General – Accounting Principles

Consolidated Financial Statements 2025 – ENHeinzel Group is engaged in the production of and trade with pulp, paper and board worldwide.With its industrial locations Zellstoff Pöls (Austria), Laakirchen Papier (Austria) and Estonian Cell (Estonia), Heinzel Group, which is united under the Heinzel Holding umbrella, is one of the main producers of market pulp and packaging paper in Central and Eastern Europe.The Trading Business consists of heinzelsales, a globally operating trading company for pulp, paper and board, and Europapier International, the leading paper wholesale company in Central and Eastern Europe. In addition, Bunzl & Biach is the largest and most important recovered paper trading company in Austria and a leading wholesaler in Central and Eastern Europe.The parent company (reporting company) of this group is Heinzel Holding GmbH, based in Austria, 4655 Vorchdorf, Einsiedlinger Straße 47, and is at the same time the ultimate parent company of Heinzel Group.The consolidated financial statements were prepared based on the going concern principle.1.1 Accounting PrinciplesThese consolidated financial statements as of December 31, 2025 were prepared pursuant to Section 245a of the Austrian Commercial Code (UGB) in accordance with the International Financial Reporting Standards (IFRS Accounting Standards) issued by the International Accounting Standards Board (IASB) and the interpretations of the IFRS Interpretations Committee (IFRS IC), which were endorsed in the EU and required mandatory application as of the reporting date.The reporting currency is the euro. Unless stated otherwise, all amounts are presented in thousands of euros (EUR k) and rounded for the purpose of clarity. Rounding differences may occur as a result of rounding individual items and percentages.The principle of materiality was applied to the reporting and summary of individual items in the balance sheet, income statement, statement of other comprehensive income, cash flow statement, and the statement of changes in equity.As in the 2024 reporting period, the reporting period for 2025 also comprises a full financial year of twelve months, beginning on January 1 and ending on December 31.The consolidated financial statements as of December 31, 2025 were prepared on the basis of amortized cost, however, with the following exceptions:The income statement is presented using the total cost method.The indirect method was chosen for the presentation of the cash flow statement. Liquid funds correspond to cash in hand and cash at banks.Further information regarding accounting and measurement methods are provided in section 13.1.2 CONSOLIDATION PRINCIPLESScope of consolidationThe scope of consolidation is defined in accordance with the principles of IFRS 10 and consisted of 56 companies, including Heinzel Holding GmbH as the parent company, as of December 31, 2025 (31.12.2024: 54 companies) and 7 companies consolidated at equity (31.12.2024: 9 companies).The scope of companies consolidated in the group developed as follows: