The income statement is classified using the nature of expense method.

1 Sales revenues

Sales are recognized in the regions in which they are actually realized. The regions are therefore to be regarded as the centers of revenue recognition and, in this function, have a significant influence on the type, amount, timing, uncertainties and corresponding cash flows. For this reason, sales are categorized by region.

Further breakdowns of sales can be found in the Group segment report.

2 Other operating income /Income from investment properties

Exchange rate gains resulted primarily from the Swiss franc, the Hungarian forint and the Polish zloty over the course of the year.

The remaining amount is made up of a large number of smaller amounts.

Income from investment property results from the recognition of investment property at fair value based on observable data and unobservable data. In the reporting year, this resulted in income of EUR 0 thousand (284).

3 Cost of materials

4 Personnel expenses / employees

The average number of employees in the Uzin Utz Group during the year was as follows:

The number of employees is calculated taking part-time employees into account on a pro rata basis and therefore does not represent headcount, but rather percentages (full-time equivalents).

There are currently no stock option programs or similar securities-based incentive systems for employees.

5 Other operating expenses

Other operating expenses are mainly composed as shown in the following table.

Other taxes include property taxes, vehicle taxes and other miscellaneous taxes.

Exchange rate losses in 2023 result primarily from the performance of the US dollar, the Swedish krona and the Czech koruna.

Offset against the exchange rate gains (see 2. Other operating income, item exchange rate gains), there was an exchange rate loss of EUR 729 thousand (previous year: exchange rate gain of EUR 775 thousand).

6 Investment accounted for using the equity

P.T. Uzin Utz Indonesia was founded in 2007 and included in the consolidated financial statements at equity for the first time in the 2008 financial year. artiso solutions GmbH has been part of the Uzin Utz Group since 1999 and was consolidated at equity for the first time in the 2014 financial year. The financial statements of artiso solutions GmbH are prepared in accordance with IFRS, while the financial statements of P. T. Uzin Utz Indonesia are prepared in accordance with local law. artiso solutions GmbH is an innovative IT company that develops individual software. P.T. Uzin Utz Indonesia produces and distributes construction chemical products under the UZIN brand.

The carrying amounts of the equity-accounted investment in P.T. Uzin Utz Indonesia and artiso solutions GmbH are as follows in the financial year.

The following tables show the statement of comprehensive income and the balance sheet of the investments accounted for using the equity method for each company.

7 Financial result

Interest in the amount of EUR 547 thousand (30) was recognized as an expense for non-current liabilities to banks in the year under review. In the year under review, EUR 278 thousand in interest was capitalized as part of the production of property, plant and equipment (523).

The weighted average financing cost rate of the capitalized interest amounts to 6.5 % (5.1).

8 Taxes on income/Deferred tax

The reporting of current taxes on income in Germany relates to corporation tax and trade tax. Abroad, these are performance-related taxes determined on the basis of national tax regulations.

The composition of the Group’s tax expense is as follows:

The recognition of deferred taxes was generally based on the tax rate applicable or enacted for the respective company. The combined tax rate of the parent company of 28.4% was used to simplify the calculation of deferred taxes on consolidation measures affecting income. For the calculation of deferred taxes on loss carryforwards, the tax rate of the respective country of domicile of the company was used. Accordingly, when recognizing deferred taxes on loss carryforwards for domestic companies, attributable tax rates of between 12.6% and 14.7% would be used for trade tax (depending on the respective trade tax multipliers) and 15.8% for corporate income tax including solidarity surcharge. Dividends payable in Germany by Uzin Utz SE have no influence on the tax burden of the Group.

The tax expense based on the earnings before taxes on income and the combined tax rate of 30.0% (theoretical tax expense) calculated in simplified form for the companies of the Uzin Utz Group domiciled in Germany is reconciled to the actual tax expense as follows:

The effective tax rate is 27.7% (26.3).

The actual tax expense is EUR 724 thousand below than the expected tax expense that would result from applying the tax rate of the parent company.

The change in deferred taxes resulted in an impact on tax expenses in the financial year of EUR -1,146 thousand
(-1,950).

9 Non-controlling interests

The minority interests in earnings relate to the minority interests of Uzin Utz Magyarország Kft. and Neopur GmbH. The minority interests of these companies are immaterial for Uzin Utz SE, as no more than 20% are held by other shareholders.

In the 2022 financial year, Uzin Utz Nederland B.V. held 70% of COFOBO Holding B.V.. On January 20, 2023, the remaining 30% of COFOBO Holding B.V. was acquired by Uzin Utz Nederland B.V., making Uzin Utz Nederland B.V. the sole shareholder since then. As COFOBO Holding B.V. holds 100% of INTR. B.V., the shareholding of Uzin Utz Nederland B.V. in INTR. B.V. has thus increased to 100%. Until December 31, 2022, 70% of the shares in INTR. B.V. were held by Uzin Utz Nederland B.V. until December 31, 2022.

The following tables contain financial information on the companies in which significant shares were still held by third parties in the previous year. The table therefore only shows the pro rata result of the minority for the previous year.