Dear Shareholders,

Belimo pursued its long-term growth and investment strategy unwaveringly and successfully throughout 2023. Thanks to our highly engaged employees and a strong network of suppliers, we were able to master the year’s challenges exceptionally well. In line with the Group’s strategy, we welcomed almost 100 additional new talents during the year under review. To sustain future business, CHF 76.0 million, equivalent to 8.9% of net sales, was invested in research and development, amongst other things for the most advanced platform for building automation field devices. A platform that will allow for a seamless design, installation, and commissioning experience across the product range offering, as the field devices will become more integrated and require consistent interfaces in the evolving building automation architecture.

The most significant challenges came from a demanding economic environment leading to a slowdown of business momentum in the construction industry. Nevertheless, Belimo saw net sales grow 7.2% in local currencies and 1.4% to CHF 858.8 million in Swiss francs. Earnings before interest and taxes (EBIT) amounted to CHF 152.5 million, and the EBIT margin was stable at 17.8%. Owing to a one-time tax effect of CHF 17.1 million, net income rose by 11.5% to CHF 136.8 million, and free cash flow came to CHF 135.9 million.

The positive findings of our annual employee survey affirmed our employees’ dedication, with an impressive engagement score of 8.9 out of 10 and a remarkable participation rate of 90%, clearly demonstrating their strong engagement. Furthermore, the Making Our Values Visible campaign was implemented throughout the company to strengthen Belimo’s unique culture. This initiative emphasizes the principles and practices that embody credibility culture, customer value, solution leadership, and operational excellence, the four core values that we see as pivotal to Belimo’s continued growth and success.

In 2023, Belimo embarked on a new phase of its commitment to combating climate change, focusing on actively reducing its scope 1 to 3 greenhouse gas (GHG) emissions. The company initiated a comprehensive program to methodically identify and calculate its scope 3 emissions in accordance with the guidelines of the GHG Protocol.

In compliance with Swiss legislation, Belimo reports on environmental concerns, CO₂ objectives, social matters, employee-related issues, adherence to human rights, and anti-corruption efforts. Additionally, Belimo continues to uphold its dedication to the UN Global Compact and its initiatives. The 2023 financial year’s Communication of Progress in line with the Global Reporting Initiative (GRI) is presented in this report.

The Board of Directors is proposing a dividend of CHF 8.50 per share at the 2024 Annual General Meeting on March 25, 2024. This is based on the closing price of CHF 463.80 on December 29, 2023, equivalent to a return of 1.8% per share.

On January 1, 2023, the revised Swiss Code of Obligations came into force. To both implement the requirements of the legal reform and take account of current best practices, the Board of Directors is submitting a proposal to the Annual General Meeting 2024 amending the Articles of Incorporation.

On behalf of the Board of Directors and the Executive Committee of BELIMO Holding AG, we would like to thank you, our esteemed shareholders, for your foresighted investment in a sustainable company.

Yours sincerely,