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  • Big Data

    Smart manufacturing generates large, automatically recorded volumes of data which no longer can be analyzed using traditional methods. Evaluating this information and drawing the right conclusions is one of
    the challenges of the Fourth Industrial Revolution. This requires powerful data analytics to identify weak points, optimization potential and trends.

  • CYBER-PHYSICAL SYSTEMS (CPS)

    Cyber-physical systems are computer-controlled sociotechnical systems which acquire data on their own and actively influence processes. They utilize the Internet and are deployed in logistics, production and management. Cyber-physical systems are at the core of smart manufacturing.

  • Smart Factory

    Smart factories are manufacturing environments in which products and production facilities communicate with each other, allowing for optimal control of the manufacturing process. Everything from logistics to power supply to infrastructure is networked using interactive technologies, resulting in a direct exchange of information.

  • Industrial Internet of Things (IIoT)

    The Internet of Things holds tremendous promise. Using the right software, objects are able to capture information, communicate with each other and respond to situations via the Internet. In smart industrial environments, this capability is actively leveraged to boost efficiency.

  • Machine to machine (M2M)

    M2M describes the sharing of information between end devices such as machines, storage containers and vehicles, either with each other or with a central system. In production environments, this automatic exchange of information via the Internet increases productivity and saves resources.

  • Predictive Maintenance (PM)

    Predictive maintenance aims to reduce production downtimes. Measuring and monitoring equipment is used to schedule facility maintenance ahead of time, taking into account service life, operating conditions and the current state of the facility.

  • Mass Customization

    This seeming contradiction is a distinct industrial trend. Its goal is to customize mass-produced items using variations of key features. This enables demand- driven production and makes it possible to precisely meet customer needs.

  • Agile Manufacturing

    Agile manufacturing is driven by what customers want. This allows companies to respond quickly and flexibly to customer or market needs without any loss in quality or additional costs. Derived from lean manufacturing, the agile manufacturing concept results in a clear competitive edge.

 
 
 
 

Report to the shareholders

Success based on continuous investments

 
 

Dr. Thomas Schmuckli, Chairman of the board of directors and David Dean, CEO

Dear Shareholders,

The 2016 fiscal year underlined impressively the growth potential of the Bossard Group arising from its premium product and services portfolio. In 2016, we again generated record sales and profits. Sales rose by 5.9 percent to CHF  695  million, and net income grew by an impressive 14.6 percent to CHF  62.4  million. Performance in all market regions (Europe, America and Asia) improved, although business in individual countries continued to be difficult. Fortunately, we were able to make headway toward our ambitious profitability targets. While the previous year had been plagued with the challenges precipitated by the appreciation of the Swiss franc, operating profitability rallied in 2016 to well above the industry average.

Undaunting commitment in America

Our America business grew by leaps and bounds in 2016. The surge in business volume was largely due to our cooperation with the leading US electric vehicle manufacturer and its soaring production volumes. Our commitment to this customer, demonstrated by substantial upfront investments since 2010, is indeed paying off. A mutually binding contract extension until 2020 reflects the successful cooperation and esteem the two companies have for one another.

For years we have been selectively expanding our America business because we see enormous potential for profitable growth in this region. This commitment is underscored by the acquisition of Aero-­Space Southwest, Inc. in 2015. In November 2016, Bossard acquired Massachusetts-based Arnold Industries, Inc., a distributor of premium fastening solutions and thus perfectly aligned with Bossard’s philosophy. Arnold Industries is an expert supplier to the electronics, computer and medical technology industries – sectors in which Bossard has gained a wealth of experience in other regions of the world. The acquisition of Arnold Industries solidified our presence in the Northeast of the USA. Bossard already has a presence in a number of major industrial locations in America. 

The Technology and Development Center we opened in Silicon Valley at the end of 2016 also reflects our focus on the USA. The center ties into our mission to supply complex and advanced fastening solutions in a highly innovative business landscape.

Vigorous investment

Expanding our America business required considerable investment. In addition, we spent substantial funds in other regions of the world to solidify and expand our market presence. Most recently, we expanded capacities and infrastructures in Germany, Denmark, China, South Korea, Thailand and Malaysia. Overall investments from 2014 to 2016 totaled over CHF  30  million, reflecting this stepped-up commitment. With these efforts, we are building a sustainable foundation on which Bossard can continue to grow organically and successfully.

Noteworthy projects include the new technology and logistics center in Hvidovre near Copenhagen, which plays a key role to opening up the Scandinavian markets. Another is expanded capacity in Illerrieden, Germany, where a state-of-the-art 6,100 square meters’ logistics center was built that will serve customers in Germany and other European countries. In late 2016 Bossard moved into a new distribution and technology center in Shanghai that will help us expand our market presence in China. As you can see, valued shareholders, Bossard is investing a great deal in its future. And this willingness to invest is one of the keys to the success we have enjoyed over the past several years.

To make Industry 4.0 tangible

The trend toward intelligent factories within the context of Industry 4.0 will become increasingly important for our customers in the coming years. With our Smart Factory Logistics methodology, we have developed a system that helps our customers work more effectively and efficiently in this environment. It is not surprising then that RWTH Aachen University chose our methodology for a demonstration factory that shows how a production facility of the future will operate in the real world. RWTH Aachen offers a practical and hands-on opportunity to experience Industry 4.0. We are also cooperating with universities in other countries that value our practical experience. Making Industry 4.0 tangible is a frequent request. With Smart Factory Logistics, Bossard demonstrates how the link between the supply chain and the assembly line works.

Bossard is aware that many industrial companies are still at the very beginning of this transformation process. But many entrepreneurs know that this is the way to boost productivity and that moving towards Industry 4.0 is a must. In this situation, Bossard benefits from all the groundwork it has done over the years. We are ready for those customers that want to take the next steps toward Industry 4.0, and we are pleased to be able to offer solutions that drive this transformation, thus making Industry 4.0 tangible. The trend toward intelligent factories within the context of Industry 4.0 will become increasingly important for our customers in the coming years.

Long-term thinking, responsible action: the basis for success

The aviation industry, our engagement to the automotive industry, the expansion of our America business, and major investments in various countries: A fiscal year like 2016 is much more than a succession of quarterly figures. Over the months, various strategic decisions were made that significantly affect the company’s future success. And much of what we accomplished in 2016 should be seen as the basis for future growth. In some cases, measurable results may not manifest themselves in 2017. It is critical to the company, however, that we safeguard our perspectives for growth over the medium and long term. The evidence lies in the many investments we made in 2016, but also in the vigor we bring to each project as we continually break new ground by taking on highly complex tasks from demanding customers. It is in this spirit that we express our confidence in the continued success of the Bossard Group. We are convinced that this forward-looking strategy is in the interest of all our stakeholders: our customers, our employees, and especially you, our valued shareholders. Not only have you given us your loyalty and trust, your feedback and recommendations have been pivotal to our growth. Please accept our heartfelt gratitude.

Dr. Thomas Schmuckli
Chairman of the board of directors

David Dean
CEO

Zug, February 27, 2017

Dear Shareholders,

The 2016 fiscal year underlined impressively the growth potential of the Bossard Group arising from its premium product and services portfolio. In 2016, we again generated record sales and profits. Sales rose by 5.9 percent to CHF  695  million, and net income grew by an impressive 14.6 percent to CHF  62.4  million. Performance in all market regions (Europe, America and Asia) improved, although business in individual countries continued to be difficult. Fortunately, we were able to make headway toward our ambitious profitability targets. While the previous year had been plagued with the challenges precipitated by the appreciation of the Swiss franc, operating profitability rallied in 2016 to well above the industry average.

Undaunting commitment in America

Our America business grew by leaps and bounds in 2016. The surge in business volume was largely due to our cooperation with the leading US electric vehicle manufacturer and its soaring production volumes. Our commitment to this customer, demonstrated by substantial upfront investments since 2010, is indeed paying off. A mutually binding contract extension until 2020 reflects the successful cooperation and esteem the two companies have for one another.

For years we have been selectively expanding our America business because we see enormous potential for profitable growth in this region. This commitment is underscored by the acquisition of Aero-­Space Southwest, Inc. in 2015. In November 2016, Bossard acquired Massachusetts-based Arnold Industries, Inc., a distributor of premium fastening solutions and thus perfectly aligned with Bossard’s philosophy. Arnold Industries is an expert supplier to the electronics, computer and medical technology industries – sectors in which Bossard has gained a wealth of experience in other regions of the world. The acquisition of Arnold Industries solidified our presence in the Northeast of the USA. Bossard already has a presence in a number of major industrial locations in America. 

The Technology and Development Center we opened in Silicon Valley at the end of 2016 also reflects our focus on the USA. The center ties into our mission to supply complex and advanced fastening solutions in a highly innovative business landscape.

Vigorous investment

Expanding our America business required considerable investment. In addition, we spent substantial funds in other regions of the world to solidify and expand our market presence. Most recently, we expanded capacities and infrastructures in Germany, Denmark, China, South Korea, Thailand and Malaysia. Overall investments from 2014 to 2016 totaled over CHF  30  million, reflecting this stepped-up commitment. With these efforts, we are building a sustainable foundation on which Bossard can continue to grow organically and successfully.

Noteworthy projects include the new technology and logistics center in Hvidovre near Copenhagen, which plays a key role to opening up the Scandinavian markets. Another is expanded capacity in Illerrieden, Germany, where a state-of-the-art 6,100 square meters’ logistics center was built that will serve customers in Germany and other European countries. In late 2016 Bossard moved into a new distribution and technology center in Shanghai that will help us expand our market presence in China. As you can see, valued shareholders, Bossard is investing a great deal in its future. And this willingness to invest is one of the keys to the success we have enjoyed over the past several years.

To make Industry 4.0 tangible

The trend toward intelligent factories within the context of Industry 4.0 will become increasingly important for our customers in the coming years. With our Smart Factory Logistics methodology, we have developed a system that helps our customers work more effectively and efficiently in this environment. It is not surprising then that RWTH Aachen University chose our methodology for a demonstration factory that shows how a production facility of the future will operate in the real world. RWTH Aachen offers a practical and hands-on opportunity to experience Industry 4.0. We are also cooperating with universities in other countries that value our practical experience. Making Industry 4.0 tangible is a frequent request. With Smart Factory Logistics, Bossard demonstrates how the link between the supply chain and the assembly line works.

Bossard is aware that many industrial companies are still at the very beginning of this transformation process. But many entrepreneurs know that this is the way to boost productivity and that moving towards Industry 4.0 is a must. In this situation, Bossard benefits from all the groundwork it has done over the years. We are ready for those customers that want to take the next steps toward Industry 4.0, and we are pleased to be able to offer solutions that drive this transformation, thus making Industry 4.0 tangible. The trend toward intelligent factories within the context of Industry 4.0 will become increasingly important for our customers in the coming years.

Long-term thinking, responsible action: the basis for success

The aviation industry, our engagement to the automotive industry, the expansion of our America business, and major investments in various countries: A fiscal year like 2016 is much more than a succession of quarterly figures. Over the months, various strategic decisions were made that significantly affect the company’s future success. And much of what we accomplished in 2016 should be seen as the basis for future growth. In some cases, measurable results may not manifest themselves in 2017. It is critical to the company, however, that we safeguard our perspectives for growth over the medium and long term. The evidence lies in the many investments we made in 2016, but also in the vigor we bring to each project as we continually break new ground by taking on highly complex tasks from demanding customers. It is in this spirit that we express our confidence in the continued success of the Bossard Group. We are convinced that this forward-looking strategy is in the interest of all our stakeholders: our customers, our employees, and especially you, our valued shareholders. Not only have you given us your loyalty and trust, your feedback and recommendations have been pivotal to our growth. Please accept our heartfelt gratitude.

Dr. Thomas Schmuckli
Chairman of the board of directors

David Dean
CEO

Zug, February 27, 2017

READ ALL
 
 
 

Highlights

New record highs – improved profitability

Bossard continues on its growth path: Sales, EBIT, and net income reached record highs in 2016. This development confirms our investment policy targeting profitable growth.

 

At a glance

Net Sales
in CHF million

Sales rises by

0%

to a new record level of CHF 695 million.

Geographic Sales Distribution
in %
EBIT
in CHF million

Targeted investments pay off – EBIT increases by 11.6 percent to new record high.

Net Income
in CHF million

Net income increases by 14.6 percent at record high – basis for future growth.

 
 

Corporate Governance

Structure and corporate bodies

The Bossard Group’s organizational structure meets international standards for corporate management. The Group’s corporate bodies and management follow the Directive on Information relating to Corporate Governance of SIX Swiss Exchange as well as the “Swiss Code of Best Practice for Corporate Governance” of economiesuisse.

 

Board of Directors

Dr. Thomas Schmuckli
Chairman of the board of directors since 2007

Dr. Thomas Schmuckli-Grob currently works as a professional board member. Between 1993 and 2013, he held various management positions in the General Counsel division of Credit Suisse Group, initially in the Bank Leu Group and then from 1998 with a break at Credit Suisse. From 2005 to 2007, he headed the legal department of Corporate & Institutional Clients at Credit Suisse in Zurich, afterwards he was Managing Director of the Legal and Compliance Asset Management division in Zurich (2007 to 2013). From 2000 to 2005, he was head of process and product management at Zuger Kantonalbank.

Anton Lauber
Member of the board of directors since 2006

Anton Lauber is an independent management consultant since 2012. From 2008 to 2011, he headed the Schurter AG, the Schurter Group´s Electronic Components division in Lucerne as a delegate of the board of directors of Schurter AG. From 1993 to 2008, he was CEO of Schurter AG and from 1996, he was the delegate of the board of directors of Schurter AG, where he worked as the head of production and technology between 1988 and 1992. Prior to that, he managed the Generator Plant of ABB Switzerland.

Dr. René Cotting
Member of the board of directors since 2015

Dr. René Cotting has held various positions in Switzerland and abroad for the ABB Group since 1995. He is CFO and a member of the executive board of ABB Switzerland since 2013.

Daniel Lippuner
Member of the board of directors since 2015

From 2013 to 2015, Daniel Lippuner headed the Saurer Group in Shanghai, China, and Wattwil, Switzerland, as Group Chief Executive Officer. He took over this position after posts in finance, sales and marketing as well as in general management  with OC Oerlikon, Hilti AG and Autoneum (formerly Rieter Automotive).

Prof. Dr. Stefan Michel
Member of the board of directors since 2011

Prof. Dr. Stefan Michel is a professor for marketing and service management and director of the executive MBA at the IMD Business School in Lausanne, Switzerland since 2008. Between 2003 and 2008, he was as a professor at the Thunderbird School of Global Management in Arizona, USA. Prior to this, he taught as a professor at the Lucerne University of Applied Sciences and Arts, managed a family-run hotel and worked at Bank Leu in Zurich.

Maria Teresa Vacalli
Member of the board of directors since 2013

Maria Teresa Vacalli is CEO of Moneyhouse since 2016. Between 2008 and 2016 she has directed the wholesale unit at Sunrise Communications AG, Zurich, and was appointed executive director in 2014. Between 2002 and 2008, she worked in various executive positions at upc cablecom GmbH, Zurich. Before that, she had been employed in managerial posts in different companies.

Helen Wetter-Bossard
Member of the board of directors since 2002

Helen Wetter-Bossard is responsible for the operational management of her own family business. Between 2005 and 2011, she was a member of the auditing committee of the Corporation of Zug, which she has chaired since 2009. From 1996 to 1999, she worked as a clerk to Canton Lucerne’s administrative court.

Executive Committee

David Dean
Group CEO since 2005

From 1998 to 2004, David Dean served as CFO of Bossard Group. He was corporate controller of Bossard Group in the period from 1992 to 1997. Between 1990 and 1992, he was corporate controller and a member of the executive committee of an international logistics group. From 1980 to 1990, he worked for PricewaterhouseCoopers AG in various auditing and business consulting functions.

Stephan Zehnder
Group CFO since 2005

From 1996 to 1997, Stephan Zehnder was a controller in Bossard’s corporate finance unit. In 1998, he took over the function of corporate controller of Bossard Group, remaining in this position until the end of 2004. Prior to this, he was employed by various international companies in functions concerned with finance and controlling.

Beat Grob
CEO Central Europe since 2006

Beat Grob joined Bossard in 1995 as a project manager in logistics; the following year, he became head of logistics for Bossard Group. From 2005 to 2016 he was managing director of Bossard Switzerland.

Dr. Daniel Bossard
CEO Northern & Eastern Europe since 2009

From 2006 to 2008, Dr. Daniel Bossard served as sales & marketing manager of Bossard Group and was responsible for the reorientation of Bossard´s sales strategy as well as the development of international customer relations. From 2003 until 2006, he was CEO of Bossard Denmark. He joined Bossard in 2000 as an e-business manager, after having worked as a consultant for Andersen Consulting (Accenture).

Steen Hansen
CEO America since 2008

From 2006 to 2008, Steen Hansen served as the president of Bossard IIP, Cedar Falls, Iowa. He was responsible for the Group’s logistics between 2004 and 2006, having joined Bossard in 2001 as head of logistics for Bossard Denmark. Prior to joining Bossard, he filled various management positions, the last being supply chain manager at Nomeco Denmark, a leading wholesaler for pharmaceuticals.

Robert Ang
CEO Asia since 2009

From 2005 until 2009, Robert Ang was responsible for Bossard Greater China (China, Taiwan) and prior to that, the Southeast Asia region. From 1997 until 1999, he was CEO of Bossard Singapore. Robert Ang managed his own company from 1994 until it was acquired by Bossard in 1997. He spent the four years prior as a product manager for Conner Peripherals and Optics Storage Pte Ltd. in Singapore. Between 1986 and 1989 he worked as a buyer at Printronix AG.

Dr. Frank Hilgers
Group CCO since 2015

Dr. Frank Hilgers heads the business units of KVT-Fastening since 2012. From 2009 to 2012, he was a member of the KVT-Koenig management team in charge of sales, product management and the fastening systems division. During his employment at Continental between 2007 and 2009, he was in charge of all national organizations of the spare parts business and key account management in the Commercial & Special Vehicle area. From 2004 to 2007, he headed Group Strategy and Business Development at Siemens VDO Automotive. As senior manager for strategy, Dr. Frank Hilgers was in charge of major international projects at Accenture from 1997 until 2004.

 
 

Compensation Report

Compensations in the 2016 fiscal year

The compensation report describes the compensation principles and programs as well as the governance framework related to the compensation of the board of directors and the members of the executive committee of Bossard Holding AG. The report also provides details around the compensation awarded to those two bodies in the 2016 fiscal year.

 
 

Financial Report

New record highs – improved profitability

Bossard continues on its growth path: Sales, EBIT, and net income reached record highs in 2016. Sales grew by 5.9 percent to CHF 695.0 million, with substantial contributions from the European and American market regions. Business in America was particularly impressive, not only because of the acquisition of Arnold Industries but also because of the solid performance of our existing business. EBIT improved a notable 11.6 percent to CHF 78.5 million. This development confirms our investment policy targeting profitable growth. Upward-trending profitability after the appreciation of the Swiss franc was reflected in the operating margin increase from 10.7 percent to 11.3 percent. Also noteworthy was the 14.6 percent growth in net income to CHF 62.4 million.

 
 

Proven Productivity

Making our customers more competitive

David Dean, CEO Bossard Group

Getting ahead together with our customers means developing solutions that are better, faster, more efficient and more cost-effective and hence help our customers outperform their competition. At Bossard, we call this holistic view "Proven Productivity".

Realize the vision of Smart Factory Logistics

Bossard Smart Factory Logistics not only provides smooth and reliable B- and C-part management, but enables the transformation of your production. The time tested and proven methodology builds on the Internet of Things, thus uncovering hidden potential for productivity improvements and facilitating your supply chain optimization. Position your company ahead of others with Smart Factory Logistics.

How customers benefit from Bossard solutions

Thomas Siegenthaler

Production Manager Traction Converters, ABB Switzerland Ltd.

Successful partnership for a lean factory

“The traction converter is at the heart of every train. We produce such converters in the ABB plant in Turgi. Our customers – train anufacturers – have high expectations of us. To cope with, we need lean workflows, flexible processes and, of course, maximum productivity. Since the implementation of SmartBin, I haven't come across any missing C-parts. This ensures reliability and lies at the heart of process stability and timely handling and delivery of our products. I firmly believe that the close partnership between Bossard and ABB was a crucial factor in the project’s success, a quantifiable success that is evident each and every month. That’s what I call Proven Productivity.”

YD Meng

General Manager Bühler (China) Machinery Manufacturing Co., Ltd.

We chose Bossard not just because of their products but their philosophy of Proven Productivity.

“Bühler is a world-leading producer of food processing machinery. There are many successful cases of our cooperation with Bossard in joint project teams. We are working together on our global supply chain. This includes products as well as efficient processes. Bossard shows us product solutions and logistic concepts, like SmartBin, that help us to reduce costs and to improve productivity. I think this is the biggest value Bossard brings to us.”

Shi Yanyu

General Manager Excavator Division, SDLG Construction Machinery Co., Ltd.

Close cooperation increases product safety and reduced inventory by 75 %.

“At SDLG’s headquarters in Linyi, we produce 20,000 excavators and 50,000 wheel loaders every year. For us, safety is our top priority. Initially, screws from other uppliers were breaking during the assembly. Now, the fastener solutions from Bossard guarantee the safety of our machines, which helped us to lower process costs and to increase productivity. In addition, by introducing SDLG to SmartBin, we were able to reduce our stock level by 75% without compromising availability. We will for sure strengthen our cooperation with Bossard for improved product solutions and logistics.”

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