Semperit : Geschäftsbericht 2023

ANNUAL REPORT 2023

FACTS ABOUT SEMPERIT

GLOBAL

PLAYER

Development and production of highly specialized elastomer products and solutions that are sold

in more than 100 countries.

TWO STRONG DIVISIONS

SEMPERIT INDUSTRIAL	SEMPERIT ENGINEERED
APPLICATIONS	APPLICATIONS
Focus on industrial applications with	Focus on customized technical solutions
highly efficient production and cost	including handrails for escalators,
leadership; this includes hydraulic and	conveyor belts, cable car rings, other
industrial hoses as well as profiles.	technical elastomer products and the
	liquid silicone specialist Rico Group.

LEADING MARKET POSITION WITH STRONG BRANDS IN THE INDUSTRIAL SECTOR FOR

200 YEARS

LISTING ON THE VIENNA STOCK EXCHANGE SINCE

1890

16

PRODUCTION SITES WORLDWIDE

~ 4,600

EMPLOYEES

REVENUE 2023	EBITDA 2023	EQUIT Y RATIO (12/2023)
721.1 MEUR	71.8 MEUR	45.3%

ANNUAL REPORT 2023

4	emperit Group I Annual Report 2023	Content
	Content
	Key performance figures	5
	Semperit at a glance*	6
	Foreword of the Management Board	8
	Our History	12
	Investor Relations	28
	Corporate governance report	31
	Report of the Supervisory Board	44
	Group management report	46
	Consolidated income statement	83
	Consolidated statement of comprehensive income	84
	Consolidated cash flow statement	85
	Consolidated balance sheet	86
	Consolidated statement of the changes in equity	87
	Notes to the consolidated financial statements	88
	Independent auditor's report	184
	Statement of all legal representatives	191
	Glossary	192
	Imprint and contact	194

• For further information about sustainability and employees please refer to the Sustainability Report 2023, online available at: www.semperitgroup.com/en/sustainability/.

Key figures of Semperit Group					Semperit Group I Annual Report 2023		5
	Key performance figures
	in EUR million	2023		Change	2022	2021	2020	2019	2018
	Revenue		721.1		-7.5%	779.8	601.8	927.6	840.6	878.5
	EBITDA		71.8		-28.5%	100.5	54.0	208.6	67.8	46.4
	EBITDA margin		10.0%		-2.9 PP	12.9%	9.0%	22.5%	8.1%	5.3%
	EBIT		34.6		-44.3%	62.1	25.2	237.8	-16.5	-47.7
	EBIT margin		4.8%		-3.2 PP	8.0%	4.2%	25.6%	-2.0%	-5.4%
	Earnings after taxes		-17.1		n/a		-5.6	247.5	194.6	-44.9	-80.4
	Earnings per share (EPS)1, in EUR		-0.82		n/a		-0.27	11.99	9.06	-2.50	-4.13
	Return on equity2		-4.0%		-3.9 PP		-1.1%	45.7%	58.0%	-16.3%	-24.4%
	Balance sheet key figures
	in EUR million	2023		Change	2022	2021	2020	2019	2018
	Total assets		937.9	11.3%	842.9	958.6	764.4	701.8	768.8
	Equity		425.3		-17.9%		518.2	540.1	332.3	273.4	329.5
	Equity ratio		45.3%		-16.1 PP		61.5%	56.3%	43.5%	39.0%	112.5
	Net Financial Debt		115.2		n/a		-54.2	-144.5	22.1	73.3	36.8
	Additions to intangible assets
	and property, plant and
	equipment3		277.0		n/a		37.6	56.4	28.5	31.4	81.1
	Employees (at reporting date)		4,576	1.6%	4,506	6,948	6,943	6,902	6,773
	Cashflow key figures
	in EUR million	2023		Change	2022	2021	2020	2019	2018
	Gross cash flow		24.4		-19.9%	30.5	323.4	193.7	46.7	37.4
	Free cash flow before the sale of
	companies		26.3		n/a		-2.8	238.4	-	-	-
	Cash investments for intangible
	assets and property, plant and
	equipment (CAPEX)		55.6	2.0%	54.5	47.9	26.2	31.9	80.8
	Cash and cash equivalents		112.7	5.7%	106.6	235.5	145.0	141.4	121.5
	Sector and segment key figures
	in EUR million	2023		Change	2022	2021	2020	2019	2018
	Semperit Group = SIA + SEA
	Revenue		681.8		-7.1%	734.0	556.1	478.4	547.2	567.0
	EBITDA		97.3		-22.3%	125.2	82.1	76.6	87.5	90.6
	EBIT		63.0		-34.4%	95.9	56.8	32.4	60.9	64.3
	SIA
	Revenue		330.8		-26.5%	450.2	341.9	268.4	305.3	422.3
	EBITDA		46.9		-46.8%	88.0	59.2	48.9	54.4	97.7
	EBIT		29.7		-56.2%	67.9	42.1	32.7	36.7	79.1
	SEA
	Revenue		351.0	23.7%	283.8	214.1	210.1	242.0	144.7
	EBITDA		50.5	35.8%	37.2	22.9	27.7	33.0	-7.1
	EBIT		33.2	18.4%	28.1	14.7	-0.2	24.2	-14.8

Note: Rounding differences in the totalling of rounded amounts and percentages may arise from the use of automatic data processing.

The years 2021-2023 take into account the new group structure as a consequence of the sale of the medical business. 2018-2020, are historical, unchanged values.

1. Earnings per share are only attributable to the core shareholders of Semperit AG Holding (excluding remuneration from hybrid capital).
2. Calculated from earnings after taxes (excluding non-controlling interests) in relation to the shareholders' equity (excluding non-controlling interests).
3. Excluding right-of-use in accordance with IFRS 16.
4. The key figure was introduced in 2023 and subsequently processed by 2021.

6 SEMPERIT AT A GLANCE

The publicly listed Semperit AG Holding has been a global provider of quality products made of natural and synthetic rubber or elastomer materials. The international group, headquartered in Vienna, produces and sells its products in more than 100 countries and is one of the leading suppliers in its sectors.

The main product categories are hydraulic and industrial hoses, conveyor belts, escalator handrails, profiles for windows, doors and facades, cable car rings, ski foils, products for railroad superstructures as well as toolmaking and the production of precision liquid silicone parts.

Semperit operated 16 production sites in the past financial year and employed roughly 4,600 people at the end of 2023. The products were sold in the business-to-business field using its own distribution network in Europe, Asia, North and South America and Australia.

LEADING SPECIALIST FOR INDUSTRIAL EL ASTOMER PRODUCTS

At the beginning of 2020, as part of Semperit's strategic realignment, Semperit decided to focus on the identifiable potential in the industrial sector going forward and to complete its transformation to become a specialist for industrial elastomer products.

The restructuring steps taken in previous years have significantly strengthened resilience within the industrial sector and laid solid foundations for future growth. In the past financial year, this transformation was implemented through the sale of the medical business and a powerful divisional structure that is oriented towards Semperit's two main business models was introduced. The Semperit Industrial Applications (SIA) division focuses on highly efficient production and cost leadership for industrial applications in connection with large-scale production, while the innovation- and technology-driven Semperit Engineered Applications (SEA) division focuses on customized solutions and attractive niche markets. The new positioning enables the optimal scaling of the business for future profitable growth.

FOCUS ON CUSTOMER - ORIENTED SOLUTIONS

For both divisions, the priorities are a significant increase in customer proximity, a market-oriented alignment of the entire organization and a stronger focus on customer- oriented solutions. The goal is to serve existing and future markets faster, more effectively and more efficiently. In addition, the systematic and continuous improvement across all areas of the company is intended to further improve the Semperit Group's competitive position and sustainability. The organic growth potential for the existing divisions is coupled with a clearly aligned M&A strategy. The focus on the strategic M&A activities will be on profiting from key trends, improving the geographical footprint, broadening the range of business activities and driving automatization, digitalization and circular economy.

Against this background, Semperit took an important growth step with the acquisition of the internationally active Rico Group in the financial year 2023, which gave Semperit a leading technological position in liquid silicone and high-end toolmaking and expanded the portfolio in terms of products, processing technologies, automation and materials.

200 YEARS

OF EXPERIENCE FOR TOMORROW

7

The Semperit Group story began all the way back in 1824. Semperit is taking its 200th anniversary in 2024 as an opportunity to highlight its centuries-long tradition as well as its path to a successful future in a number of ways under the motto "200 Years Semperit - Experience for Tomorrow". On the 200-year website www.200.semperitgroup.com/en, Semperit looks back on the company's history, which is a story of outstanding personalities and innovative ideas, of resounding successes and also of overcoming crises that threatened the company's existence. At the same time, solutions and people are presented who are already working on Semperit's future successes today. Visit our website to find out how the Semperit Group keeps its customers' technology and infrastructure running in the world of tomorrow with its products and solutions.

SUSTAINABILITY

AT SEMPERIT

Without sustainability in its corporate DNA, Semperit would not be 200 years old. And without sustainability as a strategically anchored basic principle, no bright future would be possible. Semperit is making small and large adjustments in implementation, from climate protection and sustainable supply chains to a healthy and safe working environment. The Semperit Group published its seventh independent sustainability report for the 2023 financial year. The report provides an overview of the various activities, developments and key figures in the context of the main topics and is divided into the sections of environment & climate protection, social affairs and governance (Environmental, Social, Governance - ESG). In addition to topics such as energy, greenhouse gas emissions, material use, health and safety as well as compliance and anti-corruption, it contains general information on the integration of sustainability in the Group and further climate-related information according to the TCFD - Task Force on Climate-Related Financial Disclosures. The Sustainability Report for 2023 and the reports from previous years can be accessed online on our website.

8 FOREWORD FROM

THE EXECUTIVE BOARD

DEAR READERS,

DEAR SHAREHOLDERS,

The past financial year 2023 was eventful and at the same time formative for the Semperit Group, as it marked the successful transformation into an industrial elastomer specialist.

Following the sale of our medical business in late summer, from which you were able to benefit with an additional dividend, we are focusing on further developing and expanding our leading position in the core business for industrial elastomer products.

THE 2023 FINANCIAL

YEAR MARKS THE

SUCCESSFUL

TRANSFORMATION OF

THE SEMPERIT

GROUP INTO AN

INDUSTRIAL ELASTOMER

SPECIALIST.

With the acquisition of liquid silicone specialist Rico, we immediately took an important growth step and now occupy a leading technological position in liquid silicone and high-end toolmaking. This enables us to exploit the huge growth potential for silicone products in Western Europe and the USA.

EFFICIENT STRUCTURE FOR

FUTURE GROW TH

As part of our enhanced strategy with a focus on our industrial core business, we have streamlined our organization and introduced a powerful divisional structure that is aligned with Semperit's two main business models. With the Semperit Industrial Applications (SIA) division, we are a leading international supplier of hydraulic and industrial hoses (Hoses) and sealing profiles (Profiles). In these business units, we focus on highly efficient production and cost leadership for industrial applications in connection with large-scale production. With the Semperit Engineered Applications (SEA) division, we are an internationally renowned supplier of customized and tailor- made technical solutions based on elastomers. We are already one of the world market leaders in escalator handrails, conveyor belts and track underlays. We also cover the entire value chain in the field of liquid silicone - from prototype development and toolmaking to large- scale production. In addition to liquid silicone (Rico), the SEA division, which is strongly driven by innovation and technology, also includes the Belting and Form units. With this new structure we are increasing our efficiency and focusing on even greater customer proximity. It also enables us to optimally scale our business for future profitable growth.

9

ESG PRIORITIES

ECONOMIC HEADWIND

Based on the sale of the medical business and our purely industrial focus, we also adapted our ESG targets to the new structure in the past financial year. In the environmental area, we are systematically continuing to reduce energy, waste and CO2 emissions at all our sites. In addition, we are giving top priority to the continuous improvement of our health and safety performance indicators. We are placing a new focus on diversity and inclusion and have set ourselves specific targets for increasing the proportion of women in management positions. We will also take an even more ambitious approach to screening our supply chain. In order to achieve all of these goals, we are making numerous small and large adjustments during implementation, from climate protection and sustainable supply chains to a healthy and safe working environment. You will find all the details about our ESG initiatives and the development of our key figures in our Sustainability Report 2023.

As expected, the business development of the Semperit Group in 2023 was characterized by a challenging market environment in which we performed very solidly and generated revenue of EUR 721.1 million (-7.5%) in continued operations. While Semperit Industrial Applications was confronted with the general economic slowdown and ongoing destocking by customers, the Semperit Engineered Applications division benefited above all from continued strong demand for conveyor belts and specialty products in the Form business. Our two divisions, which are partly subject to different cycles, therefore complement each other very well.

In anticipation of economic headwinds, we took early countermeasures in the form of cost reductions and intensified these once again in the middle of the year as a result of the downsizing of the Group following the sale of the medical business. Continued operations generated EBITDA adjusted for one-off expenses of EUR 81.7 million (-14.7%) or EUR 71.8 million unadjusted (-28.5%). Earnings after tax from continued operations were positive at EUR

24.9 million, while the loss from the discontinued and now sold business division had a significant negative impact, as expected. Earnings after tax therefore amounted to EUR -17.1 million.

10

ROBUST FINANCIAL BASE

We have a very robust balance sheet and financial base in our Group, whereby we proactively adjusted our financing to our strategic needs over the course of 2023. Following the acquisition of Rico and the sale of the medical business, our balance sheet structure is now more balanced between equity and debt with a solid equity ratio of 45.3% and net financial debt of EUR 115.2 million. Our liquidity position of EUR 112.7 million at the end of 2023 was very comfortable. In addition, we have access to an undrawn credit line of EUR 100 million.

IN 2023, WE INVESTED

IN THE FUTURE

AND OUR COMPETITIVENESS

WHILE IMPROVING OUR

EFFICIENCY.

STRATEGIC GROW TH INITIATIVES

While we are countering the economic downturn by cutting costs and increasing efficiency, we are systematically pursuing our strategic growth initiatives. These include the construction of a highly automated, additional hydraulic hose production facility at our site in Odry in the Czech Republic, which is already Europe's largest hose factory, and the expansion of production in the liquid silicone sector at Rico at its headquarters in Thalheim near Wels. With the expansion in Odry, we are strengthening our position and our competitiveness as one of the top global players for hydraulic hoses. We are paying particular attention to a high degree of automation and the ecological sustainability criteria of the EU taxonomy. The capacity expansions in Thalheim will in turn enable us to further extend our technological lead in the production of injection molding tools for a high number of cavities per tool and in automation.

In 2023, we thus invested in the future and our competitiveness while improving our efficiency. Therefore, despite the currently still challenging economic environment, we look to the future with confidence, because our business model is healthy and resilient, and we have the ambition to constantly improve and to be able to serve existing and future markets even faster. We will prove this once again in the 2024 financial year, which is a very special year for the Semperit Group.