Annual Report 2009 - Rieter

Annual Report 2009

Rieter Group . Annual Report 2009 . Sales by geographical region 2009 

Sales by geographical region 2009 

Rieter Textile Systems 

Latin America 

81.3 CHF million 

15.3% 

Europe 


15.0% 

Rieter Automotive Systems 

North America 


28.7% 

Latin America 


7.0% 

North America 


4.3% 

Africa 

9.3 Mio. CHF 

0.7% 

Africa 


4.9% 

Asia 


5.9% 

Asia 


60.5% 

2008 total 532.0 CHF million 

Europe 


57.7% 

2008 total 1 424.3 CHF million

Group report 

2 The Rieter Group 

Rieter Group . Annual Report 2009 . Group report 

3 Financial highlights 

4 Letter to the shareholders 

10 Rieter Textile Systems 

14 Rieter Automotive Systems 

16 Sustainability 

18 Corporate Governance 

Financial report 

Consolidated financial statements 

30 Consolidated income statement and 

consolidated statement of comprehensive income 

31 Consolidated balance sheet 

32 Consolidated statement of cash flows 

33 Changes in consolidated equity 

34 Notes to the consolidated financial statements 

64 Significant subsidiaries and associated companies 

66 Report of the statutory auditor on the consolidated 

financial statements 

Financial statements of Rieter Holding Ltd. 

68 Income statement 

69 Balance sheet 

70 Notes to the financial statements 

77 Proposal of the Board of Directors 

78 Report of the statutory auditor 

on the financial statements 

Appendix 

80 Review 2005 to 2009 

1

2 

Rieter Group . Annual Report 2009 . The Rieter Group 

The Rieter Group 

Rieter is an industrial group based in Winterthur, 

Switzerland, and operating on a global scale. 

Formed in 1795, the company is a leading supplier 

to the textile and automotive industries. 

Since it was established, Rieter’s innovative 

momentum has been a powerful driving force for 

industrial progress. Products and solutions are 

ideally tailored to its customers’ needs and are 

increasingly also produced in customers’ markets. 

Rieter has a presence in some 20 countries with 

nearly 70 manufacturing facilities and has a total 

worldwide workforce of 12 700 employees, some 

13% of whom are based in Switzerland. 


Rieter Textile Systems develops and produces 

machinery, systems and components for manufacturing 

yarns from natural and man-made fibers 

and their blends. Rieter is a leading supplier of 

integrated installations for short staple spinning 

mills, from the spinning preparation stage to the 

final spinning process as well as of the technology 

components and service offerings. Therefore, 

Rieter can develop optimal solutions for customers 

not least a comprehensive consulting service 

from planning to operation of spinning mills. A glob- 

al presence in the large emerging markets such 

as China and India is an essential success factor. 

In 2009 the Textile Systems Division posted sales 

of 532.0 million CHF, equivalent to 27% of total 

group sales, with 4 086 employees. 

For the benefit of shareholders, customers and 

employees, Rieter aspires to achieve sustained 

growth in enterprise value. With this in mind, 

Rieter seeks to maintain a continuous increase 

in sales and profitability, primarily by organic 

growth, but also through strategic alliances and 

acquisitions. 

The company comprises two divisions: 

Textile Systems and Automotive Systems. 


Rieter Automotive Systems is the leading global 

manufacturer of systems for acoustic comfort and 

thermal management in motor vehicles. The Division 

develops and manufactures components, modules 

and total systems for the passenger, trunk and 

engine compartments, as well as heat protection 

and aerodynamic underbody solutions. The Automotive 

Systems’ customers include all the world’s major 

automotive manufacturers. Rieter Automotive 

Systems produces at locations in Europe, North and 

South America, South Africa, Turkey, China and 

India. The Division operates a global network of Development 

and Acoustic Centers close to its customers 

as well as a central research center in Winter- 

thur, Switzerland. In 2009 the Automotive Systems 

Division posted sales of 1 424.3 million CHF, equivalent 

to 73% of total group sales, with 8 600 employees.

Financial highlights 

CHF million 2007 2008 2009 

Rieter Group 

1. Sales, adjustments for sales deductions and own work capitalized 

and changes in inventories of products manufactured by 

the company (cf. page 30). 

2. Net result plus depreciation and amortization (cf. page 62). 

3. Excluding apprentices and temporary employees. 

4. Proposed by the Board of Directors (cf. page 77). 

5. Source: Bloomberg. 

6. Shareholders’ equity attributable to shareholders of Rieter 

Holding Ltd. per share outstanding at December 31. 

2009/2008 

Change in % 

Orders received 4 066.4 2 561.6 1 935.1 – 24 

Sales 3 930.1 3 142.5 1 956.3 – 38 

Corporate output 1 

3 822.8 2 971.7 1 846.5 – 38 

Operating result before special charges, interest and taxes 286.8 22.4 – 186.6 

• in % of corporate output 7.5 0.8 – 10.1 

Operating result before interest and taxes (EBIT) 278.7 – 312.1 – 186.6 

• in % of corporate output 7.3 – 10.5 – 10.1 

Net result 211.5 – 396.7 – 217.5 


Cash flow 2 

360.2 – 102.4 – 93.0 


Investments in tangible fixed assets and intangible assets 203.5 140.9 61.7 – 56 

Total assets 2 847.4 2 088.9 1 814.1 – 13 

Shareholders’ equity before appropriation of profit 1 369.5 746.2 655.8 – 12 

Number of employees at year-end 3 

Divisions 

15 506 14 183 12 761 – 10 

Sales Textile Systems 1 566.8 1 120.4 532.0 – 53 

Operating result before interest and taxes Textile (EBIT) 200.7 – 49.5 – 73.6 

• in % of corporate output Textile Systems 13.1 – 4.9 – 15.8 

Sales Automotive Systems 2 363.3 2 022.1 1 424.3 – 30 

Operating result before interest and taxes Automotive 

(EBIT) 91.6 – 251.0 – 105.1 

• in % of corporate output Automotive Systems 4.0 – 12.8 – 7.6 

Rieter Holding Ltd. 

Share capital 22.3 21.4 23.4 

Net profit 67.4 2.9 1.0 

Gross distribution 57.1 0.0 0.0 4 

Number of registered shares, paid-in 4 450 856 4 283 056 4 672 363 

Average number of registered shares outstanding 4 092 265 3 822 929 4 392 808 15 

Price of registered shares (high/low) CHF 717/478 5 505/151 5 270/95 5 

Number of registered shareholders on December 31 7 091 8 519 8 400 – 1 

Market capitalization on December 31 1 965.7 650.9 1 084.5 67 

Data per registered share 

Earnings per share CHF 48.19 – 106.18 – 50.96 

Equity (group) 6 

Rieter Group . Annual Report 2009 . Financial highlights 

CHF 332.86 181.25 126.42 – 30 

Gross distribution (Rieter Holding Ltd.) CHF 15.00 0.00 0.00 4 

3

4 

Rieter Group . Annual Report 2009 . Letter to the shareholders 

Erwin Stoller 

Chairman of the Board of Directors 

Severe test faced successfully in the 2009 financial year 

Dear shareholder 

This E. Schneider 

Vice-Chairman of the Board of Directors 

The impact of the economic and financial crisis was 

a dominant feature of the 2009 financial year for 

the Rieter Group. The unfavorable market conditions 

had an adverse influence on the trend of business 

at both divisions, and resulted in a substantial 

net loss. Despite a drastic slump in sales in the past 

two financial years totaling 1 973.8 million CHF – 

equivalent to some 50% – Rieter successfully 

defended its strong market position in the textile 

machinery and automotive component supply businesses. 

The difficult overall conditions subjected 

the group as a whole to a severe test. Rieter faced 

it successfully thanks to the strenuous efforts of 

management and personnel as well as thanks to the 

confidence of the shareholders. By focusing at an 

early stage on bolstering equity capital and managing 

liquidity, Rieter had a strong balance sheet with 

a sound equity ratio and positive net liquidity at 

year-end. 

New orders received and sales by the group fell 

steeply in the year under review, but a slight recovery 

in the markets became apparent in the second 

half of the year. Rieter believes that activity in both 

sectors in which the group operates bottomed out 

before mid-2009. In the year under review Rieter 

made progress with the sustained improvement 

of its cost structure through restructuring and also 

took advantage of numerous opportunities for 

short-term cost economies. These measures in conjunction 

with improved capacity utilization due 

to higher volumes enabled the Rieter Group in the 

second semester to significantly reduce losses 

at operating and group level in the second half of 

2009 compared to the first six months. 

Investments in innovations and market development 

were reviewed against the backdrop of 

customers’ restraint and prioritized to enable the 

projects of greatest strategic importance to be 

implemented nevertheless. With a strong market 

position and attractive products Rieter is thus 

well placed to benefit from the next upswing. 

Decline in order intake and sales 

Due to the unfavorable market environment, which 

affected the first half in particular, orders received 

by the Rieter Group in the 2009 financial year as 

a whole were 24% lower at 1 935.1 million CHF. Order 

intake in the second six months was 9% higher 

than in the same period of the previous year and 

30% higher than in the first half of 2009. This positive 

trend was attributable to a significant increase 

in orders received by both divisions. Over the year 

as a whole group sales fell more steeply than orders 

received. They were 38% lower (35% lower in local 

currencies) at 1 956.3 million CHF. In the second 

half of 2009 this figure was 21% lower than in the 

same period of the previous year and 17% higher 

than in the first half of 2009. 

Significantly reduced losses in the second half 

of 2009 

Rieter had already initiated extensive programs to 

cut costs and realign structures and processes in 

both divisions in summer 2008. Rieter continued 

these efforts with top priority in the year under 

review. Employee costs and operating expenses in 

particular were reduced substantially, thus the first 

successes in lowering the break-even point have 

become apparent. Initial positive effects of these 

programs in conjunction with strict cost discipline 

became apparent in the second half of 2009: after 

an operating result before special charges amounting 

to – 136.5 million CHF was posted in the first 

half of 2009, this figure improved in the second 

half to – 50.1 million CHF. For the year as a whole

the operating result before interest and taxes (EBIT) 

amounted to – 186.6 million CHF (+ 22.4 million CHF 

before special charges in 2008). The progress made 

at both divisions in stemming losses and improving 

the cost structure in the second half of the year 

proves the effectiveness of the restructuring efforts. 

The operating losses at Textile Systems and 

Automotive Systems were more than halved in the 

second half of the year compared to the first. 

In particular, the cost-cutting and restructuring 

programs also included various measures in the 

personnel sector. In order to adjust capacities to 

the lower order volumes Rieter utilized flexible 

working-time models, introduced short-time working 

at numerous facilities in Europe and reduced 

personnel capacity. A large number of managers 

and employees worldwide also deserve thanks for 

voluntarily waiving wage and salary entitlements 

in various forms. At the end of 2009 the Rieter 

Group’s worldwide workforce totaled 12 761 employees, 

a reduction of some 1 400 employees 

compared with a year earlier. In order to adjust 

capacity to the steep decline in demand Rieter has 

reduced the number of positions for permanent 

employees by a total of 2 700 and for temporary 

employees by some 1 000 since the end of 2007. 

The transfer of manufacturing operations to lower- 

The progress made at both divisions in stemming losses 

and improving the cost structure in the second half of the 

year bears witness to the effectiveness of the restructuring 

measures. 

cost countries has continued. Rieter thus aims to 

exploit the cost advantages of these locations and 

also to get closer to customers operating in those 

markets, primarily in China and India. The buildup 

of permanent employee numbers in the second 

half of 2009 took place in the growth markets or – 

due to firmer sales – at Rieter Automotive in North 

America, where our subsidiaries adjusted very 

flexibly to the changes in market conditions. 

Rieter Group Rieter-Konzern . Annual Report . Geschäftsbericht 2009 . Letter to 2009 the shareholders . Abschnitt 5 

In the period between 2007 and 2009 the compensation 

of the Board of Directors and the Group Executive 

Committee was reduced by some 50%, corresponding 

to total savings of 3 million CHF. 

Net result 

The net result amounted to – 217.5 million CHF 

(– 396.7 million CHF in 2008). Compared to the first 

half of 2009 the net loss halved in the second 

six months. This was mainly attributable to the 

r e duced operating loss. 

No dividend payment 

At the 2009 Annual General Meeting shareholders 

approved the proposal by the Board of Directors 

that no dividend should be paid for the 2008 financial 

year in the interests of preserving the capital 

of the Rieter Group. Instead of a dividend payment, 

options were allocated to shareholders on May 5, 

2008, enabling them to purchase Rieter shares on 

attractive terms. The issue of shareholder’s options 

reinforced Rieter’s capital base with an inflow of 

46.7 million CHF. Since the group is reporting a loss 

for the year under review, the Board of Directors 

will propose to the Annual General Meeting on April 

28, 2010, that no dividend should be paid for 2009.

6 Rieter-Konzern Rieter Group . Annual . Geschäftsbericht Report 2009 2009 . Letter . Abschnitt to the shareholders 

Rieter Textile Systems: market revival in the 

second half of the year 

The world market for textile machinery featured a 

steep downturn from spring 2008 until mid-2009. 

Demand declined because government stimulus 

programs to expand spinning capacity in large textile-producing 

countries expired and at the same 

time consumption of textiles in major sales markets 

such as the US and Europe contracted for economic 

reasons. Signs of a slight revival of the markets 

have become apparent since summer 2009. This is 

especially the case in India and China. In 2009 as 

a whole, orders received by Rieter Textile Systems 

totaled 510.8 million CHF, equivalent to a decline of 

5% compared with the previous year (539.5 million 

CHF in 2008). The trend of business diverged in 

the two halves of 2009. While order intake in the 

first six months continued to fall compared with the 

same – already weak – period in the previous year, 

it was some 69% higher in the second half of 2009 

than in the first half. Rieter already recorded a 

significant revival in demand for wearing and spare 

As a result of the increase in orders received as of 

summer 2009, sales in the second half of the year of 

T extile Systems were already some 13% higher than 

in the first six months. 

parts in the second quarter of 2009. Due mainly to 

the very low level of orders received in the second 

half of 2008 and at the beginning of 2009, sales 

in the year under review as a whole were again 

sharply lower. They amounted to 532.0 million CHF, 

equivalent to a 53% reduction compared with the 

previous year. As a result of the increase in orders 

received as of summer 2009, sales in the second 

half of the year were already some 13% higher than 

in the first six months. 

The steep fall in volumes resulted in unsatisfactory 

utilization of capacity. Despite the adjustments initiated 

in 2008, which continued to be implemented 

systematically in the year under review, the operating 

result before interest and taxes (EBIT) was 

– 73.6 million CHF (+ 41.3 million CHF before special 

charges in 2008). However, the effect of the restructuring 

and cost-cutting programs and the slight 

increase in volumes was a striking reduction in the 

loss in the second half of the year compared to the 

first six months – from 58.2 million CHF to 15.4 million 

CHF. 

Rieter has decided to focus even more closely on its 

core competencies as a systems supplier in the field 

of spinning machinery for short staple fibers as well 

as the appropriate technology components and 

service offerings. In December 2009 Rieter signed 

a contract to sell Rieter Perfojet in France to the 

Austrian Andritz Group. The company manufactures 

machinery and systems to produce nonwovens. 

The transaction was closed on March 9, 2010. 

Rieter Automotive Systems: higher sales in the 

second half of the year 

Rieter’s automotive component supply business 

suffered a severe slump in demand as a result of the 

economic and financial crisis in 2008 and 2009. 

This affected both of Rieter Automotive Systems’ 

main markets, North America and Europe. Following 

a decline in the second half of 2008, vehicle output 

was again sharply lower in the first half of 2009. 

The trend in vehicle production was considerably 

better in Asia – with the exception of Japan – and 

in South America. Due largely to government stimulus 

programs to support economic activity, automobile 

manufacturers in Europe and North America 

reduced their excess inventories in the first six 

months and started to increase output slightly 

again in summer.

In this environment sales by Rieter Automotive Systems 

were 30% lower (26% lower in local currencies) 

in the 2009 financial year, totaling 1 424.3 million 

CHF (2 022.1 million CHF in 2008). With its 

broad customer base and global structure, Automotive 

Systems was able to take full advantage of the 

somewhat more favorable market environment in 

the second half of the year to improve its position 

with customers. The division’s sales during this 

period were 19% higher than in the first six months, 

despite seasonally lower demand in this period. 

Rieter Automotive Systems is also expanding its presence 

in Asia step by step. The populous countries of India 

and China offer great growth potential for the automotive 

industry. 

In order to adjust capacity to the considerably lower 

production volumes and align structures with the 

global changes in the industry, Rieter Automotive 

Systems has implemented extensive restructuring 

programs since 2008. In the context of these programs 

the closure of four plants had already been 

completed and corresponding negotiations at four 

other manufacturing sites are well advanced at the 

end of 2009. At the same time manufacturing operations 

were being transferred to low-cost countries. 

These moves had a very positive impact on the 

earnings situation in the 2009 financial year. The 

operating result before interest and taxes (EBIT) 

improved in the second half of 2009 to – 27.1 million 

CHF, compared to – 78.0 million CHF in the first 

six months. For the year as a whole the operating 

result before interest and taxes (EBIT) amounted to 

– 105.1 million CHF, compared with – 7.3 million 

CHF before special charges in 2008. The division 

continued to press ahead with its restructuring 

efforts in Europe in the year under review, and 

these will therefore have an even greater impact 

on earnings in 2010. The programs in the US are 

largely complete. 


Sound balance sheet 

Despite the severe impact of the economic and 

financial crisis on business at both divisions, Rieter 

still had a sound balance sheet at the end of the 

year under review: the equity ratio was 36% as in 

the previous year, cash and cash equivalents at 

the end of the year amounted to 218 million CHF 

(283 million CHF in 2008) and net liquidity was 

10 million CHF (net debt of 37 million CHF in 2008). 

The group focused on reinforcing equity capital and 

liquidity at an early stage. At the operating level 

this included systematic management of working 

capital and restraint in capital spending. The sale 

of Rieter shares to PCS Holding AG in February 

2009, thus boosting liquidity and equity capital to 

the tune of 57 million CHF, and the successful issue 

of shareholder’s options in May 2009, resulting in 

a further inflow of 47 million CHF, also made a substantial 

contribution to strengthening the balance 

sheet and improving the liquidity situation. The 

group’s finances remain on a firm foundation thanks 

to the available funds and the long-term credit 

facility concluded with banks in March 2009. 

Developing future markets; innovations for 

business development 

Rieter took important steps toward implementing 

its strategy in the 2009 financial year, although 

numerous projects were re-prioritized after careful 

review owing to economy measures. It is of crucial 

importance for both divisions to have a presence in 

the major growth regions and be able to supply customers 

there with products and services specific to 

their markets. In 2009 Rieter Textile Systems continued 

to expand its presence in China and India as 

well developing products with a price/performance 

ratio appropriate to these large textile-producing 

countries. The airjet spinning process developed by 

Rieter and released for sale in selected markets by 

Textile Systems in 2009 is of interest to customers 

worldwide. It enables high-quality yarns with specific 

properties to be produced much more inexpensively 

than with existing spinning processes. Rieter 

Automotive Systems is also expanding its presence 

in Asia step by step. The populous countries of 

India and China offer great growth potential for the

8 Rieter-Konzern Rieter Group . Annual . Geschäftsbericht Report 2009 2009 . Letter . Abschnitt to the shareholders 

automotive industry. For example, China overtook 

the US as the largest automobile market in 2009. 

Automotive manufacturers are therefore establishing 

further capacity in these markets. Automotive 

Systems already has a presence in China and India 

with manufacturing plants and intends to align its 

network of production facilities even more closely 

with the global structural changes in the industry. 

The division is also pressing ahead with innovations 

to enable customers to overcome the major 

technical challenges posed by government environmental 

requirements for more economical automobiles 

with lower emissions as well as for the entire 

life cycle of the vehicles. Rieter Ultra Silent (RUS), 

the novel fiber technology launched in the previous 

year, which helps to reduce vehicle weight and fuel 

consumption, offers great potential. 

Annual General Meeting and shareholders 

At the Annual General Meeting held on April 29, 

2009, shareholders elected Michael Pieper, 

This E. Schneider, Hans-Peter Schwald and Peter 

Spuhler to the Board for a three-year term of office. 

Dr. Jakob Baer was re-elected for a second three- 

In 2009 Rieter Textile Systems continued to expand its 

presence in China and India as well developing products 

with a price/performance ratio appropriate to these 

large textile-producing countries. 

year term of office. Dr. Ulrich Dätwyler and Dr. Peter 

Wirth did not stand for re-election to the board at 

the end of their term of office. Dr. Rainer Hahn decided 

to resign from the Board of Directors on the 

date of the 2009 Annual General Meeting. 

Organizational and personnel changes 

The Board of Directors of Rieter Holding Ltd. elected 

their Chairman, Erwin Stoller, as Executive Chairman 

at the beginning of August 2009. With this 

move the Board of Directors assumed greater responsibility 

and shortened decision-making lines in 

a very difficult business environment. With this reassignment 

of responsibilities the board is seeking 

to establish an optimal organizational structure 

to implement the extensive restructuring measures 

and ensure the further development of the group. 

Since then the members of the Group Executive 

Committee report directly to Erwin Stoller. In order 

to conform to principles of good corporate governance, 

This E. Schneider, Vice-Chairman of the 

Board, has been appointed Lead Director. 

Hartmut Reuter, CEO, has left the group with the 

appointement of Erwin Stoller as Executive Chairman. 

Hartmut Reuter had been a member of the 

Group Executive Committee since 1997 and Group 

CEO since 2002. The Board of Directors conveys 

its thanks to him for his good work and wishes him 

all the best for the future.

Outlook 

By virtue of the leading positions occupied by both 

divisions, Rieter has been participating in the 

recovery of the textile machinery and automotive 

markets since mid-2009. In the initial months of 

the current year Textile Systems has recorded a 

further distinct revival in new orders received compared 

with the second half of 2009. Sales by Automotive 

Systems in the current year are higher 

than the average level in the second half of 2009. 

Although these volumes are well below the levels 

achieved in the record years of 2005 – 2007, they 

are nevertheless encouraging. The further development 

of the markets of relevance for Rieter depends 

mainly on consumer sentiment in Europe and North 

America, and on economic growth in the major 

Asian markets. If the market trend in recent months 

is confirmed, on a current view Rieter expects significant 

sales growth at group level in 2010 compared 

to 2009, primarily due to the very low level 

of sales in the first half of 2009. 

Despite the severe impact of the economics and financial 

crisis on business at both divisions, Rieter still had a 

sound balance sheet at the end of the year under review. 

Due to the restructuring measures it has initiated, 

Rieter will continue to lower the breakeven point 

in both divisions in the course of 2010 and is 

confident of achieving the turnaround in 2010, 

as already announced in the summer of 2009. 


Thanks 

The severe impact of the global economic and 

financial crisis and the steep decline in demand at 

both divisions faced the group, its employees and 

management with exceptional challenges in the 

2009 financial year. The Rieter workforce and 

employee representatives therefore deserve special 

thanks and also appreciation for all their efforts. 

The Board of Directors wishes also to thank customers, 

suppliers and business partners, who have 

demonstrated in a difficult business environment 

that this severe test could be overcome through 

close partnership and committed effort. The 

Board’s thanks go also to the shareholders for the 

confidence they have shown in Rieter during this 

challenging year. 

Winterthur, March 17, 2010 

Erwin Stoller This E. Schneider 

Chairman Vice-Chairman 

of the Board of Directors of the Board of Directors

10 Rieter-Konzern Rieter Group . Annual . Geschäftsbericht Report 2009 2009 . Rieter . Abschnitt Textile Systems 

Divisional chief 

executive 

Peter Gnägi 

Orders received 

510.8 (539.5) 

million CHF 

Sales 

532.0 (1 120.4 ) 

million CHF 

Operating result before 

interest and taxes 

– 73.6 (– 49.5) 

million CHF 

Number of employees 

at year-end 

4 086 (4 741) 

Capital expenditure 

of tangible fixed 

assets 

5.5 (53.2) 

million CHF 

Products 

Components, machines 

and systems for producing 

yarns from natural 

and man-made 

fibers and their blends. 

(Previous year’s figures are in 

brackets.) 

Rieter Textile Systems: 

Market revival in the second half of the year 

Following the steep downturn that had already been 

the dominant feature of the global market for textile 

machinery in the previous year, demand continued 

to weaken further in 2009. The level of new orders 

received by Rieter Textile Systems declined by 5% 

(3% in local currencies) in the year under review as 

a whole, increased however in the second half of the 

year by almost 70%. The slight recovery starting in 

the second quarter of 2009 continued until yearend. 

Sales revenues were significantly lower due to 

the slump in order intake in the previous year and 

at the beginning of 2009; the decline in the year 

under review amounted to 53%. Implementation of 

the program initiated in 2008 to adjust structures 

to market trends and capacities to sales volume continued 

in 2009 at a faster pace. The Textile Division 

thus succeeded in substantially reducing losses in 

the second half of the year. In 2009 Rieter Textile 

Systems focused on expanding its presence in the 

large Asian markets and on innovations mainly designed 

to meet the specific needs of this region. 

In December 2009 Rieter signed a contract to sell 

Rieter Perfojet in France to the Austrian Andritz 

Group. Rieter Textile Systems will thus now concentrate 

its efforts on the promising core business with 

staple fiber machinery and the related technology 

components and service offerings. 

Adjustments to the prevailing market 

environment 

The world market for textile machinery, which had 

already been weakening since the fourth quarter of 

2007, suffered a massive slump as of March 2008, 

and this bottomed out in the first quarter of 2009. 

There were structural and cyclical reasons for this 

In 2009 Rieter Textile Systems focused consistently on 

expanding its presence in the large Asian markets and 

on innovations designed to meet the specific needs of 

this region. 

downturn. On the one hand it marked the end of an 

investment boom to expand spinning capacity that 

had been fueled additionally in many markets by 

government stimulus programs. At the same time 

the consequences of the economic and financial crisis 

further reinforced the downswing. These resulted 

in a decline in textile consumption in the US and 

Europe and high yarn inventories in spinning mills 

worldwide. The rather better performance of the 

domestic markets in the major textile countries of 

China and India was insufficient to offset this trend. 

Rieter Textile Systems had initiated a program of realignment 

to the new market conditions at an early 

stage in 2008. This continued to be implemented in 

the year under review and was stepped up. In order 

to minimize the impact of the cyclical decline in volume 

on profit performance, Textile Systems worked 

intensively on action to cut costs and enhance productivity. 

Personnel-related measures, such as the 

utilization of flexible working-time models, shorttime 

working and reductions in workforce numbers 

were prepared and implemented in close cooperation 

with employee representatives. The restructuring 

programs were on track at the end of 2009 and 

the cost savings budgeted for that point in time had 

been achieved. Alongside this, Textile Systems realigned 

its organization with the structural changes 

in the industry. The division combined the structures 

and functions of sites in order to lower the 

breakeven point substantially. Textile Systems is 

aiming for better customer proximity, greater cost 

efficiency and shorter decision-making lines with 

a new, leaner organization. These efforts have resulted 

in a further reduction in the workforce affecting 

all levels. 

Innovations for long-term development 

of the business 

Rieter Textile Systems worked purposefully on the 

further development of its product range in 2009 in 

order to maintain its good market position and 

be well-placed to benefit from the next upswing although 

projects were reviewed and prioritized in 

light of the adverse market conditions. Rieter aims 

to help customers gain a competitive edge with novel 

types of yarn and also through higher productivity 

of their installations, optimum utilization of raw 

material and energy efficiency.

Rieter Textile Systems attached particular importance 

to innovations that take the needs of the large 

Asian markets into account. Rieter has had success 

in this respect with the G 312 ring spinning machine, 

which is manufactured in India for the local 

market and was launched in the year under review 

(see illustration on page 13). 

In 2009 Rieter released a machine manufactured in 

China for sale on the local market – the A 11 blowroom 

machine. The localization process completed 

within a relatively short time can serve as a model 

for further localizations of machines for China. 

Rieter aims to help customers gain a competitive edge 

with novel types of yarn and also trough higher productivity 

of their installations. 

The innovative J 10 airjet spinning machine was 

released for sale in selected markets in 2009. The 

main advantage of J 10 technology is apparent in 

the structure of the yarn for downstream processing 

and the textile end product. Airjet spinning is the 

most productive of all known spinning processes, 

and this is coupled with comparatively low energy 

consumption. With the introduction of the airjet 

spinning machine Rieter now offers four spinning 

technologies from a single source: ring spinning, 

compact spinning, rotor spinning and airjet spinning. 

Rieter can therefore take a neutral standpoint 

in recommending and delivering the spinning system 

that is best suited to the customer’s needs. 

Customers also benefit from the fact that Rieter, as 

a supplier of products and services for the entire 

spinning process, is also very familiar with the requirements 

of upstream and downstream processes 

and machines. 

In 2009 Rieter also worked on localization solutions 

for Asia and specific innovations for these 

markets in the technology components business. 

For example, the market-leading Elite compact spinning 

system has been adapted for use on the Indian 

D 312 ring spinning machine. Since existing ring 

spinning machines can also be upgraded to compact 

Rieter Group Rieter-Konzern . Annual Report . Geschäftsbericht 2009 . Rieter 2009 Textile . Abschnitt Systems 11 

spinning machines with Elite, Rieter has optimized 

the Elite system for use with local cotton varieties in 

China and India. 

Global presence expanded further 

In the year under review Rieter Textile Systems 

expanded step by step both manufacturing facilities 

and engineering services in India and China with 

a view to meeting the needs of customers in Asia although 

numerous projects could not yet be implemented 

in full due to the economic situation. In China 

in particular, Rieter also made good progress in 

the procurement process with local suppliers aimed 

at ensuring that the high quality synonymous with 

the Rieter brand is maintained at fair market prices. 

Rieter is also working intensively toward achieving 

this in India and thus being able to profit from local 

demand. 

Rieter Textile Systems seeks to attain its strategic 

goal of being the leading supplier of products and 

services for the spinning process as a whole through 

the ongoing development of market-conform machinery 

and components as well as local manufacturing 

for Asia. Further effort is necessary to achieve 

this, but Rieter is well positioned as an innovation 

driver that will soon also be capable of assuming 

the leading position as a supplier of integrated systems 

in the growth markets.

« 

With the innovative Rieter-Ultra-Silent underbody 

panels we support our customers in achieving their goals 

in regard to acoustics, weight and CO2 reduction.» 

Martin Hintermann, Manager Product Line Exterior 

(European Development Center), Sevelen, Switzerland

« 

The close cooperation with Rieter during the market 

launch and testing phase of the new locally produced 

ringspinning machine creates confidence, trust and the 

potential for future-oriented solutions.» 

Dhairyasheel Pawar, Managing Director of Maruti Cotex Ltd, India

14 Rieter-Konzern Rieter Group . Annual . Geschäftsbericht Report 2009 2009 . Rieter . Abschnitt Automotive Systems 

Divisional chief executive 

Wolfgang Drees 

Sales 

1 424.3 (2 022.1) 

million CHF 

Operating result before 

interest an taxes 

– 105.1 (– 251.0) 

million CHF 

Number of employees 

at year-end 

8 600 (9 878) 

Capital expenditure of 

tangible fixed assets 

56.2 (85.3) million CHF 

Products 

• Systems and components 

for vehicle 

acoustics and thermal 

management (including 

carpet and trunk 

systems, engine 

bay and underbody 

systems) 

• Services in the fields 

of acoustics and 

thermal management 

(Previous year’s figures are in 

brackets) 

Rieter Automotive Systems: 

Higher sales in the second half of the year 

The automotive industry in Rieter Automotive Systems’ 

main markets, Europe and North America, has 

been experiencing a severe slump in vehicle output 

since autumn 2008. This trend continued to define 

the division’s business performance in the year under 

review. Sales revenues were 30% lower than in 

2008 (26% lower in local currencies). The decline 

was especially pronounced in the first half of 2009; 

slightly improved market conditions had a positive 

impact on the trend of business at Rieter in the second 

six months. The actions that were initiated in 

2008 and continued to be implemented in 2009 to 

adjust structures to the changes in the market environment 

and the additional cost cutting enabled 

Automotive Systems in the second half of the year 

to significantly reduce losses at the operating level. 

In 2009 the division secured important orders from 

vehicle manufacturers, primarily for underbody 

modules and acoustic systems for the passenger 

compartment. Automotive Systems is therefore well 

placed to maintain and selectively expand its strong 

market position in future. 

Market developments and the trend of business 

Automobile production worldwide was 13% lower 

in 2009, declining from 67.4 to 58.6 million vehicles. 

Production shrank drastically again in 2009 as a 

whole, primarily in the traditional main markets. An 

absolute low point was registered in North America 

in the first half of the year, but output increased 

substantially in the second six months. This was due 

on the one hand to the scrappage premiums introduced 

to stimulate vehicle sales, and on the other to 

In 2009 the division secured important orders from 

vehicle manufacturers, primarily for underbody modules 

and acoustic systems for the passenger compartment. 

manufacturers reducing excess inventories in the 

first six months of the year. Automobile output in 

North America was 32% lower in 2009 as a whole, 

after already suffering a decline of 16% in the previous 

year. Government economic stimulus programs 

in Europe also had a positive impact on some markets, 

mainly in the small car segment. Overall auto- 

mobile output in Europe was 20% lower, following 

a 10% decline in the previous year. The downturn 

was even more dramatic in the commercial vehicle 

sector, where output plunged by more than 50%. 

The trend in vehicle output in large emerging economies 

was significantly better. China’s automobile 

production grew by some 50% and India’s by some 

17%. Output in Brazil was maintained at almost the 

high level of previous years. 

Automotive Systems succeeded in maintaining its 

strong position and expanding it in major markets in 

this difficult business environment. The division 

achieved this with a product range that ideally met 

customers’ demands for enhanced comfort, lower 

weight and reduced CO 2 emissions through innovative 

thermo-acoustic systems. Automotive Systems 

was also able systematically to exploit the weakness 

of some competitors and secure additional orders. 

In 2008 Automotive Systems had launched a program 

aimed at the sustainable improvement of its 

product cost and the division continued to implement 

this in the year under review. This includes 

improved utilization of material, strict purchasing 

management and enhanced productivity. Rieter 

is also reducing manufacturing capacity and the 

number of plants operated in Western Europe and 

North America in a multi-year restructuring program, 

and transferring production to countries 

where costs are lower. This will enable Rieter to 

achieve an overall increase in its cost position, and 

also follow its customers in establishing new markets. 

This program is largely complete in the USA 

and had the positive impact expected in 2009. 

Innovations for the long-term development 

of the business 

Within the confines of its financial resources Rieter 

Automotive Systems focused very closely on product 

and process innovations under the heading of “cost 

down – value up”. With its combination of know-how 

in acoustics and thermal management, Rieter Automotive 

Systems has unique expertise for the automotive 

industry at its disposal. Rieter can therefore 

make a major contribution toward overcoming the

challenges facing its customers today. For example, 

vehicle manufacturers are being forced by EU directives 

to produce lighter vehicles in order to achieve 

significant reductions in the CO 2 emissions of their 

fleets. With the Rieter Ultra Silent fiber technology 

launched in the previous year Rieter can supply 

products featuring low weight, high rigidity and 

very good acoustic effectiveness, and as a mono material 

these are totally recyclable. Rieter achieved 

the breakthrough with this innovative solution in 

2009 by securing orders for first-time applications 

in the underbody segment. The qualities of Rieter 

Ultra Silent convinced not only customers, but also 

the jury of the automotive industry’s renowned PACE 

Awards (Premier Automotive Suppliers Contribution 

to Excellence), which has nominated this innovation 

The jury of the renowned PACE Awards has nominated 

this innovation as a finalist for the year 2010. 

as a finalist for the PACE Award 2010. All automotive 

manufacturers are investing in the development 

of new drive concepts to reduce fuel consumption 

and CO 2 emissions. Innovative solutions in acoustic 

and thermal management – Rieter Automotive’s two 

core competencies – are especially in demand in 

this context. 

Expanding activities in growth markets 

In the year under review Rieter Automotive Systems 

re-examined and prioritized its expansion moves 

in the growth regions against the backdrop of a difficult 

economic environment. Rieter nevertheless 

succeeded in completing the most important projects. 

Rieter is following major customers in pursuing 

new projects, especially in emerging markets in 

the Asia region. In China the division already has 

three manufacturing facilities and a development 

center with an acoustic laboratory. In India a second 

plant was built in 2009, and together with our 

long-term partner Nittoku this will supply Asian 

manufacturers in the country. It is located in the 

Chennai region and will commence volume production 

in spring 2010. The first components for customer 

projects have been delivered in volume on 

Rieter Group Rieter-Konzern . Annual Report . 2009 Geschäftsbericht . Rieter Automotive 2009 . Abschnitt Systems 15 

schedule from the new plant in Daegu (Korea). Rieter 

Automotive has also reinforced manufacturing operations 

in Eastern Europe, especially at its locations 

in the Czech Republic and Poland.

16 Rieter-Konzern Rieter Group . Annual . Geschäftsbericht Report 2009 2009 . Sustainability . Abschnitt 

Sustainability 

Rieter is convinced that acting sustainably is a crucial 

factor for long-term business success. In this 

context environmentally compatible products and 

processes as well as the safety of employees and 

the local population are priority concerns. Both divisions 

also strive to ensure that the environmental 

impact of their products throughout their life cycle 

is as small as possible. The choice of base materials, 

the optimization of material and energy consumption 

and the integration of safety and environmental 

aspects in research and development activities play 

a major role in this. 

All ecologically relevant data are collected and analyzed 

in the SEED (Social, Economic and Environmental 

Data) electronic database in both divisions. 

The results are published on the www.rieter.com 

website under the heading of “Environmental 

Report”. 

The environment 

Rieter products already make a major contribution 

toward sustainable development. Here are some 

representative examples specific to the divisions: 


Automobile manufacturers impose high ecological 

standards on their component suppliers and verify 

compliance with them. Rieter responds with continuous 

innovation. 

Requirement: lower fuel consumption and 

CO 2 emissions 

Response: reduced vehicle weight 

Rieter Ultra Silent (RUS) is a fiber-based technology 

for lightweight underbody modules and engine 

undershields. A weight saving of 2.7 kg (45%) per 

vehicle can be achieved for an underbody module. 

The PACE (Premier Automotive Suppliers Contribution 

to Excellence) Award jury nominated RUS as 

a finalist for this acclaimed international innovation 

award for 2010. 

Rieter Ultra Light (RUL) is a technology for manufacturing 

lightweight acoustic products. Acoustic packages 

14 kg lighter result in a 0.5% reduction in fuel 

consumption and lower CO 2 emissions. Since its 

market launch RUL has prevented 6.6 million tonnes 

of CO 2 emissions. 

Requirement: manufacture of resource-conserving 

products 

Response: use of recyclable material 

Rieter Ultra Silent consists of glass-free PET and is 

100% recyclable. 

Rieter Ultra Light consists to 80% raw materials 

without mineral oil and is also readily recyclable. 

Requirement: keep the environmental impact of 

products low throughout their life cycle 

Response: Life Cycle Assessment 

“Life Cycle Assessments” (LCAs) enable Rieter to analyze 

the different stages of a product’s life and develop 

improvements. Raw material, production and 

service during the product’s lifetime and its disposal 

are analyzed. LCAs were conducted on biomaterials 

and recyclable materials and on RUS in the year 

under review. The analysis of biomaterials was concerned 

with their use for automobile carpets, for example. 

The eco-balance was favorable in the case 

of RUS: in comparison with the predecessor material 

it enables 35% weight savings and up to 14% higher 

energy efficiency to be achieved. CO 2 emissions can 

also be reduced by 25% and NOx emissions by 15%. 


Rieter reduces the energy consumption of textile 

machinery and existing in-house production lines 

by optimizing products and processes. The energyefficient 

drive systems of Rieter products enable 

customers to achieve higher production performance 

with the same energy input. 

Requirement: reduced energy consumption 

Response: more energy-efficient spinning machinery

In 2009 Rieter added the RSB-D 22 double-head 

autoleveler drawframe to its machinery offering. 

This machine features two completely independent 

drafting and autoleveling systems. However, many 

components are utilized jointly in the interests of 

energy and cost optimization. For example, energy 

consumption can be reduced by some 10% per kg 

of sliver by using a common extraction system. 

Requirement: reduced waste/hazardous waste; 

recycling 

Response: reduced environmental impact when 

manufacturing technology components; recycling 

of processing waste. 

Rieter has invested in a new, environmentally 

friendly surface treatment process which no longer 

produces hazardous waste during the manufacture 

of technology components in Winterthur. 

Slurry produced during the grinding process at the 

Winterthur site, which previously had to be disposed 

of as hazardous waste, is delivered to Swiss 

foundries as recyclable material. Rieter delivered 

some 20 tonnes of grinding swarf in 2009. 

Social aspects 

Industrial safety 

Rieter attaches great importance to a safe and 

healthy working environment. In 2009 Automotive 

Systems launched a new campaign to call attention 

to 14 important rules of conduct in the fields of 

environment, safety and health. Management has 

undertaken to bring up these rules of conduct at 

meetings and conduct training for personnel. 

Rieter expanded its existing audit system in the year 

under review. In addition to fire safety, the risk of 

damage caused by natural hazards and business interruptions, 

the topics of the environment and industrial 

safety were analyzed in greater depth. The 

department responsible regularly conducts the relevant 

audits in both divisions together with an external 

partner and initiates any necessary action. 

Rieter-Konzern Rieter Group . Annual . Geschäftsbericht Report 2009 2009 . Sustainability . Abschnitt 17 

Jobs and personnel 

Rieter had to continue adjusting capacity in the year 

under review due to the weak market environment 

and the steep decline in sales since 2008. Various 

measures were pursued further in cooperation with 

local personnel representatives and the European 

Works Council in order to alleviate the consequences 

of the inevitable reduction in the workforce. The 

emphasis in 2009 was again on utilizing personnel 

turnover, transfers and early retirement so that 

Rieter could keep the number of redundancies on 

operational grounds as low as possible. 

Training 

Rieter has continued to invest in personnel training 

and development despite the difficult business situation. 

The facilities offered to personnel included 

in-house training and development courses. 

This year a group of Winterthur trainees again 

honed their entrepreneurial skills in their final year 

by managing their own company. In the “Creative 

Solutions” apprenticeship project, trainees in different 

occupations can independently design, produce 

and market metal household and garden products. 

In this way Rieter encourages young employees to 

act responsibly and think creatively. 

Rieter offers Indian apprentices a third and fourth 

year of training in the context of the VET (Vocational 

Education and Training) initiative launched two 

years ago by the Swiss-Indian Chamber of Commerce. 

A kind of twin-track system of vocational 

training already exists in India. This is now being 

developed further with appropriate elements taken 

from Swiss everyday work routines.

18 Rieter-Konzern Rieter Group . Annual . Geschäftsbericht Report 2009 2009 . Corporate . Abschnitt Governance 

Corporate Governance 

Transparent reporting creates the basis for trust. 

As a corporate group with an international scope 

which is committed to creating long-term values, 

the Rieter Group maintains high standards of corporate 

governance and pursues a transparent information 

policy vis-à-vis its stakeholders. 

The basis for the contents of the following chapter 

is provided by the Articles of Association of Rieter 

Holding Ltd. and the Management Regulations of 

Rieter. The structure of this report conforms to the 

corporate governance guidelines issued by the SIX 

Swiss Exchange and the pertinent commentaries. 

Unless otherwise stated, the data refer to December 

31, 2009. All information will be updated regularly 

on www.rieter.com/investors. Some data refer to 

the financial section of this Annual Report. The compensation 

report can be found from page 73 of the 

financial report. 

1 Group structure and shareholders 

Group structure 

Rieter Holding Ltd. is a company incorporated under 

Swiss law, with a registered office in Winterthur. 

The Rieter Group comprises the Textile Systems and 

Automotive Systems divisions, the Corporate Center 

and all companies controlled by Rieter Holding Ltd., 

including joint ventures. The divisions conduct their 

business within the framework of the internal management 

regulations and are responsible for profitability 

with reference to sales and capital employed. 

The heads of the divisions report to the Executive 

Chairman. Detailed segmental reporting can be 

found on pages 43 and 44. 

The Corporate Center comprises the central group 

specialist units. The Corporate Center supports the 

Board of Directors, the Executive Chairman and the 

Group Executive Committee in their management 

and supervisory functions. The CFO is Head of the 

Corporate Center and reports to the Executive 

Chairman. Some 90 companies worldwide belonged 

to the Rieter Group as of December 31, 2009. A list 

of the main companies can be found on pages 64 

and 65. The management organization of the Rieter 

Group is independent of the legal structure of the 

group and the individual companies. 

Notifiable shareholdings/cross-holdings 

As of December 31, 2009, Rieter was aware of 

the following shareholders with more than 3% of 

all voting rights in the company: 

• PCS Holding, Weiningen, Switzerland 

• Artemis Beteiligungen IV AG, Hergiswil, Switzerland, 

and Forbo International SA, Baar, Switzerland 

• First Eagle Investment Management LLC, 

Wilmington, USA, formerly called Arnhold and 

S. Bleichroeder Advisers LLC, New York, USA 

Refer to page 72 for details. 

There are no cross-holdings in which the interests 

exceed 3% of its own shares. 

2 Capital structure 

Share capital 

On December 31, 2009, the share capital of Rieter 

Holding Ltd. totaled 23 361 815 CHF. This is divided 

into 4 672 363 fully paid registered shares with a 

par value of 5.00 CHF each. The shares are listed on 

the Swiss Exchange (SIX), securities code 367144; 

ISIN CH0003671440; Investdata RIEN. Rieter’s 

market capitalization on December 31, 2009, was 

1 085 million CHF. Each share entitles the holder to 

one vote at general meetings of shareholders. Rieter 

has neither participation certificates nor dividendright 

certificates in issue. 

Rieter Holding Ltd. had neither authorized nor contingent 

share capital outstanding on December 31, 

2009. 

Changes in share capital 

The Annual General Meeting held on May 8, 2008, 

adopted a resolution to reduce the share capital by 

839 000 CHF to 21 415 280 CHF through the cancellation 

of 167 800 registered shares. These shares 

had been acquired in the context of the share buy-

ack program approved by the Board of Directors on 

September 7, 2007. 

On May 5, 2009, Rieter allotted to shareholders one 

shareholder’s option for each registered share held. 

11 shareholder’s options entitled the holder to purchase 

one new Rieter registered share at a price of 

120 CHF during the exercise period. 389 307 new 

Rieter registered shares had been purchased up to 

the end of the exercise period at 12.00 CET on 

May 29, 2009. This corresponds to 99.98% of the 

total. This transaction has further reinforced the 

capital base of Rieter Holding Ltd. with an inflow of 

46.7 million CHF. 

Restrictions on share transfers and 

nominee registrations 

Those persons who are entered in the shareholders’ 

register are recognized as voting shareholders. 

Rieter shares can be bought and sold without any 

restrictions. In terms of § 4 of the articles of association, 

entry in the register of shareholders can be 

denied in the absence of an explicit declaration that 

the shares are held in the applicant’s own name and 

for the applicant’s own account. There are no other 

registration restrictions. Shares held in a fiduciary 

capacity are not entered in the shareholders’ register. 

As an exception to this rule, Anglo-Saxon nominee 

companies are entered in the register if the 

company in question has concluded a nominee 

agree ment with Rieter. The nominee company exercises 

voting rights at the Annual General Meeting 

of shareholders. At Rieter’s request, the nominee is 

obliged to disclose the name of the person on 

whose behalf it holds shares. 

Convertible bonds and options 

Rieter Holding Ltd. has no convertible bonds or 

shareholders’ options outstanding. For details of the 

option plan for the Group Executive Committee, 

please refer to note 33 (page 61) in the notes to the 

consolidated financial statements. 

Rieter Group Rieter-Konzern . Annual Report . Geschäftsbericht 2009 . Corporate 2009 Governance 

. Abschnitt 19


3 Board of Directors 

Directors 

Pursuant to the articles of association, the Board 

of Directors of Rieter Holding Ltd. consists of no less 

than five and no more than nine members. In the 

Name Nationality Position Year of birth 

Erwin Stoller CH Executive 

Chairman 

Erwin Stoller (1947) 

• Chairman, Board member and Chairman 

since May 8, 2008, Chairman 

and Delegate of the Board of Directors 

(Executive Chairmain) since August 4, 

2009, term of office expires in 2011, 

Chairman of the personnel committee. 

• Swiss national. 

• Dipl. Masch. Ing. ETH Zurich; with 

Rieter since 1978, member of the 

Group Executive Committee from 

1992 to 2007, Head of Textile Systems 

Division from 1992 to 2002, Head 

of Automotive Systems Division from 

2002 to 2007, withdrawal from operating 

management as of December 31, 

2007. 

On the 

Board 

since 

Elected 

until 

Executive/ 

non-executive 

1947 2008 2011 executive (since 

August 4, 2009) 

This E. Schneider CH Lead Director 1952 2009 2012 non-executive 

Dr. Dieter Spälti* CH Member 1961 2001 2010 non-executive 

Dr. Jakob Baer* CH Member 1944 2006 2012 non-executive 

Michael Pieper CH Member 1946 2009 2012 non-executive 

Hans-Peter Schwald* CH Member 1959 2009 2012 non-executive 

Peter Spuhler CH Member 1959 2009 2012 non-executive 

* Members of the audit committee (Chairman: Dr. Jakob Baer). 

All seven members of the Board are members of the personnel committee (Chairman: Erwin Stoller). 

2009 financial year (since August 4, 2009), one 

member of the Board (Chairman) performed executive 

duties. 

This E. Schneider (1952) 

• Vice Chairman, Board member and 

Vice Chairman since 2009, Vice 

Chairman and Lead Director since 

August 4, 2009, term of office expires 

in 2012, member of the personnel 

committee. 


• Lic. oec. HSG; Chairman and CEO of 

the listed company SAFAA, Paris, 

from 1991 to 1993; Member of the 

Executive Board, Valora Group, as 

Managing Director of the canteen and 

catering division, from 1994 to 1997; 

Delegate of the Board of Directors and 

Vice President, Selecta Group, from 

1997 to 2002; Delegate of the Board 

of Directors and Chief Executive 

Offi-cer, Forbo Group since 2004. 

• Board member, Galenica SA, Berne; 

Chairman of the Board, Selecta AG, 

Muntelier.

Dr. Dieter Spälti (1961) 

• Board member since 2001, term of 

office expires in 2010, member of 

the audit committee, member of the 

personnel committee. 


• Dr. iur. University of Zurich; Partner, 

McKinsey, until 2001; Managing partner, 

Spectrum Value Management, 

Jona, since 2002. 

• Board member, IHAG Holding, Zurich; 

Board member, Holcim AG, Jona. 

Dr. Jakob Baer (1944) 

• Board member since 2006, term of 

office expires in 2012, Chairman of 

the audit committee, member of the 



• Dr. iur. University of Bern; CEO of 

KPMG Switzerland until 2004; independent 

consultant since October 1, 

2004. 

• Board member, Adecco S.A., 

Chéserex; Swiss Re, Zurich; Allreal 

Holding AG, Baar; Chairmain of the 

Board, Stäubli Holding AG, Pfäffikon, 

Schwyz; Board member of two not 

publicly listed companies. 

Michael Pieper (1946) 

• Board member since 2009, term of 

office expires in 2012, member of the 



• Lic.oec. HSG; owner and Chief Executive 

Officer of the Franke Group. 

• Chairman of the Board, Artemis Holding 

AG, Hergiswil and its subsidiaries 

and of the subsidiaries of Franke 

worldwide; Board member, Berenberg 

Bank (Schweiz) AG, Zurich; Hero AG, 

Lenzburg; Forbo Holding AG, Baar; 

Aval Tech Holding AG, Niederwangen. 

Rieter Group Rieter-Konzern . Annual Report . Geschäftsbericht 2009 . Corporate 2009 Governance . Abschnitt 21 

Hans-Peter Schwald (1959) 



audit committee, member of the personnel 

committee. 


• Lic.iur. HSG; Lawyer; Chairman and 

managing partner in the legal practice, 

Staiger, Schwald & Partner AG, Zurich, 

Berne and Basel. 

• Chairman of the Board, AVIA Association 

of Independent Importers of Petroleum 

Products, Zurich; Board member 

PCS Holding AG, Weiningen; Vice 

President of the Board of Directors, 

Stadler Rail AG, Bussnang; Board 

Member, Ruag Holding AG, Berne; 

Board member of other Swiss private 

stock companies. 

Peter Spuhler (1959) 





• Owner of Stadler Rail AG, Bussnang. 

• Chairman of the Board, Stadler Rail 

AG, Bussnang; Stadler Bussnang AG, 

Bussnang; Aebi-Schmidt Holding AG, 

Burgdorf, and of several other companies 

of Stadler Rail Group. Board 

member, Walo Bertschinger Central 

AG, Zurich. 

• Member of the National Council of the 

Swiss Parliament since 1999.


Cross-involvement 

There are no reciprocal appointments to the Board 

of Directors. 

Group Secretary 

Thomas Anwander, lic. iur., Head of Group Legal 

Services, Group Secretary of Rieter Holding Ltd., 

has been Secretary to the Board of Directors since 

1993; he is not a member of the Board of Directors. 

Election and term of office 

Elections to the Board of Directors are staggered 

and directors are elected for a term of office of three 

years. They retire at the Annual General Meeting following 

their 70th birthday. Nominations for election 

to the Board of Directors are made with due regard 

for the balanced composition of this body, taking industrial 

and international management and specialist 

experience into account. 

The Annual General Meeting held on April 29, 2009, 

elected Dr. Jakob Baer to the Board of Directors 

for a further term of office. Michael Pieper, This E. 

Schneider, Hans-Peter Schwald and Peter Spuhler 

were elected as new members of the Board of Directors. 

Dr. Ulrich Dätwyler and Dr. Peter Wirth did not 

stand for re-election to the Board at the end of their 

term of office. 

Dr. Rainer Hahn decided to resign from the Board 

of Directors on the date of the 2009 Annual General 

Meeting. 

The term of office of Dr. Dieter Spälti expires at 

the Annual General Meeting to be held on April 28, 

2010. He is standing for re-election. 

Internal organization 

The Board of Directors is responsible for supervisory 

management of the Rieter Group and the group 

companies. It exercises a supervisory function over 

the persons who have been entrusted with the management 

of the business. It takes decisions on all 

transactions assigned to it by law, the articles of association 

and the management regulations. It draws 

up the Annual Report, prepares the Annual General 

Meeting and makes the necessary arrangements 

for implementing the resolutions adopted by the 

Annual General Meeting. The Board of Directors 

has the following decision making authority: 

• composition of the business portfolio and strategic 

thrust of the group 

• definition of the group’s structure 

• election of the Executive Chairman 

• appointment and dismissal of the members of 

the Group Executive Committee 

• definition of authority and duties of the Chairman 

and the committees of the Board of Directors as 

well as the members of the Group Executive Committee 

• organization of accounting, financial control and 

financial planning 

• approval of strategic and financial planning, 

the budget, the annual financial statements and 

the Annual Report. 

• principles of financial and investment policy, 

personnel and social policy, management and 

communications. 

• signature regulations and allocation of authority 

• principles of internal auditing 

• decisions on investment projects involving 

expenditure exceeding 10 million CHF 

• issuance of bonds and other financial markets 

transactions 

• incorporation, purchase, sale and liquidation of 

subsidiaries 

The Board of Directors comprises the Chairman, the 

Vice Chairman and the other members. The directors 

allocate their responsibilities amongst themselves. 

The Board of Directors has also appointed its 

Chairman as Delegate of the Board of Directors (Executive 

Chairman). The Vice Chairman also acts as 

Lead Director. The Lead Director chairs the Board of 

Directors in assessing the performance of the Executive 

Chairman, deciding on his remuneration and 

other matters requiring separate discussion or decision-making. 

The Vice Chairman stands in for the 

Chairman in the latter’s absence. The Board of Directors 

has a quorum if a majority of members are 

present. Motions are approved by a simple majority. 

In the event of a tie, the Chairman has the casting

vote. The Board has formed an audit committee and 

a personnel/nominations committee to assist it in 

its work. However, decisions are made by the Board 

of Directors as a whole. 

Rieter’s Board of Directors has considerably increased 

the frequency of its meetings in response to 

the especially difficult business environment. The 

Board of Directors met for 11 regular meetings in 

the 2009 financial year. In addition a telephone 

conference of the whole Board was also held. The 

agendas for the Board meetings are drawn up by the 

Chairman. Any member of the Board can also propose 

items for inclusion on the agenda. The board 

usually makes an annual visit to one group location. 

The members of the Group Executive Committee 

also usually attend the meetings of the Board of 

Directors. They present the strategy as well as the 

results of their operating units and the projects 

requiring the approval of the Board of Directors. 

Once a year the Board of Directors holds a special 

meeting to assess its internal working methods and 

cooperation with the Group Executive Committee. 

The audit committee currently consists of three 

members of the Board. Its Chairman is Dr. Jakob 

Baer, the other members are Dr. Dieter Spälti and 

Hans-Peter Schwald. 

In the 2009 financial year none of the members 

of the audit committee performed executive duties. 

The Chairman is elected for one year. The audit 

committee meets at least twice a year. The Head of 

internal audit, representatives of the statutory and 

group auditors PricewaterhouseCoopers AG, the 

Executive Chairman and the CFO and other members 

of the Group Executive Committee and management 

as appropriate, also attend the meetings. 

The main duties of the audit committee are: 

• elaborating principles for external and internal 

audits for submission to the Board of Directors and 

providing information on their implementation 

Rieter Group Rieter-Konzern . Annual Report . Geschäftsbericht 2009 . Corporate 2009 Governance 

. Abschnitt 23 

• assessing the work of the external and internal 

auditors as well as their mutual cooperation and 

reporting to the Board of Directors 

• assessing the reports submitted by the statutory 

auditors as well as the invoiced costs. 

• reporting to the Board of Directors and assisting the 

board in nominating the statutory auditors and the 

group auditors for submission to the Annual General 

Meeting 

• considering the results of internal audits, approving 

the audit schedule for the following year, nominating 

the head of internal audit. 

• the Chairman of the audit committee is responsible 

for accepting complaints (whistle-blowing) in 

connection with the code of conduct (Regulations 

regarding Conduct in Business Relationships) 

The audit committee met for two regular meetings 

in 2009. The meetings lasted between half a day 

and a full day. All committee members attended all 

the meetings and regularly received the written 

reports of the internal auditors. 

Internal audit has been headed by Martin Strub, 

Certified Auditor, since 2008. 

Since Rieter’s Board of Directors has only seven 

members, the entire Board currently acts as the 

personnel committee/nomination committee. The 

Chairman of this committee is appointed by the 

Board of Directors. Erwin Stoller held this position 

in 2009. It stipulates the profile of requirements 

and the principles for selecting members of the 

Board of Directors and prepares the election of new 

members of the Group Executive Committee and 

their terms of employment. It establishes the principles 

for the remuneration of directors and top management 

at the Rieter Group, especially bonus programs, 

share purchase plans and option programs. 

The personnel committee is also informed about 

plans for Board of Directors and senior management 

succession and the relevant development plans.


The personnel committee met for one regular meeting 

in 2009. The meeting lasted half a day. All committee 

members attended all the meeting. The Lead 

Director chairs the personnel committee/nomination 

committee on issues regarding the Executive 

Chairman. 

Allocation of authority 

The Board of Directors delegates operational management 

of the business to the Executive Chairman 

of the Rieter Group. The members of the Group Executive 

Committee report to the Executive Chairman. 

The allocation of authority and cooperation between 

the Board of Directors, the Executive Chairman, the 

divisions and the Corporate Center are stipulated in 

the group management regulations. The Executive 

Chairman draws up the strategic and financial planning 

statements and the budget with the Group Executive 

Committee, and submits them to the Board 

of Directors for approval. He reports regularly on the 

course of business as well as on risks and changes 

in personnel at management level. In addition to periodic 

reporting, he is obliged to inform the Board 

of Directors immediately about business transactions 

of fundamental importance. 

Information and control instruments 

regarding the Group Executive Committee 

The Board of Directors receives from the Group Executive 

Committee a written monthly report on the 

key figures of the group and the divisions which provides 

information on the balance sheet, cash flow 

and income statements, capital expenditure and 

projects. The figures are compared with the budget, 

the previous year and competitors. The Board of 

Directors is also informed at each meeting about the 

course of business, important projects and risks. If 

the Board of Directors has to rule on major projects 

a written request is submitted to directors prior to 

the meeting. The projects approved by the Board of 

Directors are monitored in the context of special 

project controlling. Once a year the Board of Directors 

discusses the strategic plans drawn up by the 

Group Executive Committee and the financial plan 

for the group and the divisions. Financial statements 

for publication are drawn up twice a year. 

The members of the audit committee, the Executive 

Chairman, the CFO and appointed members of the 

management, receive the internal audit reports. 

Internal audit conducted 28 audits in 2009. The results 

were discussed in detail with the companies 

and divisions concerned, and appropriate measures 

have been initiated accordingly. The statutory auditors 

have access to the minutes of the meetings of 

the Board of Directors. 

Code of Conduct 

The Code of Conduct is an integral part of every 

employee’s contract of employment. The Code of 

Conduct is explained to employees in the individual 

units and is verified regularly in the context of internal 

audits and by additional audits. This code 

can be accessed on the Internet at www.rieter.com/ 

about-rieter-group.

4 Group Executive Committee 

Rieter Group Rieter-Konzern . Annual Report . Geschäftsbericht 2009 . Corporate 2009 Governance . Abschnitt 25 

The Group Executive Committee had three members on December 31, 2009: the heads of the two divisions 

and the CFO, who is head of the Corporate Center. 

Name Nationality Position Year of birth 

Peter Gnägi CH Head of the Division 

Textile Systems 

Urs Leinhäuser CH Chief Financial Officer and 

Head Corporate Center 

Wolfgang Drees DE Head of the Division 

Automotive Systems 

With Rieter 

since 

Member of 

the Executive 

Committee 

Current 

function 

since 

1954 1990 2002 2002 

1959 2003 2003 2004 

1953 2007 2008 2008 

Since the election of the Chairman Erwin Stoller as Executive Chairman on August 4, 2009, the members of the Group Executive 

Committee have been reporting directly to Erwin Stoller. In order to safeguard the principles of good corporate governance, 

This E. Schneider, Vice Chairman of the Board, has been elected Lead Director. Hartmut Reuter, CEO since 2002, has left the 

company. 

Peter Gnägi (1954) 

• Head of the Textile Systems Division. 


• Dipl. Masch. Ing. ETH Zurich. 

• From 1979 to 1982 Alusuisse AG, 

Zurich; from 1982 to 1990 Mettler Instrumente 

AG, Stäfa; most recently as 

Head Business Group Betriebsmittel; 

with Rieter since 1990, Head of the 

Spun Yarn Systems Business Group 

from 1998 to 2002, member of the Executive 

Committee of Rieter since 2002. 

• Member of the Executive Committee, 

Swissmem. 

Urs Leinhäuser (1959) 

• Chief Financial Officer (CFO) and 

Head of the Corporate Center. 


• Dipl. Betriebsökonom HWV. 

• From 1995 to 1999 Georg Fischer AG, 

most recently as Head of Finance and 

Controlling, Division Piping Systems; 

from 1999 to 2003 Chief Financial 

Officer of Mövenpick Holding; with 

Rieter since April 2003 as Head of 

Group Controlling and member of the 

Group Executive Committee, in his 

present function since January 2004. 

• Member of the Board, Burckhardt 

Compression Holding AG, Winterthur. 

Wolfgang Drees (1953) 

• Head of the Automotive Systems 

Division. 

• German national. 

• Master’s Degree in Mechanical 

Engineering, Technical University 

of Hanover. 

• From 1977 to 2005 Bosch Group in 

Germany, Switzerland and USA; since 

2002 member of the Executive Committee 

of Robert Bosch GmbH, in 

charge of chassis systems, electrical 

tools, thermal engineering and metals 

technology; with Rieter since January 

2007 as Head of Business Group 

Europe of Rieter Automotive Systems 

and deputy head of the division, in 

his present function since January 1, 

2008. 

• Member of the Board, Huber Packaging 

Group, Öhringen, Germany; 

Member of the Advisory Board, MSC- 

Gleichmann Unternehmensgruppe, 

Stutensee, Germany.


Management contracts 

There are no management contracts between Rieter 

Holding Ltd. and third parties. 

5 Remuneration report 

Content and process for specifying remuneration 

and equity participation programs 

Information on the remuneration of the Board of 

Directors and the Group Executive Committee can 

be found in the remuneration report from page 73. 

6 Shareholders’ participatory rights 

Voting restrictions 

Rieter imposes no voting restrictions. 

Statutory quorum 

General meetings of shareholders adopt resolutions 

with the absolute majority of voting shares 

represented. All amendments to the articles of 

association require at least a two-thirds majority 

of the votes represented. 

Calling general meetings of shareholders, 

drawing up the agenda, voting proxies 

General meetings of shareholders are called in writing 

by the Board of Directors at least 20 days prior 

to the event, with details of the agenda, pursuant to 

§ 8 of the articles of association, and are published 

in the company’s official publication medium (Swiss 

Official Commercial Gazette). 

Pursuant to § 9 of the articles of association, shareholders 

representing shares with a par value of at 

least 500 000 CHF can request the inclusion on the 

agenda of an item for discussion, with details of the 

relevant motions, by a closing date published by the 

company. Shareholders who do not attend general 

meetings personally can arrange to be represented 

by another shareholder, by the company or by the 

independent voting proxy. 

Entries in the shareholders’ register 

No entries are made in the shareholders’ register 

for ten days before and three days after the general 

meeting of shareholders. 

7 Change of control and defensive measures 

Obligation to submit an offer 

The legal provisions in terms of Art. 22 BEHG (Bundesgesetz 

über die Börsen und den Effektenhandel 

– Swiss Exchanges and Securities Trading Act) 

are applicable. This states that a shareholder or 

a group of shareholders acting in concert who 

hold more than 33 1 ⁄ 3 % of all shares must submit 

a takeover offer to the other shareholders. 

Change of control clauses 

There are no change of control clauses in contracts 

of employment and office. In the event of a change 

of control all outstanding options can be exercised 

immediately and all shares blocked in the context 

of the share purchase plan are released. 

8 Statutory auditors 

Duration of mandate and term of office 

of the lead auditor 

PricewaterhouseCoopers AG, Zurich (PwC), have 

been the statutory and group auditors of Rieter 

Holding Ltd. and the Rieter Group since 1984. Most 

of the companies in the Rieter Automotive Systems 

Division are audited by KPMG. Urs Honegger has 

officiated as lead auditor for the Rieter mandate at 

PwC since 2009. 

Audit fees and additional fees 

PwC, KPMG and other auditors charged the Rieter 

Group approximately 2.0 million CHF (2.9 million 

CHF in 2008) for services in connection with auditing 

the annual financial statements of the group 

companies and Rieter’s consolidated accounts in 

the 2009 financial year. PwC, KPMG and other auditors 

invoiced some 0.8 million CHF (1.3 million CHF 

in 2008) for additional services. 0.3 million CHF

(0.3 million CHF in 2008) of this total were for 

audit related services, and 0.5 million CHF (0.6 million 

CHF in 2008) for tax consulting. 

Supervisory and monitoring instruments 

regarding the auditors 

The audit committee of the Board of Directors 

makes an annual assessment of the performance, 

fees and independence of the statutory and group 

auditors. It submits a proposal to the Annual General 

Meeting regarding who should be elected as 

statutory auditors. Further information on auditing 

can be found in section 3. 

9 Information policy 

Rieter maintains regular, open communication with 

the company’s shareholders and the capital market. 

They are informed through the medium of letters 

to shareholders about the group’s annual financial 

statements and semi-annual results. In addition, 

shareholders and the capital market are informed 

via the media of material current changes and developments. 

Price-relevant events are publicized in 

accordance with the ad hoc publicity requirements 

of the Swiss Exchange (SIX). The Annual Report 

is available in printed form and on the Internet at 

www.rieter.com. Press releases for the public, financial 

and industrial media as well as presentations, 

share price and contact details are also available on 

this website. 

Interested parties may add their names to a mailing 

list available at www.rieter.com/en/subscription. 

Press conferences and meetings with financial analysts 

are held at least once a year. Rieter also cultivates 

dialogue with investors and the media at special 

events. 

Rieter Group . Annual Report 2009 . Corporate Governance 

The Board of Directors and the Group Executive 

Committee provide information on the annual 

accounts and the course of business at the company, 

as well as answering shareholders’ questions, at 

the Annual General Meeting. 

Important dates: 

• Annual General Meeting 2010 April 28, 2010 

• Semi-Annual Report 2010 August 11, 2010 

• Publication of sales 2010 

• Deadline for proposals 

regarding the agenda of 

January 28, 2011 

the Annual General Meeting February 22, 2011 

• Results press conference 2011 March 22, 2011 

• Annual General Meeting 2011 April 13, 2011 

Contacts for queries regarding Rieter: 

for investors and financial analysts: 

Urs Leinhäuser, CFO, Phone +41 52 208 79 55, 

Fax +41 52 208 70 60, investor@rieter.com 

for the media: 

Dr. Peter Grädel, Head Corporate Communications, 

Phone +41 52 208 70 12 

Fax +41 52 208 72 73, media@rieter.com 

27

Rieter Group . Annual Report 2009 . Financial report 

Financial report 

Consolidated financial statements 

30 Consolidated income statement and 

consolidated statement of comprehensive income 

31 Consolidated balance sheet 

32 Consolidated statement of cash flows 

33 Changes in consolidated equity 

34 Notes to the consolidated financial statements 

64 Significant subsidiaries and associated companies 

66 Report of the statutory auditor on 

the consolidated financial statements 

Financial statements of Rieter Holding Ltd. 

68 Income statement 

69 Balance sheet 

70 Notes to the financial statements 

77 Proposal of the Board of Directors 

78 Report of the statutory auditor 

on the financial statements 

Appendix 

80 Review 2005 to 2009 

29

30 Rieter Group . Annual Report 2009 . Consolidated income statement 

Consolidated income statement 

CHF million 

Sales (4) 1 956.3 3 142.5 

Sales deductions – 73.6 – 130.6 

Net sales 1 882.7 3 011.9 

Change in semi-finished and finished goods – 41.1 – 43.2 

Own work capitalized 4.9 3.0 

Corporate output 1 846.5 100.0 2 971.7 100.0 

Material costs – 885.1 – 48.0 – 1 440.8 – 48.5 

Employee costs (5) – 693.0 – 37.5 – 938.2 – 31.5 

Other operating expenses (6) – 349.3 – 18.9 – 466.9 – 15.7 

Other operating income 35.2 1.9 50.3 1.7 

Depreciation and amortization (7) – 140.9 – 7.6 – 153.7 – 5.2 

Operating result before special charges, interest and taxes – 186.6 – 10.1 22.4 0.8 

Special charges (8) 0.0 0.0 – 334.5 – 11.3 

Operating result before interest and taxes (EBIT) – 186.6 – 10.1 – 312.1 – 10.5 

Financial income (9) 4.7 10.0 

Financial expenses (10) – 29.6 – 74.7 

Result before taxes – 211.5 – 11.5 – 376.8 – 12.7 

Income taxes (11) – 6.0 – 19.9 

Net result – 217.5 – 11.8 – 396.7 – 13.3 

Attributable to shareholders of Rieter Holding Ltd. – 223.9 – 405.9 

Attributable to minority interests 6.4 9.2 

Earnings per share 

• average number of registered shares outstanding: 

4 392 808 (3 822 929 in 2008) CHF – 50.96 – 106.18 

Diluted earnings per share 

• average number of shares to calculate diluted earnings per share: 

4 392 808 (3 822 929 in 2008) CHF – 50.96 – 106.18 

* In % of corporate output. 

Consolidated statement of comprehensive income 

CHF million 2009 2008 

Net result – 217.5 – 396.7 

Currency effects 5.9 – 102.6 

Financial instruments available for sale: 

Change in fair value 54.1 – 50.8 

Realized results through income statement 0.3 42.6 

Income taxes – 19.9 0.4 

Total other comprehensive income 40.4 – 110.4 

Total comprehensive income – 177.1 – 507.1 

Attributable to shareholders of Rieter Holding Ltd. – 182.5 – 510.6 

Attributable to minority interests 5.4 3.5 

The notes on pages 34 to 65 are an integral part of the consolidated financial statements. 

Notes 

2009 

% * 

2008 

% *

Consolidated balance sheet 

CHF million Notes 

Assets 

December 31, 


December 31, 

2008 

Tangible fixed assets (13) 696.0 786.3 

Intangible assets (14) 23.0 30.2 

Other non-current assets (15) 164.0 107.9 

Deferred tax assets (11) 3.5 4.9 

Non-current assets 886.5 929.3 

Inventories (16) 266.0 361.3 

Trade receivables (17) 331.5 382.1 

Other receivables (18) 92.4 125.9 

Assets of disposal groups (29) 7.0 0.0 

Marketable securities and time deposits (19) 13.0 7.7 

Cash and cash equivalents (20) 217.7 282.6 

Current assets 927.6 1 159.6 

Assets 1 814.1 2 088.9 

Shareholders’ equity and liabilities 

Share capital (21) 23.4 21.4 

Share premium account (capital reserve) 27.5 27.5 

Group reserves 536.3 641.0 

Equity attributable to shareholders of Rieter Holding Ltd. 587.2 689.9 

Equity attributable to minority interests (22) 68.6 56.3 

Total shareholders’ equity 655.8 746.2 

Long-term financial debt (23) 140.7 128.8 

Deferred tax liabilities (11) 75.0 62.4 

Provisions (24) 182.2 226.8 

Other non-current liabilities 1.4 0.9 

Non-current liabilities 399.3 418.9 

Trade payables 226.8 268.5 

Advance payments by customers 63.3 74.3 

Short-term financial debt (23) 81.7 198.3 

Current tax liabilities 22.2 29.7 

Provisions (24) 174.3 153.7 

Other current liabilities (25) 177.3 199.3 

Liabilities of disposal groups (29) 13.4 0.0 

Current liabilities 759.0 923.8 

Liabilities 1 158.3 1 342.7 

Shareholders’ equity and liabilities 1 814.1 2 088.9 


Rieter Group . Annual Report 2009 . Consolidated balance sheet 

31

32 

Rieter Group . Annual Report 2009 . Consolidated statement of cash flows 

Consolidated statement of cash flows 

CHF million Notes 2009 2008 

Net result – 217.5 – 396.7 

Interest income (9) – 4.0 – 9.5 

Interest expenses (10) 27.6 21.1 

Income taxes 6.0 19.9 

Depreciation and amortization of tangible and intangible fixed assets 140.9 259.5 

Profit/loss on divestments, net (30) – 4.5 2.6 

Other non-cash income and expenses – 5.7 31.7 

Change in inventories 96.0 100.0 

Change in receivables 82.0 206.9 

Change in non-current provisions – 50.3 32.5 

Change in trade payables – 43.4 – 149.8 

Change in advance payments by customers and other liabilities 7.1 – 3.9 

Dividends received 0.8 0.5 

Interest received 4.0 9.5 

Interest paid – 23.2 – 19.7 

Taxes paid – 17.4 – 47.4 

Net cash from operating activities – 1.6 57.2 

Capital expenditure on tangible and intangible assets (13/14) – 61.7 – 140.9 

Proceeds from disposals of tangible and intangible assets 16.3 22.2 

Investments in financial assets – 10.3 – 14.6 

Proceeds from disposals of other tangible assets 6.0 5.4 

Purchase/sale of marketable securities and time deposits – 5.6 58.9 

Divestments of businesses (30) 22.1 41.7 

Acquisitions of businesses (31) 0.0 – 8.5 

Net cash used for investing activities – 33.2 – 35.8 

Shareholders’ options program 46.7 0.0 

Dividend paid to shareholders of Rieter Holding Ltd. 0.0 – 57.1 

Sale/purchase of own shares 56.0 – 51.8 

Capital increases by minority interests 16.2 0.0 

Dividends to minority interests – 9.3 – 7.3 

Repayments/proceeds of/from short-term financial debt – 134.9 37.7 

Proceeds from long-term financial debt 104.9 100.0 

Repayments of long-term financial debt – 107.4 – 12.7 

Net cash from financing activities – 27.8 8.8 

Currency effects – 2.3 – 5.1 

Change in cash and cash equivalents – 64.9 25.1 

Cash and cash equivalents at beginning of the year 282.6 257.5 

Cash and cash equivalents at end of the year 217.7 282.6 

The notes on pages 34 to 65 are an integral part of the consolidated financial statements.

Changes in consolidated equity 

CHF million 

Share 

capital 

Own 

shares 

Share 

premium 

account 

Valuation 

reserves 

Rieter Group . Annual Report 2009 . Changes in consolidated equity 

Retained 

earnings 

Total 

attributable 

to Rieter 

share- 

holders 

Attribut- 

able to 

minority 

interests 

Total consolidated 

equity 

At January 1, 2008 22.3 – 1.3 27.5 299.9 961.0 1 309.4 60.1 1 369.5 

Net result 0.0 0.0 0.0 0.0 – 405.9 – 405.9 9.2 – 396.7 

Total other comprehensive income 0.0 0.0 0.0 – 104.7 0.0 – 104.7 – 5.7 – 110.4 

Total comprehensive income 0.0 0.0 0.0 – 104.7 – 405.9 – 510.6 3.5 – 507.1 

Dividend of Rieter Holding Ltd. 0.0 0.0 0.0 0.0 – 57.1 –57.1 1 0.0 – 57.1 

Dividends to minority interests 0.0 0.0 0.0 0.0 0.0 0.0 – 7.3 – 7.3 

Share-based compensation 0.0 0.0 0.0 0.0 2.0 2.0 0.0 2.0 

Change in holding of own shares – 0.9 0.2 0.0 0.0 – 53.1 – 53.8 0.0 – 53.8 

At December 31, 2008 21.4 – 1.1 27.5 195.2 446.9 689.9 56.3 746.2 

Net result 0.0 0.0 0.0 0.0 – 223.9 – 223.9 6.4 – 217.5 

Total other comprehensive income 0.0 0.0 0.0 41.4 0.0 41.4 – 1.0 40.4 

Total comprehensive income 0.0 0.0 0.0 41.4 – 223.9 – 182.5 5.4 – 177.1 

Shareholder option program 2.0 0.0 0.0 0.0 44.7 46.7 0.0 46.7 

Capital increase by minority interests 0.0 0.0 0.0 0.0 – 22.9 – 22.9 16.2 – 6.7 

Dividends to minority interests 0.0 0.0 0.0 0.0 0.0 0.0 – 9.3 – 9.3 

Share-based compensation 0.0 0.0 0.0 0.0 1.8 1.8 0.0 1.8 

Change in holding of own shares 0.0 1.0 0.0 0.0 53.2 54.2 0.0 54.2 

At December 31, 2009 23.4 – 0.1 27.5 236.6 299.8 587.2 68.6 655.8 

1. 15.00 CHF per registered share. 

Valuation reserves include cumulative translation effects and after-tax valuation gains of 36.2 million CHF (1.7 million CHF in 

2008) on financial instruments available for sale. 


33

34 Rieter Group . Annual Report 2009 2007 . Financial Notes to the report consolidated financial statements 

Notes to the consolidated financial statements 

1 Summary of significant accounting policies 

Basis of preparation 

The principal accounting policies applied in preparing 

these consolidated financial statements are 

set out below. These policies have been consistently 

applied to all of the reporting periods presented, 

unless stated otherwise. 

The consolidated financial statements have been 

prepared in accordance with International Financial 

Reporting Standards (IFRS). The consolidated 

financial statements are based on historical costs, 

with the exception of financial instruments, which 

are measured at fair value. 

As of January 1, 2009, Rieter adopted IFRS 8 

“Operating Segments” for the first time. The adoption 

resulted in certain changes in the presentation 

of segment information but had no impact on 

the definition of the reportable segments. The 

adoption of IAS 1 revised led to the additional disclosure 

of a statement of comprehensive income. 

The adoption of the amendments of IFRS 7 led 

to an expanded disclosure of fair value measurements 

of financial instruments. The adoption of 

IAS 23 revised “Borrowing Costs” and the other 

new regulations had no material impact on the 

consolidated financial statements. 

Assumptions and estimates 

Financial reporting requires management to make 

estimates and assumptions that affect the reported 

amounts of assets, liabilities, contingent assets 

and contingent liabilities at the date of the financial 

statements, and reported amounts of revenues and 

expenses during the reporting period. Estimates 

and assumptions are periodically reviewed and 

relate primarily to the areas of asset impairment, 

pension plans, provisions and taxes. 

The most significant elements of estimates and 

assumptions are as follows: 

Tangible and intangible assets are tested for impairment 

whenever there are indications that, due to 

changed circumstances, their carrying value may 

no longer be fully recoverable. If such a situation 

arises, recoverable amount is determined on the 

basis of expected future cash flows, corresponding 

to either the discounted value of expected future 

net cash flows or the expected net selling price. 

If the recoverable amount is below the carrying 

amount, a corresponding impairment loss is recognized 

in the income statement. The main assumptions 

on which these measurements are based 

include growth rates, margins and discount rates. 

When assessing inventories, estimates for their 

recoverability that arise from the expected consumption 

of the corresponding item are necessary. 

The adjustments for the inventories are calculated 

for each item using a coverage analysis. The para- 

meters are checked annually and modified if necessary. 

Changes in sales or other circumstances 

can lead to the book value having to be adjusted 

accordingly. 

In order to measure liabilities and costs of employee 

benefit plans, it is first necessary to assess whether 

the plans are defined contribution or defined benefit 

plans. If they are defined benefit plans, assumptions 

are made for the purpose of estimating future 

developments related to the plan. These include 

assumptions made for the discount rates, the 

expected return on plan assets and future trends 

in wages and pensions. Statistical data such as 

mortality tables and staff turnover rates are used 

to determine employee benefit obligations. If these 

parameters change, the subsequent results can 

deviate considerably from the actuarial calculations. 

Such deviations can ultimately have an effect 

on the employee benefit obligation.

In the course of the ordinary operating activities of 

the Group, obligations from guarantee and warranty 

claims, restructuring and litigation can arise. Provisions 

for these obligations are measured on the 

basis of realistic estimates of the expected cash 

outflow. The outcome of these business transactions 

may result in claims against the Group that 

may be below or above the related provisions and 

that may be covered only in part or not at all by 

existing insurance coverage. 

Assumptions in relation to income taxes include 

interpretations of the tax regulations in place in 

the relevant countries. The adequacy of these 

interpretations is assessed by the tax authorities. 

This can result, at a later stage, in changes to tax 

expense. To determine whether tax loss carry-forwards 

may be carried as an asset requires judgement 

in assessing whether there will be future 

taxable profits against which to offset these loss 

carry-forwards. 

Scope and principles of consolidation 

The financial statements of Rieter Holding Ltd. and 

those group companies in which it has a controlling 

influence are fully consolidated. A controlling influence 

normally exists when more than 50% of the 

voting rights are owned, either directly or indirectly. 

Companies in which a 50% interest is held 

are also fully consolidated if Rieter exercises control, 

either by appointing management, by being 

the com pany’s main customer, or by integrating the 

company in the group’s customer services organization 

and product policies. Changes in the scope 

of consolidation are recognized on the date when 

control of the relevant business is transferred. 

Acquisitions are accounted for using the purchase 

method. Intercompany transactions are eliminated. 

Holdings of 20 to 49% are included in the consolidated 

financial statements using the equity method. 

Holdings of less than 20% are included in the 

balance sheet at fair value. The significant subsidiaries 

and associated companies are listed on pages 

64 and 65. 

Rieter Group . Annual Report 2009 . Notes to the consolidated financial statements 

Changes in the scope of consolidation 

The sale of the Rieter Real Estate Ltd. in Winterthur 

changed the scope of consolidation in the year 

under review. The impact of this transaction on the 

consolidated financial statements is shown in note 

30 (page 57). 

Foreign currency translation 

Items included in the financial statements of each 

group company are measured using the currency 

of the primary economic environment in which the 

company operates (“functional currency”). The 

consolidated financial statements are presented in 

Swiss francs, the functional and presentation currency 

of Rieter Holding Ltd. 

Transactions in foreign currencies are translated 

into the functional currency by applying the 

exchange rates prevailing on the date of the transaction. 

Foreign exchange gains and losses resulting 

from the settlement of such transactions and 

from the translation at year-end exchange rates of 

monetary assets and liabilities denominated in 

foreign currencies are recognized in the income 

statement. 

For consolidation purposes, items in the balance 

sheet of foreign group companies are translated at 

year-end exchange rates, while income statement 

items are translated at average rates for the period. 

The resulting currency translation differences are 

recognized in other comprehensive income and, in 

the event of an entity’s deconsolidation, transferred 

to the income statement as part of the gain 

or loss of the entity’s divestment or liquidation. 

35

36 


Tangible fixed assets 

Tangible fixed assets, including non-operational 

property, are stated at historical cost less accumulated 

depreciation, which is recognized on a 

straight-line basis over the estimated useful life 

of the asset. Historical cost includes expenditures 

that are directly attributable to the acquisition 

of the assets. 

Useful life is determined according to the expected 

utilization of each asset. The relevant ranges are as 

follows: 

Factory buildings/non-operational 

property 20–50 years 

Machinery and plant equipment 5–15 years 

Tools/IT equipment/furniture 3–10 years 

Vehicles 3–5 years 

The assets� residual values and useful lives are 

reviewed, and adjusted if appropriate, at each 

balance sheet date. An asset�s carrying amount is 

written down immediately to its recoverable 

amount if the asset�s carrying amount is greater 

than its estimated recoverable amount. 

Where components of more substantial assets 

have differing useful lives, these are depreciated 

separately. All gains or losses arising from the 

disposal of tangible assets are recognized in the 

income statement. Costs of maintenance and 

repair are charged to the income statement as 

incurred. 

Investment grants and similar subsidies are 

deferred and credited to the income statement on 

a straight-line basis over the expected useful life 

of the related asset. 

Leases 

Tangible fixed assets which are financed by leases 

giving Rieter substantially all the risks and rewards 

of ownership are capitalized. Assets held under 

such finance leases are depreciated over the shorter 

of their estimated useful life or the lease term. The 

corresponding lease obligations, excluding finance 

charges, are included in either short-term or longterm 

financial debt. Lease installments are divided 

into an interest and a redemption component. 

Lease arrangements in which a substantial portion 

of the risks and rewards associated with ownership 

of the leased asset remain with the lessor are 

classified as operating leases. Payments in respect 

of operating leases are charged to the income 

statement on a straight-line basis over the duration 

of the lease. 

Intangible assets 

Intangible assets such as product licenses, patents 

and trademark rights acquired from third parties 

are included in the balance sheet at acquisition cost 

and are amortized on a straight-line basis over 

a period of up to eight years. 

Research and development 

Research costs are recognized in the income statement 

as incurred. The development costs of major 

projects are capitalized only if the present value of 

future cash flows is likely to exceed the expected 

costs and sales are firm when costs are capitalized. 

Goodwill 

Goodwill represents the difference between the 

purchase price of an acquired company and the 

estimated market value of its net assets. It is capitalized 

on the date that control of the acquired 

company is assumed and carried in the currency 

of the relevant acquisition. Goodwill is considered 

to have an indefinite useful life and is subject to 

annual impairment testing. For this purpose goodwill 

is allocated to cash-generating units. The 

allocation is made to those cash-generating units 

that are expected to benefit from the business 

combination in which the goodwill arose. Gains 

and losses on the disposal of an entity include 

the carrying amount of goodwill relating to the 

entity sold. There was no goodwill in the balance 

sheet at December 31, 2009 and 2008.

Impairment of non-financial assets 

Intangible assets that have an indefinite useful life 

are not subject to amortization and are tested annually 

for impairment. Assets that are subject to amortization 

are reviewed for impairment whenever 

events or changes in circumstances indicate that 

the carrying amount may not be recoverable. 

An impairment loss is recognized for the amount 

by which the asset�s carrying amount exceeds its 

recoverable amount. The recoverable amount is the 

higher of an asset�s fair value less costs to sell or 

the asset�s value in use. 

Non-financial assets, other than goodwill, that 

suffered an impairment in the past are reviewed 

for possible reversal of the impairment at each 

reporting date. 

Financial assets 

Rieter classifies its financial assets in the following 

categories: 

Financial assets at fair value through profit or loss 

include financial assets held for trading and those 

which are classified as such at inception. Derivatives 

are also assigned to this category. Assets in this 

category are presented as current assets if they are 

either held for trading or are expected to be realized 

within twelve months after the balance sheet date. 

Loans and receivables are non-derivative financial 

assets with fixed or determinable payments that are 

not quoted in an active market. They are included 

in current assets, except for maturities greater than 

twelve months after the balance sheet, in which case 

they are presented as non-current assets. 

Held-to-maturity investments are non-derivative 

financial assets with fixed or determinable payments 

and fixed maturities, which management intends 

to hold to maturity. Rieter did not hold any investments 

in this category during 2009. 


Available-for-sale financial assets are non-derivative 

financial assets that are either classified as such or 

not assigned to any of the other categories. They are 

measured at fair value as of the balance sheet date. 

Changes in the value are recorded in share holders� 

equity prior to sale, and recognized in the income 

statement when they are sold. Any impairment in 

the value is charged to income. They are included 

in non-current assets unless management intends 

to dispose of them within twelve months of the 

balance sheet date. 

Derivative financial instruments 

Foreign currency risks are hedged by Rieter using 

forward foreign exchange contracts, currency options 

and cross-currency swaps. Hedge accounting within 

the meaning of IAS 39 is not applied. 

Derivatives are initially recognized at fair value on 

the date a derivative contract is entered into and are 

subsequently remeasured at each reporting date. 

The resulting gains and losses are recognized directly 

in the income statement. The corresponding positive 

and negative replacement values are recognized on 

the balance sheet as “other receivables” and “other 

current liabilities”, respectively. 

Inventories 

Raw materials and purchased goods are valued at 

the lower of average cost or net realizable value, 

while products manufactured in-house are stated 

at the lower of manufacturing cost or net realizable 

value. Valuation adjustments are made for slowmoving 

items and excess stock. 

Trade receivables 

Receivables are stated at original invoice value 

less allowances which are made for the difference 

between the invoiced amount and the expected, 

discounted payment. The allowances are established 

based on maturity structure and identifiable 

solvency risks. 

37

38 


Cash and cash equivalents 

Cash and cash equivalents include bank accounts 

and short-term time deposits with original maturities 

up to three months. 

Financial debt 

Financial debt is recognized initially at fair value, 

net of transaction costs incurred. Financial debt 

is subsequently stated at amortized cost. Any difference 

between the proceeds (net of transaction 

costs) and the redemption value is recognized in the 

income statement over the period of the obli gation 

using the effective interest method. 

Provisions 

If legal or constructive obligations are incurred as 

a consequence of past events, provisions are made 

to cover the expected outflow of funds. 

Current income taxes 

The expected tax charge is calculated and accrued 

on the basis of taxable income for the year. 

Deferred income taxes 

Deferred taxes on differences in amounts reported 

for group purposes and amounts determined for 

local tax purposes are calculated using the liability 

method; current local tax rates are applied for 

this purpose. Deferred tax assets and liabilities are 

offset to the extent that this is permitted by law. 

Changes in deferred taxes are recognized as tax 

expense. 

Deferred taxes on retained earnings of group 

companies are only accrued for in cases where 

a distribution of profits is planned. 

The tax impact of losses is capitalized to the extent 

that it appears probable that such losses will be 

offset in the future by temporary valuation differences 

or profits. 

Pension funds 

Employee pension plans are operated by certain 

subsidiaries, depending upon the level of coverage 

provided by the government pension facilities in 

the various countries in which they operate. Some 

of these are provided by independent pension 

funds. If there is no independent pension fund, the 

respective obligations are shown in the balance 

sheet under pension provisions. As a rule, pensions 

are funded by employees’ and employer’s contributions. 

Pension plans exist on the basis of both 

defined contributions and defined benefits. 

Pension liabilities arising from defined-benefit 

plans are calculated according to the projected unit 

credit method and are usually appraised annually 

by independent actuaries. If the actual assets and 

pension liabilities differ by more than 10% from 

the projected values, these actuarial gains or losses 

are posted to income on a straight-line basis over 

the remaining service life of the employees covered. 

In the case of defined contribution pension plans, 

the contributions are recognized as expense in the 

period in which they are incurred. 

Share-based compensation 

Share-based compensation to members of the Board 

of Directors, the Group Executive Committee and 

senior management is measured at fair value at the 

grant date and charged to employee costs. 

Revenue recognition 

Sales revenues arising from deliveries of products 

are recorded when benefit and risk pass to the 

customer. Sales revenues arising from services are 

recorded on completion of the service. Credits, 

discounts and rebates are deducted from gross 

proceeds, as well as sales deductions arising from 

actual or foreseeable defaults. 

Financing costs 

Borrowing costs that are directly attributable to 

the acquisition, construction or production of 

a qualified asset are capitalized as a part of the 

acquisition costs of the qualified asset. All other 

financial costs are recognized in the income statement.

2.1 Risk management process 

Standards that have been published 

but not yet applied 

The following new and revised Standards and 

Interpretations have been published and do not 

have to be applied for annual periods beginning 

before July 1, 2009. Rieter has not adopted any 

of these new regulations early as they are not 

expected to have a material impact on consolidated 

shareholders’ equity and net result when they 

come into force. IFRS 3 (revised), IAS 27 (revised), 

changes to IAS 39, IAS 24 (revised), IFRIC 17, 

IFRIC 18, changes to IFRS 2, changes to IAS 32, 

IFRIC 19, IAS 24 (revised), changes to IFRIC 14, 

IFRS 9. 

Rieter maintains an Internal Control System (ICS) 

with the objective of ensuring effectiveness and 

efficiency of operations, reliability of financial 

reporting and compliance with applicable laws and 

regulations. The Internal Control System is a significant 

component of the risk management system. 

The risk management process is regulated by the 

Group directive “Rieter Risk Management System”, 

issued by the Board of Directors on August 31, 

2001. The directive defines the main risk categories 

to be considered for risk management, the persons 

in charge of the various risks within the Group, and 

the workflows regarding identification, reporting 

and handling of risks. The directive further defines 

criteria for the qualitative and quantitative risk 

assessments, as well as thresholds for the reporting 

of identified exposures. 

Twice a year the Risk Council reviews the reported 

risks of the units concerned regarding their prob ability 

and relevance for the Group and any action 

required. In addition, the Risk Council reviews risk 

management activities in order to identify improvement 

requirements and opportunities. 


Market and business risks resulting from developments 

in the relevant markets and of the products 

offered therein are assessed as part of the strategic 

planning and the financial planning processes. On 

the other hand, these risks, as well as operational 

risks, are regularly dealt with at the monthly meetings 

within the divisions and with the Executive 

Chairman and the CFO. Other risks impacting actual 

perfor-mance against budget are also dealt with 

in these meetings in order to identify and implement 

corrective measures. Significant individual risks 

are included in the monthly reports to the attention 

of the Executive Chairman. 

Risks from acquisition or other significant projects 

are addressed as part of the project approval and 

project management. Such projects are monitored 

at the monthly meetings of the Executive Chairman 

and the CFO with the divisions, and reviewed quarterly 

to the attention of the Board of Directors. 

Specific risks are addressed by periodic reports. 

Such reports cover environmental and work safety 

risks at the various sites of Rieter, financial risks 

from sale transactions of the Textile Systems Division, 

treasury risks, and risks from legal actions and 

legal compliance. 

An aggregate review of all identified risks and 

of Rieter�s instruments and measures to cope with 

these risks is performed half-yearly. The review 

results are summarized annually to the attention 

of the Board of Directors. 

39

40 


2.2 Financial risk management tax result and retained earnings would have been 

Financial risk factors 

As a result of its worldwide activities, Rieter is 

exposed in principle to various financial risks, such 

as market risks (fluctuations in exchange rates, 

interest rates and stock market prices), credit risks 

and liquidity risks. Rieter’s financial risk management 

aligns on the aim to minimize the potential 

adverse impact of the development of the financial 

markets on the Group’s financial performance and 

secure its financial stability. This includes the use 

of derivative financial instruments to hedge certain 

risk exposures. 

Financial risk management is largely centralized 

for the Group in compliance with directives issued 

by the Board of Directors and the Group Executive 

Committee. Financial risks are centrally identified, 

evaluated and hedged in close cooperation with 

the Group’s operating units. Risks are monitored by 

means of a risk reporting system. 

Foreign exchange risk 

Foreign exchange risks arise from net investments 

in foreign subsidiaries (translation risk) and when 

future business transactions or recognized assets 

and liabilities are denominated in a currency other 

than the functional currency of the entity concerned 

(transaction risk). To hedge such transaction risks, 

subsidiaries use forward contracts and currency 

options, contracted usually with corporate headquarters. 

The net position in each foreign currency 

is then subsequently managed through currency 

contracts with third parties. 

The Rieter Group is primarily exposed to foreign 

exchange risks versus the euro and the US dollar. 

Assuming that the euro had been 5% stronger 

versus the Swiss franc at December 31, 2009, with 

all other variables held constant, the Group’s aftertax 

result and retained earnings would have been 

12.3 million CHF higher (5.6 million CHF higher 

in 2008). If the US dollar had been 5% stronger 

versus the Swiss franc at December 31, 2009, with 

all other variables held constant, the Group’s after- 

1.9 million CHF higher (1.8 million CHF higher 

in 2008). If the reverse had been the case, the 

Group’s after-tax result and retained earnings would 

have been the same amount lower. This would 

mainly have been due to exchange gains/losses on 

trade accounts receivable and payable. 

The Group’s internal cash netting and pooling 

system reduces the currency risks on liquid funds. 

The companies’ cash holdings with banks are 

denominated mostly in the relevant local currency. 

The translation risks of cash deposits in foreign 

currencies are reviewed periodically. 

Interest rate risk 

With the exception of cash and cash equivalents 

Rieter held no material interest-bearing assets 

during the year, so both income and cash flow from 

operations are largely unaffected by changes in 

market interest rates. 

However, interest rate risks can arise from interestbearing 

financial debt. Financial debt with variable 

interest rates expose the Group to interest rate 

related cash flow risks, while fixed-rate financial 

debt represents a fair-value interest rate risk. 

No interest rate hedges are in place at present. 

Cash flow sensitivity analysis: A one percentagepoint 

increase in interest rates would have reduced 

net results and retained earnings by 1.8 million CHF 

(1.8 million CHF in 2008). Fair-value sensitivity 

analysis: Market value fluctuations of fixed interest 

financial debt are not recognized in the income 

statement and have no impact on net results.

Price risk 

Holding shares and options exposes Rieter to a risk 

of price fluctuation. To reduce this risk, the Group 

reduced its portfolio significantly. Since the Group 

has no material securities at the end of 2009, no 

sensitivity analysis of fair-value risk is disclosed. 

Credit risk 

Credit risks arise from deposits and financial 

derivatives held with financial institutions and 

from trade accounts receivable. Relationships 

with financial institutions are only entered into 

with counterparties rated no lower than “A” by 

S&P. In the Textile Systems Division credit risks 

on trade receivables are usually hedged by means 

of insurance, advance payments, letters of credit 

or other instruments. The Automotive Systems 

Division maintains business relationships with all 

significant automotive manufacturers and, compared 

to the industry sector, has a geographically 

broad, diversified customer portfolio. No customer 

accounted for more than 11% (11% in 2008) of 

the division’s sales. In the course of the financial 

restructuring measures at the US automotive manufacturers, 

Rieter has also benefited in the first half 

of 2009 from a receivables guarantee program. 

A corresponding insurance premium was paid. 


Liquidity risk 

Rieter’s liquidity risk management includes holding 

adequate reserves of liquid funds and time deposits, 

the option of financing requirements via an appropriate 

level of credit lines, and basically the ability 

to place issues on the market. In light of the dynamic 

nature of the business environment in which the 

Group operates, its goal is to ensure its financial 

stability and retain the necessary flexibility in 

financing operations by generating free cash flow 

and maintaining adequate unutilized credit lines. 

Therefore in March 2009 Rieter and a group of 

banks concluded a loan agreement for medium- and 

longer-term financing. In addition to securing and 

expanding existing credit lines for the ongoing business, 

this agreement also established the financial 

preconditions for implementing the restructuring 

program. 

41

42 Rieter Group . Annual Report 2009 . Notes to the consolidated financial statements 

The table below shows the contractual maturities of the Group’s financial liabilities (including interests): 

Financial liabilities December 31, 2009 

CHF million 

Capital management 

The capital managed by the Group corresponds 

with the consolidated equity. Rieter’s objectives in 

terms of capital management are to safeguard the 

Group’s financial stability and the ability to continue 

as a going concern in order to continue to provide 

returns for shareholders and benefits for other stakeholders, 

as well as to maintain an optimal capital 

structure. The equity ratio is currently about 36%. 

As an industrial Group, Rieter strives to have a 

strong balance sheet with an equity ratio of at about 

35%. In order to maintain or change the capital 

structure the Group may adjust dividend payments 

to shareholders, return capital to shareholders, 

issues new shares or dispose of assets in order to 

reduce debt. 

On February 22, 2009, the sale of 420 000 Rieter 

treasury shares to PCS Holding AG in Weinigen 

(Switzerland) led to a cash inflow of 55.9 million 

CHF. On May 5, 2009, Rieter alloted to the shareholders 

one shareholders’ option for each share 

Carrying 

amount 

Contractual 

cash flows 

Within 

1 year 

In 1 to 5 

years 

In 5 or 

more years 

Total 

cash-flow 

Bank debt 188.1 84.3 124.9 0.0 209.2 

Finance leasing obligations 4.6 1.1 3.8 0.5 5.4 

Other financial debt 29.7 1.3 39.3 1.6 42.2 

Negative replacement values of 

derivative financial instruments 0.5 0.5 0.0 0.0 0.5 

Trade payables 226.8 226.8 0.0 0.0 226.8 

Financial liabilities December 31, 2008 

CHF million 

Carrying 

amount 

Contractual 

cash flows 

Within 

1 year 

In 1 to 5 

years 

In 5 or 

more years 

Total 

cash-flow 

Bank debt 317.4 206.5 141.0 0.0 347.5 

Finance leasing obligations 6.0 1.3 5.3 0.2 6.8 

Other financial debt 3.7 2.3 1.8 0.0 4.1 

Negative replacement values of 

derivative financial instruments 3.4 3.4 0.0 0.0 3.4 

Trade payables 268.5 268.5 0.0 0.0 268.5 

held. Eleven shareholders’ options entitled the 

holder to purchase one new Rieter share at 

a price of 120 CHF. Up to May 29, 2009 (the end 

of the purchase period) 389 307 new Rieter 

shares were purchased, which led to a cash inflow 

of 46.7 million CHF. 

Since March 20, 2009, the Group is subject to 

externally imposed minimum requirements 

regarding equity and free cash flow. These minimum 

requirements have been complied with 

and compliance is monitored permanently.

3 Segment information by division 


Segment information is based on the Group‘s organization and management structure and the internal 

financial reporting to the Chief Operating Decision Maker. The Chief Operating Decision Maker of Rieter is 

the Board of Directors of Rieter Holding AG. The Group consists of the two reportable segments Textile 

Systems and Automotive Systems. There is no aggregation of operating segments. Textile Systems develops, 

produces and sells machinery, components and systems for manufacturing yarns. Automotive Systems 

develops, produces and sells components, modules and integrated systems in order to provide acoustic 

and thermal comfort in motor vehicles. There were no material inter-divisional sales. 

Segment information by division 2009 

CHF million 

Textile 

Systems 

Automotive 

Systems Reconciliation Total Group 

Sales 532.0 1 424.3 0.0 1 956.3 

Net sales 496.1 1 386.6 0.0 1 882.7 

Operating result before special charges, 

interest and taxes – 73.6 – 105.1 –7.9 1 – 186.6 

Special charges 0.0 0.0 0.0 0.0 

Operating result before interest and taxes (EBIT) – 73.6 – 105.1 –7.9 1 – 186.6 

Assets 498.7 955.4 360.0 2 1 814.1 

Liabilities 285.4 526.2 346.7 3 1 158.3 

Net assets 213.3 429.2 13.3 655.8 

Capital expenditures on tangible and intangible assets 5.5 56.2 0.0 61.7 

Depr. and amort. of tangible and intangible assets 46.2 94.3 0.4 1 140.9 

Number of employees 4 4 086 8 600 75 1 12 761 

Segment information by division 2008 

CHF million 

Textile 

Systems 

Automotive 

Systems Reconciliation Total Group 

Sales 1 120.4 2 022.1 0.0 3 142.5 

Net sales 1 051.7 1 960.2 0.0 3 011.9 

Operating result before special charges, 

interest and taxes 41.3 – 7.3 –11.6 1 22.4 

Special charges – 90.8 – 243.7 0.0 – 334.5 

Operating result before interest and taxes (EBIT) – 49.5 – 251.0 –11.6 1 – 312.1 

Assets 669.3 1 032.2 387.4 2 2 088.9 

Liabilities 377.5 531.5 433.7 3 1 342.7 

Net assets 291.8 500.7 – 46.3 746.2 

Capital expenditures on tangible and intangible assets 53.2 85.3 2.4 1 140.9 

Depr. and amort. of tangible and intangible assets 52.6 100.3 0.8 1 153.7 

Number of employees 4 4 741 9 319 123 1 14 183 

1. Other units (Rieter Holding Ltd, Corporate Center). 

2. Assets other units 51.5 Mio. CHF (71.9 Mio CHF in 2008), cash and cash equivalents 217.7 Mio. CHF (282.6 Mio CHF in 2008), marketable securities and time 

deposits 13.0 Mio. CHF (7.7 Mio. CHF in 2008), investments 70.1 Mio. CHF (16.0 Mio. CHF in 2008), interest bearing receivables 4.2 Mio. CHF (4.3 Mio. CHF 

in 2008), deferred tax assets 3.5 Mio. CHF (4.9 Mio. CHF in 2008). 

3. Liabilities other units 27.1 Mio. CHF (14.5 Mio. CHF in 2008), financial debt 222.4 Mio. CHF (327.1 Mio. CHF in 2008), deferred tax liabilities 75.0 Mio. CHF 

(62.4 Mio. CHF in 2008), current tax liabilities 22.2 Mio. CHF (29.7 Mio. CHF in 2008). 

4. At year-end (excluding apprentices and temporary employees). 

43

44 


4 Sales 

Sales and non-current assets by geographic region and countries 

CHF million Sales 2009 Sales 2008 

Non-current 

assets 2009 1 

Non-current 

assets 2008 1 

Europe 901.1 1 449.6 459.9 550.9 

Asia 2 405.3 791.3 99.8 97.2 

North America 432.5 589.1 137.6 150.1 

Latin America 181.7 256.8 19.0 15.9 

Africa 35.7 55.7 2.7 2.4 

Total Group 1 956.3 3 142.5 719.0 816.5 

Switzerland (domicile of Rieter Holding Ltd.) 39.8 65.8 111.5 147.6 

Foreign countries 1 916.5 3 076.7 607.5 668.9 

Total Group 1 956.3 3 142.5 719.0 816.5 

The following countries accounted for more 

than 10% of sales or non-current assets: 

USA 344.5 493.1 119.7 132.4 

Switzerland (domicile of Rieter Holding Ltd.) 39.8 65.8 111.5 147.6 

Czech Republic 19.1 22.0 87.4 100.1 

1. Tangible fixed assets and intagible assets. 

2. Including Turkey. 

No individual customer accounted for more than 10% of consolidated sales in 2009 and 2008. Sales by 

product group are not available. 

Capital expenditures and number of employees by geographical region 

CHF million 

Capital 

expenditures 


Capital 

expenditures 

2008 

Number of 

employees 

2009 1 

Number of 

employees 

2008 1 

Europe 30.8 85.4 7 295 8 445 

Asia 2 13.2 34.3 2 161 2 093 

North America 15.7 16.9 2 084 2 287 

Latin America 1.8 4.2 1 152 1 275 

Africa 0.2 0.1 69 83 

Total Group 61.7 140.9 12 761 14 183 

1. At year-end (excl. apprentices and temporary employees). 


Change in sales 


Change in sales due to volume and price, Textile Systems – 560.9 – 378.0 

Change in sales due to volume and price, Automotive Systems – 525.3 – 227.9 

Impact of divestments – 18.3 – 57.2 

Currency effects – 81.7 – 124.5 

Total change in sales – 1 186.2 – 787.6

5 Employee costs 

6 Other operating expenses 

7 Depreciation and amortization 

8 Special charges 

9 Financial income 



Wages and salaries 570.3 769.4 

Social security and other personnel expenses 122.7 168.8 

Total 693.0 938.2 

Other operating expenses include mainly the costs of maintenance, energy and external services. 


Tangible fixed assets 133.7 145.3 

Intangible assets 7.2 8.4 

Total 140.9 153.7 


Restructuring costs Textile Systems 0.0 42.7 

Restructuring costs Automotive Systems 0.0 195.0 

Goodwill impairment Textile Systems 0.0 48.1 

Goodwill impairment Automotive Systems 0.0 48.7 

Total 0.0 334.5 

There were no special charges for restructuring and goodwill impairment in 2009. In 2008 the special 

charges included the cost of the comprehensive restructuring program that entails capacity adjustments 

and a more rapid shift from traditional to emerging regions. In addition to the costs of the personnel- 

related measures, restructuring costs in 2008 included some extraordinary write-offs of assets as well as 

loss on sales of the sheet metal parts manufacturing facility in Ingolstadt, Germany (see note 30). 


Interest income 4.0 9.5 

Income from non-consolidated investments 0.7 0.5 

Total 4.7 10.0 

45

46 


10 Financial expenses 

11 Income taxes 


Interest cost 27.6 21.1 

Loss on marketable securities 0.2 42.6 

Other financial expenses and foreign exchange differences, net 1.8 11.0 

Total 29.6 74.7 


Current income tax expense 11.3 32.0 

Deferred income tax expense – 5.3 – 12.1 

Total 6.0 19.9 

Reconciliation of expected and actual tax expense: 


Expected tax expense on pre-tax result of 

− 211.5 million CHF (− 376.8 million CHF in 2008) 

at an average rate of 35.5% (21.1% in 2008) – 75.0 – 79.5 

Impact of non tax-deductible income/expenses 2.5 – 0.1 

Impact of losses and loss carry-forwards 77.4 93.4 

Impact of changes in tax rates and tax legislation – 2.4 – 0.6 

Other effects 3.5 6.7 

Total 6.0 19.9 

Deferred income taxes 

Deferred tax assets and liabilities result from the following balance sheet items: 

CHF million 

Deferred 

tax 

assets 


Deferred 

tax 

liabilities 


Deferred 

tax 

assets 

2008 

Deferred 

tax 

liabilities 

2008 

Tangible fixed assets 7.9 – 23.1 4.7 – 24.7 

Inventories 7.2 – 5.0 9.2 – 7.4 

Other assets 2.8 – 44.7 4.7 – 30.4 

Provisions 9.8 – 4.7 5.5 – 3.4 

Other liabilities 10.3 – 14.0 15.2 – 16.8 

Valuation adjustments on deferred tax assets – 20.8 0.0 – 15.1 0.0 

Tax loss carry-forwards and tax credits 2.8 0.0 1.0 0.0 

Total 20.0 – 91.5 25.2 – 82.7 

Offsetting – 16.5 16.5 – 20.3 20.3 

Deferred tax assets/liabilities 3.5 – 75.0 4.9 – 62.4 

In compliance with the exception clause of IAS 12.39, the Group does not recognize deferred taxes on investments 

in subsidiaries. The potential tax effect of profit distributions from subsidiaries to the parent 

company varies from country to country and can not be reliably determined.

Capitalized and non-capitalized deferred income taxes resulting from tax loss carry-forwards and tax credits, 

presented by year of expiry: 

CHF million 

Expiry in 

12 Research and development 


Capitalized 


Non 

capitalized 


Total 


1 to 3 years 0.2 4.6 4.8 3.1 

3 to 7 years 0.8 15.0 15.8 6.9 

7 or more years 1.8 209.7 211.5 143.7 

Total 2.8 229.3 232.1 153.7 

Total 

2008 

The unused tax losses for which no deferred tax asset has been recognized originate primarily from countries 

with a tax rate between 28% and 40%. 

In 2009, 98.7 million CHF was spent on research and development (122.3 million CHF in 2008). 

Research and development at Textile Systems continued to focus on the further development of spinning 

preparation and end spinning machinery, technology components for cotton spinning mills and the 

development of new end spinning machines. Developments are aimed at machinery and technology components 

for the Asian market and achieving improved yarn quality, a better price/performance ratio, higher 

productivity and lower power consumption. 

Developments at Automotive Systems included applications for new models and customized acoustic 

products, as well as carpets and underbody components for automotive manufacturers in Europe, 

Americas and Asia. Automotive Systems also invests continuously in new processes and materials in 

order to improve quality and provide customers with cost benefits. 

As in the previous year, no development costs were capitalized in 2009, since the respective IFRS requirements 

were not met. 

47

48 


13 Tangible fixed assets 

CHF million 

Land and 

buildings 

Machinery, 

equipment 

and tools 

Data 

processing 

equipment 

Vehicles and 

furniture 

Machinery and 

tools under 

construction 

Total 

tangible 

fixed assets 

Net book value at January 1, 2008 337.6 485.2 11.6 20.2 62.8 917.4 

Reclassification 2.3 26.9 0.5 1.6 – 31.3 0.0 

Additions by acquisitions 0.0 0.3 0.0 0.0 0.0 0.3 

Other additions 21.3 75.3 3.9 3.7 36.7 140.9 

Disposals by divestments – 14.9 – 4.9 – 0.2 – 0.8 – 1.6 – 22.4 

Other disposals – 5.5 – 3.9 0.0 – 0.3 – 2.2 – 11.9 

Depreciation 1 – 16.9 – 125.1 – 5.5 – 6.8 0.0 – 154.3 

Currency effects – 33.4 – 42.0 – 0.7 – 1.7 – 5.9 – 83.7 

Net book value at December 31, 2008 290.5 411.8 9.6 15.9 58.5 786.3 

Cost at December 31, 2008 566.4 1 547.3 66.4 91.3 59.1 2 330.5 

Accumulated depreciation 

at December 31, 2008 – 275.9 – 1 135.5 – 56.8 – 75.4 – 0.6 – 1 544.2 

Net book value at December 31, 2008 290.5 411.8 9.6 15.9 58.5 786.3 

Reclassification 9.5 19.5 0.0 0.1 – 29.1 0.0 

Additions 4.2 41.0 1.2 1.1 14.2 61.7 

Disposals by divestments – 19.5 0.0 0.0 0.0 0.0 – 19.5 

Reclassification to disposal group – 0.1 – 0.1 – 0.1 – 0.1 0.0 – 0.4 

Other disposals – 7.5 – 0.6 0.0 0.0 – 1.0 – 9.1 

Depreciation – 16.8 – 106.6 – 4.6 – 5.7 0.0 – 133.7 

Currency effects 3.8 6.3 0.1 – 0.6 1.1 10.7 

Net book value at December 31, 2009 264.1 371.3 6.2 10.7 43.7 696.0 

Cost at December 31, 2009 543.7 1 579.9 62.9 87.7 43.7 2 317.9 

Accumulated depreciation 

at December 31, 2009 – 279.6 – 1 208.6 – 56.7 – 77.0 0.0 – 1 621.9 

Net book value at December 31, 2009 264.1 371.3 6.2 10.7 43.7 696.0 

1. Includes 9.0 Mio. CHF write-offs in connection with the restructuring program. 

The book value of tangible assets held under finance leases was 4.3 million CHF (6.4 million CHF in 2008). As of December 31, 2009 

land and buildings with a net book value of 57.0 million CHF were pledged for financial debt.

Land and buildings 


Land in operational use 56.2 54.9 

Buildings in operational use 207.9 217.2 

Non-operational property 0.0 18.4 

Total 264.1 290.5 

Buildings were insured at the replacement value of 1 353.4 million CHF at balance sheet date (1 337.9 million 

CHF in 2008). 

Non-operational property 


Net book value at January 1 18.4 18.9 

Additions 0.0 2.0 

Disposals – 18.3 – 2.2 

Depreciation – 0.1 – 0.3 

Net book value at December 31 0.0 18.4 

Market value at December 31 0.0 22.2 

In 2009 all non-operational property was sold. 


49

50 


14 Intangible assets 

CHF million Goodwill 

Patents/ 

trademarks 

Other 

intangible 

assets 

Total 

intangible 

assets 

Net book value at January 1, 2008 120.4 35.9 0.3 156.6 

Additions by acquisitions 2.6 0.3 3.3 6.2 

Disposals by divestments – 21.6 0.0 0.0 – 21.6 

Amortization 0.0 – 0.4 – 8.0 – 8.4 

Impairment charges – 96.8 0.0 0.0 – 96.8 

Currency effects – 4.6 – 8.5 7.3 – 5.8 

Net book value at December 31, 2008 0.0 27.3 2.9 30.2 

Cost at December 31, 2008 47.1 5.1 52.2 

Accumulated amortization at December 31, 2008 – 19.8 – 2.2 – 22.0 

Net book value at December 31, 2008 27.3 2.9 30.2 

Amortization – 6.7 – 0.5 – 7.2 

Currency effects 0.0 0.0 0.0 

Net book value at December 31, 2009 20.6 2.4 23.0 

Cost at December 31, 2009 47.1 5.1 52.2 

Accumulated amortization at December 31, 2009 – 26.5 – 2.7 – 29.2 

Net book value at December 31, 2009 20.6 2.4 23.0 

In 2008, goodwill allocated to the cash-generating units Division Textile Systems (48.1 million CHF) and 

Division Automotive Systems (48.7 million CHF) was fully written off based on the impairment tests. 

In 2009 the impairment test on other assets was performed in the second half of the financial year. The 

recoverable amount of each cash-generating unit was determined by a value-in-use calculation. This calculation 

was based on best estimate for a period of five years prepared by the management in charge and 

takes into account past experience over a long economic cycle, but no further growth. For the value-in-use 

calculation future cash flows were discounted with the weighted average cost of capital before taxes of 

12.0% (12.5% in 2008) for Textile Systems and 12.7% (13.2% in 2008) for Automotive Systems. Based on 

the impairment tests, it was not necessary to recognize impairment charges in 2009.

15 Other non-current assets 

16 Inventories 


Investments in non-consolidated companies 70.1 16.0 

Long-term interest-bearing receivables 4.2 4.3 

Other long-term receivables and pension funds 89.7 87.6 

Total 164.0 107.9 

Prepaid contributions and overfunding of personnel pension plans have been accrued up to the expected 

future benefit and amount to 60.0 million CHF. 


Raw materials and consumables 74.0 97.1 

Purchased parts and goods for resale 57.3 71.9 

Semi-finished and finished goods 91.4 109.0 

Work in progress 99.8 130.0 

Allowance – 56.5 – 46.7 

Total 266.0 361.3 

The following summarizes the movement in the allowance for inventories: 



Allowance at January 1 – 46.7 – 52.0 

Utilization 0.7 5.9 

Additions, net – 10.6 – 4.3 

Currency effects 0.1 3.7 

Allowance at December 31 – 56.5 – 46.7 

51


17 Trade receivables 


Trade receivables 358.7 405.2 

Allowance for doubtful receivables – 27.2 – 23.1 

Total 331.5 382.1 

The following summarizes the movement in the allowance for doubtful receivables: 


Allowance for doubtful receivables at January 1 – 23.1 – 21.4 

Increase charged to income statement – 9.8 – 2.1 

Utilization or reversal 5.6 2.3 


Allowance for doubtful receivables at December 31 – 27.2 – 23.1 

Allowances for doubtful receivables are established based upon the difference between the invoice amount 

and the expected, discounted payment. Rieter establishes the allowance for doubtful receivables based on 

its historical loss experience. 

Trade receivables include amounts denominated in the following major currencies: 


CHF 33.5 47.0 

EUR 213.8 269.1 

USD 41.1 37.6 

GBP 3.6 3.5 

Other 39.5 24.9 

Total 331.5 382.1 

The following table sets forth the aging of trade accounts receivable, showing amounts that are not yet due 

as well as an analysis of overdue amounts: 


Not due 273.2 313.7 

Past due less than 3 months 48.8 56.9 

Past due 3 to 6 months 3.4 6.6 

Past due 6 months to 1 year 4.2 1.2 

Past due 1 to 5 years 0.0 1.5 

Past due 5 or more years 1.9 2.2 

Total 331.5 382.1

18 Other receivables 



Prepaid expenses and deferred charges 18.8 22.4 

Advance payments to suppliers 13.0 36.2 

Positive replacement values of derivative financial instruments 2.3 1.0 

Other short-term receivables 58.3 66.3 

Total 92.4 125.9 

19 Marketable securities and time depostits 

20 Cash and cash equivalents 

21 Share capital 

22 Minority interests 


Securities available for sale 2.0 3.0 

Securities held for trading 0.0 0.1 

Time deposits with original maturities between 3 and 12 months 11.0 4.6 

Total 13.0 7.7 


Cash and banks 179.8 257.5 

Time deposits with original maturities up to 3 months 37.9 25.1 

Total 217.7 282.6 

31.12.2009 31.12.2008 

Shares issued Number of shares 4 672 363 4 283 056 

Treasury shares 1 Number of shares 27 628 476 743 

Shares outstanding Shares outstanding 4 644 735 3 806 313 

Nominal value per share CHF 5.00 5.00 

Share capital CHF 23 361 815 21 415 280 

1. As of December 31, 2008 including shares at the disposal of the Board of Directors. 

The main minority interests held by third parties are in UGN Inc. (USA), Rieter India Pvt. (India), Rieter 

Nittoku (Guangzhou) Automotive Sound-Proof Co. Ltd. (China), Tianjin Rieter Nittoku Automotive Sound- 

Proof Co. Ltd. (China) and Rieter-LMW Machinery Ltd. (India). 

For one minority interest there is a put and a call option. The minority shareholders are entitled to sell their 

share within five years at an agreed minimum price. The fair value of this put option has been recognized 

in retained earnings as a financial debt in accordance with IAS 32. Rieter is entitled to buy the shares at an 

agreed minimum price within seven years (call option). 

53


23 Financial debt 

24 Provisions 

CHF million Bank debt 

Finance leasing 

obligations 

Other 

financial debt 

Total 


Duration less than 1 year 79.5 1.0 1.2 81.7 198.3 

Duration 1 to 5 years 108.6 3.3 27.3 139.2 128.6 

Duration 5 or more years 0.0 0.3 1.2 1.5 0.2 

Total 188.1 4.6 29.7 222.4 327.1 

As of December 31, 2009 bank debt of 103.6 million CHF was secured by land and buildings. 

By currency, financial debt is divided up as follows: 


CHF 119.9 191.1 

EUR 50.8 58.8 

USD 9.7 13.6 

Other 42.0 63.6 

Total 222.4 327.1 

CHF million 

Restructuring 

provisions 

Pension 

provisions 

Guarantee 

and 

warranty 

provisions 

Environment 

provisions 

Other 

provisions 

Total 

2008 

Total 

provisions 

Provisions at 

December 31, 2008 183.6 75.1 37.1 11.9 72.8 380.5 

Reclassification – 9.8 9.1 0.0 0.0 0.7 0.0 

Disposals by 

divestments 0.0 0.0 0.0 0.0 – 0.1 – 0.1 

Utilization – 41.4 – 5.4 – 15.0 0.0 – 23.2 – 85.0 

Release 0.0 – 0.5 – 1.5 – 0.9 – 8.7 – 11.6 

Additions 0.0 2.3 22.6 0.0 47.4 72.3 

Currency effects 0.1 0.1 0.0 0.0 0.2 0.4 

Provisions at 

December 31, 2009 132.5 80.7 43.2 11.0 89.1 356.5 

Thereof non-current 13.8 80.5 30.0 11.0 46.9 182.2 

Thereof current 118.7 0.2 13.2 0.0 42.2 174.3 

Restructuring provisions cover the legal and constructive obligations in connection with the restructuring 

program initiated in 2008. 

Pension provisions include the liabilities in connection with defined benefit plans (see note 32) and other 

long-term benefits to employees. 

Guarantee and warranty provisions are made in the context of product deliveries and services and are based 

on past experience.

25 Other current liabilities 

26 Related parties 


Environment provisions cover the expected remediation costs related to operations in previous years. 

Other provisions are made for onerous contracts (where the unavoidable direct costs of performance 

exceed the expected financial benefit) and other constructive or legal obligations of Group companies. 

Non-current restructuring, guarantee and warranty provisions are expected to result partly in a cash outflow 

in one to two years on average, environment and other provisions in two to three years on average. Due to 

this maturity structure provisions are not discounted. 


Accrued holidays 18.9 20.9 

Accrued sales commissions 15.3 23.8 

Other accrued expenses 68.1 69.0 

Negative replacement values of derivative financial instruments 0.5 3.4 

Other short-term liabilities 74.5 82.2 

Total 177.3 199.3 

Related parties include members of the Board of Directors, the Group Executive Committee and employee 

benefit plans. Transactions with related parties are generally conducted at arm’s length. 

Total compensation to the Board of Directors and the Group Executive Committee was as follows: 


Compensation 2.4 3.0 

Employee benefit contributions 0.1 0.1 

Social security 0.0 0.0 

Share-based compensation 0.6 1.1 

Other long-term benefits 0.0 0.0 

Total 3.1 4.2 

The remuneration report and the compensation of the Board of Directors and the Group Executive Committee 

in compliance with Swiss law are disclosed in the financial statements of Rieter Holding Ltd. on pages 73 

to 75. 

Rieter Real Estate Ltd. (see note 30) was sold to related party institutional investors. Apart from compensation 

to the Board of Directors and the Executive Committee and the ordinary contributions to the various 

employee benefit plans, there have been no further material transactions with related parties. 

55


27 Financial instruments 

The following tables summarize all financial instruments according to the categories of IAS 39. The book 

values correspond, approximately, to the fair values. 


Cash (excluding time deposits) 179.8 257.5 

Securities held for trading 1 0.0 0.1 

Positive replacement values of derivative financial instruments 2 2.3 1.0 

Investments in non-consolidated companies 2 1.8 4.2 

Total financial assets at fair value through profit and loss 4.1 5.3 

Time deposits with original maturities up to 3 months 37.9 25.1 

Time deposits with original maturities between 3 and 12 months 11.0 4.6 

Trade receivables 331.5 382.1 

Other short-term receivables 58.3 66.3 

Long-term interest-bearing receivables 4.2 4.3 

Total loans and receivables 442.9 482.4 

Securities available for sale 1 2.0 3.0 

Investments in non-consolidated companies 2 68.3 11.8 

Total available for sale financial assets 70.3 14.8 

Total financial assets and derivatives 697.1 760.0 


Short-term financial debt 81.7 198.3 

Long-term financial debt (without put option minorities) 116.2 128.8 

Put option minority interests 3 24.5 0.0 

Negative replacement values of derivative financial instruments 2 0.5 3.4 

Total financial debt and derivatives 222.9 330.5 

1. Measured at fair values which are based on quoted prices in active markets (level 1 according to IFRS 7.27). 

2. Measured at fair values which are calculated based on observable market data (level 2 according to IFRS 7.27). 

3 Measured at fair values which are not based on observable market data (level 3 according to IFRS 7.27). 

Financial instruments measured at level 3 (according to IFRS 7.27) concern the following item: 

In 2009 a group of non-controlling shareholders acquired a non-controlling interest in a subsidiary together 

with a put option on such non-controlling interest. The valuation of this put option is based on the expected 

future earnings development of the concerned subsidiary up to the earliest possible execution date. The 

value of the put option was discounted by 9.4% and recognized as a financial debt of 22.9 million CHF. In 

2009 the financial debt was increased by 1.6 million CHF by debiting interest expenses. If the value of 

the put option had been discounted by 8.4% the recognized financial debt would have been 1.1 million CHF 

higher.

28 Other commitments 


Some Group companies lease factory and office space under operating lease agreements. The leases have 

varying terms, escalation clauses and renewal rights. 

The future aggregate minimum lease payments under operating leases are as follows: 


Up to 1 year 12.4 12.5 

1 to 5 years 25.0 24.0 

5 or more years 3.9 5.8 

Total 41.3 42.3 

No purchase commitments in respect of major purchases were open at year-end. 

29 Assets and liabilities from disposal groups 

30 Divestments 

On December 11, 2009, Rieter signed a contract for the sale of the non-wovens activities of Division Textile 

Systems. The contract was closed on March 9, 2010. 

In accordance with IFRS 5 the concerned assets and liabilities were classified as a disposal group in the 

balance sheet and were as follows: 

CHF million 2009 

Non-current assets 0.4 

Current assets (without cash and cash equivalents) 4.5 

Cash and cash equivalents 2.1 

Total assets of disposal group 7.0 

Long-term liabilities 1.3 

Short-term liabilities 12.1 

Total liabilities of disposal group 13.4 

On March 31, 2009, Rieter sold Rieter Real Estate Ltd. in Winterthur. The resulting divestment gain of 

4.5 million CHF was recognized in other operating income. 

The assets and liabilities arising from divestments were as follows: 

CHF million 2009 



Liabilities – 3.2 

Net disposed assets and liabilities 17.6 

Profit on divestments 4.5 

Cash from divestments 22.1 

57


31 Acquisitions 

32 Pension plans 

In mid-April 2008, Rieter sold its activities in machinery and systems for manufacturing plastics granulates. 

In 2008 this unit of the Textile Systems Division generated sales of approximately 14 million CHF prior to its 

sale. The resulting gain on sale of 2.6 million CHF was recognized in other operating income. 

At the end of September 2008, Rieter sold its sheet metal part manufacturing facility in Ingolstadt, Germany. 

In 2008 this unit of the Textile Systems Division generated sales of approximately 5 million CHF prior to its 

sale. The resulting loss on sale of 5.2 million CHF was recognized in special charges. 

In aggregate, the assets and liabilities arising from the divestment were as follows: 

CHF million 2008 



Liabilities – 29.0 

Net disposed assets and liabilities 44.3 

Profit and loss on divestments – 2.6 

Cash from divestments 41.7 

There were no acquisitions in 2009. 

As of January 1, 2008 Rieter completed the components business of the Textile Systems Division with the 

acquisition of textile component manufacturer Berkol. 

The assets and liabilities arising from the acquisition were as follows: 

CHF million Fair value Adjustments 

Book value 

before adjustments 

Tangible fixed assets 0.3 0.0 0.3 

Intangible assets, excluding goodwill 3.6 3.6 0.0 

Inventories 2.5 0.2 2.3 

Short-term liabilities – 0.5 – 0.5 

Net identifiable assets 5.9 3.8 2.1 

Goodwill 2.6 1 

Cash used for acquisitions 8.5 

1. The goodwill arising from the acquisition reflected the expected synergies. 

The expense for pension plans is included in employee costs. 

Defined contribution plans 

The expense for defined contribution plans amounted to 5.8 million CHF (9.2 million CHF in 2008).

Defined benefit plans 


For the actuarial calculation of the obligations of the different plans and the presentation of the value of 

the plans’ assets, many countries, especially Switzerland, have rules for the definition of employee benefits 

which may differ substantially from IFRS rules. 

Funded status of defined benefit plans 


Actuarial present value of defined benefit obligation 

• unfunded plans – 43.9 – 46.4 

• funded plans – 1 048.3 – 989.0 

Defined benefit obligation at December 31 – 1 092.2 – 1 035.4 

Fair value of plan assets 1 145.4 1 010.4 

Surplus/Deficit at December 31 53.2 – 25.0 

Unrecognized actuarial gains and losses 15.1 58.2 

Unrecognizable assets of pension plans (due to limit of IAS 19.58) – 54.2 – 20.3 

Net asset at December 31 14.1 12.9 

Recognized in the balance sheet 

• as assets 70.7 71.6 

• as pension provisions – 56.6 – 58.7 

The movement in the defined benefit obligation over the year was as follows: 


Defined benefit obligation at January 1 1 035.4 1 294.1 

Reductions due to divestments 0.0 – 11.0 

Current service cost, net 12.8 13.6 


Employee contributions 9.9 9.6 

Actuarial gains/losses 78.5 – 238.8 

Past service cost 0.8 0.3 

Benefits paid – 83.7 – 61.3 


Defined benefit obligation at December 31 1 092.2 1 035.4 

The movement in the fair value of plan assets over the year was as follows: 


Fair value of plan assets at January 1 1 010.4 1 474.4 

Expected return on plan assets 41.6 60.2 

Actuarial gains/losses 144.2 – 482.4 

Employer contributions 21.2 20.2 

Employee contributions 9.9 9.6 

Benefits paid – 83.7 – 61.3 


Fair value of plan assets at December 31 1 145.4 1 010.4 

59


The major categories of plan assets as a percentage of total plan assets were as follows: 

in % 2009 2008 

Equity 61 50 

Debt 11 14 

Real estate 24 29 

Other 4 7 

Pension plan assets included 22 614 Rieter shares with a market value of 5.3 million CHF (140 729 shares 

with a market value of 24.1 million CHF in 2008). 

Pension costs of defined benefit plans 


Current service cost, net 12.8 13.6 


Expected return on plan assets – 41.6 – 60.2 

Recognized actuarial gains/losses – 22.4 189.0 

Past service cost 0.8 0.3 

Impact of limit of IAS 19.58 33.9 – 172.6 

Pension costs of defined benefit plans 20.8 16.3 

The Group expects to contribute 19 million CHF to its defined benefit pension plans in 2010. The actual 

return on plan assets was – 185.8 million CHF (– 422.2 million CHF in 2008). 

Actuarial assumptions 

Weighted average in % 2009 2008 

Discount rate 3.5 3.7 

Expected return on plan assets 4.1 4.1 

Future wage growth 1.4 1.4 

Future pension growth 0.9 0.9 

Additional disclosure 

CHF million 2009 2008 2007 2006 2005 

Defined benefit obligation – 1 092.2 – 1 035.4 – 1 294.1 – 1 184.8 – 1 088.1 

Plan assets 1 145.4 1 010.4 1 474.4 1 443.7 1 240.9 

Surplus/deficit 53.2 – 25.0 180.3 258.9 152.8 

Experience adjustment 

on plan liabilities 34.3 – 17.3 117.6 34.5 – 8.8 

Experience adjustment 

on plan assets 144.2 – 482.4 26.8 174.5 132.0

33 Share-based compensation 


Rieter has established a share purchase plan for its senior management. Between March 25 and April 17, 

2009, 59 participants purchased 33 524 shares at a price of 97.00 CHF per share (14 400 shares at 

249.00 CHF in 2008). The average market value of shares granted was 144.39 CHF (365.31 CHF in 2008). 

At least two-thirds of these shares cannot be sold for three years. The shares for this program were taken 

from the holdings of Rieter Holding Ltd. 

In addition, the members of the Group Executive Committee could subscribe to one additional free option 

for each share which was purchased, subject to restrictions on sale under the above plan. Each option 

entitles the holder to purchase a share after two years at a price of 136.90 CHF (359.00 CHF in 2008). 

There are no vesting conditions. 

In 2009 the costs resulting from the share purchase plan amounted to 1.6 million CHF (1.8 million CHF in 

2008). The costs resulting from the share option plan amounted to 0.2 million CHF (0.2 million CHF in 2008). 

Long-service awards are also granted in the form of shares at some Group companies. 

The estimated fair value of each share option granted to the members of the Group Executive Committee 

in 2009 is 32.45 CHF. These values were calculated by applying an adapted model of the Black-Scholes 

option pricing model. The following parameters have been used: 

Share price on the date granted CHF 139.00 

Exercise price CHF 136.90 

Expected volatility (based on historical data) % 37.30 

Option life Years 5 

Risk-free interest rate % 1.29 

Dividend yield % 1.61 

Change in options granted 

Number of 

options 


Weighted 

average 

exercise price 

in CHF 2009 

Number of 

options 

2008 

Weighted 

average 

exercise price 

in CHF 2008 

Outstanding at January 1 11 041 492.15 6 736 577.25 

Granted 7 128 136.90 4 305 359.00 

Exercised 0 0.00 0 0.00 

Outstanding at December 31 18 169 352.78 11 041 492.15 

Exercisable at December 31 6 736 577.25 3 379 501.00 

No options expired in 2009 and 2008. 

The share options outstanding at December 31, 2009, had an exercise price between 136.90 CHF and 

654.00 CHF and a weighted average contractual life of 3.26 years. 

61

62 


34 Cash flow 

35 Net liquidity 

CHF million 2009 2008 1 

Net result – 217.5 – 396.7 

Depreciation and amortization of tangible and intangible assets 140.9 259.5 

Profit/loss on divestments, net – 4.5 2.6 

Other non-cash income and expenses – 11.9 32.2 

Cash flow – 93.0 – 102.4 

Change in provisions – 50.3 32.5 

Net cash flow – 143.3 – 69.9 

Change in net working capital 141.7 127.1 

Capital expenditure on tangible and intangible assets, net – 45.4 – 118.7 

Change in financial assets, net – 4.3 – 9.2 

Change in marketable securities – 5.6 58.9 

Divestments 22.1 41.7 

Acquisitions 0.0 – 8.5 

Free cash flow – 34.8 21.4 

1. Adjusted to the 2009 presentation. 

Net liquidity at December 31 was as follows: 


Cash and cash equivalents 217.7 282.6 

Cash and cash equivalents disposal group 2.1 0.0 

Marketable securities 13.0 7.7 

Short-term financial debt – 81.7 – 198.3 

Long-term financial debt – 140.7 – 128.8 

Net liquidity 10.4 – 36.8

36 Exchange rates for currency translation 

37 Events after balance sheet date 

Average annual rates Year-end rates 

CHF million 2009 2008 2009 2008 

Argentina 1 ARS 0.29 0.34 0.27 0.31 

Brazil 1 BRL 0.55 0.60 0.59 0.45 

Canada 1 CAD 0.95 1.02 0.98 0.87 

China 100 CNY 15.88 15.59 15.22 15.50 

Czech Republic 100 CZK 5.72 6.36 5.61 5.59 

Euro countries 1 EUR 1.51 1.59 1.48 1.49 

Great Britain 1 GBP 1.70 2.00 1.67 1.54 

Hong Kong 100 HKD 14.00 13.90 13.31 13.66 

India 100 INR 2.24 2.50 2.21 2.18 

Poland 100 PLN 35.00 45.35 36.15 35.65 

Taiwan 100 TWD 3.28 3.43 3.25 3.22 

USA 1 USD 1.09 1.08 1.03 1.06 

The contract regarding the sale of Rieter Perfojet in France (see note 29), which was signed in December 

2009, was closed on March 9, 2010. 

38 Approval for publication of the consolidated financial statements 


The consolidated financial statements were approved for publication by the Board of Directors on March 17, 

2010. They are also subject to approval by the Annual General Meeting of shareholders. No events have 

occurred up to March 17, 2010, which would necessitate adjustments to the book values of the Group�s assets 

or liabilities, or which require additional disclosure. 

63

64 Rieter Group . Annual Report 2009 . Significant subsidiaries and associated companies 

Significant subsidiaries and associated companies 

at December 31, 2009 

Argentina Rieter Automotive Argentina S.A., Córdoba ARS 15 643 600 98% • • 

Belgium Rieter Automotive Belgium N.V., Genk EUR 7 994 569 100% • • 

Brazil Graf Máquinas Têxteis Ind.e.com. Ltda., São Paulo BRL 10 220 000 100% • • • 

Rieter Automotive Brasil-Artefatos de Fibras Têxteis Ltda., São Bernardo d.C. BRL 87 335 251 100% • • • 

Rieter South America Ltda., São Paulo BRL 3 287 207 100% • 

Canada Rieter Automotive Mastico Ltd., Tillsonburg CAD 381 000 100% • • • 

China Rieter Changzhou Textile Instruments Co. Ltd., Changzhou EUR 37 800 000 100% • 

Rieter Textile Systems (Shanghai) Co. Ltd., Shanghai USD 200 000 100% • 

Rieter Asia (Hong Kong) Ltd., Hongkong HKD 1 000 100% • 

Rieter Automotive (Chongqing) Sound-Proof Parts Co. Ltd., Chongqing CHF 7 600 000 100% • 

Rieter Nittoku (Guangzhou) Automotive Sound-Proof Co. Ltd., Guangzhou City USD 9 250 000 51% • • 

Tianjin Rieter Nittoku Automotive Sound-Proof Co. Ltd., Tianjin USD 5 700 000 51% • • 

Czech Republic Rieter CZ a.s., Ústí nad Orlicí CZK 982 169 000 100% • • • • 

Novibra Boskovice s.r.o., Boskovice CZK 40 000 000 100% • • • 

France Rieter France SAS, Lyon EUR 39 843 540 100% • 

Rieter Perfojet SAS, Grenoble EUR 1 033 600 100% • • • • 

Graf France Sàrl, Illzach EUR 150 000 100% • • 

Rieter Automotive France SAS, Aubergenville EUR 8 000 000 100% • • • 

Germany Rieter Vertriebs GmbH, Ingolstadt EUR 15 338 756 100% • • 

Rieter Deutschland GmbH & Co. OHG, Ingolstadt EUR 15 645 531 100% • • 

Rieter Ingolstadt GmbH, Ingolstadt EUR 12 273 600 100% • • • • 

Wilhelm Stahlecker GmbH, Reichenbach im Täle EUR 255 645 100% • 

Spindelfabrik Suessen GmbH, Süssen EUR 5 050 100 100% • • • • 

Graf-Kratzen GmbH, Gersthofen EUR 400 000 100% • • 

Rieter Automotive Germany GmbH, Rossdorf EUR 11 248 421 100% • • • 

Great Britain Rieter Automotive Great Britain Ltd., Heckmondwike GBP 22 832 137 100% • • • 

India Rieter India Pvt. Ltd., New Delhi IND 34 901 990 74% • 

Rieter-LMW Machinery Ltd., Coimbatore INR 250 000 000 50% • 

Lakshmi Machine Works Ltd., Coimbatore 1 INR 123 692 500 13% • • • • 

Rieter Automotive India Pvt. Ltd., New Delhi INR 293 626 000 100% • • 

Paid-in capital 

Group interest 

Research & development 

Sales/trading 

Production 

Services/financing

Italy Graf Italia S.r.l., Bergamo EUR 500 000 100% • • • 

Rieter Automotive Fimit S.p.A., Milan EUR 8 400 000 100% • • • 

Idea Institute S.p.A., Turin EUR 120 000 100% • • 

Netherlands Graf Holland B.V., Enschede EUR 113 445 100% • • • 

Poland Rieter Automotive Poland Sp.z.o.o., Katowice PLN 20 844 000 100% • • 

Portugal Rieter Componentes para Veículos Lda., Setúbal EUR 598 557 87% • • 

Switzerland Rieter Management AG, Winterthur CHF 5 000 000 100% • 

Tefina Holding-Gesellschaft AG, Zug CHF 5 000 000 100% • 

Sofima AG, Winterthur CHF 1 000 000 100% • 

Rieter Services AG, Winterthur CHF 3 000 000 100% • 

Maschinenfabrik Rieter AG, Winterthur CHF 8 500 000 100% • • • • 

Schaltag AG, Effretikon CHF 400 000 100% • • • 

Hogra Holding AG, Freienbach CHF 1 000 000 100% • 

Graf + Cie AG, Rapperswil CHF 1 000 000 100% • • • • 

Bräcker AG, Pfäffikon CHF 1 000 000 100% • • • • 

Rieter Automotive Heatshields AG, Sevelen CHF 250 000 100% • • • 

Rieter Automotive Management AG, Winterthur CHF 1 300 000 100% • • 

Rieter Automotive (International) AG, Winterthur CHF 5 000 000 100% • 

Spain Graf España S.A., Santa Perpètua de Mogoda EUR 601 012 100% • • • 

Rieter Saifa S.A., Barcelona EUR 847 410 100% • • • 

Taiwan Rieter Asia (Taiwan) Ltd., Taipeh TWD 5 000 000 100% • 

Thailand Summit Rieter Nittoku Sound Proof Co. Ltd., Changwat Chonburi 1 THB 100 000 000 30% • • 

Turkey Rieter Textile Machinery Trading & Services Ltd., Levent TRY 25 000 70% • 

Rieter Erkurt Otomotive Yan Sanayi ve Ticaret AS, Bursa TRY 700 000 51% • • • 

USA Rieter Corporation, Spartanburg USD 1 249 100% • 

1. Non-consolidated associated company. 

2. Partnership without registered paid-in capital 

Rieter Group . Annual Report 2009 . Significant subsidiaries and associated companies 

Graf Metallic of America Inc., Spartanburg USD 50 000 100% • • 

Rieter Automotive North America Inc., Farmington Hills USD 1 000 100% • • • 

UGN, Inc., Chicago USD 1 000 000 50% • • • 

Rieter Automotive North America Carpet, Bloomsburg 2 100% • • • 

Rieter America Corporation, Farmington Hills USD 1 100% • 

Paid-in capital 

Group interest 

Research & development 

Sales/trading 

Production 

Services/financing 

65

66 Rieter Group . Annual Report 2009 . Report of the statutory auditor 

Report of the statutory auditor on the consolidated financial statements 

Report of the statutory auditor on the consolidated financial statements to the General 

Meeting of Rieter Holding Ltd., Winterthur 

As statutory auditor, we have audited the consolidated financial statements of Rieter Holding Ltd., 

which comprise the income statement, statement of comprehensive income, balance sheet, 

statement of cash flows, statement of changes in consolidated equity and notes (pages 30 to 65), 

for the year ended December 31, 2009. 

Board of Directors’ responsibility 

The Board of Directors is responsible for the preparation and fair presentation of the consolidated 

financial statements in accordance with the International Financial Reporting Standards (IFRS) 

and the requirements of Swiss law. This responsibility includes designing, implementing and 

maintaining an internal control system relevant to the preparation and fair presentation of 

consolidated financial statements that are free from material misstatement, whether due to fraud 

or error. The Board of Directors is further responsible for selecting and applying appropriate 

accounting policies and making accounting estimates that are reasonable in the circumstances. 

Auditor’s responsibility 

Our responsibility is to express an opinion on these consolidated financial statements based on 

our audit. We conducted our audit in accordance with Swiss law and Swiss Auditing Standards as 

well as the International Standards on Auditing. Those standards require that we plan and perform 

the audit to obtain reasonable assurance whether the consolidated financial statements are 

free from material misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures 

in the consolidated financial statements. The procedures selected depend on the auditor’s 

judgment, including the assessment of the risks of material misstatement of the consolidated 

financial statements, whether due to fraud or error. In making those risk assessments, the auditor 

considers the internal control system relevant to the entity’s preparation and fair presentation 

of the consolidated financial statements in order to design audit procedures that are appropriate 

in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the 

entity’s internal control system. An audit also includes evaluating the appropriateness of the accounting 

policies used and the reasonableness of accounting estimates made, as well as evaluating 

the overall presentation of the consolidated financial statements. We believe that the audit evidence 

we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion 

In our opinion, the consolidated financial statements for the year ended December 31, 2009 

give a true and fair view of the financial position, the results of operations and the cash flows 

in accordance with the International Financial Reporting Standards (IFRS) and comply with 

Swiss law. 

Report on other legal requirements 

We confirm that we meet the legal requirements on licensing according to the Auditor Oversight 

Act (AOA) and independence (article 728 CO and article 11 AOA) and that there are no circumstances 

incompatible with our independence. 

In accordance with article 728a paragraph 1 item 3 CO and Swiss Auditing Standard 890, we 

confirm that an internal control system exists which has been designed for the preparation of 

consolidated financial statements according to the instructions of the Board of Directors. 

We recommend that the consolidated financial statements submitted to you be approved. 

PricewaterhouseCoopers AG 

Urs Honegger Nicolas Mayer 

Audit expert 

Auditor in charge 

Zurich, March 18, 2010 

Rieter Group . Annual Report 2009 . Report of the statutory auditor 

67

68 

Rieter Group . Annual Report 2009 . Income statement of Rieter Holding Ltd. 

Income statement of Rieter Holding Ltd. 

for the financial year from January 1 to December 31 


Income 

Income from investments (1) 48.8 107.7 

Income from marketable securities and interest income (2) 12.4 – 62.8 

Other income (3) 4.8 10.5 

Total income 66.0 55.4 

Expenses 

Financial expenses (4) 20.6 13.3 

Administration expenses 4.8 4.2 

Value adjustments, provisions (5) 39.6 35.0 

Total expenses 65.0 52.5 

Net profit 1.0 2.9

Balance sheet of Rieter Holding Ltd. 

at December 31, before appropriation of profit 

Rieter Group . Annual Report 2009 . Balance sheet of Rieter Holding Ltd. 


Assets 

Investments in and loans to subsidiaries (6) 553.9 572.7 

Non-current assets 553.9 572.7 

Accrued income and prepayments (7) 8.4 1.4 

Receivables (8) 139.9 70.7 

Liquid funds (9) 76.2 208.7 

Current assets 224.5 280.8 

Total assets 778.4 853.5 

Shareholders’ equity and liabilities 

Share capital (10) 23.4 21.4 

Legal reserves 

• General reserve (11) 27.5 27.5 

• Reserve for own shares (12) 6.4 122.8 

Other reserves (13) 279.3 86.0 

Retained earnings (14) 

• Balance brought forward 43.7 40.8 

• Net profit for the year 1.0 2.9 

Shareholders’ equity 381.3 301.4 

Long-term financial debt (15) 250.0 270.0 

Provisions (16) 11.3 11.3 

Non-current liabilities 261.3 281.3 

Short-term liabilities (17) 133.3 268.5 

Accrued liabilities 2.5 2.3 

Current liabilities 135.8 270.8 

Liabilities 397.1 552.1 

Total shareholders’ equity and liabilities 778.4 853.5 

69

70 

Rieter Group . Annual Report 2009 . Notes to the financial statements of Rieter Holding Ltd. 

Notes to the financial statements of Rieter Holding Ltd. 

1 Income from investments 

Income from investments consists of dividends paid by subsidiaries and associated companies as well 

as income from disposal of investments. 

2 Income from marketable securities and interest income 

3 Other income 

4 Financial expenses 

5 Value adjustments, provisions 

This includes income from marketable securities, interest income as well as the foreign exchange result. 

Other income consists of the contractually agreed compensation payments by Group companies. 

Financial expenses consist mainly of interest payable on bank debt and liabilities to Group companies. 

The value adjustment for general business risks was increased by 39.6 million CHF and deducted from 

investments in and loans to subsidiaries. 

6 Investments in and loans to subsidiaries 


Investments in subsidiaries 215.3 261.5 

Loans to subsidiaries 338.6 311.2 

Total 553.9 572.7 

The main subsidiaries and associated companies are listed on pages 64 and 65. These investments are 

held directly or indirectly by Rieter Holding Ltd. 

7 Accrued income and prepayments 

Accrued income and prepayments consist mainly of accrued interest on granted loans, foreign exchange 

transactions and accrued financing costs. 

8 Receivables 


Receivables from third parties 0.7 2.5 

Receivables from subsidiaries 139.2 68.2 

Total 139.9 70.7 

Receivables consist mainly of current account credit facilities which are granted to subsidiaries on market 

terms and conditions in the context of the central cash management.

9 Liquid funds 

10 Share capital 

11 General reserve 



Cash and cash equivalents 74.5 178.3 

Marketable securities 1 1.7 30.4 

Total 76.2 208.7 

1. Incl. own shares. 

12 Reserve for own shares 

13 Other reserves 

14 Retained earnings 

On May 5, 2009, Rieter alloted to its shareholders one shareholders’ option for each share held. Eleven shareholders’ 

options entitled the holder to purchase one new Rieter share at a price of 120 CHF. Up to May 29, 2009 

(the end of the purchase period) 389 307 new Rieter shares were purchased, which increased share capital by 

9.1% from 21 415 280 CHF to 23 361 815 CHF. 

The general reserve meets the legal requirements. No transfer was made in the year under review. 

Shares held by all Group companies 

Registered shares held at January 1, 2009 223 743 

Purchases January to December 2009 (average price 163.36 CHF) 20 224 

Sales January to December 2009 (average price 137.55 CHF) 216 339 

Registered shares held at December 31, 2009 27 628 

A reserve for own shares has been made at an acquisition cost of 6.4 million CHF. This amount was 

deducted from other reserves. 


Opening balance 86.0 120.2 

Transfer to reserve for own shares 116.4 36.5 

Share buyback 0.0 – 73.8 

Premium received on shares issued 76.9 3.1 

Total 279.3 86.0 

Share premium relates to the sale of 253 000 reserved treasury shares and the issue of 389 307 new shares 

(see also note 10). 

Including the balance brought forward, the Annual General Meeting has a total of 44.7 million CHF at its 

disposal (43.7 million CHF in 2008). 

Number 

71

72 


15 Long-term financial debt 

16 Provisions 

17 Short-term liabilities 

18 Guarantees to third parties 

19 Shareholders 

20 Risk management 


Financial debt 100.0 100.0 

Loans from subsidiaries 150.0 170.0 

Total 250.0 270.0 

In 2009 long-term financial debts were reduced by 20 million CHF. 

These consist of provisions for foreign exchange risks and guarantee commitments. 


Liabilities to Group companies 132.9 177.7 

Liabilities to third parties 0.4 90.8 

Total 133.3 268.5 

Rieter Holding Ltd. manages liquid funds for Group companies in the central cash pool. In 2009 short-term 

liabilites to third parties could be reduced by some 90 million CHF. 


Guarantees 42.1 12.3 

Guarantees to third parties consist of sureties issued to financial institutions and banks for loans granted 

to subsidiaries and for a tenancy agreement. 

Major groups of shareholders with holdings exceeding 3% of all voting rights (pursuant to Art. 663c of the 

Swiss Code of Obligations) at December 31, 2009: 

According to the notification on August 27, 2009, PCS Holding, Weiningen, Switzerland, held 894 223 

shares. 

According to the notification on August 27, 2009, the investment group Artemis Beteiligungen IV AG, 

Hergiswil, Switzerland, and Forbo International SA, Baar, Switzerland, held 677 549 shares. 

According to the notification on December 7, 2009, First Eagle Investment Management LLC, Wilmington, 

USA, formerly called Arnhold and S. Bleichroeder Advisers LLC, New York, USA, held 183 274 shares. 

The detailed disclosures regarding the risk management that are required by law are included in the 

consolidated financial statements of the Rieter Group on page 39.


21 Remuneration report and disclosure of payments to the Board of Directors and the Group Executive Committee 

in terms of Art. 663b bis , Swiss Code of Obligations 

Content and process for specifying remuneration and equity participation programs 

Remuneration of the Board of Directors 

The basic features of salary policy are elaborated by the personnel committee and adopted by the Board of 

Directors as a whole, which also approves the bonus program, the share purchase plan and the option plan. 

The Board of Directors approves the remuneration of the members of the Board of Directors and the Group 

Executive Committee on the basis of proposals submitted by the personnel committee. The Board of Directors 

anually reviews the main features of the salary policy. It rules on the adjustment of the basic salary of 

the members of the Group Executive Committee annually and stipulates the targets for performance related 

payments and the key data for the share purchase plan and the option plan. The Board of Directors has not 

engaged independent consultants for elaborating the salary policy or the compensation programs. 

Until April 30, 2009 remuneration of the Board of Directors consisted of a payment in cash and a further 

fixed sum which is disbursed in the form of shares. Since May 1, 2009 members of the Board of Directors 

can chose whether to receive remuneration as cash or to take up shares. In case remuneration is settled in 

shares, the number of shares is calculated on the basis of the average price of Rieter shares 20 trading 

days prior to the meeting of the Board of Directors, at which the annual accounts are approved. Shares 

will be allocated at tax value and are blocked for three years as of allocation date (28.4.2010). All entitled 

members of the Board of Directors have opted for remuneration in the form of shares. Erwin Stoller is 

E x e c utive Chairman since 4.8.2009. His remuneration comprises a fixed component, a share component, 

and a performance-related component based on the operational and strategic targets set by the Board 

of Directors. 

Total 2009 compensation to the members of the Board of Directors 

CHF 

Cash compensation Shares Options Total 

Fixed 

net 

Variable 

net Number Value 1 Number Value 

Contribution 

to 

pension 

plans 

Erwin Stoller, Chairman, 

since 4.8.2009 Executive Chairman 392 500 180 41 760 2 0 0 11 200 445 460 

Dr. Ulrich Dätwyler, Vice-Chairman, 

until 30.4.2009 35 596 248 25 296 1 0 0 0 60 892 

Dr. Jakob Baer 42 000 177 41 064 2 0 0 0 83 064 

Dr. Rainer Hahn, until 30.4.2009 23 197 186 18 972 1 0 0 0 42 169 

Michael Pieper, since 1.5.2009 117 27 144 2 0 0 0 27 144 

Hans Peter Schwald, since 1.5.2009 160 37 120 2 0 0 0 37 120 

This E. Schneider, Vice-Chairman, 

since 1.5.2009 117 27 144 2 0 0 0 27 144 

Dr. Dieter Spälti 37 000 172 39 904 2 0 0 0 76 904 

Peter Spuhler, since 1.5.2009 117 27 144 2 0 0 0 27 144 

Dr. Peter Wirth, until 30.4.2009 23 197 186 18 972 1 0 0 0 42 169 

Total 553 490 1 660 304 520 0 0 11 200 869 210 

1. For the purpose of inclusion in the total compensation, the shares are valued at 102 CHF (average trading price 20 days prior to the March 2009 Board meeting 

[= 121 CHF] less a 16% discount for the three-year restriction on sale). 

2. The shares are valued at 232 CHF (average trading price 20 days prior to the March 2010 Board meeting [= 277 CHF] less a 16% discount for the three-year 

restriction on sale). The ownership of the shares will be transfered on April 28, 2010. 

73

74 


Total 2008 compensation to the members of the Board of Directors 

CHF 


Fixed 

net 

Variable 

net Number Value 1 Number Value 

Contribution 

to 

pension 

plans 

Erwin Stoller, Chairman, 

since 1.5.2008 185 000 266 92 663 0 0 0 277 663 

Dr. Ulrich Dätwyler, Vice-Chairman 102 000 281 97 888 0 0 0 199 888 

Dr. Jakob Baer 90 000 221 76 987 0 0 0 166 987 

Dr. Rainer Hahn 64 000 221 76 987 0 0 0 140 987 

Dr. Dieter Spälti 77 000 221 76 987 0 0 0 153 987 

Dr. Peter Wirth 64 000 221 76 987 0 0 0 140 987 

Kurt Feller, Chairman, until 30.4.2008 112 000 137 47 725 0 0 0 159 725 

Total 694 000 1 568 546 224 0 0 0 1 240 224 

1. For the purpose of inclusion in the total compensation, the shares are valued at 349 CHF (average trading price 20 days prior to the March 2008 Board meeting 

[= 415 CHF] less a 16% discount for the three-year restriction on sale). 

Remuneration of former members of the Board of Directors 

No remuneration was disbursed to former directors and officers. 

Remuneration of the Group Executive Committee 

The Group Executive Committee is remunerated according to the principle of flexible, performance related 

compensation. This remuneration consists of a basic salary, a performance related component in the 

context of the bonus plan, the opportunity to participate in the share purchase plan and the allocation of 

options. The basic salary is derived from salaries paid for comparable positions in the market relevant 

for Rieter (machine manufacturing and automotive component suppliers). The performance related component 

for the CFO is based on consolidated net profit in absolute and percentage terms. For the heads of 

the divisions the operating profit (EBIT) achieved by their division is applicable in absolute and percentage 

terms instead of consolidated net profit. The performance related component amounts to no more than 

80% of the basic salary. 

In the context of the share purchase plan the members of the Group Executive Committee can purchase 

Rieter shares at a variable discount. The number of shares is calculated on the basis of the average price of 

Rieter shares 20 trading days prior to the meeting of the Board of Directors, at which the annual accounts 

are approved, less a discount. The level of discount depends upon the extent to which predefined targets for 

consolidated net profit, return on net assets (RONA) and growth have been achieved. In order to foster 

long-term ties between management and the company, at least two-thirds of the shares acquired in this way 

cannot be sold for three years. 

The members of the Group Executive Committee receive an option to purchase one Rieter registered share 

for each share purchased under the share purchase plan and subject to the three-year restriction on sale. 

The options have a duration of five years and can be exercised for the first time after the end of the second 

year following their allocation. The exercise price is calculated on the basis of the average price on the ten 

trading days immediately preceding the allocation of the option.

Total 2009 compensation to the members of the Group Executive Committee 

CHF 



Fixed 

net 

Variable 

net Number Value 1 Number Value 2 

Contribution 

to 

pension 

plans 

Members of the Executive Commitee 1 805 650 0 7 128 35 640 7 128 228 096 138 064 2 207 450 

Thereof Hartmut Reuter, 

Chief Executive Officer, until 

31.07.2009 419 150 0 3 202 16 010 3 202 102 464 49 664 587 288 

1. For the purpose of inclusion in the total compensation, the shares are valued at 5 CHF (difference between the preferred purchase price [= 97 CHF] and the average 

trading price 20 days prior the March 2009 Board meeting less a 16% discount for the three-year restriction on sale [= 102 CHF]). 

2. One option entitles the holder to purchase one Rieter share at the exercise price of 137 CHF. The awarded options are valued according to the Black-Scholes formula 

at 32 CHF per option. 

Remuneration of former members of the Board of Directors 1 

299 392 CHF to Hartmut Reuter since August 1, 2009 in fulfillment of a current contract of employment. 

1. The contract of employment was terminated prematurely at the beginning of 2010, giving rise to an entitlement to compensation on the part of Hartmut Reuter 

totaling some 1.1 million CHF. This amount is in much the same order of magnitude as the remuneration for 2008, when no bonus was paid. This payment will be 

disbursed in 2010 and disclosed accordingly in the 2010 annual report. If the restructuring program initiated in 2008 under Hartmut Reuter as CEO at that time 

were to yield a positive net result in the years 2011 and 2012, a bonus of 0.15 million CHF would be due for each of these years. Any corresponding financial obligations 

will be disclosed in 2011 and 2012. 

Total 2008 compensation to the members of the Group Executive Committee 

CHF 


Fixed 

net 

Variable 

net Number Value 1 Number Value 2 

Contribution 

to 

pension 

plans 

Members of the Executive Commitee 2 325 000 0 4 305 426 195 4 305 154 980 136 048 3 042 223 

Thereof Hartmut Reuter, 

Chief Executive Officer 775 000 0 1 495 148 005 1 495 53 820 47 648 1 024 473 

Additional fees and payments 

Directorships with other companies 

Loans to directors and officers 

1. For the purpose of inclusion in the total compensation, the shares are valued at 99 CHF (difference between the preferred purchase price [= 249 CHF] and the 

average trading price 20 days prior the March 2008 Board meeting less a 16% discount for the three-year restriction on sale [= 348 CHF]). 

2. One option entitles the holder to purchase one Rieter share at the exercise price of 359 CHF. The awarded options are valued according to the Black-Scholes formula 

at 36 CHF per option. 

No additional fees or other payments were disbursed to the members of the Board of Directors or the 

Group Executive Committee in 2009, nor were severance payments disbursed to any member of the Board of 

Directors or the Group Executive Committee in 2009. 

The Board of Directors rules on whether members of the Group Executive Committee or senior management 

may hold directorships with other companies. As a general rule, only one directorship may be held in order 

to limit demands on time. If the directorship is exercised outside contractually agreed working hours, there 

is no obligation to surrender to Rieter the director’s fees received. 

No loans have been made to members of the Board of Directors or the Group Executive Committee. 

75

76 


Disclosure of the equity holdings of the Board of Directors and the Group Executive Committee (including related parties) 

as of December 31, 2009 (Art. 663c, Swiss Code of Obligations) 

Shares Options 

Expiry date 

2011 

Expiry date 

2012 

Expiry date 

2013 

Expiry date 

2014 

Erwin Stoller, Chairman 8 993 599 475 784 0 

Dr. Jakob Baer 572 118 145 0 0 

Michael Pieper 1 249 154 0 0 0 0 

Hans Peter Schwald 2 181 0 0 0 0 

This E. Schneider 1 0 0 0 0 0 

Dr. Dieter Spälti 1 071 157 145 0 0 

Peter Spuhler 894 223 0 0 0 0 

1. Excluding 428 395 shares held by Forbo International SA. 


Expiry date 

2011 

Expiry date 

2012 

Expiry date 

2013 

Expiry date 

2014 

Wolfgang Drees 302 0 0 302 0 

Peter Gnägi 5 502 450 396 856 2 066 

Urs Leinhäuser 3 974 400 506 868 1 860 

Disclosure of the equity holdings of the Board of Directors and the Group Executive Committee (including related persons) 

as of December 31, 2008 (Art. 663c, Swiss Code of Obligations) 


Expiry date 

2011 

Expiry date 

2012 

Expiry date 

2013 

Expiry date 

2014 

Erwin Stoller, Chairman 8 427 599 475 784 0 

Dr. Ulrich Dätwyler, Vice-Chairman 3 285 157 185 0 0 

Dr. Jakob Baer 484 118 145 0 0 

Dr. Rainer Hahn 1 875 157 145 0 0 

Dr. Dieter Spälti 981 157 145 0 0 

Dr. Peter Wirth 1 276 157 145 0 0 


Expiry date 

2011 

Expiry date 

2012 

Expiry date 

2013 

Expiry date 

2014 

Hartmut Reuter, Chief Executive Officer 9 066 699 886 1 495 0 

Wolfgang Drees 302 0 0 302 0 

Peter Gnägi 5 156 450 396 856 0 

Urs Leinhäuser 2 948 400 506 868 0

Proposal of the Board of Directors 

for the appropriation of profit (2009 financial year) 

Rieter Group . Annual Report 2009 . Proposal of the Board of Directors 

CHF 2009 2008 

Net profit for the year 979 653 2 909 032 

Retained earnings brought forward from previous year 43 711 178 40 802 146 

Retained earnings at the disposal of the Annual General Meeting 44 690 831 43 711 178 

Proposal 

Retained earnings 44 690 831 43 711 178 

Retained earnings at the disposal of the Annual General Meeting 44 690 831 43 711 178 

77

78 


Report of the statutory auditor on the financial statements 

Report of the statutory auditor on the financial statements to the General Meeting of Rieter 

Holding Ltd., Winterthur 

As statutory auditor, we have audited the financial statements of Rieter Holding Ltd., which 

comprise the income statement, balance sheet and notes (pages 68 to 77 and pages 64 and 65), 

for the year ended December 31, 2009. 

Board of Directors’ responsibility 

The Board of Directors is responsible for the preparation of the financial statements in accordance 

with the requirements of Swiss law and the company’s articles of incorporation. This responsibility 

includes designing, implementing and maintaining an internal control system relevant to the 

preparation of financial statements that are free from material misstatement, whether due to 

fraud or error. The Board of Directors is further responsible for selecting and applying appropriate 

accounting policies and making accounting estimates that are reasonable in the circumstances. 

Auditor’s responsibility 

Our responsibility is to express an opinion on these financial statements based on our audit. 

We conducted our audit in accordance with Swiss law and Swiss Auditing Standards. Those 

standards require that we plan and perform the audit to obtain reasonable assurance whether 

the financial statements are free from material misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and dis- 

closures in the financial statements. The procedures selected depend on the auditor’s judgment, 

including the assessment of the risks of material misstatement of the financial statements, 

whether due to fraud or error. In making those risk assessments, the auditor considers the internal 

control system relevant to the entity’s preparation of the financial statements in order to 

design audit procedures that are appropriate in the circumstances, but not for the purpose of 

expressing an opinion on the effectiveness of the entity’s internal control system. An audit also 

includes evaluating the appropriateness of the accounting policies used and the reasonableness 

of accounting estimates made, as well as evaluating the overall presentation of the financial 

statements. We believe that the audit evidence we have obtained is sufficient and appropriate 

to provide a basis for our audit opinion.


Opinion 

In our opinion, the financial statements for the year ended December 31, 2009 comply with 

Swiss law and the company’s articles of incorporation. 

Report on other legal requirements 

We confirm that we meet the legal requirements on licensing according to the Auditor Oversight 

Act (AOA) and independence (article 728 CO and article 11 AOA) and that there are no circumstances 

incompatible with our independence. 

In accordance with article 728a paragraph 1 item 3 CO and Swiss Auditing Standard 890, we 

confirm that an internal control system exists which has been designed for the preparation of 

financial statements according to the instructions of the Board of Directors. 

We further confirm that the proposed appropriation of available earnings complies with Swiss 

law and the company’s articles of incorporation. We recommend that the financial statements 

submitted to you be approved. 

PricewaterhouseCoopers AG 

Urs Honegger Nicolas Mayer 

Audit expert 

Auditor in charge 

Zurich, March 18, 2010 

79

80 Rieter Group . Annual Report 2009 . Review 2005 to 2009 

Review 2005 to 2009 

Consolidated income statement 

2009 2008 2007 2006 2005 

Sales CHF million 1 956.3 3 142.5 3 930.1 3 579.9 3 122.0 

• Europe CHF million 901 1 450 1 728 1 598 1 439 

• Asia 1 

CHF million 405 791 1 206 1 003 775 

• North America CHF million 433 589 715 726 722 

• Latin America CHF million 182 257 204 172 156 

• Africa CHF million 36 56 77 81 30 

Corporate output CHF million 1 846.5 2 971.7 3 822.8 3 447.5 3 035.6 

Operating result before interest, taxes, 

depreciation and amortization (EBITDA) CHF million – 45.7 – 52.6 437.0 325.6 313.4 

• in % of corporate output – 2.5 – 1.8 11.4 9.4 10.3 

Operating result before interest and taxes (EBIT) CHF million – 186.6 – 312.1 278.7 180.6 183.0 


Net result 2 

CHF million – 217.5 – 396.7 211.5 157.4 138.1 


Return on net assets (RONA) in % – 19.5 – 28.1 13.8 10.8 10.2 

Consolidated balance sheet 

Non-current assets CHF million 886.5 929.3 1 192.0 1 152.0 1 159.6 

Current assets CHF million 927.6 1 159.6 1 655.4 1 732.6 1 555.1 

Equity attributable to Rieter shareholders CHF million 587.2 689.9 1 309.4 1 320.5 1 192.2 

Equity attributable to minority interests CHF million 68.7 56.3 60.1 54.9 70.0 

Non-current liabilities CHF million 399.3 418.9 321.6 318.1 515.0 

Current liabilities CHF million 759.1 923.8 1 156.3 1 191.1 937.5 

Total assets CHF million 1 814.1 2 088.9 2 847.4 2 884.6 2 714.7 

Shareholders’ equity in % of total assets 36.2 35.7 48.1 47.7 46.5 

Consolidated statement of cash flows 

Net cash from operating activities CHF million – 1.6 57.2 394.9 252.6 242.8 

Net cash used for investing activities CHF million – 33.2 – 35.8 – 118.5 – 84.9 – 322.8 

Net cash from financing activities CHF million – 27.8 8.8 – 309.5 – 67.5 – 123.0 

Net liquidity CHF million 10.4 – 36.8 144.5 147.3 96.7 

Number of employees at year-end 12 761 14 183 15 506 14 826 14 652 


2. Net result before deduction of minority interests.

Information for investors 

Rieter Group . Annual Report 2009 . Review 2005 to 2009 

2009 2008 2007 2006 2005 

Share capital CHF million 23.4 21.4 22.3 22.3 22.3 

Net profit of Rieter Holding Ltd. CHF million 1.0 2.9 67.4 63.4 49.3 

Gross distribution CHF million 0.0 1 0 62.8 62.1 41.5 

Payout ratio (in % of net profit) 2 

in % 0 0 32 42 33 

Market capitalization (December 31) CHF million 1 085 651 1 966 2 661 1 624 

Market capitalization in % of 

• sales in % 55 21 50 74 52 

• equity attributable to Rieter shareholders in % 185 94 150 202 136 

1. Proposed by the Board of Directors (see page 77). 

2. Net profit after deduction of minority interests. 

Data per share (RIEN) 

2009 2008 2007 2006 2005 

Share prices on the SIX Swiss Exchange high CHF 270 505 717 641 393 

low CHF 95 151 478 387 328 

Price/earnings ratio high – 5.3 – 4.8 14.9 18.0 12.8 

low – 1.9 – 1.4 9.9 10.9 10.6 

Shareholders’ equity (Group) per registered share CHF 126.42 181.25 332.86 316.34 286.29 

Tax value per registered share CHF 233.50 171.00 500.00 637.50 390.00 

Gross distribution per registered share CHF 0.00 1 0.00 15.00 15.00 10.00 

Gross yield on registered shares high in % 0.0 1 0.0 2.1 2.3 2.5 

low in % 0.0 1 0.0 3.1 3.9 3.0 

Earnings per share CHF – 50.96 – 106.18 48.19 35.53 30.80 

1. Proposed by the Board of Directors (see page 77). 

81

All statements in this report which do 

not refer to historical facts are forecasts 

for the future which offer no guarantee 

whatsoever with respect to future performance; 

they embody risks and uncertainties 

which include – but are not confined 

to – future global economic conditions, 

exchange rates, legal provisions, market 

conditions, activities by competitors 

and other factors which are outside the 

company‘s control. 

March 2010 

This is a translation of the 

original German text. 

© Rieter Holding Ltd., Winterthur, Switzerland 

Copy: 

Rieter Management AG 

Concept and design: 

MetaDesign, Zurich 

Photos: 

flashpointstudio, Freiburg i. Br. 

Vision Kraft, Maharashtra 

Rainer Wolfsberger, Zurich 

René Seitz, Zurich 

PublishingSystem: 

Multimedia Solutions AG, Zurich 

Printing: 

Druckmanufaktur, Urdorf

Annual Report 2009 - Rieter

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