Consolidated Financial StatementNotes 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 the global market leader in the development, production, and sales of field devices for the energy-efficient control of heating, ventilation, and air conditioning systems. The focus of the core business is on damper actuators, control valves, sensors and meters. The shares of BELIMO Holding AG have been listed on the SIX Swiss Exchange since 1995. The registered office is in Hinwil (Switzerland). The business activities of Belimo are not subject to any significant seasonal fluctuations.

Basis of Preparation

These unaudited interim consolidated financial statements 2024 have been prepared in accordance with IAS 34 Interim Financial Reporting and should be read in conjunction with the annual consolidated financial statements 2023. In general, the same estimates, assumptions, and judgements as in the annual consolidated financial statements 2023 have been applied.
However, income taxes were calculated using the expected tax rate for the 2024 financial year. The Belimo Group falls within the scope of the global minimum tax regulations. An evaluation of the potential impact has been conducted using the financial statements from the previous three years. The findings of this assessment indicate that no significant top-up tax liabilities are anticipated in the foreseeable future.
The Group analyzed the development of plan assets and IAS 19 discount rates and concluded that the asset ceiling remains applicable. Therefore, the surplus was not recognized as a non-current asset as of June 30, 2024 (June 30, 2023: zero).

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 applied in the preparation of the interim consolidated financial statements are consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year ended December 31, 2023, except for the adoption of new or amended IFRS^® Accounting Standards effective as of January 1, 2024. The Group has not early adopted any standard, interpretation, or amendment that has been issued but is not yet effective. Several amendments apply for the first time in 2024, but do not have an impact on the interim consolidated financial statements of the Group.

1 Change to the Scope of Consolidation

There were no changes to the scope of consolidation in the first half of 2024 and in 2023.

2 Segment Reporting

Changes in Segment Reporting

As of January 2024, the accounting and reporting of intragroup transactions has been changed. Intercompany relationships within the reportable operating segment "Shared Services" are now fully consolidated within the segment. Comparative figures have been re-presented accordingly.

Segment Information

The following tables present revenue and profit information for the Group’s operating segments, investments, and information on the segment assets for the six months ended June 30, 2024 and 2023:

in CHF 1'000

EMEA

Americas

Asia Pacific

Shared Services

Elimination

Total

1 st half 2024

Income statement

Net sales – Third parties

199'621

219'212

54'699

473'533

Operating expenses

-31'279

-27'910

-9'862

-111'366

-1

-180'419

Other operating income

330

101

338

769

Depreciation and amortization

-2'303

-2'807

-1'142

-11'356

-17'607

Segment profit

166'369

188'495

43'796

-122'384

-1

276'275

Unallocated material expenses

-185'137

Unallocated changes in inventories

1'907

Unallocated financial result

-172

Earnings before taxes (EBT)

92'873

Cash effective investments in property, plant and equipment and in intangible assets

3'065

447

1'702

11'205

16'417

Balance sheet as at June 30, 2024

Trade receivables – Third parties

64'202

69'884

18'341

152'427

Trade receivables – Group companies

36'034

3'121

-39'167

Property, plant and equipment and intangible assets

28'820

46'111

28'420

150'103

253'454

Unallocated assets

273'304

Total assets

679'185

in CHF 1'000

EMEA

Americas

Asia Pacific

Shared Services 1)

Elimination 1)

Total

1 st half 2023

Income statement, re-presented

Net sales – Third parties

201'855

193'397

53'111

448'363

Operating expenses 1)

-29'956

-24'863

-10'013

-106'852

-3

-171'688

Other operating income 1)

394

122

3'134

-6

3'644

Depreciation and amortization

-2'249

-2'106

-1'659

-11'484

-17'498

Segment profit

170'044

166'428

41'561

-115'202

-9

262'822

Unallocated material expenses

-175'362

Unallocated changes in inventories

-2'716

Unallocated financial result

-5'698

Earnings before taxes (EBT)

79'045

Cash effective investments in property, plant and equipment and in intangible assets

2'430

5'056

1'015

10'192

18'693

Balance sheet as at December 31, 2023

Trade receivables – Third parties

44'472

49'841

16'702

111'015

Trade receivables – Group companies

22'117

2'267

-24'404

Property, plant and equipment and intangible assets

26'433

43'641

26'773

149'795

246'641

Unallocated assets

304'333

Total assets

661'989

1) Operating expenses and Other operating income in "Shared Services" and "Elimination" re-presented to reflect the change in 2024 in the reporting to the Chief Operating Decision Maker.

Net sales development compared to the previous period in the market regions was as follows:

	1 st half 2024				1 st half 2023
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	199'621	42%	-1.1%	2.0%	201'855	45%	4.1%	9.3%
Americas	219'212	46%	13.3%	17.6%	193'397	43%	11.6%	14.9%
Asia Pacific	54'699	12%	3.0%	9.9%	53'111	12%	7.9%	16.1%
Total	473'533	100%	5.6%	9.7%	448'363	100%	7.7%	12.4%

1) in % of total net sales

Net sales by business line was as follows:

	1 st half 2024				1 st half 2023
in CHF 1'000	Net sales	% 1)	Growth in CHF	Growth in local currencies	Net sales	% 1)	Growth in CHF	Growth in local currencies

Damper Actuators	216'881	46%	1.9%	5.8%	212'809	47%	-0.9%	3.8%
Control Valves	234'144	49%	7.8%	11.9%	217'289	48%	15.7%	20.5%
Sensors and Meters	22'507	5%	23.2%	28.6%	18'266	4%	31.0%	38.1%
Total	473'533	100%	5.6%	9.7%	448'363	100%	7.7%	12.4%

1) in % of total net sales

Overall, movements in exchange rates had an effect of -4.1 percentage points on net sales growth (first half 2023: -4.8 percentage points).

3 Property, Plant and Equipment

in CHF 1'000	Land, buildings	Tools, machinery	Furniture, fixtures, movable equipment	Advance payments, assets under con-struction	Total

Costs
As at January 1, 2023	262'820	143'667	32'229	18'595	457'312
Additions	10'653	8'394	5'022	20'758	44'827
Disposals	-3'949	-421	-1'974	-	-6'344
Reclassifications	9'755	7'493	431	-17'680	-
Translation differences	-11'463	-2'919	-1'945	-820	-17'147
As at December 31, 2023	267'816	156'215	33'763	20'854	478'647
Additions	3'029	2'769	1'899	8'388	16'085
Disposals	-1'371	-14	-1'698	-	-3'082
Reclassifications	26	1'893	195	-2'114	-
Translation differences	7'691	2'087	1'250	413	11'441
As at June 30, 2024	277'192	162'949	35'409	27'541	503'091

Accumulated depreciation
As at January 1, 2023	-99'334	-118'190	-22'781		-240'304
Depreciation	-13'155	-11'155	-4'163		-28'474
Disposals	3'929	420	1'898		6'247
Translation differences	3'673	2'187	1'297		7'158
As at December 31, 2023	-104'887	-126'737	-23'749		-255'373
Depreciation	-6'609	-5'751	-2'161		-14'521
Disposals	1'370	12	1'631		3'013
Translation differences	-2'617	-1'583	-825		-5'024
As at June 30, 2024	-112'743	-134'059	-25'104		-271'905

Carrying amounts
As at January 1, 2023	163'486	25'477	9'448	18'595	217'007
As at December 31, 2023	162'929	29'477	10'014	20'854	223'274
As at June 30, 2024	164'449	28'891	10'305	27'541	231'186

The additions consisted of:

in CHF 1'000	1 st half 2024	1 st half 2023

Cash effective investments in property, plant and equipment	14'422	14'626
Non-cash effective additions to the right-of-use-assets	3'301	2'301
Net change in deferred consideration for investments	-1'639	-386
Total additions	16'085	16'541

Commitments for investments in property, plant and equipment amounted to CHF 66.5 million (December 31, 2023: CHF 24.5 million), of which CHF 36.3 million (December 31, 2023: CHF 11.9 million) was in relation to building extension projects in EMEA and Asia Pacific, and CHF 29.2 million for tools and machinery (December 31, 2023: CHF 11.3 million).

4 Financial Instruments

	Carrying amounts
in CHF 1'000	June 30, 2024	December 31, 2023

Financial assets held to collect measured at amortized cost
Cash and cash equivalents	76'403	110'833
Trade receivables	152'427	111'015
Other receivables	665	1'575
Other financial assets	2'300	1'312
Total	231'795	224'736

Financial assets measured at fair value through OCI
Investments 1) 3)	2'711	2'524
Total	2'711	2'524

Financial assets measured at fair value through profit and loss
Investments 1) 3)	2'250	2'095
Derivative financial instruments 2)	201	1'914
Total	2'451	4'009

Financial liabilities measured at amortized cost
Trade payables	35'029	21'635
Bank loans	5'558	3'966
Lease liabilities	12'383	10'606
Other financial liabilities	524	138
Other liabilities and accrued expenses qualifying as financial instruments	36'079	36'739
Total	89'574	73'084

Financial liabilities measured at fair value through profit and loss
Derivative financial instruments 2)	519	112
Total	519	112

1) Measured at fair values that are calculated based on factors that are not observable market data (level 3).

2) Measured at fair values that are calculated based on observable market data (level 2).

3) Investments are presented within "non-current financial assets" in the primary statement.

In the first half of 2024, Belimo utilized committed credit lines in the amount of CHF 30.0 million to cover short-term financing needs (first half 2023: use of CHF 60.2 million of committed credit lines). Thereof, CHF 30.0 million has been repaid in the reporting period (first half 2023: CHF 50.7 million).

For financial assets and financial liabilities not measured at fair value in the table above (excluding lease liabilities), the carrying amount is a reasonable approximation of fair value. In accordance with IFRS Accounting Standards, the fair value of the lease liabilities is neither calculated nor disclosed.

The Group did not perform any quantitative sensitivity analysis as at June 30, 2024 and at December 31, 2023 for the financial instruments measured at fair value, as they are considered to be immaterial.

5 Provisions and Contingent Liabilities

2024

2023

in CHF 1'000

Warranties

Others

Total

Warranties

Others

Total

As at January 1

4'914

3'313

8'227

5'100

2'685

7'785

Increase

1'496

1'230

2'726

2'405

3'973

6'378

Utilization

-1'787

-2'405

-2'308

-4'713

Reversals

-186

-1'020

-1'206

Translation differences

-17

As at June 30 / December 31

4'623

4'554

9'177

4'914

3'313

8'227

of which current provisions

3'690

4'554

8'244

4'052

3'313

7'365

of which non-current provisions

933

862

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 included expected costs for non-income tax risks and for legal litigations.

As at June 30, 2024 and December 31, 2023, there were no contingent liabilities.

6 Share Capital / Dividend

As per the resolution of the Annual General Meeting of BELIMO Holding AG held on March 25, 2024, a dividend of CHF 8.50 per registered share (2023: CHF 8.50) was paid out on April 2, 2024. In total, a dividend payment of CHF 104.5 million (2023: CHF 104.5 million) was made.

7 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, 2024	December 31, 2023	1 st half 2024	1 st half 2023

CAD	0.66	0.63	0.65	0.68
CNY	0.12	0.12	0.12	0.13
EUR	0.96	0.93	0.96	0.99
PLN	0.22	0.21	0.22	0.21
USD	0.90	0.84	0.88	0.92

8 Events after the Reporting Date

On July 19, 2024, the Board of Directors of BELIMO Holding AG approved the present interim consolidated financial statements for release. As of this date, no material events after the reporting date have occurred.