Belimo Holding Ag · SIX:BEAN
Belimo — FY2023 Earnings Presentation
43 slides from Belimo's earnings presentation, Mar 4, 2024
Slide 1: Media and Financial Analysts Conference
Media and Financial Analysts Conference BELIMO Holding AG Financial Performance 2023 of the Belimo Group Zurich, March 4, 2024
Slide 2: Agenda
Agenda Welcoming Remarks and Introduction 1 Lars van der Haegen, CEO Financial Performance 2023 2 Dr. Markus Schürch, CFO Deep Dive: Logistics and Customization Agenda 3 Marcel Schütz, Head of Group Division Logistics and Customization Market Trends and Outlook 2024 4 Lars van der Haegen, CEO Q&A 5
Slide 3: CEO Keynote: What Made 2023 a Special Year
Welcoming Remarks and Introduction CEO Keynote: What Made 2023 a Special Year Supporting Anticipated surge Demanding Normalizing Market megatrends in the renovation economic supply chain sector development Belimo Capacity expansion External launch Green Factory Employee survey and strategic of Retro
Slide 4: Pursuing our Growth Path in a Demanding Environment
Welcoming Remarks and Introduction Pursuing our Growth Path in a Demanding Environment Strong Financial Successful Growth Outlook and Performance Strategy Execution Priorities for 2024 › Net Sales of CHF 859 million and › Despite demanding economic › For 2024, we expect a sales growth 7.2% sales gro
Slide 5: Agenda
Agenda Welcoming Remarks and Introduction 1 Lars van der Haegen, CEO Financial Performance 2023 2 Dr. Markus Schürch, CFO Deep Dive: Logistics and Customization Agenda 3 Marcel Schütz, Head of Group Division Logistics and Customization Market Trends and Outlook 2024 4 Lars van der Haegen, CEO Q&A 5
Slide 6: Net Sales Development
Financial Performance 2023 Overview Sales 2023 Net Sales YoY Net Sales Growth YoY Net Sales Growth Net Sales Development in CHF million 2023 859 in CHF in %, 2023 in LC in %, 2023 2022 847 858.8 2021 2020 661 765 1.4 7.2 2019 693 Net Sales by Market Region Net Sales by Business Line Regions & Busine
Slide 7: Net Sales Composition
Sales Development 2023 Overview Sales 2023 Net Sales Bridge (in % and CHF - compared to prior year) Volume Price Mix and FX Total Net Sales Growth others1) Net Sales Composition -6.3 9.0 4.5 -5.8 1.4 ⬊ ⬈ ⬈ 1) Customer mix, product mix, ⬊ rebates, and other effects. Negative volume effect due Positiv
Slide 8: Sales Review by Region – Overview
Sales Development 2023 Sales Review by Region – Overview Growth Rates in Local Currencies in % In % of Total Net Sales 6.4 EMEA EMEA 43.8 Solid sales due to a strong focus on Increasing focus on energy efficiency RetroFIT+ opportunities. and renovations. 7.7 Americas Americas 43.5 Market share gains
Slide 9: Sales Review by Region
Financial Performance 2023 Sales Review by Region EMEA Americas Asia Pacific +6.4% +7.7% +2.2% +1.5% 391.5 375.9 396.6 367.9 368.3 373.8 +8.2% -1.5% 110.7 119.8 109.1 2022 2023 2023 2022 2023 2023 2022 2023 2023 CHF LC CHF CHF LC CHF CHF LC CHF Net Sales in CHF million, LC adjusted at pervious year
Slide 10: Strong Operating Results
Financial Performance 2023 Strong Operating Results EBIT and EBIT Margin EBIT in CHF million, and EBIT Margin in % 19.0% 18.0% 17.8% Robust profitability despite 17.9% demanding economic environment, 16.3% inflation trends, and adverse FX. Normalization of material costs after having increased i
Slide 11: Staff Buildup in Line with Growth Strategy
Financial Performance 2023 Staff Buildup in Line with Growth Strategy Personnel Expenses in CHF million and in % of net sales 28.2% 27.5% 27.1% 27.2% 29.0% Personnel expenses increased by 4.3% to CHF 242.5 million 232.5 242.5 (PY CHF 232.5 million). 207.1 188.3 192.0 96 additional FTEs, enabling
Slide 12: Expanding Technological Leadership
Financial Performance 2023 Expanding Technological Leadership R&D Costs in CHF million and in % of net sales 8.9% 8.1% 7.3% 7.3% 8.1% Increase of R&D expenses to CHF 76.0 million (PY CHF 62.1 million) to expand technological 76.0 62.1 leadership and ensure long-term 56.0 50.7 53.8 success. Relat
Slide 13: Higher Net Income
Financial Performance 2023 Higher Net Income Net Income Net Income in CHF million, and Net Income Margin in % Net income of CHF 136.8 million, 11.5% above PY (CHF 122.7 million); 15.9% 15.9% of net sales. 17.5% 15.1% 14.5% Income taxes of CHF 5.6 million (PY CHF 24.8 million) positively impacted
Slide 14: Cash Flow from Operating Activities
Financial Performance 2023 Cash Flow from Operating Activities Cash Flow in CHF million Operating cash flow of CHF 157.0 million (PY CHF 112.9 million) positively affected by a decline in net 153.0 157.0 working capital in the reporting period. 135.9 Free cash flow of CHF 135.9 million 125.4 125
Slide 15: Lower 2nd Half of the Year
Financial Performance 2023 Lower 2nd Half of the Year 2. half-year in CHF million 1. half-year proforma* Total Net sales 448.4 410.4 858.8 Material expenses incl. changes in inventories -178.1 -160.7 -338.8 in % of net sales -39.7% -39.2% -39.5% Operating income (EBITDA) 102.2 86.1 188.3 in % of net
Slide 16: Sound Balance Sheet
Financial Performance 2023 Sound Balance Sheet Considering the term deposits of CHF 25.0 million in CHF million 31.12.2023 31.12.2022 reported under other current Cash and cash equivalents 110.8 86.8 assets at December 2022, Other current assets 279.0 327.3 Cash and cash equivalents Non-current as
Slide 17: Another Set of Strong Key Figures
Financial Performance 2023 Another Set of Strong Key Figures 2019 2020 2021 2022 2023 Net sales growth in local currencies 9.2% 0.0% 16.6% 11.9% 7.2% EBIT margin 17.9% 16.3% 19.0% 18.0% 17.8% Free cash flow in % of net sales 12.1% 14.1% 6.0% 1) 10.8% 1) 15.8% 1) Return on invested capital (ROIC) 27.
Slide 18: Proposing a Stable Dividend
Financial Performance 2023 Proposing a Stable Dividend The Board of Directors will propose a dividend of CHF 8.50 per share at the Annual General Meeting on March 25, 2024 (PY CHF 8.50). Based on the closing price of CHF 463.80 on December 29, 2023, this would result in a return of 1.8% per shar
Slide 19: Delivering Continued Strong Results
Financial Performance 2023 Delivering Continued Strong Results 2019 2020 2021 2022 2023 Earnings per share, in CHF 1) 9.85 7.05 9.41 9.99 11.14 Stock market price as at December 31, in CHF 1) 365 384 580 440 464 Dividend, in CHF 1) 7.50 7.50 8.50 8.50 8.50 2) Payout ratio 76.1% 106.4% 90.4% 85.1% 76
Slide 20: Agenda
Agenda Welcoming Remarks and Introduction 1 Lars van der Haegen, CEO Financial Performance 2023 2 Dr. Markus Schürch, CFO Deep Dive: Logistics and Customization Agenda 3 Marcel Schütz, Head of Group Division Logistics and Customization Market Trends and Outlook 2024 4 Lars van der Haegen, CEO Q&A 5
Slide 21: Deep Dive: Operations Capacity Expansion
Deep Dive: Operations Capacity expansion Belimo Added Values. More than just products… Belimo 2024 21
Slide 22: Why do customers choose Belimo?
Why do customers choose Belimo? Along with great products, we offer a great end-to-end customer experience Personal Highest level of Fastest lead times connection with customization in the industry industry experts Belimo 2024 22
Slide 23: We are where our customers need us
We are where our customers need us… with our 9 Logistics & Customization Hubs around the globe Großröhrsdorf Mumbai Danbury Shanghai Sparks Hong Kong Hinwil Kuala Lumpur Melbourne Belimo owned high energy efficient buildings Belimo 2024 23
Slide 24: Operational excellence through automation at our regional hubs
Deep Dive: Operations Capacity Expansion Operational excellence through automation at our regional hubs We believe that investing in collaborative automation allows us to optimize our operations, enhance workplace safety, reduce costs, and drive efficiency. Belimo 2024 24
Slide 25: Why do customers choose Belimo? High level of customization
Why do customers choose Belimo? We offer the customers a high level of customization options Belimo 2024 25
Slide 26: Logistics & Customization Center Mumbai, India
Deep Dive: Operations Capacity Expansion Logistics & Customization Center Mumbai, India Localized customization and logistics on 3,800 square meters. Lighthouse building regarding energy efficiency. Belimo 2024 26
Slide 27: India +40%
Deep Dive: Operations Capacity Expansion Our final customization assembly happens as close as possible to our customers to offer a wide range of variants with short lead times India +40% Avg 3-year growth in shipped products. Belimo 2024 27
Slide 28: Key investments in operations in all three regions
Deep Dive: Operations Capacity Expansion Key investments in operations in all three regions 2022 New Ops. Building 2026 New Ops. Building 2028 Operations Expansion Navi Mumbai, India Hinwil, Switzerland Danbury, CT, USA 2025 Operations Expansion 2027 Operations Expansion Shanghai, China Grossröhrsdo
Slide 29: Belimo added values. More than just products
Deep Dive: Operations Capacity Expansion Belimo added values. More than just products… Investing in Operational Excellence and leveraging our competitive advantages is crucial for staying ahead in the market. Global product Limitless Localized portfolio possibilities customization With our comprehen
Slide 30: Agenda
Agenda Welcoming Remarks and Introduction 1 Lars van der Haegen, CEO Financial Performance 2023 2 Dr. Markus Schürch, CFO Deep Dive: Logistics and Customization Agenda 3 Marcel Schütz, Head of Group Division Logistics and Customization Market Trends and Outlook 2024 4 Lars van der Haegen, CEO Q&A 5
Slide 31: Long-Term Trend in Sales Growth and Margins
Growth Strategy Long-Term Trend in Sales Growth and Margins Net Sales Growth CAGR: 9.35% 2004 until 2023; in LC 900 12% 7% 20% 800 19% 17% 18% 700 0% 9% 17% 8% 10% 600 16% 7% 7% 4% 500 6% 15% 15% 5% 15% 10% 15% -2% 14% 400 14% 11% 13% 300 10% 12% 200 11% 100 10% 2004 2005 2006 2007 2008 2009 2010 20
Slide 32: Supporting Megatrends
Supporting Megatrends Our Reliable Source of Resilience and Growth Urbanization Higher demand in Comfort, Energy Efficiency Climate Change and Safety in buildings Digitalization Belimo 2024 32
Slide 33: Butterfly Control Valves From DN 100 to DN 150
Butterfly Control Valves From DN 100 to DN 150 Smart, energy-efficient, and reliable solution Belimo 2024 33
Slide 34: RetroFIT+
RetroFIT+ Simplify Retrofit Projects and Optimize HVAC System Performance Assess Monitor Upgrade RetroFIT + Assessment Tool Belimo 2024 34
Slide 35: RetroFIT+ Assessment Tool
RetroFIT+ Assessment Tool Leverages expert inputs to generate reports Supports decision-making in retrofit projects Converts technical terms to business language Enhances communication and project feasibility assessment Belimo 2024 35
Slide 36: RetroFIT+ Success Story Automotive Plant Turkey
RetroFIT+ Success Story Automotive Plant Turkey Belimo 2024 36
Slide 37: RetroFIT+ Success Story Automotive Plant Turkey
RetroFIT+ Success Story Automotive Plant Turkey Breakeven at 7.5 months CHF per tCO2 Annual Savings in CHF Breakeven Investment in Months 0 333’489 7.5 50 456’520 5.5 100 579’551 4.3 * incl. 200 Energy Valves, (de)installation, commissioning, on-site adjustments and planning 150 702’582 3.6 200 825’
Slide 38: Outlook 2024: Sales Growth in Line with Strategy
Outlook 2024 Sales Growth in Line with Strategy Sales Growth For 2024, we expect a sales growth in LC at the lower end of guided growth corridor. Risks Uncertain direction of global economy, higher interest rates and adverse FX movements might negatively impact margins. ! Priorities Higher exp
Slide 39: Agenda
Agenda Welcoming Remarks and Introduction 1 Lars van der Haegen, CEO Financial Performance 2023 2 Dr. Markus Schürch, CFO Deep Dive: Logistics and Customization Agenda 3 Marcel Schütz, Head of Group Division Logistics and Customization Market Trends and Outlook 2024 4 Lars van der Haegen, CEO Q&A 5
Slide 40: Q&A
Q&A Belimo 2024 40
Slide 41: Next Key Dates
Publications and Agenda Annual General Meeting 2024 27 March 25, 2024 Publication of the Semiannual Report 2024 24 July 22, 2024 Next Key Belimo Capital Markets Day 2024 September 4, 2024 Dates Publication of Sales FY 2024 January 20, 2025 Publication of the Annual Report 2024 February 24, 2025 Beli
Slide 42: Disclaimer
Disclaimer This presentation contains comments relating to future developments which are based on assumptions and estimates of BELIMO Holding AG. Although the Company assumes the expectations of these § prospective comments to be realistic, they contain risks. These can lead to the actual results be
Slide 43: BELIMO
LM BELIMO