Belimo Holding Ag · SIX:BEAN
Belimo — H1 2024 Earnings Presentation
30 slides from Belimo's earnings presentation, Jul 22, 2024
Slide 1: Earnings Call Semiannual Results 2024
Earnings Call Semiannual Results 2024 BELIMO Holding AG July 22, 2024
Slide 2: Agenda
Earnings Call Semiannual Results 2024 Overview 01 02 03 HY1 in Brief Business Financial Highlights Highlights Agenda 04 05 Outlook Q&A FY 2024 Belimo HY1 2024, July 22, 2024 2
Slide 3: HY1 in Brief: Financial Performance Above Historical Averages
01 HY1 in Brief Financial Performance Above Historical Averages ▪ Strong net sales growth of +9.7% in LC; reported +5.6% to CHF 473.5 million (5Y average: 9.0%). Net Sales ▪ Americas sales up by +17.6% in LC, helped by booming demand in the data center segment. ▪ Proportional increase in EBIT to CHF
Slide 4: Agenda
Earnings Call Semiannual Results 2024 Overview 01 02 03 HY1 in Brief Business Financial Highlights Highlights Agenda 04 05 Outlook Q&A FY 2024 Belimo HY1 2024, July 22, 2024 4
Slide 5: Business Highlights: Leveraging Opportunities in Strategic High-Growth Markets
02 Business Highlights Leveraging Opportunities in Strategic High-Growth Markets Supporting Strong retrofit Normalizing megatrends demand supply chain Market ▪ Energy efficiency, climate change, ▪ Attractive economic proposition ▪ Reducing lead times and stable urbanization, safety in buildings, wit
Slide 6: Spotlight Data Centers: Enabling Sustainable Digitization
02 Business Highlights Spotlight Data Centers: Enabling Sustainable Digitization Global Average Power Rack Density (kW/rack) Processing of growing data volumes drives cooling 100+ demand: Handling more data requires more processing power. Strong growth in power density per processing 51-100 unit is
Slide 7: Spotlight Data Centers: Cooling Becomes Mission-Critical for Chip Performance
02 Business Highlights Spotlight Data Centers: As Heat Production per Rack Increases, Cooling Becomes Mission-Critical for Chip Performance Belimo established close collaborations with hyperscalers and leading AI chip designers and increasingly demanding cooling applications deepen those relationshi
Slide 8: Spotlight Data Centers: Long Runway for Broad-Based Growth
02 Business Highlights Spotlight Data Centers: Long Runway for Broad-Based Growth Global HVAC Market for Data Centers (in USD B) 16 14 CAGR: 12 c20-25% 10 Approx. USD 15B 8 6 ▪ All three Belimo’s product lines – intelligent 4 Approx. USD 7B actuators, valves, and sensors – are 2 interconnected to en
Slide 9: Spotlight Product Launch: Belimo's M600 Microchip Goes Live
02 Business Highlights Spotlight Product Launch: Belimo’s M600 Microchip Goes Live Belimo launched new JR Butterfly Control Valve in March 2024: Designed specifically for critical ▪ M600 is the basis for creating a diverse infrastructure, such as data centers and hospitals, and product portfolio mad
Slide 10: Spotlight Product Launch: Digital Support of RetroFIT+
02 Business Highlights Spotlight Product Launch: Digital Support of RetroFIT+ Belimo launched RetroFIT+ Assessment Tool in June ▪ This tool improves the process of 2024. With that, Belimo’s enablement toolkit for assessing the energy efficiency potential of RetroFIT+ continued to grow, supporting th
Slide 11: Agenda
Earnings Call Semiannual Results 2024 Overview 01 02 03 HY1 in Brief Business Financial Highlights Highlights Agenda 04 05 Outlook Q&A FY 2024 Belimo HY1 2024, July 22, 2024 11
Slide 12: Net Sales Development
04 Financial Highlights Overview of Net Sales in HY1 2024 Net Sales Net Sales Growth Net Sales Growth Net Sales Development in CHF million in CHF (in %, HY1) in LC (in %, HY1) 473.5 5.6 9.7 Regions & Business Lines Net Sales by Regions Net Sales by Business Lines 42% EMEA 46% Damper Actuators 46% Am
Slide 13: Net Sales Composition
04 Financial Highlights Overview of Net Sales in HY1 2024 Net Sales Bridge in CHF (in % for the HY1 2024 – compared to HY1 2023) Volume & Mix Price Others FX Total Net Sales Growth Net Sales Composition 6.0 3.0 0.6 -4.1 5.6 ⬈ ⬈ ⬊ ⬈ Positive volume & mix effect Positive price realization almost drive
Slide 14: Market Regions: Global Presence Enables Strong Growth
03 Market Regions Global Presence Enables Strong Growth Growth Rates in Local Currencies of Total Net Sales 2% EMEA EMEA 42% Strong growth in renovation-related Challenging construction demand and data centers. market backdrop. . 18% Americas Americas 46% Booming demand in data Strong and broad-base
Slide 15: Sales Review by Region – EMEA
03 Market Regions Sales Review by Region – EMEA EMEA in CHF million, LC adjusted at previous year rates ▪ Positive sales performance of 2.0% in LC despite mixed markets and strong base effect. ▪ Germany: Very strong performance in the contracting channel supported by RetroFIT+ initiative offsetting
Slide 16: Sales Review by Region – Americas
03 Market Regions Sales Review by Region – Americas Americas in CHF million, LC adjusted at previous year rates ▪ Net sales growth of 17.6% in LC in a fundamentally supportive construction environment. ▪ Broad based positive demand trend across all verticals but new office buildings. ▪ Particularly
Slide 17: Sales Review by Region – Asia Pacific
03 Market Regions Sales Review by Region – Asia Pacific Asia Pacific in CHF million, LC adjusted at previous year rates ▪ Above Group-average net sales growth of 9.9% in LC, business recovery in China driven by attractive verticals. ▪ Increasingly more buildings constructed according to domestic or
Slide 18: Broad-Based Strong Performance, Further Market Share Gains
01 HY1 in Brief Broad-Based Strong Performance, Further Market Share Gains Growth Rates in Local Currencies of Total Net Sales 6% Damper Actuators Damper Actuators 46% Growth re-accelerates, helped Business line with highest global by RetroFIT+ and data centers market share. 12% Control Valves Contr
Slide 19: Improved Operational Results
04 Financial Highlights Improved Operational Results EBIT in CHF million ▪ EBIT rose to CHF 93.0 million or 19.6% of sales (PY CHF 84.7 million; 18.9% EBIT-Margin). ▪ Increase in contribution margin. ▪ Balanced expanding of workforce supporting long term growth strategy. Belimo HY1 2024, July 22, 20
Slide 20: Continued Stable Development Expected in Material Costs
04 Financial Highlights Continued Stable Development Expected in Material Costs Good visibility over major cost factors Overstock Inflation in Volatile Electronics Transport upstream in producing energy costs component lead times supply chain countries back to increased by normal 4 weeks compared to
Slide 21: Increase in Net Income Supported by Lower Interest Expenses
04 Financial Highlights Increase in Net Income Supported by Lower Interest Expenses Net Income in CHF million ▪ Net income of CHF 77.2 million, 18.8% above PY (CHF 65.0 million); 16.3% of net sales. ▪ Lower FX losses and lower interest expenses. ▪ Increased earnings per share (EPS) of CHF 6.28 (PY C
Slide 22: Increase in Free Cash Flow
04 Financial Highlights Increase in Free Cash Flow Cash Flow in CHF million ▪ Operating cash flow of CHF 85.6 million (PY CHF 72.7 million) rose driven by higher net income. ▪ Higher Free cash flow of CHF 69.8 million (PY CHF 54.6 million, adjusted for term deposit), up 27.8% on comparable basis. ▪
Slide 23: Continued Strong Equity Ratio
04 Financial Highlights Continued Strong Equity Ratio ▪ Reduced cash and cash in CHF million 12.31.2023 06.30.2024 equivalents of CHF 76.4 Cash and cash equivalents 110.8 76.4 million compared to CHF 110.8 Other current assets 279.0 321.5 million on Dec 31, 2023, driven Non-current assets 272.2 281.
Slide 24: Agenda
Earnings Call Semiannual Results 2024 Overview 01 02 03 HY1 in Brief Business Financial Highlights Highlights Agenda 04 05 Outlook Q&A FY 2024 Belimo HY1 2024, July 22, 2024 24
Slide 25: Outlook FY 2024: Sales Growth Above Five-Year Average
05 Outlook FY 2024 Sales Growth Above Five-Year Average Sales Growth ▪ Higher YoY growth in HY2 2024 helped by weaker comparison base. Sequentially nearly stable sales relative to HY1. Risks ▪ FX impact on the top and bottom line, uncertainties regarding ! global economic developments. Profitability
Slide 26: Outlook FY 2024 by Market Region
05 Outlook FY 2024 Outlook by Market Region Americas 2 EMEA Asia Pacific Solid market demand and Roughly stable demand in Acceleration in sales sales expected, in absolute HY2 2024 throughout the expected through the terms similar sales in H2 market region. second half of the year. are expected as a
Slide 27: Positioned to Outperform Over the Long Term
Positioned to Outperform Over the Long Term Core Business Benefiting From Strong Secular Tailwinds Urbanization Higher demand in Comfort, Energy Efficiency Climate Change and Safety in buildings Digitalization Belimo HY1 2024, July 22, 2024 27
Slide 28: Next Dates
Publications and Agenda Belimo Capital Markets Day 2024 September 4, 2024 Publication of Sales 2024 January 20, 2025 Publication of Annual Report 2024 February 24, 2025 Next Dates Annual General Meeting 2025 March 24, 2025 Ex-Dividend Date March 26, 2025 Dividend Payment March 28, 2025 Belimo HY1 20
Slide 29: Forward-Looking Statements
Forward-Looking Statements This presentation contains comments relating to future developments which are based on assumptions and estimates made by BELIMO Holding AG. Although the Company assumes the expectations of § these forward-looking statements to be realistic, they contain risks. Because of t
Slide 30: BELIMO
MT BELIMO