Key figures - Schulthess Group

Key figures
Income statement (in CHF million) 1999 1998
Sales 124.587 114.408
Operating cash flow EBITDA 18.398 17.089
as % of sales 14.8 14.9
Operating profit EBIT 14.741 12.901
as % of sales 11.8 11.3
Net profit 10.346 10.136
as % of sales 8.3 8.9
Balance sheet (in CHF million) 31.12.99 31.12.98
Total liabilities and shareholders’ equity 104.698 93.829
Shareholders’ equity 47.707 40.551
Equity ratio (in %) 45.6 43.2
Capital investments 5.965 4.605
Share statistics 31.12.99 31.12.98
Closing price of Schulthess registereds (in CHF) 489 418
High/low (in CHF) 489/369 541/360
Share capital (in CHF million) 8.500 8.500
Market capitalization (in CHF million) 103.913 88.825
Net earnings per share (in CHF) 48.69 47.70

Household
washing machine
Household washing machine for
multiple-dwelling houses
The Schulthess Group: an overview
The Schulthess Group is a leading Swiss manufacturer
of washing machines and dryers. It is active in the household,
small business and commercial sectors. In the
household sector, which has the greatest volume and
turnover, washing machines and dryers are produced
for owner-occupied properties (single-family houses
and condominium apartments). The semi-professional
appliances are intended for multiple-dwelling houses
and for small businesses. The commercial sector is
directed towards the manufacturing and marketing of
washing extractors, dryers and mangles for hotels,
homes and hospitals.
The Schulthess Group consists of Schulthess Maschinen
AG, Merker AG, Novelan AG, Querop Handels AG
and Schulthess Maschinen GmbH, Austria. In China,
the Schulthess Group has a 25 per cent holding in a
joint-venture company.
For commercial use
Washing machine
for semi-professional
applications

Dear Shareholders,
The Schulthess Group’s business year 1999, though encouraging
with regard to the economic result, has not fulfilled
our expectations in all respects.
It is certain that the business development last year confirmed
the correctness of the corporate strategy adopted by
the Schulthess Group. In this it seeks on the one hand a
marked expansion of the export share in the semi-professional
and professional market sectors, on the other hand
growth by carefully targeted acquisitions. The Group’s
strong market position in the Swiss home market is to be
maintained and expanded.
The business result 1999 reflects this development to a
large degree. Whereas the overall turnover in the Swiss
market stagnated, the export share of sales grew further
thanks to new co-operation agreements and marketing
partners. One major event in the business year was the
takeover of Novelan AG, Dällikon. This acquisition contributed
considerably to the growth in the Group’s sales.
Thanks to progress in productivity, the operating profit
increased yet again. The Schulthess Group’s sales profitability
achieved a high value with 8,3% compared with
other companies in the branch.
2
As a public company, in its shareholders’ interest the
Schulthess Group wants to implement the defined medium
to long-term target requirements – an averaged annual
growth of approx. 10% and an EBIT margin of approx. 12%.
The Schulthess Group achieved this objective almost
completely in 1999. We are confident for the new business
year that we will achieve a further marked step in growth in
export thanks to new products and the co-operation
agreements made in the export sector.
In the period under review, the stock market rewarded the
potential of the Schulthess registered share with a rise in
price from CHF 418.– (as at the end of Dec. 98) to CHF 489.–
(as at the end of Dec. 99). Schulthess is and remains a
reliable, profitable and interesting investment.
With the end of the business year, I am handing over the
chairmanship of the Schulthess Group to Mr Rudolf Kägi.
The long-standing Operating Manager and Delegate of the
Board is the guarantee for a modern corporate policy and
the necessary continuity in management. I wish him a
continued sure hand and the necessary portion of luck. I
shall remain linked with the company as a board member
and am looking forward to being able to continue to
accompany the company further in this position. I would like
to thank all those who supported and advised me in my
function up to now at the head of the Schulthess Group.
Paul O. Rutz
Chairman of the Board
(until December 31, 1999)

High profitability,
growth in turnover by acquisition
Overview of the development as a whole
The Schulthess Group has completed the business year 1999
with a good result once again, whereby, however, the growth
targets that had been aimed for were not fully achieved in
all sectors. In the sense of the Group’s growth strategy, on
July 1, 1999 Novelan AG, Dällikon was taken over and
integrated into the Schulthess Group. Further progress was
made in the course of the year in export with marketing and
service operations being agreed with various strong partners
in the European area. In the important Swiss home market,
the market position was maintained over a long period with
a difficult environment and with a saturated market.
The production and expansion of the market of Wuxi Little
Swan-Schulthess Washing Machinery Co. Ltd., our joint-venture
company in China, made a belated start in the year under
review on account of problems with the production of
parts. Despite this rather slow start, the management of the
Chinese partner company is confident that it will be able to
considerably increase the production and sales figures in
the coming period.
Further progress in productivity in production at the Wolfhausen
headquarters thanks to considerable investments in
new equipment there have contributed decisively to the
good result.
4
The strategy:
Growth by our own efforts and through acquisitions
The overall development of the Schulthess Group in the
business year 1999 confirms the Board in its corporate strategy.
Because growth in saturated Switzerland where the
Group companies, taken as a whole, are maintainings strong
market position, is becoming increasingly difficult to achieve,
in export we are pursuing a strategy which is aimed at activating
additional markets with niche products.
We also consider it sensible to achieve further growth by
acquisitions, if sensible synergies will result from this for
our corporate group and at the same time a strengthening of
our position can be attained. Whereas in the home market
all the company’s products groups, e.g. appliances for one’s
own home, for multi-dwelling houses and semi-professional
applications, as well as machines for the professional laundry
trade, are marketed, in export, in view of the aforementioned
“niche-oriented” policy, efforts are concentrated on
semi-professional professional products.
The acquisition of Novelan AG, Dällikon also took place then
at the middle of the year within the scope of our growth
strategy. The company has three fields of activity, namely
sales and after-sales service for
• large household appliances
• heat technology
• air-conditioning/ventilation
With its interesting after-sales service sector, it also corresponds
with the growing importance of the service section of
the economy. With this acquisition, the Schulthess Group
has considerably expanded the customer basis in the business
with real estate companies so important for Switzerland
(e.g. property management companies and building cooperatives),
general contractors and architects. Novelan AG
was gradually integrated in the second half of 1999. The
Group’s sales growth is also a result above all of this acquisition.

Important cornerstones for future successes were laid in
export. Thus in the United Kingdom, France, Scandinavia
and Holland, new, strong national marketing partners with a
considerable sales potential were acquired. In this connection,
Schulthess products are not only marketed under their
own label, but also within the scope of private label partnerships.
As some of these partnerships were only made in the
course of the business year, they can only have a full effect
on sales in the course of the year 2000.
Growth targets partially reached, profitability targets for the
most part achieved
In 1999, the Schulthess Group reached its profitability targets
for the most part, but not its growth targets in all
sectors. The business result (EBIT and profit) reflects the
company’s good productivity and profitability. The reported
growth is mainly attributable to the consolidation of Novelan
(July–December 1999). The difficult situation for many
months in the home market, the delay in the introduction of
the new commercial range and the time taken to reach agreements
in the export sector have slowed down the development
of sales. The Board is, however, confident that it will
further expand sales growth in the new business year with
appropriate measures.
Outlook
In 2000, the Schulthess Group will place its main emphasis
on further stepping up its growth strategy. The Board and
Management are reckoning with a sales growth of 10–12%
and a yield on sales of over 8%. The expansion of export
sales is to be continued systematically. Interest is concentrated
here on the consolidation of existing partnerships, the
search for new marketing partners and on covering the whole
European area with Schulthess agencies.
In the acquisition sector, the Schulthess Group is looking for
suitable new partners at home and abroad. What is decisive
for such takeover operations are the partner companies’
compatibility with the Group’s corporate strategy, the economic
basis, the potential for the future and the synergies
which can be achieved in the market.
5
Sales
(in CHF million)
140
120
100
80
60
40
20
0
1995
112.4
EBITDA
(in CHF million)
20
15
10
5
0
1995
7.9
1996
116.3
1996
11.0
1997
117.0
1997
12.7
1998
114.4
1998
17.1
1999
124.6
1999
18.4

EBIT
(in CHF million)
15
12
9
6
3
0
1995
3.9
1996
6.5
Consolidated profit
(in CHF million)
12
10
8
6
4
2
0
1995
2.0
1996
3.7
1997
8.6
1997
5.5
1998
12.9
1998
10.1
1999
14.7
1999
10.3
Non-operating income of know-how transfer
as part of joint venture (1,8 CHF million)
6
In the Swiss home market, the Schulthess Group is striving
towards a further consolidation and improvement in its market
position and sales.
Additional points of focus of the Schulthess Group lie in the
product sector and in further modernization steps in production.
The completion of the renewal of the commercial
washing machine series and the enlargement of the largemargin
Spirit topline line by new models and their introduction
are at the centre of the range policy. In production,
further notable investments are planned, especially in the
manufacture of commercial machines.
Thanks
The overall result of the Schulthess Group is for the most
part encouraging. The prospects with respect to the Group’s
further development are promising. A motivated team of
qualified employees has carried out this work and is confidently
facing the future challenges.
The Board is aware of its employees’ great performance and
thanks them all for their untiring commitment, for their contribution
towards the result and their positive attitude towards
the company.
We would like to thank you, our shareholders, for your confidence
and loyalty towards the Schulthess Group. We are
confident that we will be able to report on positive events,
results and developments in the new business year too.
Rudolf Kägi
Chief Executive Officer
(since January 1, 2000 also Chairman of the Board)

Financial review Schulthess Group
Consolidated balance sheet
in CHF 1,000 note 31.12.99 31.12.98
Assets
Cash and cash equivalents 4,945 6,843
Marketable securities 3,359 2,405
Trade accounts receivable, net 3.1 23,712 18,486
Inventories 3.2 25,253 22,818
Prepaid expenses 629 607
Current assets 57,898 51,159
Property and plant 36,173 34,041
Equipment and vehicles 34,126 30,132
Intangible assets and goodwill 2,278 866
Financial investments 2,306 2,306
Accumulated depreciation –28,083 –24,675
Fixed assets 3.3 46,800 42,670
Total assets 104,698 93,829
Liabilities and shareholders’ equity
Bank overdrafts 7,467 6,375
Trade accounts payable 6,048 5,405
Other current liabilities 2,610 1,351
Accrued expenses 3.4 10,636 9,054
Short-term liabilities 26,761 22,185
Long-term debt 3.5 8,468 9,547
Provisions 3.6 6,446 6,417
Deferred income taxes 3.7 15,316 15,129
Long-term liabilities 30,230 31,093
Share capital 8,500 8,500
Retained earnings and reserves 39,207 32,051
Shareholders’ equity 3.8 47,707 40,551
Total liabilities and shareholders’ equity 104,698 93,829
8

Consolidated income statement
in CHF 1,000 note 1999 1998
Income from sales and services 4.1 124,587 114,408
Revenue deduction 4,604 4,455
Net income 119,983 109,953
Cost of material 42,504 38,754
Gross profit 77,479 71,199
Personnel 36,589 34,191
Rent 1,224 1,076
Other operating expenses 4.2 21,268 18,843
Operating cash flow EBITDA 18,398 17,089
Depreciation of fixed assets 3,602 4,188
Depreciation of goodwill 55 0
Operating profit EBIT 14,741 12,901
Financial income 4.3 418 461
Financial expenses 4.4 –854 –1,287
Financial income and expenses, net –436 –826
Non-operating income 4.5 212 1,907
Non-operating expenses 4.6 –6 –181
Non-operating income and expenses, net 206 1,726
Profit before taxes 14,511 13,801
Taxes 4.7 4,165 3,665
Net profit 10,346 10,136
9

Consolidated cash flow statement
in CHF 1,000 note 1999 1998
Income from sales and services 4.1 124,587 114,408
Revenue deduction 4,604 4,455
Cost of material 42,504 38,754
Personnel, rent and other operating expenses 59,081 54,110
Operating cash flow EBITDA 18,398 17,089
Financial income and expenses, net –436 –826
Non-operating income and expenses, net 206 1,726
Taxes –4,165 –3,665
Change in marketable securities –954 –1,302
Change in trade accounts receivable and prepaid expenses –1,857 891
Change in inventories 784 –1,995
Change in liabilities and provisions 266 –502
Cash flow from operating activities 12,242 11,416
Investing in property and plant 3.3 –292 –149
Investing in equipment and vehicles 3.3 –3,245 –2,027
Investing in intangible assets 3.3 –312 –173
Investing in financial investments 3.3 0 –2,256
Changes in Group companies –2,116 0
Cash flow from investing activities –5,965 –4,605
Increase in Bank loans 1,500 0
Increase in loans 0 0
Repayment of Bank loans –1,440 –4,120
Repayment of loans –6,139 –1,347
Share capital and reserves paid in 3.8 0 11,474
Dividends paid –3,188 0
Cash flow from financing activities –9,267 6,007
Cash and Bank overdrafts, net at the beginning of year 468 –12,350
Increase/Decrease in cash and Bank overdrafts, net –2,990 12,818
Cash and Bank overdrafts, net at the end of year –2,522 468
Fund composition:
Cash and cash equivalents 4,945 6,843
Less Bank overdrafts –7,467 –6,375
Cash and Bank overdrafts, net –2,522 468
10

Notes to the consolidated financial statements
1 Consolidation principles
1.1 General
The consolidated financial statements of the Schulthess Group are based on uniform consolidation and valuation principles
applicable for all the Group companies and have been prepared in accordance with the Swiss Accounting and Reporting
Recommendations (ARR).
1.2 Closing date
The closing date of Schulthess Group Ltd., all its subsidiary companies and also the consolidated financial statements is
December 31.
1.3 Consolidated group
As of December 31, Schulthess Group AG held the following investments:
Company Nominal capital Percentage held
1999 1998
Schulthess Maschinen AG, Bubikon ZH CHF 1,500,000.00 100% 100%
Merker AG, Baden-Dättwil AG CHF 500,000.00 100% 100%
Novelan AG, Dällikon ZH CHF 1,250,000.00 100% –
Querop Handels AG, Root LU CHF 1,000,000.00 100% 100%
Querop Lager AG, Root LU CHF 50,000.00 100% 100%
Wamatec SA, Lamone TICHF 100,000.00 100% 100%
Schulthess Maschinen GmbH, A-Vienna ATS 4,000,000.00 100% 100%
Wuxi Little Swan-Schulthess Washing
Machinery Co. Ltd., Wuxi (China)
USD 6,000,000.00 25% 25%
1.4 Method of consolidation
Companies in which Schulthess Group directly or indirectly holds an interest of more than 50% are fully consolidated.
Companies in which an interest of 20–50% is held are shown in the balance sheet commensurate with the Group’s share of
equity (equity method). Equity interests of less than 20% are shown at the lower of acquisition cost of equity value.
The capital is consolidated according to the Anglo-Saxon purchase method.
1.5 Intercompany transactions
All assets and liabilities and intercompany transactions between Group companies (incl. dividends paid) are eliminated.
Profits on intercompany deliveries of goods are of a negligible amount and therefore not eliminated in the consolidated
financial statements.
The goodwill paid at the time of the purchase of the companies was charged directly to the Group's reserves until 1.1.95. In
the years 1995 to 1998, no new holdings were purchased. From 1.1.99, the residual amount between the purchase price and
the equity capital (goodwill) will be entered on the assets side and written down at a flat rate over a period of a maximum of
10 years.
11

1.6 Translation of foreign companies
The reporting currency is the Swiss Franc (CHF). Annual accounts of foreign subsidiaries are prepared in their local currency.
All balance sheet items (except shareholders’ equity) are translated into Swiss Francs (CHF) at the exchange rates applicable
at the balance sheet date. Differences arising on translation are taken directly to sharesholders’ equity without affecting net
profit.
Income statement items are translated into Swiss Francs (CHF) at the average exchange rates during the particular reporting
period. Exchange differences arising from operations are included in net profit.
The following rate was used for the translation of foreign currencies:
Balance sheet rates Income statement rates
Year-end-rates Average rates
1999 1998 1999 1998
100 ATS 11.55 11.50 11.63 11.71
2 Valuation principles
2.1 General
The annual accounts of the individual companies on which the consolidation was based were prepared using historical cost
values (except plant and property to estimated market values) according to uniform Group accounting principles. The
accounting principles remained unchanged as compared with the previous year.
2.2 Current assets
Inventories are valued at the most recent acquisition costs, the accumulated manufacturing costs, or at the lower market
value (lower of cost or market principle).
In the case of receivables, allowance is made for recognizable individual risks by valuation provisions.
2.3 Fixed assets
The valuation of property and plant is based on market values. Expert appraisals were commissioned to assess the market
values.
Equipment and vehicles are valued at acquisition or construction cost. Equipment and vehicles are depreciated on a straightline
basis over their expected useful lives from the month of acquisition onwards.
12

3 Notes to the consolidated balance sheet
3.1 Trade accounts receivable, net
in CHF 1,000 31.12.99 31.12.98
Trade accounts receivable 23,553 19,500
Accounts receivable from non-consolidated companies 559 0
Other receivables and prepayments 1,601 676
Provision for doubtful accounts –2,001 –1,690
Total 23,712 18,486
3.2 Inventories
in CHF 1,000 31.12.99 31.12.98
Raw material 7,905 8,094
Work in process 2,686 2,336
Finished products 7,626 5,370
Products for services 11,439 11,037
Provision for obsolete inventories –4,403 –4,019
Total 25,253 22,818
14

3.3 Fixed assets
in CHF 1,000 Property Equipment Intangible
and and assets and Financial
plant vehicles goodwill investments Total
Net book value as of January 1, 1998 28,684 11,836 236 50 40,806
Gross book value as of January 1, 1998 32,445 28,847 693 50 62,035
Revaluation of property and plant 1,447 0 0 0 1 447
Additions 649 2,077 173 2,256 5,155
Disposals –500 –792 0 0 –1 292
Gross book value as of December 31, 1998 34,041 30,132 866 2,306 67,345
Accumulated depreciation as of January 1, 1998 3,761 17,011 457 0 21,229
Additions 1,342 2,725 121 0 4,188
Disposals 0 742 0 0 742
Accumulated depreciation as of December 31, 1998 5,103 18,994 578 0 24,675
Net book value as of December 31, 1998/1.1.99 28,938 11,138 28 8 2,306 42,670
Gross book value as of January 1, 1999 34,041 30,132 866 2,306 67,345
Revaluation of property and plant 0 0 0 0 0
Additions 292 3,500 312 0 4,104
Additions from changes in Group companies 0 –1,234 0 0 –1,234
Disposals 1,840 1,728 1,100 0 4,668
Gross book value as of December 31, 1999 36,173 34,126 2,278 2,306 74,883
Accumulated depreciation as of January 1, 1999 5,103 18,994 578 0 24,675
Additions 444 3,046 112 0 3,602
Additions from changes in Group companies 0 –979 0 0 –979
Disposals 0 730 55 0 785
Accumulated depreciation as of December 31, 1999 5,547 21,791 745 0 28,083
Net book value as of December 31, 1999 30,626 12,335 1,533 2,306 46,800
Capitalized intangible assets comprise mainly lincenses for clients in the ironing machine lining segment, amortized over a
periode of five years.
3.4 Accrued expenses
in CHF 1,000 31.12.99 31.12.98
Income from services concerning next year 8,409 6,923
Revenue deduction 715 671
Personnel 831 629
Ta x e s 0 70
Others 681 761
Total 10,636 9,054
15

3.5 Long-term debt
in CHF 1,000 31.12.99 31.12.98
Bank loans 1,300 2,600
Mortgages 4,460 3,100
Loans from staff pension funds 2,708 3,847
Total 8,468 9,547
3.6 Provisions
in CHF 1,000 31.12.99 31.12.98
Warranties, guarantees 2,310 2,600
Taxes 3,868 3,399
Other operating provisions 268 418
Total 6,446 6,417
3.7 Deferred income taxes
Deferred taxes are provided for at the normal local tax rates.
3.8 Shareholders’ equity
in CHF 1,000 Share Translation Capital Retained Total
capital differences reserves earnings
Value as of January 1, 1998 2,700 2 2,867 12,043 17,612
Revaluation 1,331 1,331
Increase of share capital (Going public) 1,000 10,474 11,474
Capital increase according to 652 d CO 4,800 –4,800 0
Net profit 10,136 10,136
Translation differences –2 –2
Value as of December 31, 1998 8,500 0 9,872 22,179 40,551
Value as of January 1, 1999 8,500 0 9,872 22,179 40,551
Revaluation 0
Net profit 10,346 10,346
Dividends paid –3,188 –3,188
Translation differences –2 –2
Value as of December 31, 1999 8,500 -2 9,872 29,337 47,707
16

4 Notes to the consolidated income statement
4.1 Segmental information
in CHF 1,000 1999 1998
Household 106,270 94,512
Industrial 18,317 19,896
Total 124,587 114,408
Exports 9,531 8,454
Exports as % of total sales 7,65 7,39
The Household segment offers products and services for single- and multi-family buildings (and small businesses).
The Industrial segment generates sales with products and services for hotels, restaurants, hospitals, homes, etc.
4.2 Other operating expenses
in CHF 1,000 1999 1998
Administration expenses 6,408 6,386
Advertising expenses 6,989 5,479
Other expenses 7,871 6,978
Total 21,268 18,843
4.3 Financial income
in CHF 1,000 1999 1998
Interests 243 261
Unrealized profit of exchange 175 200
Total 418 461
4.4 Financial expenses
in CHF 1,000 1999 1998
Bank interest 626 949
Loan interest 228 338
Total 854 1,287
17

4.5 Non-operating income
in CHF 1,000 1999 1998
Income of know-how transfer as part of joint venture 120 1,805
Sales of non-current assets 21 10
Others 71 92
Total 212 1,907
4.6 Non-operating expenses
in CHF 1,000 1999 1998
Others 6 181
Total 6 181
4.7 Taxes
in CHF 1,000 1999 1998
Current taxes 4,142 3,702
Deferred taxes 23 –37
Total 4,165 3,665
18

5 Further information as required under Art. 663 b CO
in CHF 1,000 1999 1998
Fire insurance value of property, plant and equipment
Property and plant 36,889 34,867
Equipment 35,675 32,268
Models
Pledged assets under reservation of ownership
Pledged real estate
3,000 3,000
Stated value 30,626 28,938
Charge 12,600 14,600
Drawn on
Joint and several guarantees for third-party liabilities
9,629 7,942
Joint and several guarantees issued
Leasing liabilities not stated
26 26
Leasing installments not due 7 61
of which due in 1999 0 54
of which due in 2000
Liabilities in respect of pension funds
7 7
Short-term liabilities in respect of pension funds 223 221
Loans in respect of pension funds
Net release of taxed undisclosed reserves
2,708 3,646
Release of employer contribution reserves, insurance fund 0 192
Release of employer contribution reserves, staff welfare foundation 0 146
Total 0 338
Own shares
in number of shares
Value as of January 1 3,334 0
Purchase of 1,666 shares 1,666 3,334
Value as of December 31 5,000 3,334
in CHF
Value as of January 1 1,102,269 0
Purchase of 1,666 shares 806,118 1,102,269
Value as of December 31 1,908,387 1,102,269
Major shareholders under Art. 663 c CO
See page 36.
19

Report of the group auditors to the General Meeting of Schulthess Group AG, Wolfhausen
As auditors of the group, we have audited the consolidated financial statements (balance sheet, income statement and
notes) of Schulthess Group AG for the year ended December 31, 1999.
These consolidated financial statements are the responsibility of the Board of Directors. Our responsibility is to express an
opinion on these consolidated financial statements based on our audit. We confirm that we meet the legal requirements
concerning professional qualification and independence.
Our audit was conducted in accordance with auditing standards promulgated by the profession, which require that an audit
be planned and performed to obtain reasonable assurance about whether the consolidated financial statements are free
from material misstatement. We have examined on a test basis evidence supporting the amounts and disclosures in the
consolidated financial statements. We have also assessed the accounting principles used, significant estimates made and
the overall consolidated financial statement presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the consolidated financial statements give a true and fair view of the financial position, the results of
operations and the cash flows in accordance with the Accounting and Reporting Recommendations (ARR) and comply with
the law and the accounting provisions as contained in the Listing Rules of the Swiss Exchange.
We recommend that the consolidated financial statements submitted to you be approved.
PricewaterhouseCoopers AG
PETERHANS René MIGLIARETTI Silvio
Zurich, March 7, 2000
20

Financial review Schulthess Group AG
21

Balance sheet
in CHF 31.12.99 31.12.98
Assets
Cash 1,708,145 3,844,063
Marketable securities 1,908,387 1,130,543
Accounts receivable from Group companies 1,500,000 20,000
Other receivables 547,257 700,551
Prepaid expenses 152,000 19,000
Current assets 5,815,789 5,714,157
Financial investments 35,794,001 33,494,001
Fixed assets 35,794,001 33,494,001
Total assets 41,609,790 39,208,158
Liabilities and shareholders’ equity
Accounts payable to Group companies 0 0
Accrued expenses 50,000 124,805
Provisions 2,728,800 1,607,500
Loans from Group companies 0 0
Liabilities 2,778,800 1,732,305
Share capital 8,500,000 8,500,000
Reserve for own shares 1,908,387 1,102,269
Reserves 21,565,679 22,071,797
Retained earnings: 6,856,924 5,801,787
Carried forward from previous year 2,314,287 3,544,932
Net profit 4,542,637 2,256,855
Shareholders’ equity 38,830,990 37,475,853
Total liabilities and shareholders’ equity 41,609,790 39,208,158
22

Income statement
in CHF 1999 1998
Management fees 900,000 900,000
Income of know-how transfer as part of joint venture 120,000 1,804,800
Income on holdings 6,000,000 2,000,000
Financial income 98,920 85,431
Total income 7,118,920 4,790,231
Financial expenses 41,063 190,604
Depreciation 1,200,000 1,000,000
Other operating expenses 1,102,443 780,395
Taxes 232,777 562,377
Total expenses 2,576,283 2,533,376
Net profit 4,542,637 2,256,855
23

Notes to the financial statements 1999
Major holdings
Company Nominal capital Percentage held
24
1999 1998
Schulthess Maschinen AG, Bubikon ZH CHF 1,500,000 100% 100%
Merker AG, Baden-Dättwil AG CHF 500,000 100% 100%
Novelan Ltd., Dällikon ZH CHF 1,250,000 100% 0%
Querop Handels AG, Root LU CHF 1,000,000 100% 100%
Querop Lager AG, Root LU CHF 50,000 100% 100%
Wamatec SA, Lamone TI CHF 100,000 100% 100%
Schulthess Maschinen GmbH, A-Vienna ATS 4,000,000 100% 100%
Wuxi Little Swan-Schulthess Washing
Machinery Co. Ltd., Wuxi (China)
USD 6,000,000 25% 25%
Own shares
in number of shares 1999 1998
Value as of January 1 3,334 0
Purchase of 1,666 shares 1,666 3,334
Value as of December 31 5,000 3,334
in CHF
Value as of January 1 1,102,269 0
Purchase of 1,666 shares 806,118 1,102,269
Value as of December 31 1,908,387 1,102,269
Major shareholders
See page 36.
Proposed allocation of retained earnings
Proposal of the Board of Directors
in CHF 1999 1998
Carried forward from previous year 2,314,287 3,544,932
Net profit 4,542,637 2,256,855
Retained earnings 6,856,924 5,801,787
Dividends (CHF 16.– per share) 3,400,000 3,187,500
Allocation to the reserve 300,000 300,000
Carried forward to next year 3,156,924 2,314,287

Report of the statutory auditors to the General Meeting of Schulthess Group AG, Wolfhausen
As statutory auditors, we have audited the accounting records and the financial statements (balance sheet, income
statement and notes) of Schulthess Group AG for the year ended December 31, 1999.
These financial statements are the responsibility of the Board of Directors. Our responsibility is to express an opinion on
these financial statements based on our audit. We confirm that we meet the legal requirements concerning professional
qualification and independence.
Our audit was conducted in accordance with auditing standards promulgated by the profession, which require that an audit
be planned and performed to obtain reasonable assurance about whether the financial statements are free from material
misstatement. We have examined on a test basis evidence supporting the amounts and disclosures in the financial
statements. We have also assessed the accounting principles used, significant estimates made and the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the accounting records and financial statements and the proposed appropriation of available earnings comply
with the law and the company’s articles of incorporation.
We recommend that the financial statements submitted to you be approved.
PricewaterhouseCoopers AG
PETERHANS René MIGLIARETTI Silvio
Zurich, March 7, 2000
25

Corporate philosophy
1. Concentration on own strong points and openness for
new opportunities
The Schulthess Group has been manufacturing washing machines
for almost a century. It has nowadays a high degree
of competence in the development, manufacture and
marketing of washing machines and dryers for the
household and for semi-professional applications, as well as
of machines for commercial laundries. The company wants
to continue to concentrate on its core competence, but to
keep its options open for suitable new activities on the
basis of market developments and market opportunities in
its main markets.
2. Growth strategy
The Schulthess Group professes its faith in a strategy of
growth. In this it follows both the path of internal growth
(particularly through the expansion of export activities) and
the opportunity of a growth through acquisitions or through
diversification into new fields of activities. The involvement
by the Schulthess Group in China, the Wuxi Little Swan-
Schulthess Machinery Co. Ltd. joint venture which produces
washing extractors, dryers and mangles for the rapidly
growing Chinese commercial market and for further southeast
Asiatic countries is to be consistently expanded.
3. Niche strategy
The Schulthess Group pursues a niche strategy, concentrating
on markets which have a considerable potential but are
uninteresting for competitors with large production capacities.
It canvasses these markets with innovative products.
One example for this is the Spirit topline generation for the
semi-professional markets, such as, for instance, the multidwelling
house, launderettes, small commercial businesses,
etc. The Schulthess products for the household and the
commercial machines for hotels, homes and hospitals may
justifiably be included among the niche products.
4. Comprehensive solutions
The Schulthess Group is active in the development, production
and marketing of washing machines, dryers and
laundry machines. However, the markets increasingly expect
26
comprehensive solutions including the products and
appropriate services. Schulthess will therefore expand
its range of services (such as the services offered by the
after-sales service organisations, the subscription services
or the full service in dealings with real estate companies)
to deal specifically with this.
5. Quality
The main focus of the work of all employees in the
Schulthess Group companies and sectors is the endeavour
to achieve high quality. It is seen not only as the
proverbial Schulthess product quality, but is considered
as the maxim for acting for the work of each individual.
The company will therefore also implement certification
in quality management in accordance with ISO 9001.
6. Consistent environmental protection
Within the scope of its overall activity the Schulthess
Group makes an active contribution towards environmental
protection. Both the production and disposal
processes, as well as its products, of course, comply
with the latest ecological requirements. By fulfilling ISO
norm 14001, the Schulthess Group wants to prove the
high quality of its environmental management.
7. Clear declaration of loyalty to Switzerland
The Schulthess Group declares its loyalty to the production
location Switzerland because here it can count on
more than averagely motivated, flexible and willing employees.
In addition, it profits from the high level of
education which is decisive for the excellent quality of
products and services.
8. On course for profit
Over the past few years, the Schulthess Group has continuously
increased the profit. With its growth and niche
strategy, its active utilisation of synergies and the launching
of new products, it wants to increase profitability
even further and create additional added value for its
employees and shareholders.

Production philosophy
Schulthess endeavours to achieve the greatest possible
flexibility, productivity, quality and readiness for delivery in
keeping with the market in its production of washing
machines and dryers.
Thanks to just-in-time production, Schulthess is in a position
to meet these requirements optimally. Goods are produced
on principle only to order. The sequences and working
times in production are in accordance with the orders
received. The production of parts in the island principle
manufactures those components which are directly required
in each case to meet orders. Accordingly, the finished product
stores are limited to products which are directly awaiting
delivery. The stocks of material for production are also
kept to a minimum.
A further prerequisite for the greatest possible productivity
is the “same part” philosophy. The objective is to employ
the same components in as many products as possible.
Schulthess products are designed on a modular basis in a
construction kit form. This system is not only of importance
for economic viability, but also considerably simplifies the
whole after-sales service work.
Products
The Schulthess Group develops, manufactures and sells
washing machines and dryers for three customer segments.
The household segment, which is the largest in terms of
both volume and sales, comprises washing machines and
tumble-dryers for individual and shared used in single and
28
The manufacture of each individual product is, of course,
accompanied by a comprehensive system of quality checks.
Schulthess has delegated the responsibility for quality during
the production process to the respective production
islands so that quality faults can be prevented already in
the part production. At the end of the chain, each appliance
and each machine is subjected to an exact operating and
final check.
The level of training and the readiness for action of the employees
at all levels are decisive for the high quality. With
internal training courses, as well as with experience and
co-ordination groups it is ensured that the Schulthess employees
can fulfil their tasks in an optimum manner.
Schulthess does its part for the new recruits with the annual
training of a large number of commercial or technical apprentices.
multi-family homes. The company’s medium-sized light
commercial products are designed for use by small
commercial operations. The industrial segment
manufactures washer-extractors and dryers for hotels,
residential homes and hospitals.

Washing machines Tumble-dryers
Household Single homes 5 kg Spirit 5150 Spirit TC 5350 air condenser system
Spirit 5060 Spirit TC 5300 air condenser system
Spirit 5000 Spirit T 5250 air exhaust
Spirit T 5200 air exhaust
Trophy WL Trophy TC
Multi-family homes 6 kg Spirit topline 6150 Spirit topline TC 6350 water
condenser system
Spirit topline T 6250 air exhaust
5 kg Spirit topline 5650 Utilization of the 6-kg tumble-dryer
Small commercial 6 kg Spirit topline 6150 Spirit topline TC 6350 water
operations condenser system
Spirit topline T 6250 air exhaust
7.5 kg Spirit topline 7500
9.0 kg Spirit topline 9000
Washer-extractors Commercial dryers Mangles
Industrial 10 kg WSI 100 TI 250 MS 20 / 100
12.5 kg WSI 125 MS 30 / 140, MS 30 / 180
15 kg WSI 150 TI 375 MS 50 / 180, MS 50 / 210
20 kg WSI 200 TI 500 MS 60 / 180, MS 60 / 210
25 kg WSI 250 M 350–2/2700, M 500–2/3000
30 kg WSI 300 TI 750
29

The Schulthess Group’s objectives
1. Expansion of the strong market position in Switzerland
• Expansion of the niche range Spirit topline by the washing machines 7500 and
9000 and the laundry dryer 9000
• Further rationalization measures and investments in production in order to
implement automated manufacture in sheet metal machining
• Enlargement of the after-sales services to include a Full Service organisation and a
multi-brand service
• Further expansion of the heating technology and air conditioning/ventilation sectors
2. Opening up of further export markets with Schulthess agencies and private label
co-operation agreements
• Expansion of the network of Schulthess agencies, especially in Germany, Belgium,
Italy and in Eastern European countries
• Exploitation of further private label distribution partnerships, in particular in the
European area
3. External growth
• Introduction of co-operation agreements with appropriate partner companies in the
field of semi-professional and commercial laundry machines
• Market launch of joint-venture products in European markets and overseas.
• Expansion of the range produced in China through new products.
• Continuation of the acquisition policy adopted.
30

Key figures at a glance
1995–1999
Income statement (in CHF million) 1999 1998 1997 1996 1995
Sales 124.587 114.408 117.025 116.344 112.445
Operating cash flow EBITDA 18.398 17.089 12.655 10.971 7.910
as % of sales 14.8 14.9 10.8 9.4 7.0
Operating profit EBIT 14.741 12.901 8.642 6.503 3.886
as % of sales 11.8 11.3 7.4 5.6 3.5
Net profit 10.346 10.136 5.481 3.672 2.017
as % of sales 8.3 8.9 4.7 3.2 1.8
Balance sheet (in CHF million) 1999 1998 1997 1996 1995
Total liabilities and
shareholders’ equity 104.698 93.829 83.982 88.685 92.049
Shareholders’ equity 47.707 40.551 17.612 14.100 10.402
Equity ratio (in %) 45.6 43.2 21.0 15.9 11.3
Capital investments
as % of operating cash flow
5.965 4.605 5.871 4.079 3.328
EBITDA 32.4 26.9 46.4 37.2 42.1
Staff 1999 1998 1997 1996 1995
Number of employees 480 448 471 522 538
Sales per employee 259,556 255,375 248,461 222,881 209,006
Gross profit per employee 161,415 158,926 149,928 132,703 125,569
33

Information for investors
Capital structure
The share capital is CHF 8,500,000 and is divided into
212,500 registered shares with a par value of CHF 40 each.
Listing
All Schulthess Group shares are listed on Swiss Exchange.
Corporate financing
Regular operating investments are to be financed from
current cash flow, but as a rule this is not to involve the use
of more than 50% of current cash flow.
Distribution of profits
The company has a profit-related dividend policy.
Shareholding restrictions
The percentage of voting rights held by each shareholder is
limited to 5% of the total number of shares reported in the
commercial register. An exception to this rule are so-called
“grandfathers”, shareholders who held shares in the
Schulthess Group prior to the initial public offering. Ownership
of shares by foreign investors is not subject to any
limitation.
Opting out
The company has neither opting-out nor opting up clause.
36
Major shareholders
The following shareholders own more than 5% of the
registered shares (31.12.99):
Rudolf Kägi 11.52%
Power Re. Ltd. 10.13 %
Barbara Rutz 9.48%
Other members of the Rutz family (total) 13.27%*
Andrea Malär 5.75%
* No individuals with more than 5%
Stock option plan
The company is planning to introduce a management
incentive programme in the medium term.
Remuneration of directors
In 1999, members of the Board of Directors of Schulthess
Group AG together received a total of CHF 210,000 to defray
their expenses.
Investor Relations
Max M. Müller
Chief Financial Officer
Schulthess Group AG
Landstrasse 37
CH-8633 Wolfhausen
Switzerland
Tel. ++41 (0)55 253 51 11
Fax ++41 (0)55 253 54 80
E-mail direktion@schulthess-group.com
Coming events
April 11, 2000: Annual General Meeting in Wolfhausen ZH,
Switzerland
August 8, 2000: Publication of 2000 Semi-Annual Report

Share statistics
Schulthess registereds at CHF 40 nominal
Security ID number: 253 887
Number of shares
31.12.1999
212,500
Closing price (in CHF) 489
High/low (in CHF) 489/369
Dividend (in CHF)* 16.00
Share capital (in CHF million) 8.500
Market capitalization (in CHF million) 103.913
*Motion to be put to 2000 AGM
Key figures per share
Net earnings per share (in CHF)
31.12.1999
48.69
Price/earning ratio 10.04
EBITDA per share (in CHF) 86.58
Price/EBITDA ratio 5.65
Consolidated equity capital (in CHF million) 47.707
Consolidated equity capital per share (in CHF) 224.50
Price/equity ratio 2.18
Return on equity (in %) 23.44
37
Comparative performance of Schulthess shares
(up to February 2000)
600
550
500
450
400
350
Jan. Feb. Mar. April
May
June
July
Sept.
Further information
You can find out the latest share price and further
information on the company and its business performance
at www.schulthess-group.com.
Aug.
Swiss Performance Index (SPI)
Schulthess Group
Oct.
Nov.
Dec.
Jan.
Feb.

Board and Management
Schulthess
Maschinen AG
Wolfhausen
Manager
Rudolf Kägi
Board
Rudolf Kägi, Chairman/Delegate
Dr. Peter R. Isler, Vice-chairman
Attorney-at-law, partner in the Zurich law office
Niederer Kraft & Frey, member of the board of
Bank Leu AG, Industrieholding Cham AG and Kardex AG
Prof. Dr. Christian Belz, member
Professor of Marketing and Director of the Research
Institute for Selling and Commerce at the University of
St. Gallen (HSG), member of the board of Jelmoli Holding AG,
Unilever (Switzerland) AG and WRH Walter Reist Holding AG
Andrea Malär, member
Management consultant
Merker AG
Baden-Dättwil
Manager
Hans-Jürg Schwendener
Paul O. Rutz, member
Chairman of the Board of Compagnie Grainière SA
Board
Chairman/Delegate
Rudolf Kägi
Vice-chairman
Dr. Peter R. Isler
Novelan AG
Dällikon
CEO
Rudolf Kägi
CFO
Max M. Müller
Manager
Fritz W. Bischofberger
40
Members
Prof. Dr. Christian Belz
Andrea Malär
Paul O. Rutz
Querop Handels AG
Baden-Dättwil
Manager
Roberto Persici
Management
Rudolf Kägi, DOB 1941
Chief Executive Officer
Max M. Müller, DOB 1962
Chief Financial Officer
Schulthess
Maschinen GmbH, Vienna
Manager
Heinz Cibulka

Milestones
1999 Takeover of Novelan AG, Dällikon
Commencement of production in the Wuxi Little Swan-Schulthess joint venture
1998 Opening of the Schulthess Group to the public
Founding of the joint venture with the Wuxi Little Swan Company (China)
1997 Forming of the Schulthess Group AG as the holding for Schulthess companies
1996 150 th anniversary and renaming of the Maschinenfabrik Schulthess AG
into Schulthess Maschinen AG
1995 Hiving off of the Maschinenfabrik Hildebrand AG, Asdorf
1994 Introduction of flow production (just-in-time production)
1994 Co-operation agreement with the German Böwe Passat GmbH company
1991 Takeover of Merker AG, Baden
1988/89 Formation of the Schulthess Group from the Maschinenfabrik Schulthess AG,
Querop Handels AG and Hildebrand AG
1988 Separation from the family shareholders group by a management buyout
1987 Launch of the first washing machines with microprocessor control
1951 Production of Europe's first household washing machines
1949 Invention of punched-card controls for washing machines
1943 Transformation of the former general partnership into joint-stock company
1937 Move into factory buildings in Wolfhausen, Canton of Zurich
1904 Manufacture of the first washing appliance
1890 Takeover of Ornamentfabrik Künzli & Co. in Zurich
1845 Founding of the Bauspenglerei Kaspar Schulthess in Zurich
41

Schulthess Group companies
Schulthess Group AG
Landstrasse 37
CH-8633 Wolfhausen
Switzerland
Tel. ++41 (0)55 253 51 11
Fax ++41 (0)55 253 54 80
E-mail direktion@schulthess-group.com
www.schulthess-group.com
Schulthess Maschinen AG
Landstrasse 37
CH-8633 Wolfhausen
Switzerland
Tel. ++41 (0)55 253 51 11
Fax ++41 (0)55 253 54 70
E-mail sales.ch@schulthess-maschinen.com
www.schulthess-maschinen.com
Merker AG
Täfernstrasse 4
CH-5405 Baden-Dättwil
Switzerland
Tel. ++41 (0)56 200 71 71
Fax ++41 (0)56 200 72 22
E-mail info@merker.ch
www.merker.ch
42
Novelan AG
Buchserstr. 31
CH-8108 Dällikon
Tel. ++41 (0)1 847 48 11
Fax ++41 (0)1 847 48 10
Querop Handels AG
Täfernstrasse 4
CH-5405 Baden-Dättwil
Switzerland
Tel. ++41 (0)56 200 73 73
Fax ++41 (0)56 200 73 00
Schulthess Maschinen GmbH Österreich
Hetzendorferstr. 191
A-1130 Vienna
Austria
Tel. ++43 (0)1 803 98 00 20
Fax ++43 (0)1 803 98 00 30
Wuxi Little Swan-Schulthess Washing Machinery Co. Ltd.
67 Huiqian Road, Wuxi
Jiangsu China 214035
Tel. ++86 510 3704 003 2185
Fax ++86 510 3703 143

Schulthess Maschinen AG
Schulthess Maschinen AG, Wolfhausen, develops, produces
and markets washing machines and dryers under
its own name Schulthess for the household, small businesses
and commerce. In addition, in co-operation with
leading undertakings, such as Electrolux and Siemens,
and export sales partners, it manufactures appliances
in the semi-professional range. In the commercial sector,
there are co-operation agreements with German
companies for wet cleaning and commercial machines.
The Schulthess Maschinen AG’s products are marketed
in Switzerland and in European countries in direct sales
and through the trade. The After Sales Service Switzerland
organization operates from three regional aftersales
service centres and five further branches.
Merker AG
Merker AG, located in Baden-Dättwil, trades in washing
machines, dryers and dishwashers marketed under the
Merker brand. They concentrate on direct sales to a
professional clientele, such as property administrators,
building co-operatives, general contractors or architects.
Its washing machines and tumblers produced by
Schulthess are used in multi-dwelling and single-family
houses. Merker and Schulthess act jointly in after-sales
service.
Novelan AG
The Novelan AG company, which has its head office in
Dällikon (Canton of Zurich) and was acquired by the
Schulthess Group in 1999, is active mainly in the
marketing and servicing of large electrical appliances
for the household (washing machines, tumblers, refrigerators
and freezers). It supplies both a professional
clientele in the real property sector and the trade. As a
service company active nationwide, it makes its mark
with a multi-brand policy. Further fields of activity of
the company are heating technology and airconditioning/ventilation
technology.
Querop Handels AG
The Querop Handels AG company domiciled in Baden-
Dättwil supplies hypermarkets and the specialist trade
in Switzerland with large electrical appliances for the
household. It sells a part of its range under its own
brand name Querop and as an importer represents
well-known foreign makes, such as Ariston or Indesit
from the Italian Merloni Group.
Schulthess Maschinen GmbH Austria
Schulthess Maschinen GmbH markets the washing
machines, dryers and commercial machines produced
in Switzerland in the large Austrian federal states (the
other federal states are canvassed by its marketing
partners). In particular it serves the semi-professional
and professional laundry markets and it has an efficient
after-sales service organization.
Wuxi Little Swan-Schulthess
Washing Machinery Co. Ltd.
Wuxi Little Swan-Schulthess Washing Machinery Co.
Ltd. develops, produces and markets washing extractors
and commercial dryers for the rapidly growing
Chinese and adjoining Asian markets. It is 25 per cent
owned by the Schulthess Group. The other 75 per cent
of the share capital is held by Wuxi Little Swan, China’s
leading household appliance manufacturer.

Schulthess Group AG
Landstrasse 37
CH-8633 Wolfhausen
Tel. ++41 (0) 55 253 51 11
Fax ++41 (0) 55 253 54 80
e-mail direktion@schulthess-group.com
www.schulthess-group.com
Conception and editing:
Wirz Investor Relations AG, Zurich
Design and setting:
Giger&Partner, Zurich
Translation:
bmp translations, Basle/Zurich
Photos:
Ursula Markus, Zurich
Schulthess Maschinen AG
Lithos and printing:
Druckerei Feldegg AG, Zollikerberg
This report also appears in English.
3.2000.500.e