STEICO : Annual Report 2022

STEICO SE

2022 annual report

The green share

2022

Returning to normal in a more demanding environment

Natural building products for healthier living

Overview

Returning to normal in a more demanding environment

2022 Revenue growth in € millions

500	+14.7%	445.2

1. 388.2

€m
2021						2022
2022 EBITDA growth in € millions
125
100
		91.3				90.0
			-1.4%
75
50
25
€m
		2021						2022
2022 EBT growth in € millions
75
		66.7		-4.5%			63.7
60

45

30

15

€m

2021

2022

2022 Gross Earnings growth in € millions

250										202.0
					+4.7%
200			193.0
150
100
50
€m
2021						2022
2022 EBIT growth in € millions
75
			67.6
						-3.6%		65.2
60

45

30

15

€m

2021

2022

2022 Profit for the Period growth in € millions

50			48.2		-0.6%		47.9

40

30

20

10

€m

2021

2022

| ADDITIONAL KPIS

		2022	2021
1.	Total operating revenue in € millions	€ 467.4 million	€ 395.6 million
2.	EBITDA margin as a percentage of total operating revenue	19.3%	23.1%
3.	EBIT margin as a percentage of total operating revenue	13.9%	17.1%
4.	Equity ratio (as of 31 December)	53.5%	54.5%

Percentage changes and margins are calculated using non-rounded figures.

2 STEICO 2022 annual report

2022 annual report

The STEICO Group is operating in a market environment that is getting to normal after booming demand for around two years. Increasing interest rates and higher inflation made their first impact on the construction sector in 2022. At the same time, the availability of wood-fibre insulation materials improved significantly thanks to newly created production capacity. As a result, demand returned

to normal. Traders and processing companies built up above- average levels of stocks during the boom, however these stock levels successively were scaled back to normal from the second half of 2022. Requirements for additional deliveries were lower as a result.

STEICO was still able to lift its revenues by 14.7% to

• 445.2 million. EBITDA was down by 1.4% to € 90.0 million and EBIT fell by 3.6% to € 65.2 million. Net income was down by 0.6% to € 47.9 million year-on-year.

For 2023 as a whole Management believes that there will be continued strong demand as a result of the continued high order backlog at STEICO's manufacturing companies. Increasing renovation activities will also provide a positive impetus.

If the continued economic developments do not result in any negative effects, the Executive Board is forecasting revenue at the previous year's level of around € 445 million and an EBIT ratio of between 10% and 15% (to total operating revenue).

Company profile

STEICO develops, produces and markets ecological construction products made of renewable raw materials. STEICO is the global market leader for wood fibre insulation materials.

STEICO is positioned as a system provider for ecological residential construction and is the only manufacturer in the industry to offer an integrated wooden construction system in which innovative wooden construction components and ecological insulation material supplement each other.

Laminated veneer lumber and I-joists form the structural components of the system. The insulation materials include flexible and stable wood fibre insulation panels, facade insulation materials, as well as cavity wall insulation made of wood fibres and cellulose.

Disclaimer

Sealing products for the building shell complete the overall system.

The STEICO Group offers its customers a unique range of products through to the prefabrication of complete components for timber element construction.

The Munich-based company's products are used in new construction and when renovating roofs, walls, ceilings, floors and facades. STEICO's products allow the construction of future-proof, healthy buildings with a particularly high quality of living and a healthy atmosphere. STEICO's products offer reliable protection against cold, heat and also noise, and they permanently improve the building's energy efficiency.

This document is a translated version of the German original document. The translation has been prepared with utmost care. However, only the German original document is binding.

STEICO 2022 annual report

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Udo Schramek

Chairman of the Executive Board

Dear business partners,

The 2022 building report from the Deutsche Energie Agentur (dena) once again addresses the high CO2 emissions in buildings. The building sector is the largest responsible sector for CO2 emissions in Germany, accounting for approx. 40% of total annual CO2 emissions. As a result, cutting emissions in this sector plays a key role for climate protection.

As a consequence, increasing energy efficiency in building operations is the most important lever for cutting greenhouse gas emissions in the building sector - an argument which STEICO has always upheld. A well insulated and thus energy-efficient building shell is key to reducing energy requirements for heating and cooling. The best type of energy is the energy you don't need at all. Even when using sustainable heating technologies such as heat pumps, property owners benefit from higher efficiency, lower costs over the long term and increased property value if their property is well insulated.

STEICO's ecological wood-fibre insulation products can support this trend in two ways. In addition to cutting energy requirements, the wood used in our products also stores CO2 to a great extent. This wood contains around 2.5 times as much CO2 as is set free during production.

The key for success in the heating debate is in renovation. More than 80% of buildings in Germany were built before the third heat protection directive was introduced in 1995. Two thirds of these buildings require energy-related renovation work.

STEICO is excellently positioned for these challenges: We can reduce the use of grey energy thanks to our sustainable insulation materials and supporting components. As a result, we help to improve the CO2 equilibrium. Our products use timber, a natural resource, highly efficiently and spare this material at the same time. As a company, we are able to supply a high-volume market and in terms of price our products are also competitive compared to mineral-based construction products.

Our pre-fabricated construction elements allow the creation of value to be moved towards increased industrial production. This also allows craftsmen to also increase their productivity and to work more efficiently.

That is why we are facing the current economic challenges with confidence. We are convinced that it will be possible to more than compensate for the current period of weakness in new construction over the medium term thanks to the huge potential in the renovation sector. We are already setting the course for this, for example by creating additional capacity in our new plant in Gromadka (Poland).

We aim to record revenues of €750 million in 2026 - a project which we can only accomplish with a dedicated team. That is why we want to thank all of STEICO's employees for their day-to-day commitment.

Yours sincerely,

Udo Schramek

4 STEICO 2022 annual report

2022 annual report

CONTENTS

Report by the Board of Directors	6
Growth of STEICO's shares	8
Group management report of STEICO SE	9
A	Fundamentals	9
B	Economic report	12
C	Opportunity and risk report, forecast	20
Consolidated income statement	29
Consolidated balance sheet	30
Consolidated cash flow statement	32
Consolidated statement of changes
in shareholders' equity	33
Notes to the consolidated financial statements	34
I.	General information on the
	consolidated financial statements	34
II.	Information on the consolidated balance sheet	38
III. Information on the consolidated income stataement	41
IV. Information on the consolidated cash flow statement	42
V. Other disclosures	42
Independent auditor's opinion	46

STEICO 2022 annual report

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