ANNUAL REPORT 2012 PROJECT FOCUs – ThE GEOLOGY OF GREINA Greina – at the end of 2013, the new map sheet of Greina should appear in the Atlas of Switzerland (Scale of 1:25,000). Structural measurements and mapping were conducted on behalf of swisstopo in the area between Vals, Vrin and Ol- ivone. This data allows supplementing the existing maps and interpreting them for the completion of the map sheet. (Other projects from page 14) CONTENTS LETTER TO SHAREHOLDERS 4 EQUITY HOLDINGS 6 OUR BUSINESS AREAS 10 PROJECT FOCUS 14 ECONOMIC BACKDROP 26 HOLINGER FITNESS PROGRAM 27 OUTLOOK AND DEVELOPMENT 28 ORGANISatION AND ORGANISatION CHartS 30 FACTS AND FIGURES 32 LOCatIONS 38 Annual Report HOLINGER AG 2012 3 LETTER TO SHAREHOLDERS DEAR SHAREHOLDERS AND COLLEAGUES, Environment (BAFU) estimates that around CHF 16 billion will DEAR FRIENDS AND BUSINESS partnerS need to be invested in flood protection alone by 2030 at fed- eral, cantonal and municipal level. The past business year has been one of the most successful in Educating and nurturing young talent the 80-year history of HOLINGER AG – we are right on track with – the foundation for quality and growth regard to both our financial goals and our long-term strategic Motivated professionals will also be needed in future to carry aims. Against a challenging economic backdrop we were able out work of this kind; this will only be possible if companies to improve our competitive advantage and our market position. work together with universities and educational institutions to With annual revenues of CHF 31.8 million – around CHF 1.0 ensure further training and secure the next generation of quali- million more than the previous year – own services of CHF 28.2 fied experts. That said, the long-term backdrop and growth op- million (previous year CHF 27.6 million), as well as the signifi- portunities must be in place in order to attract talented young cant divestment of corporate risk, we have achieved a marked people to take up careers in design and engineering. This re- improvement in our figures and managed to increase overall quires more than fair compensation; society as a whole needs profitability despite the highly problematic market conditions. a greater recognition of design and engineering services. This is Operating cash flow rose by +33.3% to CHF 2.8 million, thereby the only way we will be able to master challenges ahead and exceeding our forecasts and goals for 2012. This can be taken work together with our clients to shape Switzerland, our society as an indication of the success of the measures implemented in and our environment well into the future. different Business Areas to improve efficiency and the increase in HR training and development. Risk hedging for ongoing proj- As a company we must also ensure that we offer and deliver ects and costs for developing new markets, products and tech- engineering services in a way which is responsible, serious and nology were the primary factors which led to a net profit for accompanied by appropriate safety measures. Quality should 2012 of CHF 0.848 million after tax (+94.7% on the previous take precedence over price as the deciding factor. Tenders need year). to be assigned on the basis of innovative, creative engineering services. The current practice in public procurement of offering HOLINGER GROUP Overview and contracting highly demanding engineering services at aver- The HOLINGER GROUP generated consolidated turnover of CHF age rates of below CHF 90 per hour is unjust and inadequate if 33.6 million (previous year CHF 31.8 million) in 2012. we are to encourage young people to choose a career in design This was the first time in the company’s history that own ser- and engineering. vices were in excess of CHF 30 million. The number of staff fell slightly to 248 employees at the end of 2012. Order bookings In recent years we have only succeeded in strengthening our developed very well, amounting to CHF 29.9 million and practi- skills and human resources in multiple areas by hiring foreign cally matching annual own services in 2012. Consequently the skilled labour, engineers and graduates. As long as there is such order backlog was also up on the previous year, by +4.5% to a shortfall in young skilled and qualified workers in Switzerland, CHF 23.6 million. we will continue to hire well-qualified staff, predominantly from the EU. This is why we cannot comprehend the sometimes ill- Performance, innovation and stability – the basis for our informed Swiss political debates on the freedom of movement success of persons. The results are pleasing in many different respects. In 2012 HOLINGER not only managed to acquire important new cus- tomers and longer-term projects, but also saw high levels of customer satisfaction and customer loyalty. We are delighted The 2012 results are highly by all of the positive feedback and it motivates us to continue with our current strategy. Further improvement in our resources satisfactory. We managed to and skills was achieved in almost every Business Area. The dedi- cation, knowledge and creativity of our staff have once again increase output and reduce yielded many solutions without which our society would not corporate risk. There were im- be able to continue providing a functioning transport system, drinking water, hygiene and protection against natural hazards. provements to both organisa- The latter is a HOLINGER business field which will become ever more crucial in the coming years, as the Federal Office for the tion and management. 4 Our promise – satisfied customers through great Our capital – the trust from you, our customers, business performance partners, employees and shareholders In 2012, HOLINGER not only managed to provide solid services The confidence that you, our esteemed shareholders, have in our 9 divisions and 22 locations in Switzerland, Germany, Lux- placed in HOLINGER is critical for us and our colleagues on embourg and Morocco, but also created additional benefits and the Board of Directors and in Senior Management; your strong added value for our customers. This achievement is reflected in backing is essential. Your commitment inspires trust among our the record-breaking number of order bookings of CHF 29.3 mil- clients, as it does among our staff, friends and business part- lion (consolidated CHF 29.9 million) – CHF 4.4 million more than ners. We would like to thank all of you for making the 2012 the previous year. Consequently, reserves of work also increased business year one of the most successful in HOLINGER’s history. to CHF 22.1 million (previous year CHF 21.6 million), or to We are also grateful to every one of HOLINGER’s 248 employees 9.6 months overall. for their dedication and for driving our success in 2012. They have once again applied their creativity, flexibility and incred- Ongoing developments and outlook ible energy for our projects and clients and ultimately justified The financial results for the first quarter of 2013 were uncon- the trust our customers place in us. The Board of Directors has vincing and fell short of expectations. For 2013 as a whole we therefore decided the pay out a special bonus to our staff in rec- assume a variable backdrop riddled with uncertainty and an ognition of their performance and in honour of the company’s overall decline in economic conditions. Given our strengths, the 80-year anniversary; the bonus amounts to 1,500 per full-time well-filled project pipeline and the success of our investments employee and CHF 500 for each trainee. in recent years, we expect HOLINGER GROUP capacity utilisa- tion to be generally stable in 2013 and for earnings to remain As our shareholders you should also profit from the strong per- unchanged. In times of economic turbulence we will continue formance of our company. The Board of Directors will propose to sharpen our competitive edge and generate growth and we an increased dividend of CHF 0.50 per dividend-bearing regis- remain committed to our goal of exceeding CHF 40 million in tered share with par value CHF 0.20, or CHF 5.00 with par value own services in 2015. CHF 2.00, to the Annual General Meeting on 6th June 2013, thereby continuing the attractive dividend policy of recent years. Owing to the growing volume of orders and anticipated deci- This corresponds to a payout of CHF 826,960 (previous year sions on the award of several large-scale tenders, we remain CHF 616,970). With this dividend proposal, equity and share confident about HOLINGER’s medium to long-term prospects value per registered share remain constant and attractive for our and believe we can sustain the growth seen in recent years. employee stock ownership plan. HOLINGER is a forward-looking company and holds a strong position; this is reflected in the results of the last fiscal year. We appreciate your support and hope that you will continue to Thanks to the foresight of our financial policy, we also have a place your trust in us in the future. HOLINGER is a strong, reli- very stable basis for future operations. However, the year 2012 able partner – and we intend to remain so – for our customers also showed us that we did not make the most of every mar- at home and abroad, for our staff, for friends and partners in ket opportunity in every Business Area and location and that the worlds of business, science and society and especially for there is still a need for ongoing improvement and efficiency you, our respected shareholders. increases. HOLINGER has therefore decided to implement a May 2013, Liestal 5-point program for the period 2013 – 2016 involving savings of over CHF 1 million as well as an increase in ROI and operat- Yours sincerely, ing cash flow.