In a highly volatile economic environment, Belimo posted excellent results. Multiple events such as supply chain disruptions, inflation, and the war in Ukraine reaffirmed the robust business model. Maintaining supply availability and superior lead times were the main success factors. The proximity to its customers and suppliers, along with increased stock levels, were vital to maintaining product availability throughout the year. The Group’s net sales increased by 11.9% in local currencies. In Swiss francs, net sales grew by 10.7% to CHF 846.9 million (2021: CHF 765.3 million).

The strong top line growth resulted in an EBIT of CHF 152.4 million (2021: CHF 145.4 million). The EBIT margin of 18.0% (2021: 19.0%) was impacted by substantial cost increases for raw material and transport as well as normalized operational spending. Higher input costs were partially compensated by price adjustments. Belimo consequently continued to pursue its growth strategy, hiring an additional 251 employees. Spending in marketing, training, and travel activities normalized with the ease of pandemic restrictions during the year. Net income increased to CHF 122.7 million (2021: CHF 115.5 million) and earnings per share rose to CHF 9.99 (2021: CHF 9.41).

Operating cash flow amounted to CHF 112.9 million (2021: CHF 153.0 million). Higher safety stocks and longer transport times led to an increase in net working capital and affected operating cash flow negatively. Free cash flow increased to CHF 91.2 million (2021: CHF 45.5 million). The net divestment of term deposits of CHF 35.0 million (2021: investment of CHF 60.0 million) partially compensated the increase in net working capital and higher capital expenditures due to the capacity expansion.

With 8.0 million actuators shipped in 2022 (2021: 7.8 million), Belimo field devices again contributed
to save a calculated 8.4 million tons of CO2e in HVAC applications (2021: 8.2 million tons of CO2e) –
24 times more than all input factors. As part of the Company's climate journey, Belimo strives to decarbonize its value chain further and is in the process of extending the scope of the existing sustainability targets with reduction targets in line with the latest climate science and international greenhouse gas accounting standards.

At the 2023 Annual General Meeting, the Board of Directors is proposing a dividend of CHF 8.50 per share (2022: CHF 8.50). For governance reasons, the Board of Directors further proposes to newly issue the audit mandate to Ernst & Young AG.

Net Sales by Market Regions

1) in % of total net sales (due to rounding, amounts presented do not add up precisely to the totals provided).

EMEA. Belimo registered net sales of CHF 367.9 million. The Company largely compensated for the top-line impact from exiting the Russian business of about 6% at the market region level. EMEA increased sales in local currencies by 4.7% compared to the previous year (-2.0% in Swiss francs). The most significant countries performed well. In Germany, Belimo was able to materialize on positive market trends. Italy showed exceptional sales performance thanks to a strong demand for data center cooling applications.

Americas. Belimo registered net sales of CHF 368.3 million, corresponding to an outstanding 21.3% growth in local currencies (26.4% in Swiss francs). Tremendous top-line growth in the US market that accelerated in the year’s second half was possible mainly because of superior lead times of the Group, which resulted in market share gains. Belimo also experienced double-digit sales growth in both the Canadian and Latin American markets thanks to a combination of stable market demand, superior product availability, and shorter lead times.

Asia  Pacific. Belimo recorded CHF 110.7 million in sales, corresponding to an increase of 11.4% in local currencies (12.5% in Swiss francs). In China, sales growth was muted due to recurring pandemic-inflicted lockdowns that interrupted business activities throughout the year. Awarded projects had to be postponed amid access restrictions and logistics bottlenecks. India showed strong growth along with Southeast Asia. The Indian market was performing exceptionally well after a further post-COVID-19 business normalization.

Net Sales by Applications

1) in % of total net sales (due to rounding, amounts presented do not add up precisely to the totals provided).

Applications. The damper actuators business was most impacted by the exit from the Russian business, as it was a key market for fire and smoke damper actuators. Considering the high market shares globally, the growth rate in local currencies of 6.6% represents a solid result. Net sales of control valves were up 16.5% and accelerated well ahead of damper actuators, reflective of the Company’s success in driving its global market share in this application. Sensors and meters gained further traction with a growth of 38.5% in local currencies.

Outlook. For 2023, Belimo is expecting a sales revenue growth rate in local currencies around its five-year average. Energy efficiency and indoor air quality represent accelerating tailwinds that support the above-average growth of the building automation market. Capacity constraints due to a lack of qualified labor is hampering the strong underlying growth drivers. The uncertainty regarding the direction of the global economy and higher interest rates might have a negative impact on investment decisions in the non-residential building market. Furthermore, geopolitical implications and persisting supply chain challenges may further impact 2023.

Belimo continues to pursue its long-term growth strategy, allocating significant resources for advancing solution leadership, operational excellence, and sales network expansion. This might result in higher expenditures. Furthermore, adverse foreign exchange movements might negatively impact margins. To ensure a robust supply chain aligned with the growth strategy, Belimo is accelerating capacity expansion in logistics and customization in subsequent years, leading to higher investments in all market regions and consequently impacting cash flow.

Key Figures of the Belimo Group for the 2022 Financial Year

1) Proposal to the Annual General Meeting on March 27, 2023.

The Belimo 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 our core business is on damper actuators, control valves, sensors, and meters. In 2022, the Company reported sales of CHF 847 million and over 2’200 employees. Information about the Company and its products is available at www.belimo.com. The shares of BELIMO Holding AG have been traded on the SIX Swiss Exchange since 1995 (BEAN).