As already described in the section "Internal control system", the following key performance indicators are used in the Group's financial reporting for the purpose of managing the Group:

Financial performance indicators

The following key figures were recorded for the Group in the reporting year:

As reported in the 2023 half-year report, we were unable to maintain the moderate increase in sales forecast in the 2022 annual report. While slight sales growth of 4.2% was still achieved in the first quarter, the challenges posed by the decline in construction output in all countries defined as core markets and in the growth market of France increased over the course of the year. Nevertheless, as expected at the half-year stage, the financial year was able to build on the previous year's high level with a decline of 1.6% compared to the previous year. Details on the analysis of sales can be found in the earnings situation section.

In the 2022 Group management report, a moderate decline in EBIT was forecast for 2023. One reason for this expectation was the increase in depreciation and amortization as a result of increased investment activity in the 2022 and 2021 financial years. In addition, rising personnel expenses and higher other operating expenses were expected. EBIT fell from EUR 36,341 thousand to EUR 34,505 thousand, which corresponds to a reduction of 5.1% and therefore a slight decline. The earnings-reducing effect of depreciation and amortization was at the planned level, but the increase in personnel expenses was less pronounced than assumed in the planning, as some of the originally planned new hires were postponed due to the challenges on the sales side. Contrary to expectations, there was a reduction in other operating expenses. This was mainly due to outgoing freight, the development of which is influenced by the sales trend. As sales stagnated instead of growing moderately as originally forecast, lower volumes were shipped, resulting in lower outgoing freight costs. In addition, the transport market eased in the 2023 financial year after prolonged uncertainties, which improved freight prices. As a result, EBIT fell less sharply than expected. Further details on the analysis of the earnings performance can be found in the Earnings situation section.

As EBIT only fell slightly despite sales remaining the same, the EBIT margin recorded a slight decrease of 3.5% in the reporting year instead of the expected moderate decline.

As forecast in the 2022 Annual Report, cash flow from operating activities recorded a strong increase. As expected, the improvement was achieved through the reduction in inventories, which was possible thanks to the easing on the procurement markets and the resulting improvement in the availability of materials.

The return on equity fell moderately in the reporting year, as forecast. The decrease of 2.1 percentage points resulted from both the decline in EBIT and the increase in the equity base compared to the previous year.

Contrary to the forecast of a slight fall in the equity ratio in the last Group management report, the equity ratio increased slightly to 61.3% (59.1). Liabilities increased less than expected, while equity increased more strongly. While equity benefited from a result that was higher than expected, borrowed capital rose less sharply due to lower investment activity in view of the economic uncertainties.

In addition to financial performance indicators, the Group also uses non-financial performance indicators.

Non-financial performance indicators

The non-financial performance indicators in the Group were as follows:

The production volumes of the Uzin Utz Group fell in 2023 as a result of lower sales volumes and the reduction in inventories of finished and unfinished products. In addition, the commissioning of the new dry mortar plant in Waco in particular led to an increase in capacity. Accordingly, capacity utilization fell slightly in the reporting year, as forecast in the 2022 Group management report.

The proportion of new products fell from 34.0% to 28.5% in the reporting year and thus recorded a moderate decline as expected. This is mainly due to high-turnover products from the dry mortar and liquid sectors that were launched more than five years ago and were therefore excluded from the counter in the reporting year.

At 95.1% (94.4), the health rate within the Group remained at the previous year's level and is therefore in line with our forecast from the previous year, which assumed no significant change. The health ratio therefore remains at a very high level.