annual report 2010 - aebi schmidt
TRANSCRIPT
KEY FIGURES AEBI SCHMIDT
1
Net sales by segments (in 1`000 Euro) 2010 in % 2009 in %
Aebi products 39'479 12% 41'228 14%
Schmidt products 188'993 60% 189'059 63%
After sales 87'798 28% 68'116 23%
Total net sales 316'270 100% 298'403 100%
Number of employees (full time equivalents) 2010 in % 2009 in %
Germany 413 31% 393 30%
Switzerland 239 18% 259 20%
Poland 279 21% 237 18%
The Netherlands 206 16% 195 15%
Others 178 14% 216 17%
Total employees 1'315 100% 1'300 100%
Balance sheet (in 1´000 Euro) 2010 in % 2009 in %
Current assets 150'272 71% 125'394 66%
Fixed assets 61'709 29% 63'307 34%
Total assets 211'981 100% 188'701 100%
Liabilities 137'702 65% 123'974 66%
Equity (incl. shareholders´ loan) 74'279 35% 64'727 34%
Total liabilities and equity 211'981 100% 188'701 100%
1
Introduction Page 1
Affiliated Companies Page 2
About Aebi Schmidt Page 3
Management Board Page 4
Board of Directors and Shareholders Page 5
Division Sales & Service Page 6
Customer Events Page 11
Division Aebi Page 12
Division Schmidt Page 16
Refinancing Page 20
History Page 22
Sustainability Report Page 23
2
CONTENTS
2
INTRODUCTION
At the beginning of 2010, uncertain economic forecasts and budget cutbacks of the public authorities made us
expect a drop in the business volume. Over the course of the year, these took place in various countries and
partially entailed significant reductions of the market volume. Especially for the Aebi Division, the increasingly
strong Swiss franc additionally diminished the prospects. The fact that Aebi Schmidt is nevertheless able to exhibit
considerable growth in sales and another increase in profit is attributable to three fundamental factors. First of all,
the attractiveness of the product range could once again be increased by introducing new products and services;
as a result of this, further market share improvements could be achieved in various highly competitive segments.
In the second place, the large-scale project business at airports and with important service providers has
undergone another enormous development. Thirdly, heavy snowfalls at the beginning and the end of the business
year provided for a huge demand for servicing and spare parts.
We made especially great efforts regarding the improvement of our service organisation’s customer orientation and
efficiency. Following the challenging winter season, the processes could be significantly streamlined due to the
central spare-parts warehouse setup in 2009. In combination with targeted warehouse expansion measures for fast
moving parts, the availability of spare parts could be substantially improved also in extreme situations such as last
December. Our customers and sales partners equally benefit from these measures.
Aebi Schmidt products substantially contribute to the cleanness and safety of traffic areas and are important tools
for the cultivation of sensitive agricultural areas. We believe that diligence and sustainability in dealing with the
environment are of strategic significance, in particular in respect of these core fields of application. For this reason,
we have subjected our sustainability efforts to the stringent criteria of the independent organisation GRI for the
first time. We are convinced that this investment will be positively reflected both in the sales success and the
economic result.
Substantial investments at the production sites have laid the foundation for further productivity progress. In
particular, we were able to start up the new container production in Holten (Netherlands) at the beginning of the
year and officially open the brand-new factory in Burgdorf (Switzerland) in the spring. However, also the gradual
improvements in St. Blasien (Germany) and the further expansion in Kielce (Poland) are important milestones on
the way to additional optimisations of the production process. The shutdown of the small production plant in
Oerbyhus (Sweden), which has been operating unprofitably for several years, will also contribute to achieving
this goal. The manufacture of products, which cover interesting niche applications in the field of road repair, was
relocated to the Dutch factory.
In financial terms, the Aebi Schmidt has strengthened its position for the future. With an improved equity
capital base and the outside financing newly arranged in summer 2010, we are well-prepared for the next
challenges. We approach 2011 with careful optimism. As a result of the strategically founded significant invest-
ments in innovations, we will again launch various new products in 2011 which we believe will further strengthen
the good market position of our group.
Peter Spuhler Walter T. Vogel
Chairman of the Board of Directors CEO
1
Holding
Aebi Schmidt Holding AG
Thurgauerstrasse 40
8050 Zürich
Rechtssitz:
Bahnhofstrasse 7
9565 Bussnang
Germany
Aebi Schmidt Deutschland GmbH
Albtalstrasse 36
79837 St.Blasien
Aebi Schmidt Deutschland GmbH
Am Rain 53
83088 Kiefersfelden
Schmidt Winterdienst- und
Kommunaltechnik GmbH
Albtalstraße 36
79837 St. Blasien
UK
Aebi Schmidt UK Limited
Southgate Way/
Orton Southgate
Peterborough
PE2 6GP United Kingdom
Italy
Aebi Schmidt Italia s.r.l.
Via dei Pinali, 11
Frazione Cimpello
33080 Fiume Veneto
The Netherlands
Aebi Schmidt Nederland BV
Handelsweg 8
7451 PJ Holten
Belgium
Aebi Schmidt Belgium
Boomsesteenweg 74
2630 Aartselaar
Norway
Schmidt Norge AS
Paradisveien 2
2836 Biri
Austria
Aebi Schmidt Austria GmbH
Schiessstand 4
6401 Inzing
Aebi Schmidt Austria GmbH
Aichegg 20
8541 Schwanberg
Poland
Schmidt Polska Sp.z.o.o.
Ul. Skrajna 80a
25 -650 Kielce
Schmidt Polska Sp.z.o.o.
Ul. Mariensztat 8
00 -302 Warschau
Sweden
Aebi Schmidt Sweden AB
Idrottsvägen 3
596 23 Skänninge
Switzerland
Aebi & Co. AG
Maschinenfabrik
Buchmattstrasse 56
3401 Burgdorf
Aebi & Co. AG
Maschinenfabrik
Huwilstrasse 11
6280 Hochdorf
Spain
Aebi Schmidt Ibérica SA
C/ de la Perdiz,
Parcelas 18 y 19
45950 Casarrubios del Monte
AFFILIATED COMPANIES
2
Competence centre St. Blasien
Competence centre Burgdorf
Competence centre Holten
Competence centre Kielce
Aebi Schmidt
Aebi Schmidt is the leading system provider of
innovative technical solutions for the cleaning
and clearing of traffic areas as well as
the mowing of green spaces on difficult
terrains. Our product range includes vehicles,
attachments and demountable devices as well
as the corresponding services. Due to our many
years of international experience, we are part-
ners and attendants to our customers. By
means of a service programme tailored to
our customers’ requirements, we offer our
customers the appropriate solution for nearly
any problem!
Geographical coverage
Aebi Schmidt is covering on the European
market with its own sales companies. Custo-
mer outside Europe are either served directly
by the own export department or by our autho-
rized dealers world wide. The development and
manufacture of the products is concentrated at
the 4 competence centres in Switzerland (Burg-
dorf), Germany (St. Blasien), Netherlands (Hol-
ten) and Poland (Kielce).
Product range
Brands
In addition to the main product brands Aebi and
Schmidt, our portfolio also includes the regio-
nally focussed brands Beilhack and Nido as well
as the product names Broddway, and MFH.
ABOUT AEBI SCHMIDT
Street cleaning
Compact sweepers
Mountable sweepers
Interchangeable sweepers
Mounted sweepers
Demountable sweepers
Street washers
Municipal equipment
Multipurpose transporters
Implement carriers
Road repair
Reflector post washers
Water barrels
Motor mowers / Singleaxle tractors
Agricultural equipment
Implement carriers for sleep slopes
Multipurpose transporters
Motor mowers / Singleaxle tractors
Winter maintenance
Snow ploughs
Rotary snow clearance
Spreaders
Spreading & Spraying Combina-
tion machines
Salt solution stations
Airport technology
Snow ploughs
Rotary snow clearance
Jet sweepers
Spreaders and sprayers
Spreading & Spraying Combination
machines
Attachable spreaders
Airport sweepers
Railway technology
Snow clearance
Vehicle equipment
Attachments
Hydraulicsystem
Vehicle modification
Control system
Control panels
Mai
n pr
oduc
t br
ands
Reg
iona
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Pro
duct
bra
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Um
brel
la b
rand
3
MANAGEMENT BOARD
Management Board
Walter T. Vogel
Born 1957, Swiss citizen
Dipl. Masch.-Ing. ETH Zürich
CV: Since 2007: CEO Aebi Schmidt, 2003-2007:
CEO Von Roll Holding AG, 1999-2003: Von Roll
Group, Manager of the Infratec division and mem-
ber of the Group Management, 1995-1999: HILTI
AG, Manager of the business unit Direct Fastening
and member of the extended Group Management,
1992-1995: Aliva AG, Marketing and Sales Director
and member of the Management Board
Stephan Naef
Born 1962, Swiss citizen
lic. oec. publ., Universität Zürich
CV: Since 2008: CFO Aebi Schmidt, 2006-2007:
CFO Von Roll Holding AG, 1998-2005: Manager of
Finance and Controlling Danzas Switzerland, after
merger and renaming Manager of Finance and Ad-
ministration DHL Switzerland and member of the
Management Board, 1994-1997: Controller Siber
Hegner Management AG, Before 1994: Various
activities
Walter Schmitz
Born 1953, German citizen
Diplom-Kaufmann Universität Regensburg
CV: Since 2009: Manager of the Division Sales &
Service Aebi Schmidt, 2003-2009: Managing Di-
rector Schmidt Holding AG, 2000-2002: Member
of the Executive Board Sick AG, 1995-2000: Mem-
ber of the Management Board Bosch Telecom Pri-
vate Networks, Before 1995: Various activities
Holger Stehling
Born 1965, German citizen
Dipl. Inc. Luft- und Raumfahrttechnik, Universität
Stuttgart
CV: Since 2008: Manager of the Division Schmidt
2005-2008: Zumtobel AG, Director of Central Tech-
nical Divisions, member of the extended Group
Management, 1992-2005: Linde AG, various posi-
tions at home and abroad, in his last position re-
sponsible for quality management and controlling
Marco Studer
Born 1976, Swiss citizen
Dipl. Automobil.-Ing. FH
CV: Since 2011: Manager of the Division Aebi,
2010-2011: Operative Manager of the Division
Aebi, 2008-2010: Aebi & Co Maschinenfabrik,
Chief Production, 2006-2008: Mercedes-Benz Au-
tomobil AG, Branch Manager NF Wetzikon, 2001-
2006: Mercedes-Benz Automobil AG, Service
Manager and Deputy Manager NF Schlieren
Walter T. Vogel Stephan Naef
Holger Stehling Marco StuderWalter Schmitz
4
Verwaltungsrat
Der Verwaltungsrat der Aebi Schmidt Holding AG
trägt die Verantwortung für die strategische Füh-
rung der Unternehmung und besteht aus den fol-
genden Personen:
Board of Directors
Peter Spuhler,
Chairman of the Board of Directors
Born 1959, Swiss citizen
Entrepreneur and member of the National
Council Switzerland
Since 1989: CEO Chairman of the Board of
Directors of the Stadler Rail Group, Mandates:
Member of the board of directors of Rieter
Holding AG and Autoneum Holding AG
Dr. Gero Büttiker
Vice President
Born 1946, Swiss citizen
Dipl. Bau-Ing. ETH Zürich, Dr. oec. publ.
CV: Since 1993: Self-employed entrepreneur
1985-1993: NUEVA Holding AG (former
Schweizerische ETERNIT Holding AG) delegate
of the Board of Directors, Before 1985: Various
activities
Hansruedi Geel
Member of the Board of Directors
Born 1956, Swiss citizen
lic. oec. HSG, Qualified Public Accountant
CV: Since 2001: CFO Stadler Rail Group, 1997-
2001: CFO Benninger AG / Benninger Group,
1994-1997: CFO Lüchinger + Schmid Group,
1990-1994: CFO Elektronikgruppe FELA, 1981-
1990: PwC, Public Accountant
Peter Muri
Born 1958, Swiss citizen
lic. iur., Solicitor
CV: Since 1994: Owner of a medium-sized law
firm in Weinfelden specialised in economic and
revenue law, Before: Legal service in a cantonal
government; Collaboration in a law firm in
Eastern Switzerland; Collaboration in a district
court; Legal service in a cantonal tax admini-
stration office
The Aebi Schmidt Holding AG with its registe-
red office in 9565 Bussnang, Bahnhofstrasse 7,
and with its business address in 8050 Zurich,
Thurgauerstrasse 40, is organized in accordance
with Swiss law and has the following sharehol-
ders:
58.0 % PCS Holding AG, Switzerland
(Owner: Peter Spuhler)
39.3 % Gebuka AG, Switzerland
(Owner: Dr. Gero Büttiker)
2.7 % other members of the Board of
Directors and the Management
Board
The Aebi Schmidt Group („Aebi Schmidt“)
consists of Aebi Schmidt Holding AG and its
subsidiaries as disclosed on page 2.
BOARD OF DIRECTORS AND SHAREHOLDERS
Peter Spuhler
Peter MuriDr. Gero Büttiker Hans-Ruedi Geel
5
Overall economic situation
Although the most severe effects of the finan-
cial crisis have been dampened by measures of
the EU in some European markets, the public fi-
nancial sector is still substantially weakened.
Yet the public sector invested in municipal ma-
chines in the past business year. Although
there was a considerable drop in some mar-
kets, especially in the product segment of
sweepers, these setbacks could be compensa-
ted by project development business in Eastern
Europe and Asia. Furthermore, the tough win-
ter in January, March and December created an
outstandingly strong demand, especially for
spare parts and servicing. The well-developed
sales and service organisation of Aebi Schmidt
once again proved successful in 2010. The de-
mand setbacks in individual countries could be
compensated through targeted sales activities
by using the entire range of the product spec-
trum. All in all, the group was able to generate
a satisfactory growth in sales of 6% compared
to the previous year.
Winter service
The tough winter also had a positive effect on
the demand of the public authorities in respect
of the procurement of new machines. Never-
theless, the competition became even fiercer
in some markets. In spite of the actually good
situation in the winter service segment, the ex-
tremely aggressive price policy of our competi-
tors led to the overall erosion of the market
prices. We want to continue to maintain our lea-
ding market position in this segment by the
consistent further development of ecological
and environmentally friendly technologies; the
issue of environmental protection is attached
special significance. Moreover, the proportion
of privately financed motorways, their con-
struction and maintenance, is constantly in-
creasing in Europe. Since these projects involve
complex technologies, the investors set a high
value on Aebi Schmidt’s many years of experi-
ence.
DIVISION SALES & SERVICE
6
Summer service
Sweeping
The demand for compact and truck mounted
sweepers in 2010 substantially decreased com-
pared to the previous years. Whereas the set-
backs in individual European markets amounted
up to 30% by the middle of the year, a clear in-
crease in the demand for sweepers could be
noticed in the second half of the year. In spite
of this, last year’s overall sales figures clearly
fall short of the values of the previous years.
With few exceptions, the drop in the demand,
which was clearly perceptible in certain mar-
kets, could be compensated by increasing the
market shares in other regions.
Road repair
The poor condition of European roads, mainly
as a consequence of the severe effects of win-
ter, will considerably increase the demand for
road repair machines in the future. For this rea-
son, several organisational measures were
taken in respect of the road repair machine
“Road Repair Patcher”. On the one hand, the
production was relocated from Sweden to our
Dutch factory in Holten and the product was
further developed. On the other hand, a Euro-
pean road show with accompanying marketing
campaigns took place during the summer
months, which evoked an extremely positive
response among our customers and prospec-
tive customers. In the future, the sales organi-
sation will attach even greater significance to
the cultivation of this market segment.
Agriculture
In spite of the perceptible setback of the de-
mand for steep-slope implement carriers and
transporters, we succeeded in maintaining the
market shares in the core markets of Switzer-
land and Austria by the end of the year. The
new products TT275, TP460 and the single-axle
machine CC36 introduced within the scope of
the Agrama 2011 in Bern generated a good deal
of orders within a short period of time. With
these new products, we were able to improve
significantly the three segments implement
carriers for sleep slope and single axes tractors.
DIVISION SALES & SERVICE
7
Airport technology
The already positive development of 2009 con-
tinued in the past business year 2010. Jet
sweepers and airport sweepers by Aebi
Schmidt set new trends and are considered
among airport operators worldwide as the stan-
dard in this sector. The airport machines brilli-
antly cope with challenges, such as unexpected
winter conditions involving extraordinarily large
amounts of snow, as shown by the example of
Leipzig/Halle airport. The logistic hub Leip-
zig/Halle even had the sudden heavy snowfalls
in December perfectly under control. The high-
performance snow cutter TS 10 000 launched
in 2009 also met the high expectations. In order
to cover the increasing demand of airport ope-
rators for maintenance machines that are both
economic and environmentally-friendly, the
Green TJS 560 was developed, which is cur-
rently being used by Swedavia, the operator of
the Arlanda Airport in Stockholm and the airport
in Kiruna. The Green TJS 560 is the first CO2-
neutral sweeper blower designed for airports
and their high standards.
After Sales
Good results were achieved in the servicing
and spare-parts sector. The tough winter at the
beginning and the end of the year created an
extremely high demand for spare parts and ser-
vicing. Thanks to the reorganisation of the in-
ternational logistic centre in Hannover/Laatzen,
the associated logistic challenges were maste-
red to the customers’ full satisfaction. In spite
of the enormous increase in the demand for
spare parts - the demand partially increased fi-
vefold - we had no long-term delivery difficul-
ties. The winter spare-parts supply of our
vendors initiated as early as in the middle of the
year also had a positive effect on the short-no-
tice demand during the winter months. At the
same time, the spare-parts supply for Aebi pro-
ducts was excellently mastered due to the now
coordinated condition of the central logistic or-
ganisation.
Events
In addition to the numerous regional events and
trade fairs, which were conducted by the local
responsible sales subsidiaries, 2010 was domi-
nated by three large-scale events.
At the beginning of April, the customers and
partners were able to see for themselves the
efficiency of the Aebi Schmidt products in front
of overwhelming scenery within the scope of
the pass clearance at St. Gotthard. An accom-
panying exhibition on the issue of winter ser-
vice and de-icing as well as the lecture of a
subject specialist on the issue of “salt and
brine” completed the event.
With the “Eidgenössischen Schwing- und Älp-
lerfest” (ESAF) in Frauenfeld, another highlight
followed in August. For the first time, Aebi, to-
gether with Stadler Rail, presented itself as the
major sponsor of this unique sports event. The
extraordinarily positive response can be attri-
buted to the increased awareness of the broad
public and the VIP care of selected vendors du-
ring the event. Nearly 1,000 tickets were sent
out within the scope of a selective invitation
DIVISION SALES & SERVICE
Reference projects 2010
The following large-scale projects contributed to our success to a sub-
stantial extent:
• St. Petersburg (RU)
Overall concept road cleaning summer / winter:
40 x compact sweepers, 70 x combined winter service machines
• Ministry of Defense (UK)
30 x mounted sweepers, 28 x jet sweepers
• Fuxin (CN)
Machine kits: 200 x ploughs, 110 x snow cutters, 150 x spreaders
• Highway Agency (UK)
47 x combined winter service machines
• Balfour Beatty (UK)
32 x combined winter service machines
• Leipzig Airport (DE)
6 x jet sweepers, 2 x snow cutters,
1 x high-performance snow cutter TS 10 000
8
campaign and 500 guests were spoiled daily in
the event restaurant.
In November another great success could be
achieved at the Agrama in Bern. Just in time for
the beginning of the trade fair, the new factory
in Burgdorf delivered three additional top-ran-
king products. With the launch of the TT275
steep-slope implement carrier, the TP460 trans-
porter and the CC36 single-axle machine, im-
portant innovations were presented. The
brilliant stand design and the presentation of
these three innovations invited a great number
of visitors to stay at the fair stand, so that a mul-
titude of contacts could be established and
many inquiries were received already on site.
Outlook
Due to the slowly recovering economic situa-
tion, the revenue receipts of the public authori-
ties will improve in several countries in the near
future. By contrast, the critical financial frame-
work conditions in other European countries
constitute enormous risk factors for 2011. Ta-
king the results of 2010 as a basis, we expect
an altogether stable economic situation within
our market segments. The additionally provided
budget for the fields of winter service and road
repair bears large potentials. Due to the winter
problems at many European airports, airport
operators are subject to increasing pressure on
part of the airlines and the government. We ex-
pect an increased demand, in particular in the
field of special machines for airports.
In order to facilitate the spare-parts procure-
ment process for our customers in the future,
we will develop a web-based online portal.
More focus will be the placed on the intensive
expansion of the tractor construction segment
and the distribution of Aebi products outside
the Alpine region. The state-of-the-art VT450
multi-purpose implement carrier will be exten-
ded by additional municipal applications and in-
troduced to most European markets in this
variant. Specific solutions will be developed for
the growing customer group of service provi-
ders and agricultural contractors. We will meet
the ecological market requirements by introdu-
cing new technologies, such as Euro 5 engines
and improved functions, e.g. the improved
compact sweepers Swingo 200+, Cleango 500
and MFH 5500.
DIVISION SALES & SERVICE
Pass clearance at St. Gotthard
At the end of April 2010, about 500 customers,
partners and employees were present in An-
dermatt (Switzerland) in Canton Uri, when the
current product range of snow clearing machi-
nes was presented within the scope of a large-
scale international pass clearing customer
event. In the middle of a breathtaking winter Al-
pine landscape, the issue of "methods, machi-
nes and devices in winter service" dominated
the unique mountain world of St. Gotthard for
three days. At the top of the pass, at a height of
about 2,100 meters, the audience watched the
live demonstrations along with the extremely
impressing annual pass clearance. An imposing
product presentation, impressive products
along with a brilliant supporting programme -
this was the positive feedback of all partici-
pants.
High spirits at the "ESAF 2010" in Frauenfeld
In August about 250,000 spectators visited the
42th “Eidgenössischen Schwing- und Älpler-
fest” in Frauenfeld in bright sunshine, the so far
largest Swiss wrestling festival of all time. Many
fans of this traditional Swiss sport can be found
above all in the agricultural environment, since
wrestling embodies the traditional and charac-
teristic values of Switzerland. Together with
Stadler Rail and 4 other companies, Aebi pre-
sented itself as the major sponsor of this large-
scale event. Joint advertising campaigns of the
major sponsors, the presence of numerous ma-
chines on the festival grounds and the partici-
pation in the traditional procession provided for
a high degree of public awareness. Nearly 1,000
invited guests watched the exciting competiti-
ons directly in the arena and indulged themsel-
ves for two days in the restaurant "Kanönli" spe-
cifically refashioned for this occasion.
CUSTOMER EVENTS
11
General
In spite of a slight economic upswing in 2010,
there was still some uncertainty among the
municipalities and farmers. Although the sales
figures could once again be increased compa-
red to the previous year, the set budget was
just failed. In the past year, particularly the
Terratrac series enjoyed a considerably increa-
sed demand and thus successfully established
themselves in the market. The trend towards
hydrostatic drives proved true both in the
single-axle machines and the Terratracs. The
shortfall in receipts caused by the strong Swiss
franc could be compensated by an increase in
productivity. The personnel restructuring of the
Management Board was completed by the
middle of the year with the new development
and construction manager and the new pro-
duction manager taking office. Also in other
terms, the year was marked by process and
organisational adaptations, which were enabled
by the new building and the thus improved
communication and transportation channels.
Our customers took notice of the increased
spare-parts availability and the optimisation of
already established machines with satisfaction.
After the final works in and around the new
factory premises had been completed, one
highlight followed the other. The new factory
was officially opened in April. While the
employees together with their partners opened
the new factory within the scope of a festive
event on 22 April 2010, another festive
event followed on the next day for the invited
guests from the circle of vendors as well
as representatives from politics and industry.
In the summer, Aebi, together with Stadler Rail,
was represented at the ESAF Festival in Frau-
enfeld as one of the five major sponsors. With
a huge presence, amongst others with a multi-
tude of machines which were in use for the lo-
gistics of the organisational committee, Aebi
was able to draw maximum benefit from this
platform. In the autumn, the documentary film
"Factor Tractor", which had been produced at
Aebi's premises by the TV station of the “Neue
Zürcher Zeitung” and broadcast on Swiss tele-
vision, was shown for the first time. The culmi-
nation followed at the end of November with
the agricultural machine exhibition Agrama in
Bern, at which three new machine types were
presented. Aebi was able to use the entire year
2010 for image building.
Product range
With the new Euro 5 engine, the VT450
ideally meets the demands of municipal areas
for low-emission machines. The TP450 was
replaced by the TP460 and now exhibits an
engine tailored to agricultural requirements,
which generates high torque already at low
rotational speed. By extending the product
range with a high-performance hydraulic
system allowing for the drive of front-mounted
implements, a front hoisting gear and creep-
speed gear, the fields of applications were once
considerably again extended. Snow cutters
and flail mowers can now be used in the
municipal sector or a front mower in the
agricultural sector. Thus, mowing and loading
can be rendered in one single operation. The
new Terratrac Aebi TT275 was launched just
in time for the Agrama. The TT275 extends
the top-class Terratrac series and offers
considerably increased efficiency and more
user friendliness. The interaction between
the engine performance and the application
is electronically monitored and adjusted to the
required performance. By making adaptations
to the design on the basis of the transporter,
the appearance was refreshed and an optical
DIVISION AEBI
12
connection established between the two
product lines. The series of compact hydrosta-
tic single-axle machines was complemented
by introducing the Combicut CC36. Based on
the technology of the thousand-fold tried and
tested CC56 and CC66, the new mower is the
ideal beginner's model among the comfort
single-axle machines with active steering.
Thanks to the newly introduced product
management in 2010, trends and market requi-
rements can now be recognised and the corre-
sponding steps initiated at an earlier point.
Product-specific documentations and qualifying
trainings increase the professional competence
of the sales representatives regarding Aebi
products.
Purchase
The «design-to-cost projects» started in the
fourth quarter of 2009 bore first fruits in 2010.
The expected savings could be achieved even
without the currency effect, which had a
positive effect on the purchase. The bundling
of volumes and the joint appearance of the
two product divisions Aebi and Schmidt
towards the suppliers had a supportive effect
on the achievement of the cost savings. The
improved data quality in the ERP system had a
positive effect on the reduction of the supplier
diversity and the standardisation of compo-
nents of different machine types.
Due to the slight economic upswing, the
material availability, which was very good
at the beginning of the year, progressively
worsened over the course of the year. Particu-
larly the foundries reduced their capacity to
such an extent that the replacement periods
of castings exceeded the critical threshold.
Additional delays occurred due to the relocation
of the largest supplier, who transferred his
manufacture to a new building. By conducting
detailed analyses and fostering regular contact
with this supplier, however, the most urgently
needed components could usually be procured
within a buffer period. In order to keep the
manufacturing costs of also future machines as
low as possible, the development projects will
increasingly be supervised by the purchasing
department and the cooperation between
the departments intensified. Beyond the cost
savings, this cooperation effected the earlier
involvement of the suppliers and thus the
prompter availability of the prototype compo-
nents
Production
The major focus was the fine adjustment of the
assembly processes to the new continuous
assembly line. Due to the considerably impro-
ved infrastructure, various saving potentials
were determined and the assembly steps
accordingly adapted over the course of the
year. As expected, particularly the shorter 13
communication channels and the associated
rapid information flow allowed for quality and
efficiency improvements.
The production department developed to
become a flexible and powerful team within
one year. Thanks to the high efficiency of the
new factory and the substantial commitment of
the employees, the great number of orders,
which occurred due to the relocation at the be-
ginning of the year, could be rapidly processed.
The multitude of orders at the beginning of the
season, in particular in the assembly line of the
compact Terratracs, was equally coped with
within the desired delivery period.
The increase of adding value and the more
broadly-based fixed cost coverage were the
main focus of the production department. Va-
rious projects started for this purpose were im-
plemented over the course of the year and
substantially contributed to compensating the
shortfall of receipts caused by the currency
effect. In order to achieve the optimisation of
the material flow, the warehouse management
module available in SAP was activated. The
detailed information obtained in this connection
was used to further reduce the lot sizes and
thus the warehouse.
Burgdorf had to make nearly no investments.
On the occasion of the relocation to the new
building, all machines and systems that no
longer complied with the state-of-the-art
standards were replaced.
On the edge of the company premises, a test
ramp with an inclination of 70% was installed
including a turn-around. This is used to test
the new machines for optimum functionality of
the drive train and the arresting brake prior to
leaving the factory. The outer edges arranged
on the sides of the test ramp are much steeper
than the test ramp itself, which allows for
checking the torsional attenuation of the
machines. These tests significantly increase
the safety, so that only machines of flawless
quality leave the factory.
Development/Projects
General
The reduction of development projects having
the goal to push on selected projects and
thus bring them onto the market more rapidly
proved successful. The concentration of the
employees on individual projects reduced the
development period and at the same time led
to an outstanding quality improvement of the
work results. Another quality improvement was
achieved by splitting up the competencies into
new developments and product management.
VT450/TP460
In addition to the installation of the two motor
variants Euro 5 in the VT450 and Euromot 3A
in the TP460, the extension of the fields of
application of both types was top priority. By
concentrating the development capacity, va-
rious customer requirements could be fulfilled
within a short period of time. For instance, the
payload was increased and the customers now
have a high-performance hydraulic system,
a creep-speed gear, a front hoisting gear and a
comfort seat at their disposal. These upgrades
make the VT450/TP460 a real multi-purpose
vehicle.
TT275
Clearly recognisable from the outside by the
new roof with integrated working lamps, the
innovative improvements of the TT275 can be
found under the engine hood. For the first time
in the Terratrac top-range sector, the VM turbo
diesel engine exhibits an output of more
than 100 HP. The hydrostatic wheel drive is
electronically controlled and exhibits the four
driving programmes road operation ECO-drive,
mowing, snow cutting and proportional.
The driving speed automatically adapts to the
required performance of the attachments. The
speed is reduced when mowing large amounts
of crop and automatically increased again when
the amount of crop decreases, without the
driver having to intervene. The most important
functions are actuated via the multifunctional
control lever, as also used in the VT450/TP460.
By means of the TipTronic, the lever can be split
up into six steps and the various speed ranges
activated by the touch of a button. These
DIVISION AEBI
14
simplifications allow for even more relaxed
working and additionally save fuel. The TT275 is
a real top product and sets completely new
standards.
CC36
The specifications were lightweight, modern,
reliable and an excellent price-performance
ratio. The Combicut CC36 outstandingly com-
plies with these requirements. The stepless
hydrostatic wheel drive, which can be operated
with the thumb in forward (0-8km/h) and
reverse (0-4km/h) directions, is based on
the tried and tested technology of the large
Combicut variants. Furthermore, even the smal-
lest comfort single-axle machine exhibits three
different types of steering. Two of them are
active and allow for steering virtually without
any effort. The 10-HP Basco-Vanguard engine
allows for mounting various attachments. As a
result, an investment in the CC36 pays off even
for smaller companies within a short period of
time.
Outlook
2011 will be the year of affirmation. The posi-
tive impulses and the basis created over the
last two years now have to be strengthened
and continued. The new vehicle types Combi-
cut Aebi CC36, Terratrac Aebi TT275 and Trans-
porter Aebi TP460 ideally meet the needs of the
customers; they are the image of the many
years of innovative strength that characterises
Aebi. The optimisation of the delivery periods
both in the field of spare parts and new machi-
nes is supposed to meet the customer require-
ments even more effectively and strengthen
the relationship between Aebi and its custo-
mers in the long term. In addition, our efforts in
the upcoming year will be focussed on the furt-
her reduction of stocks and material costs.
The continuous increase of our productivity
over the next few years is of central signifi-
cance. The constantly increasing value of the
Swiss franc compared to the euro increasingly
weakens the profit situation in the European
area. The division is required to compensate
this negative effect by appropriate measures.
Aebi has to continue to succeed in standing
out against competitors by offering more
customer benefit.
By means of the special offer “Aebi VT450 win-
ter”, an Aebi Schmidt overall package will be
launched at the beginning of 2011. This pak-
kage consists of a basic vehicle by Aebi as well
as a spreader and a snow plough by Schmidt.
This package will also make the great number
of convinced "Schmidt" customers open-min-
ded about Aebi products.
General
The normalisation of the municipal technology
market led to a satisfactory increase in sales,
in particular in the second half of the year. In
addition to the general improvement of the
willingness to make investments, this was
driven by a multitude of product launches.
Great importance was attached to the impro-
vement of business processes. In particular in
the field of fulfilment, the employees were
imparted standardised working methods within
the scope of numerous workshops and
best-practice analyses. The fields of quality
assurance, process planning and production
support were given top priority in 2010 and will
also be the focus of attention in 2011. All in all,
these measures resulted in a considerable
and sustainable improvement of the cost situa-
tion of the three Schmidt locations St. Blasien
(Germany), Holten (Netherlands) and Kielce
(Poland).
Product range
As the continuation of the consolidation of the
product range over the last few years, the
product variety was further reduced. At the
same time, new products meet the market-
specific requirements more and more effi-
ciently. One of these products is the spreader
series Galeox, which was developed for the
French market. The generation of new unique
selling propositions resulted in us setting apart
from our competitors more efficiently and thus
in better market opportunities. We stick to the
need-based creation of individual customer
solutions and will also do so in the future.
Purchase
The centralisation of commodity groups, which
was started in 2009 within the scope of the
lead buyer concept was continued in the past
business year. Following the concept, respon-
sibilities were allocated to the respective
commodity groups and corresponding procure-
ment strategies created for the central
commodity groups. The implementation of
these strategies formed the basis for the
purchase activities within the reporting period.
Supported by the group-wide standardised
purchasing processes, the purchasing depart-
ment could be strengthened further, which in
turn had a positive effect on the company
results. Based on the positive results of the last
few business years, the further reduction of
procurement costs and the improvement of
the supplier structure were also focussed on
this year. The results could be achieved by
consistent supplier development, the early
involvement of the purchasing department in
the development and key account projects as
well as the steady search for saving potentials
for series-produced goods. The situation in the
supply markets has drastically worsened since
the beginning of the year and thus constituted
a special challenge for the purchasing depart-
ment.
The noticeable economic upswing led
to a substantial improvement of the order
situation of nearly all suppliers. The considera-
bly reduced capacities could not be built up
again and entailed the shortage of resources
and corresponding price increases as early as
from the second quarter of the year. Particularly
in case of metal sheets and steel and stainless
steel sections, the market responded over the
course of the year with price increases of more
than 30%. Due to a high degree of flexibility
DIVISION SCHMIDT
16
and intensive efforts regarding procurement,
we were able to successfully avert price
increases, implement the planned saving
potentials and secure the supply of the
factories with production material. The past
business year once again was marked by
development projects and the further improve-
ment of the vertical integration at the locations
Kielce and Holten. For instance, the purchasing
department actively supported the introduction
of engines with Euro 5 emission class as well
as the innovative projects for the compact
sweepers Swingo and Cleango. In doing so,
the securing of budget, quality and timescale
targets was the focus of attention and will
be guaranteed in cooperation with the deve-
lopment teams until completion of the projects.
The improvement of the vertical integration
at the above-mentioned locations was
successfully continued. In cooperation with the
factories Kielce and Holten, a total of 45,000
production hours could be transferred to in-
house manufacture. In the upcoming business
year, the purchasing department will have to
face the challenges involving the further shor-
tage of raw materials in the supply markets.
The worldwide economic upswing will have a
decisive influence on the demand for resources
and thus their availability and price trend.
The ongoing standardisation and design-to-cost
projects will be continued and the efficiency of
our procurement processes further improved.
Production
In autumn 2010 the production capacities
touched their limits for the first time - but all
the more - since the merger. In view of the
problems regarding the availability of materials,
capacities had to be released, which exceeded
the budget by up to 50% by the end of the year
at some locations. We owe the successful
management of the order peaks to the extraor-
dinary commitment of our employees, who
were actively supported by temporary subcon-
tracted workers and colleagues from other
locations.
Location St. Blasien
The strong seasonal capacity fluctuations at
the location St. Blasien have been the focus of
attention not only since the financial crisis. In
this respect, the completed production start of
the MFH 2500 relocated from Hochdorf (Swit-
zerland) to St. Blasien (Germany) was another
step in the right direction. Upon integration of
the MFH sweepers, the layout of the compact
sweeper assembly hall had to be adapted,
which has had a productivity-increasing effect
since the shutdown in summer. Following the
completed centralisation of the warehouse, the
17
Via Solutions Thüringen - BAB A4 - Germany
excellent project situation of large machines
could be taken account of by establishing two
additional production lines. As a result of this,
the throughput of large machines increased
from 3 to 6 machines per week.
Location Holten
The start of the normal production activity of
the newly invested manufacturing methods
welding (steel and stainless steel), robot
blasting and powder paint coating formed
the main focus of the work at the location
Holten. Due to the intensive efforts, about
35,000 additional working hours could be
performed by the end of the year, which corre-
sponds to nearly twice the previous capacity.
The set capacity budget and quality targets
were all achieved. In November the airport
sprayer and Road Repair Patcher assembly was
relocated to the spreader assembly hall, which
is expected to mobilise additional productivity
reserves in 2011.
Location Kielce
Just like in the factory Holten, the first few
months of 2010 were marked by the start of
the newly invested metal sheet manufacture
at the end of 2009. In addition to the acquisi-
tion and training of the required know-how,
the organisational management of the transfer
of more than 1,000 components to in-house
manufacture involved the greatest challenges
in this case. The greatest challenge, which
was mastered largely on schedule, was the
management of the snow plough orders, which
were favoured by the Europe-wide and unex-
pectedly heavy onset of winter.
Development
Swingo
The design of the Swingo series was subjected
to a facelift, which will dominate the appea-
rance of the machine in the upcoming years.
The outer appearance and the interior design
of the driver's cab were adapted in terms of
optics and ergonomics in cooperation with a
design studio. Technical optimisations were
made to the cooling, air conditioning, hydraulic
and break systems. An optional third brush now
allows for more efficient cleaning of pedestrian
ways and parking areas.
Airport equipment
The TS 10 000 presented at the Inter Airport
in October was able to prove its efficiency in
practice at Stuttgart Airport. Following additio-
nal in-house tests within the operating limit
range, the first machine was delivered to Leip-
zig Airport in autumn. It clearly exceeded the
expectations in snowy December 2010.
The demand for CO2-neutral snow clearing
machines, especially at airports, entailed the
development of the "Green TJS 560" in coope-
ration with the customer Swedavia. This ma-
chine is driven by a Euromot 3B diesel engine
and can be operated with both biodiesel and
biogas. Upon request of the customers, a con-
necting unit "front-end axle" was developed for
the TJS family. This allows for the manufactu-
rer-independent use of towing vehicles equip-
DIVISION SCHMIDT
ped with a yoke. The new once again optimi-
sed suction vehicle of the AS 990 airport swee-
per proved its superiority above competitive
machines in various customer tests. This resul-
ted in a large-scale order for 30 machines by
the British Ministry of Defence. Furthermore,
the AS 990 was extended by retractable suc-
tion nozzle in order to improve the dirt collec-
tion in the kerbstone area.
The software "Airportlogic" was developed
to reduce the operating costs of de-icing at
airports; in combination with GPS, this allows
for a precise application of de-icing agents.
Amongst others the spraying nozzles are swit-
ched on and off via this system to avoid double
application. A part width section monitoring
system ensures the functional safety of the
spraying nozzles.
Spreaders
By equipping the spreader series with a contai-
ner volume of 10-14 m3, the desire of custo-
mers for even longer application distances,
especially on motorways, was fulfilled. The Ga-
leox series, a fertiliser spreader in stainless
steel finish, was developed for specific mar-
kets.
The "Autologic Guide" was developed as a com-
plement to the already existing spreader con-
trol units. The flexibly upgradeable solution
combines spread management with navigation.
The new salt dissolving unit S 3000 serves to
prepare brine for spreading and spraying appli-
cations.
By its fully automatic concentration regulation,
it allows for preparing up to 3000 litres of brine
per minute.
Investments
In 2010 the project "step by step" was also
continued in St. Blasien. This required minor
investments in refurbishments and layout
adaptations. Furthermore, investments were
made in exhaust systems and better hall illumi-
nation to improve the working conditions.
An area of approx. 600 m2 was allocated to a
new assembly hall at the location Holten. The
airport sprayer already included in the product
range and the Road Repair Patcher relocated to
Holten were transferred to this area, which
made minor investments necessary.
Outlook
2011 will be marked by a multitude of market
launches; a year that already started with a
good order backlog and a cold and snowy
winter. Numerous traffic holdups caused by the
third hard winters in succession promise in-
creased investment needs by municipalities as
well as road and airport operators.
The supply markets in 2011 seem to be less
encouraging in terms of costs and schedules;
the once again stiffened Euromot 3B emission
standard will also put increased pressure on
the product costs. The intensified measures to
increase and communicate customer benefit,
however, show first positive trends.
All in all, the Schmidt Division is well-prepared
for the upcoming challenges and is thus looking
forward to business year already started with
great confidence.
19
REFINANCING
As one of the last open issues from the merger
of the Aebi and the Schmidt Groups to form Aebi
Schmidt, the issue of “refinancing” remained
unsettled until last year.
Apart from holding all important investments,
one of the major functions of the Aebi Schmidt
Holding AG is supposed to be the financing
function. So that the banks grant new loans,
however, some requirements had to be met.
The prerequisite of actively addressing the issue
was fulfilled with the Annual Financial Statement
2009. As a result, Aebi Schmidt had three
audited financial statements under true and fair
reporting, the financial KPIs were within an ac-
ceptable range and the new management team
could exhibit a (short) history.
Within the scope of its meeting of 19 March
2010, the Board of Directors gave the go-ahead
for the refinancing concept. On 23 April 2010,
the date of the official opening of the new loca-
tion in Burgdorf, a “banking day” was conduc-
ted at the same time, on which the Annual
Financial Statement 2009 and the Budget 2010
were presented and the refinancing was
announced. In the first phase the lead banks to
be involved in the organisation of the business
and the specific conditions on which the refi-
nancing was supposed to take place had to be
determined.
Within the scope of its meeting of 15 July 2010,
the Board of Directors approved of the term
sheet, according to which the Aebi Schmidt
Holding AG would receive a credit facility
amounting to Euro 80 million over a term
of 5 years. From this, Euro 30 million are to be
amortised over the term and the remaining Euro
50 million are arranged in such a way that they
can be utilised on the base of a borrowing
base (accounts receivable plus inventory minus
By concluding the syndicated credit agreement of Euro 80 mil-
lion, the last big step towards the merger of Aebi Schmidt was
taken and Aebi Schmidt is able to approach the next develop-
ment steps with a good financing structure.
REFINANCING
advance payments of customers). This variant
was selected in order to satisfy the extremely
fluctuating credit demand of Aebi Schmidt
during the year. The financing costs are based
on the EURIBOR res. LIBOR for other currencies
and are dependent upon the financial KPIs achie-
ved.
Following the decision of the Board of Directors,
the syndicated agreements and the security
agreements were drawn up and negotiated on
with the banks in lead on the one hand. On
the other, the agency banks were addressed,
presented the business case of Aebi Schmidt
and subsequently invited to participate in the
financing. We were able to take cognisance of
the fact that our credit was even oversubscri-
bed.
On 28 September 2010 the Board of Directors
approved of the new syndicated agreements of
Aebi Schmidt, which were subsequently signed
on 28 September 2010. All major existing credit
agreements were dissolved and replaced by the
new credits agreements by the end of the year.
The refinancing was successfully completed
upon release of the securities of the German
pool banks by 31 December 2010.
21
HISTORY
Corporate profile
Aebi Schmidt was formed in 2007 by the
merger of the two corporate groups Aebi and
Schmidt. Both companies can look back on
long company histories steeped in tradition:
Aebi
In 1883, Johann Ulrich Aebi opened a mechanic
workshop in Burgdorf, Switzerland, and thereby
laid the foundation for an exceptionally suc-
cessful company history. In the early days, Mr.
Aebi built seed drills, horse-drawn mowers, fire
extinguishers and turbines, which soon earned
him international recognition. After 1950, Aebi
increasingly focused on mechanised agriculture
for hilly and mountainous terrain. Initially ma-
nufacturing motor mowers and single-axle trac-
tors and later transporters with various
attachments, Aebi expanded its range of vehi-
cles in 1975 by introducing the Terratrac, the
world’s first steep-slope implement carrier.
Today, the Terratrac is the flagship product of
the Aebi manufacturing company. “Swiss qua-
lity”, innovative technology, continuous impro-
vement and reliability characterise the quality
products of the brand name Aebi.
Schmidt
For 90 years now, the company’s striking, blue-
framed lettering has been standing for quality,
longevity, intelligent technology and innovation
on an international scale. The history of the
long-established company dates back to 1920;
Alfred Schmidt Senior opened a car repair shop
and successfully specialised in snow clearance.
In addition to manufacturing snow ploughs, he
was already consistently working on the con-
cept of rotating snow clearing. At the same
time, de-icing techniques were being explored
and the first spreaders were built. Additionally,
the development of a high-performance snow
blower made it possible to enter the airport
business. The newly introduced product
groups, compact sweepers and high-perfor-
mance sweepers for airports, were systemati-
cally expanded. The range of products was
complemented by new clearing systems, the
development of multi-purpose sweepers, a
new generation of environmental friendly
spreaders, steering systems and special vehi-
cles for the clearing of airport runways. Today,
Schmidt provides for clean and safe circulation
areas throughout the world.
SUSTAINABILITY
Sustainability - Interview with Walter T. Vogel, CEO Page 24
Sustainability - Introduction Page 26
Sustainability - Customers Page 27
Sustainability - Employees Page 28
Sustainability - Environment Page 30
Sustainability - Community Page 33
Sustainability - Statement GRI Application Check Page 34
23
Interview with Walter T. Vogel,
CEO
What does sustainable business
management mean for Aebi
Schmidt?
I think reliability is a term that aptly
describes Aebi Schmidt: Our custo-
mers can rely on our products; we
are a reliable employer for our staff as well as a
partner for the regions in which we invest and
where we manufacture. Our daily operations
are therefore also characterised by long-term
responsibility. We work in a field where sustai-
nability represents a great opportunity and a
challenge. Sustainable procurement is in high
demand among our customers, especially in
the public sector. We offer technical solutions
that are as environmentally friendly as possible
and at the same time affordable, which gives
us competitive advantages in our business
sector.
What are the greatest challenges?
Our products are the greatest leverage for
sustainability. As a consequence of climate
change, the European public sector and com-
munities are increasingly adopting specific
reduction targets for CO2 emissions. This is
why we need to integrate cutting-edge engine
technology into our vehicles. At the same time,
the pollution restrictions for particulate matter
and road gritting materials are becoming
increasingly severe. Our customers want
solutions that are both clean and efficient. For
this reason, we are investing in innovations
such as special filter technologies for swee-
pers or intelligent guiding systems for operators
of winter service vehicles. In 2010, we introdu-
ced a new technology to avoid excess salting of
surfaces. Another important trend concerns
the issue of noise pollution. Our vehicles are
SUSTAINABILITY - INTERVIEW
often employed on public roads and in inner
cities, and therefore must not cause too much
noise to ensure that residents are not disturbed.
This issue is becoming increasingly important in
general, and many are probably not fully aware
of it yet. With this in mind, we focus on alter-
native and quieter sweeping technologies. At
the same time, electric drive motors represent
an increasingly important aspect that will chal-
lenge our affiliated drive unit manufacturers for
years to come.
Are there any other areas where sustainabi-
lity plays a special role?
Alongside innovative and environmentally
friendly products, we place special emphasis on
responsibility in our in-house production. Our
newly opened production facility in Burgdorf
distinguishes itself by its high level of efficiency
in terms of production processes and energy.
The state-of-the-art technologies used in our
new sandblasting and paint-coating facility in
the Netherlands also enable environmentally
friendly, faster, more flexible and cost-efficient
operations. This is confirmed by the monito-
ring results of the energy and environmental
performance data of our production sites, which
are published in this report for the first time. In
the field of employment, the completion of the
first phase of the new leadership programme
“Lead the Change” marked a milestone. In this
effort, the primary focus is on developing and
promoting competencies and strengthening
employee loyalty. In the interest of our custo-
mers, we have invested heavily in optimising
delivery times. By streamlining the spare part
storage of the Schmidt Division in Germany
and expanding the availability of spare parts,
we were able to improve our processes regar-
ding delivery times.
What are the goals for the next few years?
It is our vision to become the leading European
provider of vehicles for cleaning and snow
clearance in traffic areas as well as mowing
of grassland on difficult terrain. This is why
we will continue to invest in affordable
green technology. In terms of employment, the
competition over new talents will get tougher.
We are consistent in our endeavour to further
improve the training and education of our
employees and to recruit young people from
the regions of our production facilities for Aebi
Schmidt. We will also extend our efforts for
sustainability and will provide further insight
into our services within the scope of transpa-
rent reporting. In doing so, we are aiming to
convince our stakeholders of Aebi Schmidt’s
sustainable business model.
SUSTAINABILITY - INTERVIEW
For the first time, this business report contains a special
chapter on sustainable business management. It addresses the
stakeholders of Aebi Schmidt, who are crucial for our success
and are directly affected by our business operations: custo-
mers, employees, environment and communities, including
the regions of our production sites as well as suppliers. This
employs the voluntary guidelines of the Global Reporting
Initiative (GRI). They represent the global standard for sustai-
nability reporting. GRI examined the corporate communications
of Aebi Schmidt and concluded that this year the business
report together with its detailed GRI content index online
(www.aebi-schmidt.com) meets the GRI-G3 guidelines for the
first time at application level C.
25
Sustainable business management
Sustainable business management means
meeting the needs of today’s generation
without burdening or limiting future generati-
ons. It is about finding a balance between eco-
nomic, social and environmental criteria in the
setting of goals and business measures. This
is in line with Aebi Schmidt’s guiding principle
of connecting a high level of customer and staff
satisfaction with the goal of efficient and profi-
table business processes. In implementing its
vision, Aebi Schmidt does its share to create a
more sustainable public infrastructure as well
as more sustainable agricultural farming with a
positive impact on people’s health and environ-
mental protection.
Clear processes with personal responsibility
Aebi Schmidt integrates sustainable business
processes into its management system. Opti-
mised product costs and improved business
processes play a central role in the continued
increase of customer benefit through innova-
tive solutions and differentiating characteristics
in contrast to competitors. Receiving the ISO
9001:2008 TÜV-SÜD matrix certification for all
business locations in December 2009 marked
the start of initiatives across all facilities to furt-
her optimise the cooperation of the individual
business locations. Additionally, the facility and
the distribution organisation in Holten, Nether-
lands, as well as the distribution organisations
in Peterborough (United Kingdom) and Fiume
Venete (Italy) are ISO 14001-certified for their
environmental management systems.
At Aebi Schmidt, personal responsibility of em-
ployees is given high priority, while the frame-
work conditions are clearly defined. The
standards and values of Aebi Schmidt’s opera-
tions are recorded in a code of conduct. It defi-
nes the proper behaviour in business practices,
fair dealings with competitors and business
partners as well as fair and appropriate beha-
viour including the avoidance of discrimination
and ensuring high standards of environmental
protection and data protection. Within the cor-
poration, employees are given a clear set of
rules to comply with voluntary and mandatory
measures. This global code of conduct was in-
troduced in August 2010 and signed by 87 per-
cent of all employees.
Recognition from the inside and the outside
In the reporting year 2010, the first employee
survey showed that the company’s guiding
principle is put into practice at a very high level.
Our efforts in development services were also
acknowledged: After winning the Design Prize
Switzerland for the Aebi VT 450 in 2009, the
snow clearing vehicle TS 10000 of the Schmidt
Division was the only product in its category to
be awarded with the honour “Focus in Silver”
at the International Design Award Baden-Würt-
temberg in 2010.
SUSTAINABILITY - INTRODUCTION
Germany 20%
Others 16%
Switzerland 12%
Netherlands 9%
England 8%
France 7%
Russia 7%
Spain 6%
Italy 6%
Austria 5%
Poland 4%
Sales by countries in 2010
26
Customers
The customers of Aebi Schmidt come from a
wide range of backgrounds. This includes com-
munities and public administrations, airports,
business service providers and agriculture as
well as the military and the industrial sector.
Aebi Schmidt has many years of experience
with these customer groups and distinguishes
itself by its clear customer focus. Aebi Schmidt
sets high standards for its performance in this
area and is dedicated to being a leader in pro-
duct quality, know-how, consulting and overall
service by creating a strong customer relati-
onship.
Competent application thanks to expert
training
Maintaining good relations with the operators
of its vehicles and products is of great impor-
tance to Aebi Schmidt. As a manufacturer of in-
novative equipment, it is becoming increasingly
important to provide customers with hands-on
instruction to ensure ideal application of pro-
ducts. During this reporting year, a total of 400
customers in Germany and 800 customers
in the Netherlands received training. There are
also plans to expand the training concepts
into other core markets. The most important
instructional topics of this reporting year were
primarily the use of functions, drive models and
specific settings of the available sweepers
and spreaders as well as topics in the area of
vehicle technologies.
Customer safety as a top priority
All products that leave our facilities have to
meet highest quality standards for the health
and safety of our customers. The correspon-
ding safety criteria are taken into account at all
stages; from development to application and
disposal of products. The components of our
products are systematically checked. Additio-
nally, all products are subject to final inspection
and product audits are performed on a regular
basis. All self-propelled vehicles are licensed
either by individual homologation (Schmidt pro-
ducts) or type homologation with EU Type Ap-
proval (Aebi products). Within the homologation
process, the compliance with legal require-
ments and standards is checked by state
authorities.
High customer satisfaction in terms of
product quality
Customer satisfaction has been measured
on an annual basis since 2010. The level of
customer satisfaction is recorded in terms of
product quality, customer care & service, sales
& marketing and order processing. In the
reporting year, more than 500 customers were
asked to participate in a survey conducted
by Aebi Schmidt. The results indicate a high
level of satisfaction with the customer service.
Product quality and functionality also received
very positive feedback. The survey showed
room for improvement particularly as far as
delivery times of spare parts are concerned,
which is why Aebi Schmidt will be placing
special emphasis on continually improving
delivery times in the upcoming year.
Direct feedback for quality assurance
Customer feedback is very important to Aebi
Schmidt. This is why the reporting year 2010
saw the reintroduction of end-of-season
meetings between the sales, development and
product management departments. The aim
of these meetings is to identify room for
improvement in product development. Aspects
that are of particular interest to our customers
can thereby be incorporated into product
development. In the reporting year 2010,
primarily service-related customer suggestions
were put into practice. At the same time,
the quality management was reinforced by
introducing a new warranty process. This
ensures that all information relating to warranty
claims is forwarded by the sales organisations
to the production facilities so that quality
improvements can be directly integrated into
the production process.
SUSTAINABILITY - CUSTOMERS
27
SUSTAINABILITY - EMPLOYEES
Employees
Dedicated and qualified staff is crucial for the
economic success of Aebi Schmidt Holding AG.
Conversely, Aebi Schmidt has great responsibi-
lity as an employer. As of the end of 2010, Aebi
Schmidt employed a staff of 1,315 (2009:
1,300) full-time employees (FTE) worldwide. Its
production facilities in Switzerland, Germany,
the Netherlands and Poland have a total of
1,137 FTEs (2009: 1,084 FTE), 167 FTE (2009:
93 FTE) of which are fixed-term workers. 39
(2009: 42) employees were in training at that
time. Women accounted for 12.5% (2009:
13%), with 0.9% (2009: 1.0%) being employed
in management positions. In 2010, the average
fluctuation rate including reductions due to re-
tirement was 10.3% (2009: 9.06%).
Competencies through training and educa-
tion
The most important elements of the personnel
strategy are staff competencies that were
developed on the basis of the corporate
strategy, the corporate vision and the corporate
guiding principle. These competencies repre-
sent the company’s central potential for inno-
vation and a carefully designed competency
model is of great significance to Aebi Schmidt.
Based on this approach, Aebi Schmidt has
developed a training programme for its ma-
nagement staff titled “Lead the Change” to
support the management staff in its strategic
and operational responsibilities and to contri-
bute to a common leadership philosophy within
the company. A total of 170 management staff
members participated in this training in 2009
and 2010. Aebi Schmidt will continue to expand
its staff training and education in the future:
A sales training for all office and field staff is
planned for 2011.
In dialogue with the employees
In order to ideally visualise and harness the
potential and competencies of its staff, Aebi
Schmidt introduced appraisal interviews in
August 2009. Appraisal interviews are designed
to evaluate competencies and deduce measu-
res for staff training and education at all levels
as well as systematic staff development.
Aebi Schmidt conducts two types of staff
interviews: the potential assessment interview
(ICD) for management staff at all levels and
employees with leadership potential and
the appraisal interview for employees at all
remaining levels. At the beginning of each year,
goals are defined and agreed upon; and at the
end the year, the achievements are evaluated
to determine possible variable remuneration.
Altogether, 81.6% (2009: 75.0%) of all staff
members participated in the management and
employee interviews.
Safety and protection as a top priority
Aebi Schmidt places a strong emphasis on
creating a safe work environment. Before staff
members start their employment, they receive
Employees by countries as of the end of 2010
Switzerland
14%
16%
21% 18%
31%
Others
Netherlands
Poland
Germany
Employees by functions as of the end of 2010
12%
10%
25%42%
Production
Sales
Development
After Sales
Administration
8%Trainees
3%
28
thorough instructions on safe practices in the
workplace. Safety inspectors are provided with
both internal and external training including
regular safety inspections. In the event that a
workplace accident does happen, an accident
investigation will be carried out and necessary
measures will be taken for future accident
prevention. In the reporting year 2010, a total
of 61 workplace accidents were reported,
some of which required medical attention (14
in Germany, 22 in the Netherlands, 15 in
Poland, 10 in Switzerland). When measured
in days, there were altogether 502 missed work
days. In addition to workplace safety, health-
care also plays an essential role. Aebi Schmidt
offers its staff occupational health services
such as annual flu vaccination, for example.
Furthermore, various health initiatives including
health awareness days and back exercise
courses are planned for 2011 at the facility in
St. Blasien, Germany, in cooperation with he-
alth insurance carriers.
Behaviour standards are set out in the employ-
ment agreement and in the code of conduct,
which prohibits discrimination based on age,
country of origin, religion or gender. Violations
can be reported in confidence to the chief
compliance officer of Aebi Schmidt. In the
year under review, however, no complaints
or incidents were reported.
Employee satisfaction
In the reporting year 2010, an employee survey
was carried out for the first time at its four
production sites in Germany, the Netherlands,
Poland and Switzerland, respectively. The
primary goal of the survey was to evaluate
employee satisfaction. It contained various
questions from categories such as corporate
culture, leadership culture, workplace, working
environment and others, with primary focus on
Aebi Schmidt’s reputation as an employer,
the likelihood to recommend the company to
others and its perceived image in general. Alto-
gether, more than 1,100 employees received
an employee-satisfaction questionnaire. The
survey’s highly positive results show that Aebi
Schmidt is on the right track, not least because
of the numerous projects that have already
been launched, such as its leadership training
programme “Lead the Change” or the intro-
duction of appraisal interviews. The employees
in Germany as well as Switzerland were
particularly pleased with the good relations
between staff members and described their
work as being diverse and interesting. Never-
theless, they saw room for improvement
especially as far as further training opportuni-
ties are concerned.
SUSTAINABILITY - EMPLOYEES
SUSTAINABILITY - ENVIRONMENT
Environmental performance of Aebi Schmidt
products
Environmental considerations are of great im-
portance to Aebi Schmidt and are therefore di-
rectly incorporated into product development.
Environmentally friendly products additionally
have a clear market advantage, particularly
among customers in the municipal sector,
where strict environmental regulations are
becoming increasingly prevalent. Aebi Schmidt
is making an effort to continually lower the
energy consumption of its engines by employ-
ing efficient drive systems and exploring the
possibilities of partial substitution of fossil fuels.
Compliance with the emission regulations
Euro5 and Euromot 3B and the use of particle
filters to remove particulate matter are impor-
tant elements of its environmental strategy.
Moreover, Aebi Schmidt is committed to redu-
cing the required amount of salt in winter
service vehicles by employing more efficient
application techniques, and minimizing the
release of dust in sweepers. In order not to
potentially expose the environment to harmful
motor oil, the transmissions and engines of
Aebi Schmidt vehicles are lubricated with
biodegradable motor oil whenever possible, so
that in the event of leakage the environmental
burden can be kept at minimum. Certain con-
struction components such as in the spreader
consist up to 96% of recycling materials.
The environmental performance of Aebi
Schmidt in the four business areas below is as
follows:
Winter service
The efficient use of road salt is a top priority in
winter service to keep the resulting environ-
mental burden at minimum. The Thermo-Logic
system takes environmental circumstances into
account and makes it possible to reduce salt
expenditure by up to 15%. Furthermore, pilot
studies have been initiated on the subjects of
combination vehicles and liquid de-icers as well
as projects on the reduction of particulate
matter. The winter service products have a good
price/performance ratio and a high-quality image
on the market. The compatibility of the indivi-
dual machine components with various carrier
vehicles creates high customer value.
Summer service
The issue of particulate matter and the
introduction of the new Euro 5 emission guide-
line have a major impact on the demand beha-
viour regarding summer service products. The
latest generation of sweepers has considerable
environmental advantages and quality charac-
teristics: Multi-functional high-performance
vehicles in the higher price range reduce the
release of dust on the basis of the Coanda
effect. All compact sweepers are equipped with
Euro 5-compliant low-emission engines featu-
ring PM10 particulate matter certification.
Owing to a flow-optimized suction inlet and
noise-reducing components, they are highly
efficient and quiet-running.
Agriculture
Aebi Schmidt’s range of vehicles for difficult
terrain is based on state-of-the-art tractor tech-
nology. The latest vehicles are equipped with in-
telligent electronic control systems to maintain
an ideal balance between engine performance
and application. The Terratrac TT275 additio-
nally features an ECO-drive mode to enable lo-
wer fuel consumption, smooth engine perfor-
mance and minimal engine noise in the driver’s
cab. The use of increasingly large and heavy
agricultural vehicles is causing considerable soil
compaction, which reduces the soil’s ability to
absorb water and affects its overall quality. By
employing lightweight designs and construc-
tion materials, Aebi vehicles are optimised in
terms of soil protection.
Airports
Reliability, efficiency and speed are key factors
for airport services. The precise dosing techni-
ques and the high performance of vehicles for
the application of solid de-icing agents make it
possible to quickly establish safe conditions on
icy surfaces. Schmidt spraying vehicles preci-
sely apply liquid de-icing agents in exact, sur-
face-covering doses. The Airport-Logic system
30
prevents excess spraying of surfaces and en-
ables the efficient use of de-icing agents. With
its Green TJS model, which was delivered to Ar-
landa Airport (Sweden) in late 2010, Schmidt in-
troduced a particularly environmentally-friendly
vehicle to the market. By employing Agro-Die-
sel and biogas, its dual-fuel Volvo D9 engine
even enables CO2-neutral performance.
Corporate environmental performance
Comprehensive safety and resource manage-
ment are key elements of the production pro-
cess at Aebi Schmidt facilities. For the first
time, Aebi Schmidt is publishing its environ-
mental performance data for its facilities in
Burgdorf (Switzerland), St. Blasien (Germany),
Holten (Netherlands) und Kielce (Poland):
In 2010, total energy consumption and waste
generation rose by roughly 6% due to produc-
tion increases and various formerly external
production processes, which have been perfor-
med in-house since 2010.
SUSTAINABILITY - ENVIRONMENT
Environmental performance data:
Unit 2010 2009
Energy Total energy consumption MWh 21'998 20'687
Direct energy:
Fuel oil 1) MWh 4'814 6'741
Natural gas (stationary) 1) MWh 4'781 2'754
Diesel (stationär) 2) MWh 8 33
Diesel (vehicles) MWh 4'627 4'253
Petrol (vehicles) MWh 2'496 2'543
Liquefied petroleum gas (LPG) 3) MWh 104 67
Indirect energy:
Electricity consumption 3) MWh 5'168 4'295
Water Potable water m³ 9'457 10'666
Service/process water 4) m³ 25 156'265
Waste water m³ 9'005 10'666
Waste Total waste t 705 666
in combustion t 106 180
in waste recycling t 95 84
in landfill t 39 8
in external recycling t 465 394
other 5) t 0.1 0.2
1) The long and cold winter led to increased heating energy consumption. The new facility in Burgdorf is heated with natural gas instead of fuel oil, which was used in the past.
2) for emergency backup generators 3) At the facility in Holten, a powder-coating unit with an incorporated oven, a welding shop and a sandblasting unit were put into operation, causing an increase in natural gas/ liquefied petroleum gas and electricity consumption. 4) Service water for testing airport spraying vehicles. The significant reduction in process water consumption can be attributed to the closing of the heat-treatment shop at theBurgdorf facility and the repair of a leak in Holten.5) Absorption and filter materials, cleaning cloths, protective wear
31
SUSTAINABILITY - ENVIRONMENT
Optimised processes save resource
Optimised processes are particularly important
to ensure fast production and low manufactu-
ring and storage costs while making efficient
use of energy and other resources. At the new
facility in Burgdorf, the assembly process has
been restructured and centralised on one floor.
Internal transport distances are thereby shorte-
ned and duplicate process elements are redu-
ced. For instance, several decentralised air
compressors have been replaced by a one
large, energy-efficient compressor.
Avoiding packaging material and transport costs
are further measures to improve the environ-
mental production performance. CO2 emissi-
ons are additionally reduced by insourcing as
well as by primarily purchasing gas in unbottled
form. Wrapping and padding materials of com-
ponent shipments are collected and, if possi-
ble, handed over to Aebi Schmidt’s freight
forwarder for re-use.
32
Fair and responsible local partners
Aebi Schmidt makes a contribution to its busi-
ness locations as both an employer and an eco-
nomic factor. With a staff of more than 200
employees, the Aebi Division located in Burg-
dorf, a canton of Bern, Switzerland, is regarded
as an important regional employer by the po-
pulation of Burgdorf and the greater Emmental
area. Almost all suppliers are located in the
immediate vicinity, which enables greater flexi-
bility and efficiency for the company. Regular
visits to regional partners and the participation
in the Emmental trade and industry association
as member of the management board maintain
strong partnerships. Aebi Schmidt also takes
care to ensure that its workforce is knowled-
geable about the local market. More than 75%
of the Aebi Division’s employees are therefore
from the immediate vicinity of the Emmental
region. The significance of Aebi as a regional
employer was further strengthened by the ef-
forts the city of Burgdorf made to secure the
construction of the new Aebi facility in Burg-
dorf. The Schmidt Division’s three business
locations, St. Blasien (Germany), Holten (Net-
herlands) and Kielce (Poland), are firmly rooted
in their local communities. This also generates
profit for a network of smaller suppliers in these
regions, who partly provide finishing services
for Schmidt. Great care is also taken to main-
tain strong relations with community represen-
tatives and suppliers.
Further social contributions are made in the
form of sponsoring. In cooperation with Stadler
Rail, Aebi sponsored the ESAF 2010 (Eidge-
nössisches Schwing- und Älplerfest) as one of
its major sponsors. Additionally, smaller finan-
cial and material donations are made to the SAZ
training and work centre for disabled people in
Burgdorf, which also receives small orders
from time to time. Regional sponsoring is also
taking place at the business location in Holten
(Netherlands) in connection to its workforce.
The primary focus is on sporting events, inclu-
ding the sponsorships of the Holten Triathlon
Organisation for the European Triathlon Cham-
pionship in 2009 and the KNSB speed skating
team in 2010, which also provides entertain-
ment for customer activities.
Fair play – an important principle
Aebi Schmidt takes great care to ensure fair
treatment of social protagonists such as asso-
ciations or competitors. The code of conduct
sets out the corresponding rules of behaviour,
which are verified within the scope of risk ma-
nagement.
There were no incidents of corruption at Aebi
Schmidt up to and including the reporting year
2010. During the year under review, Aebi
Schmidt was not involved in any lawsuits for
anti-competitive practices, nor were there any
fines or non-monetary penalties for violations
of other rules or regulations.
Good supplier relations as a strong founda-
tion
Maintaining good relations with its roughly
2,000 suppliers is a critical success factor for
Aebi Schmidt. The facilities’ range of suppliers
includes small, medium-sized and large enter-
prises from a variety of business sectors. The
primary focus is on material groups such as
steel, stainless steel, welding parts, engines
and hydraulic components. In addition to steel
and stainless steel as raw materials, purchasing
includes assembly components as well as DIN
and standardised parts. The purchase costs in
the reporting year amounted to approx. EURO
120 million. Starting in 2011, an extended cate-
gorisation of suppliers according to risk of loss
and purchase volume is to be made. Educating
employees about the selection process of sup-
pliers and the timely integration of purchasing
into development projects reduces the risks for
Aebi Schmidt and promotes good relations with
important suppliers. The risk of suppliers viola-
ting Aebi Schmidt’s environmental and social
standards is rather small. Nevertheless, related
criteria such as the use of reusable packaging
and eco-friendly packaging materials are taken
into account in the evaluation of suppliers whe-
never possible.
SUSTAINABILITY - COMMUNITY
33
Imprint:
Publisher:
Aebi Schmidt Holding AG
Thurgauerstrasse 40
CH - 8050 Zurich
Tel: + 41 44 308 58 00
Fax: + 41 44 308 58 30
Internet: www.aebi-schmidt.com
Consulting Sustainability Report
sustainserv GmbH,
Zürich (CH) und Boston (US)
Copyright:
Copyright 2010 Aebi Schmidt Holding AG. All
rights reserved. All texts, pictures, graphic de-
sign, including arrangements thereof are sub-
ject to the laws of copyright and other laws
concerning the protection of intellectual
property rights. The contents may not be co-
pied, distributed, altered or made available to
third parties for commercial purposes. Some
pages of the Aebi Schmidt Holding AG Annual
Report 2010 contain pictures which are subject
to the copyright of those people who provided
them.