Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
General
Corporate Information
The Belimo Group (hereinafter referred to as “Belimo” or “the Group”) is a leading global manufacturer of innovative damper actuator, control valve, and sensor/meter solutions for heating, ventilation, and air-conditioning systems (HVAC). The shares of BELIMO Holding AG have been traded on the SIX Swiss Exchange since 1995 (BEAN). The registered office is in Hinwil (Switzerland). The business activities of Belimo are not subject to any significant seasonal fluctuations.
On July 21, 2022, the Board of Directors of BELIMO Holding AG approved the present consolidated interim financial statements for release. As of this date, no material events after the reporting date have occurred.
Basis of Preparation
These unaudited consolidated interim financial statements 2022 have been prepared in accordance with accounting standard IAS 34 Interim Financial Reporting and should be read in conjunction with the consolidated annual financial statements 2021. In general, the same estimates and assumptions as in the consolidated annual financial statements 2021 were applied. However, income taxes were calculated using the expected tax rate for the 2022 financial year. The current economic environment generally leads to negative performance on plan assets and increased IAS 19 discount rates. The Group analyzed the situation and concluded that the asset ceiling remains applicable. Therefore, the surplus was not recognized as a non-current asset as of June 30, 2022.
The ongoing war in Ukraine and the sanctions against Russia had no material impact on significant accounting estimates and assumptions.
The consolidated financial statements are presented in Swiss francs (CHF), rounded to the nearest thousand. Due to rounding, amounts presented throughout this report may not add up precisely to the totals provided. All ratios and variances were calculated using the underlying amount rather than the presented rounded amount.
Changes in Accounting Policies
The accounting policies adopted are the same as those applied in the consolidated annual financial statements 2021. The revised standards applied for the first time in the consolidated interim financial statements had no impact. As of this semiannual report, other operating expenses and other operating income are shown as two separate line items. This adjustment has been applied retrospectively with no financial impact on EBIT, operating profit or equity.
1 Change to the Scope of Consolidation
There were no changes to the scope of consolidation in the first half of 2022.
On June 8, 2021, the distribution company BELIMO Belgium BV was founded.
2 Segment Reporting
Change in Segment Reporting
As at April 2022, the reportable operating segment “Europe” was renamed to “Europe, Middle East & Africa” (EMEA). The regions of “EMEA” are the same as of the former segment “Europe”. Therefore, no reclassification or restatement is necessary. Furthermore, Belimo re-assessed the presentation of other operating income, which is now reported within the corresponding segment.
Segment Information
Belimo has four reportable operating segments, which performed as follows:
|
in CHF 1'000 |
|
EMEA |
|
Americas |
|
Asia Pacific |
|
Shared Services |
|
Elimination |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 st half 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income statement |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales – Third parties |
|
193’940 |
|
173’238 |
|
49’243 |
|
- |
|
- |
|
416’421 |
|
Operating expenses |
|
-27’501 |
|
-23’067 |
|
-8’805 |
|
-106’803 |
|
9’102 |
|
-157’074 |
|
Other operating income |
|
409 |
|
- |
|
666 |
|
2’495 |
|
- |
|
3’570 |
|
Depreciation and amortization |
|
-2’197 |
|
-2’311 |
|
-1’781 |
|
-12’649 |
|
- |
|
-18’939 |
|
Segment profit |
|
164’651 |
|
147’860 |
|
39’323 |
|
-116’957 |
|
9’102 |
|
243’978 |
|
Unallocated material expenses |
|
|
|
|
|
|
|
|
|
|
|
-176’264 |
|
Unallocated changes in inventories |
|
|
|
|
|
|
|
|
|
|
|
8’975 |
|
Unallocated financial result |
|
|
|
|
|
|
|
|
|
|
|
-1’555 |
|
Earnings before taxes (EBT) |
|
|
|
|
|
|
|
|
|
|
|
75’134 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash effective investments in property, plant and equipment and intangible assets |
|
2’191 |
|
216 |
|
2’992 |
|
19’784 |
|
- |
|
25’184 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet as at June 30, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade receivables – Third parties |
|
56’757 |
|
57’982 |
|
17’477 |
|
- |
|
- |
|
132’217 |
|
Trade receivables – Group companies |
|
31’393 |
|
20 |
|
42 |
|
- |
|
-31’455 |
|
- |
|
Property, plant and equipment and intangible assets |
|
24’117 |
|
39’611 |
|
27’174 |
|
137’411 |
|
- |
|
228’312 |
|
Unallocated assets |
|
|
|
|
|
|
|
|
|
|
|
259’810 |
|
Total assets |
|
|
|
|
|
|
|
|
|
|
|
620’340 |
In property, plant and equipment, the service and logistics center in Grossröhrsdorf (Germany) was reclassified from “Shared Services” to “EMEA” at the beginning of 2022.
|
in CHF 1'000 |
|
EMEA |
|
Americas |
|
Asia Pacific |
|
Shared Services |
|
Elimination |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 st half 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income statement |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales – Third parties |
|
195’392 |
|
143’319 |
|
46’015 |
|
- |
|
- |
|
384’727 |
|
Operating expenses |
|
-23’089 |
|
-19’218 |
|
-9’218 |
|
-97’557 |
|
7’266 |
|
-141’817 |
|
Other operating income |
|
- |
|
- |
|
- |
|
500 |
|
- |
|
500 |
|
Depreciation and amortization |
|
-1’609 |
|
-2’336 |
|
-965 |
|
-11’316 |
|
- |
|
-16’227 |
|
Segment profit |
|
170’694 |
|
121’765 |
|
35’832 |
|
-108’373 |
|
7’266 |
|
227’183 |
|
Unallocated material expenses |
|
|
|
|
|
|
|
|
|
|
|
-155’301 |
|
Unallocated changes in inventories |
|
|
|
|
|
|
|
|
|
|
|
2’793 |
|
Unallocated other operating income |
|
|
|
|
|
|
|
|
|
|
|
940 |
|
Unallocated financial result |
|
|
|
|
|
|
|
|
|
|
|
1’385 |
|
Earnings before taxes (EBT) |
|
|
|
|
|
|
|
|
|
|
|
77’000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash effective investments in property, plant and equipment and intangible assets |
|
602 |
|
654 |
|
1’922 |
|
9’316 |
|
- |
|
12’493 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet as at December 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade receivables - Third parties |
|
39’155 |
|
41’565 |
|
17’479 |
|
- |
|
- |
|
98’199 |
|
Trade receivables - Group companies |
|
19’940 |
|
1 |
|
128 |
|
- |
|
-20’069 |
|
- |
|
Property, plant and equipment and intangible assets |
|
10’715 |
|
39’508 |
|
25’787 |
|
143’233 |
|
- |
|
219’242 |
|
Unallocated assets |
|
|
|
|
|
|
|
|
|
|
|
325’230 |
|
Total assets |
|
|
|
|
|
|
|
|
|
|
|
642’671 |
Sales development compared to the previous year in the market regions was as follows:
|
|
|
1 st half 2022 |
|
1 st half 2021 |
||||||||||||
|
in CHF 1'000 |
|
Net sales |
|
% 1) |
|
Growth in CHF |
|
Growth in local currencies |
|
Net sales |
|
% 1) |
|
Growth in CHF |
|
Growth in local currencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMEA |
|
193’940 |
|
47% |
|
-0.7% |
|
4.3% |
|
195’392 |
|
51% |
|
17.7% |
|
16.6% |
|
Americas |
|
173’238 |
|
42% |
|
20.9% |
|
17.1% |
|
143’319 |
|
37% |
|
9.9% |
|
16.8% |
|
Asia Pacific |
|
49’243 |
|
12% |
|
7.0% |
|
4.4% |
|
46’015 |
|
12% |
|
17.6% |
|
18.8% |
|
Total |
|
416’421 |
|
100% |
|
8.2% |
|
9.1% |
|
384’727 |
|
100% |
|
14.7% |
|
16.9% |
1) Contribution to total net sales
The net sales by application were as follows:
|
|
|
1 st half 2022 |
|
1 st half 2021 |
||||||||||||
|
in CHF 1'000 |
|
Net sales |
|
% 1) |
|
Growth in CHF |
|
Growth in local currencies |
|
Net sales |
|
% 1) |
|
Growth in CHF |
|
Growth in local currencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Air |
|
226’195 |
|
54% |
|
5.8% |
|
7.1% |
|
213’837 |
|
56% |
|
14.2% |
|
16.0% |
|
Water |
|
190’226 |
|
46% |
|
11.3% |
|
11.6% |
|
170’890 |
|
44% |
|
15.2% |
|
18.0% |
|
Total |
|
416’421 |
|
100% |
|
8.2% |
|
9.1% |
|
384’727 |
|
100% |
|
14.7% |
|
16.9% |
1) Contribution to total net sales
Overall, movements in exchange rates had an effect of –0.8 percentage points on net sales (first half 2021: –2.2 percentage points).
3 Provisions
|
in CHF 1'000 |
|
Warranties |
|
Others |
|
Total 2022 |
|
Total 2021 |
|
|
|
|
|
|
|
|
|
|
|
As at January 1 |
|
5’652 |
|
4’804 |
|
10’457 |
|
5’395 |
|
Increase |
|
1’285 |
|
2’560 |
|
3’845 |
|
12’318 |
|
Utilization |
|
-1’780 |
|
-1’467 |
|
-3’247 |
|
-6’381 |
|
Reversals |
|
-138 |
|
- |
|
-138 |
|
-878 |
|
Translation differences |
|
- |
|
14 |
|
14 |
|
3 |
|
As at June 30 / December 31 |
|
5’019 |
|
5’912 |
|
10’930 |
|
10’457 |
|
of which current provisions |
|
4’061 |
|
5’624 |
|
9’685 |
|
8’308 |
|
of which non-current provisions |
|
957 |
|
288 |
|
1’245 |
|
2’148 |
Provisions for warranties were calculated considering experienced returns in the past as well as current sales developments. They generally cover product and replacement costs for a warranty period of five years. Product liability incidents with property, plant and equipment damages were considered separately on a case-by-case basis.
Other provisions mainly include expected costs for legal litigations and for non-income tax risks.
4 Share Capital / Dividend
As per the resolution of the Annual General Meeting of BELIMO Holding AG held on March 28, 2022, a dividend of CHF 8.50 per registered share (2021: CHF 7.50, adjusted for share split) has been paid out on April 1, 2022. In total, a dividend payment of CHF 104.5 million (2021: CHF 92.2 million) was made.
5 Foreign Exchange Rates
The consolidated financial statements are based on the following closing and average exchange rates (rounded) for the main currencies:
|
|
|
Closing rates |
|
Average rates |
||||
|
in CHF |
|
June 30, 2022 |
|
December 31, 2021 |
|
1 st half 2022 |
|
1 st half 2021 |
|
|
|
|
|
|
|
|
|
|
|
CAD |
|
0.74 |
|
0.72 |
|
0.74 |
|
0.72 |
|
CNY |
|
0.14 |
|
0.14 |
|
0.15 |
|
0.14 |
|
EUR |
|
1.00 |
|
1.03 |
|
1.04 |
|
1.09 |
|
PLN |
|
0.21 |
|
0.22 |
|
0.22 |
|
0.24 |
|
USD |
|
0.96 |
|
0.91 |
|
0.94 |
|
0.90 |