4. Corporate structure

4. Corporate structure

This section provides information on how the Corporate structure affects the financial position and performance of the Corporation as a whole. In particular, information about changes to the structure that occurred during the year as a result of additions and disposals is provided.

4.1 Additions and disposals

4. Corporate structure

This section provides information on how the Corporate structure affects the financial position and performance of the Corporation as a whole. In particular, information about changes to the structure that occurred during the year as a result of additions and disposals is provided.

4.1 Additions and disposals

4.1.1 Changes in scope of consolidation

During the year under review, the scope of consolidation changed as follows:

Additions (acquisitions) 2018

  • As of 1 April 2018, Precicast Industrial Holding SA, Novazzano, Switzerland
    Pro rata sales 2018: CHF 77.3 million
    Division: GF Casting Solutions                                                                     

Additions (foundations) 2018

– As of 1 April 2018, PT Georg Fischer Indonesia (Trading), Karawang, Indonesia
   Division: GF Piping Systems 

Disposals (divestments) 2018

  • As of 1 December 2018, iron casting plants Singen and Mettmann, Germany
    Division: GF Casting Solutions

    Iron casting plant Singen:
    GF Casting Solutions Singen GmbH, Singen, Germany
    GF Casting Solutions Machining Singen GmbH, Singen, Germany

    Iron casting plant Mettmann:
    GF Casting Solutions Mettmann GmbH, Mettmann, Germany
    GF Casting Solutions Services GmbH, Mettmann, Germany

    Pro rata sales 2018: CHF 617.3 million                                                                      

During the previous year, the scope of consolidation changed as follows:

Additions (foundations) 2017

  • As of 29 June 2017, 9362-6877 Québec Inc, Montreal, Canada
    Division: Corporate Management
  • As of 9 August 2017, GF Machining Solutions, S.A. de C.V., Monterrey, Mexico
    Division: GF Machining Solutions
  • As of 26 September 2017, Chinaust Plastics Ltd, Haining, China
    Division: GF Piping Systems

Additions (acquisitions) 2017

  • As of 31 July 2017, Urecon Ltd, Coteau-du-Lac, Quebec, Canada
    Pro rata sales: CHF 10.7 million
    Division: GF Piping Systems
  • As of 29 August 2017, PEM Zerspanungstechnik GmbH, Schwarzenberg, Germany
    Pro rata sales: CHF 0.5 million
    Division: GF Casting Solutions
  • As of 26 September 2017, Symmedia GmbH, Bielefeld, Germany
    Pro rata sales: CHF 1.8 million
    Division: GF Machining Solutions
  • As of 23 November 2017, Eucasting Ro SRL, Pitesti, Romania
    Pro rata sales: CHF 7.1 million
    Division: GF Casting Solutions

4.1.2 Acquisitions and divestitures of Affiliated Companies

CHF million

 

Divestment iron casting plant Singen

 

Divestment iron casting plant Mettmann

 

Total divestments 2018

 

Acquisition 2018 Precicast Industrial Holding SA

 

Total acquisitions 2017

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

 

19

 

3

Trade accounts receivable

 

–53

 

–42

 

–95

 

27

 

15

Inventories

 

–40

 

–24

 

–64

 

43

 

10

Other accounts receivable

 

–9

 

–22

 

–31

 

4

 

2

Property, plant, and equipment

 

–40

 

–47

 

–87

 

22

 

28

Intangible assets

 

 

 

 

1

 

7

Deferred tax assets

 

–11

 

–12

 

–23

 

 

 

1

Other financial assets

 

 

 

 

 

 

9

 

Total assets

 

–153

 

–147

 

–300

 

125

 

66

 

 

 

 

 

 

 

 

 

 

 

Deferred tax liabilities

 

 

 

 

5

 

2

Non-interest bearing liabilities

 

–117

 

–116

 

–233

 

36

 

21

Interest-bearing liabilities

 

–17

 

–17

 

–34

 

 

 

15

Net assets

 

–19

 

–14

 

–33

 

84

 

28

The table shows the value of the balance sheet items acquired at fair value at the time control was obtained as well as the carrying amounts of the balance sheet items deconsolidated at the time control was lost.

Total net cash-out for acquisitions inclusive earn-out payments amounted to CHF 154 million (previous year: CHF 74 million) in the year under review while divestment was cash neutral as explained below.

Additions (acquisitions) 2018

Acquisition of Precicast Industrial Holding SA

In the period under review, 100% of the shares of the Swiss precision casting specialist, Precicast Industrial Holding SA, Novazzano (Switzerland), control of the acquired company was assumed on 1 April 2018.

Precicast Industrial Holding SA (Precicast) is one of the few independent precision casting companies in Europe, specializing in super alloy components for aero engines and industrial gas turbines. In addition, the company produces components out of additive manufacturing (3D printing) through Precicast Additive SA.

The company generated a turnover of approx. CHF 120 million in 2017 with a workforce of 730 employees in Switzerland and in Romania.

Disposals (divestitures) 2018

Divestment of iron casting plants Singen and Mettmann

The two iron casting plants in Singen and Mettmann (Germany) supplying the automotive industry with a dedicated workforce of around 2’000 employees and combined annual sales of CHF 617 million (for the eleven months in 2018) were deconsolidated on 1 December 2018. As a result of the divestment, all assets and liabilities of the formerly fully owned entities were deconsolidated. 

GF retains a share of 20% in the equity of the divested GF Corporate Companies and also exercises a certain degree of influence on the divested entities. Consequently, GF records its share on the entities as investments in associates on the balance sheet as of 31 December 2018 and applies the equity accounting method, see note 5.2.

For the acquisition of the two iron casting plants and the subsequent acquisition of production equipment GF provided vendor financing in the amount of CHF 62 million, see note 5.2 for further details. After taking into account the deconsolidation of the assets and liabilities, the accumulated currency translation effects as well as the related transaction costs and accruals, the transaction resulted in an even result in the income statement.

Additions (acquisitions) 2017

The totals of assets and liabilities of the previous year’s acquisitions are presented in the table on the previous page. During the previous year the following affiliated companies were acquired:

Acquisition of Urecon Ltd

9362-6877 Québec Inc, Montreal (Canada), acquired 49% of the capital of Urecon Ltd, Quebec (Canada). This acquisition includes an option to acquire the remaining 51% of the shares 24 months after the closing. Urecon is fully consolidated without minority interests as GF took the commercial and operational lead. The closing date was 31 July 2017.

Urecon, founded in 1969, generated sales of about CHF 20 million with a workforce of approximately 100 employees, in 2016. Urecon Ltd holds a strong market position with a focus on high-quality pre-insulated piping systems for freeze protection, chilled water, and district heating markets. Its two state-of-the-art production sites are located in the provinces of Quebec, Coteau-du-Lac (Canada), and Alberta, Calmar (Canada).

Acquisition of PEM Zerspanungstechnik GmbH

Meco Eckel GmbH & Co KG, Biedenkopf-Wallau (Germany), acquired 51% of the capital of PEM Zerspanungstechnik GmbH, Schwarzenberg (Germany), and obtained full control of the acquired company. The closing date was 29 August 2017.

PEM is a small company with a dedicated, experienced workforce. This specialized engineering and machining company produces state-of-the-art HPDC tools and molds. PEM has been a major supplier to Meco Eckel for years. 

Acquisition of Symmedia GmbH

Georg Fischer B.V. & Co KG, Singen (Germany), acquired 100% of the capital of Symmedia GmbH, Bielefeld (Germany). The closing date was 26 September 2017.

Symmedia was founded in 1997 and has a workforce of approximately 60 employees. The company has been specializing in software for secure machine connectivity solutions, commonly described as Industry 4.0, and is a key player in factory digitalization. The Symmedia technology will be used by GF to offer complete solutions for factory connectivity in industrial environments.

Acquisition of Eucasting Ro SRL

Georg Fischer Ltd, Schaffhausen (Switzerland), acquired 100% of the capital of Eucasting Ro SRL, Pitesti (Romania). The closing date was 23 November 2017.

Eucasting, founded in 1960 in Italy, generated sales of about CHF 50 million with a workforce of approximately 500 employees, in 2016. Eucasting is a high pressure aluminum die casting specialist. 60% of the sales are achieved in the automotive segment followed by lighting solutions and further industrial applications. Besides the die casting foundry in Pitesti (Romania) the company has a second plant in Scornicesti (Romania).

Accounting principles

Companies acquired are consolidated from the date on which control is obtained, while companies sold are excluded from the scope of consolidation as of the date on which control is relinquished, with any gain or loss recognized in income.

Assets and liabilities of acquired companies are assessed at fair value at the time control is acquired. The translation of the original values into Swiss francs is calculated using the exchange rates of the respective transaction date. Assets and liabilities of divested companies are deconsolidated at their carrying amount.

4.2 Affiliated companies

4.2 Affiliated companies

Country

 

Division

 

Company

 

Func- tional currency

 

Share capital million

 

Partici- pation %

 

Con- soli- dation

 

Func- tion

Europe

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Austria

 

PS

 

Georg Fischer Fittings GmbH, Traisen

 

EUR

 

3.7

 

51

 

C

 

P

 

 

PS

 

Georg Fischer Rohrleitungssysteme GmbH, Herzogenburg

 

EUR

 

0,2

 

100

 

C

 

S

 

 

CS

 

GF Casting Solutions Services GmbH, Herzogenburg 1

 

EUR

 

4,6

 

100

 

C

 

H

 

 

CS

 

GF Casting Solutions Herzogenburg HPDC GmbH, Herzogenburg

 

EUR

 

0,1

 

100

 

C

 

P

 

 

CS

 

GF Casting Solutions Herzogenburg Iron GmbH, Herzogenburg

 

EUR

 

0,1

 

100

 

C

 

P

 

 

CS

 

GF Casting Solutions Altenmarkt GmbH & Co KG, Altenmarkt

 

EUR

 

2,4

 

100

 

C

 

P

 

 

CS

 

GF Casting Solutions Altenmarkt GmbH, Altenmarkt

 

EUR

 

0,1

 

100

 

C

 

M

Belgium

 

PS

 

Georg Fischer NV-SA, Bruxelles 1

 

EUR

 

0,5

 

100

 

C

 

S

Czech

 

MS

 

GF Machining Solutions sro, Brno 1

 

CZK

 

12,3

 

100

 

C

 

S

Denmark

 

PS

 

Georg Fischer A/S, Taastrup 1

 

DKK

 

0,5

 

100

 

C

 

S

France

 

CM

 

Georg Fischer Holding SAS, Palaiseau 1

 

EUR

 

6,4

 

100

 

C

 

H

 

 

PS

 

Georg Fischer SAS, Villepinte

 

EUR

 

1,1

 

100

 

C

 

S

 

 

MS

 

GF Machining Solutions SAS, Palaiseau

 

EUR

 

4,0

 

100

 

C

 

S

Germany

 

CM

 

Georg Fischer BV & Co KG, Singen 1

 

EUR

 

25,6

 

100

 

C

 

H

 

 

CM

 

Georg Fischer Geschäftsführungs-GmbH, Singen 1

 

EUR

 

0,1

 

100

 

C

 

M

 

 

CM

 

Georg Fischer Giessereitechnologie GmbH, Singen

 

EUR

 

0,5

 

100

 

C

 

M

 

 

CM

 

MGH Verwaltungs GmbH, Biedenkopf-Wallau

 

EUR

 

0,1

 

51

 

C

 

M

 

 

PS

 

Georg Fischer DEKA GmbH, Dautphetal-Mornshausen

 

EUR

 

2,6

 

100

 

C

 

P

 

 

PS

 

Georg Fischer GmbH, Albershausen

 

EUR

 

2,6

 

100

 

C

 

S

 

 

PS

 

Georg Fischer Fluorpolymer Products GmbH, Ettenheim

 

EUR

 

4,0

 

100

 

C

 

P

 

 

PS

 

Chinaust Automotive GmbH, Düsseldorf

 

EUR

 

0,1

 

50

 

F

 

S

 

 

CS

 

GF Casting Solutions Singen GmbH, Singen

 

EUR

 

0,1

 

20

 

E

 

P

 

 

CS

 

GF Casting Solutions Machining Singen GmbH, Singen

 

EUR

 

12,8

 

20

 

E

 

P

 

 

CS

 

GF Casting Solutions Mettman GmbH, Mettmann

 

EUR

 

0,1

 

20

 

E

 

P

 

 

CS

 

GF Casting Solutions Leipzig GmbH, Leipzig

 

EUR

 

0,9

 

100

 

C

 

P

 

 

CS

 

GF Casting Solutions Werdohl GmbH, Werdohl

 

EUR

 

0,3

 

100

 

C

 

P

 

 

CS

 

GF Casting Solutions Services GmbH, Mettmann

 

EUR

 

0,1

 

20

 

E

 

M

 

 

CS

 

MECO Eckel GmbH & Co KG, Biedenkopf-Wallau

 

EUR

 

0,2

 

51

 

C

 

P

 

 

CS

 

Eckel & Co GmbH, Biedenkopf-Wallau

 

EUR

 

0,1

 

51

 

C

 

M

 

 

CS

 

PEM Zerspanungstechnik GmbH, Schwarzenberg

 

EUR

 

0,1

 

51

 

C

 

P

 

 

MS

 

GF Machining Solutions GmbH, Schorndorf

 

EUR

 

2,6

 

100

 

C

 

S

 

 

MS

 

Symmedia GmbH, Bielefeld

 

EUR

 

1,4

 

100

 

C

 

P

Great Britain

 

PS

 

George Fischer Sales Ltd, Coventry 1

 

GBP

 

4,0

 

100

 

C

 

S

 

 

MS

 

GF Machining Solutions Ltd, Coventry 1

 

GBP

 

2,0

 

100

 

C

 

S

Italy

 

CM

 

Georg Fischer Holding Srl, Caselle di Selvazzano 1

 

EUR

 

0,5

 

100

 

C

 

H

 

 

PS

 

Georg Fischer TPA Srl, Busalla

 

EUR

 

0,7

 

100

 

C

 

P

 

 

PS

 

Georg Fischer Omicron Srl, Caselle di Selvazzano

 

EUR

 

0,1

 

100

 

C

 

P

 

 

PS

 

Georg Fischer Pfci Srl, Valeggio sul Mincio

 

EUR

 

0,5

 

100

 

C

 

P

 

 

PS

 

Georg Fischer SpA, Cernusco sul Naviglio

 

EUR

 

1,3

 

100

 

C

 

S

 

 

MS

 

GF Machining Solutions SpA, Cusano Milanino

 

EUR

 

3,0

 

100

 

C

 

S

Netherlands

 

CM

 

Georg Fischer Holding NV, Epe 1

 

EUR

 

0,9

 

100

 

C

 

H

 

 

CM

 

Georg Fischer Management BV, Epe 1

 

EUR

 

0,1

 

100

 

C

 

M

 

 

PS

 

Georg Fischer NV, Epe

 

EUR

 

0,9

 

100

 

C

 

S

 

 

PS

 

Georg Fischer WAGA NV, Epe

 

EUR

 

0,4

 

100

 

C

 

P

Norway

 

PS

 

Georg Fischer AS, Rud 1

 

NOK

 

1,0

 

100

 

C

 

S

Poland

 

PS

 

Georg Fischer Sp.z.o.o., Sękocin Nowy 1

 

PLN

 

18,5

 

100

 

C

 

S

 

 

MS

 

GF Machining Solutions Sp.z.o.o., Sękocin Nowy 1

 

PLN

 

1,3

 

100

 

C

 

S

Romania

 

CS

 

GF Casting Solutions SRL, Pitești 1

 

RON

 

6,5

 

100

 

C

 

P

 

 

CS

 

GF Precicast SRL, Arad

 

RON

 

24,5

 

100

 

C

 

P

Spain

 

PS

 

Georg Fischer SA, Madrid 1

 

EUR

 

1,5

 

100

 

C

 

S

 

 

MS

 

GF Machining Solutions SAU, Barcelona 1

 

EUR

 

2,7

 

100

 

C

 

S

Sweden

 

PS

 

Georg Fischer AB, Stockholm 1

 

SEK

 

1,6

 

100

 

C

 

S

 

 

MS

 

System 3R International AB, Vällingby 1

 

SEK

 

17,1

 

100

 

C

 

P

Switzerland

 

CM

 

WIBILEA AG, Neuhausen 1

 

CHF

 

1,0

 

43

 

E

 

M

 

 

CM

 

Eisenbergwerk Gonzen AG, Sargans 1

 

CHF

 

0,5

 

49

 

F

 

M

 

 

CM

 

Georg Fischer AG, Schaffhausen

 

CHF

 

4,1

 

 

 

C

 

H

 

 

CM

 

Munot Re AG, Schaffhausen 1

 

EUR

 

3,0

 

100

 

C

 

M

 

 

CM

 

Georg Fischer Finanz AG, Schaffhausen 1

 

CHF

 

4,0

 

100

 

C

 

M

 

 

CM

 

GF Precicast Industrial Holding SA, Novazzano 1

 

CHF

 

1,0

 

100

 

C

 

H

 

 

PS

 

Georg Fischer Rohrleitungssysteme AG, Schaffhausen 1

 

CHF

 

20,0

 

100

 

C

 

P

 

 

PS

 

Georg Fischer Rohrleitungssysteme (Schweiz) AG, Schaffhausen 1

 

CHF

 

0,5

 

100

 

C

 

S

 

 

PS

 

Georg Fischer Wavin AG, Schaffhausen 1

 

CHF

 

17,8

 

60

 

C

 

P

 

 

PS

 

Georg Fischer JRG AG, Sissach 1

 

CHF

 

1,8

 

100

 

C

 

P

 

 

CS

 

GF Casting Solutions AG, Schaffhausen 1

 

CHF

 

1,0

 

100

 

C

 

M

 

 

CS

 

GF Precicast SA, Novazzano

 

CHF

 

1,0

 

100

 

C

 

P

 

 

CS

 

GF Precicast Ceramics SA, Novazzano

 

CHF

 

1,2

 

100

 

C

 

P

 

 

MS

 

GF Precicast Additive SA, Novazzano

 

CHF

 

0,2

 

50

 

C

 

P

 

 

MS

 

Agie Charmilles SA, Losone 1

 

CHF

 

10,0

 

100

 

C

 

P

 

 

MS

 

Agie Charmilles Services SA, Meyrin 1

 

CHF

 

3,6

 

100

 

C

 

S

 

 

MS

 

GF Machining Solutions Management SA, Meyrin 1

 

CHF

 

0,5

 

100

 

C

 

M

 

 

MS

 

GF Machining Solutions International SA, Losone 1

 

CHF

 

2,6

 

100

 

C

 

S

 

 

MS

 

Agie Charmilles New Technologies SA, Meyrin 1

 

CHF

 

2,0

 

100

 

C

 

P

 

 

MS

 

Mecartex SA, Losone

 

CHF

 

0,4

 

30

 

E

 

P

 

 

MS

 

GF Machining Solutions AG, Nidau 1

 

CHF

 

3,5

 

100

 

C

 

P

 

 

MS

 

Step-Tec AG, Luterbach 1

 

CHF

 

1,3

 

100

 

C

 

P

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Near East

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UAE

 

PS

 

Georg Fischer Corys LLC, Dubai 1

 

AED

 

0,3

 

49

 

E

 

P

Turkey

 

PS

 

Georg Fischer Hakan Plastik AS, Cerkezköy 1

 

TRY

 

270,0

 

100

 

C

 

P

 

 

MS

 

GF Imalat Cözümleri Ticaret Ltd Sti, Istanbul 1

 

TRY

 

2,9

 

100

 

C

 

S

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Argentina

 

PS

 

Georg Fischer Central Plastics Sudamerica SRL, Buenos Aires 1

 

ARS

 

16,2

 

100

 

C

 

S

 

 

PS

 

Polytherm Central Sudamericana SA, Buenos Aires

 

ARS

 

0,1

 

49

 

E

 

S

Brazil

 

PS

 

Georg Fischer Sistemas de Tubulacoes Ltda, São Paulo 1

 

BRL

 

11,5

 

100

 

C

 

S

 

 

MS

 

GF Machining Solutions Máquinas Ltda, São Paulo 1

 

BRL

 

60,9

 

100

 

C

 

S

Canada

 

CM

 

9362-6877 Québec Inc, Montreal 1

 

CAD

 

23,2

 

100

 

C

 

H

 

 

PS

 

Georg Fischer Piping Systems Ltd, Mississauga 1

 

CAD

 

1,3

 

100

 

C

 

S

 

 

PS

 

GF Urecon Ltd, Coteau-du-Lac, Québec

 

CAD

 

10,9

 

49

 

C

 

P

Mexico

 

PS

 

Georg Fischer SA de CV Mexico, Monterrey 1

 

MXN

 

0,1

 

100

 

C

 

S

 

 

MS

 

GF Machining Solutions LLC, Monterrey 1

 

MXN

 

0,1

 

100

 

C

 

S

USA

 

CM

 

George Fischer Corporation, El Monte, CA 1

 

USD

 

0,1

 

100

 

C

 

H

 

 

CM

 

Georg Fischer Export Inc, El Monte, CA 1

 

USD

 

0,1

 

100

 

C

 

M

 

 

PS

 

Georg Fischer LLC, Irvine, CA

 

USD

 

3,8

 

100

 

C

 

S

 

 

PS

 

Georg Fischer Signet LLC, El Monte, CA

 

USD

 

0,1

 

100

 

C

 

P

 

 

PS

 

Georg Fischer Central Plastics LLC, Shawnee, OK

 

USD

 

1,1

 

100

 

C

 

P

 

 

PS

 

Georg Fischer Harvel LLC, Easton, PA

 

USD

 

0,1

 

100

 

C

 

P

 

 

PS

 

Chinaust Automotive LLC, Troy, MI

 

USD

 

0,1

 

50

 

F

 

S

 

 

CS

 

GF Linamar LLC, Mills River, NC

 

USD

 

23,3

 

50

 

C

 

P

 

 

MS

 

GF Machining Solutions LLC, Lincolnshire, IL

 

USD

 

0,1

 

100

 

C

 

S

 

 

MS

 

Microlution Inc, Chicago, IL

 

USD

 

2,6

 

100

 

C

 

P

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia/Australia

 

 

 

 

 

 

 

 

 

 

Australia

 

CM

 

George Fischer IPS Pty Ltd, Riverwood 1

 

AUD

 

7,1

 

100

 

C

 

H

 

 

PS

 

George Fischer Pty Ltd, Riverwood

 

AUD

 

3,8

 

100

 

C

 

S

China

 

CM

 

Georg Fischer Business Services (Shanghai) Co Ltd, Shanghai 1

 

CNY

 

1,1

 

100

 

C

 

M

 

 

PS

 

Changchun Chinaust Automobile Parts Corp Ltd, Changchun

 

CNY

 

10,0

 

50

 

P

 

P

 

 

PS

 

Chinaust Plastics Corp Ltd, Zhuozhou

 

CNY

 

100,0

 

50

 

P

 

P

 

 

PS

 

Chinaust Plastics (Shenzhen) Co Ltd, Shenzhen 1

 

CNY

 

80,0

 

50

 

P

 

P

 

 

PS

 

Chinaust Plastics (Sichuan) Corp Ltd, Dujiangyan 1

 

CNY

 

80,0

 

50

 

P

 

P

 

 

PS

 

Hebei Chinaust Automotive Plastics Corp Ltd, Zhuozhou 1

 

CNY

 

58,2

 

50

 

P

 

P

 

 

PS

 

Shanghai Chinaust Automotive Plastics Corp Ltd, Shanghai 1

 

CNY

 

40,3

 

50

 

P

 

P

 

 

PS

 

Shanghai Chinaust Plastics Corp Ltd, Shanghai

 

CNY

 

66,0

 

50

 

P

 

P

 

 

PS

 

Shanghai Georg Fischer Chinaust Plastics Fittings Corp Ltd, Shanghai 1

 

CNY

 

52,0

 

51

 

C

 

P

 

 

PS

 

Georg Fischer Piping Systems Ltd, Shanghai 1

 

CNY

 

41,4

 

100

 

C

 

P

 

 

PS

 

Georg Fischer Piping Systems (Trading) Ltd, Shanghai 1

 

CNY

 

1,7

 

100

 

C

 

S

 

 

PS

 

Georg Fischer Piping Systems Ltd, Beijing 1

 

CNY

 

36,7

 

100

 

C

 

P

 

 

PS

 

Beijing Jingran Lingyun Gas Equipment Co Ltd, Langfang 1

 

CNY

 

6,0

 

40

 

P

 

P

 

 

PS

 

Langfang Shuchang Auto Parts Co Ltd, Langfang 1

 

CNY

 

10,0

 

40

 

P

 

P

 

 

PS

 

Chinaust Plastics Ltd, Haining

 

CNY

 

100,0

 

50

 

P

 

P

 

 

PS

 

Chinaust Plastics Ltd, Xian

 

CNY

 

73,0

 

50

 

P

 

P

 

 

CS

 

GF Casting Solutions Suzhou Co Ltd, Suzhou 1

 

CNY

 

209,5

 

100

 

C

 

P

 

 

CS

 

GF Casting Solutions Kunshan Co Ltd, Kunshan 1

 

CNY

 

149,5

 

100

 

C

 

P

 

 

MS

 

GF Machining Solutions Ltd, Hongkong 1

 

HKD

 

3,5

 

100

 

C

 

S

 

 

MS

 

Agie Charmilles China (Shanghai) Co Ltd, Shanghai

 

CNY

 

2,5

 

100

 

C

 

S

 

 

MS

 

Agie Charmilles China (Shenzhen) Ltd, Shenzhen

 

CNY

 

2,5

 

100

 

C

 

S

 

 

MS

 

Agie Charmilles China (Tianjin) Ltd, Tianjin

 

CNY

 

1,7

 

100

 

C

 

S

 

 

MS

 

Beijing Agie Charmilles Industrial Electronics Co Ltd, Beijing 1

 

CNY

 

80,3

 

78

 

C

 

P

 

 

MS

 

Beijing Agie Charmilles Technology & Service Ltd, Beijing

 

CNY

 

4,5

 

78

 

C

 

S

 

 

MS

 

Changzhou Agie Charmilles Machine Tool Co Ltd, Changzhou 1

 

CNY

 

138,1

 

100

 

C

 

P

 

 

MS

 

Liechti (Shanghai) Engineering Co Ltd, Shanghai 1

 

CNY

 

0,1

 

100

 

F

 

M

India

 

PS

 

Georg Fischer Piping Systems PVT Ltd, Mumbai 1

 

INR

 

215,4

 

100

 

C

 

P

Indonesia

 

PS

 

PT GF Piping Systems Indonesia, Karawang

 

IDR

 

12,7

 

100

 

C

 

P

 

 

PS

 

Georg Fischer Indonesia (Trading), Karawang

 

IDR

 

3,4

 

100

 

C

 

S

Japan

 

PS

 

Georg Fischer Ltd, Osaka 1

 

JPY

 

480,0

 

81

 

C

 

S

 

 

MS

 

GF Machining Solutions Ltd, Tokyo 1

 

JPY

 

50,0

 

100

 

C

 

S

Korea

 

PS

 

Georg Fischer Korea Co. Ltd., Yongin-si 1

 

KRW

 

600,0

 

100

 

C

 

S

 

 

MS

 

GF Machining Solutions Co Ltd, Seoul 1

 

KRW

 

975,0

 

100

 

C

 

S

Malaysia

 

PS

 

George Fischer (M) SDN BHD, Klang 1

 

MYR

 

10,0

 

100

 

C

 

P

New Zealand

 

PS

 

Georg Fischer Ltd, Wellington 1

 

NZD

 

0,1

 

100

 

C

 

S

Singapore

 

CM

 

Eurapipe Holdings Ptd Ltd, Singapore 1

 

SGD

 

6,2

 

100

 

C

 

H

 

 

PS

 

George Fischer Pte Ltd, Singapore

 

SGD

 

9,2

 

100

 

C

 

S

 

 

MS

 

GF Machining Solutions Pte Ltd, Singapore

 

SGD

 

2,1

 

100

 

C

 

S

Taiwan

 

PS

 

Georg Fischer Co Ltd, New Taipei City 1

 

TWD

 

1,0

 

100

 

C

 

S

 

 

MS

 

GF Machining Solutions Ltd, San Chung, Taipei Hsien 1

 

TWD

 

10,0

 

100

 

C

 

S

Vietnam

 

MS

 

GF Machining Solutions Co Ltd, Hanoi 1

 

VND

 

5000,0

 

100

 

F

 

S

1 Directly held by Georg Fischer Ltd.

Division
CM = Corporate Management
PS = GF Piping Systems
CS = GF Casting Solutions
MS = GF Machining Solutions

Consolidation
C = Fully consolidated
P = Proportionately consolidated
E = Stated based on the equity method
F = Stated at estimated fair value

Function
H = Holding
P = Production
M = Management and Services
S = Sales

Status as of 31 December 2018

4.3 Related Parties

4.3 Related Parties

Related parties include associated companies, members of the Board of Directors and the Executive Committee, pension funds and major shareholders as well as companies under their control. Transactions with related parties are generally conducted at arms’ length.

4.3.1 Transactions with related parties

As of 31 December 2018, the “Other financial assets” included CHF 62 million of loans to related companies which were granted in the financial year, see note 5.2. Contingent liabilities to related companies in favor of third parties in the maximum amount of CHF 125 million existed, see note 2.6 (2.6.3 Categories of financial instruments). In addition, a credit line of CHF 23 million existed towards a related party, of which CHF 1 million was used per 31 December 2018.

4.3.2 Compensation of related parties

Total compensation paid to the Board of Directors and Executive Committee breaks down as follows (see Compensation Report):

CHF 1’000

 

2018

 

2017

 

 

 

 

 

Cash compensation

 

6’959

 

6’812

Pension funds

 

864

 

857

Social security

 

485

 

495

Share-based compensation

 

2’558

 

4’044

Total compensation

 

10’866

 

12’208

The members of the Board of Directors are compensated by a fixed number of Georg Fischer registered shares blocked for a period of five years and a fixed fee paid in cash. Compensation corresponds to the respective function (Chairman, member of committees, etc.). The total compensation of the Board of Directors is recognized as operating expenses, see note 1.3 (1.3.1 Operating expenses).

The compensation for the Executive Committee consists of a long-term share-based incentive, a short-term cash incentive and a fixed base salary. The share-based incentive is granted to members of the Executive Committee in the form of performance shares (PS). The vesting is subject to two specific performance measures followed by a two-year blocking period. The total compensation of the Executive Committee is recognized accordingly in personnel expenses, see note 1.3 (1.3.2 Personnel expenses).

Share-based compensation is calculated based on the year-end share price of CHF 786.50 CHF (previous year: CHF 1’288.00). In the financial year, 1’500 restricted shares were granted to the Board of Directors (previous year: 1’390) and 1’752 performance shares were allotted to the Executive Committee (previous year: 1’750 shares). Share-based compensation to the Board of Directors and Executive Committee amounted to CHF 2.6 million (previous year: CHF 4.0 million).

No member of the Executive Committee or the Board of Directors or any persons related to them received any fees or other compensation for additional services to Georg Fischer Ltd or its Corporate Companies in the 2018 financial year.

The detailed disclosure of the compensation and shareholdings of the members of the Board of Directors and the Executive Committee in accordance with Swiss law can be found in the Compensation report, respectively in the financial statements of Georg Fischer Ltd in note 6 Compensation and shareholdings.

4.3.3 Loans to members of governing bodies

Neither Georg Fischer Ltd nor its GF Corporate Companies granted any guarantees, loans, advances, or credit facilities to members of the Executive Committee or the Board of Directors or to any persons related to them.