Orior Group Annual Report 2012

ORIOR GROUP ANNUAL REPORT 2012

EXCELLENCE IN FOOD ORIOR GROUP ANNUAL REPORT 2012

ORIOR Group key ﬁgures

in CHF thousand 2012 ' in % 2011 5HYHQXHV +1.0%

(%,7'$ –2.9% as % of revenues 10.4% 10.8%

(%,7 –8.0% as % of revenues 7.2% 7.9%

3UR¿WIRUWKH\HDU –1.1% as % of revenues 5.6% 5.7%

Net debt, third parties 85 559 +17.0% 73 124 Net debt / EBITDA ratio 1.63 1.36 Shareholders’ equity 203 502 +8.8% 186 980 Equity ratio 49.7% 47.3% ROI 11.3% 13.6% Avg. number of employees (FTE) 1 273 +1.3% 1 257 Earnings per share in CHF 4.71 4.76 Dividend per share in CHF 1.95 1.93 Payout ratio 41.4% 40.5% Market capitalisation as per year – end 303 360 287 363

At a glance

– Market position strengthened in all three – Proﬁt for the year of CHF 27.9 million, business segments just below the record high from last year – High rate of innovation is fuelling growth – Another increase in the dividend to – Exports of Bündnerﬂeisch and vegetarian CHF 1.95 per share products continue to sell well – Sound balance sheet with an equity – Slight decline in EBITDA margin from ratio of 49.7 % 10.8 % to 10.4 %

5HYHQXHV (%,7'$DQG 1HWSURILWDQG (%,7'$PDUJLQ HDUQLQJVSHUVKDUH in CHF m in CHF m in % in CHF m in CHF

600 60 60 30 54.2 53.9 52.2 52.3 505.5 500.7 501.5 500 496.6 50 12 50 25 463.3 45.0 400 40 40 20 28.2 300 30 30 27.9 15 26.9

10 24.0 200 20 20 10 12.2 100 10 10 5

0 0 8 0 0 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 HIGHLIGHTS MARCH 2012

ORIOR GROUP AGM OF ORIOR AG

On March 27, 2012 ORIOR AG holds its second AGM as a listed company at the Lake Side Zurich. It is attended by about 350 shareholders and all resolutions put forward by the Board of Directors are passed.

JANUARY 2012 JUNE 2012

FREDAG ORIOR GROUP VEGAN PRODUCTS ADDED TO PORTFOLIO NEW MANAGEMENT TRAINING PROGRAMME

In the spring of 2012 ORIOR Group intro- duces a new management training pro- gram. ORIOR offers tailor-made training and development courses to all members of mid- and upper-level management and There is an unmistakable trend toward ve- key employees. In addition to strengthe- gan products in the vegetarian market. ning professional and social skills, ORIOR Vegan products are derived exclusively has long promoted a “ﬁt at work” pro- from plants and do not contain any egg or gramme. Employee health and well-being dairy products. Fredag leads the market are important and a course is being offe- for vegetarian food and is committed to red to enhance awareness of this issue. anticipating new trends and actively sha- Read more on page 62. ping the market of the future. In January 2012 the ﬁrst vegan product is introduced and work to develop new recipes continu- JUNE 2012 es apace. Another six vegan products de- but on retail shelves during the course of the year, vegetable patties and chipolata RAPELLI SA sausages, for example, and ten more are in the pipeline. Besides vegan products, LATEST PRODUCTION Fredag’s range of tofu products is also PLANT FOR COOKED being steadily expanded. HAM IN SWITZERLAND

JANUARY 2012

ORIOR CONVENIENCE BRUNO DE GENNARO

ASSUMES POSITION In June 2012 Rapelli starts operating OF HEAD OF ORIOR Switzerland’s most modern production CONVENIENCE plant for cooked ham. Existing production machinery installed more than 20 years ago is replaced with ultra modern equipment without any disruption to ongoing production. The refurbished facility pro- Bruno de Gennaro assumes the position of duces ham of consistently high quality that Head of the ORIOR Convenience segment is even tastier than before. Productivity in- as well as of the Fredag competence cen- dicators also improve. tre effective 1 January 2012. Bruno de Gennaro joined Rapelli in 1994 as Head of Sales and Marketing, managed Fredag for JULY 2012 a brief period and then served as Head of Rapelli SA in Stabio for twelve years. ORIOR INTERNATIONAL

MARCH 2012 EDEKA SELECTION BÜNDNERFLEISCH MÖFAG ACQUISITION OF MÖFAG

ORIOR Deutschland begins to supply In March 2012 ORIOR acquires Möfag, a EDEKA with Bündnerfleisch for its premi- leading producer of “Fürstenländer” spe- um private label brand “Selection” in mid- cialities such as Appenzeller Mostbröckli, 2012. This fine quality air-dried beef is ham and smoked meat delicacies. Möfag produced by ORIOR’s Albert Spiess com- is a family-managed company that is firmly petence centre in Davos-Frauenkirch, anchored in eastern Switzerland. The com- where the highest air-drying facility in Eu- pany and its 55 employees are integrated rope is located at 1,200 meters above sea into ORIOR Group as an autonomous unit level. It is stocked in all of EDEKA’s stores under the management of its former ow- in Germany and sold in a sleek pouch ner Urs Mösli. packaged in black and gold cardboard. JULI 2012 NOVEMBER 2012

LE PATRON ORIOR GROUP THE “MOVE 100” WHATEVER IT TAKES VALUE ENHANCEMENT ORIOR launches a group-wide initiative INITIATIVE called “Whatever It Takes” to counter margin pressure and to get employees at all The “Move 100” project is a value en- levels of the organisation involved in hancement initiative launched in July 2012. efforts to improve operating processes It entails numerous measures to improve and procedures. The Management Board the efficiency and effectiveness of the Le has set targets that must be achieved Patron competence centre, for example, “what-ever it takes.” A review is conduc- by increasing cooking and cooling capacity ted on a quarterly basis. When one goal is and converting other space into new pro- achieved, a new one is added to the list. duction capacity. “Move 100” is enhancing food and worker safety and creating a better platform for meeting highly divergent 2012 customer needs in a flexible and efficient manner. ORIOR INTERNATIONAL

SEPTEMBER 2012 “VEGGIE”

ALBERT SPIESS AG SUCCESSFUL ROLL-OUT OF SAP

Albert Spiess AG’s roll-out of SAP is pic- ture-perfect. The new business software is implemented without a hitch and the ﬁrst deliveries using the new system leave the company’s production plants without even SPAR Austria is introducing a wide range a minute’s delay. of private label vegetarian specialities under the name "Veggie.” Two of the three top-selling products in this new line of vegetarian products are made by ORIOR. A SEPTEMBER 2012 well structured launch with television com- mercials and outdoor advertising (Gwy- LE PATRON neth Paltrow: “I’m not a vegetarian but I do like veggie food”), secondary place- ULTRA FRESH MEALS ments in stores and targeted sales promo- tion activities are well received by Austrian consumers.

2012

LE PATRON CELEBRATES ITS 40TH ANNIVERSARY

Ultra fresh meals from Le Patron are It all began with pâtés and they are still ORIOR’s answer to growing consumer one of Le Patron’s lead products, along demand for fresh, all-natural ready-made with terrines. However, its product range meals. Individual meal components are has also grown to include pasta, speciali- matched by colour and taste, cooked ties and prepared dishes. There are many fresh, without preservatives, and then good reasons why Le Patron is considered placed by hand on their serving platters. an innovation driver within the ORIOR After a successful test launch in 65 retail Group. outlets in Switzerland, accompanied by an extensive advertising campaign, the products are launched throughout Switzer- 2012 land in September 2012.

ORIOR GROUP OCTOBER 2012 20 YEAR ANNIVERSARY

ORIOR INVESTOR RELATIONS INVESTOR LUNCH ZURICH ORIOR quietly celebrates its 20th birth- day. In 1992 the then Board of Directors On 24 October 2012 ORIOR organises a decided to fundamentally change the path lunchtime meeting for interested investors. the company was on: Rinsoz & Ormond This is just one of the many successful in- Holding SA, a tobacco company founded vestor relations events organised in 2012. in 1852, was renamed ORIOR Holding SA Besides road shows in Zurich, London, and re-focused entirely on the food busi- Frankfurt and Paris, management presen- ness. Several premium convenience food tations are also held in several cities across companies were subsequently integrated Switzerland.The number of ORIOR share- into ORIOR Group. ORIOR is planning a holders increases sharply during the first high-profile celebration to mark its 25th three quarters of the fiscal year. anniversary. ORIOR – Excellence in Food

ORIOR is an independent Swiss food group with a strong corporate culture that combines tradition with innovation. ORIOR has built a portfolio of extremely well established companies and brands including Rapelli, Ticinella, Spiess, Möfag, Fredag, Pastinella, Le Patron and Lineafresca. ORIOR occupies a leading position in selected niche markets. The Group also produces well-known private label products for its customers. ORIOR’s aim is to create genuine value and to embody the highest levels of credibility in the eyes of its customers, suppliers and employees. Close partnerships with customers and suppliers create conditions in which ORIOR can identify new requirements at an early stage and respond to these with innovative products. Modesty and a desire to exceed the expectations of all our stakeholders are an integral part of ORIOR’s culture. Close customer relationships, innovative skills and a strong corporate culture form the pillars on which ORIOR’s success is based. This is what we aim to deliver: Excellence in Food.

Content

ORIOR at a glance

Letter to shareholders 2

Interview 6

ORIOR Reﬁnement 10

ORIOR Convenience 16

ORIOR Corporate, Export and Logistics 22

Corporate Governance Report 28

Corporate Responsibility 56

Commentary on ﬁnancial report 68

Consolidated ﬁnancial statements ORIOR Group 70

Financial statements ORIOR AG 137

Share information 147

1 ORIOR GROUP ANNUAL REPORT 2012 Letter to shareholders

Letter to shareholders

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2 ORIOR GROUP ANNUAL REPORT 2012 Letter to shareholders

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Rolf U. Sutter Remo Hansen Chairman of the Board of Directors CEO

3 Vegan veggie burger

Nobody knows quite how long meat patties together nicely later on – potato flour, then have been around, but we do know they were seasoned with salt and vegetable stock. The served in the German-speaking world as early mix is left to settle briefly, then pressed into as the 17th century – and took off in a big way the patty moulds by machine. The round vege- with the invention of the hamburger. Inspired table patties line up in rows on a conveyor belt by the ground beef patty, Fredag’s creative and pass through a deep fat fryer for 60 seconds developers have now come up with healthy to give them a golden brown colour. Deep fat juicy veggie burgers. Preparation methods and frying is followed by baking for several minutes ingredients are vegan so no meat, milk or eggs at approximately 200 degrees Celsius in a hot are used. Instead, the product is packed full of air oven to a minimum core temperature of Swiss vegetables like carrots, peas and onions. 72°C. After shock cooling, the ready-made deli- These ingredients are stirred up in a large pot cacies are finally packaged for sale. with wheat flour and – so that everything sticks

ORIOR GROUP ANNUAL REPORT 2012 Interview

Despite headwinds, ORIOR made good progress in 2012

Remo Hansen, how would you sum up ORIOR Is the exchange rate to the euro still a problem Group’s 2012 ﬁscal year? or have you adapted to the new reality? 25,25 *URXS SHUIRUPHG ZHOO LQ D GHPDQGLQJ 7KHUDQJHRI&+)±VHHPVWREHVHWLQ HQYLURQPHQW6HYHUDORIRXUSURGXFWPDUNHWVLQ VWRQH QRZ DQG 25,25 FDQ FRSH ZLWK WKLV 6ZLW]HUODQGFRQWUDFWHGLQFOXGLQJWKHIUHVKSDVWD VLWXDWLRQ:RXOGZHUDWKHUKDYHDKLJKHUH[FKDQJH PDUNHWDQGWKHSkWpDQGWHUULQHPDUNHW([SRUWV UDWH"2IFRXUVHEXWDWOHDVWQRZZHFDQUHO\PRUH ZHUHRQFHDJDLQDEULJKWVSRWVRZHFRQWLQXHGWR RQRXURZQSODQVDQGSURMHFWLRQV$QG±DFUXFLDO VWUHQJWKHQRXUSRVLWLRQLQIRUHLJQPDUNHWV2XU IDFWRU±ZHDUHVWLOOHDUQLQJPRQH\LQRXUH[SRUW VKDUHRIWKH%QGQHUÀHLVFKH[SRUWPDUNHWLVQRZ EXVLQHVV DSSUR[LPDWHO\7RVXPPDULVH,ZRXOGVD\ GHVSLWHKHDGZLQGV25,25PDGHJRRGSURJUHVV What were the highlights of the past ﬁscal year? LQ 7KHUHDUHWKUHHWKDW,ZRXOGHPSKDVLVH)LUVWWKH LQWHJUDWLRQ RI 0|IDJ ZKLFK ZHQW YHU\ VPRRWKO\ IURPDQRUJDQLVDWLRQDODQGSHRSOHVWDQGSRLQW,ZDV WUXO\ LPSUHVVHG E\ KRZ 8UV 0|VOL DQG KLV WHDP IRXQG WKHLU SODFH ZLWKLQ WKH 25,25 RUJDQLVDWLRQ 6HFRQGZHVXFFHVVIXOO\¿OOHGVHYHUDOH[HFXWLYHOHYHO YDFDQFLHVGXULQJWKHSDVW\HDU$W5DSHOOLDQG$OEHUW 6SLHVVLQWKH5H¿QHPHQWVHJPHQWDQGDW)UHGDJ DQG 3DVWLQHOOD LQ WKH &RQYHQLHQFH VHJPHQW $W $OEHUW6SLHVVWKHSDWURQZKROHGWKHFRPSDQ\IRU \HDUVZDVVXFFHHGHGE\DQHZRXWVLGHPDQDJHU $OORWKHUYDFDQFLHVZHUH¿OOHGIURPRXURZQUDQNV 7KHVH VXFFHVVLRQV ZHQW YHU\ VPRRWKO\ DQG , FRPPHQGDOOHPSOR\HHVIRUPDNLQJWKDWKDSSHQ

And the third highlight? 7KHVXFFHVVRIRXUYHJHWDULDQSURGXFWV25,25 KDVHVWDEOLVKHGDQH[FHOOHQWSRVLWLRQLQ6ZLW]HU ODQG DQG LV D WUHQGVHWWHU IRU D QHZ QXWULWLRQDO SKLORVRSK\(YHQLQRXUH[SRUWEXVLQHVVYHJHWDU LDQ SURGXFWV KDYH EHFRPH WKH VHFRQG ODUJHVW VDOHVGULYHUDIWHU%QGQHUÀHLVFK6DOHVRI³1DWXUH *RXUPHW´ EUDQGHG SURGXFWV ZHQW XS E\ DERXW "Product innovation LQ remains our engine of growth." Product innovation is an essential part of ORIOR’s growth strategy. What new products were launched in 2012? $KRVWRIQHZSURGXFWV/HWPHVWDUWZLWKRXUOLQH You mentioned a demanding market environ- RI YHJDQ SURGXFWV :KHUHYHU SRVVLEOH 25,25 ment. What challenges were there last year? WXUQHGLWVYHJHWDULDQUHFLSHVLQWRYHJDQUHFLSHV &RPSHWLWLRQLQWKHUHWDLOWUDGHKDVEHHQLQWHQVH ZKLFKPHDQVWDNLQJRXWDOOGDLU\DQGHJJLQJUHGL DQG LW ZDV KHLJKWHQHG E\ DOO WKH FURVVERUGHU HQWV7KDWZDVTXLWHDFKDOOHQJHEHFDXVHZHGLG VKRSSLQJ VR SULFLQJ SUHVVXUH KDV UHPDLQHG QRW ZDQW WR FRPSURPLVH RQ ÀDYRXU LQ DQ\ ZD\ TXLWHKLJKHVSHFLDOO\GXULQJWKH¿UVWKDOIRIWKH 7KHUHVXOWVDUHWDVW\DQGRXUYHJDQSURGXFWVDUH \HDU7KDWZDVDFKDOOHQJHIRUDTXDOLW\RULHQWHG VHOOLQJTXLWHZHOO7XUQLQJWRRXUPHDWSURGXFWV FRPSDQ\OLNH25,25EHFDXVHZHFDQRQO\RIIVHW 25,25LVWKHRQO\FRPSDQ\WKDWLVFDSDEOHRI VRPHRIWKHSULFLQJSUHVVXUHWKURXJKSURGXFWLY VWRFNLQJ UHWDLO VKHOYHV ZLWK IUHVK VWHDN WDUWDU LW\JDLQVDQGFRVWVDYLQJV 7KLVSURGXFWFDQEHNHSWRQO\DIHZGD\VVRWKH

6 ORIOR GROUP ANNUAL REPORT 2012 Interview

ORJLVWLFVLQYROYHGDUHUDWKHULQWULFDWH$QRWKHUELJ ORIOR took another step on the expansion VXFFHVVFDPHIURP/H3DWURQZKLFKODXQFKHGD front with the acquisition of Möfag. What OLQHRIXOWUDIUHVKPHDOV7KHVHIUHVKZKROHVRPH expectations are pinned to this acquisition? PHDOVREYLRXVO\VDWLVI\DVWURQJFRQVXPHUQHHG 0|IDJ QRW RQO\ JLYHV WKH 25,25 *URXS QHZ $QGODVWEXWQRWOHDVWWKHUHLVRXUKDPSURGXFW SURGXFWV LW DOVR EURDGHQV LWV NQRZKRZ )RU EDNHG LQ EUHDG GRXJK 7KH KDP FRPHV IURP H[DPSOH0|IDJOHDGVWKHPDUNHWZKHQLWFRPHV 0|IDJ DQG LV SURFHVVHG E\ /H 3DWURQ ,W ZDV WRSURGXFLQJYHU\VPDOOTXDQWLWLHVLQDQHI¿FLHQW RIIHUHGGXULQJ$GYHQWDQGZDVTXLFNO\VROGRXW ZD\ 8OWUDVPDOO SURGXFWLRQ TXDQWLWLHV DUH QRW LQWHUHVWLQJIRUWKHELJSOD\HUVZKLFKPDNHVWKLV When prices are under pressure, productivity VHJPHQW DOO WKH PRUH LQWHUHVWLQJ WR XV 0|IDJ becomes more important. What has ORIOR DOVR KDV JRRG EXVLQHVV UHODWLRQVKLSV ZLWK GLV done to improve productivity? FRXQWHUVZKLFKVWUHQJWKHQVWKLVFKDQQHOIRUWKH $PDMRUSURMHFWZDVWKHPRGHUQLVDWLRQRI5DSHOOL¶V HQWLUH25,25*URXS SURGXFWLRQ SODQW IRU FRRNHG KDP 7KDW FUHDWHG SUHFLVHO\ WKH SURGXFWLYLW\ JDLQV DQG TXDOLW\ What can you say about ORIOR shareholders? LPSURYHPHQWV ZH ZHUH VHHNLQJ 7KH VHFRQG 25,25$*KDGDERXWPRUHVKDUHKROGHUVDW PDMRU SURMHFW LQVWDOOLQJ D IXOO\ DXWRPDWHG SkWp WKHHQGRIWKDQWKH\HDUEHIRUH7KDWLVD SURGXFWLRQ OLQH DW /H 3DWURQ DOVR UHVXOWHG LQ VLJQRIWUXVWDQGZHDSSUHFLDWHWKLVUHFRJQLWLRQ D WUHPHQGRXV LPSURYHPHQW LQ SURGXFWLYLW\ RI WKH ZRUN ZH GR &DSYLV RXU ORQJVWDQGLQJ 7XUQLQJWRPDQDJHPHQWWRROVWKHLQWURGXFWLRQRI PDMRULW\ VKDUHKROGHU KDV UHGXFHG LWV LQYHVW 6$3DW6SLHVVGHVHUYHVVSHFLDOPHQWLRQ:HDOVR PHQWWRXQGHUZKLFKLVW\SLFDOIRUDSULYDWH RSWLPLVHGRXUSURGXFWLRQIRRWSULQWE\FHQWUDOLV HTXLW\¿UP7KH&DSYLVVWDNHZDVVROGWRZHOO LQJ WKH SUHYLRXVO\ PHDW VDOWLQJ SODQWV 6SLHVV NQRZQ ORQJWHUP LQYHVWRUV WKH (UQVW *|KQHU RSHUDWHGDWMXVWDWRQHORFDWLRQLQ6FKLHUV )RXQGDWLRQDQGLQYHVWRUVDQGIXQGVDVVRFLDWHG ZLWK$0*$QDO\VHQXQG$QODJHQ$*7KHQHZ VKDUHKROGHUVZHUHZHOOUHFHLYHGE\WKH¿QDQFLDO PDUNHW

Let’s take a look at the future. What are the key market trends that you have identiﬁed? )UHVKQHVV LV FHUWDLQO\ D PDMRU WUHQG 7RGD\ VWRUHVDUHRSHQGD\VD\HDU(YHU\WKLQJFDQ EHERXJKWIUHVK4XLFNORWVRIYDULHW\DQGZHOO EDODQFHG±WKDW¶VZKDWFRQVXPHUVDUHGHPDQGLQJ QRZDGD\V2XUXOWUDIUHVKPHDOVDUHSHUIHFWIRU WKLVWUHQG2QWKHRWKHUKDQGZHDUH¿QGLQJWKDW WUDGLWLRQDOIRRGLV³LQ´DJDLQ2XUKDPEDNHGLQ EUHDGGRXJKLVDJRRGH[DPSOHRIWKLV$QGRI FRXUVHFRQYHQLHQFHLVVWLOODELJWUHQG:KHQHYHU SHRSOHZDQWWRHDWDTXLFNPHDODWOXQFKWLPHRU ODWHDWQLJKWWKDWLVERWKJRRGDQGZDUP25,25 ZDQWVWRKDYHFRQYHQLHQWDQGWDVW\VROXWLRQVRQ KDQG

What are ORIOR Group’s priorities for ﬁscal 2013? :H ZDQW WR JURZ RXU WRS OLQH LQ 2XU "I was impressed by PHGLXPWHUPWDUJHWLVRUJDQLFJURZWKRIWR how smoothly Möfag was SHUFHQW :H ZDQW WR ODXQFK LQQRYDWLYH WUHQG VHWWLQJSURGXFWVWKDWRIIHUDGGHGYDOXH$QGZH integrated into ORIOR." ZLOODOVRFRQWLQXHWRLQYHVWLQRXUIDFWRULHVDQG RXURSHUDWLQJSURFHVVHVWRDFKLHYHIXUWKHUSUR GXFWLYLW\ JDLQV $OO LQ DOO ZH ZDQW WR PDLQWDLQ 25,25¶VUHSXWDWLRQDVRQHRI6ZLW]HUODQG¶VWRS SURYLGHUVRITXDOLW\IRRGSURGXFWV

7 Salame dei Castelli

A mouth-watering delicacy matures to perfec- medieval construction and a UNESCO World tion in a secret old vaulted stone cellar of the Heritage Site. Together with the Castelgrande Castello di Montebello in Bellinzona: Ticinella’s and the Castello di Sasso Corbaro, it gives the “Salame dei Castelli di Bellinzona” is a coarse- Ticino city of Bellinzona its distinctly historical textured salami based on recipes that have ﬂair. In this special climate and in the cool air of been passed down through the centuries by the castle cellar, which was already used for expert sausage makers. It is sliced diagonally as storing victuals during the Middle Ages, the in years gone by and its unique taste can be Salame dei Castelli di Bellinzona matures into traced to the slow and careful curing process in one of the special treats of Ticinella’s ﬁne range the stone cellar beneath the Castello di Monte- of delicatessen meats. bello. This striking castle is a masterpiece of San Pietro cured ham

The origin of raw, cured ham goes back to today. Rapelli’s famous San Pietro dry-cured Hannibal’s invasion of Roman Italy. When the ham certainly up-holds the long and honourable Carthaginian general arrived in the Parma tradition of this savoury specialty. It has received region of Italy, he was greeted as a liberator by numerous awards from prestigious international the locals, who gave him hams preserved institutions. San Pietro is made from selected covered in salt and aged in wooden casks as a Swiss pork legs, carefully cleaned and massaged gift. This first historical mention in 217 BC and then rubbed with pure sea salt. Twelve to marked the beginning of the long history of eighteen months of curing give San Pietro ham raw, cured ham which is still being written to its unique and delicious flavour. A distinguished this very day. Dry-cured ham is rightfully consi- descendent of a legendary tradition that tanta- dered one of the finest deli meats available lises food lovers to this very day. ORIOR GROUP ANNUAL REPORT 2012 ORIOR Refinement

ORIOR Reﬁnement

ORIOR Refinement is the Group’s meat refining segment and consists of the three competence centres Rapelli, Spiess and Möfag. ORIOR Refinement produces traditional premium products such as Bündnerfleisch, cured and cooked ham, salami and Mostbröckli, which are sold in the food retailing, restaurant and food service sectors. The segment operates five processing and seven refining facilities in the cantons of Grisons, Ticino and St. Gallen.

Brands

Key figures

in CHF thousand 2012 ' in % 2011 External customer sales 290 806 283 193 Inter – segment sales 24 405 23 101 Sales of goods / rendering of services 315 211 306 294 Reduction in gross sales –4 907 –4 024 5HYHQXHV +2.7%

6HJPHQW(%,7'$ –0.7% as % of revenues 9.1% 9.4%

Depreciation – tangible assets –6 191 –5 408 Amortisation – intangible assets –2 785 –2 296 6HJPHQWSUR¿W (%,7 –7.1% as % of revenues 6.2% 6.9% ,QYHVWPHQWVLQ QRQ±FXUUHQWDVVHWV

10 ORIOR GROUP ANNUAL REPORT 2012 ORIOR Reﬁnement

Overview KLJKHVWSODQWIRUGU\LQJPHDWORFDWHGLQ'DYRV )UDXHQNLUFK %QGQHUÀHLVFK DQG UDZ KDP DUH $OOWKUHHFHQWUHVRIFRPSHWHQFHRSHUDWLQJZLWKLQ GULHGWKHUHZLWKXWPRVWFDUHDQGSDWLHQFHLQWKH WKH 5H¿QHPHQW EXVLQHVV VHJPHQW ± 5DSHOOL FOHDU FULVS PRXQWDLQ DLU 6SLHVV SURFHVVHV $OEHUW 6SLHVV DQG 0|IDJ ± KDYH VWURQJ 6ZLVV VHYHUDOWKRXVDQGWRQQHVRIPHDWD\HDUPRVWRI URRWV7KDWLVTXLWHHYLGHQWLQWKHSURGXFWVWKH\ ZKLFKZDVUDLVHGRQ6ZLVVIDUPV,WVVXSSOLHUVLQ PDNHDQGWKHWUDGLWLRQDOUHFLSHVWKH\XVH0RUH 6ZLW]HUODQGPXVWPHHWVWULQJHQWUHTXLUHPHQWV WKDQ WKUHHTXDUWHUV RI WKH UDZ PDWHULDOV WKH\ UDQJLQJIURP%,2FHUWL¿FDWLRQWRDWPLQLPXP SURFHVV RULJLQDWH IURP 6ZLW]HUODQG 25,25 FRPSOLDQFH ZLWK ³6XLVVH *DUDQWLH´ VWDQGDUGV 5H¿QHPHQWDWWDFKHVJUHDWLPSRUWDQFHWRSHUIHFW 7KH UDZ PDWHULDOV XVHG E\ 6SLHVV DUH TXDOLW\ ZKHQ VRXUFLQJ UDZ PDWHULDOV DQG LW WUDFHDEOHVRWKHFRPSDQ\FDQUHDGLO\HQIRUFHLWV HQVXUHVWKDWLWVKLJKVWDQGDUGVDUHDGKHUHGWRE\ KLJK VWDQGDUGV ZLWK UHJDUG WR TXDOLW\ DQG VXV VHWWLQJ SUHFLVH SURGXFW VSHFL¿FDWLRQV DQG FRQ WDLQDELOLW\ GXFWLQJLQVSHFWLRQVRQDQRQJRLQJEDVLV 0|IDJWKHWKLUGFRPSHWHQFHFHQWUHLVORFDWHGLQ 7KH 5DSHOOL FRPSHWHQFH FHQWUH LV RQH RI WKH =X]ZLO LQ WKH FDQWRQ RI 6W *DOOHQ 8QGHU LWV ODUJHVWHPSOR\HUVLQWKHFDQWRQRI7LFLQR25,25 )UVWHQOlQGHU6SHFLDOLWLHVODEHO0|IDJSURGXFHV 5H¿QHPHQWKDVXQGHUVFRUHGLWVFRPPLWPHQWWR DKRVWRIKLJKO\WUDGLWLRQDOPHDWVSHFLDOLWLHVVXFK 6ZLW]HUODQGDVLWVEDVHRIRSHUDWLRQVE\LQYHVWLQJ DV $SSHQ]HOOHU 0RVWEU|FNOL D ZLGH YDULHW\ RI KHDYLO\LQ5DSHOOL¶VSURGXFWLRQSODQWLQWKHFLW\ KDPSURGXFWVDVZHOODVPDQ\RWKHUSRUNODPE RI6WDELRIRUVHYHUDO\HDUV DQG SRXOWU\ GHOLFDFLHV $ VPDOO DQG QLPEOH FRPSDQ\ 0|IDJ RSHUDWHV YHU\ HI¿FLHQWO\ DQG $OOSURFHVVLQJDFWLYLWLHVDUHEDVHGLQ6ZLW]HUODQG ÀH[LEO\ WR HQVXUH DXWKHQWLFLW\ )RU SUHPLXP PHDW SURGXFHUV WKHUH LV QR EHWWHU SODFH WR RSHUDWH Business performance 6SLHVV IRU H[DPSOH LV WKH RZQHU RI (XURSH¶V 25,25 5H¿QHPHQW HDUQHG UHYHQXHV RI &+) PLOOLRQ LQ ¿VFDO 7KLV LQFUHDVH RI LVDWWULEXWDEOHWRWKHDFTXLVLWLRQRI0|IDJ GLAUCO MARTINETTI CEO RAPELLI SA ([FOXGLQJ DFTXLVLWLRQV UHYHQXHV GHFOLQHG E\ IURP WKH SUHYLRXV \HDU 7KH GHFOLQH LQ UHYHQXHV LV ODUJHO\ DWWULEXWDEOH WR QHJDWLYH LQ ÀDWLRQGXULQJWKH¿UVWKDOIRIDVUHWDLOHUV ORZHUHGWKHLUSULFHV

2SHUDWLQJ SUR¿W (%,7'$ IRU DPRXQWHG WR &+) PLOOLRQ YLUWXDOO\ XQFKDQJHG IURP WKHSUHYLRXV\HDU7KH(%,7'$PDUJLQVWRRGDW TRUST IS BASED VOLJKWO\ OHVV WKDQ WKH PDUJLQ IURP ON CONSISTENT VALUES. 7KHJURVVSUR¿WPDUJLQLQFUHDVHGVOLJKWO\ AUTHENTICITY IS ONE. EXWWKH(%,7'$PDUJLQZDVVOLJKWO\ORZHUGXHWR Creating genuine value is both an aspiration and an KLJKHU HQHUJ\ PDLQWHQDQFH DQG PDUNHWLQJ H[ underlying principle expressed in authenticity and SHQVHV consistency in what you do. That’s why high quality ingredients, no artificial flavourings, and transparent labelling are non-negotiable for Rapelli. Our other %XVLQHVVDWWKHWKUHHFRPSHWHQFHFHQWUHVZLWKLQ assets include a special appreciation of traditional WKH 5H¿QHPHQW VHJPHQW YDULHG GXULQJ WKH recipes, sustainable handling of resources, and a well-developed sense of identification with the com- FRXUVHRI5DSHOOLUHSRUWHGEULVNVDOHVDQG pany and our products among the entire workforce. ZDV DEOH WR DFKLHYH VLJQL¿FDQW RSHUDWLQJ HI¿ FLHQF\ JDLQV DIWHU LQVWDOOLQJ D QHZ SURGXFWLRQ

11 ORIOR GROUP ANNUAL REPORT 2012 ORIOR Reﬁnement

OLQH IRU FRRNHG KDP 5HVWDXUDQW FKDQQHO VDOHV ZHUH OLNHZLVH ORZHU WKDQ LQ WKH SUHYLRXV \HDU URS MÖSLI EHFDXVHRIZHDNHUWRXULVPLQ*ULVRQVDQG7LFLQR CEO MÖFAG FLEISCHWAREN AG WZR LPSRUWDQW UHJLRQV IRU 5DSHOOL DQG 6SLHVV 0|IDJ UHSRUWHG YHU\ VWURQJ EXVLQHVV GXULQJ WKH SHULRG XQGHU UHYLHZ 5H¿QHPHQW¶V QHZ FRPSH WHQFH FHQWUH LV ZHOO SRVLWLRQHG ZLWK GLVFRXQWHUV ZKLFKUHSUHVHQWVDYDOXDEOHH[WHQVLRQRI25,25 *URXS¶VH[LVWLQJFXVWRPHUEDVHDQGVXSSRUWVLWV VWUDWHJLF JRDO RI H[SDQGLQJ LWV EXVLQHVV LQ WKLV FXVWRPHUFDWHJRU\ BEING DOWN TO EARTH MEANS KEEPING TRUE TO Highlights YOURSELF IN WHATEVER ROLE YOU HAVE TO 7KH 5DSHOOL FRPSHWHQFH FHQWUH FRQWLQXHG WR PERFORM. LQYHVW LQ SURFHVV LPSURYHPHQW SURMHFWV GXULQJ The variety of tasks I have to perform involves WKH¿QDQFLDO\HDU5DSHOOL¶VQHZSURGXFWLRQ changing roles constantly. For that to work, you OLQHIRUFRRNHGKDPZKLFKFDPHRQVWUHDPLQ need an open-minded and down-to-earth attitude. WKH¿UVWKDOIRIDOUHDG\UHVXOWHGLQKLJKHU I like to be on the level with my team. As well as very amicable relations, there is always room for SURGXFWLYLW\ GXULQJ WKH VXEVHTXHQW KDOI\HDU constructive criticism and debate. Both these 7KLV QHZ SURGXFWLRQ OLQH DFFRPPRGDWHV KDPV things help to drive progress. ORIOR has the same culture of open communications and unpreten- WKDWDUHWZLFHDVORQJDQGUHGXFHVWKHDPRXQWRI tiousness. Coupled with the knowledge that Möfag WULPPLQJ UHTXLUHG E\ KDOI 3URGXFW TXDOLW\ LV was to remain in Swiss hands, these were the main HYHQEHWWHUWKDQEHIRUHWRR7KLVFRQYHUVLRQZDV criteria for the sale of the company to ORIOR. PDGHZLWKRXWDQ\LQWHUUXSWLRQLQFXVWRPHUGHOLY HULHV$VWHDNWDUWDUHSURGXFWODXQFKHGXQGHUWKH ³5DSHOOL´ EUDQG LQ VHOHFWHG UHWDLO RXWOHWV GXULQJ WKH ¿UVW KDOI RI VROG YHU\ ZHOO 7KH VWHDN WDUWDUHLVPDGHE\5DSHOOLLQ6WDELRDQGGLVWULE BRUNO BÜRKI CEO ALBERT SPIESS AG XWHGWKURXJKRXW6ZLW]HUODQG7KLVIUHVKSURGXFW FDQ EH NHSW RQO\ D IHZ GD\V VR WKH ORJLVWLFV LQYROYHG DUH UDWKHU LQWULFDWH 5DSHOOL LV WKH RQO\ FRPSDQ\LQ6ZLW]HUODQGFDSDEOHRIPHHWLQJWKLV FKDOOHQJH

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12 ORIOR GROUP ANNUAL REPORT 2012 ORIOR Reﬁnement

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13 Raviolone with mozzarella fior di latte

Ravioli is an age-old food specialty that is appre- and loving attention to detail. Only the choicest ciated in many countries. What’s called ravioli in ingredients find their way into the ravioli kit- Italy and Switzerland is known as wonton in chens, because consistently high quality is our China, momo in Tibet and pelmeni in Russia. pledge to cus tomers. In a parallel process, a The filled dumpling tradition lives on at the large mixer kneads pasta dough out of wheat, Pastinella competence centre, boosted by crea- eggs and salt. Beetroot juice or herbs may be tivity and innovation through the continuous added to the dough for colour. Finally, the invention of new fillings and dough recipes. A dough is rolled out in two sections on large rol- large part of ravioli making at Pastinella is still lers with the filling in the middle. The edges are done by hand. Onions are fried, spices mixed pressed together and the dough is cut into tri- and meat, cheese and Swiss-grown vegetables angles, squares or circles depending on the are added, depending on the type. Sometimes type of ravioli. Then each ravioli piece travels the filling is enhanced with a dash of red wine. on a conveyor belt through a tunnel steamer, Special ingredients such as mozzarella fior di where they are carefully cooked. Following latte from Ticino or rose petals may be added. cooling and (depending on the cooking method) Be it the onions or the finished filling, every- pasteurisation, the ravioli are ready to sell and thing is selected and prepared with great care enjoy.

ORIOR GROUP ANNUAL REPORT 2012 ORIOR Convenience

ORIOR Convenience

ORIOR Convenience and its competence centres Fredag, Pastinella and Le Patron are focused on fresh convenience products such as ready-made dishes, pâtés and terrines, fresh pasta, vegetarian products and ready-to-cook poultry and meat products as well as seafood. The segment sells these products primarily through the food retail, restaurant and food service channels, and it operates four processing plants in German-speaking Switzerland.

Brands

Key ﬁgures

in CHF thousand 2012 ' in % 2011 External customer sales 191 056 190 625 Inter – segment sales 3 392 2 277 Sales of goods / rendering of services 194 448 192 902 Reduction in gross sales –3 835 –3 134 5HYHQXHV +0.4%

6HJPHQW(%,7'$ –4.0% as % of revenues 14.6% 15.3%

Depreciation – tangible assets –5 128 –4 931 Amortisation – intangible assets –79 –82 6HJPHQWSUR¿W (%,7 –5.7% as % of revenues 11.8% 12.6% ,QYHVWPHQWVLQ QRQ±FXUUHQWDVVHWV

16 ORIOR GROUP ANNUAL REPORT 2012 ORIOR Convenience

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17 ORIOR GROUP ANNUAL REPORT 2012 ORIOR Convenience

/H 3DWURQ LV LQFUHDVLQJO\ XVLQJ WKH VRXV YLGH URS AEBI FRRNLQJWHFKQLTXHWRSURGXFHLWVPHDOVDQGPHDO CEO LE PATRON FRPSRQHQWV 6RXV YLGH ³XQGHU YDFXXP´ LV D WHFKQLTXHZKHUHWKHUDZLQJUHGLHQWVDUHSXWLQD YDFXXPVHDOHG SODVWLF SRXFK RU FRQWDLQHU DQG WKHQVORZFRRNHGDWDORZWHPSHUDWXUH7KDQNV WRWKHDLUWLJKWVHDOYLWDPLQVDQGPLQHUDOVDUH UHWDLQHGDQGQDWXUDOÀDYRXUVDUHPRUHLQWHQVH 0RUHRYHU WKLV PHWKRG LV FRPSOHWHO\ K\JLHQLF 6RXV YLGH FRRNLQJ LV DOUHDG\ WKH VWDQGDUG INNOVATION MEANS WHFKQLTXH XVHG E\ /H 3DWURQ IRU VFKRRO OXQFK SURPRISING THE MARKET PHDOVHUYLFHVUHVWDXUDQWVDQGHYHQWV$QLQ TIME AND AGAIN. FUHDVLQJ QXPEHU RI SURGXFWV IRU WKH UHWDLO FKDQQHO KDYH DOVR EHHQ SUHSDUHG XVLQJ WKLV Tracking market trends, always one step ahead of the competition – that is our mission at Le Patron. Knowing PHWKRGVLQFH I can rely on creativity at all levels of the company is both demanding and inspiring and always leads to per- /H3DWURQ¶VDPELWLRXV0RYHSURMHFW fect results. Innovation is the heart of our corporate culture, for only through innovation can we surprise the PDUNHGWKHEHJLQQLQJRIDQLQLWLDWLYHWRXSJUDGH market with new products time and again. Le Patron’s LWVLQIUDVWUXFWXUH,WFRPSULVHVWKHH[SDQVLRQRI innovations are soon imitated by rivals – which we con- sider a compliment, for only the good things are LWV SURGXFWLRQ DQG FRROLQJ FDSDFLW\ DQG WKH copied in our business. HQODUJHPHQW RI IRUZDUGLQJ IDFLOLWLHV DQG WKH FRQWDLQHUFOHDQLQJDUHD$VHFRQGUDPSKDVDOVR EHHQ EXLOW ZKLFK KDV DSSUHFLDEO\ VKRUWHQHG Highlights JRRGVUHFHLSWVWLPHVDQGLPSURYHGWKHHIIHFWLYH QHVVRIRUGHUSLFNLQJ7KHSURMHFWLVVFKHGXOHG 7KH&RQYHQLHQFHVHJPHQWUHSRUWHGDERYHDYHU IRUFRPSOHWLRQE\WKHHQGRI0D\ DJH VDOHV LQ VHYHUDO FDWHJRULHV GXULQJ WKH ¿QDQFLDO\HDUDOORZLQJLWWRRXWJURZWKHRYHUDOO PDUNHW HVSHFLDOO\ LQ WKH SRXOWU\ VHDIRRG DQG MICHEL NICK YHJHWDULDQFRQYHQLHQFHIRRGFDWHJRULHV CEO PASTINELLA

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18 ORIOR GROUP ANNUAL REPORT 2012 ORIOR Convenience

Outlook

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Bündnerfleisch coated in Alpine herbs

A coating of herbs – parsley, thyme, sage and are turned twice to ensure that the salt and oregano – gives this particular Bündnerfleisch herbs are uniformly distributed. Afterwards the its unique flavour. This Grisons specialty is pro- cut beef is hung to dry for 15 weeks in the crisp duced according to a time-tested recipe in the mountain air. After being washed and dried Canton Grisons, in the Alpine climate of Chur- again the Bündnerfleisch is coated with the walden 1,230 meters above sea level and sold Grisons-grown Alpine herbs. These herbs are with the special label “Bündnerfleisch PGI (Pro- cultivated in Val Poschiavo on sun-soaked terra- tected Geographical Indication)”. The rectan- ced fields flanking the valley and in fields along gular cut of beef from the shank of Swiss live- the valley floor, using certified organic farming stock is rubbed with a mix of salt and herbs and practices. Herbs grow more slowly in this then stored for three to four weeks in large South ern Alpine climate than in the low lands, containers. During this time the pieces of meat which makes them particularly fragrant. ORIOR GROUP ANNUAL REPORT 2012 ORIOR Corporate, Export and Logistics

ORIOR Corporate, Export and Logistics

ORIOR Corporate, Export and Logistics is responsible for the small-scale distribution of fresh and chilled products throughout Switzerland as well as the export and marketing of the Group’s products under their respective brands, primarily in neighbouring countries belonging to the European Union. The segment operates several distribution centres in Switzerland and one in Haguenau, France. Corporate management functions are also centralised in this segment.

Brands

Key figures

in CHF thousand 2012 ' in % 2011 External customer sales 28 725 30 088 Inter – segment sales 7 721 8 006 Sales of goods / rendering of services 36 446 38 094 Reduction in gross sales –352 –122 5HYHQXHV –4.9%

6HJPHQW(%,7'$ ± –6.6% ±

Depreciation – tangible assets –1 340 –1 147 Amortisation – intangible assets –727 –793 6HJPHQWSURILW (%,7 ± –6.6% ±

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22 ORIOR GROUP ANNUAL REPORT 2012 ORIOR Corporate, Export and Logistics

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23 ORIOR GROUP ANNUAL REPORT 2012 ORIOR Corporate, Export and Logistics

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24 ORIOR GROUP ANNUAL REPORT 2012 ORIOR Corporate, Export and Logistics

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Buure Hamme

Buure Hamme is a truly tasty back-to-the-roots take on their golden hue and typical smoky ﬂa- traditional product from Möfag. Production vour. The next step is the cooking process, begins by rubbing a mixture of salt and herbs which involves gentle steaming for eight hours into the entire legs of ham, consisting of noth- in a huge oven, followed by a refreshing shower ing but the best of Swiss pork. To bring out the and a cooling process that lowers the meat’s full ﬂavour, the hams are stored for ten days in temperature to two degrees. After a stringent a salt environment. This air-drying process also quality control process, the approximately helps to tenderise the meat. After the curing seven kilogram beauties are wrapped in gold period, the hams are packed carefully in nets mesh and released for sale. and rolled into the smokehouse where they ORIOR GROUP ANNUAL REPORT 2012 Corporate Governance

Corporate Governance Report

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Group structure as at 31 December 2012

Board of Directors 6 members, Chairman: Rolf U. Sutterr

Management Board 5 members, CEO: Remo Hansen, CFO: Hélène Weber-Dubi

ORIOR Reﬁnement ORIOR Convenience ORIOR Corporate, Head Reﬁnement segment: Head Convenience segment: Export and Logistics Remo Hansen* Bruno de Gennaro* Head International , Head Rapelli: Glauco Martinetti Head Fredag: Bruno de Gennaro* New Business and Logistics: Head Spiess: Bruno Bürki Head Pastinella: Michel Nick Stefan H. Jost* Head Möfag: Urs Mösli Head Le Patron: Urs Aebi*

* Member of the Management Board

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Major shareholders $FFRUGLQJWRWKHHQWULHVLQWKH&RPSDQ\¶VVKDUHUHJLVWHUDVRI'HFHPEHUDQG WKH QRWL¿FDWLRQV UHFHLYHG WKH IROORZLQJ VKDUHKROGHUV HDFK RZQ PRUH WKDQ RI 25,25$*¶VVKDUHFDSLWDO

No. of Shareholder shares % Source Ernst Göhner Stiftung (CH) 620 000 10.46 Notification 05.10.2012 The Capital Group Companies, Inc. (USA) 385 000 6.50 Notification 24.02.2012 UBS Fund Management (Switzerland) AG (CH) 368 121 6.21 Notification 28.02.2012 Rolf U. Sutter (CH) 199 300 3.36 Notification 12.10.2012 Schroder Investment Management 196 712 3.32 Notification 23.12.2010 (North America) Limited (GB) Schroder Investment Management 182 556 3.08 Notification 20.12.2012 (Switzerland) AG (CH) Vanguard International Explorer Fund (USA) 179 304 3.03 Notification 11.05.2010 Balfidor Fondsleitung AG (CH) 177 823 3.00 Notification 20.06.2012

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Publication date Shareholder Reason for announcement New interest 26 January 2012 Balfidor Fondsleitung AG Purchase 3.02% The Capital Group 24 February 2012 Purchase 6.50% Companies, Inc. UBS Fund Management 28 February 2012 Purchase 6.21% (Switzerland) AG 01 March 2012 Deutsche Bank AG Sale 4.81% 31 May 2012 Balfidor Fondsleitung AG Sale <3% 20 June 2012 Balfidor Fondsleitung AG Purchase 3.00% 21 June 2012 Credit Suisse Funds AG Sale 2.77% 14 July 2012 Deutsche Bank AG Sale <3% 31 July 2012 Credit Suisse Funds AG Purchase 3.03% 11 August 2012 Credit Suisse Funds AG Sale 2.95% 17 August 2012 Credit Suisse Funds AG Purchase 3.10% 14 September 2012 Credit Suisse Funds AG Sale 2.82% 05 October 2012 Capvis General Partner II Ltd. Sale <3% 05 October 2012 Ernst Göhner Stiftung Purchase 10.46% 12 October 2012 Rolf U. Sutter End of lock-up period 3.36% Schroder Investment 20 December 2012 Purchase 3.08% Management (Switzerland) AG

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29 ORIOR GROUP ANNUAL REPORT 2012 Corporate Governance

Cross-shareholdings 7KHUHDUHQRFURVVVKDUHKROGLQJVZLWKRWKHUFRPSDQLHV

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Share capital in CHF 31.12.2012 31.12.2011 31.12.2010 Ordinary share capital 23 700 000 23 700 000 23 700 000 Conditional share capital 714 256 714 256 714 256 Authorised share capital 4 761 704 4 761 704 4 761 704 Treasury shares 582 408 686 239 396 540

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Year of First term Elected Name birth Position of ofﬁce until AGM Chairman Rolf U. Sutter 1955 Chairman of Nomination and 2006¹) 2013 Compensation Committee Vice-Chairman Rolf Friedli 1961 Nomination and Compensation 2006 2013 Committee Member Erland Brügger 1966 2007 2013 Audit Committee Member Christoph Clavadetscher 1961 2007 2013 Audit Committee Member Edgar Fluri 1947 2010 2013 Chairman of Audit Committee Member Anton Scherrer 1942 Nomination and Compensation 2007 2013 Committee

¹ CEO of ORIOR Group from 1999 to April 2011

32 ORIOR GROUP ANNUAL REPORT 2012 Corporate Governance

Rolf U. Sutter

Edgar Fluri

Erland Brügger

Rolf Friedli

Anton Scherrer

Christoph Clavadetscher

33 ORIOR GROUP ANNUAL REPORT 2012 Corporate Governance

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Year of ap- Year of pointment Name birth Position to MB CEO and Remo Hansen 1962 2001 Head of ORIOR Reﬁnement segment Hélène Weber-Dubi 1955 CFO 1999 Urs Aebi 1956 Head of Le Patron 2006 Head of the ORIOR Convenience segment and Bruno de Gennaro 1957 1998 Head of Fredag Head of International, New Business Stefan H. Jost 1963 2010 and Logistics Albert Spiess¹) 1950 Head of Spiess 2008

¹ Albert Spiess retired from the company on 30 June 2012

43 ORIOR GROUP ANNUAL REPORT 2012 Corporate Governance

Hélène Weber-Dubi

Urs Aebi

Remo Hansen

Stefan H. Jost

Bruno de Gennaro

44 ORIOR GROUP ANNUAL REPORT 2012 Corporate Governance

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Shares held by governing bodies

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No. of shares as No. of shares as Name of 31.12.2012 in % of 31.12.2011 in % Rolf U. Sutter 199 300 3.36% 199 300 3.36% Rolf Friedli - - - - Erland Brügger 14175 0.24% 14175 0.24% Christoph Clavadetscher 14515 0.25% 14515 0.25% Edgar Fluri 4 000 0.07% 4 000 0.07% Anton Scherrer 2000 0.03% 2000 0.03% Remo Hansen 85 710 1.45% 85 710 1.45% Hélène Weber-Dubi 85 830 1.45% 85 830 1.45% Urs Aebi 85 000 1.43% 85 000 1.43% Bruno de Gennaro 92 075 1.55% 92 075 1.55% Stefan H. Jost 1925 0.03% 425 0.01% Albert Spiess¹) ³) ³) -- Bruno Höltschi²) ³) ³) 85 287 1.44% 7RWDO Total ORIOR shares 5 925 000 100.00% 5 925 000 100.00%

¹ Albert Spiess retired on 30 June 2012 ² Bruno Höltschi resigned on 31 December 2011 ³ not available

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50 ORIOR GROUP ANNUAL REPORT 2012 Corporate Governance

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53 Morel pâté

Pâté is a traditional way of preserving meat. This gives it the necessary elasticity for further Our modern recipe has its origins in the royal processing. The next day it is rolled out thinly on kitchens of the French monarchy. Since pâté’s large rollers, cut out and placed by hand in bak- heyday during the Renaissance, a succession of ing pans. The two fillings are also placed in the new creations have been around to tempt our pastry cases by hand and brushed with oil to palate. Just as in the olden days, our pâté con- stop the pastry from sticking to the filling during sists of a pastry, a filling of meat, poultry or fish, baking. Then the filled mold is covered with a and a jelly layer to preserve the pâté. The pastry lid, the upper edges of which are pinched Le Patron butchers get up early to start prepar- together by a special finger technique. Two ing the pâté filling. The filling is what you might holes are pierced to allow the steam to escape call the heart of the pâté. Its composition, that forms during the baking process. The pâtés preparation and ingredients determine the are then rolled into the oven on large carts. A quality of the product. The meat is put into a very high temperature setting of 300° Celsius food processor in large pieces for grinding. turns the pastry golden brown and ensures that Liver for flavour and colour, fat for a creamy the filling is properly cooked. The release of texture, and spices are added. The mixture is steam causes the pastry top to rise. To stop the brought to a boil in the food processor and filling from cooking further and to ensure that blended to a fine paste. When making morel the pâtés keep their shape, they are cooled pâté, some of the mixture is separated toward down rapidly in an instant freezer after baking. the end and chopped morels and a dash of The pâtés are then left to cool completely over- brandy are added. The two finished pâté fillings night, during which the filling develops its firm are then placed in a cold room for up to 24 consistency. To finish, the cavity between the hours where they are left to settle until further filling and the pastry cover is filled with a spicy processing, which preserves their smooth con- jelly. The finished pâtés are then wrapped in tis- sistency. The pastry for the pâté is prepared a sue paper and released for sale. day in advance to allow it to settle overnight.

ORIOR GROUP ANNUAL REPORT 2012 Corporate Responsibility

Corporate Responsibility

Companies often ﬁnd themselves navigating the crosscurrents of divergent interests. Shareholders, customers, employees and society at large have justiﬁable expectations and demands that businesses must live up to. ORIOR is committed to showing equal regard for the interests of all stakeholders and to measuring its business activities against the widely acknowledged principles of corporate responsibility and sustainability. This Corporate Responsibility report gives an ac- count of ORIOR Group's principles and activities in the three dimensions of economy, ecology and society.

COMPANY VALUES It is our ﬁrm conviction that …

our goal of operating our growth is only motivated a sustainable company dependent on employees who enjoy that creates lasting consistently gearing their everyday work added value can only our products and and are proud of be achieved if the services to the ever being a member of our shareholders, customers changing needs of team can produce the and staff are satisﬁed our customers and required results; to an equal degree; consumers;

each individual must a participative, future- a constant striving assume full responsibility and goal-oriented style for top quality in for him/herself and of leadership, coupled everything we do and his/her work, and all with an open and an unquenchable our actions must be dynamic form of com- thirst for new things characterised by a high munication, promotes shape our company’s degree of ethics, duty entrepreneurship at development; of care and respect, all levels; as well as efﬁciency and effectiveness; responsibility for our environment and respect for animals are key criteria when it comes to procuring raw materials.

56 ORIOR GROUP ANNUAL REPORT 2012 Corporate Responsibility

Economy

BUSINESS MODEL ORIOR ...

is a Swiss producer of is the Swiss leader, convenience food in an with ﬁve competence attractive niche market; centres in markets with above-average growth rates;

is focused on fresh leverages its excellent convenience food and product innovation skills a seamless supply chain and strong corporate for the retail and food culture as a competitive service (gastronomy) advantage. The corporate sectors; culture is founded upon modesty and a desire to exceed expectations.

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GROWING MARKET

CORE COMPETENCES DIVERSIFIED REVENUE ATTRACTIVE STREAMS DIVIDEND YIELD • Innovation and focus on niche markets • Premiumisation Refinement Strong demand to the limit – in the growing Convenience Stable growth convenience • Focused and – and returns food market compelling service Corporate, level Export and Logistics • Strong corporate culture

57 ORIOR GROUP ANNUAL REPORT 2012 Corporate Responsibility

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58 ORIOR GROUP ANNUAL REPORT 2012 Corporate Responsibility

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59 ORIOR GROUP ANNUAL REPORT 2012 Corporate Responsibility

Ecology

Environmental vison

Environmental Corporate proﬁtability and awareness is minimising a company’s fundamental. ORIOR environmental impact aims to conserve are not contradictory the planet’s resources concepts. In fact, they and to treat the are increasingly becoming environment with one of ORIOR’s USPs. respect.

ORIOR measures Our employees are the targeted reduction aware of the considerable of its environmental importance ORIOR impact just as it attaches to sustainability. does productivity Their conduct and improvements. activity have a positive Annual targets are inﬂuence on their consistently evaluated ecological footprint. and appropriate measures are drawn up.

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60 ORIOR GROUP ANNUAL REPORT 2012 Corporate Responsibility

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63 ORIOR GROUP ANNUAL REPORT 2012 Corporate Responsibility

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ORIOR GROUP ANNUAL REPORT 2012

ORIOR GROUP FINANCIAL REPORT 2012

67 ORIOR GROUP ANNUAL REPORT 2012 Commentary on ﬁnancial report

Commentary on ﬁnancial report

With full-year revenues up 1 % from the previous financial year, business was better at ORIOR Group during the 2012 financial year than one would have expected con- sidering the difficult economic conditions. EBITDA, EBIT and net profit for the year were slightly lower than in the previous year due to an increase in operating expenses but cash flow was higher. The company’s financing and equity ratio repre- sent a sound platform for its future development.

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68 ORIOR GROUP ANNUAL REPORT 2012 Commentary on ﬁnancial report

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7KHDYHUDJHZHLJKWHG*URXSWD[UDWHURVHIURP AMENDED ACCOUNTING STANDARD LQ WKH SUHYLRXV \HDU WR LQ Revised IAS 19 rules (Employee Beneﬁts) apply as of 7KLVLVDWWULEXWDEOHWRDVKLIWLQWKHSURSRUWLRQRI 1 January 2013. Early adoption for the 2012 annual SUR¿WV HDUQHG E\ GLIIHUHQW SDUWV RI WKH *URXS period would have affected ORIOR AG’s balance sheet and income statement as follows (see Note on DQG WR D WD[ OLDELOLW\ RQ LQWHUQDO GLYLGHQG LQ page 79): Shareholders’ equity would have declined FRPH by CHF 11.1 million and pension costs would have increased by CHF 0.6 million. 3UR¿W IRU WKH \HDU DPRXQWHG WR &+) PLO OLRQ VOLJKWO\ OHVV WKDQ WKH ¿JXUH RI &+) PLOOLRQ UHSRUWHG WKH \HDU EHIRUH OHDYLQJ HDU QLQJVSHUVKDUHDW&+)

69 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

Consolidated Income Statement

in CHF thousand Note 2012 ' in % 2011

5HYHQXHV ● 7 +1.0%

Raw material / goods and services purchased –295 358 –304 011 Changes in inventories ● 8 –1 789 8 039 Personnel expense ● 9 –93 933 –89 537 Other operating income ● 10 481 594 Other operating expense ● 11 –58 559 –57 839 (%,7'$ (DUQLQJVEHIRUHLQWHUHVWWD[HVGHSUHFLDWLRQDQGDPRUWLVDWLRQ –2.9% as % of revenues 10.4% 10.8%

Depreciation / impairment - tangible assets ● 21 –12 659 –11 486 Amortisation - intangible assets ● 23 –3 591 –3 171 (%,7 (DUQLQJVEHIRUHLQWHUHVWDQGWD[HV –8.0% as % of revenues 7.2% 7.9%

Financial income ● 12 2 125 1 073 Financial expense ● 13 –4 860 –6 232 3UR¿WEHIRUHWD[HV –2.1% as % of revenues 6.7% 6.9%

Income tax expense ● 14 –5 500 –5 895 3UR¿WIRUWKH\HDU –1.1% as % of revenues 5.6% 5.7%

Attributable to: Non – controlling interests 00 Shareholders of ORIOR 27 850 28 161

Earnings per share in CHF

Basic earnings per share ● 15 4.71 4.76 Diluted earnings per share ● 15 4.71 4.76 Weighted Ø number of shares outstanding in ’000 ● 15 5 914 5 914

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70 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

Consolidated Statement of Comprehensive Income

in CHF thousand 2012 ' in % 2011 3URILWIRUWKH\HDU –1.1%

Exchange differences on translation of foreign operations 13 38 2WKHUFRPSUHKHQVLYHLQFRPHIRUWKH\HDUQHWRIWD[

7RWDOFRPSUHKHQVLYHLQFRPHIRUWKH\HDUQHWRIWD[ –1.2%

Attributable to: Non – controlling interests 00 Shareholders of ORIOR 27 863 28 199

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71 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

Consolidated Balance Sheet

in CHF thousand Note 31.12.2012 in % 31.12.2011 in %

Cash and cash equivalents ● 16 24 083 35 293 Current ﬁnancial assets ● 17 937 204 Trade accounts receivable ● 18 53 502 45 579 Other current receivables ● 19 2 128 2 791 Inventories and work in progress ● 20 65 237 65 587 Prepaid expenses / accrued income 595 640 &XUUHQWDVVHWV 35.8% 38.0%

Property, plant and equipment ● 21 80 787 73 103 Investment property ● 21 214 214 Intangible assets ● 23 181 765 171 968 Long – term ﬁnancial assets 10 0 Deferred tax assets ● 29 111 40 1RQ±FXUUHQWDVVHWV 64.2% 62.0%

7RWDODVVHWV 100.0% 100.0%

Derivative ﬁnancial instruments 1 737 2 909 Current ﬁnancial liabilities ● 27 17 396 13 460 Trade accounts payable ● 24 39 525 45 603 Other current payables ● 25 3 597 2 919 Current income tax liabilities 5 847 5 029 Accrued liabilities ● 26 16 959 18 841 Current portion of provisions ● 28 442 289 &XUUHQWOLDELOLWLHV 20.9% 22.5%

Non – current financial liabilities ● 27 90 509 92 048 Other non – current payables ● 25 1 116 0 Defined benefit obligations ● 36 2 384 1 226 Provisions ● 28 2 269 2 120 Deferred tax liabilities ● 29 24 086 23 995 1RQ±FXUUHQWOLDELOLWLHV 29.3% 30.2%

7RWDOOLDELOLWLHV 50.3% 52.7%

Share capital ● 30 23 700 23 700 Additional paid – in capital 45 247 56 663 Treasury shares ● 31 –582 –686 Retained earnings 134 954 107 133 Foreign currency translation 183 170 (TXLW\DWWULEXWDEOHWRVKDUHKROGHUVRI25,25 49.7% 47.3%

Non – controlling interests 00 7RWDOHTXLW\ 49.7% 47.3%

7RWDOOLDELOLWLHVDQGHTXLW\ 100.0% 100.0%

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72 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

Consolidated Statement of Equity

Equity Additional Foreign attributable to Non- Share paid – in Treasury Retained currency shareholders controlling in CHF thousand Note capital capital shares earnings translation of ORIOR interests Total equity %DODQFHDVDW ±

Proﬁt for the year 0 0 0 28 161 0 28 161 0 28 161 Other comprehensive income for the year 0 0 0 0 38 38 0 38 Total comprehensive income for the year 0 0 0 28 161 38 28 199 0 28 199 Dividends / repayment of capital contributions ● 32 0 –11 237 0 0 0 –11 237 0 –11 237 Movement in treasury shares ● 31 0 0 –289 0 0 –289 0 –289 %DODQFHDVDW ±

Proﬁt for the year 0 0 0 27 850 0 27 850 0 27 850 Other comprehensive income for the year 0 0 0 0 13 13 0 13 Total comprehensive income for the year 0 0 0 27 850 13 27 863 0 27 863 Dividends / repayment of capital contributions ● 32 0 –11 416 0 0 0 –11 416 0 –11 416 Share – based payment transaction ● 37 00 0 110110 11 Movement in treasury shares ● 31 0 0 104 –39 0 65 0 65 %DODQFHDVDW ±

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73 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

Consolidated Cash Flow Statement

in CHF thousand Note 2012 2011 Proﬁt for the year 27 850 28 161 Taxes ● 14 5 500 5 895 Depreciation / impairment / amortisation ● 21/23 16 250 14 657 Share – based payments ● 37 11 0 Increase (+) / disposal (-) of value adj. and provisions –785 32 Gain from disposal of ﬁxed assets ● 10 –149 –164 Interest income ● 12 –105 –40 Dividend income ● 12 –17 –12 Interest expense ● 13 3 683 3 750 Increase (+) / decrease (-) of accrued pension cost 614 339 Movements in working capital –10 887 –8 430

– Trade accounts receivable and other current receivables –4 701 –877

– Inventories and work in progress 3 482 –8 126

– Trade accounts payable and other current payables –6 035 1 984

– Other –3 633 –1 411 Interest paid –3 067 –3 018 Taxes paid –7 441 –9 944 &DVKIORZIURPRSHUDWLQJDFWLYLWLHV

Purchase of – property, plant and equipment ● 21 –16 133 –12 883 – intangible assets ● 23 –1 721 –1 606 Proceeds from sale of – property, plant and equipment ● 21 179 273 – intangible assets ● 23 00 – financial assets 18 0 Acquisition of companies, net of cash acquired ● 5 –14 536 –3 033 Interest received 111 37 Dividends received ● 12 17 12 &DVKIORZIURPLQYHVWLQJDFWLYLWLHV ± ±

Proceeds from financial liabilities 19 762 291 Repayments of financial liabilities –18 219 –12 171 Payment of finance lease liabilities ● 22 –790 –600 Dividends / repayment of capital contributions ● 32 –11 416 –11 237 Sale of treasury shares ● 31/37 162 0 Purchase of treasury shares ● 31 –97 –289 &DVKIORZIURPILQDQFLQJDFWLYLWLHV ± ±

1HWLQFUHDVH GHFUHDVH LQFDVKDQGFDVKHTXLYDOHQWV ± ±

Foreign exchange differences on cash and cash equivalents –4 –25 Cash and cash equivalents as at 01.01. ● 16 35 293 45 298

&DVKDQGFDVKHTXLYDOHQWVDVDW ● 16

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74 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

Notes to the Consolidated Financial Statements 2012

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75 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

Standards, amendment and interpretations effective in 2012

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Standards, amendments and interpretations that are not yet effective and have not been adopted in advance by the Group

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Enters into Group plans to Standard / interpretation Name Implication force introduce in Financial year IFRS 9 Financial instruments *** 1 Jan 2015 2015 Consolidated Financial State- Financial year IFRS 10 * 1 Jan 2013 ments 2013 Financial year IFRS 11 Joint Arrangements * 1 Jan 2013 2013 Disclosure of Interests in Other Financial year IFRS 12 * 1 Jan 2013 Entities 2013 Financial year IFRS 13 Fair Value Measurement ** 1 Jan 2013 2013 Financial year IAS 27 Separate Financial Statements * 1 Jan 2013 2013 Investments in Associates and Financial year IAS 28 * 1 Jan 2013 Joint Ventures 2013 Financial year IAS 19 Revised Employee Beneﬁts **** 1 Jan 2013 2013 Amendments to Presentation of Items of Other Financial year * 1 Jul 2012 IAS 1 Comprehensive Income 2013 Amendment to Offsetting Financial Assets and Financial year * 1 Jan 2014 IAS 32 Financial Liabilities 2014 Disclosures – Offsetting Amendment to Financial year Financial Assets and Financial * 1 Jan 2013 IFRS 7 2013 Liabilities Annual Improve- Financial year May 2012 * 1 Jan 2013 ments to IFRSs 2013 Amendment to IFRS Financial year 10, IFRS 12 and IAS Investment Entities * 1 Jan 2014 2014 27

* No or no signiﬁcant impact on the consolidated ﬁnancial statements is anticipated.

** Application of these standards /amendments is not expected to have any material effects on the equity, income or cash ﬂow situation of the Group.

*** IFRS 9 as issued reflects the first phase of the IASBs work on the replacement of IAS 39 and applies to classification and measurement of financial assets and financial liabilities as defined in IAS 39. In subsequent phases, the IASB will address hedge accounting and impairment of financial assets. IFRS 9 requires financial assets to be classified into two measurement categories: those measured at fair value and those measured at amortised cost. The determination is made at initial recognition. The classification depends on the entity’s business model for managing its financial instruments and the contractual cash flow characteristics of the instrument. For financial liabilities, the standard retains most of the IAS 39 requirements. Therefore, given the current structure of the financial instruments of the

76 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

Group, the adoption of the first phase of IFRS 9 will have no material impact on classification and measurements of financial assets and liabilities.

**** IAS 19 (Employee benefits) was amended in June 2011. The impact on the group‘s consolidated annual statements will be as follows: to eliminate the corridor approach and recognise all actuarial gains and losses in OCI as they occur; and to replace interest cost and expected return on plan assets with a net interest amount that is calculated at the beginning of the reporting period by applying the discount rate to the net defined benefit liability (asset). Accordingly, based on the 2012 figures, the unrecognised accumulated losses of kCHF 13 744 as of 31 December 2012 would decrease the equity after deduction of deferred taxes by kCHF 11 105 and increase the pension liabilities. The 2012 pension costs after deferred tax calculated would be increased by kCHF 607. The group is currently assessing the full impact of the amendments, and especially the changed treatment of the risk sharing in the pension plans.

Consolidation

1) Subsidiaries

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3) Change in scope of consolidation

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Foreign currency translation

1) Functional and presentation currency

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2) Transactions and balances

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78 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

3) Group companies

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Inventories and work in progress

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Intangible assets

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1) Goodwill

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2) Brands / labels

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3) Customer base

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4) Production patent

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5) IT software

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Financial assets

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83 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

1) Financial assets at fair value through profit and loss (AFVTPL)

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2) Loans and receivables (LAR)

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84 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

Impairment of financial assets

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Financial liabilities

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1) Financial liabilities at fair value through profit or loss (LFVTPL)

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85 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

2) Other financial liabilities (OFL)

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Impairment of non-financial assets

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86 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

Borrowings

1) Borrowings

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2) Borrowing costs

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Provisions

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87 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

Employee benefits

1) Pension obligations

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2) Dismissal indemnities

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3) Bonus plans

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88 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

4) Other long-term employment benefits

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Management participation plan

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Dividend distribution

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89 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

Revenue recognition

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1) Sales of goods

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2) Rendering of services

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3) Interest income

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4) Royalty income

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5) Dividend income

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Taxes

1) Income tax

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2) Deferred tax

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3) Sales tax

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91 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

Leases

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92 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

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Financial risk factors

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1) Foreign exchange risk

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2) Interest rate risk

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93 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

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3) Credit risk

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4) Liquidity risk

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94 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

Less than 1 Between 1 Between 2 Over 5 in CHF thousand year and 2 years and 5 years years 2012 Derivative financial instruments 684 1 053 0 0 Current interest – bearing financial liabilities 18 392 0 0 0 Trade accounts payable 39 525 0 0 0 Other current payables * 1 441 586 583 0 Accrued liabilities * 9 530 0 0 0 Financial Leasing 820 695 1 390 0 Long – term interest – bearing financial liabilities 0 89 930 0 0

2011 Derivative financial instruments 0 1 342 1 567 0 Current interest – bearing financial liabilities 14 442 0 0 0 Trade accounts payable 45 603 0 0 0 Other current payables * 850 0 0 0 Accrued liabilities * 10 938 0 0 0 Financial Leasing 885 855 1 842 196 Long – term interest – bearing financial liabilities 0 14 709 77 900 0

* Only those items that are accounted for under IAS 39.

5) Fair values of financial assets and liabilities

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Carrying amount Fair value in CHF thousand 2012 2011 2012 2011 Financial assets Cash and cash equivalents (LAR) 24 083 35 293 24 083 35 293 Current financial assets at FV through profit and loss (AFVTPL) 937 204 937 204 Trade accounts receivable (LAR) 53 502 45 579 53 502 45 579 Other current receivable (LAR) 721 631 721 631 Long – term financial assets (LAR) 10 0 10 0

Financial liabilities Derivative financial instruments (LFVTPL) –1 737 –2 909 –1 737 –2 909 Current financial liabilities (OFL) –16 638 –12 659 –16 712 –12 791 Current financial liabilities – financial leasing (OFL) –758 –801 –758 –801 Trade accounts payable (OFL) –39 525 –45 603 –39 525 –45 603 Other current payable (OFL) –1 441 –850 –1 441 –850 Accrued liabilities (OFL) –9 530 –10 938 –9 530 –10 938 Non – current financial liabilities – third parties (OFL) –88 506 –89 298 –88 900 –90 250 Non – current financial liabilities – financial leasing (OFL) –2 003 –2 750 –2 003 –2 750 Other non – current payable (OFL) –1 116 0 –1 116 0

95 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

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96 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

in CHF thousand 2012 Level 1 Level 2 Level 3 Assets measured at fair value Current ﬁnancial assets at FV through proﬁt and loss 937 90 847 0

Liabilities measured at fair value Derivative ﬁnancial instruments –1 737 0 –1 737 0

in CHF thousand 2011 Level 1 Level 2 Level 3 Assets measured at fair value Current ﬁnancial assets at FV through proﬁt and loss 204 78 126 0

Liabilities measured at fair value Derivative ﬁnancial instruments –2 909 0 –2 909 0

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Capital risk management

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97 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

Business risk factors / risk of changes in raw material prices

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Internal Control System

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Operating lease commitments – Group as a lessee

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98 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

Estimated impairment of goodwill

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Estimated impairment of other intangible assets with an indefinite life

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Pension Liabilities

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Acquisition of Möfag, Mösli Fleischwaren AG

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99 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

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Fair value recognised on in CHF thousand acquisiton Cash and cash equivalents 2 464 Current ﬁnancial assets 128 Trade accounts receivable 2 973 Other current receivables 87 Accrued assets 395 Inventories and work in progress 1 938 Property, plant and equipment 7 035 Intangible assets 5 928 $VVHWV

Trade accounts payable –1 521 Other current payables –1 512 Accrued liabilities –584 Financial liabilities –1 028 Provisions –1 089 Deﬁned beneﬁt obligations –543 Deferred tax liabilities –1 840 /LDELOLWLHV ±

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Goodwill arising on acquisition 5 829 7RWDOFRQVLGHUDWLRQ

Total consideration: Cash paid 17 000 Liability from earn – out agreement 1 660 7RWDOFRQVLGHUDWLRQ

Purchase consideration: Cash paid (Investing activities) 17 000 Cash and cash equivalents in subsidiary acquired (Investing activities) –2 464 Transaction costs of the acquisition (Operating activities) 145 &DVKRXWIORZRQDFTXLVLWLRQ

100 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

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Acquisition of Salumeria Keller SA

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Acquisition of Bernatur GmbH

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101 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

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Fair value recognised on in CHF thousand acquisition Cash and cash equivalents 885 Trade accounts receivable 390 Other current receivables 27 Accrued assets 41 Inventories and work in progress 411 Property, plant and equipment 763 Intangible assets 1 651 $VVHWV

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103 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

2012

ORIOR Corporate, Adjustments ORIOR ORIOR Export and and in CHF thousand Reﬁnement Convenience Logistics eliminations Consolidated External customer sales 290 806 191 056 28 725 0 510 587 Inter – segment sales 24 405 3 392 7 721 –35 518 1 0 Sales of goods / rendering of services 315 211 194 448 36 446 –35 518 510 587 Reduction in gross sales –4 907 –3 835 –352 0 –9 094 Revenues 310 304 190 613 36 094 –35 518 501 493 Earnings before interest, taxes, depreciation and amortisation (EBITDA) 28 283 27 770 –3 664 –54 52 335 Depreciation / impairment – tangible assets –6 191 –5 128 –1 340 0 –12 659 Amortisation – intangible assets –2 785 –79 –727 0 –3 591 Segment profit (EBIT) 19 307 22 563 –5 731 –54 36 085 Net ﬁnancial expense –2 735 Profit before taxes 33 350 Segment assets 311 132 80 635 183 927 –166 325 1, 2 409 369 Segment liabilities 210 188 34 639 17 575 –56 535 1, 3 205 867 Investments in non – current assets 7 585 8 165 2 104 0 4 17 854

2011

ORIOR Corporate, Adjustments ORIOR ORIOR Export and and in CHF thousand Reﬁnement Convenience Logistics eliminations Consolidated External customer sales 283 193 190 625 30 088 0 503 906 Inter – segment sales 23 101 2 277 8 006 –33 384 1 0 Sales of goods / rendering of services 306 294 192 902 38 094 –33 384 503 906 Reduction in gross sales –4 024 –3 134 –122 0 –7 280 Revenues 302 270 189 768 37 972 –33 384 496 626 Earnings before interest, taxes, depreciation and amortisation (EBITDA) 28 495 28 941 –3 438 –126 53 872 Depreciation / impairment – tangible assets –5 408 –4 931 –1 147 0 –11 486 Amortisation – intangible assets –2 296 –82 –793 0 –3 171 Segment profit (EBIT) 20 791 23 928 –5 378 –126 39 215 Net ﬁnancial expense –5 159 Profit before taxes 34 056 Segment assets 282 691 83 557 183 928 –154 757 1, 2 395 419 Segment liabilities 210 657 33 227 10 798 –46 243 1, 3 208 439 Investments in non – current assets 6 441 6 525 1 523 0 4 14 489

1 Inter – segment assets, liabilities, revenues as well as intercompany profits are eliminated on consolidation. 2 Segment assets do not include derivatives and investments. Investments in the amount of kCHF 351 076 (31.12.2012) and kCHF 332 417 (31.12.2011) are managed at Group level. 3 Segment liabilities do not include interest – bearing financial liabilities and derivative financial instruments from third parties. Financial liabilities in the amount of kCHF 109 642 (31.12.2012) and kCHF 108 417 (31.12.2011) are managed at Group level. 4 Cash outflow from investments in property, plant and equipment as well as intangible assets.

104 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

Segment information by country – external customer sales

in CHF thousand 2012 2011 Switzerland 484 902 476 431 France 21 075 23 393 Germany 1 539 1 858 Austria 1 551 227 Other 1 520 1 997 7RWDOVDOHVRIJRRGVUHQGHULQJRIVHUYLFHV

Reduction in gross sales –9 094 –7 280 5HYHQXHV

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Assets by country

in CHF thousand 2012 2011 Switzerland 262 354 244 972 France 296 231 Germany 116 82 7RWDODVVHWV

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105 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

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in CHF thousand 2012 2011 Sales of goods 506 844 500 635 Rendering of services 3 743 3 271 Gross sales 510 587 503 906 Reduction in gross sales –9 094 –7 280 7RWDO

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in CHF thousand 2012 2011 Movement in value adjustment of inventories 1 202 –370 Movement in finished products and work in progress –2 991 8 409 7RWDO ±

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in CHF thousand 2012 2011 Salaries and bonuses –78 316 –75 120 Social security contributions –7 924 –7 468 Pension fund contributions (deﬁned beneﬁt plan) –5 554 –5 076 Other personnel expenses –2 128 –1 873 Share – based payment transaction –11 0 7RWDO ± ±

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in CHF thousand 2012 2011 Other operating income 332 430 Gain from disposal of fixed assets 149 164 7RWDO

106 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

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in CHF thousand 2012 2011 Repair, maintenance & replacements –8 499 –7 901 Operating expenses –2 817 –2 967 Energy and waste disposal –10 813 –10 145 Information and communication –2 737 –2 525 Operational leasing –9 081 –9 572 Insurances –941 –1 095 Licences, duties & charges –407 –739 Shipping –8 596 –7 847 Marketing & sales –10 430 –11 369 Board of Directors’ compensation –908 –868 Administration –3 330 –2 811 7RWDO ± ±

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in CHF thousand 2012 2011 Interest income – third parties (LAR) 105 40 Dividend income – third parties (AFVTPL) 17 12 Gain on fair value adjustment on derivative instruments (LFVTPL) 1 129 43 Gain on fair value adjustment on ﬁnancial assets (AFVTPL) 627 0 Foreign exchange gains – realised (LAR / OFL) 179 569 Foreign exchange gains – unrealised (LAR / OFL) 68 409 7RWDO

107 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

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in CHF thousand 2012 2011 Interest expense - third parties (OFL) –3 603 –3 678 Interest expense - financial leasing (OFL) –80 –72 Bank charges and commissions - third parties (LAR / OFL) –437 –466 Loss on fair value adjustment on derivative financial instruments (LFVTPL) 0 –675 Loss on fair value adjustment on financial assets (AFVTPL) 0 –3 Adjustment of earn – out liability (OFL) –227 0 Foreign exchange losses – realised (LAR / OFL) –378 –885 Foreign exchange losses – unrealised (LAR / OFL) –135 –453 7RWDO ± ±

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in CHF thousand 2012 2011 Current income taxes –7 320 –6 356 Current income tax charge –7 325 –6 564 Adjustments of prior – year income tax 5 208 Movements of deferred taxes 1 820 461 Amount of deferred tax expense / income relating to the origi- nation and reversal of temporary differences 1 524 110 Amount of deferred tax expense / income relating to changes in tax rates or the imposition of new taxes 234 327 Amount of deferred tax expense / income relating to the use and capitalisation of deferred tax assets from tax loss carryforwards 62 24 7RWDO ± ±

108 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

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in CHF thousand 2012 2011 Proﬁt before tax 33 350 34 056 Weighted Average Group Tax Rate of 19.2% (2011: 17.4%) –6 389 –5 932 Income not subject to tax 33 0 Non – deductable expenses –28 0 Adjustments of prior – year income tax 5 208 Changes in value adjustments on deferred tax assets –177 –551 Utilisation of previously unrecognised tax losses 0 47 Effect of changes in local tax rates 234 327 Changes of group internal temporary differences 795 0 Other 27 6 7RWDO ± ±

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in CHF thousand 2012 2011 Proﬁt for the year attributable to shareholders of ORIOR 27 850 28 161

Weighted Ø number of ordinary shares in ’000 for basic earnings per share 5 914 5 914 Basic earnings per share in CHF 4.71 4.76

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109 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

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in CHF thousand 31.12.2012 31.12.2011 Cash, postal accounts and checks 42 49 Cash at banks 24 041 35 244 7RWDO

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in CHF thousand 31.12.2012 31.12.2011 Current financial assets at FV through profit and loss 937 204 7RWDO

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in CHF thousand 31.12.2012 31.12.2011 Not yet due 41 223 38 686 Overdue 1 – 30 days 9 321 6 060 Overdue 31 – 60 days 1 911 466 Overdue 61 – 90 days 534 205 Overdue 91 – 180 days 421 147 Overdue 181 – 360 days 92 15 Overdue more than 360 days 0 0 7RWDOWUDGHDFFRXQWVUHFHLYDEOH±QHW

110 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

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Individually Collectively in CHF thousand impaired impaired Total %DODQFH

Additions 23 74 97 Utilisation –62 –127 –189 %DODQFH

Additions 142 344 486 Utilisation –18 –32 –50 %DODQFH

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111 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

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in CHF thousand 31.12.2012 31.12.2011 VAT receivable 1 121 2 006 Withholding tax receivable 7 18 Other current receivables – third parties 743 716 Other current receivables – related parties 52 0 Other current receivables – social security institutions 112 5 Prepayments – third parties 93 46 7RWDO

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in CHF thousand 31.12.2012 31.12.2011 Raw material (at cost) 17 267 17 030 Trade products (at cost or net realisable value) 6 162 5 117 Semi – ﬁnished products / work in progress (at cost) 31 083 24 643 Finished products (at cost or net realisable value) 10 725 18 797 7RWDODWWKHORZHURIFRVWRUQHW UHDOLVDEOHYDOXH

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112 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

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Buildings Furniture Other and under Total Production and ofﬁce IT assets under Land and construc- tangible Investment in CHF thousand equipment equipment equipment Vehicles construction buildings tion assets properties

At cost %DODQFH

Additions 5 309 2 046 193 2 866 5 297 579 177 16 467 0 Additions from acquisitions 764 0 0 0 0 0 0 764 0 Disposals –198 –20 –18 –427 –11 0 0 –674 0 Reallocation within category 2 049 6 0 46 –2 101 47 –47 0 0 Exchange differences –3 0 0 –2 0 –8 0 –13 0 %DODQFH

Additions 5 538 1 732 639 1 131 2 791 335 1 176 13 342 0 Additions from acquisitions 387 70 0 98 0 6 480 0 7 035 0 Disposals –679 –74 –664 –426 –83 –80 0 –2 006 0 Reallocation within category 2 369 348 0 0 –2 717 178 –178 0 0 Exchange differences –1 0 0 0 0 –2 0 –3 0 %DODQFH

Accumulated depreciation %DODQFH ± ± ± ± ± ± ±

Depreciation –7 030 –1 114 –765 –1 541 –91 –945 0 –11 486 0 Disposals 172 20 18 355 0 0 0 565 0 Exchange differences 1 0 0 1 0 2 0 4 0 %DODQFH ± ± ± ± ± ± ±

Depreciation –7 582 –1 280 –725 –1 750 –14 –1 180 0 –12 531 0 Disposals 587 22 664 411 83 80 0 1 847 0 Reallocation within category 0 –9 9 0 0 0 0 0 0 Exchange differences 0 0 0 0 0 0 0 0 0 %DODQFH ± ± ± ± ± ± ±

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Net balance 01.01.2011 29 383 6 745 1 790 4 308 4 007 20 042 1 201 67 476 214 Net balance 31.12.2011 30 447 7 683 1 218 5 606 7 101 19 717 1 331 73 103 214 1HWEDODQFH

113 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

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in CHF thousand 31.12.2012 31.12.2011 Maturity within 1 year 820 885 Maturity between 1 and 5 years 2 084 2 697 Maturity over 5 years 0 196 7RWDO

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114 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

$JHLQJRIQRQFDSLWDOLVHGRSHUDWLQJOHDVLQJFRQWUDFWV in CHF thousand 31.12.2012 31.12.2011 Maturity within 1 year 6 893 6 904 Maturity between 1 and 5 years 26 265 29 287 Maturity over 5 years 41 169 45 947 7RWDO

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115 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

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Customer Production IT in CHF thousand Goodwill Brands Label base patent software Total

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Additions 0 0 0 0 0 1 724 1 724 Additions from acquisitions 1 350 79 0 1 572 0 0 3 001 Disposals 0 0 0 0 0 0 0 Exchange differences 0 0 0 0 0 –1 –1 %DODQFH

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Amortisation 0 0 0 –516 –1 617 –1 038 –3 171 Disposals 0 0 0 0 0 0 0 Exchange differences 0 0 0 0 0 0 0 %DODQFH ± ± ± ±

Amortisation 0 0 0 –975 –1 617 –999 –3 591 Disposals 0 0 0 0 0 28 28 Exchange differences 0 0 0 0 0 0 0 %DODQFH ± ± ± ±

Net balance 01.01.2011 82 318 25 257 28 660 27 636 3 234 3 310 170 415 Net balance 31.12.2011 83 668 25 336 28 660 28 692 1 617 3 995 171 968 1HWEDODQFH

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116 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

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in CHF thousand 31.12.2012 31.12.2011 ORIOR Reﬁnement 81 640 75 811 ORIOR Convenience 7 857 7 857 7RWDO

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117 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

Brands

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118 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

Label

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119 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

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in CHF thousand 31.12.2012 31.12.2011 Trade accounts payable – third parties 39 525 45 603 7RWDO

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120 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

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in CHF thousand 31.12.2012 31.12.2011 Other current payables – third parties 2 571 2 135 Other current payables – related parties 332 74 Other current payables – social security institutions 694 710 Other non – current payables – third parties 1 116 0 7RWDO

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in CHF thousand 31.12.2012 31.12.2011 Accrued Expenses - third parties 15 854 17 153 Vacation / overtime 2 013 1 494 Bonus 2 756 2 832 Client reimbursements 3 415 3 101 Water, electricity 1 294 1 289 Marketing contributions 2 274 3 108 Other 4 102 5 329 Accrued Expenses – related parties 898 1 303 Accrued Expenses – social security institutions 207 385 7RWDO

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121 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

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Effective interest in CHF thousand Note rate % Maturity 31.12.2012 Year ended 31 December 2012 Current - third parties kCHF 62 overdraft bank facility 11.00% 62 30/06/13 kCHF 13 250 secured bank loan 27 (a) LIBOR + 1.5 31/12/13 13 191 30/06/13 kCHF 3 400 secured bank loan 27 (d) LIBOR + 1.5 31/12/13 3 385 Short – term liabilities from finance lease 22 2.30% - 5.69% 758 7RWDO

Non – current - third parties kCHF 7 000 secured bank loan 27 (a) LIBOR + 1.5 30/09/14 6 969 kCHF 70 000 secured bank loan 27 (b) LIBOR + 1.5 30/09/14 69 690 kCHF 25 000 secured bank loan (not yet drawn) 27 (c) 30/09/14 0 kCHF 11 900 secured bank loan 27 (d) LIBOR + 1.5 30/09/14 11 847 Long – term liabilities from finance lease 22 2.30% - 5.69% 2014 – 2017 2 003 7RWDO

Effective interest in CHF thousand Note rate % Maturity 31.12.2011 Year ended 31 December 2011 Current - third parties kCHF 291 overdraft bank facility 11.00% 291 30/06/12 kCHF 12 500 secured bank loan 27 (a) LIBOR + 1.5 31/12/12 12 368 Short – term liabilities from finance lease 22 2.30% - 5.69% 801 7RWDO

Non – current - third parties kCHF 20 250 secured bank loan 27 (a) LIBOR + 1.5 2013 – 2014 20 036 kCHF 70 000 secured bank loan 27 (b) LIBOR + 1.5 30/09/14 69 262 kCHF 25 000 secured bank loan (not yet drawn) 27 (c) 30/09/14 0 kEUR 40 000 secured bank loan (not yet drawn) 27 (d) 2013 – 2014 0 Long – term liabilities from finance lease 22 2.30% - 5.69% 2013 – 2017 2 750 7RWDO

122 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

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Amount Carrying amount Maturity Interest rate kCHF 20 250 kCHF 20 160 31/01/13 1.50000

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Amount Carrying amount Maturity Interest rate kCHF 70 000 kCHF 69 690 31/01/13 1.50000

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123 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

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Amount Carrying amount Maturity Interest rate kCHF 15 300 kCHF 15 232 28/06/13 1.56500

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Anniversary and other long – term service in CHF thousand beneﬁts Others Total %DODQFH

Additions 135 0 135 Reclassiﬁcation 0 390 390 Use –249 0 –249 Reversal –247 –251 –498 %DODQFH

Additions 386 210 596 Additions from acquisitions 52 100 152 Use –196 0 –196 Reversal 0 –250 –250 %DODQFH

Of which short – term 226 216 442 Of which long – term 1 754 515 2 269

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in CHF thousand 31.12.2012 31.12.2011 Deferred tax assets –111 –40 Deferred tax liabilities 24 086 23 995 1HWGHIHUUHG DVVHWV OLDELOLWLHV

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in CHF thousand 2012 2011 Opening balance as at 01.01. 23 955 24 076 Additions from acquisitions 1 840 340 Charges / (discharges) to income statement –1 820 –461 1HWGHIHUUHG DVVHWV OLDELOLWLHVDVDW

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125 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

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in CHF thousand 31.12.2012 31.12.2011 Receivables 686 1 328 Inventories and work in progress 3 446 3 537 Property, plant and equipment 4 796 4 251 Intangible assets 15 161 14 879 Liabilities –3 0 Subtotal deferred tax liabilities 24 086 23 995 Beneﬁt from tax loss carryforwards –86 –24 Liabilities –25 –16 Subtotal deferred tax assets –111 –40 1HWGHIHUUHG DVVHWV OLDELOLWLHV

126 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

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Ø price per share in Number CHF Total in kCHF Opening balance as at 01.01.2011 8 510 46.60 397 Purchases 01.01. – 31.12.11 5 635 51.41 289 Closing balance as at 31.12.2011 14 145 48.51 686

Opening balance as at 01.01.2012 14 145 48.51 686 Purchases 01.01. – 31.12.12 2 100 46.43 97 Sales 01.01. – 31.12.12 –4 150 48.51 –201 Closing balance as at 31.12.2012 12 095 48.14 582

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127 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

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Unit Average exchange rate Closing exchange rate Currency 2012 2011 31.12.2012 31.12.2011 EUR 1 1.2051 1.2337 1.2071 1.2155 USD 1 0.9377 0.8877 0.9150 0.9391

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128 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

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7KHSHQVLRQFRVWLVGHWHUPLQHGDVIROORZV in CHF thousand 2012 2011 Service cost –5 903 –6 719 Interest cost –3 151 –3 161 Expected return on plan assets 3 848 4 803 Amortisation of gains / (losses) –348 0 &RPSDQ\SHQVLRQ FRVW LQFRPH ± ±

7KHPRYHPHQWLQWKHOLDELOLW\UHFRJQLVHGLQWKHEDODQFHVKHHWLVDVIROORZV in CHF thousand 31.12.2012 31.12.2011 Liability at 1 January –1 216 –770 Company pension cost –5 554 –5 076 Company contribution 4 940 4 739 Acquisitions –543 –108 /LDELOLW\DW'HFHPEHU ± ±

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31.12.2012 31.12.2011 Discount rate 2.15% 2.50% Rate of future increase in compensation 1.00% 1.50% Rate of future increase in current pensions 0.5% / 2.00% 0.5% / 2.00% Expected long – term rate of return on plan assets 3.50% 3.50% Retirement age of females 64 64 Retirement age of males 65 65 Average turnover 15% 15% Life expectancy at retirement age for females 22.3 22.3 Life expectancy at retirement age for males 18.9 18.9

129 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

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in CHF thousand 31.12.2012 31.12.2011 Defined benefit obligation at 1 January –119 984 –114 463 Service cost –5 903 –6 719 Employee contributions –3 228 –3 099 Interest cost –3 151 –3 161 Actuarial gains / (losses) –10 711 Benefit payments 4 875 7 221 Acquisitions –6 044 –474 'HILQHGEHQHILWREOLJDWLRQDW'HFHPEHU ± ± in CHF thousand 31.12.2012 31.12.2011 Fair value of plan assets at 1 January 104 457 106 373 Expected return on plan assets 3 848 4 803 Employee contributions 3 228 3 099 Employer contributions 4 940 4 739 Actuarial gains / (losses) 229 –7 702 Benefit payments –4 875 –7 221 Acquisitions 5 501 366 )DLUYDOXHRISODQDVVHWVDW'HFHPEHU

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Proportion Expected Proportion Expected in % return in % return Category of plan assets 31.12.2012 31.12.2011 Cash 6.0% 1.0% 5.4% 1.0% Bonds 44.8% 2.1% 44.7% 2.1% Shares 24.8% 6.0% 26.6% 6.0% Real estate 18.0% 4.0% 18.3% 4.0% Other (hedge funds) 6.4% 4.0% 5.0% 4.0% 7RWDO

130 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

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in CHF thousand 2012 2011 2010 2009 2008 Defined benefit obligation –133 445 –119 984 –114 463 –103 200 –100 985 Plan assets 117 328 104 457 106 373 103 176 94 682 (Deficit) / surplus –16 117 –15 527 –8 090 –24 –6 303 Experience adjustments on pension liability 5 214 3 773 4 756 5 556 4 871 Experience adjustments on plan assets 229 –7 702 –3 385 1 176 –13 481

Dismissal indemnities

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in CHF thousand 31.12.2012 31.12.2011 Deﬁned beneﬁt obligation –14 –11 Fair value of plan assets 0 0 Funded status –14 –11 Unrecognised gains / (losses) –2 –2 $FFUXHGSHQVLRQFRVW ± ±

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31.12.2012 31.12.2011 Discount rate 3.00% 4.25% Rate of future increase in compensations 3.00% 3.00% Average turnover 10.00% 10.00% Retirement age 60 60

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in CHF thousand Assets Partner 31.12.2012 31.12.2011 Trade accounts receivable Shareholders 0 2 Other current receivables Pension fund 52 0

Liabilities Partner 31.12.2012 31.12.2011 Other current payables Pension fund 332 74 Accrued liabilities Board of Directors 303 205 Accrued liabilities Management 595 1 098 Accrued pension cost Pension fund 2 384 1 226

Expenses Partner 2012 2011 Pension fund contributions Pension fund –5 554 –5 076 Board of Directors’ compensation Board of Directors –908 –868

Sales Partner 2012 2011 Gross sales Shareholders 0 2

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132 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

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in CHF thousand 2012 2011 Short – term employee beneﬁts 3 121 3 613 Post – employment benefits 280 332

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133 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

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%-share of capital and votes Share capital (in Company Name Location Country Business activity Currency 1000) 2012 2011 Orior AG Zurich Switzerland Parent Company CHF 23 700 Orior Management AG Zurich Switzerland Services CHF 100 100% 100% Rapelli SA Stabio Switzerland Premium Food CHF 12 500 100% 100% Salumeria Keller SA Maroggia Switzerland Premium Food CHF 250 100% 100% Rapelli Italia S.R.L. Varese Italy Premium Food EUR 25 100% 100% Orior Deutschland GmbH Frankfurt a. M. Germany Premium Food EUR 25 100% 100% Orior Menu AG Böckten Switzerland Premium Food CHF 1 700 100% 100% Fredag AG Root Switzerland Premium Food CHF 2 000 100% 100% Fredag Holding AG Root Switzerland Holding CHF 100 100% 100% Albert Spiess Holding AG Schiers Switzerland Holding CHF 1 000 100% 100% Albert Spiess AG Schiers Switzerland Premium Food CHF 1 000 100% 100% Spiess Europe SARL Haguenau France Premium Food EUR 780 100% 100% Lineafresca Logistic AG Langenthal Switzerland Services CHF 200 100% 100% Möfag, Mösli Fleischwaren AG Uzwil Switzerland Premium Food CHF 200 100% 0%

134 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

135 ORIOR GROUP ANNUAL REPORT 2012 Consolidated Financial Statements ORIOR Group

136 ORIOR GROUP ANNUAL REPORT 2012 Financial Statements ORIOR AG

ORIOR AG FINANCIAL STATEMENTS 2012

137 ORIOR GROUP ANNUAL REPORT 2012 Financial Statements ORIOR AG

Income Statement

in CHF thousand 2012 2011 Licence fees 266 292 Interest income 2 058 1 894 – Third parties 011 – Subsidiaries 2 058 1 883 Dividend income 20 260 21 300 7RWDOLQFRPH

Interest expense –801 –1 195 – Third parties –480 –684 – Subsidiaries –321 –511 Other ﬁnancial expense –373 –426 Other expense –2 227 –2 078 Depreciation and amortisation –2 979 –2 979 Tax expense –34 –40 7RWDOH[SHQVHV ± ±

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138 ORIOR GROUP ANNUAL REPORT 2012 Financial Statements ORIOR AG

Balance Sheet

in CHF thousand 31.12.2012 31.12.2011 Cash and cash equivalents 3 937 5 600 Treasury shares 582 686 Other current receivables 1 162 982 – Third parties 12 37 – Subsidiaries 1 150 945 Prepaid expenses 47 147 &XUUHQWDVVHWV

Investment in subsidiaries 64 410 64 410 Loans to subsidiaries 99 413 98 334 Intangible assets 14 219 16 115 Costs of capital increase 2 527 3 610 1RQ±FXUUHQWDVVHWV

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Current ﬁnancial liabilities 13 250 12 500 – Third parties 13 250 12 500 Other current payables 188 365 – Third parties 15 101 – Subsidiaries 173 264 Accrued liabilities 581 515 &XUUHQWOLDELOLWLHV

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Share capital 23 700 23 700 Statutory reserves 54 038 64 718 – Capital contribution reserves 51 047 62 463 – General legal reserves 2 409 1 569 – Reserve for treasury shares 582 686 Free reserves 4 418 4 314 Retained earnings 55 212 39 882 – Brought forward from previous year 39 042 23 114 – Profit for the year 16 170 16 768 7RWDOHTXLW\

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139 ORIOR GROUP ANNUAL REPORT 2012 Financial Statements ORIOR AG

Notes to the Statutory Financial Statements

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in CHF thousand 31.12.2012 31.12.2011 Joint and several liabilities for rent 74 427 81 127 In 2007, the production buildings of ORIOR Group were sold and rented back by the subsidiaries of the Group. ORIOR AG is jointly and severally liable with its subsidiaries for the outstanding rent instalments. The total amount of future rent payments up to the year 2025 has been disclosed. Guarantee commitments in favour of subsidiaries 70 493 70 498

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in CHF thousand 31.12.2012 31.12.2011 Regarding the Credit Facility Agreement with Credit Suisse in the maximum amount of kCHF 130 550 (of which kCHF 105 550 has been drawn as per 31.12.2012). – Declaration of assignment for loans to subsidiaries 99 413 98 334

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%-share of capital and votes Business Share capital Company Name Location activity (in kCHF) 2012 2011 Premium Rapelli SA Stabio Food 12 500 100% 100% Premium Fredag AG Root Food 2 000 100% 100% Premium Orior Menu AG Böckten Food 1 700 100% 100% Lineafresca Logistic AG Langenthal Services 200 100% 100% Orior Management AG Zurich Services 100 100% 100%

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in CHF thousand 31.12.2012 31.12.2011 Conditional share capital 714 714 Authorised share capital 4 762 4 762

140 ORIOR GROUP ANNUAL REPORT 2012 Financial Statements ORIOR AG

Conditional share capital

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141 ORIOR GROUP ANNUAL REPORT 2012 Financial Statements ORIOR AG

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Capital Brought for- contri- General Reserve for ward from Share bution legal treasury Free previous Proﬁt for in CHF thousand capital reserves reserves shares reserves year the year Equity %DODQFHDVDW

Allocation of proﬁts 0 0 549 0 0 10 425 –10 974 0 Issue of share capital 0 0 0 0 0 0 0 0 Dividends / repayment of capital contributions 0 –11 237 0 0 0 0 0 –11 237 Reserve for treasury shares 0 0 0 289 –289 0 0 0 Profit for the year 0 0 0 0 0 0 16 768 16 768 %DODQFHDVDW

Allocation of proﬁts 0 0 840 0 0 15 928 –16 768 0 Dividends / repayment of capital contributions 0 –11 416 0 0 0 0 0 –11 416 Reserve for treasury shares 0 0 0 –104 104 0 0 0 Profit for the year 0 0 0 0 0 0 16 170 16 170 %DODQFHDVDW

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Gross Post – em- Other Total Gross Post – em- Other compensa- ployment social compensa- compensa- ployment social Total tion beneﬁts costs tion 2012 tion beneﬁts costs compensation 2011 Rolf U. Sutter Chairman of the Board 450 430 54 810 36 030 541 270 673 230 57 225 58 140 788 595 Rolf Friedli Vice Chairman of the Board 91 670 0 0 91 670 83 335 0 0 83 335 Erland Brügger Member of the Board 53 335 0 4 385 57 720 53 335 0 4 385 57 720 Christoph Clava- detscher Member of the Board 53 335 0 4 385 57 720 53 335 0 4 385 57 720 Anton Scherrer Member of the Board 51 805 0 2 495 54 300 51 805 0 2 495 54 300 Edgar Fluri Member of the Board 80 000 0 6 580 86 580 80 000 0 6 580 86 580 Total Board of Directors 780 575 54 810 53 875 889 260 995 040 57 225 75 985 1 128 250 Remo Hansen CEO 642 320 46 805 50 365 739 490 591 790 45 145 46 785 683 720 Key Management1) 1 697 805 178 700 141 540 2 018 045 2 026 060 229 790 181 745 2 437 595 Total Management Board 2 340 125 225 505 191 905 2 757 535 2 617 850 274 935 228 530 3 121 315

1 Departure of Albert Spiess as per 30.06.2012 1HLWKHU25,25$*QRUDQ\RILWVVXEVLGLDULHVSURYLGHGDQ\FROODWHUDOORDQVFDVKDGYDQFHVRUFUHGLWWR DQ\RIWKHPHPEHUVRIWKH0DQDJHPHQW%RDUGRUWKH%RDUGRI'LUHFWRUVRUWRSHUVRQVFORVHO\UHODWHG WRWKHPGXULQJWKH\HDUVDQG

142 ORIOR GROUP ANNUAL REPORT 2012 Financial Statements ORIOR AG

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Total number of Total number of shares 2012 shares 2011 Rolf U. Sutter Chairman of the Board 199 300 199 300 Rolf Friedli Vice Chairman of the Board 0 0 Erland Brügger Member of the Board 14 175 14 175 Christoph Clavadetscher Member of the Board 14 515 14 515 Edgar Fluri Member of the Board 4 000 4 000 Anton Scherrer Member of the Board 2 000 2 000 Total Board of Directors 233 990 233 990 Remo Hansen CEO 85 710 85 710 Hélène Weber – Dubi CFO 85 830 85 830 Urs Aebi Head of Le Patron 85 000 85 000 Bruno de Gennaro Head of Convenience and Fredag 92 075 92 075 Stefan H. Jost Head of International, New Business & Logistics 1 925 425 Albert Spiess1) Head of Spiess 3) 0 Bruno Höltschi2) Head of International & New Business 3) 85 287 Total Management Board 350 540 434 327

1 Departure of Albert Spiess as per 30.06.2012 2 Departure of Bruno Höltschi as per 31.12.2011 3 not recorded

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% of capital and votes Name 31.12.2012 31.12.2011 Ernst Göhner Stiftung (CH) 10.46% 0.00% The Capital Group Companies, Inc. (USA) 6.50% 0.00% UBS Fund Management (Switzerland) AG (CH) 6.21% 5.76% Capvis General Partner II Ltd. (Jersey) < 3% 17.94% Deutsche Bank AG (D) < 3% 9.96%

143 ORIOR GROUP ANNUAL REPORT 2012 Financial Statements ORIOR AG

Proposal for the allocation of retained earnings as of 31 December 2012

Allocation of retained earnings

7KH%RDUGRI'LUHFWRUVLVSURSRVLQJWKHIROORZLQJDOORFDWLRQRIUHWDLQHGHDUQLQJV in CHF thousand 31.12.2012 31.12.2011 Brought forward from previous year 39 042 23 114 Profit for the year 16 170 16 768 Available retained earnings 55 212 39 882 Allocation to legal reserve –810 –840 Balance brought forward 54 402 39 042

Allocation from legal reserves (capital reserves) to free reserves and withholding tax-free distribution from free reserves

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in CHF thousand 31.12.2012 31.12.2011 Allocation from legal reserves (capital reserves) to free reserves 11 530 11 408 Withholding tax – free distribution of CHF 1.95 per registered share –11 530 –11 408

144 ORIOR GROUP ANNUAL REPORT 2012 Financial Statements ORIOR AG

145 ORIOR GROUP ANNUAL REPORT 2012 Financial Statements ORIOR AG

146 ORIOR GROUP ANNUAL REPORT 2012 Share Information

ORIOR GROUP SHARE INFORMATION

147 ORIOR GROUP ANNUAL REPORT 2012 Share Information

Share Information Listing SIX Swiss Exchange Security number 11167736 ISIN code CH0111677362 Ticker symbol ORON Shares entitled to dividend All, except for treasury shares Voting rights All registered shares have full voting rights. Major shareholders See Corporate Governance Report, Note 1

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Number of shares at 31 December 2012 2011 Number of registered shares Number 5 925 000 5 925 000 Nominal value per registered share in CHF 4.00 4.00 of wich treasury shares Number 12 095 14 145 Number of outstanding registered shares Number 5 912 905 5 910 855

Stock exchange key ﬁgures 2012 2011 Year-end price in CHF 51.20 48.50 Year high in CHF 52.90 57.50 Year low in CHF 43.15 43.00 Average trading volume per day Number 8 866 6 033 Market capitalisation at year-end in CHF m 303.4 287.4

Key ﬁgures 2012 2011 Net result per share in CHF 4.71 4.76 Net result per share (diluted) in CHF 4.71 4.76 Operating cash ﬂow per share in CHF 5.32 5.28 Equity per share in CHF 34.41 31.62 Dividend per share in CHF 1.95 1.93 Dividend percentage in % 41.4 40.5 P / E ratio after tax 10.87 10.19 Weighted Ø number of shares outstanding in ’000 5 914 5 914

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148 ORIOR GROUP ANNUAL REPORT 2012 Share Information

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CHF Index ORIOR share price SPI SPI Food Producer

40 JFMAMJJASOND 2012

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Date Place Annual General Meeting 11.04.2013, 10.00 am Zurich, Maag Event Hall Investor’s Day 06.06.2013 Schiers, Albert Spiess AG Publication of 2013 interim results 22.08.2013 tbd

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Company address ORIOR AG Dufourstrasse 43 CH-8008 Zurich Mail: [email protected] www.orior.ch

Investor Relations Milena Mathiuet Tel: +41 44 308 65 13 Mail: [email protected]

149 ORIOR GROUP ANNUAL REPORT 2012

Strategy

Category pioneer

Ongoing analysis Be the ﬁrst to exploit to identify market new market niches opportunities

Organic and external growth

Growth through Expansion of Export unique products Selective acquisitions and market penetration food service and strong brands partnerships in Switzerland in Switzerland and abroad

Product innovation and brand management

Permanent reinforcement Capitalise on rapidly Intensify brand Bespoke product of product innovation growing food product management to further premiumisation culture culture as a growth driver segments (e.g. meat each brand’s value – ﬁrst mover advantage substitutes, etc.)

Operational excellence and proﬁtability

Achieve above average Leverage ORIOR’s Continuous and quanti- Shared services where returns for shareholders leading position in the ﬁable improvements in efﬁcient Swiss market processes and productivity

Management structure/synergies

Lean management Drive market and cost Continuous investment in structure and decision synergies through cross- human capital to maintain making process fertilisation across well-trained and motivated segments workforce

Risk management

Proactive risk management to identify and address potential issues early (“What-if” scenario analysis)

150 ORIOR GROUP ANNUAL REPORT 2012

Brand Portfolio

5DSHOOL Rapelli, a brand imbued with the spirit of the Mediterranean. Authentic products and an uncompromising commitment to quality. Italian delicatessen meats in all variations, traditional style as well as modern interpretations since 1929.

7LFLQHOOD Ticinella… e la vita è bella. Beautiful scenery, cheerful people and a warm, sunny climate, all reasons why Ticino truly engenders a sense of light-hearted- ness. Ultra-high standards of product innovation. Ticinella’s products range from modern creations to typical salumi shop items and polenta dishes à la Ticinese. 6DQ3LHWUR San Pietro raw ham undergoes a slow, dry curing process of at least 12 months in the clean, crisp air of the Mendrisiotto region of Ticino under the watchful eye and experienced hands of our specialists, giving it a distinct and mouth-watering ﬂavour that consumers have come to love. 9DO0DUD Recipes for Val Mara salami and sala- metti have been passed down for many generations. Made by hand with utmost care, these Ticino products are truly authentic and unique.

6SLHVV Albert Spiess sees itself as the keeper of the age-old tradition of hanging meat to dry in clean, fresh mountain air. The higher elevations of Canton Grisons with their unique mountain climate are ideal for air-drying meat. That and a deep passion for perfection are what make these top- of-the-line meat specialities so unique. $OEHUW6SLHVV%HVWRI6ZLW]HUODQG Bündnerﬂeisch from Europe’s highest meat drying facility. This venerable Swiss product sold under the “Albert Spiess – Switzerland’s Finest” brand is winning friends all around the world.

)UVWHQOlQGHU6SH]LDOLWlWHQ Fürstenland, a region in eastern Swit- zerland, is home to a wide variety of meat specialities ranging from smoked delicacies to ham and poultry products. Fürstenländer’s Appenzeller Mostbröckli has become a cult product that is known and loved well beyond its regional borders. Neidhart + Schön Group, Zurich Neidhart + Schön Group, Zurich

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Cook ﬁne – gain time. Fredag is syno- Setting and Printing nymous with high-quality convenience food. Its products range from chicken and meat convenience meals to seafood and a wide range of vegetarian specialities.

1DWXUH*RXUPHW Vegetarian food for gourmets. Only the best selected ingredients prepared according to Swiss quality standards are good enough for Nature Gourmet, a trendsetting brand for a new philosophy of nutrition.

2FHDQ¶V%HVW Top-quality seafood. Frozen specialities from fresh and salt water, and countries near and far. Convenience products of impeccable quality for the restaurant trade. Fish and crustaceans are main- ly sourced directly from ﬁsheries with sustainable practices. IST Werbeteam AG, Tenniken and Petra Tschofen, PIX Studios, Zurich |

3DVWLQHOOD Pastinella, un amore di Pasta. Pasta fresca in all possible variations and in Photography many ways unique. Gnocchi, tortellini, ravioli and much more. Pastinella offers everything one needs for a perfect meal of Italian pasta, including, of course, a line of tasty sauces. Dynamics Group | /H3DWURQ Le Patron – créations culinaires. From

appetizers to dessert, Le Patron offers Consulting traditional, exclusive and exotic dishes of uncompromising quality that delight the palate.

/D5RPDJQROD Hand-made, wafer-thin dough and exquisite, creamy ﬁllings – this premium pasta is prepared fresh every day. La hilda design matters, Zurich | Romagnola products can be bought at exclusive shop-in-shops in premium retail outlets and at high-end Italian speciality Design stores.

/LQHDIUHVFD Lineafresca, the fresh food logistics specialist, operates a unique and dense distribution network for delivering refrigerated and frozen food throughout Switzerland. ORIOR AG, Dufourstrasse 43, CH-8008 Zurich | Imprint This annual report is published in German and English. The binding version of the ORIOR 2012 German. Publisher EXCELLENCE IN FOOD

ORIOR AG Dufourstrasse 43 CH-8008 Zurich Tel: +41 44 308 65 00 [email protected] www.orior.ch Rapelli SA Albert Spiess AG Mösli Fleischwaren AG Via Laveggio 13 Hauptstrasse Industriestrasse 9 CH-6855 Stabio CH-7220 Schiers CH-9524 Zuzwil Tel: +41 91 640 73 00 Tel: +41 81 308 03 08 Tel: +41 71 944 11 11 [email protected] ofﬁ[email protected] [email protected] www.rapelli.com www.spiess-schiers.ch www.moefag.ch

Salumeria Keller SA Fredag AG ORIOR Menu AG Pastinella Viale Baldassarre Longhena Oberfeld 7 CH-6817 Maroggia CH-6037 Root Industriestrasse 40 Tel: +41 91 649 73 79 Tel: +41 41 455 57 00 CH-5036 Oberentfelden [email protected] [email protected] Tel: +41 62 737 28 28 www.salkeller.com www.fredag.ch [email protected] www.pastinella.ch

ORIOR Menu AG ORIOR / Lineafresca Le Patron Spiess Europe Logistic AG Rohrmattstrasse 1 2, Allée Joseph Bumb Dammstrasse 2 CH-4461 Böckten F-67500 Haguenau CH-4901 Langenthal Tel: +41 61 985 85 00 Tel: +33 3 889 06 990 Tel: +41 62 919 80 80 [email protected] [email protected] [email protected] www.lepatron.ch www.spiess-schiers.ch www.lineafresca.ch