Global challenges. First-class solutions. Financial Statements and Corporate Governance 2010 1 2 3 Schindler in brief To the shareholders Elevators & Escalators 4 5 6 Corporate Citizenship Overview of financial results Financial calendar 7 8 9 Financial Statements Group Financial Statements Corporate Governance 4 Consolidated profit and loss statement Schindler Holding Ltd. As from page 115 5 Consolidated statement of 89 Profit and loss statement comprehensive income 90 Balance sheet before appropriation 6 Consolidated balance sheet of profits 8 Consolidated cash flow statement 91 Notes to the financial statements 9 Consolidated statement of 107 Appropriation of profits change in equity 108 Main Group companies 10 Notes to the consolidated financial 112 Report of the statutory auditors statements 86 Report of the statutory auditors 0 www.schindler.com 1 2 3 4 5 6 7 8 9 0 Financial Statements Group Schindler Financial Statements and Corporate Governance 2010 3 1 2 3 4 5 6 Consolidated profit 7 8 9 0 and loss statement Financial Statements Group In million CHF Notes 2010 % 20091 % Continuing operations Operating revenue 3 8 187 100.0 8 281 100.0 Material cost 2 302 28.1 2 250 27.2 Personnel cost 4 3 162 38.6 3 295 39.8 Other operating cost 5 1 629 19.9 1 664 20.1 Depreciation 16,17,18 132 1.6 120 1.4 Change of provision 27 12 0.2 18 0.2 Total operating cost 7 237 88.4 7 347 88.7 Operating profit 950 11.6 934 11.3 Financial income 6 49 0.6 44 0.6 Financial expenses 7 66 0.8 88 1.1 Income from investments in associated companies 8 5 0.1 –6 –0.1 Profit before taxes 938 11.5 884 10.7 Income taxes 9 259 3.2 248 3.0 Profit from continuing operations 679 8.3 636 7.7 Profit of the disposal group ALSO 11 32 0.4 17 0.2 Net profit 711 8.7 653 7.9 Net profit attributable to: The equity holders of Schindler Holding Ltd. 677 8.3 625 7.6 Non-controlling interests 34 0.4 28 0.3 Profit from continuing operations attributable to: The equity holders of Schindler Holding Ltd. 654 8.0 613 7.4 Non-controlling interests 25 0.3 23 0.3 Net profit (earnings) per share and participation certificate in CHF Undiluted earnings per share and participation certificate 10 5.69 5.26 Diluted earnings per share and participation certificate 10 5.66 5.25 Earnings per share and participation certificate of continuing operations in CHF Undiluted earnings per share and participation certificate 10 5.50 5.16 Diluted earnings per share and participation certificate 10 5.47 5.15 1 Retrospective adjustment resulting from separate reporting of the disposal group ALSO, see note 11 4 Schindler Financial Statements and Corporate Governance 2010 Consolidated profit and loss statement 1 2 3 Consolidated statement 4 5 6 7 8 9 of comprehensive income 0 Financial Statements Group 2010 Changes in value Translation Equity holders Non- of financial exchange of Schindler controlling In million CHF instruments differences Reserves Holding Ltd. interests Group Net profit 677 677 34 711 Other comprehensive income: Translation exchange differences – –126 –126 –10 –136 Hedging transactions: unrealized 14 – 14 – 14 realized –5 – –5 – –5 Financial assets available for sale: unrealized 3 – 3 – 3 realized – – – – – Taxes other comprehensive income –1 – – –1 – –1 Comprehensive income 11 –126 677 562 24 586 2009 Changes in value Translation Equity holders Non- of financial exchange of Schindler controlling In million CHF instruments differences Reserves Holding Ltd. interests Group Net profit 625 625 28 653 Other comprehensive income: Translation exchange differences – 88 88 1 89 Hedging transactions: unrealized 4 – 4 –1 3 realized – – – – – Financial assets available for sale: unrealized –3 – –3 – –3 realized – – – – – Taxes other comprehensive income – – – – – – Comprehensive income 1 88 625 714 28 742 Schindler Financial Statements and Corporate Governance 2010 Consolidated statement of comprehensive income 5 1 2 3 4 5 6 Consolidated 7 8 9 0 balance sheet Financial Statements Group Assets In million CHF Notes 31.12.2010 % 31.12.2009 % Current assets Cash and cash equivalents 2 310 31.1 1 919 27.1 MarKetable securities 12 125 1.7 257 3.6 Accounts receivable 13 1 280 17.2 1 707 24.1 Taxes receivable 52 0.7 63 0.9 Net assets of construction contracts 14 409 5.5 460 6.5 Inventories 15 359 4.8 595 8.5 Prepaid expenses and accrued income 131 1.8 101 1.4 Assets held for sale and disposal group ALSO 11 736 9.9 1 0.0 Total current assets 5 402 72.7 5 103 72.1 Non-current assets Property, plant, and equipment 16 438 5.9 480 6.8 Investment properties 17 18 0.2 21 0.3 Intangible assets 18 768 10.3 834 11.8 Investments in associated companies 20 213 2.9 178 2.4 Long-term financial assets 21 329 4.4 192 2.7 Deferred taxes 22 131 1.8 140 2.0 Employee benefits 23 131 1.8 132 1.9 Total non-current assets 2 028 27.3 1 977 27.9 Total assets 7 430 100.0 7 080 100.0 6 Schindler Financial Statements and Corporate Governance 2010 Consolidated balance sheet 1 2 3 4 5 6 7 8 9 0 Financial Statements Group Liabilities and equity In million CHF Notes 31.12.2010 % 31.12.2009 % Liabilities Current liabilities: Financial debts 26 145 1.9 174 2.4 Accounts payable 24 722 9.7 1 013 14.3 Taxes payable 125 1.7 125 1.8 Net liabilities of construction contracts 14 845 11.4 764 10.8 Accrued expenses and deferred income 25 1 180 15.9 1 236 17.5 Provisions 27 144 1.9 154 2.2 Liabilities associated with the disposal group ALSO 11 510 6.9 – – Total current liabilities 3 671 49.4 3 466 49.0 Non-current liabilities: Financial debts 26 132 1.8 245 3.4 Provisions 27 346 4.7 319 4.5 Deferred taxes 22 164 2.2 199 2.8 Employee benefits 23 298 4.0 330 4.7 Total non-current liabilities 940 12.7 1 093 15.4 Total liabilities 4 611 62.1 4 559 64.4 Equity Share capital and participation capital 28 12 0.2 12 0.2 Treasury stocK –138 –1.9 –91 –1.3 Changes in value of financial instruments 16 0.2 5 0.1 Translation exchange differences –675 –9.1 –549 –7.8 Reserves 3 500 47.1 3 035 42.9 Equity of the equity holders of Schindler Holding Ltd. 2 715 36.5 2 412 34.1 Non-controlling interests 104 1.4 109 1.5 Total equity 2 819 37.9 2 521 35.6 Total liabilities and equity 7 430 100.0 7 080 100.0 Schindler Financial Statements and Corporate Governance 2010 Consolidated balance sheet 7 1 2 3 4 5 6 Consolidated 7 8 9 0 cash flow statement Financial Statements Group In million CHF Notes 2010 2009 Net profit 711 653 Depreciation and amortization 139 150 Change of provisions 11 10 Other items with no effect on liquidity 34 20 Contributions to pension funds –23 –26 Change of remaining net worKing capital 242 245 Cash flow from operating activities 1 114 1 052 Additions to: Property, plant, and equipment –147 –103 Intangible assets –38 –34 Investments in associated companies –61 –5 Long-term financial assets –202 –116 Disposals of: Property, plant, and equipment 6 7 Investment properties 2 – MarKetable securities 138 398 Long-term financial assets 47 24 Non-current assets held for sale – 56 Additions to investments in affiliated companies 29 –106 –1 Cash flow from investing activities –361 226 Financial debt assumed 85 7 Repayment 3½% debenture due 2.6.2009 – –300 Other financial debt repaid –98 –69 Purchase of non-controlling interests – –11 Additions treasury stocK –79 –24 Disposals treasury stocK 20 25 Dividends paid to the equity holders of Schindler Holding Ltd. –238 –238 Dividends paid on non-controlling interests –29 –25 Cash flow from financing activities –339 –635 Translation exchange differences –13 22 Change in cash and cash equivalents1 401 665 Opening balance cash and cash equivalents 1 919 1 254 Closing balance cash and cash equivalents 2 320 1 919 Of which cash and cash equivalents of the continuing operations 2 310 1 854 Of which cash and cash equivalents of the disposal group ALSO 11 10 65 Cash flow from operating activities includes: Income taxes paid 248 210 Interest paid 46 43 Interest received 37 31 Dividends received from associated companies 10 3 1 The cash flow of the disposal group ALSO is reported separately in note 11. 8 Schindler Financial Statements and Corporate Governance 2010 Consolidated cash flow statement 1 2 3 Consolidated statement 4 5 6 7 8 9 of change in equity 0 Financial Statements Group Changes Equity Share in value of Translation holders Non- and PC Treasury financial exchange of Schindler controlling In million CHF capital stock instruments differences Reserves1 Holding Ltd. interests Group January 1, 2009 12 –199 4 –637 2 745 1 925 111 2 036 Net profit 625 625 28 653 Other comprehensive income 1 88 – 89 – 89 Comprehensive income 1 88 625 714 28 742 Dividends –238 –238 –25 –263 Cancellation of treasury stocK 103 –103 – – – Additions/disposals treasury stocK 5 2 7 – 7 Participation plans 10 10 – 10 Change in non-controlling interests –6 –6 –5 –11 December 31, 2009 12 –91 5 –549 3 035 2 412 109 2 521 Net profit 677 677 34 711 Other comprehensive income 11 –126 – –115 –10 –125 Comprehensive income 11 –126 677 562 24 586 Dividends –238 –238 –29 –267 Additions/disposals treasury stocK –47 –2 –49 – –49 Participation plans 28 28 – 28 December 31, 2010 12 –138 16 –675 3 500 2 715 104 2 819 1 Including share premiums of Schindler Holding Ltd.