Zehnder Group (ZEHN) investor relations material

Strategic rationale and organizational change

• Transitioning to a divisional structure to better support proven strategies for each business area, as ventilation and radiator businesses face different market realities requiring tailored approaches.

• Shared commercial structures have hindered business needs, prompting a shift to a divisional structure for greater focus, agility, accountability, and execution power for each segment.

• The new structure aims to accelerate growth in ventilation, improve financial performance in radiators, and foster entrepreneurial growth in niche markets through a separate Light Commercial Europe entity.

Market and operational context

• Ventilation business benefits from favorable regulations and growing demand for energy-efficient solutions, while the radiator segment operates in a mature, declining market, necessitating aggressive cost discipline and portfolio optimization.

• Commercial and operational levers are being actively pursued in both segments, including expansion, innovation, and efficiency gains.

Organizational changes and implementation

• European ventilation and radiator operations will be separated into distinct divisions, with Light Commercial Ventilation Europe managed independently.

• The Group Executive Committee will be reduced from six to five members, including the CEO, CFO, and presidents of the three largest divisions; Silvia Witschi will lead Residential Ventilation Europe and Jörg Metzger will head Radiators Europe.

• Dorien Terpstra and Johannes Bollmann will depart after a transition period ending in 2026.

• Key organizational changes begin October 2026, with legal separation of entities by January 2027 and ongoing optimization thereafter.