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Sales of CHF 6.3 Billion in a Challenging Environment

With sales growth of 10.0 percent in local currencies (6.2 percent in Swiss francs), Hilti reached a turnover level of more than CHF 6.3 billion. The operating result was CHF 731 million, a decline of 13.7 percent compared to the all-time high achieved in 2021. This decline is due to the unprecedented increase of raw material, component and transport costs, the devaluation of the euro and other currencies against the Swiss franc, the impact of the war in Ukraine and increased investments into innovation and into the long-term strategic strength of the Hilti Group.


Net sales in CHF mill.

With growth of 6.2 percent, Hilti exceeded 6 billion in sales in 2022.

-147Free cash flow in CHF mill.

Free cash flow was negative due to the decline in operating profit, an inventory buildup and a normalization of variable salary components compared to the COVID-19 crisis phase.

565Net income in CHF mill.

Due to inflation driven cost increases, negative currency effects, significant investments into innovation and the long-term strategic strength, net income declined by 16.3 percent.

Hilti achieved double-digit sales growth in 2022 in local currencies. On a regional level, the Americas and South Asia managed to close the year with strong growth of 16.5 and 18.6 percent, respectively. European regions achieved growth rates between 7 and 11 percent, while Middle East / Africa grew by 15.1 percent. North Asia, heavily impacted by COVID-19 lockdowns in China, did not contribute to the overall growth. The war in Ukraine had an impact on the entire Eastern Europe region, which recorded a decline of -13.7 percent. Overall, the weaker euro and the devaluation in a number of currencies resulted in a negative impact on sales in Swiss francs, totaling 3.8 percentage points.

The Group used its solid financial position to make significant investments into innovation and the long-term strategic strength of the company. In 2022, the new battery platform, Nuron, was launched with more than 70 tools in the initial offering. This was the largest product launch in the company’s history. Expenditure for research and development reached CHF 437 million, a share of 6.9 percent of net sales.

Hilti continued to invest into the transformation of the construction industry. The company focusses on productivity, safety and sustainability to be the customers’ best partner in this transformation. Following the acquisition of U.S.-based Fieldwire Inc. in 2021, Hilti successfully launched the jobsite management software in Europe to accelerate and broaden the software portfolio. 

As of the end of the year, the Group had 32,487 team members, an addition of 1372 (+4.4%) employees compared to the previous year.

The operating result decreased by 13.7 percent to CHF 731 million (2021: CHF 847 million) while net income decreased by 16.3 percent to CHF 565 million (2021: CHF 675 million). Raw material, component and transport costs increases, additional investments, the appreciating Swiss franc and the war in Ukraine led to a return on sales (ROS) of 11.5 percent (-2.7 percentage points). Consequently, the return on capital employed (ROCE) was at 13.2 percent (-3.9 percentage points). Beside the operating result decline, this was caused by a significant increase in inventory value of more than CHF 200 million, due to sourcing cost increases, the launch of the Nuron platform and longer lead times.

Free cash flow was negative for the first time at CHF -147 million (2021: CHF 377 million). This is a result of the decline in operating profit, a more than CHF 200 million inventory buildup and a normalization of variable salary components in all organizations compared to the COVID-19 crisis phase.

The pronounced negative development of the euro exchange rate and the ongoing depreciation of other currencies compared to the Swiss franc had – despite the appreciating U.S. dollar and good natural hedging in the main currencies – a negative impact of CHF -81 million on the operating result (2021: CHF -11 million).

The equity ratio of 62 percent was 5 percentage points higher than in 2021 and continues to be significantly above the target level of 50 percent. At CHF 1 billion, cash and cash equivalents remained solid and were CHF 0.3 billion lower than the previous year (CHF 1.3 billion). This was mainly caused by the negative free cash flow and the dividend payment. The syndicated revolving credit facility of CHF 600 million was extended by one year with maturity in 2027. Given the Group’s healthy financial situation, the Board of Directors proposes the payout of an ordinary dividend of CHF 281 million for the 2022 financial year (2021: CHF 337 million).

At the end of 2022, the Hilti Group committed to significantly reduce greenhouse gas emissions along the entire value chain, in line with the “Science Based Targets initiative,” and to achieve net-zero emissions by 2050. Sustainability is at the core of the new Group Strategy Lead 2030. Hilti secures long-term success through a business strategy that values ecological, people and social aspects equally in addition to economic factors. 

To prepare for more robust external reporting, Hilti conducted an audit of the two non-financial metrics, Greenhouse Gas Emissions and Lost Time Incident Rate. Both metrics received a limited assurance by the auditor PWC. Going forward, requirements arising from, among others, the Taskforce of Climate-related Financial Disclosures or the Corporate Sustainability Reporting Directive, will be integrated into the financial reporting on a step-by-step basis. 

Construction market forecasts point to softer growth in 2023 caused by further interest rate hikes, ongoing geopolitical tensions and further appreciation of the Swiss franc. In 2023, the Hilti Group will roll out the new Lead 2030 strategy. The company strives to lead the transformation of the construction industry and will continuously invest to drive innovation in both hardware and software solutions and to build up its market reach resources. The Group has updated its financial guardrails and will keep ROS in a range of 10 to 14 percent, and ROCE between 12 and 18 percent. The Hilti Group expects high single-digit sales growth in local currencies and a similar ROS level in Swiss francs compared to 2022. 

Financial Information

Key Figures

financial amounts in CHF million
Net sales5,9786,347
Depreciation and amortization(412)(440)
Operating result847731
Net income before tax805668
Net income675565
Return on capital employed (ROCE) in % (operating result)117.113.2
Return on equity (ROE) in % (net income)17.412.7
Return on sales (ROS) in %14.211.5
Free cash flow2377(147)
Balance sheet
Total equity4,2944,579
Total equity in % of total equity and liabilities5762
Total non-current liabilities31,4701,130
Total current liabilities31,7051,717
Capital expenditures on intangible assets and on property, plant and equipment401445
Intangible assets and property, plant and equipment2,2502,350
Other non-current assets31,4861,551
Total current assets3,7333,525
Total assets7,4697,426
Employees (as at December 31)31,11532,487
1 Capital employed is defined as the average of the total equity and interest-bearing liabilities of the last two years
2 In 2021, the Group decided to change the definition of free cash flow, excluding the cash flow from financial investments and disclosing it as a separate line item. Prior period figures were restated accordingly
3 Due to the adoption of IFRS 16 Leases, starting from 2019 these line items include right of use assets and lease liabilities, respectively
4 As proposed by the Board of Directors

Consolidated Income Statement

in CHF million
Net sales5,9786,347
Other operating income170184
Total operating income6,1486,531
Material costs(1,570)(1,767)
Personnel expenses(2,602)(2,710)
Depreciation and amortization(412)(440)
Losses on trade and other receivables(30)(39)
Other operating expenses(884)(1,052)
Capitalized costs197208
Total operating expenses(5,301)(5,800)
Operating result847731
Other income and expenses (net)3(12)
Finance costs(45)(51)
Net income before income tax expenses805668
Income tax expenses(130)(103)
Net income675565
Attributable to:  
Equity holders of the parent673561
Non-controlling interests24

Consolidated Statement of Comprehensive Income

in CHF million
Net income675565
Net movement on cash flow hedges (incl. deferred tax)3(4)
Foreign currency translation differences (incl. deferred tax)(40)(91)
Items that may be subsequently reclassified to the income statement(37)(95)
Remeasurements on employee benefits (incl. deferred tax)184152
Items that will never be reclassified to the income statement184152
Other comprehensive income (OCI)14757
Total comprehensive income822622
Attributable to:  
Equity holders of the parent820618
Non-controlling interests24

Consolidated Balance Sheet

in CHF million
Property, plant and equipment9951,066
Right of use assets432418
Intangible assets1,2551,284
Deferred income tax assets162185
Other financial assets2322
Other assets55
Trade and other receivables864921
Total non-current assets3,7363,901
Trade and other receivables1,3701,371
Accrued income and prepaid expenses97117
Other financial assets24687
Cash and cash equivalents1,264991
Total current assets3,7333,525
Total assets7,4697,426
Equity and liabilities
in CHF million
Non-controlling interests1014
Equity attributable to equity holders of the parent4,2844,565
Total equity4,2944,579
Employee benefits358162
Deferred income tax liabilities165198
Trade and other payables2827
Other financial liabilities821704
Other liabilities9839
Total non-current liabilities1,4701,130
Employee benefits6916
Trade and other payables680661
Accrued liabilities and deferred income570536
Other financial liabilities260436
Other liabilities12668
Total current liabilities1,7051,717
Total liabilities3,1752,847
Total equity and liabilities7,4697,426

Consolidated Statement of Changes in Equity

in CHF million
equity holders
of the parent
Total equity
Equity at January 1, 202212717(578)64,7124,284104,294
Net income recognized in income statement5615614565
Other comprehensive income        
Cash flow hedges(4)(4)(4)
Remeasurements on employee benefits152152152
Foreign currency translation differences(91)(91)(91)
Total other comprehensive income(91)(4)1525757
Total comprehensive income(91)(4)7136184622
Dividend paid(337)(337)(337)
Equity at December 31, 202212717(669)25,0884,565144,579
Equity at January 1, 202112717(538)33,8553,46483,472
Net income recognized in income statement6736732675
Other comprehensive income        
Cash flow hedges333
Remeasurements on employee benefits184184184
Foreign currency translation differences(40)(40)(40)
Total other comprehensive income(40)3184147147
Total comprehensive income(40)38578202822
Dividend paid
Equity at December 31, 202112717(578)64,7124,284104,294

Consolidated Cash Flow Statement

in CHF million
Operating result847731
Depreciation and amortization412440
Interest received35
Interest paid(45)(51)
Income tax paid(131)(145)
(Increase)/decrease in inventories(170)(221)
(Increase)/decrease in trade receivables(63)(52)
(Increase)/decrease in finance lease receivables(154)(211)
Increase/(decrease) in trade payables74(2)
Increase/(decrease) in contract liabilities57
Change in non-cash items34(50)
Change in other net operating assets84(22)
Cash flow from operating activities896429
Capital expenditure on intangible assets(211)(222)
Capital expenditure on property, plant and equipment(190)(223)
Acquisition of subsidiaries(227)
(Increase)/decrease in financial investments71159
Disposal of intangible assets1
Disposal of property, plant and equipment247
Cash flow from investing activities(532)(279)
Proceeds from long-term borrowings63
Repayment of long-term borrowings(4)
Payment of lease liabilities(143)(138)
Proceeds from (repayment of) short-term borrowings(3)71
Increase/(decrease) in liability to shareholder(1)
Dividend paid(337)
Cash flow from financing activities(141)(405)
Exchange differences(12)(18)
Total increase/(decrease) in cash and cash equivalents211(273)
Cash and cash equivalents at January 11,0531,264
Cash and cash equivalents at December 311,264991

2022 Sales Growth

Sales Growth
financial amounts in CHF million
 20212022Change in CHF (%)Change in local currencies (%)
Europe excl. Eastern Europe3,1283,2012.39.6
Eastern Europe / Middle East / Africa592542(8.4)(2.3)
Total Group5,9786,3476.210.0