Slide 1: Media and Financial Analysts Conference
Media and Financial Analysts Conference Belimo Holding AG Hinwil, March 8, 2021
Slide 2: Agenda
Agenda 1. Welcoming Remarks Patrick Burkhalter, Chairman of the Board of Directors 2. Market, Innovation and Strategy Lars van der Haegen, CEO 3. Financial Results 2020 Dr. Markus Schürch, CFO 4. Deep Dive: The 7 Essentials of Healthy Indoor Air Lars van der Haegen, CEO 5. Outlook 2021 Dr. Markus Sc
Slide 3: Agenda
Agenda 1. Welcoming Remarks Patrick Burkhalter, Chairman of the Board of Directors 2. Market, Innovation and Strategy Lars van der Haegen, CEO 3. Financial Results 2020 Dr. Markus Schürch, CFO 4. Deep Dive: The 7 Essentials of Healthy Indoor Air Lars van der Haegen, CEO 5. Outlook 2021 Dr. Markus Sc
Slide 4: Welcoming Remarks: Stability During the Pandemic
Welcoming Remarks Stability During the Pandemic ▪ Sound strategy, Operational Excellence and a healthy balance sheet: Strong assets to maintain focus during the pandemic. ▪ Workforce safety: Belimo managed to keep its employees safe. ▪ Employee participation: Belimo introduced an Employee Share Part
Slide 5: Agenda
Agenda 1. Welcoming Remarks Patrick Burkhalter, Chairman of the Board of Directors 2. Market, Innovation and Strategy Lars van der Haegen, CEO 3. Financial Results 2020 Dr. Markus Schürch, CFO 4. Deep Dive: The 7 Essentials of Healthy Indoor Air Lars van der Haegen, CEO 5. Outlook 2021 Dr. Markus Sc
Slide 6: Defying the Impact of the Pandemic
Market, Innovation and Strategy Defying the Impact of the Pandemic High Product Stable Sales in Expanding Availability Local Currencies Sales Network ▪ Maintaining a high product ▪ Steady sales in local currencies. ▪ Opening four new hubs in availability throughout 2020. ▪ Growth in Europe in local
Slide 7: Facing an Overall Contracting BACS Market
Market, Innovation and Strategy Facing an Overall Contracting BACS Market UK -22% Germany -6.4% France Canada -14% Italy -12-15% -11% USA -10% Middle East India China -19% -30% -1.4% BACS Market Change in 2020 Global forecasted COVID-19-impact on the Building Automation Europe -9.3% and Control Syst
Slide 8: Varied Impact of Pandemic on End-User Segments
Market, Innovation and Strategy Varied Impact of Pandemic on End-User Segments Government Hotels Data Centers Buildings Commercial Universities / Airports Hospitals Buildings Schools Media and Financial Analysts Conference, March 8, 2021 8
Slide 9: Financial Year 2020: Steady Sales in Local Currencies
Market, Innovation and Strategy Financial Year 2020: Steady Sales in Local Currencies ▪ Steady net sales in local currencies (+/- 0.0%) Net Sales and EBIT Margin in CHF million thanks to strong supply chain, high product EBIT margin 17.9% EBIT margin availability and short lead times throughout EBIT
Slide 10: Asia Pacific: China Pushing for Growth
Market, Innovation and Strategy Asia Pacific: China Pushing for Growth ▪ Severe lockdown measures in countries in Asia Pacific outside of China led to a slight decline of -1.1% in local currencies (in CHF -6.6%). ▪ China’s contribution with a growth of 6.2% in local currencies again outstanding. Tot
Slide 11: Progress in Our Material ESG Topics
Market, Innovation and Strategy Progress in Our Material ESG Topics Media and Financial Analysts Conference, March 8, 2021 11
Slide 12: SDG 8: Credibility Culture at the Heart of Our Company
Market, Innovation and Strategy SDG 8: Credibility Culture at the Heart of Our Company Employee Engagement ▪ Employee share purchase plan introduced with great success and almost 400 participants, reflecting the On a scale from 1 exceptional engagement score of 8.9 (lowest) to 10 (highest), employee
Slide 13: CESIM: Focus on Comfort, Energy Efficiency and Safety
Market, Innovation and Strategy CESIM®: Focus on Comfort, Energy Efficiency and Safety COMFORT ENERGY SAFETY INSTALLATION MAINTENANCE Create more Contribute to higher Provide technology Make installations Assure long lifetimes comfort and health energy efficiency of that saves lives and easier and t
Slide 14: Sustainability Review: CO2 Savings Achieved per Field Device
Market, Innovation and Strategy Sustainability Review: CO2 Savings Achieved per Field Device Weighted average impact of an air-side and water-side actuator in kg of CO2e Media and Financial Analysts Conference, March 8, 2021 14
Slide 15: Strategy Review: Strengthening Our Sensor Offering
Market, Innovation and Strategy Strategy Review: Strengthening Our Sensor Offering Bolt-on-acquisition of Montreal-based Opera Launch of an innovative range of room Electronics Inc., an air quality / gas sensors sensors that measure all essential indoor specialist, widening our range of field-device
Slide 16: Strategy Review: Expanding Our Footprint Across Regions
Market, Innovation and Strategy Strategy Review: Expanding Our Footprint Across Regions . . . . We expanded our Chinese sales network by Opening of new India HQ in Mumbai with cus- opening four hubs in the metropolitan areas of tomization, sales, customer experience center in Chengdu, Hangzhou, Chan
Slide 17: Reviewing the Last Five Years of the Belimo Growth Strategy
Market, Innovation and Strategy Reviewing the Last Five Years of the Belimo Growth Strategy Grow Existing Business Enter Sensor Business ▪ Six actuator lines introduced ▪ Initial offering 2017 ▪ Five valve lines introduced ▪ Annual product innovations ▪ Design to Order (DTO) ▪ Variant Configuration
Slide 18: Customer Value, Operational Excellence and Solution Leadership
Market, Innovation and Strategy Customer Value, Operational Excellence and Solution Leadership Media and Financial Analysts Conference, March 8, 2021 18
Slide 19: Agenda
Agenda 1. Welcoming Remarks Patrick Burkhalter, Chairman of the Board of Directors 2. Market, Innovation and Strategy Lars van der Haegen, CEO 3. Financial Results 2020 Dr. Markus Schürch, CFO 4. Deep Dive: The 7 Essentials of Healthy Indoor Air Lars van der Haegen, CEO 5. Outlook 2021 Dr. Markus Sc
Slide 20: Solid EBIT Despite FX Headwinds
Financial Results 2020 Solid EBIT Despite FX Headwinds EBIT ▪ Steady sales in LC and strong crisis- in CHF million management resulted in operating income Margin 17.9% (EBIT) of CHF 108.1 million (-12.8% comp. to Margin 17.1% Margin 16.3% PY), resp. 16.3% of sales. Adverse FX Margin Margin 16.0% mov
Slide 21: Focus on Market Leadership and Long-Term Growth
Financial Results 2020 Focus on Market Leadership and Long-Term Growth Personnel Expenses ▪ Belimo proudly abstained from downsizing in CHF million * in % of net sales schemes and mandatory reduced working hours; maintaining focus on market 29.0%* 27.2%* leadership. 26.7%* 27.2%* 27.4%* ▪ Targeted,
Slide 22: Pressing Ahead with Our Growth Strategy
Financial Results 2020 Pressing Ahead with Our Growth Strategy R&D Costs ▪ Despite challenging economic circumstances, in CHF million * in % of net sales long-term prosperity was ensured by 8.1%* 7.3%* pursuing strategic growth initiatives. 7.4%* 7.7%* 7.1%* ▪ Increased investment in research and de
Slide 23: Net Income Comparable to 2018-Level
Financial Results 2020 Net Income Comparable to 2018-Level Net Income ▪ Net income comparable to 2018-levels, in CHF million 2019 result included a positive, non- Margin 17.5% recurring effect of CHF 22.1 million from the Swiss tax reform. Margin Margin 13.4% 13.1% Margin Margin 13.4% ▪ Negative fin
Slide 24: Maintaining a Strong Operating Cash Flow
Financial Results 2020 Maintaining a Strong Operating Cash Flow Cash Flow ▪ Excellent operating cash flow of CHF 125.7 in CHF million million (+0.2% compared to PY), strong working capital management. 125.4 125.7 113.9 ▪ Reduced investment activity in property, 90.3 94.3 93.3 plant and equipment, ma
Slide 25: Promising Second Half-Year / Strong Momentum
Financial Results 2020 Promising Second Half-Year / Strong Momentum 2. half-year in CHF million 1. half-year proforma* Total ▪ Very strong second half- Net sales 335.5 325.7 661.2 year, net sales in local currencies only -0.5 percent Material expenses incl. changes in inventories -134.9 -131.7 -266.
Slide 26: Sound Balance Sheet Structure
Financial Results 2020 Sound Balance Sheet Structure in CHF million 12.31.2019 12.31.2020 ▪ Decreased cash, mainly due to dividend payment (CHF 92.2 million) Cash and cash equivalents 172.6 164.9 and bolt-on acquisition of Opera in Other current assets 202.3 196.4 December 2020 (CHF 2.7 million). No
Slide 27: Retaining a Strong Set of Key Figures
Financial Results 2020 Retaining a Strong Set of Key Figures 2016 2017 2018 2019 2020 Net sales growth in local currencies 6.8% 8.2% 9.6% 9.2% 0.0% EBIT margin 16.3% 16.0% 17.1% 17.9% 16.3% Free cash flow in % of net sales 14.1% 9.5% 14.7% 12.1% 14.1% Return on invested capital (ROIC) 23.8% 23.4% 27
Slide 28: Delivering Strong Results to the Stock Market
Financial Results 2020 Delivering Strong Results to the Stock Market 2016 2017 2018 2019 2020 Earnings per share, in CHF 113.51 126.06 140.22 197.00 141.02 Stock market price as at December 31, in CHF 3 078 4 266 3 940 7 290 7 680 Dividend, in CHF 75 85 100 150 150* Payout ratio 66.1% 67.5% 71.3% 76
Slide 29: Dividend Policy: Attaining Optimum Cash Reserves
Dividend Policy Attaining Optimum Cash Reserves ▪ To reduce its substantial cash reserves, the Company will increase its payout ratio. ▪ The Board of Directors therefore proposes a dividend of CHF 150.00 per share at the Annual General Meeting on March 29, 2021. ▪ Increase payout ratio in the forese
Slide 30: Agenda
Agenda 1. Welcoming Remarks Patrick Burkhalter, Chairman of the Board of Directors 2. Market, Innovation and Strategy Lars van der Haegen, CEO 3. Financial Results 2020 Dr. Markus Schürch, CFO 4. Deep Dive: The 7 Essentials of Healthy Indoor Air Lars van der Haegen, CEO 5. Outlook 2021 Dr. Markus Sc
Slide 31: Our Customer-Centric Method CESIM Directly Supports SDG 3
Deep Dive: The 7 Essentials of Healthy Indoor Air Our Customer-Centric Method CESIM® Directly Supports SDG 3 COMFORT ENERGY SAFETY INSTALLATION MAINTENANCE Create more Contribute to higher Provide technology Make installations Assure long lifetimes comfort and health energy efficiency of that saves
Slide 32: Basic Requirements for Healthy Indoor Air Quality
Deep Dive: The 7 Essentials of Healthy Indoor Air Basic Requirements for Healthy Indoor Air Quality 7 Proper amount of outside air 1 IAQ measurement, visibility and monitoring 6 Effective filtration 5 Correct temperature and humidity conditioning 4 Consistent 2 Precise amount of air pressurization t
Slide 33: 1. Indoor Air Quality Measurement, Visibility and Monitoring
Deep Dive: The 7 Essentials of Healthy Indoor Air 1. Indoor Air Quality (IAQ) Measurement, Visibility and Monitoring What is most important? ▪ Most relevant IAQ measurements are T, rH and CO2. ▪ CO2 is a good indicator for “freshness” of air. ▪ Low CO2 levels are essential for productivity, decision
Slide 34: 2. Precise Amount of Air to Zone
Deep Dive: The 7 Essentials of Healthy Indoor Air 2. Precise Amount of Air to Zone / Controlled Removal of Contaminated Air What is most important? ▪ Adequate air-flow in a zone according to the number of people. ▪ The air-flow needs to be measured in order to be controlled. ▪ (Bio) contaminated air
Slide 35: 3. Good Air-Dilution and Air-Flow Pattern
Deep Dive: The 7 Essentials of Healthy Indoor Air 3. Good Air-Dilution and Air-Flow Pattern What is most important? ▪ Air-flows in rooms should be carefully designed, best supported by computational fluid dynamics. ▪ Supply and return should have VAV control. ▪ Displacement air distribution has bett
Slide 36: UM../UH.. actuators
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Slide 37: 4. Correct Pressurization of Envelope and Spaces
Deep Dive: The 7 Essentials of Healthy Indoor Air 4. Correct Pressurization of Envelope and Spaces What is most important? ▪ Usually, buildings are designed to have a positive pressure vs. envelope. Especially in humid climate this helps to keep extreme humidity out and avoid mold. ▪ As part of COVI
Slide 38: 5. Correct Temperature and Humidity Conditioning
Deep Dive: The 7 Essentials of Healthy Indoor Air 5. Correct Temperature and Humidity Conditioning What is most important? ▪ Highest thermal comfort is between 20..22ºC and 40..60%rH. ▪ Relative humidity is a good indicator for safety and health in a room. A range of 40..60% reduces the risk of viru
Slide 39: 6. Proper Filtration
Deep Dive: The 7 Essentials of Healthy Indoor Air 6. Proper Filtration What is most important? ▪ Filter selection based on application and specific arrangements. ▪ Return/recirculation air filters are important to lower (bio) contamination. ▪ Filter maintenance replacements based on usage, not time.
Slide 40: Media and Financial Analysts Conference, March 8, 2021
Media and Financial Analysts Conference, March 8, 2021 40
Slide 41: 7. Proper Amount of Outside Air
Deep Dive: The 7 Essentials of Healthy Indoor Air 7. Proper Amount of Outside Air What is most important? ▪ Fresh outside air supply is a must for healthy indoor air. ▪ Return air may be contaminated and needs to be treated. ▪ The amount of outdoor air can be optimized based on CO2 levels. ▪ During
Slide 42: Agenda
Agenda 1. Welcoming Remarks Patrick Burkhalter, Chairman of the Board of Directors 2. Market, Innovation and Strategy Lars van der Haegen, CEO 3. Financial Results 2020 Dr. Markus Schürch, CFO 4. Deep Dive: The 7 Essentials of Healthy Indoor Air Lars van der Haegen, CEO 5. Outlook 2021 Dr. Markus Sc
Slide 43: Outlook 2021: Expecting Sales to Pick up
Outlook 2021 Expecting Sales to Pick up ▪ Increased consciousness for IAQ are projected to lead to more retrofit-projects. ▪ Expecting a continued negative impact by the pandemic in the first half year. Sales revenue growth to pick up over the course of the year. ▪ Annual growth rate slightly below
Slide 44: Agenda
Agenda 1. Welcoming Remarks Patrick Burkhalter, Chairman of the Board of Directors 2. Market, Innovation and Strategy Lars van der Haegen, CEO 3. Financial Results 2020 Dr. Markus Schürch, CFO 4. Deep Dive: The 7 Essentials of Healthy Indoor Air Lars van der Haegen, CEO 5. Outlook 2021 Dr. Markus Sc
Slide 45: Q&A
Q&A For questions, please: ▪ Raise your "hand" → ▪ Wait for the moderator to ask you to speak ▪ Unmute yourself ▪ State your name and ask your question(s) (if not stated already) ▪ Mute yourself after all questions have been answered ▪ Lower your "hand" Media and Financial Analysts Conference, March
Slide 46: Publications and Agenda
Publications and Agenda Event Date Annual General Meeting 2021 March 29, 2021 Dividend Payment April 6, 2021 First Day of Trading After Share Split April 7, 2021 (Subject to Approval by the Annual General Meeting) Publication of Semiannual Report 2021 July 22, 2021 Visitor Day for Analysts 2021 Sept
Slide 47: Belimo
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