Unternehmens Invest : Annual report 2019/2020

UNTERNEHMENS INVEST AG

Annual Report on the Business Year 2019|20

KEY FIGURES

of UIAG Group, Vienna

¹) Due to the transition of the balance sheet date from 31 December to 30 September the consolidated financial statements for the period ending on 30 September 2019 comprises only nine months. Therefore and due to the significant change of the consolidation scope the figures can only be compared to a limited extent.

UNTERNEHMENS INVEST AG

SUSTAINABLE STRONG POTENTIAL

Annual Report on the Business Year 2019|20 of UIAG Group, Vienna

THE COMPANY

VALUES GOVERN OUR ACTIONS

Unternehmens Invest AG (UIAG) is an industrial holding listed in the Standard Market Auction of the Vienna Stock Exchange. Its operational approach focuses on medium-sized enterprises. UIAG is an active investor with long-term investment strategy and is interested in national and international medium-sized enterprises that are in need for growth, in a crisis situation or looking for company succession.

UIAG supports a long-term investment policy and an entrepreneurial approach by provision of liquidity and operative know how, without the immediate intention to exit. UIAG as proprietor assumes entrepreneurial responsibility and invests in the long-term success of its subsidiaries and focuses on strategic, operative and financial restructuring, performance and earnings improvement, long-term development of buy & build strategies.

ANNUAL REPORT 2019/20

on the business year 2019|20 of UIAG Group, Vienna

• 14 Foreword by the Management Board

• 16 Bodies of the company

• 18 Shareholdings of UIAG Group

• 19 Corporate governance report

• 19 Commitment to the Austrian Corporate Governance Code

• 20 Members of the corporate bodies and their remuneration

• 25 Measures to promote women

• 25 Diversity

• 25 External evaluation

• 26 Report of the Supervisory Board

• 29 Group management report

• 30 Report on shareholdings of Unternehmens Invest AG

• 34 Earnings, assets and financial position

• 36 Employees

• 36 Risk Report

• 40 Non-financial performance indicators

• 46 Corporate governance code

• 46 Remuneration report

• 47 Research and development

• 47 Significat events after the balance sheet date

• 47 Disclosure in accordance with article 243a UGB

• 48 Outlook

• 51 Consolidated financial statements

• 52 Consolidated income statement

• 53 Consolidated statement of comprehensive income

• 54 Consolidated balance sheet

• 56 Consolidated cash flow statement

• 58 Consolidated statement of changes in equity

• 60 Notes to the consolidated financial statements

• 119 Independent auditor's report

• 124 Statement of all legal representatives

• 125 Other information

INTELLIGENT SECURE NETWORKED

All for One Group SE combines strategy and management con-sulting, process consulting, and industry and technology expertise with IT consulting and IT services under one roof. All for One Group SE responded in a flash to the challenges of the COVID-19 pandemic with home-office, collaboration tools, remote project delivery, coronavirus quick-start packages, online workshops, and an on-air concept for the Midmarket Forum.

TRANSPORT OF

GOODS

Pongratz' trailers score with high payloads, simple handling, stability, highest value, long life cycle and security, Pongratz provides sophisticated transport solutions for a variety of goods with its flatbed trailers, uploaders, car or motorcycle carriers or trailers for construction machines and the new folding trailer Pongami.

PRECISION IN SMALL SERIES

BEGALOM is the sparring partner for the technology departments of leading manufacturers in the automotive and non-automotive segment and supports the customers in the casting realization of prototypes and small series in aluminum gravity sand- and chill casting and model construction. The specialization in highly complex components for combustion engines and E-mobility are the core of BEGALOM's technical know how.

HIGH-END PLASTIC SOLUTIONS

Kautex Maschinenbau stands for innovative blow molding techniques. Kautex focuses in its research and development on the support of their customers with sustainable and innovative solutions: production technologies to foam the center layer or solutions to use recycled plastic to increase the sustainability and cost efficiency of goods produced with Kautex machines.

THE COMPANY

LETTER TO SHAREHOLDERS

The business year 2019/20 was extraordinary, chal-lenging and characterized by the COVID-19 pandemic, the necessary mitigation efforts and the effects on our shareholdings.

All for One Group SE laid with the design of CONVER- SION/4 - a subscription model for SAP transforma-tion and migration to SAP S/4HANA - the foundation for the further growth of the recurring revenues.

Companies whose business performance was significantly impacted by the effects of the COVID-19 pandemic were added to those that were concerned with the structural changes of their customer markets. To ensure the health of our employees and secure our economic success, business processes and internal procedures had to be adapted to the new conditions within a very short time. Therefore, we focused on providing support to our portfolio companies to manage these challenges and on continuing to set the course for the long-term development of our share-holdings.

All for One Group SE responded quickly to the challenges of the pandemic and introduced the possi-bility of working from home for the safety of their employees. Special quick-start package solutions, such as setting up short-time allowance systems or enabling digital collaboration in virtual teams working from home were designed for the customers. Although revenues from licenses have fallen sharply due to the postponement of customer projects, the dynamic increase of recurring revenues showed that the

All for One Group SE business model is strong, even during the COVID-19 pandemic. Despite the lockdownKautex Group implemented the most significant changes in the last business year. Since the automotive segment might not experience an imminent recovery from the significant changes and the COVID-19 pandemic, the strategic focus on solutions in the segments packaging and specialties became crucial. The appointment of the new CEO accompanied by the replacement of essential key positions of Kautex Group, the closer integration of the German and Chinese site, and the intensifying of sales activities supported by a huge product initiative accelerated the transformation into a leading manufacturer of blow mold solutions for packaging considerably.

As a result of the Europe-wide government-mandated COVID-19 measures Pongratz Trailer-Group GmbH was affected by the closure of their dealers for several weeks, by a brief interruption of production in Slovakia and by delays in the supply chain. Although the loss of sales in business year 2019/20 could not be completely made up for, major accomplishments were achieved. The supplier network has been significantly expanded, efficiency measures showed a positive effect, the product portfolio was enlarged, and sales were further strengthened. Major key accounts were

LETTER TO SHAREHOLDERS

acquired in the German market and in Austria Pongratz remained number one in the registration statistics for vehicle trailers. In addition, by the end of December 2020 a record order backlog was registered.

Because of the high uncertainty in the automotive sector and to ensure the safety of the employees, BEGALOM Guss GmbH implemented a shift model combined with the use of short-time working for a period of two months in March 2020. The focus on innovative and sophisticated components and the sales success of the small series production and the repeated orders improved sales further. Combined with the ongoing optimization of internal processes and the efficiency improvements implemented in previous periods BEGALOM was able to increase the result compared to previous year considerably.

As we conclude this letter, lockdowns are extended across Europe, new containment measures are adopted and growth forecasts that are only a few weeks old are being revised. In business year 2020/21

Unternehmens Invest AG will therefore continue to work consistently to support its shareholdings to meet the challenges of the COVID-19 pandemic and its economic consequences. The further diversification of sales markets, the expansion of the product port-folio and the systematic implementation of measures to increase efficiency will enable our shareholdings to achieve the goals set in business year 2020/21.

Although our forecast for 2020/21 is cautious because of the dynamic COVID-19 infection development and the serious economic consequences, we continue to assess the mid-term development potential of our portfolio companies positively.

The business year 2020/21 will be further on burdened by the COVID-19 pandemic. With the beginning of 2021 vaccines will be available, however an effective global implementation will take time. Therefore, public health measures to contain the pandemic are likely to continue, burdening the economic activity.

Vienna, January 2021

We thank our shareholders and business partners for the trust they have placed in us. With this trust, we look forward with confidence to the challenging business year 2020/21.

Chairman

Member

THE COMPANY

BODIES OF THE COMPANY

Management Board

RUDOLF KNÜNZ

Chief Executive Officer

First-time appointed: 21 July 2010

End of current term of office: 30 June 2021

Studies in Business Management at the University Innsbruck

1977: Insead MBA at University Fontainebleau/France

1989-2014: Development of CROSS Industries Group

1992-2007: Shareholder and CEO of KTM Group

2005-2010: Supervisory Board of Unternehmens Invest AG

2007-2014: Supervisory Board of KTM Group

Supervisory Board seats:

Chairman of Ganahl Aktiengesellschaft Member of All for One Group SE Advisory Board member at Pongratz

PAUL NEUMANN

First-time appointed: 1 September 2013

End of current term of office: 31 August 2023

Studies in Business Management at the

University St. Gallen/Switzerland

2013: Insead MBA at University Fontainebleau/France

2008-2009: Analyst at Morgan Stanley

2009-2011: Investment Analyst and Investment Associate at Aabar Investment

Supervisory Board seats:

Deputy Chairman of All for One Group SE

Advisory Board member at Pongratz,

BEGALOM Guss and Kautex

BODIES OF THE COMPANY

Supervisory Board

NORBERT NAGELE

Chairman of the Supervisory Board

Member of the Supervisory Board since February 2010; Appointed until the AGM of the business year 2021/22

Managing Partner of Haslinger / Nagele Rechtsanwälte GmbH, Linz

Other Supervisory Board seats: Chairman of delfortgroup AG and Swietelsky AG

MANFRED DE BOCK

Deputy Chairman of the Supervisory Board

Member of the Supervisory Board since May 2012; Appointed until the AGM of the business year 2020/21

No further Supervisory Board functions

VALENTIN GEISLER-KNÜNZ

Member of the Supervisory Board since May 2018; Appointed until the AGM of the business year 2021/22

No further Supervisory Board functions

MICHAEL MAGERL

Member of the Supervisory Board since May 2019; Appointed until the AGM of the business year 2022/23

Managing Partner of

Schönherr Rechtsanwälte GmbH, LinzNo further Supervisory Board functions

THE COMPANY

SHAREHOLDINGS OF UIAG GROUP

Simplified group structure as at 30 September 2020¹)

All for One Group SE, Filderstadt, Germany (47.87%) ²)www.all-for-one.com

Plastech Holding GmbH, Vienna (100%) ³)

Plastech Beteiligungs GmbH, Vienna (100%) ³)www.plastech.at

Pongratz Trailer-Group GmbH, Traboch (100%) 4)www.pongratztrailers.com

Kautex Holding GmbH, Bonn, Germany (100%) 5)www.kautex-group.com

BEGALOM Guss GmbH, Altmünster (70.08%)www.begalom.at

UIAG Beteiligungs GmbH, Vienna (100%) ³) UIAG Informatik-Holding GmbH,

Vienna (90.95%) ³)

• ¹) Effective shareholding quota from group perspective

• ²) 25.07% are held directly, another 25.07% held via UIAG Informatik-Holding GmbH

• ³) Administration of shareholdings

• 4) Thereof 1% held by UIAG Beteiligungs GmbH

• 5) Legally 86.7% of the share of Kautex Holding GmbH are held by Plastech Beteiligungs GmbH; due to an option agreement 100% of the share of Kautex Holding GmbH is recognized in the consolidated financial statement

COMMITMENT TO THE AUSTRIAN CORPORATE GOVERNANCE CODE

CORPORATE GOVERNANCE REPORT

for the business year 2019|20 of Unternehmens Invest AG

COMMITMENT TO THE AUSTRIAN CORPORATE GOVERNANCE CODE

Since the business year 2003 the Management Board and the Supervisory Board of Unternehmens Invest AG ("UIAG") commit themselves to the rules of the Austrian Corporate Governance Code (www.corporate-governance.at), and its objective for a responsible management and monitoring, directed towards a sustainable value. Thorough transparency is an utmost concern.

The Austrian Corporate Governance Code provides a framework for responsible and transparent management and control. It is based on the Austrian Stock Corporation Act, Stock Market Act Capital Markets Act and EU-recommendations regarding the responsibilities of the members of the Supervisory Board, the remuneration of the management, and the OECD principles of Corporate Governance.

The Austrian Corporate Governance Code in its version of January 2020 and the corporate governance report for the business year 2019/20 are available on the company's website (www.uiag.at).

of its shareholders and to optimize the high legal and ethnical standards and code of conduct of the company.

Unternehmens Invest AG complies with all statutory requirements (L-rules or "legal requirement") of the Austrian Corporate Governance Code.

Comply or explain

In addition to the statutory requirements Unternehmens Invest AG complies with the C-rules ("comply or explain") of the Austrian Corporate Governance Code except for the following deviations:C-rule 18: As the company is not large enough, it does not comply with the rule of setting up a separate internal auditing functional unit. However, an internal monitoring and reporting system enables the Management Board to recognize risks and to react in a timely manner. The Supervisory Board - and in particular the audit committee - are informed on a regular basis on the internal monitoring mechanism and the risk management in the group.

Unternehmens Invest AG fully commits to the Austrian Corporate Governance Code in the current version. This commitment is a voluntary obligation of Unternehmens Invest AG to improve the confidenceC-rule 36: The Supervisory Board strives to constantly improve its organization, procedures and efficiency.

An explicit self-evaluation was not conducted in the business year 2019/20.

C-rules 39, 41 and 43: Since the Supervisory Board of Unternehmens Invest AG had five (or from

10 August 2020 only four) members only in business year 2019/20 the setting up of nomination and remuneration committees would not improve the efficiency of the Supervisory Board's work. The issues of the committees are discussed with the entire Supervisory Board.

As at 30 September 2020, the company has issued 6,369,517 ordinary shares, preference shares or restrictions for ordinary shares are not in place. The principal "one share - one vote" applies. The Austrian Takeover Law ensures that - in case of a takeover bid (mandatory offer) - each shareholder receives the same price for its shares.

C-rule 83: This rule is not complied with because company-specific risk management is set up at share-holding level and because of UIAG's holding function the investment-specific risk management is part of investment management.

In addition, Unternehmens Invest AG endevours to comply not only with the minimum requirements but also with the codes R-rules ("recommendation").

The company is committed to transparency and a "true and fair view" for all owners. All relevant infor- mation is published in our annual financial report, the interim financial report, on the company's website and regular PR work. The financial reports are set up according to international accounting standards (IFRS). The company informs its shareholders by means of ad hoc releases and press releases on all relevant topics. Important events are listed in the financial calendar.

MEMBERS OF THE CORPORATE BODIES AND THEIR REMUNERATION

Management Board

Working method of the Management Board

The Management Board of Unternehmens Invest AG and its members act on the basis of law, the articles of association, and the internal regulations - authorized by the Supervisory Board - that determine the cooperation of the members of the Management Board and their allocation of competencies.

The Management Board holds regular bi- to four weekly meetings and also continuously exchanges information informally to discuss current business events and company strategic topics. Current management issues are attuned to be executed by the Management Board members in accordance with their internal regulations' issues.

All information is published on the website in "Investors" and "Financial news" and are available to all shareholders at the same time.

The internal regulations require the Management Board to report comprehensively to the Supervisory Board and determine an extensive catalog of measures and legal transactions that require approval from the Supervisory Board.

MEMBERS OF THE CORPORATE BODIES AND THEIR REMUNERATION

Composition of the Management Board

Rudolf Knünz, Chairman

Born 1951

First time appointed: 21 July 2010

Appointed until: 30 June 2021

Management functions within the group:

• - Member of the Supervisory Board of All for One Group SE

• - Managing director of UIAG Informatik-Holding GmbH (together with Paul Neumann)

• - Managing director of UIAG Beteiligungs GmbH

Supervisory Board mandates of similar positions in other domestic and foreign companies, which are not part of the consolidated group of companies: - Chairman of the Supervisory Board of Ganahl Aktiengesellschaft, Frastanz

Paul Neumann

Born 1984

First-time appointed: 1 September 2013

Appointed until: 31 August 2023

Management functions within the group:

• - Deputy Chairmain of the Supervisory Board of All for One Group SE

• - Managing director of UIAG Informatik-Holding GmbH (together with Rudolf Knünz)

• - Managing director of Plastech Holding GmbH

• - Managing director of Plastech Beteiligungs GmbH

No Supervisory Board mandates of similar positions in other domestic and foreign companies, which are not part of the consolidated group of companies

Chairmanship and allocation of competencies of the Management Board:

Rudolf Knünz, Chairman

Commercial matters, structuring of projects (due diligence, contracts, financing)

Paul Neumann

Acquisition of projects and investors, sale of projects and investments

Supervisory Board

Working method of the Supervisory Board The Supervisory Board carried out its duties in the business year 2019/20 conscientiously according to statutory law, to the articles of association, the Austrian Corporate Governance Code and its internal regulations. In the business year 2019/20 a total of five Supervisory Board meetings took place - e.g. a minimum of one per quarter as required according to C-rule 36.

The Supervisory Board appointed - according to the articles of association - a chairman and a deputy and established an audit committee.

The Supervisory Board meetings are presided by the chairman or in his absence by the deputy chairman.

The resolutions of the Supervisory Board are passed with simple majority of votes cast, at parity of votes the vote of the chairman decides.

The Supervisory Board is entitled at any time to ask the Management Board to provide written reports on company and management matters. The Manage-ment Board participates in the meetings of the Supervisory Board and the audit committee unless the chairman of the Supervisory Board decides otherwise. The members of the Management Board have no voting rights.

The members of the Management Board explain the business trend and the personnel and financial develop-ment of the group. The discussion of the Manage-ment Board and the Supervisory Board are extensive.

The committees set up by the Supervisory Board fulfill their tasks within the scope of the Supervisory Board. Each committee requires two members, the quorum requires single majority. If the committee does reach an agreement the issue shall be presented to the Supervisory Board.

Framework agreements for consulting services were set up with Haslinger / Nagele Rechtsanwälte GmbH, Linz and Schönherr Rechtsanwälte GmbH, Linz, and authorized by the Supervisory Board. In both companies a member of the Supervisory Board holds a significant economic interest. All consulting and other services are carried out on standard terms and conditions and in a scope considered not significant for the Supervisory Board member.

In addition to that there no contracts between the company and Supervisory Board members that may require the authorization of the Supervisory Board (C-rule 49).

The audit committee monitors the accounting (including the group accounting), the audit (including the group audit) the effectiveness of the internal control and risk management systems and the revision. The audit committee approves non-audit related services of the auditor (group auditor). The committee also monitors the independence of statutory (group) auditors especially in regard to the additional services rendered for the audited company.

Composition of the Supervisory Board

The Supervisory Board of Unternehmens Invest AG had five members in business 2019/20, and four members after 10 August 2019.

Norbert Nagele, Chairman

Born 1948

Independent in accordance with C-rule 53

First appointed at the Annual General Meeting on 12 February 2010

Appointed until the AGM on business year 2021/22

No Supervisory Board mandates of similar positions in other domestic and foreign listed companies

Manfred De Bock, Deputy Chairman

Born 1955

Independent in accordance with C-rule 53

First appointed at the Annual General Meeting on 23 May 2012

Appointed until the AGM on business year 2020/21

No Supervisory Board mandates of similar positions in other domestic and foreign listed companies

Otto Urbanek

Born 1950

Independent in accordance with C-rule 53

First appointed at the Extraordinary General Meeting on 29 July 2013; Resigned on 10 August 2020

No Supervisory Board mandates of similar positions in other domestic and foreign listed companies

Valentin Geisler-Knünz Born 1985

First appointed at the Annual General Meeting on 30 May 2018

Appointed until the AGM on business year 2020/21

No Supervisory Board mandates of similar positions in other domestic and foreign listed companies

ORGANE DER GESELLSCHAFT UND ORGANBEZÜGE

Michael Magerl

Born 1979

Independent in accordance with C-rule 53

First appointed at Annual General Meeting on 29 May 2019

Appointed until the AGM on business year 2022/23

No Supervisory Board mandates of similar positions in other domestic and foreign listed companies

Committees of the Supervisory Board

The Supervisory Board of Unternehmens Invest AG established - according to the Stock Exchange Act - an audit committee to carry out the required supervising and monitoring functions.

The audit committee is responsible for reviewing and preparing the approval of the annual financial statements, the proposal for the distribution of profits, and the review of operations. The audit committee submits the proposal for the auditor for the adoption of resolution at the Annual General Meeting. In accordance with C-rule 81a the auditor and the audit committee establish a mutual method of communi-cation. The members of the committee meet the required financial qualifications.

Norbert Nagele (chairman), Manfred De Bock and Valentin Geisler-Knünz are members of the audit committee.

The audit committee held three meetings in the business year 2019/20, two meetings (23 January and 26 September 2020) were attended by a represen- tative of the auditor.

Since the Supervisory Board consists of less than six members the functions of the nomination and remuneration committees are discussed within the entire Supervisory Board.

Disclosure of information about remuneration of Management Board and Supervisory Board members

Remuneration of the Management Board Determining the remuneration for the members of the Management Board the Supervisory Board has to ensure that the remuneration is in reasonable balance with the duties and performance of the Manage-ment Board member and the economic position of the group and may not exceed the level of adequate compensation and long-term incentives for a sustainable development of the company have to be considered.

The Supervisory Board has set up a remuneration policy to regulate the remuneration for the members of the Management Board. The remuneration policy in accordance with section 78a in conjunction with section 98a of the Austrian Stock Corporation Act (AktG) was resolved by the Supervisory Board on 23 January 2020 and was be put to the vote in the Annual General Assembly on 16 June 2020 and has been adopted from thereon. This remuneration policy will be in effect for four years - unless significant adjustments are necessary. The remuneration policy must be put to the vote of the Annual General Assembly every fourth business year.

The disclosure of the total remuneration of the Management Board members and the key guidelines of the remuneration policy are presented for the first-time in business year 2019/20 in a separate remuneration report.

There are no stock option programs or similar share-based payment systems in place. The annual premium for the group's D&O insurance amounts to € 21.1k in business year 2019/20.

The remuneration of the Supervisory Board member is resolved in the Annual General Meeting for preceding business year. The resolution has to be submitted by the Management Board. The submission of the resolution and the resolution of the General Meeting is of free discretion, however, shall commensurate with the responsibilities and scope of work of the members as well the economic situation of the company.

Remuneration of the Supervisory Board

In accordance with section 78a in conjunction with section 98a of the Austrian Stock Corporation Act (AktG) Unternehmens Invest AG has set up principles of remuneration for the members of the Supervisory Board that are consistent with the business strategy, goals, values and long-term interests of the com-pany and comprise provisions for the prevention of conflicts of interest.

The remuneration policy was resolved by the Super- visory Board on 23 January 2020 and was be put to the vote in the Annual General Assembly on 16 June 2020 and has been adopted from thereon. This remuneration policy will be in effect for four years - unless significant adjustments are necessary.

The remuneration policy must be put to the vote of the Annual General Assembly every fourth business year.

Independence of the Supervisory Board in accordance with C-rule 53

The Supervisory Board of Unternehmens Invest AG complies with the guidelines regarding the criteria for independence, given in the Austrian Corporate Gover- nance Code, annex 1. A member of the Supervisory Board shall be deemed as independent if said member does not have any business or personal relations to the company or its Management Board that constitute a material conflict of interests and is there-fore suited to influence the behaviour of the member.

The company is advised on legal matters by Haslinger / Nagele Rechtsanwälte GmbH, Linz, and Schönherr Rechtsanwälte GmbH, Linz. All consulting and other services carried out were used on standard terms and conditions and, for a remuneration not of minor value for the Supervisory Board member. Under these guidelines, the members of the Super-visory Board of Unternehmens Invest can be deemed independent.

In accordance with C-rule 53, Valentin Geisler- Knünz is not independent from the company and the Management Board. All other members of the Supervisory Board of Unternehmens Invest AG declare their independence according to C-rule 53.

The Management Board will submit the resolution to the Annual General Meeting for the business year 2019/20 to be held on 24 March 2021 to pay a total remuneration in the amount of € 53.5k.

Detailed information regarding the remuneration of the Supervisory Board and the key guidelines of the remuneration policy are presented for the first time in business year 2019/20 in a separate remuneration report.

According to C-rule 54 of the Austrian Corporate Governance Code the Supervisory Board shall at least have on independent shareholder representative who is not a shareholder with more than 10% of the company or represents such shareholder. These requirements of C-rule 54 are meet in business year 2019/20 since no member of the Supervisory Board holds more then 10% of the company of represents such shareholder.

EXTERNE EVALUIERUNG

MEASURES TO PROMOTE WOMEN

It is not anticipated that woman will be appointed into the Management Board and Supervisory Board as it is not planned to enlarge them. Equal treatment of female and male employees and equal career chances are a matter of fact for Unternehmens Invest AG.

DIVERSITY

The UIAG Group regards it important to treat all employees with fairness and respect. To counteract the risk of unequal treatment, we endeavor to create a working environment characterized by mutual trust, in which each individual is treated with dignity and respect, and in which people from diverse cultures and with different personal backgrounds are held in esteem irrespective of age, religion, disability, culture, skin color, social background, sexual orientation or nationality. Any kind of discrimination or mobbing is rejected firmly.

Personalities represented in the Management Board and Supervisory Board bring the required knowledge, skills and personal prerequisites and abilities that are required to manage and secure UIAG Group.

Vienna, January 2021

The Management Board of Unternehmens Invest AG

Chairman

Paul Neumann

We aim for a balanced age structure and represen- tation of sexes. Currently there are no women represented in the Management and Supervisory Board of Unternehmens Invest AG.

EXTERNAL EVALUATION

According to C-rule 62 of the Austrian Corporate Governance Code an external institution has to evaluate the compliance of the C-rules of the Code. Unter-nehmens Invest AG assigned Oberhammer Rechts-anwälte GmbH with the evaluation of the abridged business year 2019. The evaluation did not discover any facts that conflict with the statement issued by the Management Board and Supervisory Board about observance of and compliance with the C-rules of the Austrian Corporate Governance Code.

The C-rules were - to the extend as they are included in the declaration of commitment by Unternehmens Invest AG - maintained. The complete report and the results of the evaluation are available on the company's website (www.uiag.at). The next external evaluation of the compliance of the C-rules of the Code is planned for business year 2021/22.

REPORT OF THE SUPERVISORY BOARD

REPORT OF THE SUPERVISORY BOARD

for the business year 2019|20 of Unternehmens Invest AG

The Supervisory Board of Unternehmens Invest AG fulfilled its duties required by law and under the articles of association. The Supervisory Board received regular, timely and comprehensive reports from the Management Board on all matters relevant to the course of business and the company's situation.

In the five Supervisory Board meetings in business year 2019/20 from 1 October 2019 to 30 September 2020, in which the Management Board also participated, the Supervisory Board gave thorough consideration to the current and impending acquisitions and disposals, the Group's annual financial statements, existing investments and the risk management system of the Management Board. The Supervisory Board assessed important business transactions and resolved upon the transactions requiring its approval. In addition, there were further coordination discussions by telephone and resolutions passed by electronic, telephone or written means.

In the ordinary General Meeting of 16 June 2020

Norbert Nagele was re-elected into the Supervisory Board of Unternehmens Invest AG for two more years, until the Annual General Meeting on the business year 2021/22. The Supervisory Board member

Otto Urbanek resigned on 10 August 2020. The Super- visory Board of Unternehmens Invest AG has four members.

The auditors appointed by the Annual General Meeting, KPMG Austria GmbH (FN 269725 f) Wirtschafts- prüfungs- und Steuerberatungsgesellschaft, Linz, have audited the company's individual financial statements for the year ended 30 September 2020 as well as the management report for the business year 2019/20 and the consolidated financial statements as at

30 September 2020 and the group management report for the reporting period 1 October 2019 to 30 Sep-tember 2020, and the accounting records and granted these an unqualified audit certificate.

Additional information was supplied with regard to extraordinary developments. The Management Board provided the Supervisory Board with all necessary information and documents required for decision-mak-ing. There were no reasons for special audit measures.

The auditors have hereby confirmed that the account-ing and the individual financial statements as at

30 September 2020, comply with the legal regulations, that the individual financial statements provide a true and fair view of the company's assets, financial situation and earnings position in conformity with generally accepted accounting principles and that the manage- ment report corresponds to the individual financial statements.

REPORT OF THE SUPERVISORY BOARD

The auditors have also confirmed that the accounting and the consolidated financial statements as at

30 September 2020, comply with the legal regulations, that the consolidated financial statements provide a true and fair view of the company's assets, financial situation and earnings position in conformity with generally accepted accounting principles and that the management report corresponds to the individual financial statements.

The Supervisory Board concurred with the report of the audit committee and hence the results of the final audit. Having been accepted by the Supervisory Board, the individual financial statements can be deemed approved pursuant to section 96 (4) Austrian Stock Corporation Act (AktG). The Supervisory

Board acknowledged the consolidated financial statements and the group management report for the business year 2019/20.

The audit committee concurred with the results of the final audit. After reviewing the management report and the individual financial statements including the proposed distribution of profit well as the group management report and the consolidated financial statements and reviewing the Management, the audit committee did not give rise to any objections.

The audit committee recommends that KPMG Austria GmbH (FN 269725 f) Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, Linz, be appointed as independent auditors for the business year 2020/21.

The audit committee reviewed the corporate gover-nance report and informed the Supervisory Board that it did not give rise to any objections

The Supervisory Board and the Management Board set up a remuneration report for the remuneration of the Supervisory Board and Management Board for the business year 2019/20 which was resolved by the Supervisory Board in its meeting on 21 January 2021 and will be put to the vote of the Annual General Meeting.

The Supervisory Board recommends that KPMG Austria GmbH (FN 269725 f) Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, Linz, be appointed as independent auditors for the business year 2020/21.

Vienna, January 2021

Chairman of the Supervisory Board

GROUP MANAGEMENT REPORT

for the business year 2019|20 of Unternehmens Invest AG

Unternehmens Invest Aktiengesellschaft (the "Company" or "Unternehmens Invest AG" or "UIAG") is an industrial holding listed in the "Standard Market Auction" of the Vienna Stock Exchange and focusing its operational approach on medium-sized enter- prises. The investment strategy is long-term. Without the immediate intention to exit UIAG supports an entrepreneurial approach by provision of equity and operative know how.

REPORT ON SHAREHOLDINGS OF UNTERNEHMENS INVEST AG

IT segment

All for One Group SE (formerly: All for One Group AG)

In the Annual General Meeting of All for One Group AG in March 2020 the conversion into a European stock corporation ("Societas Europaea") - All for One Group SE - was resolved and entered into the commer- cial register on 13 July 2020.

In the business year 2019/20 sales of All for One Group SE amounted to € 355,393k (-1% compared to business year 2018/19; 12 months). Thus, All for One Group SE could not achieve their initial sales and EBIT forecast for the business year 2019/20 because of the drop in demand caused by the COVID-19 pandemic. In particular earnings from the sale of soft-ware licenses and from consulting and services fell short of expectations as many projects were stopped, postponed, or not commissioned at all due to the pandemic.

However, All for One Group SE responded quickly to the challenges and designed special quick-start package solutions, such as setting up short-time allowance systems or enabling digital collaboration in virtual teams working from home. Although these solutions were well received in the market, the unexpected sharp drops in demand were only compensated to a minor degree.

Cloud services and support sales amounted to € 77,088k (+9%), thus the core of the strategy offensive 2022 to increase recurring revenues is on a strong growth course. License sales declined by 38% to € 25,542k, following the overall market trend reinforced by pandemic-related delays of customer projects and a strong decline in licensing.

Overall, recurring revenues increased by 7% to € 186,391k.

These included besides the above-mentioned Cloud Services and Support revenues also Software Support revenues (+5% to € 109,303k). The ratio of recurring revenues to total sales increased to 52% (BY 2018/19: 49%). Despite COVID-19 and a generally weaker capacity utilization of consultants All for One Group SE was able to preserve the previous year's level of Consulting and Services revenues (BY 2019/20: € 143,460k). Total revenues amounted to € 355,393k and were 1% below the previous year's level of € 359,215k.

The EBIT of the business year 2019/20 amounted to € 19,287k (+53%). The previous year's EBIT in the amount of € 12,632k included one-time special cost (€ 7,000k) from the strategy offensive 2022. Thus, the previous year's comparative EBIT (without special cost) amounted to € 19,632k.

In October 2019 All for One Group SE placed promis-sory note bonds in the total amount of € 33,500k, split in two spot tranches with terms of six years (€ 7,500k) and eight years (€ 16,000k) and a forward loan with a maturity of 6.5 years. The forward loan will mainly be used to redeem a residual tranche of € 8,500k. The interest rates for all three tranches are fixed and range between 0.9% and 1.1%.

Plastic segment

Plastech Holding GmbH

With acquisition and transfer agreement of 3 October 2019 Unternehmens Invest AG acquired 10% of Plastech Holding GmbH from Otto Urbanek. Unterneh- mens Invest AG now holds 100% of Plastech Holding GmbH.

The volatility of decision makers is enormous due to the pandemic making forecasts extremely difficult. For the first half of the business year 2020/21

All for One Group SE anticipates a difficult market environment and large SAP S/4HANA projects may fail to materialize. From spring 2021 onwards the global pandemic is expected to ease significantly, leading to a noticeable upturn in incoming orders. All for One Group SE expects sales in the business year 2020/21 to increase slightly and the EBIT ranging between € 17,500k and € 20,500k.

The consolidated financial statements of Unter- nehmens Invest AG included revenues in the amount of € 355,393k for business year 2019/20. In the abridged business year 2019 revenues in the amount of € 265,031k for nine months were included.

In March 2020 Unternehmens Invest AG received a dividend payment in the amount of € 1,499k (€ 1.20 per share) from All for One Group SE.

As at 30 September 2020 Unternehmens Invest AG holds 1,248,823 shares (25.07%) of All for One Group SE.

UIAG Informatik-Holding GmbH

UIAG Informatik-Holding GmbH is a holding company for the acquisition and administration of company shareholdings. UIAG Informatik-Holding GmbH holds 1,248,873 shares (25.07%) of All for One Group SE (formerly: All for One Group AG).

In March 2020 received UIAG Informatik-Holding GmbH a dividend payment in the amount of € 1,499k (€ 1.20 per share) from All for One Group SE.

Plastech Holding GmbH and its 100% subsidiary Plastech Beteiligungs GmbH are holding companies for the acquisition and administration of industrial companies, for the management of associated com-panies and shareholdings of Plastech Holding Group, for the providing of services for these companies (group services) as well as in the field of management consultancy.

In business year 2019/20 Plastech Holding GmbH acquired 11.75% of the shares of Kautex Holding GmbH executing existing option rights. From the acquisition of Kautex Holding Group the UIAG Group still can exercise the option to acquire the remaining 13.3% of the shares.

In business year 2019/20 Plastech Holding Group achieved revenues in the amount of € 83,697k which is below the budgeted revenues. The EBIT of Pastech Holding Group in business year 2019/20 was negative and included impairments of goodwill and associated companies in the amount of € 9,863k.

Plastech Beteiligungs GmbH

Plastech Beteiligungs GmbH holds 74.95% of Kautex Holding GmbH. In total Plastech Holding Group holds 86.7% of the shares of Kautex Holding GmbH.

In March 2020 Unternehmens Invest AG acquired the bank loan of Plastech Beteiligungs GmbH with the nominal amount of € 14,000k (as at 30 September 2019) for a purchase price of € 8,400k by way of an earn-out agreement. Unternehmens Invest AG granted the amount as long-term shareholder loan to Plastech Beteiligungs GmbH.

The order intake was only slightly behind budget (-3%) even though the business year 2019/20 was charac-terized by distortions from the COVID-19 pandemic and an ongoing investment restraint in the automotive sector. However, revenues were more significantly behind budget (-10%) because of insufficient sales volumes and belated invoicing.

As at 30 September 2020 loans and borrowings in the amount of € 51,416k from Unternehmens Invest AG to Plastech Holding Group existed.

Kautex Holding Group

As already apparent in previous periods, order intake and revenues in the automotive segment remained significantly reduced. Therefore, the clear strategy and intensifying of activities in the segments packaging and specialties was crucial. This was also emphasized by Thomas Hartkämper - the new CEO of Kautex Holding Group, who is a proven expert in the packaging segment - and by the development of a roadmap for the business years 2019/20 and 2020/21 providing innovative solutions for energy and cost saving production in the segments consumer and industrial packaging for their customers.

The increased focus on the segments packaging and specialties reduces the dependency on the automotive segment as it might not experience an imminent recovery from the significant changes and the COVID-19 pandemic.

The measures for cost adjustment developed in the previous year were implemented consistently in 2019/20 and the defined savings goals were partly exceeded.

The Plastic segment achieved revenues in the amount of € 83,697k in 2019/20. The segment was burdened by the impairment of goodwill in the amount of € 6,050k and the impairment of the associated company BAGE Recycling GmbH in the amount of € 3,813k. The impair-ment of goodwill of Plastech Holding Group mainly resulted from the increased discount interest rate (WACC) at the record date 31 March 2020, which increased due to the current distortions caused by the COVID-19 pandemic. The valuation of the callable non-controlling shares (options for the remaining shares of Kautex Holding GmbH) resulted in a positive result of € 3,360k.

As at 30 September 2019 Plastech Holding GmbH held 25.1% of BAGE Recycling GmbH - a company specialized in the recycling of plastics from electronic waste and post-consumer fridge recycling. With acquisition and transfer agreement of 2 July 2020 the share was sold for € 1.00. In 2019/20 a pro rata negative result in the amount of € -594k and an impair- ment in the amount of € 3,813k as at 31 March 2020, mainly resulting from the significantly reduced earnings forecast for years ahead was recognized. The pricing pressure on recycling materials caused by the decline in demand for oil and the resulting lower oil price due to the COVID-19 pandemic increased considerably. As at 30 September 2020 the loan of Plastech Holding GmbH to BAGE Recycling GmbH in the amount of € 1,500k and current receivables in the amount of € 76k from interest settlement were written off completely since a cash return may not be expected due to the economically strained situation of the company.

Other segment

Pongratz Trailer-Group GmbH

Pongratz' customers in the most relevant markets were closed down for several weeks from mid-March 2020 onwards because of the federally mandated protective measures. After the reopening, a huge demand and strong order intake were registered. The increased demand continues whereby the order intake in December 2020 is considerably above the previous years'.

Material shortages on the part of the suppliers during the year caused production delays and conse-quently delivery delays for the customers of Pongratz Group. However, the material shortages for the most essential production components were solved - partially by new suppliers and partially by increased inventory.

The sales were behind budget because of the con- currence of the COVID-19 pandemic and the beginning of the main season in March. As already reported a comprehensive set of measures was implemented in the previous year to reduce cost and increase efficiency and partially compensated the margin loss from the sales decline.

UIAG Beteiligungs GmbH

UIAG Beteiligungs GmbH is a holding company for the acquisition and administration of shareholdings and holds 1% of Pongratz Trailer-Group GmbH.

BEGALOM Guss GmbH

In business year 2019/20 revenues and income increased compared to the previous year. The strategy and focus on quality and sophisticated components combined with a precise compliance with processes, continuous improvement and streamlining of efficiency provided sustainable economic success. The strategic focus on sophisticated and complex parts for prototypes and small series also had a positive effect.

As at March 2020, comprehensive measures for the safety of the employees, to ensure the liquidity and reduce fixed cost during the COVID-19 pandemic were implemented, such as adjusted shift working models, the bringing forward of vacations and adjusted produc-tion processes. For several months Pongratz Group implemented short-time working and received subsidies from short-time working grants. Also, deferral of taxes was used.

Despite the restrictions caused by the COVID-19 pandemic Pongratz Group remained number one in the registration statistics for vehicle trailers in business year 2019/20 and maintained a stable market share of 36.4% in Austria. With the expansion of the sales team for Germany in the previous year the registration numbers of Pongratz Group in Germany increased by 29.5% and new key accounts were gained.

By the end of September 2020 Pongratz Group entered into new financing contracts for a total of € 1,000k. Thereof € 500k were granted by the "Oestereichische Kontrollbank" in form of a revolving export credit in the course of a special program to support export companies to reduce the impact from COVID-19, and a credit line of € 500k with a term of four years and a guarantee commitment was granted by the "Austria Wirtschaftsservice Gesellschaft m.b.H."

BEGALOM implemented comprehensive measures to protect employees, to ensure liquidity and reduce fixed cost during the COVID-19 pandemic. The employees were instructed regularly on the necessity to comply with the relevant sanitary measures, the workspaces were adjusted (partition walls for meeting rooms) and additional areas for production (additional working tables to increase distance) set up. Also, shift models were adjusted to reduce the number of employees that are at company's premises at the same time. Special attention was paid to the consequent compliance of the required minimum distance and the wearing of mouth-nose protection for both administra-tion and production staff.

The cost discipline of previous years supported this phase. In addition, during the months of April to June short-time working was implemented and the deferral of taxes used. Despite the enhanced measures in the core markets Austria and Germany significant order intakes were registered, therefore the order intake remains furtheron on very high level.

With the excellent starting position of the order intake, as well as the measures to reduce fixed cost during the COVID-19 pandemic and the budget surplus from the first half of the business year 2019/20 a positive operational result was achieved.

UIAG segment - individual company

In the business year 2019/29 Knünz GmbH and Nucleus Beteiligungs GmbH increased the credit line to Unternehmens Invest AG to a total of € 20,800k. As at 30 September 2020 € 18,420k were used. Bernd Neumann granted a long-term loan in the amount of € 4,000k to Unternehmens Invest AG in business year 2019/20.

Annual General Meeting of Unternehmens Invest AG Due to the COVID-19 pandemic the Annual General Meeting planned to be held on 18 March 2020 was postponed and held virtually on 16 June 2020.

The income from associated companies recognized at equity included the current income from the associated companies BAGE Recycling GmbH until the sale of the share in July 2020. In addition, the impairment of the share of BAGE Recycling GmbH as at 31 March 2020 was included.

The EBIT in business year 2019/20 amounted to € -16,926k (ABY 2019: € -19,838k) and was burdened by the impairment of Plastech Holding Group in the amount of € 6,050k (ABY 2019: € 18,084k) and the ordinary depreciation in the amount of € 5,058k (ABY 2019: € 7,125k) from the revaluation in the course of the purchase price allocation of Plastech Holding Group and UIAG Informatik-Holding Group.

Norbert Nagele was re-elected for two more years, until the Annual General Meeting on business year 2021/22. Otto Urbanek resigned from the Supervisory Board as at 10 August 2020. The Supervisory Board of Unternehmens Invest AG has now four members.

EARNINGS, ASSETS

AND FINANCIAL POSITION

The figures for the comparative period can only be compared to a limited extent because of the transition of the balance sheet date from 31 December to

30 September and the formation of an abridged business year for nine months from 1 January 2019 to 30 September 2019.

The financial result for the business year 2019/20 amounted to € -135k (ABY 2019: € 661k) and could be attributed to the interest income in the amount of € -5,614k (ABY 2019: € -4,240k) and in the amount of € 5,479k (ABY 2019: € 4,901k) to the other financial and participation result - which mainly included income from the repayment of financial liabilities in the amount of € 5,600k. As already explained, the loan of Plastech Beteiligungs GmbH (Plastic segment) with a nominal value of € 14,000k was acquired by Unternehmens Invest AG in March 2020 for an amount of € 8,400k by means of an earnout agreement. Unter- nehmens Invest AG continues to provide this loan to Plastech Beteilgungs GmbH as non-current share- holder loan. Thus, the consolidated financial statement showed an income from the repayment of financial liabilities in the amount of € 5,600k.

In business year 2019/20 UIAG Group achieved revenues in the amount of € 467,607k (ABY 2019: € 368,476k), mainly from the segments IT (UIAG Informatik-Holding Group) and Plastic (Plastech Holding Group).

Results analysis

The result from the valuation of callable non-control- ling interests amounted to € 3,360k (ABY 2019: € 11,040k). The liability from callable non-controlling interests could be attributed to the remaining 13.3% (30 September 2019: 25.05%) share of Kautex Holding GmbH.

EARNINGS, ASSETS AND FINANCIAL POSITION

Balance sheet analysis

The consolidated balance sheet total of UIAG Group decreased slightly from € 526,827k as at 30 September 2019 to € 521,748k as at 30 September 2020.

The intangible assets at 30 September 2020 amounted to € 237,452k (30 September 2019: € 252,150k) and mainly included goodwill in the amount of € 122,543k (30 September 2019: € 128,580k), customer relation-ships in the amount of € 49,503k (30 September 2019: € 56,089k), brand rights in the amount of € 50,349k (30 September 2019: € 50,349k) and other intangible assets in the amount of € 13,237k (30 September 2019: € 15,586k).

The tangible assets included capitalized usage rights from IFRS 16 in the amount of € 37,465k (30 September 2019: € 35,654k). These could be attributed to land and buildings in the amount of € 25,791k (30 September 2019: € 28,254k), to technical equipment and machinery in the amount of € 5,453k (30 September 2019: € 1,148k) and to other assets, plant and office equip-ment in the amount of € 6,221k (30 September 2019: € 6,252k).

In business year 2019/20 investments in intangible assets in the amount of € 2,517k (ABY 2019: € 3,328k) and in tangible assets in the amount of € 15,003k (ABY 2019: € 36,577k) were made, mainly in the

IT segment. These investments included additions of usage rights according to IFRS 16 in the amount of € 8,513k (ABY 2019: € 23,694k) which were non-cash effective. The additions of usage rights could also be mainly attributed to the IT segment.

As at 30 September 2019 the financial assets recog- nized at-equity included the share of BAGE Recycling GmbH in the amount of € 4,407k. In the first half of the business year 2019/20 the carrying amount was reduced by the pro rata negative result in the amountof € -594k and the impairment recognized at

31 March 2020 in the amount of € 3,813k. The share was sold in July 2020.

The other non-current receivables included lease receivables in the amount of € 6,674k (30 September 2019: € 6,630k).

The current assets included trade receivables in the amount of € 58,656k (30 September 2019: € 74,884k), inventory from operative subsidiaries in the amount of € 36,716k (30 September 2019: € 39,431k) and lease receivables in the amount of € 4,111k (30 September 2019: € 4,035k) as well as cash and cash equivalents in the amount of € 77,106k (30 September 2019: € 33,652k).

The financial liabilities included non-current lease receivables in the amount of € 26,619k (30 September 2019: € 30,827k) and current lease receivables in the amount of € 11,216k (30 September 2019: € 11,265k). Personnel obligations included defined benefit pension plans in the amount of € 17,683k (30 September 2019: € 17,796k). The liabilities from callable non-con- trolling shares amounted to € 3,269k (30 September 2019: € 6,862k) and were all non-current (30 September 2019: € 6,781k non-current and € 81k current). This liability was included in the other non-current liabilities in the balance sheet. In the previous year it was included in trade liabilities and other liabilities.

The equity ratio as at 30 September 2020 was approx-imately 35.18% (30 September 2019: 37.58%). The equity including non-controlling interests amounted to € 183,548k as at 30 September 2020 (30 September 2019: € 197,989k). The change mainly resulted from the negative result of the business year 2019/20 and the acquisition of 10% of the shares of Plastech Holding GmbH. The dividend payment as reported in the schedule of equity concerned the dividend from All for One Group SE for non-controlling interests.

Cash flow analysis

RISK REPORT

The consolidated cash flow from investment activities included investments in tangible assets and intangible assets. In the previous year the acquisition of subsidiaries less cash and cash equivalents was included. This could be attributed to the acquisition of Plastech Holding Group and UIAG Informatik- Holding Group which did not cause a cash outflow because of the contribution in kind.

The consolidated cash flow from operating activities in the business year 2019/20 amounted to € 28,352k (ABY 2019: € 17,896k).

The consolidated cash flow from financing activities amounted to € 23,463k (ABY 2019: € -2,435k). The proceeds from financial liabilities could be attributed to the IT segment. As already explained, All for One Group SE issued promissory note bonds in the amount of € 33,500k. The dividend payment was the dividend from All for One Group SE for non-controlling inter-ests. The transactions with non-controlling interests included the acquisition of 10% of the shares of Plastech Holding GmbH for € 540k in October 2019.

Cash and cash equivalents increased by € 43,454k to € 77,106k as at 30 September 2020.

EMPLOYEES

In business year 2019/20 UIAG Group had 2,631 employees (ABY 2019: 2,677 employees) on average.

UIAG's core business is the acquisition of equity stakes in companies and the financing of these com-panies. Like all types of risk financing, this business model includes above-average profit chances as well as the associated risks. The economic conduct of Unternehmens Invest AG and the recognizable value of its shareholdings in the balance sheet always depend on the economic development of the shareholdings and the stock market environment.

UIAG's business model takes the possibility of negative developments or even total loss of individual investments into account. The success of Unter-nehmens Invest AG must therefore be measured over a longer time period. All in all, the goal for investment financing projects is that long-term profits outweigh any losses. This results in an attractive return on investment over an extended time period. For details to financial instruments and financial risks please refer to the notes to the consolidated financial statements, item (29) "Financial risks".

The Management Board and the Supervisory Board are informed about the risks that may considerably influence the business development on a regular basis. UIAG's financing requirements for business year 2020/21 can - from today's point of view - be met from capital resources and an increase of loans of Knünz GmbH and Nucleus Beteiligungs GmbH.

The Management Board and the employees operate in a corporate culture which is the key element of the control environment. The company strives to improve communication and to convey the principal corporate values. The responsibilities for the internal control system were adjusted for the corporate organization to ensure a satisfying control environ-ment that meets the requirements.

The Management Board is responsible for the implementation and organization of the accounting-related internal control and risk management system and the compliance with the legal requirements.

The Management Board is responsible for the con- figuration of the hierarchy levels to ensure that activity and control of the activity are executed by different persons (principle of dual control).

In December 2020, the Oesterreichische National- bank AG (OeNB) issued their macroeconomic forecast for Austria for 2020 to 2023. Because of the COVID-19 pandemic a decline of the real gross domestic product (GDP) of 7.1% for 2020 and a growth of 3.6%, 4.0% respectively 2.2% may be expected for the years 2021 to 2023 under the presumption that a third wave of infection in spring 2021 can be avoided and that until the end of 2021 a medical solution is success-fully implemented.

Only by mid 2022 the real GDP might reach the pre-crisis level. During the summer months the Austrian economy recovered faster than expected from the deep economic downturn, however, the second wave of the COVID-19 pandemic in fall slowed the interim recovery again. The OeNB expects a significantly lower decline of the economic performance from the second lockdown than from the first one in spring 2020.

The reasons for the lower impact are minor disruptions of the global supply chains, no closures of production, learning effects and minor insecurities and a stronger optimism in the light of the imminent medical solution.

With the beginning of 2021 vaccines will be available, however an effective global implementation will take time and will probably not be completed before the beginning of 2022. Only a gradual relaxing of regulations is expected. The economic activity will be burdened by the pandemic in the first quarter 2021 and still - also slightly less - in the second quarter of 2021 (source: OeNB, 11 December 2020).

For 2021 the VDMA (Mechanical Engineering

Industry) expects an increase in production of 4% after the COVID-19 crisis year and the anticipated decline of production. However, this forecast is rather uncertain, since mechanical and plant engineering is particularly affected by the uncertainties of the global economy. Protectionism and fast structural changes of the important customer industry vehicle construction are added. Still, the VDMA sees potential in the economic accelerating after COVID-19, the speed-up of the technological change and the climate protection, which remains a European key objective.

The global risk increases considerably from extensive effects of the COVID-19 pandemic but also from the economic and political developments caused by trade barriers and geopolitical tensions, high insecurity from the Brexit and the decline in demand in the automotive industry. These factors burden the core markets (Austria, Germany, Switzerland, USA and China) of Unternehmens Invest AG and its shareholdings.

The mechanical engineering industry and the auto-motive industry depend heavily on exports and their development is defined by the global sales and procurement markets and their market access. Social developments like the advancing e-mobility and tighter regulatory requirements for climate protection, energy management and pollutant emission can influence the business development. The considera- tion of sustainability aspects such as the compliance with environmental, social, and ethical standards, changes of laws and regulations and their interpre-tation for tax and accounting and the overall increasing of regulations for capital market-oriented companies may cause risks.

IT segment

The risk situation for All for One Group SE changed further and more decisively than previously expected because of the COVID-19 pandemic. Risks associated with social, political, overall economic and regulatory developments are considered "high". After a severe macroeconomic slump in 2020 economy shall pick up again in 2021. The high transformation pressure will continue, and the digitalization of business processes and business models will increase.

In the environment of volatile markets, the economic risks for the business performance of All for One Group SE is high. Measures to contain COVID-19 may be sustained for longer periods and might deepen the global recession. For the Austrian, German and Swiss market, and in particular with regard to export-dependent key industries as mechanical engineering and construction and the automotive industry, the effects of the future economic development are extremely difficult to assess.

a mid- and long-term trend. All for One Group SE aligns their range of service and organization with the dynamics of these trends.

The already completed initialization of the strategy offensive 2022 is the basis for profitable growth for All for One Group SE to emerge from the COVID-19 crisis in a stronger competitive standing than before as soon as the markets have recovered.

Plastic segment

The COVID-19 crisis and its effects hugely affect the mechanical engineering and construction industry and the German VDMA expects a production slump of 14% for 2020. In addition, trade barriers and geopolitical tensions and significant changes impede the global investment decisions and in particular the automotive sector. The political and economic development is a risk for the production sites and the relevant buyer markets.

The deep recession caused by the COVID-19 pandemic increases the risks of bad debt and customer insol-vencies. Insolvencies among the customer base are to be expected. Finance and liquidity risks are considered "medium" as the refinancing of All for One Group SE might become increasingly difficult depending on the development of the capital markets. However, All for One Group SE is confident to comply with the covenants governing the promissory note bonds.

Project realization might have to face significant impediments in future. Risk-mitigating is the fact that projects may be postponed temporarily but are unlikely to be suspended permanently because of the increas-ing pressure to implement digitalization. The remote implementation of major projects is already increasing.

The digitalization of workflows, the generation change to the new enterprise software SAP S/4HANA combined with departmental solutions from the cloud will continue during COVID-19 and remainKautex Holding Group has sites in Germany, China and the USA which were affected to varying degrees over the course of the pandemic. At the beginning of the COVID-19 pandemic the plant in China was partic-ularly affected. The measures implemented there to avoid negative impacts for employees and production were adopted later also in the plants in Germany and the USA. The decentralized organizational structure of commissioning and service made it possible to support customers on-site during the phase of com-prehensive travel restrictions.

Market risks are caused by an increasingly weakening economy and the development of the COVID-19 pandemic. The segments packaging and specialties were already put into focus in the previous year to reduce the dependency of the automotive sector. Both sectors currently register an increased demand for hygiene products.

As already reported, Plastech Holding Group cannot escape the effects of the COVID-19 pandemic either and registers postponements of machine orders and machine acceptances. The risk of further postpone- ments is considered "high". Since March 2020 remote machine acceptances were introduced, which were accepted very positively by the customers of Kautex Holding Group. The capacities in the Plastic segment were adjusted in the business year 2019/20 to meet the current and future expected order intake, the process organization to strengthen the customer orientation and faster innovation procedures were further optimized and distribution and production processes advanced.

In addition to the effects from the COVID-19 pandemic the ongoing trade disputes between China and USA might cause higher tariffs and trade barriers burden the global investment decisions which increase the eco- nomic risks for 2020 and 2021 considerably compared to previous years.

Depending on the duration of the recession in the most important global industrialized countries negative effects on the growth plans of Plastech Holding Group and the compliance with financial figures may be affected negatively, which is an additional risk for the group.

Furthermore, the Plastic segment depends on the exchange rate development of the US Dollar, in particular regarding the exports to USA. However, currency risks are hedged and therefore the risk is considered "low".

The elevated risks from a possible increase of bad debts were met by hedging of large-scale orders.

Comprehensive measures to adjust cost and secure liquidity were already resolved in the previous year and now implemented to counteract the increased financial and liquidity risks. Depending on the develop- ment of the COVID-19 pandemic and its global effects the budget auf Kautex Holding Group may deviate.

This may lead to a breach of agreed financial key figures and credit liabilities. Even if the EBIT of Kautex Holding Group declines by 50% in business year 2020/21 compared to the original planning, Kautex Holding Group will be able to achieve an EBIT that corresponds to the financial key figures from Septem-ber 2021 on. The risk is considered "medium".

Other segment

The main risk for the Other segment is material shortage caused by delivery delays as already noted during the business year. Therefore, the stock level of essential vendor parts was increased to meet material shortages in production early on. The risk is considered "high".

Pongratz Group is at risk from further governmental mandated closing of dealers. As already reported distributors of Pongratz Group in all significant markets were closed for several weeks in mid-March 2020.

Consequently, distribution might be affected strongly.

The risk is classified as "medium".

The negative effects of the COVID-19 pandemic might postpone new developments in the automotive sector which is a risk of order income for BEGALOM. The risk is considered "medium".

In production the risk that a machine already sold to a customer does not perform as was contractually promised exists. This risk is countered by stringent risk analysis as early as in the bidding phase. The risk is considered "low".

UIAG segment

The risk for UIAG is the impairment of goodwill or other financial assets if the current estimates and planning regarding the development and the effects of the COVID-19 pandemic change. Also, the risk of increased impairment caused by capital cost based on the impair-ment tests may rise.

NON-FINANCIAL PERFORMANCE INDICATORS

Business model of Unternehmens Invest AG

Unternehmens Invest AG is an industrial holding listed in the "Standard Market Auction" segment of the Vienna Stock Exchange. Its operational approach focuses on medium-sized enterprises. Unternehmens Invest AG is an active investor with long-term investment strategy and is interested in national and international medium-sized enterprises that are in a crisis, have restructuring requirement, are underper-forming, or search for succession. The preference is on companies with strong brands (B2C or B2B) and significant potential for development by operative support.

Unternehmens Invest AG supports a long-term invest-ment policy and an entrepreneurial approach by provision of liquidity and operative know how, without the immediate intention to exit. Unternehmens Invest AG as owner assumes entrepreneurial responsibility and invests in the long-term success of its subsidiaries focusing on their strategic, operative, and financial restructuring, the improvement of performance and earnings, growth of top-line and growth strategies, the long-term development of buy & build strategies and their potential of internationalization.

Business models of shareholdings

IT segment

All for One Group SE is a leading consulting and IT group and valued digitalization partner in the German-speaking midmarket. All for One Group SE is listed in the Prime Standard market of the Frankfurt stock exchange. Their business model is to combine know how in business processes, technology, and strategy and to provide comprehensive advice on digitalization for all operating divisions of their customers. This includes strategic and management consulting, process and service innovation, process consulting in all disciplines, business organization and culture, new work, digital supply chain, customer experiences and employee experience. All for One Group SE published their non-financial group report for the business year 2019/20 on 16 December 2020.

Plastic segment

Kautex Holding GmbH in Bonn/Germany is a holding company and actively manages its subsidiaries. Kautex Maschinenbau GmbH (Bonn/Germany) and Shunde Kautex Plastics Technology Co., Ltd. (Shunde/ China) are the operating companies. In addition to these two manufacturing companies, distribution companies in the USA, Russia, Hong Kong and Mexico exist.

As a holding company Unternehmens Invest AG combines shareholdings from different sectors, that are divided into the four segments IT (UIAG Infor-matik-Holding GmbH, All for One Group SE and their subsidiaries), Plastic (Plastech Holding GmbH, Plastech Beteiligungs GmbH, Kautex Holding Group, BAGE Recycling GmbH - until July 2020), Other (BEGALOM Guss GmbH, Pongratz Trailer-Group GmbH) and UIAG (individual company).

Kautex Holding Group is a global leading manufac-turer of intelligent production solutions for blow mold-ing. Kautex's product portfolio includes blow-molding machines in various sizes for different applications in four segments (automotive, industrial packaging, consumer packaging and special applications). Kautex builds its technology leadership by constant develop-ment activities and supports their customers by innovative solutions that sustainably reduce the produc-tion and item cost.

NON-FINANCIAL PERFORMANCE INDICATORS

BEGALOM Guss GmbH is the leader for model and form building, aluminum casting and for processing/ surface treatment and finishing. Their products are used worldwide in the automobile and utility vehicle industries, in mechanical engineering and plant construction, braking technology, motorsports and for track vehicles.

Other segment

Pongratz Trailer-Group GmbH is the leading manu-facturer for trailers. Besides their standard range which includes flatbed trailers, uploaders, dump trailers, car carriers or boat trailers Pongratz provides a huge range of accessories and offers custom-made trailers.

is supported to save resources and reduce abrasion. This is only possible if the employees have the required know how, therefore their professional and personnel development is supported.

The commitment and expertise of the employees is the basis for the business success. The company culture is characterized by responsibly, commitment, flexibility, and teamwork.

An annual medical examination and regular visits by a safety specialist are carried out at the share- holdings. Safety officers and first aiders are appointed at the subsidiaries.

The primary target of the business development is the increase of the enterprise value and profitable growth. The required planning and related measures for the steering of the shareholdings derives from the long-term business planning.

Environmental, social and employee issues

Unternehmens Invest AG and its shareholdings strive for a sustainable growth of the company value considering all relevant, economic, ecologic, and social aspects. The sustainable development of the holding company and its shareholdings is supported to comply with the responsibilities towards employees, customers, suppliers, society, and environment. This is supported by management decisions that consider community interests and social responsibility, as well as the active involvement of employees in various decisions of the group shareholdings.

The shareholdings meet the environmentally relevant requirements, statutory provisions, regulations, and notifications. Employees are thoroughly informed on environmental, health and security concerns.

The development of sustainable technology and the continuous improvement of all production processesWhereas BEGALOM and Pongratz Group have the medical examination and checks from the safety specialists outsourced to the Austrian Social Insurance for Occupational Risks (AUVA), Kautex Holding Group in Germany has a medical officer on site. For the workplace health promotion of their employees Kautex Holding Group set up a plan for 2021 to support their employees' fitness. The program includes cooperation with fitness centers and outdoor sports parks.

With the current business year UIAG group imple- mented the health index as an indicator for employee matters. The health index is calculated as follows: "100% minus the ratio of number of days off sick to target workdays in the reporting period". As at 30 September 2020, the health index for each segment was as follows:

¹) The Plastic segment only considers the site in Germany, since it has the majority of employees

Trainings in the respective departments and a con-tinuing education of soft skills are organized by means of training plans or whenever required. In addition, suggestions for further education from employees are considered. Trainings regarding new developments in compliance, IT-security and data security are made as needed.

Kautex Holding Group established a qualification catalog offering their employees education opportunities apart from the training in their respective departments that includes leadership qualification and intercultural training. Kautex Holding Group also supports individual qualification activities of their employees with trainings such as "from employee to manager" or "from unskilled worker to warehouse logistics specialist", but also the extra-professional business studies. As at 30 Septem-ber 2020 Kautex Holding Group employs 19 apprentices and offers numerous possibilities for training profes- sions (e.g. electronic technicians for industrial engineer-ing, industrial technician).

To promote the compatibility of work and family, employees are offered the opportunity to take part-time work on a temporary basis or to share parental leave.

The employees by country break down as follows in the business year 2019/20:

Employees by country in 2019/20

USA 0.6%Others 5.2%Austria 7.4%

Effects of the COVID-19 pandemic on employee issues

The business year 2019/20 was characterized by the significant consequences of the global COVID-19 pandemic in terms of employee matters. The pandemic has changed the way we work considerably.

In the business year 2019/20, the employees were distributed by segment as follows:

Employees by segment in 2019/20

Other segment 8.2%UIAG segment 0.3%

Wherever possible the shareholdings offered the opportunities of flexibilie working hours and working place. Employees were encouraged to work in home- office and reduce their working hours at the office. The possibility to work remote and to hold trainings online or video conferences reduced the travel activity considerably. The increased digitalization of business processed reduced e.g. the demand for paper and print volumes.

IT segment 69.9%

Currently a home-office concept is developed to offer the employees the opportunity to take up the changed working style in the home-office even after the end of the COVID-19 pandemic. The concept will differ depending on the requirements of the respective share-holding.

NON-FINANCIAL PERFORMANCE INDICATORS

In March 2020 the production facilities started to work on concepts to ensure a production compliant with security measures for the employees during the COVID-19 pandemic. The employees were informed in detail about all COVID-19 measures. The various safety measures (disinfectant, FFP2 masks) are pro- vided, and hygiene measures were increased (cleaning, disinfection and airing). The employees of the share-holdings were instructed how to contact customers and suppliers and encouraged to hold virtual meetings.

Wherever possible shift working hours were adjusted to avoid overlapping.

BEGALOM shortened the shifts by one hour to avoid overlapping between the shifts and adjusted the break times. Pongratz implemented a comprehensive and detailed safety program for the production workers, e.g. modulated work time and separation of work places. Kautex Holding Group adjusted the shifts in production and enables home-office for 200 employees.

The Austrian companies applied for the government support of short-time work to avoid the reduction of employees during the COVID-19 pandemic. BEGALOM, Pongratz Group and UIAG implemented short-time work and received approximately € 403k of subsidies for short-time work.

The increase of efficiency and a preferably thorough utilization of raw materials and their recycling into the material cycle are an important aspect. BEGALOM optimized their production processes and can use up to 100% of the recycling aluminum with the same quality from their own production. Additionally, BEGALOM has renewed the system for compressed air supply. The new system consumes less energy by producing the same amount of air and the integral controls ensures an efficient operation.

Pongratz Group is in the process of implementing a Supply Chain Management and develops a new material flow system to optimize the work-related and infrastructural processes which shall include the auditing of suppliers in future. Also, the switch to climate-neutral production is evaluated. The aluminum scrap from the trailer production is already recycled completely.

The COC-certification of the Pongratz trailers confirms their compliance with EU regulations. DEKRA and KBA (Federal Motor Transport Authority) certifications ensure the compliance of the production with the requirements of the traffic law and the requirements of the KBA. Pongratz is also founding member of the TIV (Trailer Industrie Verband).

The standardization and constant development of processes reduces scrap and waste in production, adjusts cycle time and reduces cost for energy.

Environmental issues

The production processes of the shareholdings are evaluated, developed, and standardized constantly. Certifications exist in several sectors, production pro- cesses at BEGALOM are certified according to ISO 9001.

Environmental compatibility and the possibility of energy saving are considered whenever new production equipment and machinery are acquired.

Kautex Holding Group is working on innovations in the packaging segment. Plastic is considered recyclable material. Research and development are focused on sustainability, recycling and digitalization. Recent developments are new technologies that reduce the energy and material consumption in production considerably. The development of a new generation of extrusion heads shortens the time needed to change the color for the production of colored packaging (e.g. for shampoo) by one third. This reduces not only the conversion time and energy cost but also the material required for the color change.

Another newly developed production technology makes it possible to foam the center layer of blow mould parts in multiple layer blow molds and reduce the material. Kautex Holding Group was able to keep the physical properties of the parts and at the same time to reduce the weight and material used.

Kautex also develops solutions for the usage of recycled plastic to increase the sustainability of products produced with machines from Kautex Holding Group in future.

Kautex is member of the R-Cycle initiative. R-Cycle ensures the recyclability of plastic by documentation of recycling-relevant packaging properties. In the recycling process, packaging can thus be precisely identified to process the resulting recyclate into diverse and high-quality plastic products. A cloud-based database can follow the entire value chain to the raw materials used. Thus, the composition of the plastic is more transparent with is an important prerequisite for efficient recycling.

The working climate shall be based on mutual trust, everybody shall be treated with dignity and respect and people from different cultures and different personal background shall be appreciated. As an international company UIAG Group appreciates the diversity that is present in the culture, language and ideas of the employees.

The UIAG Group bans sexual harassment in any form e.g. by advances, demeaning comments, jokes, foul language, suggestive gestures or the display- ing relevant visual material in the office and produc- tion premises of UIAG Group. Such behavior might be considered harassment even if it was not meant.

These principles also apply to conduct towards external partners.

In the business year 2019/20 no indications of maladministration have been reported and there are currently no increased risks of negative effects on business activities.

Respect for human rights

Combating corruption and bribery

Unternehmens Invest AG and its shareholdings put special focus on the social interaction with employees, business partners and customers as well as autho-rities and institutions. The total compliance of all regulations and laws for the company is essential to be a responsible business partner and employer. We condemn any kind of discrimination and harassment - whether of ethnical decent, gender, religion, ideology, age or sexual orientation - and dismiss categorially any form of disrespect of human rights and expect the compliance with these principles from our business partners.

Cooperation with partners along the value chain harbors risks of unfair competition, such as influenc- ing suppliers, customers or decision-makers.

UIAG Group and its shareholdings fully comply with the respective national anti-bribery policy and the international regulations and recommendations. No conduct of business with improper means is tolerated. Sincerity, reliability and transparency are the basic benchmarks for conducting business.

A Code of Conduct was implemented to provide comprehensive conduct guidelines regarding undue gifts, corruption, and bribery. The Code of Conduct defines a regulatory framework with principles to

NON-FINANCIAL PERFORMANCE INDICATORS

adhere for the acceptance of gifts by executive bodies, management and employees and their conduct with suppliers and customers. The Code of Conduct lists contact persons in each company that can be contacted in case of doubt whether a gift can be accepted or for general compliance questions. The assessment on the appropriateness of gifts and invitations is based on the social custom and appropriateness and on the motive behind it.

The Code of Conduct is available to the employees in the shareholdings. The contact persons are listed in the appendix of the Code of Conduct.

Capital market compliance

Unterehmens Invest AG is listed at the Vienna Stock exchange and admits to its responsibility to prevent the misuse of compliance-relevant information and insider information by suitable measures and in accordance with prevailing laws and regulations.

To avoid insider trade and to comply with other relevant regulations that govern the capital market Unter-nehmens Invest AG has issued a compliance guideline for all employees and bodies with detailed instructions and support to ensure the compliance with the relevant regulations. The compliance with the Austrian Corporate Governance Code ensures a high degree of transparency for all stakeholders of the group.

In the reporting period no corruption cases became known in UIAG Group.

Due diligence

The compliance of laws, human rights, non-discrimina-tion, data security and environmental security as well as the prevention of market misuse, corruption and bribery, money laundering and terrorism financing liesin the responsibility of the respective group companies and is ensured and communicated by regular inter-action of the management. Upon violation measures are planned and implemented as needed.

Sound strategic decisions require reliable and com-plete information. Therefore, the Management Board and the management of the respective group company are supported by experts in their decisions if required. Ongoing formal and informal exchange of information between the Management Board and the management is vigilant.

Preventive measures are taken in order to achieve continuous improvement in the areas of health and safety, e.g. safety at the workplace, fire protection, machine safety and measures to ensure suitable ergonomic workplaces.

Diversity

Employees are treated equally, regardless of gender, age, religion, culture, skin color, social background, sexual orientation or nationality. The management bodies shall consist of both genders with different life experience, education and professions to ensure that decisions are assessed and discussed from different point of views and made in the best interest of the company. The candidates are selected with regard to the best possible choice or the job vacancy, unbiased by gender, age, religion and ethnic background. The equal participation of women in the company bodies, Management Board as well as Supervisory

Bord and Management of shareholdings is aspired.

To promote women Kautex Holding Group addresses interested girls on "Girls & Boys Day" to gain insight into the technical training of the company. They are accompanied by trained specialists and apprentices on their tour through production and training workshop to gain insight in production, work and training and to obtain information on possible internships at Kautex Holding Group.

Sustainability

All companies strive by strategic management and focusing on their main competences to continuously improve the working processes, the fair interaction with employees and suppliers and the process-oriented management system for the company to create added-value for the shareholders.

Since the group has production sites in various countries and continents (Austria, Germany, Slovakia, Turkey, China and USA) a huge number of nationalities is present in the group.

Data protection

The responsible handling of personal data and relevant effective measures to ensure the security of infor-mation and data have highest priority. All EU regulations for data security are complied with.

The employees are required to use personal data responsibly and apply care with the receipt, processing and storage of information (e.g. financial and tech- nical data, business information, customer information, memos). For the use and transfer of personal data a legitimate and explicit reason must exist. Various laws as well as regulations with business partners and customers determine the way data is used and trans-ferred for the provision of services. These regulations are to be adhered. For questions regarding IT security or data security each shareholding as a contact person. The contact persons are listed in the appendix of the Code of Conduct.

CORPORATE GOVERNANCE CODE

UIAG's Management Board and the Supervisory Board have clearly committed themselves to the Code of Corporate Governance. Details are available in the Corporate Governance Report (available in the financial report or on the company's webpagewww.uiag.at).

REMUNERATION REPORT

In accordance with section 78 in conjunction with section 98 of the Austrian Stock Corporation Act (AktG),

Unternehmens Invest AG sets up principles for the remuneration of the members of the Management Board and Supervisory Board, that are consistent with the business strategy, goals, values, and long-term interests of the company and include measures to avoid conflicts of interest.

The remuneration policy was resolved by the Super- visory Board on 23 January 2020, put to the vote in Annual General Meeting on 16 June 2020 and applied since then.

Unternehmens Invest AG sets up a remuneration report in accordance with section 78 of the Austrian Stock Corporation Act (AktG) for the first time in business year 2019/20. The remuneration report is available on the website of Unternehmens Invest AG (www.uiag.at).

DISCLOSURE IN ACCORDANCE WITH ARTICLE 243A UGB

RESEARCH AND DEVELOPMENT

In the business year 2019/20 in the Plastic segment and particular by Kautex Holding Group research and development projects were continued, partially finished and new projects started. As at 30 September 2020 approximately 89 employees (30 September 2019: 64 employees) were engaged in research and develop-ment. Because of the internal reorganization of the R&D department of Kautex Holding Group the numbers can only be compared to a limited extent. The expenses for research in business year 2019/20 amounted to € 2,177k (ABY 2019: € 1,800k). Expenses for develop-ment in the amount of € 1,558k (ABY 2019: € 1,917k) were capitalized for product-capable developments, mainly for a new generation of extrusion heads for the manufacturing of bottles and canisters from plastic using the extrusion blow molding technique with shorter color change time, reduction of material use and more energy efficiency. In business year 2019/20 the R&D department was divided into five segments which guarantees to be able to emphasize on the respective focus. The integration of the R&D department of the subsidiary in China was emphasized to make better use of synergies.

On 16 December 2020 Unternehmens Invest AG acquired 10,000 shares of All for One Group SE at a price of € 52.00 per share. Thus, Unternehmens Invest AG now holds 1,258,823 shares or 25.27%.

In December 2020 Plastech Holding GmbH acquired 3.35% of Kautex Holding GmbH executing option rights. The purchase price was € 193k.

DISCLOSURE IN ACCORDANCE WITH ARTICLE 243A UGB

UIAG shareholder structure

As at 30 September 2020 the share capital of Unter-nehmens Invest AG amounted to € 46,303,771.39 and was divided into 6,369,157 no par value shares with a pro rata share capital of € 7.27. As at 1 September 2020, the shares are listed in the Standard Market Auction of the Vienna Stock Exchange.

As at 30 September 2020 the shareholder structure was as follows:

Apart from that UIAG Group did not perform any significant R&D activities.

SIGNIFICANT EVENTS

AFTER THE BALANCE SHEET DATE

In December 2020 Unternehmens Invest AG used € 1,000k from the credit lines granted by Knünz GmbH and Nucleus Beteiligungs GmbH. In total € 19,420k of the credit lines are used.

Knünz Invest Beteiligungs GmbH Knünz GmbH Nucleus Beteiligungs GmbH Paul Neumann Bernd Neumann QINO Pipe One Ltd. Free float

30 Sep 2019

34.33% 36.20%

11.52% 11.39%

19.76% 17.82%

14.00% 13.89%

9.85% 9.82%

7.21% 7.21%

3.33% 3.67%

The voting rights of Knünz GmbH executed indirectly via Knünz Invest Beteiligungs GmbH (34.33%) and directly via Knünz GmbH (11.52%) amounted to 45.85% as at 30 September 2020.

Nucleus Beteiligungs GmbH - Paul Neumann is the owner and holds 100% - held 19.76% of the UIAG shares and Paul Neumann held directly another 14.00% at

30 September 2020 (in total 33.76%). Bernd Neumann holds 9.85% UIAG shares and QINO Pipe One Ltd. holds 7.21%, the remaining 3.33% of the UIAG shares were free float.

Development of the UIAG share

During the business year 2019/20, the price of UIAG shares developed from € 18.70 (starting price of 1 October 2019) to € 16.00 (closing price on

30 September 2020). The business year's high was € 18.90, and the year's low € 15.00.

Development of the UIAG share in 2019/20

120%

Q1

Q2

Q3

Q4

UIAG

ATX indexed

There are no restrictions regarding voting rights or transferring of shares.

No compensation agreements exist between the company, the Management Board and the Supervisory Board in case of a change of control. There are no further significant agreements that would be impacted by a change of control or takeover bid.

OUTLOOK

The current dynamic development of the COVID-19 pandemic strongly affects the global economic development and sets the framework for the business performance of Unternehmens Invest AG. The progress of Unternehmens Invest AG depends strongly on the development of its shareholdings. The business year 2020/21 is burdened with significant uncertainties from the COVID-19 pandemic and the global economic development.

Out of necessity we have to refer in our assessment of the situation to a certain time since economic forecasts that were made only weeks ago have to be revised because of new lockdowns and our perception is a snapshot only.

Our shareholdings operate in a multitude of markets and regions and the disruptions in the individual segments, above all in the automotive sector, and in several geographical markets affected them in different ways and varying intensity.

China and the USA send positive economic signals and the order intake there shows a slight upturn, the economic dynamics in Europe are significantly slower. We expect it to take several years until the pre-crisis level might be achieved again.

All for One Group SE assumes that the difficult market environment is likely to continue in the first half of 2020/21 and huge SAP S/4HANA projects to be post-poned, before the order intake might increase again in spring 2021 if the global pandemic eases. In total All for One Group SE expects an EBIT of € 17,500k to € 20,500k for business year 2020/21 and a slight increase in sales.

OUTLOOK

Unternehmens Invest AG will continue to consis-tently support its shareholdings in the business year 2020/21 in facing the challenges of the COVID-19 pandemic and its economic effects. The further diversification of sales markets combined with an expansion of the product portfolio and the consequent implementation of measures to increase efficiency shall enable our shareholdings to meet their defined goals for business year 2020/21.

Our business is based on a mid-term to long-term planning horizon. Although the forecast for 2020/21 is cautious because of the dynamic COVID-19 infection development and the severe economic consequences, we assess the mid-term development potential of our portfolio shareholdings positively.

Vienna, 19 January 2021

The Management Board of Unternehmens Invest AG

Chairman

Member

for the business year 2019|20 of Unternehmens Invest AG

CONSOLIDATED INCOME STATEMENT

for the business year 2019|20 of Unternehmens Invest AG

€k

1 Oct 2019- 30 Sep 2020

Note

1 Jan 2019- 30 Sep 2019 adjusted¹)

Revenues

Changes in inventories and own work capitalized Other operational income

Material expenses Personnel expenses Other operating expenses Depreciation

(01)

(02)

(03)

(04)

(05)

(06)

Income from associated companies recognized at equity Operating result (EBIT)

(08)

467,607

(1,466)

6,787

(192,151)

(204,313)

(51,012)

(37,971)

(4,407)

368,476

2,218

4,936

(149,992)

(156,961)

(41,469)

(46,287)

(759)

(16,926)

(19,838)

Interest income

Other financial and participation income Income from the valuation of callable non-controlling interests Profit before tax

(09)(10)

(11)

(5,614)5,4793,360

(4,240) 4,901 11,040

(13,701)

(8,137)

Tax expenses

Net profit for the period thereof shareholders of parent company thereof non-controlling interests

(12)

3,586(10,115)

(15,657)

5,542

2,699 (5,438)

(7,217) 1,779

Earnings per share

¹) See notes to the consolidated financial statements, item (03) "Cost of materials"

€ (1.59)

€ (0.85)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the business year 2019|20 of Unternehmens Invest AG

CONSOLIDATED BALANCE SHEET

as at 30 September 2020 of Unternehmens Invest AG

ASSETS €k

30 Sep 2020

Note

30 Sep 2019 adjusted¹)

Non-current assets Intangible assets Tangible assets

Financial assets recognized at equity Deferred taxes

Other non-current assets

Current assets Inventories

Trade receivables, other receivables and other current assets

Cash and cash equivalents

(13)

(13)

(14)

(15)

(16)

(17)

(18)

(19)

237,452

80,946

0

1,470

10,565330,433

252,150

87,312

4,407

1,137

11,831 356,837

36,71677,49277,106191,314

39,431 96,908 33,652 169,991

Total assets

¹) See notes to the consolidated financial statements, item (17) "Inventories"

521,748

526,827

CONSOLIDATED BALANCE SHEET

CONSOLIDATED

CASH FLOW STATEMENT

for the business year 2019|20 of Unternehmens Invest AG

¹) See notes to the consolidated financial statements, item (17) "Inventories"

CONSOLIDATED CASH FLOW STATEMENT

€k

Consolidated cash flow from investing activities Investments in tangible and intangible assets Acquisition of subsidiaries, less acquired cash and cash equivalents Loans to companies recognized at equity

Payments from the disposal of tangible and intangible assets Income from the disposal of associated companies

Consolidated cash flow from financial activities Raising of financial liabilities

Repayment of financial liabilities Repayment of lease liabilities

Dividends paid to non-controlling interests Transactions with non-controlling shareholders Proceeds from capital increases

Consolidated cash flow

Consolidated cash flow from operating activities Consolidated cash flow from investment activities Consolidated cash flow from financing activities Change in the liquidity of the group

1 Oct 2019- 30 Sep 2020

(8,913)

0

0

397

0(8,516)

58,713

(19,644)

(12,058)

(3,008)

(540)

023,463

28,258(8,516)23,46343,205

1 Jan 2019- 30 Sep 2019

(16,742)

30,151

(1,500)

2,202

2,543 16,654

10,745

(3,958)

(9,147)

(2,997)

(75)

2,997 (2,435)

17,896 16,654 (2,435) 32,116

Cash and cash equivalents at the beginning of the period Effects of exchange rate changes

Cash and cash equivalents at the end of the period consisting of cash and cash in bank

33,65224977,10677,106

1,564 (28) 33,652 33,652

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the business year 2019|20 of Unternehmens Invest AG

€k

Share capitalAttributable to shareholders of theProvisions including consolidated profit/loss

IAS 19 reserve

Cash flow hedge reserve

As at 1 Jan 2019

(= 31 Dec 2018 published)

Other comprehensive income Net profit for the period Total comprehensive income

Capital increase

First-time consolidation of subsidiaries with non-controlling interests

Cost of capital increase Distributions from subsidiaries Other changes

Transactions with shareholders of the parent company

As at 30 Sep 2019

30,898

0 0 0

15,406

0

0

0

0

15,406

46,304

78,249

0 (7,217)

(7,217)

37,462

0

(385)

0

660

37,737

108,769

394 (25)

(1,660) (129)

0 (1,660)

0 (129)

0 0

0 0

0 0

0 0

0 0

0 0

(1,266)

(154)As at 1 Oct 2019

(= 30 Sep 2019 published)

Other comprehensive income Net profit for the period Total comprehensive income

Acquisition of non-controlling interests Distributions from subsidiaries Transactions with shareholders of the parent company

As at 30 Sep 2020

46,304

0 0 0

0 0

0

46,304

108,769

0 (15,657)

(15,657)

(5,918)

0

(5,918)

87,194

(1,266) (154)

(23) 182

0 0

(23) 182

0 0

0 0

0 0

(1,289) 28

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

for the business year 2019|20 of Unternehmens Invest AG

(I) BASIS OF PREPARATION

Registered office and legal form of the company

Unternehmens Invest Aktiengesellschaft (the "Company" or "Unternehmens Invest AG" or "UIAG") is a listed company according to Austrian law. The company is recorded in the commercial register of the Commercial court Vienna, registry number FN 104570 f. The shares of Unternehmens Invest AG are listed at the Vienna Stock Exchange in Vienna/Austria in the segment "Standard Market Auction" (since 1 September 2020).

Unternehmens Invest AG prepares the consolidated financial statements for the largest scope of consolidated companies.

Business operation and operating segments

Unternehmens Invest AG, located in Vienna, operates as a holding company, particularly focusing on the acquisition and administration of industrial companies as well as of companies and investments in industrial companies, the management of companies and investments being part of the UIAG Group, the providing of services for these companies (group services) as well as in the field of management consultancy. All for One Group SE is the leading consulting and IT Group and partner for digitalization for medium-size enterprises in the German-speaking SAP market. The shares of All for One Group SE are listed in the Prime Standard Market of the Frankfurt stock exchange. Plastech Holding GmbH holds shareholdings in the plastics industry. The Pongratz Group manufactures trailers for various applications. BEGALOM Guss GmbH specializes in mold construction as well as in aluminium casting for high-profile prototypes and small series.

Reporting standards and general principles

The consolidated financial statements for the period of 1 October 2019 through 30 September 2020 were prepared in accordance with the International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB), and the interpretations of the International Financial Reporting Interpretations Committee (IFRIC), to the extent used in the EU. These consolidated financial statements according to IFRS are exempting consolidated financial statements in accordance with section 245a of the Austrian Commercial Code (UGB).

On 21 January 2021, the Management Board released the consolidated financial statements for review by the Super- visory Board, submission to the Annual General Meeting and subsequent publication. The Supervisory Board may - within the scope of review it is required to perform - cause changes to the consolidated financial statements.

The accounting principles applied in the consolidated financial statements of Unternehmens Invest AG correspond in principle to those applied in the previous year (abridged business year 2019).

The IASB and the IFRIC passed the following new respectively amended standards and interpretations until balance sheet date, which do not as yet have to be mandatorily applied and will not be applied in the UIAG Group prematurely.

Date of applicationStandard/change

IASBEndorsement carried out by EU

Date of application

EU

New standards and interpretations Amendments to IFRS 16,

1 Jun 2020

Yes, 9 Oct 2020

1 Jun 2020

Leases COVID 19-Related Rent Concessions Amendments to IFRS 3, Business Combinations Amendments to IFRS 9, IAS 39 and

1 Jan 2020

Yes, 21 Apr 2020

1 Jan 2020

1 Jan 2020

Yes, 15 Jan 2020

1 Jan 2020

IFRS 7, Interest Rate Benchmark Reform Amendments to IAS 1 and IAS 8, Definition of Material Amendments to References to the

1 Jan 2020

Yes, 29 Nov 2019

1 Jan 2020

1 Jan 2020

Yes, 29 Nov 2019

1 Jan 2020

Conceptual Framework in IFRS Standards Amendments to IFRS 4,

1 Jan 2021

Yes, 16 Dec 2020

1 Jan 2021

Insurance Contracts - Deferral of IFRS 9 Amendments to IAS 1

1 Jan 2023

Amendments to IFRS 3, IAS 16, IAS 37 and Annual Improvements 2018-2020

1 Jan 2022

No No

Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 (Interest Rate Benchmark Reform - Phase 2)

1 Jan 2021

No

From today's point of view no major effect on the assets, liabilities and financial position of UIAG Group is expected from the future first-time application of the above standards and interpretations.

(II) SCOPE OF CONSOLIDATION AND CONSOLIDATION METHODS

Currency translation

The items recognized in the financial statements of the consolidated entities in the group are validated based on the respective functional currency. The reporting currency of the consolidated financial statements of UIAG Group is Euro (€). Amounts are stated in thousand Euro (€k) and rounded according to the commercial rounding method. Where rounded amounts and percentages are aggregated, rounding differences may occur.

The currency translation of financial statements of foreign currency companies into the group currency is executed at the exchange rate at balance sheet date and in the income statement at the average exchange rate of the reporting period.

Exchange rate differences from the translation of monetary foreign currency items in the individual financial state-ments, arising from exchange rate fluctuations between the time of recognition of the transaction and the balance sheet date are recognized in the income statement of the respective period. Translation gains are recognized in the other operating income, translation losses in the other operating expenses.

The functional currency of consolidated companies that are not part of the European Monetary Union is their local currency. At balance sheet date assets and liabilities of these subsidiaries are translated at the record date rate into Euro. Income and expenses are converted at the floating annual average rate of the business year. Currency trans- lation differences from translation changes between business years are recognized in equity without affecting the net income.

Non-monetary items recognized at cost are translated using the historical exchange rate in the individual financial statements.

Scope of consolidation and consolidation methods

The domestic and foreign subsidiaries Unternehmens Invest AG exercises control over in accordance with IFRS 10 are included in the consolidated financial statements. The accounting of the companies included in the consolidated financial statements is based on standardized accounting principles. Therefore, the financial statements prepared according to the country specific and international specifications are adjusted to the standardized group accounting principles.

All intercompany receivables and liabilities, debts, revenues and expenses as well as cash flows from business transactions from consolidated companies were eliminated upon consolidation. Income tax effects are taken into account and deferred taxes are recognized during consolidation processes affecting the income.

Capital consolidation is carried out using the acquisition method according to IFRS 3. For each acquisition it is determined individually whether the partial-goodwill method or the full-goodwill method is applied. The goodwill is reviewed for impairment annually. The negative goodwill is recognized directly in the consolidated income statement.

Non-controlling shares of the equity capital of the consolidated companies are listed as a separate item in the group's equity. The positive and negative goodwill differences from transactions with non-controlling shareholders are offset against provisions.

Using the equity method, the shares in associated companies are recognized at cost in the consolidated financial statements plus the changes of the group's share in the net assets of the associated company after acquisition.

The goodwill of a company assessed at equity is included in the share of the carrying amount and not listed separately.

The test for a possible impairment follows the regulations in accordance with IA 28 and is executed annually or as warranted if necessary.

Income tax effects are considered for consolidation processes affecting the income statement and deferred taxes recognized where appropriate.

The scope of consolidation developed in business year 2019/20 as follows:

In October 2019 Unternehmens Invest AG acquired 10% of Plastech Holding GmbH and now holds 100% of Plastech Holding GmbH.

The companies included in the consolidated financial statement are listed in the schedule of equity interests as at 30 September 2020:

Company

Affiliated companies

Pongratz Trailer-Group GmbH, Traboch Pongratz s.r.o., Modra, Slovakia BEGALOM Guss GmbH, Altmünster

UIAG Informatik-Holding GmbH, Vienna

All for One Group SE, Filderstadt, Germany ²) Process Partner AG, St. Gallen, Switzerland All for One Steeb GmbH, Vienna

AC Automation Center Sàrl, Luxembourg

AC Automation Center SA/NV, Zaventem, Belgium All for One Steeb Yazılım Servisleri Limited Şirketi, Istanbul, Turkey

KWP INSIDE HR GmbH, Heilbronn, Germany avantum consult AG, Düsseldorf, Germany ALLFOYE Managementberatung GmbH, Düsseldorf, Germany

OSC AG, Lübeck, Germany

Grandconsult GmbH i.L., Filderstadt, Germany TalentChamp Consulting GmbH, Vienna

CDE - Communications-Data-Engineering GmbH, Hagenberg

KWP Austria GmbH, Vienna

KWP Professional Services GmbH, Hamburg, Germany

FC = Full consolidation

¹) Effective shareholding quotas from group perspective

²)

30 Sep 2020

Share¹)

99.0%

99.0%

70.08%

90.95%

47.87%

47.87%

47.87%

47.87%

47.87%

47.87%

47.87%

47.87%

47.87%

47.87%

47.87%

47.87%

47.87%

47.87%

47.87%

Method of consoli-dation

25.07% of All for One Group SE are held directly, another 25.07% are held by UIAG Informatik-Holding GmbH

30 Sep 2019

Share¹)

FC FC FC

99.0%

99.0%

70.08%

FC FC FC FC FC FC

90.95%

47.87%

47.87%

47.87%

47.87%

47.87%

FC

47.87%

FC FC

47.87%

47.87%

FC

47.87%

FC FC FC

47.87%

47.87%

47.87%

FC FC FC

47.87%

47.87%

47.87%

Method of consoli-dation

FC FC FC

FC FC FC FC FC FC

FC

FC FC

FC

FC FC FC

FC FC FC

30 Sep 2020

30 Sep 2019

Company

Share¹)Method of consoli-dationShare¹)Method of consoli-dation

TalentChamp Deutschland GmbH, München, Germany

47.87%

FC

47.87%

FC

OSC Smart Integration GmbH, Hamburg, Germany B4B Solutions GmbH, Ratingen, Germany

47.87%

47.87%

B4B Solutions GmbH, Graz

33.51%

OSC Business Xpert GmbH, Burgdorf, Germany

24.41%

FC FC FC FC

47.87%

33.51%

33.51%

24.41%

FC FC FC FC

Plastech Holding GmbH, Vienna ²)

100.0%

Plastech Beteiligungs GmbH, Vienna Kautex Holding GmbH, Bonn, Germany 3) Kautex Maschinenbau GmbH, Bonn, Germany 3) Plastomo GmbH, Bonn, Germany 3)

100.0%

100.0%

100.0%

100.0%

Kautex Machines, Inc., North Branch New Jersey, USA 3) Shunde Kautex Plastics Technology Co., Ltd.,

100.0%

FC FC FC FC FC FC

90.0%

90.0%

90.0%

90.0%

90.0%

90.0%

FC FC FC FC FC FC

100.0%

FC

90.0%

FC

Shunde, China 3)

OOO Kautex Maschinenbau Rus, Moscow, Russia 3) Kautex Machines (HK) Co. Ltd., Hong Kong, China 3) Kautex Machines Mexico, S.A. DE C.V.,

100.0%

100.0%

FC FC

90.0%

90.0%

FC FC

100.0%

FC

90.0%

FC

Santa Cruz Acatlan, Mexico 3)

Associated companies

BAGE Recycling GmbH, St. Marien bei Neuhofen 4)

-

-

22.59%

AE

Other non-current financial assets

Pongratz s.r.o., Kralovice, Czech Republic 5) UIAG Beteiligungs GmbH, Vienna 5)

99.0% 100.0%FV P&L FV P&L

99.0% 100.0%FV P&L FV P&L

FC = Full consolidationAE = At equityFV P&L = At fair value through profit or loss

• ¹) Effective shareholding quotas from group perspective

• ²) 10% of Plastech Holding GmbH was acquired in October 2019

• 3) Legally 86.7% of the share of Kautex Holding GmbH are held by Plastech Beteiligungs GmbH; due to an option agreement 100% of the share of Kautex Holding GmbH is recognized in the consolidated financial statement

• 4) Shareholding was sold in July 2020

• 5) Not fully consolidated due to immateriality

Estimates and uncertainties in cases of discretionary decisions and assumptions

To a certain extent, estimates and discretionary decisions have to be made in the consolidated financial state- ments. These have an impact on the balance sheet assets and liabilities, the disclosure of contingent liabilities at the balance sheet date, and the reporting of expenses and income in the business year.

The key estimates, assessments and discretionary decisions are subject to heightened uncertainty because of the global economic effects of the COVID-19 pandemic. The pandemic which intensified in December 2019, makes its effects on the global economy still difficult to assess. Consequently, the amounts actually arising in future might deviate from the assessments.

Unternehmens Invest AG continuously reviews the estimates and discretionary decisions made. Changes of estimates and discretionary decisions are recognized in the income statement if more accurate insight is gained.

The COVID-19 pandemic may affect the accounting and valuation of various scopes of the consolidated financial statements of Unternehmens Invest AG and may impede discretionary decisions and increase uncertainties. These possible effects are explained in the respective notes to the consolidated financial statements, in particular in the notes to the consolidated financial statements, item (13) "Intangible assets, goodwill, tangible assets, impairment and lease" and item (18) "Trade receivables, other receivables and other current assets".

Discretionary decisions and uncertainties exist in particular:

- on the evaluation of goodwill and other intangible assets (notes to the consolidated financial statements, item (13) "Intangible assets, goodwill, tangible assets, impairment and lease"),

-

on the evaluation of the lease terms, if the execution of renewal options is reasonably certain (notes to the consolidated financial statements, item (13) "Intangible assets, goodwill, tangible assets, impairment and lease"),

• - on the evaluation of receivables and inventories (notes to the consolidated financial statements, items (17) "Inventories" and (18) "Trade receivables, other receivables and other current assets"),

• - on the recognition and evaluation of long-term employee benefit obligations, provisions for guarantees, warranties and impending losses (notes to the consolidated financial statements, items (24) "Personnel obligations", (25) "Other non-current liabilities" and (28) "Provisions"),

• - the assessment of the realizability of deferred taxes (notes to the consolidated financial statements, item (15) "Deferred tax assets and tax liabilities") and

• - the realization of revenues (notes to the consolidated financial statements, item (01) "Revenues").

Going concern

There are no indications that require deviation from the assumption of going concern. As at 30 September 2020 the equity of Unternehmens Invest AG amounts to € 183,548k (equity ratio 35.18%) and cash and cash equivalent amount to € 77,106k. In addition, a positive cash flow is reported (see "Consolidated cash flow statement").

(III) NOTES TO THE CONSOLIDATED INCOME STATEMENT

The consolidated income statement is prepared using the total cost method. Due to the transition of the balance sheet date from 31 December to 30 September and the forming of an abridged business year 2019 (9 months,

1 January to 30 September 2019) the previous year's figures can only be compared to a limited extent. The business year 2019/20 comprises the period of twelve months from 1 October 2019 to 30 September 2020.

(01) REVENUES

Accounting and valuation methods

Revenue recognition

Apart from customer specific project orders the revenues are recognized at the time the customer gains control over the agreed finished goods and merchandise. Generally, at the time of delivery of the goods or merchandise.

Revenue recognition in the IT segment derives from the sale of software licenses and other IT products at the transfer of use. Revenues in the Plastic segment are recognized for the delivery of spare parts and installation services at the time the goods or merchandise are delivered according to incoterms (transfer of the goods to the carrier or free alongside ship), the services were rendered (usually existence of acceptance protocol), or the legal ownership and the risk of loss according to the incoterms agreed, was transferred. Invoices for the performed services are due immediately or have short-term payment due dates up to 60 days.

Contract assets are recognized in the balance sheet in the item "Other assets" respectively "Other liabilities" and divided by maturity.

For the cost of contract acquisition UIAG Group exercises the option of immediate recognition of expenses provided that the amortization period would be less than one year. The cost of contract acquisition is recognized in the balance sheet under "Other assets" and classified according to term.

Project orders

Project orders are customer-specific services without alternative use; therefore, a period-based revenue recognition is applied. The stage of completion is determined according to the ratio of cost incurred to the estimated overall cost using the cost-to-cost method.

If an unconditional claim of consideration exists trade receivables are recognized. Otherwise, the receivables are recognized as contract asset less partial payments received. The balancing is based on the individual agreements. If the partial payments received of a contract exceed the contract asset a contract liability is recognized. If impending losses arise from a contract, they are recognized as provisions.

Estimates and assumptions

In regard to revenue recognition significant discretionary judgments are made when determining the contract unit for accounting purposes (contract collation), when defining separate performance obligations, when determining the timing of completion of the performance obligations (together with determination of the method for measuring performance progress where applicable), when determining individual sales prices, when assessing significant financing components and when capitalizing contract acquisition cost.

Estimates are required to determine the total cost. In case of customer-specific and time-phased consultancy projects in the IT segment the input-based efforts expended method is basically most suitable to measure performance progress since a direct connection between consultancy services already provided by UIAG Informatik-Holding Group (e.g. consultancy hours worked up to closing date) and the transfer of the right of disposal to customer exists. In the Plastic segment the time-phased revenue recognition is made depending on the stage of completion for machinery made to custom order. The stage of completion is determined according to cost incurred to expected total cost (cost-to-cost method). The profit from the manufacturing order is realized based on the determined stage of completion. The assessments regarding the estimated total cost, the estimated total revenues, the order-related risks (including technical, political, and regulatory risks) and the performance progress are based on empirical values and are continuously assessed and adjusted.

Contract acquisition cost: Determining both the scope of the contract acquisition cost to be capitalized and the amortization period can involve considerable discretionary judgement in individual instances. UIAG Group choose the method of immediate recognition of expenses if the period of amortization would be less than one year.

The revenues of the individual segments according to region are as follows:

Revenues in the IT segment derive from the sale of software licenses and the rendering of specific IT services (cloud contracts, outsourcing and managed services, software maintenance contracts, software implementing and - optimizing projects, management and technology consultancy, training services). The revenues in the Plastic segment mainly derive from the sale of machinery and equipment for the processing of plastic and the sale of related services, spare parts and accessory parts. The Other segment includes revenues from Pongratz Group from the sale of trailers and from BEGALOM Guss GmbH from mould construction and from aluminum die-casting for prototypes and small-series.

Revenues are solely revenues from contracts with customers according to IFRS 15.

(02) OTHER OPERATIONAL INCOME

€k

BY 2019/20

ABY 2019

Income from currency differences

1,414 857

Advertising and marketing reimbursement from partners Investment tax credits (public sector),

994 930

792 389

research premium and other subsidies Insurance income

595 13

Income from co-payments from employees Reversal of provisions

400 251

201 140

Income from lease Warranty provisions Other income

64 48

0 1,016

2,327 1,292

6,787 4,936

"Investment tax credits (public sector), research premium and other subsidies" can be broken down as follows:

€k

BY 2019/20

ABY 2019

Income from short-time working allowances (Other segment and UIAG segment)

403 0

Investment tax credits (public sector) in the IT segment Research premium

309 295

33 65

Other income

47 29

792 389

The income from short-time allowance resulted from the claim of government-supported short-time work- ing arrangements related to the COVID-19 pandemic in the Austrian companies in the segments Other and UIAG.

(03) COST OF MATERIALS

In the IT segment the reporting methods of expenses were changed to improve the presentation. Because of the reorientation of the business model of All for One Group SE the other operational expenses included the expenses for the operation of the data center (in "expenses for data processing and IT") are now reported as purchased services

and included in the purchase services of material cost. To improve the comparability previous years' figures were adjusted accordingly. The effect from the adjustment amounts to € 10,873k for business year 2019/20 and to € 9,038k for the abridged business year 2019.

(04) PERSONNEL EXPENSES

(05) OTHER OPERATING EXPENSES

Because of the change of the reporting methods for the IT segment (see notes to the consolidated financial state- ments, item (03) "Cost of materials") previous years' expenses for data processing and IT were adjusted accordingly. The effect from the reclassification amounts to € 10,873k in business year 2019/20 and to € 9,038k in the abridged business year 2019.

(06) DEPRECIATION

Depreciation and impairment on intangible assets and tangible assets are itemized in the "Schedule of move-ments in the consolidated assets". The depreciation of intangible assets includes an impairment of the goodwill of the cash generating unit (CGU) Plastech Holding Group in the amount of € 6,050k (30 September 2019: € 18,084k) (see notes to the consolidated financial statement, item (13) "Intangible assets, goodwill, tangible assets, impairment and lease").

(07) EXPENSES FOR THE AUDITOR

Expenses for the auditor KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft for the business year 2019/20 for the audit of the consolidated financial statements amount to € 62k (30 September 2019: € 104k). Other confirmation services amount to € 6k (30 September 2019: € 25k), other audit related services amount to € 4k (30 September 2019: € 6k).

(08) INCOME FROM ASSOCIATED COMPANIES RECOGNIZED AT EQUITY

The income from associated companies recognized at equity include the current income from the associated company BAGE Recycling GmbH in the amount of € -594k. The shareholding was sold for € 1.00 at the beginning of July 2020.

The income from associated companies also includes the impairment of the shareholding of BAGE Recycling GmbH in the amount of € 3,813k. Because of the existence of the impairment trigger COVID-19 Pandemic as at 31 March 2020 the share of the associated company BAGE Recycling GmbH was tested for impairment. The impairment test is based on the planning with a planning period of 3.5 years. The usage value of BAGE Recycling GmbH was calculated using the discounted cash flow method based on the pre-tax WACC. As at 31 March 2020 the WACC is 9.94%.

The impairment recognized of a book value of € 0k is mainly based on the current and expected loss situation and corresponds with the sale price realized on July 2020.

(09) INTEREST INCOME

The bank loan of Plastech Beteiligungs GmbH (Plastic segment) with the nominal amount of € 14,000k was acquired by Unternehmens Invest AG in March 2020 for a purchase price of € 8,400k by way of an earn-out agreement. Unter- nehmens Invest AG grants the amount as long-term shareholder loan to Plastech Beteiligungs GmbH. Therefore, the consolidated financial statements show an income from the repayment of financial debt in the amount of € 5,600k.

The earn-out agreement defines that the difference between the nominal amount and the preliminary purchase price with stipulated discounts must be paid if Kautex Holding Group (Plastic segment) achieves defined earnings targets. The estimated probable amount of recovery must be recognized as provision, whereby the estimate at 30 September 2020 does not account for a subsequent payment.

In the previous year the other financial and participation result mainly included the result from the re-evaluation of the shares of UIAG Informatik-Holding GmbH, All for One Group SE and Plastech Holding GmbH as at 31 December 2018, which amounted to € 2,602k. In addition, the result from the sale of the associated company LCS Holding

GmbH in the amount of € 2,025k and the dividend received for the business year 2018 after the sale of the shareholding in the amount of € 276k.

(11) INCOME FROM THE VALUATION OF CALLABLE NON-CONTROLLING INTERESTS

The option rights agreed in the course of the acquisition of Kautex Holding Group allow UIAG Group to acquire or sell the remaining 13.3% (30 September 2019: 25.05%) of the shares. In the current business year 11.75% of shares of Kautex Holding Group were acquired at a purchase price of € 421k. From the evaluation at balance sheet date an amount of € 3,360k (ABY 2019: € 11,040k) was recognized in the income statement. For further information on the accounting and valuation methods refer to the notes of the consolidated financial statements, item (25) "Other non-current liabilities".

(12) TAX EXPENSES/-INCOME

Taxes on income and earnings, which are paid or owed by the various companies as well as deferred taxes, are recognized as tax expenses or income.

€k

BY 2019/20

ABY 2019

Actual tax expenses/-income according to the consolidated income statement

(6,214) 121

Deferred taxes according to the consolidated income statement

9,800 2,578

3,586 2,699

The deferred tax income mainly results from the capitalization of losses carried forward in the Plastic segment and the reversal of temporary differences from the re-evaluation of the identifiable assets and liabilities in the IT segment and the Plastic segment.

During the period of 1 October 2019 through 30 September 2020 aperiodical taxes in the amount of € 289k arose.

The Austrian tax rate of 25% was applied as group tax rate in the reporting period. The tax rates applied for the calculation of deferred taxes on group level was 25%.

In accordance with the group and tax compensation agreement of 28 August 2019 a tax group of companies was established with Unternehmens Invest AG as group parent. Members of the tax group are currently Plastech Holding GmbH, Plastech Beteiligungs GmbH, UIAG Informatik-Holding GmbH, BEGALOM Guss GmbH and Pongratz Trailer-Group GmbH.

The taxable results of the group members are attributed to the group parent. A taxable revenue adjustment between the group parent and the group members is administered by tax compensation agreements.

NOTES TO THE CONSOLIDATED BALANCE SHEET

The difference between the calculative tax expenses (profit before tax multiplied with the expected tax rate of 25%) and tax expenses for the abridged business year in accordance with the group income statement can be broken down as follows:

(13) INTANGIBLE ASSETS, GOODWILL, TANGIBLE ASSETS, IMPAIRMENT AND LEASE

Accounting and valuation methods

Intangible assets

Goodwill: In accordance with IAS 36 goodwill shall not be subject to scheduled amortization but to an annual impairment test - whether or not impairment is indicated. Cash generating units (CGU) to which a goodwill has been allocated are BEGALOM, Plastech Holding Group (Plastic segment) and UIAG Informatik-Holding Group (IT segment). The impairment test compares the recoverable amount of a cash generating unit to the carrying amount includ-ing goodwill, corresponding to the higher of the net selling price or value in use. If required, the operating assets are impaired to the lower value in use unless a higher fair value less costs to sell is available.

To determine the recoverable amount of the cash generating units the capital value oriented discounted cash flow method (DCF method) was used. Based on cash flows derived from the current mid-term planning for the next three respectively four business years.

Trademark rights, customer relationships and other intangible assets: Trademark rights are corporate brands acquired through business combinations that generally do not have a life cycle, e.g. product brands, customer relation-ships and other intangible assets.

Customer relationships refer to customer bases acquired through business combinations.

Tangible assets

Tangible assets are evaluated at acquisition cost less cumulative depreciation and impairment expenses. Gains and losses from the disposal are recognized in the operating income and expenses.

Interest on debt were not recognized in business year 2019/20 since no qualified assets were acquired.

Accounting of lease

Lease payments are discounted with the interest rate that is implied by the lease if it can be determined. Otherwise, they are discounted with an incremental borrowing rate. Usually, the group uses the incremental borrowing rate as discounting rate.

Subsequent valuation is made at amortized cost. For the depreciation to usage rights over the term of the contract the straight-line depreciation method is applied.

For low-value lease objects and short-term lease contracts (less than twelve months) facilitations for implementation are applied and payments recognized as an expense in the income statement using the straight-line method.

Several leases, for real estate in particular, include options for renewal and termination. These options allow utmost flexibility. Upon determination of contract term all facts are considered that provide economic incentive to execute the option for renewal or the non-execution of the option for termination. Changes of contract term from the execution respectively non-execution of such options are only considered if they are reasonably certain.

Lease receivables recognize amounts to be paid by lessees from lease agreements in the amount of the net invest-ment of the lease contracts. The income from lease is allocated to the respective reporting period to ensure a constant periodic rate of interest of the outstanding net investments from lease.

Government grants

Government grants are taken into account as soon as there is assurance that they will be received and accounted for based on the depreciation of the underlying asset. Unternehmens Invest AG did not receive any considerable govern- ment grants in the business year 2019/20. Government grants are reported as other non-current liabilities.

Other subsidies from public funds to reimburse the group for costs are recognized as other operating income in the period in which the related costs are incurred, unless the grant is contingent on conditions that are not yet sufficiently likely to be met. In the business year 2019/20 the Other segment and the UIAG segment received short-time allowance in the amount of € 403k (ABY 2019: € 0k).

Goodwill: Assumptions to determine the value of assets are made. The annual review by means of impairment tests and sensitivity analysis is described in the following:

The COVID-19 pandemic and its uncertainties regarding the effect on the free cash flows were indicators for impair-ment as at 31 March 2020 and 30 September 2020 and therefore a trigger for impairment testing of the assets in the balance sheet. The impairment testing of goodwill for the respective CGU is based on future-related assumptions which are subject to significant uncertainties because of the effects of the COVID-19 pandemic which are not clearly foreseeable. In particular, assumptions regarding duration and scope of the effects on the performance planning of the respective CGU are subject to considerable uncertainties. Estimates and assumptions are made based on the best available information and on the mid-term planning that gives the most likely and most realistic picture on the economic effect of the COVID-19 pandemic on the respective CGU from the view of the UIAG Management Board.

Tangible assets

Tangible assets have the following useful lives:

Some real estate lease agreements include options for renewal (and include the subsequent automatic extension of lease periods) after the end of the basic term, which were not included in the evaluation of lease liabilities. The exercise of this option is not reasonably certain and may cause undiscounted potential cash outflows in the amount of € 59,800k. The calculation of these possible payment obligation is based on the economic useful life of the relevant real estate.

A detailed classification of intangible and tangible assets and their development in the business year 2019/20 and their comparative period that are combined in the balance sheet can be found in the consolidated assets schedule.

In the course of the first-time consolidation of BEGLAOM Guss GmbH (business year 2015) and Plastech Holding Group and UIAG Informatik-Holding Group (both in January 2019) the following goodwill was identified:

In business year 2019/20 the impairment tests for the goodwill of the cash generating units BEGALOM, Plastech Holding Group and UIAG Informatik-Holding Group were performed at the record dates 31 March 2020 and

30 September 2020. The impairment tests were performed on each of the record dates since the COVID-19 pandemic is an impairment trigger for Unternehmens Invest AG at these record dates.

Impairment tests as at 31 March 2020

As already explained the COVID-19 pandemic and the related uncertainties regarding expected negative effects on the free cash flows constitute an impairment trigger as at 31 March 2020. Consequently, the goodwill of the CGU BEGALOM, CGU Plastech Holding Group, CGU UIAG Informatik-Holding Group were tested for impairment. The value in use of a cash generating unit is calculated using the discounted cash flow method based on a pre-tax WACC. The WACC as at 31 March 2020 increased considerably compared to 30 September 2019. The value in use of a cash generating unit is calculated using the discounted cash flow method based on a pre-tax WACC. The WACC is 9.02% (ABY 2019: 7.39%) for the CGU BEGALOM, 10.84% (ABY 2019: 9.95%) for the CGU Plastech Holding Group (Plastic segment) and for the CGU UIAG Informatik-Holding Group (IT segment) 9.14% (ABY 2019: 8.41%). The discounting rate is based on the average weighted capital cost of the corresponding peer group.

The cash flows for the impairment tests are based on the current mid-term planning as authorized by the Manage-ment Board and adjusted to expected effects from the COVID-19 pandemic. The planning period for the CGU BEGALOM is 2.5 years (30 September 2019: 3 years). The mid-term planning period for Plastech Holding Group and UIAG Informatik-Holding Group is 3.5 years, since sustainable earnings level will be achieved after the planning year only. After the detailed planning period and corresponding to previous years the cash flows of the last planning period are - based on the principle of going concern - used to calculate a perpetual annuity, using a growth discount of 1.0%

(30 September 2019: 1.0%) and the assumption of convergence.

The values in use determined for the CGU BEGALOM and the CGU UIAG Informatik-Holding GmbH are above the carrying amount. The value in use determined for Plastech Holding Group amounted to € 6,050k (ABY 2019: € 18,084k) and is below the carrying amount (before impairment), therefore impairment of € 6,050k was recognized in profit or loss for the goodwill of the CGU. Consequently, the recoverable amount corresponds to the carrying amount.

NOTES TO THE CONSOLIDATED BALANCE SHEET

This impairment of the CGU Plastech Holding Group results mainly from the raised WACC at the reporting date 31 March 2020, which increased because of the distortions caused by the COVID-19 pandemic. The CGU Plastech Holding Group was affected by the postponement of machine orders and acceptances because of the COVID-19 pandemic. At the beginning of the COVID-19 pandemic the plant in China was particularly affected, later on also the plant in Germany was affected by the measures implemented to avoid the spreading of the COVID-19 pandemic.

The original planning was adjusted, and the revenues slightly reduced. The segment automotive remained behind expectations which was enhanced by the continuing investment reticence due to the COVID-19 pandemic.

As at 31 March 2020 an impairment loss in the amount of € 1,121k for Pongratz Group was determined, whereby the impairment loss concerns intangible and tangible assets. The value in use of a cash generating unit is calculated using the discounted cash flow method based on a pre-tax WACC. The WACC at the reporting date 31 March 2020 is 7.81% (30 September 2019: 6.77%). The impairment recognized results from an increased WACC as at 31 March 2020 and the adjusted planning. The planning the impairment is based on was extended due to the current challenges from the COVID-19 pandemic because a sustainable earnings level will only be achieved after the planning year. As at 31 March 2020 suppliers in the most relevant markets were closed down for several weeks because of the federally mandated protective measures. This closing had a negative effect on the planning because in March usually starts the main season for Pongratz. Because of the increased uncertainties it is hard to provide a more specific forecast regarding the further development from the effects of the COVID-19 pandemic.

The profit share from the associated companies recognized at equity include the current result form BAGE Recycling GmbH and the impairment of the share of BAGE Recycling GmbH in the amount of € 3,813k recognized at 31 March 2020. The COVID-19 pandemic caused an impairment trigger, therefore the share of the associated company

BAGE Recycling GmbH was tested for impairment. The planning the impairment test is based on comprises a planning period of 3.5 years. The value in use of BAGE Recycling GmbH is calculated using the discounted cash flow method based on a pre-tax WACC. The WACC is 9.94% at 31 March 2020. The impairment recognized with a carrying amount of zero results from the current and ongoing loss situation. Because of the decline in demand for oil caused by the COVID-19 pandemic and the lower oil price the price pressure for recycling materials increased.

Impairment tests as at 30 September 2020

The COVID-19 pandemic and the related uncertainties regarding expected negative effects on the free cash flows constitute an impairment trigger at 30 September 2020, consequently, the goodwill of the CGU BEGALOM, CGU Plastech Holding Group, CGU UIAG Informatik-Holding Group were tested for impairment.

The value in use of a cash generating unit is calculated using the discounted cash flow method based on a pre-tax WACC. The WACC is 8.97% (ABY 2019: 7.39%) for the CGU BEGALOM, 9.85% (ABY 2019: 9.95%) for the CGU Plastech Holding Group (Plastic segment) and for the CGU UIAG Informatik-Holding Group (IT segment) 9.31% (ABY 2019: 8.41%.) The discounting rate is based on the average weighted capital cost of the corresponding peer group.

The cash flows for the impairment tests are based on the current mid-term planning as authorized by the Management Board. The planning period is three years (30 September 2019: 3 years). The mid-term planning period for Plastech Holding Group is four years, since sustainable earnings level will be achieved in the fourth planning year only and the strategic decision was made to focus on the packaging segment (consumer and industrial packaging) and thus to reduce the dependability on the automotive segment. This decision was made considering the emerging difficulties and decline in the automotive sector. In business year 2019/20 significant steps were made based on this strategic development.

The detailed planning period is based on the cash flows for the third respectively fourth year of the detailed planning period based on the principle of going concern to calculate a perpetual annuity, using a growth discount of 1.0%

(30 September 2019: 1.0%) and the assumption of convergence. The mid-term planning is based on internal assump- tions on the future development of distribution, price and costs, the future development of markets and the product mix. The assumptions are based on the assessment of the management.

Based on the increased planning uncertainty because of the COVID-19 pandemic alternative planning scenarios

were investigated in detail and further possible effects of the COVID-19 pandemic discussed with the management of the CGUs. Alternative scenarios were investigated for the CGU Plastech Holding Group in particular because of

the increased uncertainties caused by the COVID-19 pandemic. The planning based on the impairment tests provide a realistic assessment of the Management Board of Unternehmens Invest AG at the time the consolidated financial statements are prepared, based on the assumption that no further serious effects from the COVID-19 pandemic arise for the individual CGUs.

The history of deviations between performance and budget was considered by the recognition of deductions in the plannings.

The value in use determined for the CGU BEGALOM and the CGU UIAG Informatik-Holding Group is above the carrying amount.

As already explained as at 31 March 2020 an impairment in the amount of € 6,050k (30 September 2019: € 18,084k)

was recognized for the goodwill attributed to the CGU Plastech Holding Group as at 31 March 2020. The order intake and the revenues in the automotive segment remained substantially reduced in the second half of the business year

2019/20, but the dependability on the automotive segment was reduced by stepping up the activities in the segment packaging and specialties. The consequent implementation of the cost adjustment measures creates a positive earning contribution. The value in use determined for the CGU Plastech Holding Group is above the carrying amount as at

30 September 2020.

The Management Board realized that if two significant assumptions will be changed, the carrying value may exceed the recoverable amount of the CGU BEGALOM, CGU Plastech Holding Group and CGU UIAG Informatik-Holding Group.

The recoverable amount of the CGU BEGALOM would correspond to the carrying amount if the free cash flow in the perpetual annuity was reduced by 46.2% (30 September 2019: 51.0%). The recoverable amount would also meet the carrying amount if the capital cost before tax would be increased by 5,53% (30 September 2019: 5.53%).

The recoverable amount of the CGU UIAG Informatik-Holding Group would correspond to the carrying amount if the free cash flow in the perpetual annuity was reduced by 12% (30 September 2019: 27.4%). The recoverable amount would also meet the carrying amount if the capital cost before tax would be increased by 0.30% (30 September 2019: 1.68%).

The recoverable amount of the CGU Plastech Holding Group would correspond to the carrying amount if the free cash flow in the perpetual annuity was reduced by 18.3% (30 September 2019: 0%). The recoverable amount would also meet the carrying amount if the capital cost before tax would be increased by 1.79% (30 September 2019: 0%).

NOTES TO THE CONSOLIDATED BALANCE SHEET

As already explained an impairment in the amount of € 1,121k was recognized for Pongratz Group for intangible and tangible assets. The impairment test performed at 30 September 2020 is based on a planning period of three years. Since assumptions regarding the effects of the COVID-19 pandemic turned clearly positive in the second half 2019/20 the impairment loss in the amount of € 1,121k based on the impairment tests as at 30 September 2020 was attributed to the intangible and tangible assets as at 30 September 2020. Since all distributors of Pongratz Group were closed at 31 March 2020 because of of the federally mandated protective measures it was uncertain when the situation for the sale of trailers might return to normal. However, Pongratz Group registered an unexpectedly high demand for their products in the second half 2019/20 which continued throughout the first quarter 2020/21. The value in use of Pongratz Group was also calculated using the discounted cash flow method based on a pre-tax WACC. The WACC at record date 30 September 2020 was 9.24% (30 September 2020: 6.77%).

Trademark rights, customer relationships and other intangible assets

The impairment tests performed in business year 2019/20 did not require an impairment of capitalized trademark rights and customer relationships.

The expenses for research and development in business year 2019/20 amounted to € 2,177k (ABY 2019: € 1,800k). Development cost in the amount of € 1,558k (ABY 2019: € 1,917k) were capitalized in business year 2019/20. These costs were mainly attributable to a new generation of blow mold machines with reduced color change times, material saving, energy saving and capacity savings at the first commissioning in the Plastic segment.

Tangible assets

In the business year 2019/20 neither impairments nor value recoveries for tangible assets were executed. No major insurance compensations for impaired or lost tangible assets were received.

The usage rights included in the tangible assets developed in business year 2019/20 as follows:

Other equipment,

Usage rights for buildings include long-term leases for office premises, production buildings and computer centers.

These mainly exist in the IT segment. Usage rights for company vehicles are included in "Other equipment, operating and business equipment" and also apply mainly for the IT segment. The term of the lease contracts is from one to twelve years.

The expense from short-term leases amounts to € 112k (ABY 2019: € 93k). The expenses for lease equipment of low value where usage right was applied amount to € 371k (ABY 2019: € 194k) in business year 2019/20.

The income from sublease of usage rights amount to € 146k (ABY 2019: € 110k) in business year 2019/20.

Schedule of movements in the consolidated assets as at 30 September 2020

€k

Intangible assets Goodwill Trademark Customer relationships Software and licenses Other intangible assets

Advance payments

Tangible assets Land

Buildings

Technical equipment, machinery, large-scale IT systems and other equipment Other equipment, furniture and fixtures Advance payments

Cost of acquisition or productionAs at 1 Oct 2019

First-time application

IFRS 16

437 105,919

Changes in consolida-tion scope

148,282

0

0

50,375

0

0

61,004

0

0

2,267

0

0

22,215

0

0

3 284,146

0 0

0 0

5,724 55,115

0 0

0 0

29,551

0

0

15,092

0 0 0

0 0 0

Currency differences

AdditionsDisposals

25

0

(80)

0

0

0

0

0

0

(2)

937

(16)

0

1,572

(388)

0 23

8 2,517

0

(484) 0 286,202

0 (287)

0 4,114

0 (590)

(45)

5,430

(909)

(86)

• 4,928 (1,009)

Reclassifi-cation

As at 30 Sep 2020

0 148,227

0 50,375

0 61,004

62 3,248

(62) 23,337

0

11

0 5,724 6 58,358

(209) 33,818

213 19,138

390,065

0

0

0 (418)

(395)

437 14,909 17,426

(2,551)

(3,035)

(43)

(10) 821 0 117,859 0 404,061

NOTES TO THE CONSOLIDATED BALANCE SHEET

Schedule of movements in the consolidated assets as at 30 September 2019

€k

Intangible assets Goodwill Trademark Customer relationships Software and licenses Other intangible assets

Advance payments

Tangible assets Land

Buildings

Technical equipment, machinery, large-scale IT systems and other equipment Other equipment, furniture and fixtures Advance payments

Cost of acquisition or productionAs at 1 Jan 2019

First-time application

IFRS 16

Changes in consolida-tion scope

Currency differences

AdditionsDisposalsReclassifi-cation

As at 30 Sep 2019

1,347

0

145,601

1,352

0

(18)

• 0 148,282

  0

  0

  50,375

  0

  0

  0

• 0 50,375

  0

  0

  61,004

  0

  0

  0

• 0 61,004

270

0

1,218

0

910

(15)

(116) 2,267

0

0

20,385

0

2,418

(690)

102 22,215

17 1,634

0 0

0 278,583

0 1,352

0 3,328

(14)

0

3

(737)

(14) 284,146

1,275 6,543

0 16

4,434 27,735

0 47

15 21,884

0 (2,396)

0 5,724

• 1,286 55,115

  3,645

  332

  16,148

  46

  9,492

  (599)

• 487 29,551

  436

  0

  10,606 1,673 60,596

  39 0 132

  4,982 204 36,577

  (878)

• (93) 15,092

242 12,141 13,775

0 348 348

(1) (1,681) 437

(3,874)

• (1) 105,919

  339,179

  1,484

  39,905

  (4,611)

• (15) 390,065

NOTES TO THE CONSOLIDATED BALANCE SHEET

(14) FINANCIAL ASSETS RECOGNIZED AT EQUITY

Accounting and valuation methods

Shareholdings and other financial assets

Shareholdings of affiliated companies - unless they are fully consolidated - and other shareholdings are recognized at fair value. Changes in value are recognized in the income statement. Shareholdings of associated companies are included into the consolidated financial statements at equity. The other financial assets are measured at fair value at the balance sheet date. The fair value is based on the actual market price at balance sheet date. Changes in valuation are recognized in the income statement.

Impairment of financial assets recognized at equity

Objective indications according to IAS 28 are used for financial assets recognized at equity. These might be financial difficulties, insolvency, breach of contract or considerable delay of payment by the debtor or issuer.

Shares of associated companies are the following:

BAGE Recycling GmbH was recognized as associated company. The share of 25.1% - held indirectly via Plastech Holding GmbH - was sold in July 2020. As in the notes to the consolidated financial statements, item (08) "Income from associated companies recognized at equity" described, a negative pro rata current income in the amount of € -594k in the business year 2019/20 and an impairment in the amount of € 3,813k was identified from the associated company BAGE Recycling GmbH.

(15) DEFERRED TAX ASSETS AND TAX LIABILITIES

Accounting and valuation methods

Taxes and accrual of deferred taxes

Deferred tax assets are recognized to the extent that it is probable that they can be utilized.

In accordance with IAS 12.39 for temporary differences from shares of subsidiaries held by group companies no deferred tax liabilities are recognized since UIAG Group can control the timing of the reversal and the temporary differences are not expected to reverse in the foreseeable future. Temporary differences not recognized as deferred tax liabilities are retained profits, that will not be distributed or that will remain untaxed for the foreseeable future.

Estimates and assumptions

The factors consulted to assess the probability of future use are the earnings performance in the past, operative planning, loss carryforward periods and tax planning strategies. If the actual results differ negatively from the estimates, they may lead to an impairment of the deferred tax assets in the income statement.

NOTES TO THE CONSOLIDATED BALANCE SHEET

In accordance with the balance sheet-oriented approach to calculate deferred taxes the following deferred tax assets and liabilities for the major balance sheet items result according to IFRS:

€k

Intangible assets Tangible assets Contract assets Other receivables Other assets Non-current provisions Provisions

Other liabilities Losses carried forwardBalancing

Balance sheet disclosure

30 Sep 2020

Assets

9

0

445

194

0

980

2,910

1,548

7,831 13,917

(12,447)

1,470

The deferred net tax liability changed in the business year as follows:

Liabilities

34,679

1,755

5,331

2,557

4,742

0

25

378

0 49,467

(12,447) 37,020

€k

Deferred taxes (net) as at 1 October/1 January Recognition in the other comprehensive income Deferred taxes recognized in the income statement

Addition from first-time consolidation of UIAG Informatik-Holding Group Addition from first-time consolidation of Plastech Holding Group

Other changes (including currency translation)

Deferred taxes (net) as at 30 September

0 37,113

0 1,865

523 4,579

92 2,490

4 2,591

905 0

2,648 87

1,844 2,809

30 Sep 2020

(45,279) 254

(154) 927

9,800 2,578

0 (34,047)

0 (14,331)

The change of the temporary differences in the other comprehensive income is as follows:

€k

30 September 2020

Total

thereof currency translation

thereof hedge accounting

thereof IAS 19

30 September 2019

Total

thereof currency translation

thereof hedge accounting

thereof IAS 19

30 Sep 2019

Assets

238 6,254

(5,117) 1,137

83 (35,550)

Change grossLiabilities

0 51,534

(5,117) 46,416

30 Sep 2019

(660)

(45,279)

Deferred tax

(620)

(154)

(765) 0

183 0

(38) (154)

(2,113) 927

1,209 0

(143) 0

(3,179) 927

Loss carryforwards in the IT segment in the amount of € 376k and in the Plastic segment in the amount of € 7,455k were activated as deferred tax. Any other loss carryforwards were not recognized due to the economic situation and their loss history.

At balance sheet date deferred tax assets in the amount of € 1,470k (30 September 2019: € 1,137k) resulting from the IT segment and the Plastic segment were activated. Other loss carryforwards in the amount of € 19,706k (30 September 2019: € 13,440k) were not activated. Thereof € 1,006k will be forfeited (30 September 2019: € 970k) within the next four years, the remaining loss carryforwards have no expiry date.

For temporary differences for tax purposes in the amount of € 300k (30 September 2019: € 260k) from shares of subsidiaries no deferred tax liabilities were recognized since it is not likely that these temporary differences will reverse in the foreseeable future.

(16) OTHER NON-CURRENT ASSETS

Accounting and valuation methods

Financial assets

The financial assets of UIAG Group include receivables, cash and cash equivalents, derivatives with positive fair values.

If the financial assets show objective and substantial indications of impairment an impairment test is made. Indica- tions for impairment are the deterioration of the creditworthiness of the debtor and subsequent delays in payment or impending insolvency. If the reasons for extraordinary impairment cease to exist, the assets will be written-up accordingly but not beyond the acquisition cost.

Other financial assets and derivative financial instruments

Other financial assets of UIAG Group include other receivables and derivative financial instruments. Other receivables are recognized at amortized cost applying the effective interest method.

Derivative financial instruments are applied in UIAG Group exclusively for the hedging of currency and interest rate risks. They are always recognized at fair value and reported in the balance sheet as "Other financial asset" (positive fair value) or "Financial liability" (negative fair value). They are included in the current assets or current liabilities if they are repaid within twelve months after the end of the reporting period. The attributable fair value is based on current reference prices at the balance sheet date considering forward premiums and forward discounts.

Fluctuations in value of interest swaps are recognized in the other comprehensive income if the prerequisites for the recognition as cash flow hedge are given. If there is no formal hedging relationship to the underlying transactions, there are no prerequisites for hedge accounting and the fluctuations in value of derivatives are recognized in the income statement.

Please refer to the notes to the consolidated financial statements, item (29) "Financial risks" for the recognition of interest swaps for hedging.

NOTES TO THE CONSOLIDATED BALANCE SHEET

Receivables and contract assets

Besides various kinds of receivables the group activates contract assets. The following contract assets are disclosed in the UIAG Group:

• - period-based customer-specific consultancy projects (in the IT segment mainly software implementing and software optimization projects, in the Plastic segment mainly the manufacturing of customer-specific equipment), whereby the cumulated services exceed the invoiced rendered project services respectively exceed the rendered or due pre-payments (credit balance)

• - the positive allocation effects from the distribution of the total transaction price of multiple component contracts the performance obligations based on the individual sales price, and

• - other rendered but not yet invoiced services (e.g. in the IT segment not yet invoiced IT-services).

Contract assets are work in progress not yet invoiced and therefore show risk characteristics comparable to trade receivables. They are valued with the following parameters.

Recognizable individual risks are reflected by appropriate valuation adjustments. In accordance with the future-oriented expected-loss model of IFRS 9 the assessed expected loan losses are calculated and recognized based on the experience of actual loan losses, adjusted by forward-looking factors. Trade receivables and contract assets with impaired credit-worthiness are subjected to special examination of the default risks on a case-by-case basis. Indicators of impaired creditworthiness include, in particular, significant financial difficulties or the likelihood of insolvency of a debtor. Impair-ment is recognized in the valuation allowance through profit or loss in the consolidated income statement. If the reasons for impairment cease to exist in subsequent periods, the value is written up to no more than the original purchase price and recognized as profit. Receivables are considered uncollectible if e.g. the customer has significant financial difficulties, bankruptcy proceedings are instituted, and it is unlikely that the customer will meet his obligations.

Non-interest or low interest-bearing receivables with a remaining term in excess of one year are recognized at the discounted present value.

Assumptions and estimates

The evaluation of receivables is based on the assumption of recoverability. The criteria used by the management for the assessment of recoverability are the customer's credit quality, the maturity structure of the receivable balances and experience related to the write-offs of receivables in the past and the changes in terms and conditions of payment.

If the financial situation of the customers worsens the total amount of the actual write-offs may exceed the amount of the expected write-offs. At balance sheet date receivables in the amount of € 79,956k (30 September 2019: € 98,398k) were recorded.

Other non-current assets can be broken down as follows:

Lease receivables can be attributed to the IT segment. Finance lease agreements are entered with customers for IT-equipment. The average term of finance lease agreements is five years. The current lease receivables are recognized in "Trade receivables, other receivables and other current assets" (notes to the consolidated financial statements, item (18) "Trade receivables, other receivables and other current assets").

Maturity

More than

€k

Up to 1 year

1 to 5 years

5 years

Total

30 September 2020

Lease receivables (gross amount) Less financial income not yet realized Lease receivables (net amount)

4,139 (28) 4,111

6,850 (176) 6,674

0 10,989

0 (204)

0 10,785

(17) INVENTORIES

Accouting and valuation methods

Inventories are recognized at cost or at the lower realizable value at the balance sheet date (expected sale price less cost of disposal). Similar assets are measured at the moving average price method. Appropriate valuation allowances were made for inventory risks resulting from the duration of storage and reduced usability.

UIAG Group does not capitalize any interest on borrowed capital from the manufacturing and temporary storage in the acquisition and production cost.

Assumptions and estimates

The evaluation of inventories is based on the estimation of the recoverable amount and the intrinsic value of inventories.

Statistical values on duration of storage and the product specific decline of the price are the basis for impairment.

NOTES TO THE CONSOLIDATED BALANCE SHEET

The item "Inventories" is broken down as follows:

30 Sep 2019