General part

The EU Taxonomy as part of the European Green Deal

The European Union, including the Paris Climate Agreement, has declared its goal to become climate-neutral by 2050. The European Green Deal is setting the course for this, with the "EU Action Plan Sustainable Finance" strategy playing a key role. The objective is to channel capital flows specifically into sustainable investments, incorporate sustainability into risk management and promote transparency and a long-term approach.

The EU Taxonomy Regulation (EU Regulation (EU) 2020/852; in short: "EU Taxonomy") is a key instrument for redirecting financial flows towards sustainable and future-proof economic activities. The EU Taxonomy is a classification system that aims to create a standardised understanding of sustainable economic activities in the EU and make the sustainability performance of companies more comparable.

The EU taxonomy contains the following six environmental objectives:

The EU Taxonomy Regulation, including the delegated acts, has been applicable since the 2021 reporting year. The content structure and regulatory design of the EU Taxonomy Regulation are based on Delegated Regulation (EU) 2021/2178 of 6 July 2021 and are supplemented by Delegated Regulation (EU) 2022/1214 of 9 March 2022, the six annexes to Delegated Regulation (EU) 2021/2139 and Delegated Regulation (EU) 2023/2486 of 27 June 2023. The objection period of the European Council and the European Parliament regarding the Delegated Regulation (EU) 2026/73 from the Omnibus I package to simplify taxonomy reporting, adopted on 4 July 2025, which runs until after the end of the 2025 financial year, was taken into account when structuring the reporting. The Uzin Utz Group is already implementing the simplifications provided for in the adopted legal act for the 2025 financial year. In accordance with the EU Directive 2014/95/EU on the disclosure of non-financial information, the Uzin Utz Group has been subject to the EU taxonomy reporting obligation since the 2021 financial year.

Disclosure

The Uzin Utz Group reports on the taxonomy eligibility and taxonomy alignment of its own economic activities on the basis of the EU documents on the EU taxonomy published in the 2025 financial year and applies the simplifications provided for in the omnibus procedure. Furthermore, comprehensive details are supplied on the procedure for evaluating taxonomy alignment and taxonomy compliance.

The key performance indicators reported are sales revenue, investments (CapEx) and operating costs (OpEx). A ratio is calculated in each case to determine the taxonomy-compliant, taxonomy-aligned and non-taxonomy-compliant portions of these key figures. The denominator is formed by the total sales revenues, CapEx and OpEx within the EU taxonomy framework. The numerator is derived from the taxonomy-eligible and taxonomy-aligned portions of the corresponding key figures. The key figures are defined as follows:

In accordance with the provisions of Directive (EU) 2021/2139, Annex I, in conjunction with Directive 2013/34/EU, revenue is defined as net sales of goods or services, including intangible assets, in accordance with the standards set out in IFRS 15. As outlined in the statement of comprehensive income, this corresponds to the disclosures on net sales.

Capital expenditure (CapEx) is defined as additions to property, plant and equipment and intangible assets in the financial year under review before depreciation and amortisation. Please note that additions from revaluations and impairments, as well as changes in fair value, are not taken into account. In accordance with the EU Taxonomy Regulation, capital expenditure (CapEx) includes investments in property, plant and equipment (IAS 16), intangible assets (IAS 38), investment property (IAS 40) and right-of-use assets from leases (IFRS 16).

In accordance with the EU taxonomy, operating expenses (OpEx) include direct and non-capitalised costs relating to research and development, building refurbishment measures, short-term leasing and maintenance and repair. Furthermore, all other direct expenses for the ongoing maintenance of property, plant and equipment are taken into account, regardless of whether these are provided by the company itself or by contracted third parties. It should be noted that the definition is limited to the aforementioned components and therefore excludes all of a company's operating expenses.

Standardised processes and clear demarcation mechanisms prevent double or multiple counting when allocating sales revenues, CapEx and OpEx figures within the scope of economic activities. Each economic activity is clearly identified and recorded once when determining its taxonomy eligibility, regardless of which of the six environmental objectives it is included in. Structured control instruments are used to avoid double counting. These instruments include precise delimitation and allocation guidelines, comprehensive documentation for data collection and KPI calculation, as well as multi-stage review mechanisms. These measures ensure consistent and compliant reporting.

Taxonomy eligibility

Should a company earn revenue, or incur capital expenditure (CapEx) or operating expenditure (OpEx) associated with an economic activity described in the delegated act, then the activity is deemed taxonomy-eligible. The existence of an economic activity is defined by the combination of resources, including capital, goods, labour, production techniques and intermediate products, with the objective of producing specific goods or services. The main characteristics are the use of resources, a production process and the products (goods or services) produced. Taxonomy-eligible economic activities are generally capable of making a significant contribution to one of the environmental objectives defined in the EU taxonomy. In particular, the EU Taxonomy Regulation takes into account significant industries with CO2-intensive economic activities. It should be noted that not all economic activities are currently covered by the delegated act of the EU Taxonomy.

Taxonomy alignment

In accordance with Article 3 of the EU Taxonomy and the criteria set out therein, an economic activity is considered to be environmentally sustainable, i.e. taxonomy-aligned, if the following three criteria are equally fulfilled in addition to taxonomy eligibility:

• It is important to note that it makes a significant contribution to the achievement of one or more environmental objectives of the EU Taxonomy by meeting the technical screening criteria (TSC).
• It is important to note that this does not contribute to any violations of other environmental objectives, in accordance with the Do No Significant Harm (DNSH) principle.
• It is confirmed that the specified criteria of the minimum standards for labour and human rights (minimum safeguards) have been complied with.

Business activities of the Uzin Utz Group

As part of the analysis of the business activities of the Uzin Utz Group, all business segments were systematically analysed. This involved a detailed examination of the economic activities, which were then allocated to the corresponding NACE codes (the EU classification of economic activities).

Assessment of taxonomy eligibility

The review process was conducted in two stages: Firstly, the taxonomy-eligible economic activities were identified and then their taxonomy alignment was checked. As part of the detailed analysis, all economic activities defined by the EU taxonomy were systematically checked for their relevance to the Group's business activities and allocated. The key figures – sales revenues, CapEx and OpEx – were screened separately to ensure precise allocation and evaluation of the activities. This structured approach ensures that the reporting both complies with regulatory requirements and enables a complete presentation.

1. Revenue according to EU taxonomy

The EU Taxonomy Regulation establishes a classification system for environmentally sustainable economic activities. This classification is based on the statistical classification of economic activities in the EU (NACE codes).

As a global full-service supplier with soil as its core competence, the Group develops comprehensive system solutions and offers a wide range of products, from construction chemicals and surface finishes to soil cultivation machinery. In light of this, the Group's economic activities were assessed based on the respective product categories and classified according to the EU taxonomy (NACE codes). The allocation of the individual product ranges to the corresponding economic sectors is shown in the table below.

It should be noted that the reference to the NACE economic activities in the EU Taxonomy Regulation is only indicative and not to be understood as complete. Therefore, an economic activity may correspond to the description of an activity and the technical screening criteria of the Delegated Act (see six annexes of Delegated Regulation (EU) 2021/2139, (EU) 2023/2485 and (EU) 2023/2486), even if the NACE sector of the economic activity is not explicitly listed in the corresponding annexes of the Delegated Regulation. For this reason, we analysed the potentially applicable activities and their description in the Delegated Regulations (EU) 2021/2139, (EU) 2022/1214, (EU) 2023/2485 and (EU) 2023/2486 in detail.

An analysis of the business activities of the Uzin Utz Group in relation to the EU Taxonomy has revealed a general correlation between individual sales revenues and economic activities classified under the EU Taxonomy Regulation's environmental objective of the circular economy. In particular, these include sales revenue from electrical and electronic equipment of the WOLFF brand (NACE code 28.24) and related services throughout the product life cycle.

The majority of the Uzin Utz Group's business segments are not currently covered by the economic activities defined in the EU Taxonomy Regulation. Therefore, only a small proportion of sales revenue can be classified as potentially taxonomy-aligned. Provided that the economic activities specified in the regulation remain unchanged, it will not be possible to assess the contribution of the non-taxonomy-eligible areas to the EU's environmental objectives.

Potentially relevant activities are identified at a higher level and without applying the technical screening criteria of the EU taxonomy. In light of this, it is not necessary to provide a detailed delineation of individual products or sales revenues, nor is an extensive assessment as defined by the EU Taxonomy Regulation required.

In light of the materiality threshold introduced in the Delegated Act on the Omnibus Simplifications, no quantitative disclosure of sales revenues is made, as the share of potentially taxonomy-eligible sales revenue is below the threshold of 10% of Group sales revenues. The WOLFF brand generates 7.3% of Group sales, falling below the defined threshold of 10%. Accordingly, the sales revenues attributable to the WOLFF brand's electrical and electronic appliances product group, which are classified as taxonomy-eligible in accordance with the EU taxonomy, also fall below this materiality threshold. In light of the aforementioned circumstances, it should be noted that these sales revenues were not recognised and reported separately in detail in the 2025 financial year.

The reference figure used in the reporting year differs methodically from the approach used in the previous year. In the previous year, sales revenues were recognised and reported separately at the product level of electrical and electronic appliances. However, in the 2025 financial year, they are analysed at an aggregated brand level. The change in the reported key figure compared to the previous year is therefore due to the adjusted measurement and deferral method as part of the omnibus simplifications. This does not represent a change in the underlying business activity or revenue structure.

2. Investments - CapEx according to EU taxonomy

Following a cost-benefit analysis, the screening of economic activities in relation to investments was carried out on the basis of the EU taxonomy definition and a catalogue of categories relevant to the Uzin Utz Group. Following a thorough review of the catalogue, the Group companies analysed the investments made during the period under review and assigned them to the relevant categories. The investments recorded were then centrally reviewed to ascertain whether any further investments relevant to the EU taxonomy had been made that were not included in the catalogue.

The following list shows the Group's investments as defined by the EU taxonomy. The economic activity allocated to the respective investment in accordance with the EU taxonomy is shown in the first column.

Capital expenditures in the acquisition of products for taxonomy-aligned economic activities

Environmental objectives: climate change mitigation (CCM) and climate change adaptation (CCA)

The taxonomy-eligible investments of the Uzin Utz Group were set in relation to the total investments in accordance with the EU Taxonomy Regulation. Total investments include additions to property, plant and equipment, intangible assets, right-of-use assets and additions to investment properties in accordance with IAS 40 (excluding income from revaluation).

The materiality threshold provided for in the delegated regulation on omnibus relief is applied on the basis of the cumulative share of these identified economic activities in the respective KPI denominator. With regard to investments (CapEx), it should be noted that only the economic activities 'Transport by motorbikes, passenger cars and light commercial vehicles' and 'Data processing, hosting and related activities' account for more than 10% of the total CapEx denominator in the 2025 reporting year. The other identified investments are both individually and cumulatively below this materiality threshold. Applying the simplification rules provided for, a separate quantitative disclosure of further potentially taxonomy-eligible investments is therefore dispensed with.

The reference figure used for investments (CapEx) in the reporting year differs methodically from the approach used in the previous year. While investments were allocated and reported separately to individual, potentially taxonomy-eligible economic activities in the previous year, in the 2025 financial year they are analysed at an aggregated level using the materiality threshold provided for in the omnibus simplifications. The discrepancy in the reported CapEx figure compared to the previous year is therefore due to the adjusted measurement and deferral methodology. This does not indicate a change in investment behaviour or the underlying business activity.

3. Operating expenses - OpEx according to EU taxonomy

Please note that the term 'operating expenses' (OpEx) as defined in the EU taxonomy only covers part of the operating expenses of the Uzin Utz Group. These expenses primarily include development, maintenance and repair costs, as well as short-term leasing expenses. The relevant operating expenses, as defined by the EU taxonomy, were provided, analysed and centrally evaluated by the individual Group companies as part of a Group-wide data query.

As a manufacturing and distribution group, the main cost drivers are the cost of materials (44.9% of total operating expenses) and personnel expenses (30.0% of total operating expenses), which are incurred along the entire value chain from the manufacture to the distribution of these products. It should be noted that these costs are offset by development, maintenance and repair expenses, as well as short-term leasing expenses. These are generally allocated to operating expenses, as defined by the EU taxonomy. The business model of the Uzin Utz Group means that operating expenses are not a significant factor in the context of the EU taxonomy.

In accordance with the EU Taxonomy Regulation, the disclosure of the OpEx ratio can be waived if the corresponding operating expenses are not material to the company's business model. We therefore make use of the simplification option in accordance with Delegated Regulation (EU) 2021/2178, Annex I, Section 1.1.3.2, applying the principle of materiality and do not calculate and disclose the taxonomy-eligible OpEx. Please be advised that, in light of the aforementioned points, there will be no quantitative disclosure of the OpEx figure in accordance with the EU taxonomy in the 2025 financial year.

Checking taxonomy alignment

1. Turnovers in accordance with the EU Taxonomy

The EU Taxonomy Regulation generally requires the fulfilment of the technical screening criteria for the recognition of sales revenues that is in accordance with the taxonomy. In the 2025 financial year, however, in line with the regulations provided for in the omnibus simplifications, a review of taxonomy alignment will be waived.

The background to this is that the potentially taxonomy-eligible sales revenues of the Uzin Utz Group are below the materiality threshold of 10% of Group sales revenues defined in the delegated act. In light of this, the technical screening criteria are not applied, nor is the material contribution to the environmental objectives of the EU taxonomy assessed.

2. Capital Expenditures according to EU Taxonomy

In accordance with the requirements of the EU Taxonomy Regulation, we have reviewed the taxonomy-eligible investments (CapEx) of the reporting period to assess their taxonomy alignment. The Uzin Utz Group's strategic investments include projects in the field of photovoltaic systems and the electrification of vehicle fleets, which have the potential to contribute to the EU's environmental objectives outlined in the Taxonomy Regulation. In order to assess taxonomy alignment, we made every effort to obtain the relevant certificates and evidence of compliance with the DNSH criteria and the technical screening criteria from our suppliers. It was anticipated that these would demonstrate that the underlying economic activities satisfy the criteria of the conformity assessment in accordance with the EU taxonomy. Despite extensive efforts, the relevant confirmations of compliance with the conformity criteria were only obtained from suppliers in isolated cases.

3. Operating Expenditures according to EU Taxonomy

In the case of operating expenses (OpEx), the simplification option in accordance with Delegated Regulation (EU) 2021/2178, Annex I, 1.1.3.2 is utilised in the context of materiality when reporting taxonomy-eligible and taxonomy-aligned economic activities, and a separate table for OpEx is not presented.