EMS CHEMIE : Earning document

Finance Report 2020

Excerpt from the

58th Annual Report 2020/2021

EMS-CHEMIE HOLDING AG

Domat/Ems Switzerland

Content

EMS Group	Share Performance	3
	Key Figures 2016 - 2020	4
	Remuneration Report	5
	Report of the Statutory Auditor on
	the Remuneration Report	6
	Consolidated Income Statement	7
	Consolidated Balance Sheet	8
	Consolidated Statement of Changes in Equity	9
	Consolidated Statement of Cash Flows	10
	Notes to the Consolidated Financial Statements	11 - 42
	Report of the Statutory Auditor on
	the Consolidated Financial Statements	43 - 45

EMS-CHEMIE HOLDING AG

Data for the Financial Year May 1, 2020 - April 30, 2021

Income Statement	47
Balance Sheet	48
Notes to the Financial Statements	49 - 52
Proposed appropriation of available earnings	52
Report of the Statutory Auditor on the
Financial Statements	53 - 54

EMS Group Share Performance

Annual Report 2020/2021

			2020	2019	2018	2017	2016
Number of registered shares	23 389 028	23 389 028	23 389 028	23 389 028	23 389 028
	Shares entitled to dividend	23 389 028	23 389 028	23 389 028	23 389 028	23 381 277
	Treasury shares	0	0	0	0	7 751
Information per share (in CHF):
Dividend per share	17.00 1)	20.00	19.75	18.50	17.00
		Of which ordinary dividend	13.00	15.60	15.50	14.50	13.00
		Of which extraordinary dividend	4.00	4.40	4.25	4.00	4.00
	Earnings per share	18.57	22.54	22.22	20.59	19.19
	Cash flow per share 2)	21.12	25.01	24.61	22.98	21.89
	Equity per share 3)	68.32	71.09	69.48	65.20	60.09
	Stock prices 4)
		High	880.00	646.50	691.00	707.00	547.50
		Low	496.60	458.00	447.60	508.00	404.50
		At December 31	853.00	636.50	467.00	650.50	517.50
Market capitalisation on December 31 (CHF millions)	19 950.8	14 887.1	10 922.7	15 214.6	12 103.8

Registered shares are listed on the SIX Swiss Exchange.
	Security number	ISIN	Investdata/Reuters
EMS-CHEMIE	1.644.035	CH0016440353	EMSN

1. Proposal of the Board of Directors.
2. Cash flow = net income plus write-downs on intangible assets, property, plant and equipment plus value adjustments to securities.
3. Excluding non-controlling interests.
4. Source: SIX Swiss Exchange AG.

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Key Figures 2016 - 2020

CHF millions	2020	2019	2018	2017	2016
Net sales revenue	1 802.3	2 152.7	2 318.3	2 145.8	1 983.1
Change in % against previous year	−16.3 %	−7.1 %	+8.0 %	+8.2 %	+4.1%

EMS Group

Annual Report 2020/2021

	Change in local currencies	−4.8 %	−2.1 %	+6.4 %	+7.5 %	+3.8 %
	Of which in Switzerland	4.0 %	3.7 %	3.4 %	3.2 %	3.1 %
Net operating income (EBIT)	515.1	623.7	620.2	582.0	547.7
	Change in % against previous year	−17.4 %	+0.6 %	+6.6 %	+6.3 %	+16.9 %
	In % of net sales revenue	28.6 %	29.0 %	26.8 %	27.1 %	27.6 %
Net financial income	−4.4	−3.5	−2.0	0.9	−5.2
Income taxes	71.1	88.4	95.8	98.5	86.9
Net income	439.7	531.9	522.3	484.4	455.5
	Change in % against previous year	−17.3 %	+1.8 %	+7.8 %	+6.3 %	+19.0 %
In % of net sales revenue	24.4 %	24.7 %	22.5 %	22.6 %	23.0 %
Cash flow 1)	494.0	584.9	575.5	537.4	511.8
	Change in % against previous year	−15.5 %	+1.6 %	+7.1 %	+5.0 %	+16.6 %
	In % of net sales revenue	27.4 %	27.2 %	24.8 %	25.0 %	25.8 %
Investments	48.3	62.9	60.2	49.3	71.5
	In % of cash flow	9.8 %	10.8 %	10.5 %	9.2 %	14.0 %
Balance sheet total	2 077.5	2 213.3	2 157.6	2 100.0	1 984.6
Assets
	Current assets	1 399.5	1 547.7	1 517.9	1 460.4	1 337.5
	Non-current assets	678.0	665.6	639.7	639.6	647.1
Equity and liabilities
	Current liabilities	290.7	351.9	365.2	390.6	366.6
	Non-current liabilities	162.6	175.8	147.8	158.9	190.2
	Equity 2)	1 597.8	1 662.7	1 625.1	1 525.0	1 405.0
		Balance sheet equity ratio	76.9 %	75.1 %	75.3 %	72.6 %	70.8 %
	Return on equity	27.2 %	31.7 %	32.0 %	31.6 %	31.9 %
Number of employees on December 313)	2 521	2 648	2 939	2 912	2 897

1. Cash flow = net income plus write-downs on intangible assets, property, plant and equipment plus value adjustments to securities.
2. Excluding non-controlling interests.
3. Excluding apprentices (2020: 132; 2019: 129; 2018: 136; 2017: 138; 2016: 144).

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EMS Group Annual Report 2020/2021

Remuneration Report

Remuneration system, competence and method of determining

The remuneration system for members of the Board of Directors and Executive Management consists, as per the Articles of Association, of a fixed remuneration and a possible variable remuneration component, which are paid out in cash only.

EMS has no participation plan. The fixed and any possible variable remuneration component are independent of each other. The variable remuneration component may form a central part of the overall remuneration package. The principle criteria for the variable remuneration component are the achievement of earnings targets and

project objectives. The Board of Directors determines the variable remuneration component at its discretion taking target achievement into account.

The remuneration sum is defined by the Board of Directors at the proposal of the Remuneration Committee and after consultation with the CEO. Variable remuneration components are paid in May of the following year. According to the current contracts, members of the Board of Directors only receive a fixed remuneration. In the reporting year, the variable remuneration component of members of Executive Management amounts on average to 40  % of the total remune­ ration sum (2019/2020: 41 %).

Remuneration for the reporting period and comparison with previous period (audited by the Statutory Auditors)

The following remuneration was paid in the reporting year (1.5.2020 - 30. 4.2021):

		2020/2021	2019/2020
		(CHF '000)	(CHF '000)
Board of Directors	Function	Remuneration
Dr U. Berg	Chairman (until 8.8.2020)	175	242
B. Merki	Chairman (since 9.8.2020)	154	137
M. Martullo	Vice-Chairman and CEO	242	239
Dr J. Streu	Member	125	130
Ch. Mäder	Member	137	150
Total Board of Directors		833	898
Executive Management
Total remuneration paid to the Executive Management was	2 829	2 777
Of this, KCHF 1 136 (2019/2020: KCHF 1 146) was variable remuneration
components. The highest remuneration for a member of Executive Management
in the reporting year was KCHF 1 033 (2019/2020: KCHF 1 024) and of
this, KCHF 523 (2019/2020: KCHF 523) as variable remuneration compo-
nent, paid to M. Martullo, independent of her remuneration as Member of the
Board of Directors.
Total remuneration paid to the Board of Directors and Executive Management was	3 662	3 675
The remuneration is paid exclusively in cash.
EMS has no stock option program.
Advisory board	There is no advisory board.

No remuneration was paid to former members of the Board of Directors or Executive Management in connection with any earlier function within the company. Furthermore, all remuneration for current or former members of the Board of Directors, Executive Management and related parties was paid based on standard market terms. Due to the COVID 19 pandemic, the Board of Directors and Executive Management of EMS voluntarily took a 15 % reduction in fees and fixed salaries for 7 months in 2020 as a sign of solidarity. During the year, the personal composition of the Executive Board changed.

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