STEICO : Half-Year Report 2023

250

200

150

100

50

€m

100.9 -30.2%

70.4

60

48

36

24

12

€m

38.5 -58.3%

16.0

50

40

30

20

10

€m

26.9 -66.4%

9.0

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.

A. SHARE PRICE GROWTH IN 2023

STEICO's shares started the year with a price of € 44.50 on 2 January (Xetra closing price). During the following weeks, the share price increased slightly and on 15 February it reached the high for the first six months at € 56.30. The share price then showed varied growth until a forecast correction was published on 21 June, causing the share price to fall. The lowest price for the first half of the year was recorded on 27 June at € 27.40. STEICO's shares closed at a price of € 30.35 in Xetra trading on 29 June 2023. This corresponds to a decrease in value of 31.8% in the first six months.

STEICO's shares: Share price growth 6M 2023 STEICO Aktie: Entwicklung 6M 2023

A. FUNDAMENTALS

1. STEICO SE'S BUSINESS MODEL

1. OVERVIEW

The STEICO Group develops, produces and markets ecological construction products made of renewable raw materials. STEICO is, in its own opinion, the global market leader compared to the relevant competitors in terms of revenues 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 wooden construction components and insulation material supplement each other. These include flexible wood- fibre insulation materials, stable insulation boards, wood-fibre insulation boards for facade insulation (composite thermal insulation systems), cavity insulation made of wood fibre and cellulose as well as system-based products for insulating the building shell. The construction elements comprise I-joists and laminated veneer lumber. In addition, the STEICO Group also produces natural fibre boards (hard fibre boards) and is involved in timber wholesale. In the UK the group's product range also includes products for ceiling and floor construction.

The STEICO Group's production equipment also enable a wide variety of specialty products to be produced, such as door panels, pinboards, etc. which can be sold to a wide variety of industries.

2. THE STEICO GROUP'S PRODUCTS AND SERVICES

The STEICO Group is a system provider for natural construction products for insulation and construction. The core product range comprises "natural wood-fibre insulation materials". In the first six months of 2023 the bulk of revenues (63.6%) were generated with ecological wood- fibre insulation materials and cavity insulation for insulating buildings and floors.

The STEICO Group's current range of products and services comprises:

Wood-fibre insulation materials

STEICO's insulation materials are made of fresh softwood. These are used for new construction and renovation, where they protect against heat, cold and noise.

Wood-fibre insulation materials are produced at the manufacturing subsidiaries using various methods - including the wet and dry method. In both methods, wood is broken down into individual fibres using steam and mechanical treatment. The fundamental difference between the two methods is that in the wet method the wet fibres are processed (formed into boards) whereas in the dry method the fibres are dried before they are formed into boards. In the dry method, depending on the technology used, the fibres can be used for cavity insulation, flexible (compressible) bats or rigid insulation boards.

Air injected insulation

Air injected insulation comprises individual insulation fibres or flakes which are blown in into the building's cavities under high pressure, where they then compress. The STEICO Group produces and sells air injected insulation made of wood fibres and cellulose flakes.

Construction products: LVL (Laminated Veneer Lumber)

Laminated veneer lumber is a high-performance timber material comprising several layers of lumber veneer which are glued together. It is characterised by its particularly great rigidity and ability to bear loads while still offering dimensional stability. Laminated veneer lumber is used in construction as well as for industrial applications (for example in making doors and furniture). It forms a key component of I-joists (flange material).

Construction products: I-joists

I-joists are supporting components which are optically very similar to traditional double-T-joists. They comprise two "flanges" (square timber posts made of laminated veneer lumber) which are connected using a fibreboard. Some of the bridge material is purchased (OSB: Oriented Strand Board), but the majority is produced in-house (Natural Fibre Boards). STEICO's I-joists offer an alternative to standard construction products such as construction lumber or laminated timber in terms of both their price and energy consumption.