6	11
Investments	51	48	89	80	15	10	155	138
– Thereof capital expenditures	49	46	88	80	13	9	150	135
– Thereof investments in intangible assets	2	2	1		2	1	5	3

Liabilities	712	744	766	750	435	415	1'913	1'909
– Thereof current liabilities	378	395	380	338	258	249	1'016	982
– Thereof non-current liabilities	334	349	386	412	177	166	897	927

Research and development	38	37	18	18	48	47	104	102

1 Order intake and orders on hand at year-end were not in scope of the audit by the statutory auditor.

2 Sales between other divisions are not material.

3 The amount of investments in associates accounted for by the equity method is not material.

Reconciliation to the segment information

CHF million	2016	2015

Sales
Sales of reportable segments	3'745	3'640
Elimination of intercompany sales	–1
Consolidated sales	3'744	3'640

Operating result (EBIT)
Total EBIT for reportable segments	324	310
Total EBIT Corporate Center and Corporate Services	–13	–14
Other unallocated amounts
Consolidated operating result (EBIT)	311	296

Interest income	2	2
Interest expense	–30	–34
Other financial result	–3	–16
Ordinary result	280	248

Non-operating result	1	3
Extraordinary result
Profit before taxes	281	251

Income taxes	–56	–53
Net profit	225	198

Assets
Assets of reportable segments	3'022	2'900
Elimination of intercompany positions	–359	–313
Other assets
– Current assets (mainly cash and cash equivalents)	394	369
– Non-current assets	145	123
Other unallocated amounts		4
Consolidated assets	3'202	3'083

Investments
Investments of reportable segments	155	138
Other investments
– Germany	26	33
– Switzerland	3
Investments of Corporation	184	171

Liabilities
Liabilities of reportable segments	1'913	1'909
Elimination of intercompany positions	–637	–639
Other liabilities
– Current liabilities	57	239
– Non-current liabilities	638	405
Other unallocated amounts	31	39
Consolidated liabilities	2'002	1'953

Geographical information

	Non-current assets		Sales
CHF million	2016	2015	2016	2015

Total	1'178	1'149	3'744	3'640

Europe	831	811	2'084	2'084
– Thereof Germany	340	327	997	1'022
– Thereof Switzerland	244	251	161	161
– Thereof Austria	207	194	90	92
– Thereof Rest of Europe	40	39	836	809
Americas	91	77	542	514
Asia	212	210	888	819
– Thereof China	202	198	674	630
Rest of world	44	51	230	223

Products, services and most important revenue sources

	Sales
CHF million	2016	2015

GF Piping Systems	1'494	1'417

Industry 1	540	490
Utility 2	561	548
Building technology 3	393	379

GF Automotive	1'335	1'321

Passenger cars	877	868
Trucks	393	382
Industrial applications	65	71

GF Machining Solutions	916	902

EDM (Electric Discharge Machining)	276	299
Milling	292	276
Automation/Tooling/Laser	95	78
Customer service	253	249

1 Products for the treatment and transport of water and other media for industrial applications.

2 Products for the supply of gas and water.

3 Products for the supply of water und floor-heating systems in buildings.

Information about major customers

There are no single customers whose sales amount to 10% or more of the sales of the Corporation.