Belimo develops, produces, and distributes innovative damper actuator, control valve, and sensor and meter solutions for heating, ventilation, and air conditioning systems. All products are made from comparable materials and manufactured using similar processes.

The Group has four reportable operating segments, which constitute its strategic divisions. With a view to maintaining a market presence near its customers, the three geographical strategic Group divisions “EMEA”, “Americas”, and “Asia Pacific” are run by regional managers. The organization of the strategic Group division “Shared Services” is subdivided and managed mainly centrally as a cost center by the Swiss company. No sales are therefore allocated to this segment.

The activities of the reportable segments are as follows:

• EMEA, Americas, Asia Pacific: Distribution and sale of Belimo products in the respective market region.
• Shared Services: Research and development activities, production, logistics, customizing, the functions finance and administration, group strategy and group brand management as well as the expenses for the Executive Committee, and the Board of Directors.

The performance of the geographic segments is measured using the cost-sales ratio (operating expenses, depreciation, and amortization as a percentage of sales). Material expenses cannot be reliably allocated to the segments due to the Group’s principal structure. As a result of the group-wide application of a principal structure, the central production and sales company in Switzerland is the main risk carrier. The opportunities and risks of the sales companies are limited to their local market risk.

With regard to segment assets, only trade receivables, property, plant and equipment as well as intangible assets are allocated. Liabilities are only reported in full in the internal financial reporting and are not allocated to the reportable segments.

The reportable operating segments are determined using the management approach, which means that external segment reporting is based on the Group’s internal organization and management structure, as well as the internal financial reporting to the Chief Operating Decision Maker – the Board of Directors of BELIMO Holding AG.

Sales are measured net of sales tax, credits for returns, and discounts, and are recognized when control of the goods transfers to the customer. Due to the current business model, the performance obligations are satisfied at a point in time. Generally, sales are recognized upon shipment or upon delivery, as defined in the general terms and conditions and in compliance with generally accepted incoterms. Performance obligations in contracts with customers have a duration of one year or less. Warranty conditions provide a customer solely with assurance that the related product complies with agreed-upon specifications. Consequently, the accounting for the warranty is in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets. Payment terms are adapted to local market conditions. For the majority of revenue, payment terms of 1 to 60 days are applied.