Financial Statements 2020 Financial Statements 2020 1 Grow Together Financial Statements of SIMONA AG for the Financial Year 2020 2 Financial Statements 2020 Combined Management Report 06 Fundamental information about the group 09 Business review 21 Report on opportunities and risks 25 Report on expected developments 27 Other information Zusammengefasster Lagebericht Zusammengefasster 30 Non-financial statement pursuant to > section 289b and section 315b HGB Financial Statements 36 Balance Sheet 38 Income Statement 39 Notes to Financial Statements 48 Statement of Changes in Fixed Assets 50 Details of Shareholdings 52 Reproduction of the Auditor’s Report Jahresabschluss > Financial Statements 2020 Grow Together > Fundamental information about the group from page 6 > Business review from page 9 Combined Management Report for the 2020 Financial Year This management report combines the Group management report and the separate management report of SIMONA Aktiengesellschaft, Kirn (referred to also as SIMONA AG, SIMONA or company) (Section 315(3) in conjunction with Section 298(3) of the German Commercial Code – HGB). This combined management report has been published instead of a Group management report in the annual report of the SIMONA Group. It includes details relating to the course of business, including performance, as well as the position and expected development of the Group and SIMONA AG. Information pertaining to SIMONA AG has been included in the business review that can be found in a separate section with details presented in accordance with provisions set out in the German Commercial Code (Handelsgesetzbuch – HGB). 4 Financial Statements 2020 > Report on > Report on expected opportunities developments and risks from page 25 from page 21 Combined Management Report Combined Management > Other information > from page 27 Combined Management Report for the > Non-financial 2020 statement pursuant to section 289b Financial Year and section 315b HGB from page 30 Financial Statements Financial > Balance Sheet > of SIMONA AG > Notes to Financial from page 36 Statements from page 39 > Income Statement of SIMONA AG page 38 Financial Statements 2020 5 Grow Together Introduction > 1. Fundamental information the Czech Republic, Russia, Hong Kong, China, India, Norway and 1.2 Objectives and strategies Sustainable added value for society and the environment: the the United States, both directly and via trading partners. Beyond intelligent and resource-effi cient use of plastics, for example, about the group this, SIMONA AG operates a sales offi ce in Möhlin, Switzerland. The SIMONA Group conducted an in-depth analysis of its strategic can help to reduce energy consumption and emissions, It contributes around 3 per cent to Group sales revenue. The positioning in 2020, which included redefi ning the direction to facilitate water treatment or ensure the transport of energy from parent company, SIMONA AG, has its registered offi ce in 55606 be taken. Its ambitions within this area have been summarised renewable sources. To our Shareholders To 1.1 The business model Kirn (Germany). In the period under review, the SIMONA Group under the heading „GrowTogether“. The primary goal remains the > operated three manufacturing facilities in Germany and six plants generation of profi table growth, which is to be achieved organically SIMONA pursued these goals consistently over the course of 2020, The SIMONA Group develops, manufactures and markets a range of located abroad. Semi-fi nished products (sheets, rods, welding rods) and through company acquisitions. In this context, the focus is on adjusting them to some extent in response to market distortions semi-fi nished thermoplastics, pipes and fi ttings as well as profi les. are manufactured at two plants in Kirn (Rhineland-Palatinate), thermoplastic sheets, pipes and fi ttings, which SIMONA supplies caused by the COVID-19 crisis. In Europe, a new application- and The materials used include polyethylene (PE), polypropylene while pipes, fi ttings and customised parts are produced at a to industries undergoing global growth. Group revenue is to be process-oriented business structure for the EMEA region was (PP), polyvinyl chloride (PVC), polyethylene terephthalate (PETG), facility in Ringsheim (Baden-Württemberg). The plant in Litvinov increased further, with the EBIT margin standing at between 6 and drawn up and introduced as from 1 January 2021. This involved polyvinylidene fl uoride (PVDF), ethylene-chlorotrifl uoroethylene (Czech Republic) produces pipes and sheets, while the site in 8 per cent. SIMONA is looking to become the company with the discontinuing the company‘s former divisional separation into the (E-CTFE), perfl uoroalkoxy (PFA), thermoplastic olefi ns (TPO), Jiangmen (China) manufactures sheets. The facility operated by highest degree of end-consumer orientation within its industry. The product areas of Semi-Finished Products and Pipes and Fittings acrylonitrile butadiene styrene (ABS) and various specialist SIMONA AMERICA Industries LLC in Archbald (Pennsylvania, USA) HR motto „A Company Like a Friend“ underscores the aspiration in favour of an application-oriented structure centred around materials. The production methods applied within this area mainly produces sheet products. SIMONA Boltaron Inc. produces of a close and trusting relationship with all stakeholders. This is business lines. The principal goals are to raise the company‘s range from extrusion, pressing and injection moulding to CNC thermoplastic sheet products at its plant in Newcomerstown promoted by well-trained employees, open communication and a competitiveness through improved effi ciency, closer dialogue with Management Report Management manufacturing. SIMONA also maintains its own plastics workshop (Ohio, USA), which are primarily used for aircraft interiors and in culture of feedback. end users and better customer service, in addition to pressing > for the production of customised fi ttings. the building sector. Additionally, SIMONA PMC, LLC manufactures ahead with efforts to enter new fi elds of application and develop sheet products at its facility in Findlay (Ohio, USA). Made primarily SIMONA has introduced strategic initiatives in pursuit of these new products. SIMONA has introduced fi ve business lines: Industry, Key sales markets from thermoplastic olefi ns (TPO) and acrylonitrile butadiene goals. Infrastructure, Advertisement & Building Industry, Mobility and Semi-fi nished products are deployed mainly within the area styrene (ABS), they are used in thermoforming applications. Aquaculture. The Aquaculture business line includes the Norwegian of chemical tank and equipment construction, mechanical SIMONA Stadpipe AS, Stadlandet (Norway), plans, produces and Process orientation: With the aim of achieving excellence company Stadpipe AS, which was acquired effective from 1 July engineering, the transport industry, the construction sector, installs piping systems for aquaculture applications. relating to all processes, the latter are to be further refi ned, 2020 and is expected to make a decisive contribution to achieving the exhibition and display sector as well as the automotive and documented and continuously improved. SIMONA will introduce the company‘s growth targets within the global aquaculture market. aerospace industry. Pipes and fi ttings are used primarily for Management and supervision at SIMONA AG consistent process orientation through intensive staff training The acquisition of the Turkish manufacturer of PVC foam sheets drinking-water supply, sewage disposal and industrial piping The members of the Management Board in the fi nancial year under and development as well as an open culture of communication MT Plastik AS, Düzce/Turkey effective from 1 February 2021 is a systems, including the chemical process industry, as well as in review were Dr. Jochen Hauck, Matthias Schönberg (Chairman/ and feedback. strategic decision that will strengthen the market position of the Financial Statements Financial the fi eld of aquaculture. CEO) and Michael Schmitz. SIMONA has established a Global Application orientation: SIMONA will focus on core markets Advertisement & Building Industry business line in Europe. SIMONA > Management Team (GMT) that consists of the Management Board and align its structural and process organisation with the thus aims to extend its premier market position with regard to The SIMONA Group markets its products worldwide. Categorised of SIMONA AG as well as the CEOs of SIMONA in the United States, requirements of end customers. This provides the foundation for quality, breadth of product range and market share. geographically according to the regions Larry Schorr (until 31 December 2020) and Adam Mellen (as from an in-depth understanding of the fi elds of application relating Europe, 1 January 2021), and Asia, Y.K. Wong. The GMT is intended to to the various products. New areas of application are to be Other important elements of the new organisational structure Americas, and facilitate a regular global exchange relating to strategy, in addition cultivated selectively according to this principle. are an organisational separation of customer support and order Asia and Pacifi c, to managing global projects and promoting the internationalisation Agile partner to industry: SIMONA wants to think in a market- management in Customer Service and end-to-end process the business segments comprise the product areas of the company. and applications-driven way, while acting in a product-based