Burckhardt Compression Annual Report 2022

FY2022 Annual Report · Burckhardt Compression

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Annual Report
2022

We create leading compression solutions
for a sustainable energy future.

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

ONLINE REPORT
report.burckhardtcompression.com/en

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02 Report section

30 Sustainability

70 Corporate
governance

84 Compensation

report

96 Financial report

Table of contents

Cover:
Burckhardt Compression
workshop in Winterthur,
Switzerland
From left to right: André
Schneider, Head of Assembly;
Veronika Schelling, Hydrogen
Mobility & Energy Lead;
Tsering Netsang, Manager
Design Master Data

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Burckhardt CompressionAnnual Report 2022
At a Glance

New financial records

Fiscal year 2022 marks new historical records
for order intake, sales and operating income.
Both divisions have made strong contributions
to this success.

Order intake
in CHF mn

Sales
in CHF mn

1’268.3

829.7

Operating income
(EBIT)
in CHF mn

95.0

6
6
7
9

6
9.
2
6

3
9.
9
5

6
8
5
6

7
0
5
6

7
8
5
6

3
7.
0
6

6
6
7
6

3
0
7

8
0
6

8
4
5

5
4
4

8
1

9
1

0
2

1
2

2
2

8
1

9
1

0
2

1
2

2
2

8
1

9
1

0
2

1
2

2
2

Net income
in CHF mn

Shareholders’
equity
in CHF mn

Net financial
position
in CHF mn

70.0

261.6

–7.1

0
5
4
3

5
7.
1
3

9
2
4
2

6
9.
1
2

4
0
5

2
7.
4

9
9.
3

2
2
3

8
1

9
1

0
2

1
2

2
2

8
1

9
1

0
2

1
2

2
2

4
9.
4
–

8
1

7
.
1
9
–

9
1

8
6
5
–

4
2
8
–

0
2

1
2

2
2

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Burckhardt CompressionAnnual Report 2022At a Glance

Sustainable growth
40%
40% of our order intake
is supporting the world’s
energy transition.

Renewable electricity
+57%
Our global use of renewable
electricity has increased by 57%

Performance FY2022
Total Shareholder Return FY2022

in %

2
2
r

a
M

2
2
r

p
A

2
2
y
a
M

2
2
n
u
J

2
2

u
J

2
2
g
u
A

2
2
p
e
S

2
2
t
c
O

2
2
v
o
N

2
2
z
e
D

3
2
n
a
J

3
2
b
e
F

3
2
r

a
M

Performance since IPO
Total Shareholder Return 26 June 2006 to 31 March 2023

in %

–10

–20

–30

900

800

700

600

500

400

300

200

100

0.0

+18.5

–6.4

Burckhardt Compression

SPI

+798.8

+150.3

Burckhardt Compression

SPI

6
0
n
u
J

7
0
n
u
J

8
0
n
u
J

9
0
n
u
J

0
1
n
u
J

1
1
n
u
J

2
1
n
u
J

3
1
n
u
J

4
1
n
u
J

5
1
n
u
J

6
1
n
u
J

7
1
n
u
J

8
1
n
u
J

9
1
n
u
J

0
2
n
u
J

1
2
n
u
J

3
2
r

a
M

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Burckhardt CompressionAnnual Report 2022

Milestones 2022

Record
orders

for solar-panel-related applications

We received a record number of orders for our Hyper and Boos t er/
Primary Compressors, which are used for low density polyethyl-
ene (LDPE)/ethylene-vinyl acetate (EVA) production, mainly due
to the growing demand for solar panel production in China and
South Korea. Our compressors create the required high pressure
for EVA to be produced. EVA is then applied to encapsulate the
photovoltaic cells inside the solar panel. In addition, we received
a large number of orders for compressors used in the synthesis
of polysilicon, which is a core component of the solar cells them-
selves.

Glass

EVA film

Solar cell

EVA film

Backsheet

Record order in USA for the
hydrogen mobility and energy
market

Following a first award of two compressors in March
2022, Joule Processing & Plug Power have again
selected Burckhardt Compression to deliver 12 large
hydrogen refrigeration compressors for six hydrogen
liquefaction plants in the USA. These plants will be
able to liquefy a total of 180 tons of hydrogen per day
and will enable Plug Power to support its custo mers
and an existing network of 50’000 fuel cells installed
mostly in forklift trucks.

Net-zero
by 2035

New Mid-Range Plan 2023 to 2027

We communicated our new Mid-Range Plan in Novem-
ber 2022, targeting CHF 1.1 bn in sales and a 12% to
15% operating profit margin in fiscal year 2027. Sustai n -
ability now sits at the core of our strategy, with im-
plications on target markets, R&D projects, CAPEX
investments, operational KPIs and long-term incentive
plans for senior management. This new strategy is a
step forward in achieving our new purpose of creating
leading compression solutions for a sustainable
energy future. We aim, in particular, to achieve 40%
of our order intake from applications that support
the world’s energy transition and to reduce our
greenhouse gas emission intensity by 50% (Scope 1
and Scope 2) by fiscal year 2027. Acknowledging
the scale and urgency of combating climate
change, we have also developed a long-term
commitment and road map to achieve operational
net-zero for our Scope 1 and Scope 2 emissions
by 2035.

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Burckhardt CompressionAnnual Report 2022Celebrating exceptional
team performance

To ensure we recognize and celebrate
our teams’ achievements across the
globe that make all our milestones
and successes possible, we have
launched a global team award pro-
gram. 36 teams have been nominated,
involving over 250 employees from 15
countries. The winning team from Chi-
na has shown exceptional resilience
and performance, delivering services
to customers during the height of the
Covid-19 pandemic.

250

employees nominated

Milestones 2022

Going
wireless

Cost-effective condition monitoring
with PROGNOST®-Wireless
PROGNOST®-Wireless is a new tool in our digital pro d -
uct and services suite that enables customers to ex-
pand their fleet of equipment under condition moni-
toring and predictive maintenance: no more handheld
devices, but instead easy-to-handle, cost-effective
and reliable measuring of important machine values.
The installation of PROGNOST®-Wireless is simple
and inexpensive, making it possible for customers to
include a larger number of machines in the mainte-
nance strategy, or for installation in hazardous areas.

Record order intake for LNG marine
compressors and services

LNG and its transport by ship enable companies and
countries to access secure energy sources. Supporting
this growing need, Burckhardt Compression received
in 2022 a record level of orders for its Laby®-GI com-
pressors and for related services. Thanks to its ab-
sence of methane slippages, our compressor solution
is unique in the market, and upcoming regulations for
CO2 taxes may further benefit the ME-GI/Laby®-GI
solution in the coming years.

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Burckhardt CompressionAnnual Report 2022International

Always
close to our
customers

Customer proximity is one of our success
factors. Burckhardt Compression is
represented on all continents with 36
subsidiaries, 3 manufacturing and
5 assembly sites worldwide.

36subsidiaries worldwide

2’973

employees (FTE)

over 80

countries worldwide with a Burckhardt
Compression presence

Annual Report 2022

Burckhardt Compression

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International
International

Burckhardt Compression
Manufacturing/Assembly
Sites

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
– Hydrogen processing companies
– 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 partnership-based relation-
ship with its customers. In order to understand their needs even better and continuously
improve, both divisions conduct regular customer surveys.

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RubrikBurckhardt CompressionAnnual Report 2022
Letter to Shareholders

Dear Shareholders,

The fiscal year 2022 was a very successful business year for
Burckhardt Compression and confirms that we are on the right
path with our transformation and growth agenda towards a
sustainable energy future.

Despite the challenges stemming from the macroecono m ic
and political environment, we achieved a record-level order
intake of CHF 1.27 bn, exceeding the CHF 1 bn mark for the first time
in Burckhardt Compression’s history. Strong deliveries throughout
the year underpinned sales growth of 27.5% versus the previous year,
rea ching a new record of CHF 829.7 mn, while the focus on opera-
tional excellence supported an improved operating margin of 11.4%
and a new record opera ting income of CHF 95.0 mn. With these
strong results, we achieved our Mid-Range Plan for the period 2018
to 2022, delivering on our stated ambitions to reach CHF 700 mn
in sales and a 10% to 15% operating margin. On the strategic and
operational side, we made significant advances in transforming the
business and developing new growth avenues with the hydrogen
mobility and energy market, made further progress on our digita l-
ization and sustainability agenda, and set a new Mid-Range Plan
for 2023 to 2027, focusing on creating leading compression solutions
for a sustainable energy future.

Well positioned in highly dynamic markets
The events witnessed this and last year have highlighted the com-
plexity and interconnectedness of the global energy system and,
in turn, have led to an increased focus on energy security. We see
our markets developing strongly towards applications which sup-
port the transition to more secure and sustainable energy sourc-
es. Burckhardt Compression’s strong positioning in these markets
continued strengthening and supported the exceptional order
intake of the Systems Division. Our growth was driven by an ex-
ceptional demand for low density polyethylene (LDPE) and eth-
ylene-vinyl acetate (EVA) compressors to support the solar pan-
el industry, exceptional orders for Liquefied Natural Gas (LNG)
applications, and a high growth in the hydrogen mobility and en-
ergy applications. The Services Division also had an exceptional
sales growth of 22%, driven by pent-up demand after Covid-19, an-
ticipated spare parts procurement from customers, a few large re-
vamp projects and by exceptional orders for its PROGNOST(R) digi-
tal product line. From a geographical perspective, China, Korea and
USA have driven the growth of the Group's order intake.

Demonstrating resilience amid ongoing macroeconomic
challenges
The fiscal year 2022 has not been without its challenges, and the
Group continued to see headwinds stemming from the macroeco-
nomic and political environment. Lockdowns in China, ongoing sup-
ply chain tensions and inflationary pressures on energy and specific
material categories continued to present operational challenges.

Annual Report 2022

Burckhardt Compression

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Letter to Shareholders

Our employees’ outstanding commitment, as well as the Group’s
global footprint, resilient service business, strong market positio n ing,
diversified application portfolio and agile global supply network
helped to mitigate and compensate for these challenges.

As a direct result of the war in Ukraine, we have refrained from
accepting any orders from the Russian market since March 2022.
Growth in other markets has more than compensated for the loss of
volume in Russia, and the one-off costs related to the wind-down of
the Russian backlog have been more than offset by profitable sales
growth globally, a favorable product mix in the Systems Division and
strong operational performance.

Strong financials in fiscal year 2022 and significant increase of
dividends proposed
Gross profit was up 28.1% to CHF 244.5 mn, yielding a gross pro fit
margin of 29.5% (previous year: 29.3%). Research & Development
expenses increased by CHF 4.2 mn to CHF 23.9 mn to devel-
op innovative solutions for the marine and hydrogen mobili-
ty and energy markets. Selling, marketing and general admin-
istrative expenses amounted to CHF 117.0 mn or 14.1% of sales
(previous year: 16.4%). Other operating income and expenses
(net) were at CHF -8.6 mn, including non-recurring costs related to
the exit from the Russian market in the amount of CHF 7.1 mn. De-
s pite these one-off costs, the consolidated operating profit (EBIT)
rose substantially by 35.0% to CHF 95.0 mn, corresponding to an
EBIT margin of 11.4% (previous year: 10.8%). Net income of CHF 70.0
mn clearly exceeded the previous year’s fi gure by 38.9%, while earn-
ings per share attributable to Burckhardt Compression Group share-
holders rose likewise by 39.3%, from CHF 14.82 to CHF 20.64.

Value creation was further enhanced, with a Return on Net Operat-
ing Assets (RONOA) substantially increased from 19.7% to 25.7%. The
balance sheet total at the end of March 2023 was at CHF 940.6 mn,
12.3% higher than in the previous year, mainly due to the increase in
advance payments from custo mers and the growth in inventories on
the back of the high order intake. The net financial position at the
end of fiscal year 2022 improved to CHF -7.1 mn (CHF -56.8 mn at the
end of fiscal year 2021). Total equity increased to CHF 261.6 mn
(+18.7 mn), while the equity ratio of 27.8% remained slightly below the
mid-term ambition level of over 30%. Based on these strong results,
the Board of Directors will propose at the Annual General Meeting
a dividend of CHF 12.00 per share, within our overall attractive div-
idend policy of 50% to 70% pay-out ratio and representing an in-
crease of 60% compared with the previous year.

Confidence into 2023 and beyond, with sustainability at the
core of our new strategy
As we enter fiscal year 2023, we do so in a solid financial position
with good momentum in both divisions, a strong team and an am-
bitious plan.

As the world transitions towards more sustainable and secure ener gy
sources, we expect to continue benefiting from our strong position-
ing in related applications. A key ingredient to our success in the past
and the future is our people. We increased our workforce globally by
8.8% to 2'973 FTE and further ramped-up our training and develop-
ment activities to deliver our increased order backlog and achieve
our growth ambitions. In addition, we added bench strength with
two new members of the Executive Management team that bring a
wealth of experience from world-class industrial companies. On April
1st, 2022, Fabrice Billard took over as CEO and was succeeded as
Systems Division President by Andeas Brautsch. In addition, Vanessa
Valentin joined the Executive Management team as Chief Human
Resources Officer.

Guidance for fiscal year 2023
We expect supply chain tensions in certain material categories to
persist in the coming year as well as some uncertainty about the
development of the global economy. However, based on the strong
order intake over the past two fiscal years, we expect sales to reach
between CHF 950 mn and CHF 1'000 mn at the Group level for fiscal
year 2023. Operating margin is expected at a similar level as in fiscal
year 2022, considering no further one-off costs for Russian projects,
an increased share of Systems business in the overall sales mix as
well as a less favorable product mix within the Systems Division.
Within the fiscal year, the second half is expected to be stronger
than the first half due to the distribution of project deliveries.

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Burckhardt CompressionAnnual Report 2022Letter to Shareholders

Mid-Range Plan 2023 to 2027 started
We communicated our new Mid-Range Plan in Novem ber 2022, tar-
geting CHF 1.1 bn in sales and a 12% to 15% ope rating margin in fiscal
year 2027. Sustainability now sits at the core of our strategy, with
implications on target markets, R&D projects, CAPEX investments,
operational KPIs and long-term incentive plans for senior manage-
ment. This new strategy is a step forward in achieving our purpose
of creating leading compression solutions for a sustainable ener-
gy future. We aim, in particular, to achieve 40% of our order intake
from applications that support the world’s energy transition and to
reduce our greenhouse gas emission intensity by 50% (Scope 1 and
Scope 2) by fiscal year 2027 compared to fiscal year 2021. Acknow-
ledging the scale and urgency of combating climate change, we
have also developed a long-term commitment and roadmap to
achieve operational net-zero for our Scope 1 and Scope 2 emissions
by 2035. The achievement of these goals will be supported by inte-
grating sustainability into our operational excellence activities and
continuous investments in innovation and digitalization. On the fi-
nancial side, in addition to the growth and profitability targets, our
ambition is to reach a Return on Net Operating Assets (RONOA) of
more than 25%, and we intend to keep an attractive dividend policy,
with a 50% to 70% payout ratio.

Fabrice Billard, CEO

Ton Bücher, Chairman of the Board of Directors

Thanks
We remain excited about the next steps of our journey and fun-
damentally positive about our markets and ability to transform for
a sustainable energy future. The significant and profitable growth
achieved in fiscal year 2022 showcases our resilience amid on-
going market challenges and demonstrates inherent strength in
our market positioning. We have delivered attractive results sup-
ported by our employees’ commitment and efforts worldwide. Their
dedication remains a critical factor behind our success, and we sin-
cerely thank them on behalf of the Board of Directors and Executive
Management team. We would also like to thank our shareholders
and customers worldwide for their trust and for being part of our
sustainable growth journey.

Kind regards,

Ton Büchner
Chair of the Board of Directors

Fabrice Billard
CEO

Winterthur, June 6, 2023

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Burckhardt CompressionAnnual Report 2022

Key Figures

Key figures

in CHF mn

Total

Order intake

Sales

Operating income (EBIT)

in % of sales

Net income

in % of sales

Return on net operating assets (RONOA)

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)

2022

2021

Change
2022/2021

1’268.3

829.7

95.0

11.4

70.0

8.4

25.7%

911.2

489.7

30.3

6.2

357.1

340.0

75.0

22.1

940.6

27.8

–7.1

20.64

12.0

58.1%

1’931.2

2’973

10.7%

8.0

59’107

4’674

15’396

78’687

976.6

650.7

70.3

10.8

50.4

7.7

19.7%

651.1

372.7

21.1

5.7

325.5

278.0

58.4

21.0

837.8

29.0

–56.8

14.82

7.5

50.6%

1’662.6

2’732

10.1%

8.4

49’928

4’221

13’198

83’810

29.9%

27.5%

35.0%

38.9%

39.9%

31.4%

43.5%

9.7%

22.3%

28.6%

12.3%

39.3%

60.0%

16.2%

8.8%

10.9%

–4.7%

18.4%

10.7%

16.7%

–6.1%

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Burckhardt CompressionAnnual Report 2022

Our Company and Strategy

We create leading com-
pression solutions for a
sustainable energy future

In a dynamic market environment where the transition
towards a new energy economy plays an increasing role,
we have defined a new ambitious strategic plan, with
sustainability at its core. Both divisions are aiming for
substantial growth, especially in applications supporting
the energy transition, and are expected to increase their
profitability.

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Burckhardt CompressionAnnual Report 2022Our Company and Strategy

New purpose and Mid-Range Plan
Mid-Range Plan 2018 to 2022 successfully completed with
pro fitable growth and an attractive market positioning
Our strategy process is based on a Mid-Range Plan, which is de-
fined every five years and reviewed annually. In our last Mid-Range
Plan, which covered the fiscal years from 2018 to 2022, we have
strengthened our leading market position, accelerated our sustai n-
ability journey, and successfully delivered on our stated ambitions to
reach CHF 700 mn in sales and a 10 to 15% operating profit margin.
We have enhanced our positioning in traditional new equipment
and service markets through an unwavering focus on operatio nal
excellence, an increased investment in innovation and selected
acquisitions. Amid the global drive towards energy security and
sustainability, we have established strong positions in new markets,
and we enter the fiscal year 2023 in a solid financial position with
a strong growth momentum and many opportunities ahead of us.

New purpose and new Mid-Range Plan 2023 to 2027
to contribute to a sustainable energy future
We defined our new purpose: “We create lea ding compression solu-
tions for a sustainable energy future.” This sets the guiding star for
our Mid-Range Plan 2023 to 2027. It also provides the basis to-
gether with our refined values and behaviors to nurture and evolve
our leadership and culture. We will con tinue to build an organi-
zation that is customer-oriented, passionate, performance-driv-
en and mindful of its responsibilities towards the environment and
society at large. We will further drive competitiveness through
a continued focus on operational excellence, and innovate
to keep our growth momentum in new, fast-growing markets. We
are also ready to capture external growth opportunities and a
potential market upside when the energy transition accelerates
beyond our Mid-Range Plan assumptions.

2035

We aim to become operational
net-zero for our Scope 1 and Scope 2
emissions by 2035.

Our culture, values, and behaviors guide our actions and create
a great place to work and thrive in
Along with our purpose, we have, with our global leadership teams,
reflected on and revised how our culture, values and behaviors will
evolve to support our growth. Our four values “Partnership”, “Pas-
sion”, “Performance” and “Responsibility” determine our daily de-
cisions and actions; our customers are always at the center of our
considerations and actions. We focus on teamwork and act as
“one” company. We are entrepreneurs with a strategic mindset and
act decisively with a focus on operational excellence and innova-
tion. We love what we do and inspire others with the aim of cre -
a ting a more sustainable energy future for the world. At the heart of
it all we keep ourselves, partners, suppliers, and customers safe. We
foster an inclusive environment where everyone can reach their po-
tential and where integrity and reliability are the basis for the trust
we enjoy among our colleagues, customers, partners, and suppliers.

-50%

We aim to reduce our greenhouse
gas emission intensity by 50%
(Scope 1 and 2) until 2027 compared
to 2021.

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Burckhardt CompressionAnnual Report 2022Our Company and Strategy

Objectives and strategy
Our key objectives 2027: Sustainable, profitable growth
We communicated our new Mid-Range Plan in November 2022,
targeting CHF 1.1 bn in sales and a 12 to 15% operating profit mar -
gin in fiscal year 2027. Sustainability sits now at the core of our
strategy, with implications on target markets, R&D projects, CAPEX
investments, operational KPIs and long-term incentive plans for
senior management. We aim, in particular, to achieve 40% of our
order intake from applications that support the world’s energy
transition and to reduce our greenhouse gas emission intensity by
50% for Scopes 1 and 2 until fiscal year 2027 (compared to 2021).

Acknowledging the scale and urgency of combating climate
change, we have developed a long-term commitment and road-
map to become operational net-zero for our Scope 1 and Scope 2
emissions by 2035. Achieving these goals will be suppor ted by the
integration of sustainability into our operational excellence acti v-
ities and by continuous investments in innovation and digitalization.
On the financial side, in addition to the growth and profitability
targets, our ambition is to reach a Return on Net Operating Assets
(RONOA) of more than 25%, and our intention is to keep an attrac-
tive dividend policy, with a 50% to 70% payout ratio.

Growth in a highly dynamic market environment
Our markets are expected to continue to develop with strong
dynamics on the back of the world's energy transition and a con-
tinuous growth of the world's population. The exact developments
are difficult to predict, but in any scenario identified by the Inter-
national Energy Agency (IEA), the world will need more gases, and
therefore more compressors. We have based our projections on a
middle scenario, and a potential acceleration of the energy mar-
kets towards more secure and sustainable energy sources would
tendentially accelerate our growth.

40%

By 2027, we aim to generate 40%
of our order intake from appli-
cations that support the global
energy transition.

Growth in the global market for hydrogen mobility and energy
In the past two years, we actively participated in the strong growth
in the global hydrogen mobility and energy market. The two Divi-
sions Systems and Services have established our company as one
of the market leaders in this developing market. With our compres-
sion solutions and related services, we are present in the whole
hydrogen value chain, from the hydrogen production to its trans-
portation and storage, and finally its distribution. The long-term po-
tential is considerable, not least because of global efforts to reduce
CO2 emissions and switch to more secure and sustainable energy
sources. To fully exploit this opportunity, we will continue to focus on
innovation, customer partnerships and increasingly rely on digital
products and services.

We are present in the whole
hydrogen value chain.

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New opportunities through upgrades, marine services and
digitalization
Further, new market opportunities arise in supporting existing cus-
tomers in their efforts to reduce energy consumption and green-
house gas emissions by upgrading their plants with modern com-
pression solutions. Addressing this opportunity requires strong
engineering capabilities, where Burckhardt Compression can dif-
ferentiate. In addition, the number of our compressors installed on
ships has increased significantly in the past few years and consti-
tutes a special growth area for our Services Division, which has de-
veloped a strong global platform to serve this demanding market.
Finally, we plan to expand our range of digital customer services
under the UP! Solutions products and services suite, which aims to
increase the reliability and service life of compressors.

Innovation as essential part of our growth strategy
Innovation is at the core of our purpose and is an essential thrust in
our new strategy. We have significantly increased our R&D invest-
ment in the past three years, launched several new products and
developed unique digital services. We will continue to innovate at
a high pace to support our strategy and further strengthen our
competitive position. In particular, new materials and products are
under development for the hydrogen mobility and energy market, as
well as for marine applications. For the Services Division, new com-
ponents are under development with the aim to provide high op-
e r ational reliability, optimal service intervals and easy maintenance –
all with the aim of achieving the lowest possible operating costs for our
customers and increasing the sustainability of our solutions.

With our digital solutions, we can in-
crease the service life of compressors
and extend their uptime.

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Integrated business model
Integrated business model as the key to our success
Most compressors function as critical components of a larger sys-
tem 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. Our two
divisions, Systems and Services, cooperate closely and between
them cover the entire life cycle of reciproca ting compressor sys-
tems. Customers are supported throughout the whole life cycle of
their systems by a wide range of products and services, from pro-
ject definition, project execution, systems installation and commis-
sioning, ongoing service, and spare parts through to the complete
overhaul of their system or even its conversion for a new purpose.
The table below shows the entire life cycle of a compressor project
and displays the interaction between the two divisions in the dif-
ferent project phases:

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

Decision
maker

End customer/
EPC/Licensor

End customer/
EPC

Compressor
installation

Compressor
start-up

Warranty period

Post-warranty

End customer

Project
progression

Decision to build
plant and pur-
chase order

Compressor
shipped & transfer
of ownership

Product
acceptance

Repair & main-
tenance; structural
machine build

Division in
charge

Systems Division

Systems Division
Services Division

Services Division

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Burckhardt CompressionAnnual Report 2022Our Company and Strategy

Key markets
Petrochemical/chemical industry
The petrochemical/chemical industry is one of Burckhardt Com-
pression’s main markets. It covers the production of a vast range of
commodities, which are present in our daily lives, such as lacquers,
synthetic rubbers, adhesives and dyes, solvents, paints, fertilizers,
and textiles. This market is driven primarily by the growing world-
wide demand for products made of plastic, which requires an ex-
pansion of production capacity, combined with a trend towards
greater local added value. The strong growth of the past couple of
years was in particular driven by the need to increase production
capacity for low-density polyethylene (LDPE) and ethylene-vinyl
acetate (EVA), which is used as encapsulant for solar panels. Chem-
ical recycling, which also uses reciprocating compressors, is an ap-
plication that will gain in importance as it conserves resources. In
the petrochemical and chemical in dustry market, companies will
continue their efforts to reduce costs by replacing smaller plants
with larger ones, establishing strategic production sites, and ex-
tending value-added chains.

Gas transport and storage
Gas transport and storage is another key market for Burckhardt
Compression. To store or transport gases, they must be compressed
or liquefied. Gases typically used in this market are Liquefied Nat-
ural Gas (LNG), Liquefied Petroleum Gas (LPG), and Compressed
Natural Gas (CNG). Gas transport in specialized ships offers flexibili-
ty and avoids the geo-political risks associated with a dependence
on pipelines. The process chain supported by Burckhardt Compres-
sion’s compressors and services includes liquefaction, transfer to
the carrier, handling the boil-off gases (BOG) during transport, un-
loading, storage until regasification, and feeding into the consum-
er network. Burckhardt Compression provides unique solutions for
the compression and reliquefication of BOG and fuel gas injection
in two- or four-stroke marine diesel engines, at high or low pres-
sure. It has recently won compressor orders for a significant share in
LNG-powered ships, including commercial and cruise ships, which
increasingly use LNG as fuel to reduce CO2 emissions and meet
stricter environmental regulations.

Hydrogen mobility and energy
Hydrogen mobility and energy is a new and fast-growing mar-
ket for Burckhardt Compression. It is particularly growing in USA,
Europe, China, Middle East, Korea and Japan, where this well-
known molecule is given a significant potential role in the transi-
tion towards more secure and sustainable energies. The energy and
transport industries are indeed increasingly using hydrogen to store
energy and reduce carbon dioxide emissions. Compressors play a
key role in the whole hydrogen value chain and the company has
developed unique solutions for hydrogen production and liquefac-
tion plants, hydrogen fueling stations with high mass flows, trailer
filling and power-to-gas hydrogen production. Hydrogen is also a
core component of green ammonia and e-fuels, which are emerg-
ing markets with significant growth potential.

Burckhardt Compression has
more than 60 years of experience
with hydrogen compression and
offers a broad product range,
including oil-free compressors for
fuel cells applications.

Industrial gas
This market has been growing fast in the past years for Burckhardt
Compression thanks to the increasing demand for polysilicon, which
itself is the consequence of the rising demand for solar panels.
Other industrial gases, such as argon, helium, carbon dioxide, car-
bon monoxide, oxygen, and nitrogen are usually produced in air
separation plants. Their end markets are diverse, encompassing
industries like metalworking and metallurgy, chemical companies,
food manufacturing, glass, pulp and paper manufacturing, elec-
tronics, construction, and healthcare. Market drivers are regional
growth and industry-specific growth.

Refinery
Refineries use distillation and chemical reactions to turn crude oil
into a range of fuels, lubricants, and raw materials for further down-
stream processes. In this market, Burckhardt Compression main-
ly supplies compressors for various hydrogen applications (hydro-
treating, isomerization, hydrocracking, reforming). The compressors
are typically used to clean the raw products and reduce their nitro-
gen and sulfur content. Stricter environmental regulations, facility
expansions and the requirement to process raw products of differ-
ing quality in a single facility are important drivers in this market. In
addition, standard refineries are increasingly converted into biore-
fineries processing biomass.

Gas gathering and processing
The production of marketable natural gas begins with a pre-pro-
cessing at the gas field itself using high-speed compressors. Gas-
es can also be injected into wells to enhance the recovery of oil.
Burckhardt Compression provides onshore and offshore solutions
for these applications.

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Burckhardt CompressionAnnual Report 2022Our Company and Strategy

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 un-
balanced moments and forces, so it can be
used on offshore vessels and installations
where strict guidelines on maximum allow-
able vibration levels on deck structures must
be observed. The unique combination of
labyrinth seal design and tried-and-tes ted
ring seal technology makes Laby®-GI Com-
pressors the solution of choice for both
low-temperature and high-pressure appli-
cations. The proven technology guarantees
maximum efficiency and lowest life cycle
costs without any gas slippages.

Compressor systems
Burckhardt Compression’s reciprocating
compressors lie at the heart of our custom-
ers’ processes.

Laby® – Labyrinth Piston Compressors
The Labyrinth Piston Compressor is unique
with its exceptional level of reliability and
availability. The special labyrinth seal on
pistons and piston rods creates a com-
pletely oil-free, contactless seal. This pre-
vents piston ring debris from contamina t-
ing 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® Compres-
sor 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).

Process Gas Compressors per API 618
We have many years of experience with hy-
drogen compression systems for the refining
industry and now also offer hydrogen com-
pression solutions for hydrogen mobility and
energy applications. Burckhardt Compres-
sion offers non-lubricated and lubricated
Process Gas Compressors, horizontal and
vertical. They are suited in particular to the
high-pressure compression of hydrogen,
hydrocarbon, and corrosive gases. Pro-
cess Gas Compressors built by Burckhardt
Compression are synonymous with unri-
valed availability and long operating lives.
Optimal sizing and the use of top-quality
compressor components and materials en-
sure low operating and maintenance costs.

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

Hyper Compressors
Burckhardt Compression is the world mar ket
leader for Hyper Compressors. The Hyper
Compressor is a high-pressure reciprocat-
ing compressor for low-density polyethylene
(LDPE) and ethylene-vinyl ace tate (EVA)
plants with a discharge pressure of up to
3’500 bar. Burckhardt Compression has es-
tablished an outstanding track record with
nearly 70 years of experience in building
this type of compressor. It is characterized
by a long operational life and high safe-
ty standards, which can be traced to its
unique construction design and Burckhardt
Compression’s global one-stop mainte-
nance and service capabilities. The most
powerful compressor in the world, driven by
a 33’000 kW electric motor and compres-
sion capacity of 400’000 tons of ethylene
a year, was built by Burckhardt Compres-
sion in 2016.

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High-Speed Compressors
High-Speed Compressors are essentially
Process Gas Compressors with shorter strokes
and higher rotational speeds. These com-
pressor systems are used for natural gas
processing and transport applications.

Standard High-Pressure Compressors
Burckhardt Compression’s Standard High-
Pressure Compressors are reciprocating
compressors with a compact design and low
weight. They are delivered skid-mounted
with structural supports that dampen vi-
bration, 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, natural gas and
other non-corrosive gases and gas mixtures
at land facilities and on ships.

Compressor systems and packages
Beyond the compressor itself, we engineer
the complete system in-house to customers'
specifications and use proven and qualified
suppliers. We work together with our
customers' teams to make every project a
success for their business.

Diaphragm Compressors
Diaphragm Compressors compress gas by
means of a flexible membrane. These mem-
branes are usually metallic, have a limited
stroke and are used for smaller gas flows
at high pressure. The advantage of this
technology is that the gas is hermetically
sealed by the membrane during compres-
sion, enabling very high levels of gas pu-
rity. Burckhardt Compression’s diaphragm
compressors are used for hydrogen fueling
stations and for the compression of small
quantities of pure gas for medical and oth-
er purposes.

Our compressor portfolio

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Burckhardt CompressionAnnual Report 2022Our Company and Strategy

Services and components
The Services Division provides a comprehensive range of services,
from simple modifications to extensive retrofit, revamp projects,
and turnkey solutions. It is backed by original equipment manufac-
turer (OEM) parts with high supply readiness and vast engineering
know-how. Experienced field service technicians ensure close in-
teraction with the customer and rapid response. Service Centers
around the world also handle repairs of all brands. Depending
on the size of the project and the construction site, Burckhardt
Compression offers a 24/7 shift operation so that the plants can be
put back into operation even faster. We also provide reliable expert
monitoring and diagnostic solutions and advisory services – all from
a single source.

Comprehensive engineering, revamp, and repair expertise
For operators, the reliability, availability and cost-effectiveness of
reciprocating compressor systems, and their compliance with en-
vironmental and emission regulations, are crucial. Thus, partners
that can offer expertise and sound advice are essential. Burckhardt
Compression stands out thanks to its comprehensive in-house ex-
pertise. A wide range of complementary services are offered for all
brands of reciprocating compressors and their auxiliary systems in
50 service workshops around the world. Our specialists use pro-
prietary, advanced software tools to model, calculate, and opti-
mize reciprocating compressor performance, regardless of make
or brand. A highly motivated team carries out revamp projects of
any complexity to the full satisfaction of customers and can pro-
long 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.

UP! Solutions represent user-friendliness
and maximize productivity through op-
timized uptime and overall cost manage-
ment, resulting in customer success.

Original spare parts for optimal compressor operation
Compressor components, such as valves, seals, and packings are
subject to wear and tear, and therefore largely determine the dura-
tion of service intervals, operational availability and, ultimately, the
overall life cycle costs of reciprocating compressors. Original spare
parts backed by Burckhardt Compression’s full warranty as an ori g -
inal equipment manufacturer (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.

Monitoring and diagnostics – digital service solutions
Under the name UP! Solutions, Burckhardt Compression provides
a range of services that offer significant levels of control and con-
venience and enable its customers to optimize their operations. UP!
Remote Support has been on the market since this reporting per -
iod and offers a remote support solution where customers receive
direct, on-the-job support from the Burckhardt Compression
experts via a tablet or HoloLens.

Reliable condition monitoring and diagnostic systems for re-
ciprocating 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 di-
agnosis detects potential and actual anomalies at an early stage
and thus helps to avoid costly and unexpected downtime. The
diagnostic systems made by our subsidiary PROGNOST Systems
GmbH are designed for use with all types of reciprocating com-
pressors and with many other types of rotating machinery. They are
backed by unrivaled technology and deliver value day after day to
our customers. Finally, the myFleet portal offers a rapid, transparent,
and efficient overview of queries, documentation, and spare parts
for compressors.

Field Service – close to the customer
Geographic proximity and trusting relationships are vital to
Burckhardt Compression’s success. Around 400 experts in Field
Service, from engineers to local site managers, provide a rapid re -
s ponse capability that covers all the necessary skills and are known
for their pronounced service mentality. A local presence simplifies
interaction with the customer, shortens the supply chain and ma x-
imizes uptime. This service network will continue to grow.

Customer trainings
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 our digitalization strategy, online
training has become predominant in the past couple of years.

Around 400 Field Service Experts have
gained their know-how over many years
and have extensive expertise in each
application.

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Burckhardt CompressionAnnual Report 2022Our Company and Strategy

From engineering workshop
to global market leader

1844
Franz Burckhardt opens an
engineering workshop in Basel

1935
Development and sale of the first
Labyrinth Piston Compressor (Laby)
for oxygen compression in steel
production

1951
Manufacture of low-density
polyethylene (LDPE) thermoplastic
using Hyper compressors

2015/19/22
Acquisition of Arkos Field Services,
USA, in two stages; access to a qua l -
ified workforce and service centers
across the USA; in 2022 merger with
Burckhardt Compression US Inc.

1883
Development and sale of the first
single-stage, dry-running recipro-
cating compressor

1890
August Burckhardt founds the
Burckhardt Maschinenfabrik

1913
Delivery of the first compressor for am-
monia 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 labyrinth piston 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 Win-
terthur sites at the Winterthur site

2002
Five members of the manage-
ment board buy out the business
together 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 are 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
in The Netherlands

2021
Market introduction of two com-
pressor ranges for LNG-fueled ships

2021
Launch of high pressure non-
lubricated compressor for hydrogen
mobility and energy

2023
Acquisition and integration of
assets and employees of SPAN
Maintenance and Service Co. Ltd.
in Thailand into the newly founded
subsidiary Burckhardt Compression
(Thailand) Co. Ltd.

Company history

Compressor development

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Burckhardt CompressionAnnual Report 2022Systems Division

Systems
Division

Order intake
in CHF mn

Sales
in CHF mn

Gross profit
in CHF mn

911.2

489.7

96.3

Operating income
(EBIT)
in CHF mn

30.3

4
5
7
3

3
8
8
3

8
9.
0
4

7
2
7
3

1
.
1
5
6

0
8
2
4

6
4
0
4

2
.
1
6
3

3
.
1
7

1
9.
5

8
2
4

5
0
3

8
1

9
1

0
2

1
2

2
2

8
1

9
1

0
2

1
2

2
2

8
1

7
1

0
2

1
2

2
2

1
.
1
2

2
6
1

0
2

1
2

2
2

4
6

9
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 (FTE)

2022

911.2

489.7

96.3

19.7%

30.3

6.2%

1’684

2021

651.1

372.7

71.3

19.1%

21.1

5.7%

1’518

Change
2022/2021

39.9%

31.4%

35.1%

43.5%

10.9%

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Burckhardt CompressionAnnual Report 2022

Systems Division

Exceptionally strong order
intake, growing by

+40%

Annual Report 2022

Burckhardt Compression

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Systems Division

In a challenging market environment affected by trade sanctions
and supply chain disruptions, the Systems Division looks back at a
very successful fiscal year 2022. The division has further expan d-
ed its already strong market position, and reached new historical
records for order intake, sales, gross profit, and EBIT. These results
represent a strong over-achievement compared to the targets de-
fined in the Mid-Range Plan 2018-2022.

Financials
Order intake of the Systems Division stood at CHF 911.2 mn, repre-
senting an increase of 40% after an increase of 61% in the pre vious
year. The division also recorded a substantial increase in sales of
31% to CHF 489.7 mn on the back of the high order intake of the
past two years. Proactive measures to expedite the supply chains
combined with a certain stabilization of global logistics allowed to
deliver large projects in the final weeks of fiscal year 2022, some
of them even ahead of schedule. Gross profit increased by 35% to
CHF 96.3 mn, resulting in a slightly higher gross margin of 19.7%, sup-
ported by the high utilization of production capacities, a favora-
ble product mix and robust project execution. EBIT grew by 44% to
CHF 30.3 mn, owing to higher volumes and slightly improved gross
margins. This resulted in an EBIT margin of 6.2% (previous year: 5.7%),
despite CHF 7.1 mn one-off costs and provisions for write-offs and
other expenses in the context of the exit from the sanctioned Rus-
sian market.

Market developments
The extraordinary order growth was driven by the strong po sition
of the Systems Division in the ecosystem of new market segments,
like the rising solar panel production, Liquefied Natural Gas (LNG)
use in marine applications and in hydrogen mobility and energy
applications. By being a first mover in those market segments,
the division was able to shape the specifications with its cus-
tomers, supporting them towards a technically and economi-
cally optimized solution. In particular, the division won large
orders of non-lube Laby®-GI for LNG carriers as well as Hy-
per and Booster-Primary Compressors for low density polyeth-
ylene (LDPE)/ethylene-vinyl acetate (EVA) production. In the

The hydrogen mobility and energy
continues its rapid growth world-
wide.

hydrogen mobility and energy sector, the growth was driven by the
US and European markets. At the same time, the division defended
its strong market share in established market segments.

Chemical and petrochemical industry
The Systems Division benefited significantly from a strong mar-
ket position in the chemical and petrochemical industry segment,
where an extraordinary high demand for LDPE/EVA compressors
arose in 2022. EVA production capacity in particular is increasing in
support of the solar panel industry, which has been growing glob-
ally. 2022 has most likely been an extraordinary peak for LDPE/EVA
compressor orders, yet the Systems Division will maintain its strong
market share even in a slightly cooled-down market environment.

Gas transport and storage
The order intake in the gas transport and storage segment be n-
efited from a boom of demand for Laby®-GI compressors for LNG
carriers. A significant amount of these orders has been preponed
from fiscal year 2023 and will be delivered over several years. Going
forward, China will become an important market for merchant ship-
ping and LNG carriers, and we will benefit from our strong position
in this country. Finally, the marine LPG application has seen a clear
decrease in fiscal year 2022.

Hydrogen mobility and energy
The hydrogen mobility and energy market continues its rapid growth
worldwide, driven by a fruitful combination of strong political sup-
port, public and private investments, and maturing technologies.
Burckhardt Compression took an early mover position and deve l-
oped the ecosystem with other suppliers and strategic customers
in Europe, USA, and China, thanks to our portfolio of reciprocating
and diaphragm compressors for trailer filling stations, hydrogen re-
fueling stations, and hydrogen liquefaction plants. Our partnership
with Shell New Energies to develop heavy-duty hydrogen refuel l-
ing station compressor systems was reinforced in 2022 with a pilot
project for feed compressors. The strategically important customer
Plug Process Systems (PPS) in the USA trusted us with a significant
order for hydrogen liquefaction plants. We also partnered with Hy-
drogen-Refueling-Solutions (HRS) to supply diaphragm compres-
sors for hydrogen refueling stations in Europe.

Industrial gas
Shenyang Yuanda Compressor gained a strong share of the gro w-
ing compressor market for polysilicon production in China support-
ing the solar panel industry. The rest of the global industrial gas
market remained stable.

Refinery
The refinery market was impacted by a limited number of new pro-
jects announcements, delayed projects, as well as the withdrawal
from the Russian market.

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Burckhardt CompressionAnnual Report 2022Systems Division

Alongside the focus on hydrogen
mobility and energy, we will
strengthen our market share
in low-emission marine fuels and
solar-industry-driven applica-
tions.

Gas gathering and processing
Gas gathering and processing remained active in the period under
review but represents a small share of our total order intake.

Infrastructure and capacity
The increase of the Systems Division’s delivery capacity is a core
priority: Every step along the value chain has been assessed and
required measures for capacity extension have been defined. For
instance, we completed a logistics expansion project, including new
high-bay racking in our Swiss manufacturing facility. Moreover, we
are continuing with our machine-shop upgrades in Switzerland,
which includes a semi-automated machining cell put into operation
for component handling via robot, and 3D-scanning equipment to
replace manual processes. In India, we are expanding our existing
premises with an upgrade of the test beds to increase capacity and
enable the assembly and testing of larger process gas compres-
sors. In Korea, we are building an additional floor on top of the of-
fice building to strengthen our capacities in East Asia. In the USA,
the existing assembly and testing infrastructure is being upgraded
to ramp up capacity and expand the compressor portfolio. Finally,
Shenyang Yuanda Compressor has inaugurated a new testing fa-
cility for diaphragm compressors.

Research and development
The research and development activities of the last fiscal year fo-
cused on solutions for new markets, as well as on the improvement
of the competitiveness of our existing portfolio. For the hydrogen
market, we have extended our product portfolio with heavy-
duty, high-pressure solutions for trailer filling. We have launched
new products for the LNG marine markets, especially addressing
the growing demand for LNG-powered merchant ships. Finally, we
have upgraded some of our solutions for the petrochemical market,
further strengthening our technology leadership in this segment.

Outlook
In recent years, the Systems Division has reinforced its position as a
market leader and has clearly exceeded its Mid-Range Plan targets
for 2022. Going forward, the energy transition presents many new
opportunities. While the speed of the transition remains uncertain,
Burckhardt Compression is intrinsically hedged for all scena rios,
with strong positions in both traditional and new applications. By
fiscal year 2027, we aim to reach 40% of our order intake from appli-
cations that support the world's energy transition and are prepared
to capture a potential upside when the energy transition towards a
net-zero scenario accelerates.

The Systems Division will maintain its share in traditional markets
whilst growing stronger in new markets. Alongside the focus on
hydrogen mobility and energy, the fastest-growing segment, we
will streng then our market share in low-emission marine fuels and
solar-industry-driven applications. From a regional perspective,
we will maintain our leading position in China and accelerate our
growth in the USA and East Asia. We will realize this transforma-
tion by building on customer partnerships, technological leadership,
and a strong regional service presence.

Strong sales growth is expected in an early phase of the Mid-Range
Plan, on the back of the exceptionally high order volume of the past
two years. From an operational perspective, delivering on this is a
key priority and will be supported by leveraging the existing facto-
ries and supply chain, via flexible project allocation between sites.

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Burckhardt CompressionAnnual Report 2022Services Division

Services
Division

Order intake
in CHF mn

Sales
in CHF mn

Gross profit
in CHF mn

357.1

340.0

148.2

Operating income
(EBIT)
in CHF mn

75.0

5
5
2
3

1
.
2
7
2

1
.
6
4
2

7
0
3
2

0
8
7
2

3
.
1
4
2

8
8
4
2

9
3
2
2

6
9.
1
1

2
5
0
1

0
7.
0
1

1
7.
0
1

2
8
5

7
4
5

2
.
1
5

4
8
5

8
1

9
1

0
2

1
2

2
2

8
1

9
1

0
2

1
2

2
2

8
1

9
1

0
2

1
2

2
2

8
1

9
1

0
2

1
2

2
2

in CHF mn

Order intake

Sales

Gross profit

in % of sales

EBIT

in % of sales

Headcount at end of fiscal year (FTE)

2022

357.1

340.0

148.2

43.6%

75.0

22.1%

1’275

2021

325.5

278.0

119.6

43.0%

58.4

21.0%

1’198

Change
2022/2021

9.7%

22.3%

23.9%

28.6%

6.4%

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Burckhardt CompressionAnnual Report 2022

Services Division

The Services Division suc-
ceeded in significantly in-
creasing its sales, driven by
spare parts, revamp and
repair solutions and digital
products.

+22%

Annual Report 2022

Burckhardt Compression

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05.06.23 18:44

Services Division

Continuing its successful growth strategy, the Services Division
reached new historical records for order intake, sales, gross pro f-
it and EBIT in fiscal year 2022. All regions have participated to this
success and these results come close to the targets defined in the
Mid-Range Plan 2018-2022.

Financials
The Services Division grew its order intake by 10% to CHF 357.1 mn in
fiscal year 2022 and recorded a strong sales increase of 22% (21%
net of the acquisition of Mark van Schaick) to CHF 340.0 mn. Gross
profit grew by CHF 28.6 mn to CHF 148.2 mn, resulting in a gross
margin of 43.6%, similar to the previous year (43.0%). EBIT strongly
increased by 29% to CHF 75.0 mn thanks to higher sales, yielding
an EBIT margin of 22.1%, which is 1.1 percentage points above the
previous year. In the course of fiscal year 2022, Arkos Field Services
(USA) was merged with Burckhardt Compression US Inc., after
generating an EBIT margin of around 5%.

Market developments
The demand for complete solutions, on-site services, monitoring,
and diagnostics was very strong in fiscal year 2022. This growth
was mainly driven by Asia, Europe, and the USA. Asia-Pacific grew
across products and applications and benefited from a large,
newly installed base. In Western Europe, we grew thanks to large
turn around projects and considerable marine service interventions,
which more than compensated the negative effects linked to the
war in Ukraine. The exit of the Russian market was more than off-
set by an exceptionally high level of activity in Eastern Europe and
by growth in the Middle East. The US market gained from positive
market indicators mainly in gas gathering and processing as antici-
pated. One additional driver for our growth was the marine business
with new, long-term service agreements won during the year. In this
and other markets, we are benefiting from a clear trend among cus-
tomers seeking not just a supplier, but a competent partner that
can offer a full range of services.

With around 400 Field Service
Representatives around the globe,
we are ready to cover almost
all needs in an appropriate time.

Spare Parts
Growth continued during the reporting period, thanks to an in-
creasing installed base and a growing number of customer frame
agreements.

Engineering/revamp/repair solutions
Substantially increased selling activities resulted in significant or-
ders received from European and Asian customers. Thanks to the
ongoing relaxation of Covid-19 restrictions, we were able to make
better use of our capacity. The trend for long-term service con-
tracts is continuing, and the requirement for complex engineering
solutions for complete on-site overhauls (turnaround projects) rein -
for ces this segment further. In the revamp business, the need for
lower emission solutions opened up new opportunities.

Field Service
Highly skilled and professional field service technicians offer a va-
riety of services to cover local requirements. With about 400 Field
Service Representatives around the globe, we are ready to cover
almost all needs in an appropriate time. This segment profi ted from
the tendency of installation services being ordered toge ther with
new compressor systems, as well as from the relaxation of Covid-19
restrictions, especially in China.

Digital products and services
We achieved a record order intake for PROGNOST® monitoring
products and services in fiscal year 2022. We further developed
our digital services for connected compressors to support custom-
ers with predictive maintenance. In close collaboration with key
customers, we achieved positive results with first pilot applications,
such as UP! Remote Support and in the development of algorithms
for failure prediction.

Customer satisfaction
Through the “Voice of Customer” initiative, we received more than
1’000 customer feedback responses, which will help to improve
the way we provide services. One area of improvement is “conve-
nience”. To make it easier for customers to work with us, we have
further developed our customer portal solution, which can be used
to order parts, ask for support, and see installed assets including
drawings. Another important element for facilitating collabora-
tion are the long-term service agreements, which clarify the spirit
of partnership between the customer and ourselves, with defined
terms and conditions, and scope of supply.

Annual Report 2022

Burckhardt Compression

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05.06.23 18:44

Outlook
The strategic focus of our Mid-Range Plan 2023 to 2027 is to
strengthen our core business by becoming a full-service provider
for gas compression solutions, improving coverage of the installed
base, and increasing our presence in the USA, Asia and selected
white spots. At the same time, we will expand our marine service
offering.

We will further improve our process efficiency and realize our
digitalization potential, while increasing our spare parts perfor-
mance. We will globalize our components production for Burckhardt
Compression and other brand compressors and leverage our sel l-
ing, general, and administrative expenses.

We are transforming and building new growth avenues by
developing a network and organization to service the hydrogen
mobility and energy market and marine customers. We will grow
service offe rings addressing customers’ operational excellence and
sustain ability agendas, develop new business models and offerings
inclu ding digital solutions, and enhance our business foundations
by fostering EOHS (Environment, Occupational Health, and Safety)
and a service culture.

Services Division

We are transforming and building
new growth avenues by developing
a network and organization to ser-
vice the hydrogen mobility and ener-
gy market and marine customers.

Infrastructure and capacity
We invested in service capabilities in China and built new service
workshops in France, Turkey, and Singapore. We also strengthened
our presence in Asia by integrating the acquired assets and the em-
ployees of SPAN Maintenance and Service Co. Ltd. into the newly
esta blished subsi diary Burckhardt Compression (Thailand) Co. Ltd.
as of April 1st, 2023. In France, we purchased the land and building
of Société d’Application du Métal Rouge (SAMR), and plan further
investments in the machine park to increase capacity for sliding
bearings.

Acquisitions
With the complete integration of Arkos Field Services in the USA, and
merging the legal entity with Burckhardt Compression US Inc. as of
January 1st, 2023, we now have one BCUS organization consisting
of Systems and Services under one legal entity. We have stream-
lined the local set-ups, sold the Houma Service Center in Louisiana,
and have integrated its service business in our new Service Center
in New Iberia. The integration of the business of Mark van Schaick
BV was successfully completed and renamed in Burckhardt Com-
pression (Nederland) BV.

Research and development
In May 2022, UP! Remote Support was released for sale, to support
customers even better and faster on site. The new service provides
clear benefits such as fast support by eliminating travel time, eas-
ier access to expert know l edge, shorter machine downtime, and
reduced operating costs. First orders for UP! Remote Support were
recorded. In fiscal year 2022, we also introduced the new product
PROGNOST®-Wireless, a cost-effective wireless sensor add-on for
condition monitoring of a large number of equipment.

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Burckhardt CompressionAnnual Report 2022Sustainability Report

Sustainability

«Sustainability is an integrated
part of our new strategy, and a key
to creating leading compression
solutions for a sustainable energy
future.»

Fabrice Billard,
CEO

Online-AR
report.burckhardtcompression.com/
sustainability-report

Annual Report 2022

Burckhardt Compression

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Sustainability Report

Ambitious sustainability targets for our Mid-Range Plan 2023–2027
and a net-zero commitment for Scope 1 and Scope 2 emissions by 2035

We have reached another milestone by embedding sustainability into our business strategy with our new
Mid-Range Plan 2027. Sustainability is now deeply rooted in our new purpose and a key pillar for the business
strategies of both divisions. To underline our commitment, we have defined eight key sustainability targets
for 2027, one for each material topic.

–50%

Greenhouse gas
emission intensity*
2021: 2.1 kg CO2e/h

> 75%

Share of renewable
electricity*
2021: 23%

+100%

Revamp + upgrades
activities in Services
2021: 100 (Index)

≥ 80%

Engagement Score
in employee survey**
2020: 79%

< 0.7

Lost Time Injury Rate
below 0.7 each year
2021: 1.1

Incidents related to
product safety
2021: 0

40%

Order intake supporting
the energy transition
2021: 16%

Incidents on corruption or
anti-competitive behavior
2021: 0

* Excluding the Shenyang foundry, where we rely on renewable grid electricity or technological developments to achieve our ambitions.
**Based on current survey methodology.

Annual Report 2022

Burckhardt Compression

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Sustainability Report

On a strategic path
to a sustai nable
organization

Our holistic approach to sustainability con-
siders our beneficial and adverse impacts
on the economy, society, and the environ-
ment, as well as the opportunities and risks
that arise for our company in return.

We have rooted sustai n -
ability deeply in our
core business and our
organization with our
new Mid-Range Plan.

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Burckhardt CompressionAnnual Report 2022n

s Divisio
n techn olo
ustaina ble
y future

m
e
t
s
y
S

sio
a s
s
e
r
p
m
o
C

r
o
f

rg
e
n
e

v
i

ain

sust

i
l
i

o
n

m
e

r
s

Customer

v
a

u
e
s

Grou p
i t y i n
Sustainabi l
organizat i o n
and supply c h a i n

Three main strategic directions guide us on our
journey.

Creating leading compression technology for a
sustainable energy future
The world has to meet a growing demand for
energy while mastering the trilemma of energy
security, environmental sustainability, and ener-
gy equity. Our compression technology plays a
key role in different areas of a sustainable energy
future and the transition towards it. Compressors
are needed to expand the production of solar
panels, support energy security through versatile
energy transportation options such as Liquefied
Natural Gas (LNG), or enable scalable use of
hydrogen as a future energy carrier.

Supporting our customers on their
sustainability journey
Increasingly, our customers are embarking on
a sustainability journey, just as we are. With our
products and services, we can support our cus-
tomers on this path. When it comes to energy
efficiency or reduction of gas leakages, we can
realize significant savings together with our cus-
tomers, since around 99% of the greenhouse gas
footprint of a compressor comes from the use
phase. If we consider the approximately 70’000
existing industrial-sized reciprocating compres-
sors in the world, our potential positive impact is
substantial.

Integrating sustainability in our organization
and the supply chain
As a global industrial technology company with
close to 3’000 employees (FTE), we have the ca-
pabilities and the commitment to contribute to
a sustai nable development. We have integrated
sustai nability in our core strategy, our new Mid-
Range Plan. We also recognize our responsibility
to exer cise our due diligence obligations in the
supply chains and uphold our product responsi-
bility. The largest sustainability potentials for our
company lies in our eight material topics as out-
lined in this Sustainability Report.

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Sustainability ReportBurckhardt CompressionAnnual Report 2022

Sustainability Report

Systems Division

Compression
technology for a
sustainable future

Compressors are critical components in
several areas of the energy transition
and therefore a decisive building block
for its success.

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Burckhardt CompressionAnnual Report 2022Our compressors are a key component in
a wide range of applications related to
power generation, transport, and supply.

Glass

EVA film

Solar cell

EVA film

Backsheet

Applications on the journey towards a sustai nable
energy future include hydrogen, biodiesel, ammo-
nia, solar energy, Liquefied Natural Gas (LNG),
and others. In recent years, three applications in
particular have contributed to our fast growth.

Enabling the expansion of solar power
Burckhardt Compression’s technology is used in
two steps of solar cell production. First, a solar
panel usually contains a thin, transparent plas-
tic film made from ethylene-vinyl acetate (EVA)
encapsulating the solar cell. This layer needs to
have good radiation transmission properties and
demonstrate low sunlight degradation. EVA is
produced with a chemical reaction at more than
3’000 bar, requiring some of the largest com-
pressors available in the world, and for which
Burckhardt Compression is a leader. The second
step requiring our compressors is the production
of polysilicon, which is the core of the solar cell.

Empowering hydrogen as an energy carrier
Our equipment has been compressing hydrogen
for decades, but the importance of this molecule
as a key building block of a sustainable energy
future gives it entirely new dimensions. There are
several critical components to make hydrogen a
viable and economical option such as the elec-
trolyser, the compressor, its motor, and the dis-
penser in fuel stations. We have stand-out tech-
nology for scaling hydrogen compression, which
will be an important step toward an economic use
of this gas.

Making LNG accessible as a transitional energy
Liquefied Natural Gas (LNG) is an important com-
ponent of the global energy supply as a short-
and medium-term bridge energy for replacing
coal or as a fuel for marine applications, replacing
carbon-intensive heavy fuel oil until zero-emis-
sions solutions are available. Our compression
technology is used, for example, in re-liquefaction
processes, boil-off-gas handling, or for providing
fuel gas to modern dual-fuel engines.

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Sustainability ReportBurckhardt CompressionAnnual Report 2022Sustainability Report

Services Division

Energy efficiency
for our customers

Our compressors are used mostly in indus-
trial and energy supply processes. Savings
and improvement measures that we achieve
with our customers have a multiplier effect
due to the long operating hours and service
lives.

We were able to success-
fully implement various
revamp and upgrade
services for our customers.

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Burckhardt CompressionAnnual Report 2022Contributions to the sustainable
development goals (SDGs)

SDG 7
Enabling energy savings
through efficiency gains.

SDG 13
Reduction of CO2 emissions
resulting from energy savings.

SDG 12
Extension of service life for
wear parts.

Considerable energy and wear part savings
achieved
With the overhauled compressor solution, we
were able to facilitate several sustainability ben-
efits for our customer. In addition to an improved
uptime of the compressor, internal leakages could
be eliminated, and a nominal gas flow restored.
The service life of the wear parts was exten ded,
thus reducing maintenance costs. Looking at the
energy balance, an approximate efficiency gain
between 500-1’000 MWh per year could be re-
alized. This corresponds to the annual electricity
consumption of around 150 to 250 average Swiss
households.

A path away from shutdowns and wasteful
energy consumption
In the past fiscal year, we enabled significant ef-
ficiency gains for one of our customers, a glob-
al chemicals company. Two vertical Process Gas
Compressors equipped with another brand’s rings
were facing challenges with extensive leakages,
reduced gas flow, temperature issues, and a very
short lifetime of wear parts. This led to frequent
compressor shutdowns and wasteful energy con-
sumption.

Our thorough system integrity analysis provid-
ed the basis for our repair and overhaul meas-
ures. We upgraded the piston and packing rings
to Persisto® 850, a leading material that we de-
veloped for dry-running reciprocating compres-
sors. Further, we repaired the piston rods, applied
an enhanced coating, and refurbished the pack-
ing and other components at our local Service
Center.

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Sustainability ReportBurckhardt CompressionAnnual Report 2022Sustainability Report

Sustainability
Report 2022

Our sustainability roadmap is fully integra-
ted in our Mid-Range Plan 2027. It follows
a strategic approach, is focused on eight
material topics, and has a firmly anchored
governance.

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Burckhardt CompressionAnnual Report 2022Our Strategic Approach
We create leading compression solutions for a sustainable energy
future and aspire to incorporate economic, environmental, and so-
cial aspects into our business activities and decisions. Burckhardt
Compression is an industrial technology company specializing in re-
ciprocating compression solutions for all types of gases. With a com-
pany history stretching back over 179 years and products with a useful
life of 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.

Strategic focus on eight material topics
In our sustainability approach, we focus on eight material top-
ics, which we identified by analyzing our impacts on the economy,
environment, and society. These eight material topics build our
framework and the core of our sustainability roadmap.

Burckhardt Compression is committed to supporting the Sustain-
able Development Goals (SDGs) as defined by the United Na-
tions. These SDGs address the world’s most pressing sustainability
challenges and are to be achieved as part of Agenda 2030
for Sustainable Development. 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 con-
tribute.

Strategic sustainability framework

Tackling
climate change

Promoting
prosperous work

Driving energy
transition

Environmental im

G H G emissions
& climate
change

cts of a

Energ
f cie

y u

i n e ss conduct

t
i

Valuing
natural resources

Sustainability Roadmap

nal health & s a fe t y

o rki n
c o n diti o

atio

p
u
c
c
O

ct
y
u
t
d
fe
o
a
r
P
s

Safeguarding
human health

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Sustainability ReportBurckhardt CompressionAnnual Report 2022

Our senior leaders play a key role in achieving our goals, which is
why sustainability is now part of the remuneration in the form or
our long-term incentive plan. Our 2027 target to reduce our green-
house gas emission intensity by 50%* (2021: 2.1 kg CO2e/h) is one of
three key performance indicators for the long-term incentive of our top
management.

We developed a commitment to net-zero greenhouse gas
emissions by 2035 which goes beyond our Mid-Range Plan target
for 2027. We follow a 1.5°C climate aspiration in reference to the
Paris Climate Agreement for our Scope 1 and Scope 2 emissions.
In addition, we are committed to reducing our Scope 3 emissions.

Overarching due diligence on human rights and international
environmental standards
The focus on our material topics and sustainability ambitions in-
cludes an overarching due diligence approach. We acknowledge
the responsibility to respect internationally recognized human rights
and international environmental standards, which is also defined in

our Code of Conduct. We incorporate the precautionary principle
into our activities and decision-making, such as the consideration
of environmental requirements in product design, the considera-
tion 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
Compression taps into its suppliers’ experience to continuously im-
prove its products, because an important part of the value crea-
tion 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 factories, 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.

Through our 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.

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 & efciency

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 workers 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
c
o
S

y
m
o
n
o
c
E

* Excluding the Shenyang foundry where we rely on renewable grid electricity
or technological developments to achieve our ambitions.

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Sustainability ReportBurckhardt CompressionAnnual Report 2022Sustainability Report

We conduct checks on-site or when goods arrive to ensure obser-
vance of specifications and verify this by reviewing the required
audit reports. We adopted a policy on conflict minerals and initi-
ated a risk-identification process for child labor and other human
rights risks. In the reporting period we also updated our supplier
assessment process, including sustainability, which we will roll out
in fiscal year 2023.

Burckhardt Compression commits to
net-zero emissions in its operations by 2035

We follow a 1.5° C climate aspiration in reference to the Paris
Climate Agreement for our Scope 1 and 2 emissions. In addition,
we are committed to also reduce our Scope 3 emissions. Our road-
map to operational net-zero emissions is built on four key pillars:

Decoupling business growth from emission growth through avoidance
and savings programs

Conversion to renewable electricity (by 2027: 75% renewable electricity
without foundry)

Reduction of Scope 1 emissions until 2035 through savings and replacement

Counterbalance any remaining emissions through carbon removal

2035 business as
usual assumption

2021
(Baseline)

Net-zero

2035

Our Material Topics
1. Greenhouse gas emissions and climate change

Topic lead: President Systems Division
Target: Reduce greenhouse gas emission intensity for Scope 1 and 2 by 50%.*
(2021: 2.1 kg CO2e/h)

Tackling climate change is one of the most pressing global chal-
lenges. 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 in-
ternational 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.

Burckhardt Compression recognizes its responsibility and the
potential to reduce its greenhouse gas emissions across the entire
value chain. Our activities and technology make an increasing con-
tribution to combating climate change and to supporting Sustai n -
able Development Goal 13: Climate action.

The majority of the emissions associated with our business ac-
tivities arises in the use phase of our compressors due to their long
lifetime of 30 to 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 car-
bon footprint and optimize emissions during the use phase of the
compressors. We focus on three key areas:
– Reduction of the company’s carbon footprint
– Optimization of the impact of our inbound and outbound

logistics

– Improvement of the carbon footprint of compressors

Reduction of greenhouse gas emissions during the use phase of our
compressor systems is an integral part of our product and innova-
tion management. With our services, we help our customers reduce
emissions from installed compressors.

* Excluding the Shenyang foundry where we rely on renewable grid electricity
or technological developments to achieve our ambitions.

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Burckhardt CompressionAnnual Report 2022Our climate policy is the basis for all our activities related to cli-
mate change and part of our wider environmental policy. Our en-
vironmental management system, certified in accordance with ISO
14001, is a key instrument in reducing our environmental footprint.
Each subsidiary takes responsibility for reducing its own greenhouse
gas emissions according to the global targets.

We have embedded our target of reducing our greenhouse gas
emission intensity by 50%* (2021: 2.1 kg CO2e/h) as part of top man-
agement’s long-term incentives.

Progress in fiscal year 2022
We focused on the analysis of our mid- and long-term reduction
potential for direct (Scope 1) and energy-related indirect (Scope 2).
This enabled us to set our ambitious 2027 target for the Mid-Range
Plan and develop a roadmap for net-zero emission. In addition, we
were able to successfully map the data collection for Scope 1 and
Scope 2 emissions onto a new software platform.

On an operational level, we continued with various projects
addressing our emissions. The measures implemented locally fo-
cused mainly on electricity consumption and renewable electricity.
Burckhardt Compression Spain, for example, installed solar panels
on their roof which cover around 40% of their energy use. We are
also pursuing similar initiatives in other locations like Switzerland,
China, and South Korea.

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 5LP250V
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%

The vast majority of emissions over the entire life cycle of a compressors are caused in the use phase due to the high power range of our compressors, their long lifetime
and their uninterrupted operation.

* Excluding the Shenyang foundry where we rely on renewable grid electricity

or technological developments to achieve our ambitions.

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Sustainability ReportBurckhardt CompressionAnnual Report 2022We started a screening and approximate calculation of our Scope
3 emissions. We expect to publish this data in fiscal year 2023. The
majority of our Scope 3 emissions is in the use phase of the com-
pressor. The key factor is the electricity source used by our cus-
tomers to power the electric motor which is driving the compressor.
Inbound and outbound logistics are less significant than the use
phase, but we have a direct influence. We therefore analyzed our
logistics more closely to identify improvement potentials.

Greenhouse gas emissions also play a vital role in our contin-
ued product development and collaboration with our customers.
We see high potential for avoidance of gas leakage, particularly
where greenhouse gases are compressed. We therefore continued
our efforts in research and development projects for comprehensive
emissions management of existing compressors.

In addition, we have invested further 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 emis-
sions through reduced travel by service technicians.

Our performance
The absolute greenhouse gas emissions for Scope 1 and Scope 2
amount to 20’070 metric tons of CO2 equivalents (CO2e). Scope 1
and Scope 2 emissions have increased due to a continuous strong
growth, especially in China where renewable energy options are
limited. The greenhouse gas emission intensity by working hours
rose from 3.3 to 3.4 (2.1 to 2.3 without foundry) but the greenhouse
gas emission intensity in tons of CO2e per million sales decreased
from 26.8 to 24.2. The results correspond with our expectation and
planning for the 2027 sustainability target to reduce the greenhouse
gas emission intensity by 50%* (2021: 2.1).

Business travel forms only a small part of Burckhardt Compres-
sion’s other indirect greenhouse gas emissions (Scope 3) but can be
directly influenced. Compared with the previous year, the number of
business trips has increased but remains below the pre-pandemic
level of 2019 (3’429 tCO2e). By strengthening our digital infrastruc-
ture, we intend to reduce travel frequency in the medium term.

Outlook for fiscal year 2023
In the coming year, we are launching a global Mid-Range Plan initi-
ative to reduce our greenhouse gas emissions as a key to reaching
our 2027 sustainability target. We also expect to be able to imple-
ment further solar panel projects next fiscal year. We continue to
support our customers in reducing their emissions and are working
to further develop special service offerings.

Greenhouse gas emissions
in tons of CO2e (per calendar year)

20’070

6
9
3
5
1

’

4
7
6
4

’

2
2

8
9
1
’
3
1

1
2
2
4

’

1
2

9
6
3
8

’

7
8
1
’
5

0
2

Scope 2

Scope 1

Greenhouse gas emissions
intensity Scope 1 and 2
in kg of CO2e per working hour (per calendar year)

3.4

3
3

7
2

0 2
2

2
2

Greenhouse gas emissions
business travel
in tons of CO2e (per calendar year)

2’567

Airplane

Train

Bus

Car

1’902
26
56
584

* Excluding the Shenyang foundry where we rely on renewable grid electricity

or technological developments to achieve our ambitions.

9
1

0
2

1
2

2
2

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Sustainability ReportBurckhardt CompressionAnnual Report 2022Sustainability Report

2. Energy use and efficiency

Energy consumption
in MWh (per calendar year)

59’107

Topic lead: Vice President Compressor Engineering &
Manufacturing
Target: Increase the share of renewable electricity to 75%.* (2021: 23%)

8
2
9
9
4

’

9
1
6
5
4

’

The development of society depends on the conversion, use, stor-
age, 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.

Burckhardt Compression’s business activities have a significant
impact on energy consumption, especially in production, raw ma-
terial supply and the electricity consumption of our compressors in
the use phase. Through energy-saving production processes, com-
pressor design and services we can contribute to the Sustainable
Development Goal 7: Affordable and clean energy.

Our activities require energy in the manufacturing process, but
by far the largest impact of our activities is in the use phase of our
products.

Our approach
Burckhardt Compression endeavors to reduce energy demand and
promote renewable energies. 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

customers’ sites throughout the use phase.

Our environmental policy and ISO 14001-certified environmental
management system form the basis of our activities related to en-
ergy consumption in our value chain. Each subsidiary takes respon-
sibility for reducing its energy consumption and increasing the share
of renewable electricity according to our global target.

Our Winterthur site, for example, is in the process of implement-
ing 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 (Gold Rating) several times. Green-
Co is an initiative created by the Confederation of Indian Industry
(CII). GreenCo’s rating system takes a holistic approach to measure-
ment of the results of corporate environmental initiatives.

The energy consumption of our compressor systems forms an in-
tegral 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.

* Excluding the Shenyang foundry where we rely on renewable grid electricity
or technological developments to achieve our ambitions.

0 2
2

2
2

Energy intensity
in kWh/working hours (per calendar year)

10.1

1
9.

4
9.

0
2

1
2

2
2

Share of renewable
electricity
in % (per calendar year)

5
1

0
2

1
2

2
2

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Burckhardt CompressionAnnual Report 2022Sustainability Report

Progress in fiscal year 2022
In the reporting period, Burckhardt Compression continued its
measures to reduce energy consumption at different sites. Our main
production site in Winterthur, for example, was able to reduce the
energy consumption for electricity and heating by around 4% de-
spite the significantly higher capacity utilization. Burckhardt Com-
pression India achieved an energy reduction of 153 MWh in the fac-
tory through various efficiency projects.

We have planned for the expansion of renewable electricity
production at our facilities, following our new Mid-Range Plan tar-
get of 75%* renewable electricity by 2027. Our subsidiary in Spain
has already been able to install new solar panels on their roof, pro-
ducing up to 40% of their electricity by solar energy. We also pursue
corresponding initiatives in other locations like in Burckhardt Com-
pression Switzerland, where we have initiated a project to install
solar panels on the buildings.

We made significant progress in defining measures and a meth-
odology to track and compare the energy consumption rates of
our compressor portfolio. This will allow us to better evaluate and
benchmark the engineered-to-order compressor projects and drive
measurable performance improvements in energy efficiency.

Our performance
The absolute energy consumption increased to 59’107 MWh as we
went through major business growth. Subsequently, the energy in-
tensity also increased from 9.4 to 10.1, partly because we were grew
stronger in output than in working hours. We were able to increase
the Group-wide proportion of renewable electricity from 15% to 21%.
The performance is in line with our expectations and planning for
reaching our sustainability targets 2027.

With product improvements and services, we managed to re-
duce our customers’ energy consumption in the reporting period.
To date, we have evaluated few projects in terms of energy savings
because access to data is challenging. We have identified this as
an improvement area for our management approach.

Second generation Multistage Clearance
Adjustment enables energy savings up to 30%
The second generation of our Pneumatic Multistage
Clearance Adjustment System developed by our
subsidiary Shenyang Yuanda Compressor builds on
the successes of the first generation. The system has
been installed in China successfully nine times in
fiscal year 2022 (22 times since the launch in 2019),
leading to an electricity saving of 34.5 MWh (based
on 8’000 operating hours per year). A single installa-
tion can save up to 30% of the compressors’ energy
consumption during part-load operation. Since the
initial launch of the first generation, a cumulative
electricity saving of around 958 MWh was enabled.
This is equivalent to the annual electricity consump-
tion of over 250 average Swiss households.

* Excluding the Shenyang foundry where we rely on renewable grid electricity
or technological developments to achieve our ambitions.

Energy savings of 320 MWh per year achieved with
minimal modifications
A customer of Burckhardt Compression India oper-
ated a compressor with reduced capacity due to
low customer demand. The bypass system resulted in
a high power loss of about 50 kW. Burckhardt
Compression India offered a solution to reduce the
volume flow to the customer’s requirements with min-
imal modifications. With this solution, we achieved a
power saving of 40 kW. On a standard yearly runtime
of a compressor, this amounts to 320 MWh a year
which is around a third of the entire electricity con-
sumption of Burckhardt Compression India including
the factory.

Outlook for fiscal year 2023
In the fiscal year 2023, we will continue our roadmap to increase the
share of renewable electricity across the Group. Specific projects
are under evaluation or implementation in Switzerland, Korea, and
China. Local energy-saving measures at operational level will be an
ongoing activity. We also plan to undertake further efforts to better
quantify our energy savings with our customers and increase our
impacts with such services.

3. Longevity and cyclability

Topic lead: President Services Division
Target: Increase the revamp and upgrade sales of Services Division by 100%.
(2021: 100 – Index)

A large number of natural resources are finite, and raw material
extraction is 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 to use materials circularly.

Our compressor systems are built for a defined lifetime of more
than 25 years and the average lifetime is 30 to 50 years. Our oldest
known compressor still in service is 93 years old. Our compressors are
made of more than 95% iron and steel, which ensures a long service
life and makes them highly recyclable.

In the manufacture and servicing of compressors, we have a
significant scope to contribute to a circular economy and support
Sustainable Development Goal 12: Responsible consumption and
production.

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

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Burckhardt CompressionAnnual Report 2022Our approach
Burckhardt Compression fosters long life cycles and the circularity
of materials for own compressors and those from other manufac-
turers by focusing on:
– 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. Our innovations such as Persisto® materials and Redura®
sealing systems ensure a long-lasting operation. We offer a full
range of reliable services and durable compressor components
developed in-house to achieve our long product lifetime of 30 to
50 years.

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

Proportion of reused or refurbished com-
ponents in service work in 2021/2022 for
selected key components.
in %

Valve

2021: 100% = 26’422

2022: 100%= 41’725

81%

76%

2021: 100% = 227

59%

Crank gear

2022: 100% = 898

94%

2021: 100% = 1’223

51%

Cylinder

2022: 100% = 4’893

88%

Hyper
components

2021: 100% = 1’680

69%

2022: 100% = 1’833

62%

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

Complete overhaul of a hyper compressor for the
next life cycle
Burckhardt Compression was commissioned to con-
duct a complete overhaul of a hyper compressor from
another brand. The compressor was no longer fit for
purpose in its unreliable condition. Through the total
overhaul, including an upgrade of key components
and a repair of the foundation, the compressor could
be granted a second life, thereby avoiding the need
to produce a new compressor. In the process, the
closed-loop concept was also applied in small details.
The old piston rods were used, for example, to make
the new stud bolts for the bearing covers.

Progress in fiscal year 2022
We have anchored the topic of longevity and cyclability in our busi-
ness development for new machines and services as part of the
new Mid-Range Plan. Our long-term approach in services business
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.

We were able to successfully implement various revamp and
upgrade services for our customers. Projects went from smaller
parts upgrades to full-scale and highly complex overhauls, where
we transformed compressors for a second life. In one case, we ad-
dressed our customer’s need with a second-hand compressor from
our inventory. We maintain a stock of compressors which we bought
back at the end of their service life in good condition.

We are particularly proud of the successful retrofit of several
Laby®-GI compressors to dry-running systems without cylinder lu-
brication. 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 and per compressor.

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Sustainability ReportBurckhardt CompressionAnnual Report 2022
Our performance
Our target for 2027 is to double our revamp activities compared
to the base year 2021 (=100). In fiscal year 2022, we could increase
sales to 159 compared with the base year, with some exceptionally
large projects included.

Repair instead of replacement is a key component in the circu-
lar economy. We contribute to it through our services; for example,
the share of refurbished components for valves is 76% in all service
interventions.

Sales volume for revamp
and upgrade services
in index points, base year 2021 = 100

159

Outlook for fiscal year 2023
We will continue our condition-based maintenance initiative in the
current fiscal year 2023. 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 service activities with an
emphasis on revamping, upgrading, and reprocessing compressor
systems to extend their service life.

0
0
1

7
8

0 2
2

2
2

A circular compression solution for a Brazilian
recycling pioneer
Lwart Environmental Solutions offers a sophisticated
waste management service based on the concept of
circular economy. The company collects, allocates,
and transforms finite natural resources to bring them
back to the cycle. They needed a quick and a cost-ef-
ficient compression solution to keep their processes
running. Burckhardt Compression was able to provide
already built but unused compressors which were
available in the ’second-hand’ inventory. The techni-
cally sound solution met the required operational con-
ditions without the need to build a new compressor.

Operating hours in comparison

LABY® Compressor 3K160

Passenger car

Weight:

9 t

Operating hours:

8’000
per year

When our specialists
carry out the first
service, an average
passenger car has
already been repla-
ced a long time ago.

Weight:

1.5 t

Operating hours:

5’000 total*

* Assumption: 300’000 km with

60 km/h

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Sustainability ReportBurckhardt CompressionAnnual Report 2022Sustainability Report

4. Environmental impacts of application purpose

Topic lead: Vice President Sales Systems Division
Target: Order intake of 40% in applications supporting the energy transition.
(2021: 16%)

Our core competence is mastering gas compression technologies
for a wide range of gases and applications. Gas plays a crucial role
in the process industries and energy supply, with applications rang-
ing from conventional energy supply to industrial gases to renewa-
ble energy systems. A significant part of the indirect environmental
impact of our business activities is linked to the application purpose.
We have the potential to contribute to three of our strategic
Sustainable Development Goals (7, 12 and 13). The main impacts of
this topic are related to the use phase of our products and services.

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 have developed a sustainability screening approach to ana-
lyze our business activities from an environmental impact perspec-
tive. This classification system makes use of international standards
such as the EU taxonomy for sustainable activities or South Korea’s
K-Taxonomy, without claiming to fulfil all their technical require-
ments. The main purpose of our screening system is to serve as a
compass for the development of our business activities towards a
sustainable energy future.

Largest compressor package for Burckhardt
Compression India to date
Burckhardt Compression India has successfully
delivered a 38-ton compressor package on a single
skid including motor, consoles, and air coolers. The
package is used for a hydrogen installation in Europe
and is yet another successful step in our booming
segment of hydrogen mobility and energy.

24 Standard High Pressure (SHP) Compressors for
Biogas
Burckhardt Compression India has been awarded
several contracts with 24 Standard High Pressure (SHP)
Compressors for compressed biogas. The compressed
biogas market in India is growing fast due to the sub-
sidy announced by the Indian government. Burckhardt
Compression India is a market leader in this applica-
tion in India.

We are expanding the range of application for our customers and
supporting the transition to a sustainable economy through our
continuous innovation in compressor systems, materials, compo-
nents, and services. Our approach is mainly driven by our innova-
tion, product management and sales processes. We invest in R&D
for key applications of the energy transition. The current focus lies
on:
– Solar energy value chain, where our compressors are key

equipment for the production of a thin ethylene-vinyl acetate
(EVA) film on top of a solar panel and for the polysilicon
production of the core.

– Liquefied Natural Gas (LNG) as a short- and medium-term

bridge energy for replacing coal, ensuring energy security dur-
ing the transition or as a fuel for marine applications, replacing
carbon-intensive heavy fuel oil until zero-emission solutions are
available.

– Hydrogen as an important component of a sustainable energy
future, in which our compressors play a key role in meeting the
specific technical challenges of these new applications. The
technological advantages of reciprocating compressors for this
application are unrivaled efficiency and long service lives.

Progress in fiscal year 2022
We have continued to expand our activities that contribute to
a sustainable economy. We were able to achieve strong growth
in hydrogen mobility and energy and to help the industry solve
specific compressor-related technical challenges. This is not least
due to our increased R&D and the strengthening of our business
development resources for these markets.

The fiscal year 2022 marked yet another significant increase of
projects for the solar industry. We reached a new record order in-
take for EVA and polysilicon applications.

In addition to our focus areas of LNG, solar industry, and hy-
drogen, we were able to win further projects in the areas of green
ammonia and biodiesel.

The development of the new test facility at Burckhardt Com-
pression in Winterthur, Switzerland is progressing as planned and
is expected to go live in fiscal year 2023. The facility is part of our
partnership with Shell Renewables and Energy Solutions for the
development of heavy-duty hydrogen refueling stations.

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Burckhardt CompressionAnnual Report 2022Sustainability Report

Our Performance
We extended the application of our sustainability screening ap-
proach to the entire Systems Division, representing 72% of the total
order intake:
– We classified around 17% (2021: 8%) of the total order intake as
new energy applications. Examples are green hydrogen pro-
jects in hydrogen mobility and energy or projects for the solar
panel industry.

– Around 23% (2021: 8%) of the total order intake is classified as

being transitional with environmental advantages but not yet
fully sustainable. Examples are, biogas applications in refin-
ery, dual-fuel LNG applications in gas transport & storage, and
grey hydrogen projects in hydrogen mobility and energy.
– Around 32% (2021: 35%) of total order intake is classified as

conventional applications. Examples are conventional industrial
gas or petrochemical applications without a clear link to a
sustainability use case.

– 28% (2021: 49%) of the total order intake has not yet been

classified.

We had an exceptionally high order intake in fiscal year 2022 for
projects supporting the energy transition. We expect a return to the
previous reference range over the next two years. However, this year’s
success shows that we are on track to achieve 40% of our order intake
supporting the energy transition in the long term.

Outlook for fiscal year 2023
In the coming fiscal year, we will continue our development of inno-
vative non-lube, high-pressure and high-flow hydrogen compressor
systems to meet the specific technical challenges along the hydro-
gen value chain. We will also evaluate the extension of our screen-
ing approach to the Services Division.

Compressor for another green hydrogen production
plant in Switzerland
A major energy provider in Switzerland has started
construction for a green hydrogen production plant,
where a 2.5 MW Electrolyzer is fed with hydroelectric
power. The hydrogen production capacity of this plant
will reach up to 350 tons per year, which is equivalent
to 1.5 million liters of diesel fuel. The hydrogen fuel will
be delivered from the production site to the fuel sta-
tions directly.

Sustainability classification
of order intake
in %

Conventional or not yet classified

Transitional

New energy

3
2

7
1

2
2

1
2

Overhaul of four non-Burckhardt Compressors for
green steel production
One of Europe’s most significant steelmaking compa-
nies needed quick help to revive four non-Burckhardt
compressors that had not been used in 10 years. The
company turned one of its plants into a sustainable
steelmaking plant. Burckhardt Compression success-
fully supported the customer on its sustainability jour-
ney and provided a customized solution responding
exactly to the customer’s needs.

5. Working conditions

Topic lead: Chief Human Resources Officer
Target: Maintain an employee engagement score of ≥ 80% (2020: 79%)

Jobs with decent working conditions are a basic premise for the
development of individuals and society. They drive prosperity and
provide a livelihood for people. Our employees are central to our
success, and we are proud of our global and diverse workforce in
our global production sites and service centers.

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Burckhardt CompressionAnnual Report 2022With our engagement in providing good working conditions, we
contribute to the targets of Sustainable Development Goal 8: De-
cent work and economic growth. Our most direct impact concerns
the working conditions of our more than 2’900 employees (FTE).
Further impacts are along our supply chain, also with regard to hu-
man rights. We recognize our responsibility to exercise due diligence
in collaboration with our business partners.

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

The impacts on employees of suppliers, contractors, and out-
sourced activities are managed mainly through our supply chain
due diligence approach.

Dialog and relations:
We acknowledge and support freedom of association as set out in
our Code of Conduct. Open dialog with employees is a priority for
Burckhardt Compression and is fostered in various ways. In addition
to employee surveys and a continuous exchange with line manag-
ers, employees are informed online several times a year personal-
ly by members of the Executive Management about the state of
the business and other matters, whereby questions are answered.
Our online platform and mobile application “BC Connect” is an ex-
change 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 em-
ployee representation. 63% of Burckhardt Compression’s employees
worldwide are covered by a collective agreement.

Among the most attractive employers in Switzerland
Burckhardt Compression ranks as one of the most
attractive Swiss employers in the mechanical and
plant engineering sector 2023. This ranking is based
on an independent survey of employees, and 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 Compres-
sion was placed an excellent 10th in its sector and a
good 123rd rank over all sectors which means a top
9% ranking.

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

Other

2.1

Involuntary

1.1

2020: 9.5
2021: 10.1
2022: 10.7

Voluntary

7.5

Terms and compensation:
Burckhardt Compression offers attractive terms and conditions of
employment adapted to prevailing requirements on an ongoing
basis. We benchmark our salaries against external salary surveys
conducted by Willis Towers Watson and have an ongoing monitor-
ing system in place to eliminate significant salary differences be-
tween equivalent positions. We have greatly expanded our flexi-
bility in terms of staff working from home and have enhanced our
infrastructure to enable our employees to work comfortably from a
variety of locations.

Organizational culture:
We believe that our well-established corporate culture forms the
foundation of our competitiveness. A comprehensive 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 with partners, stakeholders,
and the environment. A global Speak Up channel operated by a
third party is available to report violations of our standards, values,
and behavioral guidelines.

Progress in fiscal year 2022
In the previous reporting period, we conducted our biennial world-
wide employee survey with a high voluntary participation rate of
90%, which reflects the remarkable level of engagement of our staff.
In this reporting period, we systematically analyzed the results to
drive measures designed to improve the engagement of our em-
ployees even more.

These measures consider the specific local needs of the em-
ployees in the individual subsidiaries. For example, numerous meas-
ures were implemented at our production site in Shenyang based
on the survey results. These include 21 new tea rooms, a football and
basketball court, a new laundry room, sports training, and annual
health checks.

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Sustainability ReportBurckhardt CompressionAnnual Report 2022We also launched a global award program for the recognition of
exceptional team performance. This program rewards teams that
have particularly excelled and contributed to the success of the
company through their performance.

Our performance
The employee turnover rate increased slightly to 10.7% in the report-
ing period. This figure includes all departures, including fixed-term
employment contracts that came to an end. Of this, 7.5 percent-
age points are accounted for by voluntary departures. 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 years.

We conduct our employee survey every two years. Therefore,
there are no updated results this year compared to the last report.
The average score for the statement “All in all, I am satisfied with
my current work situation” is 77 out of a possible 100 points. For the
statement “I would recommend Burckhardt Compression as a good
place to work”, our rating is at 84 points.

Burckhardt Compression conducts an annual appraisal and
performance review with its employee which includes personal de-
velopment goals and suggestions for continuous improvement. 86%
of employees completed the performance appraisal cycle in the
reporting period.

Outlook for fiscal year 2023
In the coming fiscal year, we will refresh our employee survey. The
findings will be our benchmark to drive measures locally in order to
address the specific needs of our employees in the different regions.

Equal pay for equal work
Burckhardt Compression conducted a 2020 wage
equality analysis between men and women for its
main production site and headquarters in Winterthur.
The Swiss legal requirements demand a maximum
discrepancy between men and women of –5%.
Burckhardt Compression is significantly below these
requirements with –1.8%. The results were verified by
an independent auditing organization. Equal pay for
equal work is an important principle for us and we
continue working to ensure this.

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 oppor-
tunities 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

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Sustainability ReportBurckhardt CompressionAnnual Report 2022Sustainability Report

6. Occupational health and safety

Rating 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

Progress in fiscal year 2022
We were able to successfully conduct our external audits at Group
level in accordance with the ISO 45001 standard. We systemati-
cally incorporated the findings of the local certification bodies. We
launched a safety awareness campaign in all manufacturing sites
including illustrative flyers. We have also evaluated a dedicated
software to improve the management of precarious situations and
near misses, which will be rolled out in fiscal year 2023.

Further, we implemented a stringent safety management sys-
tem for work done on customer sites under the overall supervision
of Burckhardt Compression. We have incorporated the findings and
feedback from the health and safety section of the bi-annual em-
ployee survey.

Topic lead: Vice President Quality & Infrastructure
Target: Keep the Lost Time Injury Rate (LTIR) below 0.7 every year (2021: 1.1)

The protection of physical integrity and the promotion of mental
well-being are top priorities for us. By providing a safe working en-
vironment and promoting health, we can help achieve Sustainable
Development Goal 3: Good health and well-being, and also Sus-
tainable Development Goal 8: Decent work and economic growth.
Our influence in this area extends to our own employees, to external
employees in our workplaces, and to working conditions in supply
chain companies.

Our approach
We are committed to the prevention of accidents and work-relat-
ed illnesses and to the promotion of the mental well-being of em-
ployees and workers whose work or workplace is under the control
of Burckhardt Compression. We focus our approach on two com-
ponents:
– 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 cer-
tified in line with ISO 45001 form the basis that governs all activities
relating to health and safety in the workplace. Numerous meas-
ures ranging from detailed risk assessments, safety walks accom-
panied by management to workplace safety training, and manda-
tory wearing of protective footwear, protective eyewear, and other
work-relevant protective equipment demonstrate their effective-
ness through steadily falling risk exposure. Creation of a culture of
prevention through raising awareness and involving employee rep-
resentatives in the safety committee at each site is an important
part of our approach.

We have several local programs to support the mental health
and well-being of our employees. These include developing knowl-
edge on topics such as stress management, sleep, and nutrition as
well as promoting and encouraging sports activities.

Annual Report 2021

Burckhardt Compression

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Our performance
The Lost Time Injury Rate (LTIR) has decreased from 1.1 to 0.6. This
marks a clear improvement compared to last year and is within our
target range for our sustainability targets 2027. Although the trend
is encouraging, occupational health and safety remains a major
challenge, particularly due to the increased workload in the facto-
ries and the associated new hires. During this reporting period, we
recorded no fatal accidents and no case of work-related ill-health.

Outlook for fiscal year 2023
One focus will be to strengthen our safety culture, which we in-
tend to achieve by enhancing the awareness campaign launched
in 2022 and providing further information at local level. The expan-
sion of our global health and safety organization will support this
undertaking.

A second focus will be on internal coordination and integration
within the Group. In fiscal year 2023, we will focus on the locations
Shenyang and Shanghai in China, the US, and the Netherlands. 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 2022, we launched a broad aware-
ness-raising program on the topic of occupational
safety in our major production and assembly sites.
Using various media, including leaflets, videos,
and on-site installations, we highlighted the most
important sources of danger. In this fiscal year, we
conducted a review of the campaign and received
very positive feedback from our employees.

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

1
.
1

0.6

7
0

0
2

1
2

2
2

Severity Rate (SR)
Lost days/recordable incidents (per calendar year)

24.6

0
5
2

0
4
2

0
2

1
2

2
2

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

8
7.
2

4
6
1

15.6

0
2

1
2

2
2

53 Annual Report 2022

Burckhardt Compression

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Sustainability ReportSustainability Report

7. Product safety

Topic lead: Vice President Contracting Systems Division
Target 2027: Maintain zero incidents every year related to product safety (2021: 0)

Compressors are critical equipment in various applications in the
process industry and energy provision. System safety and reliabil-
ity are the most important areas of expertise in our business due
to the high pressures, continuous operation, integration in com-
plex industrial processes, and the individual hazard potentials of
the compressed gases. By ensuring product safety, we contribute to
the Sustainable Development Goal 3: Good health and well-being.
The main impacts are in the commissioning and operational phase
and extend over the compressors’ decades of life.

Successful launch of new engineering platform
In a period characterized by new product launch-
es, organizational developments, business growth,
and regionalization it is of the utmost importance to
maintain the Burckhardt Compressions engineering
standard. We launched a new engineering plat-
form, providing pre-engineered modules, ranging
from pre-configured elements up to whole projects
designs. These pre-configurations and the platform
itself define a technical framework that supports
compliance with product safety requirements. New
developments for hydrogen applications are
already being integrated into this platform, which
offers a uniform, globally valid standard.

Our approach
Burckhardt Compression assures safe operation of compressor sys-
tems 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 development, production, commissioning, and main-
tenance 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 en-
sure safety and functionality.

– Outstanding processes

Defined working principles, processes and our ISO 9001-cer-
tified quality management system ensure our processes meet
the strict requirements.

– 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
further key tools for increasing reliability and safety.

– Documentation and training

To ensure the smooth and safe operation of compressor sys-
tems, 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.

Progress in fiscal year 2022
We have successfully implemented an updated pre-order risk as-
sessment and risk mitigation process, which is applied for all pro-
jects. Additionally, a new sales release matrix across all product
lines serves as an advanced control and screening mechanism to
comply with the different country standards and customer guide-
lines.

In the reporting year, we invested significantly in competence
development throughout the organization. We strengthened the
“career path for technical expertise” in contracting, conducted on-
the job training for new products lines, empowered our project en-
gineering office, and set up a competence center for several en-
gineering disciplines, allowing for global knowledge management.
In the area of control systems and instruments, we successful-
ly implemented remote access devices for the first product lines in
marine high-pressure applications. Additionally, we launched an
engineering base software that allows the utilization of pre-engi-
neered modules to ensure a high product and safety level for exe-
cution during ramp-up and beyond. The new engineering platform

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Burckhardt CompressionAnnual Report 2022Sustainability Report

also presents the data source for a “digital twin”, enabling us to
simulate operating conditions to improve our design, product reli-
ability and safety.

8. Business conduct

Our performance
As part of the approval process, 100% of the new product config-
urations have been through a risk and design assessment that in-
cludes 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 rela-
tion to product safety. In the reporting period, we registered one
near miss for a new product application. The problem was identi-
fied before the compressor was handed over to the customer and
rectifications have been implemented by Burckhardt Compression
as part of the installation and commissioning process.

The number of new compressors fitted with a Burckhardt
Compression control system was further increased. We firmly be-
lieve that our control solutions offer significant added value in terms
of reliability, safety, and lifecycle management of our compressors.

Outlook for fiscal year 2023
Our focus for the coming period will be on the further strengthen-
ing of our organizational capacities for project execution and for
new product launches. We also aim to utilize our new engineering
platform for the majority of new projects globally. The applied con-
cepts for product release, risk assessments, as well as knowledge,
competence, and reliability management will be strengthened in
collaboration with all internal and external stakeholders, including
clients and suppliers.

Topic lead: General Counsel
Target 2027: Maintain zero incidents every year related to corruption or
anti-competitive behavior (2021: 0)

Unethical business practices have the potential to damage the
economy and society. They cause economic losses, promote so-
cial inequality, and undermine democratic processes. As a global
business with a far-reaching network of business partners, we are
committed to conducting our business ethically, legally, and in an
environmentally and socially responsible manner, which is a pre-
condition for all other material sustainability topics.

Our approach
Burckhardt Compression undertakes to carry out its business activ-
ities in an ethical, legal, and environmentally and socially responsi-
ble manner. We expect every business partner with which we have
a business relationship to conduct itself in a similar manner. We
assess every aspect of our business relationship and focus par-
ticularly on:
– No corruption
– Free competition
– Export compliance

Our Code of Conduct defines the fundamental standards and prin-
ciples for employee interaction and behavior with partners, stake-
holders, and the environment. With the Code of Conduct for busi-
ness partners, our suppliers, local agents, and partners commit to
conducting their business in an ethical, legal, and environmentally
and socially responsible manner. Both have been reviewed and
approved by the Board of Directors. All employees are required to
explicitly acknowledge their understanding of the Code of Conduct
on a regular basis. We train our employees in the fields of anti-cor-
ruption, compliance with free competition, and strict adherence to
export controls.

Burckhardt Compression carries out regular internal audits of
all its subsidiaries with a focus on financial, legal, and compliance
topics. Every subsidiary is audited in a three-year cycle.

Our Speak Up reporting system is a complaints channel oper-
ated by an independent third party. It allows employees, business
partners, and third parties that are or might be aware of suspected
misconduct to register it in the reporting system. The system is de-
signed to allow protection of the identity of the reporting party and
for comments to be made anonymously. Burckhardt Compression

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Burckhardt CompressionAnnual Report 2022is committed to investigating all cases according to our Speak Up
policy and to cooperating in the remediation of negative impacts
caused or contributed to.

5 Speak Up notifications, 2022
Notifications of potential misconduct

External

Internal

ment authorities in the investigation and is of the opinion that its
employees acted correctly but leaves the legal assessment of the
matter to the court.

Our existing processes and preliminary clarifications of export
controls have proven their worth. 24 requests for clarification of ex-
port regulations were forwarded to the appropriate authorities dur-
ing the reporting period. Of these, 22 cases were approved, and
two were rejected by the authorities. One initially approved case
has been reversed at a later stage whereupon we withdrew from
the project. No violations of export controls were identified.

Outlook for fiscal year 2023
We are planning to further strengthen our training activities for busi-
ness conduct. We are increasing the reach of our Code of Conduct
for business partners, particularly in cooperation with our suppliers.

Progress in fiscal year 2022
We have updated and rolled out our “Values and Behaviors” which,
together with our Code of Conduct, form the fundamental behav-
ioral guidelines at Burckhardt Compression. The updated version
clearly emphasizes the importance of “Responsibility” as one of the
four pillars of our “Values and Behaviors”. We also continued with
the roll-out of our Code of Conduct for our business partners, which
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 our
focus areas of no corruption, free competition, and export com-
pliance, we provide targeted modules for employees concerned.
In the reporting period, a total of 372 employees who deal with
these areas in their work have successfully completed such train-
ing modules.

Speak Up, which is now running for the second year, is active-

ly used and accepted among employees and business partners.
We comply diligently with the export control provisions and legal
sanctions applicable concerning Russia’s war with Ukraine. We de-
cided not to accept any new contracts from or with Russia as of
mid-March 2022 and have maintained this policy ever since. We do
not have any subsidiaries in either Russia or Ukraine.

Our performance
A total of five suspected cases of misconduct in violation with the
Code of Conduct or law were recorded on the Speak Up reporting
system: four by employees and one by external business part ners.
All the cases were processed and closed within the reporting pe-
riod. The average processing time to the conclusion of the investi-
gation was 45 days.

We conducted nine internal audits of subsidiaries following our
audit cycle. All past identified risks have been mitigated and no
significant new risks regarding corruption and anti-competitive
behavior have been detected in this financial year.

No violations of competition law or instances of corruption con-
nected to our business activities were identified during the report-
ing period, nor were any sanctions imposed for any other significant
non-compliance with environmental, social, or any other legislation.
In the reporting period, two employees of Burckhardt Com-
pression AG were accused of having exploited insider knowledge
when they purchased shares for the company’s ordinary employee
stock ownership program on behalf of the company in May 2020.
Burckhardt Compression has cooperated fully with the law enforce-

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Sustainability ReportBurckhardt CompressionAnnual Report 2022Sustainability governance
at Burckhardt Compression

Board Strategy & Sustainablity Committee

t
n
e
m
e
g
a
n
a
M
y
t
i
l
i

b
a
n
a
t
s
u
S

Executive Sustainability Team
Executive Management & Corporate Communication

Sustainability Steering Group
Topic leaders, Managing Directors & Regional Heads

Implementation Support
Topic contributors

Sustainability Report

Our Commitment
Firmly anchored sustainability governance
The very top of our organization is committed to sustainability. Re-
sponsibilities 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 developing corporate strategy and advises
the Board of Directors on all matters relating to strategy and sus-
tainability.

All members of the Executive Management are also members
of the Executive Sustainability Team, which is responsible for the
strategic approach at Group level and compliance with our sus-
tainability roadmap.

Every material topic is led by a member of senior management.
These managers form the Sustainability Steering Group together
with the Managing Directors of the production and assembly sites,
and the Regional Heads from the Services Division. The Sustain-
ability Steering Group is responsible for implementing the sustain-
ability roadmap and defining the topic-specific management
approach.

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
sustainability-related activities at Group level and, as a technical
expert, supports all functions and subsidiaries with implementation
of the roadmap.

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 suppli-
er sustainability and is used by many Burckhardt
Compression customers. We also improved our score
in major ESG ratings like MSCI, Sustainalytics, ISS ESG
and S&P Global, which puts us in the top 10% – 50%
of companies in our industry, depending on the rating
agency.

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Burckhardt CompressionAnnual Report 2022
A clear focus based on our materiality analysis
We use a materiality analysis to determine where our company’s
activities have the greatest impact on society, the environment,
and the economy. For this purpose, we conducted an impact anal-
ysis, where we assessed actual and potential positive and nega-
tive impacts of our activities along the value chain. The aspects
of scale, scope, and likelihood of impacts were considered as as-
sessment categories with a precedence of scale and scope. In this
process, we gathered the views and concerns of our key stakehold-
ers – investors, customers, employees, and suppliers – online and in
person. We updated the analysis in this reporting period to reflect
the updated requirements of the GRI Standards. Impact is now the
only determinant for materiality definition, and water has been in-
cluded as an operational topic.

For each of the eight material topics, we have appointed a top-
ic leader who, together with subject matter experts, develops our
approach. Operational topics are important to us as well, but
we do not pursue them with the same strategic approach as the
material topics. They are integrated into the operational business
activities at the departmental level. 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.

Material topics

Operational topics

Other topics

• Business conduct

• Energy use & efciency

• Environmental impacts of
application purpose

• Greenhouse gas emissions
& climate change

• Longevity & cyclability

• Occupational health & safety

• Product safety

• Working conditions

• Asset & process integrity

• Data security & privacy

• Diversity, inclusion & equal
opportunity

• Biodiversity

• Conflict & security

• Corporate citizenship & community
impacts

• Non-greenhouse gas air emissions

• Economic contribution

• Resource/material efciency

• Forced labor/child labor

• Training & development

• Water & effluents

• Waste & hazardous substances

• Intellectual property & access
to knowledge

• Land degradation

• Land rights/indigenous rights

• Noise, vibration, odor & radiation

• Political accountability

• Sales & project implementation
practices

• Social impacts of application purpose

• Tax contribution & allocation

High

Significant

Moderate

Aggregated impact on society, environment and economy

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Sustainability ReportBurckhardt CompressionAnnual Report 2022

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. They are a vital factor in the
implementation of our sustainability ambitions.

We appreciate our employees’ expertise and promote knowl-
edge sharing. Personal training and development are part of the
annual appraisal and performance review process and are finan-
cially supported by the company. To ensure the ongoing develop-
ment of technological expertise and personal and managerial skills
within the company, employees around the world participate in in-
ternal technical, product, and leadership training modules, which
are conducted across the Group throughout the year with a range
of programs. In the fiscal year 2022, we provided on average 13.2 h
of internal training per FTE and reached 84% of our employees with
our offering.

We promote and support new talent at all levels and are com-
mitted to the Swiss system of apprentice training. The company
currently has 49 apprentices in Switzerland and 22 in India in eight
occupations. Burckhardt Compression is a founding member of the
initiative launched under the auspices of the Swiss Federal Office
for Professional Education and Technology and the Swiss-Indian
Chamber of Commerce to establish an apprenticeship 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 fundamentally believes that mixed
teams perform better. In the reporting period, women made up
33.3% of the Board of Directors and 20% of Executive Management.
Of the global workforce, 15.6% (2021: 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 stakeholders 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 local community,
media, the scientific community, associations, civil society, and the
state, as required.

Global workforce by gender
Employees (FTE)

2’973

5
6
4

8
0
5
2

’

6
1
4

6
1
3
2

’

9
7
3

8
5
1
’
2

0 2
2

2
2

female

male

Global workforce by region, 2022
in %

Americas

APAC

EMEA

2’973 FTE

Global workforce by age, 2022
in %

55+ years

45 – 54 years

2’973 FTE

<25 years

25 – 34 years

35 – 44 years

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Sustainability ReportBurckhardt CompressionAnnual Report 2022Suppliers
We work closely with suppliers in the development phase, with the
aim of long-term partnerships. Exchanges and performance reviews
take place on a regular basis via on-site visits, virtual meetings,
audits, or inspections. The central sustainability priorities for suppli-
ers are occupational health and safety, energy consumption, and
business conduct. All three topics are key elements of our approach
to sustainability.

Communities and other stakeholders
We maintain an open relationship with the local community. We
established distinct communication channels for inquiries and com-
municated these contact points on our website. We also support
and promote local initiatives, for example in the areas of education
and sports. We practice transparency in our exchange with the me-
dia and authorities and strive for timely and open communication.

Customers
Burckhardt Compression seeks long-term customer relations. The
longest-standing customer relationship dates back to 1885, when
the company 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 manage-
ment process with the divisional management teams, and actions
are initiated and implemented in accordance with the results. For
example, customer surveys were carried out in the reporting peri-
od 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.

Investors
Burckhardt Compression maintains an 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. Leading
Swiss business newspaper “Finanz und Wirtschaft” gives Burckhardt
Compression’s investor relations and transparency an A– rating
(A is the highest rating).

In recent years, the importance of ESG (Environment, Social,
Governance) rating agencies have also increased significantly for
our investors. Important sustainability priorities for our investors in-
clude 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
Compression and is carried out in different ways. The most impor-
tant dialog channels are described in this report in the material
topic working conditions. The key priorities for employees are health
and safety at work, working conditions, and training and develop-
ment. We actively deal with the first two within our material topics.
Training and development are a central pillar of our HR manage-
ment.

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Sustainability ReportBurckhardt CompressionAnnual Report 2022Sustainability Report

Extended key figures

Environmental metrics1

Energy

Energy use

Electricity
Fuels and combustibles 2

District heating

Share of renewable electricity

Energy intensity

Greenhouse gas emissions
Greenhouse gas emissions Scope 1 3

Combustibles

Fuels

Others

MWh

kWh /working hour

tCO2e

Greenhouse gas emissions Scope 2 4, 5

tCO2e

Electricity

District heating

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

kgCO2e /working hour

Greenhouse gas emission intensity
by working hours without foundry (Scope 1 + 2)

kgCO2e /working hour

Greenhouse gas emission intensity
by sales volume (Scope 1 + 2)

Greenhouse gas emissions business travel
(Scope 3)

Water and waste
Water 6

Waste 6

tCO2e / mCHF

tCO2e

2022

2021

2020

59’107

30’658

18’585

9’864

10.1

4’674

1’551

2’914

209

15’396

13’712

1’684

3.4

2.3

24.2

2’567

78’687

3’530

49’928

27’779

16’608

5’541

9.4

4’221

1’485

2’508

228

13’198

12’252

946

3.3

2.1

26.8

1’361

45’619

18’915

18’569

8’135

9.1

5’187

2’541

2’421

225

8’369

6’980

1’389

2.7

1.9

20.6

1’211

83’810

2’805

91’218

2’605

1 With the exception of the figures for water consumption and waste, the data relate to all sites of the Burckhardt Compression Group. The data collection for environmen-
tal data is performed by calendar year. The denominators sales volume and working hours are collected per fiscal year. The greenhouse gas inventory was calculated
according to the WRI/WBCSD Greenhouse Gas Protocol Standard. ’Operational control’ was selected as the consolidation approach. Energy and greenhouse gas
emissions data for 2020 and 2019 have been recalculated due to methodological adjustments, conversion factors and working hours calculation. The values are higher
than in the previous report.
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 15’801 tCO2e in 2022 (2021: 13’653 tCO2e, 2020: 8’574 tCO2e).

6 Data refer to the production and assembly sites of the Burckhardt Compression Group, including headquarter (Switzerland, India, China, South Korea, United States).

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Burckhardt CompressionAnnual Report 2022Health and Safety1

Health and Safety1
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.

Employee structure

Number of employees

FTE

Permanent

Male

Female

EMEA

APAC

Americas

Temporary

Male

Female

EMEA

APAC

Americas

Full-time

Male

Female

EMEA

APAC

Americas

Part-time

Male

Female

EMEA

APAC

Americas

Number of external workers

Number trainees & apprentices

2022

2021

2020

0.6

24.6

15.6

1.1

25.0

27.8

0.7

24.0

16.4

2022

2021

2020

2’973

2’724

2’320

404

1’264

1’155

305

249

188

229

2’856

2’442

414

1’167

1’384

305

117

116

305

178

2’732

2’508

2’145

363

1’152

1’066

290

224

171

207

2’628

2’256

372

1’065

1’273

290

104

103

298

153

2’538

2’339

2’000

339

1’037

1’014

288

199

158

185

2’445

2’103

342

959

1’199

287

187

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Sustainability ReportBurckhardt CompressionAnnual Report 2022
Employee turnover

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

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

1 Turnover data for 2020 is based on headcount.

2022

2021

2020

FTE % yearly average

510

17.7%

451

17.1%

149

5.8%

FTE

% end of year

FTE

% end of year

FTE

% end of year

510

427

210

145

17.2%

17.0%

17.9%

43.6%

26.9%

13.8%

10.3%

9.2%

451

382

171

121

16.5%

16.6%

50.2%

22.2%

13.7%

11.6%

11.4%

149

119

5.9%

5.5%

7.8%

20.3%

6.9%

4.5%

4.9%

4.8%

FTE % yearly average

Headcount1 % yearly average1

308

FTE

308

264

100

10.7%

% end of year

10.4%

10.5%

9.4%

13.4%

12.8%

7.6%

7.0%

16.9%

266

FTE

266

230

10.1%

249

9.5%

% end of year

Headcount1

% end of year

9.7%

9.9%

8.7%

19.1%

10.6%

9.9%

6.0%

11.1%

249

214

9.6%

9.8%

8.8%

23.5%

9.8%

6.7%

6.9%

16.7%

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Sustainability ReportBurckhardt CompressionAnnual Report 2022Sustainability Report

GRI content index

Burckhardt Compression has reported in accordance with the GRI Standards for the period 1 April 2022 to 31 March 2023.
GRI 1 Foundation 2021 has been used for compiling this report and there is no applicable GRI Sector Standard.

GRI standard

Disclosure

Reference

Further information
and omissions

GRI 1: Foundation 2021

GRI 2: General disclosures 2021

The organization and its
reporting practices

GRI 2: General disclosures 2021

2-1 Organizational details

2-2 Entities included in the organization’s
sustainability reporting

2-3 Reporting period, frequency, and contact
point

2-4 Restatements of information

p. 102,
pp. 124–125

p. 100,
pp. 124–125

–

a. Burckhardt Compression Holding AG

iii. Consolidation approach applies to all
disclosures.

a. Sustainability report: 04.01.2022 to
03.31.2023, yearly
b. Annual report: 04.01.2022 to 03.31.2023
c. Publication: 06.06.2023
d. Contact: sustainability@burckhardtcom-
pression.com

Energy consumption and intensity, and
subsequently CO2 emissions and intensity.
for 2019 and 2020 have been recalculated
due to methodological adjustments of
conversion factors and working hours cal-
culation. The values are higher than stated
in the previous report.

Share of renewable electricity of 2020 has
been recalculated due to methodological
adjustments. The values are slightly higher
than stated in the previous report.

We adjusted the 2021 values for project
sustainability screening due to more
rigorous classification criteria.

2-5 External assurance

–

This report was not externally verified.

Activities and workers

GRI 2: General disclosures 2021

2-6 Activities, value chain, and other business
relationships

2-7 Employees

p. 7, p. 40,
p. 102,
p. 104

p. 62

2-8 Workers who are not employees

p. 62

c. FTE at the end of the reporting period.
d. Trainees & apprentices are not included
since some of our apprentices have an ex-
ternal work contract with the AZW Training
Center in Winterthur.

a. i. Production employees, service
technicians and engineers.
a. ii. Engineering, project management,
field services, compressor manufacturing
and assembly.
b. FTE at the end of the reporting period.

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Burckhardt CompressionAnnual Report 2022Governance

GRI 2: General disclosures 2021

2-9 Governance structure and composition

pp. 73-79

2-10 Nomination and selection of the highest
governance body

Bylaws Art.
15-16,
pp. 73-79

b. i. Annual discussion with major share-
holders and proxy advisors.
b. ii.-iv. Disclosed, applying not publicly
disclosed criteria.

2-11 Chair of the highest governance
body

2-12 Role of the highest governance body in
overseeing the management of impacts

2-13 Delegation of responsibility for managing
impacts

pp. 74-76

p. 55, p. 57,
pp. 76-79,
Organi-
zation
regulation
1.-4.

p. 57,
pp. 76-79,
Organi-
zation
regulation
1.-5.

2-14 Role of the highest governance body in
sustainability reporting

–

2-15 Conflicts of interest

2-16 Communication of critical concerns

2-17 Collective knowledge of the highest gov-
ernance body

2-18 Evaluation of the performance of the
highest governance body

2-19 Remuneration policy

2-20 Process to determine remuneration

p. 71,
pp. 73-75

pp. 55-56,
Speak Up
policy

p. 77, Or-
ganization
regulation
1.4.4.

p. 79

pp. 84-87

2-21 Annual total compensation ratio

–

Board of Directors releases the Annual
Report for the general assembly of
shareholders.

a. Annual written confirmation by all
members of the highest governance body.

Through ongoing communication and
reporting.

This information is not available. We are
evaluating the possibility of providing such
information in the future.

Strategy, policies, and practices

GRI 2: General disclosures 2021

2-22 Statement on sustainable development
strategy

pp. 8-10

2-23 Policy commitments

2-24 Embedding policy commitments

2-25 Process to remediate negative impacts

2-26 Mechanisms for seeking advice and
raising concerns

pp. 39-41,
pp. 55-56,
Code of
Conduct

pp. 55-56,
Organiza-
tion regula-
tion 3.-4.

pp. 55-56,
Speak Up
policy

2-27 Compliance with laws and Regulations

p. 56

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Sustainability ReportBurckhardt CompressionAnnual Report 2022GRI standard

Disclosure

Reference

Further information
and omissions

2-28 Memberships associations

–

Stakeholder engagement

GRI 2: General disclosures 2021

2-29 Approach to stakeholder engagement

pp. 59-60

2-30 Collective bargaining agreements

p. 50

Material topics

GRI 3: Material Topics 2021

3-1 Process to determine material topics

3-2 List of material topics

Greenhouse gas emissions and
climate change

GRI 3: Material Topics 2021

3-3 Management of material topics

GRI 305: Emissions 2016

305-1 Direct (Scope 1) GHG emissions

p. 58

pp. 41-43

p. 43, p. 61

305-2 Energy indirect (Scope 2) GHG emissions

p. 43, p. 61

305-3 Other indirect (Scope 3) GHG emissions

p. 43, p. 61

305-4 GHG emissions intensity

p. 43, p. 61

Energy use and efficiency

GRI 3: Material Topics 2021

3-3 Management of material topics

GRI 302: Energy 2016

302-1 Energy consumption within the organ-
ization

302-3 Energy intensity

Own indicator

Share of renewable electricity

Longevity and recyclability

pp. 44-45

p. 44, p. 61

GRI 3: Material Topics 2021

3-3 Management of material topics

pp. 45-47

Own indicators

Reused or refurbished components

Sales of revamp and upgrade services

p. 46

p. 47

Environmental impacts of
application purpose

GRI 3: Material Topics 2021

3-3 Management of material topics

pp. 48-49

Own indicators

Working conditions

Sustainability classification of business activities

p. 49

GRI 3: Material Topics 2021

3-3 Management of material topics

GRI 401: Employment 2016

401-1 New employee hires and employee
turnover

Own indicators

Score satisfaction work situation

Score workplace recommendation

Score employee engagement

pp. 49-51

p. 50, p. 63

p. 51

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

ing 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

b. Where usual and available we take
existing bargaining agreements as a
benchmark.

We are working on a full Scope 3 emission
calculation. We expect to publish this data
in fiscal year 2023.

The breakdown by region is not disclosed
for business reasons.

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Sustainability ReportBurckhardt CompressionAnnual Report 2022Occupational health and safety

GRI 3: Material Topics 2021

3-3 Management of material topics

GRI 403: Occupational Health
and Safety 2018

403-1 Occupational health and safety
management system

p. 52

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

p. 52

403-6 Promotion of worker health

p. 52

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

a. The EOHS team (Environment, Occupa-
tional Health, and Safety team), under the
direction of the Quality Team and Safety
Officer, is responsible 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 dedi-
cated 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, non-
conformities, 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 &
Participation, Communication regulates
the involvement of employees. Involvement
takes place at all levels (steering commit-
tee, core team, execution teams).

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

Non-occupational services and offerings
depend on country-specific implementa-
tion 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 occupa-
tional health and safety impacts directly linked
by business relationships

pp. 40-41

This aspect is covered in our approach to
supply chain due diligence.

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

p. 52

403-9 Work-related injuries

pp. 52-53,
p. 62

403-10 Work-related ill health

p. 53

i. 100% are covered by an occupational
health and safety management system.
ii. 100% of employees are covered by an
internally audited system.
iii. 91.6% are covered by an externally
certified system.

We have no differentiation between
high-consequence work related injuries
(a. ii.) and work-related injuries (a. iii.).

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Sustainability ReportBurckhardt CompressionAnnual Report 2022GRI standard

Disclosure

Reference

Further information
and omissions

Product safety

GRI 3: Material Topics 2021

3-3 Management of material topics

pp. 54-55

GRI 416: Customer Health
and Safety 2016

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

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

p. 55

Business conduct

GRI 3: Material Topics 2021

3-3 Management of material topics

pp. 55-56

GRI 205: Anti-corruption
2016

205-1 Operations assessed for risks related to
corruption

205-2 Communication and training about
anti-corruption policies and procedures

205-3 Confirmed incidents of corruption and
actions taken

GRI 206: Anti-competitive
behavior

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

p. 56

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Sustainability ReportBurckhardt CompressionAnnual Report 2022Sustainability Report

SASB Mapping

SASB Sustainability Disclosure Topics & Accounting Metrics

Topic

SASB Accounting Metric

Code

Reference

Energy Management

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

RT-IG-130a.1

Further Information and
omissions

Percentage grid electricity has
not been evaluated separately
until now. We are working on
making this breakdown available
in the future.

We do not yet track near miss fre-
quency 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
Compression’s compressors are
powered by electricity.

GRI 302-1
GRI 302-3
Page 61

GRI 403-1
to 8 Pages
53, 62

RT-IG-320a.1

RT-IG-410a.1

n/a

RT-IG-410a.2

n/a

RT-IG-410a.3

n/a

RT-IG-410a.4

n/a

RT-IG-440a.1

Pages 40-41,
78-79,

RT-IG-440b.1

This information is not disclosed
for business reasons.

Employee Health & Safety

Fuel Economy & Emissions in
Use-phase

Materials Sourcing

Remanufacturing
Design & Services

SASB Activity Metrics

(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 die-
sel 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

Activity Metric

Code

Reference

Further Information and
omissions

Number of units produced by
product category

RT-IG-000.A

n/a

This information is not disclosed
for business reasons.

Number of employees

RT-IG-000.B

GRI 102-8
Page 62

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Burckhardt CompressionAnnual Report 2022Corporate Governance

Corporate
Governance

Burckhardt Compression is committed
to responsible corporate governance.
The company adheres to the Directive on
Information Relating to Corporate Go v -
ernance (DCG) issued by SIX Swiss Ex-
change, where applicable to Burckhardt
Compression, and the “Swiss Code of
Best Practice for Corporate Governance”
issued by economiesuisse.

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Burckhardt CompressionAnnual Report 2022Corporate Governance

Burckhardt Compression has scheduled its Annual General Meeting
2023 on July 1, 2023. Among the proposals for which approval will be
sought is the amendment of the Bylaws to reflect changes in Swiss
corporate law, which has been revised to strengthen corporate
governance and update various processes, among other changes.

The information presented in this report reflects the situation on
March 31, 2023, unless otherwise noted and this report is structured
in accordance with the latest DCG's outline and numbering.

1.2. Significant shareholders
According to information available to the company from the dis-
closure notifications of the SIX Exchange Regulation Ltd., the share-
holders listed in the following table reported shareholdings of at
least 3% of the voting rights as per March 31, 2023. In accordance
with the company’s Bylaws, the voting rights of NN Group N.V., The
Goldman Sachs Group Inc and UBS Fund Management (Switzer-
land) AG are limited to 5.0% of the total number of BCHN registered
shares recorded in the share register:

1. Group structure and shareholders
1.1. Group structure
1.1.1. Description of the operational group structure
Burckhardt Compression is managed through a divisional organi-
zational structure consisting of two divisions, the Systems Division
(compressor manufacturing business) and the Services Division
(compressor services and components). The management struc-
ture of the Burckhardt Compression Group is given in the organi-
zational chart below:

CEO
Fabrice Billard

CHRO
Vanessa Valentin

CFO
Rolf Brändli

President Systems Division
Andreas Brautsch

President Services Division
Rainer Dübi

1.1.2. Listed Group companies
Burckhardt Compression Holding AG, a corporation organized un-
der the laws of Switzerland with its legal domicile in Winterthur, is
the only listed Group company. Burckhardt Compression regis-
tered shares (BCHN) are listed on the SIX Swiss Exchange in Zurich
(ISIN: CH0025536027; security number 002553602). Its market cap-
italization as per March 31, 2023 amounted to CHF 1’931’200’000.
Burckhardt Compression Holding AG holds 33’413 BCHN shares
(0.98% of the total registered shares) per March 31, 2023.

1.1.3. Unlisted Group companies
Information on the unlisted companies included in the scope of
consolidation of Burckhardt Compression Holding AG is given in the
financial report on page 133, 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.

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.*

The Goldman Sachs Group, Inc**

UBS Fund Management
(Switzerland) AG

BlackRock, Inc.

12.40

9.86

7.37

5.02

3.07

* According to the notification to the Disclosure office of SIX Exchange Regulation
Ltd. published on November 19, 2021.
** According to the notification to the Disclosure Office of SIX Exchange Regulation
Ltd. published on June 24, 2022, with the following remark: “This notification is
being made because The Goldman Sachs Group, Inc. (“GS Group”) has acquired
control of NN Investment Partners Holdings N.V. (“NNIP”) and NNIP has a discre-
tionary asset management mandate with respect to BCHN shares which are
owned by NN Group N.V.”

More detailed information on the disclosure notifications is avai l-
able 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 regis-
tered shares with a nominal value of CHF 2.50 each.

The Board of Directors is authorized to increase the share ca-
pital anytime on or before June 30, 2024 in the maximum amount
of CHF 850’000 by issuing up to 340’000 fully paid in registered
shares with a nominal value of CHF 2.50 per share (authorized share
capital).

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Burckhardt CompressionAnnual Report 2022Corporate Governance

2.2. Authorized capital and conditional capital in particular
The company does not have any conditional capital.

Details on the authorized share capital:
The date of the issuance, the issue price, the beginning of the di v-
idend rights and any contributions in kind or planned acquisitions
to be financed by a capital increase are to be defined by the Board
of Directors. The Board of Directors is entitled to conduct more than
one capital increase. The transferability of the shares shall be sub-
ject to the registration requirements set forth in the Bylaws. The
Board of Directors is entitled to revoke the right to subscribe for new
shares and to transfer such subscription rights to third parties (i) in
case of an acquisition of a company through a share swap or (ii) in
order to finance the acquisition of companies or of parts thereof.
Furthermore, the Board of Directors is entitled to revoke the right
to subscribe for new shares if such new shares are to be publicly
placed in the market. Shares which have not been subscribed for
by existing shareholder will be allocated by the Board of Directors
at its free discretion.

2.3. Changes in capital
There has been no movement (increase or decrease) in share ca p-
ital since the IPO in June 2006.

2.4. Shares and participation certificates
Voting rights may only be exercised after the shareholder has been
registered in the Share Register. All shares are entitled to full divi-
dend rights. Voting rights per shareholder are restricted to 5.0% of
the total number of the registered shares recorded in the commer-
cial register. This does not apply to shareholders who were in pos-
session of more than 5.0% 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
2.6.1. Limitations on transferability
No person or entity will be registered as a shareholder in the Share
Register for more than 5.0% of the issued share capital. This entry
restriction is also applicable to persons whose shares are totally or
partially held by Nominees (please refer to below Chapter 2.6.3).
This restriction is also valid if shares are acquired through the exer-
cise of subscription, option, or conversion rights, with the excep-
tion of shares acquired through inheritance, division of an estate
or marital property law. Legal entities and partnerships associa t -
ed 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 registration restrictions, are re-
garded as one person.

This restriction on voting rights does not apply to shareholders who
were in possession of more than 5.0% of the shares of Burckhardt
Compression Holding AG before the IPO. The Board of Directors
is entitled to grant exceptions to the registration requirements in
special circumstances.

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.

The company may further refuse registration as a shareholder with
voting rights, if the acquirer does not expressly declare upon re-
quest that he/she/it holds the shares in his/her/its own name and
for his/her/its own account.

2.6.2 Reasons for granting exceptions
The company has not granted any exceptions during the last year.

2.6.3. Nominee registrations
Individual persons who have not expressly declared in their re-
gistration application that they hold the shares for their own ac-
count (nominees) will be entered in the Share Register with voting
rights if the nominee concerned provides proof that he/she/it is
subject to supervision by an accredited bank and financial market
regulator and if he/she/it has concluded an agreement with the
Board of Directors concerning his/her/its status. Nominees hold-
ing up to 2.0% 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. Nominees holding more than 2.0% of
the issued shares will be entered in the Share Register with 2.0%
voting rights and, for the remaining shares, without voting rights.
Above this 2.0% 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 2.0% of the issued
share capital. The Board of Directors is entitled to approve excep-
tions from the statutory conditions for registration with respect to
special circumstances.

2.6.4. Cancelling privileges and limitations on transferability
Amendments to the Bylaws (including cancelling privileges and
limitations on transferability) require the approval of at least two-
thirds of the share votes represented at the Annual General Meeting.

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

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3. Board of Directors
3.1./3.2. Members of the Board of Directors/
Other activities and vested interests
The Bylaws stipulate that the Board of Directors consists of a mini-
mum of three and a maximum of seven members. Since the An-
nual General Meeting 2021, all members are non-executive and in-
dependent members of the Board of Directors in the context of
the “Swiss Code of Best Practice for Corporate Governance“ from
economiesuisse1.

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

Maria Teresa Vacalli

CH/NL

CH/IT

Chair, non-executive; Chair SSC

Member, non-executive; member AC

Member, non-executive; member SSC, Chair NCC

Member, non-executive; member NCC

Member, non-executive; Chair AC

Member, non-executive; member AC

AC = Audit Committee

| NCC = Nomination and Compensation Committee

| SSC = Strategy and Sustainability Committee

2020

2007

2012

2014

2019

2022

2023

No member of the Board of Directors has served as a member of
the Executive Management of Burckhardt Compression Holding AG
and/or any subsidiary within the Burckhardt Compression Group.
Furthermore, none of the members of the Board of Directors have
material business relationships with Burckhardt Compression AG
and/or any subsidiary within the Burckhardt Compression Group.

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

1As approved by economiesuisse on November 14, 2022.

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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
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, Switzerland

– Member of the Board of Directors,

360°, Switzerland

– Member of the Board of Directors

Accelleron Industries AG, Switzerland

Education
MBA, IMD Business School, Switzerland,
MSc in Civil Engineering, Delft University
of Technology, Netherlands

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

Professional background
2012–2017 Chair of the Executive
Management and CEO, AkzoNobel NV,
Netherlands
2007–2011 CEO, Sulzer AG, Switzerland
2003–2007 President, Sulzer Pumps,
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
– Chair of the Board of Directors
– Chair of the Strategy and
Sustainability Committee

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

Novartis, Switzerland

– Chair of the Board of Directors, Swiss

Prime Site AG, Switzerland

– Member of the Advisory Committee

“Adviescommissie Maatwerkafspraken
Verduurzaming Industrie” of the Ministry
of Economic Affairs and Climate of the
Netherlands

– Advisor, Ammega, Switzerland

Professional background
Since 2016 Managing Partner ADULCO
GmbH, Switzerland
2014–2016 Self-employed, Switzerland
2011–2014 CFO and Deputy CEO, Member
of Executive Board, Autoneum Holding AG
(the Group), Switzerland
2003–2011 CFO and Head Corporate
Center, Member of Group Executive Com-
mittee, Rieter Holding AG, Switzerland
1999–2003 CFO, Member of Group Exe c -
utive 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 Department, 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
– Chair of the Board of Directors,

Avesco AG, Switzerland

– Member of the Board of Directors,

Ammann Group Holding AG, Switzerland

– Member of the Board of Directors ,
Liechtensteinische Landesbank AG,
Liechtenstein

– Vice Chair of the Board of Directors,

VAT Group AG, Switzerland

– Member of the Board of Directors ,
PENSADOR Partner AG, Switzerland

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Dr. Stephan Bross (1962)
Independent Board Member since 2014

David Dean (1959)
Independent Board Member since 2019

Maria Teresa Vacalli (1971)
Independent Board Member since 2022

Education
PhD in Mechanical Engineering,
TU Braunschweig, Germany

Professional background
Since 2018 Executive Management mem-
ber (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
Services 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 Public Accountant
Completed executive education programs
at Harvard Business School, Boston, USA,
and at 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
– Chair of the Audit Committee

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

Bossard Group, Switzerland

– Member of the Board of Directors

Komax Group, Switzerland

– Member of the Board of Directors,

Brugg Group, Switzerland

– Chair of the Board of Directors,
Haag-Streit Group, Switzerland
(a division of Metall Zug Group)

Education
MSc in Industrial Management and
Manufacturing, ETH Zurich, Switzerland

Professional background
2019–2022 Chair of the Executive Board
and Head of the Executive
Committee, Bank Cler AG, Switzerland
2018–2019 Head of Digital Market
Services & Member of the Executive Com-
mittee, Basler Kantonalbank, Switzerland
2016–2018 CEO, Moneyhouse AG, NZZ Me-
diengruppe, Switzerland
2013–2016 Sunrise Communication AG,
Switzerland
2008–2013 Executive Director
Wholesale, Switzerland
2002–2008 Director, Cablecom,
Switzerland
2002 Manager GCI Management,
Switzerland
2001 Manager, Ernst & Young, Center
for Business Innovation (CBI), Switzerland
2000–2001 Partner & Owner,
Seavantage, Switzerland
1998–2000 Manager, Pricewater-
houseCoopers, 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
– Member of the Board of Directors,

Swiss Post, Switzerland

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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 Prac-
tice for Corporate Governance from economiesuisse. Non-execu-
tive members of the Board of Directors are considered independent
if they have never, or not within the last three (3) years, worked for
Burckhardt Compression, and have no or only relatively small busi-
ness 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)
additional board memberships, of which not more than four (4) in
listed companies.

3.4. Election and term of office
Each member of the Board of Directors, the Board Chair, and each
member of the Nomination and Compensation Committee are
elected annually by the Annual General Meeting. The members of
the Board of Directors 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
3.5.1. Allocation of tasks within the Board of Directors
The competencies of the Board members are depicted in the fol-
lowing matrix:

3.5.2. Committees of the Board of Directors
The Board of Directors has set up the following committees:

Audit Committee
The Audit Committee advises and supports the Board in all mat-
ters related to external and internal audits, risk management, ac-
counting 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), Urs Leinhäuser and Maria Teresa Vacalli.

Nomination and Compensation Committee
This committee advises and assists the Board of Directors on ap-
pointing, assessing and dismissing members of the Executive Mana g -
ement, and draws up proposals for the appointment or dismissal
of members of the Board of Directors. Furthermore, the Nomination
and Compensation Committee advises and assists the Board of
Directors on questions relating to the compensation of the direc-
tors and the Executive Management members. The CEO and the
CHRO also attend the ordinary meetings of the NCC. The members
are Dr. Monika Krüsi (Chair) and Dr. Stephan Bross.

Ton Büchner

Urs Leinhäuser Monika Krüsi

Stephan Bross

David Dean

Maria Teresa
Vacalli

Executive competence (>200 FTE)

Strategic competence

Competence in non-European cultures

Sustainability competence

Supply chain competence

Competence in BC markets

Technological competence

Financial competence

M&A competence

Board-level competence

CEO coaching competence

•

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

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Strategy and Sustainability Committee
The Strategy and Sustainability Committee supports the CEO in
developing 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 evaluates the implementation of the company
strategy on a regular basis and submits proposals to the Board of
Directors if adjustments or other measures are deemed necessary.
The members are Ton Büchner (Chair) and Dr. Monika Krüsi. Addi-
tionally, the Strategy and Sustainability Committee helps prepare
together with the CEO the annual strategy day.

3.5.3. Working methods
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 regar d-
ing strategy, organization, financial planning, and accounting for
the Burckhardt Compression Group. The Board of Directors has
delegated executive management responsibility to the CEO of
Burckhardt Compression Group. The Board of Directors appoints a

Secretary for the Board and for the company. The Secretary does
not need to be a member of the Board.

The Board of Directors meets as often as business requires, but
at least four times per year. In fiscal year 2022, 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 mem-
bers are present. Decisions are passed by a simple majority. In the
event of a tie, the Chair has the casting vote.

The CEO, the two Presidents of the Systems and Services Divi-
sions, 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.

Meeting

Governing
body

Duration

Ton Büchner

Urs Leinhäuser Monika Krüsi

Stephan Bross

David Dean

Maria Teresa
Vacalli

04/12/2022, meeting of

05/09/2022, meeting of

05/16/2022, meeting of

06/01/2022, meeting of

06/02/2022, meeting of

08/31/2022, meeting of

08/30/2022, meeting of

08/31/2022, meeting of

09/30/2022, meeting of

SCC

NCC

BOD

NCC

SCC

NCC

10/07/2022, meeting of

10/14/2022, meeting of

10/25/2022, meeting of

SCC

NCC

10/25/2022, meeting of

9.5 hours

3.5 hours

1 hour

4 hours

3.5 hours

7 hours

6 hours

3.5 hours

7 hours

1.5 hours

1 hour

6 hours

3 hours

10/26/2022, meeting of

BOD

6.5 hours

11/09/2022, meeting of

1 hour

12/09/2022, meeting of

BOD

6.5 hours

01/10/2023, meeting of

03/22/2023, meeting of

03/08/2023, meeting of

NCC

BOD

03/08/2023, meeting of

SCC

1 hour

2 hours

5 hours

2 hours

•

BOD = Board of Directors

| AC = Audit Committee

| NCC = Nomination and Compensation Committee

| SSC= Strategy and Sustainability Committee

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Corporate Governance

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 Com-
pression Group, with the exception of the duties which may not be
delegated by law and in particular the following:
– 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

recommendations 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 to the CEO.

The powers of the Executive Management and of the Group com-
pany executives are listed in detail in the organization regula-
tion (https://www.burckhardtcompression.com/investors/corpo-
rate-governance).

3.7. Information and control instruments vis-à-vis the
Executive Management
Order intake, the income statement, balance sheet, liquidity plan-
ning and cash flow, headcount, personnel costs and capital ex-
penditure are consolidated and annotated on a monthly basis. A
rolling forecast of Burckhardt Compression Group results for the cur-
rent and coming fiscal years is also prepared and annotated four
times a year (April, July, October and January). Targets for the co-
ming fiscal year are determined based on the January forecast. The
financial reports and the forecasts are distributed to the members
of the Executive Management and all members of the Board of Di-
rectors. At every meeting of the Board of Directors, the members of
the Executive Management report on the course of business and
on all issues of relevance to the Burckhardt Compression Group.

Internal Group Audit and internal control system (ICS)
The internal audit reports to the Chair of the Audit Committee
of the Board of Directors. Management responsibility for the unit
has been delegated to the Head of Group Controlling, who is also
responsible for planning and conducting the audits. The CFO is re-
sponsible for coordination between the Audit Committee and the
Head of Internal Group Audit. The Internal Group Audit team con-
sists of qualified staff from the Finance and Controlling depart-
ments of Burckhardt Compression AG and several selected financial
specialists from the Burckhardt Compression 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 as-
signed to them in addition to their regular duties and in this addi-
tional capacity they report directly to the Head of Internal Group
Audit, who in turn reports in this function directly to Chair 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 practic-
es with the objective of creating sustained added value for the
Burckhardt Compression Group by means of continual process im-
provement. The internal auditors undergo regular training for the
performance of their tasks. The training received is coordinated by
the Head of internal Group Audit. The schedule 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. Nine internal audits were carried
out in fiscal year 2022. The internal auditors’ reports were distributed
to the management of the audited company, the members of the
Audit Committee of the Board of Directors, the Executive Manage-
ment members and to the external company auditors. The statuto-
ry auditor assesses the effectiveness of the internal control system
(ICS) in a written report submitted to the Audit Committee and the
Board of Directors once a year.

Risk management
Burckhardt Compression has an integrated risk management po l-
icy. In a two-stage process, key risks are identified using an antici-
patory approach and grouped under one of four risk categories –
strategic, financial, operational or legal/compliance – that have
been defined by the Board of Directors. The risks are then eva l -
uated, managed and stringently monitored, avoided, mitigated
or transferred to third parties through appropriate risk manage-
ment measures. The first stage of risk management consists of a
conti nuous risk management process, in which the Division Presi-
dents and the Burckhardt Compression Group functions (CEO, CFO,
CHRO, CDIO, Legal) systematically identify and assess the risks in a
regular rhythm, define the necessary risk mitigation measures to-
gether with the responsible persons, and set and monitor deadlines
for implementation. Internal and external factors are included in the
evaluation of potential risks.

The second stage of the risk management process consists of
a periodic risk management review that takes place twice a year
at the meetings of the Board of Directors’ Audit Committee. To this

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4.1./4.2 Members of the Executive Management/Other
activities and vested interests

Name

Nationality

Function

Fabrice Billard

Rolf Brändli

Vanessa Valentin

Andreas Brautsch

Rainer Dübi

* since June 2022
** since October 2022

CH/FR

CEO

CFO

CHRO*

President Systems Division**

President Services Division

Biographical details and information on other activities and com-
mitments of the members of the Executive Management:

Corporate Governance

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 occurring and the effects they would
have. This overview is presented to the Audit Committee together
with the risk mitigation measures, the people responsible for imple-
menting them, and an implementation timetable. The Audit Com-
mittee then reports to the Board of Directors about the findings of
the risk management review.

Compliance
Burckhardt Compression has a group-wide compliance focusing on
compliance with legal and internal regulations which include also
the Code of Conduct and the Burckhardt Compression Values and
Behaviors. The Compliance 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 introduced to all employees and business partners. Also, data
protection is an important topic taken very seriously at Burckhardt
Compression. In 2022, 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 Secu-
rity to ensure technical resilience to cyber-attacks. In 2022, the fo-
cus of the work was on strengthening the safety awareness of all
employees. In addition, Burckhardt Compression has reviewed the
IT Security assessment to identify and protect the most relevant
assets (Crown Jewels).

3.8. Gender guidelines
As part of its extended duties, the Nomination and Compensation
Committee assesses succession planning for the Board of Directors
in order to ensure a balanced composition of the Board of Directors.
The Board of Directors has increased the gender ratio from 20% to
33% of women on the Board of Directors during the last elections
in 2022.

3.9. Self-evaluation of the Board of Directors
Regarding fiscal year 2021, the Board of Directors conducted a
self-evaluation looking at the work of the Board of Directors and
its individual committees. The evaluation process covered purpose,
scope, composition and responsibilities and was done as an inter-
nal evaluation only. Each of the members of the Board of Directors
completed a questionnaire and the detailed findings were presen t -
ed back to the Board of Directors. Improvement measures were
defined and will be regularly reviewed.

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Fabrice Billard (1970)

Rolf Brändli (1968)

Vanessa Valentin (1979)

Education
MSc in Aeronautics and Aerospace
Engineering. Ecole Centrale Paris, France

Education
Degree in Business Administration,
HWV Zürich, Switzerland

Professional background
Since 2008 CFO, Burckhardt Compression
Group, Switzerland
2001–2008 Head of Finance & Adminis-
tration, 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

Professional background
Since April 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

Education
BSc in Developmental Psychology,
University of Sussex, UK
MSc in Human Resources, The London
School of Economics and Political
Science (LSE), UK

Professional background
Since June 2022 Chief Human Resources
Officer, Burckhardt Compression Group,
Switzerland
2016 – 2022 Senior VP Human Resources,
VAT Group, Switzerland
2012 – 2016 Human Resources Director,
Alstom, Switzerland
2007 – 2012 Human Resources Leader,
GE Oil & Gas, Italy, Australia, US
2005 – 2007 Human Resources Leadership
Program, GE, Germany, Italy, US
2003 – 2005 Human Resources Manager,
Health Protection Agency, UK

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Rainer Dübi (1969)

Andreas Brautsch (1974)

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

Education
MSc in Mechanical Enginee r ing,
TH Regensburg, Germany
PhD, Mechanical Engineering, Heriot
Watt University, Edinburgh, UK

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

Professional background
Since October 2022 President Systems
Division, Burckhardt Compression Group,
Switzerland
2019–2022 Group Vice President, Global
Lead Switchgear Business Hitachi Energy,
Switzerland
2017–2019 Group Vice President, Business
Transformation Lead Hitachi Energy,
Switzerland
2015–2017 Global Business Lead Industrial
Gas Power Business, General Electric, USA
2012–2015 Platform Director H-class
Gas Power Generation, Alstom Power,
Switzerland
2008–2012 Head of Products, Carbon
Capture Systems, Alstom Power,
Switzerland
2002–2008 Global Innovation Lead,
Alstom Power, USA
1998–2000 Implementation Lead for local
joint venture, Siemens, China

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

5.2.3. on the vote on pay at the Annual General Meeting
The rules in the Bylaws on the vote on pay at the Annual General
Meeting are available on the website of Burckhardt Compression
in the Bylaws (Art. 24).
(https://www.burckhardtcompression.com/investors/corpo-
rate-governance).

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

4.5. Gender Guidelines
As part of its extended duties, the Nomination and Compensa-
tion Committee assesses succession planning for the Executive
Ma nagement in order to ensure a balanced composition of the
Executive Management. The Board of Directors aims to ensure a
diversified Executive Management. The gender ratio is currently
20% women in the Executive Management.

Compensation and shareholding programs

5. Compensation, shareholdings and loans
5.1.
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 com-
pensation are explained in the Compensation Report on pages
84 to 92.

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 84 to 92 and in
the financial statements, note 103, “Share capital and sharehold-
ers” on page 133

Burckhardt Compression Group did not grant any loans, credit
or collateral to any of the members of the Board of Directors or the
Executive Management in fiscal year 2022 and there are no ar-
rangements of this nature outstanding.

Rules in the Bylaws

5.2.
5.2.1. on performance-related payments and allocations
The rules in the Bylaws on the principles applicable to perfor-
mance-related pay and to the allocation of shares, contingent
rights to receive shares or comparable instruments of the company,
as well as the additional amount for payments to members of the
Executive Management appointed after the vote on pay at the An-
nual General Meeting of shareholders are available on the website
of Burckhardt Compression in the Bylaws (Art. 25, Art. 26 and Art. 27).
(https://www.burckhardtcompression.com/investors/corpo-
rate-governance).

5.2.2. on loans, credit facilities and post-employment benefits
The rules in the Bylaws on loans, credit arrangements and pension
plan benefits for members of the board and the Executive Ma n-
agement are available on the website of Burckhardt Compression
in the Bylaws (Art. 29).
(https://www.burckhardtcompression.com/investors/corpo-
rate-governance).

6. Shareholders’ participation rights
6.1. Voting rights restrictions and representation
6.1.1. Rules in the Bylaws on restrictions to voting rights
Please refer to above Chapter 2.6.1.

6.1.2. Rules in the Bylaws on the issue of instructions to the
independent proxy
The rules in the Bylaws on the issue of instructions to the indepen-
dent proxy are available on the website of Burckhardt Compression
in the Bylaws (Art. 9 and Art. 13).
(https://www.burckhardtcompression.com/investors/corpo-
rate-governance).

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. Dissolution or
merging of the company requires the presence or representation
of at least half of the issued shares and the approval of at least
two-thirds of the present or represented share votes on the peti-
tion submitted.

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

6.4. Inclusion of items on the agenda
Under the Bylaws, shareholders representing jointly at least ten (10)
percent of the share capital may request discussion of an item at
an Annual General Meeting. The corresponding petition should be
submitted in writing to the Board of Directors of the company at
least forty (40) days prior to the scheduled meeting stating the
proposed item and petitions of the shareholders.

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

Changes of control and defensive
measures
Duty to make an offer

7.1.
Once a shareholder acquires 33% 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.

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Burckhardt CompressionAnnual Report 2022Corporate Governance

7.2. Clauses on change of control
There are no provisions for special severance payments for mem-
bers of the Board of Directors or members of the Executive Ma n-
agement or other employees in the event of a change of control
over Burckhardt Compression Holding AG.

7A. Transparency on non-financial matters
The report on non-financial matters is included on page 30.

8. Auditors
8.1. Duration of mandate and term of office of the auditor in charge
8.1.1. Date of assumption of the current audit mandate
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 Annual General Meeting of share hol-
ders for one year at a time. Burckhardt Compression plans to tender
its external audit contracts at least every ten (10) years and exam-
ine all bids received. The most recent invitation to tender was issued
du r ing fiscal year 2012. PwC was awarded the contract in March
2013 and was re-elected as statutory auditor by the Annual Gen-
eral Meeting of Shareholders in June 2013. Burckhardt Compression
is planning to tender its external audit contract again in the course
of fiscal year 2023.

8.1.2. Date on which the lead auditor responsible for the current
audit mandate took up ofce
The auditor in charge will be changed after a maximum period of
seven (7) years. Sandra Böhm Uglow has served as auditor in charge
since the 2020 reporting period.

8.2. Auditor’s fees
Total fees for auditing services provided by PwC worldwide during
fiscal year 2022 amounted to TCHF 406 (previous year: TCHF 372).

8.3. Additional fees
The additional fees for services provided by PwC worldwide du r -
ing fiscal year 2022 are in the amount of TCHF 41 (previous year:
TCHF 110) for consulting services in the context with the long-term
incentive plan. Additional services rendered by PwC outside the
audit mandate are compatible with the audit assignment.

8.4. Information instruments pertaining to the external audit
The Audit Committee assists the Board of Directors in monitoring
the company’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 reviews the auditor’s fees. The statutory
auditor is present during the examination of the consolidated an-
nual and semi-annual financial statements. Once a year, the mem-
bers of the Audit Committee receive from the statutory auditor a
summary of the audit findings and suggested improvements. The
Audit Committee held two meetings during the 2022 reporting

period. The auditor in charge and another representative of the
auditor took part in these meetings.

9. Information policy
In general, Burckhardt Compression Holding AG reports order intake,
sales, operating results, balance sheet, cash flow, and chan ges
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 in-
formation in accordance with the ad hoc disclosure requirements
set out in the Listing Rules of the SIX Swiss Exchange. Burckhardt
Compression Holding AG will send 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 2023 and 2024
July 1, 2023
Annual General Meeting
October 31, 2023
Results for the first half of 2023 (closing September 30, 2023)
June 4, 2024
2023 Annual Report (closing March 31, 2024)
July 5, 2024
Annual General Meeting

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 par-
ties can also subscribe to the email distribution list.

10. Quiet periods
No member of the Board of Directors, member of the Executive
Management or other employee of Burckhardt Compression speci f -
ically notified by the CFO may trade with Burckhardt Compression
shares listed in the stock exchange or any other exchange-tra d ed
financial instruments relating to BCHN shares, such as derivates,
during the period starting from April 1 and October 1 respec-
tively and ending with the close of the second trading day after
Burckhardt Compressions’ public release of the relevant annual or
half-year report. Besides these recurring lock-out periods, there
was no specific lock-out period during the fiscal year 2022.

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Burckhardt CompressionAnnual Report 2022Compensation Report

Compensation
Report

This Compensation Report describes the
policies and system in place for the com-
pensation of the Board of Directors and
the Executive Management of Burckhardt
Compression, together with informa-
tion on their annual compensation and
shareholdings.

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Burckhardt CompressionAnnual Report 2022Compensation Report

1. Basis
This Compensation Report describes the policies and system in
place for the compensation of the Board of Directors and the Ex-
ecutive Management of Burckhardt Compression, together with in-
formation 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 Governance (DCG)
issued by the SIX Swiss Exchange, and the Bylaws of Burckhardt
Compression Holding AG.

2. 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 Gen-
eral Meeting and their term of office shall expire at the end of the
next Annual General Meeting. The Annual General Meeting of July
1, 2022 re-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 Compen-
sation Committee.

The NCC meets a minimum of twice a year, in 2022 it met six
times. The CEO and CHRO attend these meetings in an advisory
capacity, except during deliberation on meeting topics that pertain
to themselves. Following each NCC meeting the Board of Directors
will be informed of the topics discussed and the proposals of the
NCC are brought to the next possible Board Meeting.

The duties and powers of the NCC are set forth in the com-
pany’s ByLaws and Organizational Regulations (www.burckhardt-
compression.com/corporate-governance). The regulations are
regularly reviewed. The NCC supports the Board of Directors in the
performance of its duties pertaining to the compensation and per-
sonnel 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. No external advisors have been consulted.

Topic

Proposal/
recommendation by

Approval authority

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

BOD, subject to AGM
approval

NCC

BOD = Board of Directors
AGM= Annual General Meeting

| NCC = Nomination and Compensation Committee

The Annual General Meeting of Burckhardt Compression Holding
AG casts the following votes in relation to the compensation of the
Board of Directors and Executive Management:
– a prospective vote on the maximum aggregate amount of

fixed compensation for the Board of Directors for the fiscal year
following the Annual General Meeting

– and a prospective vote on the maximum aggregate amount
of fixed compensation for 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 preceding the Annual General Meeting

– In addition, the principles of compensation are governed by the
Articles of Bylaws, which are also approved by the shareholders

– The provisions of the articles of the Bylaws are listed below:
https://www.burckhardtcompression.com/wp-content/up-
loads/2022/08/BCHN_Bylaws_english_2022-07-01.pdf

– Article 24: Approval of compensation by the Annual General

Meeting

– Article 25: Supplementary amount of compensation for mem-

bers of the Executive Management

– Article 26: General compensation principles
– Article 27: Contracts relating to compensation
– Article 29 Loans, credit arrangements and pension benefits over
and above those provided in mandatory occupational pension
plans

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

3. 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 compen-
sation can be paid in whole or part in the form of shares, condi-
tional rights to receive shares, or in comparable instruments of the
company.

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3.1. Compensation system for the Board of Directors
In order to guarantee the independence of the members of the
Board of Directors in exercising their supervisory duties, their com-
pensation consists of a fixed renumeration only. The compensation
of the Board of Directors is market-competitive and strengthens the
alignment with the interests of the shareholders.

Compensation for the Board of Directors is delivered 80% in
cash and 20% in free 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 av-
erage share price (daily closing price on the SIX exchange) of the
30 trading days before the Annual General Meeting. Revised com-
pensation regulation for the Board of Directors came into effect on
July 2, 2022.

The fixed component amounts to CHF 81’000 for members of
the Board of Directors and to CHF 184’000 per year for the Chair
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 Chair of the Board of Di-
rectors. For the Board of Directors only mandatory pension benefits
are granted.

3.2 Compensation system for the Executive Management
Burckhardt Compression has established a comprehensible com-
pensation system which is well balanced between shorter- and
longer-term orientation. The objectives pursued with this system
are to ensure that the compensation of the company executives is
market-competitive and to achieve a good balance between the
interests of the shareholders, the directors, and Executive Manage-
ment. Market-competitive pay is a basic prerequisite for attracting
well-qualified executives and ensuring that they remain with the
company in the long run.

The structure of compensation system of the
Executive Management

Components

Program

Purpose

Plan period

Monthly cash salary

Variable perfor-
mance- and profit
related annual cash
bonus

Variable perfor-
mance- and profit
related long-term
incentive bonus
awarded in form
of free shares

Attract and
retain

continuous

Pay for
performance

Reward
long-term
performance
aligned with
shareholders

annual

6 years

Monthly
contributions

Protect against
risk

continuous

Annual Base
Salary

Short-term
incentive

Long-term
incentive

Benefits:
Pension and
Insurance

Base salary
The functions performed by members of the Executive Manage-
ment are assigned to so-called Global Grades as defined by a
global functional grading system (Willis Towers Watson Global
Grading System). Market data for each Global Grade based on
Willis Towers Watson’s Global 50 Remuneration Planning Report
are taken into consideration when determining the base salary of
the members of the Executive Management. In addition, individual
executive performance goal achievements like e.g. expansion of
product portfolio and geographic scope, sustainability, and digitali -
zation are reviewed annually. The base salary is reviewed annually.

Annual Short-Term Incentive (STI)
The members of the Executive Management receive a variable
performance- and profit-related bonus in addition to their base
salaries. The STI is calculated from the group net income of the
Burckhardt Compression Group – if a minimum financial thresh-
old of 4% return on sales at the net profit level is achieved – and
a percentage rate determined by the Global Grade. This measure
focuses on profitability and aligns the Executive Management with
the interests of all stakeholders. The percentage rate applied for the
CEO is 0.28%. The percentage rate for other members of the Exec-
utive Management – depending on their Global Grade – ranges
from 0.12% to 0.16%. The STI is limited to 50% of the base salary. The
STI plan is regularly reviewed. In 2022 the NCC has made slight revi-
sions to the STI plan which will be applicable as of fiscal year 2023.

Long-Term Incentive (LTI)
Members of the Executive Management additionally receive LTI pay
awarded in the form of free shares. The LTI program is valid for a six-
year period (fiscal years 2017–2022). LTI pay is based on the attain-
ment of the Mid-Range Plan targets for organic growth (sales) and
net income of Burckhardt Compression Group for the fiscal years
2017 to 2019 as well as 2020 to 2022.

The basis upon which the LTI pay is calculated consists of a
fixed, predefined amount per Global Grade. If the sales and net
income targets set in the Mid-Range Plan are attained by the end
of fiscal year 2022, this fixed amount will be multiplied by a factor of
1.0. Each KPI is weighted 50% (for sales and net income) and award-
ed in the form of free shares.

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Burckhardt CompressionAnnual Report 2022The KPIs have been chosen to balance top-line growth and bot-
tom-line efficiency, as well as the commitment to sustainability,
measured by the reduction of GHG emission intensity by 50% by
2027.

The plan includes malus and clawback provisions which allow to

reduce or reclaim all or parts of the award in defined cases.

With this revision of the LTI policy the company aims to drive
not only sustainable retention of our leadership team but also
provides the opportunity to participate in the long-term success
of the company.

Employment contract terms and shareholding guideline
Employment contracts with Executive Management members are
entered into for an indefinite period with a notice period of six
months. The Executive Management is not contractually entitled
to sign-on payments, termination payments, change-of-control
provisions (except the accelerated vesting under the LTI plan) or
non-competition compensation. Pension benefits are part of the
regular company occupational pension plans.

Starting from fiscal year 2023, the Executive Management will
be required to build up and own at least a minimum multiple of their
annual base salary in Burckhardt Compression shares.

Compensation Report

The targeted amount of the LTI 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
Global Grade. For new joiners to and promotions within the Execu-
tive Management the target amount is pro-rated. 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 minimum cumulative sales target is set at CHF 3’346 mn, mini-
mum cumulative net income at CHF 195 mn. If cumulative sales or
net income fall short of these minimum thresholds, the correspond-
ing 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 distributed 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. The number of shares awarded are based
on the average share price for the periods from the announcement
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.

Based on the NCC’s regular review of the compensation poli-
cies and the expiring of the current LTI plan, the Board of Directors
has approved a new LTI policy which will replace the current and
expiring LTI plan.

To align compensation stronger to the interests of shareholders,
increase the pay for performance relationship and strengthen the
retention of the most senior employees, a new LTI policy will come
into effect with the start of fiscal year 2023.

The LTI plan will be awarded in form of Performance Share Units
(PSUs) which are conditional upon the fulfillment of certain per-
formance conditions. The vesting of the award is based on the
achievement of three KPI’s over a period of three years, subject to
continued employment:
– Cumulative Earnings per Share (50% weighted)
– Cumulative Revenue (25% weighted)
– ESG measure (25% weighted)

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4. Compensation allocated with com parative figures for the previous year
4.1. Compensation allocated to the Board of Directors
The following aggregate compensation was allocated to the members of the Board of Directors for the fiscal years 2022 and 2021:

in CHF 1’000 (gross)

Function

Fees

Members of the Board of Directors

Ton Büchner

Urs Leinhäuser

Dr. Monika Krüsi

Dr. Stephan Bross

David Dean
Maria Teresa Vacalli1

Total

Approved by the
2021 AGM for FY2022

Chair

Member

194

101

636

in CHF 1’000 (gross)

Function

Fees

Social security
contributions and
other benefits*

Social insurance
contributions and
other benefits*

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

Chair

Member

194

101

568

2022

212

101

112

101

103

705

750

2021

212

101

112

101

624

650

1 From July 2, 2022
*Includes mandatory required social security contributions only as per local Swiss regulations, and expenses as per Board of Directors compensation regulation

The total fixed compensation for the Board of Directors for the fiscal
year under review is CHF 81’000 higher than for the previous fiscal
year due to an additionally appointed member of the Board of
Directors. The Annual General Meeting of July 2, 2021 approved
aggregate fixed compensation in the amount of CHF 750’000
(gross, incl. social security contributions) for the Board of Direc-
tors (six members) for fiscal year 2022. The amount of compensa-
tion actually paid was CHF 705’000 which is within the limit of the
approved amount by the AGM.

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4.2. Compensation allocated to the Executive Management
The following compensation was allocated to the members of the Exe cutive Management for the fiscal years 2022 and 2021:

in CHF 1’000 (gross)

Function

Fixed base
salary, cash

Total fixed
compen-
sation

Short-term
incentive,
cash

Share-
based
long-term
incentive

Social
insurance
contri-
butions
and other
benefits

2022
Total

Total
variable
compen-
sation

Social
security
contri-
butions
and other
benefits

Executive Management

Fabrice Billard (highest paid)

Other members of the Executive
Management1

Total

Approved by the 2021 AGM for FY 2022

CEO

400

102

502

196

180

454

956

951

1’351

287

389

1’238

1’740

2’400

350

546

375

555

143

221

868

1’322

2’106

3’062

in CHF 1’000 (gross)

Function

Fixed base
salary, cash

Total fixed
compen-
sation

Short-term
incentive,
cash

Share-
based
long-term
incentive

Social
insurance
contri-
butions
and other
benefits

2021
Total

Total
variable
compen-
sation

Social
security
contri-
butions
and other
benefits

Executive Management

Marcel Pawlicek (highest paid)

Other members of the Executive
Management1

Total

Approved by the 2020 AGM for FY 2021

CEO

445

115

560

151

180

106

437

997

1’081

1’526

256

371

1’337

1’897

2’200

337

488

360

540

216

322

913

1’350

2’250

3’247

1 Includes changes in the Executive Management: new CHRO from June 2022 including CHFk 60 as replacement award for the forfeiture of unvested equity at the previous
employer; new President for Systems Division from October 2022

The total fixed compensation for the highest paid member of the
Executive Management for the period under review is 10% lower
compared to the total fixed compensation for the highest paid
member of the Executive Management for the previous fiscal year,
due to a new CEO in role. The total amount of fixed compensation
for the other members of the Executive Management for 2022 is
7% less than for the previous year’s period. This is due to chan ges
in the Executive Management composition. The Annual General
Meeting of July 2, 2021 approved a maximum aggregate amount
of CHF 2’400’000 (gross, including social security contributions) for
the fixed compensation of the entire Executive Management for the
fiscal year 2022. The amount of fixed compensation actually paid
(gross, including social security contributions) is within the limit of
the approved amount by the AGM 2021.

The annual STI for the Executive Management for fiscal year
2022 was 12% higher than in the previous year as a result of a higher
net income achieved in fiscal year 2022 compared to previous fis-
cal year. This is based on a formulaic calculation where no discre-
tion has been applied. Expenses for the Executive Management’s
LTI compensation rose by 3% from the previous year. This is due to
changes in the Executive Management composition.

The provision made for the LTI compensation has been adjus ted
based on the assessment of the business performance over a mul-
ti-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 adjustments
within individual fiscal years.

The total variable compensation for the individual members
of the current Executive Management for the period under review
ranged from 36% to 48% of total compensation.

Payments to former members of the Executive Management
To the former CEO, compensation in the amount of CHF 56’000
was paid to support the transition period of the new CEO.
Additionally, in line with the LTI plan rules the final tranche granted
to the former CEO in the amount of CHF 203’000 (gross, includ-
ing social security contributions) will be due for payment, following
and subject to shareholder approval at the AGM 2023.

No other payments were made to former members of the Exec-

utive Management or their closely related parties.

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Burckhardt CompressionAnnual Report 2022

Compensation Report

Aggregate amount of variable compensation for
the Executive Management for fiscal year fiscal year 2022
subject to approval at the AGM
For the fiscal year 2022 the total amount of CHF 1’525’000 (gross,
including social security contributions and other benefits) has
been allocated. This includes the amount of CHF 1’322’000 for
the Executive Management and the amount of CHF 203’000 for
a former member of the Executive Management.

5. Overview of shareholdings and distributed shares
5.1. Detailed overview of distributed shares
In the fiscal years 2022 and 2021 the following shares were distributed:

Name

Members of the Board of Directors

Ton Büchner

Urs Leinhäuser

Dr. Monika Krüsi

Dr. Stephan Bross

David Dean
Maria Teresa Vacalli1

Total

Executive Management
Fabrice Billard2
Marcel Pawlicek3

Other members of the Executive Management

Total4

Total Board of Directors and Executive Management

1 From July 2, 2022
2 From April 1, 2022 appointed CEO
3 Until March 31, 2022 former CEO in office
4 Shares have not been allocated or distributed under the LTI program every year

Function

Shares distributed
in FY 2022

Shares distributed
in FY 2021

Chair

Member

CEO

Former CEO

238

n/a

238

n/a

274

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5.2. Detailed overview of shareholdings
As per March 31, 2023, 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:

Function

31.3.2023
Total shares

31.3.2022
Total shares

Chair

Member

CEO

Former CEO

CFO

CHRO

President Services Division

President Systems Division

5’184

1’796

1’201

431

490

9’102

1’300

n/a

1’223

824

3’347

12’449

0.4

5’098

1’758

1’163

393

452

n/a

8’864

1’300

37’737

1’223

n/a

824

n/a

41’084

49’948

1.5

Name

Members of the Board of Directors

Ton Büchner

Urs Leinhäuser

Dr. Monika Krüsi

Dr. Stephan Bross

David Dean
Maria Teresa Vacalli1

Total

Executive Management
Fabrice Billard2
Marcel Pawlicek3

Rolf Brändli
Vanessa Valentin4

Rainer Dübi
Andreas Brautsch5

Total

Total Board of Directors and Executive Management

As a % of all outstanding share

1 From July 2, 2022
2 From April 1, 2022 appointed CEO. Previously, President Systems Division
3 Until March 31, 2022 former CEO in office
4 From June 1, 2022
5 From October 1, 2022

6. Transactions with the Board of Directors,
the Executive Management and related
parties

No other payments or fees for additional services were paid to the
members of the Board of Directors or the Executive Management or
to related parties during the fiscal year 2022. No sign-on bonuses,
loans, or credit lines had been granted to members of the Board of
Directors and Executive Management as well as their closely rela-
ted parties during the fiscal year 2022.

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Burckhardt CompressionAnnual Report 2022Compensation Report

7.
7.1.

Motions for the Annual General Meeting
Approval of the maximum aggregate amount of variable
compensation for the Executive Management for fiscal
year 2022

The Board of Directors proposes that an aggregate amount of
CHF 1’525’000 (gross, including social security contributions and
other benefits) be approved as variable compensation for current
and former members of the Executive Management for fiscal year
2022.

7.2.

Consultative vote on the Compensation Report for fiscal
year 2022

The Board of Directors proposes that shareholders approve the
Compensation Report for fiscal year 2022 in a consultative vote.

7.3

Approval of the maximum aggregate amount of fixed
compensation for the members of the Board of Directors
for fiscal year 2024

The Board of Directors proposes that a maximum aggregate
amount of CHF 890’000 (gross, including social security contribu-
tions and other benefits) be approved as fixed compensation for
six members of the Board of Directors for fiscal year 2024. This is the
same amount as approved by the AGM in 2022 for fiscal year 2023.

7.4. Approval of the maximum aggregate amount of fixed

compensation for members of the Executive Management
for fiscal year 2024

The Board of Directors proposes that a maximum aggregate
amount of CHF 2’400’000 (gross, including social security contri-
butions and other benefits) be approved as fixed compensation
for the five members of the Executive Management for fiscal year
2024. This is the same amount as approved by the AGM in 2022 for
fiscal year 2023.

8. Evaluation of the compensation system
Burckhardt Compression’s compensation system is regularly re-
viewed 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
compiled 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.

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Burckhardt CompressionAnnual Report 2022
Compensation Report

Report of the statutory auditor
to the General Meeting of Burckhardt Compression Holding AG

Winterthur

Report on the audit of the compensation report

Opinion

We have audited the compensation report of Burckhardt Compression Holding AG (the Company) for the year ended 31
March 2023. The audit was limited to the information on remuneration, loans and advances pursuant to Art. 14 to 16 of
the Ordinance against Excessive Remuneration in Listed Companies Limited by Shares (Ordinance) contained in the
tables on pages 88 to 89 of the compensation report.

In our opinion, the information on remuneration, loans and advances in the compensation report (pages 88 to 89) com-
plies with Swiss law and article 14 to 16 of the Ordinance.

Basis for opinion

We conducted our audit in accordance with Swiss law and Swiss Standards on Auditing (SA-CH). Our responsibilities
under those provisions and standards are further described in the 'Auditor’s responsibilities for the audit of the compen-
sation report' section of our report. We are independent of the Company 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.

Other information

The Board of Directors is responsible for the other information. The other information comprises the information included
in the annual report, but does not include the audited tables in the compensation report, the consolidated financial state-
ments, the financial statements and our auditor’s reports thereon.

Our opinion on the compensation report does not cover the other information and we do not express any form of assur-
ance conclusion thereon.

In connection with our audit of the compensation report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the audited financial information in the compen-
sation report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we
are required to report that fact. We have nothing to report in this regard.

Board of Directors' responsibilities for the compensation report

The Board of Directors is responsible for the preparation of a compensation report 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
is necessary to enable the preparation of a compensation report that is free from material misstatement, whether due to
fraud or error. The Board of Directors is also responsible for designing the remuneration system and defining individual
remuneration packages.

Auditor’s responsibilities for the audit of the compensation report

Our objectives are to obtain reasonable assurance about whether the information on remuneration, loans and advances
pursuant to article 14 to 16 of the Ordinance is free from material misstatement, whether due to fraud or error, and to

PricewaterhouseCoopers AG, Bahnhofplatz 8, Postfach, 8400 Winterthur, Switzerland
Telefon: +41 58 792 71 00, 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.

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

Compensation Report

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Burckhardt CompressionAnnual Report 2022 3 Burckhardt Compression Holding AG | Report of the statutory auditor to the General Meeting issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guar-antee that an audit conducted in accordance with Swiss law and SA-CH 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 this compensation re-port. As part of an audit in accordance with Swiss law and SA-CH, we exercise professional judgment and maintain profes-sional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement in the compensation report, whether due to fraud or error, de-sign and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropri-ate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropri-ate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's in-ternal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and re-lated disclosures made. We communicate with the Board of Directors or its relevant committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the Board of Directors or its relevant committee with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safe-guards applied. PricewaterhouseCoopers AG Sandra Boehm Uglow Kevin Mueller Licensed audit expert Auditor in charge Licensed audit expert Winterthur, 5 June 2023 Burckhardt Compression Holding AG Winterthur Report of the statutory auditor to the General Meeting on the remuneration report 2022 02220006_Burckhardt-Compression_GB_2022_EN.indd 95

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Financial Report

Financial
Report

Burckhardt Compression
Holding AG's fiscal year 2022
comprises the period from
April 1, 2022 to March 31, 2023.

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 per end of fiscal year

2022

2021

Change
2021/2022

1’268’270

829’701

244’467

94’963

11.4%

70’001

940’602

261’583

20.64

2’973

976’559

650’698

190’844

70’336

10.8%

50’399

837’798

242’889

14.82

2’732

29.9%

27.5%

28.1%

35.0%

38.9%

12.3%

7.7%

39.3%

8.8%

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Burckhardt CompressionAnnual Report 2022
Financial Report

Sales and gross profit
Total sales in the fiscal year 2022 were 27.5% above the previous year at CHF 829.7 mn, with strong growth mainly in
Europe and North America, but also in China. Excluding the effects of currency translation and acquisitions, year-
on-year sales growth was in total 29.4%. The Systems Division recorded a substantial increase in sales of 31.4% (no
impact from acquisitions) to CHF 489.7 mn on the back of the high order intake of the past two years. Proactive
measures to expedite the supply chains combined with a certain stabilization of global logistics allowed to deliver
large projects in the final weeks of fiscal year 2022, some of them even ahead of schedule. Sales at the Services
Division increased by 22.3% (net of acquisitions +20.9%) to CHF 340.0 mn.

Gross profit increased by 28.1% to CHF 244.5 mn, generating a gross profit margin of 29.5% (previous year: 29.3%).
The Systems Division reported a growth of 35.1% in gross profit to CHF 96.3 mn, with a resulting gross profit margin
of 19.7% (previous year: 19.1%). Gross profit at the Services Division increased by 23.9% to CHF 148.2 mn, resulting in a
gross profit margin of 43.6% (previous year: 43.0%).

Operating income
Total operating profit (EBIT) rose by 35.0% to CHF 95.0 mn, yielding an EBIT margin of 11.4% (previous year: 10.8%),
despite non-recurring costs of CHF 7.1 mn related to the exit from the Russian market. Selling, marketing and gen-
eral administrative expenses amounted to CHF 117.0 mn, which is 9.2% (prior year: 10.9%) of order intake, respec-
tively 14.1% (prior year: 16.4%) of sales. Research and development expenses were at 23.9 mn, which is CHF 4.2 mn
above the previous year, mainly due to an increase in activities to develop innovative applications for new marine
solutions and hydrogen mobility and energy. Other operating income and expenses (net) were at CHF -8.6 mn, in-
cluding the above mentioned non-recurring expenses. Further details to the divisional results are disclosed in the
segment reporting under note 5.

Financial income and tax expenses
Financial expenses decreased by CHF 0.9 mn to CHF 3.8 mn mainly due to higher interest income on bank deposits
in some subsidiaries, while debt interest is largely derived from bond financing and is fixed at 1.5%. The income tax
expenses amounted to CHF 21.2 mn at a resulting tax rate of 23.2%, same as in the prior year, including withhold-
ing tax on internal dividend distribution.

Net income
Group net income increased by 38.9% to CHF 70.0 mn, which is 8.4% of sales (previous year: 7.7%). Earnings per share
attributable to shareholders of Burckhardt Compression increased from CHF 14.82 to CHF 20.64 (+39.3%).

Balance sheet
The balance sheet total rose by 12.3% to CHF 940.6 mn. Property, plant and equipment decreased by 6.1%, due
to lower amounts in buildings and other business assets. In line with the steep ramp up in order intake, inventories
grew substantially by CHF 93.9 mn to CHF 286.2 mn, mainly in work in progress on ongoing customer projects as
per closing date. Trade accounts receivable ended the fiscal year at CHF 245.5 mn, 5.2% below the prior-year level.
The aging structure of the accounts receivable overdue more than 60 days improved to 19.1% (prior year: 30.0%). The
balance between advance payments from customers compared to work in progress and advance payments to
suppliers ended the year at CHF 60.7 mn (previous year: CHF 52.0 mn), as a result of the further increase in orders
received. The equity ratio closed at 27.8% (prior year: 29.0%), which is below our ambition level of 30%. This can be
attributed to the volume induced inflation of the balance sheet with a strong increase in advance payments from
customer and work in progress for customer projects as per closing date as well as the relatively high amount of
cash on the one hand, while we carry a bond with a term until September 2024 on the balance sheet. Total net
operating assets increased by 3.2% compared to the previous year to CHF 283.5 mn.

Cash flow
Cash and cash equivalents increased by CHF 28.1 mn, similar to the previous year (CHF +25.6 mn) to CHF 129.1 mn in
fiscal year 2022, with a lower cash inflow from operating activities but lower cash outflow for investing and financing
activities. The net financial position (net debt) strongly improved from CHF -56.8 mn to CHF -7.1 mn.

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Burckhardt CompressionAnnual Report 2022Financial 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

2022

2021

829’701

–585’234

244’467

–62’742

–54’277

–23’897

30’245

–38’833

94’963

–3’805

91’158

–21’157

70’001

69’942

20.64

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

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

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Burckhardt CompressionAnnual Report 2022

Financial Report

Consolidated balance sheet

in CHF 1’000

Notes

03/31/2023

03/31/2022

Non-current assets

Intangible assets

Property, plant and equipment

Deferred tax assets

Other 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

11’744

172’039

17’915

3’735

205’433

286’246

245’545

68’522

5’777

129’079

735’169

940’602

8’500

574

-15’772

267’882

261’184

399

261’583

132’000

14’246

11’901

3’044

161’191

4’214

109’073

222’849

40’505

108’363

32’824

517’828

679’019

940’602

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

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

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Burckhardt CompressionAnnual Report 2022

Financial Report

Consolidated cash flow statement

in CHF 1’000

Notes

2022

2021

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

Change in provision in equity

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

Sale of financial 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

70’001

21’157

3’805

17’981

3’788

–86’565

585

–9’922

17’058

50’625

4’940

32’662

4’288

1’329

1’028

–3’324

–18’804

110’632

–16’175

4’165

–4’282

3’208

–

–13’084

3’887

–25’779

–13’695

–

–25’597

–61’184

–8’301

28’063

101’016

129’079

28’063

50’399

15’191

4’746

16’775

3’232

–41’350

1’611

–10’837

4’839

70’382

874

30’874

4’395

–484

–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

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

100

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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
attribut-
able
to share-
holders of
Burckhardt
Compres-
sion Hold-
ing AG

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

Balance at 04/01/2022

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)

Balance at 03/31/2023

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

11 –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

8’500

525

–2’136

1’594

–5’034 –156’005 394’895 242’339

550 242’889

–17’644

1’384

–13’695

69’942

70’001

–17’644

–43 –17’687

1’384

–25’430 –25’430

–167 –25’597

–13’695

–108

–

4’288

–

4’288

8’500

574 –15’772

2’978 –22’678 –156’005 443’587 261’184

399 261’583

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.

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Notes to the consolidated
financial statements

1. General information
Burckhardt Compression is a manufacturer and service provider for a full range of reciprocating compressor tech-
nologies and services. Its customized compressor systems are used in the petrochemical, chemical, gas trans-
port and storage, hydrogen mobility and energy, industrial gas, refinery and gas gathering & processing sectors.
Burckhardt Compression’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 Switzer-
land. The address of its registered office is: Franz-Burckhardt-Strasse 5, 8404 Winterthur, Switzerland. Burckhardt
Compression registered shares (BCHN) are listed on the SIX Swiss Stock Exchange in Zurich (ISIN: CH0025536027).
Burckhardt Compression Holding AG’s fiscal year 2022 comprises the period from April 1, 2022 to March 31, 2023.
These consolidated financial statements were authorized for issue by the Board of Directors on June 5, 2023 and
will be submitted to shareholders for approval at the annual general meeting scheduled for July 1, 2023.

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 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 re-
viewed on an ongoing basis. Revisions to estimates are recognized prospectively.

2.3 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-controlling interests are presented separately in the balance sheet and the income statement. In-
tercompany transactions, balances and unrealized gains or losses on transactions between group companies are
eliminated. Group companies are disclosed in note 32.
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. Com-
panies which have been divested are included in the consolidated financial statements until the date on which
control ceased. Capital 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. Acqui-
sition-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 March 31,
2023 Burckhardt Compression does not hold any Associates.

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2.4 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 differences 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 ex-
change rates are used for the translation of the income statements. Translation differences arising from the con-
solidation 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.

Major foreign currency exchange rates

Average rates

2022

2021

03/31/2023

03/31/2022

Period-end rates

1 EUR

1 USD

100 CNY

0.99

0.95

13.93

1.07

0.92

14.31

1.00

0.92

13.33

1.03

0.92

14.58

Impairment of assets

2.5
All non-current assets are tested for impairment when indicators exist that the carrying amount of the asset might
exceed 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 corre-
sponding cash-generating units, representing the lowest level at which such assets are evaluated for recoverability.

Intangible assets and goodwill

2.6
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 calculat-
ed 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.

2.7 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
– Land use rights in China: maximum 40 years
– Other non-current assets: maximum 5 years

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2.8 Other assets
Other assets include loans and long-term rental deposits. Furthermore, other assets also include costs incurred from
cloud computing arrangements. Cloud computing arrangements are capitalized on the basis of the costs incurred
to acquire and bring to use the specific cloud computing solution. The costs relating to the cloud computing ar-
rangements are distributed on a straight-line basis over the estimated useful life of five to ten years. Internal costs
regarding the development and maintenance of these arrangements are recognized as an expense as incurred.

Inventories

2.9
Inventories are stated at the lower of cost or net realizable value. The cost of work in progress and finished goods
comprises material costs, direct and indirect production costs and other order-related production costs. Invento-
ries are stated 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.

2.10 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 evi-
dence 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.

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

2.12 Financial liabilities
Financial liabilities mainly consist of bank debts and a bond. They are recognized at their nominal value. Borrowing
related costs are expensed as incurred in the income statement.

2.13 Provisions
Provisions are recognized for warranty obligations, unprofitable contracts, personnel expenses and various com-
mercial 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.

2.14 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.

2.15 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.

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2.16 Government grants
Grants from governments or similar organizations are recognized at their nominal value when there is reasonable
assurance 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.

2.17 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 documented 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.

2.18 Revenue recognition
Burckhardt Compression recognizes revenue from the sale of goods and the provision of services once the contract
is completed, net of sales or value-added taxes, credits, discounts, and rebates. Revenue and the corresponding
cost of goods sold are recorded in the accounts when the risks and rewards have transferred to the customers or
the contracted service has been performed, according to the agreed sales conditions. The following conditions
must be met:
– 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.

2.19 Research and development
Research and development costs are expensed as incurred.

2.20 Income taxes
Income tax expenses include all income tax on the taxable profits of the group. Deferred income tax is recorded
in full using 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. De-
ferred 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.

2.21 Off-balance-sheet transactions
Contingent liabilities and other non-recognizable commitments are valued and disclosed on each balance sheet
date.

2.22 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.

2.23 Employee benefits
There are various pension plans within Burckhardt Compression based on local conditions in their respective coun-
tries. 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 avail-
able employer contribution reserves are recognized as financial asset. For foreign plans, the economic impact is
determined according to country-specific methods.

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

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
structure 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 conservative, risk-averse financial policy. Financial risk management is based on the principles and regulations
established by the Board of Directors. 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 busi-
ness can be handled smoothly, while the group treasury is responsible for maintaining the group’s overall liquidi-
ty. 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
Executive 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 transac-
tions 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 companies belonging to Burckhardt Compression group may, after consultation
with group treasury, hedge the foreign-exchange risks of their sales and purchase transactions through local qual-
ified 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 accordingly in the future. As a globally active corporation,
Burckhardt Compression is also exposed to currency risks resulting 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 concentration of customer-related risks within Burckhardt Compression Group as the most important cus-

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tomers 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 inde-
pendently 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.

Interest rate risks
Interest rate risks arise from fluctuations in interest rates which could have a negative impact on the financial po-
sition 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
policies, Burckhardt Compression seeks to secure the continuation of its business activities, to achieve an accept-
able 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 cap-
ital, 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

Shenyang Yuanda Compressor Co. Ltd. (China)
On March 11, 2022, the remaining payment of CHF 51.5 mn (deferred consideration) was made for the acquisition
of the remaining 40% of the shares of Shenyang Yuanda Compressor Co. Ltd. The acquisition of the 40% minority
interest took place in fiscal year 2020.

Mark van Schaick BV (Netherlands)
On December 21, 2021, Burckhardt Compression AG acquired 100% of the shares in Mark van Schaick BV, a com-
pany 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 compres-
sors. 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 good-

will 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

107

2’898

955

–3’543

–188

164

9’298

9’462

–

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The Japan Steel Works Ltd. (Japan)
On July 5, 2021, the remaining payment of CHF 2.4 mn (deferred consideration) was made for the acquisition of
the global compressor business from the Japan Steel Works Ltd. (JSW), Japan. The acquisition took place in fis-
cal year 2020.

5. Segment reporting

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

Services Division
Burckhardt Compression’s Services Division is a one-stop provider of a full range of services for reciprocating com-
pressors and stands for top-quality, high-performance components for all makes of reciprocating compressors, as
replacement parts, or to repair or upgrade existing installations. Original spare parts backed by Burckhardt Com-
pression’s manufacturing 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.

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

2022

2021

2022

2021

2022

2021

2022

2021

Sales

489’663

372’657

340’038

278’041

Cost of goods sold

–393’358

–301’384

–191’876

–158’470

Gross profit

Gross profit as % of sales

Operating income

Operating income as % of sales

96’305

19.7%

30’294

6.2%

71’273

148’162

119’571

19.1%

21’108

5.7%

43.6%

75’041

22.1%

43.0%

–

829’701

650’698

–585’234

–459’854

244’467

190’844

29.5%

94’963

11.4%

29.3%

70’336

10.8%

58’353

–10’372

–9’125

21.0%

–

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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

6. Personnel expenses

2022

2021

275’816

5’217

105’576

6’626

25’259

291’483

119’724

829’701

177’546

4’174

73’603

11’148

49’391

240’334

94’502

650’698

2022

2021

9’163

2’353

2’073

1’070

14’768

9’324

562

3’395

804

14’227

in CHF 1’000

2022

2021

Wages and salaries

Social security and pension expenses

Other personnel expenses

Total personnel expenses

–197’875

–41’572

–24’589

–264’036

–173’249

–34’758

–19’597

–227’604

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7. Research and development expenses

In the fiscal year 2022, Research and Development activities focused on the development of new and standardized
solutions for the hydrogen market. Furthermore, we centered our activities to further enhance our marine solutions
with increased customer value as well as on adapting our PCI portfolio to the latest market requirements.

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

2022

17’224

13’021

30’245

–21’469

–17’364

–38’833

2021

7’022

16’935

23’957

–7’683

–10’161

–17’844

8’588

6’113

Other operating income includes real estate income of CHF 6.8 mn (prior year: CHF 6.9 mn).

Other operating expenses include real estate expenses amounting to CHF 3.6 mn (prior year: CHF 3.7 mn) and
one-off costs and provisions in amount of CHF 7.1 mn for write-offs and other costs relating to the exit from the
Russian market.

9. Financial income and expenses

in CHF 1’000

Interest expenses

Interest income

Other financial income (+) and expenses (–)

Total financial income and expenses

2022

–3’402

1’125

–1’528

–3’805

2021

–3’361

350

–1’735

–4’746

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

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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

2022

2021

–21’003

–154

–21’157

–16’221

1’030

–15’191

in CHF 1’000

2022

2021

Earnings before taxes

Weighted average tax rate in %

Expected income tax expenses at weighted average tax rate

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

91’158

65’590

21.8%

–19’827

–997

–109

–

659

–883

–21’157

23.2%

22.5%

–14’728

–27

–1’663

–

1’300

–73

–15’191

23.2%

The effective tax rate of Burckhardt Compression Group of 23.2% (prior year: 23.2%) corresponds to the weighted
average tax rate based on the profit before income taxes and the tax rate of each group company.

2022

2021

6’026

–

20’894

–18’804

537

8’653

2’960

11’613

4’676

–

14’558

–13’513

305

6’026

2’323

8’349

Current income taxes

in CHF 1’000

Net current income tax liabilities

Balance as per 04/01/2022 / 04/01/2021

Changes in the consolidation scope

Recognized in the income statement

Income taxes paid

Translation differences

Balance as per 03/31/2023 / 03/31/2022

thereof current tax assets

thereof current tax liabilities

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Deferred income taxes

in CHF 1’000

Net deferred income tax liabilities

Balance as per 04/01/2022 / 04/01/2021

Changes in the consolidation scope

Recognized in the income statement

Recognized in equity

Translation differences

Balance as per 03/31/2023 / 03/31/2022

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

11. Earnings per share

Net income attributable to the shareholders
of Burckhardt Compression Holding AG (in CHF 1’000)

Average number of outstanding shares

Earnings per share (CHF)

2022

2021

–4’723

–

154

710

190

–3’669

17’915

14’246

–3’417

–

–1’030

119

–395

–4’723

16’225

11’502

03/31/2023

03/31/2022

–

49’725

11’445

–7’179

4’266

2’389

43’457

45’846

10’302

–5’507

4’795

2022

2021

69’942

3’388’306

20.64

50’244

3’390’572

14.82

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

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12. Intangible assets

Acquisition costs

in CHF 1’000

Software

Other
intangible
assets

Intangible
assets
under con-
struction

2022
Total

Software

Other
intangible
assets

Intangible
assets
under con-
struction

2021
Total

Balance as per 04/01/2022 / 04/01/2021

Changes in the consolidation scope

Additions

Disposals

Reclassifications

Currency translation differences

Balance as per 03/31/2023 / 03/31/2022

Accumulated amortization

5’674

41’082

32’904

685

3’431

37’020

34’721

–

1’124

687

–

–1’580

–39

–

3’292

–44

–

4’480

–1’663

452

–293

34’424

–4’435

–3’903

–53

739

–36

4’451

–382

39’614

–

453

–

1’693

–329

34’721

–

–1

687

–

4’659

–731

–1’693

–

5’115

–731

–

–322

5’674

41’082

in CHF 1’000

Software

Other
intangible
assets

Intangible
assets
under con-
struction

2022
Total

Software

Other
intangible
assets

Intangible
assets
under con-
struction

2021
Total

Balance as per 04/01/2022 / 04/01/2021

–27’009

–613

Changes in the consolidation scope

Additions

Disposals

Reclassifications

Currency translation differences

–

–3’726

1’578

1’651

233

–

–62

–

Balance as per 03/31/2023 / 03/31/2022

–27’273

–597

–

–27’622

–24’097

–572

–

–3’788

–3’187

1’613

1’651

276

–

275

–

–45

–

–27’870

–27’009

–613

–

–24’669

–

–3’232

–

279

–27’622

Net book value

in CHF 1’000

Software

Other
intangible
assets

Intangible
assets
under con-
struction

2022
Total

Software

Other
intangible
assets

Intangible
assets
under con-
struction

2021
Total

As per 04/01/2022 / 04/01/2021

As per 03/31/2023 / 03/31/2022

7’712

7’151

142

5’674

4’451

13’460

11’744

8’807

7’712

113

3’431

5’674

12’351

13’460

Burckhardt Compression has reclassified costs relating to cloud computing arrangements from Intangible Assets
to Other Assets (note 14).

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

in CHF 1’000

Acquisition costs

Balance as per 04/01/2022 / 04/01/2021

Additions from acquisitions

Balance as per 03/31/2023 / 03/31/2022

2022

2021

156’005

–

156’005

146’707

9’298

156’005

in CHF 1’000

2022

2021

Accumulated amortization

Balance as per 04/01/2022 / 04/01/2021

Amortization expense

Balance as per 03/31/2023 / 03/31/2022

in CHF 1’000

Net book value

–122’404

–10’462

–132’866

–111’589

–10’815

–122’404

2022

2021

Theoretical net book value as per 04/01/2022 / 04/01/2021

Theoretical net book value as per 03/31/2023 / 03/31/2022

33’601

23’139

35’118

33’601

in CHF 1’000

03/31/2023

03/31/2022

Theoretical impact on equity

Equity as per balance sheet

Theoretical capitalization of goodwill

Theoretical equity including net book value of goodwill

261’583

23’139

284’722

242’889

33’601

276’490

in CHF 1’000

2022

2021

Theoretical impact on net income

Net income as per income statement

Amortization of goodwill

Theoretical net income after goodwill amortization

70’001

–10’462

59’539

50’399

–10’815

39’584

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13. Property, plant & equipment

Acquisition costs

in CHF 1’000

Balance as per 04/01/2022 /
04/01/2021

Changes in the consolidation
scope

Additions

Disposals

Balance as per 03/31/2023 /
03/31/2022

Accumulated depreciation

in CHF 1’000

Balance as per 04/01/2022 /
04/01/2021

Changes in the consolidation
scope

Additions

Disposals

Reclassifications

Land
and
buildings

Machinery
and
equipment

Other
business
assets

Assets
under
con truction

2022
Total

Land
and
buildings

Machinery
and
equipment

Other
business
assets

Assets
under
con truction

2021
Total

163’959 143’746

34’754

7’882 350’341

157’343

134’846

33’617

6’807

332’613

–

854

6’375

2’250

5’289

14’768

–

271

2’957

4’840

–3’808

–1’042

–3’074

–224

–8’148

–257

–1’122

Reclassifications

1’255

4’525

733

–7’455

–942

Currency translation differences

–2’840

–3’703

–1’331

–184

–8’058

7’644

–1’042

2’701

–476

–

1’777

–305

–

7’339

–273

214

–6’163

2’957

14’227

–1’957

4’396

–549

172

–1’895

159’420 149’901

33’332

5’308 347’961

163’959

143’746

34’754

7’882

350’341

Land
and
buildings

Machinery
and
equipment

Other
business
assets

Assets
under
con truction

2022
Total

Land
and
buildings

Machinery
and
equipment

Other
business
assets

Assets
under
con truction

2021
Total

–39’678 –102’139 –25’288

– –167’105

–35’356 –94’681 –22’496

– –152’533

–

–4’940

–9’309

–3’732

– –17’981

–4’576

–8’749

–3’450

1’231

–

972

251

2’976

–251

995

–

5’179

–

3’985

–

246

992

–

299

271

–

387

–

–16’775

1’271

–

932

Currency translation differences

806

2’184

Balance as per 03/31/2023 /
03/31/2022

Net book value

in CHF 1’000

–42’581 –108’041 –25’300

– –175’922

–39’678 –102’139 –25’288

– –167’105

Land
and
buildings

Machinery
and
equipment

Other
business
assets

Assets
under
con truction

2022
Total

Land
and
buildings

Machinery
and
equipment

Other
business
assets

Assets
under
con truction

2021
Total

As per 04/01/2022 / 04/01/2021

124’281

41’607

9’466

7’882 183’236

121’987

40’165

11’121

6’807

180’080

As per 03/31/2023 / 03/31/2022

116’839

41’860

8’032

5’308 172’039

124’281

41’607

9’466

7’882

183’236

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14. Other assets

Other assets mainly include rental deposits and capitalized costs relating to cloud computing arrangements.

15. Inventories

in CHF 1’000

Raw materials, supplies and consumables

Work in progress

Finished products and trade merchandise

Advance payments to suppliers

Valuation allowance

Total inventories

03/31/2023

03/31/2022

69’990

120’549

76’228

41’616

–22’137

286’246

44’022

82’858

55’517

27’846

–17’881

192’362

The capital invested in work in progress and advance payments to suppliers is fully financed by advance pay-
ments from customers, leaving a positive balance as of March 31, 2023 of CHF 60.7 mn (prior year: CHF 52.0 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

03/31/2023

03/31/2022

Customers’
advance
payments

Inventories

Customers’
advance
payments

Inventories

Gross amounts

381’332

317’935

266’444

236’738

Offsetting of customers’ advance payments

95’086

74’082

Net amounts reported in the consolidated balance sheet

286’246

222’849

192’362

162’656

16. Trade receivables

in CHF 1’000

Trade receivables, gross

Allowance for bad debts

Trade receivables, net

03/31/2023

03/31/2022

269’997

–24’452

245’545

274’273

–15’290

258’983

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in CHF 1’000

2022

2021

Allowance for bad debts

Balance as per 04/01/2022 / 04/01/2021

Changes in the consolidation scope

Additions

Release

Utilization

Currency translation adjustments

Balance as per 03/31/2023 / 03/31/2022

–15’290

–

–11’125

738

1’221

–24’452

–10’703

–

–5’576

952

261

–224

–15’290

The allowance for bad debts at the end of the 2022 and 2021 fiscal years was entirely related to accounts receiv-
ables which were more than 90 days overdue as per closing date.

in CHF 1’000

03/31/2023

03/31/2022

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 03/31/2023 / 03/31/2022

166’386

20’374

11’949

2’470

44’366

245’545

67.8

8.3

4.8

1.0

18.1

100.0

140’546

23’464

17’247

12’409

65’317

258’983

54.3

9.1

6.6

4.8

25.2

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

03/31/2023

03/31/2022

11’790

7’568

5’207

2’960

40’997

68’522

12’295

7’483

3’330

2’323

39’746

65’177

Other current receivables include the outstanding government grants in connection with the completed relocation
project of Shenyang Yuanda Compressor Co. Ltd in China.

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18. Share capital and treasury shares

03/31/2023

03/31/2022

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 break-
down of equity into its individual components is shown in the statement of changes in equity.

The board of Directors is empowered to increase the company's share capital by a maximum of CHF 850’000
at any time until June 30, 2024 by issuing a maximum of 340'000 fully paid registered shares with a nominal value
of CHF 2.50 each (authorized capital).

At the upcoming annual general meeting of shareholders on July 1, 2023, the Board of Directors of Burckhardt

Compression Holding AG will propose a dividend for the 2022 fiscal year of CHF 12.00 (prior year: CHF 7.50).

As of March 31, 2023, non-distributable reserves amounted to CHF 1.7 mn (prior year: CHF 1.7 mn).

03/31/2023

03/31/2022

Number of treasury shares

33’413

9’343

During the fiscal year 2022, 24'327 treasury shares were purchased at an average share price of CHF 563.00 in the
amount of CHF 13.7 mn. No treasury shares were purchased in fiscal year 2021.

All treasury shares are held for the share-based long-term incentive program within the Burckhardt Compres-

sion Group respectively for the fixed compensation of the board of directors (20% of which paid in shares).

19. Financial liabilities

in CHF 1’000

03/31/2023

03/31/2022

Non-current financial liabilities

Current financial liabilities

Total financial liabilities

132’000

4’214

136’214

128’881

28’925

157’806

The average effective interest rate amounted to 1.7% in fiscal year 2022 (prior year: 1.3%).

Currencies of financial liabilities

in CHF 1’000

03/31/2023

03/31/2022

Financial liabilities in CHF

Financial liabilities in USD

Financial liabilities in other currencies

Total financial liabilities

132’029

1’261

2’924

136’214

134’988

20’928

1’890

157’806

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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

03/31/2023

03/31/2022

100’692

290

–

31’018

132’000

586

100’681

198

–

27’416

128’881

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

2022
Total

Employee-
related

Warranties,
penalties,
unprofitable
contracts

Other

2021
Total

Balance as per 04/01/2022 / 04/01/2021

9’111

31’070

1’211

41’392

11’508

26’426

3’118

41’052

Changes in the consolidation scope

Additions

Release

Utilization

Currency translation differences

Balance as per 03/31/2023 / 03/31/2022

–

2’543

–533

–1’060

–369

9’692

12’684

–2’294

–8’053

–1’089

32’318

–

2’798

18’025

–44

–2’871

–

1’537

–664

195

14’470

–487

–

1’031

–236

195

17’038

–1’387

–1’117

–10’230

–2’873

–9’185

–2’719

–14’777

–133

–1’591

2’715

44’725

–397

9’111

5’271

3’840

–349

31’070

7’641

23’429

1’211

1’203

–729

41’392

12’920

28’472

Thereof non-current

Thereof current

4’545

5’147

7’255

25’063

101

11’901

2’614

32’824

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.

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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

03/31/2023

03/31/2022

10’887

3’923

1’648

11’613

12’434

40’505

9’570

3’987

868

8’349

13’357

36’131

Other current liabilities mainly consist of various social securities payables as well as various taxes payables such
as VAT or withholding taxes.

23. Accrued liabilities and deferred income

in CHF 1’000

03/31/2023

03/31/2022

Contract-related liabilities

Vacation and overtime

Salary and bonus payments

Miscellaneous

Total accrued liabilities and deferred income

73’835

5’040

22’133

7’355

108’363

58’451

4’011

14’262

8’129

84’853

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

03/31/2023

03/31/2022

263’599

5’207

1’648

167’506

3’330

868

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25. Contingent liabilities

Guarantees
Burckhardt Compression guarantees essentially for securing customer advance payments and for eventual war-
ranty claims from customers.

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

As per March 31, 2023, Burckhardt Compression had issued guarantees in amount of CHF 346.6 mn (prior year:

CHF 238.8 mn).

Other contingent liabilities
As per March 31, 2023, 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

03/31/2023

03/31/2022

3’675

10’097

2’331

16’103

3’132

11’606

5’108

19’846

Purchase commitments
Purchase commitments for capital expenditure as per March 31, 2023 amounted to CHF 3.5 mn (prior year:
CHF 4.7 mn).

27. Pledged assets

As per March 31, 2023, Burckhardt Compression had pledged assets with a carrying amount of CHF 95.8 mn (prior
year: CHF 91.0 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.

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28. Share-based payments

Since 2017, there is a long-term incentive plan for the members of the Executive Management and certain other
employees 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 2022, 257 shares at a fair value of CHF 431.20 were granted for the fixed compensation of the Board of Directors

(20% of which paid in shares).

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).

Personnel expenses in 2022 for share-based payments amounted to CHF 4.3 mn (prior year: CHF 4.4 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 2022 and 2021 with the members of the Board of Directors, Executive Management or
other related parties.

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 Compres-
sion has no payment obligations beyond making these defined contributions.

Burckhardt Compression's pension plans in Switzerland consist of two independent pension funds: “Sulzer Vorsor-
geeinrichtung” (SVE), a base plan for all employees, and “Johann Jakob Sulzer Stiftung” (JJS), a plan for employees
with salaries 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 alloca-
tion 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 underfunding, 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, 2022 amounted to 118.4% (SVE; prior year: 126.7%) and 115.2% (JJS; prior year: 127.2%). The
technical interest rate used by both collective plans amounted to 1.5% (prior year: 1.5%).

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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

03/31/2023

03/31/2022

2022

2021

Pension plans with surplus

Unfunded pension plans

Total

–

–1’370

–

–1’773

–

351

–

–9’386

–

351

–9’386

–9’035

–8’408

181

–8’227

31. Events after the balance sheet date

There were no events between the balance sheet date and the date these consolidated financial statements
were approved by the Board of Directors which would require additional disclosures or changes in the consolidat-
ed financial statements.

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32. 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
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
a
S

e
c
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.

Cergy Saint
Christophe, France

Burckhardt Compression (España) S.A.

Madrid, Spain

Burckhardt Compression (UK) Ltd.

Burckhardt Compression (US) Inc.

Burckhardt Compression (Canada) Inc.

Bicester,
United Kingdom

Houston, USA

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 Paolo, 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.

Burckhardt Compression South Africa (Pty) Ltd.

Singapore,
Singapore

Sunnyrock,
South Africa

Burckhardt Compression Korea Busan Ltd.

Busan, South Korea

Burckhardt Compression (Saudi Arabia) LLC

Burckhardt Compression
North America Service LLC

Burckhardt Compression (Netherlands) BV

Dammam, Saudi
Arabia

Wilmington, USA

Rotterdam,
Netherlands

124

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

EUR
18’000

100%

•

100%

•

100%

•

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Company

Registered
office

Registered
capital

Interest
in capital

Burckhardt Compression (Sweden) AB

Landvetter, Sweden

Burckhardt Compression (Thailand) Co. Ltd.

Rayong, Thailand

Shenyang Yuanda Compressor Co. Ltd. 1

Shenyang, China

Liaoning Yuanyu Industrial Machinery Co. Ltd.

Kaiyuan, China

Shenyang Yuanda Compressor Automatic
Control System Co. Ltd.

Shenyang, China

Compressor Tech Holding AG 1

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

SEK
100’000

THB
5’000’000

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%

&
h
c
r
a
e
s
e
R

t
n
e
m
p
o
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
a
S

e
c
v
r
e
S

•

Company is directly held by Burckhardt Compression Holding AG.

1
All other companies are indirectly held by Burckhardt Compression Holding AG.

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Report of the statutory auditor
to the General Meeting of Burckhardt Compression Holding AG

Winterthur

Report on the audit of the 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 2023, the consolidated balance
sheet as at 31 March 2023, the consolidated cash flow statement, the 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 98 to 125) give a true and fair view of the consolidated fi-
nancial position of the Group as at 31 March 2023 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 Standards on Auditing (SA-CH). Our responsibilities
under those provisions and standards are further described in the 'Auditor’s responsibilities for the audit of the consoli-
dated 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 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 Group materiality: CHF 4'250'000

We concluded full scope audit work and audits of selected account balances at
five reporting units in three countries. Our audit scope addressed over 65% 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 8, Postfach, 8400 Winterthur, Switzerland
Telefon: +41 58 792 71 00, 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.

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Burckhardt CompressionAnnual Report 2022 3 Burckhardt Compression Holding AG | Report of the statutory auditor to the General Meeting 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 4'250'000 Benchmark applied Earnings before taxes Rationale for the materiality bench-mark applied We chose earnings before taxes 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 425'000 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. Key audit matters 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 2023, work in progress in the amount of CHF 120.5 million was recognised in the balance sheet. Management applies judgement in determining the costs to be incurred until their completion, possible penalties as well as net realizable value. An incorrect estimate could have a significant impact on the result of 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 margin and changes in the margin compared to the Financial Report

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Burckhardt CompressionAnnual Report 2022 4 Burckhardt Compression Holding AG | Report of the statutory auditor to the General Meeting Please refer to page 104 (Accounting policies – Invento-ries) and page 116 (Inventories) in the Notes to the Consoli-dated financial statements. planning phase, and focused our testing on the fol-lowing: • 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 pro-ject managers the progress of the projects based on the latest project reports, the costs still to be in-curred until their completion and changes in the esti-mated margin. • We obtained written information from the legal rep-resentatives of the Group. We inspected this written information with regard to indications of potential quality deficiencies or penalties and assessed whether these matters were accounted for appropri-ately in relation to work in progress. • 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 parameters with the estimates made in the planning phase in order to assess, with hindsight, the accu-racy of the estimates 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. Other information The Board of Directors is responsible for the other information. The other information comprises the information included in the annual report, but does not include the financial statements, the consolidated financial statements, the compensa-tion report and our auditor’s reports thereon. Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial state-ments or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Board of Directors' responsibilities for the consolidated financial statements The Board of Directors is responsible for the preparation of the consolidated financial statements, which 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 material 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 Financial Report

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Burckhardt CompressionAnnual Report 2022 5 Burckhardt Compression Holding AG | Report of the statutory auditor to the General Meeting 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 SA-CH 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 consolidated financial statements. As part of an audit in accordance with Swiss law and SA-CH, we exercise professional judgment and maintain profes-sional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrep-resentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropri-ate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and re-lated disclosures made. • Conclude on the appropriateness of the Board of Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty ex-ists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evi-dence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclo-sures, and whether the consolidated financial statements represent the underlying transactions and events in a man-ner that achieves fair presentation. • Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with the Board of Directors or its relevant committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the Board of Directors or its relevant committee with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safe-guards applied. From the matters communicated with the Board of Directors or its relevant committee, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Financial Report

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Burckhardt CompressionAnnual Report 2022 6 Burckhardt Compression Holding AG | Report of the statutory auditor to the General Meeting Report on other legal and regulatory requirements In accordance with article 728a paragraph 1 item 3 CO and PS-CH 890, we confirm that an internal control system exists which has been designed for the preparation of the 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 Boehm Uglow Kevin Mueller Licensed audit expert Auditor in charge Licensed audit expert Winterthur, 5 June 2023 Financial Report

Financial Statements of Burckhardt
Compression Holding AG, Winterthur
Balance sheet

in CHF 1’000

Notes

31.03.2023

31.03.2022

704

1’628

–

2’332

38’945

253’681

292’626

294’958

–

976

5’648

6’634

100’000

8’500

1’700

172’319

21’577

–15’772

188’324

294’958

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

102

103

104

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

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

131

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Burckhardt CompressionAnnual Report 2022
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

2022

2021

45’127

476

192

45’867

–1’616

–68

–21’600

–1’006

–24’290

21’577

5’128

856

192

3’807

9’983

–1’552

–3’090

–1’563

–436

–6’641

3’342

Notes to the financial statements of
Burckhardt Compression Holding AG

101 Accounting policies
The financial statements as per March 31, 2023 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

Investments in subsidiaries are valued at cost less any necessary adjustments for impairment. 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.

All values in the annual financial statements are reported in thousand Swiss Francs unless otherwise indicated.
Burckhardt Compression Holding AG’s fiscal year 2022 comprises the period from April 1, 2022 to March 31, 2023.

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Burckhardt CompressionAnnual Report 2022Financial Report

102 Subsidiaries
The equity interests held directly and indirectly by Burckhardt Compression Holding AG are shown in note 32 “Group
Companies” of the consolidated financial statements.

In accordance with Art. 70 para. 3 of the Federal Act on Direct Federal Taxation the investment in Shenyang

Yuanda Compressor Co., Ltd. was written off by CHF 20.0 mn in fiscal year 2022.

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 total-
ly or partially 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
establishes his subordination to an accredited banking supervision and securities authority, and if he/she has con-
cluded 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 right.
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, 2023, 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 Exchange Reg-
ulation Ltd., the following shareholders reported shareholdings of at least 3% of the share capital and voting rights
as of March 31, 2023 (according to the statutory bylaws the voting rights of NN Group N.V., The Goldman Sachs
Group Inc 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

31.03.2023

31.03.2022

Name

Country

% of shares

MBO shareholder pool (Valentin Vogt, Daniela Vogt Harry Otz,
Leonhard Keller, Martin Heller, Ursula Heller, Marcel Pawlicek)
NN Group N.V.1
The Goldman Sachs Group, Inc2

UBS Fund Management (Switzerland) AG

BlackRock, Inc.

12.40

9.86

7.37

5.02

3.07

12.40

9.86

<3.0

5.02

3.07

1 According to the notification to the Disclosure Office of SIX Exchange Regulation Ltd. published on November 19, 2021.
2 According to the notification to the Disclosure Office of SIX Exchange Regulation Ltd. published on June 24, 2022, with the following remark:
“This notification is being made because The Goldman Sachs Group, Inc. (“GS Group”) has acquired control of NN Investment Partners Holdings
N.V. ("NNIP") and NNIP has a discretionary asset management mandate with respect to BCHN shares which are owned by NN Group N.V.”

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Burckhardt CompressionAnnual Report 2022Financial Report

Detailed overview of shareholdings
As per March 31, 2023, 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

Name

Members of the Board of Directors

Ton Büchner

Urs Leinhäuser

Dr. Monika Krüsi

Dr. Stephan Bross

David Dean
Maria Teresa Vacalli1

Total

Executive Management
Fabrice Billard2
Marcel Pawlicek3

Rolf Brändli
Vanessa Valentin4

Rainer Dübi
Andreas Brautsch5

Total

Chair

Member

CEO

Former CEO

CFO

CHRO

President Services Division

President Systems Division

Function

31.3.2023
Total shares

31.3.2022
Total shares

5’098

1’758

1’163

393

452

n/a

8’864

1’300

37’737

1’223

n/a

824

n/a

41’084

49’948

1.5

5’184

1’796

1’201

431

490

9’102

1’300

n/a

1’223

824

3’347

12’449

0.4

2021

9’634

–

–291

9’343

Total Board of Directors and Executive Management

As a % of all outstanding share

1 From July 2, 2022
2 From April 1, 2022 appointed CEO. Previously, President Systems Division
3 Until March 31, 2022 former CEO in office
4 From June 1, 2022
5 From October 1, 2022

104 Treasury shares

in CHF 1’000

Number at the beginning of the period

Purchases

Sales

Number at the end of the period

The average selling price did amount to CHF 228.56 (2021: CHF 228.56)

2022

9’343

24’327

–257

33’413

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Burckhardt CompressionAnnual Report 2022Financial 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

31.03.2023

31.03.2022

Total liabilities to pension funds

Net release of undisclosed reserves

in CHF 1’000

31.03.2023

31.03.2022

Net release of undisclosed reserves

Guarantees

in CHF 1’000

Guarantees

31.03.2023

31.03.2022

28’399

25’605

Burckhardt Compression Holding AG issues advance payment guarantees and performance bonds in the name
of Burckhardt 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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Burckhardt CompressionAnnual Report 2022
Financial Report

Remuneration of the Board of Directors and the Executive Board
Type and amount of remuneration of the members of the Board of Directors and the Executive Board as well as
the principles and basic elements of the company’s compensation policy are depicted and explained in the com-
pensation report on pages 84 to 92.

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
adjustment 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

2022

2021

Retained earnings at the beginning of the period

Distributed dividend

Net income of the year

Retained earnings at the disposal of the Annual General Meeting

197’749

–25’430

21’577

193’896

216’446

–22’038

3’342

197’749

The Board of Directors proposes the following appropriation

Gross dividend

–40’800

–25’500

Retained earnings carried forward

153’096

172’249

The Board of Directors will propose payment of a gross dividend of CHF 12.00 per registered share at the Annual
General Meeting of Shareholders on July 1, 2023.

Gross dividend

Less 35% withholding tax

Net dividend

2022

12.0

–4.2

7.8

2021

7.5

-2.6

4.9

2020

6.5

-2.3

4.2

136

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Burckhardt CompressionAnnual Report 2022Financial Report

Report of the statutory auditor
to the General Meeting of Burckhardt Compression Holding AG

Winterthur

Report on the audit of the financial statements

Opinion

We have audited the financial statements of Burckhardt Compression Holding AG (the Company), which comprise the
balance sheet as at 31 March 2023, the income statement for the year then ended, and notes to the financial state-
ments, including a summary of significant accounting policies.

In our opinion, the financial statements (pages 131 to 136) comply with Swiss law and the Company’s articles of incorpo-
ration.

Basis for opinion

We conducted our audit in accordance with Swiss law and Swiss Standards on Auditing (SA-CH). Our responsibilities
under those provisions and standards are further described in the 'Auditor’s responsibilities for the audit of the financial
statements' section of our report. We are independent of the Company 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 2'900'000

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 Company, the accounting processes and controls,
and the industry in which the Company 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 8, Postfach, 8400 Winterthur, Switzerland
Telefon: +41 58 792 71 00, 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.

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Burckhardt CompressionAnnual Report 2022

Financial Report

138

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Burckhardt CompressionAnnual Report 2022 3 Burckhardt Compression Holding AG | Report of the statutory auditor to the General Meeting 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 2'900'000 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 290'000 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. Key audit matters 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 253.7 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 133 (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 their pro-rata share of the respective company's equity or the company's valuation, based on an acceptable valuation method. • We checked the key assumptions applied by Man-agement for reasonableness (revenue and margin 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 2023. Financial Report

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Burckhardt CompressionAnnual Report 2022 4 Burckhardt Compression Holding AG | Report of the statutory auditor to the General Meeting Other information The Board of Directors is responsible for the other information. The other information comprises the information included in the annual report, but does not include the financial statements, the consolidated financial statements, the compensa-tion report and our auditor’s reports thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assur-ance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge ob-tained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Board of Directors' responsibilities 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 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 Company's ability to con-tinue 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 Company or to cease operations, or has no realistic alternative 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 SA-CH 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 de-cisions of users taken on the basis of these financial statements. As part of an audit in accordance with Swiss law and SA-CH, we exercise professional judgment and maintain profes-sional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, de-sign and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropri-ate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropri-ate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's in-ternal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and re-lated disclosures made. • Conclude on the appropriateness of the Board of Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence ob-tained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern. Financial Report

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Burckhardt CompressionAnnual Report 2022 5 Burckhardt Compression Holding AG | Report of the statutory auditor to the General Meeting We communicate with the Board of Directors or its relevant committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the Board of Directors or its relevant committee with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safe-guards applied. From the matters communicated with the Board of Directors or its relevant committee, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Report on other legal and regulatory requirements In accordance with article 728a paragraph 1 item 3 CO and PS-CH 890, we confirm that an internal control system exists which has been designed for the preparation of the financial statements according to the instructions of the Board of Di-rectors. We further confirm that the proposal by the Board of Directors for the appropriation of retained 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 Boehm Uglow Kevin Mueller Licensed audit expert Auditor in charge Licensed audit expert Winterthur, 5 June 2023 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 insu-
lation 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

MRP

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 report.burckhardtcompression.com/en.
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
Scanderberg Sauer, Zurich
iStock

PR consultant
PEPR, Oetwil am See

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Burckhardt Compression Holding AG
8404 Winterhur, Switzerland
Tel. +41 52 261 55 00
Fax +41 (0)52 262 00 51
info@burckhardtcompression.com
www.burckhardtcompression.com

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