Financial Statements and Corporate Governance 2011 Shaping the future with leading technology. Shaping the future with leading technology. The Cowboys Stadium in Dallas breaks all records: more than 100 000 fans Financial Statements and can watch the action on the fi eld under the largest domed roof in the world. The stadium‘s environmentally friendly design is also impressive. It includes sophisticated Schindler escalators and elevators, which smoothly transport Corporate Governance vast numbers of spectators in the stadium. Depending on their direction of travel and rated load, their energy-effi cient drives can feed the electricity they generate back into the network. 2011 Schindler WorldReginfo - 653db3aa-8c7a-43bd-aafb-5ae16f43d0b5 WorldReginfo - 653db3aa-8c7a-43bd-aafb-5ae16f43d0b5 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 income statement Schindler Holding Ltd. As from page 105 5 Consolidated statement of 79 Income statement comprehensive income 80 Balance sheet before appropriation 6 Consolidated balance sheet of profits 8 Consolidated cash flow statement 81 Notes to the financial statements 9 Consolidated statement of 97 Appropriation of profits changes in equity 98 Principal investments 10 Notes to the consolidated financial 102 Report of the statutory auditors statements 76 Report of the statutory auditors 0 www.schindler.com WorldReginfo - 653db3aa-8c7a-43bd-aafb-5ae16f43d0b5 WorldReginfo - 653db3aa-8c7a-43bd-aafb-5ae16f43d0b5 123 456 7 89 0 Financial Statements Group WorldReginfo - 653db3aa-8c7a-43bd-aafb-5ae16f43d0b5 Schindler Financial Statements and Corporate Governance 2011 | 3 123 456 Consolidated 7 89 0 income statement Financial Statements Group In CHF million Notes 2011 % 2010 % Continuing operations Revenue 3 7 854 100.0 8 187 100.0 Cost of materials 2 329 29.6 2 302 28.1 Personnel expenses 4 2 965 37.8 3 162 38.6 Other operating expenses 5 1 570 20.0 1 629 19.9 Depreciation 16, 17 119 1.5 132 1.6 Change of provisions 26 81 1.0 12 0.2 Total operating expenses 7 064 89.9 7 237 88.4 Operating profit 790 10.1 950 11.6 Financial income 6 62 0.8 49 0.6 Financial expenses 7 61 0.8 66 0.8 Income from associates 8 –1 – 5 0.1 Profit before taxes 790 10.1 938 11.5 Income taxes 9 214 2.7 259 3.2 Profit from continuing operations 576 7.3 679 8.3 Profit of the disposal group ALSO 11 35 0.4 32 0.4 Net profit 611 7.8 711 8.7 Net profit attributable to: The owners of Schindler Holding Ltd. 586 7.5 677 8.3 Non-controlling interests 25 0.3 34 0.4 Profit from continuing operations attributable to: The owners of Schindler Holding Ltd. 551 7.0 654 8.0 Non-controlling interests 25 0.3 25 0.3 Net profit (earnings) per share and participation certificate in CHF Undiluted 10 4.98 5.69 Diluted 10 4.94 5.66 Earnings per share and participation certificate from continuing operations in CHF Undiluted 10 4.68 5.50 Diluted 10 4.65 5.47 WorldReginfo - 653db3aa-8c7a-43bd-aafb-5ae16f43d0b5 4 | Schindler Financial Statements and Corporate Governance 2011 | Consolidated income statement 123 Consolidated statement 456 7 89 of comprehensive income 0 Financial Statements Group In CHF million Note 2011 2010 Net profit 611 711 Changes in value recognized in equity (other comprehensive income): 27.4 Exchange differences 16 –136 Hedging transactions –14 9 Financial assets available for sale 73 3 Share of other comprehensive income of associated companies – – Taxes on other comprehensive income –25 –1 Total changes in value recognized in equity 50 –125 Comprehensive income 661 586 Attributable to: The owners of Schindler Holding Ltd. 636 562 Non-controlling interests 25 24 WorldReginfo - 653db3aa-8c7a-43bd-aafb-5ae16f43d0b5 Schindler Financial Statements and Corporate Governance 2011 | Consolidated statement of comprehensive income | 5 123 456 Consolidated 7 89 0 balance sheet Financial Statements Group Assets In CHF million Notes 31.12.2011 % 31.12.2010 % Current assets Cash and cash equivalents 2 403 31.5 2 310 31.1 Marketable securities 12 259 3.4 125 1.7 Accounts receivable 13 1 376 18.0 1 280 17.2 Taxes receivable 67 0.9 52 0.7 Net assets from construction contracts 14 468 6.1 409 5.5 Inventories 15 407 5.3 359 4.8 Prepaid expenses and accrued income 109 1.4 131 1.8 Assets held for sale and disposal group ALSO 11 9 0.1 736 9.9 Total current assets 5 098 66.7 5 402 72.7 Non-current assets Property, plant, and equipment 16 483 6.3 456 6.1 Intangible assets 17 842 11.0 768 10.3 Associated companies 19 278 3.6 213 2.9 Long-term financial assets 20 632 8.3 329 4.4 Deferred taxes 21 161 2.1 131 1.8 Employee benefits 22 150 2.0 131 1.8 Total non-current assets 2 546 33.3 2 028 27.3 Total assets 7 644 100.0 7 430 100.0 WorldReginfo - 653db3aa-8c7a-43bd-aafb-5ae16f43d0b5 6 | Schindler Financial Statements and Corporate Governance 2011 | Consolidated balance sheet 123 456 7 89 0 Financial Statements Group Liabilities and equity In CHF million Notes 31.12.2011 % 31.12.2010 % Liabilities Current liabilities: Financial debts 25 169 2.2 145 1.9 Accounts payable 23 794 10.4 722 9.7 Taxes payable 116 1.5 125 1.7 Net liabilities from construction contracts 14 894 11.7 845 11.4 Accrued expenses and deferred income 24 1 177 15.4 1 180 15.9 Provisions 26 195 2.5 144 1.9 Liabilities of the disposal group ALSO 11 –– 510 6.9 Total current liabilities 3 345 43.7 3 671 49.4 Non-current liabilities: Financial debts 25 619 8.1 132 1.8 Provisions 26 381 5.0 346 4.7 Deferred taxes 21 183 2.4 164 2.2 Employee benefits 22 299 3.9 298 4.0 Total non-current liabilities 1 482 19.4 940 12.7 Total liabilities 4 827 63.1 4 611 62.1 Equity Share capital and participation capital 27 12 0.2 12 0.2 Other reserves 27 –663 –8.7 –486 –6.6 Retained earnings 3 433 44.9 3 189 42.9 Equity of the owners of Schindler Holding Ltd. 2 782 36.4 2 715 36.5 Non-controlling interests 35 0.5 104 1.4 Total equity 2 817 36.9 2 819 37.9 Total liabilities and equity 7 644 100.0 7 430 100.0 WorldReginfo - 653db3aa-8c7a-43bd-aafb-5ae16f43d0b5 Schindler Financial Statements and Corporate Governance 2011 | Consolidated balance sheet | 7 123 456 Consolidated 7 89 0 cash flow statement Financial Statements Group In CHF million Notes 2011 2010 Net profit 611 711 Depreciation 119 139 Change of provisions 81 11 Other non-cash items 4 34 Change in employee benefits –47 –23 Change in remaining net working capital –78 242 Cash flow from operating activities 690 1 114 Additions to: Property, plant, and equipment 16 –124 –147 Intangible assets 17 –20 –38 Associated companies 19 –161 –61 Marketable securities –2 – Long-term financial assets –159 –202 Disposals of: Property, plant, and equipment 16 12 8 Intangible assets 17 1 – Associated companies 19 11 – Marketable securities – 138 Long-term financial assets 94 47 Acquisition of Group companies 28 –102 –106 Outflow of cash related to deconsolidation of ALSO –14 – Cash flow from investing activities –464 –361 Proceeds from increase in financial debt 656 85 Repayments of financial debt –147 –98 Disposal of non-controlling interests 7 – Purchase of treasury shares and participation certificates 27 –259 –79 Disposal of treasury shares and participation certificates 27 19 20 Dividends paid to the owners of Schindler Holding Ltd. –355 –238 Dividends paid to non-controlling interests –23 –29 Cash flow from financing activities –102 –339 Exchange differences –41 –13 Change in cash and cash equivalents 83 401 Opening balance cash and cash equivalents 2 320 1 919 Closing balance cash and cash equivalents 2 403 2 320 Of which cash and cash equivalents from continuing operations 2 403 2 310 Of which cash and cash equivalents of the disposal group ALSO 11 10 Cash flow from operating activities includes: Income taxes paid 226 248 Interest paid 17 34 Interest received 34 37 Dividends received from associated companies 3 10 WorldReginfo - 653db3aa-8c7a-43bd-aafb-5ae16f43d0b5 8 | Schindler Financial Statements and Corporate Governance 2011 | Consolidated cash flow statement 123 Consolidated statement 456 7 89 of changes in equity 0 Financial Statements Group Total owners Non- Share and Retained of Schindler controlling Total In CHF million PC capital Other reserves earnings Holding Ltd. interests Group January 1, 2010 12 –324 2 724 2 412 109 2 521 Net profit 677 677 34 711 Other comprehensive income –115 –115 –10 –125 Comprehensive income –115 677 562 24 586 Dividends –238 –238 –29 –267 Change in treasury shares and participations certificates –47 –2 –49 –49 Share-based payments 28 28 28 December 31, 2010 12 –486 3 189 2 715 104 2 819 Net profit 586 586 25 611 Other comprehensive income 50 50 – 50 Comprehensive income 50 586 636 25 661 Dividends –355 –355 –23 –378 Change in treasury shares and participations certificates –227 –13 –240 –240 Share-based payments 26 26 26 Deconsolidation of disposal group ALSO – –71 –71 December 31, 2011 12 –663 3 433 2 782 35 2 817 WorldReginfo - 653db3aa-8c7a-43bd-aafb-5ae16f43d0b5 Schindler Financial Statements and Corporate Governance 2011 | Consolidated statement of changes in equity | 9 123 456 Notes to the 7 89 0 consolidated Financial Statements Group financial statements 1 Activities of the company The Schindler Group is one of the world’s leading suppliers of elevators, escalators, and moving walks.