Business
Zumtobel : FY 2024/25 Annual Financial Report
Zumtobel : FY 2024/25 Annual Financial
About this update from Zumtobel Group Ag
ANNUAL FINANCIAL REPORT 2024 /// 2025 With all my work, I start by asking myself the question "Cui bono?" or, to put it another way: "Who should benefit, who should be empowered?" Anna Heringer Excerpt from the artistic annual report "LIGHT - the Natural Force that Makes Things Visible" Cover image: Detail on the wall of Nichodemus House at the Don Bosco Earth Campus in Ghana (photo: Anna Heringer). Back cover and inside pages: Details from "Ghost", textile from Bangladesh (photo: Günter König) Annual Financial Report 2024/25 Zumtobel Group AG 1 May 2024 to 30 April 2025 Five-Year Overview in EUR million 2024/25 2023/24 2022/23 2021/22 2020/21 Revenues 1,097.2 1,127.0 1,209.2 1,148.3 1,044.5 Adjusted EBIT 46.9 57.3 84.3 60.8 45.5 as a % of revenues 4.3 5.1 7.0 5.3 4.4 EBIT 33.0 49.5 84.3 60.8 43.4 as a % of revenues 3.0 4.4 7.0 5.3 4.2 Net profit for the year 15.5 24.7 60.0 45.8 45.6 as a % of revenues 1.4 2.2 5.0 4.0 4.4 Total assets 989.6 987.2 1,002.4 1,005.4 943.3 Equity 424.9 425.2 421.7 382.8 308.4 Equity ratio in % 42.9 43.1 42.1 38.1 32.7 Net debt 118.5 77.1 86.9 95.1 88.5 Cash flow from operating results 86.4 105.8 140.2 122.7 115.7 CAPEX excl. IFRS 16 54.2 50.8 54.5 45.3 38.1 as a % of revenues 4.9 4.5 4.5 3.9 3.7 R&D total 74.1 72.7 67.8 67.5 64.8 as a % of revenues 6.8 6.5 5.6 5.9 6.2 Headcount incl. contract worker (full-time equivalent) 5,299 5,350 5,503 5,782 5,813 Contents Five-Year Overview 2 Chief Executive's Review 4 The Zumtobel Group AG Share 7 Group Management Report 14 The Zumtobel Group - An Overview 14 Consolidated non-financial Statement 23 Review of Business Performance 107 Internal Control System and Risk Management 114 Outlook and Goals for 2025/26 123 Additional Information 124 Consolidated Financial Statements 130 Consolidated Income Statement 130 Consolidated Statement of Comprehensive Income 131 Consolidated Balance Sheet 132 Consolidated Cash Flow Statement 133 Consolidated Statement of Changes in Equity 134 Notes 135 Scope of Consolidation 198 Statement by the Management Board in accordance with § 124 (1) No. 3 201 Auditors Report 202 Independent Assurance Repor t 208 Consolidated Corporate Governance Report 2024/25 215 Commitment to the Austrian Code of Corporate Governance 215 The Management Board 217 The Supervisory Board - Experienced, Diverse, Independent 220 Measures to Support Women and Diversity Concept 228 Diversity on the Supervisory Board and Management Board 230 Changes after the Closing Date 231 Report by the Supervisory Board of Zumtobel Group AG for the 2024/25 Financial Year 232 Service 239 Chief Executive's Review Dear Shareholders, The 2024/25 financial year was more than challenging for our company as a result of the numerous global crises and weak economic environment. These developments forced us to adjust our revenue guidance for the Zumtobel Group together with the publication of nine-month results and were reflected in a slight 2.6% year-on-year decline in revenues to EUR 1,097.2 million in 2024/25. The Components Segment nearly reached the prior year level with revenues of EUR 299.3 million, while revenues in the Lighting Segment fell by 2.8% to EUR 864.0 million. Adjusted EBIT amounted to EUR 46.9 million, and the resulting EBIT margin of 4.3% is exactly in the middle of our forecasted range of 3% to 6%. We are addressing the challenges of the market and carefully following the many different developments -just the same as our competitors - and are convinced we will emerge stronger from the current phase. Due to the comparatively low share of revenues generated in the USA, US tariff policies have only an indirect influence on the Zumtobel Group but we are closely monitoring the effects on our customers and the economy as a whole. The demand for new construction in Europe is currently weak, and the market climate has become more challenging as a result of the extended decision processes caused by declining motivation to invest and an increase in project postponements. Our components business will remain very volatile and under constant pressure over the short term. Against this backdrop, we are continuing to act with the necessary caution: For the 2025/26 financial year, we are currently expecting a single-digit per cent decline in revenues and an adjusted EBIT margin again ranging from 1% to 4%. Zumtobel Group AG 1 May 2024 to 30 April 2025 Clear strategic focus on core exper tise FOCUSED[+] stands for the development and refinement of our previous FOCUSED strategy as the answer to current economic and geopolitical conditions. Our activities in the area of smart building infrastructure were also bundled more effectively. The goal is to strengthen the Zumtobel Group's orientation and make the company fit for the future - especially in connection with the progressive digitalisation of building infrastructure and the rising sustainability demands of lawmakers and customers, above all in Europe. Another focal point of continuous evaluation is the cost situation in our production network. The related activities are designed to increase the company's resilience and safeguard the competitive position of the Zumtobel Group with its three strong brands over the long term. The past financial year has also clearly shown that we must make painful decisions where necessary, for example at our plant in Les Andelys (France). The further development of our corporate strategy gives us the groundwork to optimally benefit from a possible economic upturn. The subsidy programmes announced at the European level and in Germany should have a positive impact on the development of the Zumtobel Group over the medium term. Focus on smart lighting solutions With our focus on "smart solutions", we are designing the future of light through targeted investments in research, technology and intelligent lighting systems. The Zumtobel Group's sensor-based lighting, data-based space usage and human centric lighting make an important contribution to greater energy efficiency and smart building technology. Our service offering in the Lighting Segment is growing steadily and together with "Smart Building Solutions", our new business area, expands our portfolio for intelligent, integrated lighting solutions. Strategic partnerships with SIEMENS and ABB underscore our claim to provide innovative, turnkey systems for building management. Sustainability and digitalisation remain cornerstones of the strategy Sustainability, as is well known, is one of the central pillars of our corporate strategy - in addition to Zumtobel's TECTON II and PANOS III, other Zumtobel Group's products make an active contribution to sustainability. Thorn's Chalice and Avenue luminaires are two examples: They follow the circular design rules defined by the Zumtobel Group and create transparency concerning recycling components, easy separation and second life options. They already reflect the central content of the planned Ecodesign for Sustainable Products Regulation (ESPR), and the inclusion of these aspects will be decisive for future circular business models. We made substantial progress on our way to net zero during the past year. The climate goals set by the Zumtobel Group were confirmed by the renowned Science Based Targets initiative (SBTi) and firmly anchored in the organisation - an important milestone in our sustainability commitment. A further key element of our strategy is, and will remain, the systematic digital transformation of the Zumtobel Group. We continued our work on existing initiatives - with measurable added value for our customers, employees and partners. Examples include the development of a new product information management system, the redesign of our web presence and the introduction of an e-commerce channel for the lighting brands. The keyword here is customer centricity - a comprehensive focus on the needs of our customers. Further development of our bestseller TECTON One highlight in recent months was the product launch of the new TECTON II continuous row system from our Zumtobel brand. TECTON II gives our customers a highly efficient, sustainable carrier system with up to 15 poles for particular flexibility in the design of individual lighting applications. Light, emergency lighting, sensors and controls - all these functions can be combined in a single system to substantially reduce energy consumption. The intuitive plug-and-play design allows for tool-free installation that is over 70% faster than comparable products. Company anniversary: 75 years of Zumtobel Dear Shareholders: 2025 is a special year for us. The Zumtobel brand is celebrating its 75 th anniversary - an important milestone in our corporate history. Our company was founded by Dr. Walter Zumtobel in 1950 as "Elektrogeräte und Kunstharzpresswerk W. Zumtobel KG" and started with the production of ballasts for fluorescent tubes - at that time, an entirely new technology. The key to our company's success has remained unchanged from the very beginning: Technology, a focus on customers and the market, and the unconditional claim to design innovative lighting solutions for tomorrow. This success would not have been possible without the untiring commitment of our around 5,300 employees across the world. With their dedication, exper tise and passion, they make a vital contribution to successfully meeting challenges and helping us to stand where we are today. I can therefore look to the future with optimism in spite of the challenging environment. We hope you will continue to support us in the future. Alfred Felder Chief Executive Officer (CEO) The Zumtobel Group AG Share The global stock markets in 2024/25 The global stock markets, on the whole, remained robust from May 2024 to April 2025 in spite of the geopolitical tensions and economic uncer tainty. In Europe, stock prices were supported by moderate economic stabilisation and interest rate cuts by the European Central Bank which led to generally positive development of the underlying index. The S&P 500 reached a new record high during the 2024/25 financial year before profit-taking and economic concerns led to a slight correction. Japan was volatile and closed the period under review with slightly negative performance. Developments on the other Asian markets were also mixed, with a positive trend in China. The leading Austrian ATX index rose by 15.1% in 2024/25, and the ATX Prime was also positive at 15.9%. The EURO STOXX 600 increased by 4.5% during this same period. Other indexes like the DAX (25.5%) in Germany, the EURO STOXX 50 (4.9%) in Europe, and the Dow Jones (6.5%) in the USA also closed on 30 April 2025 with a year-on-year improvement in performance. Development of the Zumtobel Group AG share The Zumtobel Group AG started the reporting year with sidewards movements before rising steadily to a high of EUR 6.36 on 25 June 2024. This phase was followed by a steady decline in value which was caused primarily by the difficult economic environment. The restructuring measures introduced were unable to halt the downward trend during the second half year due to the deteriorating economic climate. The share's performance came under additional pressure at the end of the financial year from the tariff measures introduced by the US government and the resulting increase in uncer tainty. The annual low of EUR 4.30 was reached on 7 April 2025. The share recovered slightly towards the end of the financial year but closed on 30 April 2025 at EUR 4.63. The Zumtobel Group AG share lost 22.6% during the 2024/25 financial year, while the Austrian ATX Prime rose by 15.9%. Zumtobel Group AG share down 22.6% vs. the previous year Development of the Zumtobel Group AG Share (in %) 140 120 100 80 60 40 20 0 01.05.2024 01.07.2024 01.09.2024 01.11.2024 01.01.2025 01.03.2025 30.04.2025 Zumtobel Group AG ATX Prime Market capitalisation of EUR 200 million as of 30 April 2025 Zumtobel family syndicate holds 36.16% Dividend policy Dividend recommendation for 2024/25: 15 euro cents per share The market capitalisation of Zumtobel Group AG reflected the development of the share price in 2024/25. Based on 43,146,657 common shares (2023/24: 43,146,657), the company was valued at EUR 200 million on 30 April 2025 (2023/24: EUR 258 million). The average daily turnover on the Vienna Stock Exchange equalled 33,800 in 2024/25, compared with 29,802 in the previous year (double-count, as published by the Vienna Stock Exchange). Key Data on the Zumtobel Group AG Share 2024/25 Closing price at 30.04.2024 EUR 5.98 Currency EUR Closing price at 30.04.2025 EUR 4.63 ISIN AT0000837307 Performance 2024/25 (22.6)% Ticker symbol Vienna Stock Exchange (XETRA) ZAG Market capitalisation at 30.04.2025 EUR 200 million Market segment ATX Prime Share price - high at 25.06.2024 EUR 6.36 Reuters symbol ZUMV.VI Share price - low at 07.04.2025 EUR 4.30 Bloomberg symbol ZAG AV Ø Turnover per day (shares) 33,800 Number of issued shares 43,146,657 Shareholder structure The shareholder structure of Zumtobel Group AG has not changed significantly since the previous year. The Zumtobel family syndicate, with approximately 36.16% of the voting rights, has remained the stable core shareholder of Zumtobel Group AG since the initial public offering. The remainder of the shares is held predominately by institutional investors, according to the information available to management. The company held 808,945 treasury shares at the end of the 2024/25 financial year. Dividend policy Zumtobel Group AG works to provide its shareholders with continuous and reliable dividends. The company follows a policy which calls for a distribution of approximately 30% to 50% of consolidated net profit after the deduction of any special effects. To safeguard financial stability at all times, the specific amount of the dividend is dependent on the debt coverage ratio. Dividend proposal for the 2024/25 financial year The Zumtobel Group generated net profit of EUR 15.5 million in the 2024/25 financial year. The Management Board plans to make a recommendation to the Supervisory Board and, subsequently, to the general meeting of Zumtobel Group AG, which is scheduled for 26 September 2025, to distribute a dividend of 15 euro cents per share for the 2024/25 financial year (2023/24: 25 euro cents per share). That would represent around 42% of net profit and, based on the closing price of the share in 2024/25, a dividend yield of 3.2%. Investor relations activities focused on transparency and dialogue Transparent, continuous and open communications with all capital market participants have top priority for Zumtobel Group AG. The Management Board and investor relations department continued their in-depth dialogue with investors and analysts in Austria and other countries during the reporting year with participation in road shows and conferences as well as numerous one-on-one meetings. Three well known Austrian and international analysts issued regular reports in 2024/25 on the Zumtobel Group AG share together with their evaluation of the corporate strategy and estimates for the valuation of the company (in alphabetical order): Erste Bank, Kepler Cheuvreux and ODDO BHF. In connection with quarterly reporting and the publication of the annual financial report, the Zumtobel Group's management holds regular conference calls to provide details on the latest results. The financial community is also supplied with a wide range of interesting information, e.g. corporate publications, contacts, the financial calendar and other interesting facts and figures on the investor relations website under https://z.lighting/en/group/investor-relations . Intensive contacts with investors and analysts 1. Group Management Report Contents Group Management Report 14 The Zumtobel Group - An Overview 14 The Company 14 Products and production locations 15 Market position and brand positioning 17 Key success factors for the Zumtobel Group 18 Structural revenue drivers for professional lighting 19 The corporate strategy - FOCUSED[+] 20 Consolidated non-financial Statement 23 ESRS 2 23 Environmental related information 43 Social related information 80 Governance related information 103 Review of Business Performance 107 The economic environment 107 The development of business 108 Significant events since 30 April 2024 113 Internal Control System and Risk Management 114 Internal control system 114 Risk management 115 Outlook and Goals for 2025/26 123 Additional Information 124 Information pursuant to § 243a of the Austrian Commercial Code 124 Significant events after the balance sheet date 125 Group Management Report The Zumtobel Group - An Overview1 Leading company in the lighting industry Wide-ranging product and service portfolio The Company The Zumtobel Group is an international lighting corporation that was founded in Dornbirn, Vorarlberg (Austria) in 1950. This listed company operates nine production plants on three continents and has sales offices and partners in roughly 90 countries. The Group employed a workforce of around 5,300 as of 30 April 2025 and generated revenues of EUR 1,097.2 million in the 2024/25 financial year. The founding Zumtobel family has served as a stable core shareholder since the IPO in 2006 and holds as of 30 April 2025 roughly 36.16% of share capital. With its core brands - Thorn, Tridonic and Zumtobel - the Group offers its customers a wide-ranging portfolio of products and services. The Zumtobel Group consists of two operating segments which form the basis for corporate management: the Components Segment and the Lighting Segment. Each segment has its own sales, product portfolio, R&D, logistics & supply chain and production organisation. Tridonic, the components brand, forms the basis for the Group's leading role in the production of hardware and software for lighting systems (LED light sources, LED drivers, sensors, emergency lighting and lighting systems management). In the Lighting Segment, the company is one of the European market leaders for luminaires and lighting solutions with its Thorn and Zumtobel brands. The Zumtobel Group's service offering is one of the most extensive in the entire lighting industry: It includes consulting on intelligent lighting management and emergency lighting, light contracting, design, project management for turnkey lighting solutions, and new services for smart building solutions. The product portfolio in this area has grown not only with the Group's own products but also through partnerships, among others with Siemens and ABB. The real time localisation of goods and people by way of the lighting infrastructure is only one example. 1 This section fulfills the disclosure requirements of the European Sustainability Reporting Standards (ESRS), which are applied in the consolidated nonfinancial statement as part of Zumtobel Group AG's Group Management Report (ESRS 2-SBM-1, §38). Applications represent the focal point for both the Lighting Segment and the Components Segment. Indoor includes applications for industry (incl. logistics, halls and car parks), offices, education and health (incl. hospitals, schools and universities) as well as the retail trade (incl. supermarkets, home furnishing stores and high-end brand retail), art & culture (incl. museums and galleries) and exhibition areas (incl. gastronomy). Outdoor addresses applications for roads, tunnels, sport facilities and exterior lighting for public areas, including facade lighting. Services cover all project and software-oriented activities. These application-based areas define the product portfolio and are also reflected in the sales organisation. The sales organisation reflects the two segments and their different sales channels. In the Components Segment, this involves OEM sales (Original Equipment Manufacturer) to luminaire producers, sales via distributors as well as the sale of intelligent solutions to electrical and system planners. Sales in the Lighting Segment are project-based and cover construction projects and the related target groups (e.g. architects, lighting and electrical planners, contractors and developers), sales through retail channels, and direct sales to large customers and public contracting entities. Lighting solutions are also sold over special online sales channels. The Zumtobel Group is committed to sustainable business operations and, through its solutions, to help its customers more easily reach their sustainability goals. Zumtobel Group AG serves as the parent company of the Group and provides numerous corporate management and service functions for the brands. These central functions include finance, human resources, legal, audit & compliance, insurance, sustainability, IT and process management, information security and data protection, strategy and transformation projects, central procurement as well as corporate communications and investor relations. Products and production locations2 The Zumtobel Group's business model covers all key areas of the professional lighting value chain - from components, luminaires and light management systems to complete lighting solutions, ser vices and smart building solutions. 2 This section fulfills the disclosure requirements of the European Sustainability Reporting Standards (ESRS), which are applied in the consolidated non- financial statement as part of Zumtobel Group AG's Group Management Report (ESRS 2-SBM-1 §40ai and §42a as well as ESRS E5-5 §35). Focus on specific applications Sales structure based on target groups and types of business Management and service functions for the entire Group Full coverage of the value chain Components Segment Lighting Segment | Luminaires | Light management | Lighting solutions | Services & solutions Smart Building Solutions | LED modules | LED drivers | Sensors | Emergency lighting | Lighting controls and connectivity INDOOR INDOOR & OUTDOOR New partnerships New IoT solution VALUE CHAIN Global production network The Zumtobel Group's lighting and components plants are organised in a global production network. Management relies on lean management, the automation of business processes, and the use of location-specific cost advantages to continuously optimise product costs. Products for both the Lighting Segment and the Components Segment are produced in individual areas at Dornbirn, Niš and Spennymoor in separate areas and under separate organisation and management. The Zumtobel Group operated nine plants on three continents as of 30 April 2025. PRODUCTION NETWORK OF ZUMTOBEL GROUP AS OF 30 APRIL 2025 Spennymoor, UK Components for outdoor and emergency applications Thorn production site for mainly UK Lemgo, Germany Competence center spot and down lights Highland, USA Local site for US demand only Dornbirn, Austria Components for high-end solutions and technology ramp Highly automated and high technology site Niš, Serbia Components for volume business in Europe High volume luminaire production for Europe Shenzhen, China Components production site for standard applications Lighting Components segment (5 Plants) segment (4 Plants) Market position and brand positioning3 The Zumtobel Group is active worldwide, but Europe remains the most important market with around 85% of total revenues. The professional lighting industry in Europe is highly fragmented but the Zumtobel Group holds a strong position with its internationally established Zumtobel and Thorn lighting brands: The market share in Europe equals roughly 7%. The worldwide components industry, in contrast, is characterised by greater consolidation. With Tridonic, the Zumtobel Group also holds a leading position in lighting management and control gears. Tridonic, the Group's technology brand, supports customers with intelligent hardware and software solutions. With over 2,400 patents, it is a global innovation driver for light-based network technology and the development of scalable solutions that support the development, among others, of new business models for lighting producers, building managers and system integrators. Tridonic is not only active in the production of components and system solutions for the Group's lighting brands, it also serves as an OEM supplier for luminaire producers throughout the world and generates around 80% of its revenues outside the Zumtobel Group. The brand's innovative strength is also demonstrated by a recent award from the Digital Illumination Interface Alliance: For the light management in Bibliotheca Alexandrina, Tridonic received a "highly commended" award. Designing innovative, high-quality lighting solutions for every situation is the mission and passion of the Zumtobel brand. The right lighting in the right context creates atmosphere and can have a positive influence on the quality of life. The Zumtobel portfolio includes innovative and sustainable lighting solutions and high-quality luminaires for interiors that are optimised for the specific area of application to meet people's needs (Human Centric Lighting). Other product areas address applications in intelligent lighting management and emergency systems. The most important applications for these solutions are industry, education, retail, healthcare, office, gastronomy, and art and culture. Valuable impulses for the further development of the portfolio are created not only through Zumtobel's own internal research and development, but also by long-standing cooperation with leading international architects, lighting planners, designers and artists as well as external partners in the project business - true to the brand claim to continuously improve the aesthetics of light and, in doing so, strike out in new directions. This conviction is illustrated, among others, by the PANOS III luminaire family and SLOTLIGHT LynX® activated lighting line, which both received the Red Dot Design Award 2025 and the iF Design Award 2025. Thorn is a leading quality supplier of professional solutions for indoor and outdoor lighting and stands for high performance, cost efficiency and, above all, user-friendly lighting and integrated controls. Its luminaires and lighting solutions are marketed worldwide, among others to wholesalers, electricians, planners and municipalities as well as end-users. Energy-efficient Thorn luminaires support a wide variety of applications in and around buildings, urban areas, sport venues, tunnels and streets. One important goal is the protection of the nighttime sky with the help of so-called dark sky friendly solutions, and Thorn has extensive know-how in this area. Its functional products also cover all conventional applications from offices to supermarkets, industrial buildings, schools and healthcare facilities. Thorn's position as a leading provider of lighting solutions was underscored, among others, with the "Lighting Project of the Year" award from the Highway Electrical Association (HEA) in November 2024 for the innovative and environmentally friendly lighting of the des Aykley Heads walkway in Durham. 3 This section fulfills the disclosure requirements of the European Sustainability Reporting Standards (ESRS), which are applied in the consolidated non- financial statement as part of Zumtobel Group AG's Group Management Report (ESRS 2-SBM-1 §40aii and §42b). Leading position in a highly fragmented lighting market Tridonic - the specialist for the development of new LED systems and technologies for connected light Zumtobel - the premium brand for architectural lighting Thorn - the performance brand for the international volume business Strong sales structure Extensive know-how in lighting applications Well positioned for new IoT applications Key success factors for the Zumtobel Group The Zumtobel Group's leading competitive position is based primarily on three strong brands with broadly diversified market access, extensive know-how in lighting applications and a clear technological advantage in individual areas. In order to optimally address the various markets, the group has created so-called sales regions - D/A/CH, Europe-West/South, and Europe-North/East - that are designed, among others to strengthen the market presence in Europe. The sales function had nearly 1,700 employees in 2024/25, whereby 1,400 employees work for the Lighting Segment and 265 employees for the Components Segment. The design of a customer-specific lighting solution requires extensive knowledge of the product portfolio, the innovative technological developments and the specific lighting application. The Zumtobel Group sales staff must therefore understand - and be able to convey - not only the technical and functional aspects of light and the impact on energy consumption, but also the aesthetic and emotional implications and the positive influence of good lighting on the user's sense of well-being. This applies, in particular, to the sales employees in the Lighting Segment. Accordingly, detailed and wide-ranging education programmes and continuous training are decisive for the quality of sales. "Launch windows" are held by the product managers of the brands twice each year to familiarise their sales colleagues with the latest product developments in the associated lighting applications. In these programmes, launch managers work closely with the interdepartmental teams to present the benefits and availability of the new products. In order to further strengthen its leading technological position and distance itself from the competition, the Zumtobel Group regularly invests in research and development (R&D): A total of EUR 74.1 million was invested in R&D during 2024/25. The further development of lighting quality based on LED technology, rapid digitalisation and the increasing complexity of intelligent lighting systems create continuous challenges for R&D. Luminaires and lighting solutions together with their components have become central elements of the Internet of Things (IoT) and, consequently, part of the new applications and business models which go beyond lighting. The Zumtobel Group is one of the largest suppliers in Europe - its optimal positioning forms the basis to master these challenges and creates clear advantages in competition with the many small and medium-sized luminaire producers. An extensive patent portfolio and close collaboration with international light design partners and architects underscores the company's innovative power. The Keyture product brand expanded the Zumtobel Group's value chain and is now integrated in the Thorn and Zumtobel product lines for smart building solutions. This modular, multifunctional software suite in combination with intelligent sensors covers solutions for maximum energy savings (control), precise information for the maintenance and monitoring of sustainability goals (report), space optimisation in real time (view), the location and tracking of objects (locate) and the monitoring of environmental factors and operational excellence (sense). Structural revenue drivers for professional lighting Construction activity - both new construction as well as the refurbishment of existing buildings - is one of the central revenue drivers for professional lighting. New construction is almost always focused on the installation of new lighting, while refurbishment creates a variety of opportunities for the modernisation of lighting systems. These new systems help to reduce energy consumption and form the basis for a business case with a positive return on investment (ROI). The Zumtobel Group's portfolio supports the following alternatives: >> The conversion of existing lighting through so-called retrofit kits, which involve the replacement of the lighting sources and, as a rule, also the appearance and control electronics. >> The installation of new LED luminaires. The market potential for lighting solutions in Europe is based on roughly two-third of refurbishment measures and only one-third of new construction. This potential can be quantified by comparing construction volumes and lighting volumes. Key factors for future structural revenue drivers are the efficiency gains between older and newer lighting equipment and the resulting energy cost savings. The extent of the energy cost savings is dependent not only on the energy efficiency of the luminaire but also on the use of intelligent lighting systems. LED-based lighting solutions with motion and daylight sensors can reduce electricity consumption by up to 80% compared with conventional systems. Additional functions like real-time energy monitoring or remote maintenance increase transparency for users and reduce operating costs for facility management. State-of-the-art lighting management with cloud architecture and wireless communication also facilitate the integration of further sensors and actuators. New functions and business models are also supported - for example, the tracking of persons and assets over the lighting network, the preparation of heat maps or the measurement of environmental parameters like the air quality and temperature. In this way, energy consumption and comfort can be optimised throughout the entire building. Construction activity, especially in the new building sector, has been very reserved in recent years. The volume of construction in Europe has still not completely recovered from the financial crisis in 2008 and the economic consequences of the COVID-19 pandemic. Industrial applications, in particular logistics and computing centres, have remained constant at a high level, but office projects have declined sharply as a result of the new work and home office trends. Retail space has been negatively affected by the growth in online and is steadily declining. These economic developments and the above-mentioned technological opportunities underscore the need to develop and test new business models in pilot projects. The possibilities can include alternative financing models (e.g. pay-per-use) as well as digital add-on-services that are not sold but monetarised through annual usage fees. In addition to digitalisation, sustainability is becoming an increasingly important factor. It creates new challenges, but also creates opportunities for new services and business models. For example: New buildings must calculate and disclose the global warming potential (GWP) of their lighting solutions. The required calculation includes the energy consumption, the materials used and the transport costs for raw materials and finished products. Additional improvements are possible when recycled materials are used in new products and luminaires are returned to the materials cycle at the end of their service life. First projects in this area were realised during the past financial year - they show the potential of these solutions and possible factors to set Zumtobel Group apart from the competition. Energy efficiency and energy cost savings as a future structural revenue driver Growing importance of sustainability FOCUSED becomes FOCUSED[+] The corporate strategy - FOCUSED[+] Against the backdrop of a persistently challenging market environment, increasing global uncer tainties, and economic developments, the FOCUSED strategy has been refined. FOCUSED has evolved into FOCUSED[+], an advancement that addresses current economic and geopolitical conditions while further consolidating our activities around smart building infrastructure. The objective is to build on the existing foundation, further strengthen the strategic direction of the Zumtobel Group, and position the company for the future in light of the increasing digitalization of building infrastructure and the opportunities arising from more demanding sustainability requirements from legislators and customers, particularly in Europe. As part of this process, all strategic elements have been further developed and adjusted in their orientation to address the increased requirements. This enables us to respond appropriately to current challenges, seize opportunities in a targeted manner, identify risks early, and sustainably reduce costs. At the same time, consistent strengthening of core competencies is a key focus, in order to increase the company's resilience and to secure the long-term competitiveness of the Zumtobel Group with its three strong brands. By further developing its strategic orientation along the value chain toward smart building ecosystems, the Zumtobel Group is positioning itself to be resilient in the current volatile market environment. At the same time, important foundations are being laid to optimally benefit from a future expected economic upturn. The funding programs announced at the European level and in Germany are sending promising signals and are expected to have a positive impact on the Zumtobel Group's business development in the future. FOCUS ON KEY MARKETS AND APPLICATIONS: The Zumtobel Group will continue to focus on its target markets and on sustainable, profitable growth in core application areas as well as defined future fields. Building on its unique customer access and strong project implementation exper tise, the Zumtobel Group is strengthening its position in the most attractive markets in Europe and is taking advantage of short-term opportunities in growing regions, such as the Middle East (e.g., Saudi Arabia). At the same time, the company is withdrawing from less attractive markets and applications. The focus applications in the indoor sector are primarily industry, office and education, retail, healthcare, as well as art and culture. In the outdoor sector, the focus is on lighting for urban areas and streets, as well as architectural and sports lighting. In the Lighting Segment, the Zumtobel Group is concentrating on key markets and applications with an emphasis on Europe, while in the Components Segment it addresses the global market, gradually expands its geographic presence, and achieves economies of scale. OPERATIONAL EXCELLENCE: The Zumtobel Group continuously improves its product and process quality within its global production network. In addition, the company constantly analyses and optimizes cost structures along the entire value chain. Based on its own production facilities and a globally competitive supplier network, the Zumtobel Group stands for reliable deliveries, customer-oriented service, and production sites focused on sustainability. COMPETENCE AND INNOVATION AS KEY DIFFERENTIATOR: The Zumtobel Group is, and will remain, an innovation leader for components and sensors and is systematically expanding its high exper tise in miniaturisation and product integration. The seamless interaction between components, sensors, hardware, firmware and software as drivers for the digitalisation of lighting have become increasingly important for the development of Internet of Things (IoT) solutions in the world of light - for both indoor and outdoor applications. The Components Segment is investing in sensor technology and its integration in the light ecosystem and digitalisation to strengthen its market position and improve customer service. In the Lighting Segment, the high-quality, energy-luminaires, lighting solutions and emergency lighting include these state-of-the-art sensors and controls. UNIQUE BRANDS UNDER ONE ROOF: The strong brands of the Zumtobel Group - Tridonic, Thorn, and Zumtobel - cover the majority of the entire value chain in the lighting sector, from components to connected lighting solutions and the design of innovative, sustainable, and user-centred buildings. In the Components Segment, the Zumtobel Group relies entirely on its technology subsidiary Tridonic, which stands out for its close customer relationships. Building on exper tise and quality, Tridonic strengthens its partnerships with existing customers through individual, customer-specific solutions as an alternative to standard offerings. Tridonic aims to further expand its position as a leading partner for sustainable lighting technology, particularly in sensor-based lighting and IoT. In the Lighting Segment, a consistent two-brand strategy (Thorn & Zumtobel) is pursued, with a balanced product portfolio and a mix of project, key account, and trade business. The flagship brand Zumtobel aims to establish itself as Europe's leading provider of multi-application, circular economy, and cleantech solutions. With the leading international brand Thorn, the company addresses a very broad customer base in the professional lighting business, offering coordinated indoor and outdoor solutions. Thorn's focus is on connectivity, centralized control, and scalability for both indoor and outdoor areas - all with sustainability and efficiency goals in mind. SMART SOLUTIONS AND SERVICES: The Zumtobel Group focuses on innovation and turnkey solutions consisting of products, systems, and services, including digital offerings.These are part of its differentiating features and drivers for future growth. The lighting company shapes the future through consistent investment in research and development as well as technology around sensor-based lighting - especially for intelligent building systems - to increase energy efficiency, create smart environments, optimize human-centric lighting, and enable intelligent space utilization. Connectivity and data analysis are promoted to enable new business models. Services are being further expanded as an essential part of the offering, particularly in the Lighting Segment. Additionally, the new Smart Buildings Solutions division consolidates the product portfolio that develops innovative, intelligent, sustainable, and user-centred lighting solutions in buildings and advances connectivity to building management systems. Against this background, strategic partnerships with SIEMENS and ABB have also been established. Through open, connected systems and advanced controls and smart space applications, energy efficiency, safety, and room quality can be increased, space utilization optimized through sensor-based data analysis, and end-to-end solutions offered with a strong customer focus. With its new software solution Keyture, the Zumtobel Group can create a holistic service experience for customers and strengthen collaboration and partnership. ENVIRONMENT AND ENGAGED EMPLOYEES: The Zumtobel Group's sustainability goals are to reduce emissions, establish itself as the partner of choice, and implement circular economy principles. The company contributes to a more sustainable world and creates added value for its customers by maximizing energy savings, minimizing material consumption, and offering circular business models - thus helping customers achieve their own sustainability goals. In addition, the Zumtobel Group aims to continue providing an environment across the group in which employees can grow personally and professionally, thereby making a significant contribution to the company's success. DIGITAL PROCESS TRANSFORMATION: The Zumtobel Group is driving a comprehensive digital transformation across all business areas. In addition to integrating advanced digital technologies to optimize internal and end-to-end processes, this also includes customer interaction and product innovations. From secure intelligent lighting systems and IoT-enabled components to data-driven services and predictive maintenance, the digital transformation strengthens the development of smarter, better-connected lighting solutions. The Zumtobel Group adopts agile methods, cloud and IoT platforms, and AI-driven insights, thereby not only improving operational efficiency but also opening up opportunities for new business models as well as customer and employee experiences that shape the future of lighting. Consolidated non-financial statement ESRS 2 BP-1 | General basis for preparation of sustainability statements This consolidated non-financial statement was prepared in accordance with the Austrian Sustainability and Diversity Improvement Act (Nachhaltigkeits- und Diversitätsverbesserungsgesetz, NaDiVeG), the implementing act for EU Directive 2014/95/EU. It covers the sustainability topics material to the Zumtobel Group. In line with Section §267a of the Austrian Commercial Code (Unternehmensgesetzbuch, UGB), certain issues must be addressed in the non-financial statement if they are relevant for understanding the impacts of a company's activities. This report covers the relevant topics in the following sections: E1 and E5 (environmental matters), S1 and S2 (employee matters), and S1, S2 and S4 (respect for human rights) and G1 (anti-corruption and bribery). The consolidated sustainability report was prepared in accordance with Article 29a of the Accounting Directive and complies with European Sustainability Reporting Standards (ESRS) and the EU Taxonomy Regulation. This non-financial statement is valid for the 2024/25 financial year and has been prepared for the period from 1 May 2024 to 30 April 2025 in line with the financial reporting. The datapoints are reported on a consolidated basis following the same principles as the annual financial statements. All disclosures in the report therefore relate to the parent company Zumtobel Group AG and the subsidiaries under its control. Identification of the material impacts, risks and opportunities for the Zumtobel Group (IROs) extends to the entire upstream and downstream value chain. Policies, actions and targets pursued by the Zumtobel Group relate to the company's internal organisation and do not cover the entire value chain. The Code of Conduct for Business Partners, which is binding for all business partners and therefore spans the entire value chain of the Zumtobel Group, is one exception to this rule. The metrics included in this report refer exclusively to the Zumtobel Group, with the exception of the Scope 3 emissions calculation. The Zumtobel Group has not used the option to omit specific information corresponding to intellectual property, know-how or the results of innovation from this report. BP-2 | Disclosures in relation to specific circumstances The standard definitions of short-, medium- and long-term as set out in ESRS 1 Section 6.4 have been used. A short-term time horizon describes a period of up to one year. Medium-term refers to a time horizon between one and five years. A long-term time horizon is defined as a period of more than five years. In cases where real data are not available for the Zumtobel Group, estimates are used. As a result, the actual amounts may vary. Estimates are used when preparing the climate risk analysis, which results in outcome uncertainty (for details, see E1 SMB-3). With regard to energy and fuel consumption at sales offices, the figures received are extrapolated based on the number of square metres, details of which are given in Section E1-4. In order to calculate its Scope 3 emission levels, the Zumtobel Group cites secondary data and estimates (emission factors, operating periods, product life, etc.). More information on this topic can be found in Section E1-6. These metrics are not recorded separately for the Group's individual sales offices. Information on how these estimation methods are applied can be found in the relevant sections. The Zumtobel Group does not expect any changes in the assumed inputs (activity data, emission factors, extrapolation factors) to result in any outcome uncertainty or a material change in the reported metrics. Framework Consolidation Value Chain Initial application of the CSRD and ESRSs resulted in changes to the non-financial statement published by the Zumtobel Group in the financial year under review. These changes were necessary to ensure compliance with the pertinent legal requirements. As this was the first year in which ESRSs were applied, figures from this financial year can only be compared with figures from previous years to a limited extent. In accordance with ESRS 1 Section 9.1, the disclosure requirements have been incorporated by reference. The table below outlines the corresponding requirements. All disclosures are included in this report, and no reference has been made to sources not included in this document. Datapoint, disclosure Mandatory data point Reference to section Page number GOV-1:The role of the administrative, management and supervisory bodies ESRS 2, GOV-1 §21b ESRS 2, GOV-1 §21d ESRS 2, GOV-1 §21e Corporate Governance Report 3.2 The Management Board 3.3 The Supervisory Board - Experienced, Diverse, Independent 3.3.4 Independence of the Supervisory Board members from 215 217-220 220-228 225 GOV-3: Integration of sustainability-related performance in incentive schemes GOV-5: Risk management and internal controls over sustainability reporting E1, ESRS 2, GOV-3 §13 ESRS 2, GOV-3 Integration of sustainability- related performance in incentive schemes ESRS 2, GOV-5 §36a Group Management Report Corporate Governance Report 26 from 14 from 215 SBM-1: Strategy, business model and value chain ESRS 2 SBM-1, §38 ESRS 2 SBM-1, §40a i. and ii. ESRS 2 SBM-1, §42a and b Group Management Report: The Zumtobel Group - An Overview 14-15 14 ESRS 2 SBM-1, §40 g E1-1 | Transition plan for climate change mitigation 60-62 SBM-2: Interests and views of ESRS 2, SBM-2 §43 ESRS 2, SBM-2 Interests and views of 30-32 stakeholders S1-SBM-2 §12 S2-SBM-2 §9 S4-SBM-2 §8 stakeholders GOV-1 | The role of the administrative, management and supervisory bodies Consisting of four managing members (100% male) ), the Zumtobel Group's Management Board is the operational governing body with ultimate responsibility for sustainability. The Supervisory Board of Zumtobel Group AG comprises nine members - six shareholder representatives elected by the Annual General Meeting (67%) and three employee representatives delegated by the Works Council for an indefinite period (33%). Of the nine members, 33% are female and 67% are male. The Supervisory Board is responsible for overseeing the non-financial statement. All members of the Supervisory Board are independent. Each quarter, the Management Board routinely updates the Supervisory Board on current sustainability topics with the support of Group Sustainability. Please refer to Sections 3.2 The Management Board, 3.3 The Supervisory Board - Experienced, Diverse, Independent, and 3.5.3 Supervisory Board of the Corporate Governance Report for more information, particularly with regard to the tasks performed by the Supervisory Board and the Management Board. The following table provides an overview of the sector and product expertise of the members of the Executive Board and the head of Supervisory Board, including the deputy members of the management. Name Management Board / Supervisory Board Expertise relevant to sectors and products Geographical expertise Alfred Felder Chairman, Chief Executive Officer Electrical engineering, business administration Global Thomas Erath Chief Financial Officer Finance, business administration EMEA Bernard Motzko Chief Operating Officer Mechanical engineering, business administration Global Marcus Frantz Chief Digital Transformation Officer IT & digitalisation, business administration EMEA Karin Zumtobel-Chammah Chairwoman of the Supervisory Board Business administration, finance Global Georg Pachta-Reyhofen 1st Vice-Chairman Mechanical engineering, automotive industry Global Volkhard Hofmann 2nd Vice-Chairman Consulting, industry EMEA The Sustainability Committee, consisting of the Management Board as well as the Group Sustainability department, representatives of the brands and various department managers, makes decisions regarding the strategic direction of the Zumtobel Group's sustainable development. Quarterly meetings are held to determine the reporting requirements, key topics, non-financial indicators and the sustainability strategy, as well as to define mandatory targets, deadlines and actions. At the meetings, members of Group Sustainability present on recent developments with respect to material sustainability topics. This transfer of knowledge and innovations is based on ongoing training, relevant professional and industry experience, as well as interdisciplinary and ongoing coordination with the departments on strategic and operational topics. Metrics, targets and actions are also monitored on a continuous basis. Dedicated break-out sessions are held with the Management Board for specific topics. As a result, the entire Management Board possesses suitable expertise to oversee and manage sustainability topics. Group Sustainability is responsible for coordinating sustainability management and is headed by the Group Sustainability Director, who reports to the Chairman of the Zumtobel Group's Management Board. The Group Sustainability department maintains an ongoing dialogue with the specialist departments. This organisational set-up ensures horizontal and vertical cross-divisional integration of sustainability management in the Zumtobel Group. It includes, in particular, relevant processes and controls for material impacts, risks and opportunities identified, which will be developed further in the coming years in the context of the nonfinancial statement. Contacts from the specialist departments maintain an ongoing dialogue with the Group Sustainability team with a view to implementing the sustainability targets and planned actions in the business units. The former are responsible for the material IROs and report to the Management Board members. This means that the sustainability performance of material impacts, risks and opportunities of the Zumtobel Group is managed by the Management Board. The results from the double materiality assessment were presented to both the Management Board and the Supervisory Board. The results of the double materiality assessment were approved by both governing bodies for the 2024/25 financial year. Responsibility for monitoring the process for the sustainability report lies with the Supervisory Board. GOV-2 | Information provided to and sustainability matters addressed by the company's administrative, management and supervisory bodies The Management Board is kept continuously updated on all material IROs and takes them into account when developing the FOCUSED[+] corporate strategy, in relevant transactions and in the risk management process. IROs are assigned to the specialist departments, where they are developed operationally. Sustainability Committee The Management Board focuses on the overarching targets, including the performance of the associated actions and policies. Overarching targets are broken down to individual targets in the specialist departments. The respective specialist departments are responsible for achieving the detailed targets and take them into consideration for important transactions and decisions. Policies are continually adapted by the departments as required and approved by the Management Board. Corresponding actions that are implemented and prioritised on the basis of approval from the Management Board are derived from the Zumtobel Group's material sustainability matters. Each year, the Supervisory Board discusses and approves all IROs as part of the presentation of material sustainability matters. Over the course of the year, the Supervisory Board (especially the Audit committee) is briefed on the relevant IROs in their specific context, such as the reduction in emissions as part of ESG incentive measures and diversity aspects through the implementation of the DE&I strategy. It receives updates on workforce health metrics from the executive board on corporate policy in connection with the prevention of corruption and bribery from the Compliance department. Risks to which the Group is exposed are communicated by Risk Management every six months. GOV-3 | Integration of sustainability-related performance in incentive schemes By taking sustainability-related performance into consideration (in the form of ESG targets), the Zumtobel Group ensures that relevant topics are given the necessary acknowledgement. Financial and non-financial performance criteria are taken into account in the variable remuneration policy. Four ESG targets with an overall weighting of 20% are included in the overall achievement of the short-term incentive (STI).4 This variable remuneration is granted to all employees contractually granted an STI and therefore to every employee who plays a significant role in the development of the Group. The rules governing variable remuneration also apply to the entire Management Board. The Supervisory Board is excluded from this variable incentive scheme.Target attainment is measured on the basis of a range between 0% and 200%. Criteria for environment, social and governance aspects are defined for the ESG targets and enforced through the setting of concrete targets. The specific target value as well as the minimum and maximum values are approved annually by the Supervisory Board before the start of the respective financial year as part of the annual budget approval. The following ESG targets apply to the 2024/25 fiscal year and are based on a target achievement of 100%: >> Reduction of CO 2 e-emissions (from production sites) to 9,500 tons >> Supply chain due diligence: digital onboarding of 100% of direct suppliers in DigiSus >> Global employee survey: increase employee satisfaction by 3 points in 3 areas >> Implementation of reporting standards Accordingly, 25% of the Zumtobel Group's ESG targets are linked to climate-related topics. The actual share of climate-related targets amounts to 180% target achievement in fiscal year 2024/25. This remuneration is calculated on the basis of the GHG emissions targets stated in E1-6. Please consult Section 2.6.6.13 Defined benefit remuneration systems in the Consolidated Financial Statements for more information on the Zumtobel Group's incentive scheme. 4 For further details, please refer to the remuneration report of the Zumtobel Group. GOV-4 | Statement on due diligence Embedding due diligence in governance, strategy and business model Engaging with affected stakeholders in all key steps of the due diligence Identifying and assessing negative impacts on people and the environment Taking action to address negative impacts on people and the environment Tracking the effectiveness of these effor ts The Zumtobel Group's commitment to sustainability and due diligence covers the entire value chain and forms an integral part of the corporate strategy. Please consult the sections listed below for more information: >> ESRS 2 GOV-2: Information provided to and sustainability matters addressed by the company's administrative, management and supervisory bodies >> ESRS 2 GOV-3: Integration of sustainability-related performance in incentive schemes >> ESRS 2 SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model Information on this can be found in the following sections: >> ESRS 2 GOV-2: Information provided to and sustainability matters addressed by the company's administrative, management and supervisory bodies >> ESRS 2 SBM-2: Interests and views of stakeholders >> ESRS 2 IRO-1: Description of the process to identify and assess material impacts, risks and opportunities An annual risk assessment is conducted to identify and assess potential or actual negative impacts arising from or affecting the value chain. Any negative impacts reported in the whistleblower system are also examined and monitored. Please consult the sections listed below for more information: >> ESRS 2 IRO-1: Description of the processes to identify and assess material impacts, risks and opportunities >> ESRS 2 SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model Actions to minimise and avoid potential negative impacts are identified and taken on a case-by-case basis. Global Purchasing can request dedicated action from suppliers on DigiSus. Please consult the sections listed below for more information: >> E1-1 Transition plan for climate change mitigation >> E1-3 Actions >> E5-2 Actions >> S1-4 Actions >> S2-3 Actions >> S4-3 Actions Digital supplier management on the Zumtobel Group's digital sustainability platform DigiSus has enabled Global Purchasing to measure improvements in supplier scores. Please consult the sections listed below for more information: >> E1-1 | Transition plan for climate change mitigation | Climate Transition Plan >> E1-2 | Policies related to climate change mitigation and adaptation >> E5-2 | Actions and resources related to resource use and circular economy >> S1-2 | Processes for engaging with own workers and workers' representatives about impacts >> S1-3 | Processes to remediate negative impacts and channels for own workers to raise concerns >> S1-4 | Taking action >> S2-4 | Taking action >> S4-1 | Policies related to consumers and end-users >> S4-2 | Processes for engaging with consumers and end-users about impacts >> G1-1 | Business conduct policies and corporate culture GOV-5 | Risk management and internal controls over sustainability reporting The Zumtobel Group's risk management system is closely linked to the controlling processes and internal control system in place and has interfaces to many other business areas. Synergies are leveraged through the regular exchange of information. Among other things, findings from the risk assessments conducted on a biannual basis under the umbrella of the Group-wide risk management process provide the basis for the financial materiality assessments in the materiality assessment. Financial risks and opportunities are discussed in cooperation with the various specialist departments and actions are compiled in the risk management software used throughout the Group. External reports, such as the FM Global Risk Report on climate risks at the respective sites, are also consulted and used as reference. The Zumtobel Group's risk management system and the material risks and options for action are discussed under Risk Management. Data checks though internal controls FOCUSED[+] Targeted internal controls have been rolled out by the Zumtobel Group to minimise the risk associated with the sustainability reporting process. These internal controls have been implemented across departments. Comprehensive data checks are conducted in select areas, in particular with regard to the completeness, accuracy and timeliness of the datapoints. The cooperation between the specialist departments and Group Sustainability ensures that datapoints to be reported are reviewed by a second party. The most important risks evaluated concern identifying material topics, carbon accounting and availability of data on health and safety in line with ESRS requirements. Review and approval of the materiality assessment by the Management Board and the Supervisory Board along with the associated material impacts, opportunities and risks minimises the risk of failing to cover an adequate range of material topics. In terms of the Zumtobel Group's SBTi validation and the associated Net-Zero emission reduction target for 2050, a particular focus was placed on controls in relation to the environment in the financial year under review. To this end, checking the completeness, accuracy and timeliness of the individual datapoints was a priority. Spot checks on datapoints are also conducted on an annual basis to collect all environmental metrics. These checks help to ensure that transmission errors or transposed digits are prevented and minimised. In addition, Scope 3 emissions calculations are checked for completeness, accuracy and timeliness as part of a dual control conducted by employees from both the Lighting and the Components segments. The COO receives updates on the current status of environmental metrics at monthly review meetings. Annual process and system reviews are conducted as part of internal and external audits, in accordance with ISO 14001 and ISO 50001, for instance. With regard to social aspects, metrics on employee health and safety are presented to the COO at monthly review meetings. Consistent reporting on metrics throughout the year ensures that the relevant metrics are both complete and available for analysis. Process and system reviews are conducted as part of annual internal and external audits, in accordance with ISO 45001, for instance. SBM-1 | Strategy, business model and value chain The Zumtobel Group's corporate strategy revolves around achieving sustainable growth by focussing on key markets, operational excellence, innovation leadership, strong brands, smart solutions and sustainability. Standing for 'Environment and Engaged Employees', the letter E covers environmental and employee issues.