Clarification on publication pursuant to Section 5 (2) of the Austrian Financial Reporting Enforcement Act (RL-KG) of 25.11.2021

Note: ​​​​​​​This is a translation of the original German version for information purposes without liability; the German version takes precedence.

​​​​​​​The consolidated financial statements of POLYTEC Holding AG as at 31 December 2019 and the half-year financial report as at 30 June 2020 are incorrect for the following reasons:

The impairment test performed for the Carstyling cash-generating unit (CGU) is founded on cash flow projections that are not based on reasonable and supportable assumptions in accordance with IAS 36.33(a), which constitutes the management's best estimate of the economic environment. Furthermore, management has not ensured that in accordance with IAS 36.34 the assumptions on which the cash flow projections are based are consistent with actual past performance. In addition, the assumption of a continuous increase in earnings (as made in the medium-term planning for the terminal value assumptions) contradicts the requirements of IAS 36.37, according to which competition is expected to lead to pressure on earnings margins.

Therefore, the recoverability of almost the entire goodwill for the Carstyling CGU to the amount of EUR 12,643k could not be demonstrated as at 31 December 2019. As a result, earnings and equity as at 31 December 2019, and equity as at 30 June 2020, have been overstated.