Slide 1: Media and Financial Analysts Conference
Media and Financial Analysts Conference Financial Results 2021 of Belimo Holding AG Zurich, March 7, 2022
Slide 2: Agenda
Agenda Welcoming Remarks and Introduction 1 Lars van der Haegen, CEO Financial Results 2021 2 Dr. Markus Schürch, CFO Activities of the Board of Directors 3 Patrick Burkhalter, Chairman of the Board of Directors Agenda 4 Growth Strategy Review and Priorities Lars van der Haegen, CEO Deep Dive: Solut
Slide 3: Agenda
Agenda Welcoming Remarks and Introduction 1 Lars van der Haegen, CEO Financial Results 2021 2 Dr. Markus Schürch, CFO Activities of the Board of Directors 3 Patrick Burkhalter, Chairman of the Board of Directors Agenda 4 Growth Strategy Review and Priorities Lars van der Haegen, CEO Deep Dive: Solut
Slide 4: Record Financials as a Result of Long-Term Growth Strategy
Welcoming Remarks and Introduction Record Financials as a Result of Long-Term Growth Strategy Record Financial Successful Growth Priorities for Result in 2021 Strategy Execution 2022+ and Outlook › Record year with CHF 765 › Increased sales CAGR* from 5.7% › Heightened energy efficiency million of n
Slide 5: Agenda
Agenda Welcoming Remarks and Introduction 1 Lars van der Haegen, CEO Financial Results 2021 2 Dr. Markus Schürch, CFO Activities of the Board of Directors 3 Patrick Burkhalter, Chairman of the Board of Directors Agenda 4 Growth Strategy Review and Priorities Lars van der Haegen, CEO Deep Dive: Solut
Slide 6: Belimo Thrives in a Strong Market
Financial Results 2021 Belimo Thrives in a Strong Market Net Sales ▪ Excellent sales performance CHF 765.3 in CHF million million (+16.6% in LC / +15.7% in CHF). ▪ Successful growth strategy implementation EBIT margin and operational excellence. 19.0% EBIT margin EBIT margin EBIT margin EBIT margin
Slide 7: Europe: Labor Shortage Impact
Financial Results 2021 Europe: Labor Shortage Impact Europe Asia Pacific in CHF million, LC adjusted at previous year rates +16.5% +15.9% ▪ Europe: Strong performance with +15.9% +14.4% +15.7% in LC capturing market opportunity with high product availability. 85.1 97.3 98.4 373.7 375.6 ▪ Fast recove
Slide 8: Americas: Unleashed Pent-up Demand
Financial Results 2021 Americas: Unleashed Pent-up Demand Americas Asia Pacific in CHF million, LC adjusted at previous year rates +18.1% +14.8% +15.7% +14.4% ▪ Americas: Net sales +18.1% 97.3 in LC 98.4 85.1 thanks to unleashed pent-up demand 2020 2021 2021 299.8 291.4 and superior lead times. CHF
Slide 9: Asia Pacific: Strong Key Markets
Financial Results 2021 Asia Pacific: Strong Key Markets Asia Pacific in CHF million, LC adjusted at previous year rates ▪ Asia Pacific: Strong in focus countries China / India and segments infrastructure, +14.4% +15.7% healthcare, and data centers. ▪ Lockdowns in Southeast Asia and 97.3 98.4 85.1 Au
Slide 10: Record Operating Results
Financial Results 2021 Record Operating Results EBIT in CHF million Margin 19.0% ▪ Strong top line growth combined with Margin operational excellence resulted in a 17.9% Margin Margin record EBIT of CHF 145.4 million 17.1% 16.3% Margin (+34.5% vs. PY), 19.0% of sales. 16.0% ▪ Supply chain excellence
Slide 11: Growth Absorption and Long-Term Growth
Financial Results 2021 Growth Absorption and Long-Term Growth Personnel Expenses in CHF million * in % of net sales ▪ Increased personnel expenses by 7.8% to CHF 207.1 million 27.1%* (PY CHF 192.0 million). 27.2%* 29.0%* 26.7%* ▪ Hiring of additional 95 FTEs in line 27.2%* with implementation of lon
Slide 12: Expanding Technological Leadership
Financial Results 2021 Expanding Technological Leadership R&D Costs in CHF million * in % of net sales ▪ Continuous increase of investments in 7.3%* research and development to expand 8.1%* 7.3%* technological leadership and ensure 7.4%* 7.7%* long-term success. ▪ Investment of CHF 56.0 million +4.1
Slide 13: Expanded Net Income
Financial Results 2021 Expanded Net Income Net Income ▪ Net income of CHF 115.5 million, 33.3% in CHF million above PY (CHF 86.6 million); 15.1% of Margin net sales. 17.5% Margin 15.1% ▪ Income taxes: international tax law developments impacting expected tax rate Margin Margin Margin 13.4% 13.1% one
Slide 14: Excellent Cash Flow from Operating Activities
Financial Results 2021 Excellent Cash Flow from Operating Activities Cash Flow ▪ Operating cash flow of CHF 153.0 in CHF million million (PY 125.7 million). Growth and increase of strategic safety stocks to safeguard product availability resulting in higher Net Working Capital. 153.0 ▪ Cash flow use
Slide 15: Very Strong Second Half-Year
Financial Results 2021 Very Strong Second Half-Year 2. half-year in CHF million 1. half-year proforma* Total ▪ Strong 2nd HY in Americas Net sales 384.7 380.6 765.3 leading to evenly distributed net sales across Material expenses incl. changes in inventories -152.5 -154.3 -306.8 in % of net sales -3
Slide 16: Retaining a Strong Balance Sheet
Financial Results 2021 Retaining a Strong Balance Sheet ▪ The Group successfully in CHF million 12.31.2021 12.31.2020 maintained a very strong Cash and cash equivalents 109.4 164.9 balance sheet in 2021. Other current assets 298.9 196.4 ▪ Total equity amounting to Non-current assets 234.4 222.1 CHF
Slide 17: Adding a New Set of Strong Key Figures
Financial Results 2021 Adding a New Set of Strong Key Figures 2017 2018 2019 2020 2021 Net sales growth in local currencies 8.2% 9.6% 9.2% 0.0% 16.6% EBIT margin 16.0% 17.1% 17.9% 16.3% 19.0% Free cash flow in % of net sales 9.5% 14.7% 12.1% 14.1% 6.0% 1) Return on invested capital (ROIC) 23.4% 27.8
Slide 18: Proposing an Increased Dividend
Financial Results 2021 Proposing an Increased Dividend ▪ The Board of Directors proposes a dividend of CHF 8.50 per share at the Annual General Meeting on March 28, 2022 (PY CHF 7.50, adjusted for the share split). ▪ Based on the closing price of CHF 580.00 on December 30, 2021, this results in a re
Slide 19: Delivering Strong Results to the Stock Market
Financial Results 2021 Delivering Strong Results to the Stock Market 2017 2018 2019 2020 2021 Earnings per share, in CHF 1) 6.30 7.01 9.85 7.05 9.41 Stock market price as at December 31, in CHF 1) 213 197 365 384 580 Dividend, in CHF 1) 4.25 5.00 7.50 7.50 8.50 2) Payout ratio 67.5% 71.3% 76.1% 106.
Slide 20: Agenda
Agenda Welcoming Remarks and Introduction 1 Lars van der Haegen, CEO Financial Results 2021 2 Dr. Markus Schürch, CFO Activities of the Board of Directors 3 Patrick Burkhalter, Chairman of the Board of Directors Agenda 4 Growth Strategy Review and Priorities Lars van der Haegen, CEO Deep Dive: Solut
Slide 21: Regular Strategy Reviews to Create a Sustainable Set-Up
Activities of the Board of Directors Regular Strategy Reviews to Create a Sustainable Set-Up Conscious and repeated Each strategy is reviewed The strategy development dialog between the Board of regularly and adapted to process itself becomes an Directors and the Executive the changed environment. i
Slide 22: Regular Strategy Reviews to Create a Sustainable Set-Up
Activities of the Board of Directors Regular Strategy Reviews to Create a Sustainable Set-Up Feedback Strategy Committee Strategy Review & Adaption Strategy Workshop Long-term Growth Strategy Feedback Approval Review Board of Directors Strategy Committee Functional & Market Strategies Executive Comm
Slide 23: Agenda
Agenda Welcoming Remarks and Introduction 1 Lars van der Haegen, CEO Financial Results 2021 2 Dr. Markus Schürch, CFO Activities of the Board of Directors 3 Patrick Burkhalter, Chairman of the Board of Directors Agenda 4 Growth Strategy Review and Priorities Lars van der Haegen, CEO Deep Dive: Solut
Slide 24: Review of the Successful First Phase of Our Growth Strategy
Growth Strategy Review and Priorities Review of the Successful First Phase of Our Growth Strategy The implementation of a dedicated Growth Strategy led to an additional +3.1pp top line growth CAGR* Key between 2016 to 2021 through market share gains: Initiatives › new products › new segments Actuato
Slide 25: Review of Growth Strategy: Leadership in Actuators and Valves
Growth Strategy Review and Priorities Review of Growth Strategy: Leadership in Actuators and Valves Air Business: six actuator lines introduced and solidified Water Business: five valve lines introduced and driving market leadership. CAGR* 2016-2021 8.1%. high growth rates. CAGR* 2016-2021 9.7%. Med
Slide 26: Review of Growth Strategy: Enter Sensor Business
Growth Strategy Review and Priorities Review of Growth Strategy: Enter Sensor Business Introduced full sensors portfolio since initial offering Bolt-on-acquisition of Montreal-based Opera in 2017, including pipe and duct sensors, room Electronics Inc., an air quality / gas sensors specialist. sensor
Slide 27: Review of Growth Strategy: Offer Selected Performance Devices
Growth Strategy Review and Priorities Review of Growth Strategy: Offer Selected Performance Devices Established concept of Performance Devices with the Introduction of the VRU Universal VAV controller for flagship product Energy Valve™. Registering already variable air volume control (VAV) for appli
Slide 28: Review of Growth Strategy: Grow Asia Pacific
Growth Strategy Review and Priorities Review of Growth Strategy: Grow Asia Pacific Asia Pacific contributing ~CHF 100 million of net sales Opening of India HQ in Mumbai in spring with (CAGR* 2016-2021 10.4%); more than half from China customization, sales, experience center to be prepared thanks to
Slide 29: Review of Growth Strategy: Strengthened ESG Profile
Growth Strategy Review and Priorities Review of Growth Strategy: Strengthened ESG Profile Rating Agencies Broker Ratings Ranked No 7 in Switzerland Ranked No 5 in Switzerland Media and Financial Analysts Conference, March 7, 2022 29
Slide 30: Review of Growth Strategy: Strengthened ESG Profile
Growth Strategy Review and Priorities Review of Growth Strategy: Strengthened ESG Profile 2021 2030 Until 2030, we strive to double the total CO2 savings from our field devices sold. -8.2 → basis 2021, measured in million tons CO2e -16.4 million tons CO2e Media and Financial Analysts Conference, Mar
Slide 31: Review of Growth Strategy: Strengthened ESG Profile
Growth Strategy Review and Priorities Review of Growth Strategy: Strengthened ESG Profile In the long-term, we are striving to improve our impact ratio along our CO2 model. Savings in 46.8 kg CO2 Inputs per HVAC Device Application +4.3 kg 1. Resources +1.5 kg 2.Manufacturing +0.1 kg 3.Distribution +
Slide 32: Now Entering 2nd Phase of Growth Strategy
Growth Strategy Review and Priorities Now Entering 2nd Phase of Growth Strategy › Heightened energy efficiency requirements Customer offer additional growth potential, but also new Value challenges in terms of bottlenecks such as Initiatives labor shortages, which we address through a set of dedicat
Slide 33: Customer Value: Addressing Resources Bottlenecks to Capture Potential
Growth Strategy Review and Priorities Customer Value: Addressing Resources Bottlenecks to Capture Potential Customer Value Solution Leadership RENEWAL Actuators and Valves Accelerate the renewal of the Grow business and expand installed base (retrofit). market leadership. Customer Value (CESIM®) Gro
Slide 34: RENEWAL: Accelerate the Renewal of the Installed Base
Growth Strategy Review and Priorities – Customer Value RENEWAL: Accelerate the Renewal of the Installed Base • Often no check if HVAC system is running as • No knowledge how to fix a poorly performing HVAC system • Time consuming to find the right intended • Uncertainties about energy savings replac
Slide 35: Asia Pacific: Ensure Leadership in the Fastest Growing Market
Growth Strategy Review and Priorities – Customer Value Asia Pacific: Ensure Leadership in the Fastest Growing Market Grow Asia Pacific sales above market growth and faster than Belimo average China India Rest of City-cluster presence Asia Pacific City-cluster presence Further increase market Brand b
Slide 36: Digital Customer Experience: Innovate Our Customers' Experience
Growth Strategy Review and Priorities – Customer Value Digital Customer Experience: Innovate Our Customers’ Experience Innovative Customer Experience TRADITIONAL DIGITAL CX CX Marketing Belimo Sales Technical Web presence HVAC & BACS Blended Support & e-commerce Design Software Trainings Customer PM
Slide 37: Agenda
Agenda Welcoming Remarks and Introduction 1 Lars van der Haegen, CEO Financial Results 2021 2 Dr. Markus Schürch, CFO Activities of the Board of Directors 3 Patrick Burkhalter, Chairman of the Board of Directors Agenda 4 Growth Strategy Review and Priorities Lars van der Haegen, CEO Deep Dive: Solut
Slide 38: Solution Leadership: Addressing Bottlenecks to Capture Potential
Deep Dive: Solution Leadership in R&D Solution Leadership: Addressing Bottlenecks to Capture Potential Solution Leadership Initiatives 2021-2030 Actuators and Valves 2nd Phase of Growth Strategy 2016-2021 Sensors and Meters 1st Phase of Growth Strategy 2011-2016 Digital Ecosystem CAGR* 8.8% CAGR* 5.
Slide 39: Solution Leadership: Addressing Bottlenecks to Capture Potential
Deep Dive: Solution Leadership in R&D Solution Leadership: Addressing Bottlenecks to Capture Potential Customer Value Solution Leadership RENEWAL Actuators and Valves Accelerate the renewal of the Grow business and expand installed base (retrofit). market leadership. Customer Value (CESIM®) Grow Asi
Slide 40: Actuators & Valves: Grow Business and Expand Market Leadership
Deep Dive: Solution Leadership in R&D Actuators & Valves: Grow Business and Expand Market Leadership Actuators: Maintain and Valves: Become the Expand No 1 Position Market Leader Range Enhancements Range Enhancements Next Generation Actuators and Valves Media and Financial Analysts Conference, March
Slide 41: Actuators & Valves: New Product Launches
Deep Dive: Solution Leadership in R&D Actuators & Valves: New Product Launches Launch of the fourth generation of the Belimo Energy Launch of the smallest damper actuator, the UM/UH, Valve™, uniting temperature control, certified energy for increased indoor air quality requirements in zone measureme
Slide 42: Sensors & Meters: Expand Range and Increase Market Share
Deep Dive: Solution Leadership in R&D Sensors & Meters: Expand Range and Increase Market Share High Customer Acceptance of Belimo Sensors & Meters Leading Sensors & Meters Company RENEWAL: IAQ / Energy - Monitoring Unique, competitive modular 3-level sensor range Seamless sensor – actuator integrati
Slide 43: Sensors & Meters: New Product Launches
Deep Dive: Solution Leadership in R&D Sensors & Meters: New Product Launches Launch of the Thermal Energy Meter (MID approved). Upcoming launch of touch Room Operating Units for Available standalone or in combination with the Energy visible areas of the room; featuring ePaper display and Valve™, off
Slide 44: Digital Ecosystem: Connectivity, Edge Logic, and Access to Data
Deep Dive: Solution Leadership in R&D Digital Ecosystem: Connectivity, Edge Logic, and Access to Data Belimo Digital Ecosystem ▪ Connectivity for easy configuration and operation ▪ Seamless integration into Building Automation Control (BACS) ▪ Seamless Building IoT integration Media and Financial An
Slide 45: Strengthen and Internationalize R&D in Line With Growth Strategy
Deep Dive: Solution Leadership in R&D Strengthen and Internationalize R&D in Line With Growth Strategy Consolidate our technical leadership R&D I-Hubs IP Protection Org & Process Build up I-Hubs in China, Number of patents filed New organizational model Germany and USA. doubled towards previous impl
Slide 46: Agenda
Agenda Welcoming Remarks and Introduction 1 Lars van der Haegen, CEO Financial Results 2021 2 Dr. Markus Schürch, CFO Activities of the Board of Directors 3 Patrick Burkhalter, Chairman of the Board of Directors Agenda 4 Growth Strategy Review and Priorities Lars van der Haegen, CEO Deep Dive: Solut
Slide 47: Outlook 2022: Sales Growth in Line with Strategy
Outlook 2022 Sales Growth in Line with Strategy Sales Growth ▪ For 2022, sales growth in line with strategy expected; sales revenue growth rate in LC around five-year average. ▪ Extraordinary inflationary growth component due to input cost increases which will be recovered by price adjustments. Risk
Slide 48: BELIMO
MT BELIMO