2014
REPORT TO
FISCAL YE AR
KEY FIGURES
Consolidated income statement
in TCHF 2014 2013
Net sales 315 846 202 655
Operating income after costs of products and services 133 490 102 544
in % of net sales 42.3% 50.6%
EBITDA –95 588 −117 294
in % of net sales –30.3% −57.9%
EBIT –161 796 −196 848
in % of net sales –51.2% −97.1%
Net result for the year –134 708 −162 817
Consolidated balance sheet
in TCHF 31.12.2014 31.12.2013 Total assets 755 899 784 017 Current assets 370 548 377 719 Long-term assets 385 351 406 298 Current liabilities 144 693 200 894 Non-current liabilities 258 775 174 502 Equity 352 431 408 621 Equity ratio 46.6% 52.1% Net sales in CHF million
Total balance sheet
in CHF million Equity in CHF million EBITDA in CHF million 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 0 250 500 750 1000 1250 1500 0 0 −1 50 −1 00 −50 0 50 10 0 15 0 200 250 300
CONTENTS
The Annual Report 2014 consists of two parts: Company Profile and Report to Fiscal Year 2014.
Both documents are available on the company website:
http://www.meyerburger.com/en/investor-relations/financial-reports- publications/reports/
((Dunklere Flächen werden bis auf die Längsstreifen hell gemacht, Querlinien wegretuschiert, so dass der Titel auf ruhigem Hintergrund steht))
CORPOR ATE PROFILE HIGH-END SOLUTIONS FOR HIGH-TECH INDUSTRIES
88828_MB_Profil_2014_E.indd 1 12.03.15 10:34
REPORT TO FISCAL
YEAR 2014
MANAGEMENT REPORT
2 Management report 2014 14 SustainabilityCORPORATE GOVERNANCE
28 Group structure, shareholders31 Capital structure
37 Board of Directors
48 Executive Board
52 Shareholders’ participation rights
53 Change of control and defence measures
53 Auditors
55 Information policy
REMUNERATION REPORT
56 Remuneration report 201470 Report of the statutory auditor
FINANCIAL STATEMENTS
74 Consolidated financial statements79 Notes to the consolidated financial statements
120 Report of the statutory auditor
122 Financial statements Meyer Burger Technology Ltd
124 Notes to the financial statements
132 Report of the statutory auditor
OTHER INFORMATION
134 Information for investors and media
136 Address details
CORPORATE PROFILE
MEYER BURGER GROUP
U Company profile
1 Our global activities
LETTER TO SHAREHOLDERS
2 High growth opportunities
VISION AND STRATEGY
6 Our vision, strategy and values
COMPETENCIES AND TECHNOLOGIES
8 High-end solutions for high-tech industries
16 Specialised Technologies
EMPLOYEES
18 Employees of our Group
FIVE-YEAR SUMMARY
20 Key figures 2010–2014 Meyer Burger Report to Fiscal Y ear 2 0142014
REPORT TO FISCAL YE AR 88828_MB_Bericht_2014_E.indd 1 12.03.15 10:30 Meyer Burger Berichterstattung Geschäftsjahr 2 0142014
BERICHTERSTAT TUNG GESCHÄF TSJAHR 88828_MB_Bericht_2014_D.indd 1 12.03.15 10:31As in the previous year, the countries installing the largest amount of PV capacity were China, Japan and the USA. This clearly shows that the major economies in the world’s “sunbelt” are implementing their long-term plans to expand the solar industry. Photovoltaic is being acknowledged as an increasingly attractive energy technology from an economic perspective for many countries. When a country develops its own production infrastructure, it reduces its energy depend- ency on other countries, while simultaneously retain-ing the entire added-value of solar production and installations. Arab countries, for instance, are looking to protect their oil reserves and to cover domestic energy needs with PV or even export PV modules. China is planning to have a total installed PV capacity of 70 GW by 2017, while India wants to increase capacity by 100 GW until 2022.
Over a five-year period from 2015 to 2019, Meyer Burger addresses a market potential of CHF 18 to 20 billion with its broad portfolio in products and solu-tions and major projects in new PV markets.
In Specialised Technologies (applications outside the
PV industry), orders and sales were generated in a whole range of special markets. Customised process systems for plasma and ion-beam assisted surface treatment procedures were developed and produced for the semiconductor industry, precision optics man-ufacturing, component production for microsystems technology and sensor production, amongst others. Coating equipment based on the core competence in photovoltaics was developed and sold for batteries, OLED and printed electronics. In addition, microwave
MANAGEMENT REPORT
2014
MARKETS AND CUSTOMERS
The strong growth trend in newly installed photovol-taic (PV) capacity at private and commercial end users continued in 2014. Globally, a total of about 40 GW of new PV capacity was installed, an increase of ca. 28% on the previous year. Global installed cap-acity has therefore risen to about 180 GW. Supply and demand for solar cells and modules are
gradu-ally beginning to balance out following years of sus-tained and vigorous growth in PV end user markets coupled with their global expansion. Several cell and module manufacturers have also confirmed that their production capacity was fully utilised in the second half of 2014.
This long-term growth trend will be sustained. End-in-stalled PV capacity is expected to grow by another 50 to 100 GW annually to reach 500 to 600 GW in total by 2020. Keeping up with this market growth and bringing cell and module efficiency up to current stan-dards will require manufacturers of cells and modules to invest in capacity expansion and/or upgrades or completely replace their production equipment. During 2014 and the first months of 2015, Meyer Burger experienced an upturn in demand for technol-ogy upgrades, particularly in orders for MB PERC technology, which allows customers to significantly boost the cell efficiency and performance of existing solar cell production lines.
INSTALLED PHOTOVOLTAIC CAPACITY
EXPECTED TO GROW FROM 180 GW IN 2014
TO 500–600 GW IN 2020.
ADDRESSED MARKET OF ABOUT
CHF 18–20 BILLION OVER THE NEXT
FIVE YEARS.
ing and cessation of production at GTAT meant staff-ing measures had to be taken at our Colorado Sprstaff-ings facility. Also, a large portion of production material intended for this customer had to be written off in 2014 (for more details, please see the commentary on the 2014 results and the section on employees). The bankruptcy proceedings at GTAT are ongoing and Meyer Burger is in extensive negotiations with GTAT to define the amount that Meyer Burger is owed by GTAT.
systems for industrial heating and plasma systems and components were developed and successfully brought to market. This business field which is inde-pendent of PV, represents a valuable diversification. Our business is further diversified by selling our cut-ting technologies into other industries.
Unfortunately, one customer unexpectedly applied for creditor protection, which affected our staff in Colo-rado Springs and impacted results for 2014: GT Ad-vanced Technologies Inc. (GTAT) announced in Octo-ber 2014 that it had filed for protection under Chapter 11 of the US Bankruptcy Code. Meyer Burger sup-plied GTAT with diamond wire saws and diamond wire materials for cutting sapphire. The Chapter 11
fil-EMERGING NEW PHOTOVOLTAICS MARKETS
45° 0° 45° 1500 kWh/m2 per annum 2200 kWh/m2 per annum 1500 kWh/m2 per annum
Meyer Burger PV markets with its sales and/or project activities Sunbelt
Sunbelt regions with major PV potential (source: EPIA) Meyer Burger companies
Net sales
Net sales increased by 56% to CHF 315.8 million (2013: CHF 202.7 million). This was about in line with our expectations and was mainly created during the second half of the year (CHF 186.8 million in H2 com-pared to CHF 129.0 million in H1 2014). The break-down in net sales changed as follows: Asia achieved 49% of net sales (2013: 45%), Europe 27% (2013: 40%), USA 24% (2013: 14%) and other countries 0.2% (2013: 1%).
Operating income after costs of products
and services
Operating income after costs of products and ser-vices amounted to CHF 133.5 million (2013: CHF 102.5 million). The margin declined by 8.3 percentage
points to 42.3% for fiscal year 2014 (2013: 50.6%). The margin decline is mainly due to high production efforts (manufacturing of machines, costs of materi-als) in connection with the GTAT orders. A large num-ber of machines ready for delivery and diamond wire materials did not become sales-relevant after the Chapter 11 filing and had to be written off. The nor-malised margin without these effects would have been at around 50%.
MANAGEMENT DISCUSSION AND
ANALYSIS OF RESULTS 2014
Meyer Burger achieved a strong increase in net sales compared to the previous year and incoming orders were also above the level of 2013. In terms of profit-ability, the results improved but were still unsatisfac-tory, partly due to non-recurring special items. A cap-ital increase out of authorised capcap-ital in March and the issuance of a convertible bond in September 2014 created sufficient liquidity for the company to close the transitional year 2014 with a solid balance sheet.
Incoming orders
The volume in new orders reached CHF 326.0 million in fiscal year 2014, representing an increase of 13% compared to the previous year (2013: CHF 287.7 mil-lion). The average run-rate of “normal business” was 67% above the level in 2013 and illustrates the upturn in demand for PV solutions and especially PV up-grade systems as well as for Specialised Technolo-gies solutions. Large orders amounted to about CHF 42 million in 2014 compared to CHF 118 million in the previous year.
The book-to-bill ratio (incoming orders to net sales) stood again at >1 and reached 1.03 in fiscal year 2014 (2013: 1.42). The order backlog was at CHF 190.1 million as of 31 December 2014 (31.12.2013:
EBITDA and EBIT
EBITDA for fiscal year amounted to CHF –95.6 million, as it included a substantial amount of non-recurring special items (2013: CHF –117.3 million). Without these special items, the normalised EBITDA would have been at about CHF –75 million in fiscal year 2014. Depreciation and amortisation came to a total of CHF 66.2 million (2013: CHF 79.6 million), of which CHF 20.4 million was for depreciation of property, plant and equipment and CHF 45.8 million reflects sched-uled amortisation of intangible assets, which resulted mainly from the M&A activities in previous years. At EBIT level, Meyer Burger posted a result of CHF –161.8 million (2013: CHF –196.8 million).
Financial result
The financial result, net, amounted to CHF 3.2 million (2013: CHF –14.1 million). Financial expenses include the interest expenses for the 5% straight bond and the 4% convertible bond totalling CHF 8.0 million (2013 for the straight bond: CHF 6.4 million). The val-uation of intercompany loans to foreign subsidiaries led to financial income from unrealised positive for-eign currency translation effects of CHF 15.1 million in 2014 (2013: CHF –3.5 million).
Operating expenses
As a result of the incoming orders received in 2013 and the first half of 2014, the workforce was in-creased during the first six months of 2014, mainly at the production sites of Diamond Materials Tech, Inc. in Colorado Springs and at Meyer Burger Ltd in Thun. With the situation of GTAT, capacities at DMT which had specifically been increased for this project had to be reduced again by the end of October 2014. Over-all 105 positions in Colorado Springs were affected.
The restructuring measures in Hohenstein-Ernstthal that were announced in May 2014 and completed by year-end led to a decrease in personnel of a further 100 positions during the second half of the year. First cost effects of these and other measures are recog-nisable, when both half-year periods are compared (personnel expenses of CHF 84.3 million in H2 versus CHF 95.9 million in H1). However, the full cost effect in an amount of about CHF 30 million will only come through in fiscal year 2015. In 2014, total personnel expenses amounted to CHF 180.2 million (2013: CHF 165.7 million).
Other operating expenses declined by 10% to CHF 48.9 million, despite the increase in net sales (2013: CHF 54.2 million). The main reasons for the decline were a consistent cost management and the release of provisions.
OPERATING EXPENSES EXPECTED TO
BE SUBSTANTIALLY LOWER FOR FISCAL
YEAR 2015.
Taxes
The taxes for 2014 amounted to a tax income of CHF 23.9 million (2013: CHF 48.5 million). The decline in tax income compared to the previous year is due to the lower negative result before taxes, and due to the fact that some group companies did not capitalise loss carry-forwards any further during 2014, as results (on EBITDA level) at several companies had not yet fundamentally improved.
Net result
The net result for fiscal year 2014 came to CHF –134.7 million (2013: CHF –162.8 million). Out of this amount, CHF –132.7 million are attributable to the sharehold-ers of Meyer Burger Technology Ltd (the remaining CHF –2.0 million are attributable to the minority share-holders of Roth & Rau AG). The net result per share amounts to CHF –1.50 (2013: CHF –2.26).
Balance sheet
Total assets were CHF 755.9 million as of 31 Decem-ber 2014 (31.12.2013: CHF 784.0 million). Current assets include cash and cash equivalents of CHF 169.8 million, inventories are CHF 134.4 million.
Long-term assets mainly include property, plant and equip-ment of CHF 141.2 million, intangible assets of CHF 132.1 million and deferred tax assets of CHF 110.2
million.
Total liabilities amounted to CHF 403.5 million, of which trade payables were CHF 35.8 million, cus-tomer prepayments CHF 50.9 million, provisions CHF 20.4 million and financial liabilities CHF 248.1 million. Equity as of 31 December 2014 stood at CHF 352.4 million, reflecting a solid equity ratio of 46.6% (31.12.2013: CHF 408.6 million, 52.1% equity ratio).
Cash flow
Cash flow from operating activities was CHF –152.8 million (2013: CHF –130.4 million). In the operating cash flow, the effects from preparatory works in con-nection with GTAT and further investments into net working capital during the first half of 2014 are partic-ularly pronounced. The operating cash flow before changes in net working capital amounts to CHF –107.7 million (2013: CHF –142.5 million). The
reduc-tion of the cash drain in operating activities was mainly achieved during the second half of 2014.
Cash flow from investing activities amounted to CHF –18.9 million (2013: CHF –7.5 million). Investments into
property, plant and equipment were CHF 18.3 million net and include mainly costs for the expansion of the production capacities in Colorado Springs (due to the GTAT orders), investments into the SWCT line in Thun as well as normal investments.
Cash flow from financing activities was CHF +167.9 million (2013: CHF +176.1 million). The capital in-crease in March and the issuance of the convertible bond in September resulted in net proceeds of CHF 172.7 million for the company during fiscal year 2014.
Following the decision by the Swiss National Bank to abandon the CHF 1.20 minimum rate against the Euro, the Swiss franc surged in value. The EUR and USD exchange rates in particular have a material effect on the results and equity of Meyer Burger Group. The greatest effect the strong Swiss franc has on the accounts of Meyer Burger Group is on unreal-ised foreign currency valuation of intercompany loans (applied at each balance sheet date). These effects are recognised in the financial result. Furthermore, ad-ditional measurement effects result from the transla-tion of financial statements in Euros into Swiss francs, the Group currency (translation effects on the conver-sion of the net assets). The Euro was measured in the consolidated financial statements 2014 at CHF/EUR 1.20. The assumption of a CHF/EUR exchange rate of 1.07 would lead to an effect of CHF 40–50 million on
the reported equity as at 31 December 2014.
RISK MANAGEMENT
Meyer Burger uses various risk management instru-ments to manage the strategic, financial and opera-tional risks facing the Group. The Board of Directors has primary responsibility for evaluating strategic risks. Financial and operational risks are mainly as-sessed by the Executive Board of Meyer Burger Tech-nology Ltd. The results are submitted to the Board of Directors at regular intervals and any necessary counter-measures determined. Risk management is integrated within the company’s management pro-cesses and involves, in particular, Planning, Finance & Controlling, Internal Audit, Production & Logistics, Re-search & Development, Product Management, Sales, IT, Corporate Communications, Human Resources, and external Tax and Legal Consulting.
R&D INVESTMENTS INTO THE FUTURE
In 2014, Meyer Burger once again invested substan-tially in innovation and focused research and devel-opment projects to further strengthen its technologi-cal advantage and current market and product positioning. A total of CHF 59.5 million or 18.8% of net sales was invested in R&D (2013: CHF 63.7 mil-lion and 31.4% of net sales). Research and develop-ment expenses are not capitalised in the balance sheet, but are recognised as an expense in the in-come statement. A total of 395 employees (FTE) worked in research and development (2013: 382 FTE).
CURRENCIES
In 2014, 42% of net sales were generated in Swiss francs (2013: 22%), 37% in Euro (2013: 60%) and 11% in US Dollars. Meyer Burger strives to have as great a share of sales as possible in the currencies in which subsidiaries provide their services. This natural hedging was also applied in 2014, with about 53% of Group production value generated in the two largest centres of competence: Thun in Switzerland and Ho-henstein-Ernstthal in Germany. To hedge against re-sidual currency risks, the company uses forward cur-rency contracts where necessary. It does not hedge against foreign currency risks on the carrying amounts of foreign subsidiaries or on the conversion of the earnings of foreign companies, however.
Net sales by currencies
in 2014
10% Other 37% EUR 11% USD 42% CHF
Occupational safety is also of core importance to Meyer Burger. Risks are minimised and a high degree of process safety achieved through careful analysis of operating procedures and the provision of employee training.
→ For information about financial risk management see Note 3 on page 90.
→ For information about employees see the next section and the corresponding part of the Sustainabil-ity Report on page 16.
EMPLOYEES
At the end of 2014, Meyer Burger Group employed over 1,700 people. The number of people employed on a full-time basis was 1,752 (FTE), compared to 1,781 at the end of 2013. In addition, the Group employed 44 temporary full-time workers (year-end 2013: 194 temporary workers). As mentioned above, headcount in manufacturing rose sharply in the first half of 2014 at the Colorado Springs and Thun sites (by a total of 170 FTE). Following the Chapter 11 filing by GTAT, the capacity added for this project was trimmed back, resulting in the reduction of 105 posi-tions at that site in the fourth quarter of 2014. In Ho-henstein-Ernstthal restructuring measures were exe-cuted, which resulted in a decline of 100 positions. The av erage number of full-time employees in 2014 was 1,857 (2013: 1,898 FTE).
Further improvements were made to the cost struc-tures in Colorado Springs and Thun in January 2015 to reach break-even at the EBITDA level. This im-pacted another 65 positions in total.
→ For more information on Human Resources issues see page 16. Workforce Employees (FTEs) 2014 2013 2012 2011 2010 Total at year-end 1 752 1 781 2 186 2 791 1 276 Production, Logistics 661 675 829 1 342 654 Research, Development 395 382 484 534 197 Sales, Services 475 507 597 615 299 Finance, Administration 221 218 276 300 126 Employees by region in 2014 Employees in 2014 *excluding Switzerland 18% Women 82% Men 13% USA 47% Europe* 12% Asia 28% Switzerland
MANAGEMENT TRAINING
Meyer Burger has long had a focused management development process that seeks wherever possible to fill vacant management posts and key positions with internal candidates. Various management train-ing courses were held over the year, focustrain-ing on man-agement basics, manman-agement tools and manage-ment values, with 14 managers attending.
Several Executive Board workshops also took place that looked at organisation, leadership and business processes. In addition, there were Group Manage-ment workshops over several days on the market, technology, corporate management and organisation with as many as 23 participants, as well as specific leadership workshops on the technologies and mar-kets for photovoltaics and specialised technologies (attended by 38 and 5 people, respectively).
MEYER BURGER BRAND
The brand strategy was adapted and the number of brands reduced in 2014, in order to strengthen the Meyer Burger brand name and increase customer ori-entation. The consolidated brand portfolio now has one strong brand name, four technology labels and three independent individual brands.
The corporate branding strategy is clearly and sus-tainably positioning Meyer Burger as a globally active leading technology group with advanced technolo-gies, flexible solutions and systems and an extensive, quality portfolio of products and services in high-tech industries. The focus on a single corporate brand will increase distinctiveness and recognition in the global market.
The corporate brand combines and represents the entire portfolio of systems, equipment and services from all organisational units. AIS Automation, Muegge and Ortner, which have established market positions outside the core Meyer Burger business, are the only stand-alone technology brands that will continue to independently grow their position in their core mar-kets.
Brand Structure
1st level:
Corporate brand
primary agent, defined as primary brand image across all points of contact
Technology labels
2nd level:
Individual brands
In addition to the corporate brand, specific compe-tences have a distinctive technology label. This guar-antees additional, clear and identifiable added value for the Meyer Burger brand promise.
INNOVATION AND TECHNOLOGY
An innovative and market-oriented Research & Devel-opment department provides solutions to future cus-tomer requests flexibly and in advance. For instance, this can be evolutionary improvements and upgrades. At the same time, it is important not to miss future trends, but rather to actively shape them especially in disruptive technologies. One example of a disruptive technology is the highly efficient Heterojunction tech-nology, which cuts system and module costs and significantly raises energy yield. In 2014, the Meyer Burger Group delivered important trend setting inno-vations which delivered competitive advantages to our customers through increased productivity and improved efficiency.
Disruptive technologies are a key pillar of our com-pany and for our customers. These technologies de-velop their own momentum towards higher-value product generations, putting our customers in a more attractive competitive position. As a leading technol-ogy group, Meyer Burger deliberately focuses on further developing both evolutionary and disruptive technologies. This way we can successfully offer our customers high-tech products, processes and solu-tions. Another key element is close partnership and intensive cooperation with selected leading research institutions. Our excellent network with these organi-sations sustains our high level of innovation. In Nov-ember 2014, the official opening of our research and development centre for highly efficient cell production
in Hauterive near Neuchâtel received considerable at-tention from politicians and the media. This under-scores our close cooperation with CSEM (Centre Suisse d’Electronique et de Microtechnique) as part of the Swiss-Inno HJT project. Keeping in close touch with leading European research institutions such as CSEM, ISE and INES/CEA ensures Meyer Burger Research capability to concentrate on implementing fundamental research and translate new discoveries into industrially applicable procedures and processes. Meyer Burger enjoyed considerable success with dis-ruptive technologies in 2014. The first PECVD and PVD machines (the key processes for a heterojunc-tion line) were delivered and installed at the custom-ers’ site. In SmartWire Connection technology (SWCT), the parameters for the number and diameter of the wires were further optimised and new alloys indicate further potential for lowering costs.
The highly efficient module line with SmartWire Con-nection technology for the new generation of string-ers was successfully demonstrated to several cus-tomers. Two customers have already placed initial orders for this innovative and efficient product. Heterojunction (HJT) cell efficiency was further im-proved over the year. Our R&D centre Meyer Burger Research reached cell efficiencies of over 23%. The technology and product centre for cells and surface technologies in Hohenstein-Ernstthal achieved an av-erage of 22.5% and a peak of 22.9% under industrial conditions using Meyer Burger GridTOUCH technology.
Once again, combining disruptive Heterojunction and SmartWire Connection technology and processes re-sulted in a new record. The SUPSI testing institute in
Ticino confirmed module performance of 327 Watts peak (Wp) from a 60-cell module with 156×156 mm bifacial cells. This improved performance was achieved solely by optimising process parameters; no addi-tional production stages are required. As a result, kilo-watt hours per Wp were 13% higher and kilokilo-watt hours per sur face 63% higher than from an average standard module with the same number of cells. This is due to the physical properties of the HJT cells, which are better at converting sunlight into energy than standard modules that use multicrystalline sili-con. Since HJT combined with diamond wire technol-ogy and SmartWire Connection technoltechnol-ogy has the lowest levelised cost of energy (LCOE), it will play a major part in the future energy mix.
Meyer Burger also had considerable success in evo-lutionary technologies in 2014, especially in the up-grade business. With the Meyer Burger MAiA cell coating equipment, proven and leading cell efficien-cies are achieved. Existing standard cell lines are fit-ted with passivafit-ted emitter rear contact (PERC) cell architecture at low cost, increasing absolute cell efficiency by 1% and 0.7% for monocrystalline and multicrystalline silicon respectively. With PERC cells, efficiency of 20.74% has been measured for mo-no-crystalline cz-Si and 19.54% for multicrystalline mc-Si, without using selective emitters. This puts MB PERC upgrades well above the industry benchmark, positioning Meyer Burger as market leader. By com-parison with the industry, the Meyer Burger MAiA platform is a very successful upgrade that allows our customers to produce PERC cells that are highly effi-cient and economically optimised in cost/benefit terms. The MB PERC process uses a procedure which significantly reduces the effect of PERC cell degradation, while simultaneously boosting cell per-formance.
In the diamond wire segment, the innovative patented Meyer Burger Diamond Wire Management System (DWMS) won the international solar award in the “PV Process Award” category. Silicon is cut in pendulum mode. This means the diamond wire moves 600 m forwards and 580 m backwards, then 600 m forwards again, cutting the silicon into thin wafers. During the cutting process, the diamond wire is wound up and down on spools on either side of the grid. Meyer Burger has successfully launched this patented wire management tool, which can significantly increase wire performance. If the wire overlapped as it winds up on the spool, it could be damaged. The system separates the spool into a storage part and a working part. On the working part, the diamond wire is wound with minimal pitch, so it does not overlap. As a result, the wire does not come into contact with itself, re-maining sharp and lasting longer. The diamond wire is a major cost factor in the cutting process. The signif-icant improvement in cutting performance generates huge cost savings. In addition, Meyer Burger has de-veloped a new process for using this low-cost cutting process to cut multicrystalline silicon using a diamond wire at low cost as well.
Meyer Burger offers a stringer upgrade solution for the existing global installed base of 300 stringers. These stringers can handle 3 to 5 busbars.
Through-put is also increased by 30% and uptime improved. As an evolutionary upgrade solution, Meyer Burger of-fers the world’s fastest and most economic stringer, with the best price/throughput ratio and unbeatable flexibility for the cells and connectors to be processed. The system is completed by a compatible robot-free layup solution with integrated interconnection and a throughput of 4,000 cells per hour.
To enable the testing of solar cells in astronautics (space travel), Meyer Burger developed an innovative sun simulator which it successfully introduced to the market.
Meyer Burger is already able to measure high-capac-ity, highly-efficient cells in the busbar-free version at industrial speed. A new busbar-free cell measurement method (GridTOUCH) has already been delivered to
cus-tomers.
Today it is possible with Meyer Burger photolumines-cence technology to include electrical material life expectancy as a characteristic in wafer sorting at the measurement stage, which significantly improves sorting. New visual measurement systems are avail-able for screens and LEDs in the sapphire segment.
In Specialised Technologies significant technical successes were achieved at all subsidiaries during the year.
At the “Printed Electronics USA” exhibition in Novem-ber 2014 in Santa Clara, California, subsidiary Roth & Rau B.V. won the Printed Electronic Award 2014 for “Best Technical Development Manufacturing” with its PiXDRO inkjet print technology. The PiXDRO func-tional inkjet print technology won for a series of im-provements in print technology for printed electronics, PCBs, touch panels, printing surfaces, OLED applica-tions and photovoltaic applicaapplica-tions.
Another subsidiary, Roth & Rau – Ortner GmbH, won the Handling Award 2014 in the category “Innovative new Development of a Product or System Solution” for its mobile cleanroom robot SCOUT®. At Motek,
the world’s leading automation trade fair, the first user prize was awarded to outstanding products and sys-tems solutions in manufacturing and assembly auto-mation and innovations in handling technology, robot-ics, materials flow and conveyor technology. The criteria included innovation, novelty, sustainability, commercial viability and use for the end-customer. We are especially proud of the strong valuation we received for the final criterion.
In Specialised Technologies, MicroSystems offers specially designed equipment for surface treatment of ion beams and ion plasma down to atomic resolution. This is used mainly in the semiconductor industry for read/write heads on hard disks, RF-MEMS and optics for high-precision applications in the nanometer range for mirror telescopes, aspheric lenses and stepper optics for extreme ultra-violet EUV lithography. MicroSystems extended its market presence in 2014 with TopCor®, a new calculation and management
software package for precision surface smoothing. In summary, Meyer Burger has significantly moved its technology platform forward in the interests of its cus-tomers while delivering them clear competitive advan-tages during a difficult period. At the same time Meyer Burger has strengthened its technological position and is fully poised to play a leading role in the immi-nent upturn in the market.
LONG-TERM OUTLOOK – ROAD 2020
Solar energy, as an important element in our future energy supply, will continue to enjoy significant growth rates in the coming years and decades. The International Energy Agency (IEA) estimates that in 2030 around 16% of electricity supplies will come from PV facilities (currently it is less than 1%). The IEA assumes that the installed base of PV will rise to around 1,700 GW in 2030 and 4,700 GW in 2050. This compares to 180 GW in 2014 and forecasts of
about 600 GW by 2020.
For our customers, the strong growth in the end-in-stalled PV base means they will have to invest in ca-pacity expansion and/or technology upgrades to keep up with advances in cell and module efficiency and with the rapid market growth. Meyer Burger is addressing this market with the broadest and most cutting-edge technology and product portfolio in the industry, combined with a strong global sales organi-sation.
The top priority in 2015 is to reach break-even at the EBITDA level and achieve net sales of about CHF 400 million. Our target for 2020 is net sales of CHF 1.3 billion, an EBITDA margin of 13% to 15% and achieving good, sustainable operating cash flows. On the path to this long-term goal, over the period 2016–2019 we want to reach strong sales growth, a steady improvement in the EBITDA margin and posi-tive cash flows.
SUSTAINABILITY
CEO STATEMENT
At Meyer Burger, sustainability means the ongoing, future-oriented development of our photovoltaic and specialised technologies and solutions with the goal of helping our customers reach the lowest manufac-turing and production costs in the solar industry while securing the position of solar power in the future global energy mix. This can only be achieved by con-tinuously improving the social, environmental and economic processes in our own technology and pro-duction locations and with a clear focus on the needs of our stakeholders such as customers, shareholders and employees.
In 2014, Meyer Burger’s innovative photovoltaic and specialised technologies were nominated for and won a number of important customer and industry awards recognising innovation and sustainability. Such peer and market recognition not only underscores the research and development achievements of our com-pany but also helps us further sharpen our strategic technological priorities.
By understanding the needs of our customers and the industries we serve, we can continue our develop-ment of sustainable, intelligent technologies which create added value for our stakeholders. We are also able to strengthen our “one face to the customer” strategy which is closely aligned to the needs of our markets. In the year under review, Meyer Burger com-pleted the restructuring of our Global Sales organisa-tion which began in November 2013. By ensuring the important proximity to our customers, Meyer Burger has solidified its position as a technology leader within its markets.
In the past year, Meyer Burger gathered environmen-tal and emissions data for our two main technology and product locations in Thun (CH) and Hohen-stein-Ernstthal (DE). In 2014, the production capacity in both locations clearly increased over the previous reporting year which gave us the opportunity to fur-ther test and evaluate the energy concepts in both locations. As we continue to build up and present a comprehensive picture of the company’s environ-mental management efforts, the data we gather will support our future sustainability initiatives.
Our IT strategy is a strong example of our environ-mental management achievements. Last year, Meyer Burger continued to consolidate and centralise its IT services. In our main data centre in Thun, we have implemented the latest APC cooling technology. The row-based convection system allows us to individu-ally adapt the cooling capacity for each server cabinet which has significantly reduced the energy required for our server management.
We are again pleased to publish these advances and other milestones in our sustainability reporting in accordance with the Global Reporting Initiative (GRI) guidelines this year. Meyer Burger has once more achieved Transparency Level C within the GRI G3 guidelines, as verified by GRI (see GRI Index).
Peter Pauli
INTRODUCTION
Sustainability is an integral part of Meyer Burger’s ev-eryday business and this is now the fourth time the company has provided systematic details of its sus-tainability performance in its Annual Report. The inter-nationally established guidelines for sustainability re-porting as prepared by the Global Rere-porting Initiative (GRI) have again been applied. The report is broken down by the stakeholders that matter to our business: customers, employees, the environment and society. Meyer Burger has once more achieved Transparency Level C.
The sustainability report for the Meyer Burger Group focusses on the company’s two main technology cen-tres located in Hohenstein-Ernstthal (DE) and in Thun (CH). In Hohenstein-Ernstthal, innovative high effi-ciency cell concepts are further developed and in Thun, leading wafer and module technology devel-opment is pursued. With these two locations, the sustainability report covers approximately half of all employees of the Meyer Burger Group and at the same time addresses the main photovoltaic compe-tencies of wafer, cell and module as well as various Specialised Technologies.
http://www.meyerburger.com/en/investor-relations/ financial-reports-publications/reports/
CUSTOMERS
Customer focus
The Global Sales Organisation that Meyer Burger in-troduced in November 2013 further reinforced our unique market position as a systems integrator across the value chain in the solar industry. Restructuring the sales team has produced a powerful organisation with a tighter customer focus. The “one face to the customer” strategy has adapted the corporate struc-ture at Meyer Burger to current market demands. This emphasises the corporate objective of focusing on the customer and offering strong, flexible and local service from simplified structures. Since May 2014, the Global Sales Organisation has been headed by Michael Escher, Chief Commercial Officer and a mem-ber of the Executive Board.
Meyer Burger Group is the leading technology group for innovative systems and processes based on semi-conductor technologies. The company focuses on photovoltaics, but also uses its expertise and technol-ogies in areas of the semiconductor and optoelec-tronics industries and selected high-end markets for semiconductor materials. The company wants its customers to achieve the lowest manufacturing and operating costs (total cost of ownership) in the indus-try by using its systems and processes.
THE GRI CONTENT INDEX FOR THIS SECTION
AND GRI ICON FOR THE APPLICATION LEVEL
SERVICE CAN BE FOUND AT:
Tailor-made customer trainings
Meyer Burger’s technically advanced and innovative products can only reach their full potential if they are run properly. Customers enjoy an extensive range of training options, such as the Meyer Burger Academy Education, basic training modules and customised courses at the company or at the customer site. A comprehensive network of customer service centres ensures optimal onsite service. Customers are also supported by a wide range of technical product fact sheets, manuals and operating instructions, which enable them to achieve maximum performance from their systems.
All Meyer Burger systems and equipment are always checked before delivery. The four-stage safety con-cept is fully embedded in the development process. Direct personal contact with customers is especially important; one way of achieving this is by attending various specialist and industry trade fairs around the world.
EMPLOYEES
During the year under review, further focussing activ-ities took place across the Meyer Burger Group which led to a hiring freeze and a reduction in temporary em-ployees at the Thun location.
At Roth & Rau AG in Germany, further focussing mea-sures resulted in the reduction of nearly 100 employ-ees in the second half of the year. The consequences for the impacted employees were mitigated by setting up a transfer company which worked intensively on advising, placing and training the staff who were made redundant.
As in the previous year, Meyer Burger Group faced the challenge of developing and retaining employees and recruiting new ones. The high volatility in the photo- voltaic market in the past three years has made can-didates reluctant to apply for open positions and it presents a challenge for retaining existing employees. After three very demanding years both for the Group and for employees in the solar industry, Meyer Burger is determined to maintain and motivate staff and give them future oriented career prospects.
Employee structure
Following the organisational adjustments during the year under review, at the end of 2014 a total of 810 (2013: 941) people were working at Meyer Burger in Thun and Roth & Rau in Hohenstein-Ernstthal. Of these, 514 worked in Thun (2013: 583) and 296 (2013: 358) in Hohenstein-Ernstthal. Excluding temporary employees and apprentices/trainees, the workforce in Thun can be broken down into 389 full-time positions (2013: 372 FTEs) and 75 part-time positions (2013: 80 part-time positions), and the workforce in Hohen-stein-Ernstthal into 255 full-time positions (2013: 319) and 21 part-time positions (2013: 22).
The gender breakdown is as follows: in Thun there were 420 male employees (2013: 484) and 94 female employees (2013: 99). The female employees can be broken down into the following categories: 1 member of the Executive Board of Meyer Burger Ltd (2013: 1), 36 senior executives (2013: 33), 49 employees (2013: 55) and 8 apprentices or trainees (2013: 10). This cor-responds to a share of women of 18.3% (2013: 17.0%) in Thun.
At the end of 2014, Hohenstein-Ernstthal had 240 (2013: 280) male and 56 (2013: 78) female employees. Roth & Rau has one woman on the Supervisory Board (2013: 1) and two further women at managerial level. The total share of female employees there is 18.9%
(2013: 21.8%).
Out of a total of 810 people, 150 (2013: 177) are female, equivalent to 18.5% (2013: 18.8%).
The age structure at the Thun site (Meyer Burger Ltd, Meyer Burger Global Ltd and Meyer Burger Technol-ogy Ltd,) once again reflects Meyer Burger’s fairly young workforce. 128 people are under 30 (2013: 176), 308 are between 30 and 50 (2013: 324) and 78
are over 50 years old (2013: 83). Two members of the Executive Board of Meyer Burger Technology Ltd are over 50 years old (2013: 2) and three are between 30 and 50 (2013: 2). All five members of the Board of Di-rectors are over 50 (2013: six, plus one aged 30–50). The workforce at Roth & Rau AG is also relatively
young. 59 people were less than 30 years old (2013: 79), 169 between 30 and 50 (2013: 193) and 68 over
50 years old (2013: 81).
The employees occupy a very wide variety of roles and are divided up at the Thun site into several Levels of Competence and Responsibility (LCRs). These range from LCR 1 (Executive Board) to LCR 5 (em-ployees). Defining the LCRs enables the company to achieve certain nuances within largely standardised terms of employment and salary systems, and as such to address the specific situation of individual employees in different roles.
The fluctuation rate at Meyer Burger in Thun is cur-rently about double the usual rate in the machine in-dustry. This was largely caused by the varying volume of incoming orders and the resulting fluctuation in pro-duction volumes which was absorbed by temporary employees.
The fluctuation rate at the Thun site was 50.2% in the year under review (2013: 41.6%), including temporary staff. Among permanent employees at the Thun site the fluctuation rate amounted to 27.6%. At Roth & Rau it was 39.8% (2013: 19.4%). Total fluctuation was 46.1% (2013: 32.2%).
→ For further information on the subject of Meyer Burger Group’s employees see the Management Report 2014, page 8.
Employee commitment
In the second half of 2014, the Executive Board moved to actively strengthen the Meyer Burger brand and further extend the market position of Meyer Burger Group. To ensure the increased involvement of all employees and to raise their emotional identifica-tion with the brand; a behavioural branding concept was designed and will be rolled out across the Group in 2015. Various activities are planned under the theme “Together to the top”, including brand training, team events, a photo competition, a staff survey and
feedback round, a Meyer Burger event on climbing summits and much more. Employees will be regularly informed about the programme through CEO-mails, the community platform and regular items in the em-ployee magazine MBtimes. This, along with further ef-forts to focus on key issues, will help strengthen em-ployees’ identification with the company.
An anonymous staff survey was conducted at Roth & Rau in 2014. The results were presented to employ-ees at a works meeting. According to the results, the employees can be described as satisfied with Roth & Rau. They appreciate the flexibility of their work, the atmosphere in the company and the cooperation with their colleagues. There are challenges in relation to leadership and training opportunities. The survey will be carried out annually in future to identify both posi-tive and negaposi-tive trends at an early stage. There was no poll at Meyer Burger in Thun in 2014.
Total workforce by location and type of employment
Employees Total Thun Hohenstein-Ernstthal
2014 2013 2014 2013 2014 2013
Permanent employees 740 793 464 452 276 341
Temporary employees 12 84 4 80 8 4
Apprentices and trainees 58 64 46 51 12 13
Total at year-end 810 941 514 583 296 358
Employees Total Thun Hohenstein-Ernstthal
2014 2013 2014 2013 2014 2013
Production, Infrastructure 256 373 142 206 114 167
Research, Development 219 225 141 134 78 91
Administration, Finance/Controlling, HR, IT, CEO 172 163 126 115 46 48
Sales, Services 163 180 105 128 58 52
Safety and health
Several campaigns focussing on employee health were again run during the year, like the Bike to Work event at Thun in June, a fruit drive, summer and win-ter festivals and changing rooms with showers for employees who do sports. In 2014, the company doc-tor at Roth & Rau offered employees flu jabs for the first time. All office staff are also regularly offered the “office workstation health check”. Roth & Rau AG runs a structured corporate health and reintegration man-agement programme. Employees who are absent for medical reasons for more than 30 days during the year are invited to a meeting to discuss possible work-related causes and offered assistance.
As part of her studies, one Human Resource em-ployee in Thun developed a plan to reduce the rate of absence. The recommendations are scheduled for implementation in 2015.
Occupational safety is a core concern for Meyer Burger. Risks are minimised and a high degree of pro-cess safety achieved through careful analysis of oper-ating procedures and the provision of employee train-ing. During the year Meyer Burger added a “safety info pack” to the welcome pack for new employees, aimed at increasing awareness and understanding of safety rules and processes in the company. In the coming year, return to work meetings will also be held to discuss safety with employees who return after ex-tended absences following sabbaticals or illness. In 2014, 19 occupational accidents occurred at the Thun and Hohenstein-Ernstthal sites (2013: 21): 14 in Thun and 5 in Hohenstein-Ernstthal. These resulted in 130 days of absence in Thun and 3 in Hohenstein- Ernstthal (2013: 73 and 113).
Education and training
In addition to English lessons and individual training and specialist courses, seminars were held in Thun on leadership and negotiation. This was part of a focus project to strengthen the sales organisation via training in product, negotiation and selling skills. Man-agement also received training which focussed on leadership development and instruments and also en-compassed leadership values. Additionally some em-ployees in new management or technical positions were offered coaching support.
The main focus at Roth & Rau in 2014 was developing employees’ work-related skills. Sessions were held with internal and external trainers on various issues related to personal development, leadership, organi-sation and methods and appropriate technical train-ing and development.
Meyer Burger continues to place an emphasis on train-ing apprentices. At the end of 2014, there were 44 (2013: 51) apprentices in Thun in the following fields: automation mechanics, IT, business administration, design engineering, logistics and polymechanics. All apprentices who completed their training in June 2014 were very successful: six out of ten remain em-ployed at Meyer Burger.
Starting in summer 2015, Meyer Burger in Thun will also have an apprentice in manufacturing mainte-nance. Spring 2015 will also see the first exchange between the Meyer Burger locations in Thun and China: three apprentices will visit the production site in China with their technical manager.
At the end of 2014, Roth & Rau AG had a total of seven apprentices in the following fields: industrial engineering, mechatronics and electronics for auto-mation technology. Three apprentices completed their training in 2014. As a result of the focusing measures, unfortunately only one person could be offered a per-manent job. The other two were given six-month con-tracts.
The company also provided placements for five stu-dents working towards bachelor and master degrees in micro technology. In addition, Roth & Rau is provid-ing two students with placements as they train to become office administrators. They will complete their final year of training with Roth & Rau in 2015.
Proper conduct
The Meyer Burger Code of Conduct is one of the most important elements in Meyer Burger Group’s corpo-rate and business management. The Board of Direc-tors, the Executive Board and all Meyer Burger employees are expected to conduct themselves in accordance with these guidelines and to complete all their work without exception in compliance with the Meyer Burger Code of Conduct. In the event of uncer-tainty or doubt, employees may approach their line managers, the Code of Conduct Officer or another member of the Executive Board of Meyer Burger Technology Ltd for advice or support. If infringements
of the Code of Conduct come to light, the line man-ager or, in exceptional cases, the Code of Conduct Officer must be informed directly. The Board of Direc-tors has appointed the Chief Financial Officer of Meyer Burger Technology Ltd as the Meyer Burger Group Code of Conduct Officer. Acknowledgement and acceptance of the Code of Conduct form part of the terms of employment which are signed by all new employees. The Code of Conduct can be found on the Meyer Burger website in three languages.
ENVIRONMENT
Innovation and progress
Both the Thun and Hohenstein-Ernstthal sites are housed in new, energy-efficient buildings that meet the latest environmental standards. Meyer Burger in Thun is located in a plus energy building with a planned installed photovoltaic capacity of over 600 kWp. Power is currently derived from 100% renew-able energy from Energie Thun and the entire building is heated and cooled by ground water. The Thun site has been certified under ISO 9001, ISO 14001 and OHSAS 18001.
A concept was developed in 2014 for all solar mod-ules produced at Meyer Burger Thun for the Swiss market to carry an up-front disposal fee. Owners can then have their redundant modules disposed of by Meyer Burger free of charge. This will be rolled out from January 2015.
The Thun site has two electric vehicles, electric bicy-cles and a small fleet of vans and company cars. Charging points are available for electric bicycles and cars too.
The Meyer Burger product portfolio is unique in the solar industry and is constantly being refined and op-timised. Advanced technologies allow customers to significantly reduce material and energy costs during the manufacturing process. This cuts the overall cost of solar energy even further.
Meyer Burger environmental indicators1
2014 2013
Energy consumption in MWh Total 12 916 13 171
Electricity Mwh 8 851 9 247
Total heat Mwh 2 776 2 720
Gas Mwh 1 584 1 992
Heat pump (groundwater) Mwh 1 192 729
Total fuels Mwh 1 290 1 204
Diesel Mwh 1 272 1 163
Petrol Mwh 11 32
LPG/propane Mwh 7 9
Total CO2 emissions in tCO2e Total 5 905 5 516
Scope 1 total tCO2e 665 724
Heating fuels tCO2e 320 403
Vehicle fuels tCO2e 345 321
Scope 2 (electricity) tCO2e 2 978 3 256
Scope 3 (air travel) tCO2e 2 332 1 535
Water consumption in m3 Total 1 155 988 587 225
Drinking water/fresh water m3 14 850 14 677
Groundwater 2 m3 1 141 138 572 548
Waste water m3 Total 14 855 14 677
Municipal sewage treatment plant m3 14 127 13 479 of which, local processing prior to discharge into municipal sewage system m3 728 1 198
Waste
Non-hazardous waste
Residual waste to incineration tonnes 67 48
Residual waste to unknown recycling tonnes 52 35
Composting tonnes 11 15
Wood (burning) tonnes 107 73
Recycling
Paper tonnes 45 45
Cardboard tonnes 36 33
Glass tonnes 9 10
Metal (in particular aluminium, copper, iron, steel) tonnes 167 216
Plastic tonnes 8 7
PET 3 tonnes 3 3
Hazardous waste/Special waste
Batteries, estimated (recycling) tonnes 0.1 1
Waste electrical and electronic equipment (recycling) tonnes 16 296 Oils, fats, chemicals (in particular aqueous solutions) 4 tonnes 576 588 Hazardous waste (in particular slurry) 5,6 tonnes 68 108
Hazardous waste (water-based) 6 m3 46 69
1 Thun and Hohenstein-Ernstthal (Roth & Rau) sites.
2 The groundwater is pumped for heating and cooling purposes and then returned to the groundwater reservoir. The amount of water had to
be increased for a short period during 2014 at the site in Thun due to problems with server cooling.
3 Information on PET recycling at the Thun site is based on estimates.
External recognition
During the year under review Meyer Burger’s ability to innovate was recognised with three major industry awards.
Meyer Burger was recognised with the Solar Award 2014 in the category “PV Process Award” for its Dia-mond Wire Management System (DWMS). Specially designed by Meyer Burger for its diamond wire saws, the DWMS is an enhanced wire winding system which winds and unwinds the wire on spools on either side of the wire web during cutting. Without DWMS, the wire would be wound directly in overlapping windings onto the storage spool and could therefore damage itself. The innovative DWMS design separates the spool into a supplier (storage) part and a working part. On the working part, the wire is wound in non-over-lapping windings with a minimal pitch. This completely eliminates wire to wire contact, thus maintaining wire sharpness and extending the life of the wire. The award is of particular importance because the winner is selected by customers in the PV industry.
→ For further information on the DWMS please refer to page 9 in the Corporate Profile.
The prestigious IDTechEx Printed Electronic Award for the “Best Technical Development Manufacturing” was awarded to the Meyer Burger Group in 2014. The highly respected award recognised the outstanding work by Roth & Rau B.V., a member of the Meyer Burger Group, in designing, building and installing multiple complete manufacturing lines based on its PiXDRO functional inkjet printing technology. The jury acknowledged Roth & Rau’s progress in optimising the process of mass-scale production by improving productivity, quality, reliability, uniformity, and scale.
→ For further information on printed electronics please see page 17 in the Corporate Profile.
Roth & Rau – Ortner GmbH, a member of the Meyer Burger Group, received the “Handling Award 2014” in the category “Innovative new development of a prod-uct or system solution” for its mobile clean room SCOUT® robot. During Motek, the most important
trade fair for automation worldwide, inaugural user awards were presented for outstanding products and system solutions in the manufacturing and assembly automation field as well as innovations in the fields of handling technology, robotics, materials flow and conveyor technology. In addition to innovation and novelty value, the decision-making criteria focused on sustainability, marketability, usability and benefit to the customer.
Green IT
Since the move into the new head office building in Thun in 2012, careful use of resources has been an important area of emphasis when procuring, operat-ing and disposoperat-ing of IT infrastructure. The global pro-curement guidelines prioritise quality and price, but energy efficiency is also a criterion. The goal is to have modern, energy-saving end-devices with mar-ket-standard certificates such as Energy Star. Wher-ever possible, systems that are withdrawn from pro-ductive use continue to be deployed as spare or test systems. Old IT equipment is recycled in collaboration with the GEWA Stiftung für berufliche Integration (a foundation which supports the integration into the workplace of people facing particular psychological challenges); other electrical and electronic waste is disposed of in accordance with the respective site’s waste management concepts.
Further centralisation and consolidation of IT services is set to continue. The main data centre in Thun is maintained with the latest APC cooling technology. Row-based convection cooling means that only the racks, i.e. the server cabinets, are cooled, not the entire room. As a result, cooling performance and redundancy can be adapted to the actual needs of each rack in a targeted way.
A new videoconference system was installed at the end of 2014. Although video conferencing can only partially replace a direct, face-to-face contact, a cer-tain reduction in the need to travel is expected for the coming year thanks to the implementation of this technology.
Suppliers
The Meyer Burger supply chain must always be able to react quickly and flexibly to business fluctuations. Local suppliers are therefore very important. Con-tracts are awarded on the basis of the total cost of ownership, i.e. the total costs that arise until the goods reach the place of installation. The most im-portant selection criteria are quality, price and avail-ability. 2014 saw the launch of restructured goods group strategies, with strategic development mea-sures for supplier management. The new question sheet that suppliers must complete examines sustain-ability issues such as ISO 9001, 14001, 18001, the Social Accountability 8000 standard, human rights standards, business ethics, code of conduct and business continuity plans. The initial results of this new procedure and an audit plan are expected for 2015.
Meyer Burger Ltd and Roth & Rau sourced goods and services from a total of 1,999 (2013: 3,766) suppliers all over the world. Of the 1,035 (2013: 1,517) suppli-ers for Thun, 721 (2013: 1,250) come from Switzer-land and 239 (2013: 170) from Germany; 859 (2013: 928) of Roth & Rau’s 964 (2013: 999) suppliers are from Germany.
At Thun, some 57% (2013: 65%) of total procurement is spent with local suppliers. At Roth & Rau in Hohen-stein-Ernstthal the figure is around 90% (2013: 81%).
SOCIETY
Regional engagement
Thun has a long tradition of mechanical engineering and Meyer Burger is an important employer and player in local public life. The company therefore forms creative partnerships with other local compa-nies, such as Energie Thun. Both companies jointly promote renewable energies and innovation to ensure customers of Energie Thun can continue to enjoy cheap, environmentally friendly electricity. This contri-bution to the energy transition works as part of a per-fect cycle: Energie Thun is also a reliable supplier of electricity to Meyer Burger, which in turn uses a mix-ture of hydro and solar energy to manufacmix-ture innova-tive solar systems that produce solar electricity throughout their useful life. One of several joint pro-jects which have already been completed is the solar power facility on the roof on the sports hall for the secondary school and the commercial college at Thun-Schadau. It officially started operations in May 2014 and produces 2.5 times as much electricity from a 700 m2 area as the building itself uses. All the elec-tricity required for the “Rendez-vous Thun” sound and light show during the town’s 750th anniversary cele-brations in 2014 came from the low-cost and environ-mentally friendly photovoltaic facility on top of the sports hall in Schadau. The show lit up different loca-tions in the old town of Thun after dark, while also making impressive use of sound.
Meyer Burger supports events with the aim of raising the profile of Thun beyond its own regional borders and to inform people about technology and products in the solar value chain as a way of reaching selected target groups. To this end, the company promotes youth sport and supports selected events. The travel-ling exhibition “Strawberries in Winter – a Climate Fairy Tale” is being shown in a number of Swiss cities between 2012 and 2015 and aims in particular to raise awareness among school classes of climate and
environmental issues. Meyer Burger is featured in this exhibition with “From Sand to Solar System”, explain-ing how solar power is created from its source mate-rial, silicon.
In the coming years, Meyer Burger, together with other partners, will finance and install an informative exhibition called “Solar energy – of course!” on the third floor of the Umwelt Arena. Visitors will be intro-duced to the exciting world of photovoltaics, solar heat and solar construction, and learn more about the technologies used to access the inexhaustible energy of the sun. Other parts of the exhibition will also show various innovative systems from Meyer Burger.
Global sponsorship
The sponsorship concept that has been in place since 2011 sets out clear guidelines and areas of focus so that sponsorship is consistent with the corporate strategy. The concept focuses on the themes of sus-tainability, research and development and regional commitment to the promotion of youth sport. In the area of sustainability, Meyer Burger continued to support the Swiss charity Startup Africa in Zim– babwe, delivering ten solar modules from its own pro-duction. After various delays, in April 2014 the mod-ules were finally installed on the roof of the staff cabin at the Kwayedza Lodge. This PV facility now supplies sufficient solar electricity every day to run the solar water pump at the Lodge, and in particular for its associated agricultural operations. Depending on the sunshine, up to 25,000 litres of ground water can be pumped up from a depth of 60 m into a reservoir 50 m higher. The donation from Meyer Burger means the Kwayedza Lodge now has enough energy to run the solar water pump for up to 11 hours every day. The lodge and the staff cabins have sufficient drinking water and a large part of the agricultural land can now be irrigated during the dry season.
Total financial and in-kind sponsorship for projects in 2014 came to CHF 20,000.
Significant public interest
There is huge public interest in solar energy. Meyer Burger experienced this when it moved into the new head office building in May 2012: the number of requests from schools and universities, companies in the same and other industries, political organisations and the general public for tours and information has risen steadily. To meet this strong demand, Meyer Burger developed and successfully implemented a visitor concept during 2014 which reflects the differing needs of the various interest groups and the business interests of Meyer Burger in energy, lobbying and human resources marketing. The concept governs admission criteria and the process, safety and con-duct of the tour, including the staff required. Groups of between 6 and 30 people are now professionally welcomed and they receive an informative tour tailored to their needs. In the reporting year 2014, 18 very different groups such as secondary school children, international government delegations, trade associations, media representatives and training insti-tutions enjoyed tours at Meyer Burger.
A SUCCESS STORY
USING MODULES
FROM MEYER BURGER
Solar panels being installed on the roofs of the staff cabins.
Solar water pump is put into operation.
Kwayedza Lodge now has access to enough fresh water and even the pool can be filled.
Water pump fills water tank with good quality ground water.
Significant amount of agricultural land can be watered during the dry period.
The Company relies on the recommendations of the Swiss Code of Best Practice for Corporate Gover-nance by economiesuisse and adheres to the stan-dards of the directive on information relating to Corpo-rate Governance by SIX Swiss Exchange, if applicable and significant to Meyer Burger.
All information within this Corporate Governance Report and within the Remuneration Report refers to the Company Organisation, Internal Regulations and
Articles of Association that were in effect as of 31 D ecember 2014. The ordinary General Meeting of Shareholders, held on 29 April 2014, approved com-prehensive changes to the Articles of Association in connection with the OaEC (Ordinance against Exces-sive Compensation at stock-listed companies).
→ The current Articles of Association are published on the Company website www.meyerburger.com under section Investor Relations – Articles of Incorpo-ration. Direct link: http://www.meyerburger.com/en/ investor-relations/articles-of-incorporation/
1.
GROUP STRUCTURE AND
SHAREHOLDERS
1.1 Group structure
Meyer Burger Technology Ltd (subsequently referred to as “the Company”) is a holding company organised in accordance with Swiss law and holds all compa-nies belonging to the Meyer Burger Group either directly or indirectly.
Meyer Burger Group is one of the world’s leading pro-viders of innovative systems and production lines based on semiconductor technologies. The entire Group is operationally managed by the Executive Board. The operational Group structure is organised according to different areas of responsibilities of each member of the Executive Board. These responsibili-ties apply across the entire Group and on a global basis.
– Chief Executive Officer (CEO)
Overall Operational Management, Strategy, Corporate Communications, Human Resources – Chief Financial Officer (CFO)
Finance, Controlling, Treasury, Mergers & Acquisi-tions, Investor RelaAcquisi-tions, Tax & Legal, IT
– Chief Commercial Officer (CCO)
Global Marketing & Sales, Global Services – Chief Operating Officer (COO)
Global Supply Chain Management, selective key projects regarding processes and integration, certain selective group subsidiaries which are important in terms of sales, service or supply chain management report directly to the COO
– Chief Innovation Officer (CIO)
Management of Technology Research and Develop-ment along process chain, Technology Roadmap, Control and Organisation of business processes, close cooperation with research institutes
CORPORATE
GOVERNANCE
MEYER BURGER IS FULLY COMMITTED TO
GOOD CORPORATE GOVERNANCE.
wholly owned subsidiary MBT Systems GmbH) held a participation of 95.38% in Roth & Rau AG. Roth & Rau AG itself held no treasury shares as of 31 December 2014. The market capitalisation of the remaining free float of 4.62% of Roth & Rau AG amounted to EUR 3.8 million as of 31 December 2014. Roth & Rau AG had applied to the stock exchange in Frankfurt a.M. in November 2014 that its shares are to be delisted due to the low free float and due to cost/benefit reasons. The last trading day (delisting) of the shares on the stock exchanges of Frankfurt a.M., Berlin, Dussel- dorf, Hamburg and Hanover was 19 December 2014. The trading of the shares on the stock exchanges of
Munich and Stuttgart ended in February 2015.
1.3 Non-listed companies
→ The scope of consolidation as of 31 December 2014 includes non-listed companies, which are listed on page 80/81 in the financial section of this Annual Report.
1.4 Significant shareholders
The Company is aware of the following shareholders, who according to Article 20 SESTA (Stock Exchange Act) held more than 3% of the voting rights based on the share capital registered in the commercial register as of 31 December 2014:
1.2 Listed companies
The shares (registered shares) of Meyer Burger Tech-nology Ltd, headquartered in Thun, Switzerland, are listed on SIX Swiss Exchange (Valor number 10850379, ISIN number CH0108503795). The ticker
symbol is MBTN. Meyer Burger Technology Ltd held
56,359 treasury shares as of 31 December 2014. Other consolidated Group companies held together 619,926 shares of Meyer Burger Technology Ltd as of 31 December 2014. These shares were issued in con-nection with the share participation programme and are reserved for allotment to eligible employees. The total participation held by the entire Group therefore amounts to 0.76% of shares as of 31 December 2014 (based on number of shares as registered in the com-mercial register).
The nominal capital of the subsidiary Roth & Rau AG, headquartered in Hohenstein-Ernstthal (Germany), is recorded in the commercial register of the district court Chemnitz under HRB 19213. The capital amounts to EUR 16,207,045, divided into 16,207,045 bearer shares with a nominal value of EUR 1. During most of fiscal year 2014, these shares were still traded on the stock exchanges of Frankfurt a. M., Berlin, Dusseldorf, Hamburg, Hanover, Munich and Stuttgart. The ISIN number was DE000A0JCZ51 (WKN A0JCZ5) and the ticker symbol R8R. As of 31 December 2014, Meyer Burger Technology Ltd (indirectly through its
