A hundred-year balance Annual Report 2010 - Uzin Utz AG

A hundred-year balance
Annual Report 2010

Investor Relations Overview
Key-Data in yearly comparison
2010
2009
2008
2007
2006
2005
2004
Group
IFRS
Group
IFRS
Group
IFRS
Group
IFRS
Group
IFRS
Group
IFRS
Group
IFRS
Revenue data
Sales revenues
184.2
172.2
177.4
166.1
152.1
138.5
121.9
Sales revenues growth
Result from
ordinary activities
7.0
14.4
-2.9
11.0
6.8
10.5
9.2
12.0
9.8
11.3
13.6
9.6
17.9
6.7
Net profit
9.6
7.1
7.8
8.6
8.3
6.3
4.7
Financial data
Investments
6.9
3.2
7.7
14.9
7.3
16.3
17.1
Depreciation
Cash flow
from ordinary activities
5.6
14.3
5.4
17.0
5.2
11.0
4.9
9.8
4.9
11.3
4.5
6.8
3.8
6.5
Balance sheet data
Total assets
Accounts
receivable
Inventories
Fixed assets
Liabilities
(incl. provisions)
Equity capital
(incl. third parties)
Personnel (average)
167.3
25.7
25.3
95.5
90.1
77.1
841
154.7
22.7
20.1
91.5
87.0
67.6
859
160.8
24.0
21.7
93.8
97.7
63.0
806
154.0
25.1
22.8
88.9
94.3
59.7
720
136.0
24.4
18.9
79.5
81.7
54.3
659
126.1
21.3
17.3
77.5
76.5
49.5
656
112.0
19.1
15.0
66.0
70.7
41.3
611
Performance 2010
turnover of all stock exchanges
closing price
Uzin Utz AG
Shareholder Structure in %
turnover in EUR
closing price in Euro
2.000
25
1.600
20
20 %
Polyshare GmbH
1.200
15
800
10
Utz Family
56 %
19 %
Freefloat
400
5
5 %
01/10
02/10
03/10
04/10
05/10
06/10
07/10
08/10
09/10
10/10
11/10
12/10
Henderson
Global Investors

Investor Relations Overview
The Shares
German securities identification number
ISIN number
Market segment
Share capital
Number of shares outstanding
Issuing price October 1997
755150
DE 000 755150 9
Regulierter Markt , General Standard
12.804.813 Euro
4.268.271 no-par share
23,01 Euro
Own Shares (per 31.12.)
High (continous trading)
Low (continous trading)
Varation range
Opening price on the first trading day
Closing price on the last trading day
Performance
Average price
Market capitalisation based on end-ofyear-
closing price
2010
15.194
21,50 Euro
16,51 Euro
26,13 %
17,60 Euro
20,34 Euro
15,57 %
19,10 Euro
86.816.632 Euro
2009
15.194
18,82 Euro
13,90 Euro
30,48 %
14,65 Euro
17,60 Euro
20,14 %
16,14 Euro
75.121.570 Euro
Price Earnings Ratio
Year end closing
2010
IFRS
2009
IFRS
2008
IFRS
2007
IFRS
2006
IFRS
2005
IFRS
2004
IFRS
Year end closing (EUR)
20,34
17,60
14,70
26,00
23,40
15,31
12,60
Annual net profit per share (EUR)
2,27
1,68
1,84
2,01
1,96
1,49
1,19
Price earnings ratio
9,0
10,5
8,0
12,9
11,9
10,3
10,6
Proposal to the
Annual General Meeting
2010
2009
2008
2007
2006
2005
2004
Shares
4.268.271
4.268.271
4.268.271
4.268.271
4.268.271
4.268.271
4.000.000
Dividend earned (EUR)
1,00
0,62
0,62
0,90
0,90
0,75
0,52
Amount to be distributed (EUR)
4.268.271
2.646.328
2.646.328
3.841.444
3.841.444
3.201.203
2.080.000
Dividend yield based on closing price
4,92%
3,52%
4,22%
3,46%
3,85%
4,90%
4,13%
Dates
Uzin Utz AG
Investor Relations
Press conference on annual results
Annual general meeting
Six-months’ report
April 12, 2011
May 17, 2011
August 29, 2011
Phone +49 (0)731 4097-390
Fax +49 (0)731 4097-169
IR@uzin-utz.com
www.uzin-utz.de

foun
dation
of
success

Brief presentation of the Group
Since its foundation in the year 1911, Uzin Utz AG has developed from a small regional adhesive manufacturer
into one of the world’s leading producers of special chemicals and equipment for floor laying and treatment.
The transition to a complete supplier and system partner in matters of flooring expertise has been completed
over recent years by continual efforts at expansion and numerous acquisitions:
With the brands UZIN, Wolff, Pallmann, Arturo (formerly Qeshfloor), codex and RZ, Uzin Utz AG offers a comprehensive
range of products, systems and services covering all aspects of new laying, reservation and value
preservation of floor coverings of all types, parquet flooring, ceramic tiles and natural stone – all from its own
development and production.
The Group operates its own companies on all the most important markets in the world, and is represented in
37 other countries besides Germany. The clear focus of the Group on the core expertise of flooring is unique
throughout the world. In this way, Uzin Utz AG is successfully meeting the challenges of a globalised economy
at the international level.
The company has also long been active in the area of ecological products and resource-saving production, and
led the way as a pioneer of low-solvent and solvent-free adhesives. Twelve products of the “Ökoline” from Uzin
and two products from Pallmann now carry the environmental seal “The Blue Angel”.
We live flooring! All our group activities are aimed at extending our expertise in flooring.

Letter to the shareholders
Interview
Portrait of the Board
Brand portfolio
The Group
Shares and investor relations
Group companies
Global markets
R+D/U-Vision
Inhalt
Values and substance
Striving for success and stability
Dynamism and sustainability
Structure and direction
Loyalty to the location and growth
Clarity of objectives and transparency
Adaptation and synergy
Bonding force and expansion
Development and earning power
8
10
14
16
20
24
28
32
36
7

Values and substance
Dear shareholders of Uzin Utz AG,
100 years of Uzin Utz mean continual change with sustainable
development and notable success. There are
only a few companies which can claim to be successfully
managed by the third generation of the same family.
» Even during the global economic crisis of recent years,
the Uzin Utz Group was not only able to maintain
its position well, but also applied consistent crisis and
risk management to form the basis of further structural
and organisational optimisation in the areas of raw material
usage, productivity and logistics.
» The effects and restrictions of the crisis were used as
an opportunity for further value addition and restructuring.
With notable success:
» This puts me in the enviable position, in the year of
our centenary, to be able to present to you a historic revenue
report. Although only housing construction was
able to record an increase in the domestic construction
sector in 2010, we succeeded in increasing group sales
by 7%. This improvement, which is outstanding in itself,
was however surpassed by the over 30% increase in
revenue achieved by the group with its result of €14.4
million.
» Thanks to the strategically correct and consistently
maintained adherence to our company objectives, growth
and sustainability go hand-in-hand, not by chance, but
by design. 2011 is also the 14th year after our flotation
on the stock market, and therefore also since the beginning
of our long-term growth offensive. The ambitious
targets with regard to market position, expansion and
further development which we set five years ago in our
agenda “U-Vision” have also been largely implemented
and achieved.
» Looking back, there are many small jubilees, events
and development steps which over the course of a whole
century can be compressed into one major and successful
event. A timetable therefore runs through the complete
Jubilee report, providing information on the great
and small historical circumstances in the course of our
company history.
» I do join this timetable now for 33 years, in which
I have held a responsible position in our company. It
therefore gives me great pleasure to convey these Jubilee
greetings to you from my current position. I am particularly
delighted to be able to announce positive news,
and look back with justified pride on the many small and
great successes which we have made possible over all
the years.
» And I look forward with optimism to the well-prepared
path that we have taken for further sustainable development
in the future.
» On behalf of the Board, I would like to express my
thanks for your proven confidence in the earning power
and future viability of our company, and to assure you
of our continued undivided and single-minded dedication.
We believe that you can look forward with us to a
promising and profitable Jubilee year 2011!
Sincerely yours
Dr. H. Werner Utz
1911
1912
1913
1914
1915
Georg Utz founds the „Fabrikation
chemischer Produkte”
(manufacture of chemical
products) in Vienna.
The PVC is invented.
Henry Ford introduces the first
assembly line for the production
of its vehicles.
Opening of the Panama
Canal.
Willi Utz is born in Vienna
(2nd generation).
8 Letter to the shareholders

1916
1917
1918
1919
1920
The Trans-Siberian railway from
Moscow to Vladivostok is completed.
Georg Utz returns from the
French campaign back to
Ulm.
End of World War I.
Georg Utz begins with the
production of floor wax in
Ulm.
Star of the VII Olympic Games
in Antwerp is the marvelous
runner Paavo Nurmi with three
gold and one silver medal.
Letter to the shareholders
9

Striving for success and stability
»»
Dr. Utz, you can look back today, as the third generation,
on a century of company history. You yourself
have worked for the company since 1978. Is there
anything such as a key memory in your personal
company biography?
»»
Well, there have been of course many such moments
in which decisive events have occurred. When I joined
the company fresh from university, I quickly began to
concern myself seriously with the difficult subject of the
environment and the world of business. My dissertation
was entitled “Environmental change and company policy”.
I was already very aware of this subject, and had to
admit that at that time, immediately after the growth
phase of the 1970’s, UZIN had not yet tackled this problem.
I therefore soon devoted myself intensively to these
issues, together with the optimisation of sales and marketing,
which up to that time had no outstanding priority
in the company.
»»
What in your opinion are the advantages of a family-run
company in today’s times?
»»
A family-run company, even of our order of size, has
many advantages, at least as long as the family is in agreement
with regard to the company objectives and management.
In our case, that was never in question. The
main advantages for me lie in the possibility of long-term
strategic planning and orientation, with the accent on
continuity. This also has a consequent effect with regard
to the stability of a qualified personnel base, because the
sustainability aspect is also determined by the degree
of loyalty and motivation of a company’s employees.
Here one can of course fulfil something like a role-model
function, when one has been running the company
for 20 years and longer. This is not usually the case with
purely management-run companies.”
»»
On the subject of role-models: Who has influenced
your decisions in life particularly strongly,
and what advice would you give to somebody founding
a company today?
»»
For me there have been many people who have impressed
me in a particular way, and whose performance
I have attempted to emulate, whether at university or
somewhere else, although not in the sense that there
was any particular great role-model for me. This is probably
also due to the fact that I always wanted to maintain
my intellectual independence, and was fortunately
able to do so. This is also the advice that I would give to
company founders: To believe in oneself and one’s mission,
to pursue it long-term and consistently, even in the
face of all possible resistance, and not give it up. Success
then comes almost automatically.
1921
1922
1923
1924
1925
Albert Einstein receives the Nobel
Prize in physics.
Georg Utz acquires the property
Fischergasse 6, Ulm as
a production site.
Peak of inflation in Germany
(U.S. $ 1 = 4 trillion marks).
First international football
match Germany – Italy (0 : 1).
First public TV shows in Germany,
England and the USA.
10 Interview

1926
1927
1928
1929
1930
Charleston is the dance of the
year.
The „Buna“ called fully synthetic
rubber was invented in Germany.
Lina Radke gets an Olympic gold
medal in the 800-meter run as
the first German.
Black Friday on the Wall Street.
Max Schmeling is world champion
in boxing.
Interview
11

»»
Were there also possible alternative paths in life
for you, or was your succession as head of the company
never in question?
»»
Oh yes, there certainly were! While I was at university,
I had visions of a career as a racing driver; in the 1970’s
I competed in various circuit races and hill climbs – not
entirely without success by the way – and was completely
infected with the racing bug. This ‘storm and stress’
phase came to an end for me after some less enjoyable
events. On completion of my dissertation, there was
still the option of a scientific career at the university,
but I was ultimately attracted to the company, with all
its challenges and possibilities.
»»
You are an aesthetically and artistically orientated
person, who repeatedly supports art projects and
young artists. Do you or did you yourself also have
active ambitions in this direction?
»»
Definitely not. But if anyone wanted to interpret my
enthusiasm for architecture as artistic ambition, you
could say that I earned it in a sort of indirect, artistic
way though the successful use of our products in the
preservation of historic buildings.” (laughs)
»»
What makes an artist or their work interesting
for you, and do you prefer any particular art form
or stylistic direction?
»»
Roy Liechtenstein was an artist whose independent
style and works attracted me at an early stage – well
before he became really popular and therefore unaffordable.
But in general I don’t prefer any particular direction
or art form, but approach it quite intuitively. The
work should however have its own recognisably individual
style and sense of expression, and also be able to
convince its creator as an artistic personality.”
»»
Assuming that you had the chance to take over
the chairmanship of another company, which would
most attract you?
»»
(after brief consideration): There would only be one
company in question: Porsche!
1931
1932
1933
1934
1935
With 449 m the Empire State
Building is completed as the
highest structure in the world.
Bayern Munich is the first
German football champion.
1st May is a legal bankday in
Germany.
Wernher von Braun develops a
liquid rocket, which rises 2,400
meters high.
Ferdinand Porsche presents the
prototype of the „Beetle“.
12 Interview

What grows out of the insignificant
often bears the power for greatness.
»»
Regarding the economic crisis: Was there ever a
situation in which you ever considered changing the
ownership structure, in other words giving up the
majority shareholding of your family?
»»
Definitely not. Certainly not during the crisis, but
otherwise this subject was only on the agenda one single
time, before stock market flotation in 1997 – with
the known result. Something which I am naturally very
happy about, otherwise we would not be able to celebrate
this company Jubilee.”
»»
Looking back on your previous achievements in
life – what are you particularly proud of, apart from
the success of your company?
»»
That’s easy: My children, naturally. Of course only
that which concerns my own contribution to their positive
development, which is difficult to measure, and that
all three of them have been able to create the requirements
for a self-determined and successful life. On the
personal level, I am proud of having been able so far to
preserve a certain basic composure, openness and tolerance,
which has enabled me to maintain and enjoy a
relaxed daily life. All the more so since my daughter has
recently had twins, making me a grandfather twice over.
»»
When you think of your personal future and that
of Uzin Utz AG: How will your family tradition be
continued over the coming generation? Are there
already concrete succession scenarios?
»»
See the last question: I can look forward to the future
quite relaxed and expectantly, both my own and also that
of the company. My two sons are preparing to join the
company in the Jubilee year in order to earn their spurs;
the company management will therefore pass on to the
next generation at the appointed time, although I cannot
say at the moment exactly when or in what form.
The continuity of Uzin Utz AG is therefore assured.
1936
1937
1938
1939
1940
Olympic Games in Berlin. Crowd
favorite Jesse Owens from the
United States collects four gold
medals.
The World Exhibition takes place
in Paris. Picasso paints the picture
„Guernica“ for the Spanish
pavilion.
Otto Hahn is the first who splits
the nucleus of a uranium atom.
Beginning of the World
War II.
The first color TV program is
broadcasting.
Interview
13

Dynamism and Sustainability
“100 years of developing our
expertise are our basis, 100 years
of company success our
foundation!”
“Achieved objectives form the
basis for new targets. Realistic
targets form the basis of our
sustainability.”
»»
Dr. H. Werner Utz
−−Chief executive officer
−−born: 1947
−−member of the general management since 1978
»»
Departments
−−Strategy
−−Marketing
−−Technical product service
−−Development and product technology
»»
Thomas Müllerschön
−−Member of the executive board
−−born: 1968
−−joined the company in 1994
−−Member of the executive board since 2002
» Departments
−−Sales
−−Operations and logistics
−−Controlling, finance and accounting
−−Group organisation
−−Human resources
−−Central purchasing
A company always has environmental responsibility. Uzin
Utz AG is well aware of this fact, and practices consistent
environmental management. Here, projects are coordinated
and defined in order to support the development
of products which are ecological, low in emissions and
harmless to health. Our environmental management is
based on the responsible handling of raw materials and
natural resources.
»»
The declared aim is to develop only products which
meet the highest requirements with regard to sustainability.
In our product development, we take into account
the ecological balance data of the raw materials, and by
active cooperation with our suppliers, we can largely dispense
with the use of critical raw materials in our production.
Part of this objective will be achieved in 2011:
We will not produce or sell any more solvent-based adhesives
in Germany.
»»
We are also concentrating on the continual improvement
of all business procedures with regard to sustainability.
We have already achieved significant successes
in energy saving, waste avoidance and all production
emissions.
1941
1942
1943
1944
1945
Konrad Zuse‘s „Z2“ is the first in
practice usable programmable
computing machine.
Willi Utz is communicator
on the side of Field Marshal
Rommel in Africa.
Hans and Sophie Scholl of the
resistance group „Weiße Rose”
(White Rose) are executed.
The preliminary end: The establishment
in the Ulm city
is destroyed in an air raid.
Founding Assembly of the United
Nations in San Francisco.
14 Portrait of the Board

1946
1947
1948
1949
1950
The production of UZOLfloor
polish and floor care
aid resumes.
Werner Utz is born in Ulm
(3rd generation).
Registration of the mark
„UZIN“ at the German Patent
Office.
Theodor Heuss becomes the
first President.
The first UZIN flooring
adhesive is delivered.
Portrait of the Board
15

Structure and Direction
1951
1952
1953
1954
1955
Start of economic miracle in
West Germany.
Albert Schweitzer is awarded
with the Nobel Peace Prize
First ascent of Mount Everest by
Sir Edmund Hillary and Tensing
Norgay.
World Soccer Cup:
„The Miracle of Bern“.
Start of production of UZIN
cement fillers.
16 Brand portfolio

DI
REC
1956
1957
TION
1958
1959
1960
First guest workers in Germany.
Sales of the company Georg
Utz over 1 million DM.
The first ultrasound examination
is performed.
First dispersion adhesive for
PVC floorings „UZIN Fondur
extra“.
Armin Harry is Olympic champion
in the 100m sprint at the
Olympic Games in Rome.
Brand portfolio 17

UZIN
For more than 50 years the established
traditional brand has stood
for the embodiment of professional
processing know-how involving
floor care. The comprehensive product
and system competencies in the
UZIN assortment range have been
extended since 2008 by the innovative
switchTec® adhesion technology,
which enables particularly simple
and dirt-free floor renovation.
WOLFF
The strong machine and tool brand
for surface preparation and processing
is established internationally as
a specialist in this segment. Wolff
supplies a complete program, which
offers a solution for every problem
in floor-laying or renovation.
Pallmann
From the root to the crown – this is
the motto with which Pallmann summarises
its product range for the new
laying, renovation and value retention
of parquet flooring. The professional
in the area of surface finishing
with a tradition extending back over
more than 100 years offers matching
products for every level of the flooring
construction – from the right
substrate preparation to adhesives
and equipment, and on to cleaning
and care of parquet flooring.
Arturo
With the new group brand of Arturo
Unique Flooring, the industrial application
area of the former Qeshfloor
brand has been transferred to the level
of a new synthetic resin flooring
concept. As a specialist for synthetic
resin flooring, Arturo offers a broad
selection of mortar flooring, stone
coverings, coatings and floor sealants.
These comply in a unique way
with both the purely practical requirements
and the design possibilities
of synthetic resin flooring – both in
the industrial, commercial and private
application area.
18 Brand portfolio

codex
The different demands and requirements,
especially of tiles and natural
stone coverings, are combined in
the high-performance codex network
brand. The codex laying systems offer
their users tile and joint mortars,
as well as special products for substrate
preparation.
RZ
RZ is presented as refreshingly innovative
and non-polluting, the youngest
brand in the group portfolio. The
specialist for cleaning and care systems
offers a comprehensive range
of products for professional care and
preservation of value for all types of
floor coverings. In this way, a bridge
is built for the first time between the
purely professional user and the demanding
end user.
Jordan Lacke
The comprehensive flooring expertise
of the brand portfolio is ideally
complemented by the Jordan Lacke
brand. A familiar name in the carpentry
trade and furniture industry
for over 120 years, this brand today
offers a full range of trend-setting
products for the varnishing and finishing
of floor surfaces.
UFLOOR Systems
The flooring expertise brand of Uzin
Utz AG stands for consultation services
providing innovative solutions
for the new laying, value retention
and renovation of floor coverings of
all types. UFloor Systems is the only
brand worldwide which can provide
architects and planners with comprehensive
advice on all questions of
flooring. With a unique range and the
brands of Uzin, Wolff, Pallmann, Arturo,
codex and RZ, UFloor Systems
offers tailor-made solutions for all
customer requirements.
Brand portfolio 19

Loyalty to the Location and Growth
Since the foundation of the company, the group base
has been systematically broadened by means of targeted
shareholdings and acquisitions. The company group
has been steadily built up around the Ulm group headquarters
over two decades. It now includes eight brand
suppliers and now more than ever forms the foundation
of our careful and sustainable growth strategy. Uzin Utz
AG, JP Coatings GmbH, Uzin Ltd. and the companies in
Switzerland and the USA in particular have contributed
to the positive sales and results developments. As an
effect of consistently practiced crisis management, the
7% increase in group sales produced a veritable result of
the century: Result from ordinary activities amounted to
€14.4 million, corresponding to an improvement of over
30% in comparison to the previous year.
»»
Investments totalling €6.9 million were also put in
hand.
» » This outstanding annual performance is also due to
the dedication of all employees, who helped to achieve
this result despite the slight decline in overall personnel
numbers across the Group.
Where the ground is fertile, much grows.
Where the ground is reclaimed, much flourishes.
1961
1962
1963
1964
1965
Willi Utz takes over the management
after the death of
the founder of the company.
First appearance of the Beatles
in the „Star Club“ in Hamburg,
Germany.
J. F. Kennedy is assassinated. UZIN presented as one of the
first companies a one side
adhesive „UZIN 390 D“ on acrylic
base.
Construction of the new
production facility in Ulm/
Donautal.
20 The Group

LO
CA
1966
TION
1967
1968
1969
1970
Germany is appalled by the
so-called „Wembley“ goal.
Moving to the present location
in the industrial area
Ulm/Donautal.
The „Prague Spring“ moves and
shocks the world.
Neil Armstrong becomes the
first man on the moon.
Beginning of the UZIN
adhesive production for tiles.
The Group
21

Wooded area near Heidenheim

Clarity of Objectives and Transparency
The generation and channelling of investment capital
for further growth was one of the main reasons for the
foundation of Uzin Utz AG in the year 1997.
»»
Due to the distribution of the share capital of Uzin Utz
AG, spectacular highs and lows in the share price occur
rather rarely – a highly desirable effect for the purposes
of the sustainable and long-term orientation of our
company strategy.
A clear source feeds a clean and powerful flow,
which brings forth blossoming banks.
»»
The value of Uzin Utz shares nevertheless started off
the year with a dynamic upwards trend: Beginning at the
weakened price of €17.60 brought about by the financial
crisis, it reached a high of €26.30 over the course of the
year. By the end of the year, the shares had gained almost
20%, and were being quoted at €20.27. The share
price has stabilised at the moment at just on €24.00 (as
of March 2011). In view of the overall encouraging revenue
situation, a dividend of €0.80 is to be paid out in
2011, together with a Jubilee dividend of €0.20, making
a total of €1.00.
»»
Our open and regular communication ensured the
maximum of transparency and information reliability for
our shareholders and other interested parties.
»»
In addition to the group and annual financial statements,
regular interim reports, press releases and ad-hoc
announcements ensured the up-to-date and comprehensive
level of information. (Uzin Utz AG also publishes a
financial calendar well in advance on all important dates
and publications of the company)
»»
In its capacity as “Designated Sponsor”, we were once
again able to count on the valuable support and partnership
of the LBBW.
1971
1972
1973
1974
1975
Willy Brandt is awarded with the
Nobel Peace Prize
Olympic Games in Munich. In Germany, more than 700,000
new homes are completed.
Germany is winner of the World
Football Cup.
Start of production of joint
sealant at UZIN.
24 Shares and investor relations

TRANs
PA
RENCY
1976
1977
1978
1979
1980
The Bayreuth Festival is celebrating
its 100th anniversary.
The rock ‚n‘ roll legend Elvis
Presley dies in Memphis, Tennessee.
Dr. H. Werner Utz joins the
company.
First general elections to the European
Parliament.
Dr. H. Werner Utz takes over
the management.
Shares and investor relations
25

Blautopf in Blaubeuren

Adaptation and Synergy
Learning from nature means learning perfection.
An example that we treat with respect.
A perfect interplay of forces requires the maximum degree
of individual readiness for development from all those involved.
In the interests of optimum adaptation to the requirements
of the market and our customers, our performance
structure as a system supplier is continually being
developed further. This also includes compliance with internationally
blinding industrial standards. Like the production
locations at Ulm (UZIN) and Haaksbergen (Unipro
B.V.), the Vaihingen equipment manufacturer Wolff and
Herrmann Frank have also been certified to ISO since 2010.
»»
A further step towards merging of product quality,
design requirements and practical suitability has been
made by Unipro B.V. with the completely new synthetic
resin flooring concept of Arturo Unique Flooring, which
replaces the brand of Qeshfloor Industrial Flooring. The
Dutch specialist for synthetic resin flooring presented the
optimum flooring solution in the commercial/industrial
application area at the BAU exhibition in Munich: Mortar
floors, stone flooring, sealants and levelling coatings
on an epoxy resin or polyurethane resin basis can be finished
to produce a unique end result with Arturo.
»»
As the partner to the parquet-laying business, the trade
and decision-makers in interior design, JP Coatings felt
itself duty-bound to increase its range and services covering
all aspects of the new laying, renovation and value
preservation of parquet flooring: Pallmann, the professional
in the area of surface finishing, with a tradition
going back over 100 years, now offers its customers perfectly
matched products for every level of flooring construction
– from the right substrate preparation through
to the cleaning and care of parquet floors.
»»
“From the root to the crown” – under this slogan, Pallmann
presented its new, complete range of products for
parquet flooring for the first time at the BAU exhibition.
»»
In 2010, the specialist departments of Quality Management
and International R&D initiated an ambitious
project for the maximum harmonisation of group companies
at the global level. This is intended to ensure that
production worldwide takes place according to the same
standards at all the different production locations of the
Uzin Utz Group. This will enable identical product qualities
to be turned out in future at all production locations.
»»
Ecological responsibility, product innovation and sustainability
are traditionally not contradictory at Uzin Utz
AG: in 2010, 76.2% of company sales were generated with
products which comply with strict ecological emission
requirements (such as the “Blue Angel” and Emicode).
Uzin Utz AG therefore stands out not only for its comprehensive
flooring system expertise, but also continues
to set the highest standards in the sector with regard
to its ecological responsibility.
1981
1982
1983
1984
1985
Birth of the Utz-triplets
Amelie, Julian and Philipp
(4th generation).
The compact disk (CD) is
launched.
The first generation of
environmentally friendly
adhesives of UZIN is introduced.
Sales of Uzin GmbH & Co. KG
exceed 33 million DM.
The only 17-year-old Boris Becker
wins in Wimbledon as first
German.
28 Group companies

Syn
er
gy
1986
1987
1988
1989
1990
Beginning of the growth
phase with new innovative
products of UZIN.
Introduction of the first
acrylic latex adhesive “UZIN
KE 2000”.
The first mobile phones on the
market.
Foundation of the UZIN sales
company in France.
German reunification and
build up of the sales organization
in the former East
Germany.
Group companies
29

Banks of the Danube near Elchingen

Bonding Force and Expansion
»»
Realistic expansion efforts today demand a global
perspective, especially since in the construction sector,
excessive reliance on domestic economic influences is
counterproductive. Over the last decade therefore, Uzin
Utz AG has consistently and significantly expanded its
international activities. The export quota has been significantly
above 50% for the last 7 years, and in 2010
reached 54.6%. The Group currently operates eight foreign
production locations, and the locations in North
America and Asia were recently extended. Over the past
year, sales developed positively particularly in the USA
and Switzerland.
» » In Scandinavia, Uzin Utz AG currently achieves sales
of around €5.4 million. In order to exploit the substantial
potentials in the northern European region even
better in future, and to ensure full sales coverage here,
a majority shareholding in the Norwegian sales company
Løkken AS was acquired with effect from 01.01.2011.
This company, with which a long-standing partnership
already exists, specialises in the sale of flooring products,
and currently generates annual sales of around €6 million.
With this latest acquisition, the Uzin Utz Group has
further extended its foreign presence, successively and
systematically continuing the set course for growth at
the global level.
The sky is endless.
And from firm ground, the stars can almost be touched.
1991
1992
1993
1994
1995
Stone Age mummy „Ötzi“ is
found.
Foundation of the UZIN
sales companies in England
and Austria.
The new dry mortar plant is
opened in Donautal, Ulm.
Quality certification of the
production site Ulm to DIN
ISO 9001.
Christo and Jeanne-Claude conceal
the “Berliner Reichstag”.
32 Global markets

Ex
Pan
1996
Sion
1997
1998
1999
2000
Introduction of the lowemission
products UZIN-
ÖkoLine.
In October the Uzin Utz AG
goes public.
UZIN Tyro AG, Switzerland is
acquired.
Foundation of the UZIN-sales
company in the Czech Republic.
New production plants are
founded in Legnica, Poland,
in Shanghai, China and in
Soissons, France.
Majoritarian acquisition of
the company Wolff GmbH.
Global markets
33

Donautal in the sun

Development and Earning Power
Preparing the ground, sowing ideas,
treading new paths, harvesting successes, insuring the yield –
this is called sustainable.
The essence of sustainability includes an overall perception
of entrepreneurial action and management. Innovation,
growth and earning power are in our opinion
inseparable from the concepts of responsibility, the
long-term view and environmental compatibility. Permanent
further development therefore always goes handin-hand
at Uzin Utz AG with forward-looking decisions
and activities designed to comply with customer interests,
company objectives, social and environmental aspects
to an equal degree.
»»
New effects, new systems and innovative problem
solutions are essential for the acceptance and the longterm
market success of our products. The innovation
sector therefore forms one of the main pillars of our
strategy, which will be further strengthened by the imminent
move into the new central building for Research
& Development. At the Ulm location in 2010, an average
of 77 highly motivated employees were devoted to
the ambitious task of producing forward-looking product
solutions – and with great success: the 45 projects have
so far resulted in 22 developments, which are currently
being perfected prior to market launch. Although R&D
costs have risen by almost 15% to €5.4 million, these
efforts have borne fruit: For the Jubilee year 2011 we are
aiming for a new product quota of 50%. Throughout the
group, the quota for 2010 was 49%, with the main company
in Ulm already reaching 51.9% in 2010.
»»
Well-trained staff naturally also play an important
role in the future projection. We are therefore placing
special emphasis on a long-term personnel policy directed
at quality. It is our aim to promote well-trained new
personnel in their own structures wherever possible –
this was implemented in 2010 with an average training
quota of 7.1% (company) and 4.3% (group).
»»
The analogy with agriculture also holds up with regard
to our ground theme: in the same way as traditional
cultivation methods preserve the resources of nature
and soils, our company strategy is designed to safeguard
the future, by careful and planned budgeting of our
capabilities and resources. Today we can look back on
100 years of successful entrepreneurship, and at the
same time look forward with realistic optimism. Because
the old farming rule applies: Whatever the weather, the
ploughing, sowing, weeding and harvesting still has to
be done.
»»
The ground at least is prepared for further successful
years and decades.
2001
2002
2003
2004
2005
Pallmann GmbH & Co. KG in
Munich is acquired.
Opening of the logistics centre
in Ulm.
Introduction of the Euro as a
legal tender.
Summer of the century
in Germany.
The Unipro companies in the
Netherlands and Belgium,
are acquired.
Siga Floor AG (Sifloor AG)
in Ruswil, Switzerland, is
acquired.
36 R+D/U-Vision

EAR
NI
NG
2006
2007
2008
2009
2010
The five brands are grouped
under the umbrella brand
“UFloor Systems”.
The codex brand for ceramic
tiles and natural stone is
launched.
With 35000 years probably the
oldest known human representation,
the „Venus vom Hohlen
Fels“, is found on the Swabian
Alb (Germany).
Barack Obama becomes the first
coloured President of the USA.
Group sales over €180
millions.
R+D/U-Vision
37

Field between Erbach and Ulm

al
ance
of
success

Consolidated Financial Statement
of Uzin Utz Group for Financial Year 2010
Profit and Loss Account 43
Balance Sheet 44
Statement of changes in equity 45
Consolidated cash flow statement 46
Segment Reporting 47
Equity Holdings 48
42

Uzin Utz Aktiengesellschaft, Ulm (Donau)
Profit and Loss Account 2010
Consolidated Profit and Loss Account 2010
(in TEUR)
Appendix
2010
2009
Sales revenues
1
184,199
172,213
Changes in inventory of finished goods
and work in process
2,063
-840
Total output
186,262
171,373
Other operating income
2
2,373
2,403
Income from investment properties
2
291
0
Costs of material
3
80,608
73,186
Personnel expenses
4
47,275
45,545
Depriciation/amortisation on tangible and intangible assets
5,576
5,394
Other operating expenses
5
38,941
36,351
Operating income
16,526
13,300
revenues from investments in associates (equity method)
6
70
40
Financial result
7
-2,166
-2,385
Result from ordinary activities
14,430
10,954
Taxes on income
8
4,031
3,253
other taxes
9
710
622
Net income for the year
9,690
7,079
Minority interests in profit
10
-44
56
Consolidated net income for the year
9,646
7,135
43

Uzin Utz Aktiengesellschaft, Ulm (Donau)
Consolidated Balance Sheet
Assets (in TEUR)
Appendix
2010
2009
2008
Assets
Intangible assets
11
31,932
31,764
32,332
Tangible assets
12
59,410
56,709
58,508
Non- current financial assets
13
1,142
774
754
Investment Properties
14
2,970
2,238
2,232
income tax receivables
16
651
791
873
Deferred tax assets
15
1,711
1,568
1,395
Other non-current assets
16
45
18
30
Non- current assets
97,860
93,863
96,124
Inventories
17
25,331
20,079
21,729
Trade receivables
16
25,736
22,738
23,964
income tax receivables
16
355
269
238
Other current assets
16
3,537
3,355
5,062
Cash and Cash equivalents
18
14,457
14,350
13,638
Current assets
69,417
60,792
64,632
Balance sheet total
167,277
154,655
160,756
Liabilities (in TEUR)
Appendix
2010
2009
2008
Subscribed capital
19
12,805
12,805
12,805
Capital reserve
19
13,624
13,624
13,624
Revenue reserve
19
51,112
41,575
36,838
Minority interests
19
-164
-164
-95
Own shares
19
-235
-235
-124
Total equity
19
77,142
67,605
63,048
Provisions for pensions
and other similar obligations
20
2,383
2,187
1,845
Due to credit institutions long-term
21
34,992
33,924
35,604
Deferred tax liabilities
15
9,126
8,503
7,866
other non-current liabilities
21
419
405
333
Non-current liabilities
46,920
45,019
45,647
Reserves
20
6,730
6,345
7,208
Due to credit institutions short-term
21
22,601
24,168
32,910
advances received
21
11
11
64
Trade payables
22
7,627
5,499
6,155
income tax liabilities
21
1,243
1,607
1,091
Other short-term liabilities
21
5,003
4,401
4,634
Current liabilities
43,215
42,031
52,061
Balance sheet total
167,277
154,655
160,756
44

Uzin Utz Aktiengesellschaft, Ulm
Statement of changes in equity
Statement of
changes in equity
(in TEUR)
Subscribed
capital
Capital
reserve
Retained earnings Reserve on Other Sum Minority
own shares transactions
interests
Group net
income
Translation
differences
Total Equity
31 December 2008
12,805
13,624
42,760
-718
-124
-4,224
64,123
-95
64,028
Changes in accounting methodes/adjustments
0
0
-981
0
0
0
-981
0
-981
Balance as of January 01, 2008
12,805
13,624
41,779
-718
-124
-4,224
63,142
-95
63,048
Exchange rate-related differences
0
0
0
375
0
0
375
5
380
Other changes
0
0
-75
0
0
0
-75
-25
-101
Market valuations
for cash flow hedges
0
0
0
0
0
-58
-58
0
-58
Net Income directly
recognized in equity
0
0
-75
375
0
-58
241
-20
221
Net profit of the year
0
0
7,135
0
0
0
7,135
-56
7,079
Total recognized income and expenses
0
0
7,059
375
0
-58
7,376
-76
7,300
Own shares
0
0
0
0
-111
0
-111
0
-111
Dividends payed
0
0
-2,639
0
0
0
-2,639
0
-2,639
Changes in basis of consolidation
0
0
0
0
0
0
0
7
7
31 December 2009 / 01 January 2010
12,805
13,624
46,199
-343
-235
-4,282
67,769
-164
67,605
Exchange rate-related differences
0
0
0
2,465
0
0
2,465
-10
2,455
Increase of capital
0
0
0
0
0
0
0
12
12
Other changes
0
0
10
0
0
0
10
-47
-37
Market valuations
for cash flow hedges
0
0
0
0
0
53
53
0
53
Net Income directly
recognized in equity
0
0
10
2,465
0
53
2,528
-45
2,484
Net profit of the year
0
0
9,646
0
0
0
9,646
44
9,690
Total recognized income and expenses
0
0
9,656
2,465
0
53
12,174
0
12,174
Dividends payed
0
0
-2,637
0
0
0
-2,637
0
-2,637
31 December 2010
12,805
13,624
53,218
2,122
-235
-4,229
77,306
-164
77,142
45

Uzin Utz Aktiengesellschaft, Ulm
Consolidated cash flow statement
Consolidated cash flow statement
(in TEUR)
Net profit for the year
+/- Depreciation and amortisation of fixed assets
+/- Change in provisions
2010
9.690
5.285
245
2009
7.079
5.394
-106
Cash and cash equivalents
Cash and cash equivalents
short-term liabilities due to credit institutions
Cash and cash equivalents
2010
14.457
-9.663
4.794
2009
14.350
-14.047
303
+/- other non-cash income and expense items
1.365
-752
-/+ Gain/loss on disposal of non-current assets
12
15
+/- Change in current assets (inventories, receivables)
-7.300
5.888
+/- Change in liabilities
4.991
-530
Cashflow from operating activities
14.287
16.988
+ Proceeds from disposal of tangible assets
165
607
- Investments in tangible assets
-6.278
-2.762
+ Proceeds from disposal of intangible assets
15
0
- Investments in intangible assets
-315
-268
+ Proceeds from disposal of financial assets
116
56
- Investments in financial assets
- Change from acquisition/
sale of consolidated companies
-328
0
-77
-569
Cashflow from investing activities
-6.625
-3.013
- Proceeds for own shares
0
-111
- Payments to shareholders and minorities
-2.637
-2.639
+ Proceeds from the issue of bonds
23.669
18.311
- Repayment of bonds
-24.168
-23.290
Cashflow from financing activities
-3.137
-7.729
Payment-related change in cash and cash equivalents
- Exchange-rate-related and other changes in cash
and cash equivalents
+ Cash and cash equivalents
at beginning of the period
4.525
-34
303
6.246
121
-6.064
Cash and cash equivalents at the end of the period
4.794
303
46

Uzin Utz Aktiengesellschaft, Ulm (Donau)
Segment Reporting
Segment Reporting
(in TEUR)
Germany Western Europe South- / Eastern
Installation surface care
Europe
systems and enhancement
all other segments transition Total Group
2010
2009
2010
2009
2010
2009
2010
2009
2010
2009
2010
2009
2010
2009
External sales
Intercompany sales
Total sales
Interest and similar income
Interest and
similar expenses
Profit
Assets
Liabilities
Investments
Depreciation
84,192
24,972
109,165
270
1,478
6,782
106,020
51,414
4,322
2,457
79,327
22,392
101,718
320
1,454
5,656
100,738
49,631
1,632
2,614
14,779
4,567
19,346
35
227
1,598
14,977
8,272
163
448
14,785
2,857
17,642
27
288
1,171
15,309
8,208
116
455
34,915
8,687
43,602
176
330
4,079
39,832
16,052
1,552
1,212
32,298
7,321
39,619
127
169
3,930
40,585
20,482
910
969
12,644
878
13,521
24
18
984
10,963
3,382
179
307
12,480
635
13,115
46
36
1,283
9,171
2,535
123
297
37,669
2,206
39,875
2
599
3,037
34,839
29,254
378
1,153
33,324
2,151
35,475
15
945
1,327
33,536
29,572
618
1,058
0
-41,310
-41,310
-310
-290
47
-39,353
-18,239
0
0
0
-35,356
-35,356
-324
-296
-68
-43,704
-23,379
0
0
184,199
0
184,199
197
2,362
16,526
167,277
90,136
6,593
5,576
172,213
0
172,213
210
2,596
13,300
155,635
87,050
3,400
5,394
External Sales
according to business area
(in TEUR)
flooring wood flooring ceramic tiles and
natural stone
others
Sum
2010 2009 2010 2009 2010 2009 2010 2009 2010 2009
144,028 138,896 17,238 14,219 17,536 15,063 5,397 4,035 184,199 172,213
Geographic segmentation
of external sales
(in TEUR)
Germany the Netherlands Rest Sum
2010 2009 2010 2009 2010 2009 2010 2009
83,647 79,669 17,126 16,963 83,426 75,581 184,199 172,213
Non-current assets
according to the location of assets
(in TEUR)
Germany Switzerland Rest Sum
2010 2009 2010 2009 2010 2009 2010 2009
68,434 68,663 15,419 12,783 11,156 11,055 95,008 92,502
47

Equity Holdings
(figures according to local GAAP)
Company
Place
Share of
Capital in %
Equity
in TEUR
Net income
in TEUR
Uzin Dr. Utz Ges. mbH
AT, Wien
100.00
-408
-32
Unipro-Belgie N.V.
BE, Gent
99.98
923
215
Uzin Tyro AG
CH, Buochs
100.00
5,210
889
Sifloor AG
CH, Sursee
100.00
7,393
113
DS Derendinger AG **)
CH, Thörishaus
100.00
1,110
237
Uzin Utz Construction
Materials Co. Ltd.
CN, Shanghai
90.00
-298
36
Uzin s.r.o.
CZ, Prag
100.00
1,081
171
artiso solutions GmbH
DE, Blaustein
50.00
142
27
Artiso AG *)
DE, Blaustein
50.00
30
3
RZ Reinigungs- und
Pflegesysteme GmbH
DE, Meckenheim
100.00
-1,943
84
Genial Produkte GmbH
DE, Meckenheim
100.00
-1,491
1
Hermann Frank GmbH
& Co. KG
Hermann Frank
Verwaltungs GmbH *)
BIL LEASING Verwaltungs
GmbH & Co. 870 KG
Objekteure Verwaltungsgesellschaft
mbH *)
Utz Beteiligungs GmbH
DE,
Oberderdingen
DE,
Oberderdingen
DE, Pullach
DE, Ulm
DE, Ulm
100.00
100.00
94.00
100.00
100.00
735
30
-2,797
29
-46
-164
1
798
1
-19
Uzin Utz AG
DE, Ulm
-
46,112
6,473
JP Coatings GmbH
DE, Würzburg
100.00
6,032
784
Uzin France SAS
FR, Paris
100.00
2,196
234
Uzin Limited
GB, Leamington Spa
100.00
1,447
433
Unikem d.o.o.
HR, Zagreb
50.00
265
1
Uzin Utz Magyarország
Kft. **)
HU, Budapest
90.00
-34
-90
Unipro B.V.
NL, Haaksbergen
100.00
4,597
1,266
Ufloor Systems NZ Ltd.
NZ, Whangaparaoa
90.00
225
31
Uzin Polska Produkty
Bodowlane Sp.zo.o.
PL, Legnica
100.00
3,623
557
Uzin Polska Sp.zo.o.
PL, Legnica
100.00
1,718
262
P.T. Uzin Utz Indonesia
RI, Jakarta
49.00
1,146
141
Unihem Trading d.o.o.
RS, Belgrad
50.00
-140
-24
Unihem d.o.o.
SLO, Ljubljana
50.00
3,172
293
Utz Inc.
USA, Aurora
100.00
219
-1
Ufloor Systems Inc.
USA, Aurora
90.00
-1,412
217
Production and sales site
Sales site
48

Uzin Utz Aktiengesellschaft, Ulm (Donau)
Situation Report of the Uzin Utz Group for the Business Year
from 1st January 2010 to 31st December 2010*
Business performance and framework conditions
Business performance, business activities and
framework conditions
Development of the sector and the overall economy
Following the greatest recession of the post-war era in
the year 2009, the world economy recovered faster than
expected in the year 2010. According to the information
of the World Bank, global GDP growth in the past year
reached 3.9%. This however gives rise to the question
of the sustainability of this positive development. National
economic programmes to cushion the recession
have created budget deficits and debt levels of almost
unheard-of dimensions. In addition to the concerns over a
relapse in the USA and the prospect of a more restrictive
monetary policy in China, the European Union in particular
is also faced with a major challenge. Continual reports
of Euro-countries with severe financial problems
are putting increasing pressure on the system of the European
Union and its common currency.
» The German economy in the year 2010 was typical
of the worldwide upturn. Germany is justifiably referred
to as the “growth engine” of the European economic region.
At the end of the year 2010, Germany had achieved
a GDP growth of 3.6%. Strong growth was achieved
particularly in the engineering and automotive sectors.
Medium-sized German companies in particular benefited
from the economic upturn, with consequent noticeable
positive effects on the employment market. The main
supporting pillar of economic development in Germany
is the export boom. In the future however, the heavy dependency
on China and the financial difficulties of many
EU-countries will constitute a risk factor for German foreign
trade. Nevertheless, economic institutes continue
to forecast growth of 2.1% to 2.4% for the German economy
in the year 2011.
» In the construction sector, the upturn which started
at the end of 2009 could not be continued into the early
months of 2010 because of the weather. The unusually
cold winter caused a declined in turnover in the construction
sector of 17.2% in the first 3 months in comparison
to the same period of the previous year. The sector
recovered over the course of the year, although with
an overall decline in turnover of 1%, it was not able to
join in the general economic upturn.
» With a decline in turnover of 4.5% in the year 2010,
the German commercial construction sector was a major
contributor to the low level of optimism in the construction
sector as a whole. If the overall economic upturn
continues in the year 2011 however, commercial
construction will also benefit accordingly. In this case,
experts forecast an increase in turnover of around 1%.
» The economic programmes instituted by the central
government were also unable to revitalise business in the
public construction sector, as becomes clear from the fall
in turnover of 3% in the year 2010. Nor is any recovery
expected in this area in the near future. Severely affected
by the low willingness to invest in the communal
area, a further decline in turnover of 4.5% is anticipated
in the year 2011.
» A clear recovery trend can be seen in residential construction,
where turnover increased by 6%. This has been
brought about mainly by the stabilisation of income expectations
in the course of the economic upturn, a revival
of interest of investors in residential properties, continuing
low interest rates and the high level of subsidisation
for the energy renovation of the housing stock.
» In 2011, the positive developments in residential construction
will most probably not suffice to compensate
satisfactorily for the decline in public construction. As the
President of the Hauptverband der Deutschen Bauindustrie
(National Association of the German Construction Industry),
Dipl.-Ing. Herbert Bodner announced at the beginning
of the year, the best that could be hoped for was
stable turnover, or possibly even a further decline.
Assessment of the company management
The year 2010 was a very successful business year for
the Uzin Utz Group. Sales rose by almost 7%. Against
the background of the continuing tough competition,
some areas and regions succeeded in further increasing
their market share, and operating successfully as international
market leaders and complete suppliers in the
area of flooring. This is particularly encouraging on the
occasion of the 100-year company Jubilee in the year
2011, and in the light of the still difficult but stabilising
market environment.
» The strength of the group is reflected even better in
the result. The result from ordinary activities, at around
€14.4 million, represents an improvement of 31.7% over
the previous year. On the one hand, this result gives the
Uzin Utz Group the security of being able to handle crisis
management, while on the other, the Group benefits
from its firm foundation of diversification, particular
closeness to the customer and strong company culture.
49

» Other essential requirements – particularly with regard
to sustainability, environmental protection and ecological
orientation – have also been created, in order to enable us
to face current and future challenges successfully.
» Sustainability must not simply be a label, but is seen
as an indication of company responsibility, and must characterise
the attitude of the whole company.
» The Uzin Utz Group is one of the forerunners in the
field of sustainable building products. Sustainability is not
regarded as one-dimensional in our company, but always
includes ecological, economic and social considerations:
» Firstly, the objective is to develop products which contribute
to healthy room air. Secondly, it is not only the
emissions which are important for building products. Manufacturers
are increasingly required to provide environmental
product data. The Uzin Utz Group is the first company
in the sector to enable the sustainable assessment
of the complete floor construction with its environmental
product declarations.
» In a challenging economic environment, characterised
by uncertainties caused by the financial market crisis,
tougher competition and negative currency effects, the
Uzin Utz Group has maintained its position very well, and
come off better than the competition in many important
aspects.
Internal company success factors
Now as before, our long-standing and long-term strategy,
the combination of the four internal company success
factors
−−
highly qualified and highly motivated employees,
−−
leading, high-quality products in an intelligent system
structure,
−−
unique service and logistics concept,
−−
successful brands that create confidence,
is demonstrating its sustainable effectiveness. With regard
to these four convincing focal points of our company culture,
which form our basis for profitable growth, nothing
has changed in the past, nor will it change in the future.
» We are flexible and adaptable. We also work continually
on new and benefit-orientated products which convince
our customers. We operate an excellent risk management
system, which contributes to our sustainable
value creation, and therefore to long-term business success.
The Uzin Utz Group can also rely on the special dedication
of skilled employees and management teams. All
this, together with highly satisfied customers, contributes
to stability and repeatedly offers new opportunities,
for which the Group is well-prepared.
» Started in October 2009, the construction of the new
central building for Research & Development was almost
completed by the end of 2010, so that from early 2011,
our employees have even more room for their ideas for
the development of innovative top products. The new
building also represents a commitment to the headquarters
location of Ulm, and is a visible confirmation that we
continue to rely on the location of Germany.
» The average number of employees in the Group fell to
841 (859). Of these, 474 (486) were employed in Germany
and 367 (373) abroad. 38 (46) young people were also
taken on as trainees. This underlines impressively the efforts
that have been going on for many years to train our
own qualified specialist personnel throughout the group,
and prepare them for future positions in the company. The
Group will continue in future with this important business
policy task, offering future prospects to young people by
means of special training opportunities, and at the same
time ensuring qualified future employees for the company.
The Uzin Utz Group wants their outstanding dedication
to remain in the company in the future. Everything
is therefore being done to foster this potential in the best
possible way.
» Uzin Utz AG and Unipro B.V., Haaksbergen, Netherlands,
are certified to the DIN ISO standards. The branch
in Vaihingen and Herrmann Frank GmbH were newly
certified in the business year 2010. Both locations produce
machinery for floor laying and treatment. Further
internal auditors were also trained in these companies
in 2010, and comprehensive audit programmes instituted.
The external repeat and re-certification audits once
again confirmed the high quality and the correctness of
the previous certification.
» In the business year 2010, production throughout the
group was carried out at the production locations in Ulm,
Vaihingen/Enz, Oberderdingen, Würzburg, Meckenheim,
Buochs (Switzerland), Sursee (Switzerland), Haaksbergen
(Netherlands), Legnica (Poland), Soissons (France), Shanghai
(China), Ljubljana (Slovenia) and Jakarta (Indonesia). The
total utilisation of all Uzin Utz works was around 87.5%,
thereby increasing by around 1.9 percentage points over
the previous year (85.6). There was no notable increase
in production capacities in the Group in the year 2010.
» There were no major changes in the production range.
Now as before, every batch produced throughout the
50

group is subjected to strict quality control. Deliveries only
take place following release of the products by the responsible
laboratory.
» There were some minor changes with regard to raw
materials suppliers in the reporting year, although the
procurement structures remained essentially unchanged.
» In the year 2010, nothing changed with regard to the
group-wide principles of long-term disposition, long-term
contract partnerships or comprehensive quality controls
in the area of procurement.
» The financing strategy is explained in the “Financial
situation” section of this report.
Internal organisation and decision-making
The internal group organisation follows the principle of
direct decision-making channels and the flattest possible
hierarchies. All major decisions are prepared in departmental
and divisional committees, and then submitted to
the relevant director or board with a decision-making recommendation.
All major decisions are discussed by the
relevant director or board of the shareholding company
with the Board of Uzin Utz AG. All decisions requiring approval
are presented by the Board of Uzin Utz AG to the
Supervisory Board of Uzin Utz AG for approval.
Important events and developments in the reporting
year
In the business year 2010, preparations were made for
the strategic re-positioning of individual brands, and these
were communicated, amongst other means, at the exhibition
‘BAU 2011’ in January: new products were also
added to the brand ranges of Uzin Utz AG.
» The Qeshfloor brand has been trading since January
2011 under the name ‘Arturo’. Previously specialising in
the manufacture of industrial flooring, Arturo promotes
itself as an expert in individual synthetic resin flooring –
whether for industry, commerce or residential properties.
The floors adapt themselves perfectly to the function of
the room, and can be applied to a concept with a unique
design.
» The Pallmann brand now offers for the first time a complete
range covering all aspects of parquet flooring – from
the right substrate preparation through to the cleaning
and care of parquet floors. As a partner to the parquetlaying
business, the trade and decision-makers in interior
design, Uzin Utz AG felt itself duty-bound to combine its
range and services covering all aspects of the new laying,
renovation and value preservation of parquet flooring.
» codex reacted early to the consumer trend, and tested
and certified most of its products to the demanding
requirements of the GEV – Gemeinschaft Emissionskontrollierte
Verlegewerkstoffe, Klebstoffe und Bauprodukte
e.V. (Association for emission-controlled laying materials,
adhesives and building products). The brand is taking another
consistent step forward with the new EcoTec product
line: the products comply with the requirements of the
Emicode EC 1 PLUS certification, and are therefore even
lower in emissions. A complete system construction can
be carried out with EcoTec, from the substrate preparation
to the jointing of the tile or natural stone flooring.
» The investments instituted at the end of 2009 at the
Ulm location were progressed in 2010: the central Research
& Development building, which brings together
our previously separated laboratories, was largely completed
by the end of the year.
Internal control system
The group-wide internal control system is based on a
number of mechanisms and key figures, which illustrate
specific departmental procedures and make them measurable.
All internal control systems for all areas are based
on the following key financial figures:
−−
Cash-flow from ordinary activities,
−−
Sales revenues,
−−
Result from ordinary activities,
−−
Return on sales,
−−
Return on capital and
−−
Equity ratio.
Events, decisions and factors significantly affecting
the further development of the company
» All events, decisions and factors significantly affecting
the further development of the group which were already
known in the year 2010 are contained in the relevant
part of this report. All such matters which became known
between the end of the year 2010 and the compilation of
this report are contained in the section “Significant events
following the end of the business year”.
Deviations from earlier reported expectations
In the year 2010, there were no major deviations in business
developments in the Group from earlier reported
expectations.
51

Situation of the Group*
* (all figures to IFRS)
52
The asset, financial and revenue situation of the Group
developed positively overall in the year 2010. Increasing
sales in combination with the continuation of strict cost
management led to improvements in most major positions.
Sales revenues and the result from ordinary activities
increased once again.
» In the comparison of the balance sheet values, it must
be noted that the correction to the company valuation of
BIL Leasing shown in the Appendix had an effect on the
previous year’s figures for intangible assets and equity.
Financial position
The balance sheet total increased by € 12.6 million to
€167.3 million (154.7). The share of group non-current
assets fell to 55.3% (57.7), and the current assets therefore
make up 44.7% (42.3) of the balance sheet total.
» Trade receivables rose due to the increased sales from
€22.7 million to €25.7 million.
» As a result of the improved order situation, inventories
rose by €5.2 million from €20.1 million to €25.3
million.
» The intangible assets rose slightly from €31.8 million
to €31.9 million.
» The tangible assets rose by €2.7 million to €59.4 million,
as a result of increased investment activities. The
exchange rate effect from the conversion of non-Euro
balances amounted to around €1.9 million. For the coming
year, a total of €15 million in investments is planned
within the group. These relate mainly to investments
for the extension of the Ulm production location started
in previous years. Investments are also planned at Unipro
B.V. for 2011, which relate mainly to the purchase
of the property currently in use.
» The cash and cash equivalents increased by nearly
0.8% or €0.1 million to €14.5 million.
» With the exception of investment properties, the complete
assets continue to represent the commercially necessary
values.
» Non-balance sheet financing instruments were used,
and refer mainly to rental and leasing contracts.
Liquid and capital resources
The total equity amounted to €77.1 million (67.6), and
at a proportion of 46% (44) of the balance sheet total
remains significantly above the sector average.
» The short-term financial liabilities fell by a total of
€1.6 million to €22.6 million. This reduction results from
capital repayments which were possible due to the high
cash-flow. Long-term fixed-interest loans were also taken
out to take advantage of the favourable interest rate.
This reduced the short-term current-account overdrafts.
» The liabilities from income tax fell from €1.6 million
to €1.2 million.
» The reserves increased by €0.4 million to €6.7 million
(6.3).
» The share of the short-term liabilities in the balance
sheet total thereby fell from 27.2% in the previous year
to 25.8% in the year 2010.
» The long-term due to credit institutions increased by
€1.1 million to €35 million (33.9) due to the above-mentioned
assumption of long-term, low-interest loans.
» The share of the non-current liabilities in the balance
sheet total fell slightly from 29.1% in the previous year
to 28.0% in the year 2010. In absolute terms, the noncurrent
liabilities increased by around €1.9 million from
€45.0 million to €46.9 million.
» The principle and simultaneous objective of the finance
management is to ensure adequate liquidity at all times,
while at the same time maintaining a high equity capital
ratio well above the sector average. This requirement
was also satisfied in the year 2010. Liquidity was insured
at all times, and lines of credit were never utilised to the
full amount. In 2010, various financing measures were
required due to the investments at the Ulm and Haaksbergen
locations. The total credit volume in the group
in the year 2010 was €57.6 million, slightly down from
€58.1 million in the previous year. Of this total, there
were around €22.6 million with a remaining term of up
to one year (24.2), €31.2 million with a remaining term
of between 1-5 years (27.9) and around €3.8 million
with a remaining term of over 5 years (6.0). These loans
were almost all taken out at a fixed interest rate. The remaining
proportion of the credit volume was taken out
at variable interest rates. A further capital requirement
exists particularly for the investments of Uzin Utz AG,
although we do not thereby anticipate any major changes
in the interest rate structure. The total credit volume
also includes three subordinated capital tranches of
Uzin Utz AG in the amount of €6.8 million, which come
from the programmes “Capital for work” and “ERP innovation
programme” of the Kreditanstalt für Wiederaufbau
(Reconstruction Loan Corporation). With its receivables
from this loan, the bank stands irrevocably
behind all present and future receivables of creditors in

precedence before the claims for return of a capital-replacing
loan of a shareholder or equivalent claims.
» Public subsidy programmes, medium-sized company
loans and other low-interest financing were again applied
for and used.
» An interest rate hedging deal was concluded in 2008
for a variable-interest loan to be taken out in 2010. An
interest rate of 4.92% was secured until 30.06.2016 for
a nominal value of €5.0 million.
» Forward exchange deals and currency options are also
used in individual cases for the securitisation of fixed
payments or in case of major foreign currency receivables
or liabilities.
» The detailed development of the liquidity is shown
in the group capital flow account.
Profitability
» The sales revenue of the Group increased in the year
2010 by 7.0% from €172.2 million to €184.2 million. This
was due above all to the positive sales developments of
Uzin Utz AG, JP Coatings GmbH and sales developments
of the companies in Switzerland and the USA.
» The total group foreign sales increased to around
€100.6 million (92.5). The foreign share increased by
around 0.9% to 54.6% (53.7). The share of sales not invoiced
in Euro increased to around 25.5% (20.0). The
currencies outside the Euro zone relevant for the Group
developed as follows:
» The total exchange rate effect on the group sales was
1.77% (-1.1).
» The sales volumes in the Group were increased by
5.5% in the year 2010. In the reporting year, there were
no changes in the product mix which had an effect on
major changes in the sales and the result. Sales prices
were increased on average by around 1.4%.
» Due to the production mainly by batches and the usually
very short time between order and delivery, production
generally takes place for an anonymous market, with
deliveries being made ex-stock, which throughout the
Group is sufficient for around 1.5 months sales. Statements
on the outstanding order book are therefore not
conclusive.
» The overall capacity increased by 8.7% to €186.3 million
(171.4).
» The absolute material expenditure increased by 10.1%
from €73.2 million to €80.6 million. The material usage
quota within the Group increased from 42.7% to 43.3%.
» The share of personnel costs in the overall capacity
fell to 25.4% (26.6). In absolute terms, the personnel
costs rose as a result of wage and salary increases from
€45.5 million to €47.3 million.
» Due to the investments made, depreciation increased
from €5.4 million to €5.6 million.
» The other operating expenditure increased by around
€2.6 million from €36.4 million in the previous year to
€38.9 million. This results mainly from expenditure which
was postponed in the previous year due to the even more
difficult market situation.
» To determine the revenue situation, different results
figures are used in some cases in comparison to the
Group financial statements.
» The earnings before interest and taxes (EBIT), at €15.8
million, were significantly above the level of the previous
year (12.7).
» Due to the reduced overall credit and current account
volume, the financial result of €-2.1 million was 10.7%
above the previous year’s figure (-2.3).
» The earnings before taxes (EBT), at €13.7 million, were
around 32.8% above the previous year’s figure (10.3).
» The annual surplus in the Group, at around €9.6 million
was around €2.5 million or 35.2% above the previous
year’s figure (7.1).
» Details on the sales, annual surpluses and equity capital
of the individual shareholdings can be taken from
the “Shareholdings” section in the Group Appendix.
53

Risk Report
Main risks
Environment and sector risks
The main overall economic risks for the Group are posed
by general economic developments, and particularly
those in the construction sector. Although the global
economy and the German economy are on the upturn,
risks must still be anticipated due to the continuing weak
development of the construction industry. Public construction
in Germany in particular cannot pull out of
its downward trend because local authorities have no
funds available. Europe, another main market, also presents
risks. Continual reports by EU states with severe
financial problems continue to give cause for concern in
these regions. The same uncertainty also exists in other
markets. By active dialogue with our customers and intensive
internal analysis and research on the market environment,
customer requirements and the competition,
we can react in good time to new developments and the
needs of the sector.
Product risks
The future development of the group depends to a great
extent on developing innovative products and optimising
existing formulations. Every effort is therefore being
made to push ahead with development work and identify
product requirements and trends in good time. High development
costs and continual in-house developments
are being devoted to this requirement. Any possible damages
occurring are covered by comprehensive international
insurance coverage, which also includes corresponding
product liability insurance. Normal operating risks
are covered by corresponding precautionary reserves.
» In addition to the changing requirements of our customers,
new laws are continually being passed, particularly
relating to the chemicals sector. Due to the prohibition
or the restricted use of certain chemicals or hazardous
materials, it is essential for the Uzin Utz Group to develop
new formulations in line with these requirements,
while at the same time maintaining or even improving
the product quality. Since 1st December 2010, under
the regulations of REACH (Registration, Evaluation, Authorisation
and Restriction of Chemicals), a notification
requirement has been in force for importers of raw materials
from non-EU countries if these import materials
which are hazardous or subject to registration.
» Due to the critical situation of various essential raw
material markets, delivery bottlenecks have occurred,
and continue to occur, with regard to their availability.
It is therefore essential to identify corresponding substitute
raw materials, in order to convert the product formulae,
while still maintaining consistent quality.
» In order to overcome these challenges with the optimum
result and maximum product quality throughout
the group at all times, a project was started in the year
2010 by the specialist departments of Quality Control
and International Research & Development. The aim is
to ensure that product groups which are produced at different
locations within the group are produced worldwide
to the same standards and the same quality. This is
intended to reduce to the minimum the number of product
faults throughout the group.
Failure risks in the area of production and the
main IT-supported processes
In the production areas of the individual works, the likelihood
of inefficient operation of production facilities is
largely reduced by regular maintenance, fire safety and
other precautionary measures. Corresponding insurance
coverage has been taken out against damage caused by
natural disasters and resulting stoppages.
» The business and production processes, and the internal
and external communication of the Uzin Utz Group
are increasingly based on information technologies. A
major fault, or even the failure of the global and regional
business systems can lead to a loss of data and impairment
of the business and production processes. The
likelihood of failure of process-critical information systems
is reduced to the minimum by corresponding technical,
structural and organisational measures.
Financial risks
The level of financial risks is difficult to assess in the current
situation. Due to the persisting uncertainties on the
financial markets, sensible securitisation must be provided
for sales which are subject to an exchange rate risk,
while always weighing up the costs and benefits. The
development of the currencies relevant for the Group
is described in the “Revenue situation” section of this
report. Possible future large exchange rate fluctuations
continue to harbour a residual risk.
» Even after the economic crisis is considered to have
been overcome, the focus in the Group still lies on the
permanent credit rating of customers. The great majority
of receivables from customers are also covered by cre-
54

dit insurance. The optimisation of freely available funds
is ensured by group-wide, strict claims management.
» All major liabilities in favour of banks are basically financed
in the long term with fixed interest rates or secured
against interest rate change risks by an interest
rate swap.
» The main finance instruments used by the Uzin Utz
Group include bank loans and current account overdrafts,
financing-leasing agreements and liabilities from deliveries
and services. The main purpose of these finance
instruments is the financing of business activities. The
Group has various financial assets, such as receivables
from deliveries and services, funds and short-term deposits,
which result directly from its business activities.
The Uzin Utz Group also has a very low level of derivative
finance instruments in the form of forward exchange
transactions and an interest rate swap. The purpose of
these finance instruments is to provide security against
interest rate change risks resulting from the business activities
of the Uzin Utz Group and its financing sources.
Investment risks
Risks resulting from major investments are assessed by
standardised investment calculations, and must be approved
by the Board of Uzin Utz AG. External consultants
are also engaged for this purpose if necessary. Possible
acquisitions are analysed with external support, assessed
by the Board and approved by the Supervisory Board.
Risks endangering the company’s existence
None of the above risks currently endanger the company’s
existence. There are at the moment no other identifiable
risks that might endanger the company’s existence.
Description of the risk management system
The Group operates a system for the identification and
control of present and future business and financial risks.
This risk management system was implemented many
years ago in the group. No major changes have been
made to the system. This is nevertheless a living system,
which in the course of continual improvement is subject
to a permanent optimisation process.
» The elements of the risk management system are
−−
the risk management,
−−
the risk controlling and
−−
the risk reporting.
» These are all based on a number of individual evaluations,
analyses, reports and project groups, which analyse
individual processes and circumstances in detail according
to the situation. The responsibility for this task
lies with the responsible departmental or divisional manager
of the relevant shareholding company. These report
direct to the relevant director or board of the company,
who in turn consult on all important matters with
the Chief Financial Officer of Uzin Utz AG, with whom
the overall responsibility lies. The “Central Controlling
(CO)” Department of the parent company coordinates
the risk management elements across the Group. Documents
distributed to the Chief Financial Officer of Uzin
Utz AG are submitted by him if necessary to the complete
Board and the Supervisory Board of Uzin Utz AG
and other circles. The complete risk management system
is designed to identify and counteract risks endangering
the existence of the company at an early stage,
and to ensure the achievement of the business objectives.
The principles, guidelines, processes and responsibilities
of the internal control and risk management system
are defined and established. The risk management
system essentially covers the risk groups described above.
In addition to individual risk management measures,
we act in awareness of risks on the basis of safety-orientated,
professional company management, with appropriate
insurance cover and guidelines and instructions
applicable across the company.
» The highly controlling-orientated and proven cost management
introduced in the past, as an integral component
of controlling, whose importance is even greater
under the existing conditions, will continue to support
the philosophy of revenue-orientated development.
» The statements in the sections “Financial situation”
and “Financial risks” of this report apply for the area of
financial instruments. The result and liquidity risks of
the financial assets are also identified in the form of an
early detection system. The main elements of this system
consist of detailed monthly reporting on al major
balance sheet and P&L positions, a quarterly risk management
report, regular audit discussions on site with
the shareholding companies, an Organisation Manual
which is valid throughout the Group and mandatory, direct
communications channels for the directors of the
shareholding companies with the Board of Uzin Utz AG
on all important matters.
55

Internal control and risk management system
with regard to the financial reporting process
A major component for the avoidance of risks, particularly
in accounting and financial reporting, is the internal
control system. This provides the following features:
» In the Uzin Utz Group, the management and company
structures are clearly defined. Department-wide key
functions are controlled centrally by Uzin Utz AG, although
the individual subsidiary companies retain a high
degree of independence.
» The main functions in the financial reporting process
– book-keeping, finance and accounting and controlling
– are clearly separated. Areas of responsibility are clearly
assigned.
» An adequate system of guidelines is in place (e.g.
Group balance sheet guidelines, travelling expenses guidelines
etc.), and is continually updated.
» The financial systems used are protected as far as
possible against unauthorised access by corresponding
authorisation procedures and access restrictions.
» The financial systems used are based essentially on
the SAP standard. The application programme Excel from
the MS Office suite is used for presentation and further
evaluations.
» Received or transmitted accounting data are continually
checked for completeness and accuracy. Programmed
plausibility checks are carried out by the software
used.
» The control system with regard to the financial reporting
process is designed so as to ensure prompt and
correct accounting of all business processes and transactions.
Changes in legislation, financial reporting standards
and other official requirements are continually analysed
with regard to their relevance and effects on the
group financial statements, and the resulting changes
reflected in the internal Group guidelines and systems.
The control of the group financial reporting process at
Uzin Utz AG is carried out by the central department of
Group Controlling.
» The group companies compile their financial statements
locally and forward them using a data model which
is defined in standard form throughout the Group. The
group companies are responsible for the observation of
the Group guidelines and procedures, and the correct
and timely operation of their financial reporting processes
and systems. The local companies are supported
in the complete financial reporting process by central
contact partners. The consolidated accounts are compiled
centrally on the basis of the data of the subsidiary
companies included in the consolidation group. During
this process, manual checks are continually carried out
by Group Controlling in order to ensure the plausibility
of the forwarded and the consolidated data.
» Internal Audit regularly checks business processes of
both the subsidiary companies and central departments
for correctness, efficiency and security. Internal Audit
reports as an independent body direct to the Board.
» The objective of our risk management system and
our internal control system is to ensure the effectiveness
of business activity and compliance with the relevant
legal regulations.
56

Forecast Report
Future economic conditions
Following the German record year of 2010, growth will
slow down in the year 2011. Experts forecast a GDP growth
of 2.1% to 2.4%. These forecasts are also subject to a certain
risk, due to such factors as the Euro crisis. The World
Bank anticipates an increase of 3.3% for the global economy
in the current year. Emerging and developing countries
continue to be largely responsible for this growth.
» In the opinion of Dipl.-Ing. Herbert Bodner, President
of the Hauptverband der Deutschen Bauindustrie (National
Association of the German Construction Industry),
the German construction industry will again be unable
to keep pace with the growth in the overall economy
this year. This is mainly due to the empty coffers of local
authorities, for which reason a further decline in turnover
must be anticipated in public-sector construction.
For the German construction industry as a whole however,
Bodner forecasts that turnover will stabilise at the
previous year’s level. Experts are also more encouraging
in their forecasts for the year 2012. It could be interpreted
from the assumptions made prior to the BAU 2011
exhibition that the building industry will return to strong
growth and catch up with the economy as a whole.
» Between the end of the year 2010 and the time of
compilation of this report, growth of around 10% was
identified in terms of sales in comparison to the same
period of last year. Although the construction sector has
not yet recovered fully, we are confident that because
of our technical and geographical diversification, we will
continue to achieve very satisfactory results over the coming
years. With our firm foundation, our positioning in
the market and our special closeness to the customer, we
are convinced that we will be able in future to adapt to
current challenges. There are no internal factors known
which might bring into question any conclusions regarding
the currently reported or future situation.
» We will describe below the developments in the regions
most important for the Uzin Utz Group. We will
examine in particular the development in the regions of
western Europe and southern/eastern Europe:
» The economic situation in western Europe falls into
two camps. While countries such as Spain and Portugal
are still having to struggle with the crisis, countries such
as Switzerland, France and the Netherlands are again reporting
better figures. A general upward trend can also
be identified for the current year, although in weakened
form.
» In France for example, a real increase in GDP of 1.4%
is forecast for 2011. Good opportunities in the construction
sector are seen particularly in the extension and
renovation of residential and commercial property and
in craftsmanship construction work.
» The Dutch economy is also on the upturn, and expects
GDP growth of 2% for the current year. It is however
uncertain whether this will benefit the construction
industry to the same extent. Savings measures are now
taking the place of the economic support programme,
which could certainly slow down growth.
» In Great Britain too, it is clear that the building industry
cannot keep pace with the overall economic development.
While growth of up to 2.3% is expected, driven
by exports, no notable growth is anticipated in the
building industry for the year 2011. Only residential construction
is expected to pick up speed again in the next
two years.
» In Switzerland, the robust domestic economy is being
counteracted in the year 2011 by a deterioration in exports.
It is therefore expected that weakened economic
growth of 1.9% will be possible in the current year. Due
to the ending of the economic support packages, the
construction sector, and particularly residential construction,
could also show declining figures.
» While the economic crisis had severe effects on many
southern/eastern European countries in the year 2009,
some of them were able to rescue themselves from the
crisis in the year 2010, in some cases with strong growth
rates. This trend will also continue in the current year.
Countries falling into this category include in particular
the four large national economies of Poland, Turkey,
Russia and Kazakhstan.
» The Polish National economy harbours enormous
potential. In the year 2010, the country achieved GDP
growth of 3.5%. According to the Statistical Office of
the European Union, this growth should improve even
further in the current year to 3.9%. Construction and
installation services will grow in the next three to four
years by approx. 12% per year, supported by such major
events as the 2012 European Championship. Although
commercial and residential construction has not
yet been able to recover to this extent, great potential
is also seen here for the future.
» The Czech economy was also able to finish the year
2010 with GDP growth of 2.4%. A similar increase is
forecast for the current year. For the building industry,
57

the year 2010 was the real crisis year, and is still having
its effects on the current year, although imminent projects
in office and residential construction and EU subsidies
should contribute to the upturn.
Future development of the Uzin Utz Group
Despite the very good chances of a continuing worldwide
economic upturn, the market situation remains unstable
because of certain risk factors. Experience has also
shown that the consequences of the global upturn only
work with a delayed effect on the sectors in which the
Uzin Utz Group operates.
» In the light of these expectations, the Group remains
cautious, but very confident. Unforeseeable developments
beyond the control of the Group, and their concomitant
risks, may still undermine the basis of any forecast.
» From the current point of view and state of knowledge,
the following assessment of the future company
development appears feasible:
» The financial problems of German local authorities
and some European countries are severely hampering the
investment strength of the main markets of the Uzin Utz
Group. Despite this high level of uncertainty and reduced
predictability, we are firmly convinced that we are
well-prepared for the Jubilee year 2011 and for the future
because of the strong market position we have established,
our organisation structure, our broad product
range and our regional diversification.
» Due to this unique position, we are confident that the
stagnation of the construction market will not spread to
the Uzin Utz Group, and that we can therefore expect a
very positive business year 2011. In addition to a further
increase in sales, we also expect an increase in the result
from normal business activities. This performance
will be all the more important since increased costs are
planned for the business year 2011, caused by the forthcoming
Jubilee. In addition to this cost effect, the development
in raw material costs will also constitute an
important factor. In the case of raw materials which are
sensitive to price, demand and volume, contracts will be
concluded with our suppliers which guarantee a specific
offtake quantity, and also a fixed price, for up to one
year.
» The financial situation, which is affected above all by
investments of Uzin Utz AG, will remain relatively stable
in the business year 2011.
» Due to the expected better order situation, a slight
increase in employee numbers is expected. The number
of employees has also been increased by the acquisition
of the Norwegian company Løkken AS by their 20 employees.
» Most of the risks described in the section “Risk report”
also offer opportunities for the Group. Due to its size,
market position and the internal success factors already
described, the Group can and will continue to make
use of every commercially sensible market opportunity
arising in order to increase its market share. The opportunities
offered by strategically sensible company acquisitions
will of course also be examined in detail and
realised where appropriate.
» In particular, the
−−
environment and sector risks,
−−
the product risks,
−−
the financial risks and
−−
the investment risks
continue to offer outstanding opportunities because of
their applicability to all market players, and in view of
the excellent position of the Group in the areas of product
quality, service and Logistics concept. In addition
to the high quality of the products manufactured, our
unique technical consultation expertise and the ability
to deliver almost anywhere in Europe within 48 hours
form the foundations for sustainable success and optimum
utilisation of the opportunities arising.
» We expect the following development for the course
of business in the segments of western Europe and southern/eastern
Europe: in both segments, we expect sales
to remain stable in comparison to the previous year.
Overall, we expect slowed growth in western Europe.
In our opinion, stronger growth could also set in in southern/eastern
Europe.
Significant events following the end of the business
year
On 1st January 2011, Uzin Utz AG contractually agreed
to acquire 80.4% of the shares of Løkken AS in Skien,
Norway. The acquisition of this sales company creates a
launch platform for Norway and Scandinavia as a whole,
since we have access to an already existing sales network.
» There were no further significant events following the
balance sheet date.
58

Research and development activity
Costs for research and development in the Group amounted
to €5.4 million (4.7) in the year 2010. An average of
77 (75) employees worked in the area of R&D / product
technology, who together contributed to a new product
quota of all Uzin Utz development locations of 49% (38).
In terms of individual brands, we can report as follows:
UZIN & codex brands
UZIN has been a brand of expertise of the specialist trade
and specialist wholesale business in the building industry
for 60 years. For this purpose, Uzin Utz AG produces
a wide range of construction chemical products which
have properties specially matched to the application
processes. At the Ulm headquarters, the R&D personnel
research and develop ever newer and more innovative
product systems, in order to facilitate the work of
customers in a systematic way. They develop outstanding
products, whose performance makes them stand
out clearly from the other products on the market, and
provide clearly defined added value for the customer. In
the reporting year 2010, and therefore one year earlier
than planned, the new product quota of 51.9% exceeded
the target of 50% set four years ago for the Jubilee
year 2011.
» In concrete terms, this means that Uzin Utz AG in
2010 generated €46 million of sales with “new” products,
which are no more than 5 years old. The innovation
leadership of Uzin Utz AG was also impressively
confirmed by the representative market survey carried
out by the periodical “Fußbodentechnik” in the 04/2010
issue, which asked 1,500 German flooring businesses to
name their favourite laying materials. Uzin Utz AG emerged
as the “most popular laying material manufacturer
of the year 2010”, and the dry mortar products UZIN NC
170 LevelStar and UZIN NC 182 each took first place in
the categories “Best self-levelling compound” and “Best
low-slump levelling compound”. In the other flooring system
categories of “Primer” and “Adhesive”, the corresponding
UZIN fluid products all gained a place on the
podium. The dispersion products UZIN PE 280 and UZIN
KE 2000 S achieved one third and one second place respectively.
This is the best possible confirmation that the
development results of Uzin Utz AG enjoy the greatest
regard in the sector. Competitive advantages can only
be consistently used, and above-average growth achieved,
with a continual flow of innovations. The continuity
of the research strategy is important both for boom
and for crisis times. The global recession has left deep
scars on many companies, in some cases creating great
uncertainty, although not at Uzin Utz AG. On the contrary,
the R&D strategy of the company is directed in
the long term at the further development of the portfolio,
and at ground-breaking solutions derived from global
trends. Uzin Utz AG has laid the groundwork for sustainable
successes of the business areas of UZIN and codex
with a series of new products. In this case, it was essential
to take into account the paradigm shift in the sector,
according to which success is not determined only
by new products, but also by new effects, new systems
and new system solutions. This decisive contribution
to achieving our ambitious objectives was made by our
highly-motivated R&D personnel, who in 2010 devoted
every effort to bringing new products online, and from
a pipeline of 45 projects at the Ulm headquarters, and
prepared 22 products for market launch.
» The major highlights are described below:
1. Dry mortar developments
a) Laying materials for natural stone
Natural stones are formed by natural processes, so that
unevenness, colour and shape variations cannot be prevented.
Every natural stone is unique, and this uniqueness
therefore also places special requirements on the
laying and jointing. Laying products which preserve the
natural beauty of the stone are therefore all the more
important. For this reason, Uzin Utz AG has set itself the
strategic objective in the area of cement-based natural
stone grouting of offering the craftsman special advantages
in the form of innovations. Following the successful
development in 2007 of a comprehensive grouting range
for ceramic tiles in different shades, extensive formulation
work was carried out in 2010 to produce a total of
9 different colour variants for the natural stone grouting
range codex Brillant cristal. These cement-based natural
stone grouting mortars complete the codex grouting
mortar range in an exclusive way, so that nothing
more stands in the way of their market launch in 2011.
Beginning with the mixing process, through to jointing
and washing of the natural stone joints, outstanding
added value has been provided for natural stone layers.
The finished natural stone joint appearance also stands
out for the full joint filling and the exceptional look. The
new, very low-emission grouting mortars for natural
59

stone are convincing above all for the very fast crystalline
water bonding, and therefore provide genuine stability
of form and high colour-fastness of the jointed natural
stone covering. In comparison to existing products
on the market, the new developments also demonstrate
the advantage of optimum flank adhesion, combined
with the perfect balance between hardness and flexibility,
so that even with unfavourable joint geometries
and natural stone tile dimensions, no cracks can form.
In parallel with these development activities, extensive
tests were carried out in order to achieve the best possible
classification of CG 2 WA to DIN EN 13888. The
CG 2 WA classification stands for the fulfilment of the
highest possible strength requirement, the lowest possible
water absorption (W) and the highest abrasion
resistance class (A) in this product group. The further
activities of the dry mortar specialists focused on the
completion of the natural stone range, and the objective
of providing a quick-hardening, white, cement-based
special medium-bed mortar ready for market launch in
2011. With the product codex Stone SX 60 MB, whose
development was largely completed in 2010, sensitive
natural stone coverings can now be laid reliably and without
discoloration. This product also stands out for its
accelerated setting, which holds the water in the mortar
by means of fast crystal formation, without giving it off
to the natural stone. Thanks to the use of special white
cements, the product can also be used for light, translucent
natural stones. As one of the few laying material
manufacturers for tiles and natural stone, codex recognised
the trend towards very low-emission and therefore
healthy living products at an early stage, and formulated
the new codex product line “ecoTec”, which also includes
the newly developed products of codex Brillant cristal
and codex Stone SX 60 MB. These comply with the best
possible emission requirement class Emicode EC 1 R Plus.
b) Reduced-dust dry mortar products
The specialist department of Dry Mortar Development
has succeeded in comprehensively assessing the structural
and effect principle of suitable fluid dust-removal
additives. The high-quality results obtained from this
work were used for the development of a reduced-dust,
self-levelling cement levelling compound prototype for
the market segment UZIN, and for the development of
the reduced-dust thin-bed mortar codex Power CX 5.
The product codex Power CX 5 demonstrates particu-
larly favourable application properties in comparison to
normal reduced-dust products on the market. Particular
properties which should be mentioned include the outstanding
non-slip characteristics, even when using large-format
tiles, smooth working without standing time
and the particularly long open time. Work safety is also
greatly improved with regard to dust reduction by means
of the special formulation used. Due to the new, innovative
and advanced formulation, with up to 90% less
dust reduction during mixing, codex Power CX 5 is one
of the absolute top products amongst low-dust, thinbed
mortars on the market.
c) Low-slump levelling compounds
With the market launch of the new Level Plus Effect generation
in 2008, Uzin Utz AG set new standards in the
area of “self-levelling compounds”, impressively demonstrating
its position as the technology leader. The last gap
in the levelling compound sector is now being closed with
the optimisation of the low-slump, cement-based levelling
compound UZIN NC 182. Although the existing product
was voted one of the most popular “low-slump levelling
compounds” in the survey, the specialist department of
Dry Mortar Development has improved the formulation
even further. True to the motto “making the best lowslump
levelling compound even better”, the powder specialists
succeeded in providing the new product with accelerated
hardening, both at low application temperatures
and high layer thicknesses. At the same time, the formulation
was also change slightly in order to improve the
modelling capability and the surface finish. The requirements
have also been created to enable us to advertise
in future with the most prestigious eco-labels, and the
best known in Germany, such as the Blue Angel and Emicode
EC 1 R Plus. The new product also guarantees a better
composite adhesion of the adhesive on the compound
layer in the case of direct upper covering application. Two
new low-slump, cement-based levelling compounds were
also developed for the Scandinavian market. UZIN NC
181 and UZIN NC 184 can be applied to various substrates
without priming, and are ready for laying after only
one hour. Both new products meet the highest emission
requirements of Emicode EC 1 R Plus and their application
consistency can be varied by individual water dosing.
d) Support of the locations in Soissons and Legnica
A further focus of activities at the headquarters in 2010
60

was the “transfer” of the new levelling compound technology
“with Level Plus Effect”, already marketed with
great success in Germany, to our foreign dry mortar
works. In this case the objective was to adapt the product
formulations and production processes of UZIN NC
175 Neu and UZIN NC 170 LevelStar to the local raw material
circumstances of the location in Soissons, in order
to fulfil essential requirements for the risk management
and any potential loss of production in Ulm. The cementbased
levelling compound UZIN NC 395 was also re-formulated
with raw materials locally available in France,
adapted to local requirements and therefore prepared
for the French market launch under the name UZIN NC
495. Further extensive development support was also
carried out for the works in Legnica, to be able to provide
a new self-levelling compound UZIN NC 146 adapted
to the local eastern European market requirements.
The thin screed UZIN NC 195 S was also improved with
regard to the coverage and surface smoothness and prepared
for its market launch in Poland and Scandinavia.
e) UZIN TurboLight-System®
In close cooperation with Application Technology, we succeeded
in bringing the new UZIN TurboLight-System® to
the point of market readiness with some unique advantages.
The advantages are clear to see: the times until
laying readiness of the system, which is also heat-insulating,
have been reduced by about half in comparison
to dry screeds. With this system, the supporting substrate
is subjected to only one third of the load of conventional
screeds. Areas of unevenness from 8 mm to
30 cm can also be levelled off seamlessly with this system.
Last but not least, the composite can also be used
without restriction in damp areas. This innovation, for
which a patent has been applied, is a system of laying
materials perfectly matched to each other, and is ideally
suitable as a problem-solver for construction sites with
tight deadlines and large areas of unevenness in the renovation
area. Textile and elastic floor coverings, parquet
and tiles can all be laid on this fast-hardening system
using the usual methods. System consists of the fast
light smoothing mortar UZIN NC 194 Turbo, the renovation
fleece UZIN RR 201 and the composite levelling
compound UZIN NC 195 Neu. The light smoothing mortar
UZIN NC 194 Turbo hardens largely without shrinkage,
and is one of the key components of the system,
consisting of special fast cement bonding agents and
light additives. The re-formulation of the composite levelling
compound UZIN NC 195 was also completed in
the course of preparation and testing of this new system.
2. Fluid product developments
a) Solvent-free dispersion contact adhesive
The project “Solvent-free, very low-emission dispersion
contact adhesive” was developed under the direction of
the R&D specialist department of Uzin Tyro AG, and the
resulting product successfully tested in close cooperation
with the Central Laboratory in Ulm, in order to prepare
it for market launch in 2011. After several years of
development work, we can now supply for the first time,
and on the 100-year Jubilee of Uzin Utz AG, a solventfree
neoprene contact adhesive on an aqueous dispersion
basis, which covers the complete application range
of products with a high solvent content and high initial
strength, which were previously considered to be indispensable
for this purpose. With UZIN WK 222 we have
succeeded in developing an outstanding new product,
with which skirting rails, profiles and floor coverings can
be fitted to stairs, walls and ceilings in future without any
risk to health, without the floor layer having to change
the method of application. Since the complete, group-wide
discontinuation of solvent use has been defined as an
important objective for the coming years, this innovation
represents a further milestone in ecological building.
b) Laying materials for the fixing of floor coverings
PVC design coverings are a trend with market potential,
are enjoying increasing popularity and are ideally suitable
for shops, hotels and residential areas. For this application,
the R&D Fluid Products specialist department
has developed the new product system UZIN U 3000 for
a very special method of ergonomic laying of dimensionally
stable PVC design coverings. The ready-to-use dispersion
system, consisting of the fast fixative UZIN U
3000 RollFix and the matching UZIN U 3000 Primer, is
in its application range an outstanding addition to the
already existing alternative product recommendations
UZIN KE 66 and UZIN Sigan 2, particularly for smaller
areas. The new technology used is ideally suitable for
simple applications, and enables particularly convenient
working in the standing position. It also allows seamless
laying, and if necessary also the simple replacement of
individual floor covering elements. A further plus point
of the new system is that laid areas are immediately set
61

for foot traffic and loading. Thanks to the low application
quantity, the impression characteristics are reduced to a
minimum. The newly developed adhesion fixative for design
coverings differs from existing competitor products
due to the significantly better application properties and
a longer open time. The development specialists have
also formulated a new universal fixative tailor-made for
the local requirements in the eastern European market.
The newly developed product UZIN U 500 has been designed
as a special fixative for this market, and has the
decisive advantage over local competitor products that
PVC and CV floor coverings in residential applications
can be laid easily and cost-effectively by rolling the fixative
onto different substrates, with correspondingly
low material consumption.
c) Products for special applications
The polyurethane levelling compound UZIN KR 410 has
been upgraded to very low emission levels by extensive
re-formulation work, and now complies with the best
Emicode class EC 1 R Plus. The optimised product has
also been given better coverage, the trowel application
has been made easier and the surface finish looks much
more homogenous. A new fibre-conductive dispersion
adhesive has also been developed for industrial applications.
UZIN IN 19458, an adhesive for PVC, rubber and
textile floor coverings, is outstanding particularly for
its high initial conductivity and its excellent adhesion,
particularly in combination with floor coverings with a
high softener content on double floor panels with metallic
and mineral substrates.
d) Parquet laying materials
As announced, Uzin Utz AG discontinued the sale of solvent-based
parquet adhesives for the German market at
the beginning of 2011. Not only for this reason was it that
the focus remained heavily on the parquet area again in
2010. A whole range of ground-breaking new laying materials
were developed. The first of these that should be
mentioned is the group of moisture-hardening 1-K parquet
adhesives which are both solvent-free and waterfree,
and on the basis of information recently published
by the “Berufsgenossenschaft Bau” (“Building Trades Association”)
can now be officially classified as substitute
materials for solvent-based parquet adhesives. Uzin
Utz AG has for years produced parquet adhesives whose
serration hardness is unique in the market. UZIN MK
95, an innovation in polyurethane adhesive technology,
was unmatched for a long time, and was also not surpassed
by the silane-terminated adhesive UZIN MK 100,
since adhesives with silane adhesive technology usually
demonstrate a lower performance range in this respect.
They could however compensate for minor disadvantages
of polyurethane technology, such as perhaps the more
difficult and complex application. Intensive efforts were
therefore devoted to combining the best properties of
both adhesive technologies. The adhesives experts solved
this problem in an impressive way with the development
in 2010 of a new silane-terminated polyurethane
adhesive. A new era in parquet flooring has begun with
the new product UZIN MK 200. It combines the longproven
polyurethane technology with the technical work
safety advantages of silane technology. Through the use
of a new hybrid bonding agent technology, the R&D Fluid
Products specialist department has solved the problem
of how to bring the strengths of two technologies
down to an outstanding common denominator using a
modular design principle. The result is the first 1-K silane-terminated
adhesive with a hard-elastic and simultaneously
fast-setting adhesive serration. Its relatively
high serration hardness is almost equivalent to that of
1-K polyurethane adhesives, although the product still
has excellent spreading properties. The moisture-hardening
1-K silane-terminated adhesive is characterised by
the following plus points of the completely new standard:
Firstly, the hard-elastic adhesive serration with very
high shear strength and very good spreading properties,
and secondly the extremely fast drying properties with
simultaneously long open time. The parquet layer thus
receives a product which is extremely easy to apply and
lay, which greatly restricts wood deformation and joint
formation, and allows him to sand the surface after only
12 hours. This solvent- and water-free adhesive is approved
for all parquet types and formats. Following successful
emission testing, the new product has been classified
in the best Emicode class EC 1 R Plus.
» In addition to this work, the development of a special
product for the export market was successfully completed,
and the solvent-free dispersion parquet adhesive
UZIN MK 61 prepared for its forthcoming market launch
in 2011. In the reporting year, the important tasks of the
R&D Fluid Products specialist department included not
only the development of new products, but also the qualitative
further development of existing products. The
62

most recent example of such an optimisation in 2010
was the final formulation of the low-water and very lowemission
dispersion parquet adhesive UZIN MK 80 S Neu.
The spreading characteristics and also the filming speed
have both been significantly improved. The new development
now offers a significant advantage over comparable
products on the market with regard to wood deformation
when laying 2-layer parquet. The new product
contains less water, and as a system component has
been specially matched to the dispersion parquet primer
UZIN PE 380 Neu. In the course of this work, the
corresponding dispersion primer UZIN PE 380 was also
optimised, in order to simultaneously improve the performance
of the basic parquet system. Since its further
development, the new primer for absorbent substrates,
on which the parquet can be laid direct with dispersion
parquet adhesives, complies with the requirements of
the most demanding and best-known emission labels in
Germany – the “Blue Angel” and “Emicode EC 1 Plus”.
The optimised system “UZIN PE 380 - UZIN MK 80 S”
therefore represents an important alternative for use in
buildings in which technical functionality and the strictest
ecological criteria are of the utmost importance.
3. General building approval for parquet adhesives
Due to changed stipulations in the Construction Regulations
List B Part 1, an “allgemeine bauaufsichtliche Zulassungspflicht”
(abZ) (“general building approval obligation”)
applies since 1st January 2011 for parquet adhesives
which are intended for use in regularly used rooms. This
means that only parquet adhesives which have been approved
by the Deutsches Instituts für Bautechnik (DIBT)
(“German Institute of Building Technology”), and are designated
by the monitoring symbol (Ü) may be used in
such areas. Infringement of this requirement constitutes
an offence, and can lead to the customer rejecting
acceptance of the service. The initiation of this regulation
is subject to the EU Building Products Directive and
the main requirement contained in it regarding “Hygiene,
health, environmental protection”, the purpose of
which is to protect users of buildings against emissions
(VOCs) from building products. However, since VOC requirements
are not yet regulated at the EU level, it has
only been possible to specify “national” emission limit
values. For this reason, the DIBT requires an emission
restriction in regularly used rooms for all parquet adhesives,
which is based on a special test schedule of the
“Ausschuss zur gesundheitlichen Bewertung von Bauprodukten”
(AgBB) (“Committee for the Health Assessment
of Building Products”) already existing in Germany,
and following successful testing issues an approval,
which is valid for five years. The specialist departments
of Chemical Analysis, Product Safety and Fluid Product
Development have subjected all parquet adhesives of the
product range to the AgBB test procedure and qualified
them for the abZ certification. This provided the requirement
for the Ü-designation for the parquet adhesives
UZIN MK 80 S Neu, UZIN MK 92 S, UZIN MK 92 S dark,
UZIN MK 100 and UZIN MK 200 and a large number
of own-brand products, and the necessary works production
controls were also installed. Extensive preparations
were also made during the reporting year in order
to comply promptly with the next approval obligation
for the product group “floor covering adhesives”, which
will in future be subject to these regulations and is due
to come into effect on 1st January 2012.
4. Ecology and other product safety topics
a) Sustainability
For Uzin Utz AG, sustainability is more than just a marketing
trend. Sustainability is a fundamental requirement
on building works and building products, and will
therefore become a key success factor for the construction
industry over the coming years. Our uniform
long-term thinking shows that sustainability at UZIN
Utz AG is not just a convenient label, but is regarded as
a sign of great commercial responsibility. Sustainability
is therefore not regarded as being one-dimensional, but
also takes into account ecological, economic and social
considerations. Now that the interdisciplinary project
“Sustainability” has been in hand for several years with
very great success by the specialist department Product
Safety, together with the company management,
Uzin Utz AG succeeded in 2010, as the first company in
the field of laying materials, in producing environmental
product declarations, so-called EPDs, for a complete
system, and having them assessed externally by the
“Sachverständigenausschuss des Instituts für Bauen und
Umwelt” (“Expert Committee of the Institute for Construction
and the Environment”). EPDs are the most suitable
instrument for providing valuable and trustworthy
ecological product data for architects and planners.
So far there are no EPDs from any market participants
in the sector, neither for corresponding products nor for
63

a complete laying materials system for flooring construction.
Here Uzin Utz AG, as the leader in the sector,
has produced EPDs for the complete system structure
in the reporting year, and has had them validated. This
consists of the dispersion primer UZIN PE 60 and the
mineral levelling compound UZIN NC 170 LevelStar for
the substrate preparation and the dispersion products
UZIN KE 66 or UZIN UZ 88 for the laying of the relevant
floor coverings. For the first time, complete calculations
are now possible, which can be included in the building’s
eco-balance. Uzin Utz AG shows by this example that
ecological responsibility and product innovation are by
no means mutually contradictory. Internal key ecological
figures have also been established for the first time,
which also document a quantitative confirmation of the
sustainability initiative. 76.2% of the company’s sales in
2010 were generated with products which comply with
the strictest ecological emission requirements, such as
those of the Blue Angel and the Emicode. Uzin Utz AG
therefore stands out not only for its technical expertise
on all aspects of flooring, but is also setting new standards
in the sector, which also take into account quantitative
ecological aspects. Here the company has been
the first to put sustainability activities on a confirmable
and verifiable foundation.
b) New Emicode “EC 1 Plus”
For many years now, Uzin Utz AG has placed the focus of
its activities on the development of products which are
“safe” for the environment, the floor layer and the endconsumer.
With the assistance of the R&D specialists of
Uzin Utz AG, the “Gemeinschaft Emissionskontrollierte
Verlegewerkstoffe, Klebstoffe und Bauprodukte” (GEV)
(“Association for emission-controlled laying materials,
adhesives and building products”) has revised the Emicode
classification for building products. Amongst other
things, they have developed a new premium class “EC 1
Plus”, which even exceeds the demanding requirements
of the previous highest category “EC 1 – very low-emission”.
The “new” EC 1 Plus limit values are therefore stricter
than the limit values required for Blue Angel certification.
The “new” Emicode has one decisive advantage
in comparison to the old system: Due to the modified
emission testing procedure, t is now possible for the first
time to make direct comparisons of the test results to
the Blue Angel, the AgBB system and the Emicode. Only
one emission test will therefore be required in future in
order to obtain certificates of different emission seals.
With an eye to future European regulations, such as the
revision of the EC Building Products Directive and the
building approval obligation for parquet adhesives from
1st January 2011 and for floor covering adhesives from
1st January 2012, the specialist departments of Chemical
Analysis, Product Safety and Fluid Product Development,
in a comprehensive test procedure, have subjected
the existing ecological product range to the new certification
system and adapted it to the “new” Emicode requirements.
Despite this high hurdle, a major proportion
of the products previously designated as EC 1 will in future
comply with the stricter criteria of the “new” label
EC 1 Plus, since this ecological product area always had
to meet a high internal quality standard at Uzin Utz AG.
About 75% of the previous EC 1 products have now been
qualified for the new exclusive class EC 1 Plus.
c) REACH
From 1st December 2010, under the REACH requirements,
there exists a notification obligation in the CLP directory
(Classification, Labelling and Packaging) of the European
Chemical Agency ECHA for importers of raw materials
from non-EU countries. As an importer of non-EU raw
materials, Uzin Utz AG is therefore always subject to this
notification obligation, firstly if products are imported
which contain hazardous substances requiring a particular
designation of the product, and secondly if products
are imported which are not subject to designation, and
contain substances which are not dangerous but subject
to registration, and which exceed the reference limit of
one tonne per year. In order to comply with these obligations,
which are coupled to the REACH requirements,
substantial capacity in the specialist department Product
Safety was applied in the reporting year 2010 to
make the necessary contribution to the intended comprehensive
European database for the classification and
designation of the substances described above.
5. Quality assurance system
within the Uzin Utz Group
The general objective of quality assurance management
and the internal control system is to ensure the quality
of UZIN products, which is acknowledged worldwide.
The specialist departments of Quality Management
and International R&D started a comprehensive project
in 2010, in order to ensure that certain product groups
64

which are produced at different locations within the
Uzin Utz Group, can be produced worldwide according
to the same standards. We will therefore be able in future
to produce identical product qualities in all works.
At the same time, this will also create the requirements
to achieve delivery reliability of products in emergency
management scenarios by means of a redundant system.
In the event of a production stoppage at one works, delivery
reliability could then be maintained by an alternative
production location. The fundamental component
of this project is the harmonisation of testing methods
and product specifications in all corresponding works of
the Uzin Utz Group. In the first step, the central department
of Quality Management has made various regular
target and method agreements with the responsible local
quality assurance personnel of the subsidiary companies.
Testing methods, specifications and quality assurance
procedures have been further standardised, and the
conclusiveness of modern testing procedures investigated.
The main results of these quality assurance measures will
now be systematically recorded and centrally evaluated.
» In addition to the products and activities of the year
2010 described here, and in order to maintain our innovation
lead, numerous other product optimisations were
implemented, and other work carried out which will not
be described separately at this point.
UZIN switchTec
Changed user behaviour and requirements for
healthy living
In Europe and the western European foreign markets of
Uzin Utz AG, a change has occurred in recent years in
demand behaviour in the construction and renovation of
residential and commercial properties. In the case of renovation
in particular, users are increasingly less prepared
to accept the stoppage times and hindrances usually associated
with such work. They now demand fast and flexible
solutions, which are also reversible with little effort.
» Investors and end-consumers are also becoming more
sensitive to internal room hygiene and living quality, and
therefore the need to use products which wherever possible
do not give off substances into the room air, and
that these emissions do not pose any health risk.
» The switchTec dry adhesive technology has, since the
beginning of its development in the 1960’s, been a synonym
for fast, clean and flexible renovation with very
low emissions.
EMICODE
In order to emphasise our pioneering role for a healthy
room climate, we have modified our area products Uzin
Sigaway, Uzin Supertape7900, Uzin Sigan1, Uzin Sigan2
and Uzin Sigan3 according to the latest GEV classification
criteria for the EMICODE. At the beginning of the
Uzin Jubilee year 2011, all these area products now fulfil
the criteria for the highest class EMICODE EC1PLUS:
“very low-emissionPLUS”.
Blue Angel
The products Uzin Sigan1, Uzin Sigan2 and Uzin Sigan3,
together with the corresponding edge tapes Sigan1Tape,
Sigan2Tape and Sigan3Tape, have been re-formulated to
comply with the material criteria for the quality seal of
the “Blue Angel”, which is well known by end-customers.
» The products have also been made significantly more
robust against conditions occurring during normal use
(e.g. moisture penetration due to cleaning etc.). All Sigan
products are easy to apply, are guaranteed to be able to
be applied bubble-free and can be easily repositioned if
required. Adhesion forces adapted to the relevant application
purpose guarantee reliable use and residue-free
removal even after years of intensive use, something
which is unique in this product quality.
Uzin Planus
In order to offer complete systems, the dispersion primer
Planus has also been re-formulated in accordance with
the requirements for the Blue Angel, and upgraded to a
modern raw material basis. Here we have succeeded in
developing a very low-emission, film-forming special primer,
based on aqueous dispersion polymers, which also
has improved application characteristics. Following the
philosophy of the switchTec product line, the new Planus
also demonstrates excellent resistance to the usual
effects of such things as moisture and softeners. The
new formulation can also be sanded, and can therefore
could easily be re-worked if required, which further
increases the flexibility and recyclability of the system.
» Uzin Planus also complies with all the requirements
for EMICODE EC1PLUS “very low-emissionPLUS” and the
Blue Angel.
» Uzin is therefore the first supplier of a complete system
consisting of a dry adhesive (Sigan 1) in conjunction
with a primer (Planus) with the combined designation
“very low-emissionPLUS” and “Blue Angel”.
65

WOLFF brand
The year 2010 also saw the completion of the development
of the Gecko Flex. This machine has been specially
developed for the sanding of parquet edges, and extends
the range of conventional edge-sanding machines of the
Pallmann brand.
» The Mambo Evo single-disk sanding machine has also
been provided with new electronics with improved operation.
The guide handle has also been completely redesigned
and provided with fully-variable adjustment.
» The Wallmaster is a new special tool in the WOLFF
range. This tool is ideal for the finishing of bases and
trough formation. Its special shape enables several functions
required when laying PVC coverings with overlap:
marking the height of skirting boards, cutting the mitres
in the inner and outer corners and neat shaping and
pressing into corners without the danger of piercing the
covering.
» The Ergo Cutter completed in 2010 is also a great aid
for the craftsman. This is a pre-cutting device for old coverings
which can be used in the standing position. In
the past, such work had to be done laboriously on the
hands and knees.
Pallmann brand
The research and development of the Pallmann brand
was marked in the year 2010 by numerous innovative
research projects and development activities important
for the parquet sector.
» An extract of the activities of the Development Department
is given below:
» Mandatory legal regulations, such as the designation
obligation for systems containing >5% solvents, and
the replacement of systems containing NMP comprised
the main company policy activities of the R&D Department.
It should also be emphasised in particular that in
addition to the use of substitute raw materials, many of
the PALL-X products were improved with regard to such
properties as appearance, coverage and ease of application.
The activities focused on the reduction of the solvent
content (to 30%) and the improvement of the sanding
capability.
» Further research activities took place in the area of
a new type of coating for parquet surfaces to be sealed
on the construction site. The objective was to develop
a coating which achieves its full load-bearing capability,
both chemically and mechanically, immediately after
application. This requirement can only be achieved
with a UV sealant.
» The research activities took place in the areas of priming
(Flash-Light Base) and topcoats systems (Flash-
Light-Coat), which were developed to the point of marketability.
As a 100%-system, the primer offers optimum
preparation of the floor. Because no drying of the system
by means of emissions has to take place (solvent-free),
the hardening can begin directly after application. The
topcoat system is water-based and solvent-free – here
too, hardening can take place after only a short drying
time. The mobile hardening unit (Flash-Light-Mobile) was
optimised in close cooperation with the WOLFF brand
of Uzin Utz AG.
» Further research activities were carried out in conjunction
with the shareholding company Unipro. The solvent-free
2-K coating Qeshfloor 7750, which is applied
to different PU and epoxy substrates, was developed for
the Qeshfloor brand. The application of this protective
film provides very good resistance against chemical and
mechanical stress.
» A country-specific range of coatings was developed
in order to open up the French market. The concept includes
primers and topcoat systems which are both water-
and solvent-based.
Jordan Lacke brand
The research and development of the Jordan Lacke brand
in the year 2010 was characterised by many innovative
research projects and development activities important
for the furniture sector.
» An extract of the activities of the Development Department
is given below:
» The focus of the research activities lay on the reduction
of the solvent contents. This resulted in the development
of the system 2K Decolux 672 amongst others.
This is a solvent-based 2K layer coating, which in addition
to the low solvent content also complies with the requirements
of the Decopaint guideline. 2K Decolux 672
is a transparent, high-fill, light-fast coating for interior
application.
» A further Decopaint-compliant product is 2K Deco-
Soft-Touch 692. This system is transparent, with a dull
matt appearance and a pleasantly soft, “rubbery” feel.
Such soft-touch surface finishes are very common in automotive
interior design, although there are hardly any
comparable products for wood surfaces.
66

» One special product in this line is the newly developed
2K Classic Glow Effect. This system continues to
glow for a certain time in the dark, and is therefore ideal
for use in public areas, for example where escape routes
need to be indicated in the dark following a power failure.
Arturo brand
The synthetic resin is developed and produced by Unipro
B.V., a company of the Uzin Utz Group, in Haaksbergen
(NL). Unipro is the knowledge centre for fluid floor coatings
produced using synthetic resin.
» A completely new synthetic resin flooring concept
was to be launched onto the market at the 2011 BAU
exhibition in Munich under the new Arturo brand. The
projects relating to this new concept were therefore at
the top of the priority list for R&D in 2010. The aim of
this concept is to merge the product and design into a
unique end result. Unipro aims to develop into a specialist
not only for functional flooring, but above all for design
flooring. The floor represents an important functional
foundation of any room. The functionality is certainly
not determined only by practical aspects. The floor also
influences the atmosphere and the mood of a room in
which one lives and works.
» In addition to the already existing coverage coatings
of polyurethane and epoxy, a completely new, non-yellowing
polyurethane flooring was developed on the basis
of a technology which is completely new to Unipro:
the PU 2030. This was carried out using raw materials
which were completely new to us until recently, and
which have quite individual characteristics. This flooring
will be introduced and available in all colours by the end
of the year.
» In cooperation with JP Coatings in Würzburg, a matt,
transparent “top sealant” was developed, which is the
first coating on the market to be completely solvent-free
and offers unique colour reproduction. This product was
launched in the second half-year 2010.
material purchasing. Positive effects have already been
achieved in many areas by the improved products, such
as with the RZ Elastic Wipe-Care, which since September
has had an optimised pH-level.
» The past research and development year concentrated
particularly on the further extension of the overall
RZ Turbo Protect concept. RZ Turbo Protect is a unique,
solvent-free 2K sealing coating for extremely long-term
protection of elastic floor coverings. It stands out clearly
from all alternatives currently on the market. The product
only has to be applied once, and the floor is then
protected against even the highest stresses. There are
also further product advantages in the area of environment
and health: the coating is water-based, solventfree
and has a neutral odour. This top product has now
been presented to all well-known floor-covering manufacturers,
tested and officially recommended. The combined
expertise of the Uzin Utz brands of Pallmann and
RZ, and the flooring expertise of the UZIN brand have
all gone in to the development of this product.
» RZ Chemie was also commissioned with the development
of new products supporting the overall “Turbo
Protect” concept. A special PU Wipe-Care, a neutral
Turbo fast basic cleaner and a surface renovation product
have all been developed around the sealing coating,
successfully rounding off the range. An odourless,
aqueous basic cleaner was also developed on the basis
of the existing formulation of the RZ basic cleaner. The
advantages of the formulation include its rapid action
and the technical characteristic of being able to remove
particularly old, metal-crosslinked care film layers more
effectively.
RZ brand
In the third year of its membership of the Uzin Utz Group,
the incorporation of the RZ laboratory into the network
of the Group was almost completed. The focus in 2010
lay in particular on the further optimisation of formulations.
The rationalised range was further improved,
including the areas of raw material selection and raw
67

Existing branches
The shareholding struck chart and the locations of the
shareholding companies in the group can be taken from
the section “Shareholdings” in the Appendix.
» In addition to the Ulm location, the company has a
further production location in Vaihingen/Enz, which is
devoted exclusively to the production of the machines
of the WOLFF brand.
» The company also operates a representative office in
Minsk, Belarus.
» Uzin Utz AG also operates three service centres throughout
Germany. These are training and communications
centres for craftsmen, the trade and project managers
at the strategically important locations of Dresden, Meckenheim
and Munich.
» The French shareholding company based in Soissons
also maintains a sales office in Paris.
Special features of the Group situation report
» All companies not included in the Group financial
statements are of only minor importance for the Group
financial statements.
Ulm, 18th March 2011
The Board
68

Visit us at:
www.uzin-utz.de
Investor Relations Internet Service
Uzin Utz AG financial report for the year 2010 is available
as PDF-file for download.
Please visit www.uzin-utz.com, category »Investor Relations«.
Imprint
Published by
Uzin Utz Aktiengesellschaft
D-89079 Ulm
Investor Relations
Produced by
Uzin Utz Aktiengesellschaft
Siegfried Galter, Ulm
büro ballweg, ulm
Designed by
büro ballweg, ulm
BHP design ballweg & hupe partner, München
Photography
Sven Erik Klein, Saarbrücken
Photography (Portraits)
Sven Erik Klein, Saarbrücken
Rebecca Rayher, Wendlingen
Text
Uzin Utz Aktiengesellschaft
Siegfried Galter, Ulm
Printed by
mediaGroup le Roux, Erbach

2010
Dieselstrasse 3
D-89079 Ulm
Phone +49 (0)731 4097-0
Fax +49 (0)731 4097-110
www.uzin-utz.de
A very special year for Uzin Utz AG
also warrants a special business
report. We have therefore decided to
tread new paths in graphic design –
beginning with this business report:
every year we will commission
a recognised photographic artist
with the visualisation, so that every
individual business report has its own
unique, aesthetic concept.
The first of these is Sven Erik Klein.
His selection of the motifs reflects the
values of our company. Much of the
photography took place here in the
region, because global presence does
not exclude keeping both feet firmly
on the ground in the local region.
Born in 1974 in Illertissen near Ulm,
Sven Erik Klein, is a graduate of the
Karlsruhe Design College, and has
studied under such well-known
artists as Candida Höfer, Günter
Förg and Marie-Jo Lafontaine. He
operates a studio in Saarbrücken.
In addition to solo exhibitions such
as in the “Stadthaus” in Ulm, the
Goethe Institute in Nancy or the
Saarland Gallery in the “Palais im
Festungsgraben” in Berlin, Klein has
also participated in group exhibitions
in the “Literaturhaus” in Munich and
in the Ulm Museum. His photographic
works are represented in many public
and private collections.
Cover picture:
Brenz spring in Königsbronn