A hundred-year balance Annual Report 2010 - Uzin Utz AG
A hundred-year balance Annual Report 2010 - Uzin Utz AG A hundred-year balance Annual Report 2010 - Uzin Utz AG
A hundred-year balance Annual Report 2010
- Page 2 and 3: Investor Relations Overview Key-Dat
- Page 5 and 6: foun dation of success
- Page 7 and 8: Letter to the shareholders Intervie
- Page 9 and 10: 1916 1917 1918 1919 1920 The Trans-
- Page 11 and 12: 1926 1927 1928 1929 1930 Charleston
- Page 13 and 14: What grows out of the insignificant
- Page 15 and 16: 1946 1947 1948 1949 1950 The produc
- Page 17 and 18: DI REC 1956 1957 TION 1958 1959 196
- Page 19 and 20: codex The different demands and req
- Page 21 and 22: LO CA 1966 TION 1967 1968 1969 1970
- Page 24 and 25: Clarity of Objectives and Transpare
- Page 26: Blautopf in Blaubeuren
- Page 29 and 30: Syn er gy 1986 1987 1988 1989 1990
- Page 32 and 33: Bonding Force and Expansion »» Re
- Page 34: Donautal in the sun
- Page 37 and 38: EAR NI NG 2006 2007 2008 2009 2010
- Page 41 and 42: al ance of success
- Page 43 and 44: Uzin Utz Aktiengesellschaft, Ulm (D
- Page 45 and 46: Uzin Utz Aktiengesellschaft, Ulm St
- Page 47 and 48: Uzin Utz Aktiengesellschaft, Ulm (D
- Page 49 and 50: Uzin Utz Aktiengesellschaft, Ulm (D
- Page 51 and 52: group is subjected to strict qualit
A <strong>hundred</strong>-<strong>year</strong> <strong>balance</strong><br />
<strong>Annual</strong> <strong>Report</strong> <strong>2010</strong>
Investor Relations Overview<br />
Key-Data in <strong>year</strong>ly comparison<br />
<strong>2010</strong><br />
2009<br />
2008<br />
2007<br />
2006<br />
2005<br />
2004<br />
Group<br />
IFRS<br />
Group<br />
IFRS<br />
Group<br />
IFRS<br />
Group<br />
IFRS<br />
Group<br />
IFRS<br />
Group<br />
IFRS<br />
Group<br />
IFRS<br />
Revenue data<br />
Sales revenues<br />
184.2<br />
172.2<br />
177.4<br />
166.1<br />
152.1<br />
138.5<br />
121.9<br />
Sales revenues growth<br />
Result from<br />
ordinary activities<br />
7.0<br />
14.4<br />
-2.9<br />
11.0<br />
6.8<br />
10.5<br />
9.2<br />
12.0<br />
9.8<br />
11.3<br />
13.6<br />
9.6<br />
17.9<br />
6.7<br />
Net profit<br />
9.6<br />
7.1<br />
7.8<br />
8.6<br />
8.3<br />
6.3<br />
4.7<br />
Financial data<br />
Investments<br />
6.9<br />
3.2<br />
7.7<br />
14.9<br />
7.3<br />
16.3<br />
17.1<br />
Depreciation<br />
Cash flow<br />
from ordinary activities<br />
5.6<br />
14.3<br />
5.4<br />
17.0<br />
5.2<br />
11.0<br />
4.9<br />
9.8<br />
4.9<br />
11.3<br />
4.5<br />
6.8<br />
3.8<br />
6.5<br />
Balance sheet data<br />
Total assets<br />
Accounts<br />
receivable<br />
Inventories<br />
Fixed assets<br />
Liabilities<br />
(incl. provisions)<br />
Equity capital<br />
(incl. third parties)<br />
Personnel (average)<br />
167.3<br />
25.7<br />
25.3<br />
95.5<br />
90.1<br />
77.1<br />
841<br />
154.7<br />
22.7<br />
20.1<br />
91.5<br />
87.0<br />
67.6<br />
859<br />
160.8<br />
24.0<br />
21.7<br />
93.8<br />
97.7<br />
63.0<br />
806<br />
154.0<br />
25.1<br />
22.8<br />
88.9<br />
94.3<br />
59.7<br />
720<br />
136.0<br />
24.4<br />
18.9<br />
79.5<br />
81.7<br />
54.3<br />
659<br />
126.1<br />
21.3<br />
17.3<br />
77.5<br />
76.5<br />
49.5<br />
656<br />
112.0<br />
19.1<br />
15.0<br />
66.0<br />
70.7<br />
41.3<br />
611<br />
Performance <strong>2010</strong><br />
turnover of all stock exchanges<br />
closing price<br />
<strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong><br />
Shareholder Structure in %<br />
turnover in EUR<br />
closing price in Euro<br />
2.000<br />
25<br />
1.600<br />
20<br />
20 %<br />
Polyshare GmbH<br />
1.200<br />
15<br />
800<br />
10<br />
<strong>Utz</strong> Family<br />
56 %<br />
19 %<br />
Freefloat<br />
400<br />
5<br />
5 %<br />
01/10<br />
02/10<br />
03/10<br />
04/10<br />
05/10<br />
06/10<br />
07/10<br />
08/10<br />
09/10<br />
10/10<br />
11/10<br />
12/10<br />
Henderson<br />
Global Investors
Investor Relations Overview<br />
The Shares<br />
German securities identification number<br />
ISIN number<br />
Market segment<br />
Share capital<br />
Number of shares outstanding<br />
Issuing price October 1997<br />
755150<br />
DE 000 755150 9<br />
Regulierter Markt , General Standard<br />
12.804.813 Euro<br />
4.268.271 no-par share<br />
23,01 Euro<br />
Own Shares (per 31.12.)<br />
High (continous trading)<br />
Low (continous trading)<br />
Varation range<br />
Opening price on the first trading day<br />
Closing price on the last trading day<br />
Performance<br />
Average price<br />
Market capitalisation based on end-of<strong>year</strong>-<br />
closing price<br />
<strong>2010</strong><br />
15.194<br />
21,50 Euro<br />
16,51 Euro<br />
26,13 %<br />
17,60 Euro<br />
20,34 Euro<br />
15,57 %<br />
19,10 Euro<br />
86.816.632 Euro<br />
2009<br />
15.194<br />
18,82 Euro<br />
13,90 Euro<br />
30,48 %<br />
14,65 Euro<br />
17,60 Euro<br />
20,14 %<br />
16,14 Euro<br />
75.121.570 Euro<br />
Price Earnings Ratio<br />
Year end closing<br />
<strong>2010</strong><br />
IFRS<br />
2009<br />
IFRS<br />
2008<br />
IFRS<br />
2007<br />
IFRS<br />
2006<br />
IFRS<br />
2005<br />
IFRS<br />
2004<br />
IFRS<br />
Year end closing (EUR)<br />
20,34<br />
17,60<br />
14,70<br />
26,00<br />
23,40<br />
15,31<br />
12,60<br />
<strong>Annual</strong> net profit per share (EUR)<br />
2,27<br />
1,68<br />
1,84<br />
2,01<br />
1,96<br />
1,49<br />
1,19<br />
Price earnings ratio<br />
9,0<br />
10,5<br />
8,0<br />
12,9<br />
11,9<br />
10,3<br />
10,6<br />
Proposal to the<br />
<strong>Annual</strong> General Meeting<br />
<strong>2010</strong><br />
2009<br />
2008<br />
2007<br />
2006<br />
2005<br />
2004<br />
Shares<br />
4.268.271<br />
4.268.271<br />
4.268.271<br />
4.268.271<br />
4.268.271<br />
4.268.271<br />
4.000.000<br />
Dividend earned (EUR)<br />
1,00<br />
0,62<br />
0,62<br />
0,90<br />
0,90<br />
0,75<br />
0,52<br />
Amount to be distributed (EUR)<br />
4.268.271<br />
2.646.328<br />
2.646.328<br />
3.841.444<br />
3.841.444<br />
3.201.203<br />
2.080.000<br />
Dividend yield based on closing price<br />
4,92%<br />
3,52%<br />
4,22%<br />
3,46%<br />
3,85%<br />
4,90%<br />
4,13%<br />
Dates<br />
<strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong><br />
Investor Relations<br />
Press conference on annual results<br />
<strong>Annual</strong> general meeting<br />
Six-months’ report<br />
April 12, 2011<br />
May 17, 2011<br />
August 29, 2011<br />
Phone +49 (0)731 4097-390<br />
Fax +49 (0)731 4097-169<br />
IR@uzin-utz.com<br />
www.uzin-utz.de
foun<br />
dation<br />
of<br />
success
Brief presentation of the Group<br />
Since its foundation in the <strong>year</strong> 1911, <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong> has developed from a small regional adhesive manufacturer<br />
into one of the world’s leading producers of special chemicals and equipment for floor laying and treatment.<br />
The transition to a complete supplier and system partner in matters of flooring expertise has been completed<br />
over recent <strong>year</strong>s by continual efforts at expansion and numerous acquisitions:<br />
With the brands UZIN, Wolff, Pallmann, Arturo (formerly Qeshfloor), codex and RZ, <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong> offers a comprehensive<br />
range of products, systems and services covering all aspects of new laying, reservation and value<br />
preservation of floor coverings of all types, parquet flooring, ceramic tiles and natural stone – all from its own<br />
development and production.<br />
The Group operates its own companies on all the most important markets in the world, and is represented in<br />
37 other countries besides Germany. The clear focus of the Group on the core expertise of flooring is unique<br />
throughout the world. In this way, <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong> is successfully meeting the challenges of a globalised economy<br />
at the international level.<br />
The company has also long been active in the area of ecological products and resource-saving production, and<br />
led the way as a pioneer of low-solvent and solvent-free adhesives. Twelve products of the “Ökoline” from <strong>Uzin</strong><br />
and two products from Pallmann now carry the environmental seal “The Blue Angel”.<br />
We live flooring! All our group activities are aimed at extending our expertise in flooring.
Letter to the shareholders<br />
Interview<br />
Portrait of the Board<br />
Brand portfolio<br />
The Group<br />
Shares and investor relations<br />
Group companies<br />
Global markets<br />
R+D/U-Vision<br />
Inhalt<br />
Values and substance<br />
Striving for success and stability<br />
Dynamism and sustainability<br />
Structure and direction<br />
Loyalty to the location and growth<br />
Clarity of objectives and transparency<br />
Adaptation and synergy<br />
Bonding force and expansion<br />
Development and earning power<br />
8<br />
10<br />
14<br />
16<br />
20<br />
24<br />
28<br />
32<br />
36<br />
7
Values and substance<br />
Dear shareholders of <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong>,<br />
100 <strong>year</strong>s of <strong>Uzin</strong> <strong>Utz</strong> mean continual change with sustainable<br />
development and notable success. There are<br />
only a few companies which can claim to be successfully<br />
managed by the third generation of the same family.<br />
» Even during the global economic crisis of recent <strong>year</strong>s,<br />
the <strong>Uzin</strong> <strong>Utz</strong> Group was not only able to maintain<br />
its position well, but also applied consistent crisis and<br />
risk management to form the basis of further structural<br />
and organisational optimisation in the areas of raw material<br />
usage, productivity and logistics.<br />
» The effects and restrictions of the crisis were used as<br />
an opportunity for further value addition and restructuring.<br />
With notable success:<br />
» This puts me in the enviable position, in the <strong>year</strong> of<br />
our centenary, to be able to present to you a historic revenue<br />
report. Although only housing construction was<br />
able to record an increase in the domestic construction<br />
sector in <strong>2010</strong>, we succeeded in increasing group sales<br />
by 7%. This improvement, which is outstanding in itself,<br />
was however surpassed by the over 30% increase in<br />
revenue achieved by the group with its result of €14.4<br />
million.<br />
» Thanks to the strategically correct and consistently<br />
maintained adherence to our company objectives, growth<br />
and sustainability go hand-in-hand, not by chance, but<br />
by design. 2011 is also the 14th <strong>year</strong> after our flotation<br />
on the stock market, and therefore also since the beginning<br />
of our long-term growth offensive. The ambitious<br />
targets with regard to market position, expansion and<br />
further development which we set five <strong>year</strong>s ago in our<br />
agenda “U-Vision” have also been largely implemented<br />
and achieved.<br />
» Looking back, there are many small jubilees, events<br />
and development steps which over the course of a whole<br />
century can be compressed into one major and successful<br />
event. A timetable therefore runs through the complete<br />
Jubilee report, providing information on the great<br />
and small historical circumstances in the course of our<br />
company history.<br />
» I do join this timetable now for 33 <strong>year</strong>s, in which<br />
I have held a responsible position in our company. It<br />
therefore gives me great pleasure to convey these Jubilee<br />
greetings to you from my current position. I am particularly<br />
delighted to be able to announce positive news,<br />
and look back with justified pride on the many small and<br />
great successes which we have made possible over all<br />
the <strong>year</strong>s.<br />
» And I look forward with optimism to the well-prepared<br />
path that we have taken for further sustainable development<br />
in the future.<br />
» On behalf of the Board, I would like to express my<br />
thanks for your proven confidence in the earning power<br />
and future viability of our company, and to assure you<br />
of our continued undivided and single-minded dedication.<br />
We believe that you can look forward with us to a<br />
promising and profitable Jubilee <strong>year</strong> 2011!<br />
Sincerely yours<br />
Dr. H. Werner <strong>Utz</strong><br />
1911<br />
1912<br />
1913<br />
1914<br />
1915<br />
Georg <strong>Utz</strong> founds the „Fabrikation<br />
chemischer Produkte”<br />
(manufacture of chemical<br />
products) in Vienna.<br />
The PVC is invented.<br />
Henry Ford introduces the first<br />
assembly line for the production<br />
of its vehicles.<br />
Opening of the Panama<br />
Canal.<br />
Willi <strong>Utz</strong> is born in Vienna<br />
(2nd generation).<br />
8 Letter to the shareholders
1916<br />
1917<br />
1918<br />
1919<br />
1920<br />
The Trans-Siberian railway from<br />
Moscow to Vladivostok is completed.<br />
Georg <strong>Utz</strong> returns from the<br />
French campaign back to<br />
Ulm.<br />
End of World War I.<br />
Georg <strong>Utz</strong> begins with the<br />
production of floor wax in<br />
Ulm.<br />
Star of the VII Olympic Games<br />
in Antwerp is the marvelous<br />
runner Paavo Nurmi with three<br />
gold and one silver medal.<br />
Letter to the shareholders<br />
9
Striving for success and stability<br />
»»<br />
Dr. <strong>Utz</strong>, you can look back today, as the third generation,<br />
on a century of company history. You yourself<br />
have worked for the company since 1978. Is there<br />
anything such as a key memory in your personal<br />
company biography?<br />
»»<br />
Well, there have been of course many such moments<br />
in which decisive events have occurred. When I joined<br />
the company fresh from university, I quickly began to<br />
concern myself seriously with the difficult subject of the<br />
environment and the world of business. My dissertation<br />
was entitled “Environmental change and company policy”.<br />
I was already very aware of this subject, and had to<br />
admit that at that time, immediately after the growth<br />
phase of the 1970’s, UZIN had not yet tackled this problem.<br />
I therefore soon devoted myself intensively to these<br />
issues, together with the optimisation of sales and marketing,<br />
which up to that time had no outstanding priority<br />
in the company.<br />
»»<br />
What in your opinion are the advantages of a family-run<br />
company in today’s times?<br />
»»<br />
A family-run company, even of our order of size, has<br />
many advantages, at least as long as the family is in agreement<br />
with regard to the company objectives and management.<br />
In our case, that was never in question. The<br />
main advantages for me lie in the possibility of long-term<br />
strategic planning and orientation, with the accent on<br />
continuity. This also has a consequent effect with regard<br />
to the stability of a qualified personnel base, because the<br />
sustainability aspect is also determined by the degree<br />
of loyalty and motivation of a company’s employees.<br />
Here one can of course fulfil something like a role-model<br />
function, when one has been running the company<br />
for 20 <strong>year</strong>s and longer. This is not usually the case with<br />
purely management-run companies.”<br />
»»<br />
On the subject of role-models: Who has influenced<br />
your decisions in life particularly strongly,<br />
and what advice would you give to somebody founding<br />
a company today?<br />
»»<br />
For me there have been many people who have impressed<br />
me in a particular way, and whose performance<br />
I have attempted to emulate, whether at university or<br />
somewhere else, although not in the sense that there<br />
was any particular great role-model for me. This is probably<br />
also due to the fact that I always wanted to maintain<br />
my intellectual independence, and was fortunately<br />
able to do so. This is also the advice that I would give to<br />
company founders: To believe in oneself and one’s mission,<br />
to pursue it long-term and consistently, even in the<br />
face of all possible resistance, and not give it up. Success<br />
then comes almost automatically.<br />
1921<br />
1922<br />
1923<br />
1924<br />
1925<br />
Albert Einstein receives the Nobel<br />
Prize in physics.<br />
Georg <strong>Utz</strong> acquires the property<br />
Fischergasse 6, Ulm as<br />
a production site.<br />
Peak of inflation in Germany<br />
(U.S. $ 1 = 4 trillion marks).<br />
First international football<br />
match Germany – Italy (0 : 1).<br />
First public TV shows in Germany,<br />
England and the USA.<br />
10 Interview
1926<br />
1927<br />
1928<br />
1929<br />
1930<br />
Charleston is the dance of the<br />
<strong>year</strong>.<br />
The „Buna“ called fully synthetic<br />
rubber was invented in Germany.<br />
Lina Radke gets an Olympic gold<br />
medal in the 800-meter run as<br />
the first German.<br />
Black Friday on the Wall Street.<br />
Max Schmeling is world champion<br />
in boxing.<br />
Interview<br />
11
»»<br />
Were there also possible alternative paths in life<br />
for you, or was your succession as head of the company<br />
never in question?<br />
»»<br />
Oh yes, there certainly were! While I was at university,<br />
I had visions of a career as a racing driver; in the 1970’s<br />
I competed in various circuit races and hill climbs – not<br />
entirely without success by the way – and was completely<br />
infected with the racing bug. This ‘storm and stress’<br />
phase came to an end for me after some less enjoyable<br />
events. On completion of my dissertation, there was<br />
still the option of a scientific career at the university,<br />
but I was ultimately attracted to the company, with all<br />
its challenges and possibilities.<br />
»»<br />
You are an aesthetically and artistically orientated<br />
person, who repeatedly supports art projects and<br />
young artists. Do you or did you yourself also have<br />
active ambitions in this direction?<br />
»»<br />
Definitely not. But if anyone wanted to interpret my<br />
enthusiasm for architecture as artistic ambition, you<br />
could say that I earned it in a sort of indirect, artistic<br />
way though the successful use of our products in the<br />
preservation of historic buildings.” (laughs)<br />
»»<br />
What makes an artist or their work interesting<br />
for you, and do you prefer any particular art form<br />
or stylistic direction?<br />
»»<br />
Roy Liechtenstein was an artist whose independent<br />
style and works attracted me at an early stage – well<br />
before he became really popular and therefore unaffordable.<br />
But in general I don’t prefer any particular direction<br />
or art form, but approach it quite intuitively. The<br />
work should however have its own recognisably individual<br />
style and sense of expression, and also be able to<br />
convince its creator as an artistic personality.”<br />
»»<br />
Assuming that you had the chance to take over<br />
the chairmanship of another company, which would<br />
most attract you?<br />
»»<br />
(after brief consideration): There would only be one<br />
company in question: Porsche!<br />
1931<br />
1932<br />
1933<br />
1934<br />
1935<br />
With 449 m the Empire State<br />
Building is completed as the<br />
highest structure in the world.<br />
Bayern Munich is the first<br />
German football champion.<br />
1st May is a legal bankday in<br />
Germany.<br />
Wernher von Braun develops a<br />
liquid rocket, which rises 2,400<br />
meters high.<br />
Ferdinand Porsche presents the<br />
prototype of the „Beetle“.<br />
12 Interview
What grows out of the insignificant<br />
often bears the power for greatness.<br />
»»<br />
Regarding the economic crisis: Was there ever a<br />
situation in which you ever considered changing the<br />
ownership structure, in other words giving up the<br />
majority shareholding of your family?<br />
»»<br />
Definitely not. Certainly not during the crisis, but<br />
otherwise this subject was only on the agenda one single<br />
time, before stock market flotation in 1997 – with<br />
the known result. Something which I am naturally very<br />
happy about, otherwise we would not be able to celebrate<br />
this company Jubilee.”<br />
»»<br />
Looking back on your previous achievements in<br />
life – what are you particularly proud of, apart from<br />
the success of your company?<br />
»»<br />
That’s easy: My children, naturally. Of course only<br />
that which concerns my own contribution to their positive<br />
development, which is difficult to measure, and that<br />
all three of them have been able to create the requirements<br />
for a self-determined and successful life. On the<br />
personal level, I am proud of having been able so far to<br />
preserve a certain basic composure, openness and tolerance,<br />
which has enabled me to maintain and enjoy a<br />
relaxed daily life. All the more so since my daughter has<br />
recently had twins, making me a grandfather twice over.<br />
»»<br />
When you think of your personal future and that<br />
of <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong>: How will your family tradition be<br />
continued over the coming generation? Are there<br />
already concrete succession scenarios?<br />
»»<br />
See the last question: I can look forward to the future<br />
quite relaxed and expectantly, both my own and also that<br />
of the company. My two sons are preparing to join the<br />
company in the Jubilee <strong>year</strong> in order to earn their spurs;<br />
the company management will therefore pass on to the<br />
next generation at the appointed time, although I cannot<br />
say at the moment exactly when or in what form.<br />
The continuity of <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong> is therefore assured.<br />
1936<br />
1937<br />
1938<br />
1939<br />
1940<br />
Olympic Games in Berlin. Crowd<br />
favorite Jesse Owens from the<br />
United States collects four gold<br />
medals.<br />
The World Exhibition takes place<br />
in Paris. Picasso paints the picture<br />
„Guernica“ for the Spanish<br />
pavilion.<br />
Otto Hahn is the first who splits<br />
the nucleus of a uranium atom.<br />
Beginning of the World<br />
War II.<br />
The first color TV program is<br />
broadcasting.<br />
Interview<br />
13
Dynamism and Sustainability<br />
“100 <strong>year</strong>s of developing our<br />
expertise are our basis, 100 <strong>year</strong>s<br />
of company success our<br />
foundation!”<br />
“Achieved objectives form the<br />
basis for new targets. Realistic<br />
targets form the basis of our<br />
sustainability.”<br />
»»<br />
Dr. H. Werner <strong>Utz</strong><br />
−−Chief executive officer<br />
−−born: 1947<br />
−−member of the general management since 1978<br />
»»<br />
Departments<br />
−−Strategy<br />
−−Marketing<br />
−−Technical product service<br />
−−Development and product technology<br />
»»<br />
Thomas Müllerschön<br />
−−Member of the executive board<br />
−−born: 1968<br />
−−joined the company in 1994<br />
−−Member of the executive board since 2002<br />
» Departments<br />
−−Sales<br />
−−Operations and logistics<br />
−−Controlling, finance and accounting<br />
−−Group organisation<br />
−−Human resources<br />
−−Central purchasing<br />
A company always has environmental responsibility. <strong>Uzin</strong><br />
<strong>Utz</strong> <strong>AG</strong> is well aware of this fact, and practices consistent<br />
environmental management. Here, projects are coordinated<br />
and defined in order to support the development<br />
of products which are ecological, low in emissions and<br />
harmless to health. Our environmental management is<br />
based on the responsible handling of raw materials and<br />
natural resources.<br />
»»<br />
The declared aim is to develop only products which<br />
meet the highest requirements with regard to sustainability.<br />
In our product development, we take into account<br />
the ecological <strong>balance</strong> data of the raw materials, and by<br />
active cooperation with our suppliers, we can largely dispense<br />
with the use of critical raw materials in our production.<br />
Part of this objective will be achieved in 2011:<br />
We will not produce or sell any more solvent-based adhesives<br />
in Germany.<br />
»»<br />
We are also concentrating on the continual improvement<br />
of all business procedures with regard to sustainability.<br />
We have already achieved significant successes<br />
in energy saving, waste avoidance and all production<br />
emissions.<br />
1941<br />
1942<br />
1943<br />
1944<br />
1945<br />
Konrad Zuse‘s „Z2“ is the first in<br />
practice usable programmable<br />
computing machine.<br />
Willi <strong>Utz</strong> is communicator<br />
on the side of Field Marshal<br />
Rommel in Africa.<br />
Hans and Sophie Scholl of the<br />
resistance group „Weiße Rose”<br />
(White Rose) are executed.<br />
The preliminary end: The establishment<br />
in the Ulm city<br />
is destroyed in an air raid.<br />
Founding Assembly of the United<br />
Nations in San Francisco.<br />
14 Portrait of the Board
1946<br />
1947<br />
1948<br />
1949<br />
1950<br />
The production of UZOLfloor<br />
polish and floor care<br />
aid resumes.<br />
Werner <strong>Utz</strong> is born in Ulm<br />
(3rd generation).<br />
Registration of the mark<br />
„UZIN“ at the German Patent<br />
Office.<br />
Theodor Heuss becomes the<br />
first President.<br />
The first UZIN flooring<br />
adhesive is delivered.<br />
Portrait of the Board<br />
15
Structure and Direction<br />
1951<br />
1952<br />
1953<br />
1954<br />
1955<br />
Start of economic miracle in<br />
West Germany.<br />
Albert Schweitzer is awarded<br />
with the Nobel Peace Prize<br />
First ascent of Mount Everest by<br />
Sir Edmund Hillary and Tensing<br />
Norgay.<br />
World Soccer Cup:<br />
„The Miracle of Bern“.<br />
Start of production of UZIN<br />
cement fillers.<br />
16 Brand portfolio
DI<br />
REC<br />
1956<br />
1957<br />
TION<br />
1958<br />
1959<br />
1960<br />
First guest workers in Germany.<br />
Sales of the company Georg<br />
<strong>Utz</strong> over 1 million DM.<br />
The first ultrasound examination<br />
is performed.<br />
First dispersion adhesive for<br />
PVC floorings „UZIN Fondur<br />
extra“.<br />
Armin Harry is Olympic champion<br />
in the 100m sprint at the<br />
Olympic Games in Rome.<br />
Brand portfolio 17
UZIN<br />
For more than 50 <strong>year</strong>s the established<br />
traditional brand has stood<br />
for the embodiment of professional<br />
processing know-how involving<br />
floor care. The comprehensive product<br />
and system competencies in the<br />
UZIN assortment range have been<br />
extended since 2008 by the innovative<br />
switchTec® adhesion technology,<br />
which enables particularly simple<br />
and dirt-free floor renovation.<br />
WOLFF<br />
The strong machine and tool brand<br />
for surface preparation and processing<br />
is established internationally as<br />
a specialist in this segment. Wolff<br />
supplies a complete program, which<br />
offers a solution for every problem<br />
in floor-laying or renovation.<br />
Pallmann<br />
From the root to the crown – this is<br />
the motto with which Pallmann summarises<br />
its product range for the new<br />
laying, renovation and value retention<br />
of parquet flooring. The professional<br />
in the area of surface finishing<br />
with a tradition extending back over<br />
more than 100 <strong>year</strong>s offers matching<br />
products for every level of the flooring<br />
construction – from the right<br />
substrate preparation to adhesives<br />
and equipment, and on to cleaning<br />
and care of parquet flooring.<br />
Arturo<br />
With the new group brand of Arturo<br />
Unique Flooring, the industrial application<br />
area of the former Qeshfloor<br />
brand has been transferred to the level<br />
of a new synthetic resin flooring<br />
concept. As a specialist for synthetic<br />
resin flooring, Arturo offers a broad<br />
selection of mortar flooring, stone<br />
coverings, coatings and floor sealants.<br />
These comply in a unique way<br />
with both the purely practical requirements<br />
and the design possibilities<br />
of synthetic resin flooring – both in<br />
the industrial, commercial and private<br />
application area.<br />
18 Brand portfolio
codex<br />
The different demands and requirements,<br />
especially of tiles and natural<br />
stone coverings, are combined in<br />
the high-performance codex network<br />
brand. The codex laying systems offer<br />
their users tile and joint mortars,<br />
as well as special products for substrate<br />
preparation.<br />
RZ<br />
RZ is presented as refreshingly innovative<br />
and non-polluting, the youngest<br />
brand in the group portfolio. The<br />
specialist for cleaning and care systems<br />
offers a comprehensive range<br />
of products for professional care and<br />
preservation of value for all types of<br />
floor coverings. In this way, a bridge<br />
is built for the first time between the<br />
purely professional user and the demanding<br />
end user.<br />
Jordan Lacke<br />
The comprehensive flooring expertise<br />
of the brand portfolio is ideally<br />
complemented by the Jordan Lacke<br />
brand. A familiar name in the carpentry<br />
trade and furniture industry<br />
for over 120 <strong>year</strong>s, this brand today<br />
offers a full range of trend-setting<br />
products for the varnishing and finishing<br />
of floor surfaces.<br />
UFLOOR Systems<br />
The flooring expertise brand of <strong>Uzin</strong><br />
<strong>Utz</strong> <strong>AG</strong> stands for consultation services<br />
providing innovative solutions<br />
for the new laying, value retention<br />
and renovation of floor coverings of<br />
all types. UFloor Systems is the only<br />
brand worldwide which can provide<br />
architects and planners with comprehensive<br />
advice on all questions of<br />
flooring. With a unique range and the<br />
brands of <strong>Uzin</strong>, Wolff, Pallmann, Arturo,<br />
codex and RZ, UFloor Systems<br />
offers tailor-made solutions for all<br />
customer requirements.<br />
Brand portfolio 19
Loyalty to the Location and Growth<br />
Since the foundation of the company, the group base<br />
has been systematically broadened by means of targeted<br />
shareholdings and acquisitions. The company group<br />
has been steadily built up around the Ulm group headquarters<br />
over two decades. It now includes eight brand<br />
suppliers and now more than ever forms the foundation<br />
of our careful and sustainable growth strategy. <strong>Uzin</strong> <strong>Utz</strong><br />
<strong>AG</strong>, JP Coatings GmbH, <strong>Uzin</strong> Ltd. and the companies in<br />
Switzerland and the USA in particular have contributed<br />
to the positive sales and results developments. As an<br />
effect of consistently practiced crisis management, the<br />
7% increase in group sales produced a veritable result of<br />
the century: Result from ordinary activities amounted to<br />
€14.4 million, corresponding to an improvement of over<br />
30% in comparison to the previous <strong>year</strong>.<br />
»»<br />
Investments totalling €6.9 million were also put in<br />
hand.<br />
» » This outstanding annual performance is also due to<br />
the dedication of all employees, who helped to achieve<br />
this result despite the slight decline in overall personnel<br />
numbers across the Group.<br />
Where the ground is fertile, much grows.<br />
Where the ground is reclaimed, much flourishes.<br />
1961<br />
1962<br />
1963<br />
1964<br />
1965<br />
Willi <strong>Utz</strong> takes over the management<br />
after the death of<br />
the founder of the company.<br />
First appearance of the Beatles<br />
in the „Star Club“ in Hamburg,<br />
Germany.<br />
J. F. Kennedy is assassinated. UZIN presented as one of the<br />
first companies a one side<br />
adhesive „UZIN 390 D“ on acrylic<br />
base.<br />
Construction of the new<br />
production facility in Ulm/<br />
Donautal.<br />
20 The Group
LO<br />
CA<br />
1966<br />
TION<br />
1967<br />
1968<br />
1969<br />
1970<br />
Germany is appalled by the<br />
so-called „Wembley“ goal.<br />
Moving to the present location<br />
in the industrial area<br />
Ulm/Donautal.<br />
The „Prague Spring“ moves and<br />
shocks the world.<br />
Neil Armstrong becomes the<br />
first man on the moon.<br />
Beginning of the UZIN<br />
adhesive production for tiles.<br />
The Group<br />
21
Wooded area near Heidenheim
Clarity of Objectives and Transparency<br />
The generation and channelling of investment capital<br />
for further growth was one of the main reasons for the<br />
foundation of <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong> in the <strong>year</strong> 1997.<br />
»»<br />
Due to the distribution of the share capital of <strong>Uzin</strong> <strong>Utz</strong><br />
<strong>AG</strong>, spectacular highs and lows in the share price occur<br />
rather rarely – a highly desirable effect for the purposes<br />
of the sustainable and long-term orientation of our<br />
company strategy.<br />
A clear source feeds a clean and powerful flow,<br />
which brings forth blossoming banks.<br />
»»<br />
The value of <strong>Uzin</strong> <strong>Utz</strong> shares nevertheless started off<br />
the <strong>year</strong> with a dynamic upwards trend: Beginning at the<br />
weakened price of €17.60 brought about by the financial<br />
crisis, it reached a high of €26.30 over the course of the<br />
<strong>year</strong>. By the end of the <strong>year</strong>, the shares had gained almost<br />
20%, and were being quoted at €20.27. The share<br />
price has stabilised at the moment at just on €24.00 (as<br />
of March 2011). In view of the overall encouraging revenue<br />
situation, a dividend of €0.80 is to be paid out in<br />
2011, together with a Jubilee dividend of €0.20, making<br />
a total of €1.00.<br />
»»<br />
Our open and regular communication ensured the<br />
maximum of transparency and information reliability for<br />
our shareholders and other interested parties.<br />
»»<br />
In addition to the group and annual financial statements,<br />
regular interim reports, press releases and ad-hoc<br />
announcements ensured the up-to-date and comprehensive<br />
level of information. (<strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong> also publishes a<br />
financial calendar well in advance on all important dates<br />
and publications of the company)<br />
»»<br />
In its capacity as “Designated Sponsor”, we were once<br />
again able to count on the valuable support and partnership<br />
of the LBBW.<br />
1971<br />
1972<br />
1973<br />
1974<br />
1975<br />
Willy Brandt is awarded with the<br />
Nobel Peace Prize<br />
Olympic Games in Munich. In Germany, more than 700,000<br />
new homes are completed.<br />
Germany is winner of the World<br />
Football Cup.<br />
Start of production of joint<br />
sealant at UZIN.<br />
24 Shares and investor relations
TRANs<br />
PA<br />
RENCY<br />
1976<br />
1977<br />
1978<br />
1979<br />
1980<br />
The Bayreuth Festival is celebrating<br />
its 100th anniversary.<br />
The rock ‚n‘ roll legend Elvis<br />
Presley dies in Memphis, Tennessee.<br />
Dr. H. Werner <strong>Utz</strong> joins the<br />
company.<br />
First general elections to the European<br />
Parliament.<br />
Dr. H. Werner <strong>Utz</strong> takes over<br />
the management.<br />
Shares and investor relations<br />
25
Blautopf in Blaubeuren
Adaptation and Synergy<br />
Learning from nature means learning perfection.<br />
An example that we treat with respect.<br />
A perfect interplay of forces requires the maximum degree<br />
of individual readiness for development from all those involved.<br />
In the interests of optimum adaptation to the requirements<br />
of the market and our customers, our performance<br />
structure as a system supplier is continually being<br />
developed further. This also includes compliance with internationally<br />
blinding industrial standards. Like the production<br />
locations at Ulm (UZIN) and Haaksbergen (Unipro<br />
B.V.), the Vaihingen equipment manufacturer Wolff and<br />
Herrmann Frank have also been certified to ISO since <strong>2010</strong>.<br />
»»<br />
A further step towards merging of product quality,<br />
design requirements and practical suitability has been<br />
made by Unipro B.V. with the completely new synthetic<br />
resin flooring concept of Arturo Unique Flooring, which<br />
replaces the brand of Qeshfloor Industrial Flooring. The<br />
Dutch specialist for synthetic resin flooring presented the<br />
optimum flooring solution in the commercial/industrial<br />
application area at the BAU exhibition in Munich: Mortar<br />
floors, stone flooring, sealants and levelling coatings<br />
on an epoxy resin or polyurethane resin basis can be finished<br />
to produce a unique end result with Arturo.<br />
»»<br />
As the partner to the parquet-laying business, the trade<br />
and decision-makers in interior design, JP Coatings felt<br />
itself duty-bound to increase its range and services covering<br />
all aspects of the new laying, renovation and value<br />
preservation of parquet flooring: Pallmann, the professional<br />
in the area of surface finishing, with a tradition<br />
going back over 100 <strong>year</strong>s, now offers its customers perfectly<br />
matched products for every level of flooring construction<br />
– from the right substrate preparation through<br />
to the cleaning and care of parquet floors.<br />
»»<br />
“From the root to the crown” – under this slogan, Pallmann<br />
presented its new, complete range of products for<br />
parquet flooring for the first time at the BAU exhibition.<br />
»»<br />
In <strong>2010</strong>, the specialist departments of Quality Management<br />
and International R&D initiated an ambitious<br />
project for the maximum harmonisation of group companies<br />
at the global level. This is intended to ensure that<br />
production worldwide takes place according to the same<br />
standards at all the different production locations of the<br />
<strong>Uzin</strong> <strong>Utz</strong> Group. This will enable identical product qualities<br />
to be turned out in future at all production locations.<br />
»»<br />
Ecological responsibility, product innovation and sustainability<br />
are traditionally not contradictory at <strong>Uzin</strong> <strong>Utz</strong><br />
<strong>AG</strong>: in <strong>2010</strong>, 76.2% of company sales were generated with<br />
products which comply with strict ecological emission<br />
requirements (such as the “Blue Angel” and Emicode).<br />
<strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong> therefore stands out not only for its comprehensive<br />
flooring system expertise, but also continues<br />
to set the highest standards in the sector with regard<br />
to its ecological responsibility.<br />
1981<br />
1982<br />
1983<br />
1984<br />
1985<br />
Birth of the <strong>Utz</strong>-triplets<br />
Amelie, Julian and Philipp<br />
(4th generation).<br />
The compact disk (CD) is<br />
launched.<br />
The first generation of<br />
environmentally friendly<br />
adhesives of UZIN is introduced.<br />
Sales of <strong>Uzin</strong> GmbH & Co. KG<br />
exceed 33 million DM.<br />
The only 17-<strong>year</strong>-old Boris Becker<br />
wins in Wimbledon as first<br />
German.<br />
28 Group companies
Syn<br />
er<br />
gy<br />
1986<br />
1987<br />
1988<br />
1989<br />
1990<br />
Beginning of the growth<br />
phase with new innovative<br />
products of UZIN.<br />
Introduction of the first<br />
acrylic latex adhesive “UZIN<br />
KE 2000”.<br />
The first mobile phones on the<br />
market.<br />
Foundation of the UZIN sales<br />
company in France.<br />
German reunification and<br />
build up of the sales organization<br />
in the former East<br />
Germany.<br />
Group companies<br />
29
Banks of the Danube near Elchingen
Bonding Force and Expansion<br />
»»<br />
Realistic expansion efforts today demand a global<br />
perspective, especially since in the construction sector,<br />
excessive reliance on domestic economic influences is<br />
counterproductive. Over the last decade therefore, <strong>Uzin</strong><br />
<strong>Utz</strong> <strong>AG</strong> has consistently and significantly expanded its<br />
international activities. The export quota has been significantly<br />
above 50% for the last 7 <strong>year</strong>s, and in <strong>2010</strong><br />
reached 54.6%. The Group currently operates eight foreign<br />
production locations, and the locations in North<br />
America and Asia were recently extended. Over the past<br />
<strong>year</strong>, sales developed positively particularly in the USA<br />
and Switzerland.<br />
» » In Scandinavia, <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong> currently achieves sales<br />
of around €5.4 million. In order to exploit the substantial<br />
potentials in the northern European region even<br />
better in future, and to ensure full sales coverage here,<br />
a majority shareholding in the Norwegian sales company<br />
Løkken AS was acquired with effect from 01.01.2011.<br />
This company, with which a long-standing partnership<br />
already exists, specialises in the sale of flooring products,<br />
and currently generates annual sales of around €6 million.<br />
With this latest acquisition, the <strong>Uzin</strong> <strong>Utz</strong> Group has<br />
further extended its foreign presence, successively and<br />
systematically continuing the set course for growth at<br />
the global level.<br />
The sky is endless.<br />
And from firm ground, the stars can almost be touched.<br />
1991<br />
1992<br />
1993<br />
1994<br />
1995<br />
Stone Age mummy „Ötzi“ is<br />
found.<br />
Foundation of the UZIN<br />
sales companies in England<br />
and Austria.<br />
The new dry mortar plant is<br />
opened in Donautal, Ulm.<br />
Quality certification of the<br />
production site Ulm to DIN<br />
ISO 9001.<br />
Christo and Jeanne-Claude conceal<br />
the “Berliner Reichstag”.<br />
32 Global markets
Ex<br />
Pan<br />
1996<br />
Sion<br />
1997<br />
1998<br />
1999<br />
2000<br />
Introduction of the lowemission<br />
products UZIN-<br />
ÖkoLine.<br />
In October the <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong><br />
goes public.<br />
UZIN Tyro <strong>AG</strong>, Switzerland is<br />
acquired.<br />
Foundation of the UZIN-sales<br />
company in the Czech Republic.<br />
New production plants are<br />
founded in Legnica, Poland,<br />
in Shanghai, China and in<br />
Soissons, France.<br />
Majoritarian acquisition of<br />
the company Wolff GmbH.<br />
Global markets<br />
33
Donautal in the sun
Development and Earning Power<br />
Preparing the ground, sowing ideas,<br />
treading new paths, harvesting successes, insuring the yield –<br />
this is called sustainable.<br />
The essence of sustainability includes an overall perception<br />
of entrepreneurial action and management. Innovation,<br />
growth and earning power are in our opinion<br />
inseparable from the concepts of responsibility, the<br />
long-term view and environmental compatibility. Permanent<br />
further development therefore always goes handin-hand<br />
at <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong> with forward-looking decisions<br />
and activities designed to comply with customer interests,<br />
company objectives, social and environmental aspects<br />
to an equal degree.<br />
»»<br />
New effects, new systems and innovative problem<br />
solutions are essential for the acceptance and the longterm<br />
market success of our products. The innovation<br />
sector therefore forms one of the main pillars of our<br />
strategy, which will be further strengthened by the imminent<br />
move into the new central building for Research<br />
& Development. At the Ulm location in <strong>2010</strong>, an average<br />
of 77 highly motivated employees were devoted to<br />
the ambitious task of producing forward-looking product<br />
solutions – and with great success: the 45 projects have<br />
so far resulted in 22 developments, which are currently<br />
being perfected prior to market launch. Although R&D<br />
costs have risen by almost 15% to €5.4 million, these<br />
efforts have borne fruit: For the Jubilee <strong>year</strong> 2011 we are<br />
aiming for a new product quota of 50%. Throughout the<br />
group, the quota for <strong>2010</strong> was 49%, with the main company<br />
in Ulm already reaching 51.9% in <strong>2010</strong>.<br />
»»<br />
Well-trained staff naturally also play an important<br />
role in the future projection. We are therefore placing<br />
special emphasis on a long-term personnel policy directed<br />
at quality. It is our aim to promote well-trained new<br />
personnel in their own structures wherever possible –<br />
this was implemented in <strong>2010</strong> with an average training<br />
quota of 7.1% (company) and 4.3% (group).<br />
»»<br />
The analogy with agriculture also holds up with regard<br />
to our ground theme: in the same way as traditional<br />
cultivation methods preserve the resources of nature<br />
and soils, our company strategy is designed to safeguard<br />
the future, by careful and planned budgeting of our<br />
capabilities and resources. Today we can look back on<br />
100 <strong>year</strong>s of successful entrepreneurship, and at the<br />
same time look forward with realistic optimism. Because<br />
the old farming rule applies: Whatever the weather, the<br />
ploughing, sowing, weeding and harvesting still has to<br />
be done.<br />
»»<br />
The ground at least is prepared for further successful<br />
<strong>year</strong>s and decades.<br />
2001<br />
2002<br />
2003<br />
2004<br />
2005<br />
Pallmann GmbH & Co. KG in<br />
Munich is acquired.<br />
Opening of the logistics centre<br />
in Ulm.<br />
Introduction of the Euro as a<br />
legal tender.<br />
Summer of the century<br />
in Germany.<br />
The Unipro companies in the<br />
Netherlands and Belgium,<br />
are acquired.<br />
Siga Floor <strong>AG</strong> (Sifloor <strong>AG</strong>)<br />
in Ruswil, Switzerland, is<br />
acquired.<br />
36 R+D/U-Vision
EAR<br />
NI<br />
NG<br />
2006<br />
2007<br />
2008<br />
2009<br />
<strong>2010</strong><br />
The five brands are grouped<br />
under the umbrella brand<br />
“UFloor Systems”.<br />
The codex brand for ceramic<br />
tiles and natural stone is<br />
launched.<br />
With 35000 <strong>year</strong>s probably the<br />
oldest known human representation,<br />
the „Venus vom Hohlen<br />
Fels“, is found on the Swabian<br />
Alb (Germany).<br />
Barack Obama becomes the first<br />
coloured President of the USA.<br />
Group sales over €180<br />
millions.<br />
R+D/U-Vision<br />
37
Field between Erbach and Ulm
al<br />
ance<br />
of<br />
success
Consolidated Financial Statement<br />
of <strong>Uzin</strong> <strong>Utz</strong> Group for Financial Year <strong>2010</strong><br />
Profit and Loss Account 43<br />
Balance Sheet 44<br />
Statement of changes in equity 45<br />
Consolidated cash flow statement 46<br />
Segment <strong>Report</strong>ing 47<br />
Equity Holdings 48<br />
42
<strong>Uzin</strong> <strong>Utz</strong> Aktiengesellschaft, Ulm (Donau)<br />
Profit and Loss Account <strong>2010</strong><br />
Consolidated Profit and Loss Account <strong>2010</strong><br />
(in TEUR)<br />
Appendix<br />
<strong>2010</strong><br />
2009<br />
Sales revenues<br />
1<br />
184,199<br />
172,213<br />
Changes in inventory of finished goods<br />
and work in process<br />
2,063<br />
-840<br />
Total output<br />
186,262<br />
171,373<br />
Other operating income<br />
2<br />
2,373<br />
2,403<br />
Income from investment properties<br />
2<br />
291<br />
0<br />
Costs of material<br />
3<br />
80,608<br />
73,186<br />
Personnel expenses<br />
4<br />
47,275<br />
45,545<br />
Depriciation/amortisation on tangible and intangible assets<br />
5,576<br />
5,394<br />
Other operating expenses<br />
5<br />
38,941<br />
36,351<br />
Operating income<br />
16,526<br />
13,300<br />
revenues from investments in associates (equity method)<br />
6<br />
70<br />
40<br />
Financial result<br />
7<br />
-2,166<br />
-2,385<br />
Result from ordinary activities<br />
14,430<br />
10,954<br />
Taxes on income<br />
8<br />
4,031<br />
3,253<br />
other taxes<br />
9<br />
710<br />
622<br />
Net income for the <strong>year</strong><br />
9,690<br />
7,079<br />
Minority interests in profit<br />
10<br />
-44<br />
56<br />
Consolidated net income for the <strong>year</strong><br />
9,646<br />
7,135<br />
43
<strong>Uzin</strong> <strong>Utz</strong> Aktiengesellschaft, Ulm (Donau)<br />
Consolidated Balance Sheet<br />
Assets (in TEUR)<br />
Appendix<br />
<strong>2010</strong><br />
2009<br />
2008<br />
Assets<br />
Intangible assets<br />
11<br />
31,932<br />
31,764<br />
32,332<br />
Tangible assets<br />
12<br />
59,410<br />
56,709<br />
58,508<br />
Non- current financial assets<br />
13<br />
1,142<br />
774<br />
754<br />
Investment Properties<br />
14<br />
2,970<br />
2,238<br />
2,232<br />
income tax receivables<br />
16<br />
651<br />
791<br />
873<br />
Deferred tax assets<br />
15<br />
1,711<br />
1,568<br />
1,395<br />
Other non-current assets<br />
16<br />
45<br />
18<br />
30<br />
Non- current assets<br />
97,860<br />
93,863<br />
96,124<br />
Inventories<br />
17<br />
25,331<br />
20,079<br />
21,729<br />
Trade receivables<br />
16<br />
25,736<br />
22,738<br />
23,964<br />
income tax receivables<br />
16<br />
355<br />
269<br />
238<br />
Other current assets<br />
16<br />
3,537<br />
3,355<br />
5,062<br />
Cash and Cash equivalents<br />
18<br />
14,457<br />
14,350<br />
13,638<br />
Current assets<br />
69,417<br />
60,792<br />
64,632<br />
Balance sheet total<br />
167,277<br />
154,655<br />
160,756<br />
Liabilities (in TEUR)<br />
Appendix<br />
<strong>2010</strong><br />
2009<br />
2008<br />
Subscribed capital<br />
19<br />
12,805<br />
12,805<br />
12,805<br />
Capital reserve<br />
19<br />
13,624<br />
13,624<br />
13,624<br />
Revenue reserve<br />
19<br />
51,112<br />
41,575<br />
36,838<br />
Minority interests<br />
19<br />
-164<br />
-164<br />
-95<br />
Own shares<br />
19<br />
-235<br />
-235<br />
-124<br />
Total equity<br />
19<br />
77,142<br />
67,605<br />
63,048<br />
Provisions for pensions<br />
and other similar obligations<br />
20<br />
2,383<br />
2,187<br />
1,845<br />
Due to credit institutions long-term<br />
21<br />
34,992<br />
33,924<br />
35,604<br />
Deferred tax liabilities<br />
15<br />
9,126<br />
8,503<br />
7,866<br />
other non-current liabilities<br />
21<br />
419<br />
405<br />
333<br />
Non-current liabilities<br />
46,920<br />
45,019<br />
45,647<br />
Reserves<br />
20<br />
6,730<br />
6,345<br />
7,208<br />
Due to credit institutions short-term<br />
21<br />
22,601<br />
24,168<br />
32,910<br />
advances received<br />
21<br />
11<br />
11<br />
64<br />
Trade payables<br />
22<br />
7,627<br />
5,499<br />
6,155<br />
income tax liabilities<br />
21<br />
1,243<br />
1,607<br />
1,091<br />
Other short-term liabilities<br />
21<br />
5,003<br />
4,401<br />
4,634<br />
Current liabilities<br />
43,215<br />
42,031<br />
52,061<br />
Balance sheet total<br />
167,277<br />
154,655<br />
160,756<br />
44
<strong>Uzin</strong> <strong>Utz</strong> Aktiengesellschaft, Ulm<br />
Statement of changes in equity<br />
Statement of<br />
changes in equity<br />
(in TEUR)<br />
Subscribed<br />
capital<br />
Capital<br />
reserve<br />
Retained earnings Reserve on Other Sum Minority<br />
own shares transactions<br />
interests<br />
Group net<br />
income<br />
Translation<br />
differences<br />
Total Equity<br />
31 December 2008<br />
12,805<br />
13,624<br />
42,760<br />
-718<br />
-124<br />
-4,224<br />
64,123<br />
-95<br />
64,028<br />
Changes in accounting methodes/adjustments<br />
0<br />
0<br />
-981<br />
0<br />
0<br />
0<br />
-981<br />
0<br />
-981<br />
Balance as of January 01, 2008<br />
12,805<br />
13,624<br />
41,779<br />
-718<br />
-124<br />
-4,224<br />
63,142<br />
-95<br />
63,048<br />
Exchange rate-related differences<br />
0<br />
0<br />
0<br />
375<br />
0<br />
0<br />
375<br />
5<br />
380<br />
Other changes<br />
0<br />
0<br />
-75<br />
0<br />
0<br />
0<br />
-75<br />
-25<br />
-101<br />
Market valuations<br />
for cash flow hedges<br />
0<br />
0<br />
0<br />
0<br />
0<br />
-58<br />
-58<br />
0<br />
-58<br />
Net Income directly<br />
recognized in equity<br />
0<br />
0<br />
-75<br />
375<br />
0<br />
-58<br />
241<br />
-20<br />
221<br />
Net profit of the <strong>year</strong><br />
0<br />
0<br />
7,135<br />
0<br />
0<br />
0<br />
7,135<br />
-56<br />
7,079<br />
Total recognized income and expenses<br />
0<br />
0<br />
7,059<br />
375<br />
0<br />
-58<br />
7,376<br />
-76<br />
7,300<br />
Own shares<br />
0<br />
0<br />
0<br />
0<br />
-111<br />
0<br />
-111<br />
0<br />
-111<br />
Dividends payed<br />
0<br />
0<br />
-2,639<br />
0<br />
0<br />
0<br />
-2,639<br />
0<br />
-2,639<br />
Changes in basis of consolidation<br />
0<br />
0<br />
0<br />
0<br />
0<br />
0<br />
0<br />
7<br />
7<br />
31 December 2009 / 01 January <strong>2010</strong><br />
12,805<br />
13,624<br />
46,199<br />
-343<br />
-235<br />
-4,282<br />
67,769<br />
-164<br />
67,605<br />
Exchange rate-related differences<br />
0<br />
0<br />
0<br />
2,465<br />
0<br />
0<br />
2,465<br />
-10<br />
2,455<br />
Increase of capital<br />
0<br />
0<br />
0<br />
0<br />
0<br />
0<br />
0<br />
12<br />
12<br />
Other changes<br />
0<br />
0<br />
10<br />
0<br />
0<br />
0<br />
10<br />
-47<br />
-37<br />
Market valuations<br />
for cash flow hedges<br />
0<br />
0<br />
0<br />
0<br />
0<br />
53<br />
53<br />
0<br />
53<br />
Net Income directly<br />
recognized in equity<br />
0<br />
0<br />
10<br />
2,465<br />
0<br />
53<br />
2,528<br />
-45<br />
2,484<br />
Net profit of the <strong>year</strong><br />
0<br />
0<br />
9,646<br />
0<br />
0<br />
0<br />
9,646<br />
44<br />
9,690<br />
Total recognized income and expenses<br />
0<br />
0<br />
9,656<br />
2,465<br />
0<br />
53<br />
12,174<br />
0<br />
12,174<br />
Dividends payed<br />
0<br />
0<br />
-2,637<br />
0<br />
0<br />
0<br />
-2,637<br />
0<br />
-2,637<br />
31 December <strong>2010</strong><br />
12,805<br />
13,624<br />
53,218<br />
2,122<br />
-235<br />
-4,229<br />
77,306<br />
-164<br />
77,142<br />
45
<strong>Uzin</strong> <strong>Utz</strong> Aktiengesellschaft, Ulm<br />
Consolidated cash flow statement<br />
Consolidated cash flow statement<br />
(in TEUR)<br />
Net profit for the <strong>year</strong><br />
+/- Depreciation and amortisation of fixed assets<br />
+/- Change in provisions<br />
<strong>2010</strong><br />
9.690<br />
5.285<br />
245<br />
2009<br />
7.079<br />
5.394<br />
-106<br />
Cash and cash equivalents<br />
Cash and cash equivalents<br />
short-term liabilities due to credit institutions<br />
Cash and cash equivalents<br />
<strong>2010</strong><br />
14.457<br />
-9.663<br />
4.794<br />
2009<br />
14.350<br />
-14.047<br />
303<br />
+/- other non-cash income and expense items<br />
1.365<br />
-752<br />
-/+ Gain/loss on disposal of non-current assets<br />
12<br />
15<br />
+/- Change in current assets (inventories, receivables)<br />
-7.300<br />
5.888<br />
+/- Change in liabilities<br />
4.991<br />
-530<br />
Cashflow from operating activities<br />
14.287<br />
16.988<br />
+ Proceeds from disposal of tangible assets<br />
165<br />
607<br />
- Investments in tangible assets<br />
-6.278<br />
-2.762<br />
+ Proceeds from disposal of intangible assets<br />
15<br />
0<br />
- Investments in intangible assets<br />
-315<br />
-268<br />
+ Proceeds from disposal of financial assets<br />
116<br />
56<br />
- Investments in financial assets<br />
- Change from acquisition/<br />
sale of consolidated companies<br />
-328<br />
0<br />
-77<br />
-569<br />
Cashflow from investing activities<br />
-6.625<br />
-3.013<br />
- Proceeds for own shares<br />
0<br />
-111<br />
- Payments to shareholders and minorities<br />
-2.637<br />
-2.639<br />
+ Proceeds from the issue of bonds<br />
23.669<br />
18.311<br />
- Repayment of bonds<br />
-24.168<br />
-23.290<br />
Cashflow from financing activities<br />
-3.137<br />
-7.729<br />
Payment-related change in cash and cash equivalents<br />
- Exchange-rate-related and other changes in cash<br />
and cash equivalents<br />
+ Cash and cash equivalents<br />
at beginning of the period<br />
4.525<br />
-34<br />
303<br />
6.246<br />
121<br />
-6.064<br />
Cash and cash equivalents at the end of the period<br />
4.794<br />
303<br />
46
<strong>Uzin</strong> <strong>Utz</strong> Aktiengesellschaft, Ulm (Donau)<br />
Segment <strong>Report</strong>ing<br />
Segment <strong>Report</strong>ing<br />
(in TEUR)<br />
Germany Western Europe South- / Eastern<br />
Installation surface care<br />
Europe<br />
systems and enhancement<br />
all other segments transition Total Group<br />
<strong>2010</strong><br />
2009<br />
<strong>2010</strong><br />
2009<br />
<strong>2010</strong><br />
2009<br />
<strong>2010</strong><br />
2009<br />
<strong>2010</strong><br />
2009<br />
<strong>2010</strong><br />
2009<br />
<strong>2010</strong><br />
2009<br />
External sales<br />
Intercompany sales<br />
Total sales<br />
Interest and similar income<br />
Interest and<br />
similar expenses<br />
Profit<br />
Assets<br />
Liabilities<br />
Investments<br />
Depreciation<br />
84,192<br />
24,972<br />
109,165<br />
270<br />
1,478<br />
6,782<br />
106,020<br />
51,414<br />
4,322<br />
2,457<br />
79,327<br />
22,392<br />
101,718<br />
320<br />
1,454<br />
5,656<br />
100,738<br />
49,631<br />
1,632<br />
2,614<br />
14,779<br />
4,567<br />
19,346<br />
35<br />
227<br />
1,598<br />
14,977<br />
8,272<br />
163<br />
448<br />
14,785<br />
2,857<br />
17,642<br />
27<br />
288<br />
1,171<br />
15,309<br />
8,208<br />
116<br />
455<br />
34,915<br />
8,687<br />
43,602<br />
176<br />
330<br />
4,079<br />
39,832<br />
16,052<br />
1,552<br />
1,212<br />
32,298<br />
7,321<br />
39,619<br />
127<br />
169<br />
3,930<br />
40,585<br />
20,482<br />
910<br />
969<br />
12,644<br />
878<br />
13,521<br />
24<br />
18<br />
984<br />
10,963<br />
3,382<br />
179<br />
307<br />
12,480<br />
635<br />
13,115<br />
46<br />
36<br />
1,283<br />
9,171<br />
2,535<br />
123<br />
297<br />
37,669<br />
2,206<br />
39,875<br />
2<br />
599<br />
3,037<br />
34,839<br />
29,254<br />
378<br />
1,153<br />
33,324<br />
2,151<br />
35,475<br />
15<br />
945<br />
1,327<br />
33,536<br />
29,572<br />
618<br />
1,058<br />
0<br />
-41,310<br />
-41,310<br />
-310<br />
-290<br />
47<br />
-39,353<br />
-18,239<br />
0<br />
0<br />
0<br />
-35,356<br />
-35,356<br />
-324<br />
-296<br />
-68<br />
-43,704<br />
-23,379<br />
0<br />
0<br />
184,199<br />
0<br />
184,199<br />
197<br />
2,362<br />
16,526<br />
167,277<br />
90,136<br />
6,593<br />
5,576<br />
172,213<br />
0<br />
172,213<br />
210<br />
2,596<br />
13,300<br />
155,635<br />
87,050<br />
3,400<br />
5,394<br />
External Sales<br />
according to business area<br />
(in TEUR)<br />
flooring wood flooring ceramic tiles and<br />
natural stone<br />
others<br />
Sum<br />
<strong>2010</strong> 2009 <strong>2010</strong> 2009 <strong>2010</strong> 2009 <strong>2010</strong> 2009 <strong>2010</strong> 2009<br />
144,028 138,896 17,238 14,219 17,536 15,063 5,397 4,035 184,199 172,213<br />
Geographic segmentation<br />
of external sales<br />
(in TEUR)<br />
Germany the Netherlands Rest Sum<br />
<strong>2010</strong> 2009 <strong>2010</strong> 2009 <strong>2010</strong> 2009 <strong>2010</strong> 2009<br />
83,647 79,669 17,126 16,963 83,426 75,581 184,199 172,213<br />
Non-current assets<br />
according to the location of assets<br />
(in TEUR)<br />
Germany Switzerland Rest Sum<br />
<strong>2010</strong> 2009 <strong>2010</strong> 2009 <strong>2010</strong> 2009 <strong>2010</strong> 2009<br />
68,434 68,663 15,419 12,783 11,156 11,055 95,008 92,502<br />
47
Equity Holdings<br />
(figures according to local GAAP)<br />
Company<br />
Place<br />
Share of<br />
Capital in %<br />
Equity<br />
in TEUR<br />
Net income<br />
in TEUR<br />
<strong>Uzin</strong> Dr. <strong>Utz</strong> Ges. mbH<br />
AT, Wien<br />
100.00<br />
-408<br />
-32<br />
Unipro-Belgie N.V.<br />
BE, Gent<br />
99.98<br />
923<br />
215<br />
<strong>Uzin</strong> Tyro <strong>AG</strong><br />
CH, Buochs<br />
100.00<br />
5,210<br />
889<br />
Sifloor <strong>AG</strong><br />
CH, Sursee<br />
100.00<br />
7,393<br />
113<br />
DS Derendinger <strong>AG</strong> **)<br />
CH, Thörishaus<br />
100.00<br />
1,110<br />
237<br />
<strong>Uzin</strong> <strong>Utz</strong> Construction<br />
Materials Co. Ltd.<br />
CN, Shanghai<br />
90.00<br />
-298<br />
36<br />
<strong>Uzin</strong> s.r.o.<br />
CZ, Prag<br />
100.00<br />
1,081<br />
171<br />
artiso solutions GmbH<br />
DE, Blaustein<br />
50.00<br />
142<br />
27<br />
Artiso <strong>AG</strong> *)<br />
DE, Blaustein<br />
50.00<br />
30<br />
3<br />
RZ Reinigungs- und<br />
Pflegesysteme GmbH<br />
DE, Meckenheim<br />
100.00<br />
-1,943<br />
84<br />
Genial Produkte GmbH<br />
DE, Meckenheim<br />
100.00<br />
-1,491<br />
1<br />
Hermann Frank GmbH<br />
& Co. KG<br />
Hermann Frank<br />
Verwaltungs GmbH *)<br />
BIL LEASING Verwaltungs<br />
GmbH & Co. 870 KG<br />
Objekteure Verwaltungsgesellschaft<br />
mbH *)<br />
<strong>Utz</strong> Beteiligungs GmbH<br />
DE,<br />
Oberderdingen<br />
DE,<br />
Oberderdingen<br />
DE, Pullach<br />
DE, Ulm<br />
DE, Ulm<br />
100.00<br />
100.00<br />
94.00<br />
100.00<br />
100.00<br />
735<br />
30<br />
-2,797<br />
29<br />
-46<br />
-164<br />
1<br />
798<br />
1<br />
-19<br />
<strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong><br />
DE, Ulm<br />
-<br />
46,112<br />
6,473<br />
JP Coatings GmbH<br />
DE, Würzburg<br />
100.00<br />
6,032<br />
784<br />
<strong>Uzin</strong> France SAS<br />
FR, Paris<br />
100.00<br />
2,196<br />
234<br />
<strong>Uzin</strong> Limited<br />
GB, Leamington Spa<br />
100.00<br />
1,447<br />
433<br />
Unikem d.o.o.<br />
HR, Zagreb<br />
50.00<br />
265<br />
1<br />
<strong>Uzin</strong> <strong>Utz</strong> Magyarország<br />
Kft. **)<br />
HU, Budapest<br />
90.00<br />
-34<br />
-90<br />
Unipro B.V.<br />
NL, Haaksbergen<br />
100.00<br />
4,597<br />
1,266<br />
Ufloor Systems NZ Ltd.<br />
NZ, Whangaparaoa<br />
90.00<br />
225<br />
31<br />
<strong>Uzin</strong> Polska Produkty<br />
Bodowlane Sp.zo.o.<br />
PL, Legnica<br />
100.00<br />
3,623<br />
557<br />
<strong>Uzin</strong> Polska Sp.zo.o.<br />
PL, Legnica<br />
100.00<br />
1,718<br />
262<br />
P.T. <strong>Uzin</strong> <strong>Utz</strong> Indonesia<br />
RI, Jakarta<br />
49.00<br />
1,146<br />
141<br />
Unihem Trading d.o.o.<br />
RS, Belgrad<br />
50.00<br />
-140<br />
-24<br />
Unihem d.o.o.<br />
SLO, Ljubljana<br />
50.00<br />
3,172<br />
293<br />
<strong>Utz</strong> Inc.<br />
USA, Aurora<br />
100.00<br />
219<br />
-1<br />
Ufloor Systems Inc.<br />
USA, Aurora<br />
90.00<br />
-1,412<br />
217<br />
Production and sales site<br />
Sales site<br />
48
<strong>Uzin</strong> <strong>Utz</strong> Aktiengesellschaft, Ulm (Donau)<br />
Situation <strong>Report</strong> of the <strong>Uzin</strong> <strong>Utz</strong> Group for the Business Year<br />
from 1st January <strong>2010</strong> to 31st December <strong>2010</strong>*<br />
Business performance and framework conditions<br />
Business performance, business activities and<br />
framework conditions<br />
Development of the sector and the overall economy<br />
Following the greatest recession of the post-war era in<br />
the <strong>year</strong> 2009, the world economy recovered faster than<br />
expected in the <strong>year</strong> <strong>2010</strong>. According to the information<br />
of the World Bank, global GDP growth in the past <strong>year</strong><br />
reached 3.9%. This however gives rise to the question<br />
of the sustainability of this positive development. National<br />
economic programmes to cushion the recession<br />
have created budget deficits and debt levels of almost<br />
unheard-of dimensions. In addition to the concerns over a<br />
relapse in the USA and the prospect of a more restrictive<br />
monetary policy in China, the European Union in particular<br />
is also faced with a major challenge. Continual reports<br />
of Euro-countries with severe financial problems<br />
are putting increasing pressure on the system of the European<br />
Union and its common currency.<br />
» The German economy in the <strong>year</strong> <strong>2010</strong> was typical<br />
of the worldwide upturn. Germany is justifiably referred<br />
to as the “growth engine” of the European economic region.<br />
At the end of the <strong>year</strong> <strong>2010</strong>, Germany had achieved<br />
a GDP growth of 3.6%. Strong growth was achieved<br />
particularly in the engineering and automotive sectors.<br />
Medium-sized German companies in particular benefited<br />
from the economic upturn, with consequent noticeable<br />
positive effects on the employment market. The main<br />
supporting pillar of economic development in Germany<br />
is the export boom. In the future however, the heavy dependency<br />
on China and the financial difficulties of many<br />
EU-countries will constitute a risk factor for German foreign<br />
trade. Nevertheless, economic institutes continue<br />
to forecast growth of 2.1% to 2.4% for the German economy<br />
in the <strong>year</strong> 2011.<br />
» In the construction sector, the upturn which started<br />
at the end of 2009 could not be continued into the early<br />
months of <strong>2010</strong> because of the weather. The unusually<br />
cold winter caused a declined in turnover in the construction<br />
sector of 17.2% in the first 3 months in comparison<br />
to the same period of the previous <strong>year</strong>. The sector<br />
recovered over the course of the <strong>year</strong>, although with<br />
an overall decline in turnover of 1%, it was not able to<br />
join in the general economic upturn.<br />
» With a decline in turnover of 4.5% in the <strong>year</strong> <strong>2010</strong>,<br />
the German commercial construction sector was a major<br />
contributor to the low level of optimism in the construction<br />
sector as a whole. If the overall economic upturn<br />
continues in the <strong>year</strong> 2011 however, commercial<br />
construction will also benefit accordingly. In this case,<br />
experts forecast an increase in turnover of around 1%.<br />
» The economic programmes instituted by the central<br />
government were also unable to revitalise business in the<br />
public construction sector, as becomes clear from the fall<br />
in turnover of 3% in the <strong>year</strong> <strong>2010</strong>. Nor is any recovery<br />
expected in this area in the near future. Severely affected<br />
by the low willingness to invest in the communal<br />
area, a further decline in turnover of 4.5% is anticipated<br />
in the <strong>year</strong> 2011.<br />
» A clear recovery trend can be seen in residential construction,<br />
where turnover increased by 6%. This has been<br />
brought about mainly by the stabilisation of income expectations<br />
in the course of the economic upturn, a revival<br />
of interest of investors in residential properties, continuing<br />
low interest rates and the high level of subsidisation<br />
for the energy renovation of the housing stock.<br />
» In 2011, the positive developments in residential construction<br />
will most probably not suffice to compensate<br />
satisfactorily for the decline in public construction. As the<br />
President of the Hauptverband der Deutschen Bauindustrie<br />
(National Association of the German Construction Industry),<br />
Dipl.-Ing. Herbert Bodner announced at the beginning<br />
of the <strong>year</strong>, the best that could be hoped for was<br />
stable turnover, or possibly even a further decline.<br />
Assessment of the company management<br />
The <strong>year</strong> <strong>2010</strong> was a very successful business <strong>year</strong> for<br />
the <strong>Uzin</strong> <strong>Utz</strong> Group. Sales rose by almost 7%. Against<br />
the background of the continuing tough competition,<br />
some areas and regions succeeded in further increasing<br />
their market share, and operating successfully as international<br />
market leaders and complete suppliers in the<br />
area of flooring. This is particularly encouraging on the<br />
occasion of the 100-<strong>year</strong> company Jubilee in the <strong>year</strong><br />
2011, and in the light of the still difficult but stabilising<br />
market environment.<br />
» The strength of the group is reflected even better in<br />
the result. The result from ordinary activities, at around<br />
€14.4 million, represents an improvement of 31.7% over<br />
the previous <strong>year</strong>. On the one hand, this result gives the<br />
<strong>Uzin</strong> <strong>Utz</strong> Group the security of being able to handle crisis<br />
management, while on the other, the Group benefits<br />
from its firm foundation of diversification, particular<br />
closeness to the customer and strong company culture.<br />
49
» Other essential requirements – particularly with regard<br />
to sustainability, environmental protection and ecological<br />
orientation – have also been created, in order to enable us<br />
to face current and future challenges successfully.<br />
» Sustainability must not simply be a label, but is seen<br />
as an indication of company responsibility, and must characterise<br />
the attitude of the whole company.<br />
» The <strong>Uzin</strong> <strong>Utz</strong> Group is one of the forerunners in the<br />
field of sustainable building products. Sustainability is not<br />
regarded as one-dimensional in our company, but always<br />
includes ecological, economic and social considerations:<br />
» Firstly, the objective is to develop products which contribute<br />
to healthy room air. Secondly, it is not only the<br />
emissions which are important for building products. Manufacturers<br />
are increasingly required to provide environmental<br />
product data. The <strong>Uzin</strong> <strong>Utz</strong> Group is the first company<br />
in the sector to enable the sustainable assessment<br />
of the complete floor construction with its environmental<br />
product declarations.<br />
» In a challenging economic environment, characterised<br />
by uncertainties caused by the financial market crisis,<br />
tougher competition and negative currency effects, the<br />
<strong>Uzin</strong> <strong>Utz</strong> Group has maintained its position very well, and<br />
come off better than the competition in many important<br />
aspects.<br />
Internal company success factors<br />
Now as before, our long-standing and long-term strategy,<br />
the combination of the four internal company success<br />
factors<br />
−−<br />
highly qualified and highly motivated employees,<br />
−−<br />
leading, high-quality products in an intelligent system<br />
structure,<br />
−−<br />
unique service and logistics concept,<br />
−−<br />
successful brands that create confidence,<br />
is demonstrating its sustainable effectiveness. With regard<br />
to these four convincing focal points of our company culture,<br />
which form our basis for profitable growth, nothing<br />
has changed in the past, nor will it change in the future.<br />
» We are flexible and adaptable. We also work continually<br />
on new and benefit-orientated products which convince<br />
our customers. We operate an excellent risk management<br />
system, which contributes to our sustainable<br />
value creation, and therefore to long-term business success.<br />
The <strong>Uzin</strong> <strong>Utz</strong> Group can also rely on the special dedication<br />
of skilled employees and management teams. All<br />
this, together with highly satisfied customers, contributes<br />
to stability and repeatedly offers new opportunities,<br />
for which the Group is well-prepared.<br />
» Started in October 2009, the construction of the new<br />
central building for Research & Development was almost<br />
completed by the end of <strong>2010</strong>, so that from early 2011,<br />
our employees have even more room for their ideas for<br />
the development of innovative top products. The new<br />
building also represents a commitment to the headquarters<br />
location of Ulm, and is a visible confirmation that we<br />
continue to rely on the location of Germany.<br />
» The average number of employees in the Group fell to<br />
841 (859). Of these, 474 (486) were employed in Germany<br />
and 367 (373) abroad. 38 (46) young people were also<br />
taken on as trainees. This underlines impressively the efforts<br />
that have been going on for many <strong>year</strong>s to train our<br />
own qualified specialist personnel throughout the group,<br />
and prepare them for future positions in the company. The<br />
Group will continue in future with this important business<br />
policy task, offering future prospects to young people by<br />
means of special training opportunities, and at the same<br />
time ensuring qualified future employees for the company.<br />
The <strong>Uzin</strong> <strong>Utz</strong> Group wants their outstanding dedication<br />
to remain in the company in the future. Everything<br />
is therefore being done to foster this potential in the best<br />
possible way.<br />
» <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong> and Unipro B.V., Haaksbergen, Netherlands,<br />
are certified to the DIN ISO standards. The branch<br />
in Vaihingen and Herrmann Frank GmbH were newly<br />
certified in the business <strong>year</strong> <strong>2010</strong>. Both locations produce<br />
machinery for floor laying and treatment. Further<br />
internal auditors were also trained in these companies<br />
in <strong>2010</strong>, and comprehensive audit programmes instituted.<br />
The external repeat and re-certification audits once<br />
again confirmed the high quality and the correctness of<br />
the previous certification.<br />
» In the business <strong>year</strong> <strong>2010</strong>, production throughout the<br />
group was carried out at the production locations in Ulm,<br />
Vaihingen/Enz, Oberderdingen, Würzburg, Meckenheim,<br />
Buochs (Switzerland), Sursee (Switzerland), Haaksbergen<br />
(Netherlands), Legnica (Poland), Soissons (France), Shanghai<br />
(China), Ljubljana (Slovenia) and Jakarta (Indonesia). The<br />
total utilisation of all <strong>Uzin</strong> <strong>Utz</strong> works was around 87.5%,<br />
thereby increasing by around 1.9 percentage points over<br />
the previous <strong>year</strong> (85.6). There was no notable increase<br />
in production capacities in the Group in the <strong>year</strong> <strong>2010</strong>.<br />
» There were no major changes in the production range.<br />
Now as before, every batch produced throughout the<br />
50
group is subjected to strict quality control. Deliveries only<br />
take place following release of the products by the responsible<br />
laboratory.<br />
» There were some minor changes with regard to raw<br />
materials suppliers in the reporting <strong>year</strong>, although the<br />
procurement structures remained essentially unchanged.<br />
» In the <strong>year</strong> <strong>2010</strong>, nothing changed with regard to the<br />
group-wide principles of long-term disposition, long-term<br />
contract partnerships or comprehensive quality controls<br />
in the area of procurement.<br />
» The financing strategy is explained in the “Financial<br />
situation” section of this report.<br />
Internal organisation and decision-making<br />
The internal group organisation follows the principle of<br />
direct decision-making channels and the flattest possible<br />
hierarchies. All major decisions are prepared in departmental<br />
and divisional committees, and then submitted to<br />
the relevant director or board with a decision-making recommendation.<br />
All major decisions are discussed by the<br />
relevant director or board of the shareholding company<br />
with the Board of <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong>. All decisions requiring approval<br />
are presented by the Board of <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong> to the<br />
Supervisory Board of <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong> for approval.<br />
Important events and developments in the reporting<br />
<strong>year</strong><br />
In the business <strong>year</strong> <strong>2010</strong>, preparations were made for<br />
the strategic re-positioning of individual brands, and these<br />
were communicated, amongst other means, at the exhibition<br />
‘BAU 2011’ in January: new products were also<br />
added to the brand ranges of <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong>.<br />
» The Qeshfloor brand has been trading since January<br />
2011 under the name ‘Arturo’. Previously specialising in<br />
the manufacture of industrial flooring, Arturo promotes<br />
itself as an expert in individual synthetic resin flooring –<br />
whether for industry, commerce or residential properties.<br />
The floors adapt themselves perfectly to the function of<br />
the room, and can be applied to a concept with a unique<br />
design.<br />
» The Pallmann brand now offers for the first time a complete<br />
range covering all aspects of parquet flooring – from<br />
the right substrate preparation through to the cleaning<br />
and care of parquet floors. As a partner to the parquetlaying<br />
business, the trade and decision-makers in interior<br />
design, <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong> felt itself duty-bound to combine its<br />
range and services covering all aspects of the new laying,<br />
renovation and value preservation of parquet flooring.<br />
» codex reacted early to the consumer trend, and tested<br />
and certified most of its products to the demanding<br />
requirements of the GEV – Gemeinschaft Emissionskontrollierte<br />
Verlegewerkstoffe, Klebstoffe und Bauprodukte<br />
e.V. (Association for emission-controlled laying materials,<br />
adhesives and building products). The brand is taking another<br />
consistent step forward with the new EcoTec product<br />
line: the products comply with the requirements of the<br />
Emicode EC 1 PLUS certification, and are therefore even<br />
lower in emissions. A complete system construction can<br />
be carried out with EcoTec, from the substrate preparation<br />
to the jointing of the tile or natural stone flooring.<br />
» The investments instituted at the end of 2009 at the<br />
Ulm location were progressed in <strong>2010</strong>: the central Research<br />
& Development building, which brings together<br />
our previously separated laboratories, was largely completed<br />
by the end of the <strong>year</strong>.<br />
Internal control system<br />
The group-wide internal control system is based on a<br />
number of mechanisms and key figures, which illustrate<br />
specific departmental procedures and make them measurable.<br />
All internal control systems for all areas are based<br />
on the following key financial figures:<br />
−−<br />
Cash-flow from ordinary activities,<br />
−−<br />
Sales revenues,<br />
−−<br />
Result from ordinary activities,<br />
−−<br />
Return on sales,<br />
−−<br />
Return on capital and<br />
−−<br />
Equity ratio.<br />
Events, decisions and factors significantly affecting<br />
the further development of the company<br />
» All events, decisions and factors significantly affecting<br />
the further development of the group which were already<br />
known in the <strong>year</strong> <strong>2010</strong> are contained in the relevant<br />
part of this report. All such matters which became known<br />
between the end of the <strong>year</strong> <strong>2010</strong> and the compilation of<br />
this report are contained in the section “Significant events<br />
following the end of the business <strong>year</strong>”.<br />
Deviations from earlier reported expectations<br />
In the <strong>year</strong> <strong>2010</strong>, there were no major deviations in business<br />
developments in the Group from earlier reported<br />
expectations.<br />
51
Situation of the Group*<br />
* (all figures to IFRS)<br />
52<br />
The asset, financial and revenue situation of the Group<br />
developed positively overall in the <strong>year</strong> <strong>2010</strong>. Increasing<br />
sales in combination with the continuation of strict cost<br />
management led to improvements in most major positions.<br />
Sales revenues and the result from ordinary activities<br />
increased once again.<br />
» In the comparison of the <strong>balance</strong> sheet values, it must<br />
be noted that the correction to the company valuation of<br />
BIL Leasing shown in the Appendix had an effect on the<br />
previous <strong>year</strong>’s figures for intangible assets and equity.<br />
Financial position<br />
The <strong>balance</strong> sheet total increased by € 12.6 million to<br />
€167.3 million (154.7). The share of group non-current<br />
assets fell to 55.3% (57.7), and the current assets therefore<br />
make up 44.7% (42.3) of the <strong>balance</strong> sheet total.<br />
» Trade receivables rose due to the increased sales from<br />
€22.7 million to €25.7 million.<br />
» As a result of the improved order situation, inventories<br />
rose by €5.2 million from €20.1 million to €25.3<br />
million.<br />
» The intangible assets rose slightly from €31.8 million<br />
to €31.9 million.<br />
» The tangible assets rose by €2.7 million to €59.4 million,<br />
as a result of increased investment activities. The<br />
exchange rate effect from the conversion of non-Euro<br />
<strong>balance</strong>s amounted to around €1.9 million. For the coming<br />
<strong>year</strong>, a total of €15 million in investments is planned<br />
within the group. These relate mainly to investments<br />
for the extension of the Ulm production location started<br />
in previous <strong>year</strong>s. Investments are also planned at Unipro<br />
B.V. for 2011, which relate mainly to the purchase<br />
of the property currently in use.<br />
» The cash and cash equivalents increased by nearly<br />
0.8% or €0.1 million to €14.5 million.<br />
» With the exception of investment properties, the complete<br />
assets continue to represent the commercially necessary<br />
values.<br />
» Non-<strong>balance</strong> sheet financing instruments were used,<br />
and refer mainly to rental and leasing contracts.<br />
Liquid and capital resources<br />
The total equity amounted to €77.1 million (67.6), and<br />
at a proportion of 46% (44) of the <strong>balance</strong> sheet total<br />
remains significantly above the sector average.<br />
» The short-term financial liabilities fell by a total of<br />
€1.6 million to €22.6 million. This reduction results from<br />
capital repayments which were possible due to the high<br />
cash-flow. Long-term fixed-interest loans were also taken<br />
out to take advantage of the favourable interest rate.<br />
This reduced the short-term current-account overdrafts.<br />
» The liabilities from income tax fell from €1.6 million<br />
to €1.2 million.<br />
» The reserves increased by €0.4 million to €6.7 million<br />
(6.3).<br />
» The share of the short-term liabilities in the <strong>balance</strong><br />
sheet total thereby fell from 27.2% in the previous <strong>year</strong><br />
to 25.8% in the <strong>year</strong> <strong>2010</strong>.<br />
» The long-term due to credit institutions increased by<br />
€1.1 million to €35 million (33.9) due to the above-mentioned<br />
assumption of long-term, low-interest loans.<br />
» The share of the non-current liabilities in the <strong>balance</strong><br />
sheet total fell slightly from 29.1% in the previous <strong>year</strong><br />
to 28.0% in the <strong>year</strong> <strong>2010</strong>. In absolute terms, the noncurrent<br />
liabilities increased by around €1.9 million from<br />
€45.0 million to €46.9 million.<br />
» The principle and simultaneous objective of the finance<br />
management is to ensure adequate liquidity at all times,<br />
while at the same time maintaining a high equity capital<br />
ratio well above the sector average. This requirement<br />
was also satisfied in the <strong>year</strong> <strong>2010</strong>. Liquidity was insured<br />
at all times, and lines of credit were never utilised to the<br />
full amount. In <strong>2010</strong>, various financing measures were<br />
required due to the investments at the Ulm and Haaksbergen<br />
locations. The total credit volume in the group<br />
in the <strong>year</strong> <strong>2010</strong> was €57.6 million, slightly down from<br />
€58.1 million in the previous <strong>year</strong>. Of this total, there<br />
were around €22.6 million with a remaining term of up<br />
to one <strong>year</strong> (24.2), €31.2 million with a remaining term<br />
of between 1-5 <strong>year</strong>s (27.9) and around €3.8 million<br />
with a remaining term of over 5 <strong>year</strong>s (6.0). These loans<br />
were almost all taken out at a fixed interest rate. The remaining<br />
proportion of the credit volume was taken out<br />
at variable interest rates. A further capital requirement<br />
exists particularly for the investments of <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong>,<br />
although we do not thereby anticipate any major changes<br />
in the interest rate structure. The total credit volume<br />
also includes three subordinated capital tranches of<br />
<strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong> in the amount of €6.8 million, which come<br />
from the programmes “Capital for work” and “ERP innovation<br />
programme” of the Kreditanstalt für Wiederaufbau<br />
(Reconstruction Loan Corporation). With its receivables<br />
from this loan, the bank stands irrevocably<br />
behind all present and future receivables of creditors in
precedence before the claims for return of a capital-replacing<br />
loan of a shareholder or equivalent claims.<br />
» Public subsidy programmes, medium-sized company<br />
loans and other low-interest financing were again applied<br />
for and used.<br />
» An interest rate hedging deal was concluded in 2008<br />
for a variable-interest loan to be taken out in <strong>2010</strong>. An<br />
interest rate of 4.92% was secured until 30.06.2016 for<br />
a nominal value of €5.0 million.<br />
» Forward exchange deals and currency options are also<br />
used in individual cases for the securitisation of fixed<br />
payments or in case of major foreign currency receivables<br />
or liabilities.<br />
» The detailed development of the liquidity is shown<br />
in the group capital flow account.<br />
Profitability<br />
» The sales revenue of the Group increased in the <strong>year</strong><br />
<strong>2010</strong> by 7.0% from €172.2 million to €184.2 million. This<br />
was due above all to the positive sales developments of<br />
<strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong>, JP Coatings GmbH and sales developments<br />
of the companies in Switzerland and the USA.<br />
» The total group foreign sales increased to around<br />
€100.6 million (92.5). The foreign share increased by<br />
around 0.9% to 54.6% (53.7). The share of sales not invoiced<br />
in Euro increased to around 25.5% (20.0). The<br />
currencies outside the Euro zone relevant for the Group<br />
developed as follows:<br />
» The total exchange rate effect on the group sales was<br />
1.77% (-1.1).<br />
» The sales volumes in the Group were increased by<br />
5.5% in the <strong>year</strong> <strong>2010</strong>. In the reporting <strong>year</strong>, there were<br />
no changes in the product mix which had an effect on<br />
major changes in the sales and the result. Sales prices<br />
were increased on average by around 1.4%.<br />
» Due to the production mainly by batches and the usually<br />
very short time between order and delivery, production<br />
generally takes place for an anonymous market, with<br />
deliveries being made ex-stock, which throughout the<br />
Group is sufficient for around 1.5 months sales. Statements<br />
on the outstanding order book are therefore not<br />
conclusive.<br />
» The overall capacity increased by 8.7% to €186.3 million<br />
(171.4).<br />
» The absolute material expenditure increased by 10.1%<br />
from €73.2 million to €80.6 million. The material usage<br />
quota within the Group increased from 42.7% to 43.3%.<br />
» The share of personnel costs in the overall capacity<br />
fell to 25.4% (26.6). In absolute terms, the personnel<br />
costs rose as a result of wage and salary increases from<br />
€45.5 million to €47.3 million.<br />
» Due to the investments made, depreciation increased<br />
from €5.4 million to €5.6 million.<br />
» The other operating expenditure increased by around<br />
€2.6 million from €36.4 million in the previous <strong>year</strong> to<br />
€38.9 million. This results mainly from expenditure which<br />
was postponed in the previous <strong>year</strong> due to the even more<br />
difficult market situation.<br />
» To determine the revenue situation, different results<br />
figures are used in some cases in comparison to the<br />
Group financial statements.<br />
» The earnings before interest and taxes (EBIT), at €15.8<br />
million, were significantly above the level of the previous<br />
<strong>year</strong> (12.7).<br />
» Due to the reduced overall credit and current account<br />
volume, the financial result of €-2.1 million was 10.7%<br />
above the previous <strong>year</strong>’s figure (-2.3).<br />
» The earnings before taxes (EBT), at €13.7 million, were<br />
around 32.8% above the previous <strong>year</strong>’s figure (10.3).<br />
» The annual surplus in the Group, at around €9.6 million<br />
was around €2.5 million or 35.2% above the previous<br />
<strong>year</strong>’s figure (7.1).<br />
» Details on the sales, annual surpluses and equity capital<br />
of the individual shareholdings can be taken from<br />
the “Shareholdings” section in the Group Appendix.<br />
53
Risk <strong>Report</strong><br />
Main risks<br />
Environment and sector risks<br />
The main overall economic risks for the Group are posed<br />
by general economic developments, and particularly<br />
those in the construction sector. Although the global<br />
economy and the German economy are on the upturn,<br />
risks must still be anticipated due to the continuing weak<br />
development of the construction industry. Public construction<br />
in Germany in particular cannot pull out of<br />
its downward trend because local authorities have no<br />
funds available. Europe, another main market, also presents<br />
risks. Continual reports by EU states with severe<br />
financial problems continue to give cause for concern in<br />
these regions. The same uncertainty also exists in other<br />
markets. By active dialogue with our customers and intensive<br />
internal analysis and research on the market environment,<br />
customer requirements and the competition,<br />
we can react in good time to new developments and the<br />
needs of the sector.<br />
Product risks<br />
The future development of the group depends to a great<br />
extent on developing innovative products and optimising<br />
existing formulations. Every effort is therefore being<br />
made to push ahead with development work and identify<br />
product requirements and trends in good time. High development<br />
costs and continual in-house developments<br />
are being devoted to this requirement. Any possible damages<br />
occurring are covered by comprehensive international<br />
insurance coverage, which also includes corresponding<br />
product liability insurance. Normal operating risks<br />
are covered by corresponding precautionary reserves.<br />
» In addition to the changing requirements of our customers,<br />
new laws are continually being passed, particularly<br />
relating to the chemicals sector. Due to the prohibition<br />
or the restricted use of certain chemicals or hazardous<br />
materials, it is essential for the <strong>Uzin</strong> <strong>Utz</strong> Group to develop<br />
new formulations in line with these requirements,<br />
while at the same time maintaining or even improving<br />
the product quality. Since 1st December <strong>2010</strong>, under<br />
the regulations of REACH (Registration, Evaluation, Authorisation<br />
and Restriction of Chemicals), a notification<br />
requirement has been in force for importers of raw materials<br />
from non-EU countries if these import materials<br />
which are hazardous or subject to registration.<br />
» Due to the critical situation of various essential raw<br />
material markets, delivery bottlenecks have occurred,<br />
and continue to occur, with regard to their availability.<br />
It is therefore essential to identify corresponding substitute<br />
raw materials, in order to convert the product formulae,<br />
while still maintaining consistent quality.<br />
» In order to overcome these challenges with the optimum<br />
result and maximum product quality throughout<br />
the group at all times, a project was started in the <strong>year</strong><br />
<strong>2010</strong> by the specialist departments of Quality Control<br />
and International Research & Development. The aim is<br />
to ensure that product groups which are produced at different<br />
locations within the group are produced worldwide<br />
to the same standards and the same quality. This is<br />
intended to reduce to the minimum the number of product<br />
faults throughout the group.<br />
Failure risks in the area of production and the<br />
main IT-supported processes<br />
In the production areas of the individual works, the likelihood<br />
of inefficient operation of production facilities is<br />
largely reduced by regular maintenance, fire safety and<br />
other precautionary measures. Corresponding insurance<br />
coverage has been taken out against damage caused by<br />
natural disasters and resulting stoppages.<br />
» The business and production processes, and the internal<br />
and external communication of the <strong>Uzin</strong> <strong>Utz</strong> Group<br />
are increasingly based on information technologies. A<br />
major fault, or even the failure of the global and regional<br />
business systems can lead to a loss of data and impairment<br />
of the business and production processes. The<br />
likelihood of failure of process-critical information systems<br />
is reduced to the minimum by corresponding technical,<br />
structural and organisational measures.<br />
Financial risks<br />
The level of financial risks is difficult to assess in the current<br />
situation. Due to the persisting uncertainties on the<br />
financial markets, sensible securitisation must be provided<br />
for sales which are subject to an exchange rate risk,<br />
while always weighing up the costs and benefits. The<br />
development of the currencies relevant for the Group<br />
is described in the “Revenue situation” section of this<br />
report. Possible future large exchange rate fluctuations<br />
continue to harbour a residual risk.<br />
» Even after the economic crisis is considered to have<br />
been overcome, the focus in the Group still lies on the<br />
permanent credit rating of customers. The great majority<br />
of receivables from customers are also covered by cre-<br />
54
dit insurance. The optimisation of freely available funds<br />
is ensured by group-wide, strict claims management.<br />
» All major liabilities in favour of banks are basically financed<br />
in the long term with fixed interest rates or secured<br />
against interest rate change risks by an interest<br />
rate swap.<br />
» The main finance instruments used by the <strong>Uzin</strong> <strong>Utz</strong><br />
Group include bank loans and current account overdrafts,<br />
financing-leasing agreements and liabilities from deliveries<br />
and services. The main purpose of these finance<br />
instruments is the financing of business activities. The<br />
Group has various financial assets, such as receivables<br />
from deliveries and services, funds and short-term deposits,<br />
which result directly from its business activities.<br />
The <strong>Uzin</strong> <strong>Utz</strong> Group also has a very low level of derivative<br />
finance instruments in the form of forward exchange<br />
transactions and an interest rate swap. The purpose of<br />
these finance instruments is to provide security against<br />
interest rate change risks resulting from the business activities<br />
of the <strong>Uzin</strong> <strong>Utz</strong> Group and its financing sources.<br />
Investment risks<br />
Risks resulting from major investments are assessed by<br />
standardised investment calculations, and must be approved<br />
by the Board of <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong>. External consultants<br />
are also engaged for this purpose if necessary. Possible<br />
acquisitions are analysed with external support, assessed<br />
by the Board and approved by the Supervisory Board.<br />
Risks endangering the company’s existence<br />
None of the above risks currently endanger the company’s<br />
existence. There are at the moment no other identifiable<br />
risks that might endanger the company’s existence.<br />
Description of the risk management system<br />
The Group operates a system for the identification and<br />
control of present and future business and financial risks.<br />
This risk management system was implemented many<br />
<strong>year</strong>s ago in the group. No major changes have been<br />
made to the system. This is nevertheless a living system,<br />
which in the course of continual improvement is subject<br />
to a permanent optimisation process.<br />
» The elements of the risk management system are<br />
−−<br />
the risk management,<br />
−−<br />
the risk controlling and<br />
−−<br />
the risk reporting.<br />
» These are all based on a number of individual evaluations,<br />
analyses, reports and project groups, which analyse<br />
individual processes and circumstances in detail according<br />
to the situation. The responsibility for this task<br />
lies with the responsible departmental or divisional manager<br />
of the relevant shareholding company. These report<br />
direct to the relevant director or board of the company,<br />
who in turn consult on all important matters with<br />
the Chief Financial Officer of <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong>, with whom<br />
the overall responsibility lies. The “Central Controlling<br />
(CO)” Department of the parent company coordinates<br />
the risk management elements across the Group. Documents<br />
distributed to the Chief Financial Officer of <strong>Uzin</strong><br />
<strong>Utz</strong> <strong>AG</strong> are submitted by him if necessary to the complete<br />
Board and the Supervisory Board of <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong><br />
and other circles. The complete risk management system<br />
is designed to identify and counteract risks endangering<br />
the existence of the company at an early stage,<br />
and to ensure the achievement of the business objectives.<br />
The principles, guidelines, processes and responsibilities<br />
of the internal control and risk management system<br />
are defined and established. The risk management<br />
system essentially covers the risk groups described above.<br />
In addition to individual risk management measures,<br />
we act in awareness of risks on the basis of safety-orientated,<br />
professional company management, with appropriate<br />
insurance cover and guidelines and instructions<br />
applicable across the company.<br />
» The highly controlling-orientated and proven cost management<br />
introduced in the past, as an integral component<br />
of controlling, whose importance is even greater<br />
under the existing conditions, will continue to support<br />
the philosophy of revenue-orientated development.<br />
» The statements in the sections “Financial situation”<br />
and “Financial risks” of this report apply for the area of<br />
financial instruments. The result and liquidity risks of<br />
the financial assets are also identified in the form of an<br />
early detection system. The main elements of this system<br />
consist of detailed monthly reporting on al major<br />
<strong>balance</strong> sheet and P&L positions, a quarterly risk management<br />
report, regular audit discussions on site with<br />
the shareholding companies, an Organisation Manual<br />
which is valid throughout the Group and mandatory, direct<br />
communications channels for the directors of the<br />
shareholding companies with the Board of <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong><br />
on all important matters.<br />
55
Internal control and risk management system<br />
with regard to the financial reporting process<br />
A major component for the avoidance of risks, particularly<br />
in accounting and financial reporting, is the internal<br />
control system. This provides the following features:<br />
» In the <strong>Uzin</strong> <strong>Utz</strong> Group, the management and company<br />
structures are clearly defined. Department-wide key<br />
functions are controlled centrally by <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong>, although<br />
the individual subsidiary companies retain a high<br />
degree of independence.<br />
» The main functions in the financial reporting process<br />
– book-keeping, finance and accounting and controlling<br />
– are clearly separated. Areas of responsibility are clearly<br />
assigned.<br />
» An adequate system of guidelines is in place (e.g.<br />
Group <strong>balance</strong> sheet guidelines, travelling expenses guidelines<br />
etc.), and is continually updated.<br />
» The financial systems used are protected as far as<br />
possible against unauthorised access by corresponding<br />
authorisation procedures and access restrictions.<br />
» The financial systems used are based essentially on<br />
the SAP standard. The application programme Excel from<br />
the MS Office suite is used for presentation and further<br />
evaluations.<br />
» Received or transmitted accounting data are continually<br />
checked for completeness and accuracy. Programmed<br />
plausibility checks are carried out by the software<br />
used.<br />
» The control system with regard to the financial reporting<br />
process is designed so as to ensure prompt and<br />
correct accounting of all business processes and transactions.<br />
Changes in legislation, financial reporting standards<br />
and other official requirements are continually analysed<br />
with regard to their relevance and effects on the<br />
group financial statements, and the resulting changes<br />
reflected in the internal Group guidelines and systems.<br />
The control of the group financial reporting process at<br />
<strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong> is carried out by the central department of<br />
Group Controlling.<br />
» The group companies compile their financial statements<br />
locally and forward them using a data model which<br />
is defined in standard form throughout the Group. The<br />
group companies are responsible for the observation of<br />
the Group guidelines and procedures, and the correct<br />
and timely operation of their financial reporting processes<br />
and systems. The local companies are supported<br />
in the complete financial reporting process by central<br />
contact partners. The consolidated accounts are compiled<br />
centrally on the basis of the data of the subsidiary<br />
companies included in the consolidation group. During<br />
this process, manual checks are continually carried out<br />
by Group Controlling in order to ensure the plausibility<br />
of the forwarded and the consolidated data.<br />
» Internal Audit regularly checks business processes of<br />
both the subsidiary companies and central departments<br />
for correctness, efficiency and security. Internal Audit<br />
reports as an independent body direct to the Board.<br />
» The objective of our risk management system and<br />
our internal control system is to ensure the effectiveness<br />
of business activity and compliance with the relevant<br />
legal regulations.<br />
56
Forecast <strong>Report</strong><br />
Future economic conditions<br />
Following the German record <strong>year</strong> of <strong>2010</strong>, growth will<br />
slow down in the <strong>year</strong> 2011. Experts forecast a GDP growth<br />
of 2.1% to 2.4%. These forecasts are also subject to a certain<br />
risk, due to such factors as the Euro crisis. The World<br />
Bank anticipates an increase of 3.3% for the global economy<br />
in the current <strong>year</strong>. Emerging and developing countries<br />
continue to be largely responsible for this growth.<br />
» In the opinion of Dipl.-Ing. Herbert Bodner, President<br />
of the Hauptverband der Deutschen Bauindustrie (National<br />
Association of the German Construction Industry),<br />
the German construction industry will again be unable<br />
to keep pace with the growth in the overall economy<br />
this <strong>year</strong>. This is mainly due to the empty coffers of local<br />
authorities, for which reason a further decline in turnover<br />
must be anticipated in public-sector construction.<br />
For the German construction industry as a whole however,<br />
Bodner forecasts that turnover will stabilise at the<br />
previous <strong>year</strong>’s level. Experts are also more encouraging<br />
in their forecasts for the <strong>year</strong> 2012. It could be interpreted<br />
from the assumptions made prior to the BAU 2011<br />
exhibition that the building industry will return to strong<br />
growth and catch up with the economy as a whole.<br />
» Between the end of the <strong>year</strong> <strong>2010</strong> and the time of<br />
compilation of this report, growth of around 10% was<br />
identified in terms of sales in comparison to the same<br />
period of last <strong>year</strong>. Although the construction sector has<br />
not yet recovered fully, we are confident that because<br />
of our technical and geographical diversification, we will<br />
continue to achieve very satisfactory results over the coming<br />
<strong>year</strong>s. With our firm foundation, our positioning in<br />
the market and our special closeness to the customer, we<br />
are convinced that we will be able in future to adapt to<br />
current challenges. There are no internal factors known<br />
which might bring into question any conclusions regarding<br />
the currently reported or future situation.<br />
» We will describe below the developments in the regions<br />
most important for the <strong>Uzin</strong> <strong>Utz</strong> Group. We will<br />
examine in particular the development in the regions of<br />
western Europe and southern/eastern Europe:<br />
» The economic situation in western Europe falls into<br />
two camps. While countries such as Spain and Portugal<br />
are still having to struggle with the crisis, countries such<br />
as Switzerland, France and the Netherlands are again reporting<br />
better figures. A general upward trend can also<br />
be identified for the current <strong>year</strong>, although in weakened<br />
form.<br />
» In France for example, a real increase in GDP of 1.4%<br />
is forecast for 2011. Good opportunities in the construction<br />
sector are seen particularly in the extension and<br />
renovation of residential and commercial property and<br />
in craftsmanship construction work.<br />
» The Dutch economy is also on the upturn, and expects<br />
GDP growth of 2% for the current <strong>year</strong>. It is however<br />
uncertain whether this will benefit the construction<br />
industry to the same extent. Savings measures are now<br />
taking the place of the economic support programme,<br />
which could certainly slow down growth.<br />
» In Great Britain too, it is clear that the building industry<br />
cannot keep pace with the overall economic development.<br />
While growth of up to 2.3% is expected, driven<br />
by exports, no notable growth is anticipated in the<br />
building industry for the <strong>year</strong> 2011. Only residential construction<br />
is expected to pick up speed again in the next<br />
two <strong>year</strong>s.<br />
» In Switzerland, the robust domestic economy is being<br />
counteracted in the <strong>year</strong> 2011 by a deterioration in exports.<br />
It is therefore expected that weakened economic<br />
growth of 1.9% will be possible in the current <strong>year</strong>. Due<br />
to the ending of the economic support packages, the<br />
construction sector, and particularly residential construction,<br />
could also show declining figures.<br />
» While the economic crisis had severe effects on many<br />
southern/eastern European countries in the <strong>year</strong> 2009,<br />
some of them were able to rescue themselves from the<br />
crisis in the <strong>year</strong> <strong>2010</strong>, in some cases with strong growth<br />
rates. This trend will also continue in the current <strong>year</strong>.<br />
Countries falling into this category include in particular<br />
the four large national economies of Poland, Turkey,<br />
Russia and Kazakhstan.<br />
» The Polish National economy harbours enormous<br />
potential. In the <strong>year</strong> <strong>2010</strong>, the country achieved GDP<br />
growth of 3.5%. According to the Statistical Office of<br />
the European Union, this growth should improve even<br />
further in the current <strong>year</strong> to 3.9%. Construction and<br />
installation services will grow in the next three to four<br />
<strong>year</strong>s by approx. 12% per <strong>year</strong>, supported by such major<br />
events as the 2012 European Championship. Although<br />
commercial and residential construction has not<br />
yet been able to recover to this extent, great potential<br />
is also seen here for the future.<br />
» The Czech economy was also able to finish the <strong>year</strong><br />
<strong>2010</strong> with GDP growth of 2.4%. A similar increase is<br />
forecast for the current <strong>year</strong>. For the building industry,<br />
57
the <strong>year</strong> <strong>2010</strong> was the real crisis <strong>year</strong>, and is still having<br />
its effects on the current <strong>year</strong>, although imminent projects<br />
in office and residential construction and EU subsidies<br />
should contribute to the upturn.<br />
Future development of the <strong>Uzin</strong> <strong>Utz</strong> Group<br />
Despite the very good chances of a continuing worldwide<br />
economic upturn, the market situation remains unstable<br />
because of certain risk factors. Experience has also<br />
shown that the consequences of the global upturn only<br />
work with a delayed effect on the sectors in which the<br />
<strong>Uzin</strong> <strong>Utz</strong> Group operates.<br />
» In the light of these expectations, the Group remains<br />
cautious, but very confident. Unforeseeable developments<br />
beyond the control of the Group, and their concomitant<br />
risks, may still undermine the basis of any forecast.<br />
» From the current point of view and state of knowledge,<br />
the following assessment of the future company<br />
development appears feasible:<br />
» The financial problems of German local authorities<br />
and some European countries are severely hampering the<br />
investment strength of the main markets of the <strong>Uzin</strong> <strong>Utz</strong><br />
Group. Despite this high level of uncertainty and reduced<br />
predictability, we are firmly convinced that we are<br />
well-prepared for the Jubilee <strong>year</strong> 2011 and for the future<br />
because of the strong market position we have established,<br />
our organisation structure, our broad product<br />
range and our regional diversification.<br />
» Due to this unique position, we are confident that the<br />
stagnation of the construction market will not spread to<br />
the <strong>Uzin</strong> <strong>Utz</strong> Group, and that we can therefore expect a<br />
very positive business <strong>year</strong> 2011. In addition to a further<br />
increase in sales, we also expect an increase in the result<br />
from normal business activities. This performance<br />
will be all the more important since increased costs are<br />
planned for the business <strong>year</strong> 2011, caused by the forthcoming<br />
Jubilee. In addition to this cost effect, the development<br />
in raw material costs will also constitute an<br />
important factor. In the case of raw materials which are<br />
sensitive to price, demand and volume, contracts will be<br />
concluded with our suppliers which guarantee a specific<br />
offtake quantity, and also a fixed price, for up to one<br />
<strong>year</strong>.<br />
» The financial situation, which is affected above all by<br />
investments of <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong>, will remain relatively stable<br />
in the business <strong>year</strong> 2011.<br />
» Due to the expected better order situation, a slight<br />
increase in employee numbers is expected. The number<br />
of employees has also been increased by the acquisition<br />
of the Norwegian company Løkken AS by their 20 employees.<br />
» Most of the risks described in the section “Risk report”<br />
also offer opportunities for the Group. Due to its size,<br />
market position and the internal success factors already<br />
described, the Group can and will continue to make<br />
use of every commercially sensible market opportunity<br />
arising in order to increase its market share. The opportunities<br />
offered by strategically sensible company acquisitions<br />
will of course also be examined in detail and<br />
realised where appropriate.<br />
» In particular, the<br />
−−<br />
environment and sector risks,<br />
−−<br />
the product risks,<br />
−−<br />
the financial risks and<br />
−−<br />
the investment risks<br />
continue to offer outstanding opportunities because of<br />
their applicability to all market players, and in view of<br />
the excellent position of the Group in the areas of product<br />
quality, service and Logistics concept. In addition<br />
to the high quality of the products manufactured, our<br />
unique technical consultation expertise and the ability<br />
to deliver almost anywhere in Europe within 48 hours<br />
form the foundations for sustainable success and optimum<br />
utilisation of the opportunities arising.<br />
» We expect the following development for the course<br />
of business in the segments of western Europe and southern/eastern<br />
Europe: in both segments, we expect sales<br />
to remain stable in comparison to the previous <strong>year</strong>.<br />
Overall, we expect slowed growth in western Europe.<br />
In our opinion, stronger growth could also set in in southern/eastern<br />
Europe.<br />
Significant events following the end of the business<br />
<strong>year</strong><br />
On 1st January 2011, <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong> contractually agreed<br />
to acquire 80.4% of the shares of Løkken AS in Skien,<br />
Norway. The acquisition of this sales company creates a<br />
launch platform for Norway and Scandinavia as a whole,<br />
since we have access to an already existing sales network.<br />
» There were no further significant events following the<br />
<strong>balance</strong> sheet date.<br />
58
Research and development activity<br />
Costs for research and development in the Group amounted<br />
to €5.4 million (4.7) in the <strong>year</strong> <strong>2010</strong>. An average of<br />
77 (75) employees worked in the area of R&D / product<br />
technology, who together contributed to a new product<br />
quota of all <strong>Uzin</strong> <strong>Utz</strong> development locations of 49% (38).<br />
In terms of individual brands, we can report as follows:<br />
UZIN & codex brands<br />
UZIN has been a brand of expertise of the specialist trade<br />
and specialist wholesale business in the building industry<br />
for 60 <strong>year</strong>s. For this purpose, <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong> produces<br />
a wide range of construction chemical products which<br />
have properties specially matched to the application<br />
processes. At the Ulm headquarters, the R&D personnel<br />
research and develop ever newer and more innovative<br />
product systems, in order to facilitate the work of<br />
customers in a systematic way. They develop outstanding<br />
products, whose performance makes them stand<br />
out clearly from the other products on the market, and<br />
provide clearly defined added value for the customer. In<br />
the reporting <strong>year</strong> <strong>2010</strong>, and therefore one <strong>year</strong> earlier<br />
than planned, the new product quota of 51.9% exceeded<br />
the target of 50% set four <strong>year</strong>s ago for the Jubilee<br />
<strong>year</strong> 2011.<br />
» In concrete terms, this means that <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong> in<br />
<strong>2010</strong> generated €46 million of sales with “new” products,<br />
which are no more than 5 <strong>year</strong>s old. The innovation<br />
leadership of <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong> was also impressively<br />
confirmed by the representative market survey carried<br />
out by the periodical “Fußbodentechnik” in the 04/<strong>2010</strong><br />
issue, which asked 1,500 German flooring businesses to<br />
name their favourite laying materials. <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong> emerged<br />
as the “most popular laying material manufacturer<br />
of the <strong>year</strong> <strong>2010</strong>”, and the dry mortar products UZIN NC<br />
170 LevelStar and UZIN NC 182 each took first place in<br />
the categories “Best self-levelling compound” and “Best<br />
low-slump levelling compound”. In the other flooring system<br />
categories of “Primer” and “Adhesive”, the corresponding<br />
UZIN fluid products all gained a place on the<br />
podium. The dispersion products UZIN PE 280 and UZIN<br />
KE 2000 S achieved one third and one second place respectively.<br />
This is the best possible confirmation that the<br />
development results of <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong> enjoy the greatest<br />
regard in the sector. Competitive advantages can only<br />
be consistently used, and above-average growth achieved,<br />
with a continual flow of innovations. The continuity<br />
of the research strategy is important both for boom<br />
and for crisis times. The global recession has left deep<br />
scars on many companies, in some cases creating great<br />
uncertainty, although not at <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong>. On the contrary,<br />
the R&D strategy of the company is directed in<br />
the long term at the further development of the portfolio,<br />
and at ground-breaking solutions derived from global<br />
trends. <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong> has laid the groundwork for sustainable<br />
successes of the business areas of UZIN and codex<br />
with a series of new products. In this case, it was essential<br />
to take into account the paradigm shift in the sector,<br />
according to which success is not determined only<br />
by new products, but also by new effects, new systems<br />
and new system solutions. This decisive contribution<br />
to achieving our ambitious objectives was made by our<br />
highly-motivated R&D personnel, who in <strong>2010</strong> devoted<br />
every effort to bringing new products online, and from<br />
a pipeline of 45 projects at the Ulm headquarters, and<br />
prepared 22 products for market launch.<br />
» The major highlights are described below:<br />
1. Dry mortar developments<br />
a) Laying materials for natural stone<br />
Natural stones are formed by natural processes, so that<br />
unevenness, colour and shape variations cannot be prevented.<br />
Every natural stone is unique, and this uniqueness<br />
therefore also places special requirements on the<br />
laying and jointing. Laying products which preserve the<br />
natural beauty of the stone are therefore all the more<br />
important. For this reason, <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong> has set itself the<br />
strategic objective in the area of cement-based natural<br />
stone grouting of offering the craftsman special advantages<br />
in the form of innovations. Following the successful<br />
development in 2007 of a comprehensive grouting range<br />
for ceramic tiles in different shades, extensive formulation<br />
work was carried out in <strong>2010</strong> to produce a total of<br />
9 different colour variants for the natural stone grouting<br />
range codex Brillant cristal. These cement-based natural<br />
stone grouting mortars complete the codex grouting<br />
mortar range in an exclusive way, so that nothing<br />
more stands in the way of their market launch in 2011.<br />
Beginning with the mixing process, through to jointing<br />
and washing of the natural stone joints, outstanding<br />
added value has been provided for natural stone layers.<br />
The finished natural stone joint appearance also stands<br />
out for the full joint filling and the exceptional look. The<br />
new, very low-emission grouting mortars for natural<br />
59
stone are convincing above all for the very fast crystalline<br />
water bonding, and therefore provide genuine stability<br />
of form and high colour-fastness of the jointed natural<br />
stone covering. In comparison to existing products<br />
on the market, the new developments also demonstrate<br />
the advantage of optimum flank adhesion, combined<br />
with the perfect <strong>balance</strong> between hardness and flexibility,<br />
so that even with unfavourable joint geometries<br />
and natural stone tile dimensions, no cracks can form.<br />
In parallel with these development activities, extensive<br />
tests were carried out in order to achieve the best possible<br />
classification of CG 2 WA to DIN EN 13888. The<br />
CG 2 WA classification stands for the fulfilment of the<br />
highest possible strength requirement, the lowest possible<br />
water absorption (W) and the highest abrasion<br />
resistance class (A) in this product group. The further<br />
activities of the dry mortar specialists focused on the<br />
completion of the natural stone range, and the objective<br />
of providing a quick-hardening, white, cement-based<br />
special medium-bed mortar ready for market launch in<br />
2011. With the product codex Stone SX 60 MB, whose<br />
development was largely completed in <strong>2010</strong>, sensitive<br />
natural stone coverings can now be laid reliably and without<br />
discoloration. This product also stands out for its<br />
accelerated setting, which holds the water in the mortar<br />
by means of fast crystal formation, without giving it off<br />
to the natural stone. Thanks to the use of special white<br />
cements, the product can also be used for light, translucent<br />
natural stones. As one of the few laying material<br />
manufacturers for tiles and natural stone, codex recognised<br />
the trend towards very low-emission and therefore<br />
healthy living products at an early stage, and formulated<br />
the new codex product line “ecoTec”, which also includes<br />
the newly developed products of codex Brillant cristal<br />
and codex Stone SX 60 MB. These comply with the best<br />
possible emission requirement class Emicode EC 1 R Plus.<br />
b) Reduced-dust dry mortar products<br />
The specialist department of Dry Mortar Development<br />
has succeeded in comprehensively assessing the structural<br />
and effect principle of suitable fluid dust-removal<br />
additives. The high-quality results obtained from this<br />
work were used for the development of a reduced-dust,<br />
self-levelling cement levelling compound prototype for<br />
the market segment UZIN, and for the development of<br />
the reduced-dust thin-bed mortar codex Power CX 5.<br />
The product codex Power CX 5 demonstrates particu-<br />
larly favourable application properties in comparison to<br />
normal reduced-dust products on the market. Particular<br />
properties which should be mentioned include the outstanding<br />
non-slip characteristics, even when using large-format<br />
tiles, smooth working without standing time<br />
and the particularly long open time. Work safety is also<br />
greatly improved with regard to dust reduction by means<br />
of the special formulation used. Due to the new, innovative<br />
and advanced formulation, with up to 90% less<br />
dust reduction during mixing, codex Power CX 5 is one<br />
of the absolute top products amongst low-dust, thinbed<br />
mortars on the market.<br />
c) Low-slump levelling compounds<br />
With the market launch of the new Level Plus Effect generation<br />
in 2008, <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong> set new standards in the<br />
area of “self-levelling compounds”, impressively demonstrating<br />
its position as the technology leader. The last gap<br />
in the levelling compound sector is now being closed with<br />
the optimisation of the low-slump, cement-based levelling<br />
compound UZIN NC 182. Although the existing product<br />
was voted one of the most popular “low-slump levelling<br />
compounds” in the survey, the specialist department of<br />
Dry Mortar Development has improved the formulation<br />
even further. True to the motto “making the best lowslump<br />
levelling compound even better”, the powder specialists<br />
succeeded in providing the new product with accelerated<br />
hardening, both at low application temperatures<br />
and high layer thicknesses. At the same time, the formulation<br />
was also change slightly in order to improve the<br />
modelling capability and the surface finish. The requirements<br />
have also been created to enable us to advertise<br />
in future with the most prestigious eco-labels, and the<br />
best known in Germany, such as the Blue Angel and Emicode<br />
EC 1 R Plus. The new product also guarantees a better<br />
composite adhesion of the adhesive on the compound<br />
layer in the case of direct upper covering application. Two<br />
new low-slump, cement-based levelling compounds were<br />
also developed for the Scandinavian market. UZIN NC<br />
181 and UZIN NC 184 can be applied to various substrates<br />
without priming, and are ready for laying after only<br />
one hour. Both new products meet the highest emission<br />
requirements of Emicode EC 1 R Plus and their application<br />
consistency can be varied by individual water dosing.<br />
d) Support of the locations in Soissons and Legnica<br />
A further focus of activities at the headquarters in <strong>2010</strong><br />
60
was the “transfer” of the new levelling compound technology<br />
“with Level Plus Effect”, already marketed with<br />
great success in Germany, to our foreign dry mortar<br />
works. In this case the objective was to adapt the product<br />
formulations and production processes of UZIN NC<br />
175 Neu and UZIN NC 170 LevelStar to the local raw material<br />
circumstances of the location in Soissons, in order<br />
to fulfil essential requirements for the risk management<br />
and any potential loss of production in Ulm. The cementbased<br />
levelling compound UZIN NC 395 was also re-formulated<br />
with raw materials locally available in France,<br />
adapted to local requirements and therefore prepared<br />
for the French market launch under the name UZIN NC<br />
495. Further extensive development support was also<br />
carried out for the works in Legnica, to be able to provide<br />
a new self-levelling compound UZIN NC 146 adapted<br />
to the local eastern European market requirements.<br />
The thin screed UZIN NC 195 S was also improved with<br />
regard to the coverage and surface smoothness and prepared<br />
for its market launch in Poland and Scandinavia.<br />
e) UZIN TurboLight-System®<br />
In close cooperation with Application Technology, we succeeded<br />
in bringing the new UZIN TurboLight-System® to<br />
the point of market readiness with some unique advantages.<br />
The advantages are clear to see: the times until<br />
laying readiness of the system, which is also heat-insulating,<br />
have been reduced by about half in comparison<br />
to dry screeds. With this system, the supporting substrate<br />
is subjected to only one third of the load of conventional<br />
screeds. Areas of unevenness from 8 mm to<br />
30 cm can also be levelled off seamlessly with this system.<br />
Last but not least, the composite can also be used<br />
without restriction in damp areas. This innovation, for<br />
which a patent has been applied, is a system of laying<br />
materials perfectly matched to each other, and is ideally<br />
suitable as a problem-solver for construction sites with<br />
tight deadlines and large areas of unevenness in the renovation<br />
area. Textile and elastic floor coverings, parquet<br />
and tiles can all be laid on this fast-hardening system<br />
using the usual methods. System consists of the fast<br />
light smoothing mortar UZIN NC 194 Turbo, the renovation<br />
fleece UZIN RR 201 and the composite levelling<br />
compound UZIN NC 195 Neu. The light smoothing mortar<br />
UZIN NC 194 Turbo hardens largely without shrinkage,<br />
and is one of the key components of the system,<br />
consisting of special fast cement bonding agents and<br />
light additives. The re-formulation of the composite levelling<br />
compound UZIN NC 195 was also completed in<br />
the course of preparation and testing of this new system.<br />
2. Fluid product developments<br />
a) Solvent-free dispersion contact adhesive<br />
The project “Solvent-free, very low-emission dispersion<br />
contact adhesive” was developed under the direction of<br />
the R&D specialist department of <strong>Uzin</strong> Tyro <strong>AG</strong>, and the<br />
resulting product successfully tested in close cooperation<br />
with the Central Laboratory in Ulm, in order to prepare<br />
it for market launch in 2011. After several <strong>year</strong>s of<br />
development work, we can now supply for the first time,<br />
and on the 100-<strong>year</strong> Jubilee of <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong>, a solventfree<br />
neoprene contact adhesive on an aqueous dispersion<br />
basis, which covers the complete application range<br />
of products with a high solvent content and high initial<br />
strength, which were previously considered to be indispensable<br />
for this purpose. With UZIN WK 222 we have<br />
succeeded in developing an outstanding new product,<br />
with which skirting rails, profiles and floor coverings can<br />
be fitted to stairs, walls and ceilings in future without any<br />
risk to health, without the floor layer having to change<br />
the method of application. Since the complete, group-wide<br />
discontinuation of solvent use has been defined as an<br />
important objective for the coming <strong>year</strong>s, this innovation<br />
represents a further milestone in ecological building.<br />
b) Laying materials for the fixing of floor coverings<br />
PVC design coverings are a trend with market potential,<br />
are enjoying increasing popularity and are ideally suitable<br />
for shops, hotels and residential areas. For this application,<br />
the R&D Fluid Products specialist department<br />
has developed the new product system UZIN U 3000 for<br />
a very special method of ergonomic laying of dimensionally<br />
stable PVC design coverings. The ready-to-use dispersion<br />
system, consisting of the fast fixative UZIN U<br />
3000 RollFix and the matching UZIN U 3000 Primer, is<br />
in its application range an outstanding addition to the<br />
already existing alternative product recommendations<br />
UZIN KE 66 and UZIN Sigan 2, particularly for smaller<br />
areas. The new technology used is ideally suitable for<br />
simple applications, and enables particularly convenient<br />
working in the standing position. It also allows seamless<br />
laying, and if necessary also the simple replacement of<br />
individual floor covering elements. A further plus point<br />
of the new system is that laid areas are immediately set<br />
61
for foot traffic and loading. Thanks to the low application<br />
quantity, the impression characteristics are reduced to a<br />
minimum. The newly developed adhesion fixative for design<br />
coverings differs from existing competitor products<br />
due to the significantly better application properties and<br />
a longer open time. The development specialists have<br />
also formulated a new universal fixative tailor-made for<br />
the local requirements in the eastern European market.<br />
The newly developed product UZIN U 500 has been designed<br />
as a special fixative for this market, and has the<br />
decisive advantage over local competitor products that<br />
PVC and CV floor coverings in residential applications<br />
can be laid easily and cost-effectively by rolling the fixative<br />
onto different substrates, with correspondingly<br />
low material consumption.<br />
c) Products for special applications<br />
The polyurethane levelling compound UZIN KR 410 has<br />
been upgraded to very low emission levels by extensive<br />
re-formulation work, and now complies with the best<br />
Emicode class EC 1 R Plus. The optimised product has<br />
also been given better coverage, the trowel application<br />
has been made easier and the surface finish looks much<br />
more homogenous. A new fibre-conductive dispersion<br />
adhesive has also been developed for industrial applications.<br />
UZIN IN 19458, an adhesive for PVC, rubber and<br />
textile floor coverings, is outstanding particularly for<br />
its high initial conductivity and its excellent adhesion,<br />
particularly in combination with floor coverings with a<br />
high softener content on double floor panels with metallic<br />
and mineral substrates.<br />
d) Parquet laying materials<br />
As announced, <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong> discontinued the sale of solvent-based<br />
parquet adhesives for the German market at<br />
the beginning of 2011. Not only for this reason was it that<br />
the focus remained heavily on the parquet area again in<br />
<strong>2010</strong>. A whole range of ground-breaking new laying materials<br />
were developed. The first of these that should be<br />
mentioned is the group of moisture-hardening 1-K parquet<br />
adhesives which are both solvent-free and waterfree,<br />
and on the basis of information recently published<br />
by the “Berufsgenossenschaft Bau” (“Building Trades Association”)<br />
can now be officially classified as substitute<br />
materials for solvent-based parquet adhesives. <strong>Uzin</strong><br />
<strong>Utz</strong> <strong>AG</strong> has for <strong>year</strong>s produced parquet adhesives whose<br />
serration hardness is unique in the market. UZIN MK<br />
95, an innovation in polyurethane adhesive technology,<br />
was unmatched for a long time, and was also not surpassed<br />
by the silane-terminated adhesive UZIN MK 100,<br />
since adhesives with silane adhesive technology usually<br />
demonstrate a lower performance range in this respect.<br />
They could however compensate for minor disadvantages<br />
of polyurethane technology, such as perhaps the more<br />
difficult and complex application. Intensive efforts were<br />
therefore devoted to combining the best properties of<br />
both adhesive technologies. The adhesives experts solved<br />
this problem in an impressive way with the development<br />
in <strong>2010</strong> of a new silane-terminated polyurethane<br />
adhesive. A new era in parquet flooring has begun with<br />
the new product UZIN MK 200. It combines the longproven<br />
polyurethane technology with the technical work<br />
safety advantages of silane technology. Through the use<br />
of a new hybrid bonding agent technology, the R&D Fluid<br />
Products specialist department has solved the problem<br />
of how to bring the strengths of two technologies<br />
down to an outstanding common denominator using a<br />
modular design principle. The result is the first 1-K silane-terminated<br />
adhesive with a hard-elastic and simultaneously<br />
fast-setting adhesive serration. Its relatively<br />
high serration hardness is almost equivalent to that of<br />
1-K polyurethane adhesives, although the product still<br />
has excellent spreading properties. The moisture-hardening<br />
1-K silane-terminated adhesive is characterised by<br />
the following plus points of the completely new standard:<br />
Firstly, the hard-elastic adhesive serration with very<br />
high shear strength and very good spreading properties,<br />
and secondly the extremely fast drying properties with<br />
simultaneously long open time. The parquet layer thus<br />
receives a product which is extremely easy to apply and<br />
lay, which greatly restricts wood deformation and joint<br />
formation, and allows him to sand the surface after only<br />
12 hours. This solvent- and water-free adhesive is approved<br />
for all parquet types and formats. Following successful<br />
emission testing, the new product has been classified<br />
in the best Emicode class EC 1 R Plus.<br />
» In addition to this work, the development of a special<br />
product for the export market was successfully completed,<br />
and the solvent-free dispersion parquet adhesive<br />
UZIN MK 61 prepared for its forthcoming market launch<br />
in 2011. In the reporting <strong>year</strong>, the important tasks of the<br />
R&D Fluid Products specialist department included not<br />
only the development of new products, but also the qualitative<br />
further development of existing products. The<br />
62
most recent example of such an optimisation in <strong>2010</strong><br />
was the final formulation of the low-water and very lowemission<br />
dispersion parquet adhesive UZIN MK 80 S Neu.<br />
The spreading characteristics and also the filming speed<br />
have both been significantly improved. The new development<br />
now offers a significant advantage over comparable<br />
products on the market with regard to wood deformation<br />
when laying 2-layer parquet. The new product<br />
contains less water, and as a system component has<br />
been specially matched to the dispersion parquet primer<br />
UZIN PE 380 Neu. In the course of this work, the<br />
corresponding dispersion primer UZIN PE 380 was also<br />
optimised, in order to simultaneously improve the performance<br />
of the basic parquet system. Since its further<br />
development, the new primer for absorbent substrates,<br />
on which the parquet can be laid direct with dispersion<br />
parquet adhesives, complies with the requirements of<br />
the most demanding and best-known emission labels in<br />
Germany – the “Blue Angel” and “Emicode EC 1 Plus”.<br />
The optimised system “UZIN PE 380 - UZIN MK 80 S”<br />
therefore represents an important alternative for use in<br />
buildings in which technical functionality and the strictest<br />
ecological criteria are of the utmost importance.<br />
3. General building approval for parquet adhesives<br />
Due to changed stipulations in the Construction Regulations<br />
List B Part 1, an “allgemeine bauaufsichtliche Zulassungspflicht”<br />
(abZ) (“general building approval obligation”)<br />
applies since 1st January 2011 for parquet adhesives<br />
which are intended for use in regularly used rooms. This<br />
means that only parquet adhesives which have been approved<br />
by the Deutsches Instituts für Bautechnik (DIBT)<br />
(“German Institute of Building Technology”), and are designated<br />
by the monitoring symbol (Ü) may be used in<br />
such areas. Infringement of this requirement constitutes<br />
an offence, and can lead to the customer rejecting<br />
acceptance of the service. The initiation of this regulation<br />
is subject to the EU Building Products Directive and<br />
the main requirement contained in it regarding “Hygiene,<br />
health, environmental protection”, the purpose of<br />
which is to protect users of buildings against emissions<br />
(VOCs) from building products. However, since VOC requirements<br />
are not yet regulated at the EU level, it has<br />
only been possible to specify “national” emission limit<br />
values. For this reason, the DIBT requires an emission<br />
restriction in regularly used rooms for all parquet adhesives,<br />
which is based on a special test schedule of the<br />
“Ausschuss zur gesundheitlichen Bewertung von Bauprodukten”<br />
(AgBB) (“Committee for the Health Assessment<br />
of Building Products”) already existing in Germany,<br />
and following successful testing issues an approval,<br />
which is valid for five <strong>year</strong>s. The specialist departments<br />
of Chemical Analysis, Product Safety and Fluid Product<br />
Development have subjected all parquet adhesives of the<br />
product range to the AgBB test procedure and qualified<br />
them for the abZ certification. This provided the requirement<br />
for the Ü-designation for the parquet adhesives<br />
UZIN MK 80 S Neu, UZIN MK 92 S, UZIN MK 92 S dark,<br />
UZIN MK 100 and UZIN MK 200 and a large number<br />
of own-brand products, and the necessary works production<br />
controls were also installed. Extensive preparations<br />
were also made during the reporting <strong>year</strong> in order<br />
to comply promptly with the next approval obligation<br />
for the product group “floor covering adhesives”, which<br />
will in future be subject to these regulations and is due<br />
to come into effect on 1st January 2012.<br />
4. Ecology and other product safety topics<br />
a) Sustainability<br />
For <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong>, sustainability is more than just a marketing<br />
trend. Sustainability is a fundamental requirement<br />
on building works and building products, and will<br />
therefore become a key success factor for the construction<br />
industry over the coming <strong>year</strong>s. Our uniform<br />
long-term thinking shows that sustainability at UZIN<br />
<strong>Utz</strong> <strong>AG</strong> is not just a convenient label, but is regarded as<br />
a sign of great commercial responsibility. Sustainability<br />
is therefore not regarded as being one-dimensional, but<br />
also takes into account ecological, economic and social<br />
considerations. Now that the interdisciplinary project<br />
“Sustainability” has been in hand for several <strong>year</strong>s with<br />
very great success by the specialist department Product<br />
Safety, together with the company management,<br />
<strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong> succeeded in <strong>2010</strong>, as the first company in<br />
the field of laying materials, in producing environmental<br />
product declarations, so-called EPDs, for a complete<br />
system, and having them assessed externally by the<br />
“Sachverständigenausschuss des Instituts für Bauen und<br />
Umwelt” (“Expert Committee of the Institute for Construction<br />
and the Environment”). EPDs are the most suitable<br />
instrument for providing valuable and trustworthy<br />
ecological product data for architects and planners.<br />
So far there are no EPDs from any market participants<br />
in the sector, neither for corresponding products nor for<br />
63
a complete laying materials system for flooring construction.<br />
Here <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong>, as the leader in the sector,<br />
has produced EPDs for the complete system structure<br />
in the reporting <strong>year</strong>, and has had them validated. This<br />
consists of the dispersion primer UZIN PE 60 and the<br />
mineral levelling compound UZIN NC 170 LevelStar for<br />
the substrate preparation and the dispersion products<br />
UZIN KE 66 or UZIN UZ 88 for the laying of the relevant<br />
floor coverings. For the first time, complete calculations<br />
are now possible, which can be included in the building’s<br />
eco-<strong>balance</strong>. <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong> shows by this example that<br />
ecological responsibility and product innovation are by<br />
no means mutually contradictory. Internal key ecological<br />
figures have also been established for the first time,<br />
which also document a quantitative confirmation of the<br />
sustainability initiative. 76.2% of the company’s sales in<br />
<strong>2010</strong> were generated with products which comply with<br />
the strictest ecological emission requirements, such as<br />
those of the Blue Angel and the Emicode. <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong><br />
therefore stands out not only for its technical expertise<br />
on all aspects of flooring, but is also setting new standards<br />
in the sector, which also take into account quantitative<br />
ecological aspects. Here the company has been<br />
the first to put sustainability activities on a confirmable<br />
and verifiable foundation.<br />
b) New Emicode “EC 1 Plus”<br />
For many <strong>year</strong>s now, <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong> has placed the focus of<br />
its activities on the development of products which are<br />
“safe” for the environment, the floor layer and the endconsumer.<br />
With the assistance of the R&D specialists of<br />
<strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong>, the “Gemeinschaft Emissionskontrollierte<br />
Verlegewerkstoffe, Klebstoffe und Bauprodukte” (GEV)<br />
(“Association for emission-controlled laying materials,<br />
adhesives and building products”) has revised the Emicode<br />
classification for building products. Amongst other<br />
things, they have developed a new premium class “EC 1<br />
Plus”, which even exceeds the demanding requirements<br />
of the previous highest category “EC 1 – very low-emission”.<br />
The “new” EC 1 Plus limit values are therefore stricter<br />
than the limit values required for Blue Angel certification.<br />
The “new” Emicode has one decisive advantage<br />
in comparison to the old system: Due to the modified<br />
emission testing procedure, t is now possible for the first<br />
time to make direct comparisons of the test results to<br />
the Blue Angel, the AgBB system and the Emicode. Only<br />
one emission test will therefore be required in future in<br />
order to obtain certificates of different emission seals.<br />
With an eye to future European regulations, such as the<br />
revision of the EC Building Products Directive and the<br />
building approval obligation for parquet adhesives from<br />
1st January 2011 and for floor covering adhesives from<br />
1st January 2012, the specialist departments of Chemical<br />
Analysis, Product Safety and Fluid Product Development,<br />
in a comprehensive test procedure, have subjected<br />
the existing ecological product range to the new certification<br />
system and adapted it to the “new” Emicode requirements.<br />
Despite this high hurdle, a major proportion<br />
of the products previously designated as EC 1 will in future<br />
comply with the stricter criteria of the “new” label<br />
EC 1 Plus, since this ecological product area always had<br />
to meet a high internal quality standard at <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong>.<br />
About 75% of the previous EC 1 products have now been<br />
qualified for the new exclusive class EC 1 Plus.<br />
c) REACH<br />
From 1st December <strong>2010</strong>, under the REACH requirements,<br />
there exists a notification obligation in the CLP directory<br />
(Classification, Labelling and Packaging) of the European<br />
Chemical Agency ECHA for importers of raw materials<br />
from non-EU countries. As an importer of non-EU raw<br />
materials, <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong> is therefore always subject to this<br />
notification obligation, firstly if products are imported<br />
which contain hazardous substances requiring a particular<br />
designation of the product, and secondly if products<br />
are imported which are not subject to designation, and<br />
contain substances which are not dangerous but subject<br />
to registration, and which exceed the reference limit of<br />
one tonne per <strong>year</strong>. In order to comply with these obligations,<br />
which are coupled to the REACH requirements,<br />
substantial capacity in the specialist department Product<br />
Safety was applied in the reporting <strong>year</strong> <strong>2010</strong> to<br />
make the necessary contribution to the intended comprehensive<br />
European database for the classification and<br />
designation of the substances described above.<br />
5. Quality assurance system<br />
within the <strong>Uzin</strong> <strong>Utz</strong> Group<br />
The general objective of quality assurance management<br />
and the internal control system is to ensure the quality<br />
of UZIN products, which is acknowledged worldwide.<br />
The specialist departments of Quality Management<br />
and International R&D started a comprehensive project<br />
in <strong>2010</strong>, in order to ensure that certain product groups<br />
64
which are produced at different locations within the<br />
<strong>Uzin</strong> <strong>Utz</strong> Group, can be produced worldwide according<br />
to the same standards. We will therefore be able in future<br />
to produce identical product qualities in all works.<br />
At the same time, this will also create the requirements<br />
to achieve delivery reliability of products in emergency<br />
management scenarios by means of a redundant system.<br />
In the event of a production stoppage at one works, delivery<br />
reliability could then be maintained by an alternative<br />
production location. The fundamental component<br />
of this project is the harmonisation of testing methods<br />
and product specifications in all corresponding works of<br />
the <strong>Uzin</strong> <strong>Utz</strong> Group. In the first step, the central department<br />
of Quality Management has made various regular<br />
target and method agreements with the responsible local<br />
quality assurance personnel of the subsidiary companies.<br />
Testing methods, specifications and quality assurance<br />
procedures have been further standardised, and the<br />
conclusiveness of modern testing procedures investigated.<br />
The main results of these quality assurance measures will<br />
now be systematically recorded and centrally evaluated.<br />
» In addition to the products and activities of the <strong>year</strong><br />
<strong>2010</strong> described here, and in order to maintain our innovation<br />
lead, numerous other product optimisations were<br />
implemented, and other work carried out which will not<br />
be described separately at this point.<br />
UZIN switchTec<br />
Changed user behaviour and requirements for<br />
healthy living<br />
In Europe and the western European foreign markets of<br />
<strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong>, a change has occurred in recent <strong>year</strong>s in<br />
demand behaviour in the construction and renovation of<br />
residential and commercial properties. In the case of renovation<br />
in particular, users are increasingly less prepared<br />
to accept the stoppage times and hindrances usually associated<br />
with such work. They now demand fast and flexible<br />
solutions, which are also reversible with little effort.<br />
» Investors and end-consumers are also becoming more<br />
sensitive to internal room hygiene and living quality, and<br />
therefore the need to use products which wherever possible<br />
do not give off substances into the room air, and<br />
that these emissions do not pose any health risk.<br />
» The switchTec dry adhesive technology has, since the<br />
beginning of its development in the 1960’s, been a synonym<br />
for fast, clean and flexible renovation with very<br />
low emissions.<br />
EMICODE<br />
In order to emphasise our pioneering role for a healthy<br />
room climate, we have modified our area products <strong>Uzin</strong><br />
Sigaway, <strong>Uzin</strong> Supertape7900, <strong>Uzin</strong> Sigan1, <strong>Uzin</strong> Sigan2<br />
and <strong>Uzin</strong> Sigan3 according to the latest GEV classification<br />
criteria for the EMICODE. At the beginning of the<br />
<strong>Uzin</strong> Jubilee <strong>year</strong> 2011, all these area products now fulfil<br />
the criteria for the highest class EMICODE EC1PLUS:<br />
“very low-emissionPLUS”.<br />
Blue Angel<br />
The products <strong>Uzin</strong> Sigan1, <strong>Uzin</strong> Sigan2 and <strong>Uzin</strong> Sigan3,<br />
together with the corresponding edge tapes Sigan1Tape,<br />
Sigan2Tape and Sigan3Tape, have been re-formulated to<br />
comply with the material criteria for the quality seal of<br />
the “Blue Angel”, which is well known by end-customers.<br />
» The products have also been made significantly more<br />
robust against conditions occurring during normal use<br />
(e.g. moisture penetration due to cleaning etc.). All Sigan<br />
products are easy to apply, are guaranteed to be able to<br />
be applied bubble-free and can be easily repositioned if<br />
required. Adhesion forces adapted to the relevant application<br />
purpose guarantee reliable use and residue-free<br />
removal even after <strong>year</strong>s of intensive use, something<br />
which is unique in this product quality.<br />
<strong>Uzin</strong> Planus<br />
In order to offer complete systems, the dispersion primer<br />
Planus has also been re-formulated in accordance with<br />
the requirements for the Blue Angel, and upgraded to a<br />
modern raw material basis. Here we have succeeded in<br />
developing a very low-emission, film-forming special primer,<br />
based on aqueous dispersion polymers, which also<br />
has improved application characteristics. Following the<br />
philosophy of the switchTec product line, the new Planus<br />
also demonstrates excellent resistance to the usual<br />
effects of such things as moisture and softeners. The<br />
new formulation can also be sanded, and can therefore<br />
could easily be re-worked if required, which further<br />
increases the flexibility and recyclability of the system.<br />
» <strong>Uzin</strong> Planus also complies with all the requirements<br />
for EMICODE EC1PLUS “very low-emissionPLUS” and the<br />
Blue Angel.<br />
» <strong>Uzin</strong> is therefore the first supplier of a complete system<br />
consisting of a dry adhesive (Sigan 1) in conjunction<br />
with a primer (Planus) with the combined designation<br />
“very low-emissionPLUS” and “Blue Angel”.<br />
65
WOLFF brand<br />
The <strong>year</strong> <strong>2010</strong> also saw the completion of the development<br />
of the Gecko Flex. This machine has been specially<br />
developed for the sanding of parquet edges, and extends<br />
the range of conventional edge-sanding machines of the<br />
Pallmann brand.<br />
» The Mambo Evo single-disk sanding machine has also<br />
been provided with new electronics with improved operation.<br />
The guide handle has also been completely redesigned<br />
and provided with fully-variable adjustment.<br />
» The Wallmaster is a new special tool in the WOLFF<br />
range. This tool is ideal for the finishing of bases and<br />
trough formation. Its special shape enables several functions<br />
required when laying PVC coverings with overlap:<br />
marking the height of skirting boards, cutting the mitres<br />
in the inner and outer corners and neat shaping and<br />
pressing into corners without the danger of piercing the<br />
covering.<br />
» The Ergo Cutter completed in <strong>2010</strong> is also a great aid<br />
for the craftsman. This is a pre-cutting device for old coverings<br />
which can be used in the standing position. In<br />
the past, such work had to be done laboriously on the<br />
hands and knees.<br />
Pallmann brand<br />
The research and development of the Pallmann brand<br />
was marked in the <strong>year</strong> <strong>2010</strong> by numerous innovative<br />
research projects and development activities important<br />
for the parquet sector.<br />
» An extract of the activities of the Development Department<br />
is given below:<br />
» Mandatory legal regulations, such as the designation<br />
obligation for systems containing >5% solvents, and<br />
the replacement of systems containing NMP comprised<br />
the main company policy activities of the R&D Department.<br />
It should also be emphasised in particular that in<br />
addition to the use of substitute raw materials, many of<br />
the PALL-X products were improved with regard to such<br />
properties as appearance, coverage and ease of application.<br />
The activities focused on the reduction of the solvent<br />
content (to 30%) and the improvement of the sanding<br />
capability.<br />
» Further research activities took place in the area of<br />
a new type of coating for parquet surfaces to be sealed<br />
on the construction site. The objective was to develop<br />
a coating which achieves its full load-bearing capability,<br />
both chemically and mechanically, immediately after<br />
application. This requirement can only be achieved<br />
with a UV sealant.<br />
» The research activities took place in the areas of priming<br />
(Flash-Light Base) and topcoats systems (Flash-<br />
Light-Coat), which were developed to the point of marketability.<br />
As a 100%-system, the primer offers optimum<br />
preparation of the floor. Because no drying of the system<br />
by means of emissions has to take place (solvent-free),<br />
the hardening can begin directly after application. The<br />
topcoat system is water-based and solvent-free – here<br />
too, hardening can take place after only a short drying<br />
time. The mobile hardening unit (Flash-Light-Mobile) was<br />
optimised in close cooperation with the WOLFF brand<br />
of <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong>.<br />
» Further research activities were carried out in conjunction<br />
with the shareholding company Unipro. The solvent-free<br />
2-K coating Qeshfloor 7750, which is applied<br />
to different PU and epoxy substrates, was developed for<br />
the Qeshfloor brand. The application of this protective<br />
film provides very good resistance against chemical and<br />
mechanical stress.<br />
» A country-specific range of coatings was developed<br />
in order to open up the French market. The concept includes<br />
primers and topcoat systems which are both water-<br />
and solvent-based.<br />
Jordan Lacke brand<br />
The research and development of the Jordan Lacke brand<br />
in the <strong>year</strong> <strong>2010</strong> was characterised by many innovative<br />
research projects and development activities important<br />
for the furniture sector.<br />
» An extract of the activities of the Development Department<br />
is given below:<br />
» The focus of the research activities lay on the reduction<br />
of the solvent contents. This resulted in the development<br />
of the system 2K Decolux 672 amongst others.<br />
This is a solvent-based 2K layer coating, which in addition<br />
to the low solvent content also complies with the requirements<br />
of the Decopaint guideline. 2K Decolux 672<br />
is a transparent, high-fill, light-fast coating for interior<br />
application.<br />
» A further Decopaint-compliant product is 2K Deco-<br />
Soft-Touch 692. This system is transparent, with a dull<br />
matt appearance and a pleasantly soft, “rubbery” feel.<br />
Such soft-touch surface finishes are very common in automotive<br />
interior design, although there are hardly any<br />
comparable products for wood surfaces.<br />
66
» One special product in this line is the newly developed<br />
2K Classic Glow Effect. This system continues to<br />
glow for a certain time in the dark, and is therefore ideal<br />
for use in public areas, for example where escape routes<br />
need to be indicated in the dark following a power failure.<br />
Arturo brand<br />
The synthetic resin is developed and produced by Unipro<br />
B.V., a company of the <strong>Uzin</strong> <strong>Utz</strong> Group, in Haaksbergen<br />
(NL). Unipro is the knowledge centre for fluid floor coatings<br />
produced using synthetic resin.<br />
» A completely new synthetic resin flooring concept<br />
was to be launched onto the market at the 2011 BAU<br />
exhibition in Munich under the new Arturo brand. The<br />
projects relating to this new concept were therefore at<br />
the top of the priority list for R&D in <strong>2010</strong>. The aim of<br />
this concept is to merge the product and design into a<br />
unique end result. Unipro aims to develop into a specialist<br />
not only for functional flooring, but above all for design<br />
flooring. The floor represents an important functional<br />
foundation of any room. The functionality is certainly<br />
not determined only by practical aspects. The floor also<br />
influences the atmosphere and the mood of a room in<br />
which one lives and works.<br />
» In addition to the already existing coverage coatings<br />
of polyurethane and epoxy, a completely new, non-yellowing<br />
polyurethane flooring was developed on the basis<br />
of a technology which is completely new to Unipro:<br />
the PU 2030. This was carried out using raw materials<br />
which were completely new to us until recently, and<br />
which have quite individual characteristics. This flooring<br />
will be introduced and available in all colours by the end<br />
of the <strong>year</strong>.<br />
» In cooperation with JP Coatings in Würzburg, a matt,<br />
transparent “top sealant” was developed, which is the<br />
first coating on the market to be completely solvent-free<br />
and offers unique colour reproduction. This product was<br />
launched in the second half-<strong>year</strong> <strong>2010</strong>.<br />
material purchasing. Positive effects have already been<br />
achieved in many areas by the improved products, such<br />
as with the RZ Elastic Wipe-Care, which since September<br />
has had an optimised pH-level.<br />
» The past research and development <strong>year</strong> concentrated<br />
particularly on the further extension of the overall<br />
RZ Turbo Protect concept. RZ Turbo Protect is a unique,<br />
solvent-free 2K sealing coating for extremely long-term<br />
protection of elastic floor coverings. It stands out clearly<br />
from all alternatives currently on the market. The product<br />
only has to be applied once, and the floor is then<br />
protected against even the highest stresses. There are<br />
also further product advantages in the area of environment<br />
and health: the coating is water-based, solventfree<br />
and has a neutral odour. This top product has now<br />
been presented to all well-known floor-covering manufacturers,<br />
tested and officially recommended. The combined<br />
expertise of the <strong>Uzin</strong> <strong>Utz</strong> brands of Pallmann and<br />
RZ, and the flooring expertise of the UZIN brand have<br />
all gone in to the development of this product.<br />
» RZ Chemie was also commissioned with the development<br />
of new products supporting the overall “Turbo<br />
Protect” concept. A special PU Wipe-Care, a neutral<br />
Turbo fast basic cleaner and a surface renovation product<br />
have all been developed around the sealing coating,<br />
successfully rounding off the range. An odourless,<br />
aqueous basic cleaner was also developed on the basis<br />
of the existing formulation of the RZ basic cleaner. The<br />
advantages of the formulation include its rapid action<br />
and the technical characteristic of being able to remove<br />
particularly old, metal-crosslinked care film layers more<br />
effectively.<br />
RZ brand<br />
In the third <strong>year</strong> of its membership of the <strong>Uzin</strong> <strong>Utz</strong> Group,<br />
the incorporation of the RZ laboratory into the network<br />
of the Group was almost completed. The focus in <strong>2010</strong><br />
lay in particular on the further optimisation of formulations.<br />
The rationalised range was further improved,<br />
including the areas of raw material selection and raw<br />
67
Existing branches<br />
The shareholding struck chart and the locations of the<br />
shareholding companies in the group can be taken from<br />
the section “Shareholdings” in the Appendix.<br />
» In addition to the Ulm location, the company has a<br />
further production location in Vaihingen/Enz, which is<br />
devoted exclusively to the production of the machines<br />
of the WOLFF brand.<br />
» The company also operates a representative office in<br />
Minsk, Belarus.<br />
» <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong> also operates three service centres throughout<br />
Germany. These are training and communications<br />
centres for craftsmen, the trade and project managers<br />
at the strategically important locations of Dresden, Meckenheim<br />
and Munich.<br />
» The French shareholding company based in Soissons<br />
also maintains a sales office in Paris.<br />
Special features of the Group situation report<br />
» All companies not included in the Group financial<br />
statements are of only minor importance for the Group<br />
financial statements.<br />
Ulm, 18th March 2011<br />
The Board<br />
68
Visit us at:<br />
www.uzin-utz.de<br />
Investor Relations Internet Service<br />
<strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong> financial report for the <strong>year</strong> <strong>2010</strong> is available<br />
as PDF-file for download.<br />
Please visit www.uzin-utz.com, category »Investor Relations«.<br />
Imprint<br />
Published by<br />
<strong>Uzin</strong> <strong>Utz</strong> Aktiengesellschaft<br />
D-89079 Ulm<br />
Investor Relations<br />
Produced by<br />
<strong>Uzin</strong> <strong>Utz</strong> Aktiengesellschaft<br />
Siegfried Galter, Ulm<br />
büro ballweg, ulm<br />
Designed by<br />
büro ballweg, ulm<br />
BHP design ballweg & hupe partner, München<br />
Photography<br />
Sven Erik Klein, Saarbrücken<br />
Photography (Portraits)<br />
Sven Erik Klein, Saarbrücken<br />
Rebecca Rayher, Wendlingen<br />
Text<br />
<strong>Uzin</strong> <strong>Utz</strong> Aktiengesellschaft<br />
Siegfried Galter, Ulm<br />
Printed by<br />
mediaGroup le Roux, Erbach
<strong>2010</strong><br />
Dieselstrasse 3<br />
D-89079 Ulm<br />
Phone +49 (0)731 4097-0<br />
Fax +49 (0)731 4097-110<br />
www.uzin-utz.de<br />
A very special <strong>year</strong> for <strong>Uzin</strong> <strong>Utz</strong> <strong>AG</strong><br />
also warrants a special business<br />
report. We have therefore decided to<br />
tread new paths in graphic design –<br />
beginning with this business report:<br />
every <strong>year</strong> we will commission<br />
a recognised photographic artist<br />
with the visualisation, so that every<br />
individual business report has its own<br />
unique, aesthetic concept.<br />
The first of these is Sven Erik Klein.<br />
His selection of the motifs reflects the<br />
values of our company. Much of the<br />
photography took place here in the<br />
region, because global presence does<br />
not exclude keeping both feet firmly<br />
on the ground in the local region.<br />
Born in 1974 in Illertissen near Ulm,<br />
Sven Erik Klein, is a graduate of the<br />
Karlsruhe Design College, and has<br />
studied under such well-known<br />
artists as Candida Höfer, Günter<br />
Förg and Marie-Jo Lafontaine. He<br />
operates a studio in Saarbrücken.<br />
In addition to solo exhibitions such<br />
as in the “Stadthaus” in Ulm, the<br />
Goethe Institute in Nancy or the<br />
Saarland Gallery in the “Palais im<br />
Festungsgraben” in Berlin, Klein has<br />
also participated in group exhibitions<br />
in the “Literaturhaus” in Munich and<br />
in the Ulm Museum. His photographic<br />
works are represented in many public<br />
and private collections.<br />
Cover picture:<br />
Brenz spring in Königsbronn