Notes to the consolidated financial statements
– Financial reporting – Notes to the consolidated financial statements
1General information
Sulzer Ltd (the “companyˮ) is a company domiciled in Switzerland. The address of the company’s registered office is Neuwiesenstrasse 15 in Winterthur, Switzerland. The unaudited consolidated interim financial statements for the six months ended June 30, 2022, comprise the company and its subsidiaries (together referred to as the “groupˮ and individually as the “subsidiariesˮ) and the group’s interest in associates and joint ventures. The group specializes in pumping, agitation, mixing, separation and application technologies for fluids of all types. Sulzer was founded in 1834 in Winterthur, Switzerland, and employs around 12’900 people. The company serves clients through a network of 180 production and service sites around the world. Sulzer Ltd is listed on the SIX Swiss Exchange in Zurich, Switzerland (symbol: SUN).
The interim financial statements have been prepared in accordance with the requirements of IAS 34 “Interim financial reporting.ˮ Details of the group’s accounting policies are described in note 15.
2Significant events and transactions during the reporting period
The financial position and performance of the group was particularly affected by the following events and transactions during the reporting period:
- On April 6, 2022, Sulzer announced that it would significantly reduce its business in Russia, followed by an announcement on May 24, 2022, that it was initiating the process to sell four legal entities in Russia – AO Sulzer Pumps, Sulzer Chemtech LLC, Sulzer Turbo Services Russia LLC and Sulzer Pumps Russia LLC. This decision impacts 322 employees, along with CHF 87.1 million of revenues, representing 2.7% of total sales in 2021. An active program to find a buyer or buyers for the entities is ongoing, with discussions taking place with interested parties, as a result of which the assets and liabilities of these entities have been classified as held for sale for the period ended June 30, 2022. The Groupʼs total net impairment loss on contract assets and trade accounts receivable of CHF 36.8 million includes impairments for contract assets and receivables of CHF 37.9 million attributable to the business in Russia. Write-downs of CHF 88.9 million were recorded on other assets of the Russian business upon the classification as held for sale, and deferred tax assets of CHF 5.4 million were deemed irrecoverable. This impact was offset by a positive foreign exchange effect of CHF 21.0 million arising from movements of unhedged intercompany loans. Further details are provided in note 7, note 8 and note 9.
- On May 19, 2022, the group announced its intention to wind down its business in Poland, which consists of two entities; Sulzer Turbo Services Poland and Sulzer Pumps Wastewater Poland. The decision impacts 192 employees, along with CHF 21.5 million of revenues representing 0.6% of total sales in 2021. The group assessed that it no longer controls the two entities, which resulted in a loss from deconsolidation of CHF 6.2 million and wind down costs of CHF 1.6 million. Further details are provided in note 4 and note 8.
- Remeasurements of defined benefit plans, net of tax, recorded in other comprehensive income for the interim period amount to CHF –107.0 million. Defined benefit assets amounting to CHF 134.3 million as of December 31, 2021 reduced to zero at the end of the interim period based on a remeasurement of underlying defined benefit plans in Switzerland. The decrease is primarily driven by a change in the effect of the asset ceiling as a result of an increase in the discount rate and is reflected in other comprehensive income, net of the associated tax impact. Reference is made to note 5, Critical accounting estimates and judgements in the consolidated financial statements for the year ended December 31, 2021, documenting assumptions to be used when determining defined benefit assets/obligations.
For a detailed discussion about the group’s performance and financial position please refer to the Business review.
3Segment information
Segment information by divisions
|
|
Flow Equipment |
|
Services |
|
Chemtech |
||||||
millions of CHF |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Order intake from continuing operations 1) |
|
709.1 |
|
626.8 |
|
587.9 |
|
570.8 |
|
437.1 |
|
353.9 |
Nominal growth |
|
13.1% |
|
–15.8% |
|
3.0% |
|
–7.5% |
|
23.5% |
|
10.8% |
Currency-adjusted growth |
|
14.0% |
|
–15.3% |
|
2.7% |
|
–5.6% |
|
20.8% |
|
12.8% |
Organic growth 2) |
|
13.1% |
|
–20.2% |
|
2.4% |
|
–6.0% |
|
20.9% |
|
12.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Order backlog as of June 30 / December 31 |
|
877.3 |
|
811.5 |
|
499.1 |
|
479.5 |
|
519.7 |
|
433.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales recognized at a point in time |
|
415.0 |
|
480.7 |
|
387.0 |
|
441.5 |
|
159.9 |
|
175.6 |
Sales recognized over time |
|
216.8 |
|
183.2 |
|
155.8 |
|
84.0 |
|
182.1 |
|
130.0 |
Sales from continuing operations 3) |
|
631.9 |
|
663.9 |
|
542.8 |
|
525.5 |
|
342.0 |
|
305.6 |
Nominal growth |
|
–4.8% |
|
7.7% |
|
3.3% |
|
–0.5% |
|
11.9% |
|
6.2% |
Currency-adjusted growth |
|
–4.4% |
|
8.8% |
|
2.8% |
|
1.3% |
|
9.2% |
|
7.7% |
Organic growth 2) |
|
–5.1% |
|
4.4% |
|
2.4% |
|
0.9% |
|
9.8% |
|
7.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operational profit from continuing operations |
|
33.7 |
|
33.2 |
|
72.2 |
|
70.3 |
|
33.8 |
|
27.7 |
Operational profitability from continuing operations |
|
5.3% |
|
5.0% |
|
13.3% |
|
13.4% |
|
9.9% |
|
9.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring expenses |
|
–0.4 |
|
–0.7 |
|
–0.4 |
|
–0.7 |
|
–0.0 |
|
–0.6 |
Amortization |
|
–13.7 |
|
–18.7 |
|
–2.5 |
|
–2.3 |
|
–3.4 |
|
–3.2 |
Impairments on tangible and intangible assets |
|
–2.8 |
|
– |
|
–21.4 |
|
–0.3 |
|
–12.2 |
|
– |
Non-operational items |
|
–13.2 |
|
1.0 |
|
–67.0 |
|
–0.7 |
|
–23.4 |
|
–2.8 |
EBIT from continuing operations |
|
3.7 |
|
14.8 |
|
–19.0 |
|
66.3 |
|
–5.3 |
|
21.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
–15.6 |
|
–16.5 |
|
–14.7 |
|
–15.6 |
|
–7.1 |
|
–6.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating assets |
|
1’574.7 |
|
1’573.9 |
|
977.1 |
|
939.5 |
|
561.2 |
|
552.8 |
Unallocated assets |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
Total assets as of June 30 / December 31 |
|
1’574.7 |
|
1’573.9 |
|
977.1 |
|
939.5 |
|
561.2 |
|
552.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating liabilities |
|
733.4 |
|
745.0 |
|
426.9 |
|
403.3 |
|
423.0 |
|
404.0 |
Unallocated liabilities |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
Total liabilities as of June 30 / December 31 |
|
733.4 |
|
745.0 |
|
426.9 |
|
403.3 |
|
423.0 |
|
404.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating net assets |
|
841.3 |
|
829.0 |
|
550.2 |
|
536.2 |
|
138.2 |
|
148.7 |
Unallocated net assets |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
Total net assets as of June 30 / December 31 |
|
841.3 |
|
829.0 |
|
550.2 |
|
536.2 |
|
138.2 |
|
148.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure (incl. lease assets) |
|
–17.1 |
|
–15.1 |
|
–23.0 |
|
–33.0 |
|
–8.4 |
|
–9.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees (number of full-time equivalents) as of June 30 / December 31 |
|
5’229 |
|
5’325 |
|
4’446 |
|
4’571 |
|
3’048 |
|
3’734 |
1) Order intake from external customers.
2) Adjusted for currency and acquisition effects.
3) Sales from external customers.
Segment information by divisions
|
|
Total divisions |
|
Others 5) |
|
Total Sulzer |
||||||
millions of CHF |
|
2022 |
|
2021 4) |
|
2022 |
|
2021 4) |
|
2022 |
|
2021 4) |
Order intake from continuing operations 1) |
|
1’734.1 |
|
1’551.5 |
|
– |
|
– |
|
1’734.1 |
|
1’551.5 |
Nominal growth |
|
11.8% |
|
–7.7% |
|
– |
|
– |
|
11.8% |
|
–7.7% |
Currency-adjusted growth |
|
11.4% |
|
–6.4% |
|
– |
|
– |
|
11.4% |
|
–6.4% |
Organic growth 2) |
|
10.9% |
|
–8.7% |
|
– |
|
– |
|
10.9% |
|
–8.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Order backlog as of June 30 / December 31 |
|
1’896.2 |
|
1’724.1 |
|
– |
|
– |
|
1’896.2 |
|
1’724.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales recognized at a point in time |
|
962.0 |
|
1’097.7 |
|
– |
|
– |
|
962.0 |
|
1’097.7 |
Sales recognized over time |
|
554.7 |
|
397.3 |
|
– |
|
– |
|
554.7 |
|
397.3 |
Sales from continuing operations 3) |
|
1’516.8 |
|
1’495.0 |
|
– |
|
– |
|
1’516.8 |
|
1’495.0 |
Nominal growth |
|
1.5% |
|
4.4% |
|
– |
|
– |
|
1.5% |
|
4.4% |
Currency-adjusted growth |
|
0.9% |
|
5.8% |
|
– |
|
– |
|
0.9% |
|
5.8% |
Organic growth 2) |
|
0.6% |
|
3.8% |
|
– |
|
– |
|
0.6% |
|
3.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operational profit from continuing operations |
|
139.7 |
|
131.2 |
|
–3.9 |
|
–3.6 |
|
135.8 |
|
127.6 |
Operational profitability from continuing operations |
|
9.2% |
|
8.8% |
|
n/a |
|
n/a |
|
9.0% |
|
8.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring expenses |
|
–0.8 |
|
–1.9 |
|
–0.1 |
|
0.1 |
|
–0.9 |
|
–1.8 |
Amortization |
|
–19.6 |
|
–24.2 |
|
–0.4 |
|
–0.3 |
|
–20.0 |
|
–24.5 |
Impairments on tangible and intangible assets |
|
–36.4 |
|
–0.3 |
|
– |
|
– |
|
–36.4 |
|
–0.3 |
Non-operational items |
|
–103.6 |
|
–2.4 |
|
–0.5 |
|
–1.0 |
|
–104.1 |
|
–3.5 |
EBIT from continuing operations |
|
–20.6 |
|
102.3 |
|
–4.9 |
|
–4.9 |
|
–25.5 |
|
97.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
–37.3 |
|
–38.6 |
|
–1.6 |
|
–1.7 |
|
–38.8 |
|
–40.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating assets |
|
3’112.9 |
|
3’066.2 |
|
1.2 |
|
180.3 |
|
3’114.2 |
|
3’246.5 |
Unallocated assets |
|
– |
|
– |
|
1’645.8 |
|
1’763.9 |
|
1’645.8 |
|
1’763.9 |
Total assets as of June 30 / December 31 |
|
3’112.9 |
|
3’066.2 |
|
1’647.1 |
|
1’944.3 |
|
4’760.0 |
|
5’010.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating liabilities |
|
1’583.2 |
|
1’552.3 |
|
29.0 |
|
196.8 |
|
1’612.2 |
|
1’749.1 |
Unallocated liabilities |
|
– |
|
– |
|
2’149.0 |
|
1’982.0 |
|
2’149.0 |
|
1’982.0 |
Total liabilities as of June 30 / December 31 |
|
1’583.2 |
|
1’552.3 |
|
2’177.9 |
|
2’178.8 |
|
3’761.1 |
|
3’731.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating net assets |
|
1’529.7 |
|
1’513.9 |
|
–27.7 |
|
–16.4 |
|
1’502.0 |
|
1’497.5 |
Unallocated net assets |
|
– |
|
– |
|
–503.2 |
|
–218.1 |
|
–503.2 |
|
–218.1 |
Total net assets as of June 30 / December 31 |
|
1’529.7 |
|
1’513.9 |
|
–530.9 |
|
–234.6 |
|
998.8 |
|
1’279.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure (incl. lease assets) |
|
–48.5 |
|
–57.4 |
|
–1.8 |
|
–0.8 |
|
–50.2 |
|
–58.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees (number of full-time equivalents) as of June 30 / December 31 |
|
12’722 |
|
13’631 |
|
192 |
|
185 |
|
12’914 |
|
13’816 |
1) Order intake from external customers.
2) Adjusted for currency and acquisition effects.
3) Sales from external customers.
4) Comparative information covering the period January 1 to June 30, 2021, has been re-presented due to discontinued operations (details are described in note 6).
5) The most significant activities under “Others” relate to Corporate Center.
For the definition of operational profit from continuing operations, operational profitability from continuing operations, currency-adjusted growth and organic growth, please refer to "supplementary information" in the Sulzer Annual Report 2021.
Information about reportable segments
Operating segments are determined based on the reports reviewed by the Chief Executive Officer that are used to measure performance, make strategic decisions and allocate resources to the segments. The business is managed on a divisional basis and the reported segments have been identified as follows:
Flow Equipment
The Flow Equipment division (renamed in 2021 from Pumps Equipment) specializes in pumping solutions specifically engineered for the processes of its customers. The division provides pumps, agitators, compressors, grinders, screens and filters developed through intensive research and development in fluid dynamics and advanced materials. The focus is on pumping solutions for water, oil and gas, power, chemicals and most industrial segments.
Services
The Services division (renamed in 2021 from Rotating Equipment Services division) provides cutting-edge parts as well as maintenance and repair solutions for pumps, turbines, compressors, motors and generators, through a network of over 100 service sites around the world. The division services Sulzer original equipment, but also all associated third-party rotating equipment run by the customers, maximizing its sustainability and life cycle cost-effectiveness. The division’s technology-based solutions, fast execution and expertise in complex maintenance projects are available at its customers’ doorsteps.
Chemtech
The Chemtech division focuses on innovative mass transfer, static mixing and polymer solutions for chemicals, petrochemicals, refining and LNG. Chemtech also provides ecological solutions such as biobased chemicals, polymers and fuels, recycling technologies for textiles and plastic as well as carbon capture and utilization/storage, contributing to a circular and sustainable economy. The division’s product offering ranges from process components to complete process plants and technology licensing.
Others
Certain expenses related to the Corporate Center are not attributable to a particular segment and are reviewed as a whole across the group. Also included are the eliminations for operating assets and liabilities.
The Chief Executive Officer primarily uses operational profit to assess the performance of the operating segments. However, the Chief Executive Officer also receives information about the segments’ order intake and backlog, sales, and operating assets and liabilities on a monthly basis.
Sales from external customers reported to the Chief Executive Officer are measured in a manner consistent with that in the income statement. There are no significant sales between the segments. No individual customer represents a significant portion of the group’s sales.
Operating assets and liabilities are assets or liabilities related to the operating activities of an entity and contributing to EBIT.
Segment information by region
The allocation of sales from external customers is based on the ship-to location defined by Sulzer’s customer, which does not necessarily correspond with the location of the end customer.
Sales by region
|
|
2022 |
||||||
millions of CHF |
|
Flow Equipment |
|
Services |
|
Chemtech |
|
Total Sulzer |
Europe, the Middle East and Africa |
|
303.5 |
|
208.0 |
|
64.0 |
|
575.5 |
– thereof United Kingdom |
|
9.5 |
|
58.3 |
|
5.2 |
|
73.1 |
– thereof Germany |
|
47.3 |
|
20.6 |
|
5.0 |
|
72.9 |
– thereof Saudi Arabia |
|
32.4 |
|
8.6 |
|
6.6 |
|
47.5 |
– thereof Russia |
|
26.6 |
|
8.7 |
|
6.3 |
|
41.6 |
– thereof France |
|
13.5 |
|
15.3 |
|
4.4 |
|
33.2 |
|
|
|
|
|
|
|
|
|
Americas |
|
205.0 |
|
265.7 |
|
101.1 |
|
571.7 |
– thereof USA |
|
103.4 |
|
195.3 |
|
69.6 |
|
368.3 |
|
|
|
|
|
|
|
|
|
Asia-Pacific |
|
123.4 |
|
69.2 |
|
177.0 |
|
369.5 |
– thereof China |
|
90.6 |
|
13.3 |
|
119.9 |
|
223.8 |
|
|
|
|
|
|
|
|
|
Total |
|
631.9 |
|
542.8 |
|
342.0 |
|
1’516.8 |
|
|
2021 |
||||||
millions of CHF |
|
Flow Equipment |
|
Services |
|
Chemtech |
|
Total Sulzer 1) |
Europe, the Middle East and Africa |
|
313.8 |
|
221.5 |
|
67.1 |
|
602.4 |
– thereof Saudi Arabia |
|
56.1 |
|
11.7 |
|
7.2 |
|
75.0 |
– thereof Germany |
|
27.4 |
|
25.8 |
|
14.7 |
|
67.8 |
– thereof United Kingdom |
|
11.6 |
|
53.8 |
|
2.4 |
|
67.7 |
– thereof Russia |
|
15.6 |
|
13.5 |
|
6.6 |
|
35.7 |
– thereof France |
|
13.7 |
|
13.6 |
|
4.5 |
|
31.9 |
|
|
|
|
|
|
|
|
|
Americas |
|
194.8 |
|
232.2 |
|
65.5 |
|
492.5 |
– thereof USA |
|
112.6 |
|
182.2 |
|
41.5 |
|
336.2 |
|
|
|
|
|
|
|
|
|
Asia-Pacific |
|
155.3 |
|
71.8 |
|
172.9 |
|
400.1 |
– thereof China |
|
115.3 |
|
11.4 |
|
127.5 |
|
254.2 |
|
|
|
|
|
|
|
|
|
Total |
|
663.9 |
|
525.5 |
|
305.6 |
|
1’495.0 |
1) Comparative information has been re-presented due to discontinued operations (details are described in note 6).
Segment information by market segment
The following table shows the allocation of sales from external customers by market segment:
Sales by market segment — Flow Equipment
millions of CHF |
|
2022 |
|
2021 |
Energy |
|
216.4 |
|
239.9 |
Water |
|
230.6 |
|
233.6 |
Industry |
|
184.9 |
|
190.5 |
Total Flow Equipment |
|
631.9 |
|
663.9 |
Sales by market segment — Services
millions of CHF |
|
2022 |
|
2021 |
Pumps Services |
|
288.7 |
|
283.7 |
Other Equipment |
|
254.1 |
|
241.9 |
Total Services |
|
542.8 |
|
525.5 |
Sales by market segment — Chemtech
millions of CHF |
|
2022 |
|
2021 |
Chemicals |
|
184.6 |
|
178.4 |
Gas and Refining |
|
66.6 |
|
57.8 |
Services |
|
55.9 |
|
47.9 |
Renewables |
|
25.7 |
|
14.3 |
Water |
|
9.4 |
|
7.2 |
Total Chemtech |
|
342.0 |
|
305.6 |
4Acquisitions and disposals of subsidiaries
Cash flow from acquisitions of subsidiaries
millions of CHF |
|
2022 |
|
2021 |
Cash consideration paid |
|
– |
|
–138.4 |
Contingent consideration paid |
|
–4.1 |
|
–0.5 |
Cash acquired |
|
– |
|
15.0 |
Total cash flow from acquisitions, net of cash acquired |
|
–4.1 |
|
–123.9 |
Contingent consideration
millions of CHF |
|
2022 |
|
2021 |
Balance as of January 1 |
|
5.9 |
|
6.6 |
Assumed in a business combination |
|
– |
|
1.9 |
Derecognized as discontinued operations |
|
– |
|
–2.2 |
Payment of contingent consideration |
|
–4.2 |
|
–0.5 |
Currency translation differences |
|
0.2 |
|
0.1 |
Total contingent consideration as of December 31 |
|
2.0 |
|
5.9 |
– thereof non-current |
|
– |
|
1.9 |
– thereof current |
|
2.0 |
|
4.0 |
Balance sheet adjustment as of June 30, 2021
In the second half of 2021, the group re-assessed the accounting treatment of the contingent consideration of the Haselmeier acquisition based on facts and circumstances already existing at the acquisition date on October 1, 2020. Consequently, the group adjusted goodwill and other current and accrued liabilities by CHF 2.2 million as of June 30, 2021.
millions of CHF |
|
As reported 2021 |
|
Measurement period adjustment |
|
Adjusted 2021 |
Goodwill |
|
1’020.3 |
|
2.2 |
|
1’022.4 |
Total assets |
|
5’603.9 |
|
2.2 |
|
5’606.1 |
|
|
|
|
|
|
|
Other current and accrued liabilities |
|
823.5 |
|
2.2 |
|
825.7 |
Total equity and liabilities |
|
5’603.9 |
|
2.2 |
|
5’606.1 |
Disposals of subsidiaries
In the first half year 2022, the group sold its 100% shareholding in the Brazilian subsidiary Sulzer Services Brasil, Triunfo. The disposal resulted in a loss of CHF 0.6 million, including a loss of CHF 1.0 million from the reclassification of currency translation differences into the income statement. The deconsolidation of two Polish subsidiaries resulted in a loss of CHF 6.2 million, including a loss of CHF 1.2 million from the reclassification of currency translation differences into the income statement, the investment retained is valued at zero. The losses are recorded in other operating expenses (see note 8).
millions of CHF |
|
2022 |
|
2021 |
Cash consideration received |
|
7.8 |
|
0.4 |
Cash disposed |
|
–4.7 |
|
– |
Total cash flow from divestitures, net of cash derecognized |
|
3.1 |
|
0.4 |
5Financial instruments
The following tables present the carrying amounts and fair values of financial assets and liabilities as of June 30, 2022, and December 31, 2021, including their levels in the fair value hierarchy. For financial assets and financial liabilities not measured at fair value in the balance sheet, fair value information is not provided if the carrying amount is a reasonable approximation of fair value.
Fair values are categorized into three different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:
The fair value of financial instruments traded in active markets, including the outstanding bonds, is based on quoted market prices at the balance sheet date. Such instruments are included in level 1.
The fair values included in level 2 are based on valuation techniques using observable market input data. These may include discounted cash flow analysis, option pricing models or reference to other instruments that are substantially the same, while always making maximum use of market inputs and relying as little as possible on entity-specific inputs. The fair values of forward contracts are measured based on broker quotes for foreign exchange rates and interest rates.
Fair values measured using unobservable inputs are categorized within level 3 of the fair value hierarchy. This applies particularly to contingent considerations in business combinations.
Contingent considerations are linked to the fulfillment of certain parameters, mainly related to earnout clauses and technology transfer. For more information please refer to note 4.
Fair value table
|
|
|
|
June 30, 2022 |
||||||||||||||||||
|
|
|
|
Carrying amount |
|
Fair value |
||||||||||||||||
millions of CHF |
|
Notes |
|
Fair value hedging instruments |
|
Fair value through profit or loss |
|
Financial assets at fair value through other comprehensive income – equity instruments |
|
Financial assets at amortized cost |
|
Other financial liabilities |
|
Total carrying amount |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total fair value |
Financial assets measured at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other non-current financial assets (at fair value) |
|
|
|
|
|
9.0 |
|
– |
|
|
|
|
|
9.0 |
|
0.3 |
|
– |
|
8.7 |
|
9.0 |
Derivative assets – current |
|
|
|
17.2 |
|
|
|
|
|
|
|
|
|
17.2 |
|
– |
|
17.2 |
|
– |
|
17.2 |
Current financial assets (at fair value) |
|
|
|
|
|
1.9 |
|
10.5 |
|
|
|
|
|
12.4 |
|
12.4 |
|
– |
|
– |
|
12.4 |
Total financial assets measured at fair value |
|
|
|
17.2 |
|
10.9 |
|
10.5 |
|
– |
|
– |
|
38.5 |
|
12.7 |
|
17.2 |
|
8.7 |
|
38.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets not measured at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other non-current financial assets (at amortized cost) |
|
|
|
|
|
|
|
|
|
6.1 |
|
|
|
6.1 |
|
|
|
|
|
|
|
|
Non-current receivables (excluding non-current derivative assets) |
|
|
|
|
|
|
|
|
|
4.4 |
|
|
|
4.4 |
|
|
|
|
|
|
|
|
Trade accounts receivable |
|
|
|
|
|
|
|
|
|
556.1 |
|
|
|
556.1 |
|
|
|
|
|
|
|
|
Other current receivables (excluding current derivative assets and other taxes) |
|
|
|
|
|
|
|
|
|
20.8 |
|
|
|
20.8 |
|
|
|
|
|
|
|
|
Current financial assets (at amortized cost) |
|
|
|
|
|
|
|
|
|
1.5 |
|
|
|
1.5 |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
|
|
|
|
|
|
1’300.6 |
|
|
|
1’300.6 |
|
|
|
|
|
|
|
|
Total financial assets not measured at fair value |
|
|
|
– |
|
– |
|
– |
|
1’889.4 |
|
– |
|
1’889.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities measured at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative liabilities – current |
|
|
|
13.8 |
|
|
|
|
|
|
|
|
|
13.8 |
|
– |
|
13.8 |
|
– |
|
13.8 |
Contingent considerations |
|
4 |
|
|
|
2.0 |
|
|
|
|
|
|
|
2.0 |
|
– |
|
– |
|
2.0 |
|
2.0 |
Total financial liabilities measured at fair value |
|
|
|
13.8 |
|
2.0 |
|
– |
|
– |
|
– |
|
15.8 |
|
– |
|
13.8 |
|
2.0 |
|
15.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities not measured at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding non-current bonds |
|
12 |
|
|
|
|
|
|
|
|
|
1’164.0 |
|
1’164.0 |
|
1’109.9 |
|
– |
|
– |
|
1’109.9 |
Other non-current borrowings |
|
|
|
|
|
|
|
|
|
|
|
0.7 |
|
0.7 |
|
|
|
|
|
|
|
|
Other non-current liabilities (excluding non-current derivative liabilities) |
|
|
|
|
|
|
|
|
|
|
|
1.3 |
|
1.3 |
|
|
|
|
|
|
|
|
Outstanding current bonds |
|
12 |
|
|
|
|
|
|
|
|
|
325.0 |
|
325.0 |
|
324.9 |
|
– |
|
– |
|
324.9 |
Other current borrowings and bank loans |
|
|
|
|
|
|
|
|
|
|
|
16.7 |
|
16.7 |
|
|
|
|
|
|
|
|
Trade accounts payable |
|
|
|
|
|
|
|
|
|
|
|
453.6 |
|
453.6 |
|
|
|
|
|
|
|
|
Other current liabilities (excluding current derivative liabilities, other taxes and contingent considerations) |
|
|
|
|
|
|
|
|
|
|
|
376.2 |
|
376.2 |
|
|
|
|
|
|
|
|
Total financial liabilities not measured at fair value |
|
|
|
– |
|
– |
|
– |
|
– |
|
2’337.4 |
|
2’337.4 |
|
|
|
|
|
|
|
|
Fair value table
|
|
|
|
December 31, 2021 |
||||||||||||||||||
|
|
|
|
Carrying amount |
|
Fair value |
||||||||||||||||
millions of CHF |
|
Notes |
|
Fair value hedging instruments |
|
Fair value through profit or loss |
|
Financial assets at fair value through other comprehensive income – equity instruments |
|
Financial assets at amortized cost |
|
Other financial liabilities |
|
Total carrying amount |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total fair value |
Financial assets measured at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other non-current financial assets (at fair value) |
|
|
|
|
|
8.9 |
|
– |
|
|
|
|
|
8.9 |
|
0.3 |
|
– |
|
8.6 |
|
8.9 |
Derivative assets – non-current |
|
|
|
0.7 |
|
|
|
|
|
|
|
|
|
0.7 |
|
– |
|
0.7 |
|
– |
|
0.7 |
Derivative assets – current |
|
|
|
7.0 |
|
|
|
|
|
|
|
|
|
7.0 |
|
– |
|
7.0 |
|
– |
|
7.0 |
Current financial assets (at fair value) |
|
|
|
|
|
2.0 |
|
22.5 |
|
|
|
|
|
24.5 |
|
24.5 |
|
– |
|
– |
|
24.5 |
Total financial assets measured at fair value |
|
|
|
7.7 |
|
10.9 |
|
22.5 |
|
– |
|
– |
|
41.1 |
|
24.8 |
|
7.7 |
|
8.6 |
|
41.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets not measured at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other non-current financial assets (at amortized cost) |
|
|
|
|
|
|
|
|
|
9.1 |
|
|
|
9.1 |
|
|
|
|
|
|
|
|
Non-current receivables (excluding non-current derivative assets) |
|
|
|
|
|
|
|
|
|
4.6 |
|
|
|
4.6 |
|
|
|
|
|
|
|
|
Trade accounts receivable |
|
|
|
|
|
|
|
|
|
549.2 |
|
|
|
549.2 |
|
|
|
|
|
|
|
|
Other current receivables (excluding current derivative assets and other taxes) |
|
|
|
|
|
|
|
|
|
18.3 |
|
|
|
18.3 |
|
|
|
|
|
|
|
|
Current financial assets (at amortized cost) |
|
|
|
|
|
|
|
|
|
2.2 |
|
|
|
2.2 |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
|
|
|
|
|
|
1’505.4 |
|
|
|
1’505.4 |
|
|
|
|
|
|
|
|
Total financial assets not measured at fair value |
|
|
|
– |
|
– |
|
– |
|
2’088.8 |
|
– |
|
2’088.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities measured at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative liabilities – non-current |
|
|
|
0.8 |
|
|
|
|
|
|
|
|
|
0.8 |
|
– |
|
0.8 |
|
– |
|
0.8 |
Derivative liabilities – current |
|
|
|
6.7 |
|
|
|
|
|
|
|
|
|
6.7 |
|
– |
|
6.7 |
|
– |
|
6.7 |
Contingent considerations |
|
4 |
|
|
|
5.9 |
|
|
|
|
|
|
|
5.9 |
|
– |
|
– |
|
5.9 |
|
5.9 |
Total financial liabilities measured at fair value |
|
|
|
7.5 |
|
5.9 |
|
– |
|
– |
|
– |
|
13.4 |
|
– |
|
7.5 |
|
5.9 |
|
13.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities not measured at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding non-current bonds |
|
12 |
|
|
|
|
|
|
|
|
|
1’163.8 |
|
1’163.8 |
|
1’189.5 |
|
– |
|
– |
|
1’189.5 |
Other non-current borrowings |
|
|
|
|
|
|
|
|
|
|
|
0.8 |
|
0.8 |
|
|
|
|
|
|
|
|
Other non-current liabilities (excluding non-current derivative liabilities) |
|
|
|
|
|
|
|
|
|
|
|
4.6 |
|
4.6 |
|
|
|
|
|
|
|
|
Outstanding current bonds |
|
12 |
|
|
|
|
|
|
|
|
|
325.0 |
|
325.0 |
|
325.9 |
|
– |
|
– |
|
325.9 |
Other current borrowings and bank loans |
|
|
|
|
|
|
|
|
|
|
|
20.5 |
|
20.5 |
|
|
|
|
|
|
|
|
Trade accounts payable |
|
|
|
|
|
|
|
|
|
|
|
431.8 |
|
431.8 |
|
|
|
|
|
|
|
|
Other current liabilities (excluding current derivative liabilities, other taxes and contingent considerations) |
|
|
|
|
|
|
|
|
|
|
|
350.9 |
|
350.9 |
|
|
|
|
|
|
|
|
Total financial liabilities not measured at fair value |
|
|
|
– |
|
– |
|
– |
|
– |
|
2’297.3 |
|
2’297.3 |
|
|
|
|
|
|
|
|
6Discontinued operations
On September 20, 2021, Sulzer Ltd shareholders at their Extraordinary General Meeting approved the 100% spin-off of the Applicator Systems (APS) division (later renamed medmix) through a 1:1 share split, granting Sulzer shareholders one APS share in addition to each Sulzer share held.
The group has therefore separated the financial data for 2021 into “continuing” and “discontinued” operations. Discontinued operations include the operational results from the Applicator Systems division and certain corporate activities attributable to the Applicator Systems division prior to the spin-off on September 20, 2021.
The Applicator Systems division developed and delivered innovative products and services for liquid application and mixing solutions within the healthcare, adhesives and beauty markets through its well-known brands (Mixpac, Transcodent, Cox, medmix, Haselmeier and Geka).
Income statement of discontinued operations
January 1 – June 30
millions of CHF |
|
2022 |
|
2021 |
|
Sales |
|
– |
|
228.3 |
|
Cost of goods sold |
|
– |
|
–136.5 |
|
Gross profit from discontinued operations |
|
– |
|
91.8 |
|
Selling and distribution expenses |
|
– |
|
–19.6 |
|
General and administrative expenses |
|
– |
|
–21.9 |
|
Research and development expenses |
|
– |
|
–12.2 |
|
Net impairment loss on contract assets and trade accounts receivable |
|
– |
|
–0.1 |
|
Other operating income / (expenses), net |
|
– |
|
–6.7 |
|
Operating income (EBIT) from discontinued operations |
|
– |
|
31.3 |
|
Interest and securities income |
|
– |
|
0.0 |
|
Interest expenses |
|
– |
|
–4.1 |
|
Other financial income / (expenses), net |
|
– |
|
0.1 |
|
Income before income tax expenses from discontinued operations |
|
– |
|
27.3 |
|
Income tax expenses |
|
– |
|
–1.7 |
|
Net income from discontinued operations, net of tax |
|
– |
|
25.6 |
|
Earnings per share discontinued operations (in CHF) |
|
|
|
|
|
Basic earnings per share, discontinued operations |
|
– |
|
0.76 |
|
Diluted earnings per share, discontinued operations |
|
– |
|
0.75 |
|
Segment information of discontinued operations
January 1 – June 30
millions of CHF |
|
2022 |
|
2021 |
Order intake 1) |
|
– |
|
268.9 |
Nominal growth |
|
– |
|
67.9% |
Currency-adjusted growth |
|
– |
|
69.4% |
Organic growth 2) |
|
– |
|
53.3% |
|
|
|
|
|
Order backlog as of June 30 |
|
– |
|
124.8 |
|
|
|
|
|
Sales recognized at a point in time |
|
– |
|
226.5 |
Sales recognized over time |
|
– |
|
1.8 |
Sales 3) |
|
– |
|
228.3 |
Nominal growth |
|
– |
|
37.5% |
Currency-adjusted growth |
|
– |
|
38.4% |
Organic growth 2) |
|
– |
|
25.8% |
|
|
|
|
|
Operational profit |
|
– |
|
44.0 |
Operational profitability |
|
– |
|
19.3% |
|
|
|
|
|
Restructuring expenses |
|
– |
|
–0.2 |
Amortization |
|
– |
|
–11.2 |
Impairments on tangible and intangible assets |
|
– |
|
–0.6 |
Non-operational items |
|
– |
|
–0.8 |
Operating income (EBIT) |
|
– |
|
31.3 |
|
|
|
|
|
Depreciation |
|
– |
|
–13.8 |
|
|
|
|
|
Capital expenditure (incl. lease assets) |
|
– |
|
–18.1 |
1) Order intake from external customers.
2) Adjusted for currency and acquisition effects.
3) Sales from external customers.
Re-presented consolidated income statement 2021
January 1 – June 30
millions of CHF |
|
2021 as originally presented 1) |
|
Adjustments |
|
2021 adjusted |
Sales |
|
1’723.3 |
|
–228.3 |
|
1’495.0 |
Cost of goods sold |
|
–1’184.9 |
|
136.5 |
|
–1’048.4 |
Gross profit |
|
538.5 |
|
–91.8 |
|
446.6 |
Selling and distribution expenses |
|
–173.0 |
|
19.6 |
|
–153.4 |
General and administrative expenses |
|
–194.2 |
|
21.9 |
|
–172.3 |
Research and development expenses |
|
–42.7 |
|
12.2 |
|
–30.5 |
Net impairment loss on contract assets and trade accounts receivable |
|
–2.7 |
|
0.1 |
|
–2.6 |
Other operating income / (expenses), net |
|
2.8 |
|
6.7 |
|
9.6 |
Operating income (EBIT) |
|
128.7 |
|
–31.3 |
|
97.4 |
Interest and securities income |
|
1.7 |
|
3.4 |
|
5.1 |
Interest expenses |
|
–13.1 |
|
0.7 |
|
–12.4 |
Other financial income / (expenses), net |
|
–2.0 |
|
–0.1 |
|
–2.1 |
Share of gains / (losses) of associates |
|
–1.1 |
|
– |
|
–1.1 |
Income before income tax expenses |
|
114.2 |
|
–27.3 |
|
86.9 |
Income tax expenses |
|
–27.9 |
|
1.7 |
|
–26.2 |
Net income from continuing operations |
|
86.3 |
|
–25.6 |
|
60.8 |
Net income from discontinued operations, net of tax |
|
– |
|
25.6 |
|
25.6 |
Net income |
|
86.3 |
|
– |
|
86.3 |
- thereof attributable to shareholders of Sulzer Ltd |
|
85.7 |
|
– |
|
85.7 |
- thereof attributable to non-controlling interests |
|
0.7 |
|
– |
|
0.7 |
1) Aligned with the presentation of the consolidated income statement of the current year, net impairment loss on contract assets and trade accounts receivable previously included in selling and distribution expenses, is presented separately.
7Disposal group held for sale
On May 24, 2022, the group announced its intention to exit the Russian market and initiated an active program to find a buyer for four legal entities in the country. The Russian business is comprised of entities with operations in the reporting segments Flow Equipment, Services and Chemtech and includes two service centers and one production facility. Negotiations are ongoing with potential buyers, with deal closure expected in late 2022 or early 2023, pending finalization of negotiations and obtainment of any required regulatory approvals. The assets and associated liabilities of these operations expected to be transferred as part of a sale have therefore been classified as held for sale in the interim period ending 30 June, 2022.
A disposal group classified as held for sale is measured at the lower of its carrying amount and fair value less costs to sell. Upon the classification as held for sale, write-downs of CHF 88.9 million were recorded, with CHF 32.2 million recorded in other operating expenses, CHF 38.8 million in cost of goods sold, CHF 15.7 million in general and administrative expenses, and CHF 2.2 million in the income tax expenses line. The write-downs include mainly impairments of goodwill, other intangible assets, property, plant and equipment, and write-down of inventory. The fair value less costs to sell reflects the estimated net selling price of the disposal group; the estimate is based on the current status of discussions with potential buyers.
Other comprehensive income as of June 30, 2022, includes CHF 4.3 million to be reclassified to the income statement at the date of the sale. The assets and liabilities classified as held for sale as of June 30, 2022, are presented in the following table:
millions of CHF |
|
2022 |
|
|
Cash and cash equivalents |
|
41.5 |
|
|
Trade accounts receivable |
|
0.9 |
|
|
Total assets of disposal group held for sale |
|
42.4 |
|
|
|
|
|
|
|
Non-current lease liabilities |
|
0.5 |
|
|
Other non-current liabilities |
|
0.2 |
|
|
Current borrowings and lease liabilities |
|
0.3 |
|
|
Current provisions |
|
2.4 |
|
|
Trade accounts payable and contract liabilities |
|
3.6 |
|
|
Contract liabilties |
|
26.2 |
|
|
Other current and accrued liabilites |
|
9.2 |
|
|
Total liabilities of disposal group held for sale |
|
42.4 |
|
|
Whereas the cash and cash equivalents classified as held for sale can be used without restriction in the respective country, they are not available for general use by other entities within the group.
8Other operating income and expenses
millions of CHF |
|
2022 |
|
2021 1) |
Gain from sale of property, plant and equipment |
|
7.5 |
|
1.0 |
Operating currency exchange gains, net |
|
– |
|
2.5 |
Other operating income |
|
9.1 |
|
10.6 |
Total other operating income |
|
16.6 |
|
14.1 |
|
|
|
|
|
Restructuring expenses |
|
–0.9 |
|
–1.8 |
Impairments on tangible and intangible assets |
|
–36.4 |
|
–0.3 |
Cost for mergers and acquisitions |
|
–0.4 |
|
–2.3 |
Loss from sale of property, plant and equipment |
|
–2.8 |
|
–0.0 |
Loss from deconsolidation of subsidiaries |
|
–6.7 |
|
–0.0 |
Operating currency exchange losses, net |
|
–9.9 |
|
– |
Total other operating expenses |
|
–57.2 |
|
–4.5 |
|
|
|
|
|
Total other operating income / (expenses), net |
|
–40.6 |
|
9.6 |
1) Comparative information has been re-presented due to discontinued operations (details are described in note 6).
Other operating income includes income from litigation cases, government grants and incentives, and recharges to third parties not qualifying as sales from customers. In 2021, other operating income included income from charges to the discontinued operation APS division (later renamed medmix) for corporate support functions and centrally procured indirect spend utilized by medmix of CHF 5.2 million.
The loss from deconsolidation of subsidiaries includes a loss of CHF 6.2 million resulting from the deconsolidation of two subsidiaries in Poland and a loss of CHF 0.6 million from the disposal of a subsidiary in Brazil (see note 4).
For the period ended June 30, 2022, the group recognized impairments of CHF 36.4 million (first half of 2021: CHF 0.3 million). Impairments of CHF 4.2 million (first half of 2021: CHF 0.3 million) were recorded based on performed impairment tests on production machines and facilities. Impairments of CHF 32.2 million on goodwill, other intangible assets, and property, plant and equipment were recorded in connection with the classification of the business in Russia as held for sale and the write-down to fair value less costs to sell (see note 7).
The functional allocation of the total restructuring expenses and impairments is estimated as follows: cost of goods sold CHF –24.8 million (first half of 2021: CHF –0.6 million), selling and distribution expenses CHF –6.7 million (first half of 2021: CHF –0.2 million), general and administrative expenses CHF –5.8 million (first half of 2021: CHF –1.3 million).
9Financial income and expenses
millions of CHF |
|
2022 |
|
2021 1) |
Interest and securities income |
|
3.3 |
|
5.1 |
Interest income on employee benefit plans |
|
0.2 |
|
0.0 |
Total interest and securities income |
|
3.5 |
|
5.1 |
Interest expenses on borrowings and lease liabilities |
|
–11.7 |
|
–11.0 |
Interest expenses on employee benefit plans |
|
–1.5 |
|
–1.4 |
Total interest expenses |
|
–13.2 |
|
–12.4 |
Total interest income / (expenses), net |
|
–9.7 |
|
–7.2 |
|
|
|
|
|
Fair value changes |
|
9.1 |
|
–8.1 |
Other financial expenses |
|
–1.1 |
|
–0.5 |
Currency exchange gains / (losses), net |
|
10.3 |
|
6.5 |
Total other financial income / (expenses), net |
|
18.3 |
|
–2.1 |
|
|
|
|
|
Total financial income / (expenses), net |
|
8.5 |
|
–9.4 |
- thereof fair value changes on financial assets at fair value through profit and loss |
|
9.1 |
|
–8.1 |
- thereof interest income on financial assets at amortized costs |
|
3.3 |
|
5.1 |
- thereof other financial expenses |
|
–1.1 |
|
–0.5 |
- thereof currency exchange gains / (losses), net |
|
10.3 |
|
6.5 |
- thereof interest expenses on borrowings |
|
–10.8 |
|
–10.0 |
- thereof interest expenses on lease liabilities |
|
–0.9 |
|
–1.0 |
- thereof interest expenses on employee benefit plans |
|
–1.3 |
|
–1.4 |
1) Comparative information has been re-presented due to discontinued operations (details are described in note 6).
Total financial income amounted to CHF 8.5 million, compared with financial expenses of CHF 9.4 million in the first half of 2021.
The fair value changes are largely related to derivative financial instruments that are classified as financial assets or financial liabilities at fair value through profit and loss and that are used as hedging instruments to hedge foreign exchange risks.
Currency exchange gains/losses, are mainly related to foreign currency differences of non-operating assets and liabilities recorded at the prevailing rate at the time of acquisition (or preceding year-end closing rate) as against the current balance sheet rate. It includes a positive foreign exchange effect of CHF 21.0 million arising on unhedged intercompany loans to Russian entities prior to their classification as held for sale.
10Income taxes
Income tax expenses comprise current and deferred tax. The reported effective income tax rate amounts to 166.4%, compared with 24.4% for the six months ended June 30, 2021, and reflects a pro-rated calculation of the projected full year charge based upon the accounting policy for current and deferred income taxes in note 34 of the consolidated financial statements for the year ended December 31, 2021. The effective income tax rate for 2022 was significantly influenced by write-offs and other losses of business in Russia and Poland impacting income before income tax expenses with no corresponding reduction in the projected tax charge. The June 30, 2022 tax charge also includes write-off of CHF 2.2 million current income tax receivables and the reversal of deferred tax assets of CHF 5.4 million, both related to the Russian businesses.
11Equity
The share capital amounts to CHF 342’623.70, made up of 34’262’370 shares with dividend entitlement and a par value of CHF 0.01. All shares are fully paid in and registered.
Treasury shares
The total number of treasury shares held by Sulzer Ltd as of June 30, 2022, was 400’330 shares (December 31, 2021: 534’073 shares).
The treasury shares are mainly held for the purpose of issuing shares under the management share-based payment programs.
Dividends
On April 6, 2022, the Annual General Meeting approved an ordinary dividend of CHF 3.50 (2021: ordinary dividend of CHF 4.00) per share to be paid out of reserves. The dividend was paid to shareholders on April 12, 2022. The total amount of the dividend to shareholders of Sulzer Ltd was CHF 118.7 million (2021: CHF 135.4 million), thereof paid dividends of CHF 80.6 million (2021: CHF 91.9 million) and unpaid dividends of CHF 38.1 million (2021: CHF 43.5 million). The unpaid dividends are reflected in the balance sheet position “Other current and accrued liabilitiesˮ (see note 14).
Contribution from medmix
The contribution relates to vested shares under Sulzer share plans for medmix employees.
Transaction costs recorded in equity
Transaction costs directly attributable to the spin-off of medmix are recorded as a deduction from equity.
12Borrowings
|
|
2022 |
||||
millions of CHF |
|
Non-current borrowings |
|
Current borrowings |
|
Total |
Balance as of January 1 |
|
1’164.6 |
|
345.5 |