Abridged report 2016

2

The most important points in brief

31.12.2016 31.12.2015

Total of balance sheet (million CHF) 1157 1168

Performance 3.87% 2.00%

Performance Benchmark 4.45% 3.17%

Coverage ratio 111.11% 115.01%

Actuarial interest rate 2.25% 2.50%

Annual interest of savings capital 2.50% 2.50%

Minimal rate of interest according to BVG 1.25% 1.75%

Total affiliation contracts (more than 1 member) 30 25

Total actively insured persons 877 936

Total pension recipients 2690 2761

Cost transparency ratio 98.96% 98.31%

Administration expenses in % of the transparent asset investments

0.42% 0.40%

Administrative expenses per member (in CHF) 256.00 282.00

3

Excerpt from the Annual Report 2016

Economic environment During the course of the year, we were unexpectedly confronted with a

YES on the Brexit referendum and with Donald Trump as the new US Presi­dent. The markets responded temporarily, but soon came to terms with the news and focused on positive aspects.

Over the course of the year, the development of the interest rate situation was particularly volatile. At the beginning of the year, the return on ten­year Swiss federal government bonds was slightly negative, even dropping to –0.60 percent during the course of the year, but then recovered toward the end of the year to the level from the beginning year.

For several months there have been increasing signs that the Swiss real estate market has reached or in part even exceeded its zenith. Particularly with regard to commercial properties, there is a surplus in supply in some regions. After sixteen boom years that were driven, amongst other things, by high immigration and falling interest rates, this cooling down does not really come as a great surprise. Nevertheless, residential properties re­mained in favour among investors and benefited from value appreciations in 2016.

Investment activities At the end of the year, the assets amounted to 1.157 billion Swiss francs.

They are broadly diversified and invested both in Switzerland and abroad. Foreign currency risks are hedged on the basis of the strategic targets.

After deduction of the asset management costs, which are low in a market comparison, a pleasingly high overall return (performance) of 3.87 percent was achieved, which we can use to strengthen the capital base and for a good interest level.

Technical principles and coverage ratio As announced, Ascaro carried out the transition to the latest technical

principles (BVG 2015) at the end of 2016 and adopted the more cautious assessment of the pension commitments according to generation tables. Moreover, at the end of 2016, the overall interest rate situation was fac­tored in and the technical interest rate was reduced by a quarter of a per­centage point to 2.25 percent.

Due to this measure, the coverage ratio dropped to 111.1 percent. If one were to apply the basis for assessment from a year ago, the coverage ratio would even have increased to almost 117 percent. With these parameters, our pension foundation is in a solid and sustainable position.

4

Foundation Board, Commissions, Executive Board The term of office of the Foundation Board consisting of 12 members with

parity representation ended at the end of June. Roland Frey succeeded Hans Zimmermann as Chairman.

In addition to the usual statutory business, the Foundation Board’s agenda for the year under review included the discussion of a study on asset distribution (ALM study), the adoption of a slightly adapted investment strategy and the implementation of the legal requirements regarding the balancing of pension entitlements in the event of divorce after the pension is already being paid out.

During the course of 2016, five small enterprises decided to join Ascaro. In addition, as of 1 January 2017, Informaticon AG, Thun, with approximately 45 employees will join the circle of affiliated companies. Conversely, Sys­tems Assembling AG decided to switch to a new pension fund. Hence, ap­proximately 40 active insured members and pensioners left our pension foundation at the end of 2016.

OutlookThe economic outlook for the global economy has progressively improved over recent months. Simultaneously, however, the uncertainty regarding eco­nomic policy decisions is greater than ever. In light of important upcoming elections in the Netherlands, France and Germany, there are also considerable political risks in Europe. From a general point of view, we can expect increased volatility on the capital markets in 2017. And after the base effects of the oil price have dissipated, inflation may well report back after many years of hibernation. Thus there is no shortage of challenges. The revision of the pen­sion scheme (“Altersvorsorge 2020”), which is being pursued by the Federal Council, will enter the decisive phase in 2017. We anticipate ground­breaking parliamentary decisions, which could result in a comprehensive transforma­tion of the first and second pillar. We are curious about what is to come!The members of the Foundation Board and of the Executive Board will con­tinue to make every effort to master the coming challenges through for­ward­looking action and place the focus on the long­term financial stability of the foundation. All this with the objective of reliably securing the pensions of current and future generations.

Berne, February 2017

Ascaro Vorsorgestiftung

Roland Frey René ZauggChairman Managing Director

5

Balance sheets

Assets

(in CHF) 31.12.2016 31.12.2015

Investments 1 156 555 210.50 1 166 729 789.67

Cash 96 994 763.58 99 662 717.08

Receivables 2 834 236.65 3 795 510.41

Receivables from employers 1 143 872.35 1 365 860.95

Bonds (incl. mortgages) 225 106 089.75 225 858 678.15

Equities 261 056 657.92 249 490 130.61

Alternative investments 76 351 433.25 102 835 683.47

Real estate 493 068 157.00 483 721 209.00

Prepayments and accrued income 636 417.91 1 156 230.98

Total assets 1 157 191 628.41 1 167 886 020.65

Liabilities

(in CHF) 31.12.2016 31.12.2015

Liabilities 4 281 882.12 5 288 664.39

– Termination benefits and pensions 1 702 535.80 2 892 870.85

– Other liabilities 2 579 346.32 2 395 793.54

Accrued liabilities and differed income 419 671.55 415 653.22

Contribution reserve employers 5 110 940.42 3 770 425.10

Non actuarial provisions 70 000.00 70 000.00

Pensions liabilities and actuarial reserves 1 032 595 155.80 1 007 130 343.15

– Savings capital from actively insured persons 218 724 559.80 216 436 272.15

– Savings capital from pension recipients 768 075 435.00 719 848 683.00

– Actuarial reserves 45 795 161.00 70 845 388.00

Reserve for fluctuation in asset value 114 713 978.52 151 210 934.79

Foundation capital, non-committed funds,

Status as at 1st January 0.00 0.00

+/– Income surplus/expense surplus 0.00 0.00

Status as per 31 December 0.00 0.00

Total liabilities 1 157 191 628.41 1 167 886 020.65

6

Income statement

(in CHF) 2016 2015

Ordinary and other contributions and transfers-in 17 455 337.32 16 738 379.40

Employees contributions

– Savings contributions 6 297 682.40 6 487 684.70

– Risk contributions 821 778.00 1 010 979.10

Employers contributions

– Savings contributions 6 224 584.10 6 426 721.60

– Risk contributions 991 788.15 1 249 485.30

Withdrawal from provision for financing of contributions –632 982.65 –1 087 393.60

Savings instalments (conversion rate) 1 231 992.15 1 676 223.20

Withdrawal from provision for financing of contributions

–1 231 992.15 –1 676 223.20

Savings transitional arrangement (art. 8.8 pension regulations)

422 278.95 n.v.

Withdrawal from reserves (art. 8.8) –422 278.95 n.v.

One­time payments and purchase amounts 1 842 582.05 2 450 902.30

Payments into the employer contribution reserves 1 909 905.27 200 000.00

Entry lump sum transfers 11 728 927.40 8 122 806.55

Entry lump sum transfers 11 257 040.90 7 777 852.70

Deposits by takeover of insured persons into:

– reserve for fluctuation in asset value 0.00 7 134.80

– Savings capital from pension recipients 6 960.00 16 740.00

Reimbursement of withdrawals for home ownership/divorce

464 926.50 321 079.05

Total inflow from contributions and entry lump sum transfers

29 184 264.72 24 861 185.95

Regulatory benefits –65 835 504.90 –67 193 235.75

Retirement pensions –49 613 846.40 –50 591 732.05

Survivor’s pensions –12 674 756.90 –12 671 678.40

Disability pensions –2 042 426.60 –1 981 255.60

Other regulatory benefits –41 722.00 –911 699.65

Lump­sum payments on retirement –1 462 753.00 –1 036 870.05

Non regulatory benefits –99 544.00 –97 314.05

Voluntary benefits of the fund –99 544.00 –97 314.05

Termination benefits –17 935 722.50 –19 492 808.80

Termination benefits for leavers –16 615 552.05 –17 779 542.45

Handover of actuarial reserves –61 952.55 –130 776.40

Withdrawals for home ownership/divorce –1 258 217.90 –1 582 489.95

Total outflow for benefits and withdrawals –83 870 771.40 –86 783 358.60

7

(in CHF) 2016 2015

Decrease/increase in insurance capital, actuarial reserves and contribution reserves

–26 741 735.27 31 323 432.60

Dissolution/formation of insurance capital of active insured

2 885 927.40 10 187 171.00

Dissolution/formation of pensioners insurance capital –48 226 752.00 28 036 413.00

Decrease/increase in actuarial reserves 25 050 227.00 –2 606 418.00

Interest on retirement savings capital –5 174 215.05 –5 181 127.00

Dissolution/formation of employer contribution reserves

–1 276 922.62 887 393.60

Insurance costs –20 112.70 –39 954.85

Contribution to the LOB Guarantee Fund –20 112.70 –39 954.85

Net result from insurance activities –81 448 354.65 –30 638 694.90

Net return 50 761 442.10 27 531 635.58

Net return on liquid assets and money market demands –2 269 869.13 4 830 477.35

Net return on bonds (incl. mortgages) 2 529 589.42 –1 326 064.65

Net return on equities 13 557 357.25 2 127 374.35

Net return on alternative investments 8 069 022.56 –4 224 034.29

Net return on real estate 28 875 342.00 26 123 882.82

Interest expenses –126 454.55 –22 075.90

Administration expenses for investments –4 769 359.16 –4 603 617.61

Total net return on investments 45 865 628.39 22 905 942.07

General administration –914 230.01 –1 043 446.82

General administration expenses –751 237.61 –866 265.80

Marketing and advertising –97 108.20 –114 745.70

Auditors and pension actuary –54 325.50 –47 840.32

Supervisory authorities –11 558.70 –14 595.00

Income surplus (+)/Expenses surplus (–) before releasing from/adding to fluctuations reserves

–36 496 956.27 –8 776 199.65

Decrease (+)/increase (–) in value fluctuation reserves 36 496 956.27 8 776 199.65

Income surplus (–)/Expenses surplus (+) 0.00 0.00

8

Organisation

Governing body

Foundation Board Employer representatives

Function Mandate as of Elected until

Frey Roland Member/Chairman

01.03.2015/ 01.07.2016

30.06.2020

Brudermann Claudia Member 01.11.2010 30.06.2016

Howald Rouven Member 01.12.2015 30.06.2020

Lack Daniel Member 31.10.2011 30.06.2020

Wilson Bianka Member 01.10.2013 30.06.2020

von Winterfeld Ernst Member 01.05.2015 30.06.2020

Zimmermann Hans Chairman/Member

24.10.2005/ 01.07.2016

30.06.2020

Foundation BoardEmployee representatives

Function Mandate as of Elected until

Rüegsegger Markus Vice­chairman 22.10.2013/ 01.04.2015

30.06.2020

Binz Walter Member 01.07.2011 30.06.2020

Fürst Thomas Member 01.07.2009 30.06.2016 (withdrawal)

Gross Roger Member 01.08.2011 30.06.2020

Neuenschwander Kurt Member 01.07.2016 30.06.2020

Widrig Andreas Member 01.07.2008 30.06.2020

Vacant Member 04.05.2017 30.06.2020

Insured persons

Delegates

Auditors

Pension actuarySupervision

Insurance Management Capital Investments/ Accounting

Executive Board

Foundation Board

Committees: Finance,

Real Estate/Mortgage, Regulations, HR

Real Estate

Affiliated entreprises

9

Executive Board Function

Zaugg René Managing director, Insurance management

Guntern Willy Deputy managing director, Capital investments/Accounting

Zingg Marlene Member, Head of Real Estate

Assembly of delegatesThe Assembly of Delegates is responsible for fostering close ties between the Foundation Board and the insured members. The delegates are elected by and from among the insured members for a period of four years (current term of office 2016–2020). The Assembly of Delegates is responsible for the election of the employee representatives on the Foundation Board and may submit proposals to the Foundation Board and seek information from the Foundation Board about general questions pertaining to the Foundation.

Pension actuary, Auditors and Supervision

Function Mandatary

Pension actuary ABCON AG, Bern, Martin Schnider

Auditors PricewaterhouseCoopers AG, Bern, Johann Sommer

Supervision Bernische BVG­ und Stiftungsaufsicht (BBSA), Bern (Ordnungs­Nr. BE.0221)

10

Actively insured persons pensioners

Development of the coverage ratio since 2008

0

1000

2000

3000

4000

5000

2016 2012 2013 2014 2015

1329 1052

992 936 877

3011 2938 2863 2761 2690

95.0%

100.0%

105.0%

110.0%

115.0%

120.0%

2008 2009 2010 2011 2012 2013 2014 2015 2016

99.1%

105.6%

110.1%

104.5%

104.7%

111.6%

115.4% 115.0%

111.1%

3.5% 3.5% 3.5% 3.5% 2.5% 2.5% 2.5% 2.5% 2.25%

0

1000

2000

3000

4000

5000

2016 2012 2013 2014 2015

1329 1052

992 936 877

3011 2938 2863 2761 2690

95.0%

100.0%

105.0%

110.0%

115.0%

120.0%

2008 2009 2010 2011 2012 2013 2014 2015 2016

99.1%

105.6%

110.1%

104.5%

104.7%

111.6%

115.4% 115.0%

111.1%

3.5% 3.5% 3.5% 3.5% 2.5% 2.5% 2.5% 2.5% 2.25%

Pensioners

Actuarial interest rate

Actively insured persons

Coverage ratio

11

Asset structure

Development of the performance

The comprehensive Annual Report available in the German language only can be downloaded at www.ascaro.ch

8.8%

13.5%

0.0%

5.9%

7.8%

11.6%

3.2% 6.6%

42.6%

0%

2%

1%

5%

4%

3%

7%

6%

8%

9%

10% 9.61%

7.29%

5.14%

2.00%

3.87% 3.66%

7.40%

5.72%

8.09%

3.17%

4.45%

5.22% 5.55% 5.75%

2012 2013 2014 2015 2016

Ascaro Vorsorgestiftung Benchmark

3 years annualized

5 years annualized

Cash and receivables CHF bonds (incl. mortgages)

CHF bonds (long maturities)

Foreign currency bonds (hedged)

Equities Switzerland

Equities world (hedged) Equities Emerging

Markets

Alternative Investments

Real Estate

8.8% 13.5%

0.0%

5.9%

7.8%

11.6%

3.2% 6.6%

42.6%

0%

2%

1%

5%

4%

3%

7%

6%

8%

9%

10% 9.61%

7.29%

5.14%

2.00%

3.87% 3.66%

7.40%

5.72%

8.09%

3.17%

4.45%

5.22% 5.55% 5.75%

2012 2013 2014 2015 2016

Ascaro Vorsorgestiftung Benchmark

3 years annualized

5 years annualized

Cash and receivables CHF bonds (incl. mortgages)

CHF bonds (long maturities)

Foreign currency bonds (hedged)

Equities Switzerland

Equities world (hedged) Equities Emerging

Markets

Alternative Investments

Real Estate

Ascaro Vorsorgestiftung | Belpstrasse 37 | 3000 Bern 14 | T +41 31 303 34 40 | F +41 31 303 34 60 | www.ascaro.ch