10 Intangible asstes

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 5,276 thousand (4,181).

Scheduled Depreciation begins at the time of the asset's economic use. Amortization is charged on a straight-line basis over the expected useful life of the asset and reported under the item "Depreciation" in the statement of comprehensive income.

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

As at the balance sheet date, the Group had entered into obligations from investment projects in progress for software projects in the amount of EUR 1,115 thousand (1,255) for 2024. These obligations mainly relate to software projects at Uzin Utz SE. Obligations of EUR 686 thousand (606) were entered into for the year 2025 and EUR 55 thousand for the years 2026 to 2027 (EUR 675 thousand for the years 2025 to 2026).

Goodwill

Goodwill of EUR 31,368 thousand (31,174) acquired as part of business combinations was allocated to the following cash-generating units for impairment testing in 2023, which are generally based on the following legal structures:

The table shows the net values of goodwill. The goodwill as of December 31, 2022 corresponds to the opening balance of goodwill for the 2023 financial year.

The increase in the book value of goodwill at Uzin Utz Schweiz AG by EUR 195 thousand (previous year: increase of EUR 144 thousand) to EUR 3,265 thousand (3,070) results from the translation of the reported book value at the closing rate. The change was recognized in other comprehensive income.

11 Property, plant and equipment

The investment volume in the reporting year amounted to EUR 18,158 thousand (39,585). 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.), Poland (Uzin Polska Produkty Budowlane Sp. z o.o.) and especially the USA (Uzin Utz North America Inc.).

Depreciation and amortization amounting to EUR 12,225 thousand (11,019) was reported in the statement of comprehensive income under the item "Depreciation".

The carrying amounts of real estate encumbered with land charges to secure financial liabilities amounted to EUR 13,075 thousand (19,312 ) as of December 31, 2023.

As of the balance sheet date, obligations of EUR 2,461 thousand (7,118) were entered into in the Group from investment projects that had been started via the purchase of property, plant and equipment. These obligations mainly relate to investments in various tangible assets of Uzin Utz SE and Uzin Utz Schweiz AG. For the year 2025, there are obligations for the Uzin Utz Group in the amount of EUR 123 thousand, for the years 2026 to 2027 in the amount of EUR 0 thousand (for the year 2024 in the amount of EUR 172 thousand, for the years 2025-2026 in the amount of EUR 112 thousand).

12 Rights of use

The right of use for leases is broken down 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 the rights of use 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 fiscal year can be seen from the following table.

The right of use is 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 that will most likely be exercised after expiry of the lease agreement is the actual useful life of the leased asset to be applied.

13 Non-current financial assets

The item "Non-current financial assets" includes, among other things, the shares of companies not included in the consolidated financial statements. Non-current financial assets also include loans amounting to EUR 524 thousand (1,150). The non-current financial assets were recognized at amortized cost, as the fair value cannot be reliably determined due to the lack of a market quotation. There are currently no plans to sell these financial assets.

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

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, 2023 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. Following confirmation of the significant increase in the price per square meter by the local municipal authority, a revaluation of EUR 0 thousand (284) was recognized, which is included in income from investment properties. A plot of land that was acquired in 2018 and is adjacent to the site of Uzin Utz Tools GmbH & Co. KG in Ilsfeld is recognized 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 corresponded to the previous year in the reporting year.

In addition, a property held by the UK investment company has been reported as investment property since 2017. Due to the existing disposal plans, the investment property was derecognized in the 2021 financial year. As the valuation in the context of the sale resulted in a need for impairment, a write-down of EUR 24 thousand was recognized in the income statement in 2021. The remaining carrying amount of EUR 208 thousand was reported in the previous year after reclassification in the balance sheet under "Assets held for sale". In the 2022 financial year, a loss of EUR 8 thousand was generated from the sale of the asset held for sale.

In addition to owner-occupied properties, Uzin Utz Immobilienverwaltungs GmbH reports two properties that have been classified as investment property for the Group since the reporting year. The two properties are largely leased to third parties and are therefore classified as investment property. As at December 31, 2023, the fair value of these investment properties amounted to EUR 2,493 thousand.

The following table shows the disclosures required by IFRS 13 as of December 31, 2022:

15 Deferred taxes

Deferred taxes are accrued in accordance with the temporary concept of IAS 12 "Income Taxes". The tax rates applicable or enacted at the balance sheet date are used. As of December 31, 2023, the items include deferred tax assets of EUR 8,731 thousand (5,029) and deferred tax liabilities of EUR 11,565 thousand (9,366). As of December 31, 2023, deferred tax assets on loss carry forwards in the amount of EUR 104 thousand (75) were recognized. As of December 31, 2023, unused tax loss carry forwards amount to EUR 422 thousand (516), of which no deferred tax assets have been recognized on EUR 0 thousand (0). Due to limited useful lives, loss carry forwards of EUR 0 thousand (0) will expire by 2023, for which no deferred tax assets have been recognized.

As of 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 retained earnings and can be seen in the "Statement of changes in equity" section. In the 2023 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 31 thousand. This is reported in the income statement under "Taxes on income" and is recognized in section "8 Taxes on income/deferred taxes" under "15 Deferred taxes - from temporary valuation differences".

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

The carrying amounts of deferred tax assets have been written down to the extent that the tax benefits they contain are no longer expected to be realized.

Where deferred tax assets are recognized on tax loss carry forwards, 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 planning of the companies.

16 Trade receivables and other assets

Trade receivables and other assets, insofar as they are financial assets, are classified as "loans and receivables" in accordance with IFRS 9 and recognized at amortized cost.

The receivables are shown in the table below.

Trade accounts receivables are non-interest bearing and have an average term of 29 days (27) throughout the Group. As of the reporting date, there were no significant receivables from affiliated companies not included in the consolidated financial statements.

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

Trade accounts receivable have very different maturities depending on the payment terms, which vary widely from country to country. However, the maturities are mainly in line with the average payment terms typical for the country.

17 Inventories

Inventories were measured at the lower of cost and net realizable value, taking into account selling and production costs still to be incurred. Impairment losses and write-downs of inventories amounting to EUR 4,449 thousand (3,650) were recognized. The FiFo principle (First In - First Out) is applied throughout the Group.

Expenses for inventories incurred in connection with business activities were expensed during the year in the amount of EUR 210,762 thousand (235,172).

Framework agreements were concluded with suppliers in order to secure favorable purchase prices for the future. Under these agreements, there are obligations for the year 2024 in the amount of EUR 4,482 thousand (4,631), EUR 174 thousand for 2025 and EUR 62 thousand for the years 2026 to 2033 (for the year 2024 EUR 345 thousand; EUR 62 thousand for the years 2025 - 2033).

18 Cash and cash equivalents

In addition to bank balances payable on demand, this item includes checks and cash on hand. Cash and cash equivalents are stated at nominal value. Foreign currency balances are valued at the closing rate on the balance sheet date.

The item cash and cash equivalents includes checks in the amount of EUR 1,446 thousand (1,374), cash on hand in the amount of EUR 149 thousand (86) and bank balances in the amount of EUR 36,563 thousand (24,677).

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 and 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 Assets held for sale

In the 2021 financial year, a former investment property of the subsidiary Uzin Utz United Kingdom Ltd. met the criteria for classification as an asset held for sale. The former employee apartment, which was no longer suitable for use by employees following the relocation of the company's registered office, has so far been rented out.

The disposal of the investment property in fiscal year 2022 resulted in a loss of EUR 8 thousand, which is recognized in the income statement.

20 Equity/treasury shares/Non-controlling interests

Subscribed capital

As of December 31, 2023, the share capital of Uzin Utz SE amounts to EUR 15,133 thousand and is divided into 5,044,319 no-par value bearer shares (ordinary shares) with a pro rata amount of EUR 3. There was no change in the number of shares in circulation compared to January 1, 2023. All shares issued by December 31, 2023 are fully paid up. Each share grants an equal dividend entitlement.

Authorized capital

The Executive Board is authorized, with the approval of the Supervisory Board, to increase the share capital of the Company on one or more occasions on or before May 13, 2024, by up to a total of EUR 3,000 thousand by issuing up to a total of 1,000,000 new no-par value bearer shares with voting rights and a notional value of EUR 3 per share (Authorized Capital I).

The Executive Board is authorized, with the approval of the Supervisory Board, to increase the share capital of the Company on one or more occasions in the period up to May 25, 2026 by up to a total of EUR 4,000 thousand by issuing new no-par value ordinary bearer shares with voting rights (Authorized Capital II).

More detailed information on the capital increase and possible exclusions of subscription rights can be found in the reporting pursuant to Section 315a HGB in the management report.

Capital reserve

Additional paid-in capital includes premiums received from the issue of 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, among other things, a good equity ratio is maintained to support the business and maximize shareholder value.

The Uzin Utz Group fundamentally pursues the goal of sustainably securing its equity base and generating an appropriate return on capital employed. The Group's accounting capital acts as a passive control criterion, while sales and EBIT are used as active control parameters. As of December 31, 2023, the equity ratio was 61.3% (59.1).

Revenue reserve

Retained earnings include the following items:

• The retained earnings of the Group
• Changes in equity due to consolidation and exchange rate effects
• Changeover effects from first-time adoption of IFRS/IAS recognized directly in equity
• Changeover effects not affecting income from the retrospective application of standards
• Effects from cash flow hedges to be recognized directly in equity
• Actuarial gains/losses (from pension obligations) recognized directly in equity

In the consolidated financial statements, assets and liabilities of foreign subsidiaries 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 as of the dates of their respective additions from the Group's 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 May 19, 2020, the Annual General Meeting of the Company authorized the Company to acquire treasury shares up to a total of 10% of the capital stock existing at the time of the resolution for purposes other than trading in treasury shares until May 18, 2025, provided that the shares acquired, together with other treasury shares held by or attributable to the Company, may at no time account for more than 10% of the capital stock. 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 purchased on the stock exchange or by means of a public purchase offer to all shareholders. No treasury shares were held as of December 31, 2023.

Non-controlling interests

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

21 Provisions

In accordance with IAS 37, provisions for present obligations (legal or constructive) are recognized when it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Non-current provisions can therefore be broken down into pension provisions, long-term anniversary provisions and other non-current provisions. Other non-current obligations include obligations from legacy liabilities.

With the exception of the provision for pensions, long-term anniversaries 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 actual 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 anniversary provisions originate primarily from the German companies (Uzin Utz SE, Uzin Utz Tools GmbH & Co. KG, Pallmann GmbH, Codex GmbH & Co. KG and Neopur GmbH) and the Dutch company INTR. B.V.. Employees who have been with the company for 10 years or more are granted an anniversary bonus. In total, the non-current portion of the anniversary provisions of the Uzin Utz Group amounted to EUR 677 thousand (482) in the reporting year.

The other accruals not listed individually were mainly formed for obligations arising from inherited burdens, outstanding bonus credits and accruals for impending losses.

The provisions for personnel costs were essentially formed for vacation arrears, obligations similar to pensions, flexitime credits, bonuses and bonuses.

Since 2010, Uzin Utz SE has paid a fixed demographic amount annually in accordance with the "Collective Agreement on Working Life and Demography" of the chemical industry. In 2023, this was 750 euros per employee (750). The money from the demography fund is used to finance so-called value accounts for participating employees. In addition to the demographic fund and the company's contributions, Uzin Utz SE also encourages employees themselves to save additional credits 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 of EUR 4,512 thousand (4,117) result from this arrangement. There are reimbursement claims in the same amount against an insurance company with which the accumulated credit balances are paid in.

22 Provisions for pensions

In the Uzin Utz Group, the main pension obligations stem 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 presented in section 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

Eligible persons of the Uzin Utz Group are granted pension payments upon reaching retirement age, which is between 65 - 67 years. The amount of payments under the defined benefit plans is based on the remuneration paid to employees, taking into account salary and pension increases, life expectancy and probabilities of leaving the company.

The defined benefit plans are administered by Mensch & Kuhnert GmbH, Blaustein, and Allvisa, Zurich. Due to cost-benefit considerations, the calculation of the pension obligations is carried out 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 a possible insolvency of the insurance company. Such an event is not expected.

The most recent actuarial valuation of the plan assets and the present value of the defined benefit plan was performed by the administering insurance companies as of December 31, 2023. The present value of the defined benefit plans, the current service cost and the past service cost were determined using the projected unit credit method.

In addition to assumptions regarding life expectancy - in Germany according to the so-called Heubeck-Richttafeln 2018 G - 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 occurs.

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 cost, 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 present value of the defined benefit 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 a separate 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

The sensitivity analyses were prepared taking into account the extrapolation of realistic changes in the key assumptions at the end of the reporting period to the defined benefit obligation. These are based on a change in one key assumption, while all other assumptions remain unchanged. The values are based on estimates as it is unlikely that all changes in assumptions will occur. The significant actuarial assumptions used to determine the defined benefit obligation are the discount rate, expected salary increases, and life expectancy.

Allvisa Services 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 7.05% (increase by 8.14%).

If the expected salary increase is 0.5% higher (lower), the defined benefit obligation would increase by 1.12% (decrease by 1.15%).

If life expectancy for men and women increases (decreases) by one year, the defined benefit obligation would increase by 1.52% (decrease by 1.52%).

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 decrease by 0.85% (increase by 6.70%).

If the expected salary increase is 0.5% higher (lower), the defined benefit obligation would increase by 6.62% (decrease by 0.80%).

If life expectancy for men and women increases (decreases) by one year, the defined benefit obligation would increase by 9.22% (decrease by 3.44%).

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 5.90% (increase by 6.40%).

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 0.40%).

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 not expected 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 from each other, as some of the assumptions are interrelated.

The term of the defined benefit obligation as of December 31, 2023 is between 7.0 and 16.0 years.

For the coming financial year, the Group expects to pay an amount of EUR 607 thousand into the defined benefit plan.

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

23 Liabilities

The composition including maturities are shown in the table below.

Financial liabilities

Financial liabilities to banks (including interest rate swaps) amount to EUR 85,435 thousand (89,095) and EUR 13,075 thousand (19,312) are secured by land charges.

Financial liabilities also include liabilities from variable-interest loans in the amount of EUR 3,396 thousand (5,463) and current account liabilities, which are included in the amount of EUR 32,419 thousand (31,077). The existing credit lines permit the borrowing of further funds. These are unused in the amount of EUR 98,176 thousand (99,443) at the end of the reporting period.

Other liabilities

Miscellaneous other liabilities amounting to EUR 7,475 thousand (8,272) mainly comprise accounts receivable with credit balances of EUR 1,879 thousand (2,818).

The amounts are generally current, non-interest-bearing and substantially equal their fair values.

24 Trade payables

Trade payables fell from EUR 18,704 thousand to EUR 15,970 thousand in the past financial year.

Trade payables do not bear interest and are therefore not subject to interest rate risks. Otherwise, the carrying amounts essentially correspond to the amortized cost.