Burckhardt Compression Annual Report 2021

FY2021 Annual Report · Burckhardt Compression

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ANNUAL REPORT 2021

Burckhardt CompressionAnnual Report 2021Table of contents

REPORT SECTION

International

02 At a Glance
04 Milestones 2021
06
08 Letter to Shareholders
Key Figures
11
12
Our Company
18 Our Strategy
22 Systems Division
26 Services Division

30 SUSTAINABILITY
32 Story #1:

Creating impacts where they matter

34 Story #2:

Innovation to tackle the energy transition

38
41
44
45
47
49
51
53
54
55

Sustainability Report 2021
1. GREENHOUSE GAS EMISSIONS AND CLIMATE CHANGE

2. ENERGY USE AND EFFICIENCY

3. LONGEVITY AND CYCLABILITY

4. ENVIRONMENTAL IMPACTS OF APPLICATION PURPOSE

5. WORKING CONDITIONS

6. OCCUPATIONAL HEALTH AND SAFETY

7. PRODUCT SAFETY

8. BUSINESS CONDUCT

OUR COMMITMENT

Extended key figures

58
60 GRI content index
65

SASB Mapping

66 CORPORATE
GOVERNANCE
67

1. GROUP STRUCTURE AND SHAREHOLDERS

69
70
75
76
78

2. CAPITAL STRUCTURE

3. BOARD OF DIRECTORS

BOARD MEMBERS

4. EXECUTIVE MANAGEMENT
EXECUTIVE MEMBERS

5. COMPENSATION, SHAREHOLDINGS AND LOANS

6. SHAREHOLDERS’ PARTICIPATION RIGHTS

7. CHANGES OF CONTROL AND DEFENSIVE MEASURES

8. AUDITORS

INFORMATION POLICY

10. QUIET PERIODS

80 COMPENSATION
REPORT

1. BASIS

2. COMPENSATION POLICY

3. ORGANIZATION, DUTIES AND POWERS

4. COMPENSATION SYSTEM

5. COMPENSATION PAID WITH COMPARATIVE FIGURES

FOR THE PREVIOUS YEAR

6. OVERVIEW OF SHAREHOLDINGS AND

DISTRIBUTED SHARES

7. TRANSACTIONS WITH THE BOARD OF DIRECTORS,

THE EXECUTIVE MANAGEMENT AND RELATED PARTIES

8. MOTIONS FOR THE ANNUAL GENERAL MEETING

9. EVALUATION OF THE COMPENSATION SYSTEM

REPORT OF THE STATUTORY AUDITOR TO THE

GENERAL MEETING

88 FINANCIAL
REPORT

90
91
92
93

Consolidated income statement
Consolidated balance sheet
Consolidated cash flow statement
Consolidated statement of changes in equity

94 Notes to the Consolidated Financial

Statements

1. GENERAL INFORMATION

2. ACCOUNTING POLICIES

3. FINANCIAL RISK MANAGEMENT

4. BUSINESS COMBINATIONS AND OTHER CHANGES IN

THE SCOPE OF CONSOLIDATION

5. SEGMENT REPORTING

6. PERSONNEL EXPENSES

99
100

101
103

7. RESEARCH AND DEVELOPMENT EXPENSES

8. OTHER OPERATING INCOME AND EXPENSES

104

9. FINANCIAL INCOME AND EXPENSES

10. INCOME TAXES

106

11. EARNINGS PER SHARE

12. INTANGIBLE ASSETS

108
109

110
111

13. PROPERTY, PLANT & EQUIPMENT

14. OTHER FINANCIAL ASSETS

15. INVENTORIES

16. TRADE RECEIVABLES

17. OTHER CURRENT RECEIVABLES

18. SHARE CAPITAL AND TREASURY SHARES

19. FINANCIAL LIABILITIES

112

20. PROVISIONS

21. OTHER NON-CURRENT LIABILITIES

113

22. OTHER CURRENT LIABILITIES

23. ACCRUED LIABILITIES AND DEFERRED INCOME

24. DERIVATIVE FINANCIAL INSTRUMENTS

25. CONTINGENT LIABILITIES

114

26. COMMITMENTS

27. PLEDGED ASSETS

28. SHARE-BASED PAYMENTS

29. RELATED PARTY TRANSACTIONS

115

116
118

30. EMPLOYEE BENEFIT OBLIGATIONS
31. IMPACTS OF THE CONFLICT BETWEEN RUSSIA

AND UKRAINE

32. EVENTS AFTER THE BALANCE SHEET DATE

33. GROUP COMPANIES AND ASSOCIATES

REPORT ON THE AUDIT OF THE FINANCIAL REPORT

(CONSOLIDATED FINANCIAL STATEMENTS)

122 Financial Statements of Burckhardt
Compression Holding AG, Winterthur

BALANCE SHEET

123

INCOME STATEMENT

NOTES TO THE FINANCIAL STATEMENTS OF
BURCKHARDT COMPRESSION HOLDING AG

128

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS OF
BURCKHARDT COMPRESSION HOLDING AG, WINTERTHUR
(FINANCIAL STATEMENTS)

131 Glossary/Imprint

Burckhardt Compression is the worldwide
market leader for reciprocating compressor
systems and the only manufacturer and
service provider that covers a full range of
reciprocating compressor technologies
and services. Its customized and standard
compressor systems are used in the gas
gathering and processing, gas transport and
storage, refinery, chemical, petrochemical,
industrial gas and hydrogen mobility and
energy markets. Since 1844 its highly skilled
workforce has crafted superior solutions
and set the benchmark in the gas compres-
sion industry.

ONLINE REPORT
report.burckhardtcompression.com

02 REPORT SECTION

30 SUSTAINABILITY

66 CORPORATE
GOVERNANCE

80 COMPENSATION
REPORT

88 FINANCIAL REPORT

Table of contents

Cover:
LNG Tanker Rainbow Flex
Photo of Benjamin Seeger,
Field Service Coordinator on
his way to his next job site
on board the Rainbow Flex.

Burckhardt CompressionAnnual Report 2021At a Glance

SIGNIFICANTLY HIGHER
ORDER INTAKE

The fiscal year 2021 was characterized by a significantly higher
order intake and a clearly improved operating income. The Board
of Directors will propose a higher dividend. We made further
progress towards our Mid-Range Plan targets as well as in integrating
digitalization and sustainability into our strategy and operations.

Order intake
in CHF mn

Sales
in CHF mn

976.6

650.7

8
5
6

9
2
6

4
9
5

9
9
5

7
.
8
5
6

3
.
7
0
6

6
7
6

5
2
5

Operating income
(EBIT)
in CHF mn

70.3

0
6

4
5

4
4

7
.
1
4

7
1

8
1

9
1

0
2

1
2

7
1

8
1

9
1

0
2

1
2

7
1

8
1

9
1

0
2

1
2

Net income
in CHF mn

Shareholders’ equity
in CHF mn

Net financial position
in CHF mn

50.4

2
7
4

9
3

2
3

9
2

242.9

–56.8

5
4
3

5
3
3

5
7
1
3

9
1
2

9
4
–

1
.

2
6
–

7
1

8
1

9
1

0
2

1
2

7
1

8
1

9
1

0
2

1
2

7
1

8
1

2
8
–

0
2

1
2

7
.
1
9
–

9
1

Burckhardt CompressionAnnual Report 2021At a Glance

Water consumption

EcoVadis

–8.1%

Global water consumption in our
factories was reduced by 8.1%.

Burckhardt Compression was
awarded the EcoVadis silver
medal in 2021 for its sustainability
management, which placed
it in the top 25% in the sector.

2021

Performance FY2021
Total Shareholder Return FY2021
in %

0.0

57.9%

10.9%

Burckhardt Compression

SPI

1
2
r
a
M

1
2
r
p
A

1
2
y
a
M

1
2
n
u
J

1
2
l
u
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1
2
g
u
A

1
2
p
e
S

1
2
t
c
O

1
2
v
o
N

1
2
z
e
D

2
2
n
a
J

2
2
b
e
F

2
2
r
a
M

Performance since IPO
Total Shareholder Return 26 June 2006 to 31 March 2022
in %

658.9%

167.4%

Burckhardt Compression

SPI

8
0
n
u
J

0
1
n
u
J

2
1
n
u
J

4
1
n
u
J

6
1
n
u
J

8
1
n
u
J

0
2
n
u
J

800

600

400

200

0.0

6
0
n
u
J

Burckhardt CompressionAnnual Report 2021

PARTNERSHIP WITH SHELL
NEW ENERGIES
Shell New Energies has selected Burck-
hardt Compression as its partner for the
development of oil-free high-pressure
hydrogen compressors. As part of this
project, Burckhardt Compression is building
a new test facility in Winterthur, Switzer-
land, to further develop sealing technol-
ogy and solutions for hydrogen refueling
stations serving heavy-duty vehicles. These
solutions will enable the compression of
hydrogen gas up to 900 bar (as a booster),
using non-lubricated compressors.

Milestones 2021

1.5 MILLION

OPERATING HOURS WITH
LABY®-GI COMPRESSORS

Burckhardt Compression’s Laby®-GI compressor system plays an important role in
the fuel supply on liquefied natural gas (LNG) carriers. During transport, the liquid gas
warms up resulting in a small amount of evaporation in the form of boil-off gas that
is then either reliquefied and fed back into the tank or used as fuel for the carrier’s
engines. Liquefaction systems and diesel gas engines both require pressure of up to
300 bar. This is why Burckhardt Compression has developed specific solutions for
LNG applications that compress gas at low temperatures and high pressure, and meet
the stringent requirements of use on the high seas. The unique selling point of the
Burckhardt Compression system is the sealed crankcase that prevents methane from
escaping into the atmosphere. In the reporting period, the installed system Laby®-
GI recorded 1.5 million operating hours for the first time, reflecting its high level of
reliability.

ECONOMICAL AND ECO-
LOGICAL OIL-FREE
HYDROGEN COMPRESSOR

In the reporting period, Burckhardt Compression developed and sold large
high-pressure reciprocating compressors with a discharge pressure of up to
550 bar for use in a range of hydrogen applications. The innovative design
makes them particularly suitable for filling hydrogen trailers and hydrogen
fueling stations with high mass flows, and reduces the number of compres-
sors required. The development of seals for oil-free high-pressure recipro-
cating compressors represents another milestone. These innovations enable
Burckhardt Compression to efficiently support the planned increase in volume
across various hydrogen applications.

Annual Report 2021

Burckhardt Compression

2021

ACQUISITION OF MARK VAN SCHAICK
STRENGTHENS SERVICE BUSINESS
Burckhardt Compression’s acquisition in December 2021 of Mark van
Schaick BV, based in Rotterdam in the Netherlands, expands its
repair and service capabilities in Europe. The company is a leading
provider of complex repair services – including crankshafts – for
customers worldwide in the maritime and petrochemical industries.

Milestones 2021

COLLABORATION
WITH MICROSOFT
AND PTC

Under the name UP! Solutions, Burckhardt Compression
offers digital solutions that provide real-time monitoring
of compressors and remote support for customers’ on-site
maintenance – whether on land or at sea. To accelerate
these developments, the company collaborates with the
leaders in innovative digital solutions. In the reporting period
Burckhardt Compression announced that it was working with
PTC – based in Boston, US – to develop remote service solu-
tions for customers around the world and augmented reality
(AR) service solutions. Burckhardt Compression also works
with Microsoft in order to offer customers remote support
that’s stable even in rough seas.

RECORD ORDERS FOR HYPER COMPRESSORS
AND INDUSTRIAL GAS COMPRESSORS FOR THE
SOLAR PANELS INDUSTRY
The sharp rise in global demand for solar cells and the resulting
increase in production capacity led to a record number of orders for
Burckhardt Compression in the reporting period. To make solar
cells, polysilicon and a thin layer of EVA plastic are required – and
Burckhardt Compression is a leading supplier of compression
solutions for both.

Annual Report 2021

Burckhardt Compression

International

ALWAYS
CLOSE TO OUR
CUSTOMERS

Customer proximity is one of our success
factors. Burckhardt Compression is
represented on all continents with 36 com -
panies worldwide, 3 production sites
and 5 assembly plants.

subsidiaries worldwide

2’732

employees

countries worldwide with Burckhardt
Compression presence

Annual Report 2021

Burckhardt Compression
Burckhardt Compression

International
International

Burckhardt Compression
Manufacturing/Assembly
Locations

Burckhardt Compression
Subsidiaries, Associates and
Service Centers

OUR CUSTOMERS

Our customer base includes some of the largest, most famous,
and most innovative companies in the world. We serve
– energy companies,
– gas transportation and storage companies

(onshore and offshore)

– customers in the marine sector
– H2 processing industries
– petrochemical/chemical companies
– industrial gas companies
– general engineering companies that design and construct
production lines or entire plants for our end customers

Sales of new machines, mostly via general contractors, are the
responsibility of the Systems Division, while the Services Division
is responsible for all service and spare parts activities.
Burckhardt Compression attaches great importance to a partner-
ship-based relationship with its customers. In order to understand
their needs even better and continuously improve, both divisions
conduct regular customer surveys.

7
7

Annual Report 2021

Burckhardt Compression

RubrikBurckhardt CompressionAnnual Report 2021Letter to Shareholders

DEAR SHAREHOLDERS,

Orders strongly driven by energy transition in Asia, USA and Europe
In the year under review, global markets benefited from the global transi-
tion towards more sustainable and secure energy sources. Thanks to our
positioning along these trends, order intake increased significantly. The
sharp rise in solar panel production in China strengthened the demand for
compressors in the Low Density Polyethylene (LDPE), Ethylene-Vinyl-Ac-
etate (EVA) and polysilicon plants applications, driving the growth in the
Petrochemical and Industrial Gas markets. The demand for hydrogen fuel
stations in Europe and the USA, as well as the ongoing investments in hy-
drogen liquefaction plants, drove orders in the Hydrogen Mobility and En-
ergy markets, while the demand for LNG fueled ships (Liquefied Natural
Gas), LNG carriers and LPG carriers (Liquefied Petroleum Gas) stimulated
growth in the Transport and Storage business. The Services market in Asia
Pacific (excluding China), North America and Europe benefited from a lift-
ing of most pandemic-related lockdowns and travel restrictions during the
year, with positive impacts especially on the maintenance and repair busi-
ness. Engineered solutions and spare parts continued to grow.

Market and Business Challenges
The various lockdowns in China, as well as the Chinese energy shortages in
the fall of 2021, impacted the business partially. Global challenges in the
supply chain could so far be averted thanks to a diversified supply network
and framework agreements with various suppliers. During fiscal year 2021,
the related increasing raw material and logistic prices could be passed on
or mitigated. Due to the war in Ukraine, Burckhardt Compression is not
accepting new orders from the Russian market since mid-March 2022. In
the past few years, 2% to 5% of sales were attributable to business with
Russia. The tightening of sanctions, after the year-end closing, will affect
the execution of the backlog of Russian projects. Many of these challenges
are expected to continue in 2022.

Group: significantly higher order intake, clear growth of profitability
In fiscal year 2021, the Group increased its order intake significantly by
44.3% to CHF 976.6 mn. Sales amounted to CHF 650.7 mn, similar to the
previous year. Gross profit was up 14.9%, to CHF 190.8 mn, yielding a signifi-
cantly higher gross profit margin of 29.3% (previous year: 25.2%).

The consolidated operating profit (EBIT) rose 15.7%, to CHF 70.3 mn (previ-
ous year: CHF 60.8 mn), corresponding to an EBIT margin of 10.8% (previous
year: 9.2%). Net profit of CHF 50.4 mn exceeded the previous year figure
(CHF 47.2 mn) by 6.8%, while earnings per share attributable to Burckhardt
Compression Group shareholders rose by 14.0%, from CHF 13.00 to
CHF 14.82.

Burckhardt CompressionAnnual Report 2021Letter to Shareholders

Selling, marketing and general administrative expenses amounted to
CHF 106.9 mn (16.4% of sales). Research and development expenses in-
creased by CHF 4.3 mn to CHF 19.7 mn in order to develop innovative solu-
tions for the marine as well as hydrogen mobility and energy markets.
Other operating income (net) was at CHF 6.1 mn, or CHF 3.0 mn above the
previous year, primarily due to non-recurring effects.

Total assets at the end of March 2022 were reported at CHF 837.8 mn,
10.5% higher than in the previous year. This rise is attributable mainly to
the strong increase in advance payments from customers and the growth
in inventories. The net financial position at the end of fiscal year 2021
amounted to CHF –56.8 mn (CHF –82.4 mn at the end of fiscal year 2020).
Work in progress pre-financed by customer advance payments improved
to CHF 52.0 mn (end of March 2020: CHF 11.5 mn) as a result of the strong
growth in order intake. Total equity improved to CHF 242.9 Mio. (+23.3 Mio.),
while the equity ratio of 29.0% is unchanged from the previous year and
slightly below the target level of over 30% – attributable to higher total as-
sets and the offsetting of goodwill against the equity from the acquisition
of Mark van Schaick BV.

Systems Division: markedly higher order intake, lower sales, EBIT and
gross profit margins substantially up
After a strong first half-year, order intake of the Systems Division contin-
ued to grow in the second half of the year, reaching CHF 651.1 mn for the
full year (+60.9%). This amount includes an exceptionally high number of
large orders received for LDPE, EVA and polysilicon applications, ending
up in a total amount of around CHF 150 million order intake. The invoic-
ing of these projects will be spread over the next two fiscal years. Sales of
CHF 372.7 mn was 9.1% below the previous year figure, due to the corona-
related weak order intake in the first half of 2020. Gross profit was up 20.7%
to CHF 71.3 mn, resulting in a gross profit margin of 19.1% (previous year:
14.4%), mainly due to a favorable product mix and a higher capacity utili-
zation. Price increase in certain material categories were compensated
by procurement savings and by professional project management. Thanks
to a strong second half-year, the division significantly improved its EBIT
margin to 5.7% (previous year: 3.9%) despite the lower sales volume.

Services Division: significantly higher order intake and sales, higher EBIT
Orders received by the Services Division rose by a strong 19.6% to
CHF 325.5 mn, comparing to a previous year, which included a long-term
marine service contract over a period of ten years in the low double-digit
million range. Sales increased by 11.8% to CHF 278.0 mn. Gross profit grew
by CHF 12.5 mn to CHF 119.6 mn, resulting in a gross profit margin of 43.0%,
unchanged from the previous year. EBIT rose by CHF 7.1 mn to CHF 58.4 mn
thanks to higher sales and resulted in an EBIT margin of 21.0% (previous
year 20.6%). Arkos Field Services (USA) clearly improved, and the integra-
tion of the acquired Mark van Schaick BV business in the Netherlands is
well underway.

First successes with digital solutions
In the reporting period, we integrated digital service solutions into our
service portfolio under the name UP! Solutions. UP! Remote Support, the
first service of its kind, supports our customers on site in real time with a
HoloLens (augmented reality glasses) or a tablet. Our experts guide the on-
site technician with precise instructions through each individual work step,
diagnose problems, and propose solutions. Additional services based on
data analysis and artificial intelligence are currently in development and
will be tested with pilot customers in the current fiscal year.

First sustainability report in accordance with GRI standards
We made significant progress in systematically integrating sustainability
into our strategy and business processes. We have strengthened our man-
agement approaches to the material sustainability topics in cross-func-
tional teams and defined key performance indicators, which are presented
in the sustainability report, following the GRI standards. Strengthening the
sustainability performance and contributing to the energy transition is a
long-term commitment and will play an integral role in the development
of the new Mid-Range Plan for 2023 to 2027.

New CEO Fabrice Billard
On April 1st, 2022, Fabrice Billard, previously president of Systems Division,
succeeded Marcel Pawlicek as CEO. While providing continuity for the ex-
ecution of the last year of the current Mid-Range Plan, the new manage-
ment will focus on building a new strategic plan, capitalizing on the future
market opportunities related to the global energy transition and to the re-
duction of CO₂ and other greenhouse gas emissions at customer facilities.

Burckhardt CompressionAnnual Report 2021Letter to Shareholders

Outlook for fiscal year 2022; new Mid-Range Plan in 2023
We expect to continue to benefit from the positioning in applications re-
lated to the global transition towards more sustainable and secure ener-
gy sources. Based on the order intake of the past two fiscal years and on
the challenges in the supply chains, we currently expect sales to grow to
between CHF 720 mn and CHF 760 mn at Group level for the fiscal year
2022, thus exceeding the target of CHF 700 set in the Mid-Range Plan. Due
to one-off costs related to the tightening of sanctions towards Russia after
the year-end closing (EBIT impact of CHF 5 to 7 mn expected), as well as
a change in business mix towards our Systems Business, the operating
margin is expected to be similar to the prior year and therefore within the
Mid-Range Plan target of 10% to 15%. This is assuming that global chal-
lenges in the supply chain and geopolitical developments will not signifi-
cantly impact the business activity levels going forward.

The new Mid-Range Plan for 2023 to 2027 will be prepared in the current
fiscal year and is expected to be externally communicated in November
2022.

Dividend
Earnings per share attributable to Burckhardt Compression Group share-
holders rose by 14.0%, to CHF 14.82. The Board of Directors will propose
to the Annual General Meeting a dividend of CHF 7.50 per share (previous
year: CHF 6.50), an increase of 15.4% compared to fiscal year 2020. This
corresponds to a payout ratio of 50.6% of earnings per share attributable
to shareholders of Burckhardt Compression (previous year: 50.0%), remain-
ing at the lower end of the target range of 50% to 70% in order to further
strengthen the equity ratio towards the target of 30%.

Ton Bücher, Chairman of the Board of Directors

Marcel Pawlicek, CEO until March 31, 2022

Thanks
The Board of Directors and Executive Management would like to thank our
employees for their continuing high level of commitment. Their unwaver-
ing engagement made it possible to satisfy our customers and clearly im-
prove our financial performance in a challenging global environment. We
would also like to thank our shareholders and our customers worldwide for
their trust.

Kind regards,

Ton Büchner
Chairman of the Board of Directors

Marcel Pawlicek
CEO until March 31, 2022

Winterthur, June 8, 2022

Burckhardt CompressionAnnual Report 2021Key Figures

KEY FIGURES

in CHF mn

Total

Order intake

Sales

Operating income (EBIT)

in % of sales

Net income

in % of sales

Systems Division

Order intake

Sales

Operating income (EBIT)

in % of sales

Services Division

Order intake

Sales

Operating income (EBIT)

in % of sales

Balance sheet

Balance sheet total

Shareholders’ equity in %

Net financial position

Net income per share

Dividend per share

Payout ratio

Market capitalization (in CHF mn)

Employees

Employees as per end of fiscal year (FTE)

Apprentice

Turnover rate

Average company affiliation (years)

Environment

Energy use (MWh)

Greenhouse gas emissions Scope 1 (tCO2e)
Greenhouse gas emissions Scope 2 (tCO2e)
Water (m3)

2021

976.6

650.7

70.3

10.8

50.4

7.7

651.1

372.7

21.1

5.7

325.5

278.0

58.4

21.0

837.8

29.0

–56.8

14.82

7.50

50.6%

1’662.6

2’732

10.1%

8.4

42’581

2’465

12’815

83’810

2020

Change 2021/2020

676.6

658.6

60.8

9.2

47.2

7.2

404.6

409.8

16.2

3.9

272.1

248.8

51.2

20.6

758.1

29.0

–82.4

13.00

6.50

50.0%

1’071.0

2’538

9.5%

8.5

38’733

3’391

8’184

91’218

44.3%

–1.2%

15.7%

6.8%

60.9%

–9.1%

30.4%

19.6%

11.8%

13.9%

10.5%

14.0%

15.4%

55.2%

7.7%

8.5%

–1.2%

9.9%

–27.3%

56.6%

–8.1%

Burckhardt CompressionAnnual Report 2021

Our Company

TRADITION AND
INNOVATION

For 178 years, Burckhardt Compression has been at the
forefront of its industry and has continued to innovate to
become the leader in reciprocating compression systems
and services.

VISION
We are our customers’ first choice for reciprocating compression solutions
across the entire product life cycle.

MISSION
Systems Division: We provide optimum reciprocating compression solu-
tions for every customer.
Services Division: We love to provide services that matter. Hands-on.

GUIDING PRINCIPLES
We are convinced that our well-established corporate culture forms the
foundation of our competitiveness. The reputation that Burckhardt Com-
pression enjoys and the mutual trust that exists within the Group depend
mainly on the integrity and conduct of each and every employee. A com-
prehensive values program called “Values and Behaviors” ensures that em-
ployees in all Group’s locations and companies share and actively uphold
the same corporate values and principles.

KEY APPLICATIONS
Gas gathering and processing
The production of marketable and transportable natural gas begins with
pre-processing at the gas field itself using high-speed compressors. These
remove condensates, acid gas, mercury and water from the gas. Typically,
such processes produce the corrosive exhaust gases carbon dioxide (CO2)
and hydrogen sulfide (H2S), which are then removed from the process by in-
jection into high-pressure disposal wells using reciprocating compressors.
Besides these onshore solutions, Burckhardt Compression also pro-
vides offshore solutions for various applications associated with gas gath-
ering and processing.

Gas transport and storage
Gas transport and storage is a key market for Burckhardt Compression. In
order to store or transport gases, they must be compressed or liquefied.
Gases typically used in this area of application are LNG (liquefied natural
gas), LPG (liquefied petroleum gas) and CNG (compressed natural gas). In
the case of natural gas, liquefaction shrinks its volume by a factor of 600.
Gas transport via LNG tankers offers greater flexibility and avoids the geo-
political risks associated with a dependence on gas pipelines. The process
chain supported by Burckhardt Compression’s compressors and services
includes liquefaction, transfer to the carrier, handling the boil-off gases
(BOG) during transport, unloading, storage until regasification, and feeding
into the consumer network. Burckhardt Compression provides unique solu-
tions for the compression and reliquefaction of BOG and fuel gas injection
in two-or four-stroke marine diesel engines, and has acquired a significant
share in the LNG-powered ships market over recent years. The company
offers high and low pressure solutions for dual-fuel engines. Both systems
allow the ship operator to switch between diesel fuel injection or injection
of BOG produced on board. In addition to LNG carriers, commercial and
cruise ships also increasingly use LNG or dual-fuel engines in order to meet
stricter environmental regulations. Burckhardt Compression’s compres-
sors are the only ones that do not result in loss of gas (known as “methane
slips”) and therefore meet the very highest emissions regulations. Increas-
ing energy requirements and the associated rise in demand for natural gas
has boosted global trade. Burckhardt Compression also offers solutions for
gathering and storage of natural gas and other hydrocarbons in onshore or
offshore installations.

Refinery
Refineries use distillation and chemical reactions to turn crude oil into
commercial products from which a range of fuels and lubricants can be
extracted, as well as raw materials for other downstream processes. In this
market, Burckhardt Compression mainly supplies compressors for various
hydrogen applications (hydrotreating, isomerization, hydrocracking, re-
forming). The compressors are used to refine the raw products and reduce
the nitrogen and sulfur content and odorants. Stricter environmental regu-
lations, increased cost pressure, facility expansion and the requirement to
process raw products of differing quality in a single facility, are important

Burckhardt CompressionAnnual Report 2021Our Company

From engineering workshop
to global market leader

1844
Franz Burckhardt opens engineering
workshop in Basel

1935
Development and sale of the first
labyrinth piston compressor (Laby)
for oxygen compression in steel
production

1951
Manufacture of LDPE thermoplastic
using hyper compressors

2015/19
Acquisition of Arkos Field Services,
US, in two stages. Access to a qualified
workforce and service centers across
the US

1856
Production of steam-powered
machines

1883
Development and sale of the first
single-stage, dry-running reciprocat-
ing compressor

1890
August Burckhardt founds the
Burckhardt Maschinenfabrik

1913
Delivery of first compressor for ammonia
synthesis to BASF Ludwigshafen, Germany

1920
Start of fertilizer production using
ammonia synthesis compressors

1969
Acquisition by Sulzer

1971
Transport and storage of natural gas
with process gas compressors

1982
Consolidation of Sulzer’s activities
in the field of reciprocating com-
pressors to form Maschinenfabrik
Sulzer-Burckhardt AG

1999
Consolidation of Basel and Winterthur
sites at the Winterthur site

2002
Five members of the management
board buy out the business togeth-
er with a financial investor. Name
changed to Burckhardt Compression

2006
Stock exchange listing on the SIX
Swiss Exchange (IPO), valor BHCN

2013
Laby®-GI compressors were used
on LNG tankers

2016
New company structure with two
divisions, Systems and Services

2016/20
Acquisition of Shenyang Yuanda
Compressors, the leading Chinese
manufacturer of reciprocating com-
pressor systems, in two stages.
Proximity to local market, expansion
of the product portfolio and direct
access to an established, local supply
chain

2020
Acquisition of the compressor busi-
ness of The Japan Steel Works JSW
to strengthen position in the global
market and particularly in Japan

2021
Acquisition of Mark van Schaick

2021
Launch of high pressure non-lubri-
cated compressor for H2 mobility and
energy

Company history

Compressor development

Burckhardt CompressionAnnual Report 2021Our Company

drivers in this area of application. Standard refineries are increasingly con-
verted into biorefineries in which various intermediate and end products
(e.g. chemicals, materials, bioenergy) are sustainably produced with the
fullest possible use of biomass.

Petrochemical/chemical industry
The petrochemical/chemical industry is one of Burckhardt Compression’s
main markets. The production of a vast range of petrochemical and che-
mical products, such as polyolefins (polymers), lacquers, synthetic rubbers,
adhesives and dyes, solvents, paints, fertilizer, detergents and textiles,
entails the processing of oil and natural gas. Demand in this area is fed
primarily by the growing worldwide demand for industrial products made
of plastic, which is driving an expansion of production capacity, combined
with a trend towards greater local added value. Chemical recycling, which
uses reciprocating compressors to break down petrochemical products
to the constituent gas, is an application that will gain in importance as
it conserves resources. The lower consumption resulting from increased
recycling of everyday products is more than offset by greater demand for
high-end plastic products. In this application area, companies will continue
their efforts to reduce costs by replacing smaller plants with larger ones,
establishing strategic production sites and extending value-added chains.

Hyper Compressors, one of Burckhardt
Compression’s specialist products,
are used in the manufacture of industrial
plastics, in particular solar panel film.

Industrial gas
The end market for industrial gases is quite broad, encompassing indus-
tries as diverse as metalworking and metallurgy, chemical companies,
food manufacturing, glass, pulp and paper manufacturing, electronics,
construction, rubber and plastics processing and healthcare. Industrial
gases, such as argon, helium, carbon dioxide, carbon monoxide, oxygen, ni-
trogen and hydrogen, are produced in air separation or hydrogen generation
plants. Growth drivers are regional growth and industry-specific growth. It
is also important to mention the leading role that Burckhardt Compression
now plays in solutions for the production of polysilicon, thanks to the rising
demand for solar panels.

Burckhardt Compression
has more than 60 years of experience
and offers a broad product range
of hydrogen applications and oil-free
compressors.

H2 mobility and energy
H2 mobility and energy is the fastest growing market for Burckhardt Com-
pression. The energy and transport industry’s hopes rest on hydrogen and
its use as a driver of the urgently required reduction in carbon dioxide emis-
sions. Compressors play a key role in the hydrogen logistics chain. Demand
for ultra-pure high-pressure hydrogen for fuel cells is increasing rapidly.
The company has developed solutions for hydrogen production and lique-
faction plants, hydrogen fueling stations with high mass flows, trailer fill-
ing and power-to-gas hydrogen production.

COMPRESSOR SYSTEMS
Burckhardt Compression’s reciprocating compressors lie at the heart of
our customers processes.

Laby® – Labyrinth Piston Compressors
The Labyrinth Piston Compressor is unique with its exceptional level of re-
liability and availability. The special Labyrinth seal on pistons and piston
rods creates a completely oil-free, contactless seal.

This prevents piston ring debris from contaminating the gas as well
as friction-induced hot spots. The result is a longer service life, which has a
positive impact on overall reliability and operating costs. The Laby® Com-
pressor is designed to compress bone-dry, dirty, abrasive and other gases.
The gas-tight and pressure-resistant casing reduces gas emissions and
losses to the environment to virtually zero. The Laby® Compressor easi-
ly manages the compression of LNG boil-off gas at suction temperatures
down to –160°C (–250°F).

Burckhardt CompressionAnnual Report 2021Our Company

Laby®-GI Compressors
The Laby®-GI Compressor is mainly used for the compression of LNG boil-
off gas. It has a fully balanced design that eliminates unbalanced moments
and forces, so it can be used on offshore vessels and installations where
strict guidelines on maximum allowable vibration levels on deck struc-
tures must be observed. The unique combination of labyrinth seal design
and tried-and-tested ring seal technology makes Laby®-GI Compressors
the solution of choice for both low-temperature and high-pressure applica-
tions. The proven technology guarantees maximum efficiency and lowest
life cycle costs without any gas slippages. Depending on the operating con-
ditions, Laby®-GI Compressors can be engineered for lubricated or non-lu-
bricated compression applications.

Process Gas Compressors per API 618
We have many years of experience with hydrogen compression systems
for the refining industry and now also offer hydrogen compression solu-
tions for the H2 mobility marketplace. Process Gas Compressors built by
Burckhardt Compression are synonymous with unrivaled availability and
long operating lives. Optimal sizing and the use of top quality compressor
components and materials ensure low operating and maintenance costs.
Our Process Gas Compressors are built to customer-specific applica-
tion requirements in accordance with the API 618 guidelines. Burckhardt
Compression offers non-lubricated and lubricated Process Gas Compres-
sors, horizontal and vertical. They are suited in particular to the high-pres-
sure compression of hydrogen, hydrocarbon and corrosive gases.

The design, the advanced Burckhardt
Compression technology and superb quality
together with the robust construction
translate into excellent reliability and low
life cycle costs.

Burckhardt Compression now offers a complete portfolio of Process
Gas Compressors for refineries. In addition to the premium product line,
which focuses on lowering operating costs through optimized design and
high-quality components, we now offer a robust, modular and CAPEX-opti-
mized product line. Thanks to Burckhardt Compression global engineering
and service organizations, customers benefit from the Group’s centers of
excellence around the world and comprehensive solutions geared to cus-
tomer requirements.

Hyper Compressors
Burckhardt Compression is the world market leader for Hyper Compres-
sors. The Hyper Compressor is a high-pressure reciprocating compres-
sor for low density polyethylene (LDPE) and ethylene-vinyl acetate (EVA)
plants with a discharge pressure of up to 3’500 bar. Burckhardt Compres-
sion has established an outstanding track record with nearly 70 years of
experience in building this type of compressor. They are characterized by
a long operational life and high safety standards, which can be traced to
their unique construction design and Burckhardt Compression’s global
one-stop maintenance and service capabilities.

The most powerful compressor in the world, driven by a 33’000 kW
electric motor and compression capacity of 400’000 tonnes of ethylene a
year, was built by Burckhardt Compression in 2016.

Standard High-Pressure Compressors
Burckhardt Compression’s standard high-pressure compressors are re-
ciprocating compressors with a compact design and low weight. They are
delivered skid-mounted with structural supports that dampen vibration, so
there is no need for a special foundation. The air and water-cooled com-
pressors are used to compress air, hydrogen, nitrogen, helium, argon, nat-
ural gas and other non-corrosive gases and gas mixtures at land facilities
and on ships. The standard high-pressure compressors, which are small-
er than the other compressors in Burckhardt Compression’s portfolio of
piston compressors, have an output of up to 220 kW, maximum discharge
pressure of 450 bar and suction volumes of up to 1’500 Nm3/h.

High-Speed Compressors
High-speed compressors are essentially process gas processors with
shorter strokes and higher rotational speeds (1’000–1’800 rpm). These
compressor systems are used for natural gas production and transport ap-
plications, and they are often powered by gas engines rather than electric
motors. Due to the short-term nature of planning decisions in this industry,
there is a strong desire to keep initial investment costs to a minimum. With
this in mind, Shenyang Yuanda Compressor launched a compressor specifi-
cally for natural gas production and transport companies. It is now market-
ed to selected industries through Burckhardt Compression’s distribution
channels. Initial project wins in Europe attest to this product’s potential.

Diaphragm Compressors
Diaphragm compressors compress gas by means of a flexible membrane.
These membranes are usually metallic and have a limited stroke, and are
thus used for smaller gas flows. The advantage of this technology is that
the gas is hermetically sealed by the membrane during compression, so
very high levels of gas purity can be achieved. Compression is also oil-free
and very high pressures can be achieved. Burckhardt Compression’s dia-
phragm compressors are produced by Shenyang Yuanda Compressor and
are used for small hydrogen fueling stations and for the compression of
small quantities of pure gas for medical and other purposes.

Burckhardt CompressionAnnual Report 2021Original spare parts for optimal compressor operation
Original spare parts backed by Burckhardt Compression’s full warranty as
an OEM stand for superior quality and ensure low life cycle costs and the
optimal operation of compressor systems. These top-quality compressor
components are tailored to specific system requirements. Compressor
components, such as valves, seals, and packings, are subject to wear and
tear, so these parts largely determine the duration of service intervals, op-
erational availability and, ultimately, the overall life cycle costs of recipro-
cating compressors.

Monitoring and diagnostics – digital service solutions
Under the name UP! Solutions, Burckhardt Compression provides a range
of products that offer significant levels of control and convenience and en-
able its customers to remain leaders in innovation and technology. UP! Re-
mote Support has been on the market since this reporting period and offers
a remote support solution where customers receive direct, on-the-job sup-
port from the experts at Burckhardt Compression via a tablet or HoloLens.

UP! Solutions represents user-friend-
liness and maximizes productivity
through optimized uptime and overall
cost management, resulting in cus-
tomer success.

Our Company

24/7

Depending on the size of the project
and site, Burckhardt Compression also
offers 24/7 shift operation, so pro-
duction systems can be put back into
operation even faster.

SERVICE AND COMPONENTS BUSINESS
The Services Division operates as a holistic provider of service expertise for
reciprocating compressors and the associated system technology. Its
comprehensive range of services, from simple modifications to extensive
retrofit and revamp projects, and turnkey solutions, is backed by OEM parts
with high supply readiness and vast engineering know-how. Experienced
field service technicians ensure close interaction with the customer and
rapid response. Service Centers around the world also handle repairs of all
brands. We also provide reliable expert monitoring and diagnostic solu-
tions and advisory services – all from a single source.

Comprehensive engineering, revamp and repair expertise
For operators, the reliability, availability and cost-effectiveness of recipro-
cating compressor systems, and their compliance with environmental and
emission regulations, are crucial; thus, partners that can offer expertise
and sound advice are crucial. Burckhardt Compression stands out from
other manufacturers and service providers because of its comprehensive
in-house expertise. A wide range of complementary services are offered
individually for all brands of reciprocating compressors and their auxiliary
systems. Our internal specialists come from various technical fields and
use proprietary, advanced software tools to model, calculate, and optimize
reciprocating compressor performance, regardless of make or brand. They
are capable of resolving even highly complex technical problems cost-ef-
fectively and efficiently. A highly motivated team carries out revamp
projects of any complexity to the full satisfaction of customers and can
prolong the operating life of older compressors by retrofitting them with
the latest technology. This range of services also includes a valve service,
overhaul of compressors and repairs to the current best practice level. This
work is done by 50 service workshops around the world.

Burckhardt CompressionAnnual Report 2021Our Company

Reliable condition monitoring and diagnostic systems for reciprocating
compressors and equipment, integrated within the top-level systems for
monitoring an entire production facility, are effective tools for enhancing
workplace safety and prolonging the service intervals of a compressor
system. Continuous machine diagnosis detects potential and actual anom-
alies at an early stage and thus helps to avoid costly and unexpected down-
time. The diagnostic systems made by our subsidiary PROGNOST Systems
GmbH are designed for use with all types of reciprocating compressors and
with many other types of rotating machinery. They are backed by unrivaled
technology and deliver value day after day to our customers.

The introduction of the myFleet customer portal provides Burck-
hardt Compression’s customers with a transparent overview of its prod-
ucts and services, enabling users to access compressors and spare parts
so that they can stay on top of business. The myFleet portal offers a rapid,
transparent and efficient overview of queries, documentation and spare
parts for compressors.

PRODUCT DEVELOPMENT AND INNOVATION
Innovation management and systematic product development serve to
strengthen our competitive position and enable us to enter new markets.
The overarching goal is to enhance and strengthen our market-leading
technology. Quality, technology, materials, and design specifications are
geared towards high operational reliability, optimal service intervals and
easy maintenance – all with the aim of achieving the lowest possible oper-
ating costs and increasing the sustainability of our solutions.

Our product development follows a Stage-Gate process. It starts
with the idea generation and selection phase and goes through the initial
evaluation of product viability and market attractiveness, followed by the
elaboration of product performance specifications and market analysis,
and then the actual product development and subsequent launch. After
commissioning and operation, a final check is conducted. All Stage-Gate
milestones are subject to approval by the Innovation Board, which is head-
ed by members of the Executive Management.

Our more than 300 field service
experts have gained their
know-how over many years and
have extensive expertise in
each particular application.

Field Service – close to the customer
Geographic proximity and trusting relationships are vital to Burckhardt
Compression’s success. More than 300 experts in Field Service, from engi-
neers to local site managers, provide a rapid response capability that cov-
ers all the necessary skills and is notable for a pronounced service men-
tality. A local presence simplifies interaction with the customer, shortens
the supply chain and maximizes uptime. This service network will continue
to grow.

Customer training
The objective of our ever-growing range of customer training and learning
programs is to foster regular technical exchange with our customers on
compressors and their operation, and to pass on Burckhardt Compression’s
engineering expertise. Theoretical and practical training programs for
various types of compressors and for our own and third-party components
are offered at our modern training center in Winterthur, and at locations in
Korea, China, India, Germany and the US; we also provide on-site training
at customer sites for their systems. As part of the digitalization strategy,
online training has recently been accelerated to the point that it is already
more important than physical face-to-face training. This trend will contin-
ue in coming years.

Burckhardt CompressionAnnual Report 2021Our Strategy

ACTIVE INTEGRATION
OF STRATEGY AND
SUSTAINABILITY

Our strategy builds on an integrated business
model and is supported by long-term energy trends
and digitalization.

INTEGRATED BUSINESS MODEL
Integrated business model as the key to our success
Most compressors function as critical components of a larger system with
an average lifespan of 40 years or more, so it is vital to have the support
of a long-term oriented organization that offers expertise in all aspects
with highly trained employees. The key to ensuring the sustainability of
our solutions and success on the market is a profound knowledge of the
requirements of numerous application areas, and technical expertise in
the systems and individual components. Burckhardt Compression’s two
divisions, Systems and Services, cooperate with each other closely and

between them cover the entire life cycle of reciprocating compressor sys-
tems. Customers are supported throughout the whole life of their systems
by a wide range of products and services, from project definition, project
execution, system installation and commissioning ongoing service and
spare parts through to the complete overhaul of their system or even its
conversion for a new purpose.

The graphic below shows the entire life cycle of a compressor pro-
ject, including all project phases, and also displays the interaction between
the two divisions.

LIFE CYCLE OF A TYPICAL PROJECT

Duration

1–3 years

10–22 months

1–12 months

1–2 months

2 years (avg)

40 years (avg)

Phase

Evaluation and
start of construc-
tion

Engineering and
Manufacturing of
compressor system

Compressor
installation

Compressor
start-up

Warranty period

Post-warranty

Decision
Maker

End customer/
EPC/Licensor

End customer/
EPC

End customer

Project
Progression

Decision to build
plant and purchase
order

Compressor
shipped & transfer
of ownership

Product
acceptance

Repair & main-
tenance; structural
machine build

Services Division

Division in
Charge

Systems Division

Systems Division
Services Division

Burckhardt CompressionAnnual Report 2021Our Strategy

BASF is one of our longest-standing
customers. As early as 1885,
Burckhardt Compression supplied
one of the first reciprocating
compressors to Ludwigshafen.
And we are proud that the
company is still among our valued
customers today.

RESILIENCE
Stability in extraordinary situations
Burckhardt Compression’s business model, based on two strong divisions,
proved its worth in the exceptional situation caused by the pandemic and con-
tributed to the firm’s stability. The company’s deliberate decision to diversify
geographically in recent years has also proved correct. Since the Systems
Division has production facilities on different continents, the impact of local
lockdowns on logistical supply chains and production itself could be mitigated.
The Services Division also benefited from a broad geographical presence and
the expansion of its global marine business. The effects of travel restrictions
remained within bounds thanks to the global network of Service Centers that
has been built up and continuously expanded in recent years.

SUSTAINABILITY
A long-term strategic commitment
For Burckhardt Compression, sustainability means creating long-term values
for society, the environment and the economy. Our sustainability roadmap fol-
lows an impact driven approach, is focused on material topics and has a firmly
anchored governance. We have a long track record of implementing high stand-
ards in terms of working conditions, employment relations, environmental
management, health and safety at work and in providing durable and repairable
products. This is a comprehensive commitment that we continue to expand.

Our compressors are used mostly in upscaled industrial and energy sup-
ply processes. With our technology and engineering expertise, we help our cus-
tomers reduce energy consumption, greenhouse gas emissions and resource
use. That is why we work closely with our customers and develop robust solu-
tions to tackle their challenges.

Read more in our Sustainability Report on page 30.

Burckhardt CompressionAnnual Report 2021Our Strategy

MID-RANGE PLAN FOR FISCAL YEARS 2018 TO 2022
On track to achieve target
Burckhardt Compression’s strategy process is based on a mid-range plan
that is usually revised every five years and reviewed annually. The current
plan covers the fiscal years 2018 to 2022; the next plan for the period 2023
to 2027 is in preparation. The main objective of both divisions is to further
strengthen market leadership and achieve profitable growth.

According to the current mid-range plan, the focus of the Systems
Division is on improving profitability while maintaining global market lead-
ership, with target sales for 2022 of CHF 340 million and an EBIT margin of
0% to 5%. The achieved sales figure was higher in the years 2017 to 2021,
and at 5.7% in 2021, the EBIT margin exceeded the upper value of the target
corridor. In addition, the presence in the various market segments is to be
diversified more broadly and new applications are to be launched.

The Services Division aims to increase its sales to CHF 360 million
including Arkos Field Services by 2022, but will probably not quite reach
the specified sales figure. A target corridor of 20% to 25% has been defined
for the EBIT margin, which has been consistently achieved in recent years.
The growth priorities in the service business are the steadily increasing in-
stalled base of own equipment as well as the service business for compres-
sors from other manufacturers, primarily from manufacturers that have
left the market. To this end, Burckhardt Compression will take further op-
erational initiatives such as the implementation of global processes, the
further expansion of the local and regional presence as well as the devel-
opment of service structures for the marine business.

As stated in the letter to shareholders, Burckhardt Compression ex-
pects sales to grow to between CHF 720 million and CHF 760 million for
the current fiscal year 2022, thus exceeding the target set in the mid-range
plan. The operating margin for fiscal year 2022 is expected to be similar
to the prior year and thus within the expected range of 10% to 15%. This is
assuming that global challenges in the supply chain and geopolitical de-
velopments will not significantly impact the business activity levels going
forward.

50%

Sustainable energy and natural gas
applications already account for about
50% of our overall sales.

GROWTH SUPPORTED BY MEGATRENDS
Population growth and energy transition
Burckhardt Compression’s strength in selected applications make it very
well placed to support the world’s population growth and to meet the en-
ergy transition challenges.

With the global population rising, demand for industrial gases for ap-
plications such as fertilizers, medical usage and food and beverage pack-
aging will continue to grow. Demand for natural gas as a fuel for mobility,
heating, and cooking is also rising due to the growing middle class world-
wide. Global demand for petrochemical and chemical products and indus-
trial gases also continues to rise, driven by the growth in global GDP and
the sharp increase in demand for solar panels. And in this area of applica-
tion, sustainability aspects, such as recycling or the use of alternative raw
materials, are becoming increasingly important. Hydrogen is growing fast
for applications in the mobility and energy sectors. In addition, ever-strict-
er environmental regulations for the shipping industry are resulting in new,
innovative engine solutions, such as the dual-fuel engine for which Burck-
hardt Compression has developed a unique compressor solution.

Solutions and services for sustainable energies and natural gas ap-

plications already account for about half of Group sales.

Digitalization
Burckhardt Compression has successfully advanced the development of
digital products for its customers. The collection and evaluation of data
on oscillation, vibration and temperature, combined with the expertise at
Burckhardt Compression, leads to increased efficiency and availability of
the compressors. Any anomalies are calculated down to fractions of a sec-
ond and operators are informed immediately. Comparison of our data with
other similar compressors enables us to predict service work that may be
required.

Burckhardt CompressionAnnual Report 2021Our Strategy

Under the name UP! Solutions, we offer digital products that provide added
value to the customer. One of these is UP! Remote Support, where a Burck-
hardt Compression expert provides real-time support to customers via Ho-
loLens – augmented reality glasses – or via their tablet, all ATEX-certified
for potentially explosive situations. The experts direct local maintenance
crews and issue precise instructions for each subsequent stage in the pro-
cess. Expert knowledge is therefore available at all times and in all places.
Burckhardt Compression works with exceptional partners to ensure
that we continue to offer leading solutions, such as Microsoft, which pro-
vides Microsoft Dynamics 365 remote assist for UP! Remote Support, and
PTC, which provides Vuforia – the perfect link between the physical and
digital world for use in augmented reality solutions.

STRICT BRANDING
Burckhardt Compression constantly strives to optimize and strengthen its
established brand internationally. Our corporate identity and long-term
brand strategy express the organization’s values and principles, and high-
light Burckhardt Compression’s position as unique, long-term and global
partner with a strong Swiss tradition. The umbrella brand, and its corre-
sponding logo in the form of the red-blue stylized compressor valve plate,
has been internationally registered for many years.

When making an acquisition, Burckhardt Compression decides at the
start of the integration process whether a brand is to be retained or inte-
grated into an existing house brand.

As part of excellent know-how, Burckhardt
Compression also offers state-of-the-art
digital solutions. They were developed in
collaboration with innovation leaders such
as Microsoft and PTC.

Burckhardt Compression Group brands:
– Shenyang Yuanda Compression, one of the largest manufacturers of
reciprocating compressors in China, whose products are sold in its
domestic market

– BCS Compressor, products made by Shenyang Yuanda Compressor for
export markets that leverage Burckhardt Compression’s global sales
network, processes, and service organization

– Arkos Field Services, our exclusive services provider in the US
– Prognost, the world leader in compressor monitoring and diagnostic

systems

– SAMR, a leading manufacturer of sliding bearings based in France
– Mark van Schaick, repair and service expertise in Europe for the mari-

time and petrochemical industries

– Digital applications and solutions are presented under the internation-

ally registered name “Up! Solutions”

Burckhardt Compression’s brand and patent attorneys will vigorously and
steadfastly defend the company against any imitations, counterfeiting or
patent infringements. Clear rules govern use of the brands and their per-
ception is developed and promoted through active use in corporate and
marketing communication.

Burckhardt CompressionAnnual Report 2021Systems Division

Systems
Division

Order intake
in CHF mn

Sales
in CHF mn

Gross profit
in CHF mn

651.1

372.7

71.3

8
2
4

4
0
4

.
1
6
3

9
1
3

4
8
3

5
7
3

8
8
3

9
0
4

1
.
9
5

2
4

0
3

2
.
7
2

7
1

8
1

9
1

0
2

1
2

7
1

8
1

9
1

0
2

1
2

7
1

8
1

9
1

0
2

1
2

Operating income
(EBIT)
in CHF mn

21.1

6
1

9
1

0
2

1
2

9
–

7
1

7
.
8
–

8
1

in CHF mn

Order intake

Sales

Gross profit

in % of sales

EBIT

in % of sales

Headcount at end of fiscal year (full-time equivalents)

2021

651.1

372.7

71.3

19.1%

21.1

5.7%

1’518

2020

404.6

409.8

59.1

14.4%

16.2

3.9%

1’429

Change
2021/2020

60.9%

–9.1%

20.7%

30.4%

6.2%

Burckhardt CompressionAnnual Report 2021

Post-COVID recovery and
global transition towards
more sustainable and secure
energy sources resulted in
an exceptionally high order
intake growth.

+61%

Systems Division

Burckhardt CompressionAnnual Report 2021Gas gathering and processing
After the drop seen in fiscal year 2020, the market gradually recovered in
the reporting period. However, despite rising prices for crude oil and natu-
ral gas, new investment remained at a low level.

Gas transport and storage
In the first half of the year, this segment benefited from a surge in demand
in the LPGM market. The LNG marine segment also recorded growing
demand, both in the transport of gases and for LNG-powered ships. Several
orders for LNG terminals were received, especially in China.

Refinery
Demand recovered in 2021, driven by various capacity expansion projects
and bio-fuel projects in North America and Europe.

Chemical and petrochemical industry
This area of application saw significant activity due to large LDPE/EVA pro-
jects for solar panel plants in China.

Industrial gas
The various user industries are developing in line with our expectations,
matching the increase in global GDP. In the reporting period, Shenyang
Yuanda Compressor benefited from the booming market for polysilicon in
China, the main raw material in the production of solar cells.

H2 mobility and energy
Recently, and particularly in the reporting period, investments in the hydro-
gen economy have been strongly increasing in the hydrogen economy has
been strongly increasing due to efforts to reduce CO2 emissions and secure
additional energy sources. One particular order concerned compressors
for the world’s largest hydrogen liquefaction plant in Korea. We entered
into a partnership with Shell New Energies to develop oil-free high-pres-
sure hydrogen compressors. It still represents only a small portion of the
total market, but the long-term potential is undoubtedly huge.

Systems Division

The strong order intake growth is due to the markets’ generally rapid re-
covery from the pandemic since the beginning of 2021, combined with the
accelerated global energy transition. This growth was particularly strong
in solar panel applications (LDPE/EVA and polysilicon) in China, marine
business in LPGM/LNGM applications, and in the H2 mobility and energy
market.

After a strong first half-year, order intake of the Systems Division increased
significantly once again in the second half of the year, reaching CHF
651.1 mn for the year (+60.9%). This amount is including an exceptionally
high number of large orders received for LDPE, EVA and polysilicon appli-
cations, ending up in a total amount of around CHF 150 million order intake.
The invoicing of these projects will be spread over the next two fiscal years.
Sales of CHF 372.7 mn was 9.1% below the previous year figure, due to the
corona-related weak order intake in the first half of 2020. Gross profit was
up 20.7% to CHF 71.3 mn, resulting in a gross profit margin of 19.1% (previ-
ous year: 14.4%), which was supported to a large extent by a more favora-
ble product mix and a higher capacity utilization. Price increase in certain
material categories were compensated by procurement savings in others
and by strong performance in project execution. Thanks to a strong second
half-year, the division significantly improved its EBIT margin to 5.7% (previ-
ous year: 3.9%) despite the lower sales volume.

MARKETS
Burckhardt Compression offers compressor system solutions in the fol-
lowing application areas:
– Gas gathering and processing
– Gas transport and storage, incl. marine
– Refinery
– Petrochemical/chemical industry
– Industrial gas
– H2 mobility and energy

Burckhardt Compression maintained its strong market position in the re-
porting period.

Burckhardt Compression signed a Memo-
randum of Understanding with HRS,
a European designer and manufacturer of
hydrogen refueling stations and pioneer
in hydrogen mobility to contribute to
the energy transition with reliable and
economical compression solutions
to scale up the hydrogen infrastructure.

Burckhardt CompressionAnnual Report 2021OUTLOOK
In the gas gathering and processing market, the rise in prices for crude
oil and natural gas, combined with potential shifts in the geographi-
cal focus of production, could stimulate investment in USA and in the
Gulf region. In the gas transport and storage market, the global need to
secure energy sources and the trend towards environmentally friendly
energy is resulting in a strong demand of LNG as fuel. Increased efforts
to provide sustainable energy will compel the refinery segment to press
ahead with the development of biofuels. As far as the petrochemical/
chemical industry is concerned, Burckhardt Compression expects to re-
ceive a steady level of orders in the next fiscal year. In the fiscal year 2022
onwards, however, the industrial gas market is expected to remain strong
due to new polysilicon plants in China. Finally, the H2 mobility and energy
market, in which Burckhardt Compression recorded significant progress
in the reporting period, is expected to become a significant sales pillar for
the company in the medium term due to global environmental and energy
policy targets.

Systems Division

10’000

The Laby®-GI Compressor type LP250
is the world’s first oil-free reciprocat-
ing high-pressure fuel gas compressor
in service. The compressor system is
installed on a LNG carrier and reached
10’000 hours of uninterrupted opera-
tion.

SALES ORGANIZATION
In the course of the reporting period, the Systems Division consolidated
its sales structure by merging the North-East and South-East Asia regions
into a single larger East Asia region. At the same time, we strengthened
Korea as a regional hub for both sales and project execution. In the area of
H2 mobility and energy, we expanded our sales capacity in Europe, the US
and Korea.

INFRASTRUCTURE AND CAPACITY
In Winterthur, Burckhardt Compression has invested substantially in logis-
tics, including a new high-bay warehouse, in order to optimize processes
and eliminate external storage areas. Investment in our manufacturing
workshop is also ongoing to build lean manufacturing cells and accelerate
production throughput. The higher level of orders also required an increase
of personnel, with the focus on China, India and Switzerland.

RESEARCH AND DEVELOPMENT
Development activities focused on three areas: technology for the com-
pression of hydrogen as an energy carrier, new products for the supply of
gas-powered ships and portfolio optimization for applications in the pet-
rochemical industry. The newer markets of gas-powered ships and energy
supply using hydrogen both require new, standardized products, including
the control and monitoring of compressors. In the reporting period, we de-
veloped the first products that meet these requirements.

Burckhardt CompressionAnnual Report 2021Services Division

Services
Division

Order intake
in CHF mn

Sales
in CHF mn

Gross profit
in CHF mn

325.5

278.0

119.6

1
.

2
7
2

1
.
6
4
2

7
.
0
3
2

5
0
2

.
1
4
2

8
4
2

3
2
2

0
1
2

5
0
1

0
.
7
0
1

1
.
7
0
1

9
.
7
9

Operating income
(EBIT)
in CHF mn

58.4

8
5

4
5

7
.
4
5

.
1
5

7
1

8
1

9
1

0
2

1
2

7
1

8
1

9
1

0
2

1
2

7
1

8
1

9
1

0
2

1
2

7
1

8
1

9
1

0
2

1
2

in CHF mn

Order intake

Sales

Gross profit

in % of sales

EBIT

in % of sales

Headcount at end of fiscal year (full-time equivalents)

2021

325.5

278.0

119.6

43.0%

58.4

21.0%

1’198

2020

272.1

248.8

107.1

43.0%

51.2

20.6%

1’095

Change
2021/2020

19.6%

11.8%

11.6%

13.9%

9.4%

Burckhardt CompressionAnnual Report 2021

The Services Division succee-
ded in significantly increasing
order intake in fiscal year 2021,
primarily in Engineering/Re-
vamp/Repair and Spare Parts.

+20%

Services Division

Burckhardt CompressionAnnual Report 2021Services Division

In the reporting period, the Services Division used its strength as a full ser-
vice provider to increase its level of incoming orders by 19.6% in a positive
market environment. Sales rose by 13%. The EBIT margin rose again thanks
to higher sales and resulted in a slightly higher EBIT margin. As part of the
current mid-range plan for 2018 to 2022, we have implemented redefined
business processes, intensified our marine business, set up our technical
Support Center and expanded our global sales training.

Orders received by the Services Division rose by 19.6% to CHF 325.5 mn,
which is a strong performance given the fact that the previous year includ-
ed a long-term marine service contract over a period of ten years in the low
double-digit million Euro range. Sales increased by 11.8% to CHF 278.0 mn.
Gross profit grew by CHF 12.5 mn to CHF 119.6 mn, resulting in a gross prof-
it margin of 43.0%, unchanged from the previous year. EBIT rose by CHF
7.1 mn to CHF 58.4 mn thanks to higher sales and resulted in a slightly high-
er EBIT margin of 21.0% (previous year 20.6%). Arkos Field Services (USA)
was profitable, and the integration of the acquired Mark van Schaick BV
business in the Netherlands is well underway.

MARKETS
Burckhardt Compression offers services in the following application areas,
certified to ISO 9001, 14001, and 45001:
– Preventive maintenance
– Spare parts for compressor systems
– Overhauls and repairs
– Project solutions for modernizations and plant improvements
– Problem diagnoses and troubleshooting
– Solutions for plant monitoring (Prognost)

In the reporting period, Burckhardt Compression expanded and strength-
ened its market position. Demand for spare parts and services increased,
particularly in China, Europe, and the US. In the marine segment, we car-
ried out several dry dock overhauls, including the first 5-year overhaul of
a Laby®-GI for Teekay LNG. Demand for complete solutions for overhauls
(turnarounds) rose in Europe and the Middle East, and these were com-

After five years in service, an LNG
carrier was scheduled for dry-dock in
Singapore, but with just three weeks’
notice, the location was changed to
Dubai. Burckhardt Compression quickly
redeployed its maintenance team and
logistics to ensure both boil-off gas (BOG)
compressors were serviced within the
18-day window.

Annual Report 2021

Burckhardt Compression

pleted safely and to schedule for our customers. We entered into strategic
partnerships with KB-Delta and SERO PumpSystems, and long-term col-
laborations with leading compression systems operators on land and on
the seas.

Spare Parts
Growth in the spare parts business continued in the reporting period, both
for our compressors and for those of third-party suppliers. Burckhardt
Compression also benefited from the trend for spare parts to be required in
conjunction with services. The targeted expansion of the third-party prod-
ucts business is generating an increasing proportion of sales.

Engineering/Revamp/Repair
This segment saw increased activity, with significant orders received from
Germany, Norway, China, Singapore, Taiwan and central Asian countries.
Thanks to the relaxation of coronavirus restrictions, we were able to make
better use of our capacity. It is encouraging to see the continuing trend for
long-term service contracts, helping to strengthen and stabilize the busi-
ness, and the requirement for complex engineering solutions for complete
on-site overhauls (turnaround projects). The repair business in our Service
Centers worldwide will also benefit from the recently completed standard-
ization of repair processes across the Group.

Field Service
The release of corona-related measures allowed an increase of capacity
utilization. In the US, Arkos Field Service is growing and has been profitable.

Monitoring and diagnostics
In addition to reciprocating compressors, PROGNOST diagnostic systems
were also used in gearbox applications during the year under review. For
example, after an intensive 18-month test phase in competition with other
suppliers, the first PROGNOST predictor systems for monitoring and diag-
nosing gearboxes on hot roll mills were ordered from an American steel
mill.

In general, our solutions are more needed to switch to remote moni-

toring and also to condition-based service.

SALES AND SERVICE ORGANIZATION
Demand in the market for complete solutions instead of individual servic-
es, as well as for on-site service capabilities, was strong in 2021. Burck-
hardt Compression is meeting this requirement with an ongoing expansion
of its regional sales structures and continuous process improvements. The
highly qualified local Field Service Representatives and Repair Centers are
responsible both for customer care and for evaluating local market op-
portunities. The partnership model introduced two years ago has proven
highly effective. It aims to offer service capabilities close to customers,
particularly in small but fast-growing markets, while limiting the invest-
ment required. Regional and global Engineering Services offer substantial
support for local service provision, allowing Burckhardt Compression to be
a strong service partner in all geographies.

Services Division

Burckhardt Compression acquired
Mark van Schaick BV, based in Rotter-
dam, Netherlands. The company has
more than 20 years of experience in
machining and is a leader in servicing
complex repairs such as crankshafts.

In the reporting period, the division conducted a customer satisfaction
survey and received approximately 800 responses. Almost 90% of re-
spondents stated that they are satisfied with our service, almost 80% see
Burckhardt Compression as the leading service provider on the market,
and slightly more than 60% associate us with services for all compres -
sor brands.

INFRASTRUCTURE AND CAPACITY
The official opening of a new site in Indonesia had to be postponed once
again due to the coronavirus. We added new service partners in Vietnam,
Hungary and Brunei.

ACQUISITIONS
Burckhardt Compression’s acquisition in December 2021 of Mark van Scha-
ick BV, based in Rotterdam in the Netherlands, expands its repair and ser-
vice capabilities in Europe. The company is a leading provider of mainte-
nance and complex repair services – including crankshafts – for customers
in various industries.

The integration of The Japan Steel Works – the acquired global
compressor company – was concluded in the first half of the year. The in-
tegration of Arkos Field Services, including structural and organizational
changes that will lead to greater profitability, is on track.

RESEARCH AND DEVELOPMENT
UP! Solutions, launched in the reporting period, offers customers addition-
al online monitoring and support options. The service package includes re-
mote digital support (UP! Remote Support), where a technician diagnoses

the problem, proposes solutions and offers technical support. We made
our first Remote Support sales shortly after it was launched. An additional
package uses machine learning and artificial intelligence to increase the
productivity and uptime of the compressor through proactive maintenance
and optimized service cycles. It is currently under test with pilot custom-
ers. The new online customer portal myFleet has also proven a success, en-
abling customers to order spare parts and book additional services online.

OUTLOOK
The underlying attractive growth prospects for the Service business re-
main unchanged:
– More and more customers are outsourcing their service operations.

Suppliers are increasingly becoming service partners. Thus, long-term
service agreements are becoming more important.

– The portfolio of installed compressor systems from Burckhardt

Compression continues to grow.

– Customers are seeking efficiency gains to increase their competitive-
ness. This requires retrofitting and conversions, not least driven by
the need to comply with environmental regulations (efficiency improve-
ments and emissions reduction).

– Maintenance of equipment using the latest digital capabilities is be-

coming more important. This reveals a trend to move from preventive
to condition-based maintenance.

Demand for comprehensive services from a single source will therefore
grow more strongly than the direct spare parts business. Customers in-
creasingly expect engineering solutions, competent advice on site and tai-
lor- made maintenance strategies.

Our focus areas for organic growth are our consistently increasing
portfolio of installed equipment and the service business for compressors
from other manufacturers, primarily those that have left the market. To
further support the growth regions, Burckhardt Compression will focus on
expansion of local and regional service expertise and increasingly on digi-
tal solutions.

The numerous LNG ships commissioned in recent years will all re-
quire servicing and spare parts, resulting in additional business potential
for Burckhardt Compression. The most interesting potential lies in the pro-
vision of long-term service agreements tailored to the whole compressor
life cycle. Geographically, the best growth opportunities are in the Asia-Pa-
cific region, but also in North America and Europe thanks to the large num-
ber of marine customers domiciled there. In North America, Burckhardt
Compression will benefit from the expansion in service activities brought
by the integration of Arkos.

Annual Report 2021

Burckhardt Compression

Sustainability Report

Sustainability
in practice

“Through our activities, we want to make
a real and measurable contribution to the
global energy transition and thus create
long-term value – for the environment, for
society and for our company.”

Fabrice Billard
CEO as of April 1, 2022

Online AR
report.burckhardtcompression.com/
sustainability-report

Annual Report 2021

Burckhardt Compression

Sustainability Report

OUR COMMITMENT TO
SUSTAINABLE VALUE CREATION

Burckhardt Compression is an industrial tech-
nology company specializing in reciprocating
compression solutions for all types of gases.
With a company history stretching back over
178 years and products with a useful life to
more than half a century, we base our business
decisions on a long-term perspective. And we
approach sustainability with the same mindset:
pragmatic, focused on the long-term, creating
value and impact driven.

→

Burckhardt CompressionAnnual Report 2021Sustainability Report

Story #1

Creating impacts
where they matter

In order to use limited resources in a tar-
geted way, sustainability must be impact-
driven and relevant. That is why we work
closely with our customers and develop ro-
bust solutions to tackle their challenges.

The savings potential that
we can unlock together
with our customers exceeds
our direct impact in
operations many times over.

Our compressors are used mostly in upscaled
industrial and energy supply processes. Hence
the main environmental impact is in the use
phase for our customers. With our technology
and engineering expertise, we help our custom-
ers reduce energy consumption, greenhouse gas
emissions and resource use.

Online AR
report.burckhardtcompression.com/
creating-impacts

EXISTING COMPRESSOR
ADAPTED TO NEW PROCESS
This past fiscal year we worked with a leading
European oil and gas company to resize the ca-
pacity of a compressor to reflect new process
requirements. The customer needed a solution
that required a reduction in gas flow of more
than 50%.

We started by conducting a detailed in-
spection along with a technical analysis. From
this, we developed our solution to overhaul the
existing compressor and adapt it to the new
specifications. The right sizing of a compressor
has a particularly significant effect on efficient
energy use. This meant the customer did not
have to purchase a new compressor or resort to
the bypass system, enabling it to make optimal
use of the existing resources.

Burckhardt CompressionAnnual Report 2021EXAMPLE CONTRIBUTIONS
TO THE SUSTAINABLE
DEVELOPMENT GOALS
SDGs

SDG 7
Enabling energy savings of 1’800 MWh
per year through the resizing of an
existing compressor system.

SDG 13
Reduction of CO2 emissions
resulting from energy savings.

SDG 12
Reuse and upgrade of a
compressor system.

CONSIDERABLE ENERGY
SAVINGS ACHIEVED
The fully revamped compressor is as good as
new, thanks to our overhaul of all major compo-
nents and upgrade to high-performance compo-
nents. This has enabled us to successfully tran-
sition the compressor to the next lifetime.

Our customer will be able to save about
1’800 megawatt hours of electricity per year,
thanks to the modified process.

Considerable energy savings enabled

1’800 MWh

per year is equivalent to:

Annual electricity
consumption of
>500 average Swiss
households.

Approximately a third of the
annual electricity consumption
in 2021 of our Winterthur site,
including head office.

Sustainability ReportBurckhardt CompressionAnnual Report 2021Story #2

Innovating to tackle
the energy transition

Compressors have been instrumental in impor-
tant developmental advances in the industry.
At Burckhardt Compression, we believe that
technology and innovation are crucial to meet
the sustainability challenge.

Since we were established
more than 178 years ago,
we have set new benchmarks
and pushed boundaries to
find solutions for both today
and tomorrow. We are cur-
rently focusing our minds and
developing new technologies
for LNG transport as well as
hydrogen mobility and energy.

Online AR
report.burckhardtcompression.com/
energy-transition

Sustainability ReportBurckhardt CompressionAnnual Report 2021Bridging technology
paving the way to
sustainable shipping

Burckhardt Compression’s Laby®-GI fuel gas
compressors play a crucial role in the current
transition of the shipping industry. The com-
pressors enable liquefied natural gas (LNG) to be
used as a fuel instead of the more carbon-inten-
sive and sulfur-rich heavy fuel oil. This provides
a short and medium-term interim fuel to meet
the more stringent international environmen-
tal requirements until zero-emission solutions
are developed. Greenhouse gas emissions are
reduced by up to 25% compared with heavy fuel
oil, thanks to use of gas as a fuel and modern
ship design.

→

Sustainability ReportBurckhardt CompressionAnnual Report 2021Our Laby®-GI Compres-
sor is the world’s only
completely oil-free and
leakage-free high-pres-
sure reciprocating
compressor for the use
of gas as a fuel in the
shipping industry.

However, for LNG to serve as an interim form of
fuel in shipping, efficient and in particular leak-
age-free use is crucial. All Laby®-GI compressors
are gas-tight, thus preventing gas emissions into
the atmosphere. We are also the only manufac-
turer capable of compressing gas to 300 bar by
means of a large ring-seal compressor system
without cylinder lubrication. Oil-free compres-
sion of the gas renders oil separation and filtra-
tion of the gas superfluous and saves up to 1’200
liters of lubricant per year.

EXAMPLE CONTRIBUTIONS
TO THE SUSTAINABLE
DEVELOPMENT GOALS
SDGs

SDG 13
Reduction of greenhouse gas
emissions through the non-leaking
use of LNG as a fuel in shipping
instead of heavy fuel oil.

SDG 12
Responsible use of resources
through operation without cylinder
lubricants.

– 1’200 l

Oil-free compression of the gas
renders oil separation and filtration
of the gas superfluous and saves
up to 1’200 liters of lubricant per year.

Sustainability ReportBurckhardt CompressionAnnual Report 2021Another step toward efficient use of
hydrogen in the energy transition

Successful energy transition depends on a wide
range of technologies for the production and
storage of renewable energy. Hydrogen has the
potential in this context to be an essential step-
ping stone in the energy transition in specific
fields of application, such as heavy-duty trans-
port, and as a complement to existing technol-
ogy, such as battery-powered electromobility.
The use of hydrogen is not new to Burckhardt
Compression; we have decades of experience in
the compression of this gas. However, in order to
be used on a broad and efficient scale as part of
the energy transition, new requirements for the
compression of this gas must be met.

We are working intensively on the further
development of our compressor solutions and in
this fiscal year we were able to launch an oil-free
compressor with a discharge pressure of 550
bar and high capacity. The large high-pressure
reciprocating compressors have been specifi-
cally developed for use in a variety of hydrogen
applications and are particularly suitable for hy-
drogen trailer filling and hydrogen fuel stations
with high capacity. These compressor solutions
have been designed for mass flows in excess of
150 kg/h and help to reduce the number of com-
pressors required.

With our new seals for
oil-free high-pressure
reciprocating compres-
sors, we are able to
support the forthcom-
ing volume upscaling
in the various hydro-
gen applications in a
cost-efficient way.

550
bar

In this fiscal year we were
able to launch an oil-free
compressor with a discharge
pressure of 550 bar and high
mass flows.

EXAMPLE CONTRIBUTIONS
TO THE SUSTAINABLE
DEVELOPMENT GOALS
SDGs

SDG 13/SDG 7
Development and promotion
of technologies for the energy
transition.

Sustainability ReportBurckhardt CompressionAnnual Report 2021SUSTAINABILITY
REPORT 2021

Our sustainability roadmap follows an impact driven
approach, is focused on material topics and has a firmly
anchored governance.

Burckhardt Compression materiality matrix

Material topics

Operational topics

Other topics

Sales & project
implementation
practices

Economic
contribution

Intellectual
property & access
to knowledge

Forced labor/
child labor

e
c
n
a
v
e
l
e
r
r
e
d
l
o
h
e
k
a
t
S

Energy use &
efficiency

Greenhouse gas emissions &
climate change

Business
conduct

Working
conditions

Occupational health
& safety

Environmental impacts of
application purpose

Longevity & cyclability

Resource/
material efficiency

Product safety

Diversity, inclusion &
equal opportunity

Data security & privacy

Training &
development

Waste &
hazardous
substances

Conflict &
security

Non-greenhouse gas
air emissions

Biodiversity

Land degradation

Political
accountability

Corporate citizenship &
community impacts

Water &
wastewater

Tax contribution
& allocation

Social impacts of
application purpose

Noise, vibration, odor &
electromagnetic radiation

Land rights/indigenous rights

Asset & process integrity

Impacts on society, environment and economy

Sustainability ReportBurckhardt CompressionAnnual Report 2021
OUR IMPACT-DRIVEN APPROACH
We aspire to create sustainable values with our products and services by in-
corporating economic, environmental and social aspects in equal measure
into our activities.

We have a long track record of implementing high standards in terms
of working conditions, employment relations, environmental manage-
ment, health and safety at work and our durable and repairable products.
This is a comprehensive commitment that we continue to expand.

Focus on eight material topics
We used a materiality analysis to determine where our company’s activ-
ities have the greatest impact on society, the environment and the econ-
omy, and which topics are relevant to our stakeholders. For this purpose,

we conducted an impact analysis, where we assessed actual and potential
positive and negative impacts of our activities along the value chain. The
aspects of scale, scope and likelihood of impacts were taken into account
as assessment categories. In addition, we gathered the views and concerns
of our key stakeholders – investors, customers, employees and suppliers –
online and in person. This materiality matrix provides guidance and focus
for the further integration of our sustainability efforts into business activi-
ties. It will be reviewed at regular intervals and adjusted if required.

The topics located in the top-right of the matrix were identified by
us as material. For each of the eight material topics, we have appointed a
topic leader, who together with subject matter experts will further develop
our approach.

Material topics

value chain impacts

supply
chain

own
operations

use/
end-of-life

1. Greenhouse gas emissions &

climate change

Impacts on climate change, including greenhouse gas emissions along the
value chain, and mitigation of climate change risks.

2. Energy use & efficiency

Energy consumption, efficiency and sources for the production, provision
and operation of Burckhardt Compression’s products and services.

3. Longevity & cyclability

Fostering a long lifecycle and the circularity of materials and products
in Burckhardt Compression’s business activities, including maintenance and
repair services.

4. Environmental impacts of

application purpose

Environmental impacts of the use case of Burckhardt Compression’s
products and services, including the contribution to a sustainable energy
transition.

5. Working conditions

Employment terms including working hours, compensation, and labor-
management relations as well as the satisfaction of employees with those
terms.

6. Occupational
health & safety

7. Product safety

Maintaining and promoting a safe and healthy working environment for work-
ers involved in the production and provision of Burckhardt Compression’s
products and services.

Maintaining and promoting the safe and healthy operation of Burckhardt
Compression products and maintained products of other brands.

8. Business conduct

Ensuring and promoting that Burckhardt Compression’s business
activities are conducted in compliance with regulations, standards and
ethical principles.

t
n
e
m
n
o
r
i
v
n
E

y
t
e
i
c
o
S

y
m
o
n
o
c
E

Sustainability ReportBurckhardt CompressionAnnual Report 2021We have also identified several “operational topics”. These are important to
us as well, but we will not pursue them with the same strategic approach
as the material topics. They will be integrated into the operational busi-
ness activities at the departmental level. The “other topics” may be of
greater relevance for a specific subsidiary, but not across the whole Group.
We address these topics on a situation-specific basis.

Strategic focus on the UN Sustainable Development Goals (SDGs)
Burckhardt Compression is committed to supporting the Sustainable
Development Goals (SDGs) as defined by the United Nations. These SDGs
address the world’s most pressing sustainability challenges and are to be
achieved as part of Agenda 2030 for Sustainable Development.

Our strategic approach to sustainability is based on our eight mate-
rial topics and is aligned with the SDGs mentioned above. We have stated
five sustainability ambitions, each linked to a strategic SDG and directly
related to our material topics:
– Safeguarding human health (SDG 3: Good health and well-being)
– Promoting prosperous work (SDG 8: Decent work and economic growth)
– Tackling climate change (SDG 13: Climate action)
– Driving energy transition (SDG 7: Affordable and clean energy)
– Valuing natural resources (SDG 12: Responsible consumption and

production)

We have also identified six additional SDGs to which we can make a con-
tribution.

Overarching due diligence on human rights and international
environmental standards
The focus on our material topics and sustainability ambitions includes an
overarching due diligence approach. We acknowledge the responsibility to
respect internationally recognized human rights and international envi-
ronmental standards. We incorporate the precautionary principle into our
activities and decision making, such as the consideration of environmental
requirements in product design, the consideration of human rights in our
supply chain and the assurance of safe product operation at our customers’
sites.

Supply chain management plays a key role in this. Burckhardt Com-
pression uses its suppliers’ experience to continuously improve its prod-
ucts, because an important part of the value creation is provided by them.
We source raw materials for the foundry in Shenyang, China, raw materials
and semi-finished products for the manufacture of compressors in our fac-
tories and components and other accessories to complete and maintain
the compressor systems on-site. For this, we have an established global
supply chain, with core suppliers for production located in the wider re-
gional area.

Strategic sustainability framework

Tackling
climate change

Promoting
prosperous work

Driving energy
transition

ational health & safet y

p
u
c
c
O

ct
y
u
t
d
e
o
f
a
r
P
s

W orkin
co n ditio

G H G emissions
& climate
change

i n e ss conduct

Sustainability Roadmap

Safeguarding
human health

Environmental im

pacts of a

Energ
effi cie

y u

s
e

t
i

Valuing
natural resources

Sustainability ReportBurckhardt CompressionAnnual Report 2021

Through our recently devised Code of Conduct for business partners, we
set the same high standards for suppliers as we do within our company, and
we also include them in our environmental and quality policy. We conduct
checks on-site or when goods arrive to ensure observance of specifications
and verify it by reviewing the required audit reports. In addition, we adopt-
ed a policy on conflict minerals in the reporting period. In the future, we
will work even more closely with our suppliers on joint solutions for the
energy transition and increase transparency relating to raw materials in
our supply chain.

Ongoing development of our sustainability approach
Over the reporting period, we made significant progress in systematically
integrating sustainability into our business. We have enhanced manage-
ment approaches for our material topics in cross-functional teams and
defined key performance indicators, which are presented for the first time
in this Sustainability Report. This report has been prepared in accordance
with the GRI Standards: Core option. It is the first comprehensive Sustain-
ability Report by the Burckhardt Compression Group prepared in line with
international standards.

Enhancement of our sustainability performance is a long-term com-
mitment, and we intend to and will harness more potential. In the next fis-
cal year, we will build specifically on the successes and findings from this
year. We will in particular optimize data collection and define targets for
the material topics under the new mid-range plan 2023–2027. In doing this,
we want to ensure that the sustainability strategy is an integral part of our
business strategy.

OUR MATERIAL TOPICS
1. GREENHOUSE GAS EMISSIONS AND CLIMATE CHANGE

The bulk of the emissions associated with our business activities arises in
the use phase of our compressors, due to their long lifetime of 30–50 years.
Other emissions occur in our operating facilities, where we have the most
direct influence, and in logistics and the materials used.

Our approach
Burckhardt Compression endeavors to reduce the company’s carbon foot-
print and optimize emissions during the use phase of the compressors. In
an initial phase, we focus on three key areas:
– Reduction of the company’s carbon footprint
– Evaluation and optimization of the impact of our inbound and outbound

logistics

– Improvement of the carbon footprint of compressors

Our climate policy is the basis for all our activities related to climate
change and part of our wider environmental policy. Our environmental
management system, certified in accordance with ISO 14001, is the most
important instrument in reduction of our environmental footprint. Each
subsidiary takes responsibility for reducing its own greenhouse gas emis-
sions and sets relevant targets. Our sites in India and Switzerland, for ex-
ample, have set long-term reduction targets as part of industry initiatives
or government agreements.

Reduction of greenhouse gas emissions during the use-phase of our
compressor systems is an integral part of our product and innovation man-
agement and our service offer.

Progress in fiscal year 2021
For the first time, we consolidated environmental data at Group level to
calculate direct (Scope 1) and energy-related indirect (Scope 2) greenhouse
gas emissions.

To evaluate emissions in inbound and outbound logistics, we have
prepared a data collection for the coming fiscal year. In addition, we calcu-
lated the product emissions of different compressors over their entire life
cycle in order to put our emissions in an overall context.

Topic lead: President Systems Division

Tackling climate change is one of the most pressing global challenges.
The potential consequences of climate change are grave, in some cases
irreversible, and affect individuals, organizations and countries alike. The
Paris Agreement of 2015 is a legally binding international treaty between
states on climate change. It recognizes the need to limit global warming to
below 2°C above pre-industrial levels, preferably as low as 1.5°C. To achieve
this global goal, immediate and decisive action is required at all levels to
reduce greenhouse gas emissions worldwide.

Burckhardt Compression recognizes its responsibility and the poten-
tial to reduce its greenhouse gas emissions across the entire value chain.
Our activities and technology make an increasing contribution to combat-
ing climate change and to supporting Sustainable Development Goal 13:
Climate action.

Sustainability ReportBurckhardt CompressionAnnual Report 2021On an operational level, we were able to continue with various projects to
reduce our emissions. The measures implemented locally relate in par-
ticular to the reduction of electricity consumption and the increase in the
proportion of renewable energies. For example, Burckhardt Compression’s
electricity consumption in Switzerland was converted to 100% renewable
energies in the reporting period. Burckhardt Compression India was able
to significantly reduce Scope 1 and Scope 2 emissions through a compre-
hensive energy audit. At our foundry in Shenyang, China, we successfully
completed the conversion from coal-fired to electric furnaces.

Greenhouse gas emissions also play a vital role in our continued
product development and collaboration with our customers. We see high
potential for avoidance of gas leakage, particularly where greenhouse
gases are compressed. With this in mind, we launched a research and de-
velopment project in the reporting period to evaluate various approaches
for comprehensive emissions management of existing compressors. In ad-
dition, we have invested heavily in digitalization and are one of the pioneers
in our industry. Solutions such as UP! Solutions Remote Support contribute
to a reduction of greenhouse gas emissions through decreased travel by
service technicians.

Our performance
The absolute greenhouse gas emissions for Scope 1 and Scope 2 are 15’280
tonnes of CO2 equivalents (CO2e). Scope 1 emissions have decreased in
recent years, while Scope 2 emissions have increased, mainly due to the
switch from coal-fired to electric furnaces at the Shenyang Yuanda foundry,
while casting production has increased significantly.

Chosen compressor supplier for renewable diesel
production plant
Burckhardt Compression has been chosen as a partner
for a clean, renewable diesel production plant in
northern Europe. The project aims to upgrade an existing
plant for the production of clean, renewable diesel
based on different raw materials. The plant upgrade
ensures co-processing of 40% renewable feedstock
and is designed to be expanded to 100% renewable feed-
stock in the future.

Greenhouse gas emissions
in tons of CO2e

15’280

5
1
8
2
1

’

1
4
4
7

’

4
8
1
’
8

9
7
8
3

’

9
1

1
9
3
3

’

0
2

5
6
4
2

’

1
2

Scope 2

Scope 1

Greenhouse gas emissions
intensity Scope 1 and 2
Tons of CO2e/1’000 working hours

2.8

9
1

0
2

1
2

Greenhouse gas emissions
business travel
Tons of CO2

1’360

976
38
44
302

Airplane

Train

Bus

Car

9
1

0
2

1
2

Sustainability ReportBurckhardt CompressionAnnual Report 2021Business travel forms only a small part of Burckhardt Compression’s oth-
er indirect greenhouse gas emissions (Scope 3), but can be directly influ-
enced. Compared with the previous year, the number of business trips has
increased again slightly, but is still significantly below the level of 2019. By
strengthening our digital infrastructure, we will reduce travel frequency in
the medium term.

H2 diaphragm compressor for Hungarian project
for green hydrogen
The Hungarian government has announced it will support
various projects to convert surplus electricity into
gas energy. One of the successful tenders is the “Aqua-
marine” project, which includes a hydrogen plant in
an underground gas storage facility operated by Hungar-
ian Gas Storage Ltd. The produced hydrogen is mixed
into natural gas and utilized in their own gas engines and
furnaces, therefore reducing CO2 emissions.

A top priority in our efforts to tackle climate change is to reduce carbon
emissions generated from business operations. However, over the entire
life cycle of a compressor, other potential arises where we can achieve a
much higher impact. In fiscal year 2020, Burckhardt Compression India
calculated the emissions of a compressor over its entire life cycle for the
first time. In this fiscal year, we added three more compressors to the cal-
culation to better understand our Scope 3 emissions. The results show very
clearly that emissions during the use phase account for by far the greatest
proportion. This is attributable to the high power range of our compressors,
their long lifetime and their uninterrupted operation.

Outlook for fiscal year 2022
With the fundamental findings from this year, we will begin the next stage
of developing a road map for the long-term reduction of greenhouse gas
emissions in line with the Paris Agreement. We also plan to extend the
greenhouse gas inventory to further Scope 3 categories.

Another focus is on a joint reduction of greenhouse gas emissions

with our customers.

Greenhouse gas emissions of various compressors over the entire life cycle
in %

Process Gas Compressor 2B1Y
life cycle 20 years

Materials: 0.0764%

Transport: 0.0251%

Production: 0.0306%

Use phase: 99.8678%

End-of-life: 0.0001%

Diaphragm Compressor MD10
life cycle 20 years

Materials: 0.7802%

Transport: 0.0850%

Production: 0.3620%

Use phase: 98.7718%

End-of-life: 0.0010%

Laby®-GI Compressor 5LP250-V
life cycle 30 years

Materials: 0.0751%

Transport: 0.0114%

Production: 0.0086%

Use phase: 99.9047%

End-of-life: 0.0002%

Hyper Compressor K8
life cycle 30 years

Materials: 0.0381%

Transport: 0.0129%

Production: 0.0010%

Use phase: 99.9479%

End-of-life: 0.0001%

Sustainability ReportBurckhardt CompressionAnnual Report 20212. ENERGY USE AND EFFICIENCY

Topic lead: Vice President Compressor Engineering & Manufacturing

The development of society depends on the conversion, use, storage and
transmission of power. Reliable and affordable access to power is a basic
need. However, the extensive demand for energy is also tied to significant
environmental impacts. The use, efficiency and type of energy therefore
assume a special significance for sustainable development, combined with
far-reaching social, economic and environmental implications.

As an industrial technology company specializing in the compression
of all types of gases, Burckhardt Compression occupies a key position in
the energy system. Our activities require a significant amount of energy
in the manufacturing process and even more in the operation of our com-
pressors. Our technology is also used to provide, transmit and store energy.
This means Burckhardt Compression has significant potential to support
the energy transition and thus support Sustainable Development Goal 7:
Affordable and clean energy

The biggest impact of our activities is in the use phase of our prod-

ucts.

Our approach
Burckhardt Compression endeavors to reduce energy demand, promote
renewable energies and contribute to the energy transition through its
technology. The focus is on:
– Energy use, energy efficiency and energy quality, including renewable

energy in our operations.

– Use and efficiency of energy in the operation of our products at custom-

ers’ sites throughout the use phase.

Our environmental policy and ISO 14001-certified environmental manage-
ment system form the basis of all activities related to energy consump-
tion in our value chain. Each subsidiary takes responsibility for reducing its
greenhouse gas emissions and sets relevant targets.

Our Winterthur site, for example, is in the process of implementing a
multi-year project to save energy in production operations and offices. As
another example, the factory in Pune has won the GreenCo Star Performer
Award several times. GreenCo is an initiative created by the Confederation
of Indian Industry (CII). GreenCo’s rating system takes a holistic approach
to measurement of the results of corporate environmental initiatives.

The energy use and efficiency of our compressor systems forms an
integral part of our product and innovation management. Through our
comprehensive services, we improve the energy requirements of our own
and third-party compressor systems throughout their entire life cycle.

Progress in fiscal year 2021
In the reporting period, Burckhardt Compression continued it’s measures
to reduce energy consumption in different sites. In India, for example, we
achieved energy savings of more than 95’000 kWh in 2021 for the local site
by conducting an energy-saving audit and carrying out several specific pro-
jects. In addition, for the first time we have undertaken a global consolida-
tion of the energy consumption of all subsidiaries, an important basis for
the planned corporate target setting.

We are increasingly turning to renewable energy sources in our op-
erations. In the reporting period, the subsidiary in Italy and the facility and
head quarters in Switzerland managed to switch their electricity supply
over entirely to renewable energy sources.

In terms of products, we have developed and approved for sale the
next, more energy-efficient generation of Laby®-GI compressors. It fea-
tures significantly improved energy efficiency compared with previous ver-
sions. In the service segment, we have stepped up our approach to energy
saving through revamps and upgrades.

New-generation Laby®-GI compressors for LNG ships
The latest generation of Laby®-GI compressors, type
5LP250-V, marks another milestone in the further evolu-
tion of our products. This version features in particular
a significantly improved energy efficiency compared
with previous versions. We obtain a 5% higher quantity
of compressed gas with an average of 5% (50 kW) lower
power requirement. Assuming an annual operating time
of 4’000 hours, this means recurring savings of 200 MWh
per compressor.

Sustainability ReportBurckhardt CompressionAnnual Report 2021Our performance
Compared with the previous year, our energy consumption has increased in
absolute terms by 9.9% and our energy intensity by 8.0%. Most part of the
increased energy demand is due to the switch from coal-fired to electric
furnaces and the increased production at the Shenyang Yuanda foundry.

We increased the Group-wide proportion of renewable electricity
compared with the previous year thanks to the conversions in Switzerland
and Italy. Nevertheless, much scope for progress still remains.

With product improvements and services, we managed to reduce our
customers’ energy consumption in the reporting period. We currently eval-
uate a limited number of projects for energy savings and will present these
transparently in the future.

Outlook for fiscal year 2022
In the current fiscal year 2022, we will set out a road map to increase the
share of renewable electricity across the Group. In addition, we are plan-
ning short- and long-term targets at Group level to increase electricity
efficiency in our operations. Local energy-saving measures at operational
level will continue as planned. For example, our factory in Pune, India, is in
the process of applying for “Platinum” status under the GreenCo initiative.
We will set targets based on newly defined key performance indica-
tors and initial data collected on compressor energy consumption and put
in place regular data collection. This will allow us to improve and report
on our offering and the impact of energy consumption savings through our
service activities in the future.

3. LONGEVITY AND CYCLABILITY

Energy consumption
in MWh

42’581

7
7
0
8
3

’

3
3
7
8
3

’

9
1

0
2

1
2

Energy intensity
MWh/1’000 working hours

7.9

3
.
7

Topic lead: President Services Division

A large number of natural resources are finite, and the extraction of raw
materials is frequently associated with significant environmental and
social consequences. It is thus essential to keep raw materials for longer
in the use phase and to close loops in order to be able to use materials
repeatedly.

Our compressors are made mainly of iron and steel, materials that
are easily recyclable. They are relatively material-intensive to manufac-
ture due to the physical demands of the high pressures involved. However,
with their lifetime life of 30-50 years, our compressors are also very du-
rable. More than half of active compressors equipped with a Burckhardt
Compression serial number have been in service for more than 20 years,
the oldest for 92 years. We secure this long lifetime through the services
we provide for our own compressors and those from other manufacturers.

9
1

0
2

1
2

Share of renewable electricity
in %

Renewable

Other

Sustainability ReportBurckhardt CompressionAnnual Report 2021In the manufacture and servicing of compressors, we have a significant
amount of scope to contribute to a circular economy and support Sustain-
able Development Goal 12: Responsible consumption and production.

Significant impacts result from the raw materials used for our com-
pressors, the replacement of components during the use phase and the use
of operating materials such as lubricant.

Our approach
Burckhardt Compression fosters long life cycles and the circularity of
materials in its products and services. Our holistic approach centers on five
aspects:
– Longevity of new products through technology, engineering, easy

maintenance and optimized wear parts

– Longer life cycles of existing compressor systems through retrofitting,

overhauling and longer maintenance intervals

– Repairing of components and compressors
– Use of recycled materials, in compliance with material requirements

and standards

– Recyclability of our products

To foster longevity, we use our in-depth technical knowledge to develop
reliable, long-lasting and high-performance compressor solutions. With
innovations such as our Persisto® materials and Redura® sealing systems,
we achieve maximum performance for efficient, reliable and long-lasting
operation. To achieve our long product lifetime of 30–50 years, we offer a
full range of reliable services and durable compressor components devel-
oped in-house.

By reconditioning equipment, we support the short recycling loop
with a comprehensive range of revamp and upgrade services, as well as our
refurbish programs for entire compressor systems. We also repair and re-

Overhaul of a hyper crankcase in a polyethylene unit
After 180’000 operating hours, equal to more than 20
years of standard operation, a low-density polyethylene
(LDPE) manufacturer discovered hard scuffing damage
on the contact surfaces between the hyper compres-
sor crankcase and the distance pieces. Working to an
extremely tight deadline, Burckhardt Compression
successfully overhauled the compressor and put it
back into operation. The movement and vibration of the
distance pieces and cylinders were significantly reduced,
extending the lifetime of the plunger, packing and elastic
rod. In addition, oil leakage between the crankcase and
the distance pieces was minimized.

furbish compressor components, such as valves, using our global network
of service centers.

Progress in fiscal year 2021
One focus in the reporting period was the advancement of our long-term
approach to condition-based maintenance of compressors. The long-term
goal actually represents a paradigm shift in compressor maintenance:
moving away from standardized replacement plans based on the operat-
ing cycle to predictive maintenance based on the actual condition of the
compressor. In addition to improving quality and efficiency, our data-based
approach extends the lifetime of the equipment and individual parts.

Operating hours in comparison

LABY® Compressor 3K160

Passenger car

Weight:

Operating hours:

8’000
per year

When our specialists
carry out the first
service, an average pas-
senger car has already
quit service a long time
ago.

Weight:

1.5t

Operating hours:

5’000 total*

* Assumption: 300’000 km with

60 km/h

Sustainability ReportBurckhardt CompressionAnnual Report 2021Our performance
Repair instead of replacement is a key component in the circular econo-
my. We thus recorded the portion of reused or refurbished components in
service activities for selected key parts for the first time in fiscal year 2021.
The data demonstrates our contribution to the circular economy through
our services; for example, for valves the share of refurbished components
is 81% in all service interventions.

Outlook for fiscal year 2022
We will continue our condition-based maintenance initiative in the current
fiscal year 2022. This undertaking will continue until 2025 and, along with
our digital offering, will be one of the main themes in the Services division.
Another focus will be to enhance our extensive service activities with
an emphasis on revamping, upgrading and reprocessing manufacturing
compressor systems in order to extend their operational life. In doing so,
we want to be able to better measure and manage the impact of our service
performance on lifetime and the circular economy in particular.

4. ENVIRONMENTAL IMPACTS OF APPLICATION PURPOSE

Topic lead: Vice President Sales Systems Division

Our core competence is mastering gas compression technologies for a
wide range of gases. Gas plays a crucial role in the process industry and the
energy supply. The range of applications is very broad, from conventional
energy supply to industrial gases to renewable energy systems. A signifi-
cant part of the indirect environmental impact of our business activities
depends on to the application purpose.

Through innovative solutions in the development of new compressor
systems and components as well as customized services, we can support
our customers to drive the transformation to a sustainable economy. We
have the potential to contribute to three of our strategic Sustainable De-
velopment Goals (7, 12 and 13). The main impacts of this topic are related to
the use-phase of our products and services.

Proportion of reused or refurbished components in
service work in 2021 for selected key components.
in %

Valve

Crank gear

Cylinder

Hyper
components

81%

100%=26’422

59%

100%=227

51%

100%=1’223

69%

100%=1’680

100% = Total components recycled or newly manufactured by Burckhardt
Compression for service activities.

Through the acquisition of Rotterdam-based company Mark von Schaick
BV in the reporting period, we significantly expanded our capability for
complex repairs of main parts, such as crankshafts.

We also looked more closely at recyclability and analyzed the ma-
terials used throughout the product range. The predominant proportion
by weight relates to ferrous materials, such as steel and cast iron. They
account for an average share of more than 95% and are highly recyclable,
with established markets available for this in most regions.

In addition, we carried out initial clarifications with our suppliers
as to how much of the input materials used come from recycled sourc-
es. This revealed a mixed picture, depending on the recycling maturity of
the respective regional markets. In Europe, our suppliers can rely on an
established recycling market, which explains why the proportion of recy-
cled materials tends to be higher than in Asian supply chains. Our plant in
Switzerland profits from this in particular, with a predominantly regional
supply chain.

Emergency repair of a 50-year-old nitrogen compressor
A leading stainless steel products manufacturer based
in Italy contacted Burckhardt Compression after sudden
and extreme vibration caused the 50-year-old dry
compressor to come to an unexpected standstill. Our
root cause analysis found that the compressor was still
technically sound, but cracks in the foundation and dam-
aged anchor bolts were causing the malfunction. Thanks
to our prompt intervention, the base was repaired on site
and the compressor was put back into operation within
the client’s tight schedule, ready for the coming years of
operation.

Sustainability ReportBurckhardt CompressionAnnual Report 2021Compressor for a new green hydrogen production plant
in Switzerland
Burckhardt Compression received an order for a Dia-
phragm Compressor for a green hydrogen production
plant in Switzerland. The compressor system is designed
for hydrogen mobility applications and capable of
discharging hydrogen at a high pressure and high purity,
suitable for fuel cells.

Our Approach
Burckhardt Compression is committed to the long-term alignment of its
business activities with a sustainable economic system. We identified four
positive impact areas:
– Climate change mitigation
– Energy transition
– Circular economy
– Environmental pollution prevention

We are expanding the areas of application for our customers and support-
ing the transition to a sustainable economy through our continuous innova-
tion in compressor systems, materials, components, and services.

Marine applications: Liquified natural gas represent a short and me-
dium-term bridge fuel for marine applications to comply with tightening
international regulations on greenhouse gas emissions until zero-emis-
sions solutions are developed. Modern ship designs are introducing gas
as fuel instead of carbon-intensive and high-sulfur content heavy fuel oil
helping to reduce greenhouse gas emissions by up to 25%. Burckhardt
Compression Laby® and Laby®-GI fuel gas compressors play an essential
role in the current transition of the shipping industry. The large portfolio
available and the flexible compressor concepts can provide fuel gas to
all types of modern dual-fuel engines. All applied compressor types are
of gastight design, allowing fuel gas compression up to 300 bar with zero
emissions to the environment.

Hydrogen distribution and fueling applications: We are supporting the
development of hydrogen mobility by developing a range of compressors,
including diaphragm and reciprocating compressors that meet the specific
technical challenges of these new applications. Examples are the innova-
tive materials and ring geometries which enable process gas compressors
to be operated without oil lubricants for hydrogen trailer filling and in fue-
ling applications for hydrogen-powered trains, trucks, or buses, with pres-
sures of up to 550 bar. The technological advantages of reciprocating com-
pressors for this application are unrivaled efficiency and long service lives.
Hydrodesulfurization: Process gas compressors per API 618 are used

specifically in industrial processes for the desulfurization of fuels.

Progress in fiscal year 2021
During the reporting period, we developed a sustainability screening ap-
proach to better structure our business activities from an environmental
impact perspective. This classification system makes use of internation-
al standards such as the EU taxonomy for sustainable activities or South
Korea’s K-Taxonomy, without claiming to fulfil these sometimes complex,
technical implementation requirements. The main purpose of this screen-
ing system is to serve as a high-level compass for the targeted further
development of our business activities towards a sustainable economy.
As we are in the market for capital goods, this transformation towards a
sustainable economy is taking place over the long-term.

At the business level, we have continued to expand our activities that
contribute to a sustainable economy. We were able to achieve a strong
growth in H2 Mobility & Energy and to help the industry solve specific com-
pressor related technical challenges. This is not least due to our increased
R&D and the strengthening of our business development resources for
these markets. Examples for the success are:
– We entered a partnership with Shell Renewables and Energy Solutions
for the development of heavy-duty hydrogen refueling station com-
pressor systems. Burckhardt Compression is building a new test facility
in Winterthur, Switzerland, dedicated to the advancement of sealing
technologies and solutions for hydrogen refueling stations serving
heavy-duty vehicles.

– Burckhardt Compression has signed a contract with Jiangsu Hongjing

New Material Company Ltd. to equip three production lines for EVA (eth-
ylene-vinyl acetate copolymers) and LDPE (low-density polyethylene)
with three Booster-Primary and three Hyper Compressors. Specifical-
ly, the three 200 kilotons per year photovoltaic class ethylene-vinyl
acetate copolymers plants will help to satisfy the worldwide demand
for EVA polymer, which, shaped as a film, is used in solar panels as an
insulating and sealing agent around the solar cells.

Sustainability ReportBurckhardt CompressionAnnual Report 20215. WORKING CONDITIONS

Topic lead: Chief Human Resources Officer

Jobs with decent working conditions are a basic premise for the develop-
ment of individuals and society. They drive prosperity and provide a live-
lihood for people. Our employees are central to our success, and we are
proud of our global and diverse workforce. As an industrial technology
company with production sites and service centers worldwide, we employ
a broad range of skilled personnel.

With our engagement in providing good working conditions, we con-
tribute to the targets of the Sustainable Development Goal 8: Decent work
and economic growth. We believe our most direct impact concerns the
working conditions of our more than 2’700 employees around the world.
In addition, we recognize our responsibility to exercise due diligence in the
review of working conditions in our supply chain.

Our approach
Burckhardt Compression is committed to upholding fundamental interna-
tional labor standards and strives to provide conditions that overall exceed
the local industry average. To achieve this, we focus on three areas:
– Dialog and relations
– Terms and compensation
– Organizational culture

The impacts on employees from suppliers, contractors and outsourced
activities are managed mainly through our responsible procurement ap-
proach.

Our Performance
We have applied our sustainability screening approach on new projects in
part of the Systems Division as a pilot, representing 52% of the total order
intake:
– We classified around 9% of the total order intake as new energy applica-
tions. Examples are green hydrogen projects in H2 Mobility & Energy or
projects for the solar panel industry.

– Around 10% of the total order intake is classified as being transitional

with environmental advantages but not yet fully sustainable. Examples
are Industrial Gas applications, biogas applications in Refinery, dual
fuel LNG applications in Gas Transport & Storage and grey hydrogen
projects in H₂ Mobility & Energy.

– Around 33% of total order intake is classified as conventional applica-
tions. Examples are conventional petrochemical application without
a clear link to a sustainability use-case or the traditional refinery
business.

– 48% of the total order intake has not yet been classified.

Outlook for fiscal year 2022
In the coming fiscal year, we will continue our development of innovative
non-lube, high-pressure and high-flow hydrogen compressor systems to
meet the specific technical challenges along the hydrogen value chain and
enable the conversion of heavy-duty transport towards clean energy solu-
tions. Equally, we will continue to strengthen our compressor solutions for
LNG carriers and LNG fueled ships to support the short-term replacement
of marine heavy fuel by natural gas as a propulsion fuel.

We will make use of our evaluation system for business activities as a
compass for allocating our resources towards a sustainable economy in a
mid- to long-term. A roll-out is planned to also include key business activ-
ities from the Services Division and the remaining business activities from
the Systems Division. In doing so, we will further align our approach with
the external developments such as the EU taxonomy.

Compressor supplier for a hydrogen liquefaction plant
in South Korea.
The order includes three Process Gas Compressor API 618
systems for the compression of hydrogen within the
liquefaction process. The new installation in South Korea
is the largest hydrogen liquefier plant worldwide. It is
part of the country’s strategy to remain a global leader in
the development of hydrogen as clean energy. It will be
able to produce up to 90 tons of liquefied hydrogen per
day. The liquefaction plant is planned to start production
in 2023.

Sustainability ReportBurckhardt CompressionAnnual Report 2021Dialog and relations:
We acknowledge and support freedom of association as set out in our Code
of Conduct. Open dialog with employees is a central priority for Burck-
hardt Compression and is fostered in various ways. In addition to employ-
ee surveys and continuous exchange with line managers, employees are
informed online several times a year in person by members of the Execu-
tive Management about the state of the business and other matters, with
questions answered. Furthermore, we maintain several harmonized digital
and office-based platforms for regular exchange of information with our
employees. Our online platform and mobile application “BC Connect” is an
exchange platform accessible to all employees and allows them to receive,
comment on and write messages. Other dialog tools are used at local level
in the form of collective bargaining and employee representation. 63% of
Burckhardt Compression’s employees worldwide are covered by a collec-
tive agreement.

Terms and compensation:
Burckhardt Compression offers attractive terms and conditions of employ-
ment adapted to prevailing requirements on an ongoing basis. We bench-
mark our salaries against external salary surveys conducted by Willis Tow-
ers Watson and have an ongoing monitoring system in place to eliminate
significant salary differences between equivalent jobs. We have greatly
expanded our flexibility in terms of staff working from home and have en-
hanced our infrastructure to enable our employees to work comfortably
from any location.

Organizational culture:
We are convinced that our well-established corporate culture forms the
foundation of our competitiveness. The reputation that Burckhardt Com-
pression enjoys and the mutual trust that exists within the Group depend
mainly on the integrity and conduct of each and every employee. A com-
prehensive values program called “Values and Behaviors” ensures that
employees in all Group locations and companies share and actively uphold
the same corporate values and principles. The internal Code of Conduct is
designed to set fundamental standards and principles for how employees
should interact and behave toward partners, stakeholders and the environ-
ment. A global Speak Up channel operated by a third party is available to
report violations of our standards, values and behavioral guidelines.

Rating from employee survey
January 2020 and January 2022

Average points scored for the statement:
“All in all, I am satisfied with my current work situation”

0
Strongly disagree

100

Strongly agree

Average points scored for the statement:
“I would recommend Burckhardt Compression to others
as a good place to work”

0
Strongly disagree

100

Strongly agree

Average points scored for the statement:
“The top management provides information to employees
in a way they can understand”

0
Strongly disagree

100

Strongly agree

Average points scored for the statement:
“My work generally provides me with sufficient opportunities
to balance my work life and my private life”

0
Strongly disagree

100

Strongly agree

Average points scored for the statement:
“In our company employees are treated with respect,
no matter what job they perform”

0
Strongly disagree

100

Strongly agree

Sustainability ReportBurckhardt CompressionAnnual Report 2021Progress in fiscal year 2021
Burckhardt Compression continuously adapts its working conditions to
current requirements; for instance, in response to the pandemic in the
reporting period. We have further expanded our remote working concept
in line with the needs and wishes of our employees. The cooperation be-
tween employees and line managers working from home has functioned
impeccably. We are convinced that flexible working arrangements bring
many advantages, reinforce mutual trust and satisfy the wish of many em-
ployees for more personal responsibility and self-organization. This is why,
during the reporting period, Burckhardt Compression Switzerland added
extra options to its policy on remote working. At Group level, a related rec-
ommendation for further flexibility with regard to remote working options
was passed on to all subsidiaries, which implement this recommendation
tailored to the local conditions

During the reporting period, we conducted our biennial worldwide
employee survey. As in past years, the high participation rate of 90% was
very pleasing and reflects the high level of engagement of our staff. On a
positive note, overall employee satisfaction and engagement increased
compared with the last survey. Both ratings rank above the industry aver-
age, which marks Burckhardt Compression out as an attractive employer.
The results from this survey are systematically evaluated as a basis for
continuous improvement.

Our performance
The average score for the statement “All in all, I am satisfied with my cur-
rent work situation” rose to 77 out of a possible 100 points, an increase by
6 points compared with the last survey. This confirms our efforts to create
and continuously improve attractive working conditions. For the statement
“I would recommend Burckhardt Compression as a good place to work”, we
improved our rating by several points to 84. High levels of employee loyalty
and identification with the company are also confirmed by the fact that the
typical employee has been with the company for 8.4 years.

Employee turnover ratio
in % of yearly average of full time equivalent

Other

1.6

Involuntary

1.1

2019: 9.5
2020: 9.5
2021: 10.1

Voluntary

7.4

The employee turnover rate increased to 10.1% in the reporting period. This
figure includes all departures, including fixed-term employment contracts
that came to an end. Of this, 7.4 percentage points are accounted for by
voluntary departures, which is above the target figure of 5%.

Outlook for fiscal year 2022
In the coming fiscal year, we will continue to use the findings from the
employee survey to identify the most important areas in order to improve
employee satisfaction. Based on the findings, we will derive the specific
measures to be adopted locally in order to address the specific needs of our
employees in the different regions. We are also working on introducing a
global award program for exceptional team performance. This will reward
teams that have particularly excelled and contributed to the success of the
company through their performance.

6. OCCUPATIONAL HEALTH AND SAFETY

Among the most attractive employers in Switzerland
Burckhardt Compression ranks as one of the most
attractive Swiss employers in 2022. This ranking is based
on an independent survey of employees. This survey of
employees was carried out by data analyst Statista via
an online access panel, combined with input from the
readers of Handelszeitung and Le Temps. More than 1’500
employers with 200 or more employees in Switzerland
were identified for the survey. Burckhardt Compression
was placed an excellent 30th in the overall rankings,
up there with last year’s good result. Within its own
sector of mechanical and plant engineering, Burckhardt
Compression ranked fifth.

Topic lead: Vice President Quality & Infrastructure

Healthy and productive employees are the key to added value for our
customers. The protection of physical integrity and promotion of mental
well-being are therefore top priorities. By providing a safe working environ-
ment and promoting health, we can help achieve Sustainable Development
Goal 3: Good health and well-being, and also Sustainable Development
Goal 8: Decent work and economic growth. Our influence in this area ex-
tends to our own employees, to external employees in our workplaces and
to working conditions in supply chain companies.

Sustainability ReportBurckhardt CompressionAnnual Report 2021Our approach
We are committed to the prevention of accidents and work-related illness-
es and to the promotion of the mental well-being of employees and work-
ers whose work or workplace is under the control of Burckhardt Compres-
sion. We focus our approach on two components:
– Occupational health and safety system and prevention culture
– Mental health and well-being

The impact on employee health and safety in our supply chain is controlled
through the responsible procurement approach

Our occupational safety policy and management system certified in
line with ISO 45001 form the basis that governs all activities relating to
health and safety in the workplace. All Burckhardt Compression sites are
certified in accordance with ISO 45001, apart from the subsidiaries SAMR
Métal Rouge, Prognost and Arkos Field Service, all of which have their own
health and safety systems. Numerous measures ranging from detailed
risk assessments, safety inspections accompanied by management to
workplace safety training and mandatory wearing of protective footwear,
protective eyewear and other work-relevant protective equipment demon-
strate their effectiveness in a steadily reducing risk exposure. Creation of
a culture of prevention through raising awareness and involving employee
representatives in the safety committee at each site is an important part
of to our approach.

To promote physical and mental health, the Dr. BeWell program
was launched in 2019. Implemented locally, this includes a varied range of
physical exercises as well as preventative measures and special topics. The
program is just one of the ways in which Burckhardt is improving employee
satisfaction, health, and motivation is improved and reducing absences.

Progress in fiscal year 2021
We were able to successfully recertify our management system at Group
level in accordance with the new ISO 45001 standard during the reporting
period. We systematically incorporated the findings and advice of the local
certification bodies. These represent the basis for the ongoing improve-
ment of our management system in the years ahead.

This year, we successfully integrated our new subsidiary in Sweden

into the Group health and safety management system.

In January 2022, we carried out a global employee engagement sur-
vey, which included the topic of health and safety in the workplace. The
feedback is particularly valuable for further development of our manage-
ment system.

52
52

Annual Report 2021

Burckhardt Compression

Lost Time Injury Rate (LTIR)
Per 200’000 hours worked

1.1

.
1

7
0

9
1

0
2

1
2

Severity Rate (SR)
Lost days/recordable incidents

25.0

4
2

8
1

9
1

0
2

1
2

Lost Time Workday Rate (LTWR)
Per 200’000 hours worked

27.8

8
.
1
2

6
1

9
1

0
2

1
2

Sustainability ReportBurckhardt CompressionAnnual Report 2021We rigorously pursued our management approach to mitigate the effects
of the pandemic in the reporting period. We oriented the measures and im-
plementations to the local number of cases and hazard assessments. We
effectively countered the effects of the pandemic by implementing com-
prehensive protective measures at our sites, allowing working from home
as a precautionary measure and communicating effectively. Its highest
priority at all times has been to safeguard the health of its employees and
their families, as well as that of its customers and business partners.

Our performance
The Lost Time Workday Rate (LWTR) has increased from 16.4 to 27.8, due
to the highly increased workload in the factories and related new hires
and use of temporary personnel. We thoroughly analyze the cause of every
accident, both those with and those without loss of work days, and imple-
ment corrective measures. We are engaging in appropriate efforts at every
level; on the part of management, executives and the workforce. In the re-
porting period, we recorded no fatal accidents, mirroring the situation in
previous years.

In the employee survey, we were able to improve on the topic of

health and safety by 8 points compared to the last survey.

An important indicator for us concerning mental health and well-be-
ing is work-life balance, which is regularly surveyed as well. Compared with
the results of the past survey, we improved our score from 67 to 74 points.

Outlook for fiscal year 2022
One focus will be to continue to bolster our safety culture, which we will
achieve by continuing the campaign to raise awareness and provide infor-
mation at local level that was launched in fiscal year 2021.

A second focus will be on internal coordination and integration with-
in the Group. In fiscal year 2022, we will focus on the two locations Shen-
yang and Shanghai in China and on our companies Arkos and BCUS in the
US. The aim is to align local approaches and achieve continuous improve-
ment through shared learning experiences.

Program to raise health and safety awareness
In fiscal year 2021, we launched a broad awareness-rais-
ing program on the topic of occupational safety. Using
various media, including leaflets, videos and on-site
installations, we highlighted the most important sources
of danger. As a result, we were able to sharpen awareness
and in the long-term strengthen our safety culture at our
operating sites.

7. PRODUCT SAFETY

Topic lead: Vice President Contracting Systems Division

Compressors are a critical equipment in various applications in the process
industry and energy provision. System safety and reliability is one of the
most important areas of expertise in our business due to the high pres-
sures, continuous operation, integration in complex industrial processes
and the individual hazard potentials of the compressed gases. By ensuring
product safety, we make a contribution to Sustainable Development Goal
3: Good health and well-being. The main effects are in the use phase and
extend over the compressors’ decades of operation.

Our approach
Burckhardt Compression endeavors to ensure safe operation of compres-
sor systems in every phase of their life cycle. Our approach encompasses
five main areas of risk mitigation:
– International norms and standards

Where available, we use and follow international standards for the de-
velopment, production, commissioning and maintenance of compressor
systems. This includes the evaluation of safety risks and certification in
accordance with mandatory laws and standards.

– Simulation, calculation and testing

Our comprehensive knowledge of calculation and simulation allows
us to optimize the dimensioning of compressor systems. We also use
specific testing and inspection procedures to ensure safety and func-
tionality.

– Outstanding processes

Defined working principles, processes and our ISO 9001-certified quality
management system ensure our processes meet the strict require-
ments.

– Control systems and maintenance

Our compressor systems are fitted with a minimum protection system
that shuts down the system in the event of a critical disruption. Our
PROGNOST®-SILver system for monitoring and diagnosing the condition
of reciprocating compressors and our UP! solutions for long uptime and
maximum reliability are key tools in increasing operational reliability,
extending service intervals and preventing breakdowns.

– Documentation and training

To ensure the smooth operation of compressor systems, we produce a
specific set of operating documents for each system and also offer a
wide range of training modules available either online or at our training
centers.

Sustainability ReportBurckhardt CompressionAnnual Report 2021Rating from employee survey
January 2020 and January 2022

Points scored for the statement:
“My workplace is designed to prevent any harm to my health”

0
Strongly disagree

100

Strongly agree

Successful expansion of customer training in online
and hybrid formats
We offer a comprehensive training program to support
safe and appropriate operation of compressors. The
change to online and hybrid formats allowed us to com-
pensate for the cancellation of on-site training courses
caused by the pandemic and we are almost back to the
pre-pandemic level, with 35 customer training sessions.
The recently developed online training course for the
particularly safety-related use of oxygen gases enabled
us to double the training capacity for this module.

Progress in fiscal year 2021
During the reporting period, we began to establish new skill centers to
maintain and continually improve the high quality of our design standards
for new product lines across all our plants. In addition, we carried out a
comprehensive review of our internal product approval process. This de-
fined approval process is particularly important to both our global quality
commitment and product safety. It ensures that we meet the required in-
ternational standards and norms.

Our 8D report provides us with an industry-wide practical method
of checking problems with compressor systems. It uses an eight-stage
approach to evaluate a problem and determine lasting solutions. During
this reporting period, we revised and strengthened the collection and pro-
cessing of these reports. With this, we aim to strengthen the findings from
the cross-case analysis, which also concern quality and product improve-
ments, in addition to product safety.

We successfully completed an extensive test of our high-pressure
compressors for marine applications. The construction of the new test
facility in Winterthur for the further development of sealing technologies
and solutions for hydrogen filling stations at pressures up to 900 bar is also
forging ahead. In addition to technical feasibility, strict compliance with
extremely high safety standards and procedures plays a decisive role in the
successful operation of this new generation of compressors.

Our performance
As part of the approval process, 100% of the new product configurations
have been through a risk and design assessment that includes product
safety.

No incidents related to the product safety of our compressors were
registered over the reporting period. Similarly, no violations of regulations
or voluntary codes took place in relation to product safety.

Outlook for fiscal year 2022
Our focus for the coming period will be on the further implementation and
reinforcement of the process improvements started in 2021, in addition to
the continuous implementation of our approaches to risk minimization. In
the field of control systems, we have developed a strategy for a wider and
more proactive distribution of Burckhardt Compression compressor con-
trol systems, which we will put into practice. As part of our digitalization
initiatives, we will also initiate new approaches to taking our engineering
base, operational data evaluations for product improvements and custom-
er training to the next level.

8. BUSINESS CONDUCT

Topic lead: General Counsel

Unethical business practices have the potential to damage the economy
and society. They cause economic losses, promote social inequality and
undermine democratic processes. As a global business with a far-reaching
network of business partners, we are obliged to conduct our business eth-
ically, legally and in an environmentally and socially responsible manner.
Ensuring our business conduct is in accordance with legal and internation-
al standards is a fundamental precondition, as it is for other material sus-
tainability topics.

The number of compressors fitted with a Burckhardt Compression
control system is currently running at 29%. We are firmly convinced that
our solutions offer significant added value in terms of reliability and safety,
which is why we want to increase this percentage.

Our approach
Burckhardt Compression undertakes to carry out its business activities in
an ethical, legal and environmentally and socially responsible manner. We
expect every business partner with which we have a business relationship

Sustainability ReportBurckhardt CompressionAnnual Report 2021to conduct itself in a similar manner. We assess every aspect of our busi-
ness relationship and focus particularly on:
– No corruption
– Free competition
– Export compliance

Our Code of Conduct defines the fundamental standards and principles
for employee interaction and with partners, stakeholders and the environ-
ment. With the Code of Conduct for business partners, our suppliers, local
agents and partners commit to conduct their business in an ethical, legal
and environmentally and socially responsible manner. We train our em-
ployees in the fields of anti-corruption, compliance with free competition
and adherence to export controls. We have introduced audits of control
procedures to prevent corruption and anti-competitive practice.

Our Speak Up reporting system is a complaints channel operated
by an independent third party. It allows employees, business partners and
third parties that are aware of suspected misconduct to register it in the
reporting system. The system is designed to allow protection of the identi-
ty of the reporting party and comments to be made anonymously.

Progress in fiscal year 2021
We revised our Code of Conduct during the reporting period. It was for-
warded to every employee in the Group and is available on the website in
11 languages.

We also produced a new Code of Conduct for our business partners,
which includes instructions and explanations. This Code of Conduct has
been signed by suppliers and business partners representing more than
80% of our purchasing volume.

To further raise awareness of compliance with the law in the areas
of anti-corruption and free competition among the employees concerned,
a new training module was produced for these subject areas during the re-
porting period. In total, 385 employees who deal with these areas in their
work have successfully completed this module.

Speak Up was launched in the reporting period, and all employees
and business partners were informed that it had gone live. The system had
a successful launch, and this is reflected in the levels of activity in its first
year.

Our performance
A total of 16 suspected cases were recorded on the Speak Up reporting sys-
tem: 13 by employees and three by external business partners. All the cases
were processed and closed within the reporting period. One serious viola-
tion of our Code of Conduct was identified and in 11 further cases, measures
were put in place. The average processing time to the conclusion of the
investigation was 71 days.

No violations of competition law or instances of corruption connect-

ed to our business activities were identified during the reporting period.

Our existing processes and preliminary clarifications of export con-
trols have proven their worth. Twelve requests for clarification of export
regulations were forwarded to the appropriate authorities during the re-
porting period. Of these, eleven cases were approved, and one was rejected

16 Speak Up notifications

External

Internal

by the authorities. Six approved requests concerning Russia were subse-
quently cancelled due to changing legislation on March 4, 2022. No viola-
tions of export controls were identified.

Due to Russia’s war with Ukraine, the Board of Directors and the Ex-
ecutive Management have decided not to accept any new contracts from
or with Russia since mid March 2022. This applies to both the Systems
and Services Divisions. We do not have any subsidiaries in either Russia or
Ukraine. We will comply with the export control provisions and legal sanc-
tions applicable.

Outlook for fiscal year 2022
We are planning to further strengthen our review activities in order to com-
ply with export controls. A first step in this direction is the increased inclu-
sion of this topic in our internal audits. We are increasing awareness of the
need to observe our Code of Conduct through a range of measures, such as
training sessions and internal communication

OUR COMMITMENT
Firmly anchored sustainability governance
The very top of our organization is committed to sustainability. Responsi-
bilities are clearly defined at every level and closely linked to strategy. All
sustainability-related activities are supervised by the Board of Directors.
The Strategy and Sustainability Committee supports the CEO in develop-
ing corporate strategy and advises the Board of Directors on all matters
relating to strategy and sustainability.

All members of the Executive Management are also members of
the Sustainability Executive Team, which is responsible for the strategic
approach at Group level and compliance with our sustainability road map.
Every material topic is led by a member of senior management. These
managers form the sustainability steering group, which is responsible for
implementing the sustainability road map and defining the topic-specific
management approach.

Sustainability ReportBurckhardt CompressionAnnual Report 2021Recognition of good investor relations
Leading Swiss business newspaper Finanz und Wirtschaft
gives investor relations and transparency an A– rating (A
is the highest rating) and growth a B– rating. In the ranking
of annual reports conducted by HarbourClub and business
magazine Bilanz, Burckhardt Compression’s Annual Report
2020 came in at a good 47th (from a total of 238 companies)
in the “Value Reporting Print” category and 19th in the “Value
Reporting Online” category.

auspices of the Swiss Federal Office for Professional Education and Tech-
nology and the Swiss-Indian Chamber of Commerce to establish an appren-
ticeship system in India based on the Swiss model; the company is also a
corporate sponsor of the AZW Training Center in Winterthur for vocational
career pathways.

Burckhardt Compression has a fundamental belief that mixed teams
perform better. In the reporting period, women made up 20% of the Board
of Directors and 20% of Executive Management. Of the global workforce,
15.2% is female.

Dialog with our stakeholders
The appropriate involvement of our various stakeholders is extremely
important to Burckhardt Compression. We have identified four key stake-
holders within our sustainability management: customers, employees,
investors and suppliers. We are engaged in more detailed discussions with
them and actively involve them in identifying material topics. In addition,
we also maintain an open dialog with other stakeholder groups, such as the
media, the scientific community, associations, civil society and the state,
as required.

Customers
Burckhardt Compression seeks long-term customer relations. The long-
est-standing customer relationship dates back to 1885, when the compa-
ny supplied BASF in Ludwigshafen with one of the first compressors ever
built. Customer satisfaction is measured using various tools. The results
are evaluated as part of the management process with the divisional man-
agement teams, and actions are initiated and implemented in accordance
with the results. For example, customer surveys were carried out in the re-
porting period with a focus on the Services Division. Customer priorities in
the field of sustainability were climate, energy and occupational safety. All
three topics are key elements of our approach to sustainability.

Sustainability governance
at Burckhardt Compression

Board Strategy & Sustainablity Committee

Executive Sustainability Team
Executive Management + Corporate Communication

Sustainability Steering Group
Topic leaders

Implementation Support
Topic contributors

t
n
e
m
e
g
a
n
a
M
y
t
i
l
i
b
a
n
a
t
s
u
S

Implementation is supported by designated experts in the field and key
local individuals in the subsidiaries. They provide technical expertise and
ensure on-site implementation.

A designated sustainability manager leads and moderates the sus-
tainability-related activities at Group level and, as a technical expert, sup-
ports all functions and subsidiaries with implementation of the road map.

Our employees are the key to our success
Together we are successful and create sustainable value. Burckhardt
Compression is thus engaged in the advancement of all employees and a
diverse workforce and structure. They are a vital factor in the implementa-
tion of our sustainability ambitions.

We appreciate our employees’ expertise and promote knowledge
sharing. Personal training and development is part of the annual appraisal
and performance review process and is financially supported by the com-
pany. To ensure the ongoing development of technological expertise and
personal and managerial skills within the company, employees around
the world participate in internal technical, product and leadership train-
ing modules, which are conducted across the Group several times a year
through a range of programs. To provide even more support for the profes-
sional development of our employees, we are also planning to introduce
a new development process in 2022 to determine individual training pri-
orities.

We promote and support new talent at all levels and are committed
to the Swiss system of apprentice training. The company currently has 46
apprentices in Switzerland and 18 in India in eight occupations. Burckhardt
Compression is a founding member of the initiative launched under the

Sustainability ReportBurckhardt CompressionAnnual Report 2021
Investors
Burckhardt Compression maintains open and transparent dialog with its
investors and other interested parties. The aim of investor relations is to
accurately portray the company and its markets to enable a fair valuation
of Burckhardt Compression stock.

In recent years, the importance of ESG (Environment, Social, Govern-
ance) rating agencies have also increased significantly for our investors. We
have therefore incorporated the findings of the most important agencies
into the development of our sustainability approach. Important sustaina-
bility priorities for our investors include climate change, business conduct
and energy consumption. All three are covered in the material topics.

Employees
Open dialog with employees is a central priority for Burckhardt Compres-
sion and is carried out in different ways. The most important dialog chan-
nels are described in this report in the material topic working conditions.
The most important priorities for employees are health and safety at work,
working conditions and training and development. We actively deal with
the first two within our material topics. Training and development is a cen-
tral pillar of our HR management.

Suppliers
We work closely with suppliers in the development phase, with the aim of
long-term partnerships. Suppliers are qualified using a set process and
evaluated through the measurement of key performance indicators. Ex-
changes and performance review take place on a regular basis via on-site
visits, virtual meetings, audits or virtual inspections. Strategic procure-
ment is an integral part of Burckhardt Compression’s strategic manage-
ment cycle. We aim to provide further incentives for our suppliers with a
global award system in the categories of performance and sustainability in
the coming fiscal year. The central sustainability priorities for suppliers are
occupational health and safety, energy consumption, and business con-
duct. All three topics are key elements of our approach to sustainability.

EcoVadis silver medal award
Burckhardt Compression was awarded the EcoVadis
silver medal for sustainability management with its
place in the top 25% in the sector. EcoVadis is one of the
largest platforms for assessment of supplier sustain-
ability and is used by many Burckhardt Compression
customers.

Global workforce by gender
Employees (full-time equivalents)

2’732

9
7
3

2
4
2

’

6
1
9 4
7
3

6
1
3
2

’

8
5
1
’

female

male

9
1

0
2

1
2

Global workforce by region, 2021
in %

Americas

APAC

EMEA

2’732

Global workforce by age, 2021
in %

55+ years

45 – 54 years

2’732

<25 years

25 – 34 years

35 – 44 years

Sustainability ReportBurckhardt CompressionAnnual Report 2021Extended key figures

Environmental metrics 1
Energy use

Electricity
Fuels and combustibles 2

District heating

Energy intensity (energy use/working hours)
Greenhouse gas emissions Scope 1 3

Combustibles

Fuels

Others
Greenhouse gas emissions Scope 2 4, 5

Electricity

District heating

Greenhouse gas emission intensity
(Scope 1 and 2/working hours)

Greenhouse gas emission business travel
(Scope 3)
Water 6
Waste 6

MWh

MWh/1’000 working hours

tCO2e

tCO2e /
1’000 working hours

tCO2e

2021

2020

2019

42’581

27’180

9’861

5’541

7.9

2’465

1’243

994

228

12’815

11’869

946

2.8

1’361

83’810

2’805

38’733

18’917

11’681

8’135

7.3

3’391

2’373

793

225

8’184

6’796

1’389

2.2

1’211

91’218

2’606

38’077

18’137

13’114

6’827

6.8

3’879

2’578

1’133

168

7’441

6’276

1’166

2.0

3’429

121’803

2’408

1 With the exception of the key figures for water consumption and waste, the data relate to all sites of the Burckhardt Compression Group. The data collection for environmental data is performed
by calendar year. The greenhouse gas inventory was calculated according to the WRI/WBCSD Greenhouse Gas Protocol Standard. ’Operational control’ was selected as the consolidation approach.
2 From fossil sources.
3 Scope 1 includes all directly caused emissions (e.g. combustion of fuels, loss of refrigerants).
4 Scope 2 includes emissions caused with purchased energy (electricity, district heating).
5 Reported according to the market-based approach under the Greenhouse Gas Protocol Scope 2 standard. The location-based approach results in emissions of 13’278 tCO2e in 2021
(2020: 8’575 tCO2e, 2019: 7’801 tCO2e)
6 Data refer to the production and assembly sites of the Burckhardt Compression Group, including headquarter (Switzerland, India, China, South Korea, United States).

Employees

Number of employees

Permanent

Male/Female

EMEA

APAC

Americas

Temporary

Male/Female

EMEA

APAC

Americas

Full-time

Male/Female

Part-time

Male/Female

2021

2020

FTE

2’732

2’508

2’538

2’339

2’145/363

2’000/339

1’152

1’066

290

224

171/53

207

2’628

2’256/372

104

60/44

1’037

1’014

288

199

158/40

185

2’445

2’103/342

55/37

Sustainability ReportBurckhardt CompressionAnnual Report 2021FTE

451

FTE

451

382

171

121

208

172

FTE

266

FTE

266

230

106

2021

2020

% yearly average

17.1%

% end of year

16.5%

16.6%

50.2%

22.2%

13.7%

11.6%

11.4%

17.8%

13.5%

24.4%

FTE

149

FTE

149

119

% yearly average

5.8%

% end of year

5.9%

5.5%

7.8%

20.3%

6.9%

4.5%

4.9%

4.8%

7.3%

4.5%

6.6%

% yearly average

Headcount1

% yearly average1

10.1%

249

9.5%

% end of year

Headcount1

% end of year1

9.7%

9.9%

8.7%

19.1%

10.6%

9.9%

6.0%

11.1%

8.1%

8.3%

22.2%

249

214

101

9.6%

9.8%

8.8%

23.5%

9.8%

6.7%

6.9%

16.7%

9.2%

6.8%

22.8%

2021

2020

2019

1.1

25.0

27.8

0.7

24.0

16.4

1.2

18.4

21.8

New employee hires (% of yearly average)

New employee hires (% of end of year)

Male

Female

<25 years

25–34 years

35–44 years

45–54 years

54+ years

EMEA

APAC

Americas

Employee turnover (% of yearly average)

Employee turnover (% of end of year)

Male

Female

<25 years

25–34 years

35–44 years

45–54 years

54+ years

EMEA

APAC

Americas

1 Turnover data for 2020 is based on headcount.

Occupational health and safety 1
Lost Time Injury Rate (LTIR)2
Severity Rate (IR) 3
Lost Time Workday Rate (LTWR)4

1 The data collection for occupational health and safety data is performed by calendar year.
2 Rate per 200’000 working hours for number of recordable incidents with lost time > 1 working day.
3 Number of lost days/incidents subject to registration with loss > 1 working day.
4 Rate per 200’000 working hours for total of lost workdays.

Sustainability ReportBurckhardt CompressionAnnual Report 2021GRI content index

GRI standard

Disclosure

Page(s)

Further information
and omissions

Burckhardt Compression Holding AG

– GreenCo by CII Confederation of Indian Industry

– AZW Winterthur, Board
– CII Confederation of Indian Industry
– EFRC - European Forum for
Reciprocating Compressors

– ICAAMC - Compressor Applications and

Machinery Committee

– Joint Chamber of Commerce Switzerland –

CIS/Georgia

– SWISSMEM - Schweizer Maschinen-,

Elektro- und Metall-Industrie

– Swiss Mechatronics
– Swiss-American Chamber of Commerce
– Swiss-Chinese Chamber of Commerce
– Swiss-Indian Chamber of Commerce
– Switzerland Global Enterprise

GRI 101: Foundation 2016

GRI 102: General disclosures 2016

Organizational profile

GRI 102: General disclosures 2016

102-1 Name of the organization

102-2 Activities, brands, products and services

102-3 Location of headquarters

102-4 Location of operations

102-5 Ownership and legal form

102-6 Markets served

102-7 Scale of the organization

102-8 Information on employees and other
workers

102-9 Supply chain

102-10 Significant changes to the organization
and its supply chain

116–117

6, 11,
15–17

40–41

100–101

102-11 Precautionary approach or principle

40–41

102-12 External initiatives

102-13 Membership of associations and interest
groups

–

Strategy

GRI 102: General disclosures 2016

102-14 Statement from senior decision-maker

8–10

Ethics and integrity

GRI 102: General disclosures 2016

Governance

102-16 Values, principles,
standards and norms of behavior

GRI 102: General disclosures 2016

102-18 Governance structure

Stakeholder engagement

GRI 102: General disclosures 2016

102-40 List of stakeholder groups

102-41 Collective bargaining agreements

102-42 Identification and selection of
stakeholders

102-43 Approach to stakeholder engagement

102-44 Key topics and concerns raised

55–56,
66–79

56–57

39,
56–57

56–57

Sustainability ReportBurckhardt CompressionAnnual Report 2021GRI standard

Disclosure

Page(s)

Further information
and omissions

Reporting practice

GRI 102: General disclosures 2016

102-45 Entities included in the consolidated
financial statements

102-46 Defining report content and topic
boundaries

116–117

38–40

102-47 List of material topics

102-48 Restatements of information

102-49 Changes in reporting

102-50 Reporting period

102-51 Date of most recent report

102-52 Reporting cycle

102-53 Contact point for questions regarding
the report

102-54 Claims of reporting in accordance
with the GRI Standards

102-55 GRI content index

102-56 External assurance

–

60–64

–

01.04.2021 – 31.03.2022

01.06.2021

Yearly

sustainability@burckhardtcompression.com

This report has not been externally verified.

Sustainability ReportBurckhardt CompressionAnnual Report 2021GRI standard

Disclosure

Page(s)

Further information
and omissions

Material topics

Greenhouse gas emissions and
climate change

GRI 103: Management approach
2016

103-1 Explanation of the material topic and
its boundary

103-2 Management approach and its components

103-3 Evaluation of the management approach

GRI 305: Emissions 2016

305-1 Direct (Scope 1) GHG emissions

305-2 Energy indirect (Scope 2) GHG emissions

305-4 GHG emissions intensity

Energy use and efficiency

GRI 103: Management approach
2016

103-1 Explanation of the material topic and
its boundary

41–42

42–43

42, 58

103-2 Management approach and its components

44–45

GRI 302: Energy 2016

302-1 Energy consumption within the organization

103-3 Evaluation of the management approach

302-3 Energy intensity

Longevity and recyclability

GRI 103: Management approach
2016

103-1 Explanation of the material topic and
its boundary

103-2 Management approach and its components

103-3 Evaluation of the management approach

Own indicators

Reused or refurbished components

Environmental impacts of
application purpose

GRI 103: Management approach
2016

103-1 Explanation of the material topic and
its boundary

45, 58

45–46

46–47

103-2 Management approach and its components

47–48

Own indicators

Working conditions

103-3 Evaluation of the management approach

Sustainability evaluation of business activities

GRI 103: Management approach
2016

103-1 Explanation of the material topic and
its boundary

103-2 Management approach and its components

103-3 Evaluation of the management approach

GRI 401: Employment 2016

401-1 New employee hires and employee turnover

Own indicators

Occupational health and safety

Score satisfaction work situation

Score workplace recommendation

GRI 103: Management approach
2016

103-1 Explanation of the material topic and
its boundary

49–51

50–51

51, 59

103-2 Management approach and its components

51–52

103-3 Evaluation of the management approach

52–53,
59

Sustainability ReportBurckhardt CompressionAnnual Report 2021GRI standard

Disclosure

Page(s)

Further information
and omissions

GRI 403: Occupational Health and
Safety 2018

403-1 Occupational health and safety
management system

403-2 Hazard identification, risk assessment,
and incident investigation

403-3 Occupational health services

403-4 Worker participation, consultation,
and communication on occupational health
and safety

403-5 Worker training on occupational health
and safety

403-6 Promotion of worker health

–

b. All employees who are under the care and
control of Burckhardt Compression (including
external employees on our premises) are covered.

a. The EOHS team (Environment, Occupational
Health and Safety team), under the direction of
the Quality Team and Safety Officer, is respon-
sible for conducting risk assessments using risk
graphs. The risk assessment will be used for
training and awareness activities in the respective
work area. Safety inspections are used for risk
mitigation.
b. Notifications will be made using a dedicated
EOHS notification form.
c. A work stoppage procedure is in place to stop
work in the event of an unsafe situation.
d. There is a procedural policy for reporting near
misses, incidents, investigations, nonconformi-
ties, and corrective and preventive actions.

There is a company ambulance service at the site
in Winterthur, which is operated in conjunction
with surrounding companies.

A specific procedure for Consultation & Participa-
tion, Communication regulates the involvement
of employees. Involvement takes place at all
levels (steering committee, core team, execution
teams).

In addition to mandatory training during
induction, regular specific training is provided on
work-related hazards, first aid, and emergency
and evacuation.

Non-occupational services and offerings depend
on country-specific implementation and may
include the following:
– regular health check-ups
– access to medical facilities
– other preventive measures, for example as part

of our Dr. BeWell program

403-7 Prevention and mitigation of occupational
health and safety impacts directly linked by
business relationships

40–41

This aspect is covered in our approach to due
diligence.

403-8 Workers covered by an occupational health
and safety management system

i. 100% are covered by an occupational health and
safety management system.
ii. 100% of employees are covered by an internally
audited system.
iii. 89.8% are covered by an externally certified
system.

Sustainability ReportBurckhardt CompressionAnnual Report 2021GRI standard

Disclosure

Page(s)

Further information
and omissions

Product safety

GRI 103: Management approach
2016

103-1 Explanation of the material topic and
its boundary

103-2 Management approach and its components

53–54

GRI 416: Customer Health
and Safety 2016

103-3 Evaluation of the management approach

416-1 Assessment of the health and safety im-
pacts of product and service categories

416-2 Incidents of non-compliance concerning
the health and safety impacts of products and
services

Business conduct

GRI 103: Management approach
2016

103-1 Explanation of the material topic and
its boundary

GRI 205: Anti-corruption
2016

GRI 206: Anti-competitive
behavior

103-2 Management approach and its components

54–55

103-3 Evaluation of the management approach

205-3 Confirmed incidents of corruption and
actions taken

206-1 Legal actions for anti-competitive behavior,
anti-trust, and monopoly practices

Sustainability ReportBurckhardt CompressionAnnual Report 2021SASB Mapping

SASB SUSTAINABILITY DISCLOSURE TOPICS & ACCOUNTING METRICS

Topic

SASB Accounting Metric

Code

Reference

Energy Management

Employee Health & Safety

Fuel Economy & Emissions in Use-
phase

Materials Sourcing

Remanufacturing
Design & Services

SASB ACTIVITY METRICS

(1) Total energy consumed,
(2) percentage grid electricity,
(3) percentage renewable

RT-IG-130a.1

GRI 302-1
GRI 302-3
Page 58

(1) Total recordable incident rate
(TRIR),
(2) fatality rate, and
(3) near miss frequency rate (NMFR)

Sales-weighted fleet fuel efficien-
cy for medium- and heavy-duty
vehicles

Sales-weighted fuel efficiency for
non-road equipment

Sales-weighted fuel efficiency for
stationary generators

Sales-weighted emissions of: (1)
nitrogen oxides (NOx) and (2) par-
ticulate matter (PM) for: (a) marine
diesel engines, (b) locomotive diesel
engines, (c) on-road medium- and
heavy-duty engines, and (d) other
non-road diesel engines

Description of the management
of risks associated with the use of
critical materials

Revenue from remanufactured
products and remanufacturing
services

RT-IG-320a.1

GRI 403-1 to 8
Pages 53, 58

RT-IG-410a.1

n/a

RT-IG-410a.2

RT-IG-410a.3

RT-IG-410a.4

n/a

RT-IG-440a.1

Pages 41, 74

RT-IG-440b.1

Activity Metric

Code

Reference

Further Information and
omissions

Number of units produced by prod-
uct category

RT-IG-000.A

n/a

This information is not communi-
cated publicly for business reasons.

Number of employees

RT-IG-000.B

GRI 102-8
Page 58

Further Information and
omissions

Percentage grid electricity is not
evaluated separately until now. We
are working on making this break-
down available in the future.

We do not yet track near miss
frequency rate (NMFR). We are eval-
uating the possibility of providing
such information in the future.

Not applicable to our products. The
vast majority of Burckhardt Com-
pression’s compressors are powered
by electricity.

We do not yet track revenue along
this breakdown. We are evaluating
the possibility of providing such
information in the future.

Sustainability ReportBurckhardt CompressionAnnual Report 2021Corporate Governance

Corporate
Governance

Burckhardt Compression is committed to
responsible corporate governance. The com-
pany adheres to the Directive on Information
Relating to Corporate Governance (DCG)
issued by SIX Swiss Exchange, where applica-
ble to Burckhardt Compression, and the
“Swiss Code of Best Practice for Corporate
Governance” issued by economiesuisse.

Annual Report 2021

Burckhardt Compression

Corporate Governance

This report is structured in accordance with the DCG’s outline and number-
ing. Unless otherwise noted, the information presented reflects the latest
DCG’s version as of March 31, 2022.

1. GROUP STRUCTURE AND SHAREHOLDERS
1.1. Group structure
1.1.1. Management structure
Burckhardt Compression is managed through a divisional organizational
structure consisting of two divisions, the Systems Division (compressor
manufacturing business) and the Services Division (compressor services
and components). The management structure of the Burckhardt Compres-
sion Group is given in the organizational chart below:

Organigram (per March 31, 2022)

CEO
Marcel Pawlicek

CHRO
NN

CFO
Rolf Brändli

President Systems Division
Fabrice Billard

President Services Division
Rainer Dübi

1.1.2. Listed Group companies
Burckhardt Compression Holding AG, a corporation organized under the
laws of Switzerland with legal domicile in Winterthur, is the only listed
Group company. Burckhardt Compression registered shares (BCHN) are
listed on the SIX Swiss Exchange in Zurich (ISIN: CH0025536027; securi-
ty number 002553602). Its market capitalization as per March 31, 2022
amounted to CHF 1’662’600’000.

1.1.3. Unlisted Group companies
Information on the unlisted companies included in the scope of consolida-
tion of Burckhardt Compression Holding AG is given in the financial report
on page 124, Note 102, “Subsidiaries”.

With the exception of Burckhardt Compression Holding AG,
none of the companies included in the scope of consolidation hold any
BCHN shares.

1.2. Significant shareholders
According to information available to the company from the disclosure
notifications of the SIX Swiss Exchange AG, the shareholders listed in the
following table reported shareholdings of at least 3% of the voting rights
as per March 31, 2022. In accordance with the company’s Bylaws, the voting
rights of NN Group N.V. are limited to 5.0% of the total number of BCHN
registered shares recorded in the share register:

Name

Country

of shares
in %

MBO Aktionärsgruppe (Valentin
Vogt, Daniela Vogt, Harry Otz,
Leonhard Keller, Martin Heller,
Ursula Heller, Marcel Pawlicek)

NN Group N.V.

UBS Fund Management
(Switzerland) AG

BlackRock, Inc.

12.4

9.86

5.02

3.07

More detailed information on the disclosure notifications is available on
the website of the SIX Swiss Exchange’s Disclosure Office:
(https://www.ser-ag.com/en/resources/notifications-market-participants/
significant-shareholders.html#/).

1.3. Cross-shareholdings
Burckhardt Compression Holding AG has no cross-shareholdings with any
other company or group of companies.

2. CAPITAL STRUCTURE
2.1. Capital
The issued share capital of Burckhardt Compression Holding AG amounts
to CHF 8’500’000, comprising 3’400’000 fully paid registered shares with
a nominal value of CHF 2.50 each.

Annual Report 2021

Burckhardt Compression

Individual persons who have not expressly declared in their registration ap-
plication that they hold the shares for their own account (nominees) will be
entered in the Share Register with voting rights if the nominee concerned
provides proof that he is subject to supervision by an accredited bank and
financial market regulator and if he has concluded an agreement with the
Board of Directors concerning his status. Nominees holding up to 2% of
the issued shares will be entered in the Share Register with voting rights
without having to sign an agreement with the Board of Directors. Nomi-
nees holding more than 2% of the issued shares will be entered in the Share
Register with 2% voting rights and, for the remaining shares, without vot-
ing rights. Above this 2% cap, the Board of Directors may have nominees
entered in the Share Register with voting rights if they disclose the names,
the addresses, the nationalities, and the shareholdings of the persons for
whom they hold more than 2% of the issued share capital.

2.7. Convertible bonds and options
The company does not have any outstanding convertible bonds and has not
issued any option rights.

Corporate Governance

2.2. Details on authorized and conditional capital
The company does not have any authorized or conditional capital.

2.3. Changes in capital
There has been no movement in share capital since the IPO in June 2006.

Shares and participation certificates

2.4.
Voting rights may only be exercised after the shareholder has been regis-
tered in the Share Register. All shares are entitled to full dividend rights.
Voting rights per shareholder are restricted to 5% of the total number of
the registered shares recorded in the commercial register. This does not
apply to shareholders who were in possession of more than 5% of the
shares of Burckhardt Compression Holding AG before the Initial Public
Offering (IPO). The voting rights of treasury shares – held by Burckhardt
Compression Holding AG – will be suspended. The company has not issued
any participation certificates.

Dividend-right certificates

2.5.
The company has not issued any dividend-right certificates.

2.6. Limitations on transferability and nominee registrations
No person or entity will be registered as a shareholder in the Share Regis-
ter for more than 5% of the issued share capital. This entry restriction is
also applicable to persons whose shares are held, in whole or in part, by
nominees. This restriction is also valid if shares are acquired through the
exercise of subscription, option, or conversion rights, with the exception of
shares acquired through inheritance, division of an estate or marital prop-
erty law.

Legal entities and partnerships associated with each other by uni-
formly managed capital or votes or in any other way, as well as private and
legal entities or partnerships which form an association to evade registra-
tion restrictions, are regarded as one person.

Annual Report 2021

Burckhardt Compression

Corporate Governance

3. BOARD OF DIRECTORS
3.1. Members and
3.2. Other activities and interests
The Bylaws stipulate that the Board of Directors consists of a minimum of
three and a maximum of seven members. Since the Annual Shareholder
Meeting 2021, all members are non-executive and independent members of
the Board of Directors in the context of the Swiss Code of Best Practice for
Corporate Governance from economiesuisse. The composition of the Board
of Directors is as follows:

Name

Nationality

Function

First elected

Term expires

Ton Büchner

Urs Leinhäuser

Dr. Monika Krüsi

Dr. Stephan Bross

David Dean

CH/NL

CH/IT

Chairman, non-executive; Chairman SSC

Member, non-executive; member AC

Member, non-executive; member SSC, Chair NCC

Member, non-executive; member NCC

Member, non-executive; Chairman AC

2020

2007

2012

2014

2019

2022

AC = Audit Committee
NCC = Nomination and Compensation Committee
SSC = Strategy and Sustainability Committee

No Board member has served as a member of the Executive Management
of a Burckhardt Compression Group company. None of the directors have
material business relationships with a Burckhardt Compression Group
company.

The competencies of the Board members are depicted in the following ma-
trix:

Executive competence (>200 FTEs)

Strategic competence

Competence in non-European cultures

Supply chain competence

Competence in BC markets

Technological competencies

Financial competencies

M&A competence

Board-level competencies

CEO coaching competencies

Ton Büchner Urs Leinhäuser Monika Krüsi

Stephan Bross

David Dean

•

The company’s General Counsel, who serves as Secretary to the Board of Directors, has a degree in law (Dr. iur.).

Biographical details and information on other activities and commitments
of the individual members of the Board of Directors are given below:

Annual Report 2021

Burckhardt Compression

Corporate Governance

TON BÜCHNER (1965)
Independent Board Member since 2020

URS LEINHÄUSER (1959)
Independent Board Member since 2007

DR. MONIKA KRÜSI (1962)
Independent Board Member since 2012

Education
Master of Business Administration,
IMD Business School, Switzerland
Master of Science in civil engineering, Delft
University of Technology, Netherlands

Professional background
2012–2017 Chairman of the Executive Manage-
ment and CEO, AkzoNobel NV, Netherlands
2007–2011 CEO, Sulzer AG, Switzerland
2000–2002 President, Sulzer Turbomachinery
Services, Switzerland
1994–2000 various management positions,
Sulzer AG, Switzerland

Duties and responsibilities as a director of
Burckhardt Compression Holding AG
– Chairman of the Board of Directors
– Chairman of the Strategy and Sustainability

Committee

Other activities and commitments
– Member of the Board of Directors, Novartis,

Switzerland

– Chairman of the Board of Directors, Swiss

Prime Site AG, Switzerland
– Advisor, Ammega, Switzerland

Education
PhD. in Business Informatics,
MBA University of Zurich, Switzerland

Professional background
Since 2003 Partner, MKP Consulting AG,
Switzerland
2001–2003 Partner, Venture Incubator
Partners AG, Switzerland
1991–2001 Associated Partner,
McKinsey & Co., Inc., Switzerland
1986–1990 Credit Suisse, Switzerland

Duties and responsibilities as a director of
Burckhardt Compression Holding AG
– Member of the Board of Directors
– Chair of the Nomination and
Compensation Committee
– Member of the Strategy and
Sustainability Committee

Other activities and commitments
– Chair of the Board of Directors,

Repower AG, Switzerland

– Chair of the Board of Directors of

Oskar Ruegg AG, Schweiz

– Board member, 360°, Switzerland
– Board member, Otto Suhner AG, Switzerland
– Board member, BGRB Holding AG, Switzerland

Education
Degree in Business Administration,
University of Applied Sciences, Zurich,
Switzerland IMD Lausanne (SSE)

Professional background
Since 2016 Managing Partner ADULCO GmbH,
Switzerland
2014–2016 Self-employed, Switzerland
2011–2014 CFO and Deputy CEO, Member of
Executive Management, Autoneum Holding AG,
Switzerland
2003–2011 CFO and Head Corporate Center,
Member of Group Executive Committee, Rieter
Holding AG, Switzerland
1999–2003 CFO, Member of Group Executive
Committee, Mövenpick Holding, Switzerland
1997–1999 CFO, Piping Systems Division,
Georg Fischer AG, Switzerland
1995–1997 Head of Corporate Controlling,
Georg Fischer AG, Switzerland
1992 Managing Director, Cerberus, Denmark
1988–1994 Group Controller, Cerberus AG,
Switzerland
1986–1988 Deputy Head, Tax Consultancy De-
partment, Refidar Moore Stephens, Switzerland
1983–1986 Tax Inspector, Cantonal Tax
Department SH, Switzerland

Duties and responsibilities as a director of
Burckhardt Compression Holding AG
– Member of the Board of Directors
– Member of the Audit Committee

Other activities and commitments
– Chairman of the Board of Directors, Avesco

AG, Switzerland

– Board member, Ammann Group

Holding AG, Switzerland

– Board member, Liechtensteinische

Landesbank AG, Liechtenstein

– Board member, VAT Group AG, Switzerland
– Board member, PENSADOR Partner AG,

Switzerland

Annual Report 2021

Burckhardt Compression

Corporate Governance

DR. STEPHAN BROSS (1962)
Independent Board Member since 2014

DAVID DEAN (1959)
Independent Board Member since 2019

Education
Engineering degree,
University of Braunschweig, Germany

Professional background
Since 2018 Executive Management member
(CTO), KSB SE & Co. KGaA, Germany
2017 Executive Management member,
Technology, KSB AG, Germany
2014–2017 Senior Vice President, Pumps,
KSB AG, Germany
2007–2013 Senior Vice President, Service,
KSB AG, Germany
2002–2007 Head Product Management and
Development Engineered Pumps, KSB AG,
Germany
1997–2001 Head Development and Servic-
es Fluid Flow Technical Systems, KSB AG,
Germany
1996–1997 Head of Fluid Mechanics Research,
KSB AG, Germany
1993–1996 R&D Engineer, KSB AG, Germany

Duties and responsibilities as a director of
Burckhardt Compression Holding AG
– Member of the Board of Directors
– Member of the Nomination and Compensation

Committee

Education
Swiss certified expert for accounting and
controlling Swiss certified accountant
Completed executive education programs at
Harvard Business School, Boston, USA, and
at the IMD, Lausanne, Switzerland

Professional background
Since 2019 Self-employed, Switzerland
2004–2019 CEO, Bossard Group, Switzerland
1998–2004 CFO, Bossard Group, Switzerland
1993–1998 Deputy CFO and Corporate
Controller, Bossard Group, Switzerland

Duties and responsibilities as a director of
Burckhardt Compression Holding AG
– Member of the Board of Directors
– Chairman of the Audit Committee

Other activities and commitments
– Board member, Bossard Group, Switzerland
– Board member, Komax Group, Switzerland
– Board member, Brugg Group, Switzerland
– Chairman of the Board of Directors,

Haag-Streit Group, Switzerland (a division
of Metall Zug Group)

Annual Report 2021

Burckhardt Compression

Corporate Governance

Independence of the Board of Directors
All members are non-executive and independent members of the Board of
Directors in the context of the Swiss Code of Best Practice for Corporate
Governance from economiesuisse. Non-executive members of the Board of
Directors are considered independent if they have never, or not within the
last three years, worked for Burckhardt Compression, and have no or only
relatively small business relationships with the company.

3.3. Rules in the Bylaws concerning the number of permitted activities
Members of the Board of Directors may not hold more than ten (10) addi-
tional board memberships, of which not more than four (4) in listed com-
panies.

3.4. Election and term of office
Each member of the Board of Directors, the Board Chairman, and each
member of the Nomination and Compensation Committee are elected an-
nually by the Annual General Meeting. The members of the Board of Direc-
tors shall be automatically retired from the Board of Directors in the year
in which they reach the age of 70.

3.5. Internal organization and structure
The Board of Directors has the final responsibility for the business strategy
and the management of the Burckhardt Compression Group. It has final
authority and defines the guidelines regarding strategy, organization, fi-
nancial planning, and accounting for the Burckhardt Compression Group.
The Board of Directors has delegated executive management responsibili-

ty to the CEO of Burckhardt Compression Group. The Board of Directors ap-
points a secretary for the Board and for the company. The Secretary does
not need to be a member of the Board. This role is currently assigned to the
company’s General Counsel.

The Board of Directors meets as often as business requires, but at least
four times per year. In fiscal year 2021, the Board of Directors and Board
committees convened the following meetings (see table below).

The Board of Directors has a quorum when the majority of the members are
present. Decisions are passed by a simple majority. In the event of a tie, the
Chairman has the casting vote.

The CEO, the two Presidents of the Systems and Services Divisions,
the CFO, the CHRO and the General Counsel, in his role as secretary, are
regularly invited to attend Board meetings to report on developments in
their respective business areas.
The Board of Directors has set up the following committees:

Audit Committee
The Audit Committee advises and supports the Board in all matters related
to external and internal audits, risk management, accounting policies and
practices and compliance with accounting standards issued. The CEO, the
CFO, the head of the internal audit unit and representatives of the external
auditors also participated in the Audit Committee’s ordinary meetings. The
members are David Dean (Chair) and Urs Leinhäuser.

Meeting

Governing body

Duration

Ton Büchner Urs Leinhäuser Monika Krüsi

Stephan Bross

David Dean

04/19/2021, meeting of

05/26/2021, meeting of

05/27/2021, meeting of

08/03/2021, meeting of

08/09/2021, meeting of

08/26/2021, meeting of

08/30/2021, meeting of

08/31/2021, meeting of

09/17/2021, meeting of

10/26/2021, meeting of

10/27/2021, meeting of

12/10/2021, meeting of

01/20/2022, meeting of

02/22/2022, meeting of

03/09/2022, meeting of

SCC

NCC

BOD

SCC

BOD

NCC

BOD

NCC

BOD

9.5 hours

3.5 hours

4 hours

7 hours

6 hours

1.5 hours

2 hours

7 hours

5.5 hours

6 hours

3 hours

6.5 hours

4.5 hours

6 hours

5 hours

•

BOD = Board of Directors | AC = Audit Committee | NCC = Nomination and Compensation Committee | SSC= Strategy and Sustainability Committee

Annual Report 2021

Burckhardt Compression

Corporate Governance

Nomination and Compensation Committee
This committee advises and assists the Board of Directors on appointing,
assessing and dismissing members of the Executive Management, and
draws up proposals for the appointment or dismissal of members of the
Board of Directors. Furthermore, the Nomination and Compensation Com-
mittee advises and assists the Board of Directors on questions relating to
the compensation of the directors and the Executive Management mem-
bers. The CEO and the CHRO also attend the ordinary meetings of the NCC.
The members are Dr. Monika Krüsi (Chair) and Dr. Stephan Bross.

Strategy and Sustainability Committee
The Strategy and Sustainability Committee supports the CEO in develop-
ing corporate strategy, advises the Board of Directors on strategic matters
such as acquisitions and divestments and ensures that sustainability (and
social responsibility) is an integral part of the company strategy. It evalu-
ates the implementation of company strategy on a regular basis and sub-
mits proposals to the Board of Directors if adjustments or other measures
are deemed necessary. The members are Ton Büchner (Chair) and Dr. Mon-
ika Krüsi. In addition, the Strategy Committee organizes and prepares the
annual strategy day in collaboration with the CEO.

3.6. Definition of areas of responsibility
The Board of Directors has delegated the executive management of the
company and the Group to the CEO of Burckhardt Compression Group, with
the exception of the following matters:
– Definition of the Group’s business policies and strategy
– Definition of the top-level organizational structure of the Group
– Approval of the periodic forecasts, the annual report and of reporting

and accounting policies

– Ensuring adequate internal control systems based on the recommenda-

tions of the Audit Committee

– Determination of the appropriate capital structure
– Appointment and dismissal of members to and from the Executive

Management, as well as compensation of the Executive Management

– Decisions on new subsidiaries, major capital expenditure projects,
acquisitions, financing transactions, the insurance concept and the
provision of guarantees if such decisions exceed the powers conferred
on the CEO.

The powers of the Executive Management and of the Group company
executives are listed in detail in the organization regulation (https://www.
burckhardtcompression.com/investors/corporate-governance).

3.7.

Information and control instruments vis-a-vis the executive
committee

Financial reporting and planning order intake, the income statement, bal-
ance sheet, liquidity planning and cash flow, headcount, personnel costs
and capital expenditure are consolidated and annotated on a monthly ba-
sis. A rolling forecast of Group results for the current and coming fiscal
years is also prepared and annotated four times a year (April, July, October
and January). Targets for the coming fiscal year are determined based on
the January forecast. The financial report and the forecasts are distributed
to the members of the Executive Board and all members of the Board of
Directors. At every meeting of the Management of Directors, the members
of the Executive Management report on the course of business and on all
issues of relevance to the Group.

Internal Group Audit and internal control system (ICS)
The internal audit reports to the Chairman of the Audit Committee of the
Board of Directors. Management responsibility for the unit has been dele-
gated to the Head of Group Controlling, who is also responsible for plan-
ning and conducting the audits. The CFO is responsible for coordination be-
tween the Audit Committee and the head of the Internal Group Audit. The
Internal Group Audit team consists of qualified staff from the Finance and
Controlling departments of Burckhardt Compression AG and several se-
lected financial specialists from the Group’s subsidiaries. Qualified subject
matter experts from other fields (e.g. IT, Legal or Human Resources) may
be consulted, depending on the auditing assignment. These employees
perform the internal audit duties assigned to them in addition to their regu-
lar duties and in this additional capacity they report directly to the Head of
Internal Group Audit, who in turn reports in this function directly to Chair-
man of the Board of Directors’ Audit Committee. This efficient organization
is tailored to the needs and size of the Burckhardt Compression Group and
fosters an active exchange of information and best practices with the ob-
jective of creating sustained added value for the Burckhardt Compression
Group by means of continual process improvement. The internal auditors
undergo regular training for the performance of their tasks. The training
received is coordinated by the head of the internal Group audit. The sched-
ule for internal audits is determined by the Audit Committee of the Board
of Directors on an annual basis and may be changed or expanded by the
Audit Committee as and when required. Eleven internal audits were carried
out in fiscal year 2021. The internal auditors’ reports were distributed to the
management of the audited company, the members of the Audit Commit-
tee of the Board of Directors, the Executive Management members and to
the external company auditors. The statutory auditor assesses the effec-
tiveness of the internal control system (ICS) in a written report submitted
to the Audit Committee and the Board of Directors once a year.

Annual Report 2021

Burckhardt Compression

Corporate Governance

Risk management
Burckhardt Compression has an integrated risk management policy. In a
two-stage process, key risks are identified using an anticipatory approach
and grouped under one of three risk categories – strategic, financial or
operational – that have been defined by the Board of Directors. The risks
are then evaluated, managed and stringently monitored, avoided, mitigat-
ed or transferred to third parties through appropriate risk management
measures. The first stage of risk management consists of a continuous
risk management process, in which the divisions and larger companies
at Burckhardt Compression Group systematically identify and assess the
risks in a regular rhythm, define the necessary risk mitigation measures
together with the responsible persons, and set and monitor deadlines for
implementation. Internal and external factors are included in the evalua-
tion of potential risks.

The second stage of the risk management process consists of a pe-
riodic risk management review that takes place twice a year at the meet-
ings of the Board of Directors’ Audit Committee. To this end, the Executive
Management prepares an overview of the main risks faced by Burckhardt
Compression Group and an assessment of the likelihood of these risks oc-
curring and the effects they would have. This overview is presented to the
Audit Committee together with the risk mitigation measures, the people
responsible for implementing them, and an implementation timetable.
The Audit Committee then reports to the Board of Directors about the find-
ings of the risk management review.

Compliance
Burckhardt Compression has a group-wide compliance focusing on com-
pliance with legal and internal regulations which include also the Code of
Conduct and the Burckhardt Compression Values and Behaviors. The Com-
pliance program has a three-pillar framework:
– prevention (through policies and trainings),
– early detection (though different grievance channels) and
– response (different actions on compliance breaches and fine tuning of

policies).

The updated Code of Conduct was launched in 2021 and conveyed to all
employees accompanied by e-trainings. A grievance channel was intro-
duced to all employees and business partners. Also, data protection is an
important topic taken very seriously at Burckhardt Compression. In 2021,
the Data Protection Officer has continued to prioritize and focus on the
implementation of the EU’s General Data Protection Regulation (GDPR)
requirements within Burckhardt Compression’s projects, processes, and
documentation. For many years Burckhardt Compression has also been
investing in IT Security to ensure technical resilience to cyber-attacks. In
2021, the focus of the work was on strengthening the safety awareness
of all employees. In addition, Burckhardt Compressions has reviewed the
IT Security assessment to identify and protect the most relevant assets
(Crown Jewels).

3.9. Self-evaluation of the Board of Directors
In fiscal year 2021, the Board of Directors conducted a self-evaluation look-
ing at the work of the Board of Directors and its individual committees. The
evaluation process covered purpose, scope, composition and responsibili-
ties and was done as an internal evaluation only. Each of the Board mem-
bers completed a questionnaire and the detailed findings were presented
back to the Board. Improvement measures were defined and will be regu-
larly reviewed.

Annual Report 2021

Burckhardt Compression

Corporate Governance

4. EXECUTIVE MANAGEMENT
4.1. Members of the Executive Management and
4.2. Other activities and commitments

Name

Nationality

Function

Marcel Pawlicek

Rolf Brändli

Sandra Pitt

Fabrice Billard

Rainer Dübi

*until March 31, 2022
**until March 31, 2022
***until December 31, 2021

DE/CH

FR/CH

CEO*

CFO

CHRO***

President Systems Division**

President Services Division

Biographical details and information on other activities and commitments
of the members of the Executive Management:

Annual Report 2021

Burckhardt Compression

Corporate Governance

MARCEL PAWLICEK (1963)

ROLF BRÄNDLI (1968)

SANDRA PITT (1971)

Education
Degree in Business Administration, HWV Zurich,
Switzerland

Professional background
Since 2008 CFO, Burckhardt Compression
Group, Switzerland
2001–2008 Head of Finance & Administration,
Sulzer Brasil S.A., Brazil; Regional Controller,
Sulzer Pumps South America & South Africa
1997–2001 Regional Controller Asia/Pacific,
Sulzer International Ltd.; General Manager,
Sulzer Hong Kong Ltd., Hong Kong, SAR China
1994–1997 Management Consultant, OBT
Treuhand AG Zurich, Switzerland

Education
Bachelor in Business Administration/Business
Informatics, Germany, MBA
International Finance/International HR,
American University Washington, USA

Professional background
2015– December 31, 2021 CHRO,
Burckhardt Compression Group, Switzerland
2013–2015 Head Corporate HR,
AFG Management AG, Switzerland
2012–2013 Head of HR Central Europe,
Holcim (Schweiz) AG, Switzerland
2010–2012 Head of HR, Holcim (Schweiz) AG,
Switzerland
2007–2009 Head of HR, BASF Group
Switzerland, BASF Schweiz AG, Switzerland
2006–2007 HR Specialist Region Europe,
BASF AG, Germany
2003–2006 Internal Consultant Performance
Management, BASF AG, Germany
2002–2003 HR Coordinator Europe,
BASF AG, Germany

Education
Degree in Mechanical Engineering, HTL
Winterthur, Switzerland, MBA Marketing and
International Business, Fordham University,
New York, USA

Professional background
2011– March 31, 2022 CEO, Burckhardt
Compression Group, Switzerland
2008–2011 Head of Design & Manufacturing,
Burckhardt Compression AG, Switzerland
2001 – 2008 Head of CSS, Burckhardt
Compression AG, Switzerland
1999–2001 Head Sales and Contracting HPI,
Sulzer-Burckhardt AG, Switzerland
1989–1999 Project Manager and Marketing &
Sales Manager for Burckhardt compressors,
Sulzer Inc., USA
1986–1989 Design Engineer,
Sulzer-Burckhardt AG, Switzerland

Other activities and commitments
– President of the Swiss-CIS/

Georgia Chamber of Commerce
– Vice President of AZW Winterthur,

Switzerland

– Member of the Board,

Switzerland-Global Enterprise

Annual Report 2021

Burckhardt Compression

Corporate Governance

FABRICE BILLARD (1970)

RAINER DÜBI (1969)

Education
Master of Science in Aeronautics and Aerospace
Engineering, Ecole Centrale Paris, France

Education
Degree in Mechanical Engineering, HTL
Winterthur, MASBA School of Management,
Switzerland

Professional background
Since April 1, 2022 CEO Burckhardt
Compression Group, Switzerland
2016–2022 President Systems Division,
Burckhardt Compression Group, Switzerland
2015–2016 Chief Strategy Officer, Sulzer,
Switzerland
2012–2015 Head Business Unit Mass Transfer
Technology, Sulzer Chemtech, Switzerland/
Singapore
2010–2012 Head Europe, Middle East, India,
Russia & Africa Business Unit, Mass Transfer
Technology, Sulzer Chemtech, Switzerland
2008–2010 Vice President Business
Development, Sulzer Chemtech, Switzerland
2005–2008 Head Global Customer
Services, Sulzer Pumps, Switzerland
2004–2005 Strategic Development
Manager, Sulzer Corporate, Switzerland
1999–2004 Principal, The Boston
Consulting Group, Switzerland/France

Professional background
Since 2019 President Services Division,
Burckhardt Compression Group, Switzerland
2012–2019 Head of Design & Manufacturing,
Burckhardt Compression AG, Switzerland
2010–2012 Senior Sales Manager, Burckhardt
Compression AG, Switzerland
2007–2010 Manager Sizing, Burckhardt
Compression AG, Switzerland
2003–2007 Sizing Project Engineer,
Burckhardt Compression AG, Switzerland
2001–2003 Commissioning Lead Engineer,
Alstom, Switzerland
1999–2001 Commissioning Engineer,
ABB, Switzerland

Annual Report 2021

Burckhardt Compression

Corporate Governance

Changes in the Management
On November 23, 2021 Burckhardt Compression announced that Fabrice
Billard will become the new CEO of Burckhardt Compression as of April
1, 2022. On February 3, 2022 Burckhardt Compression appointed Vanessa
Valentin as new CHRO and member of the Executive Management. She will
join Burckhardt Compression on June 1st, 2022 to succeed Sandra Pitt, who
left the company at the end of December 2021.

4.3. Rules in the Bylaws concerning the number of permitted activities
Members of the Executive Management may not hold more than five (5) ad-
ditional board memberships, of which not more than two (2) additional may
be in listed companies.

4.4. Management contracts
There are no management contracts with third parties.

5. COMPENSATION, SHAREHOLDINGS AND LOANS
The principles and elements of compensation paid to members of the
Board of Directors and the Executive Management as well as the authority
and the mechanisms used to determine such compensation are explained
in the Compensation Report on pages 80 to 87.

The shareholdings of the members of the Board of Directors and the
Executive Management in Burckhardt Compression Holding AG are listed
in the Compensation Report on pages 80 to 87 and in the financial state-
ments, note 103, “Share capital and shareholders” on page 124.

Burckhardt Compression Group did not grant any loans, credit or
collateral to any of the members of the Board of Directors or the Execu-
tive Management in fiscal year 2021 and there are no arrangements of this
nature outstanding.

6. SHAREHOLDERS’ PARTICIPATION RIGHTS
6.1. Voting rights restrictions and representation of voting rights
No person or entity will be registered as a shareholder in the Share Register
for more than 5% of the issued share capital. This entry restriction is also
applicable to persons whose shares are held, in whole or in part, by nomi-
nees. This restriction is also valid if shares are acquired through the exer-
cise of subscription, option, or conversion rights. This restriction on voting
rights does not apply to shareholders who were in possession of more than
5% of the shares of Burckhardt Compression Holding AG before the IPO.
There is no provision for measures to remove restrictions.

A shareholder may be represented at the Annual General Meeting by
the independent proxy holder or by another person with legal capacity. All
shares held by a shareholder can only be represented by one person.

Annual Report 2021

Burckhardt Compression

6.2. Statutory quorums
A majority of at least two-thirds of the voting rights represented is required
for changes to the company’s Bylaws.

6.3 . Convocation of the General Meeting of Shareholders
None of the applicable rules deviate from the law.

6.4. Inclusion of items on the agenda
Shareholders who together represent at least 10% of the share capital can
ask for an item to be included on the agenda of the General Meeting. The
Board of Directors must receive written proposals for items to be included
on the agenda, specifying the issue to be discussed and the shareholders’
proposals, at the latest 40 days before the date of the General Meeting.

6.5. Entries in the Share Register
The record date for registered shareholders to be entered in the Share Reg-
ister prior to an Annual General Meeting will be stated in the invitation to
the Annual General Meeting.

CHANGES OF CONTROL AND DEFENSIVE
MEASURES
Obligation to make an offer

7.1.
Once a shareholder acquires 33⅓% of share capital and voting rights, he/
she will be under an obligation to submit a public tender offer. The Bylaws
contain neither an opting-out nor an opting-up clause.

7.2. Clauses on change of control
There are no provisions for special severance payments for members of the
Board of Directors or members of the Executive Management in the event
of a change of control over Burckhardt Compression Holding AG.

8. AUDITORS
8.1. Duration of mandate and term of office of the auditor in charge
PricewaterhouseCoopers AG (PwC) has been the statutory auditor of
Burckhardt Compression Holding AG since 2002 and is also in charge of
the audit of the consolidated financial statements. The statutory auditor
is elected by the General Meeting of Shareholders for one year at a time.
Burckhardt Compression plans to tender its external audit contracts at
least every 10 years and examine all bids received. The most recent invi-
tation to tender was issued during the fiscal year 2012. PwC was awarded
the contract in March 2013 and was re-elected as statutory auditor by the
General Meeting of Shareholders in June 2013. The auditor in charge will be
changed after a maximum period of seven years. Sandra Böhm Uglow has
served as auditor in charge since the 2020 reporting period.

Corporate Governance

8.2. Auditor’s fees
Total fees for auditing services provided by PwC worldwide during fiscal
year 2021 amounted to TCHF 372 (previous year: TCHF 354).

Details of these dates, possible changes, the company profile, current
share prices, presentations, and contact addresses can be found at www.
burckhardtcompression.com, where interested parties can also subscribe
to the email distribution list.

10. QUIET PERIODS
No Board member, member of the Executive Management or other employ-
ee of Burckhardt Compression specifically notified by the CFO may trade
with Burckhardt Compression shares listed in stock exchange during the
period starting from April 1 and October 1 respectively and ending with the
close of the first trading day after Burckhardt Compressions’ public release
of the relevant annual or half-year report. Besides these recurring lock-out
periods, in 2021 there was one specific lock-out period from November 4,
2021 to December 6, 2021 during an acquisition.

8.3. Additional fees
The additional fees for services provided by PwC worldwide during fiscal
year 2021 are in the amount of TCHF 110 (previous year: TCHF 78). Addition-
al services rendered by PwC outside the audit mandate in the previous year
are compatible with the audit assignment.

8.4. Information tools of the external auditors
The Audit Committee assists the Board of Directors in monitoring the Com-
pany’s accounting and financial reporting. It assesses the internal control
procedures, the management of business risks, the audit plan and scope,
the conduct of the audits and their results. The Audit Committee also re-
views the auditor’s fees. The statutory auditor is present during the exam-
ination of the consolidated annual and semi-annual financial statements.
Once a year, the members of the Audit Committee receive from the statu-
tory auditor a summary of the audit findings and suggested improvements.
The Audit Committee held four meetings during the 2021 reporting period.
The auditor in charge and another representative of the auditor took part
in these meetings.

INFORMATION POLICY

9.
General Burckhardt Compression Holding AG reports order intake, sales,
operating results, balance sheet, cash flow, and changes in shareholders’
equity on a semi-annual basis, together with comments on the trend of
business and the outlook for the future. Burckhardt Compression Holding
AG provides price-sensitive information in accordance with the ad hoc dis-
closure requirements set out in the Listing Rules of the SIX Swiss Exchange.
Burckhardt Compression Holding AG will send potentially price-sensitive
information to all interested parties via an email distribution list. Financial
reports are available on our website (www.burckhardtcompression.com)
and will be delivered to interested parties on request.

Key dates for 2022 and 2023
July 1, 2022
Annual General Meeting
November 1, 2022
Results for the first half of 2022 (closing September 30, 2022)
June 6, 2023
2022 Annual Report (closing March 31, 2023)
July 1, 2023
Annual General Meeting

Annual Report 2021

Burckhardt Compression

Compensation Report

Compensation
Report

This Compensation Report describes the
policies and system in place for the compensa-
tion of the Board of Directors and the Execu -
tive Management of Burckhardt Compression,
together with information on their annual
compensation and shareholdings.

Annual Report 2021

Burckhardt Compression

Compensation Report

1. BASIS
This Compensation Report describes the policies and system in place for
the compensation of the Board of Directors and the Executive Management
of Burckhardt Compression, together with information on their annual
compensation. This report was prepared in accordance with the provisions
of the Swiss Federal Ordinance Against Excessive Compensation in Listed
Companies (OAEC), the Directive on Information relating to Corporate Gov-
ernance (DCG) issued by the SIX Swiss Exchange, and the Bylaws of Burck-
hardt Compression Holding AG.

The Annual General Meeting of Burckhardt Compression Holding AG casts
the following votes in relation to the compensation of the Board of Direc-
tors and Executive Management:
– a prospective vote on the maximum aggregate amount of fixed compen-
sation for the Board of Directors and the Executive Management for the
fiscal year following the Annual General Meeting

– a retrospective vote on the maximum aggregate amount of variable

compensation for the Executive Management for the fiscal year preced-
ing the Annual General Meeting.

2. COMPENSATION POLICY
Burckhardt Compression has established a transparent and long-term-ori-
ented compensation system. The objectives pursued with this system are
to ensure that the compensation of the Board of Directors and the com-
pany executives is market-competitive and to achieve a good balance
between the interests of the shareholders, the directors, and executive
management. Market-competitive pay is a basic prerequisite for attracting
well-qualified directors and executives and ensuring that they remain with
the company in the long run.

3. ORGANIZATION, DUTIES AND POWERS
The Nomination and Compensation Committee (NCC) is comprised of at
least two members of the Board of Directors. The members of the NCC are
elected individually and annually by the Annual General Meeting and their
term of office shall expire at the end of the next Annual General Meeting.
The Annual General Meeting of July 2, 2021 elected Dr. Monika Krüsi and
Dr. Stephan Bross to the Nomination and Compensation Committee. The
Board of Directors appointed Dr. Monika Krüsi Chair of the Nomination and
Compensation Committee.

The NCC meets at least twice a year. The CEO and CHRO attend these
meetings in an advisory capacity, except during deliberation on meeting
topics that pertain to themselves. The Nomination and Compensation
Committee held five meetings during the year under review.

The duties and powers of the NCC are set forth in the company’s By-
laws and Organizational Regulations (www.burckhardtcompression.com/
corporate-governance). The NCC supports the Board of Directors in the
performance of its duties pertaining to the compensation and personnel
policies of the company and the entire Group as prescribed by law or the
company’s Bylaws. The most important duties and powers of the NCC with
regard to compensation are given in the table below.

Furthermore, the Annual General Meeting casts a consultative vote on the
Compensation Report.

Proposal/
recommendation by

Approval authority

Topic

Compensation principles
and guidelines

Compensation Report

Compensation of Board of
Directors

Compensation of Executive
Management

Loans to members of the
Executive Management

NCC

CEO

BOD

NCC

BOD = Board of Directors | NCC = Nomination and Compensation Committee

4. COMPENSATION SYSTEM
Burckhardt Compression Group’s compensation system consists of a
mix of fixed and variable components. In accordance with the Bylaws of
Burckhardt Compression Holding AG, variable compensation can be paid in
whole or part in the form of shares, conditional rights to receive shares, or
in comparable instruments of the company.

4.1. Compensation system for the Board of Directors
Compensation for the Board of Directors consists of a fixed component,
80% of which is paid in cash, 20% in shares; a fixed cash supplement for
directors who serve on a formal Board committee; and a fixed lump-sum
for expenses. The number of shares awarded is based on the average share
price (daily closing price on the SIX exchange) for the period between the
announcement of the full-year results and the Annual General Meeting.

The fixed component amounts to CHF 81’000 for members of the
Board of Directors and to CHF 184’000 per year for the Chairman of the
Board of Directors. The fixed cash supplement for directors serving on a
formal Board committee is CHF 10’000 a year. The lump sum for expenses
is CHF 4’000 for members of the Board of Directors and CHF 6’000 per year
for the Chairman of the Board of Directors.

Annual Report 2021

Burckhardt Compression

Compensation Report

4.2. Compensation system for the Executive Management
Compensation of the Executive Management consists of three compo-
nents:
– a fixed base salary
– a variable performance- and profit-related annual bonus paid in cash
– a variable performance- and profit-related long-term incentive bonus

awarded in the form of free shares.

Base salary
The functions performed by members of the Executive Management are
assigned to so-called Global Grades as defined by a global functional grad-
ing system (Willis Towers Watson Global Grading System). Market data for
each Global Grade based on Willis Towers Watson’s Global 50 Remunera-
tion Planning Report and the results of annual executive performance ap-
praisals are taken into consideration when determining the base salary of
the members of the Executive Management.

Annual Bonus
The members of the Executive Management receive a variable perfor-
mance- and profit-related bonus in addition to their base salaries. A new
annual bonus plan for the Executive Management went into effect in
fiscal year 2020. The annual bonus is calculated from the net income of
Burckhardt Compression Group – if a minimum financial threshold of 4%
return on sales at the net profit level is achieved – and a percentage rate
determined by the Global Grade. The percentage rate applied for the CEO
is 0.28%. The percentage rate for other members of the Executive Manage-
ment – depending on their Global Grade – ranges from 0.12% to 0.16%. The
annual bonus is limited to 50% of base salary.

Long-term incentive pay
Members of the Executive Management additionally receive long-term
incentive pay awarded in the form of free shares. The long-term bonus
program is valid for a six-year period (fiscal years 2017–2022). Long-term
incentive pay is based on the attainment of the Mid-Range Plan targets for
organic growth (sales) and net income of Burckhardt Compression Group
for the fiscal years 2018 to 2022 as well as for the 2017 fiscal year.

The basis upon which the long-term incentive pay is calculated con-
sists of a fixed, predefined amount per Global Grade. If the sales and net in-
come targets set in the Mid-Range Plan are attained by the end of the fiscal
year 2022, this fixed amount will be multiplied by a factor of 1.0 (0.5 each
for sales and net income) and awarded in the form of shares (free shares).

The targeted amount of the long-term bonus for the entire six-year period
is CHF 900’000 for the CEO and between CHF 450’000 and CHF 600’000
for the members of the Executive Management, depending on their Glob-
al Grade. The sales target in the Mid-Range Plan (aggregate) for the six
years amounts to CHF 3’819 mn; the net income target (aggregate) is
CHF 300 mn. If the targets are only partially achieved, the factors will be
reduced by a corresponding amount. Minimum financial targets have been
defined for both cumulative sales and for cumulative net income. The mini-
mum cumulative sales target is set at CHF 3’346 mn, minimum cumulative
net income at CHF 195 mn. If cumulative sales or net income fall short of
these minimum thresholds, the corresponding factor will be reduced to
zero. If the Mid-Range Plan targets for sales or net income are exceeded,
the corresponding factors will be increased up to a maximum amount of
0.6 each (1.2 in total).

An interim evaluation of the attained targets was conducted after
three years. Members of the Executive Management whose employment
with the company had not been terminated as of July 31, 2020 were on that
date awarded a number of free shares for the fiscal years 2017, 2018, and
2019, based on attainment of the targets. These free shares were distrib-
uted at the end of July 2020. The factors used for the multiplication of the
fixed amount in the interim evaluation are limited to 0.3 each (total 0.6).
The second allotment of free shares for the fiscal years 2020, 2021 and
2022 will be distributed at the end of July 2023, subject to approval by the
Annual General Meeting and provided that the employment contract for
the respective Executive Management members has not been terminated
for any reason, other than retirement. Persons subsequently appointed to
the Executive Management will be entitled to long-time incentive pay on a
pro rata basis. The number of shares awarded have been, respectively will
be based on the average share price for the periods from the announce-
ment of the full-year results to the annual general meetings for the fiscal
years 2019 and 2022, respectively.

All shares received will not be subject to any restrictions upon the

date of transfer.

Employment contract terms
Employment contracts with Executive Management members are entered
into for an indefinite period with a notice period of six months.

Annual Report 2021

Burckhardt Compression

Compensation Report

COMPENSATION PAID WITH COMPARATIVE
FIGURES FOR THE PREVIOUS YEAR

5.1. Compensation paid to the Board of Directors
The following aggregate compensation was paid to the members of the
Board of Directors for the fiscal years 2021 and 2020:

in CHF 1’000

Function

Fees

Members of the Board of Directors

Ton Büchner

Urs Leinhäuser

Dr. Monika Krüsi

Dr. Stephan Bross

David Dean

Total

Approved by the
2020 AGM for FY2021

Chairman

Member

194

101

568

in CHF 1’000

Function

Fees

Members of the Board of Directors
Ton Büchner 1
Valentin Vogt 2

Urs Leinhäuser

Dr. Monika Krüsi

Dr. Stephan Bross

David Dean

Total

Chairman

Member

145

101

555

Social insurance
contributions and
other benefits*

Approved by the
2020 AGM for FY 2020
1 From July 4, 2020
2 Until July 3, 2020
3 This amount includes a contingency reserve of CHF 11’000.
4 This amount includes a contingency reserve of CHF 15’000.
* mandatory social insurance and contributions only, as per local Swiss regulations.

The total fixed compensation in the fiscal year under review is CHF 14’000
above the previous fiscal year. This increase is due to the adjustment of
the fixed component paid to the Chairman of the Board of Directors and
the marginally higher social insurance contributions and other benefits.
The Annual General Meeting of July 3, 2020 approved aggregate fixed
compensation in the amount of CHF 650’000 (gross, incl. social insurance
contributions) for the Board of Directors (5 persons) for fiscal year 2021.
The amount of compensation actually paid was CHF 26’000 less than the
approved amount.

Annual Report 2021

Burckhardt Compression

2021

212

101

112

101

624

6503

2020

159

101

111

103

610

6404

Compensation Report

5.2.

Compensation paid to the Executive
Management

The following compensation was paid to the members of the Executive
Management for the fiscal years 2021 and 2020:

in CHF 1’000

Function

Fixed base
salary, cash

Social
insurance
contributions
and other
benefits

Total fixed
compensa-
tion (gross)

Variable an-
nual bonus,
cash

Share-based
long-term
incentive
pay

Social
insurance
contributions
and other
benefits

Total
variable
compensa-
tion (gross)

2021
Total

Executive Management

Marcel Pawlicek

Other members of the Executive
Management

Total

Approved by the 2020 AGM for FY 2021

CEO

445

1’081

1’526

115

256

371

560

1’337

1’897
2’2001

151

337

488

180

360

540

106

216

322

437

997

913

2’2502

1’350

3’247

in CHF 1’000

Function

Fixed base
salary, cash

Social
insurance
contributions
and other
benefits

Total fixed
compensa-
tion (gross)

Variable an-
nual bonus,
cash

Share-based
long-term
incentive
pay

Social
insurance
contributions
and other
benefits

Total
variable
compensa-
tion (gross)

2020
Total

Executive Management

Marcel Pawlicek

Other members of the Executive
Management

Total

Approved by the 2019 AGM for FY 2020
1 This amount includes a contingency reserve of CHF 200’000.
2 This amount includes CHRO’s compensation until December 31, 2021.
3 This amount includes a contingency reserve of CHF 200’000.

CEO

438

115

553

125

150

363

916

1’127

1’565

263

378

1’390

1’943
2’1203

267

392

375

525

199

287

841

2’231

1’204

3’147

the business performance over a multi-year period. Such an adjustment is
in accordance with Swiss GAAP FER, requiring that the related expenses
must be allocated over the program’s vesting period which can lead to ad-
justments within individual fiscal years.

The total variable compensation for the individual members of the
Executive Management for the period under review ranged from 31% to
44% of total compensation.

The CEO’s fixed compensation for the period under review is compara-
ble to the level from the previous fiscal year. The total amount of fixed
compensation for the other members of the Executive Management is
CHF 53’000 less than in the prior-year period. This is because fixed com-
pensation was paid to the CHRO during 9 months only during the report-
ing period The Annual General Meeting of July 3, 2020 approved a total
sum of CHF 2’200’000 (gross, including social insurance contributions)
for the fixed compensation of the entire Executive Management for the
fiscal year 2021. The amount of fixed compensation actually paid (gross,
including social insurance contributions) was CHF 303’000 less than the
approved amount.

The annual bonus for the Executive Management in fiscal year 2021
was CHF 96’000 higher than in the previous year as a result of the higher
net income. Expenses for the Executive Management’s long-term incentive
pay rose by CHF 15’000 from the previous year. The provision made for the
long-term incentive pay has been adjusted based on the assessment of

Annual Report 2021

Burckhardt Compression

Compensation Report

6. OVERVIEW OF SHAREHOLDINGS AND DISTRIBUTED SHARES
6.1. Detailed overview of distributed shares
In the fiscal years 2020 and 2021 the following shares were distributed:

Members of the Board of Directors
Ton Büchner 1
Valentin Vogt2

Urs Leinhäuser

Dr. Monika Krüsi

Dr. Stephan Bross

David Dean

Total

Executive Management

Marcel Pawlicek

Other members of the Executive Management
Total1

Total
1 From July 4, 2020
2 Until July 3, 2020
3 Shares are not allocated or are not distributed under the long-term incentive pay program every year.

Function

Shares distributed
in FY 2021

Shares distributed
in FY 2020

Chairman

Member

CEO

n/a

274

146

412

1’376

3’043

4’419

4’831

6.2. Detailed overview of shareholdings
As per March 31, 2022, the members of the Executive Management and the Board of Directors (and related persons) owned the
following numbers of shares of Burckhardt Compression Holding AG:

Members of the Board of Directors

Ton Büchner

Urs Leinhäuser

Dr. Monika Krüsi

Dr. Stephan Bross

David Dean

Total

Executive Management

Marcel Pawlicek

Rolf Brändli
Sandra Pitt 1

Fabrice Billard

Rainer Dübi
Total

Total Board of Directors and Executive Management

As a % of all outstanding shares
1 Until December 31, 2021

Annual Report 2021

Burckhardt Compression

Function

31.3.2022
Total shares

31.3.2021
Total shares

Chairman

Member

CEO

CFO

CHRO

President Systems Division

President Services Division

5’098

1’758

1’163

393

452

8’864

37’737

1’223

n/a

1’300

824

41’084

49’948

1.5%

5’000

1’714

1’119

349

408

8’590

41’937

2’423

908

1’300

824

47’392

55’982

1.7%

9. EVALUATION OF THE COMPENSATION SYSTEM
Burckhardt Compression’s compensation system is regularly reviewed by
the Nomination and Compensation Committee and the Board of Directors
and may be modified if necessary.

A compensation benchmark based on external salary surveys com-
piled by Willis Towers Watson and presented in its Global 50 Remuneration
Planning Report is one element of the integrated compensation system for
the Executive Management. During the fiscal year 2020 benchmarking was
carried out using this market data; account was also taken of insights from
the market benchmarking carried out in 2019 with 13 listed Swiss industrial
companies.

Compensation Report

TRANSACTIONS WITH THE BOARD OF
DIRECTORS, THE EXECUTIVE MANAGEMENT
AND RELATED PARTIES

No other payments or fees for additional services were paid to the mem-
bers of the Board of Directors or the Executive Management or to related
parties during the fiscal year 2021. No signing bonuses were paid during the
fiscal year 2021. At the reporting date no loans, credit lines, or pension ben-
efits over and above those provided by mandatory occupational pension
plans had been granted to members of the company’s boards.

8. MOTIONS FOR THE ANNUAL GENERAL MEETING
Approval of the maximum aggregate amount of variable com-
8.1.
pensation for the Executive Management for fiscal year 2021
The Board of Directors proposes that an aggregate amount of CHF 1’350’000
(gross, including social insurance contributions and other benefits) be
approved as variable compensation for the Executive Management for
fiscal year 2021.

8.2. Consultative vote on the Compensation Report for fiscal year 2021
The Board of Directors proposes that shareholders approve the Compensa-
tion Report for fiscal year 2021 in a consultative vote.

8.3

Approval of the maximum aggregate amount of fixed compensa-
tion for the members of the Board of Directors for fiscal year 2023
The Board of Directors proposes that a maximum aggregate amount of
CHF 890’000 (gross, including social insurance contributions and other
benefits) be approved as fixed compensation for the Board of Directors for
fiscal year 2023. The proposed amount includes a contingency reserve of
CHF 154’000.

8.4.

Approval of the maximum aggregate amount of fixed compensa-
tion for members of the Executive Management for fiscal year 2023
The Board of Directors proposes that a maximum aggregate amount of
CHF 2’400’000 (gross, including social insurance contributions and other
benefits) be approved as fixed compensation for the Executive Manage-
ment for fiscal year 2023. This is the same amount as approved by the AGM
in 2021 for fiscal year 2022 and includes the fixed remuneration of the new-
ly elected CEO, communicated on November 23rd 2021, starting on April 1,
2022. The proposed sum includes a contingency reserve of CHF 401’000.

Annual Report 2021

Burckhardt Compression

Compensation Report

Report of the statutory auditor

to the General Meeting of Burckhardt Compression Holding AG

Winterthur

We have audited the remuneration report of Burckhardt Compression Holding AG for the year ended 31 March 2022. The
audit was limited to the information according to articles 14–16 of the Ordinance against Excessive Compensation in Stock
Exchange Listed Companies (Ordinance) contained in the tables on pages 83 and 84 of the remuneration report.

Board of Directors’ responsibility

The Board of Directors is responsible for the preparation and overall fair presentation of the remuneration report in accord-
ance with Swiss law and the Ordinance against Excessive Compensation in Stock Exchange Listed Companies (Ordi-
nance). The Board of Directors is also responsible for designing the remuneration system and defining individual remunera-
tion packages.

Auditor’s responsibility

Our responsibility is to express an opinion on the remuneration report. We conducted our audit in accordance with Swiss
Auditing Standards. Those standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the remuneration report complies with Swiss law and articles 14–16 of the Ordi-
nance.

An audit involves performing procedures to obtain audit evidence on the disclosures made in the remuneration report with
regard to compensation, loans and credits in accordance with articles 14–16 of the Ordinance. The procedures selected
depend on the auditor’s judgment, including the assessment of the risks of material misstatements in the remuneration re-
port, whether due to fraud or error. This audit also includes evaluating the reasonableness of the methods applied to value
components of remuneration, as well as assessing the overall presentation of the remuneration report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Opinion

In our opinion, the remuneration report of Burckhardt Compression Holding AG for the year ended 31 March 2022 complies
with Swiss law and articles 14–16 of the Ordinance.

PricewaterhouseCoopers AG

Sandra Böhm Uglow

Audit expert
Auditor in charge

Winterthur, 2 June 2022

Oliver Illa

Audit expert

PricewaterhouseCoopers AG, Bahnhofplatz 17, Postfach, CH-8400 Winterthur, Switzerland
Telefon: +41 58 792 71 00, Telefax: +41 58 792 71 10, www.pwc.ch

PricewaterhouseCoopers AG is a member of the global PricewaterhouseCoopers network of firms, each of which is a separate and independent legal entity.

Annual Report 2021

Burckhardt Compression

Burckhardt Compression Holding AG Winterthur Report of the statutory auditor to the General Meeting on the remuneration report 2022

Financial Report

Financial
Report

Burckhardt Compression Holding
AG’s fiscal year 2021 comprises
the period from April 1, 2021 to
March 31, 2022.

Comments on Financial Report Summary

in CHF 1’000

Order intake

Sales

Gross profit

Operating income (EBIT)

in % of sales

Net income

Total assets

Total equity

Earnings per share attributable to shareholders of
Burckhardt Compression Holding AG (in CHF)

FTEs as of end of fiscal year

Annual Report 2021

Burckhardt Compression

2021

2020

Change
2020/2021

976’559

650’698

190’844

70’336

10.8%

50’399

837’798

242’889

14.82

2’732

676’631

658’580

166’157

60’816

9.2%

47’201

758’093

219’603

13.00

2’538

44.3%

–1.2%

14.9%

15.7%

6.8%

10.5%

10.6%

13.9%

7.7%

Financial Report

SALES AND GROSS PROFIT
Sales in the 2021 fiscal year amounted to CHF 650.7 mn, 1.2% less than in the previous year, with stronger contributions
from China and the Middle East but less sales in the regions Europe and Other Asia & Australia. Excluding the effects
of currency translation and acquisitions, year-on-year sales growth was –2.6%. While Turnover at the Systems Division
of CHF 372.7 mn was 9.1% below the previous year’s figure (no impact from acquisitions), which can be explained by the
weak order intake in the first half year 2020. Sales at the Services Division increased by 11.8% (excluding acquisitions:
10.9%) to CHF 278.0 mn.

Gross profit increased by 14.9% to CHF 190.8 mn, giving a significantly higher gross profit margin of 29.3% (previous
year: 25.2%). The Systems Division reported an increase of 20.7% in gross profit to CHF 71.3 mn, resulting in a gross profit
margin of 19.1% (previous year: 14.4%). Gross profit at the Services Division grew by 11.6% to CHF 119.6 mn (previous year:
CHF 107.1 mn), resulting in a gross profit margin of 43.0%, unchanged from previous year.

OPERATING INCOME
The consolidated operating profit (EBIT) rose to CHF 70.3 mn (previous year: CHF 60.8 mn), yielding an EBIT margin of
10.8% (previous year: 9.2%). Selling, marketing and general administrative expenses amounted to CHF 106.9 mn (10.9% of
order intake, respectively 16.4% of sales), which is CHF 13.8 mn above the previous year, which at that time still included
some COVID-related government subsidies in some countries and less travelling expenses due to travel restrictions. Re-
search and development expenses rose by CHF 4.3 mn to CHF 19.7 mn due to the higher number of projects to develop
innovative applications for new marine solutions and hydrogen mobility and energy. Other operating result amounted to
CHF 6.1 mn, which was CHF 3.0 mn above the previous year, primarily due to some non-recurring effects.

FINANCIAL INCOME AND TAX EXPENSES
Financial expenses increased by CHF 3.1 mn to CHF 4.7 mn, mainly due to negative foreign exchange effects on inter-
company loans without equity character. Income tax expense increased by CHF 3.2 mn to CHF 15.2 mn. The resulting
tax rate increased to 23.2% (previous year: 20.3%), due to the higher share of profit in countries with higher tax rates and
non-refundable withholding tax on internal dividend distribution.

NET INCOME
Group net income increased by 6.8% to CHF 50.4 mn or 7.7% of sales (previous year: 7.2%). Earnings per share attributable
to shareholders of Burckhardt Compression increased from CHF 13.00 to CHF 14.82 (+13.9%).

BALANCE SHEET
The balance sheet total increased by 10.5% to CHF 837.8 mn. Property, plant and equipment slightly increased by 1.8% to
CHF 183.2 mn and inventories by 27.4% to 192.4 mn as per closing date. Trade accounts receivables ended the fiscal year
at CHF 259.0 mn, marginally below the previous year (CHF 260.4 mn). 30.0% of the accounts receivables were overdue
more than 60 days as per year-end (prior year: 28.0%). Trade receivables that are overdue for more than 90 days are main-
ly related to projects in China. The balance between advance payments from customers compared to work in progress
and advance payments to suppliers ended the year at CHF 52.0 mn (previous year: CHF 11.5 mn), as a result of the strong
increase in orders received. The equity ratio increased to 29.0% (previous year: 29.0%) and is thus below the target of
30%. This can be attributed to the increase in the balance sheet total and the offsetting of goodwill from the acquisition
of Mark van Schaick BV against the equity. Total net operating assets lowered by 23.1% compared to the previous year to
CHF 274.5 mn.

CASH FLOW
Cash and cash equivalents increased by CHF 25.6 mn to CHF 101.0 mn in the 2021 fiscal year. Cash flow from operating
activities increased by CHF 2.6 mn to CHF 134.8 mn. The net cash outflow from investing activities was amounting to
CHF –34.1 mn (previous year: CHF –40.3 mn), including CHF –9.5 mn for the acquisition of the shares of Mark van Schaik
BV. Total cash outflow from financing activities was reported at CHF –73.9 mn (previous year: CHF –109.5 mn), includ-
ing the payment of dividends amounting to CHF 22.2 mn. The net financial position (net debt) further improved by CHF
25.6 mn to CHF –56.8 mn (previous year: CHF –82.4 mn).

Annual Report 2021

Burckhardt Compression

Financial Report

Consolidated income statement

in CHF 1’000

Sales

Cost of goods sold

Gross Profit

Selling and marketing expenses

General and administrative expenses

Research and development expenses

Other operating income

Other operating expenses

Operating income

Financial income and expenses

Earnings before taxes

Income tax expenses

Net income

Share of net income attributable to shareholders
of Burckhardt Compression Holding AG

Share of net income attributable to non-controlling interests

Basic earnings per share (in CHF)

Diluted earnings per share (in CHF)

Notes

2021

2020

650’698

–459’854

190’844

–57’188

–49’735

–19’698

23’957

–17’844

70’336

–4’746

65’590

–15’191

50’399

50’244

155

14.82

658’580

–492’423

166’157

–47’997

–45’064

–15’358

21’055

–17’977

60’816

–1’616

59’200

–11’999

47’201

44’034

3’167

13.00

The enclosed notes are an integral part of the consolidated financial statements.

Annual Report 2021

Burckhardt Compression

Financial Report

Consolidated balance sheet

in CHF 1’000

Non-current assets

Intangible assets

Property, plant and equipment

Deferred tax assets

Other financial assets

Total non-current assets

Current assets

Inventories

Trade receivables

Other current receivables

Prepaid expenses and accrued income

Cash and cash equivalents

Total current assets

Total assets

Equity

Share capital

Capital reserves

Treasury shares

Retained earnings and other reserves

Equity attributable to shareholders of Burckhardt Compression Holding AG

Non-controlling interests

Total equity

Liabilities

Non-current liabilities

Non-current financial liabilities

Deferred tax liabilities

Non-current provisions

Other non-current liabilities

Total non-current liabilities

Current liabilities

Current financial liabilities

Trade payables

Customers’ advance payments

Other current liabilities

Accrued liabilities and deferred income

Current provisions

Total current liabilities

Total liabilities

Total equity and liabilities

* Prior period figures for inventories and customers’ advance payments have been restated (see note 2.2).

The enclosed notes are an integral part of the consolidated financial statements.

Annual Report 2021

Burckhardt Compression

Notes

03/31/2022

03/31/2021*

13’460

183’236

16’225

4’077

216’998

192’362

258’983

65’177

3’262

101’016

620’800

837’798

8’500

525

–2’136

235’450

242’339

550

242’889

128’881

11’502

12’920

3’306

156’609

28’925

97’263

162’656

36’131

84’853

28’472

438’300

594’909

837’798

12’351

180’080

14’514

4’005

210’950

151’031

260’395

56’981

3’366

75’370

547’143

758’093

8’500

486

–2’206

212’324

219’104

499

219’603

133’070

11’097

14’485

3’916

162’568

24’726

92’474

92’273

73’817

66’065

26’567

375’922

538’490

758’093

Financial Report

Consolidated cash flow statement

in CHF 1’000

Notes

2021

2020 *

50’399

15’191

4’746

16’775

3’232

–41’350

1’611

–10’837

4’839

70’382

874

30’874

3’911

–2’432

–13’513

134’759

–17’662

520

–5’115

–11’820

–34’077

22’350

–22’640

–

–51’500

–22’152

–73’942

–1’094

25’646

75’370

101’016

25’646

47’201

11’999

1’616

17’476

3’632

51’170

3’906

10’902

–1’448

8’158

4’045

–20’517

6’435

449

–2’365

–10’464

132’195

–17’425

1’226

–2’938

–21’227

–40’364

100’154

–126’109

–3’153

–50’400

–29’954

–109’462

2’682

–14’949

90’319

75’370

–14’949

Cash flow from operating activities

Net income

Income tax expenses

Financial income and expenses

Depreciation

Amortization

Change in inventories

Change in trade receivables

Change in other current assets

Change in trade payables

Change in customers’ advance payments

Change in provisions

Change in other liabilities

Adjustment for non-cash items

Interest received

Interest paid

Income taxes paid

Total cash flow from operating activities

Cash flow from investing activities

Purchase of property, plant and equipment

Sale of property, plant and equipment

Purchase of intangible assets

Acquisition of group companies net of cash acquired

Total cash flow from investing activities

Cash flow from financing activities

Increase in financial liabilities

Decrease in financial liabilities

Purchase of treasury shares

Acquisition of non-controlling interests

Dividends paid

Total cash flow from financing activities

Currency translation differences on cash and cash equivalents

Net change in cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

Net change in cash and cash equivalents

* Prior period figures for inventories and customers’ advance payments have been restated (see note 2.2).

The enclosed notes are an integral part of the consolidated financial statements.

Annual Report 2021

Burckhardt Compression

Financial Report

Consolidated statement of changes in equity

in CHF 1’000

Share
capital

Capital
reserves

Treasury
shares

Hedge
reserve

Translation
reserve

Goodwill
offset

Non-
controlling
interests

Total
equity

Other
retained
earnings

Equity
attributable
to share-
holders of
Burckhardt
Compression
Holding AG

Balance at 04/01/2020

Result for the period

Currency translation
differences

Changes of cash flow hedges

Dividends paid

Changes in treasury shares

Share-based payments
(distributed)

Share-based payments
(provision in equity)
Goodwill on acquisition1
Acquisition of non-controlling interests1

8’500

435

–5’216

–616 –13’315 –121’835 405’529 273’482

44’024 317’506

10’186

374

–3’153

6’163

44’034

3’167 47’201

10’186

308 10’494

374

–20’180 –20’180

–9’774 –29’954

–3’153

–6’214

–

3’907

–24’872

3’907

–24’872

–64’674 –64’674 –37’226–101’900

Balance at 03/31/2021

8’500

486

–2’206

–242

–3’129 –146’707 362’402 219’104

499 219’603

Balance at 04/01/2021

Result for the period

Currency translation
differences

Changes of cash flow hedges

Dividends paid

Changes in treasury shares

Share-based payments
(distributed)

Share-based payments
(provision in equity)
Goodwill on acquisition1

Balance at 03/31/2022

8’500

486

–2’206

–242

–3’129 –146’707 362’402 219’104

499 219’603

–1’905

1’836

50’244

155 50’399

–1’905

1’836

–1’894

1’836

–22’037 –22’037

–115 –22’152

–109

–

4’395

–9’298

–

4’395

–9’298

8’500

525

–2’136

1’594

–5’034 –156’005 394’895 242’339

550 242’889

1 See note 4 “Business Combinations and Other Changes in the Scope of Consolidation”

The enclosed notes are an integral part of the consolidated financial statements.

Annual Report 2021

Burckhardt Compression

Financial Report

Notes to the Consolidated Financial Statements

1. GENERAL INFORMATION
Burckhardt Compression is a manufacturer and service provider for a full range of reciprocating compressor technol-
ogies and services. Its customized compressor systems are used in the gas gathering & processing, gas transport and
storage, refinery, chemical, petrochemical, hydrogen mobility and energy and industrial gas sectors. Burckhardt Com-
pression’s leading technology, broad portfolio of compressor components and the full range of services help customers
around the world to find their optimized solution for their reciprocating compressor systems.

Burckhardt Compression Holding AG is a company limited by shares incorporated and domiciled in Switzerland.
The address of its registered office is: Franz-Burckhardt-Strasse 5, 8404 Winterthur, Switzerland. Burckhardt Compres-
sion registered shares (BCHN) are listed on the SIX Swiss Stock Exchange in Zurich (ISIN: CH0025536027).

Burckhardt Compression Holding AG’s fiscal year 2021 comprises the period from April 1, 2021 to March 31, 2022.
These consolidated financial statements were authorized for issue by the Board of Directors on June 2, 2022 and will be
submitted to shareholders for approval at the annual general meeting scheduled for July 1, 2022.

2. ACCOUNTING POLICIES
2.1 Basis of Preparation
The consolidated financial statements of Burckhardt Compression Holding AG have been prepared in accordance with
the entire Swiss GAAP FER accounting and reporting standards. In addition, the provisions of the Listing Rules of the
SIX Swiss Exchange and Swiss accounting law were complied with. The consolidated financial statements have been
prepared under the historical cost convention unless otherwise stated in the following consolidation and accounting
policies.

2.2 Change in Accounting Policies
Over the current financial year, Burckhardt Compression has successfully achieved a high increase in order volume re-
sulting in significantly higher balances of inventories and customers’ advance payments. Inventories and customers’ ad-
vance payments have been presented gross in the past. Because of this significant increase, Burckhardt Compression has
analyzed the accounting policy on the presentation of these items and has concluded that a net presentation of invento-
ries and customers’ advance payments results in a more transparent and meaningful presentation on the balance sheet.
Therefore, Burckhardt Compression has changed its accounting policy as of March 31, 2022 from a gross presentation of
inventories and customers’ advance payments to a net presentation offsetting customers’ advance payments (without
right of clawback) with inventories on a project by project basis. The net amount reported in the consolidated balance
sheet under customers’ advance payments contains only customers’ advance payments with no related inventories on a
project by project basis. The amounts for the comparative period reported in previously published financial statements
have been restated accordingly.

The impact of the change on the consolidated balance sheet is presented in the table below.

in CHF 1’000

Gross Amounts
Offsetting of customers’ advance payments1

03/31/2022

03/31/2021

03/31/2020

Customers’
advance
payments

Inventories

Customers’
advance
payments

Inventories

266’444

236’738

190’435

131’677

264’479

145’297

74’082

39’404

151’031

39’404

92’273

65’540

198’939

65’540

79’757

Net amounts reported in the consolidated balance sheet

192’362

162’656

1 Contains only customers’ advance payments with related inventories on a project by project basis.

Annual Report 2021

Burckhardt Compression

Financial Report

In addition, Burckhardt Compression has restated the amounts previously reported as changes in inventories and chang-
es in customers’ advance payments in the cash flow statement. The restatement is illustrated in the table below.

in CHF 1’000

Change in inventories

Change in customers’ advance payments

2021

–41’350

70’382

2020

51’170

8’158

2.3 Use of Judgments and Estimates
These consolidated financial statements include estimates and assumptions that affect the reported figures and related
disclosures. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to estimates are recognized prospectively.

2.4 Principles of Consolidation
The consolidated financial statements include all entities where Burckhardt Compression Holding AG has the power to
control the financial and operating policy, usually as a result of directly or indirectly owning more than 50% of the voting
rights. All of the assets and liabilities as well as the income and expenses of these companies are fully included. Non-con-
trolling interests are presented separately in the balance sheet and the income statement. Intercompany transactions,
balances and unrealized gains or losses on transactions between group companies are eliminated. Group companies are
disclosed in note 33.

Acquired companies are fully consolidated from the date on which control was effectively transferred.
When a company is acquired in a step-up acquisition, the existing interest is revalued at the time when the company
is first consolidated. The revaluation of shares previously owned is offset against retained earnings. Companies which
have been divested are included in the consolidated financial statements until the date on which control ceased. Cap-
ital consolidation is based on the acquisition method (purchase method). At the time of the acquisition, all previously
recognized assets and liabilities of the company are initially valued at fair value. Acquisition-related costs are expensed
as incurred. The net assets acquired are compared with the purchase price, and any resulting goodwill is directly offset
against equity. In the notes to the financial statements, the effects of a theoretical capitalization and any impairment are
shown using an amortization period of five years. In the event of a possible subsequent sale, the goodwill offset against
shareholders’ equity at the time of the acquisition is recognized in the income statement against the proceeds of the
sale.

Associates are those entities in which Burckhardt Compression has significant influence, but no control, over the
financial and operating policies. Significant influence is generally presumed to exist when Burckhardt Compression
holds, directly or indirectly, between 20% and 50% of the voting rights. Associates are accounted for using the equity
method. The proportionate share of net income is shown in the consolidated income statement. As of May 31, 2022,
Burckhardt Compression does not hold any Associates.

2.5 Foreign Currency Translation
The consolidated financial statements of Burckhardt Compression are prepared in Swiss francs (CHF).

Foreign Currency Translation at Company Level

Foreign currency transactions are recorded at the exchange rate of the transaction date. Monetary assets and liabilities
which are denominated in foreign currencies are translated at period-end exchange rates. Resulting translation differ-
ences are recorded in the income statement.

Foreign Currency Translation for Consolidation Purposes

Assets and liabilities of foreign subsidiaries are translated into CHF using period-end exchange rates. Average exchange
rates are used for the translation of the income statements. Translation differences arising from the consolidation of
financial statements are recorded as a separate component of equity. Likewise, exchange differences arising on inter-
company loans with equity character are directly recorded in equity.

Annual Report 2021

Burckhardt Compression

Financial Report

Major Foreign Currency Exchange Rates

1 EUR

1 USD

100 CNY

Average rates

Period-end rates

2021

1.07

0.92

14.31

2020

1.08

0.92

13.63

03/31/2022

03/31/2021

1.03

0.92

14.58

1.11

0.94

14.30

Impairment of Assets

2.6
All non-current assets are tested for impairment when indicators exist that the carrying amount of the asset might ex-
ceed its recoverable amount. Where the carrying amount of an asset is higher than the recoverable amount, the asset is
impaired to its recoverable amount. The recoverable amount is the higher of an asset’s fair value less cost to sell and its
value in use. Impairment tests are performed based on discounted cash flows at the level of the corresponding cash-gen-
erating units, representing the lowest level at which such assets are evaluated for recoverability.

Intangible Assets and Goodwill

2.7
Acquired software licenses are capitalized on the basis of the costs incurred to acquire and bring to use the specific
software. The estimated useful life for software generally amounts to three to five years. Internal costs associated with
developing or maintaining software are recognized as an expense as incurred. Other intangible assets are recorded at
acquisition or production costs less accumulated amortization. The amortization expense is calculated on a straight-
line basis over the estimated useful life of the asset. Goodwill resulting from acquisitions is offset against equity at the
date of acquisition. The consequences of a theoretical capitalization and amortization of goodwill (using an amortization
period of five years) are disclosed in note 12.

2.8 Property, Plant and Equipment
Items of property, plant and equipment are stated at cost less accumulated depreciation. They are depreciated on a
straight-line basis over their estimated useful lives. Land is stated at cost and is not depreciated, except land use rights
in China, which are depreciated over their useful lives. The estimated useful lives are as follows:
– Buildings: 20 to 50 years
– Machinery: 5 to 15 years
– Technical equipment: 5 to 10 years
– Other non-current assets: maximum 5 years

2.9 Other Financial Assets
Other financial assets include loans and long-term rental deposits. They are stated at cost less appropriate impairment
losses.

2.10 Inventories
Inventories are stated at the lower of cost or net realizable value. The cost of work in progress and finished goods com-
prises material costs, direct and indirect production costs and other order-related production costs. Inventories are stat-
ed at weighted average costs or standard costs based on their type and use. Valuation allowances are recognized for
slow-moving and excess inventory items.

Inventories are presented net of advance payments received from customers on a project-by-project basis, if they
do not include a right of clawback. Negative contract balances after offsetting are presented as customers’ advance
payments.

Annual Report 2021

Burckhardt Compression

Financial Report

2.11 Trade and Other Current Receivables
Trade receivables and other current receivables are stated at nominal value less valuation allowances for doubtful
amounts. Impairments are assessed case by case. An impairment loss is recognized when there is objective evidence
that Burckhardt Compression will not be able to collect the full amount due, such as substantial financial problems of
the customer or a declaration of bankruptcy.

2.12 Cash and Cash Equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term highly liquid
investments with original maturities of three months or less.

2.13 Financial Liabilities
Financial liabilities mainly consist of bank debts and a bond. They are recognized at their nominal value. Borrowing relat-
ed costs are expensed as incurred in the income statement.

2.14 Provisions
Provisions are recognized for warranty obligations, unprofitable contracts, personnel expenses and various commercial
risks where Burckhardt Compression has an obligation towards third parties arising from past events, the amount of
the liability can be reliably measured and it is probable that the settlement will result in an outflow of resources. The
amount of the provisions is based on the expected expenditures required to cover all obligations and liabilities.

2.15 Treasury Shares
Treasury shares are stated at acquisition cost and deducted from equity. No subsequent valuation is made. If the treasury
shares are disposed of, the resulting gain or loss is recognized as an addition to or a reduction of capital reserves.

2.16 Transactions with non- controlling interests
Transactions with non-controlling interests that do not result in a loss of control are treated as a transaction with
shareholders of Burckhardt Compression. A change in ownership interest results in an adjustment between the carrying
amounts of the controlling and the non-controlling interests. Any difference between the amount of the adjustment
to non-controlling interests and any consideration paid or received is recognised in retained earnings within the equity
attributable to shareholders of Burckhardt Compression. The related cash flows are presented as financing activities in
the cash flow statement.

2.17 Government Grants
Grants from governments or similar organizations are recognized at their nominal value when there is reasonable assur-
ance that the grant will be received, and Burckhardt Compression will comply with all attached conditions.

Government grants related to income are deferred and recognized as income over the period necessary to match
them with the related costs which they are intended to compensate. Government grants related to assets are deducted
directly from the carrying amount of the asset which they are intended to compensate.

2.18 Derivative Financial Instruments
Burckhardt Compression uses derivative financial instruments to mitigate currency risks. The risk management policy
is described in note 3. The derivative financial instruments are recognized at fair value. Where such derivative financial
instruments are linked to specific projected transactions and cash flows, the hedging is deemed to be effective and docu-
mented accordingly, changes in the fair value of the cash flow hedges are recognized in equity as long as the hedged item
has not been recognized on the balance sheet. Otherwise, the gain or loss relating to fair value changes of the derivative
financial instruments is recognized immediately in the income statement as part of other operating income or other
operating expenses.

Annual Report 2021

Burckhardt Compression

Financial Report

2.19 Revenue Recognition
Burckhardt Compression recognizes revenue arising from the sale of goods and the rendering of services upon com-
pletion of the contract, net of sales or value-added taxes, credits, discounts and rebates. Revenue and the related cost
of goods sold are recognized in the accounts when the risks and rewards have passed to the customers subject to the
conditions of sale. The following conditions must be met in this regard:
– Deliveries have been made and/or the service as per contract has been performed.
– A contractually-agreed sales price exists or can be reliably estimated.
– Collection of the payment is reasonably assured.
– The costs (including those yet to be incurred) can be reliably measured.

2.20 Research and Development
Research and development costs are expensed as incurred.

2.21 Income Taxes
Income tax expenses include all income tax on the taxable profits of the group. Deferred income tax is recorded in full us-
ing the liability method. Deferred income tax assets and liabilities arise on temporary differences between the carrying
amounts of assets and liabilities under Swiss GAAP FER and their related tax values. The tax rates and laws enacted or
substantively enacted at the balance sheet date are used to determine deferred income tax. Deferred income tax assets
result from tax loss carry-forwards, tax credits as well as temporary valuation differences of assets and liabilities. They
are recognized to the extent that realization through future taxable profits is probable.

2.22 Off-Balance-Sheet Transactions
Contingent liabilities and other non-recognizable commitments are valued and disclosed on each balance sheet date.

2.23 Share-Based Payments
Share-based payments with compensation through equity instruments are valued at fair value at the grant date. The
corresponding personnel expenses are distributed over the vesting periods.

2.24 Employee Benefits
There are various pension plans within Burckhardt Compression based on local conditions in their respective countries.
An economic obligation is recognized as a liability if the requirements for the recognition of a provision are met under
Swiss GAAP FER. An economic benefit is capitalized provided that Burckhardt Compression is entitled to such benefit in
the future, for example, to offset future pension expenses.

For Swiss pension plans, economic benefits and/or economic obligations are determined on the basis of the annual
financial statements of the pension funds prepared in accordance with Swiss GAAP FER 26. Freely available employer
contribution reserves are recognized as financial asset. For foreign plans, the economic impact is determined according
to country-specific methods.

2.25 Alternative Performance Measures
Alternative Performance Measures are key figures not defined by Swiss GAAP FER. Burckhardt Compression uses al-
ternative performance measures as guidance parameters for both internal and external reporting to stakeholders. For
the definition of Alternative Performance Measures please visit https://www.burckhardtcompression.com/investors/re-
ports-financial-results/key-figures.

Annual Report 2021

Burckhardt Compression

Financial Report

3. FINANCIAL RISK MANAGEMENT

Basic Principles
The goal of the group-wide risk management policy is to minimize the negative impact of changes in the financing struc-
ture and financial markets, particularly with regard to currency fluctuations. Derivative financial instruments such as
foreign exchange contracts may be used to address the respective risks. Burckhardt Compression pursues a conserva-
tive, risk-averse financial policy. Financial risk management is based on according principles and regulations established
by the Management. These govern Burckhardt Compression’s financial policy and outline the conduct and powers of
the group’s treasury department, which is responsible for the group-wide management of financial risks. The financial
principles and regulations govern areas such as financing policy, the management of foreign currency risk, the use of
derivative financial instruments and the investment policy applicable to financial resources not required for operational
purposes.

Liquidity Risks
Each Burckhardt Compression group company is responsible for managing its liquidity so that day-to-day business can
be handled smoothly, while the group treasury is responsible for maintaining the group’s overall liquidity. Some of the
group subsidiaries may secure loans from local creditors within the limits approved by the group management. The
group treasury provides the local group companies with the necessary funds or invests their excess liquidity. The group
treasury maintains sufficient liquidity reserves and open credit and guarantee lines to fulfill the financial obligations at
all times.

The actual and future cash flows and cash reserves are compiled monthly in a rolling liquidity forecast. The Ex-
ecutive Management and the Board of Directors are informed about the liquidity situation and outlook with the regular
financial reporting.

Currency Risks
Burckhardt Compression hedges all major USD-denominated sales transactions of its non-US entities to the extent that
such transactions are not fully or partially naturally hedged. EUR-denominated sales and purchase transactions of the
Swiss company are fairly evenly balanced when viewed over a period of 1–2 years and are therefore, to a certain extent,
naturally hedged at the net profit level over said period. These foreign-exchange flows are regularly monitored by the
group treasury; if there is evidence of a sustained shift in these flows, major sales and purchase transactions will be
hedged on a case-by-case basis. For this, the group treasury normally uses forward exchange contracts. The other com-
panies belonging to Burckhardt Compression group may, after consultation with group treasury, hedge the foreign-ex-
change risks of their sales and purchase transactions through local qualified institutions or group treasury, the objective
being the optimization of the net profit of each group company as reported in its functional local currency. The group
management regularly monitors the changes in the most important currencies and may adjust the hedging policy ac-
cordingly in the future. As a globally active corporation, Burckhardt Compression is also exposed to currency risks re-
sulting from the translation into Swiss francs of items in the balance sheets of the foreign group companies. Burckhardt
Compression does not hedge these translation risks.

Credit Risks
Credit risk in respect of trade receivables is limited due to the diverse nature and quality of the customer base. Such risk
is minimized by means of regular credit checks, advance payments, letters of credit and other tools. There is no concen-
tration of customer-related risks within Burckhardt Compression Group as the most important customers in the project
business, which account for a large share of Burckhardt Compression’s overall business, vary from one year to the next.
In past years Burckhardt Compression experienced no major impairments of receivables.

Credit risks of banks and financial institutions are monitored and managed centrally. Generally, only independently
rated parties with a strong credit rating are accepted, and the total volume of transactions is split among several banks
to reduce the individual risk with one bank.

Annual Report 2021

Burckhardt Compression

Financial Report

Interest Rate Risks
Interest rate risks arise from fluctuations in interest rates which could have a negative impact on the financial position
of Burckhardt Compression. Assets and liabilities at variable rates expose Burckhardt Compression to cash flow interest
rate risk.

Capital Risks
The capital managed by Burckhardt Compression is its consolidated equity. With regard to its capital management poli-
cies, Burckhardt Compression seeks to secure the continuation of its business activities, to achieve an acceptable return
for the shareholders and to finance the growth of the business to a certain extent from own cash flow. In order to achieve
these objectives Burckhardt Compression can adjust the dividend payments, repay share capital, issue new shares or
divest parts of the assets, subject to approval by the general assembly, where applicable.

4. BUSINESS COMBINATIONS AND OTHER CHANGES IN THE SCOPE OF CONSOLIDATION

Mark van Schaick BV (Netherlands)
On December 21, 2021, Burckhardt Compression AG acquired 100% of the shares in Mark van Schaick BV, a company based
in Rotterdam, Netherlands. The company has more than 20 years of experience in machining and is a leader in servicing
complex repairs such as crankshafts.

With the acquisition of Mark van Schaick BV, Burckhardt Compression specifically complements its repair and
service capabilities in Europe and further expands its presence in the service business for reciprocating compressors.
Burckhardt Compression hereby also gains highly specialized machining expertise and repair capabilities for the global
customer base in the maritime and petrochemical industry.

The following table shows the fair value of assets and liabilities acquired at the acquisition date and the goodwill

arising from this transaction.

in CHF 1’000

Property, Plant and Equipment

Inventories

Trade receivables and other receivables

Prepaid expenses and other current assets

Current liabilities

Non-Current liabilities

Net assets/liabilities acquired at fair value

Goodwill from acquisition

Total purchase price

Less cash and cash equivalents acquired

Net cash outflow on acquisition

100

Annual Report 2021

Burckhardt Compression

2’898

955

–3’543

–188

164

9’298

9’462

–

9’462

Financial Report

Shenyang Yuanda Compressor Co. Ltd. (China)
On February 23, 2021, Burckhardt Compression acquired the remaining 40% of the shares of Shenyang Yuanda Compres-
sor Co. Ltd. Together with the already existing interest of 60%, Burckhardt Compression now holds 100% of the Chinese
company.

The purchase price for the remaining 40% amounts to CHF 101.9 mn. The parties have agreed that the purchase
price shall be paid in two installments. CHF 50.4 mn was paid at closing and the remaining CHF 51.5 mn have been paid
on March 11, 2022. Burckhardt Compression recognized CHF 50.4 mn as an acquisition of non-controlling interest in the
cash flow from financing activities. The acquisition led to a reduction of non-controlling interests in the consolidated
statement of equity in the amount of CHF 37.2 mn. The difference of CHF 64.7 mn between the purchase price and the
carrying value of the non-controlling interests was recognized in retained earnings.

The Japan Steel Works Ltd. (Japan)
On April 21, 2020, Burckhardt Compression acquired the global compressor business from the Japan Steel Works Ltd.
(JSW), a Japanese business based in Tokyo, in an asset deal.
With the acquisition of the global compressor business from JSW, Burckhardt Compression is strengthening its market
presence in Japan.

The following table shows the fair value of assets and liabilities acquired at the acquisition date and the goodwill

arising from this transaction.

in CHF 1’000

Inventories

Non-current liabilities

Current liabilities

Net assets/liabilities acquired at fair value

Goodwill from acquisition

Total purchase price

Less cash and cash equivalents acquired

Less deferred consideration

Net cash outflow on acquisition

1 Deferred consideration paid on July 5, 2021

A complete list of all Group companies is shown in note 33.

5. SEGMENT REPORTING

719

–1’794

–212

–1’287

24’872

23’585

–
–2’3581

21’227

Systems Division
Burckhardt Compression’s Systems Division covers a complete range of reciprocating compressor technologies. Its cus-
tomized compressor systems are used in the gas gathering & processing, gas transport and storage, refinery, chemical,
petrochemical, hydrogen mobility and energy and industrial gas sectors. Depending on the customers’ needs, Burckhardt
Compression offers solutions to minimize life cycle costs of the reciprocating compressor systems or solutions to mini-
mize the capital expenditure.

Services Division
Burckhardt Compression’s Services Division is a one-stop provider of a full range of services for reciprocating compres-
sors and stands for top-quality, high-performance components for all makes of reciprocating compressors, as replace-
ment parts, or to repair or upgrade existing installations. Original spare parts backed by Burckhardt Compression’s man-
ufacturing guarantees stand for superior quality and ensure together with various complementary service modules both
low life cycle costs as well as the optimal operation of compressor systems.

101

Annual Report 2021

Burckhardt Compression

Financial Report

Others
Certain expenses related to the corporate center are not attributable to a particular segment. They are reported in
the column “Others”. Furthermore, “Others” includes real estate income and expenses as well as expenses for strategic
projects.

in CHF 1’000

Systems Division

Services Division

Others

Total

2021

2020

2021

2020

2021

2020

2021

2020

Sales

Cost of goods sold

Gross profit

Gross profit as % of sales

Operating income

Operating income as % of sales

372’657

409’793

278’041

248’787

–301’384

–350’731

–158’470

–141’692

71’273

19.1%

21’108

5.7%

59’062

119’571

107’095

14.4%

16’182

3.9%

43.0%

58’353

21.0%

43.0%

51’246

20.6%

–

–9’125

–6’612

–

650’698

658’580

–459’854

–492’423

190’844

166’157

29.3%

70’336

10.8%

25.2%

60’816

9.2%

2021

2020

177’546

4’174

73’603

11’148

49’391

240’334

94’502

650’698

190’129

2’834

74’507

7’206

35’782

214’116

134’006

658’580

2021

2020

9’324

562

3’395

804

14’227

5’127

329

1’072

18’222

639

25’471

Geographic information

in CHF 1’000

Sales by customer location

Europe

Africa

North America

South America

Middle East

China

Other Asia & Australia

Total

in CHF 1’000

Capital expenditure for property, plant and equipment

Europe

Africa

North America

South America

Middle East

China

Other Asia & Australia

Total

102

Annual Report 2021

Burckhardt Compression

Financial Report

6. PERSONNEL EXPENSES

in CHF 1’000

2021

2020

Wages and salaries

Social security and pension expenses

Other personnel expenses

Total personnel expenses

–173’249

–34’758

–19’597

–227’604

–155’630

–31’469

–13’219

–200’318

In the current fiscal year 2021 the personnel expenses did not contain any governmental contributions related to the Co-
rona Virus situation. In the prior year, personnel expenses included governmental contributions from overall six countries
related to the Corona Virus situation in the amount of CHF 8.0 mn.

7. RESEARCH AND DEVELOPMENT EXPENSES

Research and development activities in the fiscal year 2021 focused on the development of products and technologies for
the hydrogen economy. The focus was on standardized compressor packages, sealing technology and solutions for the
online monitoring of the compressors. Additionally, we have strengthened our portfolios for new machines and services
for the off-shore LNG and the PCI market.

8. OTHER OPERATING INCOME AND EXPENSES

in CHF 1’000

Currency exchange gains

Other operating income

Total other operating income

Currency exchange losses

Other operating expenses

Total other operating expenses

Total other operating income
and expenses

2021

7’022

16’935

23’957

–7’683

–10’161

–17’844

2020

8’833

12’222

21’055

–8’562

–9’415

–17’977

6’113

3’078

Other operating income includes real estate income of CHF 6.9 mn (prior year: CHF 6.8 mn).
Other operating expenses include real estate expenses amounting to CHF 3.7 mn (prior year: CHF 4.1 mn).

103

Annual Report 2021

Burckhardt Compression

Financial Report

9. FINANCIAL INCOME AND EXPENSES

in CHF 1’000

Interest expenses

Interest income

Other financial income (+) and expenses (–)

Total financial income and expenses

2021

–3’361

350

–1’735

–4’746

Other financial income and expenses include the exchange rate gains and losses on intercompany loans.

10. INCOME TAXES

Income Tax Expenses

in CHF 1’000

Current income tax expenses

Deferred income tax income (+) and expenses (–)

Total income tax expenses

Reconciliation of Income Tax Expenses

in CHF 1’000

Earnings before taxes

Expected income tax expenses

Effect of non-recognition of tax loss carry forwards

Effect of income tax of prior periods

Effect of changes in tax rates

Effect of Goodwill amortization for tax purposes

Effect of non-deductible expenses/income not subject to tax

Total income tax expenses

as % of earnings before taxes

2021

–16’221

1’030

–15’191

2021

65’590

–14’728

–27

–1’663

–

1’300

–73

–15’191

23.2%

2020

–3’274

653

1’005

–1’616

2020

–14’322

2’323

–11’999

2020

59’200

–13’006

–2’633

–1’000

–

1’591

3’049

–11’999

20.3%

The effective tax rate of Burckhardt Compression Group of 23.2% (prior year: 20.3%) corresponds to the weighted average
tax rate based on the profit before income taxes and the tax rate of each group company. The higher tax rate is mainly
affected by the changed contribution of taxable income from different countries and non-deductible taxes.

104

Annual Report 2021

Burckhardt Compression

Financial Report

Current Income Taxes

in CHF 1’000

Net current income tax liabilities

Balance as per 04/01/2021 / 04/01/2020

Changes in the consolidation scope

Recognized in the income statement

Income taxes paid

Translation differences

Balance as per 03/31/2022 / 03/31/2021

thereof current tax assets

thereof current tax liabilities

Deferred Income Taxes

in CHF 1’000

Net deferred income tax liabilities

Balance as per 04/01/2021 / 04/01/2020

Changes in the consolidation scope

Recognized in the income statement

Recognized in equity

Translation differences

Balance as per 03/31/2022 / 03/31/2021

thereof deferred tax assets

thereof deferred tax liabilities

Tax Loss Carry Forwards

in CHF 1’000

Expiring in the next 3 years

Expiring in 4 years or later

Total tax loss carry forwards

Potential deferred tax assets from tax loss carry forwards

Effect of non-recognized tax loss carry forwards

Effective deferred tax assets from tax loss carry forwards

105

Annual Report 2021

Burckhardt Compression

2021

2020

4’676

–

14’558

–13’513

305

6’026

2’323

8’349

1’944

–

13’322

–10’464

–126

4’676

936

5’612

2021

2020

–3’417

–

–1’030

119

–395

–4’723

16’225

11’502

–893

–

–2’323

–299

–3’417

14’514

11’097

03/31/2022

03/31/2021

2’389

43’457

45’846

10’302

–5’507

4’795

333

42’333

42’666

9’801

–5’480

4’321

Financial Report

11. EARNINGS PER SHARE

in CHF 1’000

2021

2020

Net income attributable to the shareholders
of Burckhardt Compression Holding AG

Average number of outstanding shares

Earnings per share (CHF)

50’244

3’390’572

14.82

44’034

3’386’013

13.00

The average number of outstanding shares is calculated based on the issued shares minus the weighted average number
of treasury shares. There are no conversion rights or option rights outstanding; therefore, there is no potential dilution
of earnings per share.

12. INTANGIBLE ASSETS

Acquisition Costs

in CHF 1’000

Software

Other
intangible
assets

Intangible
assets under
con struction

2021
Total

Software

Other
intangible
assets

Intangible
assets under
con struction

2020
Total

Balance as per 04/01/2021 / 04/01/2020

32’904

685

3’431

37’020

31’992

632

2’106

34’730

Changes in the consolidation scope

Additions

Disposals

Reclassifications

Currency translation differences

Balance as per 03/31/2022 / 03/31/2021

Accumulated Amortization

in CHF 1’000

–

453

–

1’693

–329

34’721

–

–1

687

–

4’659

–731

–1’693

–

5’115

–731

–

–322

–

285

–963

1’303

287

5’674

41’082

32’904

–

685

–

2’623

–

–1’303

–

2’938

–963

–

315

3’431

37’020

Software

Other
intangible
assets

Intangible
assets under
con struction

2021
Total

Software

Other
intangible
assets

Intangible
assets under
con struction

2020
Total

Balance as per 04/01/2021 / 04/01/2020

Changes in the consolidation scope

Additions

Disposals

Reclassifications

Currency translation differences

–24’097

–

–3’187

–

275

–572

–

–45

–

Balance as per 03/31/2022 / 03/31/2021

–27’009

–613

–

–24’669

–21’297

–

–3’232

–3’567

–

279

963

–

–196

–27’622

–24’097

–490

–

–65

–

–17

–572

–

–21’787

–

–3’632

963

–

–213

–24’669

106

Annual Report 2021

Burckhardt Compression

Financial Report

Net Book Value

in CHF 1’000

Software

Other
intangible
assets

Intangible
assets under
con struction

2021
Total

Software

Other
intangible
assets

Intangible
assets under
con struction

2020
Total

As per 04/01/2021 / 04/01/2020

As per 03/31/2022 / 03/31/2021

8’807

7’712

113

3’431

5’674

12’351

13’460

10’695

8’807

142

113

2’106

3’431

12’943

12’351

Goodwill
Goodwill from acquisitions is fully offset against equity at the date of acquisition. The theoretical amortization of good-
will is based on the straight-line method and an amortization period of five years. Goodwill from new acquisitions is fixed
to Swiss francs using the closing rate at acquisition date. Therefore, there are no exchange rate differences in the move-
ment schedules. The impact of the theoretical capitalization and amortization of goodwill is disclosed below.

in CHF 1’000

2021

2020

Acquisition costs

Balance as per 04/01/2021 / 04/01/2020

Additions from acquisitions

Balance as per 03/31/2022 / 03/31/2021

146’707

9’298

156’005

121’835

24’872

146’707

in CHF 1’000

2021

2020

Accumulated amortization

Balance as per 04/01/2021 / 04/01/2020

Amortization expense

Balance as per 03/31/2022 / 03/31/2021

in CHF 1’000

Net book value

–111’589

–10’815

–122’404

–86’506

–25’083

–111’589

2021

2020

Theoretical net book value as per 04/01/2021 / 04/01/2020

Theoretical net book value as per 03/31/2022 / 03/31/2021

35’118

33’601

35’329

35’118

in CHF 1’000

03/31/2022

03/31/2021

Theoretical impact on equity

Equity as per balance sheet

Theoretical capitalization of goodwill

Theoretical equity including net book value of goodwill

242’889

33’601

276’490

219’603

35’118

254’721

in CHF 1’000

2021

2020

Theoretical impact on net income

Net income as per income statement

Amortization of goodwill

Theoretical net income after goodwill amortization

50’399

–10’815

39’584

47’201

–25’083

22’118

107

Annual Report 2021

Burckhardt Compression

Financial Report

13. PROPERTY, PLANT & EQUIPMENT

Acquisition Costs

in CHF 1’000

Land
and
buildings

Machinery
and
equipment

Other
business
assets

Assets
under
con-
truction

2021
Total

Land
and
buildings

Machinery
and
equipment

Other
business
assets

Assets
under
con-
truction

2020
Total

Balance as per 04/01/2021 / 04/01/2020

157’343 134’846

33’617

6’807 332’613

168’706 129’007

30’199

20’188 348’100

Changes in the consolidation scope

Additions

Disposals

Reclassifications

Currency translation differences

–

271

2’957

4’840

–257

–1’122

7’644

–1’042

2’701

–476

–

1’777

–305

–

2’957

–

7’339

14’227

382

2’964

2’839

19’286

25’471

–273

–1’957

–11’842

–7’093

–1’186

–141

–20’262

214

–6’163

4’396

–549

172

–1’895

–1’236

1’333

7’738

2’230

1’145 –32’972

–25’325

620

446

4’629

Balance as per 03/31/2022 / 03/31/2021

163’959 143’746

34’754

7’882 350’341

157’343 134’846

33’617

6’807 332’613

Accumulated Depreciation

in CHF 1’000

Land
and
buildings

Machinery
and
equipment

Other
business
assets

Assets
under
con-
truction

2021
Total

Land
and
buildings

Machinery
and
equipment

Other
business
assets

Assets
under
con-
truction

2020
Total

Balance as per 04/01/2021 / 04/01/2020

–35’356 –94’681 –22’496

– –152’533

–35’226 –90’727 –19’515

– –145’468

Changes in the consolidation scope

Additions

Disposals

Reclassifications

Currency translation differences

–

–4’576

–8’749

–3’450

–

246

992

–

299

271

–

387

–

–16’775

1’271

–

932

–

–4’749

–9’000

–3’727

5’081

6’363

1’028

–

–462

–1’317

–282

–

–17’476

12’472

–

–2’061

Balance as per 03/31/2022 / 03/31/2021

–39’678 –102’139 –25’288

– –167’105

–35’356 –94’681 –22’496

– –152’533

Net Book Value

in CHF 1’000

Land
and
buildings

Machinery
and
equipment

Other
business
assets

Assets
under
con-
truction

2021
Total

Land
and
buildings

Machinery
and
equipment

Other
business
assets

Assets
under
con-
truction

2020
Total

As per 04/01/2021 / 04/01/2020

121’987

40’165

11’121

6’807 180’080

133’480

38’280

10’684

20’188 202’632

As per 03/31/2022 / 03/31/2021

124’281

41’607

9’466

7’882 183’236

121’987

40’165

11’121

6’807 180’080

Relocation Shenyang Yuanda Compressor Co. Ltd (SYCC)
Back in 2018, SYCC started the relocation of its manufacturing and assembly facility, to the newly established China
Germany Equipment Manufacturing Industrial Park, which is also located in the city of Shenyang. The relocation was
completed end of 2020. In the course of this transaction SYCC has purchased and built new PPE and at the same time has
given back existing PPE to the Chinese government. The whole transaction was subsidized by the Chinese government.
Overall SYCC in the period 2018 to 2020 invested more than CHF 30 mn for this project. With the completion of the relo-
cation project back in fiscal year 2020, land use rights, buildings and machinery that were built or acquired in the course
of the relocation have been offset with the granted subsidies by the government (Netting of assets and liabilities; shown
under reclassifications in fiscal year 2020).

108

Annual Report 2021

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Financial Report

14. OTHER FINANCIAL ASSETS

Other financial assets mainly include time deposits.

15. INVENTORIES

The amount presented as inventories as of March 31, 2021 has been restated. Please refer to note 2.2.

in CHF 1’000

03/31/2022

03/31/2021

Raw materials, supplies and consumables

Work in progress

Finished products and trade merchandise

Advance payments to suppliers

Valuation allowance

Total inventories

44’022

82’858

55’517

27’846

–17’881

192’362

36’223

61’183

51’526

19’578

–17’479

151’031

The capital invested in work in progress and advance payments to suppliers is fully financed by advance payments from
customers, leaving a positive balance as of March 31, 2022 of CHF 52.0 mn (prior year: CHF 11.5 mn).

Burckhardt Compression presents inventories and customers’ advance payments on a net basis. The offsetting

impact is illustrated in the table below.

in CHF 1’000

03/31/2022

03/31/2021

Customers’
advance
payments

Inventories

Gross amounts

Offsetting of customers’ advance payments

Net amounts reported in the consolidated balance sheet

266’444

236’738

190’435

131’677

74’082

192’362

162’656

39’404

151’031

39’404

92’273

16. TRADE RECEIVABLES

in CHF 1’000

Trade receivables, gross

Allowance for bad debts

Trade receivables, net

03/31/2022

03/31/2021

274’273

–15’290

258’983

271’098

–10’703

260’395

109

Annual Report 2021

Burckhardt Compression

Financial Report

in CHF 1’000

2021

2020

Allowance for bad debts

Balance as per 04/01/2021 / 04/01/2020

Changes in the consolidation scope

Additions

Release

Utilization

Currency translation adjustments

Balance as per 03/31/2022 / 03/31/2021

–10’703

–

–5’576

952

261

–224

–15’290

–8’911

–

–2’288

934

–474

–10’703

The allowance for bad debts at the end of the 2021 and 2020 fiscal years was entirely related to accounts receivables
which were more than 90 days overdue as per closing date.

in CHF 1’000

03/31/2022

03/31/2021

Maturity profile of trade receivables

Not due

Overdue 1–30 days

Overdue 31–60 days

Overdue 61–90 days

Overdue more than 90 days

Balance as per 03/31/2022 / 03/31/2021

140’546

23’464

17’247

12’409

65’317

258’983

54.3

9.1

6.6

4.8

25.2

100.0

147’068

20’165

20’334

9’957

62’871

260’395

56.5

7.7

7.8

3.8

24.2

100.0

Trade receivables overdue more than 90 days are mainly related to projects in China.

17. OTHER CURRENT RECEIVABLES

in CHF 1’000

Notes receivable

VAT receivables

Derivative financial instruments

Current tax assets

Other current receivables

Total other current receivables

03/31/2022

03/31/2021

12’295

7’483

3’330

2’323

39’746

65’177

9’770

6’151

1’067

936

39’057

56’981

Other current receivables include the outstanding government grants in connection with the relocation project of Shen-
yang Yuanda Compressor Co. Ltd in China (see note 13).

110

Annual Report 2021

Burckhardt Compression

Financial Report

18. SHARE CAPITAL AND TREASURY SHARES

03/31/2022

03/31/2021

Number of shares issued

3’400’000

The nominal value per share amounts to CHF 2.50. All shares are registered shares and are paid in full. The breakdown of
equity into its individual components is shown in the statement of changes in equity.

At the upcoming annual general meeting of shareholders on July 1, 2022, the Board of Directors of Burckhardt

Compression Holding AG will propose a dividend for the 2021 fiscal year of CHF 7.50 (prior year: CHF 6.50).

As of March 31, 2022, non-distributable reserves amounted to CHF 1.7 mn (prior year: CHF 1.7 mn).

03/31/2022

03/31/2021

Number of treasury shares

9’343

9’634

All treasury shares are held for the share-based long-term incentive program within the Burckhardt Compression Group
respectively for the fixed compensation of the board of directors (20% of which paid in shares).

19. FINANCIAL LIABILITIES

in CHF 1’000

03/31/2022

03/31/2021

Non-current financial liabilities

Current financial liabilities

Total financial liabilities

128’881

28’925

157’806

133’070

24’726

157’796

The average effective interest rate amounted to 1.3% in fiscal year 2021 (prior year: 2.0%).

Some credit agreements are subject to financial covenants such as a minimum equity ratio or net financial indebt-

edness to EBITDA. None of the credit lines which are subject to financial covenants were drawn as per March 31, 2022.

Currencies of Financial Liabilities

in CHF 1’000

03/31/2022

03/31/2021

Financial liabilities in CHF

Financial liabilities in USD

Financial liabilities in other currencies

Total financial liabilities

134’988

20’928

1’890

157’806

112’850

32’919

12’027

157’796

111

Annual Report 2021

Burckhardt Compression

Financial Report

Maturities of Non-Current Financial Liabilities

in CHF 1’000

Due within 2 years

Due within 3 years

Due within 4 years

Due within 5 years

Due beyond 5 years

Total non-current financial liabilities

03/31/2022

03/31/2021

586

100’681

198

–

27’416

128’881

920

14’466

100’080

199

17’405

133’070

On September 30, 2020, Burckhardt Compression issued a bond for a total of CHF 100 mn with a coupon of 1.5%. The issue
price was 100% of the nominal value. It will be redeemed at par value on September 30, 2024. The bond is listed on the
SIX Swiss Exchange.

20. PROVISIONS

in CHF 1’000

Employee-
related

Warranties,
penalties,
unprofitable
contracts

Other

2021
Total

Employee-
related

Warranties,
penalties,
unprofitable
contracts

Other

2020
Total

Balance as per 04/01/2021 / 04/01/2020

11’508

26’426

3’118

41’052

8’072

24’792

1’773

Changes in the consolidation scope

Additions

Release

Utilization

–

1’537

–664

195

14’470

–487

–

1’031

–236

195

17’038

–1’387

–

4’497

–197

2’006

5’943

–876

–

3’317

–553

–2’873

–9’185

–2’719

–14’777

–1’003

–5’664

–1’419

Currency translation differences

Balance as per 03/31/2022 / 03/31/2021

–397

9’111

–349

–729

139

225

–

31’070

1’211

41’392

11’508

26’426

3’118

41’052

34’637

2’006

13’757

–1’626

–8’086

364

Thereof non-current

Thereof current

5’271

3’840

7’641

23’429

1’203

12’920

28’472

5’514

5’994

8’784

17’642

187

2’931

14’485

26’567

Employee-related provisions include employee benefit obligations (see note 30), provisions for long-term service awards
and ordinary termination benefits.

21. OTHER NON-CURRENT LIABILITIES

Other non-current liabilities mainly consist of various government grants in China.

112

Annual Report 2021

Burckhardt Compression

Financial Report

22. OTHER CURRENT LIABILITIES

in CHF 1’000

Notes payable

VAT payables

Derivative financial instruments

Current tax liabilities

Other current liabilities

Total other current liabilities

03/31/2022

03/31/2021

9’570

3’987

868

8’349

13’357

36’131

2’128

3’859

717

5’612

61’501

73’817

Other current liabilities mainly consist of various social securities payables as well as various taxes payables such as VAT
or withholding taxes. In the previous year other current liabilities mainly consisted of deferred purchase price payments
for Shenyang Yuanda Compressor Co. Ltd. and the compressor business of the Japan Steel Works Ltd. (see note 4).

23. ACCRUED LIABILITIES AND DEFERRED INCOME

in CHF 1’000

Contract-related liabilities

Vacation and overtime

Salary and bonus payments

Miscellaneous

Total accrued liabilities and deferred income

03/31/2022

03/31/2021

58’451

4’011

14’262

8’129

84’853

44’877

3’179

11’176

6’833

66’065

24. DERIVATIVE FINANCIAL INSTRUMENTS
Burckhardt Compression uses derivative financial instruments to mitigate currency risks. The risk management policy
is described in note 3. On the balance sheet, derivative financial instruments are shown as “Other Current Receivables”
and “Other Current Liabilities”.

in CHF 1’000

Contract value

Positive fair values

Negative fair values

25. CONTINGENT LIABILITIES

03/31/2022

03/31/2021

167’506

3’330

868

125’932

1’067

717

Guarantees
Burckhardt Compression guarantees essentially for securing customer advance payments and for eventual warranty
claims from customers. Guarantees are issued by third-party banks or by Burckhardt Compression Holding AG.

113

Annual Report 2021

Burckhardt Compression

Financial Report

The majority of current customer advance payments as well as major warranty exposures are covered either by a third
party bank guarantees or guarantees issued by Burckhardt Compression Holding AG.

As per March 31, 2022, Burckhardt Compression had issued guarantees in amount of CHF 238.8 mn (prior year:

CHF 181.9 mn).

Other Contingent Liabilities
As of March 31, 2022, Burckhardt Compression does not have any other contingent liabilities.

26. COMMITMENTS

Operating Leases

in CHF 1’000

Operating leases due in less than 1 year

Operating leases due in 1 to 5 years

Operating leases due in more than 5 years

Total operating lease commitments

03/31/2022

03/31/2021

3’132

11’606

5’108

19’846

2’645

10’644

4’752

18’041

Purchase commitments
Purchase commitments for capital expenditure as of March 31, 2022 amounted to CHF 4.7 mn (prior year: CHF 4.4 mn).

27. PLEDGED ASSETS

As of March 31, 2022, Burckhardt Compression had pledged assets with a carrying amount of CHF 91.0 mn (prior year:
CHF 143.2 mn) to secure mortgage loans and guarantees. The pledged assets consisted mainly of land and buildings, and
to a lesser degree of inventories and trade receivables.

28. SHARE-BASED PAYMENTS

Since 2017, there is a long-term incentive plan for the members of the Executive Management and certain other em-
ployees in place. Long-term incentive pay is awarded in the form of free shares. None of the shares are subject to any
restrictions upon the date of transfer.

In 2021, 291 shares at a fair value of CHF 372.50 were granted for the fixed compensation of the board of directors

(20% of which paid in shares).

In 2020, participants of the long-term incentive plan were granted 26’982 shares at a fair value of CHF 230.50.
Personnel expenses in 2021 for share-based payments amounted to CHF 4.4 mn (prior year: CHF 3.9 mn).

29. RELATED PARTY TRANSACTIONS

Except for the remuneration as disclosed in the Compensation Report of this Annual Report, no further relations or
transactions existed in 2021 and 2020 with the members of the Board of Directors, Executive Management or other re-
lated parties.

114

Annual Report 2021

Burckhardt Compression

Financial Report

30. EMPLOYEE BENEFIT OBLIGATIONS

Burckhardt Compression has various pension plans to which most of its employees contribute. With the exception of
companies in Switzerland and Germany, these pension plans are defined contribution pension arrangements. Under
these, as a rule, payments are made into pension funds administered by third parties. Burckhardt Compression has no
payment obligations beyond making these defined contributions.

Burckhardt Compression’s pension plans in Switzerland consist of two independent pension funds: “Sulzer Vorsorge-
einrichtung” (SVE), a base plan for all employees, and “Johann Jakob Sulzer Stiftung” (JJS), a plan for employees with sala-
ries exceeding a certain limit. The majority of the active participants in the two pension funds are employed at companies not
belonging to Burckhardt Compression. The board of trustees for the base plan comprises ten employer representatives and
ten employee representatives of the contributing companies and is responsible for asset allocation and risk management. The
pension plans contain a cash balance benefit formula. Under Swiss law, the pension funds guarantee the vested benefit amount
as confirmed annually to members. Interest may be added to member balances at the discretion of the board of trustees. At
retirement date, members have the right to take their retirement benefit as a lump sum, an annuity or part as a lump sum with
the balance converted to an annuity. The pension funds may adapt the contribution and benefits at any time. In case of under-
funding, this may involve special payments from the employer. The surplus or underfunding cannot be determined per company.
The coverage of the collective plans as a whole as of December 31, 2021 amounted to 126.7% (SVE; prior year: 117.6%) and 127.2%
(JJS; prior year: 115.8%). The technical interest rate used by both collective plans amounted to 1.5% (prior year: 2.0%).

Employer Contribution Reserves
Burckhardt Compression does not have any employer contribution reserves

Economic Benefits/Economic Obligations and Pension Benefit Expenses

in CHF 1’000

Economic portion of
the organization

Change to
prior year period
recognized in the
current result of
the period

Currency
translation
differences

Contributions
of the fiscal year

Pension benefit expenses

03/31/2022

03/31/2021

2021

2020

Pension plans with surplus

Unfunded pension plans

Total

–

–1’773

–

–2’104

–

181

–

150

–8’408

–

–8’408

181

–8’227

–8’119

–83

–8’202

31. IMPACTS OF THE CONFLICT BETWEEN RUSSIA AND UKRAINE

As a consequence of the conflict between Russia and Ukraine, the Board of Directors and the Executive Management
have decided not to accept any new orders from or for Russia effective March 14, 2022. For current projects, Burckhardt
Compression strictly adheres to the applicable export control guidelines and to the applicable sanctions law.

As of March 31, 2022 it was evaluated whether and to what extent the ongoing projects would be affected by the
sanctions in place at that time and to what extent any valuation adjustments would be necessary as a consequence in
the financial statements as of that date. The clarifications confirmed that the majority of the ongoing projects were not
subject to sanctions and therefore no valuation adjustments were necessary for them.

32. EVENTS AFTER THE BALANCE SHEET DATE

On April 27, 2022, further sanctions against Russia were imposed and published by the European Union (EU) which will
likely affect some backlog orders from or for Russia with a possible negative financial impact at EBIT-level of around
CHF 5 – 7 mn for the financial year 2022, if such sanctions are upheld.

115

Annual Report 2021

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Financial Report

33. GROUP COMPANIES AND ASSOCIATES

Company

Registered
office

Registered
capital

Interest
in capital

&
h
c
r
a
e
s
e
R

t
n
e
m
p
o
l
e
v
e
d

g
n
i
r
e
e
n
g
n
e

&
g
n
i
r
u
t
c
a
f
u
n
a
M

g
n
i
t
c
a
r
t
n
o
C

s
e
l
a
S

e
c
i
v
r
e
S

Burckhardt Compression AG 1

Burckhardt Compression Immobilien AG 1

Winterthur,
Switzerland

Burckhardt Compression (Deutschland) GmbH

Neuss, Germany

Burckhardt Compression (Italia) S.r.l.

Milan, Italy

Burckhardt Compression (France) S.A.S.

Burckhardt Compression (España) S.A.

Burckhardt Compression (UK) Ltd.

Cergy Saint
Christophe, France

Madrid, Spain

Bicester,
United Kingdom

Burckhardt Compression (US) Inc.

Houston, USA

Burckhardt Compression (Canada) Inc.

Mississauga, Canada

Burckhardt Compression (Japan) Ltd.

Tokyo, Japan

Burckhardt Compression (Shanghai) Co. Ltd.

Shanghai, China

Burckhardt Compression (India) Private Ltd.

Pune, India

Burckhardt Compression (Brasil) Ltda.

São Paulo, Brazil

Burckhardt Compression (Middle East) FZE

Dubai,
United Arab Emirates

Burckhardt Compression Korea Ltd.

Seoul, South Korea

Burckhardt Kompresör San. ve Tic. Ltd.

Istanbul, Turkey

Burckhardt Compression Singapore Pte Ltd.

Singapore, Singapore

Burckhardt Compression South Africa (Pty) Ltd.

Sunnyrock,
South Africa

Burckhardt Compression Korea Busan Ltd.

Busan, South Korea

Burckhardt Compression (Saudi Arabia) LLC

Burckhardt Compression
North America Service LLC

Dammam,
Saudi Arabia

Wilmington, USA

CSM Compressor Inc.

Edmonton, Canada

116

Annual Report 2021

Burckhardt Compression

CHF
2’000’000

CHF
5’000’000

EUR
30’000

EUR
400’000

EUR
300’000

EUR
550’000

GBP
250’000

USD
18’250’000

CAD
200’000

JPY
50’000’000

CNY
14’238’000

INR
331’140’000

BRL
5’818’000

AED
2’000’000

KRW
250’000’000

TRY
800’000

SGD
700’000

ZAR
3’000’000

KRW
7’000’000’000

SAR
1’000’000

USD
1’800’000

CAD
10’000

•

100%

•

100%

•

100%

•

Financial Report

Company

Registered
office

Registered
capital

Interest
in capital

&
h
c
r
a
e
s
e
R

t
n
e
m
p
o
l
e
v
e
d

g
n
i
r
e
e
n
g
n
e

&
g
n
i
r
u
t
c
a
f
u
n
a
M

g
n
i
t
c
a
r
t
n
o
C

s
e
l
a
S

e
c
i
v
r
e
S

Burckhardt Compression (Netherlands) BV

Rotterdam,
Netherlands

Burckhardt Compression (Sweden) AB

Landvetter, Sweden

Shenyang Yuanda Compressor Co. Ltd.1

Shenyang, China

Liaoning Yuanyu Industrial Machinery Co. Ltd.

Kaiyuan, China

Shenyang Yuanda Compressor
Automatic Control System Co. Ltd.

Compressor Tech Holding AG1

Shenyang, China

Zug, Switzerland

PROGNOST Systems GmbH

Rheine, Germany

PROGNOST Systems Inc.

PROGNOST Machinery Diagnostics
Equipment and Services LLC

Société d’Application du Métal Rouge SAS

Arkos Group LLC

Arkos Field Services, LP

Houston, USA

Abu Dhabi,
United Arab Emirates

Pont Sainte Marie
Cedex, France

Houston, USA

Arkos Realty & Investments, LP

Houston, USA

EUR
18’000

SEK
100’000

CNY
100’000’000

CNY
39’000’000

CNY
5’000’000

CHF
200’000

EUR
200’000

USD
240’000

AED
300’000

EUR
501’000

USD
11’752’000

–

100%

60%

100%

•

Company is directly held by Burckhardt Compression Holding AG.
All other companies are indirectly held by Burckhardt Compression Holding AG.

117

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Financial Report

Report of the statutory auditor

to the General Meeting of Burckhardt Compression Holding AG

Winterthur

Report on the audit of the Financial Report (consolidated financial statements)

Opinion

We have audited the consolidated financial statements of Burckhardt Compression Holding AG and its subsidiaries (the
Group), which comprise the Consolidated income statement for the year ended 31 March 2022, the Consolidated bal-
ance sheet as at 31 March 2022, Consolidated cash flow statement and Consolidated statement of changes in equity for
the year then ended, and Notes to the Consolidated Financial Statements, including a summary of significant accounting
policies.

In our opinion, the consolidated financial statements (pages 90 to 117) give a true and fair view of the consolidated fi-
nancial position of the Group as at 31 March 2022 and its consolidated financial performance and its consolidated cash
flows for the year then ended in accordance with Swiss GAAP FER and comply with Swiss law.

Basis for opinion

We conducted our audit in accordance with Swiss law and Swiss Auditing Standards. Our responsibilities under those
provisions and standards are further described in the “Auditor’s responsibilities for the audit of the consolidated financial
statements” section of our report.

We are independent of the Group in accordance with the provisions of Swiss law and the requirements of the Swiss au-
dit profession and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Our audit approach

Overview

Overall Group materiality: CHF 3'250'000

We concluded full scope audit work and audits of selected account balances at
five reporting units in three countries. Our audit scope addressed over 64% of
the Group's sales.

As key audit matter the following area of focus has been identified:

Accounting for work in progress of the systems division

Materiality

The scope of our audit was influenced by our application of materiality. Our audit opinion aims to provide reasonable
assurance that the consolidated financial statements are free from material misstatement. Misstatements may arise due

PricewaterhouseCoopers AG, Bahnhofplatz 17, Postfach, CH-8400 Winterthur, Switzerland
Telefon: +41 58 792 71 00, Telefax: +41 58 792 71 10, www.pwc.ch

PricewaterhouseCoopers AG is a member of the global PricewaterhouseCoopers network of firms, each of which is a separate and independent legal entity.

118

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119

Burckhardt CompressionAnnual Report 2021 to fraud or error. They are considered material if, individually or in aggregate, they could reasonably be expected to influ-ence the economic decisions of users taken on the basis of the consolidated financial statements. Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall Group materiality for the consolidated financial statements as a whole as set out in the table below. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually and in aggregate, on the consolidated financial statements as a whole. Overall Group materiality CHF 3'250'000 Benchmark applied Profit before tax Rationale for the materiality bench-mark applied We chose profit before tax as the benchmark because, in our view, it is the benchmark against which the performance of the Group is most commonly measured, and it is a generally accepted benchmark. We agreed with the Audit Committee that we would report to them misstatements above CHF 325'000 identified during our audit as well as any misstatements below that amount which, in our view, warranted reporting for qualitative reasons. Audit scope We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the consoli-dated financial statements as a whole, taking into account the structure of the Group, the accounting processes and con-trols, and the industry in which the Group operates. The audit strategy for the audit of the consolidated financial statements was determined taking into account the work performed by the Group auditor and the component auditors in the PwC network. The Group auditor performed the audit of the consolidation, the disclosures and the presentation of the consolidated financial statements. Where audits were performed by component auditors, we ensured that, as Group auditor, we were adequately involved in the audit in order to assess whether sufficient appropriate audit evidence was obtained from the work of the component auditors to provide a basis for our opinion. Our involvement comprised analysing the reporting, communication with the component auditors, communicating the risks identified at Group level and determining the materiality thresholds for the audits performed by component auditors. Report on key audit matters based on the circular 1/2015 of the Federal Audit Oversight Authority Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Accounting for work in progress of the systems division Key audit matter How our audit addressed the key audit matter Burckhardt Compression Group has projects in the sys-tems division, which are accounted for as work in progress in accordance with Swiss GAAP FER. As at 31 March 2022, work in progress in the amount of CHF 82.9 million (mainly related to systems division projects) was recog-nised in the balance sheet. Management estimates the costs to be incurred until their completion, possible penalties as well as net realisable value. This involves significant scope for judgement and an incorrect estimate could have a significant impact on the result for the period. Our audit procedures regarding the accounting for work in progress of systems division projects included in particular the following: • We assessed the design and the existence of the key controls regarding the systems division projects and tested the effectiveness of selected controls. • We selected a sample of systems division projects, based on the contract volumes, the contribution mar-gin and changes in the margin compared to the plan-ning phase, and focused our testing on the following: Financial Report

120

Burckhardt CompressionAnnual Report 2021 Please refer to page 96 (Accounting policies – Inventories) and page 109 (Inventories) in the Notes to the Consoli-dated Financial Statements. • We assessed the contract related calculations to de-termine whether the contractual terms had been rec-orded appropriately. • We discussed with the project controllers and project managers the progress of the projects based on the latest project reports, the costs still to be incurred until their completion and changes in the estimated margin. • We obtained written information from the legal repre-sentatives of the Group. We inspected this written in-formation with regard to indications of potential quality deficiencies or penalties and assessed whether these matters were presented appropriately in the consoli-dated financial statements. • During the audit, we conducted onsite inspections of various compressors still under construction. • For the systems division projects completed during the year under review, we compared various final parame-ters with the estimates made in the planning phase in order to assess, with hindsight, the accuracy of the es-timates made by Management. The results of our audit support the accounting of work in progress of the systems division in the consolidated finan-cial statements. Responsibilities of the Board of Directors for the consolidated financial statements The Board of Directors is responsible for the preparation of the consolidated financial statements that give a true and fair view in accordance with Swiss GAAP FER and the provisions of Swiss law, and for such internal control as the Board of Directors determines is necessary to enable the preparation of consolidated financial statements that are free from mate-rial misstatement, whether due to fraud or error. In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so. Auditor’s responsibilities for the audit of the consolidated financial statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Swiss law and Swiss Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be ex-pected to influence the economic decisions of users taken on the basis of these consolidated financial statements. A further description of our responsibilities for the audit of the consolidated financial statements is located at the website of EXPERTsuisse: http://expertsuisse.ch/en/audit-report-for-public-companies. This description forms part of our audi-tor’s report. Financial Report

121

Burckhardt CompressionAnnual Report 2021 Report on other legal and regulatory requirements In accordance with article 728a paragraph 1 item 3 CO and Swiss Auditing Standard 890, we confirm that an internal control system exists which has been designed for the preparation of consolidated financial statements according to the instructions of the Board of Directors. We recommend that the consolidated financial statements submitted to you be approved. PricewaterhouseCoopers AG Sandra Böhm Uglow Oliver Illa Audit expert Auditor in charge Audit expert Winterthur, 2 June 2022 Financial Report

Financial Statements of Burckhardt
Compression Holding AG, Winterthur

Balance sheet

in CHF 1’000

Notes

03/31/2022

03/31/2021

Current assets

Cash and cash equivalents

Other current receivables due from third parties

Other current receivables due from group companies

Total current assets

Non-current assets

Financial assets

Long-term loans to group companies

Investments in subsidiaries

Total non-current assets

Total assets

Current liabilities

Trade payables due to third parties

Other current liabilities due to third parties

Accrued liabilities and deferred income

Current provisions

Deferred payments

Short-term loans from group companies

Total current liabilities

Non-current liabilities

Loans third parties

Total Non-current liabilities

Equity

Share capital

Legal reserves from retained earnings

Free reserves from retained earnings

Profit brought forward

Net income

Treasury shares

Total equity

Total equity and liabilities

521

625

36’189

273’681

309’870

310’495

944

–

3’724

4’681

100’000

8’500

1’700

194’408

3’342

–2’136

205’814

310’495

275

377

104’020

273’681

377’701

378’078

2’612

121

49’756

1’089

53’588

100’000

8’500

1’700

179’210

37’286

–2’206

224’490

378’078

102

103

104

122

Annual Report 2021

Burckhardt Compression

Financial Report

Income statement

in CHF 1’000

Income

Dividend income from group companies

Interest income from group companies

Income from services provided to group companies

Other operating income

Total income

Expenses

Operating expenses

Other operating expenses

Financial expenses

Direct Taxes

Total expenses

Net income

2021

2020

5’128

856

192

3’807

9’983

–1’552

–3’090

–1’563

–436

–6’641

3’342

39’182

922

192

–

40’296

–2’026

–

–802

–182

–3’010

37’286

Notes to the financial statements
101 ACCOUNTING POLICIES
The financial statements as per March 31, 2022 are in compliance with the requirements of Swiss corporate law.

The financial statements have been prepared in accordance with the provisions of commercial accounting as set

out in the Swiss Code of Obligations (Art. 957 to 963b CO).

The following disclosures are not being made separately in the statutory financial statements pursuant to Art.
961d (1) CO as Burckhardt Compression Holding AG is presenting its consolidated financial statements according to
Swiss GAAP FER:
– Additional disclosures in the notes (auditor’s fee; disclosure on non-current interest-bearing liabilities)
– Cash flow statement
– Management report

The treasury shares are stated at acquisition cost and deducted from equity. No subsequent valuation is made. If the
treasury shares are disposed of, the resulting gain or loss is recognized in the profit and loss statement.

Burckhardt Compression Holding AG uses derivative financial instruments exclusively as hedges of the exposure to
variability in cash flows that is attributable to a particular risk associated with a recognized asset or liability or a highly
probable future transaction (cash flow hedges). At inception of the hedge, Burckhardt Compression Holding AG docu-
ments the hedging relationship and the effectiveness between the hedging instrument and the hedged item.

The derivative financial instruments are off-balance sheet items.
All the values in the annual financial statements are reported in thousand Swiss Francs unless otherwise

indicated.

Burckhardt Compression Holding AG’s fiscal year 2021 comprises the period from April 1, 2021 to March 31, 2022.

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Financial Report

102 SUBSIDIARIES
The equity interests held directly and indirectly by Burckhardt Compression Holding AG are shown in note 33 “Group
Companies”.

103 SHARE CAPITAL AND SHAREHOLDERS
The share capital amounts to CHF 8’500’000 and is composed of 3’400’000 shares, each with a nominal value of
CHF 2.50. All shares are registered shares and are paid in full.

No person will be registered in the Share Register as shareholder with voting rights with respect to more than five
percent of the issued share capital. This entry restriction is also applicable to persons whose shares are totally or par-
tially held by nominees. This restriction is also valid if shares are purchased when practicing subscription, warrant and
conversion rights, with the exception of shares acquired by succession, distribution of inheritance or matrimonial regime.
Legal entities and partnerships associated with each other by uniformly managed capital or votes or in any other way, as
well as private and legal entities or partnerships, which form an association to evade the entry restriction, are regarded
as one person.

Individual persons, who have not expressly declared in the application of entry that they hold the shares for their
own account (Nominees), will be entered in the Share Register with voting rights, if the Nominee concerned establish-
es his/her subordination to an accredited banking supervision and securities authority, and if he/she has concluded an
agreement with the Board of Directors of the company concerning his/her position. Nominees holding two or less than
two percent of the issued shares will be entered in the Share Register with voting rights without an agreement with the
Board of Directors. Nominees holding more than two percent of the issued shares will be entered in the Share Register
with two percent voting rights and, for the remaining shares, without voting rights. Above this limit of two percent, the
Board of Directors may enter in the Share Register Nominees with voting rights if they disclose the names, addresses,
nationality, and shareholdings of the persons for whom they hold more than two percent of the issued shares. As of
March 31, 2022, there is no such declaration between a nominee-shareholder and the board of directors. Shareholder
groups which had existed before June 23, 2006 are excluded from the voting rights restrictions. According to information
available to the company from the disclosure notifications of the SIX Swiss Exchange Ltd., the following shareholders
reported shareholdings of at least 3% of the share capital and voting rights as of March 31, 2022 (according to the statu-
tory bylaws the voting rights of NN Group N.V. and UBS Fund Management (Switzerland) AG are limited to 5% of the total
number of the registered BCHN shares recorded in the commercial register):

Shareholders

03/31/2022

03/31/2021

Name

Country

% of shares

MBO shareholder pool (Valentin Vogt, Harry Otz, Leonhard Keller,
Martin Heller, Ursula Heller, Marcel Pawlicek)

NN Group N.V.

UBS Fund Management (Switzerland) AG

BlackRock, Inc.

Atlantic Value General Partner Limited (Mondrian)

FEDERATED HERMES INC.

12.40

9.86

5.02

3.07

< 3.0

12.40

10.31

3.01

3.04

5.03

3.01

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Financial Report

Detailed overview of shareholdings
As of March 31, 2022, the members of the Executive Board and the Board of Directors (and related persons) owned the
following numbers of shares of Burckhardt Compression Holding AG:

Shareholders

Members of the Management of Directors

Ton Büchner

Urs Leinhäuser

Dr. Monika Krüsi

Dr. Stephan Bross

David Dean

Total

Executive Board

Marcel Pawlicek

Rolf Brändli
Sandra Pitt1

Fabrice Billard

Rainer Dübi

Total

Total Board of Directors and Executive Management

As a % of all outstanding shares

1 until 31. December 2021

104 TREASURY SHARES

in CHF 1’000

Number at the beginning of the period

Purchases

Sales

Number at the end of the period

Function

Chairman

Member

CEO

CFO

CHRO

President Systems Division

President Services Division

2021

9’634

–291

9’343

31/03/2022

31/03/2021

Total shares

5’000

1’714

1’119

349

408

8’590

41’937

2’423

908

1’300

824

47’392

55’982

1.7%

5’098

1’758

1’163

393

452

8’864

37’737

1’223

n/a

1’300

824

41’084

49’948

1.5%

2020

21’616

15’000

–26’982

9’634

The average selling price amounted to CHF 228.56 (2020: CHF 228.57)

125

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Financial Report

105 FURTHER DISCLOSURES PURSUANT TO ARTICLE 959C

PAR. 2 OF THE SWISS CODE OF OBLIGATIONS:

Full-time employees
Burckhardt Compression Holding AG does not employ any employees.

Liabilities to pension funds

in CHF 1’000

03/31/2022

03/31/2021

Total liabilities to pension funds

Net release of undisclosed reserves

in CHF 1’000

03/31/2022

03/31/2021

Net release of undisclosed reserves

Derivative financial instruments

in CHF 1’000

03/31/2022

03/31/2021

Forward foreign exchange contracts
(negative current fair value on cash flow hedge)

Guarantees

in CHF 1’000

Guarantees

03/31/2022

03/31/2021

25’605

9’962

Burckhardt Compression Holding AG issues advance payment guarantees and performance bonds in the name of Burck-
hardt Compression AG and in favor of a small number of selected customers.

The credit lines and guarantee facilities extended to Burckhardt Compression AG by financial institutions do not

require any assets or shares of Burckhardt Compression Holding AG to be pledged as collateral.

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Financial Report

Remuneration of the Board of Directors and the Executive Management
Type and amount of remuneration of the members of the Board of Directors and the Executive Board as well as the prin-
ciples and basic elements of the company’s compensation policy are depicted and explained in the compensation report
on pages 80 to 87.

Events after the balance sheet date
There were no additional events after the balance sheet date which affect the annual results or would require an adjust-
ment to the carrying amounts of Burckhardt Compression Holding AG’s assets and liabilities.

Proposal by the Board of Directors for the appropriation of retained earnings

in CHF 1’000

Retained earnings at the beginning of the period

Distributed dividend

Net income of the year

Total

The Board of Directors proposes the following appropriation

Gross dividend

Retained earnings carried forward

2021

216’446

–22’038

3’342

197’749

–25’500

172’249

2020

199’340

–20’180

37’286

216’446

–22’100

194’346

The Board of Directors will propose payment of a gross dividend of CHF 7.50 per registered share at the Annual General
Meeting of Shareholders on July 1, 2022.

Gross dividend

Less 35% withholding tax

Net dividend

2021

7.50

–2.60

4.90

2020

6.50

–2.30

4.20

2019

6.00

–2.10

3.90

127

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Financial Report

Report of the statutory auditor

to the General Meeting of Burckhardt Compression Holding AG

Winterthur

Report on the audit of the financial statements of Burckhardt Compression
Holding AG, Winterthur (financial statements)

Opinion

We have audited the financial statements of Burckhardt Compression Holding AG, which comprise the balance sheet as
at 31 March 2022, income statement and notes to the financial statements for the year then ended, including a summary
of significant accounting policies.

In our opinion, the financial statements (pages 122 to 127) as at 31 March 2022 comply with Swiss law and the com-
pany’s articles of incorporation.

Basis for opinion

We are independent of the entity in accordance with the provisions of Swiss law and the requirements of the Swiss audit
profession and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Our audit approach

Overview

Overall materiality: CHF 1'500'000

We tailored the scope of our audit in order to perform sufficient work to enable
us to provide an opinion on the financial statements as a whole, taking into ac-
count the structure of the entity, the accounting processes and controls, and
the industry in which the entity operates.

As key audit matter the following area of focus has been identified:

Impairment testing of investments in subsidiaries

Materiality

The scope of our audit was influenced by our application of materiality. Our audit opinion aims to provide reasonable
assurance that the financial statements are free from material misstatement. Misstatements may arise due to fraud or

PricewaterhouseCoopers AG, Bahnhofplatz 17, Postfach, CH-8400 Winterthur, Switzerland
Telefon: +41 58 792 71 00, Telefax: +41 58 792 71 10, www.pwc.ch

PricewaterhouseCoopers AG is a member of the global PricewaterhouseCoopers network of firms, each of which is a separate and independent legal entity.

128

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Financial Report

129

Burckhardt CompressionAnnual Report 2021 error. They are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall materiality for the financial statements as a whole as set out in the table below. These, together with qualitative consider-ations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually and in aggregate, on the financial statements as a whole. Overall materiality CHF 1'500'000 Benchmark applied Total assets Rationale for the materiality bench-mark applied We chose total assets as the benchmark because, in our view, it is a relevant and generally accepted benchmark for holding companies. We agreed with the Audit Committee that we would report to them misstatements above CHF 150'000 identified during our audit as well as any misstatements below that amount which, in our view, warranted reporting for qualitative reasons. Audit scope We designed our audit by determining materiality and assessing the risks of material misstatement in the financial state-ments. In particular, we considered where subjective judgements were made; for example, in respect of significant ac-counting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud. Report on key audit matters based on the circular 1/2015 of the Federal Audit Oversight Authority Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the fi-nancial statements of the current period. These matters were addressed in the context of our audit of the financial state-ments as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Impairment testing of investments in subsidiaries Key audit matter How our audit addressed the key audit matter Investments in subsidiaries is a significant asset category on the balance sheet (CHF 273.7 million). Impairment test-ing of investments whose book value is greater than the book value of the underlying net assets requires Manage-ment to consider the capitalised earnings method or the discounted cash flow (DCF) method. Doing so involves significant scope for judgement, particu-larly to determine the assumptions to use concerning future business results. In identifying the potential need for impairment of invest-ments in subsidiaries, Management uses a predefined im-pairment testing process. Please refer to page 124 (Subsidiaries) in the notes to the financial statements. In our audit of investments in subsidiaries, we performed the following main audit procedures: • We compared the book value of the investments in the year under review with the pro-rata share of the respective company's equity or the compa-ny's valuation, based on an acceptable valuation method. • We assessed the plausibility of the key assump-tions applied by Management (revenue and mar-gin growth, discount rate and long-term growth). We consider the valuation process and the assumptions used to be an appropriate and adequate basis for the im-pairment testing of the investments in subsidiaries as at 31 March 2022. Responsibilities of the Board of Directors for the financial statements The Board of Directors is responsible for the preparation of the financial statements in accordance with the provisions of Swiss law and the company’s articles of incorporation, and for such internal control as the Board of Directors determines Financial Report

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is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Board of Directors is responsible for assessing the entity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of ac-counting unless the Board of Directors either intends to liquidate the entity or to cease operations, or has no realistic al-ternative but to do so. Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from ma-terial misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Swiss law and Swiss Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial statements is located at the website of EXPERT-suisse: http://expertsuisse.ch/en/audit-report-for-public-companies. This description forms part of our auditor’s report. Report on other legal and regulatory requirements In accordance with article 728a paragraph 1 item 3 CO and Swiss Auditing Standard 890, we confirm that an internal control system exists which has been designed for the preparation of financial statements according to the instructions of the Board of Directors. We further confirm that the proposed appropriation of available earnings complies with Swiss law and the company’s articles of incorporation. We recommend that the financial statements submitted to you be approved. PricewaterhouseCoopers AG Sandra Böhm Uglow Oliver Illa Audit expert Auditor in charge Audit expert Winterthur, 2 June 2022 Glossary

GLOSSARY

We use abbreviations frequently in our daily work, so much so that we often don’t even notice them anymore. Here is a
brief glossary of the most common abbreviations.

LNG

LPG

LDPE

EVA

ME-GI

X-DF

Liquefied Natural Gas

Liquefied Petroleum Gas

Low-density polyethylene, soft polyethylene with high chemical resistance, good electrical insulation
properties and good sliding behavior

Ethylene vinyl acetate, plastic with high heat and good aging resistance

dual propulsion system for ships from MAN

dual propulsion system for ships from Win GD

Boil-Off-Gas

Liquid gas that heats up and turns back into gas

OEM

MPR

Original equipment manufacturer

Mid-range Plan

Burckhardt Compression AG
The statements in this review relating to matters that are not historical
facts are forward-looking statements that are not guarantees of future
performance and involve risks and uncertainties, including but not limited
to: future global economic conditions, foreign exchange rates, regulatory
rules, market conditions, the actions of competitors, and other factors
beyond the control of the company.

The Annual Report is published in German and English and is available on
the internet under www.burckhardtcompression.com/financial-reports.
The English version is binding. The financial report is available in English
only.

Publisher
Burckhardt Compression Holding AG, Winterthur

Concept/Design/Publication
Linkgroup AG, Zurich

Photography
Severin Jakob, Zurich
Scanderbeg Sauer, Zurich
iStock, p. 4, 5

PR consultant
PEPR, Oetwil am See

Burckhardt Compression Holding AG
8404 Winterhur
Switzerland
Tel. +41 52 261 55 00
info@burckhardtcompression.com
www.burckhardtcompression.com