Belimo Holding AG / Key word(s): Annual Results
Belimo Holding AG: Profitable Growth with Impact
09-March-2020 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.
Hinwil (Switzerland), EMBARGOED UNTIL March 9, 2019, 07:00 a.m. CET
Press Release of the Belimo Group
Belimo: Profitable Growth with Impact
2019 was an excellent year for Belimo. Amidst a more uncertain overall
macro-economic environment, the Company once again achieved outstanding
sales performance and generated above-average growth.
In 2019, the Group posted above-average growth and expansion of market
presence in all of its market regions. The success of Belimo has been
supported by a solid non-residential construction market. The water business
performed particularly well. Belimo logged a market-share expansion in water
applications with water shares now trending at 44.3 percent (prior year:
43.1 percent) of total sales of
CHF 692.7 million.
Belimo once again increased its profitability in 2019 and achieved an
operating income (EBIT) of
CHF 123.9 million, equaling an EBIT margin of 17.9 percent. Net income rose
with respect to the comparison period by 40.5 percent to CHF 121.1 million,
with a positive, nonrecurring effect stemming from the transitional
provisions of the Swiss tax reform applied by Belimo in the amount of CHF
22.1 million. All market regions contributed to the favorable result,
especially the Americas as the main growth driver.
The Board of Directors proposes a dividend of CHF 150.00 per share at the
2020 Annual General Meeting.
Europe. Belimo Group registered net sales of CHF 328.8 million in its
largest market region, which corresponds to a growth of 3.6 percent, or 6.8
percent on a currency-adjusted basis in comparison with 2018. Supported by
an uninterrupted trend towards increasing regulatory requirements for
building efficiency, the heating, ventilation and air conditioning (HVAC)
market in Europe saw solid growth in 2019.
Americas. In the Americas market region, the Group increased its sales to
CHF 272.8 million, representing a growth of 12.3 percent in Swiss francs, or
11.0 percent on a currency-adjusted basis, further establishing the position
of Belimo as a market leader. Healthy economic growth in the US and Canada
translated into positive market conditions for the region. In the US and
Canada in particular, 2019 has been a highly successful year for Belimo with
excellent growth rates of 11.4 percent and 18.9 percent, respectively. All
segments recorded significant growth in prior-year comparison, with the
performance of products for water applications such as the Belimo Energy
Valve(TM) markedly ahead of air applications.
Asia Pacific. In the Asia Pacific market region, Belimo recorded CHF 91.1
million in sales, corresponding to a gratifying growth of 10.7 percent, or
12.7 percent on a currency-adjusted basis, in an increasingly difficult
market environment. Growth momentum picked up in the second half of 2019,
resulting in a higher all-year performance.
Net Sales by Market Regions
in CHF 1,000 2019 % Growth 2018 %
Europe 328,777 48 6.8 317,200 49
Americas 272,849 39 11.0 242,885 38
Asia Pacific 91,054 13 12.7 82,283 13
Group 692,680 100 9.2 642,368 100
Growth Strategy and Innovation. Belimo also continued to pursue its growth
strategy in 2019 with the four strategic initiatives and pressed ahead with
its research and development activities accordingly.
Grow Existing Business with Actuators and Valves. Belimo has further
established its market share and broadened its product portfolio. While both
air (actuators) and water (control valves) applications reported steady
growth, the valve segment, in which Belimo has a lower market share in
comparison with actuators, grew at a gratifyingly strong rate.
Enter Sensor Business. Sensors are a key technology for achieving a
favorable room climate and optimizing the use of energy. They measure
temperature, humidity, pressure, air quality, air flow or energy in rooms,
air ducts and pipes. Belimo launched pipe and duct sensors as its first
product range in 2017. Since then, the Company has continued to expand its
offering, while further experiencing strong sales growth in the segment.
Belimo sensors are now well-accepted in the industry - thereby further
strengthening the positioning of Belimo as a one-stop shop for all field
Offer Selected Performance Devices. Belimo drives the trend towards making
field devices smarter, allowing for substantial additional energy savings in
comparison with conventional valves. The combination of sensor, actuator and
valve technologies and embedded logic is key when it comes to making devices
"smart". These "Performance Devices" such as the Belimo Energy Valve(TM) had
a substantial impact on the Company's high rate of growth in 2019.
Grow Asia Pacific. The Asia Pacific region represents an important,
fast-growing market, where Belimo is strengthening its presence and
expanding its leading position. Increased investments for developing sales
and distribution capabilities as well as the launch of further products
specifically developed for the region characterized the period under review.
Belimo pushed ahead with its cluster strategy in selected Chinese
metropolitan areas. It now runs sales offices in six cities, with imminent
plans for opening four new ones.
Net Sales by Applications
in CHF 1,000 2019 % Growth 2018 %
Air 385,480 56 7.1 365,442 57
Water 307,200 44 11.9 276,926 43
Total 692,680 100 9.2 642,368 100
Outlook 2020. Belimo continues to be confident of its markets, but
nonetheless expects a revenue growth slightly below the five-year average.
Overall, the long-term outlook remains positive, as the main drivers of
growth in form of megatrends remain unchanged. Increased uncertainty,
however, has a dampening effect on the short-term and mid-term outlooks.
The US construction market remains to be strong, albeit late-cycled. Belimo
anticipates stable market development in most European countries. The
economy in certain European countries, however, remains challenging, e.g. in
Germany and Great Britain. With the Energy Performance of Buildings
Directive (EPBD) of the European Union coming into effect in 2020, an
increased demand for building automation in European countries is
anticipated in the years ahead. In Asia Pacific, the outbreak of the
Coronavirus is likely to affect sales revenues, especially in China. A major
strain on the global economy continues to be the U.S.-China trade conflict,
with potential negative ramifications for overall economic conditions. In
Europe, continuing Brexit-related uncertainties may have negative impacts on
the regional economy. In addition, currency risks persist.
Despite a lower expected growth rate for 2020, Belimo continues to invest in
its growth initiatives.
New integrated sustainability report. In order to provide greater
transparency to its stakeholders, Belimo set out to further advance its
sustainability reporting based on the international reporting framework of
the Global Reporting Initiative (GRI). The new reports also quantifies the
impact of Belimo products in the field, reducing energy consumption and CO2
emissions by a factor of 24 in relation to their resource input.
Key Figures of the Belimo Group for the 2019 Financial Year
in CHF 1,000 (unless indicated otherwise) 2019 2018 Change
Net sales 692,680 642,368 7.8
Operating income (EBIT) in percent of net 123,869 109,839 12.8
sales 17.9% 17.1%
Net income in percent of net sales 121,103 86,209 40.5
Cash flow from operating activities in percent 125,400 113,938 10.1
of net sales 18.1% 17.7%
Free cash flow in percent of net sales 83,852 94,261 -11.0
Earnings per share, in CHF 197.00 140.22 40.5
Dividend per share, in CHF 150.00* 100.00 50.0
Cash effective investments in property, plant 40,652 20,491 98.4
and equipment and intangible assets
Research and development in percent of net 50,683 47,248 7.3
sales 7.3% 7.4%
Number of employees as at December 31 (FTEs) 1,789 1,640 9.0
* Proposal to the Annual General Meeting on March 30, 2020.
The Belimo Group is a leading global manufacturer of innovative electrical
actuator, valve, and sensor solutions for heating, ventilation, and air
conditioning systems. The Company reported sales of CHF 693 million in 2019
and has approximately 1,900 employees. Information about the Company and its
products is available on the internet at www.belimo.com.
The shares of BELIMO Holding AG have been traded on the SIX Swiss Exchange
since 1995 (BEAN).
Link to the Annual Report 2019, including the new integrated
Link to the definitions of Alternative Performance Measures:
There will be a Media and Financial Analysts Conference on the 2019
financial statements at the WIDDER HOTEL in Zurich (Switzerland) today,
starting at 10:00 a.m.
Contact Dr. Markus Schürch, CFO +41 43 843 65 01
Agenda Publication of Annual Report 2019 / March 9, 2020
Media and Financial Analysts Conference
Annual General Meeting 2020 March 30, 2020
Dividend Payment April 3, 2020
Publication of Semiannual Report 2020 August 3, 2020
Publication of Sales 2020 January 21, 2021
Publication of Annual Report 2020 / March 8, 2021
Media and Financial Analysts Conference
Annual General Meeting 2021 March 29, 2021
End of ad hoc announcement