Slide 1: Media and Financial Analysts Conference
Media and Financial Analysts Conference Financial Results 2022 of BELIMO Holding AG Zurich, March 6, 2023
Slide 2: Agenda
Agenda Welcoming Remarks and Introduction 1 Lars van der Haegen, CEO 2 Financial Results 2022 Dr. Markus Schürch, CFO Activities of the Board of Directors 3 Patrick Burkhalter, Chairman of the Board of Directors Agenda 4 Deep Dive: Supply Chain Management 2022 Louis Scheidegger, Head of Production G
Slide 3: CEO Keynote: What Made 2022 a Special Year
Welcoming Remarks and Introduction CEO Keynote: What Made 2022 a Special Year Sustaining superior supply Belimo demonstrated its The energy crisis placed chain performance allowed ability to partially energy efficiency measures for solid volume growth and compensate higher input enabled by building
Slide 4: Key Events During the Year
Welcoming Remarks and Introduction Key Events During the Year • Carbon Monoxide sensors • 10th anniversary of the • Launch of the • Company culture enables achieve UL 2075 approval first Belimo Energy Belimo Room talent recruiting: We welcome for the US market. Valve™ shipment. Operating Units. our
Slide 5: Strong Financials as a Result of Long-Term Growth Strategy
Welcoming Remarks and Introduction Strong Financials as a Result of Long-Term Growth Strategy Strong Financial Successful Growth Priorities for Result in 2022 Strategy Execution 2023+ and Outlook › Strong year with CHF 847 › Beating sales growth of previous › Energy efficiency and indoor air million
Slide 6: Focus to Further Strengthen Our ESG Profile
Welcoming Remarks and Introduction Focus to Further Strengthen Our ESG Profile Our Goal: In the long-term, we are striving to decarbonize our business model along the value chain. GHG Company Level “Science-based Approach” Ambition Impacts of Belimo 1 ▪ Scope 1&2: coverage extension “minimize GHG em
Slide 7: Agenda
Agenda Welcoming Remarks and Introduction 1 Lars van der Haegen, CEO 2 Financial Results 2022 Dr. Markus Schürch, CFO Activities of the Board of Directors 3 Patrick Burkhalter, Chairman of the Board of Directors Agenda 4 Deep Dive: Supply Chain Management 2022 Louis Scheidegger, Head of Production G
Slide 8: Net Sales Development Regions & Applications
Financial Results 2022 Overview Sales 2022 Net Sales 2022 847 5-Year CAGR Net Sales Growth Net Sales Development in CHF million in LC in %, 2016-2021 in LC in %, 2022 2021 765 846.9 8.8 11.9 2020 661 2019 693 2018 642 Net Sales by Market Regions Net Sales by Applications Regions & Applications 43.4%
Slide 9: Net Sales Composition
Financial Results 2022 Overview Sales 2022 Net Sales Bridge (in % and CHF for FY 2022 – compared to FY 2021) Volume Price Others* FX Total Net Sales Growth Net Sales Composition 5.3 6.1 0.5 -1.2 10.7 ⬈ ⬈ ⬈ ⬊ *Customer mix, product mix, rebates, and other effects. Belimo 2023 10
Slide 10: Sales Review by Region
Financial Results 2022 Sales Review by Region Growth Rates in Local Currencies in % In % of Total Net Sales 4.7% EMEA EMEA 43.4% Remarkable sales performance considering Sharply rising energy costs shaped the the exit from the Russian business. HVAC industry in EMEA in 2022. 21.3% Americas Americas
Slide 11: Sales Review by Region
Financial Results 2022 Sales Review by Region EMEA Americas 2 Asia Pacific Remarkable sales performance, Strong growth thanks to Lockdowns muted growth in largely compensating for the superior lead times enabling China while the Indian market war's top-line impact of ~6%. market share gains. perform
Slide 12: Strong Operating Results
Financial Results 2022 Strong Operating Results EBIT in CHF million ▪ Despite a challenging environment Margin Margin 18.0% (+4.8% vs. PY) 18.0% EBIT margin. 19.0% ▪ Inflation-triggered higher input costs Margin Margin 17.9% were partly compensated by two Margin 17.1% 16.3% price adjustments. ▪ Norm
Slide 13: Staff Buildup in Line with Sales Growth and Growth Strategy
Financial Results 2022 Staff Buildup in Line with Sales Growth and Growth Strategy Personnel Expenses in CHF million * in % of net sales ▪ Personnel expenses increased 27.5%* in line with sales growth by 27.1%* 27.2%* 29.0%* 12.3% to CHF 232.5 million 26.7%* (PY CHF 207.1 million). ▪ We were able to
Slide 14: Maintaining Relative Research and Development Investments
Financial Results 2022 Maintaining Relative Research and Development Investments R&D Costs in CHF million * in % of net sales ▪ Total increase of R&D expenses of +10.9% to 7.3%* CHF 62.1 million (PY CHF 56.0 7.3%* 7.3%* 8.1%* million) to expand 7.4%* technological leadership and ensure long-term suc
Slide 15: Higher Net Income
Financial Results 2022 Higher Net Income Net Income in CHF million ▪ Net income of CHF 122.7 million, Margin 6.2% above PY (CHF 115.5 million); Margin 17.5% Margin 15.1% 14.5% 14.5% of net sales. ▪ Income taxes of CHF 24.8 million Margin 13.4% Margin 13.1% (PY CHF 27.9 million). ▪ Higher FX losses o
Slide 16: Cash Flow from Operating Activities
Financial Results 2022 Cash Flow from Operating Activities ▪ Operating cash flow of CHF 112.9 Cash Flow million (PY CHF 153.0 million). in CHF million Higher safety stocks to safeguard deliveries led to increased NWC. ▪ Free cash flow of CHF 91.2 million 153.0 (PY CHF 45.5 million). Net divestment 1
Slide 17: HY2 with Higher Sales and Strategic Cost Buildup
Financial Results 2022 HY2 with Higher Sales and Strategic Cost Buildup 2. half-year in CHF million 1. half-year proforma* Total ▪ Very strong HY2, mainly Net sales 416.4 430.5 846.9 thanks to accelerating Material expenses incl. changes in inventories -167.3 -172.4 -339.7 growth in the Americas in
Slide 18: Returning Excess Cash to Shareholders
Financial Results 2022 Returning Excess Cash to Shareholders in CHF million 12.31.2022 12.31.2021 ▪ Decrease in cash and cash Cash and cash equivalents 86.8 109.4 equivalents mainly Other current assets 327.3 298.9 attributable to the increase in Non-current assets 257.9 234.4 NWC and higher dividen
Slide 19: Another Set of Strong Key Figures
Financial Results 2022 Another Set of Strong Key Figures 2018 2019 2020 2021 2022 Net sales growth in local currencies 9.6% 9.2% 0.0% 16.6% 11.9% EBIT margin 17.1% 17.9% 16.3% 19.0% 18.0% Free cash flow in % of net sales 14.7% 12.1% 14.1% 6.0% 1) 10.8% 1) Return on invested capital (ROIC) 27.8% 27.8
Slide 20: Proposing a Steady Dividend
Financial Results 2022 Proposing a Steady Dividend ▪ The Board of Directors will propose a dividend of CHF 8.50 per share at the Annual General Meeting on March 27, 2023 (PY CHF 8.50). ▪ Based on the closing price of CHF 440.00 on December 31, 2022, this would result in a return of 1.9% per share fo
Slide 21: Delivering Continued Strong Results
Financial Results 2022 Delivering Continued Strong Results 2018 2019 2020 2021 2022 Earnings per share, in CHF 1) 7.01 9.85 7.05 9.41 9.99 Stock market price as at December 31, in CHF 1) 197 365 384 580 440 Dividend, in CHF 1) 5.00 7.50 7.50 8.50 8.50 2) Payout ratio 71.3% 76.1% 106.4% 90.4% 85.1% R
Slide 22: Agenda
Agenda Welcoming Remarks and Introduction 1 Lars van der Haegen, CEO 2 Financial Results 2022 Dr. Markus Schürch, CFO Activities of the Board of Directors 3 Patrick Burkhalter, Chairman of the Board of Directors Agenda 4 Deep Dive: Supply Chain Management 2022 Louis Scheidegger, Head of Production G
Slide 23: Governance Developments
Activities of the Board of Directors Governance Developments New Board Member New External Auditor As part of its long-term succession planning For governance reasons, the Board of Directors and renewal of the body, the Board of proposes to newly issue the audit mandate to Directors proposes Ines Pö
Slide 24: Our Values: Spotlight on Operational Excellence in 2022
Activities of the Board of Directors Our Values: Spotlight on Operational Excellence in 2022 Customer Value Solution Leadership RetroFIT+ Actuators and Values Accelerate the renewal of the Grow business and expand installed base (retrofit). market leadership. Customer Value (CESIM®) Grow Asia Pacifi
Slide 25: Superior Lead Times as a Strategic Success Factor
Activities of the Board of Directors Superior Lead Times as a Strategic Success Factor Maintaining supply Our suppliers are not only providers of parts and Process availability and superior assemblies, but key partners. Optimization lead times were the main success factors Long-term partnerships in
Slide 26: Agenda
Agenda Welcoming Remarks and Introduction 1 Lars van der Haegen, CEO 2 Financial Results 2022 Dr. Markus Schürch, CFO Activities of the Board of Directors 3 Patrick Burkhalter, Chairman of the Board of Directors Agenda 4 Deep Dive: Supply Chain Management 2022 Louis Scheidegger, Head of Production G
Slide 27: Operational Excellence in Production
Deep Dive: Supply Chain Management 2022 Operational Excellence in Production Lean Manufacturing State of the Art Automation Ranked #7 in Switzerland Ranked #5 in Switzerland Belimo 2023 28
Slide 28: Suppliers as the most Critical Element of Our Asset-Light Model
Growth Strategy Update and Market Trends Suppliers as the most Critical Element of Our Asset-Light Model Internal Value Add in % External Value Add 4% Customization/Logistics Sourcing by Region 88% • Hinwil • Sparks • Mumbai • Großröhrsdorf • Hong Kong • Kuala Lumpur • Danbury 76% EMEA • Shanghai •
Slide 29: Rapidly Worsening Global Transport Situation and its Consequences
Deep Dive: Supply Chain Management 2022 Rapidly Worsening Global Transport Situation and its Consequences Four Key Challenges: ▪ Rapidly increasing transportation times from 2 to 6 months. ▪ More material needed to overcome increased transport time. ▪ Belimo sales increase, especially accelerating i
Slide 30: Critical Material Groups Becoming Difficult to Source
Deep Dive: Supply Chain Management 2022 Critical Material Groups Becoming Difficult to Source Most Affected Material Groups Electronics Key Challenge Most extreme Cables Plastic outliers such as Resin 60 months quoted lead time for microchips. ▪ Active Components: Microchips and our ASIC ▪ Passive C
Slide 31: Higher Inventories at All Levels to Secure Availability
Deep Dive: Supply Chain Management 2022 Higher Inventories at All Levels to Secure Availability Greatly Increased Inventories: ▪ At our suppliers. ▪ At our base actuator assembly sites Hinwil/Danbury. ▪ At our customizing centers. ▪ More goods in transit: on ships / on the road. Belimo 2023 32
Slide 32: Critical Sourcing and Logistics Tactics Facing the Perfect Storm
Deep Dive: Supply Chain Management 2022 Critical Sourcing and Logistics Tactics Facing the “Perfect Storm" Involvement of Use of Internal engineering Measures management to resolve bottlenecks. resources to redesign products. Entire relationship Revert to External network coming broker market. Measu
Slide 33: The Order of Our Priorities
Deep Dive: Supply Chain Management 2022 The Order of Our Priorities Quality First 2 Timeliness Second Cost Third No compromises on Timely delivery of our Striving for mutual suc- quality, ever. products is key, but not cess: knowing the value our 1st priority. of happy customers. Belimo 2023 34
Slide 34: Long-Term Investments into the Supply Chain Paid Off
Deep Dive: Supply Chain Management 2022 Long-Term Investments into the Supply Chain Paid Off Investing for the Long Term The Belimo Advantage In 2022, we could reap years of investments Our dedicated focus on… into a resilient supply ▪ long-term and fair partnerships. chain. ▪ a single niche in whic
Slide 35: Taking Care of Our Employees
Deep Dive: Supply Chain Management 2022 Taking Care of Our Employees How to keep employees motivated during such a challenging time. Internal External Motivational Support Support Support Once-in-a-lifetime Taskforce Former Belimo “opportunity” to prove team. employees. that Belimo has a great Addit
Slide 36: Agenda
Agenda Welcoming Remarks and Introduction 1 Lars van der Haegen, CEO 2 Financial Results 2022 Dr. Markus Schürch, CFO Activities of the Board of Directors 3 Patrick Burkhalter, Chairman of the Board of Directors Agenda 4 Deep Dive: Supply Chain Management 2022 Louis Scheidegger, Head of Production G
Slide 37: Review of the First Year of the 2nd Phase of Growth Strategy
Growth Strategy Update and Market Trends Review of the First Year of the 2nd Phase of Growth Strategy › Heightened energy efficiency requirements offer additional growth potential, but also new Customer challenges in terms of bottlenecks such as Value labor shortages, which we continue to RetroFIT+
Slide 38: Update on Our Six Growth Initiatives
Growth Strategy Update and Market Trends Update on Our Six Growth Initiatives Customer Value Solution Leadership RetroFIT+ Actuators and Valves The initiative concentrates on increasing the renovation The largest sales contribution in the growth plan for rate of existing buildings by resolving the m
Slide 39: RetroFIT+: Accelerate the Renewal of the Installed Base
Growth Strategy Review and Priorities – Customer Value RetroFIT+: Accelerate the Renewal of the Installed Base Sales Organization Expansion of sales organization The Belimo with product managers, RetroFIT+ Application Specialist and Retrofit App Business Development Managers. ▪ Allows our customers
Slide 40: Grow Asia Pacific: Ensure Leadership in the Fastest Growing Market
Growth Strategy Review and Priorities – Customer Value Grow Asia Pacific: Ensure Leadership in the Fastest Growing Market Grow Asia Pacific sales above market growth and faster than the Belimo average. CESIM® House Opening of India headquarters China India in Mumbai to strengthen our footprint and d
Slide 41: Digital Customer Experience: Innovate Our Customers' Experience
Growth Strategy Review and Priorities – Customer Value Digital Customer Experience: Innovate Our Customers’ Experience Update on the Belimo Customer Experience Strategy ▪ Enhancing the global website. ▪ Launch of Belimo Retrofit Tool ▪ Launch of RetroFIT App. ▪ Introduction of new CRM. featuring imp
Slide 42: Actuators and Valves / Sensors and Meters
Growth Strategy Review and Priorities – Solution Leadership Actuators and Valves / Sensors and Meters Growth Rates in Local Currencies in % In % of Total Net Sales 6.6% Damper Actuators Damper Actuators 50.0% Solid result considering the high Completed the rollout of smallest damper market shares gl
Slide 43: Digital Ecosystem: Connectivity, Edge Logic, and Access to Data
Growth Strategy Review and Priorities – Solution Leadership Digital Ecosystem: Connectivity, Edge Logic, and Access to Data Update on the Belimo Digital Ecosystem ▪ Significant progress with Belimo DES platform development. ▪ 23rd Digital Ecosystem Collaborators joined. Belimo 2023 44
Slide 44: Strengthened Megatrends Support Underlying Market Growth
Growth Strategy Review and Priorities Strengthened Megatrends Support Underlying Market Growth Customer Demand Indoor Air Quality: Energy Efficiency: • new construction projects • new construction projects • retrofit projects • retrofit projects Regulatory Drivers Belimo 2023 45
Slide 45: Sensor Movie
▪ Sensor Movie einbetten: https://app.frame.io/presentations/6ff5c4f2-5a6c-4b18-8188- 34d6fda4f654 Belimo 2023 47
Slide 46: Long-Term Trend in Sales Growth and Margins
Growth Strategy Review and Priorities Long-Term Trend in Sales Growth and Margins Net Sales Growth Net Sales CAGR: 9.26% EBIT Margin in percent / local currencies 2003-2022 in local currencies in percent of net sales 20 17 20 15 15 15 14 19 15 18 11 17 10 10 12 10 9 16 10 8 7 7 15 6 7 14 5 5 4 13 12
Slide 47: Agenda
Agenda Welcoming Remarks and Introduction 1 Lars van der Haegen, CEO 2 Financial Results 2022 Dr. Markus Schürch, CFO Activities of the Board of Directors 3 Patrick Burkhalter, Chairman of the Board of Directors Agenda 4 Deep Dive: Supply Chain Management 2022 Louis Scheidegger, Head of Production G
Slide 48: Sales Growth in Line with Strategy
Outlook 2023 Sales Growth in Line with Strategy Sales Growth ▪ For 2023, we expect a sales growth in LC at five-year average. Risks ▪ Uncertain direction of global economy, higher interest rates, geopolitical implications, persisting supply chain challenges. ! ▪ Adverse FX movements might negatively
Slide 49: Outlook by Region
Outlook 2023 Outlook by Region EMEA Americas 2 Asia Pacific Cautiously optimistic: Retrofits Continued solid demand for ▪ China: End of Zero-COVID are expected to compensate for HY1 2023 thanks to strong might accelerate demand. cooling down new construction. project pipeline of customers. ▪ India:
Slide 50: Next Key Dates
Publications and Agenda Annual General Meeting 2023 27 March, 2023 Publication of Semiannual Report 2023 24 July, 2023 Next Key 6 Belimo Capital Markets Day 2023 September, 2023 Dates Publication of Sales FY 2023 22 January, 2024 Publication of the FY 2023 Financial Statements 4 March, 2024 Belimo 2
Slide 51: 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 52: Mae
Mae BELIMO