Financial Report

Notes to the interim financial statements

Consolidation, accounting and valuation principles

The unaudited consolidated interim report for the first six months of 2022 was drawn up in line with the provisions of Swiss GAAP FER 31. This Six-month Report is intended to be read in conjunction with the 2021 Annual Report. The consolidation, accounting and valuation principles published in the 2021 Annual Report have been applied consistently in preparing this interim report.

Consolidation scope

The consolidation scope was changed in the first half of 2022 as follows:

• As of 22 February 2022, the Zehnder Group liquidated Zehnder Group Lenham Ltd in the UK;
• As of 28 February 2022, the Zehnder Group acquired the shares in ventilation company Airia Brands Inc., Canada, for EUR 43.0 million. As a result, the Group acquired net assets amounting to EUR 18.3 million. The resulting goodwill amounted to EUR 24.7 million and was offset against equity. During the reporting period, Airia Brands Inc. contributed EUR 13.4 million to the Group’s sales;
• As of 29 April 2022, the Zehnder Group acquired the shares in air filter manufacturer Filtech. In addition to its headquarters and a production facility in the Netherlands, the company also has two other production sites in France and in Switzerland. The purchase price amounted to EUR 19.9 million. The purchase price adjustment due to the definitively acquired balance sheet values is still outstanding. As a result, the Group acquired preliminary net assets amounting to EUR 8.2 million. The resulting goodwill amounted to EUR 11.2 million and was offset against equity. During the reporting period, Filtech contributed EUR 1.9 million to the Group’s sales.

Adjustment of segment reporting

In accordance with Swiss GAAP FER 31/8, Segment reporting used by the top management level for corporate management is disclosed. In the past, this was divided into the geographical regions of Europe, China and North America. In connection with the increased share of ventilation sales in total sales due to acquisitions and in line with the “Growth for ventilation – harvest for radiators” strategy, the Group is also reorganising itself according to business areas in North America. The segment reporting has been adjusted accordingly. The new segments – ventilation and radiators – have been reported for the first time with this 2022 Six-month Report.

The ventilation segment covers the three product lines for ventilation, heat exchangers and clean air solutions. The radiator segment contains two product lines: radiators and climate ceilings.

The Sales by region and segment table also provides information on the regions in which the sales were generated. Whereas in the past sales were allocated to the region in which the corresponding Zehnder Group sales company had its legal domicile, sales are now allocated to the region to which the products and systems were sold. In order to better reflect the global activities of the Zehnder Group, the regions have been expanded accordingly to EMEA (Europe, Middle East and Africa), Asia-Pacific and North America.

The previous year’s figures were adjusted to the new segments and regions for better comparability.

Events after the balance sheet date

Between the balance sheet date and the publication of this Six-month Report, no significant events requiring disclosure occurred.