GROUP INTERIM REPORT

FOR THE FIRST SIX MONTHS OF 2021

The Group at a glance

Jan 01 -

Jan 01 -

June 30, 2021

June 30, 2020

Change

Change

Sales revenues

221,667

186,896

34,771

18.6%

Sales revenues -

national

83,125

74,447

8,678

11.7%

Sales revenues -

abroad

138,542

112,449

26,092

23.2%

Operating Income

(EBIT)

28,991

15,453

13,538

87.6%

EBIT margin

13.1%

8.3%

Investments at the

end of the second

quarter

9,036

4,937

4,099

83.0%

Employees (average,

full-time equivalent,

exclusive appren-

1,370

1,326

44

3.3%

tices)

Personnel expenses

54,524

50,116

4,408

8.8%

The reporting is in KEUR, according to IFRS, unaudited. This may result in rounding differences in the addition, as the calculation of the individual items is based on figures in EUR.

Interim Management Report

General economic conditions

Macroeconomic activity fell by 1.8% in the first three months of 2021 compared to the previous quarter. The strong recovery of the German economy from the first corona wave thus experienced a temporary slowdown.

The decisive reason for this was the decline in value creation in the construction industry. Furthermore, trade and contact-intensive service companies also had to contend with losses due to closures.

Since the end of April, the situation with regard to infections with COVID-19 has improved significantly and there has been a clear improvement in vaccination numbers. Trade has gained strength thanks to infection control measures and people's mobility has also increased significantly, which is also driving consumption. The gross domestic product in the second quarter of 2021 increased by 1.5% (adjusted for price, seasonal and calendar effects) compared to the first quarter of 2021.

In retail trade excluding motor vehicles, sales rose again. In May, they increased by 4.2% compared to the previous month. The main reasons for this growth are the improvement in the pandemic and the associated easing. The retail trade with non-food products recorded a significant increase in turnover of 6.7% compared to the previous month.

The growing lack of building materials, in contrast, has clearly worsened at the end of the first half of the year. The supply of raw materials is a cause for concern due to the massive increase in energy and raw material prices. In addition, supply bottlenecks and delays are slowing down the recovery of the overall economy.

Development within the sector

Despite the decline in the ifo Business Climate Index (from the Leibniz Institute for Economic Research at the University of Munich, one of the most important early indicators for the development of the German economy), the business situation in the construction industry has im- proved. According to the Federal Statistical Office in Wiesbaden, the construction industry recorded an increase in new orders of 8.4% in May compared to the same month of the previous year (real, calendar and seasonally adjusted). Compared to the previous month of April, incoming orders fell by 1.3% (real, calendar and seasonally adjusted).

Companies in the main construction sector were more satisfied with their current situation and the expectations indicator rose for the third time in a row.

In contrast, however, the index in the manufacturing sector de- clined. The reason for this decrease was the less optimistic expectations of the companies. Capacity utilisation shows an increase from

2

3

85.9% to 87.1%. Problems, though, are the shortage of intermediate products and the shortage of skilled workers.

In the meantime, the situation regarding material shortages in the construction industry has dramatically worsened. Limited availability of raw materials and longer delivery times are putting pressure on building material producers. The problems range from a lack of raw mate- rials, production bottlenecks, a shortage of freight containers to a lack of packaging material.

The business situation in the service sector also worsened. Service providers were more satisfied with their current business, but less optimistic about the coming months.

In trade, the index has also fallen. Supply bottlenecks are also a major problem in the trade sector.

Profit situation, capital status and financial situation

Numbers related to previous year in brackets

Profit situation

The Uzin Utz Group had a very successful first half of 2021.

In the first half of 2021, the Group achieved revenues of EUR 221.7 million (186.9). The foreign share rose by 2.3 percentage points to 62.5% (60.2).

The Earnings before interests and taxes (EBIT) of EUR 29.0 million (15.5) increased strongly compared to the previous year's result.

Earnings before taxes (EBT) were also significantly higher than the previous year at EUR 28.4 million (14.6).

Consolidated earnings after taxes increased markedly to EUR 20.5 million (10.2).

The Group's material usage ratio of 43.1% (43.1%) corresponds exactly to the previous year's level.

The depreciation volume increased to EUR 7.6 million (7.2). Other operating expenses increased from EUR 35.2 million in the

previous year to EUR 37.4 million in 2021.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) of EUR 36.6 million were EUR 14.0 million higher than in the same period of the previous year (22.7).

The financial result of EUR -0.6 million was EUR 0.2 million above the previous year (-0.8).

Employees

In the first half of 2021, the average number of employees increased from 1,326 to 1,370 compared to the previous year. In addition, an average of 43 young people were given an apprenticeship (50). The personnel cost ratio fell by 2.2 percentage points from 26.8% to 24.6%. In absolute terms, personnel costs rose by around EUR 4.4 million from EUR 50.1 million to EUR 54.5 million.

Capital status

For better comparability all previous year's figures refer to the balance sheet at the due date June 30, 2020.

The balance sheet total increased by EUR 18.9 million to EUR 348.9 million (330.0).

The share of Group fixed assets declined from 56.3% to 54.6%, the remaining assets thus correspond to 45.4% (43.7) of the balance sheet total.

Receivables from customers rose from EUR 46.6 million to EUR 55.2 million .

Inventories increased by EUR 1.6 million from EUR 52.8 million to EUR 54.5 million.

With the exception of investment property, all assets are still operationally necessary.

Cash and cash equivalents increased by EUR 4.4 million from EUR 30.5 million to EUR 34.8 million.

Financial position

The equity amounts to EUR 204.0 million (174.4) and, with a share of 58.5% (52.8) of the balance sheet total, continues to be well above the industry average.

Current financial liabilities fell by a total of EUR 17.0 million to EUR 18.3 million (35.3).

Trade payables increased from EUR 15.0 million to EUR 24.4 mil-

lion.

Current provisions grew by a total of EUR 4.6 million to EUR 26.1 million (21.5).

The share of current liabilities in the balance sheet total fell from 25.5% in the previous year to 24.7% in 2021.

The share of long-term liabilities in the balance sheet total also fell to 16.9% (21.7) and amounted to EUR 58.8 million after EUR 71.5 million in the previous year.

Forecast

The vaccination steps against Covid-19 are gradually bringing about a removal of the existing economic restrictions. By the end of 2021, this will lead to economic recovery in trade and services. Due to bottlenecks in the supply of raw materials, however, the industrial boom is likely to cool down slightly in the short term.

The International Monetary Fund (IMF) expects the global economy to grow by 4.9% in 2022, which is 0.5 percentage points more than assumed in April. This development is expected to be driven by stronger growth in the industrialised countries (4.4%), mainly due to higher government spending in the USA and the EU. Again, the gross

4

5

domestic product (GDP) of emerging and developing countries is projected to grow by 5.2%. This corresponds to an increase of 0.2 percentage points compared to the April estimate.

The global economic recovery is, however, dependent on the further development of the pandemic. According to the IMF, the growth forecast for the USA is 4.9% for next year. The German economy is also expected to rise more strongly in 2022. After the forecast of 3.4% in April, the IMF now expects growth of 4.1%. For 2021, an increase of 3.6% is still expected. The reason for the IMF's high growth forecast for the global economy is the recession in many countries in the previous year due to the Corona crisis, which is now being made up for.

Given the difficult situation on the procurement markets, the Uzin Utz Group expects further challenges in the second half of 2021. Due to the increasing duration of supply bottlenecks in the procurement of raw materials, production restrictions are also expected in the coming half-year. In addition, above-average price increases are expected, which would have a negative impact on the further course of business.

On the basis of the strong first half of 2021, the Uzin Utz Group is nevertheless confident about the coming half-year. Contrary to the forecast in the 2020 annual report, the management expects earnings before interest and taxes (EBIT) for the 2021 financial year to be above the previous year due to the positive first half of the year.

June 30, 2021

June 30, 2020

Earnings per share basic and diluted, based on

for the reporting period attributable to ordinary

equity holders of the parent company result after

taxes

3.98

2.01

Average number of employees (incl. appren-

tices)

1,413

1,376

Consolidated statement of comprehensive income

June 30, 2021

June 30, 2020

Sales revenues

221,667

186,896

Changes in inventory of finished goods and work

in process

-1,212

-1,005

Total output

220,454

185,891

Other operating income

3,144

2,121

Cost of materials

95,081

80,079

Personnel expenses

54,524

50,116

Depreciation

7,649

7,213

Other operating expenses

37,353

35,151

Operating income (EBIT)

28,991

15,453

Revenues from investments in associates (eq-

uity method)

25

-42

Financial earnings

43

37

Financial expenses

685

834

Financial result

-617

-839

Earnings before taxes (EBT)

28,375

14,614

Taxes on income

7,874

4,371

Net income after taxes

20,500

10,244

Thereof

Shareholders of the parent company

20,069

10,140

Non-controlling interests

431

104

Other comprehensive income

Positions, which are changed to the State-

ment of profit or loss in the future under cer-

259

-275

tain conditions

Currency translation differences

239

-300

Income from financial instruments

21

27

Thereof deferred taxes

-1

-2

Other result - after taxes

259

-275

Thereof:

Shareholders of the parent company

258

-272

Non-controlling interests

1

-3

Total result - after taxes

20,759

9,969

Thereof:

Shareholders of the parent company

20,327

9,868

Non-controlling interests

433

101

6

7

Consolidated balance sheet of the Group

June 30,

Dec 31,

June 30,

Assets

2021

2020

2020

Intangible assets

35,520

36,331

37,088

Property, plant and equipment

144,481

140,706

136,938

Rights of use

6,360

6,218

6,798

Subsidiaries measured at equity

1,363

1,374

1,360

Non-current financial assets

2,769

2,848

3,645

Investment properties

4,947

5,181

5,094

Non-current receivables from income

taxes

0

0

0

Deferred tax assets

4,196

3,941

4,429

Other non-current assets

96

112

81

Non-current assets

199,733

196,712

195,434

Inventories

54,472

48,354

52,825

Trade receivables

55,179

28,626

46,577

Income tax receivables

290

840

783

Other current assets

4,385

5,314

3,907

Cash and cash equivalents

34,834

39,303

30,478

Current assets

149,160

122,438

134,571

Balance sheet total

348,894

319,150

330,005

Equity and liablitites

Subscribed capital

15,133

15,133

15,133

Capital reserve

26,962

26,962

26,962

Retained earnings

159,707

147,199

130,181

Total equity attributable to the parent

company

201,802

189,294

172,275

Non-controlling interests

2,232

1,997

2,109

Equity

204,034

191,291

174,384

Provisions for pensions and other simi-

8,925

8,844

8,609

lar obligations

Non-current financial liabilities

36,588

38,406

47,166

Non-current leasing liabilities

3,238

3,296

3,831

Deferred tax liabilities

10,051

10,145

11,502

Other non-current liabilities

3

6

342

Non-current liabilities

58,805

60,697

71,450

Provisions

26,100

15,781

21,479

Current financial liabilities

15,668

16,486

31,912

Current leasing liabilities

2,620

3,288

3,351

Advances received

228

10

16

Trade payables

24,427

15,013

15,035

Income tax liabilities

6,141

4,213

1,849

Other current liabilities

10,871

12,371

10,530

Current liabilities

86,054

67,162

84,171

External capital

144,859

127,860

155,621

Balance sheet total

348,894

319,150

330,005

Consolidated statement of cashflows of the Group

June 30,

June 30,

2021

2020

Net income for the year after taxes

20,500

10,244

+/- Depreciation and amortisation of property, plant

and equipment

7,649

7,213

+/- Change in provisions

10,399

7,147

+/- Other non-cash expenses/income

-25

42

-/+ Profit/loss from the disposal of property, plant

and equipment

-1,383

22

+/- Change in current assets (inventories, receivea-

bles) of other assets not attributable to investing

or financing activities

-27,019

-15,249

+/- Change in trade payables of other liabilities not

attributable to investing or financing activities

3,829

1,941

Cashflow from operating activities

13,951

11,360

+/- Proceeds from disposals of property, plant and

equipment/Payments made for investments in

property, plant and equipment

-6,986

-4,448

+/- Proceeds from disposal of intangible assets/Pay-

ments for investments in intangible assets

-418

-214

+/- Proceeds from disposal of financial assets/Pay-

ments for investments in financial assets

0

-8

Cashflow from investing activities

-7,403

-4,669

-

Payments to shareholders and minorities

-8,016

-6,558

+/- Proceed from the issue of bonds and raising of

(financial) loans/Payments from the redemption

of bonds and (financial) loans

-5,165

-3,398

Cashflow from financing activities

-13,181

-9,956

Payment-related change in cash and cash equiv-

alents

-6,633

-3,265

+/- Changes in cash and cash equivalents due to ex-

change rate movements, changes in the scope of

consolidation and changes in valuation

189

-187

+

Cash and cash equivalents at the beginning of

the period

39,256

21,101

Cash and cash equivalents at the end of the period

32,812

17,649

Composition of cash and cash equivalents

Cash on hand, bank balances

34,834

30,478

Short-term liabilities due to credit institutions

-2,022

-12,829

Cash and cash equivalents

32,812

17,649

8

9

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Uzin Utz AG published this content on 25 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 August 2021 13:14:26 UTC.