(39) Related party disclosures

Balances and business transactions between PCC SE and incorporated subsidiaries regarded as related parties are eliminated as part of the consolidation process and have not been included in these notes and disclosures. Details regarding the business transactions between the PCC Group and other related parties are indicated in the following.

Related parties are the sole shareholder and ultimate controlling party of PCC SE, Mr. Waldemar Preussner, as well as key management personnel (members of the Executive Board and Supervisory Board of PCC SE) and their family members. For compensation to Executive Board members, please refer to the disclosures under Note (41) Corporate Bodies. For compensation of the Supervisory Board, again please refer to the disclosures under Note (41) Corporate Bodies. Sundry other receivables include a receivable from the sole shareholder of PCC SE in the amount of € 0.0 million (previous year: € 0.2 million). This receivable is short-term in nature and, as in the previous year, bears interest at 6.0 % p.a.

As of December 31, 2022, the PCC Group had receivables from affiliated companies not included in the consolidated financial statements for reasons of materiality totaling € 4.2 million (previous year: € 3.0 million). These are loans, trade accounts receivable and short-term loans receivable. The intercompany financing arrangements bear interest rates of between 4.36 % p.a. and 10.0 % p.a.

In principle, sales to or purchases from related parties are made at standard market / arm’s length prices. The outstanding items at the end of the fiscal year are not secured, do not bear interest and will be settled in cash. There are no guarantees for receivables from related parties or liabilities to related
parties.

wdt_ID Figures in € k 2022 2021
1 Income from related parties
2 Non-consolidated entities 2,826 2,932
3 Joint ventures 713 413
4 Other entities – 604
5 Expenses paid to related parties
6 Non-consolidated entities 10,821 9,033
7 Joint ventures 43 3,853

As of the reporting date, there were loan receivables from the joint venture OOO DME Aerosol amounting to € 13.6 million (previous year: € 12.5 million). As in the previous year, they bear interest at 10.0 % p.a. The loans were granted for the development and construction of a dimethyl ether plant on the premises of the joint venture partner. In addition, both shareholders granted funds for start-up financing and to cover the initial debt service.

wdt_ID Figures in € k Dec. 31, 2022 Dec. 31, 2021
1 Receivables from related parties
2 Non-consolidated entities 4,195 3,036
3 Joint ventures 16,407 15,620
4 Other entities – 3,825
5 Liabilities to related parties
6 Non-consolidated entities 2,349 1,941
7 Joint ventures 2 4,770

(40) Alternative performance measures

The consolidated financial statements and the management report of the PCC Group are prepared in accordance with currently applicable accounting standards. In addition to the disclosures and ratios required by these standards, the PCC Group uses and publishes alternative performance measures (APMs). These are not subject to the regulations of the accounting standards. The PCC Group determines and uses APMs in order to facilitate comparability of key performance indicators over time and within the international business environment. These performance measures are used both in the assessment of external third parties and also internally for the management and control of business units.

Determination of these performance measures is by addition, subtraction, multiplication or division of individual or several items in the consolidated balance sheet and the consolidated statement of income. The APMs have been applied unchanged compared to the previous period.

The PCC Group determines the following alternative performance measures:

  • EBIT

  • EBITDA

  • Net debt

  • Net debt/EBITDA leverage ratio

  • Return on capital employed (ROCE)

  • Capital employed

  • Gross profit

  • Gross margin

EBIT (Earnings before Interest / financial result and Taxes) serves as a measure of operating profit without taking into account differing international taxation systems and differing financing structures. The PCC Group ascertains its figures as follows:

wdt_ID Figures in € k 2022 2021
1 Earnings before taxes (EBT) 192,620 91,728
2 + / – Financial result -24,720 -33,597
3 = EBIT 217,340 125,325

EBITDA (Earnings before Interest / financial result, Taxes, Depreciation and Amortization) provides an indication of the operating result before financial items and unaffected by differing depreciation and amortization methods and the associated valuation margins. It is determined within the PCC Group as follows:

wdt_ID Figures in € k 2022 2021
1 EBIT 217,340 125,325
2 + / - Depreciation and amortization 74,693 72,185
3 = EBITDA 292,033 197,510

The EBIT margin and EBITDA margin are relative performance indicators used by the PCC Group for the internal management of its segments and for international comparison. To determine these ratios, EBITDA and EBIT are set in relation to sales revenues.

For information on the use and calculation of net borrowings and the net debt/EBITDA ratio, please refer to Note (38) and the explanatory comments there on capital structure management.

wdt_ID Figures in € k Dec. 31, 2022 Dec. 31, 2021
1 + Equity 419,201 144,569
2 + Current financial liabilities 154,295 154,069
3 + Non-current financial liabilities 707,754 827,603
4 + Provisions for pensions and similar obligations 1,129 973
5 = Capital employed 1,282,380 1,127,214
6 = Average capital employed 1,204,797 1,067,296

Return on capital employed (ROCE) is the ratio of EBIT to average capital employed. EBIT is the profit or loss (operating result) before financial result and taxes. Capital employed is calculated from the equity and debt capital employed by the PCC Group at their carrying amounts. Gross margin is the ratio of gross profit to sales.

wdt_ID Figures in € k 2022 2021
1 Sales revenue 1,324,656 979,615
2 + Change in inventories of finished goods and work in progress 31,429 29,696
3 + Other internal costs capitalized 12,820 8,796
4 – Purchased goods and services 865,657 662,174
5 = Gross profit 503,248 355,934

(41) Corporate bodies

The corporate bodies of PCC SE are as follows:

Executive Board:

  • Dr. Peter Wenzel, CEO and Chairman of the Executive Board, Corporate and Project Development, Sustainability

  • Ulrike Warnecke, Finance, Human Resources, Public Relations

  • Dr. rer. oec. (BY) Alfred Pelzer, Chemicals Production, Logistics, Sales

In fiscal 2022, the Executive Board received compensation totaling € 3,226 k (previous year: € 2,344 k), comprising non-performance-related compensation of € 720 k and performance-related compensation of € 2,506 k, all of which is attributable to short-term employee benefits.

Supervisory Board:

  • Dipl. Volkswirt Waldemar Preussner, Chairman of the Supervisory Board

  • Dr. Hans-Josef Ritzert, Vice Chairman of the Supervisory Board

  • Reinhard Quint

In fiscal 2022, the Supervisory Board received fixed, non-performance-related compensation totaling € 312 k (previous year: € 199 k), all of which is attributable to short-term employee benefits.

Annual General Meeting:

The annual general meeting of PCC SE was held on June 15, 2022, in the course of which the consolidated financial statements and Group management report for 2021 were approved, the actions of the Executive Board and Supervisory Board of PCC SE were ratified, and Grant Thornton AG, Düsseldorf, was again appointed as auditor for fiscal 2022.

(42) Events after the reporting date

The bond carrying the code ISIN DE000A2TSTW0 issued by PCC SE with a placed volume of € 18.4 million was redeemed in full on February 1, 2023. It was issued on March 1, 2019, with a coupon of 3.0 % p.a.

The bond carrying the code ISIN DE000A2G8670 issued by PCC SE with a placed volume of € 21.8 million was redeemed in full on April 1, 2023. It was issued on January 1, 2018, with a coupon of 4.0 % p.a.

On February 1, 2023, PCC SE issued a new bond carrying the code ISIN DE000A30VR40 and a maturity date of April 1, 2028. On April 3, 2023, a new bond was issued with the code ISIN DE000A351K90 and a maturity date of July 1, 2028. Both bonds carry a coupon of 5.0 % p.a.

(43) Miscellaneous

The PCC Group and the individual German companies were audited by Grant Thornton AG Wirtschaftsprüfungsgesellschaft, Düsseldorf, and their respective financial statements were each given an unqualified audit certificate. The fee for the audit services for these companies and the Group amounted to € 313.5 k (previous year: € 244.0 k). In addition, tax consultancy services amounting to € 9.3 k were rendered in the reporting year (previous year: –). No other services were provided either in fiscal 2022 or in the previous year.

For fiscal 2022, PCC Trade & Services GmbH, Duisburg, Germany, has invoked the exemption provisions of Section 264 (3) HGB (German Commercial Code).

(44) Schedule of shareholdings in accordance with Section 313 (2) HGB (German Commercial Code)

wdt_ID Name and registered office of company Segment Currency Exchange rate Dec. 31, 2022 1 euro = PCC SE participating interest in % (direct) PCC SE participating interest in % (indirect) PCC SE participating interest in % (2022) PCC SE participating interest in % (2021)
1 Parent company
2 PCC SE, Duisburg Holding & Projects EUR 1.0000 – – – –
3 Fully consolidated subsidiaries
4 AO "NOVOBALT" Terminal, Kaliningrad Trading & Services RUB 79.2258 – 100.00 100.00 100.00
5 Aqua Łososiowice Sp. z o.o., Brzeg Dolny Trading & Services PLN 4.6808 – 100.00 100.00 100.00
6 CATCH66 GmbH, Duisburg Trading & Services EUR 1.0000 – – – 100.00
7 ChemiPark Technologiczny Sp. z o.o., Brzeg Dolny Trading & Services PLN 4.6808 – 100.00 100.00 100.00
8 distripark.com Sp. z o.o., Brzeg Dolny Trading & Services PLN 4.6808 50.00 50.00 100.00 100.00
9 Ekologistyka Sp. z o.o., Brzeg Dolny Trading & Services PLN 4.6808 – 100.00 100.00 100.00
10 Elpis Sp. z o.o. i.L., Brzeg Dolny Holding & Projects PLN 4.6808 – 100.00 100.00 100.00
11 GRID BH d.o.o., Sarajevo Holding & Projects BAM 1.9558 – 85.62 85.62 85.62
12 LabMatic Sp. z o.o., Brzeg Dolny Trading & Services PLN 4.6808 – 100.00 100.00 100.00
13 MCAA SE, Brzeg Dolny Chlorine & Derivatives PLN 4.6808 100.00 – 100.00 100.00
14 OOO PCC Consumer Products, Moscow Surfactants & Derivatives RUB 79.2258 – 100.00 100.00 100.00
15 OOO PCC Consumer Products Navigator, Grodno Surfactants & Derivatives BYN 2.7013 – 100.00 100.00 100.00
16 PCC Apakor Sp. z o.o., Brzeg Dolny Trading & Services PLN 4.6808 – 99.59 99.59 99.59
17 PCC Autochem Sp. z o.o., Brzeg Dolny Logistics PLN 4.6808 – 100.00 100.00 100.00
18 PCC BakkiSilicon hf., Húsavík Silicon & Derivatives USD 1.0666 65.40 – 65.40 86.50
19 PCC BD Sp. z o.o., Brzeg Dolny Holding & Projects PLN 4.6808 – 100.00 100.00 100.00
20 PCC Bulgaria EOOD, Sofia Polyols & Derivatives BGN 1.9558 100.00 – 100.00 100.00
21 PCC Chemax, Inc., Piedmont, SC Surfactants & Derivatives USD 1.0666 – 100.00 100.00 100.00
22 PCC Chemicals Corporation, Wilmington, DE Holding & Projects USD 1.0666 100.00 – 100.00 –
23 PCC Chemicals GmbH, Duisburg Holding & Projects EUR 1.0000 100.00 – 100.00 100.00
24 PCC Consumer Products Kosmet Sp. z o.o., Brzeg Dolny Surfactants & Derivatives PLN 4.6808 – 100.00 100.00 100.00
25 PCC Consumer Products S.A., Brzeg Dolny Surfactants & Derivatives PLN 4.6808 100.00 – 100.00 100.00
26 PCC Energetyka Blachownia Sp. z o.o., Kędzierzyn-Koźle Trading & Services PLN 4.6808 84.46 – 84.46 84.46
27 PCC EXOL Kimya Sanayi ve Ticaret Limited Şirketi, Istanbul Trading & Services TRY 19.9649 – 100.00 100.00 100.00
28 PCC Exol SA, Brzeg Dolny Surfactants & Derivatives PLN 4.6808 – 87.03 87.03 87.04
29 PCC HYDRO DOOEL Skopje, Skopje Holding & Projects MKD 61.4932 – 100.00 100.00 100.00
30 PCC Insulations GmbH, Duisburg Polyols & Derivatives EUR 1.0000 100.00 – 100.00 100.00
31 PCC Integrated Chemistries GmbH, Duisburg Holding & Projects EUR 1.0000 100.00 – 100.00 100.00
32 PCC Intermodal GmbH, Duisburg Logistics EUR 1.0000 – 100.00 100.00 100.00
33 PCC Intermodal SA, Gdynia Logistics PLN 4.6808 99.09 – 99.09 98.80
34 PCC IT S.A., Brzeg Dolny Trading & Services PLN 4.6808 100.00 – 100.00 100.00
35 PCC Izvorsko EOOD, Sofia Holding & Projects BGN 1.9558 – 100.00 100.00 100.00
36 PCC MCAA Sp. z o.o., Brzeg Dolny Chlorine & Derivatives PLN 4.6808 58.46 40.42 98.88 98.88
37 PCC Morava-Chem s.r.o., Český Těšín Trading & Services CZK 24.1160 98.00 2.00 100.00 100.00
38 PCC NEW HYDRO DOOEL Skopje, Skopje Holding & Projects MKD 61.4932 – 100.00 100.00 100.00
39 PCC Prodex GmbH, Essen Polyols & Derivatives EUR 1.0000 100.00 – 100.00 100.00
40 PCC Prodex Sp. z o.o., Brzeg Dolny Polyols & Derivatives PLN 4.6808 – 100.00 100.00 100.00
41 PCC PU Sp. z o.o., Brzeg Dolny Polyols & Derivatives PLN 4.6808 – 100.00 100.00 100.00
42 PCC Renewables GmbH, Duisburg Holding & Projects EUR 1.0000 100.00 – 100.00 100.00
43 PCC Rokita SA, Brzeg Dolny Polyols & Derivatives, Chlorine & Derivatives , Trading & Services PLN 4.6808 – 84.26 84.26 84.17
44 PCC Seaview Residences ehf., Húsavík Silicon & Derivatives ISK 151.5000 100.00 – 100.00 100.00
45 PCC Silicium S.A., Zagórze Silicon & Derivatives PLN 4.6808 99.99 – 99.99 99.99
46 PCC Synteza S.A., Kędzierzyn-Koźle Polyols & Derivatives PLN 4.6808 100.00 – 100.00 100.00
47 PCC Therm Sp. z o.o., Brzeg Dolny Polyols & Derivatives PLN 4.6808 – 100.00 100.00 100.00
48 PCC Thorion GmbH, Duisburg (formerly: PCC Specialties GmbH, Oberhausen) Holding & Projects EUR 1.0000 100.00 – 100.00 100.00
49 PCC Trade & Services GmbH, Duisburg Trading & Services EUR 1.0000 100.00 – 100.00 100.00
50 PolyU GmbH, Oberhausen Polyols & Derivatives EUR 1.0000 100.00 – 100.00 100.00
51 S.C. Euro-Urethane S.R.L., Râmnicu Vâlcea Holding & Projects RON 4.9495 58.72 – 58.72 58.72
52 ZAO PCC Rail, Moscow Logistics RUB 79.2258 100.00 – 100.00 100.00
Segment Currency PCC SE participating interest in % (direct) PCC SE participating interest in % (indirect)

Schedule of shareholdings in accordance with Section 313 (2) HGB

wdt_ID Name and registered office of company Segment Currency Exchange rate Dec. 31, 2022 1 euro = PCC SE participating interest in % direct PCC SE participating interest in % indirect PCC SE participating interest in % 2022 PCC SE participating interest in % 2021 Equity in local currency (‘000) Net result in local currency (‘000)
1 Joint ventures accounted for using the equity method
2 IRPC Polyol Company Ltd., Bangkok Polyols & Derivatives THB 36.8350 – 50.00 50.00 50.00 165,384.4 36,689.9
3 OOO DME Aerosol, Pervomaysky Holding & Projects RUB 79.2258 50.00 – 50.00 50.00 -684,449.1 116,726.0
4 PCG PCC Oxyalkylates Sdn. Bhd., Kuala Lumpur Holding & Projects MYR 4.6984 50.00 – 50.00 50.00 129,592.3 -8,054.4
5 Subsidiaries not consolidated due to immateriality
6 Chemia-Profex Sp. z o.o., Brzeg Dolny Trading & Services PLN 4.6808 – 100.00 100.00 100.00 71.7 5.0
7 Chemia-Serwis Sp. z o.o., Brzeg Dolny Trading & Services PLN 4.6808 – 100.00 100.00 100.00 166.0 59.7
8 Chemi-Plan S.A. i.L., Brzeg Dolny Trading & Services PLN 4.6808 – – – 100.00 – -23.8
9 CWB Partner Sp. z o.o., Brzeg Dolny Trading & Services PLN 4.6808 – 100.00 100.00 100.00 890.3 586.8
10 Fate Sp. z o.o. i.L., Brzeg Dolny Holding & Projects PLN 4.6808 – – – 100.00 – -22.0
11 Gaia Sp. z o.o., Brzeg Dolny Holding & Projects PLN 4.6808 – 100.00 100.00 100.00 33.5 -16.6
12 Hebe Sp. z o.o. i.L. , Brzeg Dolny Holding & Projects PLN 4.6808 – – – 100.00 – -24.9
13 LabAnalityka Sp. z o.o., Brzeg Dolny Trading & Services PLN 4.6808 – 100.00 100.00 100.00 954.3 687.7
14 LocoChem Sp. z o.o., Brzeg Dolny Holding & Projects PLN 4.6808 – 100.00 100.00 100.00 32.5 57.8
15 Logoport Sp. z o.o., Brzeg Dolny Holding & Projects PLN 4.6808 – 100.00 100.00 100.00 208.9 163.8
16 New Better Industry Sp. z o.o. i.L., Brzeg Dolny Holding & Projects PLN 4.6808 – – – 100.00 – -27.2
17 PCC ABC Sp. z o.o. i.L., Brzeg Dolny Holding & Projects PLN 4.6808 – – – 100.00 – -24.5
18 PCC Consumer Products Czechowice S.A. i.L., Czechowice-Dziedzice Surfactants & Derivatives PLN 4.6808 – 99.74 99.74 99.74 -16,858.4 -253.6
19 PCC Exol Philippines Inc. i.L., Batangas Surfactants & Derivatives PHP 59.3200 – – – 99.99 – –
20 PCC Organic Oils Ghana Ltd., Accra Surfactants & Derivatives GHS 9.1457 100.00 – 100.00 100.00 913.8 -3,499.5
21 Technochem Sp. z o.o., Brzeg Dolny Holding & Projects PLN 4.6808 – 85.80 85.80 85.80 -31.4 -6.5
22 Terra 77 Sp. z o.o., Brzeg Dolny Holding & Projects PLN 4.6808 – 100.00 100.00 – – –
23 TzOW Petro Carbo Chem, Lviv Trading & Services UAH 38.9510 92.32 – 92.32 92.32 8,581.3 72.2
24 ZAO Exol, Nizhny Novgorod Surfactants & Derivatives RUB 79.2258 100.00 – 100.00 100.00 642.5 4,527.8
25 Associated companies not accounted for using the equity method due to immateriality
26 S.C. Oltchim S.A. i.L., Râmnicu Vâlcea Holding & Projects RON 4.9495 32.34 – 32.34 32.34 unknown unknown
27 Other investments in corporations
28 Brama Pomorza Sp. z o.o., Gdańsk Holding & Projects PLN 4.6808 7.41 – 7.41 7.41 7,830.7 8,865.5
29 TRANSGAZ S.A., Rybnik Holding & Projects PLN 4.6808 9.64 – 9.64 9.64 unknown unknown
Name and registered office of company Segment Currency Exchange rate Dec. 31, 2022 1 euro = PCC SE participating interest in % direct PCC SE participating interest in % indirect PCC SE participating interest in % 2022 PCC SE participating interest in % 2021 Equity in local currency (‘000) Net result in local currency (‘000)

Duisburg, April 27, 2023 PCC SE
The Executive Board

Dr. Peter Wenzel

Ulrike Warneke

Dr. rer. oec. (BY) Alfred Pelzer