10 Intangible assets

The change in the "Intangible assets" item is shown in the following table. With the exception of goodwill, these are assets with a finite useful life. Intangible assets excluding goodwill in total EUR 5,771 thousand (5,276).

Scheduled Depreciation begins when the asset is put to economic use. Depreciation is charged on a straight-line basis over the expected useful life and reported under "Depreciation" in the statement of comprehensive income.

Purchased intangible assets, mainly software and patents as well as trademarks and other licenses, are carried at cost and depreciated on a straight-line basis over their expected useful life.

As at the balance sheet date, the Group had entered into obligations from investment projects in progress for software projects amounting to EUR 1,783 thousand (1,115) for the year 2025. These obligations mainly relate to software projects at Uzin Utz SE. Obligations of EUR 436 thousand (686) were entered into for 2026 and EUR 193 thousand for 2027 to 2029 (EUR 55 thousand for 2026 to 2027).

Goodwill

Goodwill of EUR 30,315 thousand (31,368) acquired as part of business combinations was allocated to the following cash-generating units in 2024 for impairment testing, which are generally based on the following legal structures:

The table shows the net value of Goodwill. Goodwill as at December 31, 2023 corresponds to the opening balance of goodwill for the 2024 financial year.

The decrease in the carrying amount of goodwill at Uzin Utz Schweiz AG by EUR 53 thousand (previous year: increase of EUR 195 thousand) to EUR 3,212 thousand (3,265) results from the translation of the reported carrying amount at the closing rate. The change was recognized in other comprehensive income.

Sifloor AG recorded a reduction in the carrying amount of goodwill of EUR 1,000 thousand (no change in the previous year) to EUR 5,443 thousand (6,443). This is due to a partial write-down of the goodwill allocated to the cash-generating unit as a result of the annual impairment test. The recoverable amount was calculated at EUR 31,408 thousand and was therefore below the carrying amount of the cash-generating unit. Due to the difficult market situation and the as yet unanticipated growth prospects, this partial write-down was recognized under the item "Depreciation".

Due to the impairment of Sifloor AG, the recoverable amount corresponds to the carrying amount. Consequently, the negative development of a significant assumption could lead to a further impairment.

11 Property, plant and equipment

The investment volume in the reporting year amounted to EUR 12,259 thousand (18,158). Investments were primarily made in the expansion of plant and machinery at the production companies in Ulm (Uzin Utz SE), Würzburg (Pallmann GmbH), the Netherlands (Uzin Utz Nederland B.V.) and Switzerland (Uzin Utz Schweiz AG).

Depreciation of property, plant and equipment in the amount of EUR 13,651 thousand (12,225) was reported in the statement of comprehensive income under the item "Depreciation".

The carrying amounts of properties encumbered with land charges to secure financial liabilities amounted to EUR 8,638 thousand (13,075) as at December 31, 2024.

As at the balance sheet date, the Group had entered into obligations from investment projects in progress for the purchase of property, plant and equipment in the amount of EUR 3,710 thousand (2,461). These obligations mainly relate to investments in various tangible assets of Uzin Utz SE, Pallmann GmbH, Uzin Utz Tools GmbH & Co. KG and Sifloor AG. For the year 2026, there are obligations for the Uzin Utz Group in the amount of EUR 159 thousand, for the years 2027 to 2029 in the amount of EUR 161 thousand (for the year 2025 in the amount of EUR 123 thousand, for the years 2026-2027 in the amount of EUR 0 thousand).

12 Rights of use

Right-of-use assets for leases are divided into the following four categories:

• Technical equipment and machinery
• Cars and trucks
• Land and buildings
• Other equipment, factory and office equipment

As mainly cars and trucks as well as land and buildings are leased, the majority of right-of-use assets in the Group are allocated to these categories. The carrying amounts of the respective categories at the beginning of the year, at the end of the year and the change in carrying amounts during the financial year are shown in the following table.

Right-of-use assets are amortized on a straight-line basis. Normally, the amortization period is determined by the term of the contract. Only in the case of a purchase option, which will most likely be used after the lease expires, is the actual useful life of the leased asset recognized. The write-ups are recognized in other operating income.

13 Non-current financial assets

The item "Other non-current financial assets" includes shares in companies and investments not included in the consolidated financial statements, securities held as fixed assets and other loans amounting to EUR 381 thousand (524). There are currently no plans to sell these financial assets.

Further information on the financial instruments can be found in the "Other information" section.

14 Investment Properties

In the 2008 financial year, a right of first refusal was exercised in Switzerland and an investment property was acquired as a result. Part of the property was developed in 2018 and reclassified to property, plant and equipment; the undeveloped part is still included in investment properties. Recognition as at December 31, 2024 was at fair value. The observable data required for this was provided by a local administrative authority in the form of a price per square meter. This is multiplied by the number of square meters and thus represents the fair value. The price per square meter is unchanged compared to the previous year.

Another property relates to the land acquired in 2018 at the site of Uzin Utz Tools GmbH & Co. KG site in Ilsfeld in 2018. It is recognized as at the reporting date at fair value, which was also derived on the basis of observable data multiplied by the number of square meters. The standard land value according to the data provided by a local administrative authority was the same in the reporting year as in the previous year.

Since the 2023 financial year, parking spaces, parts of the office buildings and a warehouse of Uzin Utz Immobilienverwaltungs GmbH have been leased to third parties. For this reason, these properties are classified as "investment property" in the Group. They were recognized at fair value as at December 31, 2024. The rented part of the land is measured using observable data in the form of a standard land value, which can be found in the publicly accessible standard land value information system of the expert committees of Baden Württemberg, multiplied by the number of square meters. For rented buildings, the fair value is based on a recognized expert opinion.

The unrealized changes in the market value of investment properties can be found in the statement of comprehensive income under "Income from investment properties".

Details and information on the hierarchy levels (in accordance with IFRS 13) of the fair values of the Group's investment properties as at December 31, 2024 and the previous year are presented below:

15 Deferred taxes

Deferred taxes are recognized in accordance with the "temporary concept" of IAS 12 "Income Taxes". The tax rates applicable or enacted on the balance sheet date are applied. As at December 31, 2024, the items include deferred tax assets of EUR 10,468 thousand (8,731) and deferred tax liabilities of EUR 13,842 thousand (11,565). Deferred tax assets on loss carryforwards of EUR 3,611 thousand (104) were recognized as at December 31, 2024. The unused tax loss carryforwards as at 31 December 2024 amounted to EUR 337 thousand (422), whereby no deferred tax assets were recognized. Loss carryforwards amounting to EUR 0 thousand (0) will expire by 2025 due to the limited useful life. No deferred tax assets were recognized for these loss carryforwards either.

As at January 1, 2023, the Group applied Deferred taxes relating to assets and liabilities arising from a single transaction for the first time as a result of the amendments to IAS 12. The amendment restricts the scope of the "initial recognition exemption" by excluding transactions that result in deductible and taxable temporary differences at the same time. This may be the case when applying IFRS 16 due to the recognition of a lease liability and the associated right-of-use asset at the inception of the lease. As a result of the adjustment, Uzin Utz is now obliged to form the corresponding deferred tax assets and liabilities for the business transactions described and to recognize them in the income statement in the future. The cumulative effect of the first-time application of deferred tax assets and liabilities was recognized directly in equity in retained earnings in the previous year and is shown in the "Statement of changes in equity" section. In the 2024 reporting year, the change in the rights of use and the corresponding liabilities in accordance with IFRS 16 resulted in a difference in deferred taxes recognized in profit or loss in the amount of EUR 104 thousand. This is reported in the income statement under "Taxes on income and earnings" and is included in section "8 Taxes on income/deferred taxes" under "Deferred taxes - from temporary valuation differences".

Deferred taxes in connection with shares in subsidiaries were not recognized in accordance with IAS 12.81(f), as the Group determines the dividend policy of the subsidiaries. The Group can therefore control the reversal of temporary differences. The Management Board assumes that there will be no reversal in the foreseeable future.

Deferred tax assets and liabilities are attributable to the following items:

The carrying amounts of deferred tax assets were adjusted if the realization of the tax benefits contained therein could no longer be expected.

If deferred tax assets are reported on loss carryforwards, it is assumed that these tax reduction potentials will be utilized through taxable income in the coming years, which is considered probable based on the companies' planning.

16 Trade receivables and other assets

The receivables portfolio is shown in the table below.

Other assets include forward exchange contracts.

Trade receivables are non-interest-bearing and have an average term of  27 days (29) across the Group. As at the reporting date, there were no significant receivables from affiliated, non-consolidated companies.

Trade credit insurance has been taken out to hedge the receivables risk.

Trade receivables have very different terms depending on the payment terms, which vary greatly from country to country. However, the terms are predominantly within the average payment terms typical for the country in question.

17 Inventories

Inventories include value adjustments in the amount of EUR 4,716 thousand (4,158). Impairment losses and write-downs in the amount of EUR 609 thousand (631) were recognized in profit or loss.

The cost of inventories incurred in connection with business activities was recognized as an expense during the year in the amount of EUR 198,159 thousand (210,762).

Framework and maintenance agreements were concluded with suppliers in order to secure predominantly favorble purchase prices for the future. There are obligations from these contracts for 2025 amounting to EUR 4,583 thousand (4,482) and for 2026 amounting to EUR 459 thousand (EUR 174 thousand for 2025; EUR 188 thousand for 2026 to 2033).

18 Cash and cash equivalents

Cash and cash equivalents are recognized at nominal value. Foreign currency holdings are valued at the exchange rate on the balance sheet date.

Cash and cash equivalents include checks in the amount of EUR 1,316 thousand (1,446), cash on hand in the amount of EUR 212 thousand (149) and bank balances in the amount of EUR 42,789 thousand (36,563).

If necessary, the Uzin Utz Group holds higher bank balances exclusively with banks with an investment grade credit rating. There are no significant interest rate risks or default risks in connection with the cash and cash equivalents item. In addition, bilateral working capital lines have been negotiated with several core banks to minimize risk.

19 Equity/treasury shares/Non-controlling interests

Subscribed capital

The share capital of Uzin Utz SE amounts to EUR 15,133 thousand as of December 31, 2024 and is divided into 5,044,319 no-par value bearer shares (ordinary shares) with a pro rata amount of EUR 3. Compared to January 01, 2024, there was no change in the number of shares in circulation. All shares issued by December 31, 2024 are fully paid up. Each share grants an equal dividend entitlement.

Authorized capital

The Management Board is authorized, with the approval of the Supervisory Board, to increase the company's share capital on one or more occasions in the period up to 21 May 2029 by up to a total of EUR 3,000 thousand by issuing up to a total of 1,000,000 new no-par value ordinary bearer shares with voting rights (no-par value shares) with a notional interest in the share capital of EUR 3 per share (Authorized Capital I). The capital increases can be made against cash contributions and/or contributions in kind.

The Management Board is authorized, with the approval of the Supervisory Board, to increase the company's share capital once or - in partial amounts - several times by up to a total of EUR 4,000 thousand in the period up to 25 May 2026 by issuing new no-par value ordinary bearer shares with voting rights (Authorized Capital II). The capital increases can be made against cash contributions and/or contributions in kind.

Further information on the capital increase and possible exclusions of subscription rights can be found in the reporting in accordance with Section 315a of the German Commercial Code (HGB) in the management report.

Capital reserve

The capital reserves include the premiums generated by issuing shares and proceeds from the issue of treasury shares. These are reduced by the amounts required for capital increases from company funds and the costs of capital increases. This results in capital reserves of EUR 26,962 thousand (26,962) in the Group.

Capital management

The primary objective of the Group's capital management is to ensure that a good equity ratio is maintained to support business activities and maximize shareholder value, among other things. The review is carried out quarterly by the Management Board.

The Uzin Utz Group generally pursues the goal of sustainably securing the equity base and generating an appropriate return on the capital employed. The Group's accounting capital acts as a passive control criterion, while sales and EBIT are used as active control variables. As at December 31, 2024, the equity ratio was 65.0% (61.3%).

Revenue reserve

Retained earnings include the following items:

• The retained Group profits
• Conversion effects from the first-time application of IFRS/IAS recognized directly in equity
• Conversion effects from the retrospective application of standards recognized directly in equity
• Dividend distributions.

Other reserves

Other reserves include the following items:

• Changes in equity due to consolidation and exchange rate effects
• Actuarial gains/losses recognized directly in equity (from pension obligations)
• Changes in equity from income from financial instruments recognized directly in equity

In the consolidated financial statements, assets and liabilities of foreign companies are translated into euros at the beginning and end of the year using the respective closing rates and expenses and income are translated using average monthly exchange rates. Equity components are translated at historical rates at the time of their respective additions from a Group perspective. The development of this item is shown in the consolidated statement of changes in equity.

Treasury shares

With the application of IAS 32, treasury shares are recognized as an adjustment item to equity and measured at cost.

On 19 May 2020, the Annual General Meeting of the company authorized the company to acquire treasury shares up to a total of 10% of the share capital existing at the time of the resolution for purposes other than trading in treasury shares until 18 May 2025, whereby the acquired shares together with other treasury shares held by the company or attributable to it may at no time account for more than 10% of the share capital. The authorization may be exercised by the company in whole or in part; if exercised in part, the authorization may be exercised several times. The shares may only be acquired via the stock exchange or by means of a public purchase offer to all shareholders. No treasury shares are held as at December 31, 2024.

Non-controlling interests

Non-controlling interests are presented in the "Consolidated Statement of Changes in Equity".

20 Provisions

Non-current provisions can be broken down into pension provisions, non-current provisions for anniversaries and other non-current provisions. Other non-current obligations include obligations from inherited liabilities.

With the exception of the provisions for pensions, non-current long-service awards and legacy burdens, the provisions have expected remaining terms of up to one year and are therefore reported as current provisions.

Provisions for warranties are recognized for statutory, contractually agreed and de facto warranty obligations for products.

The uncertainty of provisions in the personnel area is between 5% and 49%. In the area of other provisions, the uncertainty also lies between 5% and 49%.

The following table summarizes the changes in all provisions.

The provisions for anniversaries originate primarily from the German companies (Uzin Utz SE, Uzin Utz Tools GmbH & Co. KG, Pallmann GmbH, Codex GmbH & Co. KG and Neopur GmbH) as well as the Swiss companies Uzin Utz Schweiz AG, Sifloor AG and the Polish company Uzin Utz Polska Sp. z o.o. Employees who have been with the company for 10 years or more are granted an anniversary bonus. In total, the non-current portions of the provisions for anniversaries of the Uzin Utz Group amounted to EUR 814 thousand (677) in the reporting year.

The other provisions not listed individually were mainly formed for obligations from legacy liabilities, outstanding bonus credits and provisions for impending losses.

Provisions in the personnel area were mainly formed for vacation arrears, similar obligations, flexitime credits, bonuses and management bonuses.

Since 2010, Uzin Utz SE has paid a fixed annual demographic amount in accordance with the "Collective Agreement on Working Life and Demography" of the chemical industry. In 2024, this was 750 euros per employee (750). The funds from the demography fund are used to finance so-called value accounts for participating employees. In addition to the demography fund and the company's contributions, Uzin Utz SE also encourages employees to save additional credit in the form of vacation days, overtime or deferred compensation in their value accounts. The accounts enable, among other things, an early transition to retirement or time off for a sabbatical, for example. Provisions amounting to EUR 4,978 thousand (4,512) result from this arrangement. There are reimbursement claims in the same amount against an insurance company to which the saved credit balances are paid.

21 Provisions for post-employment benefits

In the Uzin Utz Group, the pension obligations originate from Uzin Utz SE, Germany, Uzin Utz Tools GmbH & Co. KG, Germany, Uzin Utz France SAS, France and the Swiss companies Uzin Utz Schweiz AG and Sifloor AG.

Pension plans

a) Defined contribution plans

The German companies have a defined contribution plan. The expenses for this are shown in chapter 4 "Personnel expenses/employees" under "thereof for retirement benefits".

The remaining pension plans for eligible employees of the Uzin Utz Group are defined benefit plans.

b) Performance-oriented plans

Entitled persons of the Uzin Utz Group are granted pension payments when they reach retirement age, which is between 65 and 67 years. The amount of the payments of the defined benefit plans is based on the remuneration payments to the employees, taking into account salary and pension increases, life expectancy and the probability of leaving the company. As at December 31, 2024, the number of active members was 131 and the number of pensioners was 17.

The defined benefit plans are managed by Mensch & Kuhnert GmbH, Blaustein, and Libera AG, Zurich. Due to the cost-benefit analysis, the pension obligations are calculated independently by the French company. The defined benefit plans are partially reinsured in accordance with the contracts. A potential default risk for the Group results from any insolvency of the insurance company. This is not expected.

The last actuarial valuation of the plan assets and the present value of the defined benefit plan was carried out by the managing insurance companies as at December 31, 2024. The present value of the defined benefit plans, the current benefit expense and the past service cost were calculated using the projected unit credit method.

In addition to assumptions on life expectancy - in Germany according to the Heubeck 2018 G mortality tables - the calculation of pension obligations is based on the following actuarial assumptions:

In accordance with IAS 19.120 (c), actuarial gains and losses are recognized in other comprehensive income.

Interest expense or interest income results from the net interest on the net defined benefit liability or net defined benefit asset.

Past service cost is recognized in profit or loss in the period in which a plan amendment is made.

The breakdown of pension expenses in the statement of comprehensive income of the Uzin Utz Group is as follows: Remeasurements include the following

• the actuarial gains and losses on the defined benefit obligation,
• the difference between the actual return on plan assets and the return implied by the net interest expense, and
• the effects from the limitation of a net asset value (asset ceiling).

Remeasurements are recognized directly in equity through other comprehensive income (OCI).

The cash value of the performance-oriented obligation developed as follows:

The fair value of plan assets developed as follows:

Net debt developed as follows:

Major asset categories

Germany

A detailed statement of the fair values of the plan assets for significant asset categories is not provided, as the plan assets in Germany are to be treated as an independent financial instrument from the insurer's perspective.

Other

The assets deposited with Allvisa Services AG are held in its group life portfolio and are invested as follows:

Sensitivity analyses

Libera AG (Uzin Utz Schweiz AG, Sifloor AG)

If the discount rate increases (decreases) by 0.5 percentage points, the defined benefit obligation would decrease by 6.68% (increase by 7.70%).

If the expected salary increase is 0.5% higher (lower), the defined benefit obligation would increase by 1.25% (decrease by 1.20%).

If life expectancy for men and women increases (decreases) by one year, the defined benefit obligation would increase by 1.34% (decrease by 1.34%).

Mensch & Kuhnert GmbH (Uzin Utz SE, Uzin Utz Tools GmbH & Co. KG)

If the discount rate increases (decreases) by 0.5 percentage points, the defined benefit obligation would increase by 0.9% (decrease by 0.00%).

If the expected salary increase is 0.5% higher (lower), the defined benefit obligation would decrease by 0.08% (increase by 0.99%).

If life expectancy for men and women increases (decreases) by one year, the defined benefit obligation would increase by 5.40% (decrease by 7.51%).

Due to the cost-benefit consideration, the sensitivity analysis is carried out independently by the French company

If the discount rate increases (decreases) by 0.5 percentage points, the defined benefit obligation would decrease by 5.70% (increase by 6.10%).

If the expected salary increase is 0.5% higher (lower), the defined benefit obligation would increase by 0.50% (decrease by 0.50%).

If life expectancy for men and women increases (decreases) by one year, the defined benefit obligation would increase by 0.40% (decrease by 0.30%).

The effects of the strategic investment policy with regard to the return and risk profile are not analyzed due to the external management of the pension assets.

The above sensitivity analyses are unlikely to be representative of the actual change in the defined benefit obligation due to the unlikelihood that deviations from the assumptions made will occur in isolation, as the assumptions are partly interrelated.

The term of the defined benefit obligation as of December 31, 2024 is between 6.7 and 14.8 years.

For the coming financial year, the Group expects to pay an amount of EUR 920 thousand into the defined benefit plan.

The change in provisions for pensions is as shown in the table below.

22 Liabilities

The composition including maturities are shown in the table below.

Financial liabilities

Current and non-current financial liabilities to banks amount to EUR 69,379 thousand (85,412) and are secured by land charges in the amount of EUR 8,638 thousand (13,075).

Financial liabilities also include liabilities from variable-interest loans amounting to EUR 193 thousand (3,396), most of which have been replaced by bank credit lines. They also include current account liabilities amounting to EUR 28,380 thousand (32,419), which are mainly utilized by Uzin Utz North America Inc.

The existing credit lines allow further funds to be raised. These were unutilized in the amount of EUR 109,462 thousand (98,176) at the end of the reporting period.

Other current financial liabilities

Other current financial liabilities in the amount of EUR 8,947 thousand (7,497) mainly comprise debtors with credit balances in the amount of EUR 6,335 thousand (5,371).

The amounts are current and non-interest-bearing.

23 Trade payables

Trade payables increased from EUR 15,970 thousand to EUR 16,061 thousand in the past financial year.

As in the previous year, trade payables have a remaining term of less than one year and do not bear interest.