Burckhardt Compression Annual Report 2023

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FY2023 Annual Report · Burckhardt Compression

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Annual Report

2023

We create leading compression solutions
for a sustainable energy future.

Table of contents

06 Report Section

82 Corporate Governance

1. Group structure and shareholders

2. Capital Structure

3. Board of Directors

4. Executive Management

5. Compensation, shareholdings and loans

6. Shareholders’ participation rights

7. Changes of control and defensive measures

8. Auditors

Information policy

10. Quiet periods

98 Compensation Report

1. Basis

2. Organization, Duties and Powers

3. Compensation system

102 4. Compensation allocated with comparative figures

for the previous year

104 5. Overview of shareholdings and distributed shares

105 6. Transactions with the Board of Directors, the Executive

Management and related parties

7. Activities at other companies

106 8. Motions for the Annual General Meeting

9. Evaluation of the compensation system

107 Report of the statutory auditor to the general meeting

06 At a Glance

08 Milestones 2023

International

Letter to Shareholders

15 Key Figures

16 Our Company and Strategy

Systems Division

Services Division

34 Sustainability

36 On a strategic path to a sustainable

organization

Systems Division:
Compression technology for a
sustainable energy future

Services Division:
Sustainability benefits for our customers

Sustainability Report 2023

1. Greenhouse gas emissions and climate change

2. Energy use and efficiency

3. Longevity and cyclability

4. Environmental impacts of application purpose

5. Working conditions

6. Occupational health and safety

7. Product safety

8. Business conduct

Our Commitment

Extended key figures

GRI content index

SASB Mapping

Independent practitioner’s limited assurance report

Burckhardt CompressionAnnual Report 2023

135

25. Contingent liabilities

26. Commitments

27. Pledged assets

136

28. Share-based payments

29. Related-party transactions

30. Employee benefit obligations

137 31. Events after the balance sheet date

138 32. Group companies and associates

140 Report on the audit of the financial report
(consolidated financial statements)

145 Financial Statements of Burckhardt
Compression Holding AG, Winterthur

Balance sheet

146

Income statement

Notes to the financial statements of Burckhardt

Compression Holding AG

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

(financial statements)

155 Glossary/imprint

110 Financial Report

112 Consolidated income statement

113 Consolidated balance sheet

114 Consolidated cash flow statement

115 Consolidated statement of changes in equity

116 Notes to the consolidated financial

statements

1. General Information

2. Accounting Policies

120 3. Financial risk management

122 4. Business combinations and other changes in

the scope of consolidation

5. Segment reporting

123 6. Personnel expenses

124

7. Research and development expenses

8. Other operating income and expenses

9. Financial income and expenses

125

126

127

129

130

131

132

10. Income taxes

11. Earnings per share

12. Intangible assets

13. Property, plant and equipment

14. Other assets

15. Inventories & Customers Advance Payments

16. Trade receivables

17. Other current receivables

18. Share capital and treasury shares

19. Financial liabilities

133

20. Provisions

21. Other non-current liabilities

134

22. Other current liabilities

23. Accrued liabilities and deferred income

24. Derivative financial instruments

Burckhardt CompressionAnnual Report 2023

Burckhardt Compression creates leading
compression solutions for a sustainable energy
future and the long-term success of its
customers. Together with its brands Burckhardt
Compression, PROGNOST, SAMR Métal Rouge
and Shenyang Yuanda Compressor, the Group is
the only global manufacturer that covers a full
range of reciprocating compressor technologies
and services. Its customized and modularized
compressor systems are used in the Chemical/
Petrochemical, Gas Transport & Storage,
Hydrogen Mobility & Energy and Industrial Gas
sectors as well as for applications in Refinery
and Gas Gathering & Processing. Since 1844,
its passionate, customer-oriented and solution-
driven workforce has set the benchmark in
the gas compression industry.

ONLINE REPORT
report.burckhardtcompression.com/en

Burckhardt CompressionAnnual Report 2023Cover:
VARO Refinery in Cressier, Switzerland
Vitalii Tatarinov, Sales Manager,
analyzing a compressor with BC ACTIVATE,
Photography by Markus Bertschi

Burckhardt CompressionAnnual Report 2023At a Glance

New financial records

The fiscal year 2023 marks a successful continuation of
our transformation towards a sustainable energy future, with
notable achievements in order intake, sales, and operating
income. Based on these results and positive mid-term market
trends, we are raising the bar for our 2027 objectives.

Burckhardt CompressionAnnual Report 2023Burckhardt CompressionEssentials41Fiscal year 2023New financial records The fiscal year 2023 marks notable achievements in order intake, and new records in sales, operating income, and net income. Based on these results and positive mid-term market trends, we are raising the bar for our 2027 objectives.54.8– 91.760.8– 82.470.395.0– 56.8– 7.1629.6317.5658.6219.6650.7242.9261.6607.339.9676.647.2976.61’268.3829.750.470.01919191919192020202020202121212121212222222222222323232323231’124.790.1982.0297.9121.4–62.3Order intakein CHF mnNet incomein CHF mnSalesin CHF mnShareholders’ equityin CHF mnOperating income (EBIT)in CHF mnNet financial positionin CHF mnAt a Glance

Reduction in our greenhouse
gas emission intensity
12%
The 12% reduction in our green-
house gas emission intensity
(Scope 1 and 2) showcases our
sustainability commitment.

Our Lost Time Injury Rate (LTIR)
has further decreased
0.5
Our Lost Time Injury Rate (LTIR)
has further decreased from
0.6 to 0.5. This marks an
improvement compared to last
year and is below our Mid-Range-
Plan target of 0.7.

Performance FY2023
Total Shareholder Return FY2023
in %

–5

–10

–15

–20

–25

3
2
r
p
A

3
2
y
a
M

3
2
n
u
J

3
2
l
u
J

3
2
g
u
A

3
2
p
e
S

3
2
t
c
O

3
2
v
o
N

3
2
z
e
D

4
2
n
a
J

4
2
b
e
F

4
2
r
a
M

Performance since IPO
Total Shareholder Return 26 June 2006 to 31 March 2024
in %

900

800

700

600

500

400

300

200

100

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

2
2
n
u
J

3
2
n
u
J

4
2
r
a
M

+6.2
+1.8

Burckhardt Compression

SPI

+815.1

+165.7

Burckhardt Compression

SPI

Milestones 2023

Firm →

Launch of BC
ACTIVATE

Enhancing sustainability and reliability
at our customers

More than 99% of greenhouse gas emissions from compressors
occur during their use phase. Addressing this challenge requires a
multifaceted approach. One primary lever involves increasing
compressor efficiency, ensuring minimum energy consumption for
the quantity of gas required in the production process. A second
lever lies in aging infrastructure. Issues such as gas leakage and
reduced reliability become more prevalent with older compressors.
To combat these challenges head-on, we launched BC ACTIVATE,
an innovative program tailored specifically to enhance sustainability
and reliability in all compressor systems, including other brand
compressors (OBC). More than 50 compressors have been analyzed
so far, and a potential saving of 3’700 CO₂ tons per year have been
identified.

Read more on page 26.

Launch of large Standard

Diaphragm Compressor

Package for Europe

Hydrogen fuel stations for light and heavy-duty

vehicles demand a large amount of hydrogen.

To fill the gaseous hydrogen trailers, which are

often used to feed the fuel stations, compressor

systems with a sufficiently high flow and high

pressure are required. Diaphragm Compressors

are a proven solution for this application.

In fiscal year 2023, we launched a large

Standard Diaphragm Compressor Package for

Europe and already delivered some of them.

The standard-size container enables easy

transport and handling of these compressors.

The separation of the compression space from

the crank mechanism by double diaphragms

ensures the purity of the gas, preventing oil

contamination and guaranteeing the delivery of

ultra-pure hydrogen. This innovation supports

the expansion of a European hydrogen fuel

network.

Supporting the hydrogen

infrastructure in Europe

Milestones 2023

Largest order in the
company history

for solar-panel-related applications

In fiscal year 2023, we won the largest order in the history of the company for
solar-panel-related applications in China. Solar panels have seen remarkable
growth, and our compressors are essential for the production of the thin plastic
film which covers them. Securing this order of more than CHF 100 mn for Hyper
Compressors and Booster Primary Compressors is a testament to the trust given
by our customers that we can realize large-scale projects successfully. It is also
based on the confidence that we can keep those large and complex compressor
systems running reliably for decades.

Artificial Intelligence
for productivity and growth

In the reporting period, we have defined a clear
and responsible strategy on how to approach
Artificial Intelligence and especially generative
AI. We are convinced that by using AI, we can
increase productivity both internally and for
our customers, while our employees remain
in charge and stay focused on value-adding
activities. First proof-of-concepts were
completed and demonstrated how generative
AI can help us to grow our business sustain-
ably. During the year, secure GenAI-based
chatbots have been made available to all users,
enhancing mainly their means of communica-
tion and messaging. While GenAI is in focus for
internal use cases, other AI applications have
been in use for many years in our products and
services to predict failures and optimize
operations in compressor systems.

Over 93% participation rate in
employee engagement survey

Our decisions in life are mainly driven by emotions, so it’s important
that we check how people feel at work. We want to make sure
that our employees remain engaged. To measure this engagement,
we conducted an employee engagement survey based on the
research of an external partner. The questions focused on the
12 conditions that build great workplaces, divided into four blocks:
basic needs of employees, management support, teamwork,
and growth. Additional questions focused on leadership and work
culture. Overall, we had an impressive participation rate of over
93% (compared to 83% on average in the database of our external
partner). We are pleased with the overall positive ratings and will
put the employee feedback into concrete optimization actions.

Essentials

Burckhardt Compression

9
5

Essentials

Burckhardt Compression

Burckhardt CompressionAnnual Report 2023International

Burckhardt CompressionAnnual Report 2023Burckhardt CompressionEssentials18Firm →Our customersOur 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 customersSales 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 relationship with its customers. In order to understand their needs even better and continuously improve, both divisions conduct regular customer surveys.Always close to our customersCustomer proximity is one of our success factors. Burckhardt Compression is represented on all continents with five manufacturing and assembly sites and 35 Service Centers worldwide.International
International

Dear Shareholders,

The 180th anniversary of Burckhardt Compression marks a successful
start to the latest Mid-Range Plan of the company, with notable
achievements in order intake, sales, and operating income. Based on
these results and positive mid-term market trends, we are raising our
sales guidance for 2027.

The fiscal year 2023 was an eventful and successful year for Burck-
hardt Compression. Despite currency headwinds and uncertain macro-
economic conditions, we achieved an order intake clearly above the
CHF 1 bn threshold for the second time in our history. This reflects
our ongoing success in future-oriented applications, supporting the
transition of our markets towards more secure and sustainable
energy sources. Strong operational delivery of our order backlog
underpinned sales growth of 18.4%, reaching a new record of CHF
982.0 mn. The improved operating margin of 12.4% and a new record
operating income of CHF 121.4 mn underscore the strength of our
delivery capabilities and integrated business model. Earnings per
share reached CHF 26.63, representing an average annual growth
rate of 26.7% in the past five years. Based on these results, the Board
of Directors will propose a dividend per share of CHF 15.50, a 29.2%
increase from the prior year. Beyond our financial performance, we
made clear steps in the implementation of our mid-term strategy and
the 12% reduction in our greenhouse gas emission intensity show-
cases our sustainability commitments. In the market, we observe an
acceleration of various applications related to the energy transition.
Based on this positive development and our current visibility, we are
raising our sales guidance for 2027 driven by the Systems Division.
We now target CHF 1.2 bn versus CHF 1.1 bn previously, with the
profitability target brackets for both divisions up by 1 percentage
point. Given the resulting weight of the Systems Division in the sales
mix, the operating margin target bracket for the Group remains at
12%–15%.

Energy transition having a positive impact
on all market segments
In a market showing varying trends across end applications, the Sys-
tems Division achieved a strong order intake of CHF 780.2 mn. As
expected, we saw a normalization of the exceptional levels observed
in the previous year related to liquefied natural gas (LNG) tankers,
which underpins the decrease in Group order intake versus the fiscal
year 2022. On the other hand, the market related to liquefied petro-
leum gas (LPG) tankers is on the rise again. New applications related
to the energy transition are developing in all market segments. Some
of these applications are well known to us and are already significantly
contributing to our order intake and sales. For instance, despite expec-
tations for a slowdown, the demand for compressors to produce eth-
ylene-vinyl acetate (EVA) continued at a robust pace, supported by
stronger mid-term expectations for the global solar panel market. Our
strong value proposition in this application enabled us to win in China
the largest order in the history of the Company. In addition, hydrogen
presents many opportunities for us along the value chain, and we are
seeing a rapid emergence of green-hydrogen-based applications, like
green ammonia. Other applications, like biogas and sustainable avia-
tion fuels, are also starting to scale up. With our increased R&D activ-
ities and the ability to develop innovative solutions in partnership with
our customers, we stand at the forefront of these new developments.
We expect to win a significant share in these new markets in the com-
ing years, underpinning the upward revision to our Mid-Range Plan
targets.

Burckhardt CompressionAnnual Report 2023Letter to Shareholders

Services further growing in local currencies
In a market characterized by regional disparities reflecting the local
economic situation, the Services Division achieved an order intake of
CHF 344.6 mn. Corrected for exchange rate translation effects, this
represents a growth of 2.9%, following an above-average increase of
9.7% in the prior year. The Asia-Pacific market remained strong, while
the European market decreased due to economic and political uncer-
tainty, especially in Germany. On a global basis, the Services Divi-
sion’s presence in the Marine market is increasing strongly, benefiting
from a growing installed base, a strong service network, and new
offerings. Orders for digital products and services continued at a
strong pace, building on the positive momentum in the previous year.

Record financial results and dividend increase proposed
Order intake for the Group reached CHF 1’124.7 mn, a decrease of
11.3%, respectively 6.2% net of currency translation effects. Despite
a currency headwind of 7.7pp, sales were up by 18.4%, at CHF 982.0
mn, driven by a 31.3% growth in the Systems Division. Gross profit
margin reached 26.7%, a reduction of 2.8 pp compared to the previous
year, due to the increased share and less favorable product mix of the
Systems Division. Research & Development expenses increased by
CHF 2.7 mn to CHF 26.6 mn, remaining well within the target range
of 2.5% to 3.0% of sales. Selling, marketing, and general administra-
tive expenses amounted to 12.2% of sales, a significant reduction of
1.9 pp. This highlights the leverage and effectiveness of SG&A spend,
which is part of our Mid-Range Plan. Other operating income and
expenses (net) were CHF 5.4 mn (prior year: CHF –8.6 mn, including
some one-off provisions). The consolidated operating profit (EBIT)
rose substantially by 27.8% to CHF 121.4 mn. The Systems Division
increased its EBIT margin by 1.2 pp, the Services Division by 2.5 pp.
The higher weight of the Systems Division in the sales mix led to an
overall increase of the Group EBIT margin of 1.0 pp to 12.4%.

Financial expenses slightly below last year and a similar tax rate of
23.7% led to a net income of CHF 90.1 mn, which exceeded the pre-
vious year’s figure by 28.7%. Accordingly, earnings per share attrib-
utable to Burckhardt Compression Group shareholders rose from
CHF 20.64 to CHF 26.63.

Value creation was also further enhanced, with Return on Net Oper-
ating Assets (RONOA) increasing from 25.7% to 30.1%. Total equity
increased to CHF 297.9 mn (CHF +36.3 mn), while the equity ratio
slightly increased to 28.0%.

Based on these results, the Board of Directors will propose a dividend
of CHF 15.50 per share at the Annual General Meeting. This is within
our overall attractive dividend policy of a 50% to 70% payout ratio and
represents an increase of 29.2% compared with the previous year.

Further growth and transformation, with sustainability
at the core of our strategy
The fiscal year 2023 marks a successful start to our Mid-Range Plan,
which was communicated in November 2022. This strategic plan has
sustainability embedded at its core, with implications for target mar-
kets, R&D projects, capital investments, operational KPIs, and long-
term incentive plans for management. It is based on four pillars:
strengthening our core business, transforming and building new
growth avenues, operational excellence, and enhancing our business
foundations.

We have made tangible progress across these pillars. For instance,
expanding our offering in the Marine Service business has led to sub-
stantial growth in this segment and supports our strategic ambitions
to strengthen our core business. With our focus on transforming and
building new growth avenues, we have launched new products,
including a new Standard Diaphragm Compressor Package for Europe
to serve the hydrogen mobility and energy market. New services, like
BC ACTIVATE, were also successfully launched to help our customers
to optimize their compressor fleet’s reliability and greenhouse gas
footprint. On the operational excellence front, we have leveraged our
asset base in all factories to grow sales by more than 30% in the
Systems Division without significant capital investments. Moreover,
the further rollout of our Customer Relationship Management (CRM)
system in the Services Division enhances our business foundations.

While growing sales by 26% in local currencies, we reduced our
greenhouse gas emissions (Scope 1 and 2) by 5.1%, a positive step on
our path towards reaching net zero (Scope 1 and 2) in 2035. Ener-
gy-saving measures, particularly in China, complemented by solar
systems in Spain and at Prognost GmbH in Germany, contributed to
this clear progress. With major solar panel projects lined up in Swit-
zerland and China and a detailed climate roadmap for each local unit,
we are confident to reach our 2027 objectives and our net zero oper-
ational CO₂-emission ambition by 2035 (Scope 1 and 2).

Our people are fundamental to our strategy and the success of the
Group. We expanded our workforce globally by 9.1% to 3’243 FTEs to
support the growth of our deliveries and invest in future applications.
To enable the safe delivery of our increasing volume, our Health and
Safety focus was further increased, which materialized in a reduction
of our Lost Time Injury Rate (LTIR) from 0.6 to 0.5, which remains
within our Mid-Range Plan target. Finally, the results of the employee
engagement survey realized in January 2024 show again the strong
commitment of our employees and give us confidence that we are on
the right track with our transformation.

Burckhardt CompressionAnnual Report 2023Letter to Shareholders

Guidance for fiscal year 2024
We enter the fiscal year 2024 in a challenging geopolitical environ-
ment, but we do so with a solid order backlog, a strong balance sheet,
and good momentum in both divisions. Based on the strong order
intake of the past two fiscal years, we expect sales between
CHF 1.0 bn and CHF 1.1 bn at the Group level for the fiscal year 2024,
with an operating margin similar to fiscal year 2023. Within the fiscal
year, the second half is expected to be stronger than the first half due
to the distribution of project deliveries. Amidst the ever-changing
global geopolitical backdrop, we will continue to actively monitor the
situation and any potential impact it may have on our business.

Raising our sales guidance for 2027
We remain confident about the Company, our markets, and our capac-
ity to transform. We made faster than expected progress in our Mid-
Range Plan and see new growth opportunities linked to the energy
transition in all our market segments. Therefore we increase the
guidance for sales from CHF 1.1 to CHF 1.2 bn, driven by an expected
increase in the Systems Division, from CHF 620 mn to CHF 720 mn.

As part of our commitment to realize further operational leverage,
we increase the operating margin target bracket of both divisions by
1pp, respectively, to 6%–9% for the Systems Division and 23%–26%
for the Services Division. Given the increased weight of the Systems
Division in the sales mix, the operating margin guidance for the Group
remains at 12%–15%.

Changes in the Board of Directors
After 12 years of dedicated service, Dr. Monika Krüsi decided not
to stand for re-election as a member of the Board of Directors of
Burckhardt Compression Holding AG at the upcoming Annual General
Shareholder Meeting. As a successor, the board of directors will
propose to the shareholders the election of Tatiana Gillitzer (1968).
Mrs Gillitzer, a US-citizen, is a business leader with over 25 years of
working and management experience in international organizations.
She holds a degree in chemical engineering, a master’s degree in
engineering and an MBA. Her success in different leadership roles in
technology-based businesses within various industries makes her a
highly suitable person to join the Board of Directors of Burckhardt
Compression. Provided she is elected, the Board of Directors plans
to appoint her as a member of the Nomination and Remuneration
Committee.

Fabrice Billard, CEO

Ton Bücher, Chair of the Board of Directors

Looking forward with confidence
180 years after the creation of Burckhardt Compression, our passion
to perform remains at the core of our culture and success. The strong
engagement of our employees, demonstrated by the 93% participa-
tion rate in our employee engagement survey, gives us confidence in
our transformation towards a sustainable energy future. We sincerely
thank our colleagues on behalf of the Board of Directors and Execu-
tive Management team. We would also like to thank our shareholders
and customers worldwide for their trust and for being part of our
journey.

Kind regards,

Ton Büchner
Chair of the Board of Directors

Fabrice Billard
CEO

Winterthur, June 4, 2024

Facts & Figures →

Key figures

Return on net operating assets (RONOA) in %

in CHF mn

Order intake

Total

Sales

in % of sales

Net income

in % of sales

Operating income (EBIT)

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 in % of net income

Market capitalization (in CHF mn)

Employees

Employees as per end of fiscal year (FTE)

Turnover rate in %

Average company affiliation (years)

Environment

Energy use (MWh)

Greenhouse gas emissions Scope 1 (tCO₂e)

Greenhouse gas emissions Scope 2 (tCO₂e)

Water (m3)

Essentials

Burckhardt Compression

2023

2022

Change

2023/2022

1’124.7

982.0

121.4

12.4

90.1

9.2

30.1

780.2

642.8

47.6

7.4

344.6

339.2

83.5

24.6

1’065.6

28.0

– 62.3

26.63

15.5

58.2

1’921.0

3’243

10.4

7.8

56’173

4’917

14’120

74’991

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

–11.3%

18.4%

27.8%

28.7%

–14.4%

31.3%

57.1%

– 3.5%

– 0.2%

11.3%

13.3%

29.0%

29.2%

– 0.1%

9.1%

– 2.5%

– 5.0%

5.2%

– 8.3%

– 4.7%

Burckhardt CompressionAnnual Report 2023

Key Figures
Facts & 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) in %

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 in % of net income

Market capitalization (in CHF mn)

Employees

Employees as per end of fiscal year (FTE)

Turnover rate in %

Average company affiliation (years)

Environment

Energy use (MWh)

Greenhouse gas emissions Scope 1 (tCO₂e)

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

Essentials

Burckhardt Compression

2023

2022

Change
2023/2022

1’124.7

982.0

121.4

12.4

90.1

9.2

30.1

780.2

642.8

47.6

7.4

344.6

339.2

83.5

24.6

1’065.6

28.0

– 62.3

26.63

15.5

58.2

1’921.0

3’243

10.4

7.8

56’173

4’917

14’120

74’991

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

–11.3%

18.4%

27.8%

28.7%

–14.4%

31.3%

57.1%

– 3.5%

– 0.2%

11.3%

13.3%

29.0%

29.2%

– 0.1%

9.1%

– 2.5%

– 5.0%

5.2%

– 8.3%

– 4.7%

Burckhardt CompressionAnnual Report 2023

Our Company and Strategy

We create leading
compression solutions for a
sustainable energy future

Our markets are transitioning towards more secure and
sustainable energy sources and sustainability sits at the core of
our strategy. After a strong start in our new Mid-Range Plan
period, and based on positive market dynamics, we are raising our
sales guidance for 2027.

Burckhardt CompressionAnnual Report 2023Our Company and Strategy

Overview
Our strategy process is based on a Mid-Range Plan, which is defined
every five years and reviewed annually. In November 2022, we com-
municated our Mid-Range Plan for fiscal years 2023 to 2027, along
with our purpose: “We create leading compression solutions for a
sustainable energy future.”

Our purpose is the guiding star for our Mid-Range Plan and pro-
vides the basis for our culture, together with our values and behav-
iors. On our journey towards this purpose, we will continue to build
an organization that is customer-oriented, passionate, perfor-
mance-driven and mindful of its responsibilities towards the environ-
ment and society at large.

We also communicated our Mid-Range Plan guidance in Novem-
ber 2022, targeting CHF 1.1 bn in sales and a 12% to 15% operating
profit margin in fiscal year 2027. At the same time, we have indicated
that we will be ready to capture a potential market upside if the
energy transition would accelerate beyond our Mid-Range Plan
assumptions.

The basis of our strategy is a focus on reciprocating compressors
and related services. We aim to remain the global market leader for
new equipment in this field by further developing our product range
to gain strong positions in each application where we play. In services,
we aim to reinforce our position and grow by increasing our presence
in so-called geographical white spots, and by offering differentiating
services to support customers in their digitalization and in their sus-
tainability journey.

With our leading compression solutions, we are competitively
positioned in a market that is transforming towards a sustainable
energy future. On the back of this transition and a continuous growth
of the world’s population, we expect that our markets will continue
growing over the mid-term. While the exact developments are difficult
to predict, the world will need more gases, and therefore more com-
pressors.

Our strong results in fiscal year 2023 confirm our resilience in the
face of continued macroeconomic and geopolitical challenges. Based
on these results and on a positive outlook on the market side, we have
raised our sales guidance for fiscal year 2027.

Focus

Our success lies in our focus
on reciprocating compressors
and services.

Purpose, values and behaviors:
the basis for our daily decisions and actions

Along with our purpose, our four values “Partnership”, “Passion”, “Per-
formance” and “Responsibility” determine our daily decisions 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 innovation. We love what we do
and inspire others with the aim of creating 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 potential and where integrity and
reliability are the basis for the trust we enjoy among our colleagues,
customers, partners, and suppliers.

2027

We are raising our Mid-Range Plan
sales guidance for fiscal year 2027.

Burckhardt CompressionAnnual Report 2023Our Company and Strategy

Core elements in our strategy:
sustainability and innovation
Sustainability sits at the core of our strategy, with implications on
target markets, R&D projects, capital investments, operational KPIs
and long-term incentive plans for 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. Acknowl-
edging the scale and urgency of combating climate change, we have
developed a long-term commitment and roadmap to become opera-
tional net-zero for our Scope 1 and Scope 2 emissions by 2035.
Achieving these goals will be supported by the integration of sustain-
ability into our operational excellence activities and by continuous
investments in innovation and digitalization.

Innovation is also an essential thrust in our strategy, especially to
develop new markets in our Systems Division and to differentiate
ourselves in our Services Division. With our continued investment in
R&D in a range from 2.5% to 3.0% of sales, we aim to drive techno-
logical advancements to support the world’s energy transition and
gain market share.

R&D

We invest 2.5% to 3.0% of sales in
R&D to drive technological advance-
ments to support the world’s energy
transition and gain market share.

First achievements in the implementation
of our strategy
Our strategy is structured along four pillars: strengthening our core
business, focusing on operational excellence, transforming and build-
ing new growth avenues, and enhancing our business foundations.
A few examples of our progress in fiscal year 2023 are listed below.

Strengthening our core business
Given a growing installed base of compressors on ships and our stra-
tegic initiative to extend the scope of our marine service business, our
presence in the marine market has clearly increased and led to a
strong growth in orders for services. In addition, the Services Division
strengthened its position in Asia by fully integrating the acquired
team and business of its agent in Thailand. It also acquired thousands
of drawings from an Indian compressor manufacturer to become the
preferred service partner for more than 250 compressors in India.

Improving operational excellence
In the reporting period, we have leveraged our asset base in all facil-
ities to grow sales by 31% in the Systems Division without significant
capital investments. Supporting our operational excellence ambi-
tions, several proof of concepts for the use of generative artificial
intelligence were completed and have indicated the potential to fur-
ther increase our productivity.

Transforming and building new growth avenues
With our focus on transforming and building new growth avenues, we
have strengthened our setup in the US to deliver orders for the local
hydrogen market. To support hydrogen mobility customers in Europe,
we have launched a new Standard Diaphragm Compressor Package,
and introduced a new generation of dry-running process gas compres-
sors for hydrogen liquefaction plants. Our new service BC ACTIVATE
supports our customers in their efforts to improve reliability of their
compressors while reducing energy consumption and greenhouse gas
emissions. In addition, our digital products and services grew above
average in the fiscal year 2023, building on the positive momentum of
the previous year.

Enhancing our business foundations
The rollout of our Customer Relationship Management (CRM) for Ser-
vices enhances our business foundations, together with our strength-
ened capabilities to manage data across functions and countries.

Following our sustainability roadmap, we succeeded in fiscal year
2023 to decouple our business growth from our greenhouse gas
emissions. We reduced our Scope 1 and Scope 2 emissions by 5%
globally and our emission intensity (CO₂e emissions per hour worked)
by 12%. Energy-saving measures, particularly in China, comple-
mented by solar systems in Spain and at PROGNOST in Germany,
contributed to this clear progress. With major solar panel projects
lined up in Switzerland and China and a detailed climate roadmap for
each local unit, we are confident to reach our net-zero operational
CO₂ emission ambition by 2035 (Scope 1 and Scope 2).

Burckhardt CompressionAnnual Report 2023Our Company and Strategy

In 2023, we received the largest
order in the history of the company
with > CHF 100 mn related to solar
panel applications.

Sustainable applications developing
in all market segments
The development of new applications related to the energy transition
is a dynamic process taking place in all market segments. Some of
these applications are already contributing significantly to our order
intake and sales, and transitional or sustainable applications are
growing faster than initially expected at the start of our Mid-Range
Plan. In 2023, we received the largest order in the history of the com-
pany, amounting to over CHF 100 mn, related to solar panel applica-
tions. Over the mid-term, global demand for solar power is expected
to be growing faster than estimated a year ago by various expert
forecasts, supporting our order pipeline for Hyper Compressors. In
hydrogen applications, we see a growth not only in mobility, but even
more in transportation and storage for both hydrogen and green
ammonia. LPG ship builds driven by the future demand for green
ammonia and both biogas and biofuel markets also show accelerated
dynamics beyond our initial Mid-Range Plan assumptions. Above-
described positive market dynamics, combined with new product
launches for LNG applications and Hydrogen Mobility & Energy, lead
us to raise our sales guidance for 2027.

Raising our sales guidance for 2027
A key target of our Mid-Range Plan was to raise the bar and double
our operating profit from CHF 70 mn in fiscal year 2021 to CHF 140
mn in fiscal year 2027. Based on the faster-than-expected progress
to date and indicative signs that all our market segments are now
providing new growth opportunities linked to the energy transition,
we are further raising the bar. We increase our sales guidance from
CHF 1.1 to CHF 1.2 bn, driven by a 16% increase in the Systems Divi-
sion, from CHF 620 mn to CHF 720 mn. As part of our commitment
to realize further operational leverage, we increase the operating
margin target bracket of both divisions by 1 percentage point, respec-
tively, to 6%–9% for the Systems Division and 23%–26% for the Ser-
vices Division. Given the resulting weight of the Systems Division in
the sales mix, the operating margin guidance for the Group remains
at 12%–15%. Our dividend policy, aiming at a dividend payout ratio of
50% to 70%, remains the same.

1.2 bn

We increase our sales guidance
to CHF 1.2 bn in fiscal year 2027.

Burckhardt CompressionAnnual Report 2023Our Company and Strategy

Integrated business model
Our integrated business model leads to success
Compressors function as critical components of a larger system with
an average lifespan of 40 years or more, so it is vital to have the sup-
port 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 cover the entire life cycle of recip-
rocating compressor systems. Customers are supported through out
the whole life cycle of their systems by a wide range of products and
services, from project definition, project execution, systems installa-
tion and commissioning, 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
different project phases, which is now supported by our newly added
digital products and services:

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
construction

Engineering and
manufacturing of
compressor system

Compressor
installation

Compressor
start-up

Warranty period

Post-warranty

Decision-
maker

End customer/
EPC/licensor

End customer/
EPC

End customer

Project
progression

Decision to build
plant and purchase
order

Compressor
shipped and transfer
of ownership

Product
acceptance

Repair and main -
tenance; structural
machine build

Division in
charge

Systems Division

Systems Division
Services Division

Services Division

Burckhardt CompressionAnnual Report 2023 H₂

Hydrogen is a core component
of green ammonia and e-fuels.

Refinery
Refineries use distillation and chemical reactions to turn crude oil into
a range of fuels, lubricants, and raw materials for further downstream
processes. In this market, we mainly supply compressors for various
hydrogen applications (hydrotreating, isomerization, hydrocracking,
reforming). The compressors are typically used to clean the raw prod-
ucts and reduce their nitrogen and sulfur content. Stricter environ-
mental regulations, facility expansions and the requirement to pro-
cess raw products of differing quality in a single facility are important
drivers in this market. In addition, standard refineries are increasingly
converted into biorefineries processing biomass, and the growing
market requirement for sustainable aviation fuels is providing new
growth impulses.

Gas gathering and processing
The production of marketable natural gas begins with a preprocess-
ing at the gas field itself using high-speed compressors. Gases can
also be injected into wells to enhance the recovery of oil. We provide
onshore and offshore solutions for these applications. One new mar-
ket in this segment is biogas, which is starting to scale up.

Our Company and Strategy

Key markets
Petrochemical/chemical industry
The petrochemical/chemical industry is one of our main markets. It
covers the production of a vast range of commodities, which are pres-
ent 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 worldwide demand for products made
of plastic, which requires an expansion of production capacity, com-
bined with a trend toward greater local added value. The strong
growth of the past couple of years was 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.

Gas transport and storage
Gas transport and storage remains a key market for Burckhardt Com-
pression. To store or transport gases, they must be compressed or
liquefied. Gases typically used in this market are Liquefied Natural Gas
(LNG), Liquefied Petroleum Gas (LPG), and Compressed Natural Gas
(CNG). A large number of compressors in this segment are installed
on ships. The process chain supported by our compressors and ser-
vices includes liquefaction, transfer to the carrier, handling the boil-off
gases (BOG) during transport, unloading, storage until regasification,
and feeding into the consumer network. We provide in particular
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 pressure. Other applications, such as biogas, are starting to
scale up.

Hydrogen mobility and energy
Hydrogen mobility and energy is a growing market for Burckhardt
Compression. It is particularly growing in the USA, Europe, China,
Middle East, Korea, and Japan, where this well-known molecule is
given a significant potential role in the transition 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. We have developed unique solutions for hydrogen pro-
duction and liquefaction 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 emerging markets with significant growth potential.

Industrial gas
This market has been growing fast in the past years 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, carbon 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, electronics, construction, and health care. Market
drivers are regional growth and industry-specific growth.

Burckhardt CompressionAnnual Report 2023The 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
We are the world market leader for Hyper
Compressors. The Hyper Compressor is a
high-pressure reciprocating compressor for
low-density polyethylene (LDPE) and ethyl-
ene-vinyl acetate (EVA) plants with a dis-
charge pressure of up to 3’500 bar. We have
established 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 safety stan-
dards, which can be traced to its unique con-
struction design and our global one-stop
maintenance and service capabilities. The
most powerful compressor in the world,
driven by a 33’000 kW electric motor and
compression capacity of 400’000 tons of
ethylene a year, was built by us in 2016.

Our 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 unbal-
anced moments and forces, so it can be used
on offshore vessels and installations where
strict guidelines on maximum allowable
vibration levels on deck structures must be
observed. The unique combination of laby-
rinth seal design and tried-and-tested ring
seal technology makes Laby®-GI Compres-
sors the solution of choice for both low-tem-
perature and high-pressure applications. The
proven technology guarantees maximum
efficiency and lowest life cycle costs without
any gas slippages.

Compressor systems
Our reciprocating compressors lie at the
heart of our customers’ processes.

Laby® – Labyrinth Piston Compressors
The Labyrinth Piston Compressor is unique
with its exceptional level of reliability and
availability. The special labyrinth seal on pis-
tons and piston rods creates a completely
oil-free, contactless seal. This prevents pis-
ton ring debris from contaminating the gas as
well as friction-induced hot spots. The result
is a longer service life, which has a positive
impact on overall reliability and operating
costs. The Laby® Compressor 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 easily 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
hydrogen compression systems for the refin-
ing industry and offer hydrogen compression
solutions for hydrogen mobility and energy
applications. We provide non-lubricated and
lubricated Process Gas Compressors, hori-
zontal and vertical. They are suited in par-
ticular to the high-pressure compression of
hydrogen, hydrocarbon, and corrosive gases.
Our Process Gas Compressors are synony-
mous with unrivaled availability and long
operating lives. Optimal sizing and the use
of top-quality compressor components and
materials ensure low operating and mainte-
nance costs.

Burckhardt CompressionAnnual Report 2023Our Company and Strategy

Standard High-Pressure Compressors
Our Standard High-Pressure Compressors
are reciprocating compressors with a com-
pact design and low weight. They are deliv-
ered skid-mounted with structural supports
that dampen vibration, so there is no need for
a special foundation. The air- and water-
cooled compressors are used to compress
air, hydrogen, nitrogen, helium, argon, natu-
ral gas and other non-corrosive gases and
gas mixtures at land facilities and on ships.

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

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 cus-
tomers’ teams to make every project a suc-
cess 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 technol-
ogy is that the gas is hermetically sealed by
the membrane during compression, enabling
very high levels of gas purity. Our Diaphragm
Compressors are used for hydrogen fueling
and trailer filling stations, and for the com-
pression of small quantities of pure gas for
medical and other purposes.

Our compressor
portfolio

Burckhardt CompressionAnnual Report 2023Our Company and Strategy

Services and components
We provide a comprehensive range of services, from simple modifi-
cations to extensive retrofit, revamp projects, and turnkey solutions.
We are backed by original equipment manufacturer (OEM) parts with
high supply readiness and vast engineering know-how. Experienced
field service technicians ensure close interaction with the customer
and rapid response. Our Service Centers around the world handle
repairs of all brands. Depending on the size of the project and the
construction site, we offer 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 in particular to support
customers in their efforts to improve compressor reliability and
reduce their greenhouse gas footprint – 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 envi-
ronmental and emission regulations, are crucial. Thus, partners that
can offer expertise and sound advice are essential. We stand out
thanks to our comprehensive in-house expertise. 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. A highly motivated team carries out revamp proj-
ects of any complexity to the full satisfaction of customers and can
prolong the operating life of older compressors by retrofitting them
with the latest technology. This range of services also includes a
valve service, overhaul of compressors and repairs to the current best
practice level.

With our BC ACTIVATE services,
we can help our customers
to reach their sustainability targets
and reduce their carbon footprint.

With our BC ACTIVATE services, we can help our customers to reach
their sustainability targets and reduce their carbon footprint. More
than 99% of greenhouse gas emissions of compressors occur in the
use phase. Through the utilization of advanced measurement and
analysis techniques, combined with our expert knowledge, we can
identify the optimization potential of any type of reciprocating com-
pressor. We can then address these optimization opportunities with
our comprehensive range of services to significantly improve the per-
formance, efficiency, and overall sustainability of the compressor
systems.

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 duration
of service intervals, operational availability and, ultimately, the overall
life cycle costs of reciprocating compressors. Original spare parts
backed by our full warranty as an original equipment manufacturer
(OEM) stand for superior quality and ensure low life cycle costs and
the optimal operation of compressor systems. These top-quality com-
pressor components are tailored to specific system requirements.

Monitoring and diagnostics with our digital products
and services
Reliable condition monitoring and diagnostic systems for reciprocat-
ing compressors and equipment, integrated within the top-level sys-
tems for monitoring an entire production facility, are effective tools
for enhancing workplace safety and prolonging the service intervals
of a compressor system. Continuous machine diagnosis detects
potential and actual 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 compressors 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 our suc-
cess and the success of our customers. Around 400 experts in Field
Service, from engineers to local site managers, provide a rapid
response 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 maxi-
mizes 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 our
engineering expertise. We offer theoretical and practical training
programs for various types of compressors and for our own and
third-party components at our modern training center in Winterthur,
Switzerland, 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.

Burckhardt CompressionAnnual Report 2023Essentials3Burckhardt CompressionOur history2016New company structure with two divisions, Systems and Services2016/20Acquisition of Shenyang Yuanda Compressor Manufacturing, the leading Chinese manufacturer of reciprocating compressor systems, in two stages; proximity to local market, expansion of the product portfolio and direct access to an established local supply chain2020Acquisition of the compressor business of The Japan Steel Works JSW to strengthen position in the global market and particularly in Japan2021Acquisition of Mark van Schaick BV in the Netherlands2023Launch of service solution BC ACTIVATE Acquisition of the installed base of BPCL in IndiaOperating profit above CHF 100 mn for the first timeBurckhardt Compression counts more than 3’000 employees (FTE)2021Launch of high-pressure non-lubricated compressor for hydrogen mobility and energyCompany historyCompressor development1971 Transport and storage of natural gas with labyrinth piston compressors2013 Laby®-GI Compressors are used on LNG tankersFrom engineering workshop to global market leader1844Franz Burckhardt opens an engineering workshop in Basel1890August Burckhardt founds the Burckhardt Maschinenfabrik1969Acquisition by Sulzer2015/19/22Acquisition 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.1982Consolidation of Sulzer’s activities in the field of reciprocating compressors to form Maschinenfabrik Sulzer- Burckhardt AG1999Consolidation of Basel and Win terthur sites at the Winterthur site 2006Stock exchange listing on the SIX Swiss Exchange (IPO), valor BHCN2012Burckhardt Compression counts 1’000 employees (FTE)2002Five members of the manage ment board buy out the business together with a financial investor; name changed to Burckhardt Compression2004Burckhardt Compression counts 500 employees (FTE)1913Delivery of the first compressor for ammonia synthesis to BASF Ludwigshafen, Germany1883 Development and sale of the first single-stage, dry-running reciprocating compressor1951 Manufacture of low-density polyethylene (LDPE) thermoplastic using Hyper Compressors1935 Development and sale of the first Labyrinth Piston Compressor (Laby) for oxygen compression in steel productionOur Company and Strategy

Systems
Division

Order intake
in CHF mn

Sales
in CHF mn

Gross profit
in CHF mn

780.2

642.8

108.3

Operating income
(EBIT)
in CHF mn

47.6

2
1
1
9

1
1
5
6

6
4
0
4

2
1
6
3

7
9
8
4

8
9
0
4

3
8
8
3

7
2
7
3

3
6
9

3
1
7

1
9
5

8
2
4

9
1

0
2

1
2

2
2

3
2

9
1

0
2

1
2

2
2

3
2

9
1

0
2

1
2

2
2

3
2

3
0
3

1
1
2

2
6
1

4
6

9
1

0
2

1
2

2
2

3
2

2
2

3
2

in CHF mn

Order intake

Sales

Gross profit

in % of sales

EBIT

in % of sales

Headcount at end of fiscal year (FTE)

2023

780.2

642.8

108.3

16.9

47.6

7.4

1’863

2022

911.2

489.7

96.3

19.7

30.3

6.2

1’684

Change
2023/2022

– 14.4%

31.3%

12.5%

57.1%

10.6%

26
43

Essentials

Burckhardt Compression

Burckhardt CompressionAnnual Report 2023

Systems Division

Further profit increase based
on strong sales growth
and operational excellence

+57%
operating
income

Systems

Division

Order intake

in CHF mn

Sales

in CHF mn

Gross profit

in CHF mn

780.2

642.8

108.3

Operating income

(EBIT)

in CHF mn

47.6

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

Change

2023/2022

– 14.4%

31.3%

12.5%

57.1%

10.6%

2023

780.2

642.8

108.3

16.9

47.6

7.4

1’863

Essentials

Burckhardt Compression

Annual Report 2023

Burckhardt Compression

Systems Division

In a challenging market environment affected by currency headwinds,
the Systems Division looks back at a very successful fiscal year 2023.
The division recorded its second-highest yearly order intake and won
the largest order in the company’s history. It also achieved a new
record for the number of compressors sold, thereby increasing its
share in a market which is normalizing after a post-pandemic peak in
the previous year. The division has in particular expanded its already
strong position in applications related to the energy transition and
reached new historical records for sales, gross profit, and operating
income. Based on these strong results and on a positive outlook,
the division is raising its sales and profitability guidance for fiscal
year 2027.

Financials
Order intake of the Systems Division stood with CHF 780.2 mn again
at a high level but could not match the exceptionally high value of the
previous year with a decrease of 14.4%, including 4.6 pp negative cur-
rency translation effects. On the back of the high order intake of the
past two years, the division recorded a substantial increase in sales
of 31.3% to CHF 642.8 mn. Proactive measures to expedite the supply
chains combined with a further stabilization of global logistics allowed
to deliver large projects in the second half of the fiscal year 2023,
some of them ahead of schedule. On the other hand, the currency
translation effects had a noticeably negative impact also on sales,
accounting for 8.5 pp. On the gross margin side, the high utilization of
production capacities combined with robust project execution could
not fully compensate the effect of the highly favorable product mix in
the previous year. The division increased its gross profit by 12.5% to
CHF 108.3 mn, resulting in a gross margin of 16.9% (prior year 19.7%).
The operating profit margin further increased to 7.4% (previous year:
6.2%) thanks to the leverage on selling, general, and administrative
expenses and to the positive development of other operating income
(the prior year contained some one-off provisions). As a result, the
operating profit grew by 57.1% to a new record of CHF 47.6 mn.

Breakthrough orders for
biogas, green ammonia and
sustainable aviation fuel
applications.

Market developments
As anticipated, markets have been normalizing after a record year
2022. Order intake of the division decreased but remained at a high
level. This achievement was supported by a growth of applications
supporting the energy transition in all market segments. In particular,
the division secured large orders for Hyper Compressors used in solar
panel production and grew further in the hydrogen mobility and energy
segment. It also won breakthrough orders in biogas applications,
green ammonia import terminals and for compressors for the produc-
tion of sustainable aviation fuels.

Chemical and petrochemical industry
The division benefited from its strong market position in this segment.
Driven by the global GDP growth and expected exponential demand
for solar panels in the coming decade, the extraordinary high demand
for Hyper Compressors used for low-density polyethylene (LDPE) and
ethylene-vinyl acetate (EVA) production continued in fiscal year 2023.
In this strong market, the division won a record number of Hyper
Compressors, which will be installed and commissioned in the com-
ing two to three years.

In addition, orders for low-pressure Laby® Compressors were at
a good level, following petrochemical capacity expansions linked to
global GDP growth.

Gas transport and storage
The market for Liquefied Natural Gas (LNG) onshore terminals and
LNG-fueled ships remained strong. On the other hand, compressor
orders for new high-pressure LNG carriers were low in fiscal year
2023, after the peak observed in 2022, which filled up the Korean yard
capacities for several years. Going forward, China will become an
important market for merchant shipping and LNG carriers, and Burck-
hardt Compression is expected to benefit from its strong position in
this country.

In addition, the demand for new Liquefied Petroleum Gas (LPG)
carriers increased again, driven by the need to transport LPG from
production locations to countries using it as energy source or as
feedstock. It is also to be noted that many of the newly ordered LPG
tankers are ready to transport green ammonia in the future, and
this new application is expected to provide an additional demand for
Laby® Compressors.

Hydrogen mobility and energy
The hydrogen mobility and energy market has continued its growth
worldwide, but at a lower rate than in the previous two years. The
demand is driven by a combination of political support, private invest-
ments, and maturing technologies. It contributes to the decarboniza-
tion of transportation and industry sectors. On the other hand, the
market growth was slowed down by still high energy costs in Europe,
still high interest rates globally and a slow clarification of the condi-
tions for public support in Europe and the USA. In this highly dynamic
segment, Burckhardt Compression seized an early advantage, devel-
oping the ecosystem in collaboration with other suppliers and stra-
tegic customers in Europe, USA, and China. The Group is benefiting

Burckhardt CompressionAnnual Report 2023Systems Division

The division increases its
sales guidance by 16% for
fiscal year 2027.

from a strong position in this ecosystem, thanks to its comprehensive
port folio of innovative reciprocating and diaphragm compressors. The
division won large orders for hydrogen liquefaction plants in the
USA, breakthrough orders for green hydrogen pipeline and trailer
applications in Europe, as well numerous orders for hydrogen fuel
stations. In addition, it won significant orders for green ammonia
import terminals in Europe. The division will continue to innovate with
the development of new products for technically demanding applica-
tions, such as high- pressure, high-capacity, non-lubricated hydrogen
compressors.

Industrial gas
Burckhardt Compression is well positioned in the polysilicon produc-
tion related applications, supporting the solar panel industry. Shen-
yang Yuanda Compressor continued to benefit from an active Chinese
market at the beginning of the year. Additionally, the division was
awarded several compressors for India’s first polysilicon production
plant. The rest of the market remained stable.

Refinery
The refinery market showed moderate activity, with projects taking
time after announcement and study phase. In this overall stagnating
market, the division focuses on sustainable energy applications and
won a breakthrough order for a sustainable aviation fuel refinery in
Europe.

Gas gathering and processing
Gas gathering and processing remained active in the period under
review, and the division won a sizeable project for High-Speed Com-
pressors in Asia. The division also focused on sustainable energy
applications in this segment and won orders for more than 80 com-
pressors for biogas (waste-to-energy) production plants in Asia.

Infrastructure and capacity
The installed production capacity was further enhanced to ensure
deliveries. The workforce was increased and trained in line with the
demand, and working shifts were intensified. In Switzerland, the Sys-
tems Division created additional assembly space for large Process
Gas Compressors. Working shifts were increased to guarantee the
delivery of a record number of Hyper Compressors and to meet the
high demand for Laby® Compressors. In Korea, deliveries of Laby®-GI
Compressors were doubled by optimizing processes based on lean
principles and by increasing the number of employees.

Furthermore, investments were made in the plant in India, which
included the construction of an additional test bed for Process Gas
Compressors as well as a space increase for pressure testing and
painting components. The Global Service Center in India grew its
number of employees by more than 50%, in order to provide various
engineering, IT and administrative services to other countries. In the
USA, the division expanded its logistics infrastructure, including heavy
machinery lifting devices, to facilitate parallel assembly of large
compressors.

Finally, new suppliers for castings in Europe and India were
selected and qualified to strengthen the supply chain for critical com-
ponents, and the portfolio of machining partners for castings and
forgings was expanded to meet the additional demand.

Research and development
Further solutions were developed for the growing market of high-
pressure hydrogen compressors. Additionally, progress was made
in developing new large non-lubricated compressors for hydrogen
lique faction, pipeline feed or for industrial usage. For the established
petrochemical industry market, the capacity of our largest Laby Com-
pressor was expanded to fulfill the market requirements of larger
production facilities. In addition, the cost structure of several com-
pressor products was optimized through the application of value
engineering principles, standardization, and modularization.

Outlook
Going forward, all customer segments are moving towards sustain-
able energies, which present many new opportunities. For instance,
green ammonia is becoming more important for hydrogen mobility
and energy, while the market segment refinery is adapting to the
global trend towards biofuels and synfuels. Biogas is gaining promi-
nence in the segments gas gathering and processing and gas trans-
portation and storage. To capitalize on these opportunities, and to
win a significant share in these new markets in the coming years,
Burckhardt Compression proactively develops related solutions in
collaboration with its customers. From a geographical standpoint, the
division aims to maintain its leading position in China and accelerate
its growth in the USA, Europe, and East Asia. Based on the stronger
than expected order intake in the past two years and on clear signs
that all market segments are now providing new growth opportunities
linked to the energy transition, the division is raising the bar for fiscal
year 2027. It is increasing its sales guidance by 16%, from CHF 620
mn to CHF 720 mn. Owing to the progress already achieved and to
the further potential linked to operational leverage, the operating
margin guidance of the division is also increased from 5%–8% to
6%–9% by fiscal year 2027.

Burckhardt CompressionAnnual Report 2023Services Division

Facts & Figures →

Services
Division

Order intake
in CHF mn

Sales
in CHF mn

Gross profit
in CHF mn

344.6

339.2

153.7

1
7
5
3

5
5
2
3

1
2
7
2

1
6
4
2

0
0
4
3

0
8
7
2

3
1
4
2

8
8
4
2

2
8
4
1

6
9
1
1

0
7
0
1

1
7
0
1

Operating income
(EBIT)
in CHF mn

83.5

0
5
7

4
8
5

7
4
5

2
1
5

9
1

0
2

1
2

2
2

3
2

9
1

0
2

1
2

2
2

3
2

9
1

0
2

1
2

2
2

3
2

9
1

0
2

1
2

2
2

3
2

in CHF mn

Order intake

Sales

Gross profit

in % of sales

EBIT

in % of sales

Headcount at end of fiscal year (FTE)

2023

344.6

339.2

153.7

45.3

83.5

24.6

1’355

2022

357.1

340.0

148.2

43.6

75.0

22.1

1’275

Change
2023/2022

– 3.5%

– 0.2%

3.7%

11.3%

6.3%

30
44

Essentials

Burckhardt Compression

Burckhardt CompressionAnnual Report 2023

Services Division

Further profitability increase

24.6%
Return on
sales

Facts & Figures →

Services

Division

Order intake

in CHF mn

Sales

in CHF mn

Gross profit

in CHF mn

344.6

339.2

153.7

Operating income

(EBIT)

in CHF mn

83.5

in CHF mn

Order intake

Sales

Gross profit

in % of sales

EBIT

in % of sales

Headcount at end of fiscal year (FTE)

2023

344.6

339.2

153.7

45.3

83.5

24.6

1’355

2022

357.1

340.0

148.2

43.6

75.0

22.1

1’275

Change

2023/2022

– 3.5%

– 0.2%

3.7%

11.3%

6.3%

Essentials

Burckhardt Compression

Annual Report 2023

Burckhardt Compression

Services Division

In a challenging market environment affected by currency headwinds,
political instability, and slow economic growth in certain countries, the
division looks back at a successful year. Order intake and sales grew
further in local currencies, and customer satisfaction continued to rise.
The division also recorded its highest profit in the company history,
with a noticeable increase of profitability as percentage of sales. To
stimulate growth and capture new market opportunities, the division
launched new services, acquired the installed base of a competitor, and
expanded its service center and spare parts manufacturing capacity.
With these results, the division is well on track to achieve its sales
targets for 2027 and is increasing its profitability guidance by 1 pp.

Financials
In local currency, the Services Division increased its order intake by
2.9%. However, due to strong currency exchange translation effects,
the order intake in Swiss Francs decreased by 3.5% to CHF 344.6 mn,
following an above-average growth of 9.7% in the prior fiscal year. At
CHF 339.2 mn, sales were at a similar level to the previous year,
whereby negative currency translation effects also had a significant
impact of 6.5 pp. Gross profit increased by 3.7% to CHF 153.7 mn,
resulting in a 1.7 percentage points improvement in gross margin to
45.3%, mainly as a result of the higher share of spare parts in the
sales mix. The higher gross margin and a positive development in
other operating income (the prior year contained some one-off provi-
sions) have led to an increased operating margin by 2.5 pp to 24.6%.
As a result, the Services Division grew its operating income by 11.3%
to a new record of CHF 83.5 mn.

Market developments
The demand for comprehensive solutions, on-site services, digital
products and services, and spare parts remained strong in local cur-
rencies. Market growth was mainly driven by Asia-Pacific, which is
the region with the most newly installed systems. Europe was lower
than in the previous year, mostly due to the sluggish economic growth
in Germany. The new escalation in the Middle East slightly impacted
activity in the region.

We identified a potential
reduction of 3’700 tCO₂e per
year with BC ACTIVATE.

The division benefited from its increased dry-dock offering for Lique-
fied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG) vessels,
and from its turnaround solutions for large petrochemical sites.

Demand for digital products and services continued at a high
level. Several long-term service agreements were secured during the
year. One example was a 10-year frame agreement in Korea for a
LPGM fleet of 14 carriers, covering a full-service package of spare
parts, repair, and field service. Additionally, important frame agree-
ments were signed with two large customers in Europe and the
Middle East.

Original spare parts for optimal compressor operation
Growth continued during the year, attributed to the expanding
installed base, a growing number of frame agreements and reduced
lead times. The division won in particular several large spare parts
orders in Asia-Pacific.

The Group acquired the intellectual property for reciprocating
compressors of Bharat Pumps and Compressors Limited in India,
containing drawings, specifications, and material lists for over 250
reciprocating compressors located in the country. First orders were
already received to service these compressors.

Comprehensive engineering, revamp, and repair expertise
Demand to improve existing compressors was high, reflecting the
changing needs of customers over compressors’ lifetime. For instance,
the division won a major order to retrofit Laby®-GI Compressors on
LNG tankers into non-lube compressors.

In the Group’s ongoing endeavors to support customers to reduce
their carbon footprint, the division launched BC ACTIVATE, which pro-
vides customers with diagnostics of their installed base, insights to
reduce greenhouse gas emissions and increase uptime. During the
year, BC ACTIVATE was conducted on 52 compressors across 27 sites
from various market segments. A potential energy consumption
reduction of around 5 GigaWh/year through enhanced capacity control
and operational optimization was identified, as well as a potential
emission reduction of around 3’700 tCO₂e/year with gas recovery and
sealing solutions. Building on these initial successes, BC ACTIVATE is
expected to become an important growth driver in the coming years.

Field service – close to the customer
Highly skilled and professional field service technicians are essential
to install compressors and support customers on a daily basis. With
about 400 Field Service Representatives globally, we are ready to
cover customer needs in a timely manner. This activity benefited from
the growing number of new compressor systems being installed and
commissioned.

Burckhardt CompressionAnnual Report 2023Services Division

We recorded a further increase
of customer satisfaction compared
to the previous year.

Monitoring and diagnostics with our digital products
and services
In the fiscal year 2023, the division reached a new sales record across
the entire digital products and services portfolio. Customers seeking
efficiency gains and higher reliability are increasingly implementing
digital solutions. Especially monitoring and diagnostics solutions are
in high demand. In addition, several pilot projects were initiated with
beta customers to enhance diagnostic and prediction capabilities with
artificial intelligence. With pilot marine customers, we challenged the
current preventive maintenance cycles towards data based predictive
maintenance concepts. Finally, the myFleet customer portal was
expanded with additional features. In this web-based portal, custom-
ers are supported with a seamless experience, real-time overview of
their compressors and with predictive maintenance functionalities.
New customers were onboarded in myFleet, now covering over 40%
of the Group’s installed base.

Customer satisfaction
Through the “Voice of Customer” initiative, the division received more
than 1’200 customer feedback responses from over 70 countries.
Overall customer satisfaction showed again an increase versus the
previous year with an overall satisfaction level of 92%. Individual feed-
back was shared with customers, and actions for improvement were
jointly defined, including providing information on deliveries, proactive
suggestions for improvement, and regular joint performance reviews.

Infrastructure and capacity
The division invested in additional capacity in growing markets. The
production of valves and rings in China was successfully set up to
grow locally and for exports. New investments in India are well under
way to expand capacity for local services and global component
manufacturing. The division also moved to larger offices in Abu Dhabi
to better support local customers. The integration of the newly
established subsidiary in Thailand was successfully completed. Addi-
tionally, the division opened a new branch office in Denmark to
develop its presence in the Nordic region, which provides new growth
perspectives driven by the energy transition.

Research and development
In October 2023, BC ACTIVATE was launched to address customers’
needs to reduce their carbon footprint and support them to meet
their sustainability goals. BC ACTIVATE is a structured assessment
program designed to analyze, evaluate, and optimize customers’ com-
pressor systems. Using advanced measurement and analysis tech-
niques, the reliability and sustainability of compressors can be
enhanced. A thorough assessment reveals issues such as bad actors,
inefficient utilities and energy use, gas leakages, excessive vibration,
and more. BC ACTIVATE is compatible with compressors of any type,
age, and duty.

Digital technology was further developed to enhance the digital
experience and benefits for customers. The focus was on expanding
the hardware and software product portfolio for monitoring and diag-
nostic solutions. The features and services of the BC Cloud Platform
are ready for market launch in fiscal year 2024. This solution incor-
porates advanced Artificial Intelligence and machine learning algo-
rithms for improved monitoring and diagnostic capabilities. Finally,
Augmented Reality, Digital Twin, and Metaverse functionalities were
further explored in close collaboration with Microsoft and PTC.

Outlook
The strategic focus of the Mid-Range Plan 2027 is to strengthen and
expand the core business. This includes becoming a full-service pro-
vider for gas compression solutions, improving coverage of the
installed base both for Burckhardt Compression and other brand
compressors, and increasing presence in the USA, Asia, and selected
white spots. By enhancing digital offerings, we aim to improve oper-
ational excellence for customers, and to address their sustainability
agendas.

To further increase our spare parts performance, we are globaliz-
ing our components production for Burckhardt Compression and other
brand compressors. Finally, the division will further develop its close-
ness to customers, and enhance its safety processes and culture.

The Services division is on track to reach its sales guidance of
CHF 480 mn in fiscal year 2027. Owing to the strong profitability
increase in fiscal year 2023, the division increases its operating
margin guidance for the year 2027 from 22%–25% to 23%–26%.

Burckhardt CompressionAnnual Report 2023Sustainability Report

Sustainability

Dear Stakeholders,
Sustainability is a transformative journey. At Burckhardt Compres-
sion, we are fully engaged in this transformation as an organization
and we are supporting it with our products and services, creating
value for all stakeholders. With sustainability at the core of our
strategy and purpose, we aim to make a significant contribution
toward a sustainable energy future.

This requires a commitment to transparency and accountability.
By openly sharing our targets, activities, successes and failures, we
demonstrate our integrity and willingness to learn and improve. With
this report, we want to further build trust with you as our stake-
holders and have therefore made the significant step to have key
figures audited externally, for the first time. The report covers the
requirements under Article 964a-c and 964j-l of the Swiss Code of
Obligations.

In fiscal year 2023, we made tangible progress on our sustaina-

Fabrice Billard, CEO

Ton Bücher, Chair of the Board of Directors

bility targets for 2027.

“We deliver leading compression
solutions for a sustainable energy
future with sustainability at the
core of our company purpose.”

Online AR
report.burckhardtcompression.com/
sustainability-report

In terms of greenhouse gas emissions, we succeeded in decoupling
our growth from our emissions. For the first time, we were able to
reduce CO₂ emissions by 5% in absolute terms and by 12% in relative
terms, per hour worked. Energy-saving measures, particularly in China,
were complemented by solar installations at our service center in
Spain and by the complete switch to renewable electricity at Prognost
in Germany. With our new detailed climate roadmap for each local unit,
we are confident that we will reach our net-zero operational CO₂ emis-
sions ambition by 2035 (Scope 1 and Scope 2).

In the area of working conditions, we successfully launched a new
employee survey with an impressive participation rate of 93%. Our
Lost Time Injury Rate (LTIR) further improved and remained below
our Mid-Range Plan target. We further strengthened our commitment
to respect human rights in our value chain with our new human rights
policy and third-party risk management policy. In addition, there were
no deviations from our zero-incident targets for product safety and
business conduct.

Ambitious

sustainability targets

Sustainability is deeply rooted in our pur pose and

Acknowledging the scale and urgency of combat-

a key pillar for the business strategies of both

ting climate change, we have also developed a

divisions. To underline our commitment, we have

long-term commitment and roadmap to achieve

defined eight key sustainability targets for 2027,

operational net-zero for our Scope 1 and Scope 2

one for each material topic.

emissions by 2035.

Progress on our 2027 sustainability targets

Base Year 2021

Material topic

Climate

Energy

Longevity/

cyclability

Application

purpose

Working

conditions

Health & safety

Product safety

Business

conduct

KPI and target for 2027

Greenhouse gas emission

intensity1

2021: 2.1 kg CO₂e/h

Share of renewable

electricity1

2021: 23%

Revamp + upgrades

activities in Services

2021: 100 (Index)

Order intake supporting

the energy transition

2021: 16%

Engagement score

in employee survey2

2024 (January): 4.1

Lost Time Injury Rate

below 0.7 each year

2021: 1.1

Incidents related

to product safety

2021: 0

Incidents related to corruption

or anti-com petitive behavior

Status in 2023

– 50%

– 0% on track

(– 9% vs. FY2022)

> 75%

34% on track

200

152 on track

40%

33% on track

> 4.0

< 0.7

4.1

0.5

achieved for

FY2023

achieved for

FY2023

achieved for

FY2023

achieved for

FY2023

1 Scope 1 and 2 emissions, excluding the Shenyang foundry, where we rely on renewable grid electricity or technological developments to achieve our ambitions.

2 Updated target based on the new survey methodology.

More online

Essentials

Burckhardt Compression

Burckhardt CompressionAnnual Report 2023Sustainability

Ambitious
sustainability targets

On the business side, we could prove again that sustainability repre-
sents a substantial growth opportunity for Burckhardt Compression.
In the fiscal year 2023, 33% of our order intake supported the energy
transition. To drive further growth, we launched new products and
a new service, BC ACTIVATE to support customers in their sustain-
ability efforts.

All our successes and ambitions are only possible with a highly moti-
vated team and reliable partners. I would like to sincerely thank all
our employees for making this transformation happen and would also
like to extend my gratitude to our customers, suppliers and other
partners. We will succeed together in our transformative journey.

Going forward, we are determined to further accelerate our jour-
ney to meet our commitment to the Paris Agreement. I look forward
to the coming fiscal year 2024, when we will significantly expand our
solar capacity for renewable electricity generation in China and Swit-
Sustainability is deeply rooted in our pur pose and
zerland. We also strive to make our contributions to energy savings
a key pillar for the business strategies of both
through services more visible and to further expand our portfolio of
divisions. To underline our commitment, we have
compression solutions for a sustainable energy future.
defined eight key sustainability targets for 2027,
one for each material topic.

Acknowledging the scale and urgency of combat-
ting climate change, we have also developed a
Ton Büchner
long-term commitment and roadmap to achieve
Chair of the Board of Directors
operational net-zero for our Scope 1 and Scope 2
emissions by 2035.

Yours sincerely

Fabrice Billard
CEO

Progress on our 2027 sustainability targets
Base Year 2021

Material topic

Climate

Energy

Longevity/
cyclability

Application
purpose

Working
conditions

Health & safety

Product safety

KPI and target for 2027

Greenhouse gas emission
intensity1
2021: 2.1 kg CO₂e/h

Share of renewable
electricity1
2021: 23%

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

Order intake supporting
the energy transition
2021: 16%

Engagement score
in employee survey2
2024 (January): 4.1

Lost Time Injury Rate
below 0.7 each year
2021: 1.1

Incidents related
to product safety
2021: 0

Business
conduct

Incidents related to corruption
or anti-com petitive behavior
2021: 0

Status in 2023

– 50%

– 0% on track

(– 9% vs. FY2022)

> 75%

34% on track

200

152 on track

40%

33% on track

> 4.0

< 0.7

4.1

0.5

achieved for
FY2023

1 Scope 1 and 2 emissions, excluding the Shenyang foundry, where we rely on renewable grid electricity or technological developments to achieve our ambitions.
2 Updated target based on the new survey methodology.

21
35

Essentials

Burckhardt Compression

More online

Sustainability ReportBurckhardt CompressionAnnual Report 2023

On a strategic path
to a sustai nable
organization

Our holistic approach to sustainability considers
our beneficial and adverse impacts on the
economy, society, and the environment, as well
as the opportunities and risks that arise for
our company in return.

We have rooted
sustainability deeply in
our core business through
our Mid-Range Plan.

Sustainability ReportBurckhardt CompressionAnnual Report 2023y

s Divisio n
sion techn olo
stainable
y future

u
a s

r
o
f

rg
e
n
e

s
e
r
p
m
o
C

m
e
t
s
y
S

v
i

a
i

i
l
i

o
n

Customer

r
s

u
e
s

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

Three main strategic directions guide us on our
journey.

sized reciprocating compressors 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
over 3’200 employees (FTE), we have the capabil-
ities and the commitment to contribute to a sus-
tainable development. We have integrated sustain-
ability in our core strategy. The Strategy and
Sustainability Committee proposes strategies,
policies and key performance indicators to the
Board of Directors. Corresponding risks and oppor-
tunities are assessed as part of the overall com-
pany risk management process, overseen by the
Audit Committee and reported to the Board of
Directors. We also recognize our responsibility to
exercise our due diligence obligations in the supply
chains and uphold our product responsibility. The
largest sustainability potentials for our company
lies in our eight material topics as outlined in this
Sustainability Report.

Creating leading compression solutions for
a sustainable energy future
The world has to transition to a sustainable energy
future by mastering the trilemma of energy secu-
rity, clean energy, and energy equity. Our compres-
sion technology plays a key role in different areas
of this transition. Compressors support and accel-
erate the transformation toward a sustainable
energy future in all market segments where we are
active. The range of applications extends from bio-
gas to the production of solar panels or versatile
energy transportation options such as Liquefied
Natural Gas (LNG) and scalable use of hydrogen as
a future energy carrier.

Supporting our customers on their sustaina-
bility journey
Increasingly, our customers are embarking on a
sustainability journey, just as we are. With our
products and services, we can support our custom-
ers on this path. When it comes to energy efficiency
or reduction of gas leakages, we can realize signif-
icant savings together with our customers, since
around 99% of the greenhouse gas footprint of a
compressor comes from the use phase. Consider-
ing the approximately 75’000 existing industrial-

Sustainability ReportBurckhardt CompressionAnnual Report 2023

Systems Division

Compression
technology for a
sustainable
energy future

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

Some of the application related to the energy transition are well estab-
lished and are already significantly contributing to our order intake and
sales. For instance, compressors to produce ethylene-vinyl acetate
(EVA) used for solar panels continued at a strong pace in the petro-
chemical segment, and our strong value proposition enabled us to win
the largest order in the history of the company in fiscal year 2023.
Other applications are just emerging, or are at the stage of pilots, like
green ammonia production in the hydrogen mobility and energy seg-
ment, or biogas in the segment gas gathering and processing.

New applications related to
the energy transition are
developing in all market
segments.

Sustainability ReportBurckhardt CompressionAnnual Report 20231. Petrochemical and chemical industry
Traditional applications of our compressors are rooted in the polyethylene (PE), polypro-
pylene (PP) and low-density polyethylene (LDPE) production. In transitional applications,
these plastics are produced out of recycled monomer instead of naphtha or natural gas.
The main application in a sustainable energy future is the production of ethylene-vinyl
acetate (EVA) which is used for encapsulating solar cells. EVA is produced with a chem-
ical reaction at more than 3’000 bar, requiring some of the largest compressors available
in the world, and for which Burckhardt Compression is a leader.

2. Gas transport and storage
The traditional applications in this segment are natural gas pipeline, gray hydrogen pipe-
lines or LPG tankers. We are already well present in transitional applications such as
LNG tankers, LNG-fueled ships, and LNG import terminals. Our compression technology
is used in reliquefaction processes, boil-off gas handling, or for providing fuel gas to
modern dual-fuel engines. Further, we have a strong and growing presence in new energy
applications such as green hydrogen transport as well as green-ammonia-ready tankers.

3. Hydrogen mobility and energy
Our equipment has been compressing hydrogen for decades, but the importance as a key
building block of a sustainable energy future gives it new dimensions. There are several
critical equipment to make hydrogen a viable and economical option such as the electro-
lyzer, the compressor, its motor, and the dispenser in fuel stations. We have stand-out
technology for scaling hydrogen compression. It can be applied in transitional applications
such as blue hydrogen for mobility and hard-to-abate sector or future-fit green hydrogen
applications in liquefaction plants, pipelines, trailer filling, and fuel stations.

4. Industrial gas
Industrial gases are mainly used in industrial processes, such as steelmaking, medical
applications, fertilizers, and semiconductors. Traditional fields are the compression of
non-organic gases for various applications such as oxygen, helium, or air. As new growth
driver, our compressors play an important role in the production of polysilicon, which is
the core of solar cells.

5. Refinery
Refineries convert crude oil into commercial products by distillation and chemical reac-
tions, to produce fuels and lubricants, as well as feedstocks for other downstream
processes. In this segment, we deliver compressors for 70 years, mainly for hydrogen
applications to desulfurize fuels. Additional applications for a sustainable energy future
are biofuels, e-fuels (synthetic fuels based on green hydrogen), or sustainable aviation
fuels.

6. Gas gathering and processing
We deliver compression solutions for conventional upstream natural gas extraction,
enhanced oil recovery or midstream transportation applications. As the energy transi-
tion unfolds, new opportunities are arising in this segment. We are successful in the
production and processing of biogas at industrial scale. Further potential lies in syngas
production (methane synthesis based on green hydrogen) and CO₂ capture, transpor-
tation and storage.

Sustainability ReportBurckhardt CompressionAnnual Report 2023Services Division

Sustainability
benefits for
our customers

Our compressors are used mostly in industrial
and energy supply processes. Our service
activities often affect various sustainability
parameters with a multiplier effect due to the
long operating hours and service lives.

The prevention of gas
leakage, health and safety
improvements, energy
savings, and raw material
efficiency are some of
the key results that we
achieve together with our
customers.

Sustainability ReportBurckhardt CompressionAnnual Report 2023Contributions 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.

Multiple sustainability benefits through
one intervention
Our customer, a global air separation company,
faced challenges of replacing wear parts every
month, high leakages, and power wastage for two
dry-running hydrogen compressors of a non-Burck-
hardt brand. This resulted in a production loss of
up to 20% over the last years.

Through our revamp and upgrade service we
were able to significantly improve the performance
of the compressors. We reduced the gas leakage
significantly, a particular challenge in high-pressure
hydrogen application. We are convinced that any
gas released from a process into the atmosphere
should be reduced toward zero, regardless of
whether it is a greenhouse gas or not. For many
gases, the interaction with other substances in the
atmosphere is not yet sufficiently researched, as it
is the case for hydrogen.

We enabled a significant reduction of maintenance
needs with our services, including various refur-
bishments and improvements for rings, packings,
piston rods and cylinder liners. The compressor ran
for 22 months without incident, an unrecorded
achievment in the last decade. This success not
only reduces resource consumption but also sub-
stiantially minimizes health and safety risks for
maintenance.

Finally, the production losses for the customer
plummeted from 17%–20% to around 4%. For our
customer, this is a substantial increase in effi-
ciency. With this revamp, we have been able to
reduce the energy consumption per m³ gas com-
pressed by 25%. Based on the yearly production,
this corresponds to 650 MWh of electricity savings
and is equivalent to the electricity consumption of
180 average Swiss households.

Sustainability ReportBurckhardt CompressionAnnual Report 2023Sustainability
Report 2023

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

Sustainability ReportBurckhardt CompressionAnnual Report 2023Our strategic approach
We create leading compression solutions for a sustainable energy
future and aspire to incorporate economic, environmental, and social
aspects into our business activities and decisions. We are an industrial
technology company specializing in reciprocating compression solu-
tions for all types of gases. With a company history stretching back
over 180 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 approach, we focus on eight material topics, which we identified
in our materiality assessment. These eight topics constitute our
framework and the core of our sustainability roadmap. In 2023, we
have enhanced our materiality analysis to a double materiality by
analyzing our impacts on the economy, environment, and society as
well as the implications on our business success (see page 64).

We are committed to supporting the Sustainable Development Goals
(SDGs) as part of United Nation’s Agenda 2030 for Sustainable Devel-
opment. We have stated five sustainability ambitions, each linked to
a strategic SDG and directly related to our eight 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 contribute.

Our senior leaders play a key role in achieving our goals, which is
why sustainability is part of the remuneration in the form or our long-
term incentive plan. Our 2027 target to reduce our greenhouse
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 (see page 100, Annual Report 2023).

Strategic sustainability framework

Tackling
climate change

Promoting
prosperous work

Driving energy
transition

Environmental im

pacts of a

Energ
effi cie

y u

s
e

t
i

Valuing
natural resources

ational health & s afe t y

W or kin
co n ditio

p
u
c
c
O

ct
ty
u
d
e
o
f
a
r
P
s

G H G emissions
& climate
change

i n e ss conduct

Sustainability roadmap

Safeguarding
human health

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

or technological developments to achieve our ambitions.

Sustainability ReportBurckhardt CompressionAnnual Report 2023

Our third-party risk management policy ensures the uphold of our
principles from our Code of Conduct in the collaboration with our
partners along the value chain. Supply chain management plays a key
role in this. In fiscal year 2023, we strengthened our approach on
supply chain due diligence, in particular regarding child labor and
conflict minerals (see page 65).

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 Agreement
for our Scope 1 and Scope 2 emissions. In addition, we are committed
to reducing our Scope 3 emissions (see page 45).

Overarching human rights, environmental,
and governance due diligence
The focus on our material topics and sustainability ambitions includes
an overarching due diligence approach. We acknowledge the respon-
sibility to respect internationally recognized human rights, and inter-
national environmental and governance standards, which is also
stated in our Code of Conduct. We incorporate the precautionary
principle into our activities and decision-making, such as the consid-
eration of environmental requirements in product design, the consid-
eration of human rights in our supply chain, and the assurance of safe
product operation at our customers’ sites.

Material topics

value chain impacts

supply
chain

own
operations

use/
end-of-life

1. Greenhouse gas emissions

& climate change

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

2. Energy use & efficiency

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

3. Longevity & cyclability

Fostering a long life cycle 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.

t
n
e
m
n
o
r
i
v
n
E

y
t
e
c
o
S

y 8. Business conduct
m
o
n
o
c
E

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

Sustainability ReportBurckhardt CompressionAnnual Report 2023Our material topics
1. Greenhouse gas emissions and climate change

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
Agreement for our Scope 1 and 2 emissions. In addition, we are
committed to also reduce our Scope 3 emissions. Our roadmap 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

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 inter-
national treaty between states on climate change. It recognizes the
need to limit global warming to below 2°C above preindustrial 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 contri-
bution to combating climate change and to supporting Sustainable
Development Goal 13: Climate action.

The majority of the emissions associated with our business activ-
ities 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 carbon
footprint and optimize emissions during the use phase of the com-
pressors. 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

2021
(Baseline)

Net zero

2035

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

Our climate policy is the basis for all our activities related to
climate change and part of our wider environmental policy. Our
environmental management system, certified in accordance with
ISO 14001, is a key instrument in reducing our environmental foot-
print. Each subsidiary takes responsibility for reducing its own green-
house 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
management’s long-term incentives.

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

or technological developments to achieve our ambitions.

Sustainability ReportBurckhardt CompressionAnnual Report 2023Greenhouse gas emissions also play a vital role in our continued
product development and collaboration with our customers. In our
ongoing endeavors to support our customers in their CO₂ emission
reduction efforts, the Services Division launched the new service
BC ACTIVATE, which provides customers with diagnostics of their
installed base and invaluable insights to aid emission reduction and
increase uptime.

We see high potential for avoidance of gas leakage, particularly
where greenhouse gases are compressed. We therefore launched
under the umbrella of our energy transition services (ETS) a compre-
hensive emission management offering for our customers to reduce
gas leakages toward zero and to be compliant with increasingly
stringent emission legislation.

Progress in fiscal year 2023
We have successfully launched the Mid-Range Plan initiative “emission
reduction”. We identified and valuated measures for emission reduction
in each local unit to reach our 2027 target of –50% greenhouse gas
emission intensity* and our net-zero 2035 commitment. We have now
compiled project-based individual emission reduction pathways for
each local unit and are able to monitor them in an aggregated group
plan. In addition, we were able to verify our Scope 1 and Scope 2 emis-
sions with a limited assurance by an external auditor.

On an operational level, we continued with various projects
addressing our emissions. The measures implemented locally
focused mainly on electricity consumption and renewable electricity.
Prognost in Germany, 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 which are planned to be completed in fiscal year 2024.

We completed our Scope 3 emission inventory for the first time
based on the fiscal year 2022 data. As expected, the large majority
of our Scope 3 emissions is in the use phase of the compressor. The
key factor is the electricity source used by our customers drive the
compressor.

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.

Sustainability ReportBurckhardt CompressionAnnual Report 2023Our performance
The absolute greenhouse gas emissions for Scope 1 and Scope 2
decreased by 5.1% to 19’037 metric tons of CO₂ equivalents (CO₂e),
thanks to various energy efficiency projects and due to a slightly
reduced output in our foundry. The greenhouse gas emission intensity
per working hour decreased by 11.8%, from 3.4 to 3.0 (2.3 to 2.1 with-
out foundry). Similarly, the greenhouse gas emission intensity in tons
of CO₂e per million sales decreased by 19.8% from 24.2 to 19.4. The
results match with our expectation and planning for the 2027 sus-
tainability target to reduce the greenhouse gas emission intensity
Scope 1 and 2 by 50%* (2021: 2.1).

Our Scope 3 emissions for the evaluated fiscal year 2022 are 73.5
million tCO₂ whereby 99.9% are caused in the use phase. Thereof, the
majority is linked to adiabatic energy, which is the energy physically
needed to compress a certain amount of gas to a certain pressure.
This energy is conserved and transmitted to the next process step at
the customer’s facility. If we take this part out as physically immuta-
ble energy, we had 13.1 million tCO₂ Scope 3 emissions which is still
95.9% in the use phase. The main levers to increase energy efficiency
are our customers’ operating models, proper maintenance and, to a
smaller extent, machine efficiency.

Since the launch of BC ACTIVATE, the Services Division has ana-
lyzed more than 50 customer compressors and identified reduction
potentials of about 3’700 tCO₂e per year.

Our business travel forms only a small part of Burckhardt
Compression’s other indirect greenhouse gas emissions (Scope 3),
but can be directly influenced. Compared with the previous year, the
emissions linked to our business trips has increased to 3’931 tCO₂e.
The emission remains still slightly below the pre-pandemic level of
2019 in absolute terms (4’177 tCO₂e) and with 1.1 tCO₂e per FTE
clearly below 2019 levels in relative terms (1.5 tCO₂e per FTE). We
have launched measures to reduce travel frequency in the medium
term.

Outlook for fiscal year 2024
In the coming year, we will implement our detailed emission reduction
plans for each local unit. A key milestone we expect to achieve is the
completion of major solar panel projects in Switzerland, China, and
South Korea. We want to refine our Scope 3 calculation and evaluate
approaches to report Scope 3 emissions in the same fiscal year in
which they occur. We will continue to support our customers in reduc-
ing their emissions and are working to further develop special service
offerings.

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

19’037

6
9
3
5
1

’

4
7
6
4

’

2
2

0
2
1
4
1

’

7
1
9
4

’

3
2

8
9
1
3
1

’

1
2
2
4

’

1
2

Scope 2

Scope 1

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

3.0

3
3

4
3

2.1*

1
2

2
2

3
2

* Excluding the Shenyang foundry

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

3’931

* 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

3
2

3’295

Airplane

524

Train

Bus

Car

Sustainability ReportBurckhardt CompressionAnnual Report 2023The challenge with Scope 3 emission calculations
Calculating Scope 3 emissions is a challenging task,
especially for products with a long lifetime and a
continuous use. We have calculated our Scope 3
emissions to the best of our knowledge in accordance
with the Greenhouse Gas (GHG) Protocol. All 15
defined Scope 3 categories were assessed. For the use
phase, we assumed a standardized lifetime for the
compressors of 20 years or 30 years, depending on
the application. Location-based emission factors from
the International Energy Agency (IEA) have been used
to calculate direct and indirect emissions per country
where the compressors were installed, excluding
direct gas leakages, as we are not yet able to accu-
rately estimate effective gas leakages in the operative
use by our customers. The applied emission factors
remain constant throughout the life cycle of the
compressor without considering a projection of future
grid electricity or even more progressive scenarios
such as the Net Zero Emissions by 2050 Scenario or
the Announced Pledges Scenario. This is in accord-
ance with the GHG Protocol, but says little about
actual lifetime emissions.

Benchmarks with other companies are difficult as the
scope and methodologies to calculate the use phase
vary heavily. However, we see Scope 3 emissions as a
valuable insight to understand our indirect emissions
and the significant reduction potential and business
opportunities for the Services Division, considering the
thousands of existing compressor packages world-
wide. We will continue to measure our Scope 3
emissions and push for the necessary reductions in
the areas that we can influence.

2. Energy use and efficiency

Topic lead: Vice President EMEA Systems Division

Target: Increase the share of renewable electricity to 75%* (2021: 23%)

The development of society depends on the conversion, use, storage,
and transmission of power. 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 material
supply and the electricity consumption of our compressors in the use
phase. The largest impact of our activities is in the use phase of our
products.

Through energy-saving production processes, compressor design
and services, we can contribute to the Sustainable Development
Goal 7: Affordable and clean energy.

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.

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

or technological developments to achieve our ambitions.

Sustainability ReportBurckhardt CompressionAnnual Report 2023
Energy savings of 1’856 MWh per year achieved
with one compressor revamp
A customer of Burckhardt Compression in Italy
operated a compressor with reduced capacity due to
lower process gas demand, using a bypass-system.
After conducting an engineering study to optimize the
setup, we implemented a solution to reduce the
volume flow to the customer’s requirements by
changing the configuration of the compressor from
double- to single-acting.

The successful revamp generated a saving of about
230 kW power consumption of the electric motor.
Assuming 8’000 operating hours a year, we enabled
our customer to achieve recurring 1’856 MWh of
energy savings which is equivalent to the annual
electricity consumption of over 500 average Swiss
households.

Our environmental policy and ISO-14001-certified environmental
management system form the basis of our activities related to energy
consumption in our value chain. Each subsidiary takes responsibility
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. GreenCo is an ini-
tiative created by the Confederation of Indian Industry (CII). GreenCo’s
rating system takes a holistic approach to the measurement of the
results of corporate environmental initiatives.

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

Energy consumption
in MWh (per calendar year)

56’173

7
0
1
9
5

’

8
2
9
9
4

’

1
2

2
2

3
2

Energy intensity
in kWh per working hour (per calendar year)

1 8.8

0
1

4
9

1
2

2
2

3
2

Share of renewable
electricity
in % (per calendar year)

2021: 15
2022: 21

* Excluding the Shenyang foundry

without
foundry*

Sustainability ReportBurckhardt CompressionAnnual Report 2023
Outlook for fiscal year 2024
In the fiscal year 2024, we will continue our roadmap to increase the
share of renewable electricity across the Group. Several projects are
under implementation in Switzerland, Korea, and China and will be
finalized to produce renewable energy for our operations in 2024.
Local energy-saving measures at operational level will be an ongoing
activity. We are also continuing our efforts to better quantify our
energy savings with our customers and increase our impacts with
such services. In this context, our service offering BC ACTIVATE will
include a dedicated assessment package to consult and implement
energy-saving measures for compressors in operation. Furthermore,
the collaboration between our data-monitoring unit of our Digital
Products and Services team (Prognost) and our sizing team will be
further strengthened to link field data with our internal calculation
methods for energy consumption in operation.

Progress in fiscal year 2023
In the reporting period, Burckhardt Compression continued its mea-
sures to reduce energy consumption at different sites. Our production
site in Shenyang implemented a daily energy monitoring system and
was able to reduce its energy consumption by 4.6% compared to
fiscal year 2022. Despite the business growth, Burckhardt Compres-
sion Switzerland achieved an energy consumption reduction of 7.0%
in the factory through various efficiency projects.

We have planned for the expansion of renewable electricity pro-
duction at our facilities, following our new Mid-Range Plan target of
75%* renewable electricity by 2027. Our subsidiary Prognost has
successfully completed the installation of solar panels on their site
in Rheine, Germany, which covers around 40% of the site’s electricity
demand. Together with the renewable electricity purchased from the
grid for the site in Rheine and Webster, United States, the Prognost
activities run now entirely on renewable electricity. Similar solar ini-
tiatives are in implementation or planning at various sites including
the production sites in Winterthur and Shenyang, China.

We made further progress in defining measures and a methodol-
ogy to track and compare the energy consumption rates of our com-
pressor portfolio. This will allow us to better evaluate and benchmark
the engineered-to-order compressor projects and drive measurable
performance improvements in energy efficiency. Key to success is to
link monitoring and performance data from the field with our in-house
calculation tools.

Our performance
Despite our significant sales growth of 18.4%, we were able to reduce
our absolute energy consumption by 5.0% to 56’173 MWh due to
energy-saving efforts and to a lesser extent due to a slight decrease
in output in our foundry. As a consequence, our energy intensity per
working hour decreased by 12.9% from 10.1 to 8.8. We were able to
increase the Group-wide proportion of renewable electricity only
slightly from 21% to 22% as larger solar projects are expected for the
financial year 2024. The performance is in line with our planning for
reaching our sustainability targets 2027.

With product improvements and services, we managed to reduce
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 improve-
ment area for our management approach.

Sustainability ReportBurckhardt CompressionAnnual Report 2023
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 lifetime of more than
25 years and the average lifetime is 30 to 50 years. Our oldest known
compressor still in service is 94 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 lubricants.

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

152

9
5
1

0
0
1

1
2

2
2

3
2

Proportion of reused or refurbished
com ponents in service work in 2022/2023
for selected key components.
in %

Valve

2022: 100%= 41’725

2023: 100%= 43’399

76%

74%

Crank gear

2022: 100% = 898

2023: 100% = 2’726

Cylinder

2022: 100% = 4’893

2023: 100% = 4’336

94%

98%

88%

83%

Hyper
components

2022: 100% = 1’833

2023: 100% = 2’021

62%

59%

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

Sustainability ReportBurckhardt CompressionAnnual Report 2023Our approach
Burckhardt Compression fosters long life cycles and the circularity
of materials for own compressors and those from other manu-
facturers by focusing on:
– Longevity of new products through technology, engineering, easy

maintenance, and optimized wear parts

– Longer life cycles of existing compressor systems through retro -

fitting, 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.

Progress in fiscal year 2023
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 represents a
paradigm shift in compressor maintenance: moving away from stand-
ardized replacement plans based on the operating cycle to predictive
maintenance based on the actual condition of the compressor.

Under the name ETS (energy transitions services), we have
started a new initiative which is focusing on solutions with longer
runtime time for parts as well as compressors. One essential aspect
is identifying the potential to improve the energy efficiency with our
diagnostic service BC ACTIVATE.

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.

After the first retrofits of Laby®-GI from lubricated to dry running
in financial year 2023, we continued and have extended the fleet of
dry-running compressor. 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.

Two old second-hand compressors brought
back to life
Northwest Gas Processing Company in the United
States decided to buy two second-hand compressors
on the market as their previous rental solution was
expensive and not meeting the emission standards.
They found two non-Burckhardt compressor pack-
ages. The challenge was that this equipment had been
out of service for over ten years and needed a total
revamp.

Our team from Burckhardt Compression US therefore
conducted a total revamp of the engine and compres-
sor packages. All skid components, control panels
and lube system were upgraded. The compressors
were rebuilt back to zero-hour and the team modified
the engine to meet the stringent emission require-
ments of the local government.

Sustainability ReportBurckhardt CompressionAnnual Report 2023

Our performance
As anticipated, sales in revamp and upgrades have slightly decreased
compared to the financial year 2023 from 156 to 152 (index), also due
to foreign currency effects. We are on track to reach our target for
2027 which is to double our revamp activities compared to the base
year 2021 (=100).

Repair instead of replacement is a key element in the circular
economy. We contribute to it through our services; for example, the
share of refurbished components for valves is 74% in all service inter-
ventions.

Outlook for fiscal year 2024
We will continue our condition-based maintenance initiative in fiscal
year 2024 and in the following years. Along with our digital offering,
this 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, and upgrading compressor systems to
extend their service life.

Increased compressor reliability results in fewer
emissions and extended lifetime
As part of routine preventive maintenance, our client,
a leader in plant nutrition and environmental solutions,
turned to Burckhardt Compression because they
were facing a critical challenge: severe corrosion in
a non-Burckhardt compressor cylinder.

We not only delivered an exact replica of the cylinder,
but also conducted a comprehensive system analysis.
Our proposed holistic solution resolved the corrosion
issue and tackled related concerns. Our customer was
able to extend the lifetime of the compressor and
avoid unscheduled shutdowns which saves energy and
costs. In addition, the new one-piece design enables
a significant reduction in emissions.

Operating hours in comparison

LABY® Compressor 3K160

Weight: 9 t
Operating hours: 8’000 per year

Passenger car

Weight: 1.5 t
Operating hours: 5’000 total*

* Assumption: 300’000 km at an average of 60 km/h

Sustainability ReportBurckhardt CompressionAnnual Report 2023
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 ranging from
conventional energy supply to industrial gases to renewable 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 Devel-
opment 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 iden-
tified four positive impact areas:
– Climate change mitigation
– Energy transition
– Circular economy
– Environmental pollution prevention

We have developed a sustainability screening approach to analyze
our business activities from an environmental impact perspective.
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 fulfill 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 toward a
sustainable energy future.

Largest green H₂ production facility in Europe
uses cutting-edge compressors from Burckhardt
Compression
We have been selected to provide three advanced
oil-free hydrogen compressors for a groundbreaking
green hydrogen project in France. The project, a
200 MW electrolyzer plant, is scheduled to commence
production in 2026. With a projected annual output of
28,000 tons of green hydrogen, it represents a step
toward a more sustainable future by annually reducing
carbon dioxide emissions of around 250,000 tons.

Sustainability classification
of order intake
in %
33

Transitional +
New energy

3
2

7
1

2
2

6
2

3
2

1
2

Conventional or not yet classified

Transitional

New energy

Sustainability ReportBurckhardt CompressionAnnual Report 2023We are expanding the range of applications for our customers and
supporting the transition to a sustainable economy through our con-
tinuous innovation in compressor systems, materials, components,
and services. 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 as a short- and medium-term bridge
energy for replacing coal, ensuring energy security during
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.

Our performance
We apply our sustainability screening approach to the entire Systems
Division but also started a pilot to include Services Division in the
future. The current scope covers 70% of the total order intake:
– We classified around 26% (2022: 17%) of the total order intake as
new energy applications. Examples are green hydrogen projects
in hydrogen mobility and energy or projects for the solar panel
industry.

– Around 7% (2022: 23%) of the total order intake is classified as
being transitional with environmental advantages, but not yet
fully sustainable. Examples are biogas applications in refinery,
dual-fuel LNG applications in gas transport & storage, and gray
or blue hydrogen projects in hydrogen mobility and energy.
– Around 37% (2022: 32%) 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.

– 30% (2021: 28%) of the total order intake has not yet been

classified.

Progress in fiscal year 2023
We have continued to expand our activities that contribute to a
sustainable economy. We were able to achieve further 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 2023 was again very dynamic with a high number
of projects for the solar industry, supported by a strong demand for
EVA applications.

In addition to our focus areas of LNG, solar industry, and hydrogen,
we were able to win further projects in the areas of green ammonia,
biofuel and bio-compressed natural gas (bioCNG).

The construction of the new test facility at Burckhardt Compres-
sion in Winterthur, Switzerland, is progressing and will soon host a
breakthrough compressor technology to support the development of
heavy-duty hydrogen refueling stations and trailer-filling applications.

The demand for compressors for hydrogen applications and ethylene-
vinyl acetate (EVA), remained strong, while LNG (Liquefied Natural
Gas) applications receded from their historical highs, especially on
the marine side, as shipyards producing LNG tankers are fully loaded.
We have anticipated this development in our goal setting process
which gives us confidence that we will achieve our Mid-Range Plan
target by 2027.

Outlook for fiscal year 2024
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 hydrogen
value chain. We will also further extend our screening approach to
the Services Division and evaluate business development opportuni-
ties with new applications that support the energy transition such as
hydrogen storage, carbon capture and sustainable aviation fuel.

First mover green ammonia import terminal in
Rotterdam realized with Burckhardt Compression
technologies
We are awarded to deliver two process gas compres-
sors for a pioneer import terminal in Rotterdam.
The imported green ammonia will be cracked to obtain
hydrogen. The two compressors are needed to purify
the residual gas after the cracking process which
contains around 12 percent of remaining hydrogen.
As a result, the overall hydrogen output will increase
by 10%. The project is an important infrastructure
foundation for the energy transition in Europe.

Sustainability ReportBurckhardt CompressionAnnual Report 2023The impacts on employees of suppliers, contractors, and outsourced
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 managers,
employees are informed online several times a year personally by
members of the Executive Management about the state of the busi-
ness and other matters, whereby questions are answered. Our online
platform and mobile application BC Connect is an exchange platform
accessible to all employees and allows them to receive, comment on,
and write messages. Other dialog tools are used at local level in the
form of collective bargaining and employee representation. 62% of
Burckhardt Compression’s employees worldwide are covered by a
collective agreement.

Employment 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 monitoring system in
place to eliminate significant salary differences between equivalent
positions. We have greatly expanded our flexibility 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.

5. Working conditions

Topic lead: Chief Human Resources Officer
Target: Maintain an employee engagement score of ≥ 4.0* (2024: 4.1)

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 production sites and service centers.

With our engagement in providing good working conditions, we
contribute to the targets of Sustainable Development Goal 8: Decent
work and economic growth. Our most direct impact concerns the
working conditions of our more than 3’200 employees (FTE). Further
impacts are along our supply chain, also with regard to human rights.
We recognize our responsibility to exercise due diligence in collabo-
ration 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

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

Other

1.9

Involuntary

1.9

2022: 10.7
2023: 10.4

Voluntary

6.6

* Updated target based on the new survey methodology.

Sustainability ReportBurckhardt CompressionAnnual Report 2023Progress in fiscal year 2023
In fiscal year 2023, we made significant efforts to fundamentally
improve our methodology of measuring employee engagement. We
have collaborated with one of the world’s leading companies in this
field and are now able to compare our results against a global indus-
try benchmark. We have also switched from a biennial survey to an
annual one and are using fewer and even more compelling questions
to measure the engagement.
In addition to new employee engagement questions, the specific ques-
tions to assess our management approach for Working Conditions
continue to be a component of the survey. We have successfully rolled
out the new survey globally to all employees. The participation rate of
93% was even higher than in the past (90%), which already highlights
the level of interest and passion of employees toward the company.

Further, we strengthened our commitment to respect and sup-
port the internationally recognized human rights with the release of
our human rights policy.

Our performance
The employee turnover rate decreased slightly to 10.4% in the report-
ing period. This figure includes all departures, including fixed-term
employment contracts that came to an end. Of this, 6.6 percentage
points are accounted for by voluntary departures which marks a sig-
nificant improvement to last year (7.5). 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 7.8 years.

The overall engagement level of the organization was 4.1 out of
5.0 on a Likert scale which is above the median of the global manu-
facturing benchmark.

The average score to the question “How satisfied are you with
your company as a place to work?” was 4.2 out of 5.0 which posi-
tioned the company in the 56th percentile of the global manufacturing
benchmark while to the statement “I would recommend my organi-
zation as a great place to work” the score was 4.2 out of 5.0 at 46th
percentile.

Burckhardt Compression conducts an annual appraisal and
performance review with its employees which includes personal
development goals and suggestions for continuous improvement.
81% of employees completed the performance appraisal cycle in the
reporting period.

Rating from employee survey*
January 2022 and January 2024

Average points scored for the statement:
“How satisfied are you with your company as a place to work?”

4.1

4.2

1
Strongly disagree

5
Strongly agree

Average points scored for the statement:
“I would recommend my company as a great place to work.”

4.4

4.2

1
Strongly disagree

5
Strongly agree

Average points scored for the statement:
“Leadership communicates effectively with the company.”

4.2

4.1

1
Strongly disagree

5
Strongly agree

Average points scored for the statement:
“My company provides me with opportunities to balance my
work life and personal life.”

4.0

4.2

1
Strongly disagree

5
Strongly agree

Average points scored for the statement:
“At work, I am treated with respect.”

4.3

1
Strongly disagree

5
Strongly agree

* Based on new survey methodology and limited comparability

due to slightly different questions.

Sustainability ReportBurckhardt CompressionAnnual Report 2023Outlook for fiscal year 2024
We will drive measures locally at every team level based on the find-
ings of our new employee engagement survey in order to address the
specific needs of our employees in different regions and departments.
To strengthen the dialog with our employees, we are planning a
review of current practices at the local level.

6. Occupational health and safety

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 2024. 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
“Handels zeitung” 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 11th in its sector
and a good 163rd rank over all sectors which means
a top 11% ranking.

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 envi-
ronment and promoting health, we can help achieve Sustainable
Development Goal 3: Good health and well-being, and also Sustain-
able Development Goal 8: Decent work and economic growth. It is
also demonstrated that good health of employees has a positive influ-
ence on business results. Our influence in this area extends to our
own employees, to external employees in our workplaces, and to
working conditions in supply chain companies.

Rating from employee survey*
January 2022 and January 2024

Points scored for the statement:
“I feel safe in my work environment.”

4.2

4.4

1
Strongly disagree

5
Strongly agree

* Based on new survey methodology and limited comparability

due to slightly different questions.

Sustainability ReportBurckhardt CompressionAnnual Report 2023Our approach
We are committed to the prevention of accidents and work-related
illnesses and to the promotion of the mental well-being of employees
and workers whose work or workplace is under the control of Burck-
hardt Compression. We focus our approach on two components:
– Occupational health and safety system and prevention culture
– Mental health and well-being

The impact on employee health and safety in our supply chain is con-
trolled through the responsible procurement approach.

Our occupational safety policy and management system certified
in line with ISO 45001 form the basis that governs all activities relat-
ing to health and safety in the workplace. Numerous measures rang-
ing from detailed risk assessments, safety walks accompanied by
management to workplace safety training, and mandatory wearing
of protective footwear, protective eyewear, and other work-relevant
protective equipment demonstrate their effectiveness through stead-
ily falling risk exposure. Fostering a culture of prevention through
raising awareness and involving employee representatives in the
safety committee at each site is an important part of our approach.

We have several local programs under the global “Dr. BeWell”
initiative to support the mental health and well-being of our employ-
ees. These include developing knowledge on topics such as stress
management, sleep, and nutrition as well as promoting and encour-
aging sports activities.

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

1
1

0.5

6
0

1
2

2
2

3
2

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

0
5
2

6
4
2

14.2

1
2

2
2

3
2

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

8
7
2

6
5
1

7.7

1
2

2
2

3
2

Sustainability ReportBurckhardt CompressionAnnual Report 2023Progress in fiscal year 2023
We were able to successfully conduct our external audits at Group
level in accordance with the ISO 45001 standard. We systematically
incorporated the findings of the local certification bodies. We contin-
ued 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 2024.

Further, we have harmonized and strengthened our approach with
the development of global minimum standards for occupational
health and safety applicable to all subsidiaries. We have also estab-
lished a global Environment, Occupational Health, and Safety (EOHS)
Advisory Board to provide a global platform for the exchange of know-
how and best practices.

Various local activities under the “Dr. BeWell” initiative have been
continued or initiated, such as coaching and awareness webinars in
Switzerland or team sport and meditative yoga sessions in India and
China.

Our performance
The Lost Time Injury Rate (LTIR) has further decreased from 0.6 to
0.5 This marks an improvement compared to last year below our
Mid-Range Plan target of 0.7. The severity rate has declined substan-
tially from 24.6 to 14.2, which means that accidents were less severe
and have resulted in fewer lost days. During this reporting period, we
recorded no fatal accidents and no case of work-related ill-health.

Outlook for fiscal year 2024
We will pay special attention on the factory and assembly sites where
proportionally the highest number of accidents are registered. The
increased workload in production will continue to be a challenge. A
second focus for the Mid-Range Plan period is behavior-based safety
where we planned to launch a program in 2024. We will also continue
to intensify our efforts to strengthen the approach to mental health
and well-being.

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 a critical equipment in various applications in the
process industry and energy provision. System safety and reliability
are the most important areas of expertise in our business due to
the high pressures, continuous operation, integration in complex
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.

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 assessment and mitigation:
– International norms and standards

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

– Simulation, calculation and testing

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

– Strong processes

Defined working principles, processes and our ISO-9001-certified
quality management system ensure our processes meet the
strictest 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 systems,
we produce a specific set of operating documents for each
system and offer a wide range of training modules available
either online or at our training centers.

Sustainability ReportBurckhardt CompressionAnnual Report 2023Progress in fiscal year 2023
We have successfully implemented our pre-order risk assessment
and risk mitigation process, which is applied for all projects. Addition-
ally, 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 guidelines.

In the reporting year, we invested significantly in competence
development throughout the organization, continuing the career path
for technical expertise and our Global Competence Centers.

Partnering with local packagers, suppliers, and customers, we
tested applications in the field before commercial operation, but also
invested significantly in our test centers in China and Switzerland.

Additionally, we successfully integrated our new engineering plat-
form launched in fiscal year 2022 in our operations. The engineering
platform allows the utilization of pre-engineered modules to ensure
a high product and safety level for execution during ramp-up and
beyond.

Our performance
As part of the approval process, 100% of the new product configura-
tions have been through a risk and design assessment that includes
product safety. No incidents related to the product safety of our
compressors were registered over the reporting period. Similarly, no
violations of regulations or voluntary codes took place in relation to
product safety.

In the reporting period, we registered one near miss for a new
product application, which had been handled on site without injury
or/and material damage. Lesson learned including raising the aware-
ness at relevant organizational entities are implemented.

The number of new compressors fitted with a Burckhardt Com-
pression control system was further increased. We firmly believe that
our control solutions offer significant added value in terms of reli-
ability, safety, and life cycle management of our compressors.

Outlook for fiscal year 2024
Our focus for the coming period will be on implementing the require-
ments from the updated machinery directive in Europe and launching
products into new regions and new applications with the defined risk
assessment process. Thereby, various inhouse and external test
centers are utilized to simulate dynamics and operational modes.

8. Business conduct

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 econ-
omy and society. They cause economic losses, promote social in equal-
ity, and undermine democratic processes. As a global business with a
far-reaching network of business partners, we are committed to con-
ducting our business ethically, legally, and in an environmentally and
socially responsible manner, which is a precondition for all other
material sustainability topics.

Our approach
Burckhardt Compression undertakes to carry out its business activi-
ties in an ethical, legal, and environmentally and socially responsible
manner. We expect every business partner with which we have a busi-
ness relationship to conduct itself in a similar manner. We assess
every aspect of our business relationships and focus particularly on:
– Business compliance
– Anti-corruption
– Free competition
– Export and sanctions compliance

Our Code of Conduct defines the fundamental standards and princi-
ples for employee interaction and behavior with partners, stakehold-
ers, and the environment. With the Code of Conduct for business
partners, our suppliers, local agents, and partners commit to con-
ducting their business in an ethical, legal, and environmentally and
socially responsible manner. 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-corruption, business
compliance including free competition, and strict adherence to export
and sanctions 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 at least in a three-year cycle.

Our third-party risk management policy supports us in imple-
menting our risk management with third parties. It clarifies the expec-
tations placed on management and employees when dealing with
third parties.

Our Speak Up reporting system is a complaints channel operated
by an independent third party. It allows employees, business partners,
and third parties that are, or might be, aware of suspected miscon-
duct to register it in the reporting system. The system is designed to
allow protection of the identity of the reporting party and for com-
ments to be made anonymously.

Sustainability ReportBurckhardt CompressionAnnual Report 2023No violations of competition law or instances of corruption connected
to our business activities were identified during the reporting period,
nor were any sanctions imposed for any other significant non-com-
pliance with environmental, social, or any other legislation.

Our existing processes and preliminary clarifications of export
controls have proven their worth. 7 requests for clarification of export
regulations were forwarded to the appropriate authorities during the
reporting period and all cases were approved.

Outlook for fiscal year 2024
We are planning to further strengthen and harmonize our training
activities for business conduct across Burckhardt Compression. This
will further develop our set of trainings in the realm of business
and sanctions compliance. Furthermore, we are strengthening our
governance and policies around Business Conduct, including a com-
prehensive Sanctions Compliance Policy. We are further increasing
the reach of our Code of Conduct for business partners, particularly
in cooperation with our suppliers.

Progress in fiscal year 2023
We are continuously monitoring our “Values and Behaviors” which,
together with our Code of Conduct, form the fundamental behavioral
guidelines at Burckhardt Compression. The latest 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.

We released a third-party risk management policy in this fiscal
year as framework for managing the risks associated with working
with third parties. We further strengthened our human rights due
diligence with the release of our human rights policy.

To further raise awareness of compliance with the law in our
focus areas of business compliance, anti-corruption, free competition,
and export and sanctions compliance, we provide targeted training
modules for employees concerned. In the reporting period, a total of
296 employees who deal with these areas in their work have success-
fully completed such modules.

Speak Up, which is now running for the third year, has been
updated to a new platform for a more convenient access to place a
report.

Our performance
A total of one internal suspected case of misconduct in violation with
the Code of Conduct or law was recorded on the Speak Up reporting
system, issued by a former employee. The case was duly processed
and closed within the reporting period. The processing time to the
conclusion of the investigation was 43 days.

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

Sustainability ReportBurckhardt CompressionAnnual Report 2023Our Commitment
Firmly anchored sustainability governance
The very top management of our organization is committed to sus-
tainability. Responsibilities 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
sustainability.

The risks and opportunities linked to sustainability are managed
as part of the overall company risk management process and are
reported to the Audit Committee and to the Board of Directors.

All members of the Executive Management are also members of
the Executive Sustainability Team, which is responsible for the stra-
tegic approach at Group level and compliance with our sustainability
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 Sustainability
Steering Group is responsible for implementing the sustainability
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 related
activities at Group level and, as a technical expert, supports all func-
tions and subsidiaries with implementation of the roadmap.

The Sustainability Report on non-financial matters has been pre-
pared, approved, and signed by the Board of Directors in accordance
with the requirements of Articles 964b and 964c of the Swiss Code
of Obligations.

Sustainability governance
at Burckhardt Compression

Board Strategy & Sustainablity Committee

Executive Sustainability Team
Executive Management

Sustainability Steering Group
Topic leaders, Managing Directors & Regional Heads

Implementation Support
Topic contributors

t
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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 analysis,
where we assessed actual and potential positive and negative impacts
of our activities along the value chain. In the financial year 2023, we
further enhanced our analysis with the perspective of actual and
potential implications for our business success, thereby considering
a double materiality perspective. The aspects of scale, scope, and
likelihood of impacts were considered as assessment categories with
a precedence of scale and scope. In this process, we gathered the
views and concerns of our key stakeholders – investors, customers,
employees, and suppliers – online and in person. Impact is the only
determinant for materiality definition for the GRI reporting to be
aligned with the standards.

Sustainability ReportBurckhardt CompressionAnnual Report 2023
Our materiality matrix assessment

Material topics
Are included in our strategic
approach to sustainability
and are subject to extended
reporting requirements for our
Sustainability Report.

Operational topics
Have an increased relevance
in our business activities and
are continuously integrated into
our operations; communication
takes place according to needs
and opportunities.

Other topics
May have increased relevance
in a specific context but not
on a group level; management
and communication take
place according to needs and
opportunities.

Material topics

Operational topics

Tax contribution &
allocation

Intellectual property &
access to knowledge

Environmental impacts of
application purpose

Energy

Longevity &
cyclability

Working
conditions

Product safety

Greenhouse
gas & climate

Occupational
health & safety

Business
conduct

Data security &
privacy

Diversity &
inclusion

Training &
development

Asset &
process
integrity

Non-greenhouse gas
air emissions

Water

Waste & hazardous
substances

Biodiversity

Other topics

Resource/
material efficiency

– Forced labor / child labor
– Conflict & security
– Social impacts of application purpose
– Land rights / indigenous rights
– Economic contribution
– Land degradation
– Sales & project implementation practices
– Corporate citizenship & community impacts
– Political accountability
– Noise, vibration, odor & electromagnetic

radiation

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p
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Impacts on society, environment and economy

Sustainability ReportBurckhardt CompressionAnnual Report 2023

Due diligence approach
Burckhardt Compression built a due diligence approach informed by
the OECD Due Diligence Guidelines and the UN Guiding Principle on
Business and Human Rights. Our human rights policy and our third-
party risk management policy form the umbrella policies for our
management approach. The implementation process is based on four
pillars: expectation, identification, verification, and mitigation. In fiscal
year 2023, we strengthened our approach with a focus on environ-
ment, health and safety, human rights (including forced labor), and in
particular child labor and conflict minerals, in compliance with the
Articles 964j-k of the Swiss Code of Obligations and the Swiss Ordi-
nance on Due Diligence and Transparency in relation to Minerals and
Metals from Conflict-Affected Areas and Child Labour (DDTrO).

Through our Code of Conduct for business partners and the
co-applicable implementation guidelines, we set for expectation the
same high standards for suppliers as we do within our company, and
we also include them in our environmental and quality policy.

We conducted a risk identification considering risks of potential
negative impacts as well as the relevance of our suppliers. Over 2000
suppliers were analyzed along the 2023 focus topics. The results
confirmed that the main risks are primarily in health and safety,
environment and working conditions within human rights.

Based on the risk exposure for each topic and threshold values
for the purchasing volume, assessments for verification of the iden-
tified risk were initiated at 618 suppliers. 392 suppliers already com-
pleted the assessment.

Mitigation measures were initiated for 126 suppliers to complete
the assessment or for suppliers with insufficient assessment results
to build up their corresponding management systems. Burckhardt
Compression is committed to pursue a development-oriented due
diligence approach for its suppliers to strengthen their capabilities to
fulfill ever-increasing requirements.

In fiscal year 2024, the due diligence approach will be further
strengthened and rolled out to other topics. In addition, we plan to
strengthen environmental, human rights, and compliance aspects as
part of the on-site audits of our suppliers.

For each of the eight material topics, we have appointed a topic 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 depart-
mental 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.

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 knowledge
sharing. Personal training and development are part of the annual
appraisal and performance review process and are financially sup-
ported by the company. To ensure the ongoing development of tech-
nological expertise and personal as well as managerial skills within
the company, employees around the world participate in internal tech-
nical, product, and leadership training modules, which are conducted
across the Group throughout the year with a range of programs. In the
fiscal year 2023, we provided on average 15.4 h of internal training per
FTE and reached 89% of our employees with our offering.

We promote and support new talent at all levels and are commit-
ted to the Swiss system of apprentice training. We currently have
51 apprentices in Switzerland and 20 in India in eight occupations.
Burckhardt Compression is a founding member of the initiative
launched under the auspices of the Swiss Federal Office for Profes-
sional 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, Switzerland, for vocational career
pathways.

We fundamentally believe 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, 15.8% (2021:
15.6%) are female.

Supply chain due diligence
Burckhardt Compression relies on a strong supply chain and taps into
its suppliers’ experience and knowledge to continuously improve its
products. 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 accesso-
ries to complete the overall compressor systems and maintain them
on site. For this, we have an established global supply chain, with core
suppliers for production located in the wider regional area.

Sustainability ReportBurckhardt CompressionAnnual Report 2023Child labor
In line with our commitment to human rights, we are monitoring our
suppliers and have a clear demand to not tolerate child labor. The due
diligence for child labor follows the overarching due diligence
approach for suppliers in compliance with the Articles 964j-k of the
Swiss Code of Obligations and the Swiss Ordinance on Due Diligence
and Transparency in relation to Minerals and Metals from Conflict-
Affected Areas and Child Labour (DDTrO).

The broad risk identification revealed a lower exposure to child
labor compared to other topics and other industries. No substantiated
suspicion of child labor could be found, either in the risk identification
and assessment, in further investigations or in the Speak Up com-
plaint channel. We are committed to apply our due diligence approach
to child labor with even lower thresholds in purchasing volume than
other risks due to the potential severity of human rights violations in
this area.

In the fiscal year 2023, we conducted 178 supplier assessments
with regards to child labor. In 13 cases, it was found that the supplier
did not have an adequate management system in place despite indi-
cations of risk. In these cases, improvements and corrective action
measures were initiated.

Global workforce by gender
Employees (FTE)

3’243

3
1
5

0
3
7
2

’

5
6
4

8
0
5
2

’

6
1
4

6
1
3
2

’

1
2

2
2

3
2

female

male

Global workforce by region, 2023
in %

Conflict minerals
Our compressors are made of over 95% by weight of iron and steel.
Some components contain tin, tungsten or, in the case of electronics,
gold. We have established and published a Conflict Minerals Policy
and apply due diligence. In 2023, we initiated a traceability assess-
ment with 33 suppliers in order to obtain evidence that the smelters
in our supply chain do not source minerals from conflict affected
regions.

We have analyzed our purchasing activities in Switzerland and do
not exceed the thresholds set out by the Ordinance on Due Diligence
and Transparency in relation to Minerals and Metals from Conflict-
Affected Areas and Child Labour (DDTrO). An independent assurance
company has confirmed our analysis.

Americas

APAC

3’243 FTE

Global workforce by age, 2023
in %

55+ years

45–54 years

3’243 FTE

EMEA

< 25 years

25 – 34 years

35 – 44 years

Sustainability ReportBurckhardt CompressionAnnual Report 2023Dialog with our stakeholders
The appropriate involvement of our various stakeholders is extremely
important to us. We have identified four key stakeholders within our
sustainability management: customers, employees, investors, and
suppliers. We are engaged in 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.

Customers
We seek long-term customer relations. The longest-standing cus-
tomer 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 management process with the divisional
management teams, and actions are initiated and implemented in
accordance with the results. Customer priorities in the field of sus-
tainability were climate, energy, and occupational safety. All three
are part of our material topics.

In the fiscal year 2023, we successfully completed another cycle
of our Voice of Customer survey for the Services Division. We received
feedback from over 1’200 participants from over 77 countries and
produced 30 specific company reports, all of which help us to create
more value for our partnership. In four out of eight performance cat-
egories, we achieved a satisfaction level of over 90% with an overall
satisfaction level of 92%, which is a further increase compared to the
previous survey.

In the Systems Division, customer satisfaction is also measured
every year by means of customer surveys. For the coming fiscal year,
we have planned to expand customer satisfaction measurement in the
Systems Division. This measurement will be based on the Voice of
Customers initiative of the Services Division, which allows a significant
expansion and harmonization.

Investors
We maintain an open and transparent dialog with our investors and
other interested parties. The aim of investor relations is to accurately
portray the company and its markets to enable a fair evaluation of
Burckhardt Compression stock. Leading Swiss business newspaper
“Finanz und Wirtschaft” gives Burckhardt Compression’s investor
relations and transparency the highest rating of A.

We aim to maintain regular interaction with our key investors in
road shows, conferences, and individual meetings. Every year, we
conduct several year-end and half-year investor road shows in Zurich,
London, the United States, and other financial centers. Furthermore,
we participate in various investors conferences in Switzerland, the
United Kingdom, and the United States. We also organize on-site visits
where we can invite our investors to our Winterthur headquarter in
Switzerland to present our company, answer their questions and
show them our factory.

In recent years, the importance of ESG (Environment, Social, Gov-
ernance) rating agencies has also increased significantly for our
investors. Important sustainability priorities for our investors include
climate change, business conduct, and energy consumption. All three
are covered in the material topics.

Employees
Open dialog with employees is a central priority for us and is carried
out in different ways. The most important dialog channels are described
in this report in the material topic working conditions (see page 56).
The key priorities for employees are health and safety at work, working
conditions, and training and development. We actively deal with the
first two within our material topics. Training and development are a
central pillar of our HR management.

We organize very consciously and regularly occasions with our
employees, where we get together and cultivate friendships outside
of everyday working life, whether it is a thanksgiving celebration in
the United States, the Diwali celebration in India, the Chinese New
Year party in China, different Christmas dinners or events around the
globe or the so-called Name Day celebration in Winterthur to cele-
brate the birthday of our company. In the financial year 2024, we have
planned the first Family Day in Winterthur after the Covid-19 pan-
demic to include the families and closest people of our employees.

Sustainability ReportBurckhardt CompressionAnnual Report 2023Suppliers
We work closely with suppliers in the product development phase,
with the aim of long-term partnerships. Exchanges and performance
reviews take place on a regular basis via on-site visits, virtual meet-
ings, audits, or inspections. Occasionally, supplier days are held at
regional or global level. The central sustainability priorities for sup-
pliers are occupational health and safety, energy consumption, and
business conduct. All three topics are key elements of our approach
to sustainability.

In the fiscal year 2023, Burckhardt Compression India conducted
a supplier day for their key suppliers, where they provided a business
overview and outlook to foster supplier pre paredness. Two essential
topics of the meeting, which are particularly important for us, were
sustainability and digitalization. The supplier day also allowed for
exchange between suppliers with best practices presentation of
improvement steps taken.

We actively give our suppliers feedback in our performance dis-
cussions and want to recognize outstanding performance. This is why
we distribute supplier awards. This year, three awards were pre-
sented to suppliers for their outstanding performance: one at Supplier
Day at Burckhardt Compression India, the Burckhardt Compression
East Asia Supplier Award, and a global award for outstanding perfor-
mance in a specific project.

Communities and other stakeholders
We maintain an open relationship with the local communities. 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 media and
authorities and strive for timely and open communication.

In the fiscal 2023, we invited the parents of our apprentices at our
headquarters in Winterthur to an event to visit their youngster’s place
of work and talk directly to the responsible personnel. This trust
building is important for us as we are highly committed to the appren-
tice system. This is why we have awarded a price to young partici-
pants of the AZW Training Center in Winterthur for their submitted
improvement projects as part of a climate initiative.

Engagement with local stakeholders is also a reality in our sub-
sidiaries. At our Burckhardt Compression India production site for
example, we offer the community business support in waste manage-
ment by selling scrap metal for their recycling business and focus
on job opportunities for underprivileged community members. We
further contribute toward building schools, water reservoir and are
currently in a dialog to set up a waste management facility in the
village next to our factory.

Sustainability ReportBurckhardt CompressionAnnual Report 2023Extended key figures

Environmental metrics1

Energy

Energy use

Electricity

Fuels and combustibles²

District heating

Share of renewable electricity

Energy intensity

Greenhouse gas emissions

Greenhouse gas emissions Scope 1³

Combustibles

Fuels

Others

MWh

kWh per
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)

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

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

Greenhouse gas emissions business travel (Scope 3)

Water and waste

Water⁶

Waste6

kgCO₂e per
working hour

tCO₂e per
mCHF

tCO₂e

2023

2022

2021

56’173

29’445

17’754

8’974

8.8

4’917

1’436

2’833

648

14’120

12’588

1’532

3.0

2.1

19.4

3’931

74’991

2’790

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

2’663

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

1’405

83’810

2’805

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 environmental 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. Working hours are calculated as the average FTE per fiscal year
multiplied by 8 hours and 220 working days. Business travel (Scope 3) emissions data for 2019–2022 have been recalculated due to a more precise data availability. The updated
values are almost identical for the years 2021–2022 and higher for the years 2019–2020.

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 14’444 tCO₂e in 2023 (2022: 15’801 tCO₂e, 2021: 13’653 tCO₂e).

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

by the Standards of the Global Reporting Initiative (GRI).

Assured by PwC 2024 (limited assurance)

Sustainability ReportBurckhardt CompressionAnnual Report 2023Health and safety1

Health and safety1

Lost Time Injury Rate (LTIR)2

Severity Rate (SR)3

Lost Time Workday Rate (LTWR)4

2023

2022

2021

0.5

14.2

7.7

0.6

24.6

15.6

1.1

25.0

27.8

1 The data collection for occupational health and safety data is performed by calendar year. Working hours are compiled as effective working hours per 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 per incident subject to registration with loss > 1 working day.
4 Rate per 200’000 working hours for total of lost workdays.

Assured by PwC 2024 (limited assurance)

Employee structure

Number of employees

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

Assured by PwC 2024 (limited assurance)

2023

FTE

3’243

2’980

2’536

444

1’378

1’298

304

263

194

250

3’104

2’646

458

1’253

1’547

304

139

138

329

145

2022

FTE

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

2021

FTE

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

Sustainability ReportBurckhardt CompressionAnnual Report 20232023

2022

2021

FTE % yearly average

590

18.7%

510

17.7%

451

17.1%

FTE

% end of year

FTE

% end of year

FTE

% end of year

590

489

101

251

163

18.2%

17.9%

19.7%

36.9%

29.1%

14.2%

13.0%

8.7%

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%

FTE % yearly average

328

10.4%

308

10.7%

266

10.1%

FTE

% end of year

FTE

% end of year

FTE

% end of year

328

275

106

10.1%

10.3%

13.3%

12.3%

7.5%

6.7%

17.0%

308

264

100

10.4%

10.5%

9.4%

13.4%

12.8%

7.6%

7.0%

16.9%

266

230

9.7%

9.9%

8.7%

19.1%

10.6%

9.9%

6.0%

11.1%

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

Assured by PwC 2024 (limited assurance)

Sustainability ReportBurckhardt CompressionAnnual Report 2023GRI content index

Burckhardt Compression has reported in accordance with the GRI Standards for the period April 1, 2023 to March 31, 2024.
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. 116,
pp. 138–139

–

a. Burckhardt Compression Holding AG

iii. Consolidation approach applies to all
disclosures.

a. Sustainability report: 04.01.2023 to
03.31.2024, yearly
b. Annual report: 04.01.2023 to 03.31.2024
c. Publication: 04.06.2023
d. Contact:
sustainability@burckhardt compression.com

CO₂ emissions for business travel (Scope 3)
have been recalculated for the years
2019–2022 due to a more precise data
availability. The updated values are almost
identical for the years 2021–2022 and slightly
higher for the years 2019–2020.

2-5 External assurance

p. 69–71,
p. 78–80

Yes

Activities and workers

GRI 2: General disclosures 2021

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

2-7 Employees

p. 10, p. 65,
p. 116, p. 119

p. 70

2-8 Workers who are not employees

p. 70

b. iii. One male person in Americas
c. FTE at the end of the reporting period.
d. Trainees & apprentices are not included
since some of our apprentices have an
external 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.

Governance

GRI 2: General disclosures 2021

2-9 Governance structure and composition

pp. 85–91

2-10 Nomination and selection
of the highest governance body

Bylaws Art.
15–16,
pp. 85–91

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

pp. 86–88

Sustainability ReportBurckhardt CompressionAnnual Report 2023GRI standard

Disclosure

Reference

Further information
and omissions

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

2-13 Delegation of responsibility
for managing impacts

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
governance body

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

2-19 Remuneration policy

2-20 Process to determine remuneration

p. 63,
pp. 88–91,
Organi zation
regulation 1.–4.

p. 63,
pp. 88–91,
Organi zation
regulation 1.–5.

p. 63

p. 83,
pp. 85–87

pp. 61–62,
Speak Up
policy

p. 89,
Organization
regulation
1.4.4.

p. 91

pp. 98–101

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

Through ongoing communication and
reporting.

2-21 Annual total compensation ratio

–

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

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. 12–14,
pp. 34–35

pp. 43–44, pp.
61–62,
pp. 65–66
Code of
Conduct

pp. 61–63,
Organization
regulation 3.–4.

pp. 61–62,
Speak Up
policy

pp. 61–63,
Speak Up
policy

2-27 Compliance with laws and regulations

p. 62

Sustainability ReportBurckhardt CompressionAnnual Report 2023GRI standard

Disclosure

Reference

Further information
and omissions

2-28 Membership associations

–

Stakeholder engagement

GRI 2: General disclosures 2021

2-29 Approach to stakeholder engagement

pp. 67–68

2-30 Collective bargaining agreements

p. 57

Material topics

GRI 3: Material topics 2021

3-1 Process to determine material topics

pp. 63–65

3-2 List of material topics

p. 64

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

pp. 45–48

p. 47, p. 69

305-2 Energy indirect (Scope 2) GHG emissions

p. 47, p. 69

305-3 Other indirect (Scope 3) GHG emissions

Energy use and efficiency

GRI 3: Material topics 2021

3-3 Management of material topics

305-4 GHG emissions intensity

GRI 302: Energy 2016

302-1 Energy consumption within
the organization

302-3 Energy intensity

Own indicator

Share of renewable electricity

Longevity and recyclability

pp. 47–48,
p. 69

p. 47, p. 69

pp. 48–50

p. 49, p. 69

GRI 3: Material topics 2021

3-3 Management of material topics

pp. 51–53

Own indicators

Reused or refurbished components

Sales of revamp and upgrade services

Environmental impacts of
application purpose

GRI 3: Material topics 2021

3-3 Management of material topics

Own indicators

Working conditions

Sustainability classification of business
activities

GRI 3: Material topics 2021

3-3 Management of material topics

GRI 401: Employment 2016

401-1 New employee hires and employee
turnover

p. 51

pp. 54–55

p. 54

pp. 56–58

p. 56, p. 71

Own indicators

Score satisfaction work situation

p. 57

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

Compressors

– ICAAMC – International Compressor

Applications and Machinery Committee

– 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.

The breakdown by region is not disclosed for
business reasons.

Sustainability ReportBurckhardt CompressionAnnual Report 2023GRI standard

Disclosure

Reference

Further information
and omissions

Score workplace recommendation

Score employee engagement

Occupational 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. 57

pp. 59–60

p. 59

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. 59

403-6 Promotion of worker health

p. 59

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

a. The EOHS team (Environment, Occupa-
tional Health, and Safety), 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
dedicated EOHS notification form.
c. A work stoppage procedure is in place to
stop work in the event of an unsafe situation.
d. There is a procedural policy for reporting
near misses, incidents, investigations,
nonconformities, 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 committee, core
team, execution teams).

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

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

part of our Dr. BeWell program

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

pp. 65–66

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. 59

i. 100% are covered by an occupational health
and safety management system.
ii. 100% of employees are covered by an
internally audited system.
iii. 95.2% are covered by an externally
certified system.

Sustainability ReportBurckhardt CompressionAnnual Report 2023GRI standard

Disclosure

Reference

Further information
and omissions

403-9 Work-related injuries

403-10 Work-related ill health

p. 59
p. 70

p. 60

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

Product safety

GRI 3: Material topics 2021

3-3 Management of material topics

pp. 60–61

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. 61

Business conduct

GRI 3: Material topics 2021

3-3 Management of material topics

pp. 61–62

GRI 205: Anti-corruption
2016

205-1 Operations assessed for risks related to
corruption

GRI 206: Anti-competitive
behavior

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

205-3 Confirmed incidents of corruption and
actions taken

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

p. 62

Sustainability ReportBurckhardt CompressionAnnual Report 2023SASB Mapping

SASB Sustainability Disclosure Topics & Accounting Metrics

Topic

SASB Accounting Metric

Code

Reference

Further information and
omissions

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

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

Sales-weighted fleet fuel efficiency
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) particulate matter (PM) for:
(a) marine diesel engines,
(b) locomotive diesel engines,
(c) on-road medium- and heavy-
duty engines, and (d) other non-road
diesel engines

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

Revenue from remanufactured
products and remanufacturing
services

RT-IG-130a.1

GRI 302-1
GRI 302-3
p. 69

Percentage grid electricity has not
been evaluated separately until
now.

RT-IG-320a.1

GRI 403-1 to 8
pp. 59, 70

We do not yet track near miss
frequency rate (NMFR).

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

RT-IG-410a.1

n/a

RT-IG-410a.2

RT-IG-410a.3

RT-IG-410a.4

n/a

RT-IG-440a.1

pp. 65–66,
pp. 90–91

RT-IG-440b.1

This information is not disclosed for
business reasons.

Energy Management

Employee Health & Safety

Fuel Economy & Emissions in
Use-phase

Materials Sourcing

Remanufacturing
Design & Services

SASB Activity Metrics

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
p. 70

Sustainability ReportBurckhardt CompressionAnnual Report 2023
Sustainability Report

Burckhardt CompressionAnnual Report 2023 PricewaterhouseCoopers AG, Birchstrasse 160, Postfach, 8050 Zürich, Switzerland Telefon: +41 58 792 44 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. Independent practitioner’s limited assurance report on selected indicators in the 2023 Sustainability Report to the Management of Burckhardt Compression Holding AG Winterthur We have been engaged by Management to perform assurance procedures to provide limited assurance on the selected indicators in the 2023 Sustainability Report (including the GHG statement) of Burckhardt Compression Holding AG for the period from 1 April 2023 to 31 March 2024. The selected indicators will be published in the Sustainability Report 2023. The selected indicators in the 2023 Sustainability Report (including the GHG statement) were prepared by the Management of Burckhardt Compression Holding AG (the ‘Company’) based on the: • Energy use per page 69 of the sustainability report – GRI 302-1 Energy consumption within the organization • Share of renewable electricity per page 69 of the sustainability report – GRI 302-1 Energy consumption within the organization • Energy intensity per page 69 of the sustainability report – GRI 302-3 Energy intensity • GHG emissions Scope 1 & Scope 2 per page 69 of the sustainability report – GRI 305-1 Direct (Scope 1) GHG emissions and GRI 305-2 Energy indirect (Scope 2) GHG emissions • GHG emissions business travel (Scope 3) per page 69 of the sustainability report – GRI 305-3 Other indirect (Scope 3) GHG emissions • GHG emissions intensity per page 69 of the sustainability report – GRI 305-4 GHG emissions intensity • Water per page 69 of the sustainability report – Basis of preparation as disclosed on page 69 of the sustainability report on Water consumption as informed by GRI • Waste per page 69 of the sustainability report – Basis of preparation as disclosed on page 69 of the sustainability report on Waste generated as informed by GRI • Lost Time Injury Rate (LTIR) and Severity Rate (IR) per page 70 of the sustainability report – GRI 403-9 Work-related injuries • Lost Time Workday Rate (LTWR) per page 70 of the sustainability report – as informed by GRI 403-9 Work-related injuries • Number of Employees per page 70 of the sustainability report – GRI 102-8 Information on employees and other workers New employee hires – GRI 401-1 New employee hires and employee turnover • Employee turnover per page 71 of the sustainability report – GRI 401-1 New employee hires and employee turnover The above-mentioned GRI Standards and references will be determined in the basis of preparation against which we will evaluate the different KPI (hereafter referred to as the “suitable Criteria”). Inherent limitations The accuracy and completeness of the selected indicators (including the GHG statement) are subject to inherent limitations given their nature and methods for determining, calculating and estimating such data. In addition, the quantification of the selected indicators (including the GHG statement) is subject to inherent uncertainty because of incomplete scientific knowledge used to determine factors related to the selected indicators (including the GHG 79

Sustainability ReportBurckhardt CompressionAnnual Report 2023 3 Burckhardt Compression Holding AG | Independent practitioner's limited assurance report statement) and the values needed to combine e.g. emissions of different gases. Our assurance report will therefore have to be read in connection with the suitable Criteria used by Burckhardt Compression Holding AG. Management’s responsibility The Management of Burckhardt Compression Holding AG is responsible for preparing and presentation of the selected indicators in the 2023 Sustainability Report in accordance with the suitable Criteria. This responsibility includes the design, implementation and maintenance of the internal control system related to the preparation of the selected indicators (including the GHG statement) that are free from material misstatement, whether due to fraud or error. Furthermore, the Board of Directors is responsible for the selection and application of the suitable Criteria. Independence and quality management We are independent of the Burckhardt Compression Holding AG in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code). We have fulfilled our other ethical responsibilities in accordance with the IESBA Code, which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. PricewaterhouseCoopers AG applies International Standard on Quality Management 1, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. Practitioner’s responsibility Our responsibility is to perform an assurance limited engagement and to express a conclusion on the selected indicators in the 2023 Sustainability Report (including the GHG statement). We conducted our engagement in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised) ‘Assurance engagements other than audits or reviews of historical financial information’ and the International Standard on Assurance Engagements 3410, Assurance Engagements on Greenhouse Gas Statements ('ISAE 3410'), issued by the International Auditing and Assurance Standards Board. Those standards require that we plan and perform our procedures to obtain limited assurance whether anything has come to our attention that causes us to believe that the selected indicators in the 2023 Sustainability Report (including the GHG statement) was not prepared, in all material aspects, in accordance with the suitable Criteria. Based on risk and materiality considerations, we performed our procedures to obtain sufficient and appropriate assurance evidence. The procedures selected depend on the assurance practitioner’s judgement. A limited assurance engagement under ISAE 3000 (Revised) and ISAE 3410 is substantially less in scope than a reasonable assurance engagement in relation to both the risk assessment procedures, including an understanding of internal control, and the procedures performed in response to the assessed risks. Consequently, the nature, timing and extent of procedures for gathering sufficient appropriate evidence are deliberately limited relative to a reasonable assurance engagement and therefore less assurance is obtained with a limited assurance engagement than for a reasonable assurance engagement. We performed the following procedures • Assessing the suitability in the circumstances of Company’s use of the suitable Criteria, applied as explained in the GRI index and footnote 6 on page 69 in the 2023 Sustainability Report (including the GHG statement) to the selected indicators in the 2023 Sustainability Report (including the GHG statement); • Inquiries and detailed walkthroughs with relevant stakeholders for the selected indicators 2023 in the 2023 Sustainability Report (including the GHG statement); • Inspection of process and control descriptions and other internal guidelines and relevant documents; • Analytical procedures; • Reperformance of relevant calculations (including the GHG statement); • Additional assurance procedures as deemed necessary (e.g. sample based source tracing); • Local level procedures (site visits to inspect local processes and reconcile source evidence). 80

Sustainability ReportBurckhardt CompressionAnnual Report 2023 4 Burckhardt Compression Holding AG | Independent practitioner's limited assurance report We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Conclusion Based on the work we performed, nothing has come to our attention that causes us to believe that the selected indicators in the 2023 Sustainability Report (including the GHG statement ) of Burckhardt Compression Holding AG for the period from 1 April 2023 to 31 March 2024 are not prepared, in all material respects, in accordance with the suitable Criteria. Restriction of use and purpose of the report This report is prepared for, and only for, the Management of Burckhardt Compression Holding AG, and solely for the purpose of reporting to them on selected indicators in the 2023 Sustainability Report(including the GHG statement) and no other purpose. We do not, in giving our conclusion, accept or assume responsibility (legal or otherwise) or accept liability for, or in connection with, any other purpose for which our report including the conclusion may be used, or to any other person to whom our report is shown or into whose hands it may come, and no other persons shall be entitled to rely on our conclusion. PricewaterhouseCoopers AG Stefan Räbsamen Petar Lesic Zürich, 3 June 2024 ‘The maintenance and integrity of Burckhardt Compression Holding AG ‘s website and its content are the responsibility of the Board of Directors; the work carried out by the assurance provider does not involve consideration of the maintenance and integrity of the Burckhardt Compression Holding AG 's website, accordingly, the assurance providers accept no responsibility for any changes that may have occurred to the reported selected indicators (including the GHG statement) or suitable Criteria since they were initially presented on the website. Sustainability Report

Declaration of the Board of Directors

The Board of Directors of Burckhardt Compression Holding AG is
responsible for the preparation and presentation of the Sustainability
Report 2023 in accordance with the applicable regulations.

The Board of Directors of Burckhardt Compression Holding AG
approved the Sustainability Report for the financial year 2023 and
commits to make it accessible on the Company’s website for a mini-
mum of ten years.

Non-financial matters according to article 964b
of the Swiss Code of Obligations (CO)

Chapters in this report

Environmental matters

Social matters

Employee related matters

Respect for human rights

Combatting corruption

Winterthur, May 31, 2024

Greenhouse gas emissions and climate change
Energy use and efficiency
Longevity and cyclability
Environmental impacts of application purpose

Product safety
Dialog with our stakeholders

Working conditions
Occupational health and safety

Overarching human rights, environmental,
and governance due diligence
Supply chain due diligence

Business conduct

Annual Report 2023

Burckhardt Compression

Corporate Governance

Corporate
Governance

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

Burckhardt CompressionAnnual Report 2023Corporate Governance

Burckhardt Compression has scheduled its Annual General Meeting
2024 on July 5, 2024.

The information presented in this report reflects the situation on
March 31, 2024, unless otherwise noted, and this report is structured
in accordance with the latest DCG’s outline and numbering.

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 organiza-
tional structure consisting of two divisions, the Systems Division
(compressor manufacturing business) and the Services Division
(compressor services and components). The management structure
of the Burckhardt Compression is given in the organizational 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 under
the laws of Switzerland with its legal domicile in Winterthur, is the
only listed Group company. Burckhardt Compression registered
shares (BCHN) are listed on the SIX Swiss Exchange in Zurich (ISIN:
CH0025536027; security number 002553602). Its market capitaliza-
tion as per March 31, 2024 amounted to CHF 1’921’000’000. Burck-
hardt Compression Holding AG holds 13’805 BCHN shares (0.41% of
the total registered shares) per March 31, 2024.

1.1.3. Unlisted Group companies
Information on the unlisted companies included in the scope of con-
solidation of Burckhardt Compression Holding AG is given in the
financial report on page 147, Note 102, “Subsidiaries”.

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

1.2. Significant shareholders
According to information available to the company from the disclo-
sure 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, 2024. In accordance with the
company’s Articles of Incorporation, the voting rights of NN Group
N.V., The Goldman Sachs Group Inc. and UBS Fund Management
(Switzerland) AG are limited to 5.0% of the total number of BCHN
registered shares recorded in the Share Register:

Name

Country

of shares
in %

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

NN Group N.V.*

The Goldman Sachs Group, Inc.**

UBS Fund Management
(Switzerland) AG

Credit Suisse Funds AG

BlackRock, Inc.

Swisscanto Fondsleitung AG

9.97

9.86

6.45

5.06

3.24

3.07

3.01

* According to the notification to the Disclosure office of SIX Exchange Regulation Ltd.

published on November 19, 2021.

** According to the notifications to the Disclosure Office of SIX Exchange Regulation Ltd.
published on June 24, 2022, and May 11, 2023 respectively, 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.”

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

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

Burckhardt CompressionAnnual Report 2023Corporate Governance

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.

2.2. Capital band and conditional capital in particular
At the Annual General Meeting 2023, a new capital band was intro-
duced in the Articles of Incorporation. As per Article 3a of Burckhardt
Compression Holding AG’s Articles of Incorporation, Burckhardt
Compression Holding AG has a capital band between CHF 8’075’000
(lower limit) and CHF 9’350’000 (upper limit). The Board of Directors
is authorized to increase or reduce the share capital at any time, once
or several times and in any amounts, to a maximum of CHF 9’350’000
up to July 1, 2028. Within the capital band, the capital can be
increased by issuing up to 340’000 fully paid-up registered shares
with a nominal value of CHF 2.50 each or decreased by expunging
a maximum of 170’000 registered shares with a nominal value of
CHF 2.50 each.

The company does not have any conditional capital.

Details on the capital band:
The transferability of the shares is restricted as provided for in the
Articles of Incorporation. Unless included in the General Meeting’s
authorization resolution, the Board of Directors issues the required
instructions. The Board of Directors determines the issue price, issue
date, conditions for exercising the subscription right, the type of
contribution in kind, if applicable, and the beginning of the dividend
entitlement. The Board of Directors is entitled to exclude the share-
holders’ subscription right in whole or in part in favor of third parties
if such new shares should be used (i) for the acquisition of companies
through an exchange of shares, or (ii) to finance the acquisition of
companies or parts of companies. The Board of Directors can also
exclude the subscription right if the new shares are issued in the
context of a public placement. Shares for which subscription rights
have been granted, but not exercised are allocated by the Board of
Directors at its sole discretion. Further details on the capital band
are also included in Chapter 2.2 above.

2.3. Changes in capital
There has been no movement (increase or decrease) in share capital
since the Initial Public Offering (IPO) in June 2006.

Shares and participation certificates

2.4.
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 commercial
register. This 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 voting rights of trea sury shares – held by
Burckhardt Compression Holding AG – are 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 exercise of
subscription, option, or conversion rights, with the exception of shares
acquired through inheritance, division of an estate or marital property
law. 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 registration restrictions, are regarded 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 request
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 registra-
tion application that they hold the shares for their own account (nom-
inees) will be entered in the Share Register with voting rights if the
nominee concerned provides proof that he/she/it is subject to super-
vision by an accredited bank and financial market regulator and if he/
she/it has concluded an agreement with the Board of Directors con-
cerning his/her/its status. Nominees holding 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 share-
holdings of the persons for whom they hold more than 2.0% of the
issued share capital. The Board of Directors is entitled to approve

Burckhardt CompressionAnnual Report 2023Corporate Governance

exceptions from the statutory conditions for registration with respect
to special circumstances.

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

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

3. Board of Directors
3.1./3.2. Members of the Board of Directors/
Other activities and vested interests
The Articles of Incorporation stipulate that the Board of Directors
consists of a minimum of three (3) and a maximum of seven (7) mem-
bers. Since the Annual General Meeting 2021, all members are
non-executive and independent members of the Board of Directors in
the context of the “Swiss Code of Best Practice for Corporate Gover-
nance” from economiesuisse.

The composition of the Board of Directors is as follows:

Name

Nationality

Function

First elected

Term expires

Ton Büchner

Kaspar Kelterborn

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; member NCC

2020

2023

2012

2014

2019

2022

2024

AC = Audit Committee

| NCC = Nomination and Compensation Committee

| SSC = Strategy and Sustainability Committee

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 Burckhardt Compression. Furthermore, none
of the members of the Board of Directors has material business rela-
tionships with Burckhardt Compression AG and/or any subsidiary
within Burckhardt Compression.

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

Burckhardt CompressionAnnual Report 2023Corporate Governance

Ton Büchner (1965)
Independent Board Member since 2020

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

David Dean (1959)
Independent Board Member since 2019

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

Education
PhD in Mechanical Engineering,
TU Braunschweig, Germany

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 AG, 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

Professional background
Since 2018 Executive Management
member (CTO), KSB SE & Co. KGaA,
Germany
2017 Executive Management member,
Technology, KSB AG, Germany
2014–2017 Senior Vice President, Pumps,
KSB AG, Germany
2007–2013 Senior Vice President, Service,
KSB AG, Germany
2002–2007 Head Product Management
and Development Engineered Pumps,
KSB AG, Germany
1997–2001 Head Development and
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

Other activities and commitments
– Managing Director, KSB Management SE,

– Advisor, Ammega, Switzerland

Germany

– Member of the Board of Directors, KSB

Ltd., India (a fully consolidated subsidiary
of KSB SE & Co. KGaA)

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 Holding AG, Switzerland
– Member of the Board of Directors
Komax Holding AG, Switzerland
– Member of the Board of Directors,
BRUGG Group AG, Switzerland
– Member of the Board of Directors,

Metall Zug AG, Switzerland

Burckhardt CompressionAnnual Report 2023Corporate Governance

Dr. Monika Krüsi (1962)
Independent Board Member since 2012

Maria Teresa Vacalli (1971)
Independent Board Member since 2022

Kaspar Kelterborn (1964)
Independent Board Member since 2023

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

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

Education
Lic. oec. HSG, University of St. Gallen,
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

– Member of the Board of Directors,

Energy 360° AG, Switzerland

– Member of the Board of Directors

Accelleron Industries AG, Switzerland

– Member of the Board of Trustees,
Ernst Göhner Stiftung, 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
Committee, Basler Kantonalbank,
Switzerland
2016–2018 CEO, Moneyhouse AG,
NZZ Mediengruppe, 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 house-
Coopers, Switzerland

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

sation Committee

Other activities and commitments
– Member of the Board of Directors,
Kardex Holding AG, Switzerland
– Member of the Board of Directors,

Die Schweizerische Post AG, Switzerland

– Member of the Board of Directors,

PostFinance AG, Switzerland

Professional background
Since 2021 Managing Partner, Kelterborn
Advisory AG, Switzerland
2006–2021 CFO & Member of the
Executive Board, Conzzeta AG, Switzerland
2002–2005 CFO & Member of the
Executive Board, Unaxis Holding AG,
Switzerland
2000–2002 Divisional Head Finance &
Divisional Controller, Clariant BTP Ltd.,
United Kingdom
1999–2000 Regional Finance Director,
Clariant Singapore Pte, Singapore
1997–1998 Country Finance Director,
Clariant Chemicals Ltd., Bangkok
1996–1997 Head Controlling, Clariant
Productos SA, Spain
1993–1995 Controller, Sandoz Venezuela
SA, Venezuela

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

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

International AG (Beyond Gravity),
Switzerland

– Member of the Board of Directors,

Wipf Holding AG, Switzerland

– Member of the Board of Directors, CPH

Chemie + Papier Holding AG, Switzerland

– Member of the Board of Directors,
Karl Bubenhofer AG, Switzerland

Burckhardt CompressionAnnual Report 2023Corporate Governance

Independence of the Board of Directors
All members are non-executive and independent members of the
Board of Directors in the context of the Swiss Code of Best Practice
for Corporate Governance from economiesuisse. Non-executive mem-
bers 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 business relation-
ships with the company.

3.3. Rules in the Articles of Incorporation 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 Chair of the Board of
Directors, 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.

Internal organization and structure

3.5.
3.5.1. Allocation of tasks within the Board of Directors
The competencies of the Board members are depicted in the follow-
ing 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 matters
related to external and internal audits, risk management, accounting
policies and practices and compliance with accounting standards
issued. The CEO, the CFO, the Head of the Internal Group Audit and
representatives of the external auditors also participated in the Audit
Committee’s ordinary meetings. The members are David Dean (Chair),
Maria Teresa Vacalli and Kaspar Kelterborn.

Nomination and Compensation Committee
This committee advises and assists the Board of Directors on appoint-
ing, assessing and dismissing members of the Executive Manage-
ment, 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 directors and the
Executive Management members. The CEO and the CHRO also attend
the ordinary meetings of the Nomination and Compensation Commit-
tee. The members are Dr. Monika Krüsi (Chair), Dr. Stephan Bross and
Maria Teresa Vacalli.

Ton Büchner Stephan Bross

David Dean

Monika Krüsi Maria Teresa

Vacalli

Kaspar
Kelterborn

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, holds a degree in law (mag. iur.).

Burckhardt CompressionAnnual Report 2023Corporate Governance

Strategy and Sustainability Committee
The Strategy and Sustainability Committee supports the CEO in devel-
oping corporate strategy, advises the Board of Directors on strategic
matters such as acquisitions and divestments, and ensures that sus-
tainability (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. Additionally, 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 Burckhardt Compression. It has final
authority and defines the guidelines regarding strategy, organization,
financial planning, and accounting for Burckhardt Compression. The
Board of Directors has delegated executive management responsi-
bility to the CEO of Burckhardt Compression. The Board of Directors

appoints a Secretary for the Board and for the company. The Secre-
tary 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 2023, 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

Stephan
Bross

David
Dean

Monika
Krüsi

Maria Teresa
Vacalli

Kaspar
Kelterborn

Urs
Leinhäuser

04/27/2023, meeting of

05/25/2023, meeting of

05/31/2023, meeting of

06/01/2023, meeting of

09/06/2023, meeting of

10/25/2023, meeting of

10/26/2023, meeting of

11/17/2023, meeting of

12/07/2023, meeting of

12/08/2023, meeting of

12/18/2023, meeting of

01/17/2024, meeting of

01/18/2024, meeting of

02/19/2024, meeting of

02/26/2024, meeting of

03/05/2024, meeting of

03/06/2024, meeting of

03/18/2024, meeting of

NCC

BOD

NCC

BOD

NCC

BOD

NCC

SCC

NCC

SCC

NCC

BOD

2 hours

4.5 hours

3 hours

8 hours

6 hours

4 hours

3.5 hours

6 hours

1.5 hours

2 hours

5 hours

1 hour

1.5 hours

9 hours

7.5 hours

1 hour

2 hours

2.5 hours

7 hours

1.5 hours

•

BOD = Board of Directors

| AC = Audit Committee

| NCC = Nomination and Compensation Committee

| SSC= Strategy and Sustainability Committee

Burckhardt CompressionAnnual Report 2023Corporate 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 Compression,
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 company
executives are listed in detail in the organization regulation (https://
www.burckhardtcompression.com/investors/corporate-governance).

Information and control instruments vis-à-vis the

3.7.
Executive Management
Order intake, the income statement, balance sheet, liquidity planning
and cash flow, headcount, personnel costs and capital expenditure are
consolidated and annotated on a monthly basis. A rolling forecast of
the Burckhardt Compression results for the current and the coming
fiscal years is also prepared and annotated four times a year (April,
July, October and January). Targets for the coming fiscal year are
determined based on the January forecast. The financial reports and
the forecasts are distributed to the members of the Executive Mana-
gement and all members of the Board of Directors. 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
Burckhardt Compression.

Internal Group Audit and internal control system (ICS)
The Internal Group Audit reports to the Chair of the Audit Committee
of the Board of Directors. Management responsibility for Internal
Group Audit has been delegated to the Head of Group Controlling,
who is also responsible for planning and conducting the audits. The
CFO is responsible for the coordination between the Audit Committee
and the Head of the Internal Group Audit. Internal Group Audit con-
sists of qualified staff from Finance and Controlling of Burckhardt
Compression AG and several selected financial specialists from
Burckhardt Compression's subsidiaries. Qualified experts from other
departments (e.g., IT, Legal or Human Resources) may be consulted,
depending on the auditing assignment. This efficient organization is
tailored to the needs and size of Burckhardt Compression and fosters

an active exchange of information and best practice with the objective
of creating sustained added value for Burckhardt Compression by
means of continual process improvement. The internal auditors
undergo regular training for the performance of their tasks. The train-
ing 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. Eight (8)
internal audits were carried out in fiscal year 2023. The Internal
Group Audit’s reports were distributed to the management of the
audited company, the members of the Audit Committee of the Board
of Directors, the Executive Management members and to the external
company auditors. The statutory 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 policy.
In a two-stage process, key risks are identified using an anticipatory
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 evaluated, managed and
stringently monitored, avoided, mitigated or transferred to third par-
ties through appropriate risk management measures. The first stage
of risk management consists of a continuous risk management pro-
cess, in which the Division Presidents and the Burckhardt Compres-
sion Group functions (CEO, CFO, CHRO, CIO, Legal & Compliance)
systematically identify and assess the risks in a regular rhythm,
define the necessary risk mitigation measures together with the
responsible persons, and set and monitor deadlines for implementa-
tion. 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 end, the
Executive Management prepares an overview of the main risks faced
by Burckhardt Compression 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 implementing them, and an
implementation timetable. The Audit Committee 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 also include 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).

Burckhardt CompressionAnnual Report 20234. Executive Management
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

CH/FR

CEO

CFO

CHRO

President Systems Division

President Services Division

Biographical details and information on other activities and commit-
ments of the members of the Executive Management:

Corporate Governance

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 2023, 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. Additionally,
Burckhardt Compression has assured sufficient training prior to the
rollout of the New Federal Act on Data Protection which came into
effect on September 1, 2023. For many years, Burckhardt Compres-
sion has also been investing in IT Security to ensure technical resil-
ience to cyberattacks. In 2023, the focus of the work was on further
strengthening the safety awareness of all employees.

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 elections in 2022.

3.9. Self-evaluation of the Board of Directors
Regarding the previous fiscal year, 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 internal
evaluation only. Each of the members of the Board of Directors com-
pleted 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.

Burckhardt CompressionAnnual Report 2023Corporate Governance

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 &
Administration, Sulzer Brasil S.A., Brazil;
Regional Controller, Sulzer Pumps South
America & South Africa
1997–2001 Regional Controller Asia/
Pacific, Sulzer International Ltd.;
General Manager, Sulzer Hong Kong Ltd.,
Hong Kong, SAR China
1994–1997 Management Consultant,
OBT Treuhand AG Zurich, Switzerland

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

Burckhardt CompressionAnnual Report 2023Corporate Governance

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

Burckhardt CompressionAnnual Report 2023Corporate Governance

4.3. Rules in the Articles of Incorporation 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.

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 Compensation
Committee assesses succession planning for the Executive Manage-
ment 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.

5. Compensation, shareholdings and loans
5.1. Compensation and shareholding programs
The principles and elements of compensation paid to members of the
Board of Directors and the Executive Management as well as the
authority and the mechanisms used to determine such compensation
are explained in the Compensation Report on pages 98 to 106.

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 98 to 106 and in the
financial statements, note 103, “Share capital and shareholders” on
page 147.

Burckhardt Compression did not grant any loans, credit or collat-
eral to any of the members of the Board of Directors or the Executive
Management in fiscal year 2023 and there are no arrangements of
this nature outstanding.

5.2. Rules in the Articles of Incorporation
5.2.1. on performance-related payments and allocations
The rules in the Articles of Incorporation on the principles applicable
to performance-related pay and to the allocation of shares, contin-
gent rights to receive shares or comparable instruments of the com-
pany, as well as the additional amount for payments to members
of the Executive Management newly appointed after the vote on pay
at the Annual General Meeting of shareholders are available on the
website of Burckhardt Compression in the Articles of Incorporation
(Art. 25, Art. 26 and Art. 27).
(https://www.burckhardtcompression.com/investors/corporate-
governance).

5.2.2. on loans, credit facilities and post-employment benefits
The rules in the Articles of Incorporation on loans, credit arrange-
ments and pension plan benefits for members of the Board and the
Executive Management are available on the website of Burckhardt
Compression in the Articles of Incorporation (Art. 29).
(https://www.burckhardtcompression.com/investors/corporate-
governance).

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

Burckhardt CompressionAnnual Report 2023Corporate Governance

6. Shareholders’ participation rights
6.1. Voting rights restrictions and representation
6.1.1. Rules in the Articles of Incorporation on restrictions
to voting rights
Please refer to above Chapter 2.6.1. To amend the restrictions to v ot-
ing rights, the statutory quorum for changes to the company’s Articles
of Incorporation is required (please refer to below Chapter 6.2)

Changes of control and defensive
measures
7.1. Duty to make an offer
Once a shareholder acquires 33% of share capital and voting rights,
he/she/it will be under an obligation to submit a public tender offer.
The Articles of Incorporation contain neither an opting-out nor an
opting- up clause.

6.1.2. Rules in the Articles of Incorporation on the issue
of instructions to the independent proxy, and any rules
in the Articles of Incorporation on the electronic participation
in the General Meeting of shareholders
The rules in the Articles of Incorporation on the issue of instructions
to the independent proxy and on the provision that a shareholders’
meeting may be held by electronic means without a physical venue
are available on the website of Burckhardt Compression in the
Articles of Incorporation (Art. 9 and Art. 13).
(https://www.burckhardtcompression.com/investors/corporate-
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 Articles of Incorporation. Dis-
solution or merging of the company requires the presence or rep-
resentation 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
petition 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 Articles of Incorporation, shareholders representing jointly
at least 0.5% of the share capital or of the votes may request discus-
sion of an item at a General Meeting. Subject to the same require-
ments, the shareholders may request that petitions relating to items
on the agenda be included in the notice convening the 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.

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

7A. Transparency on non-financial matters
The report on non-financial matters (in accordance with the require-
ments of the Articles 964b and 964c of the Swiss Code of Obliga-
tions) is included on page 34. This report will be submitted to the
Annual General Meeting for a consultative vote.

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-
holders for one (1) year at a time. As a matter of good practice,
Burckhardt Compression tenders its external audit contracts at least
every ten (10) years and examines all bids received. The most recent
invitation to tender was issued during fiscal year 2023. Ernst & Young
AG (EY) has been pre-selected by the Board of Directors and EY will
be proposed for a vote as statutory auditor at the upcoming Annual
General Meeting. In the pre-selection process, three (3) companies
underwent a detailed evaluation based on quality and pricing criteria.
EY emerged as the front-runner in the process, this based on a com-
petitive fee structure but also its offer ranked first in terms of the
audit concept and team structure. If elected, EY will commence work
as statutory auditor in the fiscal year 2024.

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.

8.1.2. Date on which the lead auditor responsible for the current
audit mandate took up office
The auditor in charge will be changed after a maximum period of
seven (7) years. Oliver Illa has served as auditor in charge since the
2023 reporting period.

Burckhardt CompressionAnnual Report 2023Corporate Governance

8.2. Auditor’s fees
Total fees for auditing services provided by PwC worldwide during
fiscal year 2023 amounted to TCHF 429 (previous year: TCHF 406).

8.3. Additional fees
The additional fees for services provided by PwC worldwide during
fiscal year 2023 are in the amount of TCHF 72 (previous year: TCHF
41) for transfer pricing assessment and documentation services
(TCHF 15), other tax services (TCHF 12) and for the execution of a
limited scope audit on sustainability indicators (TCHF 45). 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 annual and
semi-annual financial statements. Once a year, the members of the
Audit Committee receive from the statutory auditor a summary of the
audit findings and suggested improvements. The Audit Committee
held four meetings during the 2023 reporting period. The auditor in
charge and another representative of the auditor took part in two
of these meetings.

Information policy

9.
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 com-
ments on the trend of business and the outlook for the future. Burck-
hardt Compression Holding AG provides price-sensitive information
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 deliv-
ered to interested parties on request.

Key dates for 2024 and 2025
July 5, 2024
Annual General Meeting
November 5, 2024
Results for the first half of 2024 (closing September 30, 2024)
June 5, 2025
2024 Annual Report (closing March 31, 2025)
July 5, 2025
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 parties can also
subscribe to the email distribution list.

Burckhardt CompressionAnnual Report 2023Corporate Governance

10. Quiet periods
No member of the Board of Directors, member of the Executive
Management or other employee of Burckhardt Compression specifi-
cally notified by the CFO may trade with Burckhardt Compression
shares listed in the stock exchange or any other exchange-traded
financial instruments relating to BCHN shares, such as derivates,
during the period starting from March 1 and September 1, respec-
tively and ending with the close of the second trading day after Burck-
hardt 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 2023.

Burckhardt CompressionAnnual Report 2023Compensation Report

Compensation
Report

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

Burckhardt CompressionAnnual Report 2023Compensation Report

1. Basis
At Burckhardt Compression, the policies and system in place for the
compensation of the Board of Directors and the Executive Manage-
ment are based on the requirements of the revised Swiss Code of
Obligations, in effect as of January 1, 2023, the Directive on Informa-
tion relating to Corporate Governance (DCG) issued by the SIX Swiss
Exchange, and the Articles of Incorporation of Burckhardt Compres-
sion 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 General
Meeting and their term of office shall expire at the end of the next
Annual General Meeting. The Annual General Meeting of July 1, 2023
re-elected Dr. Monika Krüsi and Dr. Stephan Bross and newly elected
Maria Teresa Vacalli to the Nomination and Compensation Commit-
tee. The Board of Directors appointed Dr. Monika Krüsi as Chair of the
Nomination and Compensation Committee.

The NCC meets a minimum of twice a year, in 2023 it met eight
times. The CEO and Chief Human Resources Officer (CHRO) attend
these meetings in an advisory capacity, except during deliberation on
meeting topics that pertain to themselves. Following each NCC meet-
ing, 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 company’s
Articles of Incorporation and Organizational Regulations (www.burck-
hardtcompression.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 person-
nel policies of the company and the entire Group as prescribed by law
or the company’s Articles of Incorporation. 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.

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

– 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 Arti-
cles of Incorporation, which are also approved by the shareholders.
The provisions of the Articles of Incorporation are listed below: https://
www.burckhardtcompression.com/investors/corporate- governance/
– Article 24: Approval of compensation by the General Meeting
– Article 25: Additional amount for new members of the Executive

Management

– Article 26: General compensation principles
– Article 27: Contracts with regard to compensation
– Article 29: Loans, credits, and pension benefits outside the

occupational benefits insurance

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

3. Compensation system
The Burckhardt Compression Group compensation system consists
of a mix of fixed and variable components. In accordance with the
Articles of Incorporations of Burckhardt Compression Holding AG,
variable compensation can be paid in whole or part in the form of
shares, conditional rights to receive shares, or in comparable instru-
ments of the company.

Topic

Proposal/
recommendation by

Approval
authority

NCC

CEO

BOD

BOD, subject
to AGM approval

NCC

Compensation principles
and guidelines

Compensation Report

Compensation
of Board of Directors

Compensation
of Executive Management

Loans to members of the
Executive Management

BOD = Board of Directors
NCC = Nomination and Compensation Committee
AGM = Annual General Meeting

Burckhardt CompressionAnnual Report 2023Compensation Report

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 compensation
consists of a fixed remuneration 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 average
share price (daily closing price on the SIX exchange) of the 30 trading
days before the Annual General Meeting.

The fixed component amounts to CHF 81’000 for members of the
Board of Directors and to CHF 184’000 per year for the 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 Directors. 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 compen-
sation 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 Management. 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

Annual Base
Salary

Monthly cash
salary

Attract
and retain

Continuous

Short-term
incentive

Long-term
incentive

Benefits:
Pension and
Insurance

Variable performance-
and profit related
annual cash bonus

Variable performance-
and profit related
long-term incentive
bonus awarded
in form of PSU

Pay for
performance

Annual

Reward long-
term performance
aligned with
shareholders

3 years

Monthly
contributions

Protect
against risk

Continuous

Annual Base Salary
The functions performed by members of the Executive Management
are assigned to so called Global Grades as defined by a global func-
tional 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 expansion of product portfolio and geographic
scope, sustainability, and digitalization are reviewed annually. The
base salary is reviewed annually.

Annual Short-Term Incentive (STI)
The members of the Executive Management are eligible for a variable
performance- and profit-related bonus in addition to their base sala-
ries. The STI is calculated based on the group net income of the
Burckhardt Compression Group – if a minimum financial threshold of
4% return on sales at the net profit level is achieved – and a percent-
age rate determined by the Global Grade. This measure focuses on
profitability and aligns the Executive Management with the interests
of all stakeholders. The annual STI is based on a formulaic calculation
of net income multiplied by a percentage rate where no discretion is
applied. The percentage rate for the CEO is 0.28%. The percentage
rate for other members of the Executive Management – depending on
their Global Grade – ranges from 0.12% to 0.16%. The payout of the
STI is capped at 80% (2022: 50%) of the base salary of the members
of the Executive Management. This revision was made in 2022 to the
STI plan and implemented in fiscal year 2023. The plan is regularly
reviewed.

Long-Term Incentive (LTI)
Based on the NCC’s regular review of the compensation policies and
the expiring of the LTI plan, the Board of Directors has approved a new
LTI plan with the start of fiscal year 2023.

To align compensation stronger to the interests of shareholders,
increase the pay for performance relationship and strengthen the
retention of the most senior employees, the new LTI plan is granted
in form of Performance Share Units (PSUs), which are conditional
upon the fulfilment of certain performance conditions. The vesting of
the award is based on the achievement of three KPIs over a period of
three years, subject to continued employment:
– Cumulative Earnings per Share (50% weighted)
– Cumulative Revenue (25% weighted)
– Environmental, Social and Governance (ESG) measures

(25% weighted)

100

Burckhardt CompressionAnnual Report 2023Compensation Report

The KPIs have been chosen to balance top-line growth and bottom-
line impact, as well as the commitment to sustainability, measured
by the reduction of GHG emission intensity by 50% by 2027.

The target amount of LTI award is divided by a pre-defined refer-
ence share price at grant, resulting in a number of PSUs. These con-
vert to a number of shares at the end of a three-year vesting period,
subject to the described performance and employment conditions.

In case of termination of employment, the following provisions apply:

Case

Provisions

Voluntary resignation

Forfeiture of PSU

Termination by employer

Forfeiture of PSU

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-competi-
tion compensation. Pension benefits are part of the regular company
occupational pension plans.

Starting from fiscal year 2023, the members of the Executive
Management are required to build up and own at least a minimum
multiple of their annual base salary in Burckhardt Compression
shares as set out in the table below:

Function

Minimum shareholding requirement

Retirement and disability

Pro rata vesting at regular vesting date

Death

Accelerated pro rata vesting based on
performance achievement of 100%

CEO

CFO

200% of Annual Base Salary

150% of Annual Base Salary

Other friendly leavers

Pro rata vesting at regular vesting date

Other EM members

100% of Annual Base Salary

Change of control

Immediate pro rata vesting based on effective
performance, or 100% if not assessable

The Executive Management is expected to meet these requirements
at the end of the fifth year of the implementation of the requirements
or of their appointment to the Executive Management.

The plan includes malus and clawback provisions which allow to
reduce or reclaim all or parts of the award in defined cases, such as
material financial restatement due to non-compliance to accounting
standards or fraud and violation of law. The plan also includes
anti-hedging and anti-pledging provisions.

The annual target amount of the LTI award is CHF 150’000 for the
CEO and between CHF 75’000 and CHF 100’000 for the other mem-
bers of the Executive Management, depending on their Global Grade.
For new joiners to and promotions within the Executive Management
the target amount is pro-rated.

In fiscal year 2023, a grant has been awarded which accounts for
the transition to the new LTI Plan; the target amount of the LTI award
was CHF 450’000 for the CEO and between CHF 225’000 and
CHF 300’000 for the other members of the Executive Management.
The level of the transition target amounts has been determined to
maintain the same level of annual target amounts as in the previous
LTI plan.

101

Burckhardt CompressionAnnual Report 2023Compensation Report

Compensation allocated with com parative figures for the previous year

4.
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 2023 and 2022:

in CHF 1’000 (gross)

Function

Fees

Social security
contributions and
other benefits⁴

2023

Members of the Board of Directors

Ton Büchner

Dr. Stephan Bross

David Dean

Kaspar Kelterborn1

Dr. Monika Krüsi

Urs Leinhäuser2

Maria Teresa Vacalli

Total

Approved by the
2022 AGM for FY2023

Chair

Member

194

101

667

in CHF 1’000 (gross)

Function

Fees

Members of the Board of Directors

Ton Büchner

Dr. Stephan Bross

David Dean

Dr. Monika Krüsi

Urs Leinhäuser

Maria Teresa Vacalli3

Total

Approved by the
2021 AGM for FY2022

Chair

Member

194

101

636

Social insurance
contributions and
other benefits⁴

1 From July 1, 2023
2 Until June 30, 2023
3 From July 2, 2022
⁴ Includes mandatory required social security contributions only as per local Swiss regulations, and expenses as per Board of Directors compensation regulation

212

101

103

112

109

737

890

2022

212

101

103

112

101

705

750

The total fixed compensation for the Board of Directors for the fiscal
year under review is CHF 32’000 higher than for the previous fiscal
year due to full year effect in financial year 2023 of an additionally
appointed member of the Board of Directors in July 2022. The Annual
General Meeting of July 1, 2022 approved aggregate fixed compen-
sation in the amount of CHF 890’000 (gross, including social security
contributions) for the Board of Directors (six members) for fiscal year
2023. The amount of compensation actually paid was CHF 737’000
which is within the limit of the approved amount by the AGM.

102

Burckhardt CompressionAnnual Report 2023Compensation Report

4.2. Compensation allocated to the Executive Management
The following compensation was allocated to the members of the Executive Management for the fiscal years 2023 and 2022:

in CHF 1’000 (gross)

Function

Fixed
base
salary,
cash

Social
insurance
contribu-
tions and
other
benefits

Total
fixed
compen-
sation

Short-
term
incentive,
cash²

Share-
based
long-
term
incentive³

Social
security
contribu-
tions and
other
benefits

Total
variable
compen-
sation

2023
Total

Executive Management

Fabrice Billard (highest paid)

Other members of the Executive
Management

Total

Approved by the 2022 AGM for FY 2023

in CHF 1’000 (gross)

Function

CEO

438

111

549

257

156

496

1’045

1’170

1’608

269

380

1’439

1’988

2’400

552

809

390

546

175

258

1’117

1’613

2’556

3’601

Fixed
base
salary,
cash

Social
insurance
contribu-
tions and
other
benefits

Total
fixed
compen-
sation

Short-
term
incentive,
cash²

Share-
based
long-
term
incentive³

Social
security
contribu-
tions and
other
benefits

Total
variable
compen-
sation

2022
Total

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

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

² Best estimate before publication
³ Amounts displayed represent the fair value of the LTI in line with Swiss GAAP FER

The total amount of fixed compensation for the members of the
Executive Management for the fiscal year 2023 is 14% higher than
for the previous year’s period, due to changes in the Executive Mana-
gement composition in fiscal year 2022 and to reflect salary market
developments. The Annual General Meeting of July 1, 2022 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 2023. The amount of fixed
compensation actually paid (gross, including social security contri-
butions) is within the limit of the approved amount by the AGM 2022.
The annual STI for the Executive Management for fiscal year 2023
is 48% higher than in the previous year. This is as a result of a 31%
higher net income achieved in fiscal year 2023 compared to the pre-
vious fiscal year and the changes in the Executive Management com-
position in fiscal year 2022. The annual STI is based on a formulaic
calculation (as described under 3.2 of this compensation report)
where no discretion has been applied.

103

Net Income

STI %

STI Amount CHFk

CEO

Best estimate before publication* 0.28%

257

* Payment according to actuals, no discretion applied

Expenses for the Executive Management’s LTI compensation
decreased by 2% from the previous year, reflecting changes in the
Executive Management composition in fiscal year 2022 as well as the
current provision levels for the LTI compensation in its first year of
implementation. The provision made for the LTI compensation is
based on the assessment of the business performance over a multi-
year period. This requires in accordance with Swiss GAAP FER, that
the related expenses must be allocated over the program’s vesting
period which can lead to adjustments within individual fiscal years
and cause an accumulation of personnel expense portions from pre-
vious periods.

Burckhardt CompressionAnnual Report 2023

Compensation Report

The total variable compensation for the individual members of the
current Executive Management for the period under review ranged
from 43% to 48% of total compensation.

Payments to former members of the Executive Management
No payments have been made to former members of the Executive
Management nor to their closely related parties.

Aggregate amount of variable compensation for the Executive
Management for fiscal year 2023 subject to approval at the AGM
For the fiscal year 2023 the total amount of CHF 1’613’000 (gross,
including social security contributions and other benefits) has been
allocated.

5. Overview of shareholdings and distributed shares
5.1. Detailed overview of distributed shares
In the fiscal years 2023 and 2022 the following shares were distributed:

Name

Members of the Board of Directors

Ton Büchner

Dr. Stephan Bross

David Dean

Kaspar Kelterborn1

Dr. Monika Krüsi

Urs Leinhäuser

Maria Teresa Vacalli2

Total

Executive Management

Fabrice Billard

Other members of the Executive Management

Total3

Total Board of Directors and Executive Management

1 From July 1, 2023
2 From July 2, 2022
3 Shares have not been allocated or distributed under the LTI program every year

104

Function

Shares distributed
in FY 2023

Shares distributed
in FY 2022

Chair

Member

CEO

205

767

1’561

2’328

2’533

n/a

238

Burckhardt CompressionAnnual Report 2023
Compensation Report

5.2. Detailed overview of shareholdings
As per March 31, 2024, 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

03/31/2024
Total shares

03/31/2023
Total shares

Name

Members of the Board of Directors

Ton Büchner

Dr. Stephan Bross

David Dean

Kaspar Kelterborn1

Dr. Monika Krüsi

Urs Leinhäuser

Maria Teresa Vacalli2

Total

Executive Management

Fabrice Billard

Rolf Brändli

Andreas Brautsch3

Rainer Dübi

Vanessa Valentin4

Total

Total Board of Directors and Executive Management

As a % of all outstanding share

1 From July 1, 2023
2 From July 2, 2022
3 From October 1, 2022
4 From June 1, 2022

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 2023. 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 related
parties during the fiscal year 2023.

105

Chair

Member

CEO

CFO

President Systems Division

President Services Division

CHRO

5’251

460

519

150

1’230

n/a

7’632

1’900

1’880

110

981

137

5’008

12’640

0.4

5’184

431

490

n/a

1’201

1’796

9’102

1’300

1’223

824

3’347

12’449

0.4

7. Activities at other companies
As per March 31, 2024 the activities of the members
of the Board of Directors at other companies are reported in
accordance with the Swiss Code of Obligations:

Ton Büchner

Stock exchange-listed companies:
• Member of the Board of Directors, Novartis AG, Switzerland
• Chair of the Board of Directors, Swiss Prime Site AG, Switzerland

Unlisted companies:
• Member of the Board of Directors, Tonality Holding AG, Switzerland

and of its subsidiaries:
– Managing Director, Bandinnera GmbH, Switzerland
– Managing Director, Great Apes Aviation GmbH, Switzerland

Dr. Stephan Bross

Stock exchange-listed companies:
• Managing Director, KSB Management SE, Germany and of its subsidiaries:
– Member of the Board of Directors, KSB Ltd., India (a fully consolidated

subsidiary of KSB SE & Co. KGaA)

Burckhardt CompressionAnnual Report 2023Compensation Report

David Dean

Stock exchange-listed companies:
• Member of the Board of Directors, Bossard Holding AG, Switzerland
• Member of the Board of Directors, Komax Holding AG, Switzerland
• Member of the Board of Directors, Metall Zug AG, Switzerland,

including formal internal mandate(s) within the group

Unlisted companies:
• Member of the Board of Directors, BRUGG Group AG, Switzerland,

including formal internal mandate(s) within the group

Kaspar Kelterborn

Stock exchange-listed companies:
• Member of the Board of Directors, CPH Chemie + Papier Holding AG,

Switzerland

Unlisted companies:
• Member of the Board of Directors, Ruag International Holding AG

(Beyond Gravity), Switzerland

• Member of the Board of Directors, Wipf Holding AG, Switzerland
• Member of the Board of Directors, Karl Bubenhofer AG, Switzerland
• Member of the Board of Directors, Kelterborn-Advisory AG, Switzerland

Dr. Monika Krüsi

Stock exchange-listed companies:
• Member of the Board of Directors, Accelleron Industries AG, Switzerland
• Chair of Board of Directors, Repower AG, Switzerland

Unlisted companies:
• Member of the Board of Directors, Energie 360° AG, Switzerland
• Member of the Board of Trustees Ernst Göhner Stiftung, Switzerland,

including formal internal mandate(s) within the trust

Maria Teresa Vacalli

Stock exchange-listed companies:
• Member of the Board of Directors, Kardex Holding AG, Switzerland

Unlisted companies:
• Member of the Board of Directors, Die Schweizerische Post AG,

Switzerland and of its subsidiaries:
– Member of the Board of Directors, PostFinance AG, Switzerland

• Member of the Advisory Board, Kontivia AG, Switzerland
• Managing Director, MTK Consult GmbH, Switzerland

As per March 31, 2024 the activities of the members of the
Executive Management at other companies are reported in
accordance with the Swiss Code of Obligations:

Fabrice Billard

No activities at other companies

Rolf Brändli

No activities at other companies

Andreas Brautsch

No activities at other companies

Rainer Dübi

No activities at other companies

Vanessa Valentin

No activities at other companies

8.
8.1.

Motions for the Annual General Meeting
Approval of the maximum aggregate amount
of variable compensation for the Executive Management
for fiscal year 2023

The Board of Directors proposes that an aggregate amount of CHF
1’613’000 (gross, including social security contributions and other
benefits) be approved as variable compensation for the five members
of the Executive Management for the fiscal year 2023.

8.2.

Consultative vote on the Compensation Report
for fiscal year 2023

The Board of Directors proposes that shareholders approve the Com-
pensation Report for the fiscal year 2023 in a consultative vote.

8.3

Approval of the maximum aggregate amount
of fixed compensation for the members of the Board
of Directors for fiscal year 2025

The Board of Directors proposes that a maximum aggregate amount
of CHF 890’000 (gross, including social security contributions and
other benefits) be approved as fixed compensation for the six mem-
bers of the Board of Directors for the fiscal year 2025. This is the same
amount as approved by the AGM in 2023 for the fiscal year 2024.

8.4. Approval of the maximum aggregate amount

of fixed compensation for members of the Executive
Management for fiscal year 2025

The Board of Directors proposes that a maximum aggregate amount
of CHF 2’400’000 (gross, including social security contributions and
other benefits) be approved as fixed compensation for the five mem-
bers of the Executive Management for the fiscal year 2025. This is the
same amount as approved by the AGM in 2023 for the fiscal year 2024.

9. Evaluation of the compensation system
The Burckhardt Compression compensation system is regularly
reviewed by the Nomination and Compensation Committee and the
Board of Directors and may be modified if necessary.

A compensation benchmark based on external salary surveys
compiled by Willis Towers Watson and presented in its Global 50
Remuneration Planning Report is one element of the integrated com-
pensation system for the Executive Management.

106

Burckhardt CompressionAnnual Report 2023Compensation 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 2024. The audit was limited to the information pursuant to article 734a-734f CO in the sections 4-6 on pages 102
to 105 of the compensation report.

In our opinion, the information pursuant to article 734a-734f CO in the compensation report complies with Swiss law and
the Company’s articles of incorporation.

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. It is also responsible for designing the remuneration system and defining individual remuneration pack-
ages.

Auditor’s responsibilities for the audit of the compensation report

Our objectives are to obtain reasonable assurance about whether the information pursuant to article 734a-734f CO is
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

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.

107

Burckhardt CompressionAnnual Report 2023

Compensation Report

108

Burckhardt CompressionAnnual Report 2023 3 Burckhardt Compression Holding AG | Report of the statutory auditor to the General Meeting 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 report. As part of an audit in accordance with Swiss law and SA-CH, we exercise professional judgement 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 Oliver Illa Kevin Mueller Licensed audit expert Auditor in charge Licensed audit expert Winterthur, 3 June 2024 109

Burckhardt CompressionAnnual Report 2023Financial Report

Financial
Report

Burckhardt Compression
Holding AG’s fiscal year 2023
comprises the period from
April 1, 2023 to March 31, 2024.

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

110

2023

2022

Change
2022/2023

1’124’724

1’268’270

981’963

262’063

121’385

12.4%

90’087

1’065’624

297’909

26.63

3’243

829’701

244’467

94’963

11.4%

70’001

940’602

261’583

20.64

2’973

–11.3%

18.4%

7.2%

27.8%

28.7%

13.3%

13.9%

29.0%

9.1%

Burckhardt CompressionAnnual Report 2023

Financial Report

Sales and gross profit
Strong operational delivery of our order backlog underpinned sales growth of 18.4% to CHF 982.0 mn. The main
contributors to this growth were China, other Asian countries as well as North America. Excluding the effects of
currency translation, year-on-year sales growth was in total 26.1%. Despite currency translation effects amounting
to 7.7 pp, the Systems Division recorded a substantial increase in sales of 31.3% to CHF 642.8 mn on the back of the
high order backlog. Sales at the Services Division amounted to CHF 339.2 mn, which is slightly below the high previ-
ous year’s level (–0.2%, respectively +6.3% net of currency translation effects).

Gross profit increased by 7.2% to CHF 262.1 mn, generating a gross profit margin of 26.7%, a reduction of 2.8pp
compared to previous year, due to the increased share and less favorable product mix of the Systems Division. The
Systems Division reported a growth of 12.5% in gross profit to CHF 108.3 mn, with a resulting gross profit margin of
16.9% (previous year: 19.7%). Gross profit at the Services Division increased by 3.7% to CHF 153.7 mn, resulting in a
gross profit margin of 45.3% (previous year: 43.6%).

Operating income
Total operating profit (EBIT) rose by 27.8% to CHF 121.4 mn, yielding an EBIT margin of 12.4% (previous year: 11.4%),
Selling, marketing and general administrative expenses amounted to CHF 119.4 mn, which is 12.2% of sales and 1.9pp
below the prior year (14.1%). Research and development expenses were at 26.6 mn, which is CHF 2.7 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 +5.4 mn (prior year: CHF –8.6
mn, including some one-off provisions). Further details to the divisional results are disclosed in the segment reporting
under note 5.

Financial income and tax expenses
Financial expenses decreased by 11.0% to CHF 3.4 mn, mainly due to slightly higher interest income on bank depos-
its in some subsidiaries, while debt interest is largely derived from bond financing at a fixed annual rate of 1.5%. The
income tax expenses amounted to CHF 27.9 mn which corresponds to a tax rate of 23.7% (prior year: 23.2%).

Net income
Group net income increased by 28.7% to CHF 90.1 mn, which is 9.2% of sales (previous year: 8.4%). Earnings per share
attributable to shareholders of Burckhardt Compression increased from CHF 20.64 to CHF 26.63 (+29.0%).

Balance sheet
The balance sheet total rose by 13.3% to CHF 1’065.6 mn. Property, plant and equipment remained at about the same
level as in the prior year (+0.6%) while inventories grew by 10.7% to CHF 316.8 mn, mainly in work in progress on
ongoing customer projects as per closing date. Trade accounts receivable increased substantially by 46.6% to CHF
360.0 mn as a consequence of the high volume of invoicing towards the end of the fiscal year. The aging structure of
the accounts receivable overdue more than 60 days as a percentage of total accounts receivable improved to 14.3%
(prior year: 19.1%). The balance between advance payments from customers compared to work in progress and
advance payments to suppliers ended the fiscal year at CHF 12.3 mn, compared to the high posivie balance of CHF
60.7 mn in the previous year. The equity ratio improved to 28.0% (prior year: 27.8%), yet slightly below our ambition
level of 30%. This can be attributed to the volume induced inflation of the balance sheet with a strong increase in work
in progress for customer projects and accounts receivable as per closing date. Total net operating assets (rolling
12-month average) increased by 8.8% compared to the previous year to CHF 308.3 mn.

Cash flow
Cash and cash equivalents decreased by CHF 21.8 mn to CHF 107.2 mn in fiscal year 2023. At CHF 17.8 mn the cash
flow from operating activities was significantly lower than in the prior year (CHF 110.6 mn), mainly as a result of the
large negative swing in the balance between advance payments from customers compared to work in progress and
the steep increase in trade accounts receivable. The cash flow from investing activities ended the fiscal year at CHF
–25.3 mn (prior year: CHF –13.1 mn) and from financing activities at CHF -8.0 mn (prior year: CHF –61.2 mn), including
CHF 40.4 mn dividends paid to the shareholders of Burckhardt Compression Holding AG. The resulting net financial
position (net debt) decreased from CHF –7.1 mn to CHF –62.3 mn.

111

Burckhardt CompressionAnnual Report 2023Financial 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

2023

2022

981’963

–719’900

262’063

–70’555

– 48’889

–26’648

48’794

– 43’380

121’385

– 3’388

117’997

–27’910

90’087

89’988

26.63

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

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

112

Burckhardt CompressionAnnual Report 2023

Financial Report

Consolidated balance sheet

in CHF 1’000

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

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

113

Notes

03/31/2024

03/31/2023

12’066

173’132

17’751

5’188

208’137

316’762

359’978

65’456

8’044

107’247

857’487

1’065’624

8’500

1’354

– 6’553

294’184

297’485

424

297’909

62’865

15’940

16’732

2’173

97’710

106’639

143’242

209’845

59’084

114’268

36’927

670’005

767’715

1’065’624

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

Burckhardt CompressionAnnual Report 2023

Financial Report

Consolidated cash flow statement

in CHF 1’000

Notes

2023

2022

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

Purchase of other assets

Sale of other assets

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

90’087

27’910

3’388

15’476

3’444

– 84’120

–122’060

–2’490

37’542

42’950

9’832

18’427

987

1’855

1’897

– 4’104

–23’206

17’815

–19’120

117

–3’420

–2’893

–25’284

34’764

–1’774

– 527

–

– 40’437

–7’974

– 6’389

–21’832

129’079

107’247

–21’832

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

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

114

Burckhardt CompressionAnnual Report 2023

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
Com pression
Holding AG

Balance at 04/01/2022

8’500

525

– 2’136

1’594

– 5’034

–156’005

394’895

242’339

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 acquisition

–17’644

1’384

69’942

–17’644

1’384

550

– 43

242’889

70’001

–17’687

1’384

–13’695

–25’430

–167

–25’597

–13’695

–108

–

4’288

–

4’288

–

Balance at 03/31/2023

8’500

574 –15’772

2’978

–22’678

–156’005

443’587

261’184

399

261’583

Balance at 04/01/2023

8’500

574 –15’772

2’978

–22’678

–156’005

443’587

261’184

399

261’583

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 acquisition

– 8’060

– 5’699

89’988

90’087

– 8’060

– 5’699

–25

– 8’085

– 5’699

– 40’388

– 49

– 40’437

– 527

780

9’746

–10’526

–

987

–

– 527

–

987

–

Balance at 03/31/2024

8’500

1’354

– 6’553

–2’721

–30’738

–156’005

483’648

297’485

424

297’909

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

115

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Financial Report

Notes to the consolidated financial statements

1. General information

Burckhardt Compression is a manufacturer and service provider for a full range of reciprocating compressor technol-
ogies and services. Its customized compressor systems are used in the petrochemical, chemical, gas transport 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 Switzerland.
The address of its registered office is: Franz-Burckhardt-Strasse 5, 8404 Winterthur, Switzerland. Burckhardt Com-
pression registered shares (BCHN) are listed on the SIX Swiss Stock Exchange in Zurich (ISIN: CH0025536027).

Burckhardt Compression Holding AG’s fiscal year 2023 comprises the period from April 1, 2023 to March 31, 2024.
These consolidated financial statements were authorized for issue by the Board of Directors on June 3, 2024 and will
be submitted to shareholders for approval at the annual general meeting scheduled for July 5, 2024.

2. Accounting policies

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

2.2 Change in accounting policy
In the current financial year, Burckhardt Compression has early adopted the new Swiss GAAP FER 28 standard and
the revised Swiss GAAP FER 30 standard. The application was made retrospectively in accordance with the relevant
transitional provisions and the reporting framework, as if the new principles had always been applied. The adoption
of the new Swiss GAAP FER 28 standard for government grants has no material impact on the consolidated financial
statements, as the accounting policies already comply. The implementation of the revised Swiss GAAP FER 30 stan-
dard also has no material impact on the consolidated financial statements, resulting from the clarification of the
standard regarding future transactions, while acquisitions that took place before April 1, 2023 do not need to be
reassessed. Under the revised standard, Burckhardt Compression maintains its accounting policy of offsetting good-
will within equity.

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

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Burckhardt CompressionAnnual Report 2023Financial Report

2.4 Principles of consolidation
The consolidated financial statements include all entities where Burckhardt Compression Holding AG has the power
to control the financial and operating policy, usually as a result of directly or indirectly owning more than 50% of the
voting rights. All of the assets and liabilities as well as the income and expenses of these companies are fully included.
Non-controlling interests are presented separately in the balance sheet and the income statement. Intercompany
transactions, balances and unrealized gains or losses on transactions between group companies are eliminated. Group
companies are disclosed in note 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. Companies 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 previ-
ously recognized assets and liabilities of the company are initially valued at fair value. Acquisition-related costs are
expensed as incurred. The net assets acquired are compared with the purchase price, and any resulting goodwill is
directly offset against equity. In the notes to the financial statements, the effects of a theoretical capitalization and
any impairment are shown using an amortization period of five years. In the event of a possible subsequent sale, the
goodwill offset against shareholders’ equity at the time of the acquisition is recognized in the income statement against
the proceeds of the sale.

Associates are those entities in which Burckhardt Compression has significant influence, but no control, over the
financial and operating policies. Significant influence is generally presumed to exist when Burckhardt Compression
holds, directly or indirectly, between 20% and 50% of the voting rights. Associates are accounted for using the equity
method. The proportionate share of net income is shown in the consolidated income statement. As of March 31, 2024,
Burckhardt Compression does not hold any associates.

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

Foreign currency translation at company level
Foreign currency transactions are recorded at the exchange rate of the transaction date. Monetary assets and liabil-
ities 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
exchange 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 intercompany loans with equity character are directly recorded in equity.

Major foreign currency exchange rates

Average rates

Period-end rates

2023

0.96

0.89

12.35

2022

03/31/2024

03/31/2023

0.99

0.95

13.93

0.98

0.90

12.50

1.00

0.92

13.33

1 EUR

1 USD

100 CNY

117

Burckhardt CompressionAnnual Report 2023Financial Report

Impairment of assets

2.6
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

2.7
Acquired software licenses are capitalized on the basis of the costs incurred to acquire and bring to use the specific
software. The estimated useful life for software generally amounts to three to five years. Internal costs associated
with developing or maintaining software are recognized as an expense as incurred.

Other intangible assets are recorded at acquisition or production costs less accumulated amortization. The amor-

tization expense is calculated on a straight-line basis over the estimated useful life of the asset.

Goodwill resulting from acquisitions is offset against equity at the date of acquisition. The consequences of
a theoretical capitalization and amortization of goodwill (using an amortization period of five years) are disclosed in
note 12.

2.8 Property, plant and equipment
Items of property, plant and equipment are stated at cost less accumulated depreciation. They are depreciated on a
straight-line basis over their estimated useful lives. Land is stated at cost and is not depreciated, except land use
rights in China, which are depreciated over their useful lives. The estimated useful lives are as follows:
– Buildings: 20 to 50 years
– Machinery: 5 to 15 years
– Technical equipment: 5 to 10 years
– Land use rights in China: maximum 40 years
– Other non-current assets: maximum 5 years

2.9 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 arrangements
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.

2.10 Inventories
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. Inventories
are stated at weighted average costs or standard costs based on their type and use. Valuation allowances are recog-
nized 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.

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

2.12 Cash and cash equivalents
Cash and cash equivalents 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.

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Burckhardt CompressionAnnual Report 2023Financial Report

2.13 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.

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

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

2.16 Transactions with non-controlling interests
For the acquisition of non-controlling interests, goodwill or negative goodwill is calculated as the difference between
the acquisition cost and the proportional carrying amount of the non-controlling interests. For disposals of equity
interests that do not result in a loss of control, the profit/loss is calculated as the consideration received less the
proportional carrying amount of the equity interests less the proportionate share of related pro rata goodwill/negative
goodwill derecognized. The related cash flows are presented as investing activities in the cash flow statement.

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

2.18 Derivative financial instruments
Burckhardt Compression uses derivative financial instruments to mitigate currency risks. The risk management pol-
icy 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 effec-
tive 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.

2.19 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.

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

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Burckhardt CompressionAnnual Report 2023Financial Report

2.21 Income taxes
Income tax expenses include all income tax on the taxable profits of the group. Deferred income tax is recorded in
full, 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. Deferred
income tax assets result from tax loss carryforwards, tax credits as well as temporary valuation differences of assets
and liabilities. They are recognized to the extent that realization through future taxable profits is probable.

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

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

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

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

2.25 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 stakeholders.
For the definition of alternative performance measures please visit https://www.burckhardtcompression.com/inves-
tors/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 estab-
lished 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.

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Liquidity risks
Each Burckhardt Compression group company is responsible for managing its liquidity so that day-to-day business
can be handled smoothly, while the group treasury is responsible for maintaining the group’s overall liquidity. Some
of the group subsidiaries may secure loans from local creditors within the limits approved by the group management.
The group treasury provides the local group companies with the necessary funds or invests their excess liquidity. The
group treasury maintains sufficient liquidity reserves and open credit and guarantee lines to fulfill the financial obli-
gations 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 transactions
of the Swiss company are fairly evenly balanced when viewed over a period of 1–2 years and are therefore, to a certain
extent, naturally hedged at the net profit level over said period. These foreign-exchange flows are regularly monitored
by the group treasury; if there is evidence of a sustained shift in these flows, major sales and purchase transactions
will be hedged on a case-by-case basis. For this, the group treasury normally uses forward exchange contracts. The
other 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 qualified institutions or group treasury,
the objective being the optimization of the net profit of each group company as reported in its functional local currency.
The group management regularly monitors the changes in the most important currencies and may adjust the hedging
policy 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 customers in
the project business, which account for a large share of Burckhardt Compression’s overall business, vary from one
year to the next. In past years, Burckhardt Compression experienced no major impairments of receivables.

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

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

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

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4. Business combinations and other changes in the scope of consolidation

There were no changes in the scope of consolidation in the financial year 2023 and 2022.

A complete list of all Group companies is shown in note 32.

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 mobil-
ity 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 Compres-
sion’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 stra-
tegic projects.

in CHF 1’000

Systems Division

Services Division

Others

Total

2023

2022

2023

2022

2023

2022

2023

2022

–

981’963

829’701

–719’900

– 585’234

262’063

244’467

26.7%

–9’651

–10’372

121’385

–

12.4%

29.5%

94’963

11.4%

Sales

Cost of goods sold

Gross profit

642’812

489’663

339’151

340’038

– 534’477

– 393’358

–185’423

–191’876

108’335

96’305

153’728

148’162

Gross profit as % of sales

Operating income

Operating income as % of sales

16.9%

47’574

7.4%

19.7%

30’294

6.2%

45.3%

83’462

24.6%

43.6%

75’041

22.1%

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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

2023

2022

186’304

4’361

127’397

7’223

38’372

429’561

188’745

981’963

275’816

5’217

105’576

6’626

25’259

291’483

119’724

829’701

2023

2022

13’458

3’078

286

1’584

1’570

20’024

9’163

2’353

2’073

1’070

14’768

6. Personnel expenses

in CHF 1’000

2023

2022

Wages and salaries

Social security and pension expenses

Other personnel expenses

Total personnel expenses

–218’025

– 47’668

–23’612

–289’305

–197’875

– 41’572

–24’589

–264’036

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Burckhardt CompressionAnnual Report 2023
Financial Report

7. Research and development expenses

In the fiscal year 2023, the research and development activities were focused on the development for new solutions
for the new hydrogen market, where product requirements evolve with the development of new applications. New
compressor solutions were developed for the ship building industry for LNG carriers, where new, more efficient tech-
nologies require adapted compressor solutions. The enlargement of our product portfolio for the petrochemical
market will allow us to support our customers in the development of larger and therefore more efficient plants.

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

2023

35’896

12’898

48’794

– 38’006

– 5’374

– 43’380

2022

17’224

13’021

30’245

–21’469

–17’364

– 38’833

5’414

– 8’588

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

Other operating expenses include real estate expenses amounting to CHF 4.3 mn (prior year: CHF 3.6 mn).

9. Financial income and expenses

in CHF 1’000

Interest expenses

Interest income

Other financial income (+) and expenses (–)

Total financial income and expenses

2023

– 4’168

1’884

–1’104

– 3’388

2022

– 3’402

1’125

–1’528

– 3’805

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

in CHF 1’000

Earnings before taxes

Weighted average tax rate in %

Expected income tax expenses at weighted average tax rate

Effect of non-recognition of tax loss carryforwards

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

2023

2022

–25’305

–2’605

–27’910

–21’003

–154

–21’157

2023

2022

117’997

22.3%

–26’261

–300

–

707

–2’143

–27’910

23.7%

91’158

21.8%

–19’827

– 997

–109

–

659

– 883

–21’157

23.2%

The effective tax rate of Burckhardt Compression Group of 23.7% (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.

2023

2022

8’653

–

25’005

–23’206

– 607

9’845

2’931

12’776

6’026

–

20’894

–18’804

537

8’653

2’960

11’613

Current income taxes

in CHF 1’000

Net current income tax liabilities

Balance as per 04/01/2023 / 04/01/2022

Changes in the consolidation scope

Recognized in the income statement

Income taxes paid

Translation differences

Balance as per 03/31/2024 / 03/31/2023

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 04/01/2023 / 04/01/2022

Changes in the consolidation scope

Recognized in the income statement

Recognized in equity

Translation differences

Balance as per 03/31/2024 / 03/31/2023

thereof deferred tax assets

thereof deferred tax liabilities

Tax loss carryforwards

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 carryforwards

Effect of non-recognized tax loss carryforwards

Effective deferred tax assets from tax loss carryforwards

11. Earnings per share

2023

2022

– 3’669

–

2’605

–1’518

771

–1’811

17’751

15’940

– 4’723

–

154

710

190

– 3’669

17’915

14’246

03/31/2024

03/31/2023

1’414

53’552

54’966

12’549

– 8’190

4’359

–

49’725

11’445

– 7’179

4’266

in CHF 1’000

2023

2022

Net income attributable to the shareholders
of Burckhardt Compression Holding AG

Average number of outstanding shares

Earnings per share (CHF)

89’988

3’379’286

26.63

69’942

3’388’306

20.64

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

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12. Intangible assets

Acquisition costs

in CHF 1’000

Software

Other
intangible
assets

Intangible
assets
under
con-
struction

2023
Total

Software

Other
intangible
assets

2022
Total

Intangible
assets
under
con-
struction

Balance as per 04/01/2023 / 04/01/2022

Changes in the consolidation scope

Additions

Disposals

Reclassifications

Currency translation differences

34’424

–

720

–13

3’945

–170

739

–

1’106

1’990

3’816

– 5

–

–18

–

–3’945

–18

–

–20

–208

Balance as per 03/31/2024 / 03/31/2023

38’906

1’822

2’476

43’204

34’424

–

1’124

–1’580

452

–293

–

–39

– 53

739

–

3’292

– 44

– 4’435

– 36

–

4’480

–1’663

– 3’903

–382

4’451

39’614

4’451

39’614

34’721

687

5’674

41’082

Accumulated amortization

in CHF 1’000

Software

Other
intangible
assets

Intangible
assets
under
con-
struction

2023
Total

Software

Other
intangible
assets

2022
Total

Intangible
assets
under
con-
struction

Balance as per 04/01/2023 / 04/01/2022

–27’273

– 597

Changes in the consolidation scope

Additions

Disposals

Reclassifications

Currency translation differences

–

–3’276

–168

–

136

–

Balance as per 03/31/2024 / 03/31/2023

– 30’400

– 738

–

–27’870

–27’009

– 613

–

– 3’444

– 3’726

–

158

1’578

1’651

233

–

– 62

–

– 31’138

– 27’273

– 597

–

–27’622

–

– 3’788

1’613

1’651

276

– 27’870

Net book value

in CHF 1’000

Software

Other
intangible
assets

Intangible
assets
under
con-
struction

2023
Total

Software

Other
intangible
assets

2022
Total

Intangible
assets
under
con-
struction

As per 04/01/2023 / 04/01/2022

7’151

142

4’451

11’744

As per 03/31/2024 / 03/31/2023

8’506

1’084

2’476

12’066

7’712

7’151

142

5’674

4’451

13’460

11’744

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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 acquisitions
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

2023

2022

Acquisition costs

Balance as per 04/01/2023 / 04/01/2022

Additions from acquisitions

Balance as per 03/31/2024 / 03/31/2023

156’005

–

156’005

–

156’005

in CHF 1’000

2023

2022

Accumulated amortization

Balance as per 04/01/2023 / 04/01/2022

Amortization expense

Balance as per 03/31/2024 / 03/31/2023

in CHF 1’000

Net book value

–132’866

–10’435

–143’301

–122’404

–10’462

–132’866

2023

2022

Theoretical net book value as per 04/01/2023 / 04/01/2022

Theoretical net book value as per 03/31/2024 / 03/31/2023

23’139

12’704

33’601

23’139

in CHF 1’000

03/31/2024

03/31/2023

Theoretical impact on equity

Equity as per balance sheet

Theoretical capitalization of goodwill

Theoretical equity including net book value of goodwill

297’909

12’704

310’613

261’583

23’139

284’722

in CHF 1’000

2023

2022

Theoretical impact on net income

Net income as per income statement

Amortization of goodwill

Theoretical net income after goodwill amortization

90’087

–10’435

79’652

70’001

–10’462

59’539

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13. Property, plant and equipment

Acquisition costs

in CHF 1’000

Land
and
buildings

Machinery
and
equipment

Other
business
assets

Assets
under
construc-
tion

2023
Total

Land
and
buildings

Machinery
and
equipment

Other
business
assets

Assets
under
construc-
tion

2022
Total

Balance as per 04/01/2023 /
04/01/2022

159’420

149’901

33’332

5’308 347’961

163’959 143’746

34’754

7’882

350’341

Changes in the consolidation scope

–

Additions

Disposals

914

8’204

1’306

9’600

20’024

854

6’375

2’250

5’289

14’768

– 52

–2’418

– 589

–

–3’059

–3’808

–1’042

–3’074

–224

– 8’148

Reclassifications

1’740

2’397

1’057

– 5’194

–

1’255

4’525

733

–7’455

–942

Currency translation differences

–1’855

–2’346

–963

–180

– 5’344

–2’840

–3’703

–1’331

–184

– 8’058

Balance as per 03/31/2024 /
03/31/2023

Accumulated depreciation

in CHF 1’000

160’167 155’738

34’143

9’534 359’582

159’420 149’901

33’332

5’308

347’961

Land
and
buildings

Machinery
and
equipment

Other
business
assets

Assets
under
construc-
tion

2023
Total

Land
and
buildings

Machinery
and
equipment

Other
business
assets

Assets
under
construc-
tion

2022
Total

Balance as per 04/01/2023 /
04/01/2022

– 42’581

–108’041

–25’300

– –175’922

–39’678 –102’139

–25’288

Changes in the consolidation scope

–

–3’674

–10’294

–1’508

1’989

–

–737

521

737

552

–

–15’476

– 4’940

–9’309

–3’732

2’558

–

2’390

1’231

–

972

251

806

2’184

2’976

–251

995

Additions

Disposals

Reclassifications

Currency translation differences

512

1’326

–

–167’105

–

–17’981

5’179

–

3’985

Balance as per 03/31/2024 /
03/31/2023

Net book value

in CHF 1’000

– 45’695

–115’757

–24’998

– –186’450

– 42’581 –108’041 –25’300

– –175’922

Land
and
buildings

Machinery
and
equipment

Other
business
assets

Assets
under
construc-
tion

2023
Total

Land
and
buildings

Machinery
and
equipment

Other
business
assets

Assets
under
construc-
tion

2022
Total

As per 04/01/2023 / 04/01/2022

116’839

41’860

8’032

5’308 172’039

124’281

41’607

9’466

7’882

183’236

As per 03/31/2024 / 03/31/2023

114’472

39’981

9’145

9’534 173’132

116’839

41’860

8’032

5’308

172’039

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14. Other assets

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

15. Inventories & Customers Advance Payments

in CHF 1’000

03/31/2024

03/31/2023

Raw materials, supplies and consumables

Work in progress

Finished products and trade merchandise

Advance payments to suppliers

Valuation allowance

Total inventories

59’095

140’724

82’733

56’848

–22’638

316’762

69’990

120’549

76’228

41’616

–22’137

286’246

The capital invested in work in progress and advance payments to suppliers is financed by advance payments from
customers, leaving a balance as of March 31, 2024 of CHF +12.3 mn (prior year: CHF +60.7 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

03/31/2024

03/31/2023

Customers’
advance
payments

Inventories

Gross amounts

458’252

351’335

381’332

317’935

Offsetting of customers’ advance payments

141’490

95’086

Net amounts reported in the consolidated balance sheet

316’762

209’845

286’246

222’849

16. Trade receivables

in CHF 1’000

Trade receivables, gross

Allowance for bad debts

Trade receivables, net

03/31/2024

03/31/2023

377’892

–17’914

359’978

269’997

–24’452

245’545

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in CHF 1’000

2023

2022

Allowance for bad debts

Balance as per 04/01/2023 / 04/01/2022

Changes in the consolidation scope

Additions

Release

Utilization

Currency translation adjustments

Balance as per 03/31/2024 / 03/31/2023

–24’452

–

–3’388

5’904

3’146

876

–17’914

–15’290

–

–11’125

738

1’221

–24’452

The allowance for bad debts at the end of the 2023 and 2022 fiscal years was entirely related to accounts receivables
which were more than 90 days overdue as per closing date.

in CHF 1’000

03/31/2024

03/31/2023

Maturity profile of trade receivables

Not due

Overdue 1–30 days

Overdue 31– 60 days

Overdue 61–90 days

Overdue more than 90 days

223’750

55’081

29’827

9’374

62.2%

15.3%

8.2%

2.6%

41’946

11.7%

Balance as per 03/31/2024 / 03/31/2023

359’978

100.0%

245’545

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

166’386

67.8

20’374

11’949

2’470

44’366

8.3

4.8

1.0

18.1

100.0

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

03/31/2024

03/31/2023

698

8’226

13’691

2’931

39’910

65’456

11’790

7’568

5’207

2’960

40’997

68’522

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

03/31/2024

03/31/2023

Number of shares issued

3’400’000

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

At the upcoming annual general meeting of shareholders on July 5, 2024, the Board of Directors of Burckhardt

Compression Holding AG will propose a dividend for the 2023 fiscal year of CHF 15.50 (prior year: CHF 12.00).

As of March 31, 2024, non-distributable reserves amounted to CHF 1.7 mn (prior year: CHF 1.7 mn).

03/31/2024

03/31/2023

Number of treasury shares

13’805

33’413

During the fiscal year 2023, 925 treasury shares (prior year: 24’327 treasury shares) were purchased at an average
share price of CHF 569.02 (prior year: CHF 563.00) in the amount of CHF 0.5 mn (prior year: CHF 13.7 mn).

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

Group respectively for the fixed compensation of the Board of Directors (20% of which paid in shares).

19. Financial liabilities

in CHF 1’000

03/31/2024

03/31/2023

Non-current financial liabilities

Current financial liabilities

Total financial liabilities

62’865

106’639

169’504

132’000

4’214

136’214

The average effective interest rate amounted to 1.9% in fiscal year 2023 (prior year: 1.7%).

Currencies of financial liabilities

in CHF 1’000

03/31/2024

03/31/2023

Financial liabilities in CHF

Financial liabilities in USD

Financial liabilities in other currencies

Total financial liabilities

162’413

4’015

3’076

169’504

132’029

1’261

2’924

136’214

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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

03/31/2024

03/31/2023

458

2’936

621

–

58’850

62’865

100’692

290

–

31’018

132’000

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

2023
Total

Employee-
related

Warranties,
penalties,
unprofitable
contracts

Other

2022
Total

Balance as per 04/01/2023 / 04/01/2022

9’692

32’318

2’715

44’725

9’111

31’070

1’211

41’392

Changes in the consolidation scope

–

Additions

Release

Utilization

Currency translation differences

5’351

20’456

1’793

27’600

–226

– 599

–1’971

–2’796

–1’877

–12’299

–164

– 632

–796

–102

–14’972

– 898

–

2’543

– 533

–1’060

–369

–

12’684

–2’294

– 8’053

–1’089

–

2’798

– 44

–

18’025

–2’871

–1’117

–10’230

–133

–1’591

Balance as per 03/31/2024 / 03/31/2023

12’776

39’244

1’639

53’659

9’692

32’318

2’715

44’725

thereof non-current

thereof current

5’638

7’138

10’756

28’488

338

16’732

1’301

36’927

4’545

5’147

7’255

25’063

101

2’614

11’901

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.

133

Burckhardt CompressionAnnual Report 2023Financial Report

22. Other current liabilities

in CHF 1’000

Notes payable

VAT payables

Derivative financial instruments

Current tax liabilities

Other current liabilities

Total other current liabilities

03/31/2024

03/31/2023

13’232

8’248

16’283

12’776

8’545

59’084

10’887

3’923

1’648

11’613

12’434

40’505

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

Contract-related liabilities

Vacation and overtime

Salary and bonus payments

Miscellaneous

Total accrued liabilities and deferred income

03/31/2024

03/31/2023

70’327

5’231

29’267

9’443

114’268

73’835

5’040

22’133

7’355

108’363

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

03/31/2024

03/31/2023

358’597

13’691

16’283

263’599

5’207

1’648

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Burckhardt CompressionAnnual Report 2023Financial Report

25. Contingent liabilities

Guarantees
Burckhardt Compression guarantees essentially for securing customer advance payments and for eventual warranty
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, 2024, Burckhardt Compression had issued guarantees in amount of CHF 265.9 mn (prior year:

CHF 346.6 mn).

Other contingent liabilities
As per March 31, 2024, 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

03/31/2024

03/31/2023

4’794

12’562

4’195

21’551

3’675

10’097

2’331

16’103

Purchase commitments
Purchase commitments for capital expenditure as per March 31, 2024 amounted to CHF 5.0 mn (prior year:
CHF 3.5 mn).

27. Pledged assets

As per March 31, 2024, Burckhardt Compression had pledged assets with a carrying amount of CHF 75.8 mn (prior
year: CHF 95.8 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 2023, there is a new long-term incentive plan for the members of the Executive Board and certain other employ-
ees 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 2023, participants of the long-term incentive plan (2020-2022) were granted 20’533 shares at a fair value of

CHF 513.00.

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).

Personnel expenses in 2023 for share-based payments amounted to CHF 1.0 mn (prior year: CHF 4.3 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 2023 and 2022 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 Compression has
no payment obligations beyond making these defined contributions.

Burckhardt Compression’s pension plans in Switzerland consist of two independent pension funds: “Sulzer
Vorsorgeeinrichtung” (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 allocation and risk management. The pension plans contain a cash balance benefit formula. Under Swiss law,
the pension funds guarantee the vested benefit amount as confirmed annually to members. Interest may be added to
member balances at the discretion of the board of trustees. At retirement date, members have the right to take their
retirement benefit as a lump sum, an annuity or part as a lump sum with the balance converted to an annuity. The
pension funds may adapt the contribution and benefits at any time. In case of 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, 2023 amounted to 120.9% (SVE; prior year: 118.4%) and 118.0% (JJS;
prior year: 115.2%). The technical interest rate used by both collective plans amounted to 1.5% (prior year: 1.5%).

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Burckhardt CompressionAnnual Report 2023Financial Report

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

03/31/2024

03/31/2023

2023

2022

Pension plans with surplus

Unfunded pension plans

Total

–

–1’336

–

–1’370

–

–10’819

–

–10’819

–10’812

–9’386

351

–9’035

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 consolidated financial
statements.

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Burckhardt CompressionAnnual Report 2023Financial Report

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
l
e
v
e
d

g
n
i
r
e
e
n
g
n
e

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

g
n
i
t
c
a
r
t
n
o
C

s
e
l
a
S

e
c
i
v
r
e
S

Burckhardt Compression AG1

Winterthur, Switzerland

CHF 2’000’000

100%

•

Burckhardt Compression Immobilien AG1

Winterthur, Switzerland

CHF 5’000’000

100%

Burckhardt Compression (Deutschland) GmbH

Neuss, Germany

EUR 30’000

100%

Burckhardt Compression (Italia) S.r.l.

Milan, Italy

EUR 400’000

100%

Burckhardt Compression (France) S.A.S.

Cergy Saint-Christophe,
France

EUR 300’000

100%

Burckhardt Compression (España) S.A.

Madrid, Spain

EUR 550’000

100%

Burckhardt Compression (UK) Ltd.

Bicester, United Kingdom

GBP 250’000

100%

Burckhardt Compression (US) Inc.

Houston, USA

USD 18’250’000

100%

•

Burckhardt Compression (Canada) Inc.

Mississauga, Canada

CAD 200’000

100%

Burckhardt Compression (Japan) Ltd.

Tokyo, Japan

JPY 50’000’000

100%

Burckhardt Compression (Shanghai) Co. Ltd.

Shanghai, China

CNY 85’564’000

100%

Burckhardt Compression (India) Private Ltd.

Pune, India

INR 331’140’000

100%

•

Burckhardt Compression (Brasil) Ltda.

São Paolo, Brazil

BRL 5’818’000

100%

Burckhardt Compression (Middle East) FZE

Dubai, United Arab
Emirates

AED 2’000’000

100%

Burckhardt Compression Korea Ltd.

Seoul, South Korea

KRW 250’000’000

100%

Burckhardt Kompresör San. ve Tic. Ltd.

Istanbul, Turkey

TRY 800’000

100%

Burckhardt Compression Singapore Pte Ltd.

Singapore, Singapore

SGD 700’000

100%

Burckhardt Compression South Africa (Pty) Ltd.

Sunnyrock, South Africa

ZAR 3’000’000

100%

Burckhardt Compression Korea Busan Ltd.

Busan, South Korea

KRW 7’000’000’000

100%

Burckhardt Compression (Saudi Arabia) LLC

Dammam, Saudi Arabia

SAR 1’000’000

100%

Burckhardt Compression (Netherlands) BV

Rotterdam, Netherlands

EUR 18’000

100%

•

138

Burckhardt CompressionAnnual Report 2023

Financial Report

Company

Registered
office

Registered
capital

Interest
in
capital

&
h
c
r
a
e
s
e
R

t
n
e
m
p
o
l
e
v
e
d

g
n
i
r
e
e
n
g
n
e

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

g
n
i
t
c
a
r
t
n
o
C

s
e
l
a
S

e
c
i
v
r
e
S

Burckhardt Compression (Sweden) AB

Landvetter, Sweden

SEK 100’000

100%

Burckhardt Compression (Thailand) Co. Ltd.

Rayong, Thailand

THB 5’000’000

100%

Shenyang Yuanda Compressor Co. Ltd.1

Shenyang, China

CNY 100’000’000

100%

Liaoning Yuanyu Industrial Machinery Co. Ltd.

Kaiyuan, China

CNY 39’000’000

100%

Shenyang Yuanda Compressor
Automatic Control System Co. Ltd.

Shenyang, China

CNY 5’000’000

60%

•

Compressor Tech Holding AG1

Zug, Switzerland

CHF 200’000

100%

PROGNOST Systems GmbH

Rheine, Germany

EUR 200’000

100%

•

PROGNOST Systems Inc.

Houston, USA

USD 240’000

100%

PROGNOST Machinery Diagnostics
Equipment and Services LLC

Société d’Application du Métal Rouge SAS

Abu Dhabi,
United Arab Emirates

Pont-Sainte-Marie Cedex,
France

AED 300’000

100%

EUR 501’000

100%

•

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

139

Burckhardt CompressionAnnual Report 2023

Financial Report

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 2024, the Consolidated bal-
ance sheet as at 31 March 2024, the Consolidated cash flow statement and 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 112 - 139) give a true and fair view of the consolidated fi-
nancial position of the Group as at 31 March 2024 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 5'500'000

We concluded full scope audit work and audits of selected account balances at
five reporting units in three countries. Our audit scope addressed over 61% 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.

140

Burckhardt CompressionAnnual Report 2023

Financial Report

141

Burckhardt CompressionAnnual Report 2023 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 5'500'000 Benchmark applied Profit before tax Rationale for the materiality bench-mark applied We chose profit before tax as the benchmark because, in our view, it is the benchmark against which the performance of the Group is most commonly measured, and it is a generally accepted benchmark. We agreed with the Audit Committee that we would report to them misstatements above CHF 550'000 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, communicating the risks identified at Group level,determining the materiality thresholds for the audits performed by component auditors and conducting meetings with the component auditors, discussion of audit approach and audit evidence received and analysing their reporting. 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. 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 mar-gin and changes in the margin compared to the plan-ning phase, and focused our testing on the following: Financial Report

142

Burckhardt CompressionAnnual Report 2023 4 Burckhardt Compression Holding AG | Report of the statutory auditor to the General Meeting Please refer to page 118 ”Accounting policies Inventories” and page 130 “Inventories & Customers Advance Pay-ments” in the Notes to the Consolidated financial state-ments”. - We assessed the contract related calculations to de-termine whether the contractual terms had been rec-orded appropriately. - We discussed with the project controllers and project managers the progress of the projects based on the latest project reports, the costs still to be incurred until their completion and changes in the estimated margin. - We obtained written information from the legal repre-sentatives of the Group. We inspected this written in-formation with regard to indications of potential quality deficiencies or penalties and assessed whether these matters were accounted for appropriately 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 parame-ters with the estimates made in the planning phase in order to assess, with hindsight, the accuracy of the es-timates made by Management. The results of our audit support the accounting of work in progress of the systems division in the consolidated finan-cial statements. 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 remunera-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 consolidated financial statements that give a true and fair view in accordance with Swiss GAAP FER and the provisions of Swiss law, and for such internal control as the Board of Directors determines is necessary to enable the preparation of consolidated financial statements that are free from mate-rial misstatement, whether due to fraud or error. In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so. Financial Report

143

Burckhardt CompressionAnnual Report 2023 5 Burckhardt Compression Holding AG | Report of the statutory auditor to the General Meeting 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 judgement 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 regarding all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards 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

144

Burckhardt CompressionAnnual Report 2023 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 para. 1 item 3 CO and PS-CH 890, we confirm the existence of an internal control sys-tem that has been designed, pursuant to the instructions of the Board of Directors, for the preparation of the consoli-dated financial statements. We recommend that the consolidated financial statements submitted to you be approved. PricewaterhouseCoopers AG Oliver Illa Kevin Mueller Licensed audit expert Auditor in charge Licensed audit expert Winterthur, 3 June 2024 Financial Report

Financial Statements of Burckhardt
Compression Holding AG, Winterthur

Balance sheet

in CHF 1’000

Notes

03/31/2024

03/31/2023

Current assets

Cash and cash equivalents

Other current receivables

due from third parties

due from group companies

Total current assets

Non-current assets

Financial assets

Non-current loans to group companies

Investments in subsidiaries

Total non-current assets

Total assets

Current liabilities

Other current liabilities

Accrued liabilities and deferred income

Short-term loans from group companies

Bonds

Total current liabilities

Non-current liabilities

Non-current financial liabilities from group companies

Bonds

Total non-current liabilites

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

145

394

1’991

1’839

152

2’385

28’607

253’681

282’288

284’673

938

–

100’000

100’946

20’125

–

20’125

8’500

1’700

153’509

6’446

– 6’553

163’602

284’673

704

1’628

–

2’332

38’945

253’681

292’626

294’958

976

5’648

–

6’634

–

100’000

100'000

8’500

1’700

172’319

21’577

–15’772

188’324

294’958

102

103

104

Burckhardt CompressionAnnual Report 2023
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

Income tax expenses

Total expenses

Net income

2023

2022

9’605

458

192

794

11’049

–1’722

– 367

–1’739

–775

– 4’603

6’446

45’127

476

192

45’867

–1’616

– 68

–21’600

–1’006

–24’290

21’577

Notes to the financial statements of
Burckhardt Compression Holding AG

101 Accounting policies
The financial statements as per March 31, 2024 are in compliance with the requirements of Swiss corporate law.

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

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

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

The treasury shares are stated at acquisition cost and deducted from equity. No subsequent valuation is made. If

the treasury shares are disposed of, the resulting gain or loss is recognized in the profit and loss statement.

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

The derivative financial instruments are off-balance sheet items.
All values in the annual financial statements are reported in thousand Swiss Francs unless otherwise indicated.
Burckhardt Compression Holding AG’s fiscal year 2023 comprises the period from April 1, 2023 to March 31, 2024.

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102 Subsidiaries
The equity interests held directly and indirectly by Burckhardt Compression Holding AG are shown in note 33 “Group
Companies” of the consolidated financial statements.

103 Share capital and shareholders

The share capital amounts to CHF 8’500’000 and is composed of 3’400’000 shares, each with a nominal value of

CHF 2.50. All shares are registered shares and are paid in full.

No person will be registered in the Share Register as shareholder with voting rights with respect to more than five
percent of the issued share capital. This entry restriction is also applicable to persons whose shares are totally or
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 restric-
tion, 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 concluded an agree-
ment 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 Regis-
ter 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, 2024, there is no such declaration between a nominee-shareholder and the board of directors.
Shareholder groups which had existed before June 23, 2006 are excluded from the voting rights restrictions.
According to information available to the company from the disclosure notifications of the SIX Swiss Exchange
Ltd., the following shareholders reported shareholdings of at least 3% of the share capital and voting rights as of
March 31, 2024 (according to the statutory bylaws the voting rights of NN Group N.V, The Goldman Sachs Group Inc,
UBS Fund Management (Switzerland) AG and Credit Suisse Funds AG are limited to 5% of the total number of the
registered BCHN shares recorded in the commercial register):

Shareholders

03/31/2024

03/31/2023

Name

Country

% of shares

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

NN Group N.V.1

The Goldman Sachs Group, Inc1

UBS Fund Management (Switzerland) AG

Credit Suisse Funds AG

BlackRock, Inc.

Swisscanto Fondsleitung AG

9.97

9.86

6.45

5.06

3.24

3.07

3.01

12.40

< 3.0

7.37

5.02

< 3.0

3.07

< 3.0

1 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 2023Financial Report

104 Treasury shares

in CHF 1’000

Number at the beginning of the period

Purchases

Sales

Number at the end of the period

2023

33’413

925

–20’533

13’805

2022

9’343

24’327

–257

33’413

In the reporting period, 205 shares (2022: 238) were allocated to the board of directors at a share price of CHF 548.63
(2022: CHF 431.19) as part of their fees for their term of office 2022/2023 (term of office 2021/2022). Further infor-
mation is disclosed in the remuneration report on page 68.

105 Bonds

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.

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Burckhardt CompressionAnnual Report 2023Financial Report

106 Further disclosures pursuant to Article 959c par. 2

of the Swiss Code of Obligations:

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

Liabilities to pension funds

in CHF 1’000

03/31/2024

03/31/2023

Total liabilities to pension funds

Net release of undisclosed reserves

in CHF 1’000

03/31/2024

03/31/2023

Net release of undisclosed reserves

Derivative financial instruments

in CHF 1’000

03/31/2024

03/31/2023

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

Guarantees

in CHF 1’000

Guarantees

03/31/2024

03/31/2023

44’343

28’399

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 2023

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 compensation
report on pages 64 to 69.

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

2023

2022

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

193’896

– 40’388

6’446

159’954

197’749

–25’430

21’577

193’896

The Board of Directors proposes the following appropriation

Gross dividend

–52'700

– 40’800

Retained earnings carried forward

107'254

153’097

The Board of Directors will propose payment of a gross dividend of CHF 15.50 per registered share at the Annual
General Meeting of Shareholders on July 5, 2024.

Gross dividend

Less 35% withholding tax

Net dividend

2023

15.5

–5.4

10.1

2022

12.0

– 4.2

7.8

2021

7.5

–2.6

4.9

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Burckhardt CompressionAnnual Report 2023Financial 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 2024, 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 145 - 150) 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 2'800'000

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:

Valuation 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.

151

Burckhardt CompressionAnnual Report 2023

Financial Report

152

Burckhardt CompressionAnnual Report 2023 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 2'800'000 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. 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. Valuation 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 capitalized 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 147 “Subsidiaries” in the notes to the financial statements. For auditing investments in subsidiaries, we performed the following main procedures: - We compared the book value of investments in the fi-nancial year with their pro-rata share of the respective company's equity or the company's valuation, based on an acceptable valuation method. - We assessed 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 2024. 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 remunera-tion report and our auditor’s reports thereon. Financial Report

153

Burckhardt CompressionAnnual Report 2023 4 Burckhardt Compression Holding AG | Report of the statutory auditor to the General Meeting 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 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 judgement 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. 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 regarding all relationships and other matters Financial Report

154

Burckhardt CompressionAnnual Report 2023 5 Burckhardt Compression Holding AG | Report of the statutory auditor to the General Meeting that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards 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 para. 1 item 3 CO and PS-CH 890, we confirm the existence of an internal control sys-tem that has been designed, pursuant to the instructions of the Board of Directors, for the preparation of the financial statements. 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 Oliver Illa Kevin Mueller Licensed audit expert Auditor in charge Licensed audit expert Winterthur, 3 June 2024 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.

BOG

EVA

LDPE

LNG

LPG

ME-GI

MRP

OBC

OEM

X-DF

Boil-off-gas: liquid gas that heats up and turns back into gas

Ethylene-vinyl acetate: plastic with high heat and good aging resistanc

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

Liquefied Natural Gas

Liquefied Petroleum Gas

Dual propulsion system for ships from MAN

Mid-Range Plan

Other Brand Compressors

Original equipment manufacturer

Dual propulsion system for ships from Wing GD

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 English only and is available on the
internet under report.burckhardtcompression.com/en

Imprint

Publisher
Burckhardt Compression Holding AG, Winterthur, Switzerland

Concept/Design/Publication
Linkgroup AG, Zurich, Switzerland

Photography
Jakob & Bertschi, Zurich, Switzerland
Scanderberg Sauer, Zurich
iStock

155

Burckhardt CompressionAnnual Report 2023Burckhardt Compression AG
CH-8404 Winterthur
Switzerland
Tel.: +41 (0)52 261 55 00
Fax: +41 (0)52 261 00 51
24 hours emergency Tel.: +41 (0)52 261 53 53
info@burckhardtcompression.com
www.burckhardtcompression.com