Zehnder Group achieved solid sales and EBIT again in the first half of 2023; adjusted outlook for the 2023 financial year

Zehnder Group AG / Key word(s): Profit Warning Zehnder Group achieved solid sales and EBIT again in the first half of 2023; adjusted outlook for the 2023 financial year 20-Jul-2023 / 06:59 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 LR The issuer is solely responsible for the content of this announcement. Six-month report 2023:

• Sales of EUR 407.0 million (+2%)
• Operating result (EBIT) of EUR 37.5 million (+2%)

Outlook 2023 financial year:

• Sales expected between EUR 780 million and EUR 820 million
  (previously: further sales growth for 2023)
• EBIT margin of around 8% of sales expected
  (previously: EBIT margin comparable to that of 2022)

Graenichen (CH), 20 July 2023: The Zehnder Group (SIX: ZEHN), a leading international provider of complete solutions for a comfortable, energy-efficient and healthy indoor climate, increased its sales by 2% to EUR 407.0 million in the first half of 2023 (preliminary). The Group's operating result (EBIT) rose by 2% to EUR 37.5 million (preliminary). The corresponding EBIT margin of 9.2% is at the level of the previous year. An improvement in the supply chain situation in the ventilation segment together with targeted cost savings and structural adjustments could counterbalance the volume decline in radiators. The Group’s net income amounted to EUR 27.7 million (previous year: EUR 29.4 million) in the first half of 2023.

Better supply capability drives ventilation sales; significant volume decline for radiators

The better component availability led to improved delivery capability, particularly in residential ventilation. Consequently, production volumes of ventilation units were increased, and the backlog of orders accumulated due to a lack of components was largely reduced. At the same time, higher interest rates and the persistently high level of inflation over recent months have led to a drop in planning permits granted for new buildings in numerous European countries. Weakening purchasing power due to increased financing costs and persistently high levels of inflation have also led to a decline in demand for radiators. This development had a negative impact on the renovation business and led to a significant overall decline in volumes in the radiator segment.