Content Management and Sustainability Report 1 Key Figures 2 Letter to the Shareholders Introduction 4 4 How Belimo Creates Value 77 Operational Excellence 77 Creating Win-Win Relationships 79 Mitigating Our Footprint 81 83 85 88 89 92 Knowing Where the Energy Goes Energy Consumption Within the Organization Story: Future-Proof Chilled Water System Staying Ahead in Logistics Story: Service & Logistics Center Großröhrsdorf Exceeding Expectations 94 Appendix 94 Mapping Our Topics with GRI 95 Stakeholder Engagement 96 GRI Content Index 97 Topic-Specific Disclosures Financial Report Consolidated Financial Statements 100 104 Notes to the Consolidated Financial Statements 144 152 154 Financial Statements of BELIMO Holding AG Information for Investors Five-Year Financial Summary 8 Performance 8 Management Report 9 How We Manage Our Economic Performance Key Figures 15 16 Growth Strategy and Innovation 17 How We Balance Our Investment Portfolio 19 20 Story: 100 Million Actuators Remuneration Report 27 Credibility Culture 27 Creating and Living a Unique Culture 28 29 30 32 33 34 Information Regarding Employees Story: Employee Excellence Training Taking Engagement to the Next Level Fostering Skills in the Organization Training and Education Overview Story: Maintaining Our Training Competence 36 Deep Dive: Energy Valve™ Training Initiative 38 Offering Equal Opportunities 39 Diversity of Governance Bodies and Employees Story: Top-Class Sports and Business 40 42 Corporate Governance 54 Customer Value Engaging with Our Customers Story: Belimo Again Receives CCI Trust Award 54 55 56 Quantifying Our Impact 58 Story: Deep Dive Operations 61 How We Maintain Leadership with Our Solutions 62 Customer Story: Ludmillenstift Hospital 70 Story: Belimo Installs a Solar Rooftop System Solution Leadership 71 71 Delivering the Best Solutions 72 74 75 Story: Indoor Air Quality and Health Story: Room Sensors Innovating Digital Solutions 76 Managing Patents Successfully Due to rounding, amounts presented throughout this report may not add up precisely to the totals provided. All ratios and variances are calculated using the underlying amount rather than the presented rounded amount.

Letter to the Shareholders Dear Shareholders, We are looking back at a financial year of unprecedented challenges and volatility due to the COVID-19 pandemic. Despite the adverse circumstances, Belimo was able to maintain steady net sales in local currencies (+/– 0.0 percent). In Swiss francs, net sales decreased by 4.5 percent to CHF 661.2 million. The Group succeeded in achieving an operating income (EBIT) of CHF 108.1 mil- lion, which equals to an EBIT margin of 16.3 percent. Net income decreased by 28.5 percent to CHF 86.6 million, whereas in the comparison period, the Swiss tax reform’s transitional provisions we applied had a positive nonrecurring effect of CHF 22.1 million. Free cash flow amounted to CHF 93.3 million and was 11.2 percent higher than in the previous year. Following its growth strat- egy, Belimo once again increased its investment in research and development from 7.3 percent of net sales in 2019 to 8.1 percent in 2020. The last decade of sustained investments into Operational Excellence have paid off. The Group was able to maintain superior service levels and high product availability throughout the pandemic. More importantly, Belimo managed to keep its employees safe and is proud of having abstained from introducing mandatory reduced working hours. Instead, we seized the opportunity to further strengthen our employees’ training by introducing new e-learning formats (see story on page 34). We also continued implementing our four long-term strategic initiatives (see page 16) and complet- ed a bolt-on acquisition of Opera Electronics Inc., a specialist in air quality and gas sensors. As a result, our customers will benefit from an even wider sensor offering in the future. Belimo Annual Report 2020 2

Introduction Defining Materiality How Belimo Creates Value Our Value Creation Model serves as a guideline for how we think about the most relevant topics for us and our stake holders. Our focus is on our customers’ success. The three pillars that ensure their success are our Operational Excellence, Solution Leadership, and Customer Value. Consistent implementation of these pillars enables success for not only our customers, but also prosperity for Belimo, success for our partners, and success for society. Commitment, credibility, and reliability characterize our behavior. This is why Belimo sees its Credibility Culture as being at the heart of its value creation model that enables us to deliver more value to our customers than they expect and more than others can offer. Success Through Operational Excellence Operational Excellence ensures that the products we deliver are top-quality, extremely reliable, and come with short lead times. Quality, timeliness, and costs are Belimo Value Creation Model Successful Society Successful Customers Customer Value (CESIM®) Credibility Culture Solution Leadership Operational Excellence Successful Partners Successful Belimo Belimo Annual Report 2020 4

Introduction Assessing Materiality (GRI 102-46) responding to stakeholder Determining the topics that are most relevant for the role of Belimo in supporting sustainable devel- opment, interests, and ensuring long-term success in the marketplace are essential steps in establishing the foundation for corporate strategic management and sustainability reporting. To achieve this, Belimo has identified relevant topics through a materiality assessment according to three dimensions: strategic relevance for the business, impact on sustainable development, and relevance for key stakeholder groups of Belimo. By identifying these topics and implementing the following steps to address them, Belimo aims to strengthen stakeholder relationships, monitor high-level opportunities, safe- guard against risks, and maintain successful mid- and long-term growth performance. An overview of the topics identified in the process, which started with an industry and peer evaluation and was developed in dialog with group management across the Company, is provided in the resulting materi- ality map (see graph below). The materiality map provides an overview of topics de- termined to be most material or relevant for the impact on sustainable development (horizontal axis) and for the interests of stakeholders (vertical axis). This report focuses on the dark gray “Interact,” “Impact,” and “Focus”-topics. Topics most relevant for business are considered in particular in the further development of the Company’s strategic priorities. Our Answer to Megatrends Structural growth drivers in the core markets of Belimo consist of the four following long-term megatrends: Belimo Materiality Map (GRI 102-47) Focus – Economic Performance (page 8) – Customer Engagement and Support (page 54) – High-Performance Solutions for Energy Efficiency and Indoor Air Quality (page 56) – Strategic IP Management (page 76) – Solution Leadership (page 71) – Company Values and Culture (page 27) – Employee Empowerment and Engagement (page 30) – Skill Development and Knowledge Management (page 32) – Equal Opportunity Employment (page 38) Impact – Environmental Footprint of the Supply Chain (page 79) Interact – Balanced Investment Portfolio (page 16) – Process Efficiency and Short Lead Times (page 88) – Partnerships with Suppliers (page 77) – Energy Efficiency in Operations (page 81) – Digitally Enabled Solutions (page 75) – Quality First (page 92) Monitor – Compliance (Socioeconomic and Environmental) – Product Compliance (Supplier Environmental and Social Assessment) – Employment – Occupational Health and Safety – Indirect Economic Impacts – Local Communities h g H i m u i d e M e c n a v e l e R r e d l o h e k a t S Low Medium Impact on Sustainable Development High 6 Belimo Annual Report 2020

Performance Economic Performance: Management Report Maintaining Focus in Challenging 2020 Belimo performed well in a highly uncertain environment and a contracting HVAC market. The Group managed to maintain steady sales and grow in its larg- est market region Europe in local currencies, thereby expanding market shares across regions and accelerating its presence in key markets. A year without historical precedent. The COVID-19 pan- demic required to master challenges at all levels. An overall shrinking and volatile market, globally stressed supply chains and the implementation of strict hygiene measures called for everyone’s utmost effort at Belimo. Given these challenges, Belimo performed well. The Company maintained steady sales in local currencies (+/– 0.0 percent) despite a contracting Heating-, Venti- lation and Air Conditioning (HVAC) market due to shut construction sites and restricted access to buildings. In Swiss francs, net sales declined by 4.5 percent, to CHF 661.2 million. However, Belimo was able to win market shares irrespective of these difficulties. Net Sales by Market Regions The confirmation of Belimo as an essential manufac- turing sector supplier helped support continuous op- erations. All Belimo locations have introduced strict measures to protect their employees’ health beyond governmental requirements. Despite the aggravating circumstances, all employees delivered top perfor- mance every day with great motivation and tireless de- dication, enabling to master a challenging year together. This dedication has been confirmed by the positive results of this year’s employee survey, in which em- ployees expressed a great commitment with an en- gagement score of 8.9 (see page 30 for more informa- tion). Belimo was also awarded the title of LEADING EMPLOYER in 2020. Leading Employers is one of the most comprehensive studies on employer qualities in Europe based on the evaluation of a variety of data sources. The award is given to employers in the top 1 percent of the study. Market Overview The second quarter was severely impacted by heavy lockdown measures leading to closed construction sites and restricted building access in many regions. These lockdown measures affected business perfor- mance and lead to volatile markets and significant uncertainties across the industry. Customer confidence noticeably improved during the second half-year, result- Continued on page 10 in CHF 1 000 Europe Americas Asia Pacific Group 2020 322 285 253 875 85 067 661 226 % 49 38 13 100 Growth in local currencies in % 1.8 – 1.8 – 1.1 0.0 2019 328 777 272 849 91 054 692 680 Belimo Annual Report 2020 % 48 39 13 100 8

Performance Continued from page 8 ing in new project inquiries and many construction sites returning to regular operation. COVID-19 affected regions and segments very dif- ferently, and regional sales performance was equally heterogeneous. In Europe, the largest market region of Belimo, the Group increased sales by 1.8 percent in lo- cal currencies in the period under review. In the Ameri- cas, sales developed ahead of a dwindling overall HVAC market but still followed a negative trend 1.8 percent below previous year levels. In the Asia Pacific market region, net sales in local currencies only slightly de- clined by 1.1 percent, impacted by severe lockdown measures in countries outside of China. China was an exception, as output returned quickly to pre-COVID-19 levels after the strict lockdown measures, then expe- rienced double-digit sales performance from April to October in local currencies compared to 2019. Overall, indoor air quality has become a significant topic across segments and is gaining importance in discus- sions about new projects. The market for hospitals and data centers performed best, while offices underper- formed due to closed buildings and working from home schemes. Europe able momentum in the second half-year. In its largest market region, Belimo grew faster than the contracting HVAC market. The main contributing factor to growth was construc- tion activity – namely new construction and major re- furbishment – returning to pre-COVID-19 levels after the summer. Governments mostly granted access to construction sites and major projects generally pro- ceeded. With an increasing focus on indoor air qual- ity, the trend to upgrade insufficient HVAC systems in buildings was starting to support demand. In Germany, the government introduced subsidizes geared to support the upgrading of existing HVAC sys- tems to improve indoor air quality in buildings. The largest market of Belimo in Europe performed solidly with growth in local currencies. Belimo benefited from a rela tively stable construction activity, winning numer- ous large projects. Sales in Southern European countries improved during the second half of the year despite being impacted by strict lockdowns. Original Equipment Manufacturer (OEM) activity, especially fire damper manufacturers in Central Eastern Europe grew positively. Other regional highlights included the Nordics. Sales in the Middle East experienced a slowdown due to sluggish construc- tion output on the backdrop of low oil prices. In the market region Europe, the Group registered net sales of CHF 322.3 million, corresponding to an in- crease in local currencies of 1.8 percent in comparison with the previous year (–2.0 percent in Swiss Francs). The economic situation in Europe has gained notice- While the business with air applications remained flat, water applications sales grew thanks to numerous in- novative valve products, especially the Belimo Energy Valve™. The sensor business for both air and water ap- plications developed very well. Net Sales in CHF million 2 4 0 6 8 4 5 3 5 3 9 6 1 6 6 Net Sales by Region 2020 Net Sales by Application 2020 in % in % 13 38 49 44 56 6 1 0 2 7 1 0 2 8 1 0 2 9 1 0 2 0 2 0 2 Europe: 49 % Americas: 38 % Asia Pacific: 13 % Air: 56 % Water: 44 % Belimo Annual Report 2020 10

Performance EBIT in CHF million Net Income in CHF million Operating Expenses in CHF million 0 6 2 6 5 2 2 4 2 5 2 2 4 0 2 4 2 0 1 1 1 8 0 1 3 7 9 8 1 2 1 6 8 7 8 7 7 0 7 6 1 0 2 7 1 0 2 8 1 0 2 9 1 0 2 0 2 0 2 6 1 0 2 7 1 0 2 8 1 0 2 9 1 0 2 0 2 0 2 6 1 0 2 7 1 0 2 8 1 0 2 9 1 0 2 0 2 0 2 Resilient Strategy Steady sales in local currencies, strong crisis management for the workforce and supply chain, as well as disciplined cost man- agement resulted in a solid EBIT of CHF 108.1 million, despite adverse conditions caused by the COVID-19 pandemic and unfavorable foreign exchange rate movements mainly of the US-Dollar and the Euro. The strong operating result with an EBIT margin of 16.3 percent confirms the resili- ence of the Belimo strategy. Pursuing Strategic Initiatives In the year under review, Belimo mitigated the financial impact of economic disruptions through selective cost saving measures, mainly in travel and marketing expenses. Long-term prosperity was ensured by pursuing strategic growth initiatives and a targeted hiring policy. Consequently, total expenses for research and devel- opment amounted to 8.1 percent of sales or 6.1 percent higher compared to the previous year. Nonrecurring Tax Effects in Previous Year Under challenging conditions, Belimo achieved a net income of CHF 86.6 million, which is com- parable to 2018. The decline of CHF 34.5 million compared to 2019 is mainly attributable to tran- sitional provisions of the Swiss tax reform applied in the previous year, which had a nonrecurring positive effect of CHF 22.1 million in 2019. Furthermore, net income was negatively impacted by foreign exchange losses of CHF 5.6 million in the year under review (previous year loss of CHF 2.4 million). Earnings per share amounted to CHF 141.02 (previous year CHF 197.00). Belimo Annual Report 2020 12

COVID-19 levels in the short term. Retrofit activity is an- ticipated to rebound in late 2021, driven by a backlog of retrofit projects combined with upgrade demand driven by pandemic-inspired upgrades to improve indoor air quality. In most countries in the Asia Pacific market region, the commercial building market is expected to remain sluggish throughout 2021. In China, the market outlook for the sectors healthcare, warehousing/logistics, data centers and public transportation is strong. The Indian market is bound to recover in 2021. On balance, Belimo expects sales revenue growth in local currencies to pick up over the course of the year, completing with an annual growth rate slightly below its five-year average. This is due to the continued nega- tive impact by the pandemic in the first half year and a strong comparative baseline in the first quarter. Persisting unfavorable exchange rates are likely to weigh negatively on profitability in 2021. Despite the hampered sales revenue growth outlook, Belimo pur- sues its long-term growth strategy, allocating signifi- cant resources for research, development and sales network expansion. Performance Continued from page 11 return actuators, and sensors for the healthcare and pharmaceutical market segments. The contracting business, on the other hand, was heavily affected, as government-induced measures hindered access to construction sites or enforced full closures. While sales with air applications grew significantly, wa- ter applications growth declined. The sensor business for both air and water applications grew at a double-digit rate. Moreover, sales of the Belimo Energy Valve™ devel- oped very positively in China. Business Outlook 2021 The effects of the pandemic and an increased con- sciousness for indoor air quality are projected to affect all construction projects in the long run. Many HVAC systems in existing buildings should be retrofitted for healthy indoor air. Furthermore, new building codes and government- funded programs such as the EU Climate Target Plan 2030 aim to reduce buildings “greenhouse gas emis- sions by 60 percent and energy consumption for heat- ing and cooling by 18 percent”.1 As countries around the world push for more green building initiatives, the necessary investments are expected to follow. As COVID-19 lockdown measures impacted non-resi- dential building use, the construction sectors for health- care, education, public safety, warehousing/logistics, data centers and public transportation are likely to ex- perience a sustained positive development. In contrast, construction sectors for retail, hotel, office, amuse- ment/recreation, and airport buildings are likely to ex- perience a delayed recovery or a longer lasting negative impact. The output for non-residential construction is fore- casted to return to growth in Europe. The primary growth drivers are expected in the healthcare, educa- tion, data centers, and warehousing/logistics sectors. Despite some uncertainties as to the effects of Brexit, Belimo expects no significant negative consequences. The pandemic is likely to continue to hurt economic activity throughout the Americas market region during the first half of 2021. New construction activity is fore- casted to improve slightly but might not reach pre- 1 Communication from the European Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: “A Renovation Wave for Europe – Greening our buildings, creating jobs, improving lives”, SWD(2020) 550 final, October 2020. Belimo Annual Report 2020 14

Performance Balanced Investment Portfolio Growth Strategy and Innovation Belimo focused on pursuing its strategic initiatives, strengthened its global market leadership, and expanded its sensor offering by completing a bolt-on acquisition. Grow Existing Business In its first growth initiative, Belimo successfully ex- panded its market shares across regions, accelerated its presence in key markets, and further strengthened its global market leadership. In the reporting year, the Company introduced the sensor-actuator solution VRU Universal VAV controller for variable air volume con- trol (VAV). The new product supersedes three existing products with one solution for critical applications such as laboratories or hospitals. In hospitals, for example, the VRU Universal controls negative room pressure in isolation rooms or positive room pressure in operating theaters. The product seamlessly integrates into any Grow Existing Business Enter Sensor Business The Belimo Growth Strategy Offer Selected Performance Devices Grow Asia Pacific building automation system and can be configured wirelessly with the Belimo Assistant App. Meanwhile, the new service and logistics center located in Großröhrsdorf (Germany) began serving individual customer needs through the so-called Design-to-Order process (DTO). The highly flexible offering provides unique mechanical, electrical, and software configura- tions or bundles (see page 89 for more information). This expands retrofit services and processes to respond to increased demand for energy efficiency upgrades in buildings. In addition to these retrofit services, Belimo expanded its expertise in Indoor Air Quality (IAQ) along with the “Seven Essentials of Healthy Indoor Air” (see illustration on page 17) to respond to the demand for healthy indoor spaces. For that purpose, Belimo is lead- ing an international team of internal and external in- dustry experts including medical doctors. Furthermore, Belimo has made substantial investments in the ad- vancement of its actuator, valve and sensor platforms for further modularization and streamlining that will create a seamless customer experience while improv- ing operational excellence. Finally, Belimo completed the development of its small- est damper actuator, the CM-Mini. The CM-Mini was designed for small residential and light commercial air handling units that are mostly required to fulfill green building standards or codes. Thanks to its small size, the CM-Mini can also be applied to move louvres in air-outlets. Ensuring adequate airflows in rooms and preventing viral cross- contamination of people through aerosols has become a key topic during the COVID-19 pandemic. The new actuator will be launched in spring 2021. Enter Sensor Business The sensor business is the second strategic initiative of Belimo. On the back of continued strong marketing and sales efforts, the Company won market shares in all Belimo Annual Report 2020 Continued on page 18 16

Performance Continued from page 16 three regions. In 2020, a newly developed range of room sensors was launched: An innovative range of IAQ sen- sors that can be wirelessly configured with the Belimo Assistant App for quick commissioning. The top sen- sor of the range, which measures all essential indoor health parameters, temperature, relative humidity and CO2, has a plain, timeless design and is the thinnest of its kind in the market. Precision and reliability have been a key design requirement and one of the main features is that these sensors measure the room instead of the wall temperature, unlike many products in the market. This was achieved through a meticulous housing and component design by Belimo experts from various en- gineering disciplines. Belimo continued to expand its portfolio of pipe and duct sensors by adding hygrostats, duct thermostats, frost monitors, and a double differen- tial air pressure sensor, designed to dynamically moni- tor filter contamination. Moreover, Belimo introduced the SAP variant configurator also for sensors at its Großröhrsdorf (Germany) location, allowing custom- ized products such as sensors with a customer logo. Belimo completed a bolt-on acquisition of the Montre- al-based air quality and gas sensors specialist Opera Electronics Inc. Belimo had been planning a range of specialty air quality and gas sensors as part of its growth strategy. By acquiring Opera, Belimo was able to implement this product range expansion. Opera develops and manufactures a solid range of air qual- ity and gas sensors for buildings. Core applications of Opera include vehicle emissions monitoring in car parks, refrigeration gas leak detection and combus tible gas monitoring in HVAC plant rooms. While Opera has mainly been focused on the Canadian market, the ac- quisition allows Belimo to leverage its global market- ing, sales, and logistics network. Consequently, Belimo customers can benefit from an even wider range of field-devices. Offer Selected Performance Devices A decade ago, Belimo launched the development of the Belimo Energy Valve™ in collaboration with MIT (Mas- sachusetts Institute of Technology) in Boston (Massa- chusetts, USA) and the University of Colorado in Boul- der (USA). The product is a combination of sensors, an actuator, a valve and embedded logic, forming a new product category that was named: Performance De- vices. Since its introduction in 2012, the Belimo Energy Valve™ has won more than 20 innovation awards and is optimizing energy efficiency in thousands of buildings worldwide. This product brings additional transparency to facility management by measuring thermal energy, controlling the heating or cooling load and optimizing its performance, i.e. solving the so-called “Delta T Syn- drome” in HVAC systems. This Internet of Things (IoT) product has been enhanced over the years and ver- sions 2 and 3 have been introduced. In the reporting period, significant development resources have been allocated to further advance the product range with innovative energy metering technology in order to con- tinue innovating this flagship product with new product launches planned for summer 2021. Customers who utilize the Belimo Energy Valve™ understand the signi- ficant advantages of this technology compared to tradi- tional, pressure-dependent valves. To further penetrate this technology in the market, it is important that key meas ures to thoroughly train the Belimo sales forces and customers are continued. Therefore, major inter- nal and external training efforts on the Belimo Energy Valve™ were undertaken in 2020 (see story on page 36). Another representative of the Performance Devices product category is the Belimo ZoneEase™ VAV, a de- vice that accurately controls the flow of conditioned air in zone applications. A new version with a Power over Ethernet (PoE) interface has been introduced. This tech- nology combines power supply and communications in one cable for simplified installation and increased operating safety. Grow Asia Pacific Belimo continued to gain market shares and momen- tum with its growth strategy of the Asia Pacific market region through sustained sales, marketing and opera- tions. In China, Belimo expanded its sales network by opening four new sales and customer service hubs in the major metropolitan areas Chengdu, Hangzhou, Changsha and Qingdao with Belimo operating now a total of ten hubs. Besides product sales and support, training and consulting customers is a major task of these city-cluster hubs. With most trade shows can- celed due to the virus, webinars and online meetings were also the primary tool to stay in touch with cus- tomers in China. One highlight was the joint webinar of Belimo China with the China Journal of HVAC on the Belimo Energy Valve™ with 13 900 participants. COVID-19 lockdowns strongly impacted growth initia- tives in India and some of the planned additional mar- keting and sales expansion efforts had to be postponed to 2021. However, Belimo started the design and con- struction of its new facility in Navi Mumbai (India) with customization, sales, and a customer experience cen- ter and looks forward to opening this new site that will achieve the platinum level of the Indian Green Building Council standard (IGBC) in fall 2021. Belimo Annual Report 2020 18

Performance Remuneration Report Competitive Pay and Shared Participation Fair pay, orientation to strategic benchmarks, and shared participa- tion are the cornerstones of the Belimo remuneration system. Since its early days, the Belimo founding members have prioritized fair pay as a guiding principle in their remu- neration system. All employees should feel valued for their work and benefit from the Company’s success. Fair pay and the culture of employee participation is viewed as a form of recognition and job enrichment. These principles are reflected in today’s value creation model with the Credibility Culture at its core (see page 4). Belimo is committed to labor market positioning, inter- nal wage justice, and equal pay for men and women. neration system throughout the Company. Salaries and bonus payments are benchmarked against the market and adjusted as required. The internal remuneration system is screened for potential gender pay gaps. Belimo voluntarily evaluated its Swiss entities’ equal pay practices with the official tool “Logib” of the Swiss Confederation. The unaudited self-assessment identi- fied no gender pay gap. Additionally, the managing directors and Human Re- source (HR) representatives of all subsidiaries are in- structed to identify pay-gaps during the annual salary adjustment process. Employee Share Purchase Plan (ESPP) To foster and strengthen a sense of ownership among all employees, Belimo introduced the Employee Share Purchase Plan (ESPP) in 2020. It allows the eligible em- ployees to purchase shares at preferential conditions – generally with a 30 percent discount. Ensuring Equal Pay and Wage Justice In order to guarantee the principles of wage justice and competitive pay, Belimo continually monitors its remu- The acquired shares under the ESPP are subject to a three-year restriction period from the purchase date. Remuneration Approval Process for the Board of Directors and the Group Executive Committee Proposal A p p r o v a l AGM Board of Directors CEO Members of the Executive Committee Remuneration Committee Consists of at least two Members of the Board of Directors, develops proposals on remuneration and submits these to the Board of Directors and the Annual General Meeting (AGM). Annual General Meeting (AGM) Approves the remuneration proposals. Belimo Annual Report 2020 20

Performance Group Remuneration Governance Structure Global Regional Local HR Europe Subsidiaries’ Managing Directors/HR HR Global HR Americas Subsidiaries’ Managing Directors/HR HR Asia Pacific Subsidiaries’ Managing Directors/HR The ESPP requires the CEO to invest a defined manda- tory percentage – generally 16 percent of total compen- sation at target achievement – in shares at preferential conditions. Other Members of the Executive Committee are required to invest up to 15 percent of total compen- sation in shares (at target achievement). The ESPP al- lows the CEO to voluntarily purchase additional shares worth up to 34 percent of the total compensation, while other Members of the Executive Committee are al- lowed to invest up to 32 percent of total compensation in shares. All Other Employees Governance Approach Global HR defines the minimum standards of employee remuneration throughout the Group. Together with lo- cal HR representatives, managing directors are respon- sible for ensuring these requirements are met (see fig- ure above). Regional HR positions support subsidiaries in implementing appropriate policies in accordance with local laws, regulations, cultures, and market con- ditions, and are responsible for monitoring compliance with them. Elements of Remuneration/Compensation Principles The compensation principles for employees are based on the Hay Chart Profile method of job evaluation, which Belimo introduced in Switzerland and the US in 2000. It defines twelve different salary bands in con- junction with the three dimensions “Know-How,” “Prob- lem Solving,” and “Accountability.” All employees receive a fixed component (base salary) and a variable compo- nent of remuneration, consisting of a cash bonus and non-mandatory participation in the ESPP (see table page 23). Belimo Annual Report 2020 22

Performance Remuneration 2020 Board of Directors The 2020 Annual General Meeting approved a projected maximum total compensation for the Board of Direc- tors of CHF 0.95 million for the 2020 financial year (see table below). It consisted of fixed compensation, paid in cash, and included social security. The Board of Direc- tors was expanded at the Annual General Meeting 2020 to include one additional member as full replacement for all Members who departed the Company in 2019. The fixed compensation per board member and term of office of one year remained unchanged from 2019. In 2020, none of the Members of the Board of Direc- tors received any compensation or loans from the Group other than those disclosed in this report. No allowance or loans were paid to related parties of the Members of the Board of Directors, and no payments were made to former members or related parties. As of December 31, 2020, no credits or loans were out- standing. Remuneration of the Board of Directors 2020 2019 in CHF 1 000 Patrick Burkhalter, Chairman Dr. Martin Zwyssig, Deputy Chairman Prof. Adrian Altenburger, Member Sandra Emme, Member Urban Linsi, Member (from April 2019) Stefan Ranstrand, Member (from April 2020) Martin Hess, Member (until April 2019) Prof. em. Dr. Hans Peter Wehrli Chairman and Member (until April 2019) Total Approved Remuneration by the Annual General Meeting Fixed cash compensation Social security Total fixed Expense allowance 254 211 124 124 124 124 124 124 124 83 83 – – 4 – 85 833 755 19 15 9 9 9 9 9 9 9 6 6 – – – – 5 63 53 273 226 133 133 133 133 133 133 133 89 89 – – 4 – 90 895 808 950 900 6 6 6 6 6 6 6 6 6 4 4 – – – – 2 34 30 Belimo Annual Report 2020 24

We have audited the accompanying remuneration report of BELIMO Holding AG for the year ended 31 December 2020. The audit was limited to the information according to articles 14– 16 of the Ordinance against Excessive compensation in Stock Exchange Listed Companies contained in the sections “Remunerations” on pages 24 to 25 of the Annual Report. Responsibility of the Board of Directors The Board of Directors is responsible for the preparation and overall fair presentation of the remuneration report in accordance with Swiss law and the Ordinance against Excessive compensation in Stock Exchange Listed Com- panies (Ordinance). The Board of Directors is also responsible for designing the remuneration system and defining individual remuneration packages. Auditor’s Responsibility Our responsibility is to express an opinion on the accompanying remuneration report. We conducted our audit in accordance with Swiss Auditing Standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the remuneration report complies with Swiss law and articles 14 – 16 of the Ordinance. An audit involves performing procedures to obtain audit evidence on the disclosures made in the remunera- tion report with regard to compensation, loans and credits in accordance with articles 14 – 16 of the Ordinance. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatements in the remuneration report, whether due to fraud or error. This audit also includes evaluating the reasonableness of the methods applied to value components of remuneration, as well as assessing the overall presentation of the remuneration report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Opinion In our opinion, the remuneration report for the year ended 31 December 2020 of BELIMO Holding AG complies with Swiss law and articles 14 – 16 of the Ordinance. KPMG AG Reto Benz Licensed Audit Expert Auditor in Charge Zurich, 5 March 2021 Reto Kaufmann Licensed Audit Expert KPMG AG, Räffelstrasse 28, PO Box, CH-8045 Zurich KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss legal entity. All rights reserved. Belimo Annual Report 2020 26

Credibility Culture Information Regarding Employees as at December 31 Total employees Headcount Full-time equivalents (FTEs) Employees by employment contract (FTEs) Permanent/indefinite Temporary/fixed Female Male Female Male Employees by employment type (FTEs) Full-time Part-time Female Male Female Male Employees covered by collective bargaining agreements (GRI 102-41) As % of the total workforce Danbury (Connecticut, USA) Hinwil (Switzerland) All Other Belimo Subsidiaries Belimo Group 2020 In % of FTEs Belimo Group 2019 418 416 174 242 0 0 172 238 2 4 854 791 282 489 13 7 184 424 111 72 630 620 137 354 49 79 166 427 19 7 1 902 1 826 593 1 085 62 86 522 1 089 132 83 32.5 % 59.4 % 3.4 % 4.7 % 28.6 % 59.6 % 7.2 % 4.6 % 0 % 1) 0 % 1) 21.2 % 2) 7.0 % 1 866 1 789 624 1 118 29 18 519 1 061 133 76 6.2 % 1) In Switzerland and the US, employees are not covered by a collective bargaining agreement. 2) Average of all other Belimo subsidiaries in percent on a headcount-basis. Employees by Region FTEs, as at December 31, 2020 Employees by Function FTEs, as at December 31, 2020 Employees by Employment Contract FTEs, as at December 31, 2020 in % in % in % 17 25 58 12 13 40 1 826 FTEs 35 8 92 Europe: 58 % Americas: 25 % Asia Pacific: 17 % Assembly, logistics: 40 % Sale, marketing and distribution: 35 % Research, development: 13 % Administration, management: 12 % Permanent: 92 % Temporary: 8 % Belimo Annual Report 2020 28

Credibility Culture Employee Empowerment and Engagement Taking Engagement to the Next Level Employee engagement is critical for the success of Belimo. In 2020, employees reaffirmed their high level of identification, motivation, and commitment to the Company. Belimo believes that satisfied employees directly lead to satisfied customers. An empowered and engaged workforce is therefore essential to success in the mar- ket by maintaining a high level of customer support and innovation leadership. Belimo refers to the continuous engagement of its employees as a competitive advan- tage and as beneficial to all other stakeholders. Training and Role Models For Belimo, employee empowerment and engagement begin with transparent communication and a culture of trust. Creating a trusting work environment where employees can thrive and unlock their full potential is a primary aspiration. Direct and open dialogue about mis- takes is therefore essential. To ensure that employees remain empowered and en- gaged, Belimo regularly holds management training on its Corporate mission and values. It is an essential responsibility of managers across all levels to act as role models, represent the values of Belimo and lead by example. Belimo also regularly supports social and team-building events. Higher Employee Engagement Score To assess employee engagement, Belimo conducts a group-wide employee survey every three years. Within the context of this survey, employees are asked ques- tions anonymously on central workplace subjects. These comprise job content, structures, processes, collaboration, the Executive Committee, dealing with changes, line managers, employee promotion, and remuneration. Detailed results are analyzed by the individual teams around the world and used to imple- ment corresponding measures. The so-called engage- ment-score is the pivotal value of the survey, as it allows us to gauge employee commitment. On a scale from 1 (lowest rating) to 10 (highest rating), it describes the extent to which the topics of identification, motivation, and commitment are present among employees. The 2020 employee survey met with a response rate of 89 percent, which is slightly lower than in 2017 (92 percent) but still an exceptional value, considering the survey was conducted in the middle of the COVID-19- lockdown, as well as being statistically significant. The engagement score increased slightly to an outstand- ing value of 8.9 (see chart below). It was particularly gratifying to see that departments with below-average Employee Engagement Scale from 1 (lowest rating) to 10 (highest rating) 7 . 8 8 . 8 8 . 8 9 . 8 5 . 8 8 0 0 2 1 1 0 2 4 1 0 2 7 1 0 2 0 2 0 2 Belimo Annual Report 2020 30

Credibility Culture Skill Development and Knowledge Management Fostering Skills in the Organization Knowledgeable employees are critical for operational excellence and solution leadership. Belimo supports its employees in developing their specialist knowledge. Acquiring the necessary knowledge ensures that em- ployees are fully proficient in their tasks, responsibil- ities, and corporate culture. Belimo views properly trained employees as essential to providing value to customers. Moreover, effectively managing skills devel- opment and knowledge is vital for successful employer branding: It helps in attracting talent and retaining em- ployees by facilitating their continued engagement. Likewise, it also prepares employees for future changes (new technologies, products, and services). Tracking Days of Training The deliberate management of skill development en- sures employees receive the training necessary to suc- ceed in their roles. To streamline its training functions for customers and employees, Belimo has established a global training organization with local teams and has implemented a Learning Management System (LMS). It provides e-learning content to employees and allows tracking of training and certifications. See how we have accelerated our e-learning offerings in times of COVID-19 on page 34. Belimo tracks expenses for internal and external courses, days of training per employee and monitors the core competencies’ average degree of fulfillment. Feedback forms are usually collected after each ses- sion, and the topics of skills development and knowl- edge management are addressed in the periodical employee survey. The LMS further enables Belimo to document employee training. Identifying and training skills which will be needed in the future is crucial. Performance and Appraisal System Belimo works at all levels with performance and behav- ioral appraisal systems. This includes regular status re- ports on the achievement of individual goals, employee performance appraisals, and appropriate remedial measures. Personal development planning is outlined and discussed at regular employee reviews. Appraisal reviews, including the assessment of core competen- cies, a competency matrix for assemblers, career paths, and career development plans, all serve as a basis for deciding which employees should receive training. Comprehensive introduction programs ensure that new employees are efficiently introduced into their field of work and the corporate culture (see story Employee Excellence Training on page 29). An internal training program enables knowledge and skills to be continu- ously adapted to the tasks at hand. Employees’ per- sonal development is also supported. Belimo manag- ers regularly complete training courses on leadership skills. Notably, all Belimo managers complete a three- day leadership course focusing on company values and strategies and enhancing leadership skills. Belimo offers career path planning for managers as well as for professional specialists and supports further individual education financially. Supporting the Talent of Tomorrow Together with local schools, Belimo helps students in Hinwil (Switzerland) to choose a profession and provides insight into everyday working life. This offer attracts great interest in the region and has therefore been expanded further. Meanwhile, the STEM initiative in Danbury (Connecticut, USA) aims to stimulate chil- dren’s curiosity and interest in Science, Technology, Engineering, and Mathematics. In workshops, repre- sentatives of local Belimo management use practical examples to show children how these disciplines are applied in product development and, ultimately, how energy-efficient HVAC systems contribute to protecting the environment. Belimo Annual Report 2020 32

Story: Credibility Culture Maintaining Our Training Competence Employee Training of 2019

Deep Dive: Energy Valve™ Training Initiative Maintaining Training Momentum The Global Belimo Energy Valve™ Training Initiative is an excellent example that genuinely reflects the broad diversity of the Belimo training landscape. In 2019, an international team of experienced Belimo sales staff and product managers was given the task of determining the main measures required to further accel- erate sales of the Belimo Energy Valve™. As their primary measure, the team proposed system atic investment in the training of all key employees and customers in the significant advantages of the Belimo Energy Valve™. During the following nine months, the team developed a comprehensive train- ing plan divided into three training steps. The first module includes the Belimo Energy Valve™ Basic Train- ing, which is implemented as an e-learning session for all employ- ees working directly with custom- ers. The goal of this training is to teach a few easy-to-understand, notable features and essential benefits of the Belimo Energy Valve™ in an exciting and thought- ful manner. More than 560 participants have completed this first module. The second module is called Belimo Energy Valve™ Advanced Training and is offered in person in all regions to train Sales Special- Belimo Annual Report 2020 36

Credibility Culture Equal Opportunity Employment Offering Equal Opportunities The success of Belimo is only possible thanks to the shared commitment of its employees. Our workforce encompasses a vast range of different cultures and nationalities. To be a reliable partner that always bases its actions on the highest level of integrity, Belimo sees cultural diversity, equality of treatment and the prevention of discrimi nation as crucial. Belimo believes that the work- force should reflect the diversity of the population, as a variety of perspectives strengthens the Company’s knowledge base. This, in turn, offers a competitive ad- vantage. All stakeholders benefit from equal opportu- nity employment, particularly suppliers (compliance requirements), customers (best solutions), and existing employees, for whom equal opportunity employment is a central pillar in a culture of trust. Cases of Violation and Discrimination Belimo is committed to a work environment in which all individuals are treated with respect and dignity, free from all forms of discrimination, harassment, and retalia tion. The Belimo mission statement has been supplemented by a Code of Conduct, which applies to all employees. In 2020, all employees had to take a web- based training on the Code of Conduct and those with customer and supplier interactions in addition also on the anti-bribery and anti-corruption policy. Employees are encouraged to report cases of breach through a globally acces sible incident/breach notification chan- nel. By the end of 2020, a total of eight reports were sub- mitted – seven of them referring to managers’ inappro- priate behavior and one to bribery. The cases referring to managers’ inadequate behavior led in some cases to corrective actions. The case of bribery was investigated by a third party and found to be baseless. A policy prohibiting workplace harassment and dis- crimination (e.g., on grounds of race, color, sex, religion, political opinion, national extraction, or social origin as defined by the International Labour Organization) is implemented. There were two cases of discrimination revealed in 2020. The first case concerned a former em- ployee who brought a complaint of discrimination to a state agency. The matter was resolved through media- tion and was concluded without any admission of liabil- ity. The second case concerned an applicant who has also brought a complaint of discrimination to a state agency. The matter is in the preliminary phase. Belimo: Equal Opportunity Employer Belimo attaches great importance to ensuring that women and men receive equal pay for work of equal value. Special attention is also paid to gender equality in salary adjustments. Moreover, the Company is par- ticularly proud of its integration of people with physical or mental disabilities. Ability Beyond in the US, Sonn- halde in the Zurich Oberland region (Switzerland) and Foundation Brändi in Wil lisau (Switzerland) as well as the residential and employment center for people with restricted mobility (IWAZ) in Switzerland are examples for programs Belimo is involved with to find gainful employment for individuals with disabilities. Our many years of cooperation with these organizations are an established part of the corporate culture at Belimo. To improve its performance as an equal opportunity em- ployer, Belimo tracks the following KPIs: Percentage of genders employed, age structure, diversity of nationali- ties/languages, results of the employee survey, the pro- portion of women in a management position, as well as gender pay gap. Belimo voluntarily evaluated its Swiss entities’ equal pay practices with the official tool "Logib" of the Swiss Confederation. The unaudited self-assess- ment identified no gender pay gap. Employees and the Company equally value the part-time working models offered. In Hinwil, 23 percent of employees have chosen this model. Belimo Annual Report 2020 38

Story: Top-Class Sports and Business On the Path to the 2021 Paralympic Summer Games

Credibility Culture Corporate Governance Principles of Governance BELIMO Holding AG discloses this corporate governance report at the highest corporate level of the Belimo Group in accordance with the principles and regulations of the Swiss stock exchange SIX Swiss Exchange, in particular the Corporate Governance Directive and the Swiss Code of Best Prac- tice published by economiesuisse. The required disclosure of remuneration for the Mem- bers of the Board of Directors of BELIMO Holding AG and the Group Executive Committee, as well as other disclosures, are reported in the Remuneration Report on pages 20 to 25 based on the Ordinance Against Excessive Compensation in Listed Companies and the articles of incorporation of BELIMO Holding AG. Group Structure The information contained in this corporate gover- nance report is based on the corporate organization, regulations and articles of incorporation effective as of December 31, 2020. Group Structure and Shareholders Group Structure The Belimo Group is organized into markets (Europe, Americas, Asia Pacific), Innovation, Production, Lo- gistics/Customization, Finance & Business Services, Global Quality as well as Strategy & Brand Manage- ment. The operational Group structure is shown in the organization chart below. BELIMO Holding AG (the holding company of the Belimo Group) is the only Group company that is listed. The registered office of the Company is in Hinwil (Switzer- land). Belimo shares (ISIN CH0001503199) are listed on the Swiss stock exchange SIX Swiss Exchange. The market capitalization as of December 31, 2020, amounted to CHF 4 723 million. With the exception of BELIMO Holding AG, no Group companies hold Belimo shares. The Belimo shares held by BELIMO Holding AG Board of Directors Global Quality CEO and Group Executive Committee Strategy & Brand Management Group Divisions Innovation Logistics/ Customization Production Finance & Business Services Europe Americas Asia Pacific Belimo Annual Report 2020 42

Credibility Culture Convertible Bonds and Share Options BELIMO Holding AG has no outstanding convertible bonds or share options. No options were issued to em- ployees. Board of Directors Members of the Board of Directors The Board of Directors of BELIMO Holding AG com- prised a total of six members as of December 31, 2020. Further Activities and Relationships Personal details and further activities and relationships of the individual Members of the Board of Directors are shown on pages 46 to 47. Independence of Non-Executive Members The Board of Directors consists of non-executive mem- bers. This means that no member exercised an opera- tional function for the Belimo Group during the three financial years preceding the reporting period. The other Members of the Board of Directors and the companies they represent have no material business relationships with the Belimo Group. Mandates No Member of the Board of Directors may hold more than four additional mandates in the ultimate strategic management bodies or on the ultimate boards of listed companies which do not belong to the Belimo Group. The Board of Directors may allow a maximum of two exceptions per member in specific cases. The acceptance of a maximum of four mandates in the ultimate strategic management bodies or on the ulti- mate boards of non-listed companies which do not be- long to the Belimo Group is permissible for a Member of the Board of Directors as long as the Member of the Board of Directors is not impaired in exercising their ob- ligations to BELIMO Holding AG. Election and Term of Office According to the articles of incorporation, the Board of Directors is made up of at least three and no more than seven members, who are elected individually by the An- nual General Meeting (AGM) for a term of office of one year, which ends with the next ordinary Annual General Meeting. Upon reaching 70 years of age, Members of the Board of Directors may be elected for a term of of- fice one final time. Details of the first election to the Board of Directors are provided in the following table: Member Patrick Burkhalter (Chairman) Dr. Martin Zwyssig (Deputy Chairman) Prof. Adrian Altenburger Sandra Emme Urban Linsi Stefan Ranstrand AGM 2014 2011 2015 2018 2019 2020 Internal Organization The Board of Directors is the supreme management body in the Belimo Group. It is empowered to make de- cisions with respect to all matters that are not reserved for the Annual General Meeting by law or in accordance with the articles of incorporation, or that the board has not delegated to another body by regulation or resolu- tion. The Board of Directors constitutes itself, subject to legal and statutory provisions. The Chairman and the Deputy Chairman of the Board of Directors as well as the Members of the Remuneration Committee are elected individually by the Annual General Meeting for a term of office of one year, which ends with the next ordinary Annual General Meeting. The Board of Direc- tors designates a secretary, who does not have to be a Member of the Board of Directors. By law, the Board of Directors has the following non- transferable and non-assignable tasks: – Directing the Company and issuing the necessary instructions – Approving corporate policy and strategy – Defining the organizational structure – Determining the design of the accounting system, financial control and financial planning – Appointing and removing the persons entrusted with the management and representation of the Company – Supervision of the persons in charge of the manage- ment – Drawing up the Annual Report and the Remuneration Report, preparing for the Annual General Meeting and carrying out its resolutions – Notifying the judge in the event of insolvency The Board of Directors may entrust the preparation and execution of its resolutions or the supervision of business to committees. The Board of Directors has established three permanent committees during the year under review: the Audit, the Remuneration and the Strategy Committee. The Nomination Committee shall be convened when necessary. Details of the memberships for each of the committees are given in the following table: Belimo Annual Report 2020 44

Credibility Culture Board of Directors Patrick Burkhalter, Chairman Patrick Burkhalter (1962, Swiss citizen) was elected to the Board of Directors at the 2014 Annual General Meeting and as Chairman of the Board at the 2019 Annual General Meeting. He is a Member of the Strategy Committee (Lead) as well as a Member of the Audit Committee. From 1988 to 2018, Patrick Burkhalter held several positions at Ergon Informatik AG, Zurich (Switzerland). After starting his career as a software developer, he was appointed Chief Execu- tive Officer and Member of the Board of Directors of the company in 1992. From 2016 to 2018 he led the company as its Chairman. He holds a degree in business administration and computer science (lic. oec. publ.) and acts as a guest speaker at ETH Zurich (Switzerland). Throughout his career, Patrick Burkhalter has gathered relevant knowledge and expertise with IT, entrepreneur- ship, strategic development and corporate governance. Dr. Martin Zwyssig, Deputy Chairman Dr. Martin Zwyssig (1965, Swiss citizen) was first elected to the Board of Directors at the 2011 Annual General Meeting. He is Deputy Chairman of the Board, a Member of the Nomination Committee and a Member of the Audit Committee (Lead). Dr. Martin Zwyssig was Divisional Controller at Sarna Kunststoff Holding AG, Sarnen (Switzer- land) before becoming Senior Vice President Finance & Controlling of the EMS-EFTEC Group in Romanshorn (Switzerland) in 2001. From 2003 to 2008, he was Group CFO of Schaffner Holding AG, Luterbach (Switzerland) and subsequently Group CFO of Ascom Holding AG, Baar (Switzer- land). In 2014, Dr. Martin Zwyssig became Group CFO and Member of the Executive Board of Autoneum Holding AG, Winterthur (Switzerland). Since April 2020, he is Chief Financial Officer of the REHAU Group with headquarters in Muri b. Bern (Switzerland). Martin Zwyssig holds a master’s degree in Accounting & Finance and a doctorate in business administration from the University of St. Gallen (Switzerland). Dr. Martin Zwyssig’s areas of expertise are financial management, accounting, tax and corporate governance. Prof. Adrian Altenburger, Member Prof. Adrian Altenburger (1963, Swiss citizen) was first elected to the Board of Directors at the 2015 Annual General Meeting. He is a Member of the Remuneration Committee (Lead) as well as of the Strategy Committee. From 1999 to 2015 Prof. Adrian Altenburger was Partner, a Member of the Group Executive Committee and a Member of the Board of Directors of the engineering company Amstein + Walthert AG, Zurich (Switzerland). In 2015 he was appointed Professor at the Lucerne University of Applied Sciences, School of Engineering & Architecture, and Head of the Institute of Building Technology and Energy, Lucerne (Switzerland). Prof. Adrian Altenburger is Vice President of the Zurich-based SIA Swiss Society of Engineers and Architects and Deputy Chairman of the Win- terthur-based SNV Swiss Association for Standardization (both Switzerland). He is a Member of the Board of Directors at the following Swiss companies: Jobst Willers Engineering AG (Rhein- felden), Energie Wasser Bern (ewb, Bern), BS2 AG (Schlieren) as well as Pasquale Baurealisation AG (Zurich). He graduated as an HVAC engineer HTL and holds a master’s degree in architecture from ETH Zurich (MAS Arch. ETH). Prof. Adrian Altenburger’s field of expertise lies in energy and building technology engineering. Belimo Annual Report 2020 46

Credibility Culture Minutes of the meetings are prepared and distributed to those who attended the meeting and to all Members of the Board of Directors. The members of the com- mittees also report verbally to the next meeting of the Board of Directors regarding the matters discussed and submit, where necessary, the respective motions to the Board of Directors. Audit Committee The Audit Committee comprises at least two indepen- dent Members of the Board of Directors. Based on their education or their professional experience, all members of the committee have sufficient knowledge of finance and accounting. The members for the 2020/2021 period of office are: Dr. Martin Zwyssig (Lead) and Patrick Burkhalter. Duties: – Evaluating the Annual Report, the annual and in- terim financial statements, the comprehensive audit report and the audit reports for the Belimo Group and BELIMO Holding AG, submitting motions to the Board of Directors – Evaluating adherence to financial reporting stan- dards within the Group – Selecting the audit firm to be proposed to the Annual General Meeting as statutory auditors, submitting motions to the Board of Directors – Approving the audit plans of the statutory auditors – Evaluating the performance, independence and re- muneration of the statutory auditors Competence Matrix – Board of Directors – Periodically reviewing the guidelines issued regard- ing ad hoc announcements and the avoidance of insider offences – Reviewing the internal control system – Reviewing reports and updates from internal audit – Periodically reviewing the structure of the risk man- agement system – Evaluating key tax issues The Audit Committee held two meetings in 2020 with the CEO, CFO and internal and external auditors. Remuneration Committee The Remuneration Committee comprises at least two non-executive, independent Members of the Board of Directors. A member is considered independent if he or she has never, or at least not for the past three years, been a Member of the Group Executive Committee and has no, or only minimal, business relationship with the Company. The Members of the Remuneration Commit- tee are elected individually by the Annual General Meet- ing for a term of office of one year until the next ordi- nary Annual General Meeting. The following members have been elected for the 2020/2021 period of office: Prof. Adrian Altenburger (Lead) and Sandra Emme. Information on the duties of the Remuneration Com- mittee are disclosed in the Remuneration Report on pages 20 to 25. The Remuneration Committee held two meetings in 2020. Patrick Burkhalter, Chairman Dr. Martin Zwyssig, Deputy Chairman Prof. Adrian Altenburger Sandra Emme Urban Linsi Stefan Ranstrand Executive Experience Finance, Audit, and Risk Management Compliance, Regulatory, and Legal Capital Markets, M&A Core Industry Experience (HVAC) Transferable Expertise in Related Industries Functional Experience International Business Experience Digitization, Technology Strategy, Business Transformation Human Resources, Compensation Board Governance Environmental, Social and Governance Anchor Shareholder Representative Belimo Annual Report 2020 48

Credibility Culture Group Executive Committee Lars van der Haegen, Chief Executive Officer Lars van der Haegen (1968, Swiss citizen) was appointed CEO of the Belimo Group and Head of the Group Executive Committee in July 2015. Prior to that, he held various management positions at Belimo: Head of Product Management Air Volume Control Europe from 2000 to 2002, Head of Product Management and Marketing at Belimo Americas in Danbury (Connecti- cut, USA) from 2003 to 2006, Managing Director of Belimo Italy from 2007 to 2010 and Head of Americas and Member of the Group Executive Committee from 2011 to June 2015. In April 2020 he was elected to the Board of Directors of Schweiter Technologies, Steinhausen (Switzerland). Lars van der Haegen is a Building Technology Designer who holds master’s degrees from both Columbia Business School in New York (USA) and London Business School (Great Britain). Gary Economides, Head of Group Division Asia Pacific Gary Economides (1970, Australian citizen) was appointed Head of Group Division Asia Pacific and Member of the Group Executive Committee in November 2012. Prior to that, he was a prod- uct manager at Staefa Control System in Sydney (Australia) from 1994 to 1997, served in various management roles at Siemens Building Technologies in Hong Kong (China) from 1998 to 2005, and was Managing Director of Carel Asia in Hong Kong (China) from 2005 to 2009, and CEO of Carel Electronic in Suzhou (China) from 2009 to 2012. He holds a bachelor’s degree in mechani- cal engineering from the University of Technology Sydney (Australia) and an MBA from the Uni- versity of New South Wales, Australian Graduate School of Management in Hong Kong (China). Lukas Eigenmann, Head of Group Division Europe Lukas Eigenmann (1961, Swiss citizen) was appointed Head of Group Division Europe and Mem- ber of the Group Executive Committee in July 2010. He joined the Company in 1984. From 1990 on, he held various management positions at Belimo Americas in Danbury (Connecticut, USA) until 1991 and in Vienna (Austria) from 1994 to 1996. From 2002 to 2010 he was Managing Director in Stuttgart (Germany). Lukas Eigenmann is an Electronics Technician TS. James W. Furlong, Head of Group Division Americas James W. Furlong (1960, American citizen) was appointed Head of Group Division Americas and Member of the Group Executive Committee in March 2016. Prior to that, he held managing positions with the building equipment provider York International from 1991 to 1999 and with Baltimore Aircoil Company from 1999 to 2008. From 2008 to 2016, he was Vice President of Industrial Refrigeration at Johnson Controls. He holds a bachelor’s degree in chemical engineer- ing from Manhattan College (New York, USA), an MBA from Loyola University (Maryland, USA) and is a licensed Professional Engineer in the State of Connecticut (USA). Belimo Annual Report 2020 50

Credibility Culture – Drawing up and implementing the structures and sys- tems necessary for the management of the Group – Making optimal use of Group resources – Utilizing potential synergies present within the Group – Promoting cooperation and communication within the Group – Preparing motions that fall within the authority of the Board of Directors Members of the Group Executive Committee The Group Executive Committee comprised a total of six members as of December 31, 2020. Further Activities and Relationships Personal details and further activities and relationships of the individual Members of the Group Executive Com- mittee are shown on pages 50 to 51. Mandates No Member of the Group Executive Committee may hold more than two additional mandates in the ultimate strategic management bodies or on the ultimate boards of listed companies which do not belong to the Belimo Group. The Board of Directors may allow a maximum of two exceptions per member in specific cases. The acceptance of a maximum of four mandates in the ultimate strategic management bodies or on the ulti- mate boards of non-listed companies which do not be- long to the Belimo Group is permissible for a Member of the Group Executive Committee as long as the Member of the Group Executive Committee is not impaired in ex- ercising their obligations to the Belimo Group. Management Contracts There are no management contracts with companies or individuals outside the Belimo Group. Remuneration, Participations and Loans Details on the principles of the remuneration system, the granted remuneration, participations and loans to current and former Members of the Board of Directors and the Group Executive Committee are provided on pages 20 to 25 in the Remuneration Report and in the notes to the financial statements of BELIMO Holding AG on page 148 of this Annual Report. Shareholders’ Rights of Influence Every shareholder may have his/her shares represented at the Annual General Meeting by a proxy appointed in writing or by the independent voter representative pro- vided for by law. The proxy need not to be a shareholder. The independent voter representative is elected by the Annual General Meeting for the term of office of one year, including the subsequent Annual General Meet- ing. The Board of Directors may issue procedural rules for participation, representation and give instructions. Shareholders can issue their proxy and instructions to the independent voter representative electroni cally. The independent voter representative is obliged to ex- ercise the voting rights that he/she represents as per the instructions. The general instruction to vote in ac- cordance with the Board of Directors is deemed to be a valid instruction for exercising the right to vote. See the provisions under the note regarding limitations on the transferability of shares and nominee registra- tions in this Corporate Governance section on page 43. Quorum as per Articles of Incorporation The Annual General Meeting resolves and elects with the absolute majority of votes cast, insofar as the law does not compulsorily specify otherwise. In the event of a tie, the Chairman of the meeting shall cast the de- ciding vote. If an absolute majority is not reached in a first election round, a relative majority shall be decisive in the second round. Resolutions based on article 704 of the Swiss Code of Obligations require at least two thirds of the votes represented and the absolute ma- jority of the nominal values of the shares represented. Convening the Annual General Meeting The Annual General Meeting is convened in accordance with the Swiss Code of Obligations by being announced once in the Swiss Official Gazette of Commerce, and, for information purposes, by written invitation to the registered shareholders. The provisions do not contain any rules that are in violation of statute. Including Items in the Agenda for the Annual General Meeting Voting shareholders representing shares with a nomi- nal value of at least CHF 10 000 may request the inclu- sion of an additional item in the agenda of the Annual General Meeting. Such requests shall be submitted in writing to the Chairman of the Board of Directors at lat- est 45 days prior to the Annual General Meeting. Limitation of Voting Rights and Proxies Each share entered in the share register at the date de- termined in advance by the Board of Directors entitles the holder to one vote at the Annual General Meeting. Entry in the Share Register For administrative reasons, the share register is closed for about ten days before an Annual General Meet- ing. The exact date will be determined by the Board of Belimo Annual Report 2020 52

Customer Value Customer Engagement and Support Engaging with Our Customers Superior customer support is essential for any company seeking to achieve and sustain a leading position in the HVAC industry. With its mission to be the global leader in actuators, valves, and sensors, Belimo has customer support ingrained in its corporate culture. Excellent support has become a competitive advantage of Belimo as it improves the ease of doing business and establishes long-lasting customer relations and loyalty. High-class customer support at Belimo is also a way of demonstrating that this is “the way we feel people should be treated.” As Belimo regularly introduces new technologies, the Company offers to assist clients in overcoming initial reservations and helping to acceler- ate market acceptance of new solutions. Crucial Consistency All departments at Belimo that work directly with cus- tomers are responsible for managing Customer En- gagement and Support. Among others, these include sales, customer service, technical support, field sup- port, product management, credit, and collections. The three region Heads (Members of the Executive Com- mittee) with direct regional access to customers are ultimately responsible for customer satisfaction. By maintaining a highly qualified sales force of more than 300 sales engineers, Belimo ensures every customer re- ceives expert advice in her or his local language. The consistency of customer engagement activities is crucial for the brand. Belimo, therefore, relies on well-documented internal policies and procedures to ensure employees are aware of their responsibilities as well as upstream and downstream value creation pro- cesses. A state-of-the-art CRM solution (Customer Relationship Management) was evaluated in the interest of continu- ously improving our sales efficiency and enabling best practice exchange and will be implemented for three pilot countries in 2021. The rollout will be completed globally in 2022, thus making our customer interactions become even more focused on individual needs. A global Belimo customer journey serves as a reference for the worldwide web, e-commerce, and social media presence of Belimo. In 2020, all country specific Belimo websites have been upgraded and harmonized to this new standard. Belimo customers are encouraged to use locally available support channels, be it via phone, website or new media. Customer Issue Tracking System Belimo reviews its management of Customer Engage- ment and Support by conducting surveys and track- ing material returns. To further advance such topics, Belimo has implemented a customer issue tracking system, allowing the Company to assess its effective- ness in resolving customer issues. In the event of a product complaint, Belimo applies a structured process to resolve the issue quickly. Once the product complaint is closed, a systematic phone survey is conducted. A Belimo quality manager calls each customer to gather feedback, to measure our per- formance, and to ensure that the case has been entirely resolved. In 2020, 100 percent (previous year 100 per- cent) of customers have been fairly/very satisfied with the frequency of the communication, as well as with the attitude of Belimo managers in the course of the process. Also in 2020, 96 percent (previous year 97 percent) are happy with overall complaint handling, which Belimo sees as a reliable indicator of the effectiveness of its approach. Belimo Annual Report 2020 54

Customer Value High-Performance Solutions for Energy Efficiency and Indoor Air Quality Quantifying Our Impact “Small Devices, Big Impact” is our promise. But how much impact do Belimo products really have on energy saving in the field? The HVAC control system, in which Belimo field devices are integrated, is designed to control comfort param- eters (temperature, humidity, CO2 level) of the indoor en- vironment. To achieve comfort in buildings and rooms, these systems consume energy. This is why Belimo products are designed to operate the HVAC processes in the most energy-efficient manner possible. To quan- tify the positive energy leverage, Belimo has estab- lished a model that assesses the impact of its field devices over their lifecycle in a typical HVAC system (for more information, please refer to our website on bit.ly/2HDFyEJ). The energy-impact model is struc- tured along with six lifecycle steps: 1. Resources The model takes account of “gray” energy-content in- cluded in materials used to build a typical field device (steel, copper, aluminum, plastics, electronics, and cardboard). 3.65 kg CO2e per air-side actuator / 6.04 kg CO2e per water valve and actuator (in one lifecycle): To keep utilized resources at the lowest possible level, environ- mental responsibility begins with product design. Local sourcing, weight, and material reduction, etc. lower this factor. 2. Manufacturing Also taken into account in our model is the energy needed to manufacture the field devices, to assemble and to test them. optimization of current products leads to considerable material and energy savings during manufacturing. 3. Distribution The model also considers the average amount of trans- portation energy needed to deliver a Belimo field device to the customer. Assumptions are made on the trans- portation paths commonly used. 0.11 kg CO2e per air-side actuator / 0.23 kg CO2e per water valve and actuator (in one lifecycle): Optimal shipping coordination results in low carbon emissions, as only a minority of field devices is shipped by air freight. 4. Operation Subsequently, the energy of a Belimo field device used during operation is calculated, taking into account the energy used in standby mode and when actuating. 46.99 kg CO2e per air-side actuator / 26.86 kg CO2e per water valve and actuator (in one lifecycle): In our model, a conservative service life of 15 years is as- sumed, while actual lifetimes are often 20 years and more (find out more about how Belimo reduced opera- tion energy up to 70 percent compared to competitors on page 58). 5. Energy Saving The European standard EN 15232-2017 “Energy perfor- mance of buildings – Impact of Building Automation, Control, and Building Management” (BACS) is used to calculate energy savings realized in applications. This standard provides average savings when using BACS and controls devices of different efficiency classes, ranging from A (55 percent energy savings) to D (no energy savings). We assume our devices are used in different percentages in each class, totaling weighted savings of 44 percent. 1.05 kg CO2e per air-side actuator / 2.46 kg CO2e per water valve and actuator (in one lifecycle): Ongoing Even though typical HVAC systems operate much the same across the world, significant variations arise due to differences in climate zones and power generation. Belimo Annual Report 2020 56

Deep Dive: Operations If All Zone Valves Were Belimo ZoneTight™ Valves While a zone valve actuator of poor quality (right) must be heated to 41.5 °C (107 °F) to keep the valve open, the Belimo CQ actuator (left) operates with minimal power and therefore remains near ambient temperature (22.6 °C / 73 °F). To achieve minimum power consumption during operation (step 4 of our impact model, see previ- ous pages), Belimo has developed a method for controlling the hydronic circuit in a zone. For decades, hydronic heating and cooling applications in rooms of commercial buildings were controlled manually. Later, when thermostatic valves or electronic controllers were introduced, low-cost short-stroke valves and wax-type actuators became the dominant technology. With a relatively small investment, a decent level of comfort could be achieved with these actuators. The downside of wax-type actua- tors, however, is the relatively high electrical power consumption needed to open the valve. An electrical resistor must heat up the wax to make it expand and, in order to hold the valve open, the wax must be heated all the time. A major disadvantage of the short- stroke valve is that it is prone to clogging with debris, making the control of water flow impossible and causing poor room comfort and wasted energy. For manually "regulated" valves, this is even worse. Once a valve is clogged, it no lon- ger adjusts to changing room tem- peratures. As a result, rooms are heated or cooled even when empty or there is no heating or cooling demand. Moreover, once the tem- perature is set, it stays as is, and people often adjust the tempera- ture by opening a window. This wastes tremendous amounts of energy. Especially in Asia and the Ameri- cas, another valve technology using so-called paddle valves has been very popular in zone appli- cations. The valves function using a rubber paddle attached to a mechanical spring that is operated by a motor, working against the water flow in the valve. Depending on the pressure applied against the paddle, the valve is more or less tight. Also, to keep the valve in an open position, the electric motor must continuously work against the spring load and the water pres- sure. This results in a considerably Belimo Annual Report 2020 58

Deep Dive: Operations Belimo ZoneTight™ valve-actuator combination by heating up the actuator to tem- peratures of more than 40 °C (104 °F), the extremely compact CQ actuator from Belimo uses more than five times less electrical energy than a comparable thermal short-stroke actuator. Actuation of the motor actuator from Belimo is also much faster and the valve can be adjusted to any position in just 75 seconds. Being independent of ambient temperature, the Belimo control valve assembly offers a further advantage compared to wax-type actuators. When a wax-type ther- mal actuator is exposed to direct sunlight or a high ambient tem- perature, the valve can no longer be reliably closed, resulting in continuous leakage and thus un- wanted energy waste. The photo on pages 58 and 59 de- picts a wax-type actuator opening a short-stroke valve with an ap- prox. temperature of 41.5 °C (107 °F). As the valve permanently works against the force of the spring, this actuator requires around 2.5 Watts of electrical pow- er. In contrast, the Belimo Zone- Tight™ actuator (see photo above) only requires 0.4 Watts in actuation mode and just 0.3 Watts in the holding state. This results in overall savings of approximately 70 per- cent in operation energy compared to wax-type actuators. Bearing in mind that a typical commercial building often has 1000 zone valves installed, this represents a substantial impact. Driving with a Foot on the Brake The actuator’s much lower power consumption in the holding state is the result of an invention from Belimo. To maintain its holding force in a de-energized state, preventing the actuator from open- ing or closing when counter pres- sure is applied, previous actuator designs required an inhibitor spring in the gear. This made the gear stiffer through friction. A major dis- advantage of this principle, how- ever, was the modulating friction it created, resulting in detrimental, cumulative energy consumption. In other words, the actuator was operating with a foot on the brake. Our answer was a simple but clever solution: A patented detent torque plate that extends the brushless electric motor. Thanks to the unique geometry of the additional plate between the motor coils and rotating magnets, an induction field is generated when the actua- tor stops, thus blocking the motor. Belimo went a step further with its Belimo ZoneTight™ product range and added a mechanical pres- sure-compensation function to its zone valves. A significant advan- tage of the pressure-independent valves is that the flow going out of the valves is stable even as the wa- ter pressure varies. This ensures maximum occupant comfort as the power output of the coil remains stable. Using an electronic pres- sure-independent valve such as the Belimo EPIV or Belimo Energy Valve™ offers even more energy savings in the building’s HVAC sys- tem. The building management system can identify the exact posi- tion of the actuator controlling the valve as well as the effective flow going through the valve. With this information, an algorithm can ensure that the valves are opened as much as possible while the pump speed is reduced to a minimum. The result: Improved room comfort while ensuring sub- stantial savings in electrical pump- ing energy. Click here to view the documen- tation of the model or go to: bit.ly/2HDFyEJ Belimo Annual Report 2020 60

Customer Story: Ludmillenstift Hospital Mastering the Flow came to a head, with many com- plaints from staff about cold rooms and zones in the winter months. The facilities management team at the Ludmillenstift was aware that certain parts of the site were regularly undersupplied with adequate hot water and recognized that the heating system’s hydronics was struggling to manage and monitor comfort levels. The team made bold attempts to improve the situation by dramati- health network and can boast more than 160 years of providing health- care to the Emsland region. It prides itself on exceptional levels of care for its patients, backed by modern infrastructure and state- of-the-art medical technology, including advanced diagnostic and therapeutic expertise and other specialized services. Cold Rooms and Bold Attempts Technology also plays a crucial role in ensuring the functionality, comfort, safety and efficiency of the buildings that make up the hospital’s infrastructure. How- ever, patient demand and spe- cialist facilities have grown be- yond capacity over the years, and repeated expansion and reno- vation programs have resulted in major challenges related to controlling and maintaining the hydronic distribution system. Years of expansion at the Ludmillenstift Hospital resulted in an HVAC sys- tem that just could not cope. The introduction of Belimo Energy Valves™ significantly reduced the water flow rate of the heating network, resulting in smart, transparent, and energy-efficient load- dependent heating and cooling systems – while improving comfort and keeping energy con- sumption stable. The Ludmillenstift Hospital is lo- cated in the city of Meppen in Low- er Saxony (Germany). This large multi-discipline hospital forms the main pillar of a comprehensive Maintaining a well-balanced HVAC system can be challenging in multiple-building complexes like hospitals. This was certainly the case when the situation Belimo Annual Report 2020 62

Customer Story: Ludmillenstift Hospital Illustration of the Situation at Ludmillenstift Hospital 40 percent of the energy used in buildings is used for heating and cooling. 40 percent of worldwide energy consumption can be attributed to buildings. Addressing the challenge: Oscillating Heat Supply The heat supply at Ludmillenstift had not been modernized at the same rate as the rest of the hospital, leading to oscillating heat supply of the individual sub stations. Belimo Annual Report 2020 64

Customer Story: Ludmillenstift Hospital Cautious Start – Instant Results The first installation was chosen at manifold 1, which supplied a ward block, a residential building for staff, and a hotel for patients’ families. A total of eight Belimo Energy Valves™ were installed in several zones and linked to the hospital’s existing Building Man- agement System (BMS) via the BACnet/IP interface. A test phase was first carried out in a transpar- ent manner to identify and mitigate any potential risks before they became problems, which led to a win-win situation for all parties. system can be operated efficiently, and that the maxi- mum amount of water is not permanently pumped through the buildings. Innovation to the Rescue Belimo had already introduced Peter Meier to its latest innovation – the Belimo Energy Valve™ – and this seemed the ideal solution for the Ludmillenstift Hospital site. This electronic, characterized control valve combines pressure- independent control, flow and energy measurement, automatic hydronics balancing and data moni toring, all in one device. By continuously measuring water flow and temperature of the supply and return (delta T), the Belimo Energy Valve™ determines the ther- mal energy being consumed. The automatic flow control func- tion then makes sure that only the required amount of energy is supplied, regardless of any differential pressure fluctuations. “It was astonishing to see how the true flow rates of the heating supply became visible in the BMS for the first time. Together with the facilities management team at the Ludmillenstift, we were able to identify the weak points in the hydronics system and take appropriate countermeasures.” Peter Meier, controls expert from August Brötje KG The Belimo Energy Valves™ were put to the test from February to March and proved a complete suc- cess in the prevailing weather conditions of temperatures as low as – 12 °C (10 °F). They dynami- cally controlled and monitored all hydronic manifold circuits by continuously measuring the flow and water temperatures, from the very first moment they were commissioned – problems with the heating supply had finally been localized and solved. From then on, all rooms and zones connected History of Belimo Energy ValvesTM at Ludmillenstift 2012 2013 2014 Presentation of the Energy Valve™ by Belimo. Installation of the first eight Belimo Energy Valves™ in distribution circuit 1. Installation of 25 Belimo Energy Valves™ in the distribution circuits 2 and 4. Installation of 13 Energy Valves™ in the cooling circuits. Installation of Energy Valves™ in the cooling system of large-scale medical equipment. Retrofit Belimo Annual Report 2020 66

Customer Story: Ludmillenstift Hospital The Ludmillenstift Hospital maintained comfort and energy consumption in 2020 at 2013/2014-levels despite having expanded floor space by 40 percent in the meantime. The successful completion, infor- mative results and data transpar- ency of the test phase showed that the Belimo Energy Valves™ would be a perfect fit for the complete HVAC system in the hospital, in- cluding other application areas where thermal energy and volumet- ric flow had to be monitored and recorded. ter and 60 °C (140 °F) in summer; the higher temperature in summer is due to the hot water preparation. As a result, all hydronic adjust- ments of the heating system were made in preparation to initiate the planning and integration of the cogeneration unit (BHKW) with 8 551 operating hours per annum into the network. Keeping Warm Staying Cool On the heating side, the Ludmillen- stift implemented further moderni- zation projects, renovating mani- folds 2 and 3 in the same way as manifold 1. The system operates at a seasonally dependent flow temperature of between 72 and 75 °C (162 and 167 °F), to supply the main heating and ventilation system, as well as 17 other hot water heating systems. The return temperature of the heating sys- tems is set to 48 °C (118 °F) in win- The renewal of the HVAC system continued with the cooling system. All chillers are now connected to form a common system, enabling load-dependent cooling and mak- ing optimal use of available capa- city by transporting excess cooling energy to other buildings. The Belimo Energy Valves™ use the monitored flow and temperature data to reliably control the flow volumes and cooling demand of the entire network. For example, when external temperatures are below 12 °C (54 °F) and the cooling circuit used for ventilation does not require any cooling capacity, the Belimo Energy Valves™ stay closed and the water is pumped to anoth- er area that has a cooling demand. The Belimo Energy Valves™ are also used in the cooling systems of large medical equipment such as MRI and CT systems, where they monitor and record the flow volume for reporting purposes. Partnership for Energy Efficiency Today, the HVAC system at the Ludmillenstift Hospital reliably supplies the entire site with the right amount of cooling and heat- ing all year round, in an energy- efficient way. Between February 2013 to February 2014, the hospital used approximately one million kWh (1 GWh) less input energy in Belimo Annual Report 2020 68

Belimo Installs One of the Largest Solar Plants in Connecticut Leading by Example In 2020, the Belimo Americas headquarters in Danbury installed a 876 kWp photovoltaic rooftop system, one of the largest such installations in the state of Connecticut (USA). This system is a natural renewable energy source that powers part of our Danbury facility and lowers our impact on the environment. Belimo strives to be environmentally friendly, from the products we offer to the way we operate our facilities. Overall, Belimo has installed solar power capacities of almost 1 MWp or more than 520 Watts per employee. Discover more bit.ly/300nYRE

Story: Indoor Air Quality and Health Sensing a Building’s Health Seitentitel gross Lead Copy Most people spend 90 percent of their time indoors and breathe 12 000 liters (3170 gal- lons) of air per day. With its sensors and actuators, Belimo co ntributes to better and healthier indoor air and addresses some of the challenges in the wake of COVID-19. While the effects of volatile organic compounds (VOC) on humans have been discussed within the context of “sick building syndrome,” the role that dry air plays in spreading microbes, including viruses, is often neglected. Viruses can spread through small droplets of water. The lower the air humidity, the quicker small droplets may evaporate and turn into aerosols, which enables them to travel great distances. Viruses in small droplets and aero- sols can travel through large open indoor spaces such as offices and survive for several hours, thereby infecting more people. The “Sweet Spot” in Humidity Furthermore, many bacteria and viruses become much more in- fectious when exposed to dry air. In temperate climate zones, air humidity indoors often drops to a relative humidity of less than Belimo Annual Report 2020 Belimo Annual Report 2020 72 72 Headline

Story: Room Sensors A Glimpse of the Future The new Belimo room sensors and room operat- ing units are an ideal addition to the existing product range. With its new room sensors and room operating units, Belimo liter- ally sets foot in the room, providing manifold advantages to users. The product range expansion for visible areas of the room offers an esthetic design for the architect, quick assembly for the installers, easy commissioning for system integrators and a comfortable room climate for users. Belimo room sensors have the slimmest design of any active sensor on the market – even the multi-temperature, humidity and CO2 sensor has a depth of just 22 millimeters (0.87 inches) and fits seamlessly into any environment. Easy Installation Despite its slim construction, everything is designed for easy in- stallation. For example, the sen- sors are equipped with pluggable push-in spring-loaded terminal blocks. The mounting plates are compa- tible with all standard wall sockets and can therefore easily be used around the world. The ease of installation reduces errors during assembly or wiring and as a result saves costs. Using near-field communication (NFC), the Belimo Assistant App simplifies commissioning and diagnostics and enables important parameters to be set with a smart- phone. The app was developed to offer device settings and operating data for all active Belimo room devices at your fingertips. Using the smartphone’s NFC function, it provides wireless and efficient configuration, control and on-site operation of room sensors, even if the sensor is not connected to a power supply. Find Out More Watch the video on the develop- ment of the new room sensors and room operating units: bit.ly/3iSybqN Belimo Annual Report 2020 74

Solution Leadership Strategic IP Management Managing Patents Successfully Through strategic intellectual property (IP) management, Belimo protects its commercial interests and handles its growing number of patents and trademarks. The first and foremost reason for Belimo to pursue stra- tegic IP management is to ensure the Freedom to Op- erate (FTO). This means that Belimo and its customers are free to manu facture and operate Belimo products or non-patented know-how, without being restricted by other patent rights. Protecting technological advantage and subsequent innovation leadership is a second rea- son. A third focus is pruning: the continuous evaluation of patents with low business value. Regular Monitoring to Ensure FTO In search of new patents, the strategic IP management team continuously monitors ongoing development proj- ects, mapping out and analyzing their status. In addition to that, new product or technology pa tents of third par- ties in the HVAC industry are regularly moni tored to en- sure FTO and to be knowledgeable of the market. The Belimo Head of Research is ultimately responsible for IP topics, while external experts support specific tasks. This approach allows developers to focus pri- marily on their roles, especially since these tasks are highly labor-intensive. IP management also entails de- fining rules and duties between development partners before the start of a project. These are usually well-docu- mented in framework development agreements and non-disclosure agreements (NDAs). If required, Belimo evaluates the licensing of advanced technology for its products to partners. Maintaining a Patent Database The effectiveness of IP management is reviewed in regu- lar meetings with the Group division Innovation and the IP management team. This also ensures an unlimited flow of information between the two groups. IP man- agement also maintains a patent database for tracking and sharing all relevant information. Belimo uses sev- eral KPIs to gauge the success of its strategic IP man- agement. These are the number of fields Belimo files patents in, the percentage of patent protected products, as well as the number and areas of license, develop- ment, and frame development agreements. Currently, Belimo files approximately ten new patents each year. Overall, Belimo owns around 90 patent families with about 280 pending patent applications or granted pa- tents. In the reporting period, approximately 70 percent of sales was patent-protected. Belimo continuously monitors whether the IP strategy is on track and adapts the IP management infrastructure to strengthen its IP related activities. IP Management in the Age of Digitization Strategic IP management is especially relevant in the age of digitization – a field Belimo focuses its research on and has filed several patent applications. Digitiza- tion and IoT are also fields where Belimo is increasingly competing with IT companies that are submitting a vast number of patents. Belimo puts significant efforts into monitoring activities in this field and prioritizes patent- ing efforts. Last but not least, FTO in the IoT range is a vital IP area as well. Belimo Annual Report 2020 76

Operational Excellence Procurement Volume by Region Procurement Volume from Code of Conduct Signatories Procurement Volume from ISO 9001 / 14001 Certified Suppliers in % of procurement volume, 2020 in % of procurement volume, 2020 in % of procurement volume, 2020 6 17 77 Europe: 77 % Asia Pacific: 17 % Americas: 6 % 2 98 15 43 57 85 Signatories of the Code of Conduct: 98 % Non-signatories of the Code of Conduct: 2 % ISO 9001 certified: 85 % Not ISO 9001 certified: 15 % ISO 14001 certified: 57 % Not ISO 14001 certified: 43 % mately one-third of its suppliers. Especially in challeng- ing years such as 2020, Belimo views such long-term partnerships as absolutely critical for maintaining high product availability. The main instruments to establish new and evaluate existing supplier relationships are audits, risk manage- ment, and category management. An SRM tool (Sup- plier Relationship Management) allows Belimo to effec- tively and reliably follow up on action plans resulting from each audit. For Belimo, being an active partner in the skill development of its suppliers’ workforce re- garding manufacturing processes is crucial for long- term partnerships, as it ensures competitiveness and quality. The final goal of Belimo is to establish relation- ships with its suppliers that are characterized by trust and honesty. Seeking a Cultural Fit Next to ensuring a cultural fit with its suppliers, Belimo evaluates the effectiveness of its approach based on the number of suppliers audited each year, the years of cooperation, and their turnover. Of its supplier base, about 10 percent are audited every year. These audits are mainly conducted at A, B, and special part suppliers. Besides being ISO 9001/quality management certified, Belimo requires its A-suppliers to establish a certified environmental management system that complies with ISO or has at least implemented the following elements from the standard: environmental goals, program, legal compliance, waste management. Regarding supplier turnover, between one to five new ones are added each year – while non-compliant sup- pliers are gradually weeded out. On average, Belimo maintains a relationship for over 15 years with approxi- Belimo Annual Report 2020 78

Operational Excellence During the design process, Belimo also relies on indus- try-wide accepted tools, such as FMEA (Failure Mode and Effect Analysis) and in-depth risk analysis. Environ- mental directives (WEEE, RoHS, REACH) are also taken into account. Moreover, all Belimo products undergo first-article inspection and series testing before be- ing sold. The successful inspection and series testing have ensured that no incidents of non-compliance with regu lations and/or voluntary codes have been reported during the period under review. All legal and compliance topics concerning customer health and safety are listed in the Belimo requirement specifications. With this framework, Belimo ensures that all requirements regarding health and safety are fulfilled. No incidents of non-compliance with regula- tions and voluntary codes were reported during the pe- riod under review. Assessment of the Health and Safety Impacts of Products and Service Categories (GRI 416-1) Percentage of significant products and services, for which health and safety impacts were assessed prior to sale in 2020 100% Incidents of Non-Compliance Concerning the Health and Safety Impacts of Products and Services (GRI 416-2) Number of incidents in 2020 0 Belimo Annual Report 2020 80

Operational Excellence Energy Consumption by Source (Danbury/Hinwil) in % of total energy consumption, 2020 1 11 1789 Employees 54 15 19 Electricity, non-renewable: 54 % Electricity, renewable: 19 % Natural gas: 15 % District heating: 11 % Diesel: 1 % CO2e Emissions by Source (Scope 1 and 2, Danbury/Hinwil) in % of total CO2e emissions, 2020 2 21 1789 Employees 77 Electricity, non-renewable: 77 % Natural gas: 21 % Diesel: 2 % The Belimo sites in Hinwil (Switzerland), Danbury (Connecticut, USA), Sparks (Nevada, USA) as well as Shanghai (China) apply the international environmental management standard ISO 14001 and quality manage- ment standard ISO 9001. Also, the Stuttgart (Germany) site applies the ISO 9001 standard. For the service and logistics center in Großröhrsdorf (Germany) opened in 2019, an ISO 9001 certification is planned for 2021, fol- lowed by ISO 14001 certification for 2022. These sites also undergo regular audits by the Swiss Association for Quality and Management Systems (SQS) and the China Quality Certification Center (CQC) in China. UN Sustainable Development Goals Approach Belimo contributes to SDG 12 “Responsible Consumption and Production” by upholding sustainable procurement practices and localized sourcing, minimizing waste, and optimizing logistics through modularization of its product ranges and applying environmental management standards at its main production sites. Belimo Annual Report 2020 82

Operational Excellence Classification of Operational Boundaries Where CO2e Emissions Occurred (Danbury and Hinwil) in tCO2e Total Scope 1 (direct emissions from owned or controlled sources) Scope 2 (indirect emissions from the generation of purchased energy) 2020 2019 restated 1) 1 535 347 1 188 1 544 287 1 257 1) 2019 figures have been restated due to new, more detailed emission factors (district heating) as well as omission of Scope 3 (electricity renewable). Energy and CO2e Intensity (Scope 1 and 2, Danbury and Hinwil) As outlined on pages 56 to 57, Belimo products reduce energy consumption and CO2 emissions by a factor of 24 in relation to their resource input. While our model covers the whole resource consumption including supply chain, the figures below only show measured resources. Net sales Net sales Per capita Per capita Number of actuators sold Number of actuators sold Unit 2020 2019 restated 1) kWh per 1 000 CHF Net Sales kgCO2e per 1 000 CHF Net Sales kWh per employee kgCO2e per employee kWh actuator sold kgCO2e per actuator sold 15.38 2.32 5 574.99 841.83 1.47 0.22 14.71 2.23 5 954.27 902.28 1.42 0.22 1) 2019 figures have been restated due to new, more detailed emission factors (district heating) as well as omission of Scope 3 (electricity renewable). Net sales, total employees, total number of actuators sold represent Group-wide figures, while the underlying energy consumption and greenhouse gas emissions comprise only data from the two locations Hinwil and Danbury. Recycling and Disposal (Danbury and Hinwil) For recycling For incineration Remaining waste Hazardous waste (electron- ics, separated materials) Wastewater Unit Danbury Hinwil Total 2020 Total 2019 metric tons metric tons metric tons metric tons m3 290 73 0 0 250 357 249 0 3 6 478 648 321 0 3 6 728 756 350 0 3 6 240 Business Travel (Danbury and Hinwil) Emissions caused by air travel of employees in tCO2e 2020 2019 523.9 2 243.6 Largely reduced business travel activity in 2020 due to COVID-19. All emission factors and emissions are based on the myclimate Flight Emission Calculator. Belimo Annual Report 2020 84

Story: Future-Proof Chilled Water System To optimize the HVAC system at its head- quarters, Belimo went the extra mile with an innovatively designed and controlled cooling plant. It not only show- cases energy- efficient HVAC field devices but also energy trans- parency. In 2018, Belimo kicked off the plan- ning of a new chilled water supply plant. Its goal was to address demanding and persistent comfort issues in the main production building in Hinwil (Switzerland) and to replace the 18-year-old plant. Simultaneously, the switch to a new building automation solution had been initiated. Two chillers, each with a cooling capacity of 350 kW (100 cooling tons), were designed to be the heart of the new system – with the option to add a third chiller in the future. After a thorough planning phase, installation started in March 2019 as the two 3.2 ton machines were lifted onto the roof. Providing Full Transparency In the following phase, six Belimo Energy Valves™ were installed in the two chillers and in the four sec- tor sub stations, where they pro- vide transparency on two levels: where cooling energy is being gen- erated (at the chiller level) and in which sector it is being consumed. Two electrical meters measure the power consumption of the two chillers and compare this data to their thermal output. The resulting COP measurement (Coefficient of Performance, see box on page 87) is the leading key performance in- dicator for gauging energy efficien- cy of the cooling system. “If it was not for the Belimo Energy Valves™, we probably would never have found out at such an early stage that the two identical chillers were not performing equally,” says Marco Manfredi, Global Real Estate Manager at Belimo (see photo above). By directly comparing their COP, Manfredi could work together with the contractor to single out and consequently fix a parameter that differed in the two chillers’ factory settings. The Belimo Energy Valves™ also provided the necessary transparen- cy and dynamic hydronic balancing at the sector level to efficiently ad- dress the comfort issues in the building. Allowing Manfredi to read out significant real-time values was essential for the system’s efficient operation and optimization. “By independently regulating the flow based on the required volumetric flow, the Belimo Energy Valve™ not only increases energy efficiency, it also creates transparency as pow- er and energy consumption can be read and compared in each sector,” explains Manfredi. If substantial differences in perfor- mance between the sectors occur, the cause can be singled out and, if necessary, a system malfunction can be corrected. And in the event that something does not work as planned, historical data can be used for evaluation. The hydronic system is designed as a variable primary flow (VPF) system, adapting the primary flow according to the cooling demand of the building sectors. The two Turbocor chillers control the supply temperature in a modulating man- ner. "Thanks to the Belimo Energy Valves™, the flows of the two chillers and the four sub stations are balanced and adapted at all times to the load situations," says Manfredi. Sensors Maximize Efficiency In addition to the Belimo Energy Valves™, Belimo sensors were in- stalled in many of the system’s components. They continuously monitor system values and report them to the control system. The sensors for continuous tempera- ture measurement at the evapora- tor input and output were designed to offer precise and robust meas- urement as well as easy mounting. All data can be visualized and moni tored through the Belimo Building Management System in real time. The system also allows full remote access and control of the HVAC systems and triggers alarms if it detects any incorrect situations. A great deal of thought went into designing the installation and control, ensuring to be as energy efficient as possible. The cooling energy produced is distributed to the four sub stations with heat exchangers (one per sector) via a 140 meter (460 foot) long pipeline equipped with a twin pump instal- lation and Belimo butterfly valves. The primary and secondary circuit is separated by plate heat exchang- ers. 3000 liters (793 gallons) of water storage are connected to the system, temporarily storing cooling energy. “The storage allows the chillers to operate more efficiently as longer and continuous operating times are possible, instead of oper- ating on a short-term and intermit- tent basis,” says Manfredi. The cooling energy is used in every sector for ventilation and air-condi- tioning systems, as well as for the thermally-activated building systems (TABS). TABS are an ener- gy-efficient, innovative solution for cooling and heating buildings. They use the building mass, in particular the concrete, as energy storage, cooling the zone as chilled Belimo Annual Report 2020 86

Operational Excellence Process Efficiency and Short Lead Times Staying Ahead in Logistics Short lead times are a main competitive advantage that Belimo offers to its customers. Frequent last-minute changes in planning, construc- tion, and installation are a severe challenge in the HVAC sector. Through short lead times and on-time perfor- mance, Belimo provides its customers with additional flexibility. Delivering on-time and directly to customers and construction sites also reduces handling and par- tially eliminates the need to stock products, which frees up our customers’ capital and time. Besides, short lead times reduce risks such as exposure to order changes and updates by waiting customers. They also minimize on-site loss as well as material returns. Short lead times also increase the flexibility of Belimo to react to changing demand. Short lead times result in lower carbon emissions and costs as urgent deliveries are usually air-shipped. Furthermore, process efficiency in logistics reduces internal lead times between order intake and shipping, production, and customization. Change in Logistics Provider Weekly consolidated shipments from suppliers are a measure for keeping lead times short while saving energy. Also, the Company uses the reusable packaging five to seven times to transport goods back and forth to suppliers. The consolidation of internal transfers within the Company and direct deliveries to customers reduce lead times. Standardized reusable packages are used for deliveries between Belimo sites as they allow auto- matic storage or further processing without any need for repackaging. Measuring Delivery Performance Short lead times and reliability are cornerstones of what the Company offers its customers. If the first promised customer delivery date, the "first confirmed (date)", of a sales order cannot be fulfilled, then the correspond- ing order will be adjusted to reflect a newly confirmed date. This is typically the "last confirmed (date)" for the customer, since he/she has initially received an earlier delivery date on his/her order confirmation. Belimo Global On-time Delivery Performance in %1) The departments responsible for process efficiency and short lead times are procurement, planning, customiza- tion, production, and logistics. Continuous process im- provements such as the optimization of customs duty processes, product lifecycle management, supply chain improvements, and managed logistics (4PL) are crucial processes for fast lead times. 5 . 0 9 7 . 8 9 1 . 0 9 5 . 7 9 1 . 2 9 2 . 7 9 2 . 2 9 1 . 7 9 9 . 1 9 9 . 6 9 2016 2017 2018 2019 2020 First confirmed Last confirmed Trend line 1) Weighted logistics data of all Belimo sites except Mumbai (India) and Kuala Lumpur (Malaysia), covering 98 percent of global deliveries. To improve this, Belimo completed the change from a 3PL (Third Party Logistics) to a 4PL provider at the beginning of the reporting period. The latter also of- fers tailor-made supply chain management, regular freight tenders, and fully automated digital data interex- change. These measures reduced cost per kilogram by one to three percent and end-to-end lead times by two to three weeks. The aim of Belimo is to provide "best-in-class service" to meet the needs of its customers. COVID-19 challenged the supply chain in 2020 and the historically positive curve of increasingly on-time delivery performance has flattened slightly. By measuring processes more closely and by adding further measuring points, Belimo will continue to improve its ability to contribute to the success of its customers. Belimo Annual Report 2020 88

Story: Service & Logistics Center Großröhrsdorf In 2019, the new service and l o gistics center located in Groß röhrs dorf began serving indi vidual customer needs. The hub addresses an ever- increasing trend in the market for custom production. In summer 2019, Belimo settled down in the State of Saxony – more precisely, in Großröhrsdorf, a small town 26 kilometers (16 miles) north-east of Dresden (Germany). Belimo implemented the setup of the new location in record time – from purchasing the building to the start-up phase. It already began taking orders in its inauguration year. And despite the COVID-19 impact, the ramp-up of the new center is still well on track. Belimo portfolio, adds literally plenty of room for growth, strengthens the Group’s presence in an important and booming European economic region, and naturally reduces the Swiss Franc exposure of the Group. Adding Design-to-Order The Großröhrsdorf location namely serves three main tasks (see also box below): Develop the warehouse and logistics for the German market, act as a hub for the Euro- pean sensor portfolio (standard and customization), and pursue an entirely new business model, the so-called design-to-order process (DTO). This process was initially successfully implemented at the Belimo retrofit workshop in Danbury (Connecticut, USA). Describing the DTO-offering of “his” site, Managing Director Martin Arnold says: “Each order is a cus- tom production with a very manageable number of pieces.” The new location offers several advantages: It adds even greater customer flexibility to the existing In addition to the most popular customer-specific offering, the cable solutions, Belimo Großröhrs- dorf customers can expect appli- cation-specific linkages (an acces- sory product which is needed to connect an actuator with a globe valve or a butterfly valve), piping packages, bundles (actuators, sensors, and valves), special product confi gurations and OEM-specific (Original Equip- ment Manufacturer) application software. Individual shared- logic solutions will also be offered for OEMs, specifically for Performance Devices. For example, a customer can order a pre-assembled 6-way valve with connection pipes for cooling and heating ceilings and a cable with a special plug – this dramatically simplifies installing the valve at the construction site. “This is something we were previously unable to offer,” says Arnold. Focus on Quality and Costs The demand for project specific DTO solutions has been in the mar- ket for a long time. In addition to standard products, more and more Offerings of the Service and Logistics Center Großröhrsdorf Standard Customization Design-to-Order Standard Belimo Products High-Volume OEM Products Configured Products Customized (Combined) Products Custom Production in Low Volumes Warehouse and logistics for the German market. Customizing center for the German market. Design-to-order process (DTO) for the European market. Standard sensor offering for the European market. Sensor customization for the European market. Belimo Annual Report 2020 90

Operational Excellence Quality First Exceeding Expectations Following our Quality First Standards, Belimo encourages all of its employees to assume their share of responsibility to ensure quality. The order of our priorities is quality first, timeliness second, and cost third. To achieve our goals in terms of quality, these Quality First Standards also state that quality is everyone’s responsibility. The standards are, therefore, cascaded to each employee through individ- ual workshops within all divisions. By doing so, employ- ees become part of the development. And by raising awareness among our employees, we emphasize our commitment to live up to the quality standards we have defined for ourselves. How Do We Manage Quality? To contribute to the organization’s overall quality mind- set, Belimo employees are empowered and encouraged to make continuous improvements to operational ex- cellence at every step of the value chain. Besides, all employees are encouraged to open an internal quality, environmental, or safety-case if they believe something is not conforming. These inputs are then analyzed, and corresponding action is taken. To further strengthen its Quality First approach in 2020, Global Quality pushed ahead with setting up a pro- cess engineering department for continuous process improvements. A second focus area has been the im- provement of the gate review process for development projects, intending to support the project team with experts during the entire project cycle and to increase the effectiveness and efficiency during the gate reviews themselves. Thirdly, a product and operational compliance project was executed in 2020 to promptly manage all these re- quests against the backdrop of continuously increasing compliance obligations. With setting up a compliance organization, well-defined processes, including a mate- rial database, Belimo will become even more efficient in achieving customer expectations. How Do We Measure Quality? Belimo measures customer satisfaction after closing a quality case. Also, the number of customer, supplier, and internal complaints is regularly reviewed to verify our approach’s success. The number of customer complaints decreased from an annual average of more than 200 between 2015 to 2018 to 171 in 2019 and 146 in 2020, respectively (– 14.6 percent). Customer complaints have also con- tinued to decrease steadily relative to net sales develop- ment, which we regard as confirmation of the success of our quality strategy. In 2020, the number of supplier complaints (of logis- tical and technical nature) remained nearly stable in comparison with the figure of 2019 (+ 3.3 percent), in spite of the globally stressed supply chains resulting from the COVID-19 pandemic. We consider this to be a great success and proof of the stability of our long-term partnerships with our suppliers. In 2016, we initiated the logging of all logistical sup- plier complaints, regardless of severity. This initiative has helped us understand potentials for improvements while at the same time resulting in a peak in the num- ber of logistical supplier complaints. Subsequent years have conclusively shown a stabilization in the number of supplier complaints, proof of the effectiveness of the measures that have been implemented. Belimo Annual Report 2020 92

Appendix Stakeholder Engagement and GRI Content Indices About this Report This report has been prepared in accordance with the GRI Standards: Core option. The current report refers to the year 2020 and is the second report that BELIMO Holding AG has published along the GRI-standards (GRI 102-49; 102-50). Considering newly available, more detailed emission factors for district heating, the CO2 emissions from heat consumption (page 83 and 84) were recalculated for 2019. Furthermore, the focus is placed on Scope 1 and 2 emissions, while Scope 3 emissions from renewable electricity are considered immaterial and thus are excluded (GRI 102-48). The re- porting period is January 1, 2020 – December 31, 2020 (GRI 102-50). BELIMO Holding AG has not sought exter- nal assurance of the GRI information provided but has used the standards for internal auditing wherever prac- tical (GRI 102-56). The content of this report focuses on the topics determined to be relevant or material to Belimo, its stakeholders and its impacts on sustainable development. For a description of the materiality as- sessment see page 6 and for the alignment between Belimo material topics and GRI topic-specific stan- dards see the table below. The discussion of these top- ics has been developed so that it meets the information requirements of the key stakeholder groups of Belimo (see page 95). On the executive-level, these topics are managed by the CFO and the CEO. They are supported by the Head of Global Quality as well as the Head of Strategy & Brand Management as members of the Sus- tainability Steering Committee. Mapping Our Topics with GRI Page Belimo Material Topics GRI Topic 9 17 27 30 32 38 54 56 71 75 76 77 79 81 88 92 Performance Economic Performance Balanced Investment Portfolio Credibility Culture Company Values and Cultures Employee Empowerment and Engagement Skill Development and Knowledge Management Equal Opportunity Employment Customer Value Customer Engagement and Support High-Performance Solutions for Energy Efficiency and Indoor Air Quality Solution Leadership Solution Leadership Digitally Enabled Solutions Strategic IP Management Operational Excellence Partnerships with Suppliers Environmental Footprint of the Supply Chain 201 Economic Performance – 102-16 Values, principles, standards and norms of behavior – 404 Training and Education 405 Diversity and equal opportunity 406 Non-discrimination – 305-3 Other indirect (Scope 3, downstream) GHG emissions – – – 102-9 Supply chain 305-1 Direct (Scope 1) GHG emissions 305-2 Energy indirect (Scope 2) GHG emissions 416 Customer health and safety Energy Efficiency in Operations Process Efficiency and Short Lead Times Quality First 302 Energy – – Belimo Annual Report 2020 94

Appendix GRI Content Index For the Materiality Disclosures Service, GRI Services reviewed that the GRI content index is clearly presented and the references for Disclosures GRI 102-40 to 102-49 align with appropriate sections in the body of the report. Disclosure Description Reference GRI 101: 2016 GRI 102: 2016 102-1 102-2 102-3 102-4 102-5 102-6 102-7 102-8 102-9 102-10 102-11 102-12 102-13 102-14 102-16 102-18 102-20 102-40 102-41 102-42 102-43 102-44 102-45 102-46 102-47 102-48 102-49 102-50 Foundation General Disclosures Organizational Profile Name of the Organization Activities, brands, products, and services Location of headquarters Location of operations Ownership and legal form Markets served Scale of the organization Information on employees and other workers Supply chain Significant changes to the organization and its supply chain Precautionary Principle or approach External initiatives BELIMO Holding AG; Corporate Governance, p. 42 Introduction; p. 5 Hinwil (Switzerland); Corporate Governance, p. 42 Solution Leadership, p. 71 Corporate Governance, pp. 42 – 43 Europe, Americas, and Asia Pacific; Management Report, pp. 8 –14; Segment Reporting, pp. 108 – 110 Key Figures, p. 15 Company Values and Culture, p. 28 Operational Excellence, pp. 77 – 80 Changes to the Scope of Consolidation, pp. 106–107 Environmental Footprint of the Supply Chain, pp. 79 –80 Introduction, p. 7 and www.belimo.us/en_US/about/ belimo/affiliated-organizations Membership of associations Introduction, p. 7 Strategy Statement from senior decision-maker Letter to the Shareholders, pp. 2 – 3 Ethics and Integrity Values, principles, standards, and norms of behavior Company Values and Culture, p. 27 Governance Governance structure Executive-level responsibility for economic, environmental, and social topics Stakeholder Engagement List of stakeholder group Corporate Governance, pp. 42 – 53 Appendix, p. 94 Appendix, p. 95 Collective bargaining agreements Information Regarding Employees, p. 28 Identifying and selecting stakeholders Approach to stakeholder engagement Key topics and concerns raised Reporting Practice Entities included in the consolidated financial statements Defining report content and topic boundaries List of material topics Restatements of information Changes in reporting Reporting period Appendix, p. 95 Appendix, p. 95 Appendix, p. 95 Credits, envelope Introduction, p. 6 Introduction, p. 6 Appendix, p. 94 Appendix, p. 94 Appendix, p. 94 Belimo Annual Report 2020 96

Appendix GRI 305-2 Energy indirect (Scope 2) GHG emissions GRI 305-4 GHG emissions intensity Energy Efficiency in Operations, pp. 83 – 84 Energy Efficiency in Operations, p. 84 GRI 103: 2016 103-1/103-2/103-3 GRI 103: 2016 103-1/103-2/103-3 GRI 103: 2016 103-1/103-2/103-3 GRI 400 GRI 404: 2016 GRI 103: 2016 103-1/103-2/103-3 404-1 404-2 404-3 GRI 405: 2016 GRI 103: 2016 103-1/103-2/103-3 405-1 GRI 406: 2016 GRI 103: 2016 103-1/103-2/103-3 406-1 GRI 416: 2016 GRI 103: 2016 103-1/103-2/103-3 416-1 416-2 GRI 103: 2016 103-1/103-2/103-3 GRI 103: 2016 103-1/103-2/103-3 Digitally Enabled Solutions Management Approach Digitally Enabled Solutions, p. 75 High-Performance Solutions for Energy Efficiency and Indoor Air Quality Management Approach Environmental Footprint of the Supply Chain Management Approach Social topics Training and Education Management Approach High-Performance Solutions for Energy Efficiency and Indoor Air Quality, pp. 56 – 57 Environmental Footprint of the Supply Chain, pp. 79 – 80 Skill Development and Knowledge Management, p. 32 Average hours of training per year and employee Skill Development and Knowledge Management, p. 33 Programs for upgrading employee skills and transition assistance programs Percentage of employees receiving regular performance and career development reviews Diversity and Equal Opportunity Skill Development and Knowledge Management, p. 33 Skill Development and Knowledge Management, p. 33 Management Approach Equal Opportunity Employment, p. 38 Diversity of governance bodies and employees Non-discrimination Management Approach Incidents of discrimination and corrective actions taken Customer Health and Safety Management Approach Assessments of the health and safety impacts of product and service categories Incidents of non-compliance concerning the health and safety impacts of products and services Company Values and Culture Equal Opportunity Employment, p. 39 Equal Opportunity Employment, p. 38 Equal Opportunity Employment, p. 38 Environmental Footprint of the Supply Chain, pp. 79 – 80 Environmental Footprint of the Supply Chain, p. 80 Environmental Footprint of the Supply Chain, p. 80 Management Approach Company Values and Culture, p. 27 Employee Empowerment and Engagement Management Approach Employee Empowerment and Engagement, pp. 30–31 Belimo Annual Report 2020 98

Consolidated Financial Statements Consolidated Income Statement in CHF 1 000 Net sales Material expenses Changes in inventories Personnel expenses Other operating income/expenses EBITDA 3) Depreciation, amortization and impairment 13, 14 EBIT Financial income Financial expenses Foreign exchange gain/loss Financial result Earnings before tax (EBT) Income taxes Net income Attributable to shareholders of BELIMO Holding AG Attributable to non-controlling interests 6 6 6 7 Note 2020 % 1) 2019 restated 2) % 1) 3 4 5 661 226 – 267 872 1 278 – 192 020 – 63 276 139 337 – 31 272 108 065 251 – 1 921 – 5 606 – 7 277 100.0 – 40.5 0.2 – 29.0 – 9.6 21.1 – 4.7 16.3 – – 0.3 – 0.8 – 1.1 692 680 – 282 377 3 491 – 188 263 – 71 307 154 224 – 30 355 123 869 479 – 2 175 – 2 390 – 4 086 100.0 – 40.8 0.5 – 27.2 – 10.3 22.3 – 4.4 17.9 0.1 – 0.3 – 0.3 – 0.6 100 788 15.2 119 783 17.3 – 14 148 – 2.1 1 320 0.2 86 641 86 715 – 74 13.1 13.1 – 121 103 121 144 – 41 17.5 17.5 – Earnings per share in CHF 8 141.02 197.00 There are no options or other instruments that could have a dilutive effect. 1) in % of net sales 2) see note 1.3 3) Alternative performance measures that are not defined or specified in IFRS, are described under the following link: www.belimo.com/financial-summary Consolidated Statement of Comprehensive Income Note 2020 2019 in CHF 1 000 Net income Currency translation adjustment Tax effect Items that are or may be reclassified subsequently to the income statement Remeasurement of post-employment benefits Tax effect Items that will not be reclassified subsequently to the income statement Other comprehensive income, net of tax Total comprehensive income Attributable to shareholders of BELIMO Holding AG Attributable to non-controlling interests 7 19 7 86 641 – 9 881 307 – 9 574 – 3 711 667 – 3 044 – 12 619 74 022 74 097 – 75 121 103 – 2 567 53 – 2 513 16 352 – 3 443 12 909 10 395 131 499 131 540 – 41 Belimo Annual Report 2020 100

Consolidated Financial Statements Consolidated Statement of Changes in Equity in CHF 1 000 As at January 1, 2019 Net income Other comprehensive income, net of tax Total comprehensive income Equity contribution by non-controlling interests Dividends Share capital Treasury shares Capital reserves Currency translation adjustment Retained earnings Attributable to share- holders of BELIMO Holding AG Attribut- able to non- controlling interests Total share- holders’ equity 615 – 67 23 814 – 4 588 417 469 437 243 – 437 243 121 144 121 144 – 2 513 12 909 – 2 513 134 053 10 395 131 540 – 61 494 – 61 494 121 103 – 41 – 10 395 – 41 131 499 96 96 – – 61 494 As at December 31, 2019 615 – 67 23 814 – 7 101 490 028 507 289 55 507 344 Net income Other comprehensive income, net of tax Total comprehensive income Purchase of treasury shares Treasury shares awarded for share-based payments Dividends – 9 573 – 9 573 86 715 86 715 – 3 044 – 12 618 83 671 74 097 – 3 673 – 74 86 641 – 1 – 12 619 – 75 74 022 – – 3 673 3 811 – 92 241 – 92 241 – 3 811 – – 92 241 – 3 673 3 516 295 As at December 31, 2020 615 – 224 24 110 – 16 675 481 457 489 283 – 20 489 263 Belimo Annual Report 2020 102

Notes to the Consolidated Financial Statements 1 General Corporate Information 1.1 The Belimo Group (hereinafter referred to as “Belimo” or “the Group”) is a leading global manufacturer of innovative electrical actuator solutions, valve systems and sensors for heating, ventilation and air conditioning (HVAC) systems. The shares of BELIMO Holding AG have been traded on the SIX Swiss Exchange since 1995 (BEAN). The registered office is in Hinwil (Switzerland). Basis of Preparation 1.2 The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and comply with Swiss law. The reporting date for BELIMO Holding AG, all of its subsidiaries and for these consolidated financial statements is December 31, 2020. The consolidated finan- cial statements are presented in Swiss francs (CHF), rounded to the nearest thousand. Due to rounding, amounts presented throughout this report may not add up precisely to the totals provided. All ratios and variances are calculated using the underlying amount rather than the presented rounded amount. The consolidated financial statements are prepared on the historical cost basis, unless a standard or interpretation prescribes another measurement basis for a particular caption, in which case this is explicitly stated in the accounting policies. The consolidated financial statements are published exclusively in English. The presentation of consolidated financial statements in accordance with IFRS requires management to make estimates, assumptions and judgments in applying accounting policies. This may have an effect on the reported income, expenses, assets, liabilities and contingent liabilities. In the event that such estimates and assumptions made in good faith by management at the time at which the financial statements are prepared subsequently differ from the actual circumstances, the original estimates and assumptions will be adjusted accordingly in the reporting period during which the circumstances change. Information about assumptions and estimation uncertainties that have a sig ni fi- cant risk of resulting in a material adjustment is included in the notes (see notes 7 Income Taxes, 13 Property, Plant and Equipment, 17 Financial Liabilities, 18 Provi- sions and 19 Non-current Employee Benefits). The COVID-19 pandemic has a significant impact on the global economic environ- ment. In light of these changes, Belimo has reviewed all areas involving significant accounting estimates and assumptions. In this process, the valuation of trade receivables and inventories were assessed for impairments. There was no impair- ment loss as a result of the review. In addition, the COVID-19 pandemic has no material impact on the significant accounting estimates and assumptions. Changes in presentation 1.3 Belimo re-assessed the presentation of the consolidated income statement. Other operating income and expenses are now shown as one line item, with details pre- sented in the corresponding note. Moreover, to improve transparency changes in inventories are presented in a separate line item. in CHF 1 000 Material expenses Changes in inventories 2019 Reported Restatement 2019 Restated –278 886 – –3 491 3 491 –282 377 3 491 Belimo Annual Report 2020 104

Notes to the Consolidated Financial Statements Currency Translation 1.6 Transactions in Foreign Currency Transactions in a foreign currency are translated into the functional currency at the exchange rate at the date of the transactions. Monetary assets and liabilities de- nominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date. Any foreign currency gains or losses resulting from transactions and from the translation of balance sheet items denominated in foreign currencies are recognized in the income statement. Non-monetary assets and liabilities measured at historical cost are translated using the exchange rate at the date of the transaction. Group Companies Financial statements of foreign operations are translated into Swiss francs as fol- lows: for the balance sheet, at the exchange rates at the reporting date; for the income statement, the statement of comprehensive income and the statement of cash flows, at the average exchange rate. Any translation differences arising from the translation of the balance sheets, income statements and the statements of comprehensive income are recognized in other comprehensive income with no effect on the consolidated income statement. This also applies to loans that are part of a net investment in a foreign operation. At the date of the loss of control over a foreign operation, the associated cumulative exchange differences are reclassi- fied to the income statement. in CHF CAD CNY EUR PLN USD Year-end rates Average rates 2020 2019 2020 2019 0.69 0.13 1.08 0.24 0.88 0.75 0.14 1.09 0.26 0.97 0.70 0.14 1.07 0.24 0.95 0.75 0.14 1.12 0.26 0.99 2 Changes to the Scope of Consolidation On December 1, 2020, Belimo acquired all shares of Opera Electronics Inc., a spe- cialist in air quality and gas sensors. Subsequent to the acquisition, Opera Electron- ics Inc. was merged into the newly incorporated subsidiary BELIMO Sensors Inc. The acquisition has increased the Group’s market shares in the sensor business and further extended the existing product range. Purchase Consideration In addition to the base purchase price of CHF 2.7 million, Belimo has agreed to pay the selling shareholders within one years’ time additional consideration if certain quantitative and qualitative targets are reached. The recorded contingent consider- ation reflects the maximal contractual payable amount. The outstanding deferred and contingent consideration is recognized as current financial liability. In Decem- ber 2020, CHF 0.1 million of the contingent consideration has been paid. The fair value of the remaining contingent consideration remained unchanged. Acquisi- tion-related costs of CHF 0.3 million are included in other operating expenses in the income statement and in cash flows from operating activities in the statement of cash flows. The following table summarizes the acquisition date fair value of each major class of purchase consideration: Belimo Annual Report 2020 106

Notes to the Consolidated Financial Statements 3 Segment Reporting The reportable operating segments are determined using the management ap- proach: external segment reporting is based on the Group’s internal organization and management structure, as well as the internal financial reporting to the Chief Operating Decision Maker – the Board of Directors of BELIMO Holding AG. Sales are measured net of sales tax, credits for returns and discounts and are rec- ognized when control of the goods transfers to the customer. Due to the current business model, the performance obligations are satisfied at a point in time. Gener- ally, sales are recognized upon shipment or upon delivery, as defined in the general terms and conditions and in compliance with generally accepted incoterms. Per- formance obligations in contracts with customers have a duration of one year or less. Warranty conditions solely provide a customer with assurance that the related product complies with agreed-upon specifications. Consequently, the accounting for the warranty is in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets. Payment terms are adapted to the local market conditions. For the major part of the revenue recognition payment terms of 1 to 60 days are applied. Belimo develops, produces and distributes actuator solutions, valve systems and sensors for heating, ventilation and air conditioning (HVAC) systems. All products are made from comparable materials and manufactured using similar processes. The Group has four reportable operating segments which constitute its strategic divisions. With a view to maintaining a market presence in close proximity to its customers, the three geographical strategic Group divisions “Europe,” “Americas” and “Asia Pacific” are run by regional managers. The organization of the strategic Group division “Shared Services” is subdivided and managed centrally as a cost center by the Swiss company. No sales are therefore allocated to this segment. The activities of the reportable segments are as follows: Europe, Americas, Asia Pacific. Distribution and sale of Belimo products in the respective market region. Shared Services. Research and development activities, production, logistics, cus- tomizing, the functions finance and administration, strategy and brand manage- ment as well as the expenses for the Group Executive Committee and the Board of Directors. The performance of the geographic segments is measured using the cost-sales ratio (operating expenses, depreciation and amortization as a percentage of sales). Material expenses cannot be reliably allocated to the segments due to the Group’s principal structure. As a result of the group-wide application of a principal structure, the central production and sales company in Switzerland is the main risk carrier. The opportunities and risks of the sales companies are limited to their local market risk. With regard to segment assets, only trade receivables, property, plant and equip- ment as well as intangible assets are allocated. The liabilities are only reported in full in the internal financial reporting and are not allocated to the reportable seg- ments. Belimo Annual Report 2020 108

Notes to the Consolidated Financial Statements Net sales growth by market regions was as follows: 2020 Growth in local currencies Net Sales % 1) Growth in CHF 49% 38% 13% 100% – 2.0% – 7.0% – 6.6% – 4.5% 1.8% 328 777 – 1.8% 272 849 – 1.1% 91 054 0.0% 692 680 2019 Growth in CHF Growth in local currencies 3.6% 12.3% 10.7% 7.8% 6.8% 11.0% 12.7% 9.2% % 1) 48% 39% 13% 100% in CHF 1 000 Europe Americas Asia Pacific Total Net Sales 322 285 253 875 85 067 661 226 1) Contribution to total net sales Overall, movements in exchange rates had an effect of – 4.5 percentage points on net sales (previous year – 1.4 percentage points). Around 34 percent of net sales were denominated in US dollar, 30 percent in euro, 10 percent in Swiss franc and 26 percent in other currencies (previous year 36 percent in US dollar, 29 percent in euro, 10 percent in Swiss franc and 25 percent in other currencies). The net sales by applications were as follows: 2020 Growth in local currencies Net Sales % 1) Growth in CHF 56% 44% 100% – 4.4% – 4.7% – 4.5% 0.0% 385 480 – 0.1% 307 200 0.0% 692 680 2019 Growth in CHF Growth in local currencies 5.5% 7.1% 10.9% 11.9% % 1) 56% 44% 100% 7.8% 9.2% in CHF 1 000 Air Water Total Net Sales 368 415 292 812 661 226 1) Contribution to total net sales The following table shows information on geographic regions: in CHF 1 000 Germany Central Eastern Europe France Italy Switzerland Others Europe USA Canada Others Americas China Others Asia Pacific Total Net sales to third parties 2020 2019 Property, plant and equipment, intangible assets December 31, 2020 December 31, 2019 69 005 49 333 21 060 20 853 20 770 141 265 322 285 69 781 51 197 22 369 22 877 21 246 141 308 328 777 199 804 215 818 45 785 8 287 46 887 10 143 253 875 272 849 44 913 40 154 85 067 44 575 46 479 91 054 14 259 12 964 366 837 1 513 116 184 8 606 141 766 48 552 3 795 133 52 479 3 041 6 954 9 996 477 966 1 181 112 815 10 180 138 582 54 366 521 250 55 137 3 785 6 590 10 375 661 226 692 680 204 241 204 094 Belimo Annual Report 2020 110

Notes to the Consolidated Financial Statements During the reporting period, employees subscribed to 498 of restricted shares. The market price of the BELIMO Holding AG share at the purchase date was CHF 7 710 and the average fair value of the share-based payments granted was CHF 2 313. Personnel expenses (including fees) recognized for share-based payments during the year amounted to CHF 1.2 million and the employee contribution amounted to CHF 2.7 million. The employee contribution settled through salary deductions amounted to CHF 2.1 million and is treated in the cash flow statement as non-cash transaction (deferred compensation share-based payments). Other personnel expenses comprise incidental costs of staff recruitment, training and development as well as external staff costs. In the reporting period, Belimo received government subsidies in form of wage com- pensation, reduction of social security contributions and defined contribution ex- penses in the amount of CHF 1.2 million (previous year none) due to the COVID-19 pandemic. 5 Other Operating Income/Expenses in CHF 1 000 Own work capitalized Other income Total other operating income in CHF 1 000 Travel and representation Rental and maintenance Consulting Marketing IT External research and development Miscellaneous expenses Total other operating expenses 2020 2019 430 646 1 076 2020 – 4 212 – 6 016 – 10 196 – 6 054 – 8 493 – 14 301 – 15 081 – 64 352 558 343 901 2019 restated – 10 251 – 5 855 – 9 032 – 8 417 – 8 430 – 15 890 – 14 333 – 72 208 Total other operating income/expenses – 63 276 – 71 307 Research and development costs of CHF 53.8 million (previous year CHF 50.7 mil- lion) are included mainly in personnel and in external research and development expenses. Thereof, CHF 0.4 million (previous year CHF 0.6 million) were capitalized. Miscellaneous expenses include freight expenses, packaging material, warranty ex- penses, insurance as well as changes in allowances for doubtful trade receivables. In the reporting period, the definition of external research and development ex- penses has been re-assessed. As a consequence, certain positions within this cat- egory are now presented under rental and maintenance as well as miscellaneous expenses. Comparative figures have been adjusted accordingly. Belimo Annual Report 2020 112

Notes to the Consolidated Financial Statements Income tax expenses consist of the following: in CHF 1 000 Income taxes relating to current year Adjustments from previous years Current income taxes Deferred taxes Income tax recognized in CHF 1 000 Income before taxes Expected tax expenses Non-deductible expenses Tax-exempt income Adjustments from previous years Non-reclaimable withholding taxes Effect of companies with mixed tax rates Change in tax rate Other Income tax recognized applicable tax rate effective tax rate 2020 2019 – 15 065 – 503 – 15 568 1 421 – 14 148 – 20 708 394 – 20 314 21 634 1 320 2020 2019 100 788 119 783 – 20 076 19.9% – 952 7 416 – 503 – 376 – 699 1 159 – 116 – 14 148 14.0% – 19 578 16.3% – 434 26 938 394 – 933 – 371 – 4 622 – 73 1 320 – 1.1% On January 1, 2020, the Swiss federal law on the tax reform and old-age and survi- vors’ insurance (AHV) financing (TRAF) entered into force. Belimo used to benefit from tax regulations that have been abolished by TRAF. To reduce disadvantages the Canton of Zurich, where Belimo is headquartered, introduced certain provisions in the cantonal tax laws (e.g. patent box, additional R&D deductions) including tran- sitional measures (step-up mechanism or dual rate approach). At Belimo, these transitional measures will compensate the cash effects of the entry costs into the patent box introduced by TRAF in the medium-term. In the financial year 2019, the tax reform impacted income taxes positively by CHF 22.1 million, without affecting cash flow (effects included in line items tax- exempt in- come and change in tax rate). Meanwhile, in the balance sheet deferred taxes on intangible assets of CHF 26.8 million were recognized. From financial year 2020 onwards, these tax assets are amortized, thus increasing deferred tax expenses. As Belimo operates in several jurisdictions the applicable tax rate is computed as the weighted average of the applicable tax rate per jurisdiction. Based on the differ- ent treatment of the previous tax provisions and the measures introduced by TRAF under IFRS, the applicable tax rate increases by 3.6 percentage points in the finan- cial year 2020. In all material aspects, the change in applicable tax rate is explained by the Swiss tax reform. While the tax benefits valid until December 31, 2019 re- duced the applicable tax rate, the measures introduced by TRAF are presented as reconciling items in the line tax-exempt income of the tax rate reconciliation. There have been no changes in the structure of Belimo Group impacting the applicable tax rate. Belimo Annual Report 2020 114

Notes to the Consolidated Financial Statements No deferred income tax assets have been recognized for losses carried forward in the amount of CHF 1.4 million (previous year none), thereof CHF 0.6 million expiring within 5 years, CHF 0.6 million after 5 years and CHF 0.2 million with no expiry. In addition, no deferred income tax assets have been recognized from deductible tem- porary differences in the amount of CHF 0.5 million (previous year none). 8 Shareholders’ Equity and Earnings per Share Shares are a component of equity, as they are not redeemable and there is no divi- dend guarantee. Treasury shares are recorded as a deduction from equity. Capital reserves correspond to premiums from capital increases and the gains or losses from treasury share sales as well as from share-based payment awards. Currency translation adjustments contain the accumulated foreign exchange differences arising from the translation of the financial statements of foreign Group companies and intercompany loans which form part of a net investment in a foreign operation. Retained earnings include the remeasurement of the post-employment benefits and their tax effect, as well as of share-based payment transactions and accumulat- ed retained earnings of prior periods. Net income attributable to shareholders of BELIMO Holding AG Average outstanding shares Dividend per registered share 1) Total dividend 1) Earnings per share 1) 2020: Proposed by the Board of Directors 2020 2019 in CHF 1 000 Number in CHF in CHF 1 000 in CHF 86 715 614 924 150 92 250 141.02 121 144 614 943 150 92 250 197.00 The average number of outstanding shares is calculated based on the number of shares issued, less the average number of treasury shares held. Share Capital Par value per share Outstanding shares Treasury shares Total registered shares December 31, 2020 December 31, 2019 in CHF Number Number Number 1.00 614 971 29 615 000 1.00 614 943 57 615 000 The share capital of BELIMO Holding AG consists of one class of voting rights. Treasury Shares Number of shares As at January 1 Purchases of treasury shares Treasury shares awarded for share-based payments As at December 31 2020 2019 57 470 – 498 29 57 – – 57 Belimo Annual Report 2020 116

Notes to the Consolidated Financial Statements Trade receivables by market region were as follows: in CHF 1 000 Europe Americas Asia Pacific Total December 31, 2020 December 31, 2019 34 311 31 412 15 546 81 269 34 856 34 543 19 240 88 638 There were no cluster risks. The receivables in the Americas related mainly to the United States. Movements in allowance for doubtful trade receivables were as follows: in CHF 1 000 As at January 1 Increase Utilization Reversals Translation differences As at December 31 2020 2019 – 2 175 – 182 227 219 148 – 1 763 – 2 385 – 266 194 219 63 – 2 175 The aging and allowance of trade receivables were as follows: in CHF 1 000 Not due Overdue 1 to 30 days Overdue 31 to 60 days Overdue 61 to 180 days December 31, 2020 December 31, 2019 Default rate Gross Allowance Gross Allowance 0.5% 3.0% 4.9% 10.0% 65 252 11 794 3 366 1 898 – 335 – 350 – 166 – 190 67 944 15 028 4 662 2 272 – 357 – 451 – 233 – 227 Total trade receivables measured using the provision matrix 82 310 – 1 041 89 906 – 1 268 Individual allowances 100.0% Total 722 83 031 – 722 – 1 763 907 90 813 – 907 – 2 175 11 Inventories Inventories are measured at the lower of cost and net realizable value. The costs comprise all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. The net realizable value is the expected average selling price less the expected costs of completion and the estimated costs necessary to make the sale. Purchased inventories are measured at acquisition cost, internally generated prod- ucts at cost of production. These latter costs include direct material and production costs and directly attributable overhead expenses. The overhead production expenses are calculated on the basis of normal capacity of production facilities. Belimo Annual Report 2020 118

Notes to the Consolidated Financial Statements 13 Property, Plant and Equipment Owned Property, Plant and Equipment Items of property, plant and equipment are measured at cost less accumulated de- preciation and any accumulated impairment losses. Significant parts of an item of property, plant and equipment with different useful lives are accounted for sepa- rately. Subsequent expenditure is capitalized if it is probable that the future eco- nomic benefits associated with the expenditure will flow to the Group. Expenditure for maintenance and repair is recognized in the income statement. Items of proper- ty, plant and equipment are depreciated on a straight-line basis over their estimated useful lives, or the shorter lease term for leasehold improvements. The estimated useful lives applied by the Group are as follows: Land, buildings Tools, machinery Furniture, fixtures and movable equipment Land Buildings (components with different useful lives) Transportation equipment, tools and machinery, workshop and warehouse facilities Tools at suppliers and testing equipment Furniture and fixtures Leasehold improvements Motor vehicles, office machinery and IT equipment Unlimited 10 – 60 years 5 – 9 years 3 – 5 years 2 – 8 years 5 – 10 years 2 – 5 years The expected residual value, if not immaterial, is reviewed annually. If there is any impairment indication at the reporting date, the recoverable amount is estimated. The recoverable amount is the higher of the asset’s fair value less costs of disposal and its value in use. To determine the value in use, the estimated future cash flows are discounted using a pre-tax discount rate that reflects the risks specific to the asset. An impairment loss is recognized in the income statement, if the carrying amount of an asset or of the cash-generating unit to which the asset belongs exceeds the recoverable amount. Leased Property, Plant and Equipment Belimo assesses whether a contract is or contains a lease at inception of the con- tract. The Group recognizes a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are measured at cost including the amount of the initial meas- urement of the lease liability, any lease payments made at or before the commence- ment date, less any incentives received, any initial direct costs, and restoration costs. Lease liabilities are initially measured at the present value of the lease pay- ments, discounted by using the incremental borrowing rate. The incremental borrowing rate used for the measurement of the right-of-use asset and the lease liability have been defined based on a base rate depending on the currency and maturity of the underlying lease contract as well as a risk premium considering the company combined with asset specific risks. In accordance with IFRS 16, Belimo does not recognize short-term leases with a lease period of 12 months or less and leases of low-value assets on the balance sheet. Belimo Annual Report 2020 120

Notes to the Consolidated Financial Statements (previous year CHF 4.6 million) and CHF 1.7 million deferred considerations for in- vestments (previous year CHF 0.3 million). The impairment assessment in the reporting period and previous year showed no need for an adjustment. The sale of property, plant and equipment resul ted in a gain of CHF 0.2 million (previous year gain of CHF 0.2 million). Commitments for investments in property, plant and equipment amounted to CHF 11.9 million (previous year CHF 4.3 million). Additional Disclosures Leased Property, Plant and Equipment 2020 Furniture, fixtures, movable equipment Land, buildings Total Land, buildings Furniture, fixtures, movable equipment 2019 Total – – – 11 758 1 133 12 891 2 396 – 3 345 761 – 702 3 157 – 4 048 6 642 – 3 263 568 – 652 7 211 – 3 915 16 – 16 – – – 12 841 983 13 825 14 572 1 008 15 579 in CHF 1 000 Impact from changes of accounting policies as at January 1 Additions to the right-of-use assets Depreciation Change in scope of consolidation Net carrying amount as at December 31 The total cash outflow for lease payments was as follows: in CHF 1 000 Repayment of lease liabilities Interest paid for lease liabilities Payments for short-term leases and for leases of low-value assets Total 2020 2019 – 3 713 – 540 – 577 – 4 830 – 3 576 – 586 – 418 – 4 580 The portfolio of short-term leases and leases of low-value assets to which Belimo is committed at the end of the reporting period is similar to the portfolio of the re- porting period. The contractual maturities of the lease liabilities are disclosed in note 20.3. Belimo Annual Report 2020 122

Notes to the Consolidated Financial Statements in CHF 1 000 Costs As at January 1, 2019 Additions Disposals Reclassifications Translation differences As at December 31, 2019 Additions Disposals Reclassifications Change in scope of consolidation Translation differences As at December 31, 2020 Accumulated amortization As at January 1, 2019 Amortization Disposals Translation differences As at December 31, 2019 Amortization Disposals Translation differences As at December 31, 2020 Carrying amounts As at January 1, 2019 As at December 31, 2019 As at December 31, 2020 Software and other intangible assets Customer relation- ships Internally generated intangible assets Patents, licenses and technology Advance payments Total 26 237 2 761 – 801 131 – 42 28 287 3 651 – 314 1 642 – – 301 32 964 – 21 219 – 3 474 801 38 – 23 855 – 3 676 314 263 – 26 954 13 440 – – 317 – – 606 12 517 – – 6 619 – 2 459 91 8 448 – 7 129 – 1 600 317 303 – 8 108 – 1 146 6 619 – 16 – 2 651 5 243 558 – 341 – – 5 460 430 – 1 067 – – – 4 824 – 2 063 – 1 026 341 – – 2 748 – 900 1 067 – – 2 582 – – – – – – – – – 991 – 10 981 – – – – – – 8 – – – 8 383 1 375 – – 131 – 2 1 625 2 569 – – 1 642 – – 3 2 549 45 304 4 694 – 1 459 – – 649 47 889 6 649 – 8 000 – 3 450 – 223 49 766 – 30 411 – 6 100 1 459 341 – 34 711 – 5 730 8 000 246 – 32 195 5 018 4 432 6 010 6 311 4 409 5 796 3 180 2 712 2 242 – – 973 383 1 625 2 549 14 893 13 178 17 571 CHF 0.3 million (previous year CHF 0.6 million) of internally generated intangible assets (capitalized development costs) are not yet available for use and have not been amortized yet. The additions of CHF 6.6 million (previous year CHF 4.7 million) consisted of CHF 6.2 million cash effective capital expenditures (previous year CHF 4.7 million) and CHF 0.4 million deferred considerations for investments (previ- ous year none). The impairment assessment in the reporting period and previous year showed no need for an adjustment. Commitments for investments in intangible assets amounted to CHF 2.3 million (previous year CHF 4.2 million). Belimo Annual Report 2020 124

Notes to the Consolidated Financial Statements 17 Financial Liabilities Other financial liabilities are initially recognized at fair value and subsequently meas- ured at amortized costs using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Lease liabilities are initially measured at the present value of the lease payments. Management judgement is required to determine the lease liabilities. Further details about lease accounting is described in note 13 Property, Plant and Equipment. The changes in liabilities arising from financing activities are as follows: in CHF 1 000 As at January 1 Proceeds from loans Interest paid Repayments Cash flow used in financing activities Payments for investments in property, plant and equipment from previous years Payments of consideration for acquisitions Cash flow used in investing activities Impact from changes in accounting policies as at January 1 Change in scope of consolidation Contingent and deferred consideration for acquisitions Non-cash effective movements Deferred payments for investments in property, plant and equipment Interest expenses Translation differences Non-cash effective movements Lease liabilities Other financial liabilities 13 442 – – 540 – 3 713 – 4 253 – – – – 16 – 3 100 – 540 – 562 3 096 272 1 285 – – 1 285 – 203 – 105 – 308 – – 552 – 148 – – 2 406 2020 Total 13 713 1 285 – 540 – 3 713 – 2 968 – 203 – 105 – 308 – 16 552 2 952 – 540 – 560 3 502 Lease liabilities Other financial liabilities – – – 586 – 3 576 – 4 162 1 463 – – 89 – – 89 2019 Total 1 463 – – 675 – 3 576 – 4 251 – – – – – 1 399 – 1 399 – – 1 399 – 1 399 12 891 – – 4 394 – 586 – 267 17 604 – – – – 279 25 – 7 296 12 891 – – 4 394 279 611 – 274 17 900 As at December 31 12 284 1 656 13 939 13 442 272 13 713 of which current financial liabilities of which non-current financial liabilities 4 122 8 162 443 1 213 4 565 9 375 3 825 9 616 190 81 4 016 9 698 Interest paid not related to financial liabilities and therefore not included in the table above amounted to CHF 0.4 million (previous year CHF 0.2 million). In 2020, Belimo received a loan in the amount of CHF 1.3 million that has a below - market rate of interest. The benefit was measured as the difference between the present value of all future cash payments discounted using the prevailing market rates of interest for a similar instrument with a similar credit rating and the pro- ceeds received. The difference of CHF 0.1 million, disclosed above as non-cash effective movement, was recognized in other financial income. Belimo Annual Report 2020 126

Notes to the Consolidated Financial Statements 19 Non-current Employee Benefits The present value of the defined benefit obligations and the fair value of the plan assets are determined annually by independent actuaries for each plan and are rec- ognized as a net defined benefit asset/liability. The present values of the defined benefit obligations are calculated using the projected unit credit method. The dis- count rate is based on the interest rate of high-quality corporate bonds with terms approximating to the terms of the related defined benefit obligations Defined benefit expenses recognized in the income statement include current ser- vice costs (service costs in the reporting period) and past service costs (gains/ losses from plan amendments and curtailments). The net interest result (multiplica- tion of the net defined benefit asset/liability with the discount rate) is recognized in the financial result. Remeasurement of the net defined benefit asset/liability which comprise actuarial gains and losses on the defined benefit obligations and the return on plan assets (excluding amounts included in the net interest result) are recognized in other comprehensive income and are not reclassified subsequently to the income statement. Asset surpluses are considered only to the extent of possible future reimbursement or reduction of contributions in accordance with IFRIC 14. The calculation of the net defined benefit asset/liability is based on actuarial as- sumptions. These can differ from the actual future results. The discount rate and the life expectancy are material assumptions for the actuarial calculation. in CHF 1 000 Post-employment benefits Non-current employee benefit assets Post-employment benefits Other long-term employee benefits Non-current employee benefit liabilities December 31, 2020 December 31, 2019 2 550 2 550 – 3 874 3 874 9 003 9 003 581 3 369 3 950 Other long-term employee benefits mainly include jubilee provisions. 19.1 Post-Employment Benefits In addition to state social security schemes, some Group companies offer ad dition- al post-employment benefit plans, covering approximately half of all employees. Under some of these post-employment benefit plans, employees must make contri- butions, which are supplemented by corresponding employer contributions. The funding is made in accordance with local legal and fiscal requirements. Employees receive benefits in the event of death, disability or retirement. The unfunded defined benefit plan in Germany has been terminated in the reporting year. The only signifi- cant post-employment defined benefit plan exists in Switzerland. Post-Employment Benefit Plan of BELIMO Automation AG Swiss pension schemes are governed by the Swiss Federal Law on Occupational Retirement, Survivors’ and Disability Pension Plans (BVG) and their implementing regulations. The BVG defines the minimum insured salary, the minimum retirement credits, as well as the interest rate applied to these credits and the conversion rate. On the basis of these legal provisions and the plan structure, the employer is ex- posed to actuarial risks such as investment risk, interest rate risk and the risk of disability, as well as the risk of longevity. The employee and employer contributions are defined by the board of trustees of the foundation. In the case of a statutory Belimo Annual Report 2020 128

Notes to the Consolidated Financial Statements In 2020, the return on plan assets (including interest income) of CHF 16.5 million (previous year CHF 35.4 million) resulted in a surplus of CHF 2.6 million for the Swiss pension plan recognized as non-current asset as at December 31, 2020 (pre- vious year CHF 9.0 million). The asset ceiling, being the present value of any eco- nomic benefits available in the form of reductions in future contributions to the Swiss pension plan, exceeded the surplus. Consequently, the surplus was fully rec- ognized as non-current asset as at December 31, 2020. The movements in the net defined benefit asset/liability were as follows: in CHF 1 000 As at January 1 Movements included in the income statement Current service costs Past service costs Interest result (net) Total movements included in the income statement Movements included in other comprehensive income Change in demographic assumptions Change in financial assumptions Experience adjustments Return on plan assets (excluding interest income) Total remeasurements included in other comprehensive income Translation differences Total movements included in other comprehensive income Other movements Employer contributions Employee contributions Benefits paid from plan assets Benefits paid by the employer Total other movements Defined benefit obligations Fair value of plan assets Net defined benefit asset/(liability) Defined benefit obligations Fair value of plan assets Net defined benefit asset/(liability) 2020 2019 – 286 436 294 859 8 422 – 256 251 248 993 – 7 258 – 10 622 – 900 – 857 – 10 622 – 900 30 – 9 380 – – 2 396 888 – 9 380 – – 4 2 392 – 12 380 888 – 11 492 – 11 776 2 392 – 9 385 – 2 901 – 8 444 – 8 000 – 2 901 – 8 444 – 8 000 – – 19 952 3 250 – – 19 952 3 250 15 634 15 634 33 054 33 054 – 19 345 15 634 – 3 711 – 16 702 33 054 16 352 – – 24 24 – 19 345 15 634 – 3 711 – 16 678 33 054 16 376 – 6 970 – 114 25 – 7 059 9 307 6 970 114 16 391 9 307 25 9 332 – 6 377 4 572 74 – 1 730 8 615 6 377 – 4 572 10 420 8 615 74 8 689 As at December 31 – 325 220 327 770 2 550 – 286 436 294 859 8 422 The weighted average duration of the defined benefit obligations is 17.6 years (pre- vious year 20.7 years). The expected employer contributions for 2021 amount to CHF 10.2 million. Belimo Annual Report 2020 130

Notes to the Consolidated Financial Statements 20 Financial Risk Management 20.1 General Due to the nature of its activities, Belimo is exposed to a number of financial risks: credit risk, market risk (foreign currency and interest rate risk) and liquidity risk. Financial risk management is based on guidelines issued by the Board of Directors concerning the objectives, principles, tasks and responsibilities of financial man- agement. The Board of Directors has assigned the Group Treasury to monitor finan- cial risks. Group Treasury regularly reports to the Group Executive Committee and the Board of Directors on existing risks. The risk management policies are established to identify and to analyze the risks to which the Group is exposed, to define appropriate limits, to establish controls and to monitor the risks and compliance with limits. Risk management policies and pro- cesses are reviewed regularly to reflect changes in market conditions and in the Group’s activities. 20.2 Credit Risk Credit risk is the risk of financial loss if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The credit risk of Belimo mainly arises from trade receivables and cash and cash equivalents. Belimo invests its cash and cash equivalents worldwide in deposit accounts held mainly with major, creditworthy financial institutions headquartered in Switzerland, Germany, and the United Kingdom. These deposits generally have terms of less than three months. Transactions involving derivative financial instruments are trad- ed with a limited number of major financial institutions. The credit risk from trade receivables is limited, since the Group’s customer base is broad and spread over a variety of geographical areas. Credit risk is mainly influ- enced by the specific characteristics of each individual customer. The risk assess- ment includes an analysis of the creditworthiness, taking into account a variety of factors such as credit ratings or payment history. Credit limits are set according to regional aspects. Certain new customers are only supplied against payment in ad- vance. The maximum default risk is the carrying amount of the individual assets as of the reporting date (see table in note 20.5 Categories of Financial Instruments). There are no guarantees or similar obligations that could lead to an increase in the risk beyond the carrying amounts. 20.3 Liquidity Risk Liquidity risk is the risk that Belimo will not be able to meet its financial obligations as they fall due. It is the aim of Belimo to have sufficient liquidity and unused credit lines available at all times so that it can meet its financial obligations when due, both under normal and stressed conditions. Liquidity is centrally managed and con- trolled by Group Treasury. The subsidiaries are adequately financed by intercompa- ny loans to meet their ongoing commitments. Belimo can draw down loans at fixed or floating rates for various terms, based on its short- and medium-term liquidity needs. Belimo aims to preserve maximum flexibil- ity in its liquidity planning through flexible use of the general credit lines and by staggering the maturity dates of the individual amounts. Belimo Annual Report 2020 132

Notes to the Consolidated Financial Statements The following table shows the main foreign exchange risk exposure for financial instruments whose currency differ from the functional currency of the Group com- pany holding them. in CHF 1 000 CAD CHF EUR GBP PLN USD Other Total December 31, 2020 December 31, 2019, restated Assets Liabilities Net Assets Liabilities Net 5 125 2 386 22 182 4 093 3 927 11 868 11 223 60 803 – – 13 737 – 8 090 – 11 – – 6 340 – 923 – 29 101 5 125 – 11 351 14 092 4 081 3 927 5 528 10 635 2 728 20 336 5 965 8 728 25 367 10 300 14 335 31 702 88 093 – 3 – 15 903 – 3 989 – 163 – – 5 523 – 886 – 26 467 10 632 – 13 175 16 347 5 801 8 728 19 844 13 448 61 625 The currency-related sensitivity of these currencies is shown in the following table: in CHF 1 000 CAD CHF EUR GBP PLN USD Other Total +/- 5% -/+ 5% +/- 5% +/- 5% +/- 5% +/- 5% +/- 5% December 31, 2020 December 31, 2019, restated Exchange Exchange gain loss gain loss 36 568 515 144 66 763 439 2 530 – 36 – 568 – 515 – 144 – 66 – 763 – 439 – 2 530 385 659 817 290 436 701 672 3 961 – 417 – 659 – 817 – 290 – 436 – 219 – 672 – 3 511 This analysis assumes that all other variables are held constant and takes into account hedging transactions. In the previous year the same assumptions were applied. Belimo decided to disclose the exposure and sensitivity for GBP. Compara- tive figures have been adjusted accordingly. At the reporting date, the following foreign currency hedging instruments were held, whereas foreign currency forward contracts selling foreign currencies are disclosed as positive figures and contracts buying foreign currencies as negative figures: Belimo Annual Report 2020 134

Notes to the Consolidated Financial Statements 20.5 Categories of Financial Instruments The following tables summarize all financial instruments classified by categories according to IFRS 9: in CHF 1 000 Financial assets held to collect measured at amortized cost Cash and cash equivalents Trade receivables Other receivables Financial assets Total Financial assets measured at fair value through OCI Investments 1) Total Financial assets measured at fair value through profit or loss Fair value of derivative financial instruments 2) Total Financial liabilities measured at amortized cost Trade payables Current financial liabilities Non-current financial liabilities Other liabilities and accrued expenses qualifying as financial instruments Total Carrying amounts December 31, 2020 December 31, 2019 164 942 81 269 335 1 942 248 489 172 563 88 638 255 1 885 263 341 919 919 78 78 18 831 4 565 9 375 20 245 53 015 – – 257 257 15 660 4 016 9 698 17 689 47 063 Financial liabilities measured at fair value through profit or loss Fair value of derivative financial instruments 2) Total 75 75 17 17 1) Measured at fair values that are calculated based on factors that are not observable market data (level 3). 2) Measured at fair values that are calculated based on observable market data (level 2). For financial assets and financial liabilities not measured at fair value in the table above the carrying amount is a reasonable approximation of the fair value. Fair values are allocated to one of the following three hierarchical levels: Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2: inputs other than level 1 quoted prices that are directly or indirectly observable Level 3: factors that are not based on observable market data The fair value of derivatives financial instruments is determined on the basis of in- put factors observed directly or indirectly on the market (level 2). The fair value of these instruments is based on forward exchange rates, the positive fair values are included in other assets, the negative fair values in other liabilities. The changes in fair values recognized in the income statement are included in the financial result (see note 6 Financial Result). The foreign currency hedging instruments as at December 31, 2020, mature in 56 days or less (previous year 44 days). The unquoted equity instrument is allocated to level 3 and relates to an immaterial investment in an innovative start-up in the HVAC sector. The Group designated the investment as investment at fair value through OCI because this equity instrument represents an investment that the Group intends to hold for a long term for strategic purposes. Belimo Annual Report 2020 136

Notes to the Consolidated Financial Statements 23 Subsidiaries BELIMO Holding AG held the following subsidiaries: Company, place of incorporation Country Currency in 1000 Activities Share Capital Group interest December 31, 2020 December 31, 2019 Europe BELIMO Automation AG, Hinwil BELIMO InnoVision AG, Hinwil BELIMO Stellantriebe Vertriebs GmbH, Stuttgart BELIMO Automation Deutschland GmbH, Großröhrsdorf BELIMO Automation Handelsgesellschaft m.b.H., Vienna BELIMO Silowniki S.A., Warsaw BELIMO Servomotoren B.V., Vaassen BELIMO Automation UK Ltd., Shepperton BELIMO Automation Norge A/S, Oslo BELIMO Finland Oy, Helsinki BELIMO AB, Nacka BELIMO SARL, Courtry BELIMO Ibérica de Servomotores S.A., Madrid BELIMO Italia S.r.l., Grassobbio BEREVA S.r.l., Ora 1) BELIMO Automation FZE, Dubai BELIMO Turkey Otomasyon A.Ş., Istanbul Americas BELIMO Aircontrols (USA), Inc., Danbury BELIMO Customization (USA), Inc., Danbury 2) BELIMO Technology (USA), Inc., Danbury 2) BELIMO Aircontrols (CAN), Inc., Mississauga BELIMO Sensors Inc., Dorval 3) BELIMO Brasil – Comércio de Automação Ltda., São Paulo 4) Asia Pacific BELIMO Actuators Ltd., Hong Kong BELIMO Actuators Pty. Ltd., Mulgrave, Melbourne BELIMO Automation (Shanghai) Co., Ltd., Shanghai BELIMO Actuators (India) Pvt Ltd., Mumbai 5) BELIMO Automation Malaysia SDN. BHD., Kuala Lumpur 6) 1) Investment held by BELIMO InnoVision 2) Investment held by BELIMO Aircontrols (USA) 3) Incorporated on November 25, 2020 4) Capital increase of BRL 3 654 000 on December 24, 2020 5) Capital increase of INR 477 110 on November 24, 2020 6) Capital increase of MYR 3 400 000 on November 12, 2020 H = Holding company P = Production D = Distribution R&D = Research and development I = Inactive CH CH DE DE AT PL NL GB NO FI SE FR ES IT IT AE TR US US US CA CA BR HK AU CN IN MY CHF CHF EUR EUR EUR PLN EUR GBP NOK EUR SEK EUR EUR EUR EUR USD TRY USD USD USD CAD CAD BRL HKD AUD CNY INR MYR 500 P, D, R&D 1 000 205 H D 4 050 P, R&D 36 500 18 0.1 501 100 1 000 80 301 47 500 273 1 000 200 45 30 95 D D D D D D D D D D D, R&D D D D, H P R&D D 2 025 P, D, R&D 10 372 10 10 D D D 20 320 P, D, R&D 1 574 5 300 D D 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 83% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 83% 100% 100% 100% 100% 100% 100% – 100% 100% 100% 100% 100% 100% Belimo Annual Report 2020 138

Report on the Audit of the Consolidated Financial Statements Opinion We have audited the consolidated financial statements of BELIMO Holding AG and its subsidiaries (the Group), which comprise the consolidated balance sheet as at 31 December 2020 and the consolidated income state- ment, consolidated statement of comprehensive income, consolidated statement of changes in equity and con- solidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies. In our opinion the consolidated financial statements (pages 100 to 139) give a true and fair view of the consoli- dated financial position of the Group as at 31 December 2020, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRS) and comply with Swiss law. Basis for Opinion We conducted our audit in accordance with Swiss law, International Standards on Auditing (ISAs) and Swiss Auditing Standards. Our responsibilities under those provisions and standards are further described in the Audi- tor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are inde- pendent of the Group in accordance with the provisions of Swiss law and the requirements of the Swiss audit profession, as well as the IESBA Code of Ethics for Professional Accountants, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opin- ion. Key Audit Matters Inventory valuation Revenue recognition Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion there- on, and we do not provide a separate opinion on these matters. Belimo Annual Report 2020 140

Other Information in the Annual Report The Board of Directors is responsible for the other information in the Annual Report. The other information com- prises all information included in the Annual Report, but does not include the consolidated financial statements, the stand-alone financial statements of the company, the remuneration report and our auditor’s reports thereon. Our opinion on the consolidated financial statements does not cover the other information in the Annual Report and we do not express any form of assurance conclusion thereon. In connection with our audit of the consolidated financial statements, our responsibility is to read the other infor- mation in the Annual Report and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibility of the Board of Directors for the Consolidated Financial Statements The Board of Directors is responsible for the preparation of the consolidated financial statements that give a true and fair view in accordance with IFRS and the provisions of Swiss law, and for such internal control as the Board of Directors determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Swiss law, ISAs and Swiss Auditing Standards will always detect a material mis- statement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. As part of an audit in accordance with Swiss law, ISAs and Swiss Auditing Standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: — Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material mis - statement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forg- ery, intentional omissions, misrepresentations, or the override of internal control. — Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. — Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made. — Conclude on the appropriateness of the Board of Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclu- sions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. Belimo Annual Report 2020 142

Financial Statements of BELIMO Holding AG Income Statement in CHF 1 000 Dividend income – Group companies License fees – Group companies Other financial income Revenue Personnel expenses Other operating expenses Financial expenses Impairment loss Direct taxes Expenses Net income Note 2020 2019 2.1 2.1 84 373 9 553 3 655 97 582 – 1 125 – 1 522 – 5 512 – 2 163 – 1 029 – 11 351 75 248 8 149 4 709 88 105 – 926 – 812 – 947 – 555 – 1 450 – 4 691 86 231 83 414 Belimo Annual Report 2020 144

Notes to the Financial Statements 1 Accounting Policies General Information 1.1 The financial statements of BELIMO Holding AG, Hinwil (Switzerland), have been prepared in accordance with the provisions of commercial accounting as set out in the Swiss Code of Obligations. While the consolidated financial statements pro- vide information regarding the economic situation of the Group as a whole, the information contained in these financial statements refers solely to the parent company. These financial statements are presented in Swiss francs (CHF), rounded to the nearest thousand. Due to rounding, amounts presented throughout this report may not add up precisely to the totals provided. Non-current assets 1.2 Non-current assets include long-term loans and investments in group companies. Loans denominated in foreign currencies are translated at the rate at the reporting date, whereby unrealized losses are fully recognized, and unrealized gains are only recorded to the extent of previous losses. Investments in group companies are accounted for at acquisition cost less valua- tion allowances, as required. Treasury Shares 1.3 At the acquisition date, treasury shares are recognized at acquisition cost and de- ducted from shareholders’ equity. In case of a resale, the gain or loss is recognized in the income statement as financial income or financial expense. 1.4 Foregoing a Statement of Cash Flows and Additional Disclosures in the Notes As BELIMO Holding AG has prepared its consolidated financial statements in accord- ance with a recognized accounting standard (IFRS), it has decided to refrain from presenting additional information on interest-bearing liabilities and audit fees in the notes as well as a statement of cash flows in accordance with the law. 2 Information on Items in the Income Statement and Balance Sheet Other Financial Income and Financial Expenses 2.1 Other financial income mainly contains interest income on loans to Group com- panies and the gain on treasury shares awarded for share-based payments. In 2020, net foreign exchange losses of CHF 4.9 million were recognized as financial expenses (previous year loss of CHF 0.8 million). Other current Receivables and Liabilities – Group Companies 2.2 As at December 31, 2020, BELIMO Holding AG had a receivable towards BELIMO Automation AG of CHF 14.7 million (previous year other current liabilities of CHF 16.3 million). Belimo Annual Report 2020 146

Notes to the Financial Statements 3.3 Participation Rights of the Members of the Board of Directors and the Group Executive Committee The following table discloses the number of shares held by the members of the Board of Directors and the Group Executive Committee as well as their related parties: Number of shares Board of Directors Prof. Adrian Altenburger Patrick Burkhalter Sandra Emme Urban Linsi 1) Stefan Ranstrand 2) Dr. Martin Zwyssig Total Board of Directors Group Executive Committee Gary Economides Lukas Eigenmann James W. Furlong Peter Schmidlin 3) Louis Scheidegger Dr. Markus Schürch Lars van der Haegen Total Group Executive Committee December 31, 2020 December 31, 2019 50 3 565 20 8 010 – 25 11 670 17 193 76 – 48 12 89 435 50 3 565 20 8 010 – 25 11 670 – 175 60 403 32 – 70 740 1) Urban Linsi is a member of the registered shareholder group Linsi, which holds a total of 120 000 voting shares. 2) Joined the Board of Directors as of March 30, 2020 (see corporate governance, pages 42 to 53). 3) Resigned from the Group Executive Committee as of March 2020 (see corporate governance, pages 42 to 53). No shares or options were granted to the members of the Board of Directors and none of the members held conversion or option rights. In 2020, 95 shares (CHF 0.7 million) were issued to the members of the Group Execu- tive Committee based on the long-term incentive share plan introduced in the reporting year (see remuneration report, pages 20 to 25). Significant Shareholders 3.4 The following shareholders and shareholder groups owned more than five percent of the voting shares: The Capital Group Companies, Inc. 1) 1832 Asset Management L.P. 1) Group Linsi 1) Not above five percent at the corresponding reporting date. December 31, 2020 December 31, 2019 – 5.12% 19.53% 5.21% – 19.28% Events after the Reporting Date 3.5 On March 5, 2021, the Board of Directors of BELIMO Holding AG approved the pres- ent annual financial statements for release. As of this date, no material events after the reporting date have occurred. The annu- al financial statements are subject to approval by the shareholders of BELIMO Hold- ing AG in its Annual General Meeting to be held on March 29, 2021. Belimo Annual Report 2020 148

Report on the Audit of the Financial Statements Opinion We have audited the financial statements of BELIMO Holding AG, which comprise the balance sheet as at 31 December 2020, and the income statement for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion the financial statements (pages 144 to 148) for the year ended 31 December 2020 comply with Swiss law and the company’s articles of incorporation. Basis for Opinion We conducted our audit in accordance with Swiss law and Swiss Auditing Standards. Our responsibilities under those provisions and standards are further described in the Auditor’s Responsibilities for the Audit of the Finan- cial Statements section of our report. We are independent of the entity in accordance with the provisions of Swiss law and the requirements of the Swiss audit profession and we have fulfilled our other ethical responsibil- ities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Report on Key Audit Matters based on the circular 1/2015 of the Federal Audit Oversight Authority Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. We have determined that there are no key audit matters to com- municate in our report. Responsibility of the Board of Directors for the Financial Statements The Board of Directors is responsible for the preparation of the financial statements in accordance with the pro- visions of Swiss law and the company’s articles of incorporation, and for such internal control as the Board of Directors determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Board of Directors is responsible for assessing the entity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the entity or to cease opera- tions, or has no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Swiss law and Swiss Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggre- gate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with Swiss law and Swiss Auditing Standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: — Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is Belimo Annual Report 2020 150

Information for Investors Stock Market Information from 2016 to 2020 2020 2019 2018 2017 2016 Share capital Number of registered shares as at December 31 Average number of outstanding shares 615 000 614 924 615 000 614 943 615 000 614 834 615 000 614 691 615 000 614 493 Information per average outstanding share Earnings, in CHF Cash flow from operating activities, in CHF Operating income (EBIT), in CHF Shareholders' equity, in CHF Information per registered share Dividend, in CHF (as proposed by the Board of Directors for next year) Return on dividend as at December 31, in % Payout ratio, in % of net income attributable to Belimo shareholders Price-earnings ratio as at December 31 Stock market prices in CHF High Low Year-end Market capitalization in CHF million High Low Year-end In % of shareholders' equity as at December 31 Average daily trading volume In number of shares 141 204 176 796 150 2.0% 106.4% 54.5 8 090 4 675 7 680 4 975 2 875 4 723 965% 197 204 201 825 150 2.1% 76.1% 37.0 7 300 3 930 7 290 4 490 2 417 4 483 884% 140 185 179 711 100 2.5% 71.3% 28.1 4 995 3 750 3 940 3 072 2 306 2 423 554% 126 134 151 673 85 2.0% 67.5% 33.9 4 380 3 021 4 266 2 694 1 858 2 624 634% 114 147 142 600 75 2.4% 66.1% 27.1 3 408 2 221 3 078 2 096 1 366 1 893 513% 1 047 935 424 331 356 Alternative performance measures that are not defined or specified in IFRS, are described under the following link: www.belimo.com/financial-summary Belimo Annual Report 2020 152

Five-Year Financial Summary Five-Year Summary of the Belimo Group 2020 2019 2018 2017 2016 in CHF 1 000 (unless indicated otherwise) Income statement Net sales Operating income (EBITDA) in % of net sales Operating income (EBIT) in % of net sales Personnel expenses in % of net sales Research and development in % of net sales Operating expenses in % of net sales Depreciation and amortization in % of net sales Net income in % of net sales Cash flow Cash flow from operating activities in % of net sales Free cash flow in % of net sales Investments in property, plant and equipment and intangible assets Dividend distribution Balance sheet Total assets Cash and cash equivalents in % of total assets Current assets in % of total assets Net working capital in % of net sales Non-current assets in % of total assets Current liabilities in % of total assets Non-current liabilities in % of total assets Shareholders' equity in % of total assets Key figures Net sales year-on-year growth, in % Net sales in local currencies year-on-year growth, in % Return on equity (ROE), in % Return on invested capital (ROIC), in % Quick ratio, in % Days sales outstanding (DSO) Inventory period (DIO) Equity-to-fixed-assets ratio, in % Number of employees (FTEs, yearly average) Net sales per employee Actuators shipped, in million items 661 226 139 337 21.1% 108 065 16.3% 192 020 29.0% 53 772 8.1% 256 372 38.8% 31 272 4.7% 86 641 13.1% 692 680 154 224 22.3% 123 869 17.9% 188 263 27.2% 50 683 7.3% 260 471 37.6% 30 355 4.4% 121 103 17.5% 125 668 19.0% 93 274 14.1% 125 400 18.1% 83 852 12.1% 113 938 17.7% 94 261 14.7% 28 964 92 241 40 652 61 494 20 491 52 256 583 458 164 942 28.3% 361 316 61.9% 167 899 25.4% 222 142 38.1% 78 364 13.4% 15 831 2.7% 602 002 172 563 28.7% 374 897 62.3% 176 453 25.5% 227 105 37.7% 77 748 12.9% 16 910 2.8% 531 472 155 138 29.2% 348 281 65.5% 166 667 25.9% 183 191 34.5% 71 089 13.4% 23 140 4.4% 642 368 134 999 21.0% 109 839 17.1% 171 195 26.7% 47 248 7.4% 579 853 117 388 20.2% 92 621 16.0% 157 877 27.2% 44 423 7.7% 533 650 110 280 20.7% 86 964 16.3% 146 354 27.4% 37 721 7.1% 242 499 37.8% 224 952 38.8% 204 341 38.3% 25 160 3.9% 86 209 13.4% 24 767 4.3% 77 490 13.4% 82 318 14.2% 54 857 9.5% 24 919 46 092 491 886 113 178 23.0% 302 503 61.5% 161 610 27.9% 189 383 38.5% 63 481 12.9% 14 755 3.0% 23 315 4.4% 69 753 13.1% 90 282 16.9% 75 151 14.1% 15 796 39 937 451 869 103 670 22.9% 267 012 59.1% 138 240 25.9% 184 857 40.9% 53 536 11.8% 29 368 6.5% 489 263 83.9% 507 344 84.3% 437 243 82.3% 413 650 84.1% 368 965 81.7% – 4.5% 0.0% 17.4% 24.7% 7.8% 9.2% 25.6% 27.8% 10.8% 9.6% 20.3% 27.8% 8.7% 8.2% 19.8% 23.4% 8.2% 6.8% 19.8% 23.8% 320.6% 344.3% 347.6% 321.2% 342.1% 53.1 159 54.9 145 55.8 144 56.3 145 55.0 145 227.4% 230.8% 251.3% 226.2% 215.5% 1 824 363 6.9 1 712 405 7.2 1 591 404 6.7 1 483 391 6.3 1 416 377 5.9 Alternative performance measures that are not defined or specified in IFRS, are described under the following link: www.belimo.com/financial-summary Belimo Annual Report 2020 154

BELIMO Holding AG Brunnenbachstrasse 1 8340 Hinwil Switzerland Phone +41 43 843 61 11 E-mail ir@belimo.ch www.belimo.com