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. 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, Customizing, Logistics, Finance and Business Services, Group Functions 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.

Regarding 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 the 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.

The plans are designed to be settled as a variable number of shares for a fixed monetary amount. The fair value of share-based payments is determined based on the 'to the value of' method. Therefore, the fair value at grant date is equal to the total expected fixed monetary amount. The share-based payment element is subsequently recognized on a straight-line basis over the vesting period as personnel expenses, with an increase in equity.

Share-based payments are settled with treasury shares.

Swiss pension schemes are governed by the Swiss Federal Law on Occupational Retirement, Survivors and Disability Pension Plans (BVG), and their implementing regulations. The BVG defines the minimum and maximum insured salary, the minimum retirement credits, as well as the interest rate applied to these credits and the conversion rate. Based on these legal provisions and the plan structure, the employer is exposed to actuarial risks such as investment risk, interest rate risk and the risk of disability, as well as the risk of longevity. The employee and employer contributions are defined by the Board of Trustees of the Foundation. In the event of statutory underfunding, measures for its elimination must be taken. Possible measures could be an adjustment to the conversion rate or restructuring contributions from both the employer and the employees.

The Swiss pension plan is organized via an autonomous foundation. The plan is classified as a defined benefit plan in accordance with IAS 19 and as a defined contribution plan in accordance with the BVG. The most senior management body is the Board of Trustees, which is composed of an equal number of employee and employer representatives. It is legally obliged to act in the interests of the plan participants. The Board of Trustees is responsible for defining the investment strategy, effecting changes to the post­-employment benefit plan regulations, and determining the funding of pension plan benefits. The investment strategy is reviewed at least once a year.

Employer contributions to the pension scheme are defined in the applicable regulations as a fixed percentage of the insured salaries and including both savings and risk components. Retirement benefits are determined based on the retirement savings capital held at the time of retirement. The insured individual can choose between a life­long annuity and a lump sum payment. The annuity is calculated by multiplying the retirement savings capital by the conversion rate as defined in the regulations. The annual retirement contributions and interest thereon are credited to the retirement savings capital.

When employees leave the Company, their retirement savings capital is transferred to the pension scheme of the new employer or to a vested benefits account.

Development

The movements in the net defined benefit asset/liability were as follows:

In 2025, the return on plan assets (including interest income) of CHF 28.7 million (2024: CHF 31.0 million), an actuarial gain on the defined benefit obligation of CHF 9.4 million (2024: loss of CHF -27.1 million), as well as other movements of CHF -0.7 million (2024: CHF -0.1 million) led to a total surplus of CHF 71.2 million (2024: surplus of CHF 33.7 million). The asset ceiling, being the economic benefits available in the form of reduction in future contribution to the Swiss pension plan, was zero in the reporting period (2024: zero). Therefore, the surplus was not recognized as a non-­current asset as at December 31, 2025 and 2024.

There were no significant unfunded plans in the reporting period (2024: none).

The weighted average duration of the defined benefit obligations is 13.1 years (2024: 13.7 years). The expected employer contributions for 2026 amount to CHF 15.4 million.

Investment Portfolio

The major categories of plan assets were as follows:

The shares and bonds have quoted market prices on an active market. Real estate includes listed real estate funds and investments in Swiss real estate investment foundations. The investment strategy ensures the availability of liquidity at all times. The Group does not use any pension scheme assets.

Actuarial Assumptions and Sensitivity Analysis

The following principal actuarial assumptions were applied:

The following sensitivity analysis shows the impact of a reasonably possible change in the principal actuarial assumptions on the present value of the defined benefit obligations at the reporting date. Each change was analyzed separately. Interdependencies were not considered. The methods and assumptions used in preparing the sensitivity analyses are unchanged from the previous year.

The determination of post-em­ploy­ment benefit obligations re­quires an estimation of the future service periods, the de­vel­op­ment of future salaries and pensions, interest accruing on the employee savings accounts, the timing of contractual pension benefit payments, and the employees’ share of the funding shortfall. This evaluation is made based on prior experience and anticipated future trends. Anticipated future payments are discounted with the yields of Swiss franc-denominated corporate bonds from domestic and foreign issuers quoted on the Swiss Exchange with an AAA or AA rating. The discount rates match the anticipated payment maturities of the liabilities.

The present value of the defined benefit obligations and the fair value of the plan assets are determined annually by independent actuaries for each plan and are recognized as a net defined benefit asset/liability. The present values of the defined benefit obligations are calculated using the projected unit credit method.

Defined benefit costs recognized in the income statement include current service costs (service costs in the reporting period), past service costs (gains/losses from plan amendments and curtailments), and gains/losses on settlements. The net interest result (multiplication of the net defined benefit asset/liability and the effect of the asset ceiling with the discount rate) is recognized in the financial result. Remeasurement of the net defined benefit asset/liability, which comprises actuarial gains or losses, the return on plan assets (excluding interest), and the effect of the asset ceiling (excluding interest), is recognized in other comprehensive income and is not reclassified subsequently to the income statement. Asset surpluses are considered only to the extent of possible future reimbursement or reduction of contributions in accordance with IFRIC 14.