Annual General Meeting of Uzin Utz AG

• First virtual Annual General Meeting successfully held
• Ratification of the acts of the Management Board Management Board and Supervisory Board
• Strategy PASSION 2025 defines the future direction
• Start into the first quarter of 2020 with sigificant increase in revenues and earnings
• Dividend of EUR 1,30 per share approved

UZIN UTZ, a globally active complete supplier of floor systems and the only company from Ulm listed on the stock exchange, is reporting on the company's outstanding development in the past financial year at its first virtual general meeting in Ulm. Sales in the 2019 financial year increased by 7.7 percent to 372.4 million euros. Earnings before interest and taxes amounted to 30.2 million euros. The economic consequences of the Corona crisis for profitability in 2020 will depend primarily on the duration, the effects on economic development in the countries affected and the development of the construction industry.

The UZIN UTZ Group looks back on a very successful business year 2019. "We have worked well. And we have once again proven that we can deliver," said CFO Heinz Leibundgut at the company's first virtual general meeting.

Heinz Leibundgut and his two colleagues on the Management Board, Julian and Philipp Utz, addressed the shareholders via online transmission for the first time. Originally, a personal meeting was planned in Ulm's Donauhalle: "On the one hand, we are underlining the digitalisation progress within the company - on the other hand, we are missing the direct exchange with you", Leibundgut continued. This, however, was made impossible by the Covid 19 pandemic. Especially in these extraordinary times, UZIN UTZ wants to remain a reliable partner. "When it comes to your safety and health, there can be no compromises."

2019 financial year closed with record figures

In the 2019 financial year, UZIN UTZ almost reached its revenue and earnings targets with record figures. At EUR 30.2 million, the company group delivered the best earnings before interest and taxes in its 109-year history. "In terms of turnover, we have almost reached the 'golden' 400 million euro mark with 372.4 million euros. With this very strong year 2019, we have succeeded in successfully concluding our GOLD growth strategy with a committed final spurt and great team performance", says Heinz Leibundgut.

First quarter 2020

UZIN UTZ has also had a good start to the 2020 financial year. The company closed the first quarter with a significant increase in sales and earnings. In the months from January to March 2020, consolidated sales rose by 7.3 percent to EUR 98.2 million. Earnings before interest and taxes rose from EUR 7.6 million to EUR 8.7 million. This corresponds to an increase of 15.8 percent. "Panic purchases have also made themselves felt in our industry. In the first three months, our customers filled their warehouses and prepared themselves for possible supply chain bottlenecks in the supply chain," says Heinz Leibundgut.

Pandemic measures take effect

The past few months have been challenging for the approximately 1,300 employees of the UZIN UTZ Group, said Julian Utz in his statement, member of the Board of Directors and head of the Corona emergency response team. Their safety and health are always at the top of the company's agenda: "Whether it's distance rules, the separation of shifts in production and research and development or the tandem regulations in administration: our infection protection concept has proven its worth.

I am glad that all these measures are working well and that we are currently able to maintain our ongoing production operations. In the past weeks, we have done everything in our power to meet our responsibilities," concluded Julian Utz.

PASSION 2025 - we stick with the floor

A clear commitment to floor expertise and the focus on local perspectives of the defined core, growth and aspirant markets form the framework of the new corporate strategy. Four fields of action - "Planet", "People", "Profit" and "Products and Services" - provide the overarching roadmap for the new strategy until 2025 and form a holistic sustainability approach for the Group. Board member Philipp Utz presented them in his speech. "To be successful, every strategy needs central target figures that provide orientation and against which the degree of target achievement can be measured. PASSION 2025 has turned the usual top-down process on its head. Bottom-up, the self-imposed targets from the countries and the central units were added up, compared and the resulting synergy effects added", says Philipp Utz. "This way, our global managers helped shape the central targets for our company: By the end of 2025, sales of more than 550 million euros are to be achieved across all companies and brands and profits (measured by the EBIT margin) are to account for more than eight percent of sales. We are sticking to these targets despite the Corona crisis. The economic environment will challenge us more in the coming years than in the past, but every crisis is also an opportunity. And we will seize these opportunities from a leading position," explained Philipp Utz.

Outlook

Due to the spread of the coronavirus, especially since the beginning of March 2020, the general conditions in the core and growth markets have changed significantly. Since then, every forecast has been subject to great uncertainty. The rapidly changing framework conditions and the associated temporary restrictions on personal, public and economic life are currently affecting business activities in the UK, France, Belgium and the USA. The economic consequences for the profitability of the UZIN UTZ Group will largely depend on the duration of this crisis, the impact on economic developments in the countries concerned and the development of the construction industry in general. There is currently an unpredictable component regarding the actual extent of the corona crisis and the economic implications of the various shutdown measures. In many countries, the construction industry is currently still benefiting from building permits and project launches, a large number of which have already been initiated in 2019, and a high order backlog in the craft trades.

Dividend

The Management Board and Supervisory Board of the UZIN UTZ Group have proposed to the Annual General Meeting the payment of an unchanged dividend of 1,30 euros per share entitled to dividend, in order to allow shareholders to participate in the company's success in 2019.

The UZIN UTZ Group is now active in 51 countries around the globe, with its own production and sales companies in 21 countries. In addition to Germany, the focus of its business activities is on the other core markets of the Netherlands and Switzerland, as well as the growth markets of the USA, France and the UK.

The most important voting results at a glance:

Dividend per share: 1.30 Euro

Distribution amount: 6,557,614.70 Euro

Ratification of the acts of the Management Board 99.136 %

Ratification of the acts of the Supervisory Board 98.826 %.