Uzin Utz SE is a publicly traded Societas Europaea (European public limited company) and the parent company of the Uzin Utz Group, headquartered at Dieselstr. 3, Ulm, Germany. Uzin Utz SE is duly registered under number HRB 745224 in the commercial register of the Ulm Local Court. The Uzin Utz Group's fiscal year aligns with the calendar year.

As a full-service provider to the trades, the Uzin Utz Group is dedicated to meeting the local and international requirements and needs of its customers. The company offers its customers a range of flooring solutions, including construction chemical product systems, surface finishes, and machinery, that it considers unique. The Group's products are developed in-house by its company subsidiaries, and they reflect the high premium standards applied from manufacturing through distribution to the customer.

The consolidated financial statements are prepared in euros. Unless otherwise stated, all amounts are reported in thousands of euros (EUR thousand) and rounded to the nearest thousand. Please note that due to rounding, individual items may not add up exactly to the stated total, and reported percentages may not correspond exactly to the underlying absolute values. Please note that prior-year figures are shown in parentheses.

As of the date of approval of the financial statements, the Management Board believes that the Group has sufficient resources to continue its operations in the foreseeable future. Accordingly, the consolidated financial statements were prepared on a going concern basis.

On March 13, 2026, the Management Board of Uzin Utz SE formally approved the consolidated financial statements and the Group management report for submission to the Supervisory Board. The Supervisory Board is responsible for reviewing the consolidated financial statements and declaring whether it approves them. Approval was granted on March 26, 2026.

Application of the International Financial Reporting Standards

The consolidated financial statements were prepared in accordance with the International Financial Reporting Standards (IFRS) that are mandatory in the European Union as of the balance sheet date, International Accounting Standards (IAS), and the interpretations of the Standing Interpretations Committee (SIC) and the International Financial Reporting Interpretations Committee (IFRIC). They were also prepared in accordance with the supplementary provisions of German commercial law applicable pursuant to Section 315e (1) of the German Commercial Code (HGB).

In fiscal year 2025, the following standards and interpretations which were relevant to the Group's business activities and became mandatory for the first time during the fiscal year were applied in the consolidated financial statements of 
Uzin Utz SE:

The application of the standard and its interpretations will have no material impact on the Uzin Utz Group.

The following standards and interpretations have been issued as of December 31, 2025, but are not yet mandatory for application in the consolidated financial statements of Uzin Utz SE:

To date, the option for early application has not been utilized, and it is not anticipated that it will be used in the future.

IFRS 18, "Presentation and Disclosure in Financial Statements," replaces IAS 1, "Presentation of Financial Statements," and will be mandatory effective January 1, 2027. The following key changes are addressed:

• Restructuring of the income statement. The company has established five clearly defined categories: operating, investment, financing, income taxes, and discontinued operations.
• Addition of the totals and subtotals “Operating income,” “Income before financing and income taxes,” and “Net income” to the income statement.
• The following is a mandatory disclosure of financial performance indicators defined by management that are not defined in accordance with IFRS 18 or other IFRS accounting standards. These indicators are referred to as management-defined performance measures (MPM). These must be disclosed in a separate note to the financial statements.
• Separate disclosure of “goodwill” in the balance sheet.
• Due to the implementation of IFRS 18, adjustments are also necessary in the statement of cash flows under IAS 7. When calculating operating cash flow using the indirect method, operating profit should be used as the base figure going forward. Interest and dividends received are to be allocated to cash flow from investing activities, while interest and dividends paid are to be reported in cash flow from financing activities.

The Group is continuing to closely evaluate and analyze the potential impact of the new standard, particularly with regard to the structure of the consolidated statement of income, the consolidated statement of cash flows, and the additional disclosure requirements for MPMs (management-defined performance measures). Additionally, the Group is examining how potential groupings and the "other" line item affect the presentation of information in the financial statements

All other standards and interpretations published as of December 31, 2025, but not yet applied by the Group in the 2025 fiscal year, are classified as immaterial at the time the consolidated financial statements are prepared.

Consolidation Principles

The consolidated financial statements are based on the financial statements of the subsidiaries included in the Uzin Utz Group. These financial statements have been prepared in accordance with the Uzin Utz Group's uniform accounting and valuation principles. If the financial statements of individual companies prepared in accordance with national laws deviate from these principles, the necessary adjustments are made.

The consolidated financial statements include the financial statements of Uzin Utz SE as well as the financial statements of all significant subsidiaries that are directly or indirectly controlled by Uzin Utz SE. Control exists if Uzin Utz SE can directly or indirectly exercise control over the investee, is exposed to variable returns from its investment, and can influence the amount of those returns due to its control.

Subsidiaries that, due to their minimal business activities, are of minor significance for presenting a true and fair view of the Uzin Utz Group's financial position and results of operations, and whose inclusion cannot be justified in light of the cost-benefit constraint (the so-called "cost-benefit analysis"), are generally included in the consolidated financial statements at cost or lower fair values.

Equity consolidation is performed using the acquisition method in accordance with IFRS 3 Business Combinations. The assets acquired and liabilities assumed in a business combination are initially recognized at their fair values as of the acquisition date, regardless of the extent of any non-controlling interests. Non-controlling interests are measured at the proportionate fair value of the acquired assets and assumed liabilities (partial goodwill method).

The cost of the acquired shares is offset against the Group's share of the subsidiary's equity, which is measured at fair value. Any incidental acquisition costs are recognized immediately as an expense. If a positive difference remains after the offset, it is recognized as goodwill. Negative differences are recognized in profit or loss.

Intra-group business combinations („transactions under common control“) are accounted for using the equity method. Changes in the ownership interest of a subsidiary that do not result in a loss of control are accounted for as equity transactions between equity holders.

The results of the acquired subsidiaries are included in the consolidated statement of income from the date of acquisition, when control is established.

The deconsolidation of a subsidiary occurs when Uzin Utz SE relinquishes its control over the company.

The portion of equity attributable to non-controlling interests is reported in the consolidated financial statements under the equity line item „Non-controlling interests“.

During the consolidation process, all financial transactions and balances between the consolidated entities are eliminated, including expenses, revenues, liabilities, assets, equity, interim gains and losses, and cash flows. In the capital consolidation process under IFRS 10, the cost of the acquired parent company's equity interest is offset against the subsidiary's proportionate equity.

Deferred taxes are recognized for consolidation transactions in accordance with the standards set forth in IAS 12

Consolidation Group

The consolidated financial statements include 30 (30) companies, including Uzin Utz SE.

6 (3) companies are not consolidated due to their minimal significance in presenting a true and fair view of the Group's financial position and results of operations. The total revenue, total assets, and net income of the unconsolidated companies each amount to less than 1.0 % of the corresponding Group figure.

The list of companies included in the consolidated financial statements and of all equity interests is provided in the list of equity interests pursuant to Section 313(2) of the German Commercial Code (HGB) under „Other information“ in the Notes to the Consolidated Financial Statements.

Changes in the Group of consolidated companies

During the 2025 fiscal year, there have been no changes to the scope of consolidation.

Associated companies and jointly controlled companies

Significant companies in which Uzin Utz SE has the ability, directly or indirectly, to significantly influence financial and operational decisions (associates), or in which it shares control, directly or indirectly (joint ventures), are accounted for using the equity method. This possibility generally exists for equity interests between 20.0 % and 49.0 %. Associates and joint ventures of minor significance are generally accounted for at cost or lower fair value.

When applying the equity method, investments in associates or joint ventures are initially recognized in the consolidated balance sheet at cost. Subsequent measurements include adjustments for changes in the Uzin Utz Group's share of equity (net assets) after the acquisition date, as well as for impairment losses. The Group does not recognize losses of an associate or a joint venture that exceed its share in that associate or joint venture. Recognition is only granted if the Group has assumed legal or constructive obligations to absorb losses or has made payments on behalf of the associate or joint venture.

Investments accounted for using the equity method do not incur obligations or risks for the parent company

Currency translation

In the financial statements of the companies included in the consolidated financial statements, foreign currency transactions are translated at the relevant exchange rate as of the date of the transaction. Monetary items denominated in foreign currencies are revalued at the exchange rate prevailing on the balance sheet date, with the resulting exchange gains or losses recognized in the consolidated statement of income under „other operating income“ or „other operating expenses“.

The consolidated financial statements are prepared in euros. The financial statements of the consolidated subsidiaries, which are prepared in foreign currencies, are translated using the functional currency method in accordance with IAS 21 „The Effects of Changes in Foreign Exchange Rates“. Accordingly, all assets and liabilities are translated at the exchange rates prevailing on the balance sheet date, while equity is translated at historical exchange rates. The translation of expenses and revenues in the income statements is performed using annual average exchange rates. It should be noted that any differences arising from currency translation are recognized in other reserves from currency translation. This has no effect on profit or loss.

It was not necessary to adjust the financial reporting in accordance with the provisions of IAS 29 in conjunction with IFRIC 7, as the Uzin Utz Group has no subsidiaries based in countries with high inflation.
 

The exchange rates relevant to the Uzin Utz Group have changed as follows:

Assumptions and estimates

In preparing the consolidated financial statements, management makes judgments, estimates, and assumptions that affect the amount and presentation of recognized assets and liabilities, income and expenses, as well as contingent liabilities and receivables. These assumptions and estimates relate primarily to the Group-wide determination of the economic useful lives of fixed assets, the recognition and measurement of provisions (including for pensions), discount rates, and the recoverability of future tax benefits. The most significant forward-looking assumptions, as well as other major sources of estimation uncertainty existing as of the balance sheet date which give rise to a significant risk that a material adjustment to the carrying amounts of assets and liabilities may be required within the next fiscal years are explained in the respective subsections.

The Group's assumptions and estimates are based on parameters available at the time the consolidated financial statements were prepared. However, it should be noted that assumptions regarding future developments may change due to market movements and conditions beyond the Group's control. Such changes are reflected in the assumptions only once they occur.

It should be noted that actual results may differ from estimates. If actual developments differ from expected developments, the assumptions and - where necessary - the carrying amounts of the relevant assets and liabilities are adjusted accordingly. The assumptions and estimates used when preparing the consolidated financial statements are subject to certain risks, which arise primarily from general macroeconomic developments and geopolitical situations (e.g., in the Middle East).

There are uncertainties associated with the assumptions underlying the calculation of the value in use of the cash-generating units. Specifically, these relate to the estimation of growth assumptions and discount rates. Growth assumptions, and consequently expected revenues, are estimated using historical data and an individual assessment of the respective opportunities in the relevant markets.

It is important to note that fair value is not always available as a market price. The determination of fair value is often made based on various valuation parameters. Depending on the availability of observable parameters and the significance of these parameters for determining fair value as a whole, fair value is classified into Level 1, Level 2, or Level 3.

The classification is based on the following criteria:

• The input parameters for Level 1 are quoted prices (unadjusted) in active markets for identical assets or liabilities to which the entity has access at the measurement date.
• Level 2 input parameters are defined as input parameters that are not included in Level 1. These parameters can be either directly observable for the asset or liability, or can be indirectly derived from other prices.
• The input parameters for Level 3 are those that cannot be observed for the asset or liability.

The Group recognizes reclassifications between different levels of the fair value hierarchy at the end of the reporting period in which the change occurred.

For post-employment benefits, sensitivity analyses were performed by projecting realistic changes in the key assumptions at the end of the reporting period onto the defined benefit obligation. These analyses 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 the assumptions will occur. The defined benefit obligation is determined using key actuarial assumptions, including the discount rate, expected salary increases, and life expectancy.

When determining the lease term, we consider whether there are factors that make exercising the extension option attractive. The lease term is also determined by taking into account the annual planning, which has a five-year planning horizon across the Group.

If the Group is affected by climate-related impacts, these are discussed in the relevant sections of the notes.

Sales revenues

Sales revenues from contracts with customers

The Uzin Utz Group generates revenue through the sale of goods to wholesalers, tradespeople, and contractors, licensing, and the provision of services. Across all revenue types, no financing component is recognized, as there are no payment terms exceeding one year. For this reason, the option under IFRS 15.63 was exercised, allowing the Group to refrain from recognizing a financing component.

The payment terms are subject to the standard terms that apply in the respective countries and generally provide for short payment terms. These payment terms are typically 30, 14, or 10 days, as well as payment upon receipt. For licenses, payment terms may extend up to 120 days. Please note that a legal claim for consideration against the customer only arises after the net payment term has expired. As a result, no discount periods were taken into account when determining the payment terms.

Sales of goods to wholesalers, craftsmen and contractors

The Group specializes in the manufacturing and sale of products and machinery for the installation, renovation, and maintenance of all types of flooring. The products are primarily manufactured for the general market and subsequently sold there. Our clientele includes wholesalers, tradespeople, and commercial contractors.

The point at which control of the goods passes to the customer is crucial for revenue recognition. The transfer of ownership of the goods to the customer occurs upon the completion of delivery, provided that the delivery terms have been met. Upon revenue recognition, a corresponding receivable is recorded.

For international shipments with longer delivery times, the EXW (Ex Works) delivery term is typically used. In the countries where our local subsidiaries are based, we are able to guarantee delivery times of between one and three days. Furthermore, the majority of subsidiaries establish definitive loading or shipping dates. Depending on the subsidiary, the final shipment takes place between one and two weeks before the end of the fiscal year. Due to the aforementioned factors, as of the balance sheet date, if applicable, only goods representing a negligible portion of annual sales are in transit to the customer.

For the remaining subsidiaries, the delivery date listed on the delivery note is the determining factor for revenue recognition. This date is calculated based on the shipping date and takes into account the standard delivery times to customers. The revenue recognition method is generally applicable to short delivery times as well.

In particular, customers with large purchase volumes receive bonuses at the end of the fiscal year based on their total purchase volume during that period. Provisions for bonuses are recognized during the year based on historical data to account for expected bonuses in realized revenue. When determining reported net sales revenue, it is essential to adjust for these provisions. Consequently, sales revenue is recognized in the amount for which it is most likely that no significant cancellation will occur.

License sales revenues

Licensing revenue is generated in the form of usage-based royalties. A license has been granted for the production of contractually specified products. For each product, the agreement stipulates the royalty fee per unit produced. The amount of the quarterly royalties is derived from the volume of production of the respective products, in addition to a contractually agreed minimum amount per quarter in which licensed products are produced. In accordance with the standards outlined in IFRS 15.B63, usage-based license fees must be recognized at the time the license is used. This is applicable when a product for which the license was granted has been produced. The licensee is responsible for reporting the number of products produced per quarter to the Uzin Utz Group, and the Uzin Utz Group verifies the report's plausibility. This is done by comparing the quantity of premixes and raw materials purchased from the Uzin Utz Group by the licensee to the amount required for the production of the licensed products. Subsequently, license revenue is recognized based on the production volumes reported by the licensee.

Provision of services

The Group's services include the maintenance and repair of machines used for floor covering removal, floor covering installation, and subfloor preparation. These are one-time services. The Group's performance is considered complete once the maintenance has been performed or the machine has been repaired. At that point, revenue is recognized and a receivable is recorded. In addition to providing maintenance and repair services for machines, several national subsidiaries offer construction site services, including the installation of new flooring. In such cases, the determination is made regarding the provision of performance over a specified timeframe. This would require determining, as of the reporting dates, which portion of the performance obligation has already been fulfilled and, consequently, which portion of revenue has been recognized. In the case of services on construction sites, the work performed to date can be used to determine the extent to which the service obligation has already been fulfilled and the amount of revenue to be recognized as of the reporting date. This assertion is further substantiated by the confirmation from the project manager on the customer's side. Revenue is recognized only after the customer has accepted the project and confirmed the complete delivery of the service. As of December 31, 2025, there were no outstanding service projects.

Contract assets

A contractual asset is a legal right to consideration in exchange for goods or services transferred to a customer, provided that this right is not based solely on the passage of time. Contractual assets exist when the fulfillment of one performance obligation is not sufficient to establish a legal right, but rather another performance obligation must first be fulfilled.

Contract liabilities

A contract liability is defined as an entity's obligation to transfer goods or services to a customer for which it has already received consideration. In the Uzin Utz Group, contract liabilities are typically in the form of advance payments received on orders. As of the end of the 2025 fiscal year, contract liabilities amounted to EUR 15 thousand (113). Of the EUR 113 thousand reported under contract liabilities at the beginning of the fiscal year, EUR 120 thousand (122) was recognized as revenue in 2025. There was no significant difference resulting from exchange rate effects. The period between receipt of the advance payment and delivery of the service averages 1.4 days (2.0) in the Uzin Utz Group. Similarly, the proportion of "prepayment" terms relative to total revenue influences the amount of advance payments received on orders and thus the contract liabilities. In 2025, prepayment terms were used for 0.9 % (1.0) of the Uzin Utz Group's revenue.

As permitted under IFRS 15, no disclosures are provided regarding the remaining performance obligations as of December 31, 2025, that have an expected initial term of one year or less.

Research and development costs

According to IAS 38, research costs are not capitalizable. It is standard business practice to recognize costs associated with research activities as expenses in the period in which they are incurred. An internally generated intangible asset resulting from development activities or the development phase is capitalized if it meets specific, clearly defined criteria. Capitalization is therefore required whenever the development activity is expected to generate future economic benefits and cash inflows that, in addition to covering normal costs, also cover the corresponding development costs. Furthermore, a series of criteria must be met in their totality with respect to the development project or the project or process to be developed.

The Uzin Utz Group generally does not encounter these conditions, as the inherent risks of research and development, in terms of both function and economy, typically only allow for reliable assessment of products in development after a certain point, when

• the development of the relevant products or processes has been finalized and
• once the development phase is complete, the products will be presented to demonstrate that they meet the technical and economic requirements of the market.

The Group's research and development expenses in 2025 amounted to EUR 15,288 thousand (14,599).

Taxes

Income taxes include both current and deferred taxes, and are recognized in the income statement. Additionally, deferred taxes are recognized in other comprehensive income, provided they relate to items that are recognized directly in other comprehensive income.

The current income taxes reported relate to domestic corporate income tax and trade tax. For foreign subsidiaries, these taxes are based on taxable income, calculated in accordance with the national tax regulations applicable to each individual company.

Current and prior-period tax refund claims and tax liabilities are measured at the amount expected to be received from or paid to the tax authorities. Estimated tax payments and refunds are calculated based on the tax rates and tax laws in effect as of the balance sheet date.

Deferred taxes are recognized using the liability method. This method is based on temporary and quasi-temporary differences existing as of the balance sheet date. These differences are between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, in accordance with IAS 12.21, no deferred taxes are recognized for goodwill that cannot be amortized for tax purposes.

Furthermore, for all deductible temporary differences, deferred taxes are recognized to the extent that it is probable that taxable income will be available in the next five years. In this period, the deductible temporary differences and unused tax loss carryforwards and tax credits can be utilized.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and written down to the extent that it is not sufficiently probable that the expected benefits from the tax loss carryforwards will be realized. The assessment made in this regard may change over time, which may result in a reversal of the valuation allowance in subsequent periods.

Deferred taxes are measured using the tax rates that are expected to be in effect under applicable law at the time when the temporary differences are expected to reverse or when the tax loss carryforwards are expected to be utilized.

Deferred tax assets and deferred tax liabilities are offset in accordance with IAS 12 if the Group has a legally enforceable right to offset current tax refund claims against current tax liabilities. These claims must relate to income taxes of the same taxable entity levied by the same tax authority.

Intangible assets

Intangible assets are capitalized at cost upon initial recognition, including incidental acquisition costs. Amortization commences when the asset is prepared for its intended use. Depreciation is calculated on a straight-line basis over the estimated useful life and is reported under the item "Depreciation" in the statement of comprehensive income. The useful life for industrial property rights, licenses, and product know-how is a maximum of 20 years. The useful life for software is typically between three and five years.

The costs associated with acquiring new software and implementing it are capitalized and amortized over their expected useful life, which is estimated to be three to five years.

Intangible assets are derecognized upon disposal. Any gains or losses resulting from the disposal are recognized in profit or loss in the period of disposal.

Goodwill

Goodwill arising from a business combination is defined as the excess of the acquisition cost over the acquirer's share of the fair values of the acquiree's identifiable assets, liabilities, and contingent liabilities. In accordance with IAS 36, goodwill is not amortized on a straight-line basis. Rather, it is written down only if an impairment loss is identified. For the purposes of the impairment test, goodwill is generally allocated to cash-generating units. These units represent the lowest levels within the entity at which goodwill is monitored internally for management purposes. They are no larger than an operating segment as defined in IFRS 8.

Property, plant and equipment

Depreciable property, plant, and equipment are stated at cost less accumulated depreciation and recognized impairment losses. Production costs are determined based on directly attributable direct costs and an appropriate allocation of overhead costs. Acquisition costs include the purchase price, any import duties, and non-refundable acquisition taxes incurred in connection with the purchase. They also include all directly attributable costs to bring the asset to a condition ready for use and to its initial location. Rebates, discounts, and similar reductions in acquisition costs are deducted.

Assets under construction are recognized at cost, less any recognized impairment losses. The cost includes payments for external services and, in the case of qualifying assets, borrowing costs that are capitalized. Upon completion and when the assets are ready for use, they are classified into the appropriate category within property, plant, and equipment. The depreciation of these qualifying assets commences at the same time as for other property, plant, and equipment once the assets reach the operational stage.

Depreciation is typically calculated on a straight-line basis over the estimated useful life of the asset. The following values serve as guidelines for determining the useful life.

Land and construction-in-progress are not depreciated on a straight-line basis.

Property, plant, and equipment are written off upon disposal.

Any gains or losses resulting from the disposal are recognized in income for the period in which the disposal occurs.

Impairment

The carrying amounts of the Uzin Utz Group's assets, with the exception of investment properties, deferred tax assets, and financial assets with financing characteristics, are reviewed as of the balance sheet date to determine whether there are any indicators of impairment. The carrying amounts of goodwill and non-depreciable intangible assets must be tested for impairment at least once a year. In addition, in accordance with IAS 36.9 in conjunction with IAS 36.12, they must be tested for impairment at each reporting date based on specific indicators (triggering events). In the event that there are indications of a potential impairment to the asset, an event-driven impairment test must be conducted in addition to the mandatory annual test.

As part of the impairment test, the carrying amount of an asset is compared with its recoverable amount. This comparison is used to assess whether the asset is impaired.

The recoverable amount is defined as the higher of the net selling price and the value in use. The net selling price is the amount that can be obtained from the sale of an asset under normal market conditions, less the costs of disposal. The value in use is calculated as the present value of estimated future cash flows from the continued use of the cash-generating units, discounted to a perpetual annuity.

If the recoverable amount is less than the carrying amount, an impairment loss equal to the difference must be recognized in profit or loss. If goodwill has been allocated to the cash-generating unit, it must be written down first. The carrying amounts of the individual assets of the cash-generating unit are amortized proportionately based on their carrying amounts by the amortization amount or remaining amortization amount (in the case of allocated goodwill). This process reduces the balance sheet items. If the reason for an impairment recognized in prior years no longer exists, a reversal of the impairment is recognized - with the exception of goodwill - up to a maximum of amortized cost.

Due to existing synergies and thus non-independent cash flows, the recoverable amount for the Uzin Utz Group is determined on the basis of cash-generating units. The cash-generating units generally correspond to the legal entities included in the consolidated financial statements. For the Uzin Utz Group, the recoverable amount corresponds to the value in use, which is determined using the discounted cash flow method. The determination of future cash flows is made using data from the detailed business plans for each individual cash-generating unit. These business plans are developed over a five-year period of detailed planning. Following this five-year planning period, a transition to a perpetual annuity is made.

The forecasts - regarding market potential and purchasing behavior - are updated based on past business performance and expected future developments.

Given the current macroeconomic conditions, these estimates are subject to increased uncertainty. If these assumptions and estimates prove inaccurate, it could result in future impairment charges for individual cash-generating units.

For the past fiscal year, the Uzin Utz Group performed impairment tests in accordance with IAS 36 based on the value in use of cash-generating units as of September 30, 2025, for goodwill. According to the parameters as of September 30, 2025, the cash-generating units have risk-equivalent capitalization rates ranging from 8.7% (9.8%) to 12.3% (14.6%). The capitalization rate is based on the assumption of a constant growth rate of 1.0% (1.0). The basis for calculating the discount rates is a beta factor of 1.0 (1.0). Please note that these rates are pre-tax. The prior-year figures were also reported as of September 30, 2024, since no "triggering events" occurred in 2024 in accordance with IAS 36.9. For cash-generating units where the impairment test results in a need for impairment, an update is performed as of December 31, 2025. For the 2025 reporting year, no indications of impairment were identified for the cash-generating units. Additionally, there were no "triggering events" that would have necessitated a revaluation. Consequently, there was no need to update the impairment tests as of December 31, 2025.

Investment Properties

According to the standards outlined in IAS 40.5, investment properties are defined as assets that are owned with the primary objective of generating income through rental revenue and/or capital appreciation. These properties are recognized at cost, including transaction costs, upon acquisition. The Uzin Utz Group has adopted the fair value model for all subsequent measurements. Significant changes in fair value result in the recognition of gains and losses in the profit or loss.

An investment property is derecognized upon disposal. Gains and losses resulting from the derecognition of an investment property are recognized as income or expense on the income statement.

Financial instruments

According to the principles of „IFRS 9 Financial Instruments“, financial assets, financial liabilities, and certain contracts to buy or sell non-financial items must be measured.

Financial instruments are defined as contracts that result in a financial asset for one entity and, at the same time, a financial liability or an equity instrument for the other. These include primary financial instruments (e.g., trade receivables or trade payables), derivative financial instruments (e.g., forward contracts to hedge against changes in value), and derivative financial instruments within a hedging relationship (e.g., forward foreign exchange purchases or sales for foreign currency liabilities).

Financial assets and financial liabilities are typically reported on an off-balance-sheet basis. Offsetting is only permitted under certain conditions: there must be a legal right to offset, and the entity must intend to settle on a net basis.

Classification and measurement of financial assets

Within the Uzin Utz Group, financial assets are primarily recognized in the form of trade receivables, which continue to be measured at amortized cost provided that the business model (holding) and cash flow criteria are met. The same applies to trade payables and other liabilities. In the event of a reclassification, all affected assets must be adjusted on the first day of the reporting period following the change in the business model.

Income from financial assets is recognized using the effective interest method. This exclusion applies to instruments classified as measured at fair value through profit or loss.

Depreciation in value

According to IFRS 9, an impairment model is required that is designed to provide adequate risk coverage to account for expected losses.

According to the Uzin Utz Group's accounting procedures, the impairment model under IFRS 9 is only applicable to trade receivables. The Uzin Utz Group has no financial guarantees or contract assets under IFRS 15 that fall within the scope of IFRS 9. Typically, lease receivables within the Uzin Utz Group are short-term in nature. These are tested for individual impairment as needed. All other financial assets measured at amortized cost are subject to the general impairment model of IFRS 9. However, the Group does not anticipate any substantial credit losses from these financial assets during the specified periods.

Impairment losses in accordance with IFRS 9 are reported in the statement of comprehensive income under the heading „Other operating expenses“.

Trade receivables in the Uzin Utz Group are short-term in nature and therefore do not include a significant interest component. As a result, they are measured using the simplified impairment model (IFRS 9.5.5.15 et seq.). Under this streamlined approach, changes in credit risk do not require tracking. For credit risks, an individual impairment is recognized - if necessary. Potential risks associated with loan commitments are explained in more detail under "Credit Risks or Default Risks." Instead, a provision for credit losses equal to the expected default risks is recognized both upon initial recognition and at each subsequent reporting date.

Explanations regarding the impairment matrix and the associated default risks in accordance with IFRS 9 can also be found under the heading „Credit Risks & Default Risks“.

The general impairment model under IFRS 9 applies to all other financial assets measured at amortized cost. Given that the counterparties' default risks are commensurate with initial expectations and none of the parties is in arrears with payments, the Group does not foresee any substantial credit losses from these financial assets over the specified periods. For this reason, the Group has not recognized separate impairment losses due to materiality.

Further details on financial risk management can be found in the relevant section of the Notes to the Consolidated Financial Statements and in the risk reporting section of the consolidated management report.

IAS 36, on the other hand, governs the accounting for impairment of assets. The Group's primary responsibility is to assess whether the carrying amount of an asset exceeds its fair value. They also determine the impact of asset write-ups or write-downs on the statement of comprehensive income.

For a financial asset or a group of financial assets, an impairment loss may be required as part of the impairment test. The minimum set of factors used to assess whether impairment is likely is set forth in IAS 36.12 a) – g). At each balance sheet date, an entity must assess whether there is objective evidence of impairment.

If there is an indication that an asset may be impaired, the recoverable amount of the asset must be estimated (IAS 36.9).

According to IAS 36.18, the recoverable amount for an asset is defined as the higher of two values: the asset's fair value less costs to sell and its value in use. If either of these amounts exceeds the asset's carrying amount, the asset is not considered impaired (IAS 36.19).

If fair value less costs to sell cannot be determined, the recoverable amount is the asset's value in use (IAS 36.20). For assets held for sale that do not show significant overvaluation compared to fair value less selling costs, the recoverable amount may be determined as fair value less selling costs (IAS 36.21).

Financial assets are derecognized when the contractual rights to payments from the financial assets expire or when the financial assets are transferred along with all significant risks and rewards. Financial liabilities are derecognized as soon as the contractual obligations are settled, canceled, or have expired.

An impairment loss is recognized for a financial asset when, based on a reasonable assessment, the Group does not expect the financial asset to be recoverable in whole or in part. Accordingly, a decision is made regarding the timing and amount of the impairment loss.

Indicators that outstanding receivables will be written off in part or in full include, for example, situations where their collection is considered unlikely. This may be the case if the customer's insolvency proceedings have been concluded or if all options for collecting the receivables have been exhausted.

All identifiable default risks are always adequately accounted for.

Net gains and losses primarily consist of impairment and foreign currency translation effects, which are recognized in operating income. They also consist of interest expense and income, which are recognized in financial income.

Other financial assets

Other financial assets include, among other things, shares in unconsolidated subsidiaries, investments not included in the consolidated financial statements, other loans, long-term securities, and short-term derivative financial instruments.

For additional information on valuation, please refer to the „Other Information“ section of the Notes to the Consolidated Financial Statements under Financial Risk Management and Derivative Financial Instruments. The companies and investments are generally carried at cost or at lower fair value.

Investments accounted for using the equity method

The valuation of investments accounted for using the equity method is governed by IAS 28, „Investments in Associates and Joint Ventures“.

Inventories

Inventories are valued at the lower of cost and net realizable value. The cost of raw materials, supplies, and merchandise is determined using the FIFO method (first-in, first-out).

In accordance with IAS 2 "Inventories," the cost of work in progress and finished goods includes - in addition to raw materials and labor costs - a proportionate share of material and manufacturing overhead costs. These overhead costs are based on the assumption of normal capacity utilization, including depreciation of manufacturing equipment and manufacturing-related payroll expenses. Interest on borrowings is not capitalized in inventories.

Write-downs for significant inventory risks are recognized to an appropriate and sufficient extent. The principle of loss-free valuation is always observed.

Trade receivables

Trade receivables are measured and recognized at fair value plus directly attributable transaction costs. Subsequent measurement is based on their classification in the „amortized cost“ measurement category, using the effective interest method.

Impairments are taken into account in accordance with the standards set forth in IFRS 9. For more information, please refer to the section titled “Impairment”.

Other non-financial assets

Non-financial assets are measured and recognized at par value, amortized cost, or lower fair value. These include, among other things, long-term and short-term receivables from the tax authorities.

Cash and cash equivalents

This line item encompasses cash on hand, bank balances, and checks. Cash on hand and bank balances are classified under the "amortized cost" measurement category in accordance with IFRS 9. These assets are measured at fair value upon initial recognition, including directly attributable transaction costs. Subsequent measurements are performed at amortized cost using the effective interest method. Foreign currency holdings are measured at the exchange rate that was in effect on the balance sheet date.

Financial liabilities

The primary financial instruments reported under this line item include financial liabilities to banks and derivative financial instruments. According to IFRS 9, primary financial liabilities are to be recognized at fair value upon initial recognition. For financial liabilities not measured at fair value through profit or loss, directly attributable transaction costs are taken into account. In subsequent periods, these are measured at amortized cost using the effective interest method.

Derivative financial instruments and hedge accounting

In accordance with the option provided, hedging relationships continue to be measured in accordance with IAS 39 even after the adoption of IFRS 9. The Group enters into derivative financial instruments solely as hedging instruments. These hedging transactions are used to manage interest rate and currency fluctuations, thereby reducing earnings volatility. The company does not hold any derivatives for trading purposes. Derivatives that do not meet the requirements of IAS 39 for the accounting of hedging relationships must be classified as "financial instruments held for trading." Derivative financial instruments are classified as financial assets if their fair value is positive and as financial liabilities if their fair value is negative. Derivative transactions are initially recognized at their cost, which generally corresponds to their fair value. In subsequent years, they are measured at fair value. Gains and losses from changes in the fair value of the “financial instruments held for trading” category are recognized immediately in the profit or loss section of the financial statement.

Hedging relationships that meet the requirements of IAS 39 for hedge accounting are classified as cash flow hedges. These hedges mitigate the risk of fluctuations in cash flows arising from a future transaction that is highly probable to occur. Gains and losses resulting from the effective cash flow hedge are recognized in other comprehensive income, with consideration given to deferred tax effects. In the event that gains and losses result from ineffective portions of the hedging transaction, they are to be recognized in the statement of comprehensive income or “recycled”.

The reversal is recognized in the consolidated statement of comprehensive income during the period in which the hedged item is recognized in profit or loss, or when the occurrence of the hedged item is no longer expected.

Leasing

According to IFRS 16, a lease is defined as a contract whereby a lessor grants the lessee the right to control the use of an identified asset for a specified period in exchange for consideration from the lessor. Lessees are required to generally account for all leases as financing transactions in the form of a right-of-use asset and a corresponding lease liability.

To determine the liability to be recognized, the payments to be made over the term of the contract are discounted at the beginning of the contract term. In the event that no interest rate can be determined based on the contract, the incremental borrowing rate is used for discounting. At the same time that the liability is recognized, the so-called right-of-use is capitalized. The basis for the amount to be capitalized is the present value of the payments to be made over the term of the contract. Furthermore, costs that can be directly attributed to the contract are included in the right-of-use asset. After an asset is initially recognized on the balance sheet, the liability is settled through lease payments. The capitalized right-of-use asset is then depreciated on a straight-line basis. Typically, the depreciation period is determined by the contract term. The useful life of the leased asset will be determined by the purchase option that will most likely be exercised upon expiration of the lease agreement. Should adjustments be made to existing lease agreements for example, extending the term or increasing the lease payment the liability and the right-of-use asset will be adjusted accordingly. To do so, the payments to be made from the date of the change are discounted and compared with the liability existing immediately prior to the change. Depending on whether the contract change results in a reduction or an increase in the liability, the right-of-use asset is adjusted accordingly.

Future increases in the lease payment resulting from changes in an index, as specified in the lease agreement, are not taken into account when recognizing the liability and the right-of-use asset. The right-of-use asset and the lease liability are adjusted only after the relevant index has changed. Therefore, the lease payment in effect at the time of initial recognition of the lease agreement is the determining factor.

The Uzin Utz Group has elected to exercise the option available for leases of low value or short duration (up to twelve months) not to recognize these leases on the balance sheet. Payments for these leases are recognized in full as expenses in the statement of comprehensive income. No other options related to IFRS 16 are exercised.

The Group also acts as a lessor. Please refer to the “Other Information” section of the consolidated notes under “The Group as a Lessor” for more information.

Provisions

In accordance with IAS 37, „Provisions, Contingent Liabilities, and Contingent Assets“, provisions are recognized when the Group has a present obligation (whether legal or constructive) arising from a past event, and it is probable that the settlement of this obligation will result in an outflow of resources, and a reliable estimate of the amount of the provision can be made. Long-term provisions should be discounted if the interest effect resulting from the discounting is material.

For defined-benefit plans, the costs of providing benefits are determined using the projected unit credit method, with an actuarial valuation performed at each reporting date. Revaluations recognized in other comprehensive income are included in retained earnings and are not reclassified to the statement of comprehensive income. The recognition of past service costs as an expense occurs when the plan amendment takes effect.

Net interest is calculated by multiplying the discount rate by the net liability (pension obligation minus plan assets) or by the net asset value, which applies if the plan assets exceed the pension obligation. The following components comprise defined benefit costs:

• Service cost (including current service cost, past service cost and any gains or losses from a plan amendment or curtailment)
• Net interest expense or income on the net debt or net asset value
• Remeasurement of the net liability or net asset value

The Uzin Utz Group reports the first two components in the statement of comprehensive income under the item "Personnel expenses." Gains or losses resulting from plan curtailments are recognized as past service costs. The defined benefit obligation reflected in the consolidated balance sheet indicates the current underfunding or overfunding status of the Uzin Utz Group's defined benefit pension plans. Any surplus resulting from this calculation is limited to the present value of future economic benefits available in the form of refunds from the plans or reduced future contributions to the plans.

Payments for defined-contribution pension plans are recognized as an expense when employees have rendered the service that entitles them to the contributions.

The accounting for pension-like obligations of foreign companies is performed in the same manner.

Trade accounts payable

Trade payables are initially recognized at fair value plus directly attributable transaction costs. Subsequent measurement is based on their classification in the “amortized cost” measurement category, using the effective interest method.

Borrowing costs

Borrowing costs that are directly attributable to the acquisition, construction, or production of qualifying assets (assets that require a substantial period of time to bring them to their intended usable or saleable condition) are capitalized in accordance with IAS 23 up to the point at which the assets are substantially ready for their intended use. Income generated from the temporary investment of borrowings is specifically raised for expenditure on qualifying assets, and is deducted from the capitalizable costs of those assets.

All other borrowing costs are recognized in income in the period in which they are incurred.

Government grants

The Uzin Utz Group recognizes government grants in accordance with IAS 20, "Accounting for Government Grants and Disclosure of Government Assistance," only if there is reasonable assurance that the Group will comply with the conditions attached to the grants and that the grants will actually be awarded. The grants are recognized in profit or loss in the periods in which the corresponding expenses are incurred, which are intended to offset the government grants.

The Group has received government grants. One of the grants from 2015 totals EUR 289 thousand. The allocation of this grant is contingent upon the operation of a manufacturing company on the property for a minimum of 15 consecutive years. The production facility commenced operations in mid-2015.

In addition, in 2021 the Group was granted a subsidy of approximately EUR 441 thousand for a plot of land on which an additional production facility is being built. Following the completion of the construction project, the subsidy has been properly accounted for on the balance sheet under „Property, plant, and equipment“. The subsidy was granted on the condition that the relevant property be purchased by February 8, 2021. In addition to this grant, there are further grants totaling approximately EUR 1,324 thousand that are subject to additional conditions. The investment requirements for this project are a minimum of EUR 17,226 thousand in real estate, a minimum of EUR 8,415 thousand in personal property, an occupancy certificate for a facility with at least 125,000 m² of space and the creation of 42 jobs by December 31, 2024, with the location of these jobs to be specified in 2023, the U.S. company received the occupancy certificate, thereby fulfilling this condition. As all conditions were met by December 31, 2024, the remaining grants are recognized on a pro rata basis as other operating income. In 2025, the income amounted to EUR 220 thousand. Additionally, a receivable of EUR 91 thousand for the reimbursement of property tax was recognized on the balance sheet.

Additionally, the Uzin Utz Group received research grants totaling EUR 309 thousand for the development of new products, which were recognized as other operating income.

Contingent liabilities and contingent assets

Contingent liabilities are not reflected in the balance sheet. These are detailed in the notes to the financial statements, unless the likelihood of an outflow of resources that could potentially yield economic benefits is deemed minimal. Contingent assets are not recognized on the balance sheet. These are disclosed in the notes to the financial statements if an inflow of economic benefits is probable.