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COMPANY REPORT 2020 Hilti Company Report

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COMPANY REPORT 2020 Hilti Company Report 2020 COMPANY REPORT 2020 Hilti Company Report COVER STORY WELCOME Stability and teamwork – two qualities that were more important than ever in the chal- lenging year of 2020. Key Project Coordinator Rodolfo Lobo, from Chile, is on site when called to demonstrate to his customer, OHL, the best Hilti solution for the concrete lining of a tunnel in Santiago. The picture is representative of a year in which this approach was subject to special challenges. A great deal of dedication, innovative spirit and resolve was deployed by about 30,000 employees to help our customers complete their projects, against all odds, faster, safer and more efficiently in 2020. The Com- pany Report from this singular year includes snapshots of Hilti customers and employees and their stories. Experience Hilti’s year 2020 online 2020 Hilti Company Report 02 EDITORIAL 04 COMPANY PROFILE 08 CEO INTERVIEW 10 CHAMPION 2020 STRATEGY 12 Product and Service Differentiation 26 Direct Customer Relationship 38 Operational Excellence 50 High-Performing Global Team 62 SUSTAINABILITY MANAGEMENT 64 EXECUTIVE BOARD 66 BOARD OF DIRECTORS 68 FINANCIAL FIGURES 01 2020 Hilti Company Report DEAR READERS, 2020 was an exceptional year that a 9.6 percent decline in sales in Swiss witnessed a societal and economic francs. We were able to avoid any re- shutdown that was heretofore con- structuring within our global team and sidered impossible. Measures taken continued to consistently invest in our by national governments to deal with strategic fields of innovation, digital the COVID-19 pandemic varied great- transformation and sustainability. ly. In many countries the majority of construction sites were kept open as This year we once again launched 74 essential economic businesses, while highly differentiated products which in others there was a complete shut- make our customers’ work more pro- down for many weeks. The business ductive and allow them to function with results for this year vary from region to greater safety. Some of these products region accordingly. are presented in this report. When it comes to development, we continue From the very beginning of the cri- to focus on integrated solutions that sis, our priorities were to provide the increasingly combine hardware, soft- best possible protection for our em- ware and services which support our ployees, maintain our ability to deliver customers in their daily applications products and provide services to our and core processes. Additionally, customers, and preserve the financial these solutions almost always contain stability of the company. At the end digital elements where data is used as of what has been a turbulent year we a basis for decision-making, optimi- are pleased to say that we have suc- zation, documentation or continuous ceeded in meeting these priorities to learning. A central theme of our digital the greatest extent possible. Within a transformation is the use of available very short period, our IT unit made it customer data to create a personal- opportunity. 2020 was also when we that we are presenting our first com- and is somewhat painful. However, it Heinrich Fischer possible for the majority of our world- ized, relevant customer approach. began implementing our comprehen- prehensive sustainability report at the has no lasting effect on the company's Chairman of the Board of Directors wide employees to work remotely. This transformation includes the in- sively revised sustainability strategy, same time as we publish this year's excellent state of health and bright fu- The highly professional work of our troduction of a new CRM system and in which we clearly committed our- company report. This includes a com- ture. global purchasing, manufacturing involves a major training effort for our selves to greater responsibility to the prehensive account of the various so- and logistics teams guaranteed that approximately 18,000 sales and mar- environment and society. In addition cial initiatives and projects of the Hilti We would like to thank you, our cus- we were able to supply products and keting employees. Originally this was to the activation of the entire company, Foundation, which once again this tomers and partners, for your con- make repairs anywhere in the world at planned over a period of two years, we also made good progress on our year have had a positive impact on the tinued trust. Special thanks go to our any time, ensuring that our custom- through the end of 2021. But, as the global focus topics. For example, we lives of many people. employees worldwide – especially in Christoph Loos ers could continue to work efficient- majority of our worldwide team had have come a good deal closer to our this year of COVID-19 – for the com- Chief Executive Officer ly. Thanks to great discipline, we also to stay at home during weeks of lock- commitment, as a company, to having Visit www.hiltifoundation.org mitment and passion they display in succeeded in maintaining our finan- down, we quickly decided to utilize this our business activities CO2-neutral by to learn more. bringing our corporate mission state- cial stability. With 13.7 percent return time to vastly accelerate the introduc- the end of 2023. Furthermore, we are ment to life every day: We passionate- on sales (ROS) and 16.4 percent return tion of the new system. This required striving to achieve a circular economy Overall, we can therefore look back ly create enthusiastic customers and on capital employed (ROCE), we re- a switch to purely digital training mea- in as many areas as possible, with the on this unusual business year with a build a better future. mained within the financial target cor- sures – one of the many examples of goal of being the leading company in black eye, but also with a smile. The ridor of our corporate strategy despite how we used the crisis this year as an our industry. A part of this is the fact black eye is reflected in our figures 02–03 2020 Hilti Company Report KEY FIGURES 5,900 783 6,000 5,659 800 728 728 5,332 681 5,500 700 5,113 604 5,000 4,633 600 4,500 500 4,000 400 3,500 300 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Net sales in CHF million Operating result in CHF million 591 13.7 600 14.0 13.3 13.3 546 13.0 12.9 550 521 531 13.0 481 500 12.0 450 11.0 400 10.0 350 10.0 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Net income in CHF million Return on sales (ROS) in % 21.0 21.1 20.6 22.0 19.8 500 459 18.0 16.4 400 325 303 14.0 300 248 245 10.0 200 6.0 100 2.0 0 2016 2017 2018 2019 2020 2016 2017 2018 2018 2020 Return on capital employed (ROCE) in % Free cash flow in CHF million COMPANY PROFILE (before acquisition and disposal of subsidiaries, including lease payments) Hilti stands for quality, innovation and sales each year in research and devel- Our mission statement, “We passion- direct customer relationships. Some opment. From product development ately create enthusiastic customers 400 367 32,000 30,006 29,549 30,000 employees around the world, to manufacturing, logistics, sales and and build a better future,” is the com- 355 358 29,004 in more than 120 countries, contribute services, we cover the entire value- pass by which we align our entrepre- 350 311 29,000 26,881 280 to making work on construction sites added chain. neurial activities and develop sustain- 300 26,000 24,619 simpler, faster and safer while inspir- able and innovative solutions. Hilti 250 23,000 ing customers every single day. With Our strategic objective is sustainable thereby takes equal responsibility for products, system solutions, software value creation through market leader- the health and safety of its employees 200 20,000 and services that provide clear added ship and differentiation. The compa- and users of its products, as well as 150 17,000 value. Having roughly 250,000 individ- ny, based in Schaan, Liechtenstein, for society and the environment. In 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 ual customer contacts each day, ideas has also been planning with financial addition to the charitable Hilti Founda- Research and development expenditure Employees at December 31 for improvement are often developed foresight since its founding in 1941 by tion, our integrated partner in issues in CHF million directly on construction sites while brothers Eugen and Martin Hilti. All of sustainability, the values we live by talking to customers. If there is a chal- company shares are in the possession every day in our dealings with team lenge for which no Hilti solution exists, of the Martin Hilti Family Trust, which members, partners and customers – Please note one will be developed. This is why ensures the long-term continuity of integrity, courage, teamwork and 2017 numbers have been restated due to the adoption of IFRS 15 Revenue from contracts with customers and IFRS 9 Financial Instruments. we invest approximately 6 percent of the Hilti Group. commitment – also contribute to this. Numbers prior to 2017 have not been restated. 04–05 2020 Hilti Company Report BUSINESS AREAS Anchor Systems Measuring Systems Hilti sets new standards in anchor Hilti’s robust laser, radar and optical fastening technology with mechanical tools cover all the requirements for and chemical anchoring systems as measuring, leveling, aligning and de- well as cast-in anchors. These sys- tecting, from excavation through to tems are also designed to withstand renovation and maintenance tasks. seismic activity. Technical experts The easy-to-use system solutions also and software help to ensure correct serve to bring digital planning directly anchor selection and application.
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