Zehnder Group records a decline in sales in an increasingly challenging market environment

• Group sales decreased by 6% to EUR 762.1 million
• Acquisitions and price increases had a positive effect on revenue; declining volumes had a growing negative impact on sales in the second half of the year
• The full annual financial statements for 2023 will be published on 28 February 2024

Graenichen (CH), 19 January 2024: Zehnder Group (SIX: ZEHN), a leading international provider of complete solutions for a comfortable, energy-efficient and healthy indoor climate, generated sales of EUR 762.1 million (unaudited; previous year EUR 812.5 million) in the 2023 financial year, and therefore 6% (organically -7%) less than in the previous year. Acquisitions made a positive contribution of 2% to sales, while negative currency effects weighed on the consolidated financial statements in euros by 1%. The supply chain situation improved in the first half of 2023. The resulting reduction in order backlog in the ventilation segment compensated for the decline in radiator volumes. In the second half of the year, the ventilation segment reported a decrease in sales as well.

Slight decline in sales in the ventilation segment

Sales in the ventilation segment amounted to EUR 441.1 million in 2023, which corresponds to a decline of 2% (organically -3%). The acquisitions of Airia in Canada and Filtech in the Netherlands made a positive contribution of 3%, while negative currency effects of 2% weighed on sales. The ventilation segment accounted for around 58% of the Group's total sales, an increase of 3 percentage points compared to the previous year. The two product lines residential ventilation and clean air solutions developed positively – the former due to the aforementioned acquisitions and reduction of order backlog from 2022. In contrast, the heat exchanger business declined.

The EMEA region (Europe, Middle East and Africa) accounted for EUR 336.2 million (previous year: EUR 349.4 million) of ventilation sales. Positive growth rates were achieved primarily in the Netherlands, UK, in France, and Switzerland. EUR 69.1 million (previous year: EUR 59.4 million) of ventilation sales came from the North American region. Supported by the first-time consolidation of the full-year sales of the Canadian company Airia, the ventilation share of sales in North America rose from 57% to 60%, once again contributing to the further expansion of the business. The Asia-Pacific region generated lower sales of EUR 35.8 million (previous year: EUR 41.6 million).

Continued decline in sales in the radiator segment

The radiator segment generated sales of EUR 321.0 million in the reporting year. This corresponded to around 42% of the Group's total sales. Revenue fell by 11% (organically -11%). Price increases had only a minor positive impact on segment sales. Due to a combination of increased costs, an uncertain legislative environment, and a difficult economic situation in the renovation business, the radiator segment recorded similar sales in the second half of the year as in the first half.

EUR 268.2 million (previous year: EUR 310.1 million) of sales came from the EMEA region. Important markets such as France, the UK, Germany, and Italy recorded significant declines in sales. The loss of sales in Russia following the discontinuation of business activities there in 2022 also contributed to lower overall segment sales. Contrary to the general trend, Switzerland recorded sales growth due to its strong market position, and the North American region also generated slightly higher sales of EUR 45.5 million (previous year: EUR 44.3 million). The Asia-Pacific region contributed EUR 7.2 million (previous year: EUR 7.8 million) to total sales in the radiator segment.

Details on the 2023 sales by regions and segments (unaudited) can be found in the annex. The full annual financial statements for 2023 will be published on 28 February 2024 and will be found on our website at the following link:

www.zehndergroup.com/en/investor-relations/reports-presentations

Next dates to note

Contact

René Grieder
Member of the Group Executive Committee, CFO
Zehnder Group AG, 5722 Gränichen (Switzerland)
T +41 62 855 15 21, rene.grieder@zehndergroup.com

Alexander Kamb
Senior Manager Investor Relations & Communications
Zehnder Group AG, 5722 Gränichen (CH)
T +41 62 855 15 36, alexander.kamb@zehndergroup.com

This media release is published in German and English. The German version is binding. For further information about the Zehnder Group, please visit www.zehndergroup.com.

Company profile

Zehnder Group provides worldwide leading solutions for a comfortable, energy-efficient and healthy indoor climate. The products and services of the Group include heating, cooling, indoor ventilation and air cleaning. The Group develops and manufactures its products at its own factories in Europe, China, and North America. In the financial year of 2023, the Zehnder Group had about 3500 employees and achieved sales of EUR 762.1 million (unaudited). The company is listed on the SIX Swiss Exchange (symbol: ZEHN, number: 27 653 461). The unlisted registered shares B are held by Graneco AG, which is controlled by the Zehnder families.