Caring

makes
it work
Annual Report 2020
Disclaimer
This report may contain forward-looking
statements. Such statements reflect the
current views of management regarding
future events, and involve known and
unknown risks, uncertainties and other
factors that may cause actual results to
be materially different from any future
results, performance or achievements
expressed or implied by such forward-
looking statements. Etex is providing the
information in this report as of this date
and does not undertake any obligation
to update any forward-looking
statements contained in this report in
light of new information, future events
or otherwise. Etex disclaims any liability
for statements made or published by
third parties and does not undertake any
obligation to correct inaccurate data,
information, conclusions or opinions
published by third parties in relation to
this or any other report or press release
issued by Etex.

Etex NV, PassPort Building,

Luchthaven Brussel Nationaal,
Gebouw 1K, 1930 Zaventem, Belgium Comment on the pictures used
VAT: BE 0400.454.404, in this Annual Report
[Link] Brussels The pictures shown in Etex’s Annual Report
2020 are in line with the company’s safety
Responsible publisher / editor: regulations, which align - or in most cases,
Paul Van Oyen, PassPort Building, exceed - the application of local COVID-
Luchthaven Brussel Nationaal, related policies. Any pictures which do not
Gebouw 1K, 1930 Zaventem, Belgium reflect the application of such rules have
been shot before March 2020.

2
 Etex in 2020 Social and
Weathering the storm
environmental
Message to shareholders 6

Consolidated key figures 8

report
How we relate to our people,
Key events 9
our communities and the world

Our commitment to people and planet 41

Managing our asbestos past 43

Safety 44

About Etex Environment 46

People 48
Our company & strategy
Community relations
and social projects 50
Who we are 13

Commercial brands 14

Our stakeholders 15

Our purpose 16
HOME - TOC

Financial
Strategy 17

Our identity 18

report
Results fuelling focused growth

Consolidated financial statements 58

Statutory auditor’s report 88

Non-consolidated accounts of Etex NV 91

Glossary 92

Activity report
Building on a strong foundation Governance
Our performance in 2020 - Message from the CFO 21
report
Leadership aimed at value creation
Building Performance 23

Exteriors 27
Corporate governance 54
Industry 31
Executive Committee 55
New Ways 35
 Our CEO engaged in a conversation with six teammates
to summarise key topics of 2020 for Etex.

We care
p Anna Zhuromska,
Regional HR Manager CEE at Etex Ukraine
about people
Connect & Care is one of Etex’s core values. Our strength lies
in our people. Dedicated and motivated teammates working
together are the essential driver of a sustainable future.

In 2020, to keep connected with our more than 11,000 employees

despite the unprecedented circumstances, we organised an employee
Watch the video
engagement survey. More than 80% of all teammates participated, and
Etex recorded an increase in employee engagement compared to 2018.
Our teammates felt more engaged, a sentiment that was further reinforced
by Etex’s response to the pandemic.

4
1 Etex in 2020
Weathering the storm

Message to shareholders
Consolidated key figures
6
8
Key events 9

5 Etex in 2020 About Etex Activity report Social and environmental report Governance report Financial report
Etex in 2020 Etex
Message to shareholders Annual Report 2020

Jean-Louis de Cartier de Marchienne,

Chairman of the Board of Directors
Paul Van Oyen,
Chief Executive Officer

Caring for our Execution on our Investing in our offsite construction

footprint and digital transformation
people remains six-pillar strategic
Our newest division, New Ways, dedicated to
our top priority roadmap high-tech offsite modular construction solutions,
experienced a tough first year due to the
In everything that we undertook during this Strengthening our core assets COVID context, but it focused on evolving from
unprecedented year, our number one priority through M&A a company incubator into a growth engine as

A milestone year
was – and continues to be – to ensure the from this year. Building on acquisitions as well as
safety and well-being of our people. In 2020, we made a number of key investments increased production capacity achieved in the past
We feel deeply for our teammates who have that will prove central to our futureproof year, 2021 is expected to deliver profitability.
been impacted by COVID. We would also like strategy. Chief among them was the acquisition

in the face of an
to express our sincere condolences to the of the business of Knauf Plasterboard Pty Significant progress was made on our
families and loved ones of teammates who Limited in Australia, a large player possessing digital pillar across all four divisions in 2020.
have tragically passed away as a result of a important assets in the form of market reach, In addition to rolling out portals to benefit
contamination in their private environment. technology and know-how. We also purchased distributors and simplify ordering processes,

unprecedented
UK-based player FSi Limited to expand our we introduced marketing automation
Like the vast majority of multinational industrial passive fire-stopping reach. capabilities, a new business model for our
organisations, our activities were affected by Cedral brand as well as a world-class customer
the coronavirus pandemic. Etex rapidly went Exiting the residential experience across all channels.

global challenge
into crisis mode, creating a dedicated crisis roofing segment
management team, implementing ambitious Driving sustainability in the way
cost control measures and intensifying With the divestments of Marley South Africa, we do business
communications with our people. We Creaton and our 50% stake in RBB NV, Etex
immediately strengthened local decision- completely exited the residential roofing Corporate Social Responsibility was
making, enabling our leaders on the field to market in 2020. As residential roofing is a introduced last year as one of our six core
take the right steps and inspiring the trust heavy construction activity, this move strategic pillars. As a result, Etex became
of our people. United in solidarity, both the is entirely in line with our strategic ambition a signatory of the UN’s Global Compact for
Executive Committee and many teammates to focus on lightweight construction methods. sustainable and responsible business practices,
Last year, we continued to make a accepted voluntary salary cuts for a period and also committed to the UN’s Sustainable
of time. Implementation of Development Goals (SDGs). We have reached
tangible contribution to the world by commercial excellence key milestones in our threefold environmental

inspiring ways of living, providing ever On the manufacturing side, we rapidly closed
factories and defined very strict safety rules Last year, we have also launched a number of
ambition: zero landfilled waste, decarbonisation
and zero consumption of potable water in
more smart, safe, beautiful and sustainable that place clear priority on our people. This initiatives to become a truly customer-centric
organisation. Throughout all our divisions,
our industrial processes. Furthermore, our
enabled us to reduce impacts as much as Environmental, Social and Governance (ESG)
building solutions. The year was marked by crisis possible and to restart our activities with we have better defined our market segments, risk rating of 18.5 out of 100 indicates that we
plenty of confidence. Teammates were developed new business models, optimised have a low risk exposure.
management and resilience, but also caring for our inspired and reassured by Etex’s response to our brand architecture and harmonised our

people and accelerating our strategic execution. Due the pandemic, which reflects in the feedback
we’ve gathered through our ‘Me & Etex’
processes, in order to deliver a superior
customer experience.
Later this year, Etex will release its first-
ever Sustainability Report in line with
to the impact of the pandemic, our top line (in like-for-like employee engagement survey. the requirements of the Global Reporting
Initiative (GRI).
terms) is likely to be challenged this year and the next, but
our performance culture, sustainability drive and customer
focus are firmly in place.

6
Etex in 2020 Etex
Message to shareholders Annual Report 2020

To our shareholders, years of unrelenting dedication. As a result, renovation upswing around the world. This has
partners, teammates and our organisation further improved on its benefitted our two largest divisions, Building Etex is ready more efficient, leaner and controlled in terms
already low lost-time accident frequency rate, Performance and Exteriors. Due to the nature of overheads and working capital, and we
customers: we deeply value reducing it from a level between 1.9 and of its activity, our Industry division was heavily for the future have made clear structural improvements
your commitment to Etex. 2.6 down to 1.4, a record low. The strong impacted by the COVID-19 situation in almost in manufacturing and supply chain that will
collaboration, resilience and unity that every geography. Overall, and given the Although our order book for the first half of benefit us even in non-pandemic times.
Thank you for your continuing characterised the year for our organisation led unprecedented context, Etex recorded only a 2021 is positive, we expect our revenue to
trust in our organisation. our people to outshine themselves in safety slight decline in revenue on a like-for-like basis. be affected by COVID-related volatility this The acquisitions we made in 2020 will fuel our
behaviours and proactive measures. year and the next. Despite this forecast, the future growth in high-potential markets. In 2021,
Lowest net debt level in history performance culture that we have invested we will continue to identify new opportunities,
World-class operations and processes in over the last year is firmly in place and as we are currently in an excellent position to
Profitability, on the other hand, recovered very delivering results. In addition, our strategic make significant additional investments.
We consolidated our manufacturing activities, strongly at the end of 2020, mainly through acceleration of sustainability and customer
which were previously housed separately by improved margins and contained overheads. experience initiatives will continue to bear fruit
division, allowing countries and regions to Even more, 2020 was Etex’s best year in terms moving forward. Paul Van Oyen,
Chief Executive Officer
focus even more on their commercial efforts. of cash generation, and our organisation has
Our three-pillar Manufacturing is now a separate activity with achieved the lowest level of net financial Today, we are equipped as an organisation Jean-Louis de Cartier de Marchienne,
its own Chief Manufacturing Officer, Christophe debt ever. to face uncertain market conditions. We are Chairman of the Board of Directors
agenda David, who joined the Executive Committee.
Bringing manufacturing (and mining activities)
ENGAGED PEOPLE Etex as a robust corporate umbrella brand. under one central “roof” will allow us to be
The campaign unfolded throughout the year, even more efficient and effective in the future
Engagement reaches new heights with teammates participating in numerous and drive the functional excellence needed
townhall meetings and subsequent initiatives. to achieve world-class manufacturing. Even
In light of the results of our comprehensive 2018 Through these events, we encouraged them to more, it enables in-depth discussions between
survey, ‘Me & Etex’, employee engagement has step forward and play their active roles in this functional experts and business leaders, and it
been high on our agenda. In order to connect effort to deliver ever-better experiences to our bridges manufacturing teams worldwide, for
with our people and ensure their well-being, we customers – as one global team. unified best practices and operational support
distributed a short version of the survey last year. of products. As announced in November 2020, at the I would like to warmly thank Jean-Louis for his
Based on their responses, we were very proud Instilling a feedback culture General Shareholders’ meeting of Etex entrepreneurial spirit, dedication and support
to see that our teammates feel more engaged A Business Process Owners (BPO) team has on 26 May 2021, Jean-Louis de Cartier de to the executive management team. Since
than two years ago – a remarkable achievement, 2019 was the first year of our Etex Awards also been created to further optimise and Marchienne will reach the end of the maximum 2006, Jean-Louis has guided Etex through
particularly given the global context. initiative, which rewards individuals and teams streamline our processes and to maximise the number of terms as Chairman of the Board. challenging times, such as the 2008 financial
for their contributions to our strategic pillars business and customer value. The Board of Directors has followed the crisis and the current COVID-19 pandemic,
Central to these results were our investments at different levels. Last year, we handed out advice of the Remuneration and Nomination and many strategic achievements, such as the
in the Etex Leadership Principles, as well as the first Etex CEO Award, recognising Process PROFITABLE GROWTH Committee to nominate Johan Van Biesbroeck acquisition of Lafarge in 2011, the divestment
our strong focus on communication as the Engineer and Coating Supervisor Michael as his successor as Chairman. To enable a of our ceramics business in 2016 or our recent
COVID-19 pandemic unfolded. Our people feel Orlowski for his work on the ‘Zero Rejects’ Exceptional financial performance in smooth transition, Johan Van Biesbroeck is exit from our Residential Roofing activities.
that internal communication has significantly project at our fibre cement plant in Neubeckum, trying times serving as Vice-President of the Board since Moreover, the company has improved its
improved, and that we faced the situation Germany. In total, we also distributed 195 Etex November. governance under his guidance.
together as one unified organisation. Excellence Awards and 1,080 Etex Impact Like most industrial players, Etex took a
Awards to teammates around the world. big hit at the beginning of the year due to
Paul Van Oyen,
Globally united under the Etex lockdown measures which were taken in several Chief Executive Officer
corporate brand OPERATIONAL PERFORMANCE geographies, mainly in the second quarter,
resulting in market demand contraction and the
Early 2020, we launched ‘United to Inspire’, A record safety year temporary closure of many of our plants.
an exercise involving teammates from around
the world. The goal? Increasing customer When it comes to safety, Etex recorded an However, markets recovered well by the
loyalty, engagement and trust by positioning outstanding achievement in 2020 after two third quarter of 2020, mainly due to a strong

7
 2% 1South
Etex in 2020 Etex
Key figures % Annual Report 2020
2% Colombia Africa
3% Argentina
Poland
3% 21%
Peru
France
3%

Consolidated
Nigeria

4%

Key Figures
Chile

5%
Spain

2020 revenue
breakdown
New Ways 7%
Benelux
by geography*
1%
2018 VAR. 2020
EUR MILLION 2016 2017 2018
RESTATED (2)
2019 2020
VS 2019 Industry
15% Other European
Revenue 2,883 2,794 2,897 2,897 2,940 2,616 -11.0% 6% countries

Recurring operating income (REBIT) 256 266 245 245 292 311 6.5%
8%
Rest of
the world
Recurring operating cash flow (REBITDA) 417 420 405 433 483 484 0.2%
Exteriors
% of revenue 14.5% 15.0% 14.0% 14.9% 16.4% 18.5% -
14%
Non-recurring items -19 3 -25 -25 -24 -39 - 24% 12% Germany
United Kingdom

Operating cash flow (EBITDA) 404 432 391 418 557 468 -16.0%

Operating income (EBIT) 237 269 221 221 268 272 1.5% 2020 revenue
breakdown
% of revenue 8.2% 9.6% 7.6% 7.6% 9.1% 10.4% - by division* Revenue
Net profit (Group share) 127 148 140 140 176 194 10.2% 2020 2,616
Net recurring profit (Group share) 135 141 166 166 187 215 15.1% 2019 2,940
Building
2018 2,897
Capital expenditure 137 148 192 192 169 112 -33.7% Performance
Net financial debt
(1)
630 633 584 694 331 15 -95.5%
69% in EUR million
2017

2016
2,794

2,883
Working capital 249 261 271 271 224 137 -38.8%
(1)
Capital employed 2,258 2,341 2,352 2,462 2,196 1,868 -14.9%
(1)
Return on capital employed (ROCE) 10.1% 12.1% 9.7% 9.5% 11.5% 13.4% -
Recurring Net
operating 2020 484 recurring
EUR PER SHARE
cash flow 2019 483 profit 2020 215
Net recurring profit (Group share) 1.72 1.80 2.12 2.12 2.39 2.75 15.1%
(REBITDA) 2018 433 (Group Share) 2019 187
RESTATED(2)
Net profit (Group share) 1.63 1.89 1.80 1.80 2.25 2.48 10.2% 2018
2018 405 166

Gross dividend 0.48 0.53 0.58 0.58 0.58 (3) 0.70 (4) 20.7%
2017 420 2017 141
Dividend growth rate 9.1% 10.4% 9.4% 9.4% 0.0% 20.7% - in EUR million 2016 417 in EUR million 2016 135
Recurring distribution rate 27.9% 29.4% 27.4% 27.4% 24.3% 25.5% -

PERSONNEL

Personnel 15,011 14,510 14,458 14,458 13,260 (5) 11,387 (5) -

Frequency Gravity
NB: Definitions of the alternative performance measures are included in the glossary at the end of this report. 2016 values include discontinued operations rate of 2020 1.4 rate of 2020 0.08
(i.e. the ceramics business in Peru, Colombia, Chile & Argentina).
(1) These values are expressed excluding the favourable impact of the non-recourse factoring programme (note 16 of the Consolidated financial statements discloses lost-time 2019 2.2 accidents 2019 0.11

details on non-recourse factoring); the 2017 ROCE value excludes Pladur.

(2) These values are restated for IFRS 16 (lease) impacts consistently with 2019 with respect to lease debt, leased assets and depreciation of lease assets.
accidents 2018 2.2
Level of absenteeism
after an accident.
2018 0.40

(3) The dividend for 2019 (paid oud in 2020) is made up of EUR 0.29 as decided during the General Shareholders Meeting of 27 May 2020, and EUR 0.29 as decided during Number of lost-time 2017 2.6 The higher the rate, 2017 0.15
the Extraordinary Shareholders Meeting held on 22 October 2020. accidents per one million the more severe the
(4) Subject to the approval of the General Shareholders Meeting of 26 May 2021. 2016 1.9 accident. 2016 0.31
hours worked
(5) The personnel figures exclude the Residential Roofing companies which have been divested in 2019 (Marley Ltd and Umbelino Monteiro) and 2020
(Creaton, Marley (SA) (Pty) Ltd and our 50% stake in RBB NV). The 2020 figure includes the personnel of FSi Limited, which was acquired by Etex in September 2020.
It excludes, however, the personnel of Knauf’s former plasterboard business in Australia, as this operation was completed in February 2021.
* The revenue excludes the Residential Roofing companies which have been divested in 2020.

8
 Etex in 2020 Etex
Key events Annual Report 2020
MARCH
E2E (an Etex-Arauco
joint venture) company
Tecverde, part of our New

Milestones
Ways division, delivers the
MARCH
first of five lightweight, modular
Etex becomes a signatory of the
hospitals. Built using industrialised
UN Global Compact –
construction techniques, they are
FEBRUARY a global corporate sustainability

of 2020
completed in an average of 33 days
Over 8,500 Etex teammates in 38 countries initiative committed to the
each to help fight the pressure of
attend 125 townhall meetings across our entire 10 business principles of the United
COVID-19 in Brazil.
organisation to unite with a common purpose Nations and their 17 Sustainable
> READ MORE ON P. 38
and a brand-new corporate identity. Development Goals.
> READ MORE ON P. 18 > READ MORE ON P. 41

MAY
We officially introduce our Etex Leadership
Principles: the result of a global, multi-
stakeholder collaborative exercise.
These future-focussed principles align
with our corporate strategy and are
built into the performance review
APRIL cycles of Etex teammates.
The peak impact of the COVID-19 > READ MORE ON P. 48
pandemic on Etex is this month; the
activities of around 48% of our facilities MAY
are put on hold as numerous countries We celebrate the first
roll out lockdown measures around Etex CEO Award with two
the world. individuals and three teams
as nominees. Winner Michael Orlowski,
based in Neubeckum, Germany,
showed exemplary dedication JUNE
to the Etex values within the context MAY
Etex is back on track
of the Zero Rejects project. During our General following the lifting of
SEPTEMBER
> READ MORE ON P. 49 Meeting of Shareholders, global lockdowns; 100% of
Christophe David joins Etex’s
two new Board members are our production sites are up
Executive Committee as
appointed: Muriel De Lathouwer, and running.
Chief Manufacturing Officer.
permanent representative of
In this role, he will drive us
SPRL MucH, and Hans Van Bylen,
towards becoming a global
permanent representative of
manufacturing organisation of
ViaBylity BV.
the future – all while staying
> READ MORE ON P. 54
close to our local businesses.

> READ MORE ON P. 55

JANUARY 2021
Etex launches PLURATECT
MARINE LIGHT, the largest
lightweight fire protection
DECEMBER board for marine applications
JULY
Etex runs an in-house-developed SEPTEMBER Etex commits to 100% sustainable available on the market. It
‘Me & Etex’ employee engagement survey We reach a record low lost-time accident electricity sourcing where achievable, combines weight-reducing
in 15 languages. An impressive 8,500 frequency rate of 1.4. This figure is the direct certified by guarantees of origin. Etex technology with superior mechanical
teammates respond to this completely result of structural changes implemented over meets this goal for all production sites properties – and is 100% recyclable.
digital initiative, and their feedback is very the last two years to transform Etex into a global, in Europe and Chile, and achieves a > READ MORE ON P. 33
positive: engagement increased by 5%! unified, simpler and more agile organisation. total of 50% sustainable power globally!
> READ MORE ON P. 44 > READ MORE ON P. 46
> READ MORE ON P. 49

9
Etex in 2020 Etex
Key events Annual Report 2020

Paving the way toward a

fire-stopping and lightweight future

In addition to our exit from the residential The major acquisition of top-three Australian
roofing segment, Etex also completed a plasterboard player Knauf Plasterboard
number of acquisitions that will play important Pty Limited, announced in November 2020
roles in the evolution of our business into an and completed on 26 February 2021, marks
industry-shaping lightweight construction a key strategic milestone, enabling Etex to
player. Welcoming these new businesses into expand our footprint in this well-developed
the Etex group constitutes the other side of construction market. In addition to a strong
our strategic refocusing initiative, as they offer cultural fit with Etex, Knauf Plasterboard offers
access to proven technologies, greater market a competitive product portfolio, experienced
reach and strong talent. teammates, state-of-the-art production
facilities and a broad network of partners
On 25 September 2020, Etex announced our and suppliers.
Marking Etex’s exit from the acquisition of passive fire protection specialist
FSi Limited in the UK. This new business Completed on 27 January 2021, Etex purchased
residential roofing segment reinforces our intent to continue to lead in a majority stake in French innovative offsite
passive fire protection solutions around the construction company e-Loft, which is based
world, opens up new markets to FSi, and brings in Brittany. The company, which operates a
us even closer to our customers in the UK state-of-the-art production facility, develops
On 22 October 2020, Etex signed an agreement “Not only is there a strong strategic and cultural and Europe. a number of modular and custom timber-
with Terreal, a France-based roofing and fit between Creaton and Terreal, but this framed solutions for homes and multi-family
building solutions pioneer, for the divestment agreement enables both of our organisations to residences. It is the New Ways division’s first
of our Creaton roof tile business. This milestone focus even more strongly on our goals”, asserts business in continental Europe and will benefit
marks the fifth roof tile business divestment Etex CEO Paul Van Oyen. from Etex’s global footprint, sales processes
for our organisation in the last two years, and operations.
and the final step in our complete exit from “Etex is poised to fully dedicate our efforts
the residential roofing segment. Since 2019, to shaping the future of construction by
Etex has sold Umbelino Montiero, Marley Ltd, developing and delivering industrialised,
Marley South Africa, its 50% stake in RBB NV lightweight and modular building solutions.”
and Creaton.

Two years ago, Etex defined its goal to become

a global player in lightweight, sustainable,
cost-effective and quality-focussed building
technologies. Producing clay and concrete
roofing tiles is a heavy industry. As such,
this activity no longer aligns with our
fundamental ambition.

10
 Our CEO engaged in a conversation with six teammates
to summarise key topics of 2020 for Etex.

We care
about safety
Keeping our people safe is our number one priority. We have
implemented rigorous safety procedures on all our sites to prevent
and avoid accidents. Our ambition is to ensure that every Etex
colleague comes back home safe and sound every day.
Watch the video
For Etex, 2020 was the best year ever in terms of safety performance.
p Yves Van den Kerkhof, Our employees expressed great satisfaction over the safety rules,
Global EHS Manager including those regarding COVID. A clear priority given to safety and people
allowed us to restart our operations with much confidence from our people.

11
2 About Etex
Our company & strategy

Who we are
Commercial brands
13
14
Our stakeholders 15
Our purpose 16
Strategy 17
Our identity 18

12 Etex in 2020 About Etex Activity report Social and environmental report Governance report Financial report
About Etex Etex
Who we are Annual Report 2020

What we do 3 values we all share

Through our four divisions, we strive to lead
within well-defined business segments.

Building Performance Industry

p 23 Leader in plasterboards and fibre cement p 31 Front runner of engineering expertise to
boards, and the global reference in fire drive the future of high performance thermal
protection solutions for the residential and acoustic insulation as well as fire protection
and commercial segments. in the industrial, aerospace and energy sectors.

Exteriors New Ways

p 27 Provider of innovative, durable, high p 35 As a new division created in January 2020,
performance and beautiful fibre cement New Ways offers high-tech offsite modular
exterior materials for architectural, solutions based on timber and steel framing.
residential and agricultural projects.

United to
Sites: plants,
quarries, offices

>110
Operating Country

deliver inspiring
Other countries with teammates

Export Country

ways of living

Etex inspires the world to

42
Operating countries

build safe, sustainable, smart

and beautiful living spaces by >11,000*
providing lightweight solutions to its Teammates

customers, including fibre cement and

plasterboard applications, offsite modular
building systems, high performance SITES

insulation and fire protection. Plasterboard Quarries Offsite/Modular

Fibre Cement Insulation Innovation and Technology Centre
Fire Protection Plaster & compounds Other
* Excluding the Residential Roofing companies which have been divested in 2020 as well as the personnel of Knauf’s former plasterboard business in Australia,
13
as this operation was completed in February 2021. The figures includes the personnel of FSi Limited, which was acquired by Etex in September 2020.
About Etex Etex
Commercial brands Annual Report 2020

Our main
commercial
brands
Global

Building New Ways

Performance With its New Ways division, Etex aims to
shape the future of construction by offering
Spanning our Industry and Building lightweight, industrialised, offsite building
Industry
Europe, Argentina
Performance divisions, Promat is our and Peru solutions. The division’s companies (either
global brand for passive fire protection, fully-owned or in the form of various joint
high-temperature applications and Promat is the Industry division’s principal brand ventures), based in Europe and Latin America,
intumescent seals. We supply a range of and the benchmark for passive fire protection, offer an extensive portfolio of solutions through
solutions worldwide, including ducting, fire-stopping solutions and applications the brands E2E, Tecverde and EOS, featuring
structural protection, compartmentation, requiring high-temperature and acoustic wood and steel framing technologies, ranging
Global
insulation and fire-stopping solutions. insulation. The Promat range of products is the from engineered studs and tracks to fully

Gypsum and Fibre

Our products are used in a range of Exteriors most comprehensive of its kind on the market designed and engineered houses and buildings.
Cement - Argentina industries and applications, including and includes calcium silicate, microporous and
residential, sports and leisure, Exteriors brings aesthetically attractive and high- intumescent materials, fibres and textiles and
healthcare, hospitality, offices, performing fibre cement exterior solutions to the cementitious sprays.
education and tunnels. residential, architectural and agricultural sectors
through three core brands. All Promat materials are designed for use in the
Gypsum Durlock, Gyplac, Kalsi, Siniat most demanding environments and extreme
Latin America and Superboard, our lightweight Cedral offers beautiful fibre cement solutions temperature conditions, and are available in
dry construction brands, supply tailored to each personality and living space, various forms. These include rigid and flexible
gypsum-based building materials enabling true customisation. For roofs, façades, boards, vacuum-insulated panels, custom-made
and fibre cement boards. They and terraces, Cedral provides unique, attractive parts, blankets, wools, sprays and intumescent LOGO
End-to-end offsite
offer interior and exterior systems and high-performing products. Our fibre cement strips and granules. These solutions are used E2E
building solutions
(partitions, ceilings, through-wall slates protect homes, our sidings bring creative worldwide in a range of applications as diverse Chile
Fibre Cement flooring and decorative systems) façade visions to life and our terraces offer a as renewable energy, fire doors and dampers,
Asia and Africa
that simplify construction, boost unique tactile experience. batteries, furnaces, glass and steelmaking,
occupants’ quality of life and deliver industrial piping, steel and concrete structures
customer-focussed value and Equitone is our global brand for architectural and trains. Through our products and solutions,
fibre cement façade materials, specified for Steel-framing systems
services to our partners. Promat helps make our customers’ processes
UK
mid- to large-sized buildings. We work with and end products safer, more efficient
Fire Protection
Global and for architects to design smart and resilient and sustainable.
materials that reduce environmental impacts. Our
customers seek new ways of building above and
beyond accepted standards – actively influencing Wood-based framing
technology
industry-wide change. Brazil

Gypsum and Fibre Eternit fibre cement corrugated sheets

Cement - Europe
contribute to durable and sustainable agricultural
Gypsum and Fibre
and residential structures. In Europe, we strive Cement - Europe
to be a partner to entrepreneurial farmers by
helping them to protect their assets and to grow
their potential. In Latin America, we offer high
Fibre Cement performance and excellent value for cost in the Global
Latin America
low-income housing sector.

14
About Etex Etex
Our stakeholders Annual Report 2020

Financial Our commitment

stakeholders Optimally balancing sustainable growth while guaranteeing transparent communication about our
performance and outlook.

Shareholders, investors How we connect

and financial institutions. Etex’s shareholders are presented with relevant information about our business during our
annual shareholders' meeting. Full-year and half-year results as well as strategic developments
are communicated to our financial stakeholders through press releases and other documents
published on our website (dedicated Investor Relations and Annual Report sections).

Internal Our commitment

stakeholders Maximising their safety, informing them about key decisions, connecting with each other and
facilitating personal and professional development.

Our
Current and future employees, How we connect
Senior Leaders and trade unions. Our local businesses maintain a dialogue between more than 11,000 employees in 42 operating
countries through tailored communication channels. We engage with our employees at group level
through our intranet platform Etex Core, events, webinars and various communication campaigns.

stakeholders Our corporate

communications team
can be reached at
Etex’s Senior Leaders from around the world gather annually (2020 was an exception in the
context of the COVID-19 pandemic) and attend webinars hosted by the Executive Committee
every two months. These events encourage our leaders to ensure that every single one of our
employees is informed.

info@[Link]
External Our commitment

stakeholders Diligently establishing and building upon sustainable and transparent relationships.

Customers, employees, Local communities, NGOs,

How we connect
As specialists within their geographies, our local businesses design and implement optimal
partners, suppliers, shareholders, suppliers and the media. communication channels with their communities.

investors, media, job applicants, local At group level, we partner with international NGO Selavip, which supports housing projects for
underprivileged people in Africa, Asia and Latin America.
communities... Our stakeholders are the
drivers of what we do. They help us determine Press relationships are nurtured at a local level. Belgian and foreign journalists are also in direct
contact with Etex’s corporate communications team.
the steps towards the future, not only when it
comes to product and commercial excellence, but
also in terms of sustainability and positive global
Commercial Our commitment

impact. Providing them with relevant information stakeholders Proactively meeting their needs by offering superior building solutions and empowering them to
construct the most efficient, ambitious and inspiring projects.

about Etex is paramount to build a trust-based Architects, construction companies,

distributors, contractors, installers,
How we connect
Etex shares information with its customers and other commercial stakeholders which suits their
relationship and to reach a higher level specifiers and homeowners. needs. On group level, our Innovation & Technology Centre in Avignon, France invites customers
to co-innovate during our annual Innovation Days (2020 was an exception in the context of the
of transparency. COVID-19 pandemic). Our purchasing team engages with our largest suppliers at group level.

15
About Etex Etex
Our purpose Annual Report 2020

Our continuing An ambition that Our industry

journey towards a is deep-rooted in faces tremendous Our

Developing
people and

our Etex culture challenges and meaningful three

relationships
values

promising future At Etex we continuously strive to contribute to

the transformation of the construction industry
with the same pioneering spirit that led to the
research, development or improvement of fibre
cement, plasterboard and fire protection solutions
opportunities
Our world faces enormous needs for
sustainable and qualitative living spaces. In the
midst of global megatrends such as population
for over a century. Our purpose gives direction growth, resource scarcity, climate change, Doing the
In 2020 we involved all Etex teammates worldwide in the launch of the to our strategy, guiding us to foster stronger regulatory complexity, disruptive technologies, right thing
and enjoying
#UnitedToInspire engagement campaign. The aim: to proudly unite all Etex and closer ties with customers and leveraging rapid urbanisation and housing crises, Etex is
outperformance
innovation as a driver of success. It motivates already a key player in fire protection, insulation
employees and earn their support to fulfil our Etex purpose. us to enhance processes while committing to and fibre cement solutions, and holds strong
safety in the workplace. It drives us to create an positions in all its markets and geographies.
inclusive environment which enables employees
to grow their expertise within innovative, To make a real difference for our customers
collaborative teams. we need to further join forces and focus on Driving
valuable
our true strengths. Soon we will be close
change
Our purpose gives meaning to our values. to ten billion people on this planet, needing
‘Connect and Care’ with the world and with ever more quality space for better living and
each other: to closely work together with working. We need to work together to make
Meeting the needs Sustainable teammates as well as with partners and full use of new technologies and possibilities,
customers, to bring out the best in each other to stay close to our partners, to be ahead in our
of the world with Our world-leading plasterboard, insulation, and to care for safety and well-being. ‘Passion industry and to provide ever better solutions to Our
our best strengths
lightweight and thermally efficient products,
and modular building technologies optimise
for Excellence’ to improve living conditions.
‘Pioneer to Lead’ to drive valuable change for
our customers.
three-pillar Engaged
resource use. We strive to reduce waste and the world. By building on our strengths, we believe that agenda people
At the very core of Etex is a clear purpose: boost efficiency in our own factories as well. we are fully equipped with the resources, focus,
inspiring ways of living. It is an invitation talent and drive to harness industry disruption,
to deliver our customers an outstanding Smart paving the way for agility, partnerships and Empowering
experience with lightweight building solutions ever-more-effective solutions. As part of this colleagues
that tackle the megatrend challenges that Etex products and solutions bring affordable, approach, we are convinced that lightweight through unity and
our world is confronted with. It guides us to efficient and resource-saving benefits to the entire and modular building technologies hold Operational shared values
performance
leverage expertise and contribute to our unique supply chain via innovation (through our Innovation critical keys to a safer, smarter, more beautiful
promise of providing ever better solutions for and Technology Centres), digital, modular and sustainable world.
smart, safe, sustainable and beautiful spaces. technologies and lightweight construction.
Profitable
Safe Beautiful growth
Continuously
Etex’s innovative fire protection, plasterboard, Our unique siding, façade, roof and terrace
improving processes
fibre cement and insulation solutions protect solutions offer aesthetic appeal,
and committing
buildings, infrastructure, home appliances and personalisation and architectural freedom. Innovating through
to safety
even vehicles from damage. a close collaboration
with our customers

16
About Etex Etex
Strategy Annual Report 2020

Strong delivery on our

PILLAR 3 renewable sources and the achievement of all online and offline channels, paving the way for
Accelerating growth 100% sustainable sourcing for all plants in a digitally enabled customer service organisation.
in passive fire protection Europe and Chile. New opportunities for growth have been identified
through the use of digital in industrialisation,

strategic roadmap in
Etex continues to be a global leader in the passive In terms of decarbonisation, we deployed sustainability and new services.
fire protection market. Our acquisition of continuous improvement initiatives across
UK-based passive fire-stopping manufacturer FSi the organisation with concrete metrics and PILLAR 6
Limited in September 2020 further strengthens dashboard, launched seven photovoltaic projects Disrupting with new ways of building

challenging times
our position within the fire-stopping segment. In in Spain, Italy, France, Belgium and Germany, and
becoming part of our business, FSi will benefit introduced energy-saving technologies such The New Ways division was launched in January
from our global reach and technological know-how as pinless mixers and heat recovery equipment. 2020, gathering our expertise, technologies
in fire-stopping, whilst bringing Etex even closer to During the year, our consumption of potable and initiatives in modular and industrialised
its customers in both the UK and Europe. water has been reduced to 23% of total water construction under a single, more agile
usage, with zero being our ultimate goal. organisational structure.
PILLAR 4
Driving sustainability In 2020, we reduced the proportion of our waste In February 2020, we completed the acquisition
Throughout 2020, despite the pandemic, Etex successfully accelerated the in the way we develop business sent to landfill to 20%, a small but steady decrease of a majority stake in Brazilian timber-framing and
compared to the previous year. industrialised construction pioneer Tecverde
execution of its six-pillar strategy. Further strengthening our core businesses
In 2020, sustainability became one of our six through E2E, our 50/50 joint venture with Arauco.
through mergers and acquisitions, completing the exit of the residential core strategic pillars. We are implementing PILLAR 5 The addition of Tecverde to our New Ways division
roofing segment as planned, and introducing sustainability as a core element step-by-step initiatives and projects to improve Embedding digital in our value chain, will enable us to broaden our offering and to

of our strategy – all whilst delivering record cash flow. our social and environmental impact. In 2020, driving optimisation and growth achieve our ambitious business plans in South
Etex became a signatory to the UN’s global America and Europe.
compact for sustainable and responsible business Our goal is to embed digital in the core of our
practices, adding to our existing commitment to company, with customer centricity at the centre of During the pandemic, we devoted significant effort
its Sustainable Development Goals (SDGs). Our our efforts. In 2020, we reached a number of key to refining our modular construction strategy
PILLAR 1 • accelerating our digital transformation in the ‘House of Brands’ project with the aim of business practices are adapted to sustainability, milestones on our digital marketing, e-commerce and evaluating potential targets for mergers
Reinforcing our strong order to offer new channels to interact with refocussing our fibre cement brands around the which also reflects in our ESG rating of 18.5 out and innovation roadmap, and further developed and acquisitions. Turning our focus towards our
position in plasterboard our customers; real-life needs of our customers. Market insights of 100, meaning Etex ranks favourably amongst our digital strategy for 2021-2022. key European markets, January 2021 saw Etex
• developing new business models formed the basis of a carefully considered and its peers in managing material risks associated purchase a majority stake in French modular
In February 2021, we completed the acquisition to enhance our market position simplified brand architecture, which was rolled with the areas of environmental, social and We began rolling out My Etex, a worldwide building company e-Loft, providing our New Ways
of a major player in the Australian plasterboard and profitability. out through a series of in-depth workshops across governance standards. customer portal which includes e-ordering division a gateway into continental Europe.
market. The business, with its state-of-the-art different geographies. capabilities to simplify order processes. Marketing
facilities and strong pool of talent, expands Etex’s PILLAR 2 We have partnered up with leading sustainability automation capabilities were also launched,
geographic footprint into a major new region Maximising our fibre cement position Aligned with this exercise, we also made rating company Ecovadis in the development of enabling us to offer the right messages at the
with excellent potential to build a platform for significant progress on building our digital a supplier rating programme, which was launched right time to the right customers. We introduced a
future growth. In 2020, having successfully addressed the quality footprint, enhacing the way customers experience in March 2021. 2020 saw us achieve the milestones brand-new business model for Cedral. A world-
issues which we faced in 2019, we embarked on our new brand architecture. of 50% of our worldwide electricity supplied from class customer experience was unrolled across
Our market landscape and customers’
expectations continue to evolve at an ever-
increasing pace. Our goal is to adapt to these
changes and transform to become a truly
customer-centric organisation.

During 2020 we made significant steps to deliver

superior customer experiences by:
• reviewing our core plasterboard segments
and identifying the best ways to meet
their needs;
• aligning our structures and processes to
take a more harmonised approach towards
commercial excellence;

17
About Etex Etex
Our identity Annual Report 2020

Speaking in one Teammates?

voice as a strong Why do we call Etex colleagues ‘teammates’? True to our Etex sense of
purpose and values - especially ‘Connect and Care’ - we are inspiring
global team colleagues for each other and inspiring partners for our customers. We
are highly ambitious to make a difference in improving quality of living
The next step forward is to increase the trust for all. We can only achieve that goal if we collaborate and do good for
of customers globally by building Etex into a those closest to us. Caring for our fellow teammates is key to put our joint
strong corporate brand. The Etex umbrella purpose into practice. Each and every one of us can shine and should be
brand aims to unite all employees worldwide proud to be an active member of the Etex team, across countries and
as one team, focused on supporting a portfolio cultures. Team spirit drives our collaborative culture!
of local, regional and global commercial brands.

To prepare the path, a task force was set up

with brand specialists from every Etex division
and key people from the Etex corporate brand

Globally supported
team. Based on their insights a new Etex brand
identity was developed. to make them feel and enjoy the drive of being and efficient connection with the commercial
one united Etex family, a strong global team in brands, thus catalysing a brand ecosystem that
“The new brand identity enables which each teammate plays an active part. supports and further develops them. Simple

by engaged
Etex teammates worldwide to speak in and efficient endorsement guidelines have
one voice and present themselves to the As the numerous shared reactions and videos been introduced, enabling the corporate brand
world as a united and confident team.” from all over the world attested, the global and the commercial brands to take benefit of
events created much enthusiasm for the united each other. The Etex commercial brands bring

teammates
p Lionel Groetaers,
Head of Corporate Communications
Etex movement. This year several follow-up Etex’s promise of “Inspiring ways of living” to
campaigns and initiatives are scheduled to the market.
strengthen the global team spirit and nurture
employee engagement.
Engaging all
co-workers
Showing our Short testimonials from
The first priority was to get all Etex employees Etex teammates around the world
on board and make them feel proud and colours to the world
Early 2020 a refreshed involved as true Etex teammates. An employee “We are one family, one team”
p Miguel D’Eboli, Etex Munro, Argentina
guide and a corporate video explained the Etex As the refined corporate brand identity was
Etex story and identity were story in an accessible way. revealed, it was gradually installed in and on “Our great Etex family inspires us
launched with all employees “We want each employee to feel proud
Etex sites around the world. The hexagon shape
refers to the logo and is inspired by the Etex
to constantly improve ourselves”
p Yonis Vargas Cera, Etex Cartagena, Colombia

worldwide. It was the culmination of and motivated, connected and inspiring

their global teammates.”
lightweight solutions. With six sides and six
angles, it symbolises a sense of collaboration “Stay united to complete
a collaborative effort of many years. p Malcolm Stamper,
and partnership, close to the Etex values – your work together, as a team
it makes it easier”
especially ‘Connect and Care’. It is a strong and
First Etex fine-tuned its purpose – Inspiring Corporate Brand Coordinator
solid shape that evokes strength and excellence.
p Edi Kurniawan, Etex Gresik, Indonesia

ways of living – to meet the urgent needs of The brand engagement programme kicked
off with a teaser campaign inviting all Etex
Different formats of the hexagon are used to
create dynamism as well as unity – in an overall
“A close-knit team enables
personal growth”
the world and the challenges of the building teammates to take part: ‘Are you ready to team
up?’ In the first months of 2020 a series of
warm and friendly colour palette with a caring
touch and prominent Etex orange.
p Roberta Facheris, Etex Filago, Italy

industry. It refocussed the company on its global town hall meetings featured the theme
line ‘United to Inspire’. These team building The refined identity is a crucial step in a
strategy towards offering lightweight events were set up to inform and enthuse journey that will allow Etex more than ever to

solutions that are ever more safe, every Etex co-worker across the world about
the ambitions driven by our purpose and the
express a close connection with its markets
and customers. The shapes and colours of the
sustainable, smart and beautiful. refined Etex identity. The main objective was refined corporate brand identity allow an easy

18
 Etex
Annual Report 2020

Our CEO engaged in a conversation with six teammates

to summarise key topics of 2020 for Etex.

We care
p Mel de Vogue,
Chief Financial Officer
about performance
As an organisation, Etex strives to pave the way toward a sustainable
future. Good results are an important part of this future. In addition to
focussing on people, safety and strategy, we also prioritise performance
and profitability.
Watch the video
Despite the COVID-19 pandemic which challenged our top-line, Etex reports
outstanding financial results. Our REBITDA is slightly up year-on-year,
we recorded our best year ever in terms of cash generation, and we reached
the lowest net financial debt level in our history!

19
3 Activity report
Building on a strong foundation

Our performance in 2020 - Message from the CFO

Building Performance
21
23
Exteriors 27
Industry 31
New Ways 35

20 Etex in 2020 About Etex Activity report Social and environmental report Governance report Financial report
 Activity report Etex
Our performance in 2020 - Message from the CFO Annual Report 2020

Message
from the CFO Revenue in 2020 2020 results in a nutshell
2,616 Total sales: EUR 2,616 million, including the impact of unfavourable
million euro exchange rates compared to 2019 (more than EUR 100 million) and
2020 was a challenging year from a financial performance perspective. Like-for-like decrease the EUR 125 million negative impact related to scope changes.
The revenue of Etex went down by 3.1% year-on-year to EUR 2,616 million on of 3.1% vs. 2019 The COVID-19 pandemic led to a year-on-year revenue reduction of
around EUR 87 million, or -3.1%, excluding the impact of currency
a like-for-like basis, but the company still recorded a double-digit REBITDA translation and of the disposed British, Portuguese and
improvement (+10.9% like-for-like) to reach EUR 484 million. As a result, the South African clay roof tile businesses.
REBITDA margin reached 18.5% and the net recurring profit increased by
Gross profit: EUR 848 million or 32.4% of sales, vs 30.5% in 2019,
15.1% to EUR 215 million. The free cash flow before dividends, acquisitions through the efficient management of product mix, procurement
and disposals of businesses reached, for the second year in a row, its highest and operations.
historical level, at EUR 313 million. Combined with the successful disposal of
Overheads on sales ratio: stable at 20.7% (same ratio as in 2019),
non-core businesses, the net debt decreased to EUR 15 million, its lowest resulting mainly from strict cost control together with the restructuring
level ever. initiatives implemented in prior years.

Operating income before non-recurring items (REBIT):

EUR 311 million, up by EUR 56 million like-for-like, representing 11.9% of
A general in 2020. The remaining 3.7% negative impact scope (6.1%), hyperinflation accounting and sales. In 2019, the REBIT amounted to EUR 292 million, or 9.9% of sales.
on revenue is due to hyperinflation accounting foreign currency translation (4.6%) compared
overview of our and foreign currency translation mainly from a to 2019. Net non-recurring charges: EUR 39 million, with significant one-off gains
weaker Argentinian and Chilean peso, Brazilian mainly with respect to the disposal of Residential Roofing businesses
worldwide results real and Nigerian naira. Including the change Etex’s net recurring profit (Group share) and non-operational assets, offset by impairment charges and further
of scope, the currency exchange rates and was up by 15.1% to EUR 215 million in 2020, restructuring. The operating income (EBIT) reached EUR 272 million vs
The COVID-19 pandemic impacted Etex’s hyperinflation accounting impacts, the revenue another record performance. The non-recurring EUR 268 million in 2019.
revenue in 2020, with a decrease of 3.1% was down 11.0%. items relate to restructuring initiatives and
like-for-like. This decrease is lower than the consequent impairment (mainly linked to the Net financial charges: a sharp decrease from EUR 31 million in 2019
global economic recession in 2020. The decline Our REBITDA amounted to EUR 484 million, closing of our plasterboard-paper production to EUR 25 million in 2020, resulting from de-leveraging, hyperinflation
in revenue is due to severe lockdown measures when compared to 2019, this represents facility in France) and to significant gains impacts and low interest charges.
which were taken in several geographies, mainly a like-for-like increase of 10.9%. This on the disposal of non-operating assets and
in the second quarter, resulting in market demand outstanding performance in these businesses. The company’s net profit Net profit (Group share): improvement from EUR 176 million to
contraction and the temporary closure of several unprecedented circumstances is mainly reached EUR 201 million in 2020, up 11.4% EUR 194 million.
plants. Despite strong investment in brands, attributable to the combination of improved year-on-year.
improved service levels and a catch-up movement margins and contained overheads. Net recurring profit (Group share): increase from EUR 187 million to
in sales post lockdown, all Etex divisions recorded Margins increased thanks to product mix Cash generation reached a record level of EUR 215 million.
top-line decline except Residential Roofing. management as well as cost reductions EUR 313 million before dividends, acquisitions
The 4.2% negative scope impact on revenue in external procurement and our own and disposals of businesses, more than doubling Net financial debt: the decrease from EUR 331 million at the end of
is mainly attributable to the disposal of our production processes. Overheads were the 2019 level. This strong cash generation is December 2019 to EUR 15 million at the end of December 2020 is due
Residential Roofing businesses in the United strictly controlled from the beginning of partially the result of strict capital expenditure to operating cash flow generation on top of the business disposal
Kingdom and Portugal in 2019, in South Africa in the COVID-19 pandemic, with a like-for- management due to the uncertainty surrounding proceeds. It also includes the positive effects of a non-recourse factoring
p Mel de Vogue,
mid-2020 and, to a lesser extent, of the French like reduction of 5.9% to be compared to COVID-19, but also of a closely monitored and programme set up in 2015, which amounted to EUR 159 million at the
Chief Financial Officer
polypropylene honeycomb blocks and panels a like-for-like reduction of 3.1% in revenue. improved working capital and lower cash-outs end of 2020 (vs EUR 154 million at the end of 2019). Excluding this non-
producer Nidaplast, in 2019. This impact was As a result, the REBITDA margin reached related to the implementation of restructuring recourse factoring programme, the net financial debt would have been
partially offset by the acquisition of FSi Limited, its highest level ever at 18.5%, compared to plans compared to 2019. EUR 174 million, a decrease of EUR 311 million compared to the end of
a passive fire protection business in the UK, 16.4% in 2019, despite negative impacts of 2019 (EUR 485 million).

21 21
Activity report Etex
Our performance in 2020 - Message from the CFO Annual Report 2020

At the end of December 2020, Etex’s net pandemic impacting nearly all geographies. businesses in its Residential Roofing division
financial debt decreased to EUR 15 million, Revenue was severely impacted from mid- in 2020. Marley (SA) (Pty) Ltd was sold to the
a reduction of EUR 316 million compared to its March, mostly in Southwest Europe, Latin South African Kutana Investment Group, and
level at the end of 2019 (EUR 331 million). America and the UK, and was only partially Creaton businesses in Germany, Hungary, Poland
This reduction reflects the strong free cash offset by solid performance in Eastern Europe. and Belgium were sold to Terreal. Earlier in 2020,
flow generation, with a free cash flow before The retail segment experienced little impact Etex also sold its 50% stake in RBB NV (Belgium).
dividends, acquisitions and disposals of of the pandemic with an increase in DIY and REBITDA in 2020

484
EUR 313 million (compared with EUR 152 million renovation, while the project segment was Industry registered a like-for-like revenue
in 2019), and, to a lesser extent, the disposal heavily impacted in some geographies. decline of 18.9% to EUR 144 million. The division
proceeds net of acquisitions. The net financial Building Performance managed to improve was heavily impacted by the COVID-19 pandemic
debt in 2020 includes the favourable effect of its performance in a pandemic context thanks in almost every geography, with Germany million euro
the non-recourse factoring programme, which to the rebound of sales in the second part of and Austria being less impacted. Overall,
amounted to EUR 159 million at the end of the the year, catching up volumes which had been all segments suffered, with a slow recovery
Like-for-like
year (vs EUR 154 million at the end of 2019). heavily impacted during the second quarter, expected in the oil & gas and transportation
increase of 10.9%
Excluding this programme, the net financial debt and cost savings (including in procurement) segments, while other business areas showed
vs. 2019
would have reached EUR 174 million (vs EUR which compensated COVID-19 impacts. some recovery in the second half of last year. Net recurring profit
485 million at the end of 2019). The company’s The innovation ratio of Building Performance (Group share) in 2020
net financial debt/REBITDA ratio improved from
0.5x in 2019 to -0.2x in 2020. Excluding the
favourable impact of the non-recourse factoring
in 2020 reached the same level as in 2019.
Globally, nearly 30 products were launched,
including innovative and exclusive technologies
New Ways revenues declined by 8.9% to
EUR 10 million, mainly affected by the impacts
of the pandemic on the UK market. New
215
programme, this ratio improved from 1.0x to such as Defentex. Ways revenues exclude our non-consolidated
million euro
0.4x year-on-year. participations in several joint ventures. Increase of
The revenue of our Exteriors division 15.1% vs. 2019
Changes in the scope of consolidation (EUR 569 million) was impacted by a
EUR 4 million like-for-like reduction
In December 2020, Etex completed the sale (or -0.7%), mainly attributable to The Consolidated
of its clay and concrete roof tile businesses Netherlands (discontinuation of subsidies and
in Germany, Hungary, Poland and Belgium the Dutch nitrogen crisis), Ireland, Northern Statement of
to Terreal, which followed the disposal Europe and Peru (corrugated sheets). In the
of Marley South Africa earlier that year. residential segment, all European markets Financial Position
These transactions are the result of the recovered well in the second half of the year, Our actual return on capital employed is uncertain, but we have robust governance both in Europe and Latin America, especially
strategic plans initiated in 2019 to divest the driven by strong activity in home repair, (Balance Sheet) increased from 11.5% in 2019 to 13.4% in 2020. and management tools in place to mitigate any for our plasterboard products. Etex continues
Residential Roofing division, which contributed maintenance and improvement. The Exteriors Excluding the impact of non-recurring items, potential impact and to closely monitor the to benefit from a continuously expanding
EUR 253 million and EUR 33 million to the division resisted well thanks to its sidings and The value of Etex’s property, plants and the recurring return on capital employed level of spending. renovation market as customers have
revenue and REBITDA of Etex in 2020, slates segments, which experienced an overall equipment went down from EUR 1,631 million reached 15.3% in 2020 vs 12.6% in 2019. Both accumulated savings, cannot travel and spend
respectively (these divested Residential increase of sales in 2020, driven by a strong in 2019 to EUR 1,392 million in 2020, reflecting financial indicators show significant progress In January 2021, Etex acquired a majority more on home repair and improvement. The
Roofing businesses contributed in 2019 renovation market. The architectural segment the impact of scoped-out Residential Roofing and demonstrate the impact of our rigorous stake in French offsite construction company outlook is more uncertain for the second half
to EUR 379 million and EUR 47 million in was impacted by a lack of new projects directly entities during the year. Capital expenditure capital allocation strategy. e-Loft, which has become part of New Ways, of 2021, as the new construction market will
revenue and REBITDA, respectively, including linked to the COVID-19 crisis and, like in 2019, (tangible and intangible assets) reached representing a new step toward our ambition necessarily be impacted by the 2020 recession
Marley in the United Kingdom and Umbelino fibre cement activities were impacted by their EUR 112 million (including EUR 22 million to shape the future of construction. and the COVID-19 crisis will continue to impact
Monteiro in Portugal, both disposed in 2019). exposure to trends in the agricultural sector. relating to new leasing contracts recognised the economy until vaccination campaigns
In September 2020, Etex acquired FSi Limited, during the year), compared to a recurring Subsequent events In February 2021, Etex completed the will significantly contribute to normalise the
a passive fire protection business based in the Residential Roofing, excluding the divested depreciation of EUR 173 million. Goodwill acquisition of Knauf’s plasterboard business in situation. Therefore, we expect continued
United Kingdom. businesses in the United Kingdom and Portugal and intangible assets went down from As the COVID-19 pandemic continues to Australia, expanding our geographical footprint COVID-related volatility to impact our revenue
in 2019, recorded an increase in revenue of 4.9% EUR 323 million to EUR 320 million. develop and an increasing number of countries and gaining access to a market that offers this year and the next. However, Etex has a very
like-for-like in 2020, to reach EUR 253 million. are continuously reviewing their containment significant growth opportunities. low debt and has demonstrated its ability to
This is mainly thanks to the improved Our working capital decreased from measures, companies around the world remain face a major economic crisis.
Revenue performance of the Creaton businesses in EUR 224 million in 2019 to EUR 137 million in under pressure. Etex is no exception, and the
Germany and Poland. Overall volumes remained 2020, a significant improvement attributable impact of the virus outbreak on our business
by division flat, but product mix improvements led to a to the disposals executed during the year continues to evolve. Moreover, a number of Outlook for 2021
positive impact on revenue. and strict focus on working capital Etex colleagues have been infected with the
Building Performance registered a like-for- performance. Working capital level in virus. We have limited visibility when it comes The outlook for the first six months of 2021 is
like revenue decline of -3.4% to reach In line with its strategic shift initiated two years percentage of sales went down from 7.6% to the potential impact of the virus on our positive, as we have currently good visibility
EUR 1,639 million, due to the COVID-19 ago, Etex completed the divestment of three in 2019 to 5.8% in 2020. markets in the coming months. Any disruption over our order book. Demand is strong overall,

22
Building Performance Etex
Management insights Annual Report 2020

How would you sum up the division’s plasterboard and passive fire protection

Building
2020 performance? businesses. The biggest example of this came
in the form of two crucial acquisitions, one in
It was a good year for Building Performance, Australia and one in the UK.
even in a very difficult context that nobody

Performance
could foresee. Our teams successfully managed How do these investments fit into the
the COVID crisis and did a fantastic job of division’s strategic roadmap?
keeping supply routes open as much as
possible and our factories up and running in In Australia, we purchased the business of
accordance with the highest safety standards. Knauf Plasterboard Pty Limited, making it
I must emphasise the tremendous efforts of our part of the Building Performance division’s
teams worldwide, which made it possible for us footprint in an attractive market with significant
to overcome unprecedented challenges in the opportunities for growth. This also includes the

2020 was Neil Ash’s first year most impressive way. acquisition of four state-of-the-art facilities, a
robust knowledge base and a rich network of
as Head of Building Performance, Furthermore, we didn’t stop building on
our strategic ambition to further grow our
distributors and suppliers.

Etex’s largest division. Its activities cover In the UK, we acquired FSi Limited, a company
specialised in passive fire protection solutions
innovative plasterboard and fibre cement Revenue of with a strong focus on fire stopping, which
Revenue Revenue Building R
boards, passive
of New Ways* fire protection solutions and of Industry Performance
we will use as a growth platform for the
development and distribution of a broad, o
-18.9% -3.4% -0.7%
dry construction systems for the residential and
(in EUR million)
like-for-like (in EUR million) like-for-like (in EUR million) competitive range of fire-stopping solutions
across Europe.
like-for-like (in

2020 commercial markets. 10 144 1,639

p Neil Ash,

Neil highlights strong

2020
Head of Building Performance
2020 2020
How did COVID-19 impact the division’s
performance in an extremely challenging 2019
*The revenue of New Ways excludes our non-consolidated
179 2019 1,790 2019customer relationship?
staff and your
year and discusses the division’s
participations in several joint ventures.

COVID was a fantastic leadership lesson for

ambitious investment strategy. our business. It was amazing to see teams
come together in solidarity on shop floors
and in board rooms alike – the challenge
brought out the best in everybody. During a
tough second quarter, we carefully managed
costs and viewed the new way of working as
an opportunity to redefine the future of our
interactions with customers. We worked closely
with industry experts in revising our commercial
structure, diving into customer personas and
finding optimal ways to meet their needs and
expectations to serve them even better.

UK l Thrubuild, a pioneering end-to-

end modular building solution

> READ MORE ON P. 25

An outstanding year in a difficult context

through strong cost management, Australia l Acquisition
of the business of Knauf
commercial excellence and a decisive Plasterboard Pty Limited
Latin America l Driving customer
response to the crisis. centricity by blending human and digital
> READ MORE ON THIS PAGE

> READ MORE ON P. 26

SITES
23 Plasterboard Quarries Fibre Cement Fire Protection Other
Building Performance Etex
2020 Performance Annual Report 2020

How
did we increased revenue year-on-year. COVID had
a severe impact on our activities in the UK
Profitability

perform
and Benelux due to the lockdowns, putting Factory closures caused by lockdowns in
a hold to a promising start of the year. In the numerous countries around the globe led to
UK, the business started to pick back up at significant impacts on the division’s profitability

in 2020?
the end of Q2 and the recovery accelerated due to lower volumes while associated costs
over Q4 due to a Brexit anticipation effect. were still recorded. Yet Building Performance
A dynamic plasterboard market boosted was able to largely compensate for negative
results in The Netherlands, and excluding impacts in two ways: benefiting from lower raw
2019’s exceptional Schiphol tunnel project, the materials and energy prices and implementing
business was up in 2020. In France, Italy and a robust cost reduction programme.
Severely impacted by the COVID-19 Spain, COVID paused our business for a number
pandemic in most of its operating of weeks, with a strong market rebound The execution of capital expenditure plans was
(particularly in Italy) partially offsetting the also delayed, contributing to a sharp increase in
countries, resulting in a negative revenue decline. free cash flow.
impact on its top line, Building
Performance was nevertheless Latin America

able to record a stunning bottom The pandemic had strong impacts in the second Outlook for 2021
line performance. This is due quarter and the beginning of the third quarter
to a combination of market of 2020, followed by a quick rebound helped by and beyond
governmental support. As a result, like-for-like
characteristics, ambitious cost revenue for the full year is comparable to 2019 Needless to say, the outlook for 2021 remains
management, dedication to across the region, with an increase in Argentina uncertain, with possible austerity measures
commercial excellence as well as attributable to high inflation offsetting volume being rolled out in some economies.
decrease in the rest of the region. Performance Government stimuli will likely be introduced,
a decisive response to lockdowns in Chile was similar to 2019, and Argentina but the outcome is impossible to predict at
and safety. experienced a strong market rebound even in this stage. As the world awaits the impacts of
the context of continued hyperinflation. Activity the COVID-19 vaccines, the true impacts of the
was halted longer in Colombia and Peru, 2020 global recession will become clearer.
causing a later rebound. Brazil experienced
a great start of the year, ensuring an overall The market is expected to return to a growth
Revenue performance at similar levels to 2019. phase in 2021 versus 2020, in line with levels
seen in 2019. We anticipate strong divisional
Europe Asia and Africa performance in the first and second quarters of
2021, after which uncertainty increases due to
A year-on-year decline in Northwest and The business experienced a slight the unpredictability of governmental support
Southwest Europe could only be partially offset year-on-year decline in these regions due to initiatives and the impacts of
by a good performance in Eastern Europe, COVID, particularly in Singapore and Indonesia. pent-up market demand.
which did not suffer as much from lockdowns By contrast, new markets in Australia were
as from mid-March. The retail segment opened, and the division launched a number
experienced little impact of the pandemic of new projects there. Performance was
with an increase in DIY and renovation, while good in Hong Kong, thanks to large orders of
the project segment was heavily impacted in products destined to building new quarantine
some geographies. Revenue was significantly centres. South Africa was impacted by COVID
up in Germany, particularly for Promat, and lockdowns for several weeks, while Nigeria
the business met high demand. Germany and experienced a shorter lockdown period and
Romania are the only countries in Europe with benefitted from a positive price-over-cost effect.

24 Placeholder picture
Building Performance Etex
Commercial initiatives & Product spotlight Annual Report 2020

DEFENTEX
Key commercial Collaborative innovation creates a safe,
sustainable and highly technical product
initiatives
Focussed on technical expertise and customer experience, Building Performance covers a number of
industry-leading plasterboard, fibre cement, fire protection products and dry construction solutions. What makes DEFENTEX unique
It’s challenging to choose just a handful of innovative product and commercial success stories from • Incorporates a racking system for use with wood framing
the many achieved by the division in 2020 – but below are a few outstanding highlights. • Comes with a rain barrier built in
• Resists termites
• Compatible both with closed and open cladding approaches
p Bruno Segol • Outperforms competing products, even when wet
PROMATECT 100X: fully understanding Digitally elevating the world of fire Lightweight innovations in Siniat & Promat Product
Manager at Etex France.
our customers’ requirements protection as a whole Latin America

In 2019, R&D began working on a next- In 2020, the Building Performance team In 2020, Building Performance successfully Bruno Segol, Siniat & Promat Product After carefully investigating the real pain points
generation building compartmentation developed two free-to-use firestopping apps, boosted sales of two novel lightweight Manager at Etex France, set out in 2017 to of potential customers, Bruno and his team set
system to keep fires in check. “What makes PROMAT Selector and PROMAT Reporter, to boards introduced to the residential market develop an innovative, sustainably-minded out to develop an innovative solution to solve
PROMATECT 100X unique from a technical further aid installers. in Peru and Brazil in 2019. A lighter and green exterior plasterboard capable of standing up them. With wood-framed construction, exterior
standpoint is the fact that it has been tested in
realistic conditions, with spectacular results”, “Selector makes it easy to choose firestopping
Gyplac plasterboard was developed for wet
or humid areas, optimising installation and
DEFENTEX is a to multiple challenging conditions. Three years
later, DEFENTEX is poised to become a rising
walls must have a racking system. “In addition,”
Bruno points out, “our new board had to be
states Erik Spillemaeckers, Head of Passive portfolio products needed to tackle a specific workability for installers and homeowners. highly technical star in the country’s growing wood-framed cost effective, incorporate a rain barrier, transfer
Fire Protection Business Platform. firestopping application in a project”, says Chapa Top, on the other hand, is a light construction market. internal humidity to the outside, stand up to
Bettina Rothböck, Global Product Manager ceiling board that is easy to work with as well product and completely termites and be compatible with many types
PROMATECT 100X combines fire testing
and behaviour expertise with Etex’s unique
Firestopping. “Reporter, on the other hand,
enables installers to digitally report to the
as cheaper and simpler to transport.
focussed on customer An Etex colleague for a staggering 27 years,
Bruno Segol has participated to the launch
of cladding.”

technologies, such as PROMAXON. “Its user- contractor or building owner and deliver all of Building Performance and New Ways needs. It was an honour of quite a few innovative products during his Fusing two Etex plasterboard
friendly installation increases productivity on the certificates needed to guarantee a high- join forces on Thrubuild career. “I contributed to the development of technologies
job sites and offers a competitive total cost quality installation and seamless maintenance.” working with such a AquaBoard and Weather Defence 20mm”,
of ownership”, says Agnieszka Gajek, Promat Two Etex divisions joined forces in the UK to Bruno explains. “These developments ensured An intensive process of R&D kicked off and
Global Head of Marketing and Innovation. Introduced in 2020, the new [Link] pioneer a new end-to-end modular building
highly engaged a competitive range of plasterboards for involved our Innovation & Technology Centre
website offers one global website structure that solution, Thrubuild, designed specifically team to develop it. external applications that covers the entire (ITC) in Avignon, France. “The European Union
is then customised dynamically based on where for the residential market. “With Thrubuild, French market.” has strict certification requirements that we had
the visitor is located, giving our local businesses we use Etex-owned technologies to create The journey wasn’t to meet, in addition to those that are specific
the freedom to tailor the products, systems and the entire building structure off site using A renewable construction material to France. This meant a long process involving
news items shown to their industrialised processes, and then deliver it to
easy: we had takes the stage technical validation that was successful thanks
specific markets. the customer’s premises for assembly”, says many challenges to the tireless dedication of the R&D team in
PROMAT Selector App Sergio Sandoval, Head of Strategic Initiatives Three years ago, a multidisciplinary Building Avignon and the Ottmarsheim plant.”
And with a brand-new webinar series, Etex Modular at New Ways. to overcome. But today, Performance team made up of colleagues from
is now actively sharing our deep knowledge innovation, product management and sales In the end, by combining two unique Etex
of fire protection with external architects, “By partnering up, we can guarantee superior
we offer a truly identified a new need in the market linked to technologies, they developed a board that
engineers, installers and fire safety consultants. mechanical and acoustic performance, and outstanding product. the rise of wood-framed construction. “The outperforms competing products even when
offer a high-quality, cost effective, easy- French government has started offering strong wet. “It was tough to introduce a plasterboard
to-install building solution for homes and incentives to businesses for launching wood- for external application to the market – it seems
schools”, explains Matt McKay, Commercial based construction projects, since wood is a almost like an oxymoron – but in the end,
Excellence Leader. renewable resource that actually absorbs CO2”, DEFENTEX ticks every single box”, Bruno asserts.
he continues. “It’s simply an outstanding product.”

PROMATECT 100X board

25
Building Performance Etex
Inspiring story Annual Report 2020

Driving Forging the missing link between Etex and distributors

Over the last few years, Etex Colombia had been encountering communication
Overcoming challenges – and seizing unexpected opportunities

But just as the project was gaining momentum across Latin America, COVID-19 hit.

customer bottlenecks with key customers: the distributors who purchase Etex products to sell to
end consumers.
“An implementation is enough of a challenge under ordinary circumstances”,
Claudia states. But with a global pandemic, every aspect of the project went digital –

centricity
from process redesign and internal training initiatives and workshops to digital
“We discovered that we were investing a lot of effort in end customers, while tool development.
our biggest direct clients were not being acknowledged enough”, explains

by blending Mauricio Villegas, Commercial Business Manager at Etex Colombia. “We realised we

needed to enhance our connections with them – so, we set out to do just that.”
“Even more, our customer training courses also went virtual”, adds Claudia.
“As you can imagine, this caused some bottlenecks at first, but in the end, the
pandemic pushed our customers to rely on new technologies. This is a good thing,

human and Led by the regional supply chain team, all Etex businesses in Latin America shared
a bold ambition: to fill this gap and better support customers’ needs through an
not just for their businesses, but for our teams as well.”

digital
integrated customer experience transformation project covering supply chain, sales “Despite the challenges, everything came together, and we are now on the path to
and every single functional area of the business. customer service excellence”, Lis asserts. “Today, 2,000 different distributors are
active on the platform with over 8,000 requests per month, and it is clear from their
“We want to deliver value to our customers’ businesses by streamlining and feedback that it makes a big positive difference.”
automating every single operational and purchasing touchpoint via one central tool,
Our digital roadmap at Etex but also by ensuring consistently excellent human support as needed”, explains “Through the Etex Services Centre, our customers can count on an experience
helps us to a deliver value to our Lis Rios, Regional Customer Service Manager for Latin America. that meets all of their needs, from the moment they place an order until they
receive it – and beyond”, Mauricio says. “Our service is now a key element of our
customers and put them at the The Etex Services Centre is born value proposition.”
centre of everything we do.
As part of this ambition, the A set of digital tools supported by a committed team – the Etex Services Centre – The implementation and go-live in Peru and Brazil was finalised in the first quarter of
empowers each customer to enter his/her own orders and reach invoicing, credit, 2021, thus achieving full regional harmonisation in customer service.
regional supply chain and customer quality, claims, technical support, product information and more.
service teams in Latin America Born to go global
rolled out an omnichannel platform “Previously, sales representatives were spending significant time on these repetitive
tasks. Today, with the Etex Services Centre, they can focus on sales strategies and While the Etex Services Centre is based in Colombia and was co-developed regionally
in 2020 that will serve as the basis entering new markets”, Mauricio explains. “And all of this, while enabling us to for customers in Latin America with the help of the central Etex digital team, it
for delivering exceptional customer strengthen our relationships and increase sales.” will serve as a template for customer experience transformation projects in other
experiences worldwide. geographies.
“Thanks to the centralisation of all customer data and the flexibility of the tools, the
Etex Services Centre also allows us to offer the same level of service to any customer “Etex teams in other countries outside Latin America are already using our portal,
in Latin America – tuned to the unique operational, logistical and customer needs of processes, service-level agreements and configurations as models”, says Lis.
each country”, Lis adds. “They serve as the starting points for a global platform that can be adapted to
p Mauricio Villegas suit customer needs in different areas.”
United under the flag of customer service excellence
“We have very big ambitions with this project”, Claudia adds. “Our dream is to
The regional supply chain and customer service teams in charge of the project began be the service leader in our industry. ‘Passion for Excellence’ – this was and
with rollouts in Argentina, Chile, Colombia and Ecuador back in 2019. “But it hasn’t been continues to be our team’s driving pillar.”
a simple process”, asserts Claudia Moya, Commercial Manager at Etex Chile. “We made
significant investments in change management processes, both internally and externally.

The team also had to launch an ambitious training initiative for customer-facing personnel.
“In addition to introducing agile ways of working and new customer service protocols,
we worked hard to align everybody under the flag of customer service excellence and to
p Lis Rios
ensure that they understand not only how the Etex Services Centre works – but why it is
so important for Etex”, Lis says.

p Claudia Moya

26
Exteriors Etex
Management insights Annual Report 2020

On a high level, how would you Is there one big initiative that stands
summarise the performance of out as a 2020 highlight?
the Exteriors division in 2020?
Absolutely. We successfully brought our

Exteriors
If 2019 was a year of change, in 2020, we corporate brand to life and clearly positioned
shifted gears and moved into strategy execution our commercial brands with enthusiasm and
mode. We launched ambitious initiatives to energy – and this in the middle of a pandemic!
implement the priorities we identified in the This new brand architecture helped us focus,
previous year – all of which serve to build our and our teams thoroughly revamped our
vision of the future of fibre cement. business models for each brand to place our
customers in the centre of what we do. Our
Our priorities centred around three ‘big teams have already put in huge amounts
moves’: engaged and passionate employees, of work when it comes to mapping out the
superior customer focus and a commitment customer journeys for our three core brands.
to innovation driven by sustainability. Now, the Exteriors team is working across
The Exteriors division was created in Underpinning all of these pillars is, of course, boundaries to pilot and scale up disruptive

January 2019 to consolidate our fibre our relentless focus on safety. We kicked off
2020 with concrete projects in these areas.
ideas, redefining ourselves to ensure that we
adapt in an agile way to our customers’ needs.

cement solutions for roofing, façades and Revenue of How did the advent of COVID impact
terraces. DivisionRevenueHead Michael Fenlon has
of Industry
Building
Performance
Revenue
of Exteriors
the division?

worked with-18.9% his teams to define an innovative

(in EUR million)
-3.4% (in EUR million)
-0.7% (in EUR million)
like-for-like like-for-like like-for-like After a short pause in our activities due to the

strategy to keep Etex top 144 of mind for 2020 1,639 569
p Michael Fenlon, lockdowns in several countries, we accelerated
2020 Head of Exteriors
2020 every single initiative by empowering our

home-owners, installers,179architects and more.

2019 2019 1,790 2019 591 local leaders to take action in our facilities and
sales organisations. We significantly increased
Discover the division’s achievements the scope and rhythm of our communication
efforts, moving to virtual platforms to
in 2020, in Michael’s words. facilitate our roadshows and to roll out our
leadership principles. The result was enormous
engagement, solidarity and, thankfully, a rapid
recovery of our business as from Q3. COVID
slowed us down, yes, but it was mostly an
opportunity to accelerate the change our
business needs to shape the future. I’m truly
proud of this achievement, and the response
of all our people. After a year that challenged
us all, the level of trust in our division has never
been higher.

Australia, Russia and the United States

Thriving in all corners of the world
> READ MORE ON P. 30

We used the COVID context as

an accelerator to drive change.

SITES
27 Fibre Cement
Exteriors Etex
2020 Performance Annual Report 2020

How
did we
issues of 2019 in Spain and Germany have been COVID but is recovering well, with a very strong
resolved, leading to good performance. pipeline. Our export business, Europanels,
which serves the Middle East, Africa and Latin

perform
The long-term decline affecting large animal America, continued to grow.
farming is continuing.

in 2020?
Residential
Profitability
Latin America: following a challenging
COVID-19 lockdown, revenue in almost every Taken as a whole, 2020 was marked by a
Latin American market recovered exceptionally positive evolution in profitability for Exteriors.
well. The residential market in Chile continued The division’s sharp segment strategy bore
The three core business segments to be impacted by social unrest, exacerbated by fruit, while input prices decreased; an ongoing
of the Exteriors division were long COVID-19 lockdowns, but recovery in both trend that continued from 2019. In addition,
Chile and Argentina at the end of 2020 was Exteriors improved overhead costs, thanks to
impacted by COVID-19 in different very strong. cost reduction initiatives implemented in 2019
ways. Overall, revenue was slightly and, in reaction to COVID, in Q2 2020.
reduced, but profitability was In the field of low-income residential The result was improved margins, lower
construction (corrugated sheets), Colombia overheads and increased performance overall.
significantly up year-on-year. and Peru were impacted more heavily than
While the year was punctuated by other countries.
slowdowns in most markets due to
the pandemic, most geographies
Europe: following a good start to the year, Outlook for 2021
Q2 was significantly impacted by COVID.
and markets recovered exceptionally All European markets recovered well in Q3 and and beyond
well, with positive trends unfolding Q4 after the lockdown period, also driven by
a very strong positive trend in home repair, In a time of continuing uncertainty, the agility
in 2021. The division continued to maintenance and improvement. of the Exteriors division will play a strong role
invest strongly in high-potential new in its ability to respond to fluctuations in supply
markets around the world in 2020. Architectural and demand caused by COVID-19 uncertainty
in 2021. Investments in digital tools, lean
North America: significant growth was organisational structures, new ways of working
achieved in 2020 compared to 2019, and new and flexible business models made in 2020
investments continued to be made throughout should continue to pay off moving forward.
Revenue the year.
The residential segment is expected to continue
Agricultural Europe: ongoing projects were continued and to perform strongly in the short term with
delivered throughout the year. However, new limited visibility in the mid to long term. The
Europe: the impact of COVID on the agricultural projects were delayed until 2021 or beyond, architectural segment will gradually
segment in Europe was marginal. Sales thus the overall impact of COVID-19 was low but recover over 2021 but will most likely not
performance in most European countries extended over a much greater period, return to 2019 levels until 2022 or later.
continued as expected, apart from the short, with no recovery in sight for now. The agricultural segment is expected
whole-market lockdown imposed by legislators. to follow the same stable, slightly
The Netherlands continued to be impacted Export: the division continued to invest in declining trend of the past
by the discontinuation of subsidies (see Etex’s new markets with positive developments, several years.
Annual Report 2019, p. 42), as well as the Dutch although COVID impacted large investments,
nitrogen crisis, caused by a high concentration leading to delays in the project pipeline.
of livestock in a small area. As a result, farmers The US showed significant growth compared
were cautious about investing. Product quality to 2019. Australia was severely impacted by

28 Placeholder picture
Exteriors Etex
Commercial initiatives & Product spotlight Annual Report 2020

EQUITONE [tectiva] TE 85
Key commercial Continuously involving the customer,
from R&D to launch – and beyond
initiatives
The Exteriors division is known for developing premium products with high technical performance
as well as visual and tactile appeal that leaves a lasting impression. Last year, the division’s global Why EQUITONE [tectiva] TE 85 stands out
strategic branding journey was initiated, which is founded completely on the real needs and • Through-and-through coloured
demands of its customers. This journey will serve as the foundation for 2021. • Does not require edge finishing
• Looks and feels like natural volcanic material
• Excellent mechanical performance
p Geert Van Kelecom • Darkest fibre cement product of its kind
‘House of Brands’: a powerful story Brands and its importance to our organisation – 50 Exteriors colleagues from a wide range Division Head of
Product Management
three years in the making as our commercial brands are our most powerful of roles participated in a series of workshops at Exteriors
connections to our customers.” held over several months to define the
The Exteriors global team kicked off the division’s new business models, a process Architects around the world have a deep products globally, we launch them in phases.
global ‘House of Brands’ project in 2017, which “Instead of taking a top-down approach, each that was actually accelerated by COVID. connection to all shades of grey, prompting the This gives us the valuable ability to learn from
aims to meet customers’ real-life needs and local organisation was involved in the rollout”, “ We effectively embraced new ways of Exteriors team to bring a dark colour within our campaigns, adapt and make them even
offer excellent experiences and interactions. describes Neringa Veliene, Country Manager working and accomplished in months what the colour range of EQUITONE [tectiva]: more effective,” Geert asserts.
Specific personas were identified for each
Exteriors commercial brand; architects for
for Etex Baltics. “Making everybody part of the
conversation has turned out to be incredibly
would normally take years, and participants
were extremely enthusiastic about the
With EQUITONE a graphite, uncoated, through-coloured fibre
cement panel with a natural and mineral “Another important aspect of these phased
Equitone, farmers for Eternit and installers and valuable in fostering a unified vision and exercise”, Johan Leo, Commercial Finance [tectiva] TE 85, we look and feel. pilot launches is ‘hypercare’ – following up
homeowners for Cedral. understanding. This is exactly what Exteriors is Business Partner, enthuses. closely with installers, architects and building
all about, and I’m confident that our customers can offer architects Tasked with developing the solution, Division owners to collect detailed feedback about the
Head of Product Management Geert
“Our identity has been clearly defined, and we
speak the language of our customers through
around the world will appreciate it.” “I’m proud to be a part of the team that
is shaping the Exteriors business model
a dark, uncoated Van Kelecom didn’t hesitate for a moment.
performance of our materials,” he continues.
“This feedback is highly appreciated, and it’s
these brands. The customer is at the core of our The Exteriors business model to bring even more added value to our material within the “We put our heads together – with colleagues clear from their responses that architects truly
activities and each brand is linked to a specific undergoes a customer-driven evolution customers”, says Djamel Zeganne from from across Etex departments as well as with see something special in the quality, beauty and
value proposition targeting a specific group Supply Chain at Etex France. “We offer EQUITONE family to our customers – to create a new member of the performance of EQUITONE [tectiva] TE 85.”
of customers”, explains Philippe Rubbrecht, Following up on the House of Brands exercise quality products and materials – but we go EQUITONE family.
Division Head of Brand Management. and on the basis of a customer journey beyond that with end-to-end solutions and
express themselves. Innovation that goes beyond R&D
mapping research project, a dedicated options they may not have considered.” They connect this Rethinking the process
Then came the biggest challenge yet: getting the Exteriors team kicked off a new evolution However, Geert believes that the success of
message across internally. “We put together a in January 2020. Their goal? To shape the graphite hue to nature, During the development process, the this product is due to much more than Etex’s
task force made up of Exteriors colleagues across Exteriors business models entirely around team went in with knowledge gained from technical expertise.
functions and countries”, says Philippe. “Together, customer needs.
something that is both experience. “We developed a deep, dark colour
we crafted a campaign to explain the House of visual and tactile. after collecting input from a wide range of “There was clear and dedicated project
“Today, we have truly strong brands, and architects. But consistently producing it meant management and follow-up,” he explains.
deeply understand our customers’ journeys”, And thanks to our rethinking the way of working and redesigning “EQUITONE [tectiva] TE 85 isn’t simply a
asserts Jo Goossens, Strategic Marketing the production process with the help of a novel material in a new colour. So much goes
Manager. “Now, it is time to take concrete
rigorous commitment multidisciplinary task force made up on behind the scenes – expert organisation
action to deliver our brand promise at every to quality and of colleagues from different departments.” of resource flows, a deeply collaborative way
step of that customer journey and address of working that transcends organisations and
every customer pain point – while enhancing excellence, it’s one Fine-tuning an agile product journey boundaries, and much more. The value of this
our performance at the same time.” approach has been proven with this project,
of a kind. Thanks to the dedication of this task force, and the progress we witnessed in just one year
the way Exteriors develops, tests and is truly incredible.”
launches materials has also been completely
revolutionised. “Today, instead of launching

29
Exteriors Etex
Inspiring story Annual Report 2020

Hong Kong Museum of Art

Thriving Excellence in exports with the global EPO organisation

Euro Panels Overseas (EPO) Business Unit Manager Nicolas Macor has been at Etex
Running a tight ship in Russia

Etex Russia Country Manager Arkadiy Antonchik’s search for an interesting new

in all for over 20 years in various roles – relocating from continent to continent on his quest
to break fertile new ground for Exteriors.
opportunity is what inspired him to join Exteriors in 2015. “I came from a large, rigidly
structured company, but after learning more about Etex’s ambitions, I enthusiastically

corners of
exchanged that big ship for a little boat”, he recalls. “The Etex team in Moscow was
This commercial unit was established 20 years ago to reach markets where Exteriors much smaller, but their energy was huge. On the other hand, the rules and structures
has no local presence. “EPO is unlike any other Etex activity in the world”, Nicolas hadn’t yet been developed or put in place. That was when I jumped aboard.”

the world asserts. “We’re located everywhere and on every continent, but we don’t operate
production facilities. Since distributor partners act as our ambassadors to end users,
it is our job to familiarise them with our brands and the added value of our solutions.”
First, Arkadiy set out to simplify the team’s market approach and define goals
and priorities. “Next, we developed extremely clear proposals and committed to
meeting every customer expectation in terms of quality, warranty, claims handling
Organised by continent and region, EPO covers parts of Asia, the Middle East, Africa, and technical support. Over the next two years, we put every effort into delivering
Etex operates over 100 facilities Latin America, East Europe, “and the ‘rest of the world’,” Nicolas adds, “which includes on these commitments to earn the trust of the homeowners, installers, dealers and
in 42 countries – but we also have Finland, Canada, the Balkans, Cyprus, Lebanon, Greece, Israel and Turkey”. architects in our market.”

customers in markets where we “In every region, we have one Sales Manager supported by a Belgium-based team But even though Arkadiy and his 42-strong team are far removed from other Etex
have no manufacturing footprint. extremely specialised in export activities, complex tax rules, payment and logistics offices, they appreciate the very short connections of an integrated global company. Western valley, Russia
To serve their needs, the Exteriors terms, etc. This export expert manages ordering and logistics processes from end to “This is one of Etex’s standout qualities, and it’s how we are able to reach markets like
end. Our Belgian customer service team supports distributors all over the world in ours with Etex’s EQUITONE and Cedral products.”
division relies on compact ten languages, helping them 24 hours a day, five days a week with technical support,
organisations spread across the installation and project realisation.” ‘Smartening up to scale up’ in the United States
world. We asked our colleagues
“Today, we are focusing much of our efforts on digital marketing and other digital Back in 2013, the United States was identified by Etex as a high-potential market for
in these offices to share the trials tools, such as an e-learning platform”, Nicolas concludes. “We strive to find architectural façades. “The decision was made to establish an export organisation
and triumphs of operating without innovative ways to boost EQUITONE brand awareness, market penetration and for façades, initially based in New York City”, recalls Gianfranco Apicella, now Head
larger fibre cement production customer satisfaction.” of Europe at Exteriors. “After four years, we had achieved strong growth and market
penetration, but we were still operating like a start-up organisation. It was clear that
facilities within close proximity. In this together in Australia we needed to smarten up the organisation in order to scale up our activities, which
would enable us to grasp bigger growth opportunities in the market for EQUITONE.”
Born and raised in Germany and now located in Melbourne after spending portions
p Nicolas Macor of his career in China and San Francisco, Country Manager for Etex Australia and Today, the Exteriors commercial team is spread across five large cities – New York,
New Zealand Dirk Zimmerling is new to Etex – but not to business development. Chicago, Boston, San Francisco and Los Angeles. “Our processing and marketing team
is hosted at the Industry division’s location in Maryville, Tennessee, but our commercial
p Dirk Zimmerling “Before I arrived”, Dirk recounts, “the team here had put a lot of work into introducing experts are out in the field”, Gianfranco explains. “The distance between us – and
the EQUITONE brand as premium fibre cement products to the markets in 2016 and from our Equitone production facilities in Belgium and Germany – does pose some
Bel Air, United States
differentiating them from other fibre cement products. That hasn’t stopped, of course, challenges. For example, delivering to a customer in New York takes twelve weeks;
but now we’re well known by architects and installers across the region. However, delivering to Los Angeles takes sixteen. As a result, planning is absolutely essential,
distributors are seen more as partners in Australia, as spot-on timing and inventory particularly for regions with short building windows, like Alaska. Crucial to the
levels play key roles in export within this geographically isolated location. planning efforts is the communication between the supply chain experts at EPO
As a result, strengthening our relationships with these distributors is a fundamental and the factories responsible for manufacturing solutions for Exteriors customers in
goal for us.” the US.”

Dirk is enthusiastic about the trajectory of and future plans in place for his eleven-
strong team. “We introduced Cedral to New Zealand in 2020 and saw plenty of
enthusiasm from potential customers, as there is nothing else like it on the market”, he
says. “We’re looking forward to launching it in Australia in 2021. Our ambitious goal is
p Arkadiy Antonchik to double the size of the business in Australia in the next five years and to build even
stronger relationships with architects and distributors.”

p Gianfranco Apicella

30
Industry Etex
Management insights Annual Report 2020

What main messages would you like to to a segment basis, enabling intra-divisional
share to describe 2020 as a whole for collaboration and alignment. Today, we are
the Industry division? rolling out an end-to-end customer experience
platform for Europe. With this in place, we are

Industry
The year was very much about executing on preparing to further digitalise our interactions
our 2025 strategic roadmap, which we defined with customers, improving our service and
in 2019. However, Industry was hit very hard by laying the groundwork for lead generation and
the results of the pandemic, as our business is commercial activities to come after market
project based. With lockdowns forcing most of conditions improve.
our customers to postpone or cancel projects,
our division suffered as well, further down the In terms of COVID impacts on the
chain of business. division’s markets, is there a recovery
in sight?
Led by Steven Heytens, But there is good news to share. Due to our
ongoing strategic efforts in 2020, we now We immediately put a number of initiatives in
our Industry division develops and have a robust commercial organisation in
place that has shifted from a geographical
place to limit and offset COVID-19’s impacts on
profitability. The cost containment measures
produces cutting-edge insulation we have put in place are quite impressive, and
we have executed commercial restructuring as Re
products and fire protection solutions Revenue Revenue well, by rolling out a technical platform and a Bu
of New Ways* of Industry Pe
that are found in diverse buildings, industrial (in EUR million)
-18.9% (in EUR million)
customer service platform. These efforts were
initiated before COVID hit us, and they helped -3.4% (in E
like-for-like like-for-like
structures, energy storage technologies and us contain its negative impact. By December

vehicles, from the skies to the ocean floor.

2020 10
p Steven Heytens,
Head of Industry
2020 144 2020, our divisional pipeline for future sales
2020
was at the same level as pre-COVID, which
2019 179 2019
is very encouraging, but the evolution of the
Steven provides a high-level overview of *The revenue of New Ways excludes our non-consolidated
participations in several joint ventures. situation remains uncertain. It may take us a

the division’s context, performance and couple of years to absorb the impact, no matter
the scenario.
achievements in 2020 – and a glimpse What factors will enable the division
at the future. to bounce back?

Our focus on new growth segments and our

strong strategic execution in 2020 will be
key here. Our talented teams have shown
great resilience in tough conditions, which
was boosted by our performance-driven new
organisational structure and commitment to
global processes, knowledge-sharing and
best practices.

Belgium l Keeping it cool

while COVID-19 vaccination
strategies heat up

Despite extremely tough conditions > READ MORE ON P. 33

for our markets, we never lost sight

India l Etex India drives
of our strategic execution. synergies in a dynamic market
United States l Fuelling the green energy
transition through microporous innovation > READ MORE ON P. 34

> READ MORE ON P. 33

SITES
31 Fire Protection Insulation
Industry Etex
2020 Performance Annual Report 2020

How Asia and the Middle East Oil & gas and energy Outlook for 2021
did we China and Japan were impacted very early in
the year by COVID-19, with Japan’s performance
The Industry division’s business
in this segment continued to shift
and beyond

perform
strongly linked with outcomes in China. On in 2020 from oil & gas projects – Industry has observed a clear yet fragile
the other hand, 2020 sales performance in several of which were placed on hold due to recovery beginning in the third quarter of
India was stronger than it was in 2019, and the COVID-19 pandemic, including Dangote 2020 and moving into 2021. Orders kept

in 2020?
new strategic partnerships in the country are (see our Annual Report 2019, p. 63) – toward on rising at the beginning of this year,
beginning to deliver results. Following a year sustainable energy applications. The potential but the COVID evolution continues to
of exceptional sales driven by oil & gas projects for these applications is expected to grow colour all projections and forecasts,
in 2019, our activities in the Middle East and moving forward. particularly in the commercial
in Southeast Asia faced a severe slowdown as air and oil & gas segments. In
construction sites were locked down and new Fire-rated applications and terms of the acquisition of new
The Industry division was heavily projects were put on hold. appliances customers, trends are good, and
impacted by the COVID-19 pandemic the outlook is positive.
North America COVID-19 impacted performance in
in almost every geography. Partial this area during the second quarter of In spite of the pandemic, the
recovery began before the end Revenue in the United States was only slightly 2020, but orders increased in the third Industry division is very well
of the year, however, with certain lower in 2020 than in 2019, as it was impacted quarter, achieving positive growth by the end positioned to tackle challenges
less by lockdowns. The US was, however, of the year. The outlook for fire rated and thin in this new context, all the way
segments experiencing significant affected by COVID-related supply challenges insulation is strong, and the appliance market is from sales and operations. This
pickups in Q3 and Q4. Other originating in Europe. Nonetheless, the last in a recovery phase, with opportunities already year also features an ambitious
industries like transportation and quarter of 2020 was very strong. There are present on the horizon. mergers and acquisitions
promising prospects in specific segments, agenda which, combined with
oil & gas continued to evolve such as energy in the US and Mexico. new growth initiatives and a
negatively throughout 2020, but Profitability leaner organisation overall, are
the division’s increasing focus on expected to generate profit.
From mid-March 2020, COVID had an
fire rated building components Revenue by immediate negative impact on the profitability
and sustainable energy solutions of the Industry division due to the nature of its
promises a further recovery. segment business. Thanks to significant efforts in cost
containment and commercial restructuring,
Transportation as well as the rollout of the technical and
customer service platforms, the division
Revenue by region This segment includes rail, commercial faced the pandemic in a strong, well-
air and marine, the latter two of which prepared position.
Europe were powerfully and unilaterally
impacted by COVID-19 worldwide whereas Structural savings were delivered to contain
Our business was severely impacted by the railways and automotive performed well. the impacts of COVID as much as possible, with
lockdowns imposed across Europe as from governmental support in certain countries. In
mid-March, especially in France, which is Thermal process industry November 2020, overall profitability levels
mainly a transportation market, the UK, were higher than they were before COVID,
Italy and Southeast Europe. The DACH The ongoing global recession indicating the strength and effectiveness
region – Germany, Austria and Switzerland – continued to affect this segment of the division’s overhead reduction and
remained a stronghold, as it was significantly worldwide in 2020. Industry is in the margin management initiatives.
less impacted by COVID-19 measures than process of adapting its commercial strategy
neighbouring countries. Business in Germany here. However, the segment performed better
centres around industrial and construction than expected, even within the context of
activities and remained quite strong throughout COVID-19 (temporary closure of our facilities as
the year. well as the ones of our customers).

32 Placeholder picture
Industry Etex
Commercial initiatives & Product spotlight Annual Report 2020

PLURATECT MARINE LIGHT

Key commercial Etex strengthens its activities in
the marine market with a super product
initiatives and a winning team

In 2020, the Industry division continued on its tradition of excellence in product innovation, strategic
positioning and strong partnerships in key markets across the globe. Enhancing the year’s results is What makes PLURATECT innovative
Industry’s fully optimised new organisational structure. Discover how we expand our contribution to the • Super low density of only 500 kg/m³
world by enabling green energy production and vaccine transportation, among other achievements. • Available in up to 3.5 m boards
• IMO-certified non-combustible, moisture-repellent board
• Fire class C and B15
Partnering up for the future: large developers and construction firms. Tarun: Keeping it cool while COVID-19 p Ilja Doroschenko • Simple, dust-free installation
co-development opportunities in India “As a completely local innovation initiative, it’s vaccination strategies heat up Head of Product • 100% recyclable
Management
very exciting for the Indian government, which
Since 2019, Industry’s teams in this high- requires the use of Indian-made products.” Responding proactively to the skyrocketing
growth country have been working hard (read more on p. 34) global need for high-performance passive One year ago, Head of Product Management Ilja and his team met up with the plasterboard
to strategically grow Etex’s position in the cooling systems to support COVID-19 vaccine Ilja Doroschenko jumped in the marine innovators at our Innovation & Technology
passive fire protection and high-performance Fuelling the green energy transition distribution, our Industry division fine- industry plasterboard field. “In the calcium Centre in Avignon, France, to come up with the
insulation markets through collaborations with through microporous innovation tuned existing technology to anticipate the silicate-focussed cruise ship domain, I knew proper formulation in October 2019. “The wild
industrial leaders.
The trend toward green energy is gaining
needs of customers. “A huge Industry team
collaborated closely with our customers to
The result of a it would take some wild ideas to develop a
plasterboard technology based product for
ideas were flying thick!” he laughs. “There was
a real ‘let’s do it’ mindset, and everybody was
In partnership with Berger Paints, Etex India momentum across the world – and Etex is adapt our extremely thin, light, vacuum- committed, open- compartimentations, linings and fire rated on board.”
produces PROMAT intumescent paint for contributing to the transition. “The Industry sealed microporous insulation panel solution, applications that outperforms all other options
structural steel fire protection and a range of division develops extremely efficient SLIMVAC, specifically for vaccine shipping minded, creative out there,” he says. From wild idea to
microporous insulation solutions specifically containers”, says Gaetan Mahias, New ground-breaking product
PROMAT fireproofing sprays.
for fuel cells. These cells use mainly hydrogen Growth Business Leader.
innovation process, In 2018 and 2019, Etex was facing tough
Alongside German manufacturer Würth, Etex to generate electricity cleanly and at very PLURATECT MARINE competition in supplying cruise ships The ITC teams in Avignon and Tisselt, Belgium
India launched a comprehensive range of high efficiency”, explains Bill Gregg, Business “These containers have to keep these with ultralight, high-performance, put their heads together to develop the
fire-stopping products that are jointly branded Development Manager at Etex USA. “Running perishable pharmaceuticals within a range of LIGHT meets every non-combustible calcium silicate boards. material, and then worked closely with two of
with PROMAT. “It’s a win-win situation - we mainly on natural gas or even biogas, these temperature difference of a few degrees for our plants to try new recipes and experiment
gain access to Würth’s market and innovate are a nearly emission-free method of providing more than three days”, adds Kris Dullaert,
customer demand and The biggest challenge, though?
“Our production line was set up in such a with different options. “It was an extremely
together while offering support to bridge their consistent power or back-up power in small Business Development Manager. “We can be flexibly and way that our facilities physically couldn’t well-structured project supported by four
gap in firestopping technologies”, says Tarun spaces, and for critical activities such as in customised our SLIMVAC panels to safely manufacture a big enough product – separate Etex entities. After the first prototypes
Maheshwari, General Manager of Etex India. medical facilities and data centres. Fuel cells are store the maximum volume of vaccines. rapidly produced. and end customers were demanding were ready at the end of 2019, we visited
also used alongside renewable energy sources Our solution outperforms standard foam three-metre boards,” Ilja explains. customer job sites and collected their opinions
Narsi and Etex have teamed up to develop and in applications where solar or wind energy insulation by a factor of five.”
We worked closely with and ideas before running another production
ground-breaking fire-resistant door solutions for isn’t available.” customers to adapt our A ‘let’s do it!’ mindset trial. Customers were impressed: the product
Shaping insulation standards with is light, strong, easy to work with, moisture
Industry’s microporous solutions are the sustainability in mind product to their needs In April 2019, Industry organised a sales repellent and recyclable. With its smooth and
most efficient high-temperature insulation meeting in Prague, Czech Republic. “At that slick surface it is designed to be laminated
materials on the market. “But in addition Etex is actively developing PROMAT solutions
and manufacturing time, I thought: why not use plasterboard with HPL and thus used for any number of
to offering superior products, we take our that support the European Green Deal, processes – and instead of calcium silicate technology? applications in ship cabins and public spaces.”
customers’ needs into account from the very which prioritises building energy efficiency Production is easy to scale up, the material is
beginning of the fuel cell design cycle”, Bill and cleaner forms of transportation. The we did it in just light and fire safe, and you can produce it in After some fine-tuning, Etex launched the
continues. “We ensure a perfectly tailored high insulation value delivered by ultra-thin a variety of sizes”, Ilja goes on to say. PLURATECT MARINE LIGHT board on
bespoke solution that integrates the insulation insulation panels allows significant savings
sixteen months. “But it would take some innovation to the market in January 2021.
into their design – rather than adding it as an in time and money on new-build and maximise strength while minimising weight.”
expensive afterthought.” renovation projects in a way that is simply
not feasible with classic mineral wool or foam
insulation products.

33
Industry Etex
Inspiring story Annual Report 2020

Etex India Collaborating to meet new expectations A perfectly timed partnership

drives
As the population grows and space becomes scarcer in India, a land availability crisis Etex India selected building components manufacturer Narsi for two reasons: “They
is pushing real estate companies to build upward, rather than outward. have state-of-the-art, automated manufacturing capabilities, and they have significant
manpower”, Tarun continues. “Narsi is an interior contracting expert and has strong

synergies in “Horizonal development is difficult in cities like Mumbai”, asserts Tarun Maheshwari,
General Manager of Etex India. “And as buildings grow taller, smoke and fire become
references in commercial construction. They had been manufacturing fire-rated doors, but
only on a small scale for their own projects.”

a dynamic
even more dangerous – which is why passive fire protection is essential.”
Kicking off in late 2019, the partnership came at the perfect time for both Narsi and Etex.
New laws and regulations governing high-rise structures require the use of safety Tarun: “We had at least 25 rounds of virtual discussions after the first COVID-19 lockdown

market
elements, such as fire-rated doors. “Before the introduction of these regulations, in 2020 to go over the composition of the product, define its costs, and develop a
builders and developers were not focussed on the use of fire-rated doors.” marketing and communication plan. This plan highlights that ours is a fire-rated product
completely developed and produced domestically that aligns with the priorities of the
“It’s a fact that we’re global fire-stopping experts at Etex. This new regulatory central government.”
context gave our team an interesting idea for even greater customer centricity:
Within the enormous construction why not collaborate with a few big manufacturers to incorporate our fire-rated “Even more,” adds Raghavendra, “Narsi understands how the passive fire protection
market of India, there are many materials into their products, and work together to offer complete packages to real industry works. They have experienced the same market dilutions that we have. They
estate developers?” are truly excited about this partnership and plan to launch an entirely separate division
different players manufacturing a to produce our Narsi-PROMAT co-branded door – which gives Narsi the flexibility to sell
wide range of building products. From fire stopping niche player to market shaper PROMAT across India, as they are present in eighteen cities.”
But as building safety norms and
Etex India was the first company in India to test fire doors back in 2003, before passive Venturing into promising markets
standards play an increasingly vital fire protection regulations became part of the national building code in 2005.
role in new construction, the Etex However, as a premium commercial player, Narsi can’t reach every corner of the
team in India is proactively helping “As a result, our brand, PROMAT, is known by both end users and companies”, explains market. “But we have a separate route to market for that”, Tarun says. “Because the
Raghavendra Kuma, Promat Technical Manager for Etex India. “Since the regulations big volumes will come via residential projects, we have set up an agreement with
to shape the market for fire-rated came into effect, we’ve seen many players across the market falsely claiming to Narsi: they will manufacture our cores, we will buy them back, and then we will
doors through an innovation- incorporate PROMAT into their products. The introduction of the new legislation was sell them to the manufacturers who cater to the enormous Indian residential
minded partnership with Narsi, the perfect moment to develop a system to enable end users to determine if their construction market.”
fire-rated door actually contains PROMAT materials.”
one of India’s premium building “Although the Etex global team assisted with the design of PROMADOOR Cores, the
solution manufacturers. Tarun and his team focussed on creating a fire-stopping solution that is 90% ready for products themselves are proudly developed and manufactured in India”, Raghavendra
door manufacturers, eventually developing two solutions: PROMADOOR Core 60 and states. “As such, they fall under the ‘Make in India’ concept supported by the
PROMADOOR Core 120, the first withstanding 60 minutes of contact with flames, and government, which makes them highly competitive.”
the second withstanding 120 minutes.
We expect PROMADOOR Core 60 and PROMADOOR Core 120 to be fire tested
“In these products, innovative materials are sandwiched together into a panel that can and certified in the course of Q2 2021, and ready for commercialisation
be inserted into a door”, Raghavendra continues. “We developed a production process in the second half of the year.
p Raghavendra Kuma
that guarantees high quality, reduces labour costs, meets huge volumes and enables
product traceability through barcodes.”

“Instead of being taken advantage of by unscrupulous market players, we created the

tools to shape the market and set the standards. All we needed was a manufacturing
partner with the right technologies.”

p Tarun Maheshwari

34
New Ways Etex
Management insights Annual Report 2020

Do you agree that 2020 was quite a markets, like Brazil. Younger, less experienced
tough year to launch a new division? companies, such as our Chilean joint venture
with Arauco, E2E, were more difficult to keep
In hindsight, it’s true that starting a new running remotely.

New Ways
business at the beginning of 2020 wouldn’t
have been our first choice! Was the acquisition process influenced
But despite the pandemic, we managed to by this context?
move forward with our ambitious strategy,
enter new markets and even progress with a It was certainly a challenge, working virtually
number of acquisitions. – but we never considered setting our M&A
strategy aside. We had to put in a lot more
Especially complex was the fact that everything effort to make progress, but we successfully
we did was achieved from our home offices completed the acquisition of Tecverde in early
Etex’s youngest division, around the world. Results varied depending on
the level of maturity of each of our businesses,
2020 and, more recently, we have secured a
majority stake in French offsite construction
took flight in January 2020 and is but I am proud to say that we were able company e-Loft. These are crucial steps
to successfully shape our business model, forward that will increase the international
led by Cristian Montes. It is a highly and even grasp new opportunities in some footprint of New Ways.

agile, entrepreneurial division made up of Revenue What were the overall impacts Rev
businesses and joint ventures based in of New Ways* of COVID on the division’s
business activities? -18.9% of I
(in EUR million) (in EU
Europe and Latin America, each specialising like-for-like

in one or more aspects of modular, lightweight,

p Cristian Montes,
Head of New Ways 2020 10 After we made big advances at the beginning
2020
of the year, COVID pressed pause on most of
2019 Our customers were
industrialised building technologies. *The revenue of New Ways excludes our non-consolidated
participations in several joint ventures.
our project ambitions.
impacted themselves, and not in the position to
Read what Cristian has to say about the consider launching the new projects that were
planned before the pandemic hit.
performance of New Ways during the
In the fourth quarter of 2020, we successfully
unique year that was 2020. built up a robust pipeline of very interesting
projects in all of our big markets. And of
course, our customer-centric R&D efforts
never stopped!

France l Acquisition of offsite

wood framing company e-Loft

> READ MORE ON P. 36

A challenging starting point –

but a promising finish. Brazil l Building five
hospitals in record time

> READ MORE ON P. 38

Argentina & Ecuador l Launch of
the new joint venture ICON+

> READ MORE ON P. 37

SITES
35 Offsite/Modular
New Ways Etex
2020 Performance Annual Report 2020

How Revenue
did we Europe

perform Business activities in Europe centred

around steel-framing technology through
continued on these projects, but at a slower
pace during the lockdown period. Tecverde

in 2020?
our EOS business in the UK and focussed on helped build and expand five hospitals in Brazil
infield solutions. in record time, and business continued to
accelerate in the fourth quarter of 2020. The
There were fewer sales recorded in 2020 due to division now has a strong pipeline of projects New acquisitions
the impact of COVID-19, but business continued consisting of over 2,000 housing units in total.
to move forward. The team successfully grow the division’s
The first year of the New Ways built up an enormous pipeline of projects in New Ways also created two joint ventures
division was off to a challenging other segments with our Thrubuild solution, with important local partners in Ecuador and global footprint
developed in partnership with Etex’s Building Argentina in 2020, where we established
start due to COVID-19. However, due Performance division (see page 37 for more a new brand, ICON+. In France, New Ways finalised a key acquisition for its global expansion
to the innate adaptability, flexibility details). The division was also able to engage plans in January 2021. e-Loft, an offsite wood-framing company
and entrepreneurial mindset of its customers for full solutions, including 50 houses active in the region of Brittany, holds a strong position in modular,
developed with a planner. 3D residential solutions for single-family homes, multi-family residential
businesses, the division successfully Outlook for 2021 complexes and customised multifamily buildings.
kept losses to a minimum, made Latin America
progress on its M&A roadmap, and and beyond New Ways officially took over leading Brazilian wood technology
Our activities in this region are mainly based company Tecverde Engenharia in February 2020. This business
built up a robust pipeline of new on wood-framing technology through our In 2021, the division will significantly increase was established in 2009 and has won a number of innovation
business opportunities to pursue in joint venture E2E. the number of housing units delivered to the prizes on its quest to transform civil construction in a
markets around the world. market, and begin building profitability. The sustainable, scalable way.
Via our factory in Chile, we continued to deliver new acquisitions are important milestones on
projects in 2020, validated our technology, our strategic roadmap, both in Europe and
connected with customers and tested our Latin America. Based on the boost they should
solutions in the market. At the beginning of provide, we anticipate 2021 to be a strong year
the year, the Casablanca (394 housing units for New Ways.
in the Valparaíso region) and Horizonte del
Pacífico (five four-storey buildings in the city of New Ways will continue to grow its foundation
Concepción) projects were completed. upon three strategic pillars: industrialisation,
The COVID-19 lockdown arrived soon after, digitalisation and sustainability, with the
closing the plant from May until September. latter being the very core of the division’s
Following this major disruption, a new pipeline business model.
of projects was lined up but delayed due to
uncertainty until the fourth quarter of the year.

In Brazil, E2E acquired a majority stake in

Tecverde, an experienced business with
ongoing projects, in February 2020. Progress

36 Placeholder
Placeholder picture picture
New Ways Etex
Commercial initiatives & Solution spotlight Annual Report 2020

E2E’s four-storey industrialised

Key commercial building platform

initiatives Defining the future of construction

from the ground up

While 2020 was an unusual first year, the New Ways division never faltered in the face of its
strategic ambition: to use technology to bring innovative, modular, future-focussed building What makes the platform unique
solutions to customers around the world. While the COVID-19 pandemic delayed some projects, • Prefabricated, fully integrated buildings produced in a matter of weeks
plenty of others came through as testaments to customer centricity during challenging times. • Enables complete modularity of building elements, for smooth customisation
• Highly efficient, environmentally friendly packing, transport and assembly

Partnering up with APPI Solutions for ICON+ is launched in Argentina colour and typography. We’re in the process of p Salvador Correa
integrated housing and Ecuador rolling it out across Latin America and Europe.” Head of Engineering
& Design at E2E Chile
The team of Salvador Correa, Head of low-income housing in Chile for the first use
UK company APPI called on EOS, a New Ways When it comes to steel-framing technologies, Two divisions team up to deliver Engineering & Design at E2E Chile, accepted case of their fully industrialised building.
business, to help develop and provide 150 New Ways has established two new joint end-to-end modular structures an ambitious challenge in 2020: developing an Salvador: “Many construction companies
modular solutions for use in easy-to-install, ventures with important local players; end-to-end industrialised construction platform want to work on these projects because of the
high-quality residential buildings. For this Azzollini Group in Argentina and Kubiec in New Ways teamed up with Etex’s Building that delivers real value, adheres to strict current housing shortage, but the architectural
project, EOS assembled 2D panels fabricated Ecuador. “We wanted to unite all of our steel- Performance division to tackle a 21st-century requirements – and changes minds. and performance requirements are strict and
and pre-fitted with outer boarding in its UK
factory, for delivery throughout 2021. These
framing business initiatives under a single, global
brand that resonates with every stakeholder”,
challenge: uniting Etex building technologies
in Thrubuild, a fully industrialised, modular
It is clear that With E2E’s sophisticated industrialised
the design has to be cost effective.”

solutions come with a 30-year warranty and asserts Eduardo Martinez, Business solution for the UK residential market. traditional construction construction technology, New Ways designs In collaboration with a specialised architect
full acoustic, thermal and fire certification for Development Manager for Latin America . and manufactures completely integrated, and a structural engineer, Salvador and his
UK markets. “Building Performance offers the high- methods are not closed timber-framed panels – with windows, team set out to create a platform for a sellable,
The team started with a brand identity exercise. quality materials, while New Ways provides
“The designs of these modular solutions were “We defined our purpose, how we want to be the lightweight and modular construction
capable of meeting the electricity, finishings – in its factory. industrialised, 32-apartment residential building
that is fully compliant with the requirements –
created especially for use with our industrialised seen by our customers, and how we want to be expertise”, says Sergio Sandoval. “We teamed needs and challenges “Our first mid-rise project, ‘Horizonte del in a month and a half.
technologies. That’s what makes this project positioned in our market”, continues Eduardo. up – not just on the technical aspects, but on Pacífico’, took enormous effort from the
so unique”, explains Sergio Sandoval, Head of the sales and marketing approach as well. of today’s society. We entire E2E team, from design to operations,” Delivering better outcomes with every
Strategic Initiatives Modular at New Ways. “For our name, we decided to start with ‘ICON’, Our goal: to bring a solution to the market that new project
“This is currently a singular approach in the since our solutions are long-lasting paragons of was designed from the outset to be built in an
are taking part in the he says. “We gained an enormous amount of
experience in the design of timber buildings
market and it enables us to craft solutions that their kind, and then add ‘PLUS’, which adds a industrialised way and then rapidly and cost- future of construction. for seismically active areas and created over “However, this project is just one example
are extremely customised, easy to assemble technological feel. The visual brand design forges effectively assembled on site. I’m really looking 1,000 design documents. of what we can achieve”, he emphasises.
and highly cost effective.” an immediate connection with Etex in terms of forward to our business pipeline in 2021.” We have the experience “Our platform consists of a ‘recipe’ of modular

and the expertise to “However, in the process, we found that

industrialised construction isn’t compatible with
‘ingredients’ as well as Etex plasterboard and
fibre cement products that can be smoothly
become a leading traditional approaches to architecture, design reconfigured to fit any land area shape and
and construction planning in Chile”, Salvador recombined in many ways.
player in this begins. “To create an entirely industrialised

rising field. building, we had to start from scratch, working

with new materials and reshaping the entire
“Most of the hard part – the design – is
complete, but it is continuously refined during
construction process from the earliest design each project, enabling us to deliver beautiful
phase – with every designer around the table.” industrialised buildings ever faster and
more efficiently. As a result, our customers
A successful first project in 1.5 month can access new business projects that were
previously impossible using conventional
Based on their learnings from the Horizonte del construction approaches.”
Pacífico project, E2E selected subsidised

37
New Ways Etex
Inspiring story Annual Report 2020

Building
five
hospitals in The difference a day makes

record time One Friday morning in March 2020, Product Engineering Director Pedro Moreira,
Site Operations Director Felipe Basso and the rest of the Tecverde team were
disheartened. “Lockdowns in Brazil had just been announced, which meant that we
To achieve this mind-boggling feat, the team set up a 24/7 production line enabling
the construction of 27 modules at the same time, spread across two sites. “We brought
in construction site professionals to become our manufacturing leaders, since they
were faced with the decision to close our facility until further notice ”, Pedro recalls. had plenty of finishing experience”, explains Felipe. “As responsible for the production
planning and execution, I had to be part of all three shifts, which meant pulling a 22-hour
In March 2020, timber-framing Then, Pedro received a call from Brasil ao Cubo, a modular steel construction work day at one point.”
technology specialist Tecverde, company. “They explained to us that they had accepted a government-funded Brasil Ao Cubo, São Martinho, Brazil
initiative to build hospitals in São Paulo, and that they needed our help in designing The built-in beauty and efficiency of industrialised construction
which was acquired in February an integrated, lightweight, timber-framed interior solution for their modular steel
2020 by Etex-Arauco joint venture structures. Their deadline: seven days from design to production.” The COVID-19 context actually made it easier for the Tecverde team. “Physical
E2E, was faced with Brazil’s meetings take too much time”, Pedro states. “And as an industrialised construction
“We had started the day with our heads in our hands, and we ended it by calling company, all of our design methods are digitised and fully integrated. We simply
COVID-19 lockdowns – just like everybody back to work!” Felipe enthuses. shared this digital information with Brasil ao Cubo to enable the optimisation of
every other industrial player in the designs.”
the country. But within hours, Innovating against the clock
“For the initial hospital project – which was the first of five – the team had to handle
steel company Brasil ao Cubo The Tecverde team worked nearly 24 hours a day to meet this improbable deadline. quite a bit of uncertainty, solving problems as they came up. “But we got smoother
got in touch with the Tecverde “We were incredibly motivated – both our team and our fellows at Brasil ao Cubo”, and smoother with experience – our second project was completed in 28 days”, says
team, eager to collaborate on an Pedro explains. “Together, we offered the complementary strengths and technologies Pedro. “We successfully standardised four of the projects, but one project involved
of our two businesses, and collaborated to innovate new ways of integrating, creating a complete hospital with multiple departments, posing a new challenge that
ambitious project: building and manufacturing and assembling our solutions to meet every strict requirement of took plenty of creativity and hard work to overcome.”
expanding a number of hospitals the project.”
in Brazil to ease the pressure of A mind-blowing experience
“We were moving so fast that I started the production planning process as soon as
the pandemic. the designs were finalised”, adds Felipe. “Every day, I’d receive one more sheet of the Pedro and Felipe are emphatic that this experience has altered Tecverde as a company. M’Boi Mirim Hospital, São Paulo, Brazil
project to plan. Every step was happening simultaneously. It was challenging – but “We already had experience with modular construction, but this project has made us
so fulfilling!” really good at it”, Pedro asserts. “We can combine 2D and 3D elements, tackle design
p Pedro Moreira problems with ease, standardise complex production processes. In short: we can do what
33 days from planning to “lights on” we do better, stronger, cheaper and more efficiently.”

Led by Pedro, the design team developed a basic module made up of three rooms “This was an incredible collaboration and mind-blowing for everybody involved,”
housing a total of seven beds, plus a bathroom. Pedro concludes. “Both Tecverde and Brasil ao Cubo have brilliant people capable of
overcoming obstacles under unbelievable pressure. Thinking about it today still
“This module could be repeated as needed, and we also created special modules for break gives me chills.”
areas, offices and other standard spaces”, says Pedro. “Brasil ao Cubo would supply each
module’s structure in steel – floor, supports, roofing – and then we would completely finish
the interior in our factory. This involved assembling the steel structure, manufacturing
the walls, installing wiring, adding the ceiling, taping, waterproofing, tiling, et cetera, and
then loading the ready-for-use module on a truck for shipping. The entire project, from
planning and production to delivery of all 44 modules needed for the first hospital,
p Felipe Basso
took 11 days. In 33 days, the new wards were receiving COVID-19 patients.”

M’Boi Mirim Hospital, São Paulo, Brazil

38
 Our CEO engaged in a conversation with six teammates
to summarise key topics of 2020 for Etex.

p Carla Sinanian,
Chief Strategy Officer
We care
about strategy
Our purpose is guiding our strategy. We want to inspire people
around the world to build living spaces that are ever more safe,
sustainable, smart and beautiful.
Watch the video
Therefore, in 2020, we made significant progress on our six strategic pillars
by strengthening our core businesses and concluding our exit from the clay
and concrete roof tiles business. We are steering a course for the future as we
imagine it.

39
4 Social and
environmental report
How we relate to our people,
our communities and the world

Our commitment to people and planet

Managing our asbestos past
41
43
Safety 44
Environment 46
People 48
Community relations and social projects 50

40 Etex in 2020 About Etex Activity report Social and environmental report Governance report Financial report
 Social and environmental report Etex
Our commitment to people and planet Annual Report 2020

Our commitment to
people and planet
The UN Global Compact: the world's largest
corporate sustainability initiative, which aims to
align company strategies and operations with
universal principles pertaining to human rights,
labour, environment and anti-corruption, and
encourages actions that advance society.

When it comes to our dedication to the health and safety of our people and social
and environmental topics, 2020 was a watershed year. In our support of the Sustainable
Development Goals of the United Nations, we made big strides last year on how to In the company
best focus our efforts. We are committed to achieving concrete ambitions based on
the material sustainability topics that we identified together with our stakeholders. of world changers
With this goal in mind, at the beginning
of 2020, Etex became a signatory of the
UN Global Compact – a global corporate
sustainability initiative committed to the ten
compulsory business principles of the United
The context of our social Nations and its 17 Sustainable Development
Goals (SDGs).
and environmental efforts
Effective stakeholder engagement and a deep
As a global player in the building materials Our definition of Corporate Social Responsibility that are ever more safe, sustainable, smart and understanding of their expectations help us to
and solutions industry, Etex is committed to (CSR) is our commitment to people and planet. beautiful. To do so, we offer comprehensive address the most relevant issues at every step
increasing its positive impact in the context building solutions and lightweight construction in our sustainability journey. As the first part
of several megatrends that shape the way Etex is uniquely positioned to offer responses technologies that are affordable, technically of our 2020 CSR roadmap, 450 Etex Senior 3 Good health and wellbeing 8 Decent work and economic growth
we do business, such as population growth, to these challenges based on our purpose of superior, and easy and quick to install. Leaders collaborated to select the top ten most 4 Quality education 9 Industry, innovation and infrastructure
urbanisation, climate change and the scarcity ‘Inspiring ways of living’. We want to enable As a significant consumer of energy and raw relevant SDGs for Etex in the context of our 5 Gender equality 11 Sustainable cities and communities
of water and resources (see below). people around the world to build living spaces materials, we are responsible for developing activities and impacts on people and planet 6 Clean water and sanitation 12 Responsible consumption and production
a specific roadmap to bring this vision to life. (see graphic). 7 Affordable and clean energy 13 Climate action

Climate change and resource scarcity Productivity lag and skill gap Changing regulations Housing shortage Ageing infrastructure Technological disruption Rapid urbanisation

41
 Social and environmental report Etex
Our commitment to people and planet Annual Report 2020

Embracing what our

stakeholders find important
As second part of our CSR roadmap, 650 stakeholders – internal The figures in the table below are indicating a relative weight on a scale from
personnel across functions and locations, connected suppliers and 0 (low) to 5 (high).
customers, external stakeholders, communities and our immediate Building a Sustainalytics, an industry-leading ESG rating
neighbourhood – responded to a survey on the importance of agency, used a rules-based methodology
20 sustainability topics. During internal workshops with experts and
PEOPLE
group-wide CSR to measure Etex’s exposure to risks and the
senior managers from all divisions, these 20 topics have been shortlisted effectiveness of our risk management approach
from a total list of more than 100. Through this process, the stakeholders TOPIC
IMPACT ON IMPORTANCE TO IMPACT ON
ECOSYSTEM STAKEHOLDERS ETEX
INFLUENCE
ETEX HAS data foundation against those of our peers. We received a rating
shared their perspectives on which of these topics they find particularly of 19.9 out of a possible 100 for business risk in
1 Employee training and development 1.4 4.1 2.5 4.3
important in relation to the impact Etex has. 2 Employee engagement 1.0 4.1 2.8 4.5
To provide our stakeholders with quantitative 2019. In 2020, Etex further improved this score
3 Inclusion and diversity (employees) 1.0 3.9 2.6 4.0 information about our progress and manage to 18.6 – a low-risk score in our industry, and
The final stage of our 2020 CSR roadmap exercise was to identify our actions, it is imperative for us to report on in the top 10% of our peer group.
specific initiatives and actions to pursue, and to define our specific CSR key performance indicators.
organisation’s ambitions for the coming three years – and in the
longer term. In addition to our ambition to lead our industry in health SAFETY & WELL-BEING This consistent KPI-based data foundation,
and safety, we are focussing on decarbonisation, waste reduction, TOPIC
IMPACT ON IMPORTANCE TO IMPACT ON
ECOSYSTEM STAKEHOLDERS ETEX
INFLUENCE
ETEX HAS
which will be detailed in our very first One Etex,
water management and promoting the circular economy. Sustainability Report (to be released later
4
5
Employee work-life balance, health and wellbeing
Safety management
2.6
4.2
4.0
4.4
2.8
3.5
4.2
4.7
this year), allows us to adhere to the rigorous one planet
The materiality matrix below will guide us to set the right priorities, reporting standards of the Global Reporting
actions and targets. It is also a good starting point to build on our Initiative. These standards are organised In addition to our CSR evolution, 2020 marked
sustainability reporting, which will help us increase the transparency of into three chapters: environmental, social an even deeper change for Etex as a whole –
our impacts and improvements. and economic. Voluntarily adopting these a change that is essential to our ability to
COMMUNITY RELATIONS
leading international standards is part of Etex’s face the future with agility, resilience and an
IMPACT ON IMPORTANCE TO IMPACT ON INFLUENCE
TOPIC
ECOSYSTEM STAKEHOLDERS ETEX ETEX HAS ambition to go beyond legal requirements, and innovative mindset.
6 Community engagement 3.0 3.6 3.8 4.2 to offer high transparency to our stakeholders.
Materiality matrix of Etex (2020) 7 Responsible economic growth 2.6 4.0 4.0 3.5 Over the last three years, we have carefully
8 Customer and stakeholder relations and satisfaction 1.8 3.8 3.4 4.3 implemented organisational structures and
HIGH

tools to embed a single, unified approach in

5
Objectively everything we do. Based on the results we have
achieved in 2020, these unified standards,
ENVIRONMENT
IMPACT ON IMPORTANCE TO IMPACT ON INFLUENCE
demonstrating technologies, cross-border ways of working
and shared best practices are bearing fruit.
an excellent risk
TOPIC
ECOSYSTEM STAKEHOLDERS ETEX ETEX HAS
We are proud of this change, and of our
18 9 Energy and emission management 4.6 4.0 3.9 4.0
people’s belief in our values.
exposure and
IMPORTANCE TO STAKEHOLDERS

10 Renewable energy sourcing 3.8 3.6 3.1 4.2

11 Impact of transport and logistics 3.0 3.6 3.6 3.3
3 20 Our activities are not just relevant for our
1 4 14
12
13
Water management
Biodiversity and ecosystem management
3.4
3.4
3.9
3.7
2.8
3.3
4.3
4.2 management company – or even just our industry. In
reshaping ourselves to become One Etex,
approach
2 7 9
15 we also commit to adopting a ‘one planet’
12 mentality. We accept the responsibility of
16
8 17 FUTURE-PROOF CONSTRUCTION At the end of 2019 and 2020, Etex received actively contributing to a healthier, safer and
its first ESG rating: a figure used by financial more sustainable world.
19 TOPIC
IMPACT ON IMPORTANCE TO IMPACT ON INFLUENCE
ECOSYSTEM STAKEHOLDERS ETEX ETEX HAS institutions, external investors and other
13
14 Sustainable products, services and innovation 4.6 4.0 4.1 3.7 stakeholders to gauge an organisation’s
6
15 Waste management 4.2 3.9 3.5 3.5 resilience to material risks in the areas of
10 16 Circular economy 3.0 3.8 3.9 4.0 environment, social and governance.
MEDIUM

11
17 Responsible materials sourcing 2.6 3.8 3.7 4.2 While we are not reliant on external investors,
18 Business ethics 3.0 4.2 3.2 4.2 Etex is a peer to many companies that are,
ETEX’S IMPACT ON THE ECOSYSTEM 19 Fair operating practices in the value chain 1.8 3.8 3.5 4.0 and we measure ourselves against the same
20 Pricing integrity, transparency and anti-trust 2.2 4.1 3.4 4.2
criteria for the benefit of all our stakeholders.
LOW MEDIUM HIGH

42
Social and environmental report Etex
Managing our asbestos past Annual Report 2020

Carefully managing About asbestos

our asbestos past Since its discovery and mainly since the industrialisation, this naturally
occurring silicate mineral has been used and is still used worldwide in
many sectors due to its technical characteristics. Asbestos is highly heat
and chemical resistant, electrically non-conductive and rot-proof.

It became the norm to use asbestos in many industrial processes such

Asbestos is part of our past and we continue to manage our history with the as textile, plastic, food, automotive, railway, insulation, construction
material carefully. Our group-wide policy enforces this commitment. and building industries. However all the health implications of inhaling
asbestos fibres were not yet known. Unfortunately it has taken the world
decades to fully understand the risks associated with asbestos exposure.

Asbestos the development of the disease. It is the most Health Compensate victims
Railroad
vehicles
Power
plants
cause-specific asbestos-related disease. Etex companies have to
through This long average latency period has slowed provisions ensure that those who become
Home
down or influenced the progression of seriously ill due to being exposed Insulation
the years scientific understanding of these diseases. Since asbestos-related diseases have a long to asbestos in their factories receive
appliances

latency period, Etex companies may still a fair financial compensation.

Automotive
In the past, some of our companies used Stringent regulations receive claims related to former asbestos Shipbuilding
industry
asbestos as a raw material in production. exposure. As part of our commitment to Prevent exposure
Throughout the 1980s and 1990s, the use compensate victims, our company Etex companies constantly monitor the
Preventive measures of asbestos was more strictly regulated and provides settlement costs for past presence of airborne fibres and safely Textile Plastics
in 2005, the European Union completely and future claims. manage all buildings and landfills. In 2020 we
Starting in the 1970s, Etex companies took prohibited its use. Etex entirely banned started an asbestos awareness training involving
measures to reduce asbestos concentration asbestos from the production processes of Several variables affect how 150 Site Managers, EHS Managers and Project Food
Construction
levels in the air in their factories. These included: all its companies in 2002, thus prior to the compensation is calculated, Managers from all over the world. The training was industry
European Union ban. and these may change over time. focussed on our asbestos policy, the potential risk
• Masks and other protective gear; We therefore regularly review our exposure, preventive health and safety measures, air
• Dust extraction equipment; The global picture approach to take into consideration monitoring, project management and communication.
• Shift from dry to wet production; any new information that may In the course of ongoing initiatives to upgrade sites and Former application of cement
• Automation of production processes; The name Eternit is used to patent the become available. buildings, including sites from recent acquisitions, we also produced by some Etex companies
• Exploration of alternative materials; technology which was sold worldwide to inventory and remove asbestos-containing materials.
• Ban of blue, brown and later white asbestos. multiple companies, several of which adopted
and retained the name for their company as Support research
These measures were aligned with the well as it being the name of the product. Group-wide policy Etex supports medical and scientific research. We started in 2012
legislation and based on scientific knowledge As a consequence, some companies today to support the Foundation Against Cancer and we are committed
available at the time, and were considered bear and/or sell products under the name We cannot undo the past and we deeply regret to support their research work until 2024, with a total donation EUR 10
effective ways to prevent health risks. Eternit while not being part of Etex. that people became and still become seriously of EUR 10 million over this period. It is our sincerest hope that
However, scientific and medical knowledge ill due to asbestos exposure. To put adequate treatment for asbestos-related illnesses will benefit from medical million
further evolved, indicating later that this It should also be noted that although the use support systems in place we established a and scientific research in the future.
was not sufficient and that some risks of asbestos is prohibited in the EU, in many mandatory policy that enables our companies In donations to the Foundation
persisted. Asbestos-related diseases such countries around the world it can still be to manage their past vigilantly. The policy is Against Cancer between
as mesothelioma can take an average of legally used and sold. based on a three-way approach: compensate 2012 and 2024
45 years between the start of exposure and victims, prevent exposure and support research.

43
Social and environmental report Etex
Safety Annual Report 2020

When challenges
contributing to COVID-19 relief causes (see plateau behind, moving from a lost-time accident
become page 51 for more details). Thanks to careful frequency between 1.9 and 2.6 down to 1.4. These
preparation, teleworking became the norm, figures are the direct result of the structural
opportunities and inter-divisional collaborations have never changes implemented over the last two years,
been so numerous. which aim to transform Etex into a global,
for growth unified, simpler and more agile organisation.
Despite all the actions taken at our premises
As it did for most industries worldwide, the and our awareness-building and personal With collaboration much more fluid and best
coronavirus pandemic put health and safety protective equipment distribution, several of practices shared across divisional boundaries,
in the spotlight. Ensuring the safety of our our teammates were unfortunately infected Etex colleagues work more closely together
employees has always been our number one in their private life, some of them were as well as with the EHS community to ensure
priority – but in 2020, a new challenge pushed hospitalised, and we tragically recorded six operational excellence. Because safety and health
us to collectively embrace new ways of COVID-related fatalities in Lima and Huachipa, are directly linked to our new way of working,

Health,
collaborating. We were compelled to rapidly Peru, and one in Gacki, Poland (situation at they are becoming more and more embedded in
adapt our behaviour to sustain the safest 18 March 2021). In all cases, our HR teams have everything we do.
operating conditions with extended COVID- been supporting the families affected.
related provisions while continuing to serve our These best practices have been distilled from our

safety and
customers. We are very proud to say that Etex Our Environment, Health & Safety (EHS) teams learnings from incidents. A few days after every
came through with flying colours – in fact, the also operate in a much more aligned way. We incident, safety alerts are communicated to the
President of Colombia, Iván Duque Márquez, now work cross divisionally to develop and act EHS and manufacturing teams to avoid repetition.
publicly cited Etex as an exemplar of how to on a structured roadmap towards achieving Incident debriefs are held with plant management

wellbeing
continue to work and grow during a pandemic. our health and safety goals. and EHS leadership teams after every lost-time
accident, medical aid accident and any potentially
COVID-19 has changed Etex as an organisation. serious near-miss or first aid response.
We immediately deployed an agile squad to Historically low
create and implement a list of preventative
measures worldwide. Colleagues from across safety numbers
the globe and across a wide range of functions
have come forward with bright ideas on how to When it comes to safety in our plants, 2020 was
Gravity rate
work even more effectively in2020
“the new normal”. 0.08
also a turning point. After years of consistent
In 2020, our ongoing of accidents
Etex facilities have dedicated themselves
2019 to performance,
0.11
Etex has successfully left its safety

commitment to our zero- Level of absenteeism after an

accident. The higher the rate,
2018 0.40

harm goal hasn't wavered. Etex the more severe the accident. 2017 0.15

made great strides in its health and Our health and safety performance in 2020
2016 0.31

safety engagement, standards animation

efforts and risk management approach. Frequency rate 2020 1.4 Gravity rate 2020 0.08
Our organisation achieved these wins while of lost-time 2019 2.2 of accidents 2019 0.11

adapting to a new way of working and the accidents 2018 2.2

Level of absenteeism after an
accident. The higher the rate,
2018 0.40
Number of lost-time accidents
challenging conditions of the COVID-19 pandemic. 2017 the more severe the accident. 2017 0.15
2.6
per one million hours worked
2016 1.9 2016 0.31

Even more, our 450 Senior Leaders stated that the

UN's Sustainable Development Goal 3, ‘good health
and wellbeing’, is the most relevant one for Etex. Frequency rate 2020 1.4
44
of lost-time 2019 2.2

accidents 2018 2.2

Social and environmental report Etex
Safety Annual Report 2020

Machine

Visible leadership and risk assessment) standard as well as five An introduction to 4. The standard for working at height (WAH)
Work at
height
safety
3%
other critical standards. All Etex facilities have establishes the minimum health and safety
as a safety committed to implementing this concrete critical standards requirements for the control of risk to
Energy 5%
isolation
plan by the end of 2021. employees and others associated with the
engagement driver at Etex need to work at height. It establishes a
7%
We will complement the implementation of common and systematic approach intended
Our leaders walk the talk and engage daily these standards with our excellence tool, Critical standards have been developed to to eliminate the risk of injuries. Other
in safety efforts. Several instruments are in an app that facilities use to track progress mitigate the risk of serious accidents and 9% Number of
place to assist our leaders in engaging their according to critical standards. Work at height, fatalities and are known as “life-saving 5. Interactions between people and mobile lost-time
accidents Manual
teams. In 2020, we introduced safety intensity energy isolation and machine safety are the standards”. Etex has five critical standards: equipment also pose common hazards and
and medical handling
as a way to measure safety engagement in all three standards most important to reducing risks. The site traffic standard was developed
our plants. Safety conversations, near-miss the gravity of accidents. 1 . The machine safety standard stipulates to prevent traffic accidents from occurring
aid accidents 44%
in 2020
reporting and safety activities are summarised that risks must be managed to ensure that in Etex facilities. To effectively control
in a safety intensity score for each teammate In addition to our adherence to HIRA machines are inherently safe to operate. It workplace transport risks, the vehicle, the
on a monthly basis. We strive to touch base requirements, COVID-19 required us to also stipulates that new machinery must driver and the working environment must be
on safety with every teammate as often reassess the risks involved in every task in comply with the CE marking indicating managed appropriately. Slip and trip
as possible. our facilities to ensure social distancing and that a product has been assessed by the 32%
the provision of additional personal protective manufacturer and deemed to meet EU Within the context of our critical standards,
In 2020, the Etex EHS team transformed this equipment when required. This thorough safety, health and environmental protection 15% of our lost-time accidents (LTA) and
structured roadmap into a concrete plan. last-minute risk assessment directly requirements or equivalent directives and medical aid accidents (MAA) have the potential 75 LTA’s and MAA’s in total, from which 11 are considered as potentially serious.
The team is in the process of completing the contributed to an increase in risk awareness, standards regarding safety. to be serious and thus are analysed with
identification of risks in Etex factories by fully and indirectly to safer working environments. particular rigor.
adhering to the HIRA (hazard identification 2. The energy isolation standard establishes
a common and systematic approach Adherence to Zero harm continues to be the foundation of
intended to eliminate the risk of incidents Directing assistance our health and safety policy. Between 2016
that may arise from the unexpected international and 2018, we implemented the SafeStart
energisation, start-up or release of energy where it is most behavioural safety principles across Etex. In
when performing any tasks associated with standards 2020, all of our plants committed to reviving
machinery, equipment and processes (MEP). needed these principles and achieving the consistent
Many of our plants are preparing to make or level of maturity needed to sustain the
3. The confined spaces standard procedure Also new in 2020 was our focus plan have completed the transition from the momentum of SafeStart group-wide.
The Etex describes the process for implementing programme. We selected five Etex plants OHSAS 18001 standard to its replacement
and applying safe working procedures in with room for improvement in lagging safety standard, ISO 45001, which highlights an In addition, we have chosen to transform the
EHS app: confined spaces at Etex. indicators, leadership or implementation of organisation’s health and safety SafeStart curriculum, which was developed
standards, and we launched a booster initiative management system. by an external occupational health and safety
unlocking global to elevate them rapidly by providing coaching, organisation, into an Etex initiative. This tailor-
resources and assistance. We are proud to made safety programme will be based on our
EHS leadership note that our plant in Guangzhou (China), for Breathing new life organisational values and strategic pillars,
instance, quickly rose to 100% implementation and offer a familiar Etex look and feel.
Our IT team developed a custom EHS reporting of the HIRA standard, a key element of the into SafeStart
tool accessible to all our employees worldwide focus plant programme, in a few months’ time. With this ambition in sight, we took steps
to track our performance on all EHS indicators. Plant and EHS Managers praise the focus plant The Executive Committee of Etex participated in 2020 to pave the way for master trainer
programme as a booster for their own local in a safety workshop in October 2020, certification for nine candidates in 2021. These
Thanks to this tool, Etex can report progress health and safety initiatives. committing themselves to our updated 2021 master trainers will be responsible for coaching
on leading and lagging safety indicators on EHS plan. additional trainers in safety matters, who will
a monthly basis. It also enables us to share in turn train Etex colleagues across the globe
safety alerts and even exchange learnings moving forward.
from incidents and ‘near misses’ to colleagues
around the world through structured
incident analyses.

45
Social and environmental report Etex
Environment Annual Report 2020

Etex UK’s pathway to net zero carbon emissions

As the United Kingdom is the first nation to put a 2050 carbon ambition into law,
Etex UK found this to be a useful context for setting science-based zero-emission targets,
and incorporated these national goals into its own business processes. The milestone target
of 2020 was a reduction of 35% in emissions compared to a baseline set in 1990. Etex UK
has a good track record of progress through improving energy efficiency and investing
in modern technologies.
Transparent
In recent years, the decarbonisation of the electricity grid has contributed to the
environmental downward trend in manufacturing emissions, and the central Etex purchasing team
helped the UK business cross the line. It negotiated a new electricity contract that
data through took effect in April 2020 and which supplies 100%-renewable power to all Etex
UK sites.
standardised
reporting
To provide our stakeholders with quantitative
information about our progress and to manage
our actions, it is imperative for us to report on

Environment
key environmental performance indicators.

In 2020, we achieved an essential milestone in Emissions and

our environmental data collection efforts thanks As another 2020 decarbonisation initiative,
to the Etex Green Team. After an induction our move to Etex purchased 100% of the electricity
training session, 30 volunteers from different consumed by all four of its divisions in
entities and functions all over the world defined, renewable energy Europe from certified renewable sources.
collected and reviewed our environmental Furthermore, two Etex businesses in Chile had
data to ensure alignment with the Global In line with its CSR strategy, Etex set a clear already received Renewable Electricity Balance
Reporting Initiative (GRI) standards. As a ambition to decarbonise. In 2020, in collaboration Certificates for supply as early as 2018.
While a crucial actor in result, our now comprehensive group-wide with external partners, Etex decided to launch
CSR reporting capabilities unlock data-driven seven photovoltaic projects in Spain, Italy, In 2020, we also reviewed our investment
the value chain for buildings benchmarking and improvement, enabling France, Belgium and Germany. The first plant process to incorporate CO2 impacts into

that provide real value to us to seize new opportunities and to keep our
stakeholders informed about our progress. The
began producing electricity in December 2020.
With a total capacity of 12 MWp, these projects
financial project calculations. Doing so drives
our investment decisions in a sustainable
people's lives, the construction environmental data, based on GRI standards, will generate 18 GWh of renewable energy per
year, reducing annual CO2 emissions by
direction. For example, this led to our decision
to move to fully electric forklift truck fleets
will feed into Etex’s first Sustainability Report,
materials sector is also characterised by which will be published in 2021. 4,800 tonnes. across our activities.

environmental challenges such as energy-

intensive production and use of raw materials.
Emissions, water use and the circular economy Energy intensity
(kWH/t)
% Green electricity produced and purchased/
Total electricity consumption
% Waste recycled/Total waste
treated externally

are key environmental topics for us, which we address

2020 636.7 2020 71.8% 2020 78.3%
through data-driven decision-making, increased 2019 628.7 2019 13.7% 2019 69.2%

reliance on renewable energy and further emission 2018 674.6 2018 13.7% 2018 62.7%

reduction measures. We also invest in innovations

which positively impact the environmental footprint
of our products’ life cycle.
46
Social and environmental report Etex
Environment Annual Report 2020

Comment on the results below Etex teams up for circularity Our Bristol site: toward zero waste The Sahara Project: reducing water including waste streams, into end products.
to landfill use through process optimisation Our success will also contribute to lower energy
After recording good progress over the last years, we have seen an increase in our In late 2020, Etex Belgium linked up with and innovation consumption and improve the lifecycle quality
energy intensity and related emissions, as well as in water withdrawal intensity more than ten partners to develop a circular The Etex team in Bristol, UK has managed to of our products. Ultimately, the sum of our
in 2020 compared with 2019. Lower volumes in most of our markets due to the approach for its EQUITONE brand. A jury as achieve and maintain a recycling rate of 100 Launched in September 2020, the Sahara actions will help reduce the carbon footprints of
global pandemic as well as our decision to close many of our plants for several well as the Flemish government were convinced through excellent waste segregation, increased Project is funded by the Belgian government these industrial activities. Overall, we have set a
weeks, have had an impact on higher energy and emission demand. We have also by the proposal and awarded a subsidy of awareness, new and improved storage, signage, and carried out in collaboration with leading carbon footprint reduction target of 20%.
been impacted by a changing demand in some market segments, which influenced EUR 100,000 to support the project in 2021 and and most importantly, praise where it is research institutions in Europe, as well as with
the previous trends. Very positive was the move to increased use of renewable 2022. A convincing factor was the fact that due. Moreover, the site team included waste third-party companies. This project is one of So far, we have initiated a preliminary lab
electricity and the strong reduction in landfilled waste. Etex as well as a significant number of partners management and recycling in the agenda Etex’s levers to improving the production of investigation to assess new technologies
across the value chain (cement producers, during recent staff engagement days and the our cement-based products in terms of several and the use of alternative binders to replace
logistics partners, recycling companies, dealers, entire team received a waste awareness and environmental factors. Portland cement in our product recipes.
installers) have agreed to work together on management training course. Our contractors
this project. are also involved in our waste management Our target is to produce cement-based
Energy Total
energy Energy
% Green electricity
produced and ambitions. products in a more environmentally friendly
consumption intensity purchased/Total The subsidy is intended to support action, way by not only optimising the water
(kWh) (kWH/t) electricity consumption rather than theory, which then can be analysed Our customers are increasingly interested in the requirements and carbon footprint of current
2020 4,459,923,355 636.7 71.8% and learned from. It implies that for two years, recycled content of our products. This has not production processes, but also by considering
several experiments will be performed to gone unnoticed, and Etex is now the leading alternatives or emerging production techniques.
2019 4,817,606,614 628.7 13.7%
2018 4,693,996,735 674.6 13.7%
further develop a circular value chain for our plasterboard recycler in the UK. The target at We look at innovative formulations and the
EQUITONE façade solutions, which will then be our Bristol site for 2020 was 147,000 tonnes of application of alternative new materials,
valorised in sustainable customer services. recycled material (+23% compared to 2019).

Emissions Greenhouse gas

emission
intensity -
scope 1 (t/t)

2020 0.103
2019 0.102

Committed Innovation for

2018 0.109
in terms of insulation, acoustics and fire It is also our organisation’s responsibility
resistance, we also aim for the ability to to ensure product liability and a full and

Weight
to the circular deconstruct, reuse and bring them back into sustainability transparent assessment of our product portfolio.

Waste % Waste
recycled/Total
of non-
hazardous Waste
% Waste
landfilled/ economy
our own manufacturing processes.
We believe that innovation is the key to
We are dedicated to assisting with product
lifecycle assessment and product optimisation
waste treated waste intensity Total waste We also made strides regarding the reduction achieving economic gains while reducing in order to enable end users and architects to
externally landfill (t) (kg/t) treated
Etex is fully committed to integrating of landfilled waste. In 2020, our plants in the UK environmental impacts during the entire calculate and certify the energy performance of
2020 78.3% 62,756 49.56 18.2% our activities into the circular economy. and Italy were the first to achieve the ambitious lifecycle of our product portfolio. In 2020, all materials we use in our products.
2019 69.2% 84,343 42.73 26.1%
We actively seek new sources of alternative goal of zero landfilling by implementing reuse we stocked up our resources even further to
2018 62.7% 76,376 41.39 26.8% raw materials, replacing primary raw materials or recycling solutions for all types of waste explore how to produce solutions that are both In 2020, we reinforced lifecycle assessments
with secondary raw materials wherever possible generated on site. technically superior and competitively priced, (LCA) and, on this basis, environmental product
and through strong partnerships. These enable but also meet our sustainability ambitions. declarations (EPD) for all main Etex product
us to continuously optimise the products, Our internal motivation for and proactive ranges. Looking ahead, we continue to

Water Total
water
Water
withdrawal
systems and solutions we provide to our
customers around the world.
initiatives towards circular value chains were
also reflected in the outstanding achievements
For example, we reduced our water
consumption in 2020 by 4.3% year-on-year.
regard partnerships and collaboration as
essential to accelerating our innovation journey,
withdrawal intensity made by our fibre cement team in Neubeckum, Next to our continuous efforts across the entire and will proactively search for suitable partners
(m3) (m3/t)
In our pursuit of circularity, we aim to extend Germany. Their actions to reduce waste along Etex group to further reduce the total volume such as value chain players, start-ups and
2020 5,762,103 0.84 the lifetime of our products. Thus, next to the entire manufacturing process – from raw of water consumed, innovation will enable us to universities for scientific research.
2019 6,022,622 0.79 improving our products’ technical performance material infeed to the loading of finished further improve our results. As one important
2018 5,607,124 0.81 products onto trucks – were acknowledged milestone, we seek to avoid the use of potable
through our Etex CEO Award 2019 (see page 49). water in all industrial processes.

47
Social and environmental report 18.6% Etex
People Female Annual Report 2020

Facing the future As we transformed our operational processes, As a result, we seek to foster leaders who
commercial approach and ways of working are the visionaries, architects, coaches and
with vision, agility By gender
to become more agile and aligned, we catalysts needed to enable the full potential of
also engaged in a discussion with our each one of us in order to grasp opportunities
and collaboration leaders which has led to the definition 81.4%
of the and overcome challenges in this new world.
next steps in our cultural journey. This group
Male

In 2018, in collaboration with an external exercise led to an important commitment: This doesn’t simply apply to managers and
partner, Etex introduced ‘Me & Etex’: a to take a strategic approach to leadership business leaders; we want to empower every
comprehensive engagement survey that development that is tailored to our context, single teammate to make impactful, value-
has formed the basis to launch numerous our values and our people.  adding day-to-day decisions. 
employee engagement initiatives around Corporate &
central functions
6.6% Africa
the world during the next two years.  The Etex Leadership Principles  Asia-Pacific 5.6%
Putting a well-founded plan
5.1% New Ways
18.6% 0.7% into practice
Female
Inspired and driven by the results of our Industry
Through 18.6%
a collaborative exercise we have
5.4% Female
2018 engagement survey, Etex embarked on defined our Leadership Principles and As of the first quarter of 2021, our Leadership
18.6% a journey to achieve two outcomes:  communicated them throughout our Principles are incorporated into performance
Female
organisation in 2020.  review cycles, during which Etex teammates
1. establishing a simpler organisation with By region Europe
By gender 22.8% 66.0% progress relating to the principles are measured 64.0%
harmonised processes; Facing times of rapid change, disruptive
Exteriors By gender Building and benchmarked. Based on their progress, we
By division Performance
technologies, dynamic market characteristics can craft tailored learning and development
By gender 81.4%
2. instilling a leadership DNA that fosters and agile competitors, we are evolving into an programmes to support the growth of the
Male 23.8%
81.4% Americas
a culture of collaboration, innovation and organisation that is much more like a living, leadership characteristics they need to perform
Male
value creation.  breathing organism than a machine.  their responsibilities and make decisions in an
81.4%
Male agile, informed way.

Our Etex employees in 2020

Corporate &
central functions
5.1% New Ways
0.7%Africa
6.6%
Asia-Pacific
Africa
5.6%
Corporate &
central functions
5.1%
5.8%
Temporary
6.6%
contract
94.2%
Permanent
Africa
5.6%
Asia-Pacific contract

people
New Ways
Corporate & Industry 6.6%
central functions
5.4% Asia-Pacific 5.6% Industry
0.7%
5.1% New Ways 5.4%
0.7% 46.8%
Industry Office /

We entered 2020 with a clear 5.4% Commercial staff

By type By region Europe By contract
type
22.8% 66.0% 64.0% By region Eu
ambition in terms of the support, Exteriors
By division
Building
Performance
22.8%
Exteriors
53.2%
Factory
66.0%
Building
64
By region By divisionworkers
development and empowerment of
Europe Performance
22.8% 66.0% 64.0% 23.8%
Exteriors Building Americas 23.8%
our people. Focussing on people first is By division Performance
Americas

23.8%
the core driver of performance. This makes Americas

our way of working just as important as our 5.8%

Temporary
94.2%
5.8%
Permanent 94.2%
achievements, hence our focus on our values and 5.8%
18.6%
Female
contract contract 11,387* Temporary
Teammates
contract
Permanent
contract
94.2%
leadership principles. However, COVID-19 forced us to Temporary
contract
Permanent
contract
46.8%
adapt to collaborating in a new reality. In the face of this Office /
Commercial staff
46.8%
85 44
challenge, we achieved a number of truly46.8% admirable
Office / By contract
By type By
Commercial staff gender type Nationalities By contract
Average
53.2% By type
age oftype
milestones that pave the way for a more agile,By type
Office /
Commercial staff Factory 53.2%within Etex's Etex
By contract workers 81.4% Factory workforce teammates
engaged and empowered future. 53.2%
Factory
type Male workers

workers

*This figure excludes the personnel of the Residential Roofing companies which have been divested in 2020 (Creaton, Marley (SA) (Pty) Ltd and our 50% stake in RBB NV),
Corporate
as well as the personnel of Knauf’s former plasterboard business in Australia, as this operation
central functions
6.6%
& was finalised in February 2021. It does include, however, the personnel of Africa
FSi Limited, which was acquired by Etex in September 2020. Asia-Pacific5.6%
5.1% New Ways
48
Industry
0.7%
Social and environmental report Etex
People Annual Report 2020

Adapting our engagement approach successfully become more agile in the way we Growing engagement where it counts
to changing times work, communicate and connect. the most
The Etex CEO
A new edition of the ‘Me & Etex’ employee This also had an impact on our delivery Etex teammates responsible for ensuring the
Award 2019: engagement survey was planned for of training sessions and learning and safe, efficient flow of our production processes
distribution in 2020, but due to the difficult development programmes – which had to also have new opportunities to grow and
honouring the context of COVID-19, Etex chose instead to be converted into digital-friendly forms. In thrive. In 2020, we introduced the First Line
connect with employees through a small-scale 2020 about 5,000 employees were active on Management Development Programme for our
achievements survey, available to all, that was run in-house. our learning platform. On average they spent first level Line Managers, a direct response to
nine hours on learning activities (webinars not our 2018 employee engagement survey results.
of the year Staying connected and aligned with our people included). During the course of 2020 we have
is one of Etex’s key strategic priorities. As an seen an increased number of logins to our It is a fact that high employee engagement
Playing a central role in our engagement efforts organisation, we strive to measure our progress learning platform, reaching between 4,000 and is essential for strong business performance,
is our Etex Awards programme, which we against our 2018 benchmark and give our 5,000 per month, with a substantial increase and leaders and managers have the biggest “It is great to see that
introduced in 2019. Throughout 2019 and 2020, employees strong voices with which to express since April. impact on engagement. By empowering our
a number of Etex Impact Awards and Etex their needs, ideas and opinions. The primary first level Line Managers and supporting them Etex has what it takes
Excellence Awards were presented to well- purpose of this survey was to measure our Introducing the Plant Manager to gain leadership skills, we do not only boost to support the plant in
deserving teammates from around the world people’s perceptions of Etex’s response to the Induction Programme their effectiveness as leaders; we also invest
who demonstrated strong leadership skills, COVID-19 crisis. in their engagement. This, in turn, leads to
every challenge; this
lived our values and contributed measurable One example of a high-impact digital inspired, engaged Etex work floor teammates, programme helped
business impacts. This was a completely digital initiative and an development initiative kicked off in 2020 is and even safer, more productive facilities.
impressive achievement, considering the agility our Plant Manager Induction Programme. With
me see my job from a
At the end of May 2020, the winner of the needed to move to a new way of working in this programme, we commit to developing To guide this initiative, together with an different perspective,
very first Etex CEO Award was also announced the middle of a pandemic. The survey was the skills and leadership capabilities of our external partner, we developed an interactive
understand the areas
by our CEO Paul Van Oyen during a virtual run in fifteen languages across the globe. An Plant Managers. Etex Leadership Development Programme for
ceremony gathering thousands of teammates. With this project, impressive 8,500 Etex teammates responded to our first level Line Managers, and a first group where I can improve
With this prestigious award, individuals and Michael demonstrated the survey, including a very high response rate In 2020, sixteen Plant Managers from all participated in it. and meet teammates
teams achieving exceptional or transformative all three Etex values from our work floor employees. continents gathered virtually to discuss a
results for our organisation through their when he brought people number of topics with a group of Senior Throughout 2020, our teams worked hard who face similar issues
projects or initiatives can be nominated by a together across functional 93% of them agreed Leaders. Eighteen learning sessions were held, to lay strong foundations for learning and in other plants.”
member of the Executive Committee. Among and organisational boundaries that we successfully connected and cared as tackling topics ranging from strategy, EHS development. At the end of 2020 and moving
this select group of people and teams, a winner to achieve process improvements, an organisation. leadership and Industry 4.0 to operational into 2021, learning initiatives have been rolled
is finally chosen. reduce production line rejects and excellence, customer centricity, feedback out via our digital learning platform, and other
improve the overall quality of 93% of them agreed culture and more. initiatives will be launched. p Marco Aurelio Vento
Process Engineer, Coating Supervisor and Etex solutions. As a result, his that proper safety precautions have been put Technical Director, Etex Nigeria

Cladding Deputy Production Manager project had material impacts in place. This programme is a direct application of
Michael Orlowski was revealed as the 2019 on Etex’s performance. two of our Leadership Principles, ‘develop
recipient of the Etex CEO Award for his IT tools for collaboration and learning ourselves and others’ and ‘collaborate and seek
‘Zero Rejects’ project. in the time of COVID-19 win-win outcomes’. In addition to the learning
sessions, participants were also paired with
Thanks to thoughtful preparation and an experienced mentor who was responsible
investment in supportive IT hardware and tools, for offering expert advice and guidance
the unusual and stressful circumstances of when needed.
COVID-19 brought Etex teammates even further
together – digitally, of course. Our Plant Managers had great things to say
about their experiences with the programme
The pandemic pushed our organisation to last year and committed to continuing their
accelerate our implementation of IT platforms learning journeys.
to allow teammates to keep in touch with each
other and customers alike. Thanks to strong
support and enthusiasm across Etex, we have

p Michael Orlowski

49
Social and environmental report Etex
Community relations and social projects Annual Report 2020

Being at the Actively embracing

heart of our local the Sustainable
communities Development Goals
Our decentralised approach helps us ensure We take the support of the United Nations’ stop there; we also seek to create value
meaningful engagement with our local Sustainable Development Goals 11, “Sustainable beyond our local communities by supporting
communities. We believe that our local Cities and Communities”, and 8, “Decent Work particularly vulnerable people in facing social
teammates know their communities best, and Economic Growth” to heart. We combine emergencies and opening up opportunities for
and we are proud of the numerous projects our strengths in inspiring and supporting a better future for them and their families.
and actions initiated around the world that safe, sustainable, smart and beautiful While some of our engagements were
are based on what they know to be their housing solutions with the knowledge of our temporarily slowed down due to COVID-19, this
communities’ needs. This helps us build trust longstanding non-profit partner SELAVIP only fuelled our passion to move ahead with
and strong, long-lasting relationships. and its network of local NGOs. But we don’t our social projects where possible.

A few examples of our social projects in 2020

Supporting a Donating masks Financing and Fulfilling children's Helping with the
charity organising and overalls to maintaining a Christmas wishes renovation of a
food banks in the UK hospitals in France sports centre in Germany shool building

Community
in Belgium in Lithuania

relations and
social projects
Supporting a social
housing project in
the Philippines

For Etex, our teammates and the Starting a

60-house project Supporting the
construction
to offer a shelter
communities in which they live and to low-income
families in Ecuador
of 60 houses for
very poor families

where they operate are key. We strive in Indonesia

to be a long-term partner in the social and

economic development of those communities. Donating Eternit
water tanks in Peru
Building schools
in townships in
Donating personal
protective equipment
We benefit from local talent and from the supply South Africa and plasterboard
products to a hospital

of local goods and services. In turn, we create jobs, Sponsoring eight

students and
Donating masks to
members of the security
in Italy

transfer skills and offer support to our local communities donating food
boxes in Chile
forces and firefighters
in Argentina

through social projects.

50
Social and environmental report Etex
Community relations and social projects Annual Report 2020

Social engagement Etex to optimise the sizes of classrooms, Belgium Social engagement
kitchens and sanitary facilities, construction
in Asia started in 2020 and the first schools are A community sports centre offers great value, in Latin America
already hosting teachers and students. enabling inhabitants to come together, enjoy
Philippines
Philippines exercise and a healthier lifestyle, and pursue Peru
their personal sports goals. In Kapelle-op-den-
Decent housing is a basic human right that Social engagement Bos, a sports centre financed and maintained by Based on the fact that 30% of the population
Ecuador

affords people dignity. In the Philippines, Etex Etex allows everyone in the community to enjoy in Peru does not have direct access to clean
Indonesia has already been supporting several in Europe its amenities for free. One special event was the potable water, and hand-washing is one Chile Ecuador
social housing projects. In 2020, fibre cement “Fit & Fun 4 Kids Week” organised by Etex in the of the basic World Health Organization
boards were delivered to support a new Lithuania summer of 2020, which brought many smiles to recommendations to combat the COVID-19 Quality education is essential to our In partnership with the NGO “Hogar de Cristo”
housing project. The installation was completed the faces of everyone involved. pandemic, Etex donated 30 Eternit water tanks development as well-rounded human beings. in Guayaquil, we started an exciting sixty-house
at the end of the year. Etex’s Akmenė plant helped a regional to the community of San Antonio de Huarochirí It is also one of the most powerful tools in project in 2020 to offer shelter to low-income
school renovate its aging building by offering Germany in the neighbourhood of our plasterboard plant lifting socially excluded children and adults families. Due to COVID-19, the project was
Indonesia consultancy services, support in the preparation in Huachipa. out of poverty and helping them become forced to temporarily slow down. In 2020,
of the roof works and roofing materials. Christmas is traditionally a special time for part of the wider community. In 2020, Etex Etex Colombia donated construction materials
In partnership with the SELAVIP foundation, children. Together with the local charity sponsored eight talented students and funded which will be used in the construction of the
Etex Indonesia sponsored the construction United Kingdom organisation “Froschkönige gegen KinderArmut their college education, thereby continuing our 60 new houses planned. The frames for the
of 60 houses in the city of Palu on the island eV.”, which works on the field to combat child support of the important work of “Fundación houses are based on steel framing that is easy
of Sulawesi to offer very poor families better Due to the impacts of COVID-19, many families poverty, Etex Germany invited 50 children to Belén Educa”, an organisation that offers to assemble on site, developed with our sales
housing conditions. In 2020, the construction in the UK have been put under financial attach a Christmas wish to a Christmas tree that schooling to low-income students. force in Ecuador. The prototype has been
materials were delivered and 40% of the constraints. Fortifying our community spirit, Etex teammates took upon themselves to fulfil. successfully completed.
project was completed. Due to COVID-19, the Etex UK worked together with the Trussell Etex paired every gift given by our teammates
construction was slowed down and will now be Trust, a charity that organises food banks and with a financial donation to the organisation to
finalised this year. other crucial forms of support, such as the help them continue their precious work.
provision of warm winter clothing for children
in need. Etex provided support in the form of
Social engagement manpower, products where premises or racking
are in need of repair, and financial contributions.
in Africa A donation of GBP 2,000 was given to each All hands on deck Italy Argentina
Trussell Trust food bank near the five Etex sites
South Africa in Grangemouth, Ferrybridge, Newport, Bristol to help in the fight Our local Italian site took immediate action to The COVID-19 situation meant increased demand
and Basildon. help Lombardy, one of the regions that suffered for face masks, which was a particular challenge
In partnership with local NGO Ikhayalami, against COVID-19 the most from COVID-19 in the first half of 2020. for people responsible for ensuring the safety
which pursues a vision of affordable homes and Our plant in Filago donated personal protective of our communities. In this time of need and in
alternative technologies for all, Etex As COVID-19 posed new threats to communities equipment to the Papa Giovanni XXIII Hospital a spirit of solidarity, the Etex Argentina plant
South Africa committed in 2019 to building worldwide, Etex rose to the challenge, of Bergamo. In the context of the hospital’s in Mendoza donated more than 100 masks to
seven schools in several townships of Cape supporting communities and creating positive continuous fight against the virus, Etex Italy members of the security forces and firefighters.
Town. Based on a design tailor-made by impacts in places that were particularly affected. also contributed to the hospital’s COVID-19
The following are only a few examples of fund. Moreover, Etex Italy delivered two trucks France
compelling community spirit, initiatives and full of Etex plasterboard products to the
leadership displayed by our teammates in 2020. hospital. This enabled the hospital to build The neighbourly spirit was also alive and well
150 emergency spaces for patients in the first at Etex France’s Auneuil plant. In the north of
Chile week of April. Of course, caring about our France, an area highly impacted by COVID-19,
employees was also front and centre in our the plant swiftly responded to the situation and
As part of Etex's COVID-19 contingency plan, we strategy. When face masks were difficult to donated masks and overalls to several hospitals.
Germany
are determined to help our direct neighbours. obtain, we prepared a safety kit containing four Our French teammates were touched when
For example, Villa Pizarreño, a community reusable masks for everyone in the plant and the hospital in Gisors responded by sending a
located next to our Maipú site and home to their families. nice picture a few days later with the message:
more than 100 families – including those of our “Thanks for taking care of us”.
workers –, was hit hard by the lockdowns, as was
the community next to our Santa Rosa facility.
Etex donated more than 150 food boxes to offer
Italy some relief and contribute to
food security.

51 Lithuania
 Our CEO engaged in a conversation with six teammates
to summarise key topics of 2020 for Etex.

We care about
lightweight
construction
At Etex, we have the ambition to be a key player in
the transformation of the construction industry. Through passion,
innovation and adherence to the highest standards, we want to provide
our partners and customers with the very best.
Watch the video
In 2020, we launched New Ways. With this new division specialised in
p Eduardo Martinez, lightweight and modular building technologies, we realise our ambition to bring
Business Development Manager for Latin America
beautiful, affordable and high-quality housing to people around the world by
offering building solutions rather than standalone products.

52
5 Governance report
Leadership aimed at value creation

Corporate governance
Executive Committee
54
55

53 Etex in 2020 About Etex Activity report Social and environmental report Governance report Financial report
Governance report Etex
Corporate governance Annual Report 2020

Corporate governance 3. Remuneration and Nomination

Committee  
4. Sustainability and Corporate Social
Responsibility Committee  
Sustainability and Corporate Social Responsibility
Committee met four times.
Having reached the maximum number of re-
elections, Jean-Louis de Cartier de Marchienne
has decided not to renew his mandate as
The Remuneration and Nomination Committee The Sustainability and Corporate Social Changes to the Board of Directors Director and Chairman of Etex. Consequently,
assists with selecting and proposing potential Responsibility Committee ensures that Etex at the first Board meeting following the General
Etex is committed to the principles of corporate governance and employs Board members. It also determines the effectively addresses the economic and societal The mandates of Paul Van Oyen, Pascal Emsens Shareholders’ meeting, it will be proposed
a sound approach to managing and steering our company in line with remuneration and benefits structure for challenges associated with its mission to offer (through ARGALI CAPITAL BV), Teodoro to appoint Johan Van Biesbroeck as the new
Executive Committee members. Its job is to construction solutions that contribute to a Scalmani, Christian Simonard, Caroline Thijssen Chairman of the Board of Etex. It will also be
the best interests of our internal and external stakeholders. The latest ensure incentives reflect market practices and are better world. It considers the impact of the (through CT IMPACT BV), Johan Van Biesbroeck proposed to the General Shareholders’ meeting
version of Etex’s corporate governance charter is available. optimally designed to support Etex’s strategic group’s businesses, operations and programmes (through JoVB BV) and Guillaume Voortman to appoint Thierry Vanlancker as new Director
Management structure and processes are designed to optimise our goals. In 2020, the Committee met eight times. from a social responsibility perspective, taking (through GUVO BV) will be proposed to be to the Board of Directors.
into consideration the legal framework and renewed at the General Shareholders’ meeting
performance while reducing the possible risks and impact on our activities. the interests of all stakeholders. In 2020, the on 26 May 2021.
Etex is managed by the Chief Executive Officer (CEO), the Executive
Committee and the Board of Directors.

Executive is carefully balanced and includes representatives

of Etex’s shareholders and management as well
Committee as independent Directors. The Board of Directors
Jean-Louis de Cartier de Paul Van Oyen, MucH B.V. represented Gustavo Oviedo, Teodoro Scalmani, Christian Simonard,
met eight times through the course of 2020. The
The Board of Directors entrusts the day-to- Board of Directors has the following four dedicated Marchienne, Chairman CEO by its permanent Director Director Director
day management of the group to the CEO advisory Committees to assist and advise the Board • Strategy Committee (Chairman) • Strategy Committee representative • Strategy Committee • Risk and Audit Committee • Remuneration and
and the Executive Committee. The members on specific matters: • Remuneration and Nomination • Sustainability and Muriel De Lathouwer • Remuneration and Nomination Committee
of the Executive Committee are the CEO, Committee (Chairman) Corporate Social • Remuneration and Nomination Committee • Sustainability and
the Chief Financial Officer (CFO), the Heads 1. Strategy Committee   • Sustainability and Corporate Responsibility Committee Nomination Committee Corporate Social
of the Building Performance and Exteriors Social Responsibility Committee Responsibility Committee
divisions, the Chief Strategy Officer (CSO), the The Strategy Committee evaluates the
Chief Manufacturing Officer (CMO), the Chief Executive Committee’s strategic proposals
Performance Officer (CPO) and the and makes recommendations to the Board
Chief Human Resources Officer (CHRO). of Directors. It also reviews the Executive
Virginie Lietaer, Chief Legal Officer (CLO), is Committee’s proposals for acquisitions,
the Secretary of the Executive Committee divestments and geographic diversification.
(since 3 February 2020). The Strategy Committee met four times
in 2020.
More information on the Executive Committee
can be found on p. 55. 2. Risk and Audit Committee   Bernadette Spinoy, Caroline Thijssen, Johan Van Biesbroeck, ViaBylity B.V. represented Guillaume Voortman, Pascal Emsens,
Director Director Director by its permanent Director Director
For an overview of business risks assessed by The Risk and Audit Committee reviews Etex’s • Sustainability and Corporate • Remuneration and • Risk and Audit Committee representative • Risk and Audit Committee • Strategy Committee
the Executive Committee of Etex, we refer to financial reporting processes and the statutory Social Responsibility Nomination Committee (Chairman) Hans Van Byle
p. 62 (“Risk profile” section) and to Note 16 of audit of the group’s annual accounts. Above all, it Committee (Chairwoman) • Strategy Committee
the Financial Report (p. 75-78). ensures the consistency and reliability of accounts
and all other financial information submitted to
the Board. Moreover, the Committee monitors
Board of Directors Etex’s risk and internal control management
systems. All its members have accounting and Virginie Lietaer, Louise Cail, Joerg Ertle,
Etex’s Board of Directors sets the overall group audit experience. In 2020, it met three times. Secretary Secretary Secretary
strategy, decides on major investments and
monitors all corporate activities. Its composition • Board of Directors • Remuneration and • Sustainability and
• Strategy Committee Nomination Committee Corporate Social
• Risk and Audit Committee Responsibility Committee

54
Governance report Etex
Executive Committee Annual Report 2020

Our management
Etex’s Executive Committee
members handle our
day-to-day business.
Their comprehensive
knowledge, diverse experience
and hands-on approach to
leadership ensure a strong
operational focus on our
values and strategic pillars.

Paul Van Oyen Neil Ash Louise Cail Christophe David Michael Fenlon Carla Sinanian Didier Staquet Mel de Vogue
Chief Executive Officer Head of Building Chief Human Resources Chief Manufacturing Head of Exteriors Chief Strategy Chief Performance Chief Financial
Performance Officer Officer Officer Officer Officer

CEO of Etex since January Previously Head of Region Louise Cail joined Etex in 2018 Christophe David joined Etex in Michael Fenlon joined Tegral, Carla Sinanian joined Etex Working for Etex since 2012, CFO of Etex since May 2015,
2015, Paul Van Oyen joined Northwest Europe for as Head of Human Resources November 2011 as Head of R&D the Irish business unit of Etex, in September 2017 as Chief Didier Staquet was Global Mel de Vogue has held
the company in 1990 as Building Performance, and Communication for and Innovation for Siniat. After in 1998, eventually becoming Strategy Officer. She has held Head of Shared Services leadership positions over the
Project Manager, moving into Neil Ash became the Head Building Performance. leading the French business Managing Director of Tegral Metal various strategic, leadership and then Global Head of last 20 years. Previously CFO
business development and of the division in January She became Chief Human and subsequently the Operations Forming. He moved to Belgium in and general management Purchasing. On 1 March and co-CEO at Tessenderlo
directorship roles over the 2020. He has over 25 years of Resources Officer of Etex on of Building Performance, he 2010 to drive sales and marketing roles at Philips, Medtronic, 2020, he became Etex’s Chemie in Belgium and group
following decades. experience in sales, marketing, 1 March 2020. She previously became a member of the of our fibre cement façade range NXP Semiconductors and Chief Performance Officer. CFO of Arjowiggins in France,
executive-level business held leadership HR positions in Executive Committee on and he joined the Executive AkzoNobel. As of May 2020, Previously, he held multiple he also worked for 12 years
development and strategy global industrial firms such as 1 September 2020. He began his Committee in March 2016 as Carla Sinanian has been executive and leadership for Suez Environnement in
within Etex, and prior to that Owens Corning and H.B. Fuller. career at French car manufacturer Head of the Façade division. appointed as a Board member roles in finance, strategy and multiple countries.
at Lafarge. Renault and held senior In 2019 Michael led the integration of Recticel. performance over a 15-year
management positions in several of our fibre cement roofing career with Deutsche Post DHL.
industrial firms, including Bosch and façade activities into one
and Lafarge Roofing / Monier. division, Exteriors.

55
 Our CEO engaged in a conversation with six teammates
to summarise key topics of 2020 for Etex.

We care
about the world
As a company with a global role and a long-term vision,
we care about our teammates, our customers and the planet.
p Eva Angeli,
Corporate Social Responsibility Specialist In 2020, we created the Green Team, a group of 30 internal experts
and motivated employees who focussed on sustainability. Watch the video

Thanks to their efforts in collecting and reviewing our global environmental

data to ensure that it is aligned with Global Reporting Initiative standards,
Etex now has group-wide CSR reporting capabilities.

56
6 Financial report
Results fuelling focused growth

Consolidated financial statements

Statutory auditor’s report
58
88
Non-consolidated accounts of Etex NV 91
Glossary 92

57 Etex in 2020 About Etex Activity report Social and environmental report Governance report Financial report
Financial report Etex
Consolidated financial statements Annual Report 2020

Consolidated
financial
Consolidated
statements
financial statements
Consolidated income statement Consolidated statement of comprehensive income
in thousands of EUR No t e s 2 01 9 2 02 0 in thousands of EUR 2 01 9 2 02 0
R e ve n u e (1) 2 , 94 0 , 0 8 3 2 , 615, 8 92 P r o f it f o r t he y e a r 18 0 ,7 3 5 2 0 1,2 59
Cost of sales (2) -2,044,201 -1,767,505
Remeasurements in employee benefit obligations -81,527 -55,058
G r o s s p r o f it 8 95, 8 8 2 8 4 8 ,38 7
Income tax effect 17,220 13,912
Distribution expenses (2) -400,231 -346,947
N e t o t h e r c o m p r e h e n s i ve i n c o m e n o t t o b e r e c l a s s i f i e d t o i n c o m e s t a t e m e n t i n s u b s e qu e n t p e r i o d s - 64 , 3 0 8 - 4 1,14 7
Administrative and general expenses (2) -185,371 -171,256
Other operating charges (3) -22,819 -23,687 Changes in cash flow hedge reserves 4,521 10,410
Other operating income (3) 4,851 4,479 Income tax effect -1,617 -2,299
O p e r a t i ng i n co m e b e f o r e n o n r e c ur r i ng i t e m s 2 92 , 3 12 3 10 , 97 6 Exchange differences on translation of foreign operations -1,341 -83,672
Gain / (losses) on disposal of assets and businesses (4) 137,304 38,389 N e t o t h e r c o m p r e h e n s i ve i n c o m e t o b e r e c l a s s i f i e d t o i n c o m e s t a t e m e n t i n s u b s e q u e n t p e r i o d s 1, 5 63 - 7 5, 562
Other non recurring items (4) -161,709 -77,015
O t h e r c o m p r e h e n s i ve i n c o m e , n e t o f t a x - 62 , 7 4 4 - 116, 7 0 8
O p e r a t i ng i n co m e ( EB I T ) 2 67 , 90 7 2 7 2 ,34 9
Interest income (5) 6,402 3,026
T o t a l c o m p r e he ns i v e i n c o m e f o r t he p e r i o d , ne t o f t a x 117 , 991 8 4 ,550
Interest expenses (5) -32,464 -24,090
Other financial income (5) 6,327 10,449 Attributable to shareholders of Etex 115,869 80,314

Other financial expense (5) -10,822 -14,566 Attributable to non-controlling interests 2,121 4,237
Share of profit in equity accounted investees (12) 1,118 -2,304
P r o f it b e f o r e in co m e t a x 2 3 8 , 4 68 2 4 4 , 8 63
Income tax expense (6) -57,733 -43,604
P r o f i t f o r t he y e a r 18 0 ,7 3 5 2 0 1,2 59
Attributable to shareholders of Etex 175,981 194,134
Attributable to non-controlling interests 4,754 7,125

58
Financial report Etex
Consolidated financial statements Annual Report 2020

Consolidated statement of financial position Consolidated statement of cash flows

in thousands of EUR No t e s 2 01 9 2 02 0 In thousands of EUR No t e s 2 01 9 2 02 0
N o n- cu r r e nt a s s e t s 2 , 0 93 , 57 8 1,8 7 3 ,8 2 3 Operating income (EBIT) 267,907 272,349
Property, plant and equipment (7) 1,631,437 1,392,373 Depreciation, amortization and impairment losses - owned (26) 260,568 168,799
Property, plant and equipment - owned (7) 1,513,450 1,288,177 Depreciation, amortization and impairment losses - leased assets (26) 28,090 27,201

Property, plant and equipment - leased (7) 117,986 104,197 Losses (gains) on sale of intangible assets and property, plant and equipment (26) -3,329 -8,799

Goodwill (8) 122,411 123,447 Losses (gains) on sale of businesses -133,057 -28,865
Income tax paid (26) -65,348 -61,562
Other intangible assets (9) 200,392 196,784
Changes in working capital, provisions and employee benefits (26) -24,343 64,233
Investment properties (10) 14,148 13,369
Changes in other non currents assets/liabilities 3,119 7,089
Assets held for sale (11) 3,215 5,461
C a s h f l o w f r o m o p e r a t i ng a ct i v i t i e s 3 3 3 , 60 7 4 4 0,4 4 5
Investments in equity accounted investees (12) 9,526 18,024
Proceeds from sale of intangible assets and property, plant and equipment (26) 7,691 19,778
Other non-current assets (13) 3,649 3,469
Acquisition of business - -17,946
Deferred tax assets (24) 98,033 114,218
Disposal of business 276,546 108,623
Employee benefits assets (21) 10,768 6,677
Capital expenditure - owned (26) -134,893 -90,639
C ur r e nt a s s e t s 914 , 0 14 1, 0 2 4 , 68 2
Other investing activities (a) -1,025 -15,401
Inventories (15) 403,419 333,094
C a s h f l o w f r o m i n ve s t i n g a c t i v i t i e s 14 8 ,3 19 4 ,4 15
Trade and other receivables (14) 310,494 277,267
Capital increase / (decrease) 16 1,169
Other current assets (14) 7,070 23,984
Proceeds (repayment) of borrowings -332,765 -108,242
Cash and cash equivalents (17) 193,031 390,337
Interest and dividend received (26) 7,262 3,759
T O T AL AS S E T S 3 , 0 0 7 , 592 2 , 8 98 , 50 5
Dividend paid (26) -47,675 -53,949
Interest paid -22,418 -17,687
T o t a l e qu i t y (18) 1, 159, 4 0 3 1,2 0 0 ,53 4
C a s h f l o w f r o m f i n a n ci ng a ct i v i t i e s - 3 95, 58 0 - 17 4 , 95 0
Issued share capital 2,533 2,533
Ne t i n c r e a s e ( d e c r e a s e ) i n c a s h a nd c a s h e q ui v a l e n t s 8 6, 3 4 6 2 69, 91 0
Share premium 743 743
Reserves and retained earnings 1,119,234 1,167,101
Cash and cash equivalents at the beginning of the year 127,183 192,510
Attributable to the equity shareholders of Etex 1,122,510 1,170,377
Translation differences 7,569 -21,911
Non-controlling interests 36,893 30,157
Changes in the scope of consolidation -28,588 -50,499
N o n- cu r r e nt l i a b i l i t i e s 916, 697 7 94 , 0 7 1
Net increase (decrease) in cash and cash equivalents 86,346 269,910
Provisions (19) 126,021 131,446
N e t c a s h a n d c a s h e q u i va l e n t s a t t h e e n d o f t h e y e a r 192 , 5 10 3 90 , 0 10
Employee benefits liabilities (21) (22) 392,303 385,976
Cash and cash equivalents 193,031 390,337
Loans and borrowings (23) 301,871 199,017
of which leasing (23) 96,011 86,402 Bank overdrafts -521 -327

Deferred tax liabilities (24) 76,097 66,561

Other non-current liabilities (25) 20,405 11,071
(a) ‘Other investing activities’ mainly include the effect of capital increases and acquired activities in ‘investments in equity accounted
C ur r e nt li a b il it ie s 93 1, 4 92 90 3 , 90 0
entities’ (note 12)
Provisions (19) 58,363 40,561
Current portion of loans and borrowings (23) 229,484 230,123
of which leasing (23) 24,056 20,925
Trade and other liabilities (25) 643,645 633,216
T O T A L E Q U I T Y A ND L I A B I L I T I E S 3 , 0 0 7 , 592 2 , 8 98 , 50 5

59
Financial report Etex
Consolidated financial statements Annual Report 2020

Consolidated statement of changes in equity

Accounting
Accounting
policies policies
A t t r i b ut a b l e t o t he e q ui t y ho l d e r s o f E t e x ( No t e 1 8 )

I s s ue d Po s t O th e r
em p l o ym e n t
s har e Cu m u l a t i v e r e s er v e s No n -
T r ea s u r y b en ef i t s
in thousands of EUR ca p i ta l a n d
s h a r es r es er v es a n d
t r a n s la t io n and co n t r o l l i n g To ta l E q u i ty
s har e a d j u s t m en t s r e ta i n e d i n t er es t s
f in a n c ia l
pr e mi ums i n s t r u m en t s e a r ni ngs

A t D e ce m b e r 3 1 , 2 0 1 8 3,2 7 6 - 19, 98 8 - 2 3 0 ,12 7 - 2 93 , 8 94 1,58 5,7 0 2 3 6, 7 7 2 1,0 8 1,7 4 0 Etex N.V. (the “Company”) is a company domiciled in Belgium. The consolidated financial statements comprise the Company and its
Total comprehensive subsidiaries, interests in jointly controlled entities and equity accounted entities (together referred to as “the Group”) as at 31 December each
- - -61,234 1,120 175,983 2,121 117,991
income
year.
Capital increase /
- - - - - 16 16
(decrease) The financial statements have been authorised for issue by the Board of Directors on 01 April 2021.
Dividend - - - - -45,335 -2,039 -47,375
Other equity
- - - - 7,008 23 7,031
movements St ate me n t o f c o mp l i an c e
Treasury shares - - - - - - -
A t D e ce m b e r 3 1 , 2 0 1 9 3,2 7 6 - 19, 98 8 - 2 91, 3 61 - 2 92 , 7 7 4 1,7 2 3 ,3 58 3 6, 8 93 1, 15 9, 4 0 3 The consolidated financial statements of Etex for the year ended 31 December 2020 have been prepared in accordance with International
Total comprehensive Financial Reporting Standards (IFRS) and its interpretations as issued by the International Accounting Standards Board (IASB) as adopted by
- - -33,036 -80,786 194,136 4,237 84,550
income the European Union (EU).
Capital increase /
- - - - - 1,169 1,169
(decrease) The Group applied the same IFRSs as those adopted in the previous years, except for the new IFRSs and interpretations the entity adopted as of
Dividend - - - - -45,335 -11,576 -56,911 1st January 2020.
Other equity
- - 14,462 - -1,573 -565 12,324
movements The nature each of the following new standards, amendments and/or interpretations are described below:
Treasury shares - - - - - - -
A t D e ce m b e r 3 1 , 2 0 2 0 3,2 7 6 - 19, 98 8 - 3 0 9, 93 5 - 3 7 3 , 560 1,8 7 0 ,58 5 3 0 ,157 1,2 0 0 ,53 4 - A m e nd m e n t s t o r e f e r e n c e s t o t h e c o n c e p t u a l f r a m e w o r k i n I F R S s t a n d a r d s ( e f f e c t i v e 1 J a n ua r y 2 0 2 0 )
The revised Conceptual Framework includes a new chapter on measurement; guidance on reporting financial performance; improved
definitions and guidance—in particular the definition of a liability; and clarifications in important areas, such as the roles of stewardship,
prudence and measurement uncertainty in financial reporting.

- A m e nd m e n t s t o I A S 1 a nd I A S 8 ( e f f e c t i v e 1 J a n u a r y 2 0 2 0 )
The amendments clarify the definition of material and make IFRSs more consistent. The amendment clarifies that the reference to obscuring
information addresses situations in which the effect is similar to omitting or misstating that information. It also states that an entity assesses
materiality in the context of the financial statements as a whole. The amendment also clarifies the meaning of ‘primary users of general
purpose financial statements’ to whom those financial statements are directed, by defining them as ‘existing and potential investors, lenders
and other creditors’ that must rely on general purpose financial statements for much of the financial information they need. The amendments
are not expected to have a significant impact on the preparation of financial statement.

- A m e nd m e n t s t o I F R S 9 , I A S 3 9 a nd I F RS 7 ( e f f e c t i v e 1 J a n u a r y 2 0 2 0 )
These amendments provide certain reliefs in connection with the interest rate benchmark reform. The reliefs relate to hedge accounting and
have the effect that IBOR reform should not generally cause hedge accounting to terminate. However, any hedge ineffectiveness should
continue to be recorded in the income statement. Given the pervasive nature of hedges involving IBOR-based contracts, the reliefs will affect
companies in all industries.

- A m e nd m e n t s t o I F R S 3 B us i ne s s c o m b i na t i o ns ( e f f e c t i v e 1 J a n u a r y 2 0 2 0 )
The change revises the definition of a business. The new guidance provides a framework to evaluate when an input and a substantive process
are present (including for early stage companies that have not generated outputs). To be a business without outputs, there will now need to
be an organised workforce. The changes to the definition of a business will likely result in more acquisitions being accounted for as asset
acquisitions across all industries, particularly real estate, pharmaceutical, and oil and gas. Application of the changes would also affect the
accounting for disposal transactions.

The amendments and/or interpretations do not have any significant effect on the financial statements.

60
Financial report Etex
Consolidated financial statements Annual Report 2020

F i nan ci al i ns t r um e nt s
B asi s o f p r e p ar ati o n
To measure the fair value of financial assets that cannot be derived from active markets, management uses a valuation technique based
A - Functional and presentation currency on discounted future expected cash flows. The inputs of this model require determining a certain number of assumptions, including
discount rate, liquidity risk and volatility, subject to uncertainty. Changes in these assumptions could have an impact on the
The consolidated financial statements are presented in Euro, which is the Company’s functional and presentation currency. All values are measurement of the fair value. Further details are given in Note 16.
rounded to the nearest thousand except when otherwise indicated.
Bus i ne s s Co m b i nat i o ns
B - Basis of measurement The acquisition method is applied in business combinations. The consideration is measured at fair value on the transaction date, which is
The consolidated financial statements are prepared on the historical cost basis except that the following assets are stated at their fair value: also the date when fair value of identifiable assets, liabilities and contingent liabilities acquired in the transaction are measured. If the
derivative financial instruments. Also, the liabilities for cash-settled share based payment arrangements are measured at fair value. The accounting of a business combination is incomplete at the end of the reporting period, in which the transaction occurred, the Group will
consolidated financial statements have been prepared using the accrual basis for accounting, except for cash flow information. report preliminary values for the assets and liabilities. Preliminary values are adjusted throughout the measuring period of maximum one
year in order to reflect new information obtained about circumstances that existed as of the acquisition date, that if known, would have
C - Use of judgement, estimates and assumptions affected the valuation on that date. Correspondingly, new assets and liabilities can be recognised. The transaction date is when risk and
control has been transferred and normally coincides with the closing date.
The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that
affect the reported amounts of revenue, expenses, assets, liabilities and related disclosures at the date of the financial statements. These Non-controlling interests are recognised either at fair value or the proportionate share of the identifiable net assets and liabilities. The
judgements, estimates and associated assumptions are based on management’s best knowledge at reporting date of current events and assessment is done for each transaction.
actions that the Group may undertake in the future. However, actual results could differ from those estimates, and could require adjustments Any differences between cost and fair value for acquired assets, liabilities and contingent liabilities are recognised as goodwill or recognised
to the carrying amount of the asset or liability affected in the future. The estimates and underlying assumptions are reviewed on an ongoing in the income statement when the cost is lower. No provisions are recognised for deferred tax on goodwill.
basis.
Transaction costs are recognised in the income statement when incurred.
The significant estimates made by management concerning the future and other key sources of estimation uncertainty at the balance sheet
date that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year If business combinations are achieved in stages, the existing ownership interests is recognised at fair value at the point in time when control is
are discussed below. transferred to the Group. Such a change in the carrying value of the investment is recognised in the income statement.

I m p ai r m e nt o f no n- f i nan ci al as s e t s The principles applied to the recognition of acquisition of associated companies and joint ventures are in general the same as those applied to
the acquisition of subsidiaries.
The recoverable amount of the cash-generating units tested for impairment is the higher of its fair value less costs to sell and its value in use.
Both calculations are based on a discounted cash-flow model. The cash flows are derived from the internal forecasts for the next three to ten H y p e r i nf l at i o n
years. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as the expected future In May 2018, the Argentinian peso underwent a severe devaluation resulting in the three-year cumulative inflation of Argentina to exceed
cash inflows and the growth rate used for extrapolation purposes. The key assumptions used to determine the recoverable amount for the 100% in 2018, thereby triggering the requirement to transition to hyperinflation accounting as prescribed by IAS 29 Financial Reporting in
different cash-generating units, including a sensitivity analysis, are further explained in Note 8. Hyperinflationary Economies as of 1 January 2018. The main principle in IAS 29 is that the financial statements of an entity that reports in the
P r ov i s i ons currency of a hyperinflationary economy must be stated in terms of the measuring unit current at the end of the reporting period. Therefore,
the non-monetary assets and liabilities stated at historical cost, the equity and the income statement of subsidiaries operating in
The assumptions that have significant influence on the amount of the provisions are the estimated costs, the timing of the cash outflows and hyperinflationary economies are restated for changes in the general purchasing power of the local currency applying a general price index.
the discount rate. These assumptions are determined based on the most appropriate available information at reporting date. Further details Monetary items that are already stated at the measuring unit at the end of the reporting period are not restated. These re-measured accounts
about the assumptions used are given in Note 19. are used for conversion into Euro at the period closing exchange rate. Consequently, the company has applied hyperinflation accounting for
E m p l o y ee b e n e fi t s its Argentinian subsidiaries applying the IAS 29 rules as follows:
- Hyperinflation accounting was applied as of 1 January 2018;
The measurement of the employee benefits is based on actuarial assumptions. Management believes that the assumptions about discount - Non-monetary assets and liabilities stated at historical cost (e.g. property plant and equipment, intangible assets, goodwill, etc.) and
rates, expected rates of return on assets, future salary increases, mortality rates and future pension increases used for these actuarial equity of Argentina were restated using an inflation index. The hyperinflation impacts resulting from changes in the general
valuations are appropriate and justified. They are reviewed at each balance-sheet date. However, given the long-term nature of these purchasing power until 31 December 2017 were reported in retained earnings and the impacts of changes in the general purchasing
benefits, any change in certain of these assumptions could have a significant impact on the measurement of the related obligations. Further power from 1 January 2018 are reported through the income statement on a dedicated account for hyperinflation monetary
details about assumptions used are given in Note 21. adjustments in the finance line (see also Note 5 Finance income and expense);
R e c o g n i t i o n o f d e f e r r e d t a x a s s e ts o n t a x l o s s e s c a r r i e d f o r w a r d - The income statement is adjusted at the end of each reporting period using the change in the general price index and is converted
at the closing exchange rate of each period (rather than the year to date average rate for non-hyperinflationary economies),
Deferred tax assets are recognised for all unused tax losses to the extent that it is probable that taxable profit will be available against which thereby restating the year to date income statement account both for inflation index and currency conversion;
the losses can be utilised. Significant management judgment is required to determine the amount of the deferred tax assets that can be
recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies. The potential
D - Basis of consolidation
utilisation of tax losses carried forward is based on budgets and forecasts existing at reporting date. Actual results could differ from these
budgets with an impact on the utilisation of tax losses carried forward. S ub s i d i ar i e s

C a s h- s e t t l e d s ha r e - b a s e d p a y me nt t r a ns a c t i o n Subsidiaries are entities that are controlled, directly or indirectly, by the Company.

The Group measures the cost of cash-settled transactions with employees by reference to the fair value of the equity instruments at each Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to
reporting date. Estimating fair value for share-based payment transactions requires determining the most appropriate valuation model, which affect those returns through its power over the investee. Specifically, the Group controls an investee if, and only if, the Group has:
is dependent on the terms and conditions of the grant. This estimate also requires determining the most appropriate inputs to the valuation
- Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee)
model including the expected life of the share option, volatility and dividend yield and making assumptions about them. The assumptions and
model used for estimating fair value for share-based payment transactions are disclosed in Note 22.

61
Financial report Etex
Consolidated financial statements P62 Annual Report 2020

- Exposure, or rights, to variable returns from its involvement with the investee G - Exchange rates
- The ability to use its power over the investee to affect its returns The following exchange rates against € have been used in preparing the financial statements:
Generally, there is a presumption that a majority of voting rights result in control. To support this presumption and when the Group has less 2 01 9 2 02 0
than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it
A ve r a g e End o f p e r i o d A ve r a g e End o f p e r i o d
has power over an investee, including:
Argentinean peso ARS 67.0400 67.0400 103.5297 103.5297
- The contractual arrangement with the other vote holders of the investee
Chilean peso (000) CLP 0.7875 0.8365 0.9026 0.8724
- Rights arising from other contractual arrangements Chinese yuan CNY 7.7367 7.8155 7.8740 8.0250

- The Group’s voting rights and potential voting rights Colombian peso (000) COP 3.6748 3.6815 4.2140 4.2120
Danish krone DKK 7.4662 7.4715 7.4541 7.4409
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the
three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Pound sterling GBP 0.8778 0.8508 0.8899 0.8990
Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are Hungarian forint HUF 325.3006 330.5300 351.2878 363.8900
included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the Indonesian rupiah (000) IDR 15.8396 15.5956 16.6321 17.2408
subsidiary. Nigerian naira NGN 343.3113 404.8980 436.1916 503.4178
Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the parent of the Group and Peruvian nuevo sol PEN 3.7362 3.7238 4.0016 4.4470
to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. Polish zloty PLN 4.2961 4.2568 4.4418 4.5597
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group’s US dollar USD 1.1197 1.1234 1.1432 1.2271
accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members South African rand ZAR 16.1746 15.7773 18.7255 18.0219
of the Group are eliminated in full on consolidation.

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. Ri sk p r o fi l e
If the Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, non-controlling interest and The Group is exposed to the normal range of general business risks. The Group takes measures to cover these risks through insurance and
other components of equity while any resultant gain or loss is recognised in profit or loss. Any investment retained is recognised at fair value. internal policies. Fully operational since 2011, the internal audit department reviews our companies in a three-year cycle.
I nv e s t m e nt s i n as s o ci at e s and j o i nt v e nt ur e s Typical risks include third-party and product liability, property damage, business interruption, employer’s liability, and, in certain instances,
A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of credit risk.
the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the The Group is active around the world. As such, the group is exposed to the impact of currency fluctuations on revenues, costs, assets, and
relevant activities require unanimous consent of the parties sharing control. Equity accounted entities are companies over which the Group liabilities arising outside the Eurozone. In 2020, the Group continued to follow our well-thought-out policies for addressing these risks.
generally holds between 20 per cent and 50 per cent of the voting rights. The Group’s interest in joint ventures or equity accounted entities is
consolidated using the equity method. Demand for building materials is mainly driven by growing populations and increasing prosperity. Another important factor is changing
macroeconomic parameters, including GDP growth, public spending, interest rates and government policies.
Equity accounting starts when joint control or significant influence is established until the date it ceases. When the Group’s share of losses
exceeds its interest in an equity accounted investee, the carrying amount is reduced to nil and recognition of any further losses is The Group achieves risk diversification through our geographic spread and diversified portfolio. An additional element contributing to this
discontinued, except to the extent that the Group has an obligation or has made payments on behalf of the companies. The financial diversification is the Group’s broad involvement in residential, commercial, and industrial building, as well as renovation and new housing
statements of these companies are prepared for the same reporting year as the Company, using consistent accounting policies. Adjustments developments.
are made to bring into line any dissimilar accounting policies that may exist. Unrealised gains arising from transactions with joint ventures and The Group uses a variety of raw materials to manufacture its products. Cement, for instance is a key ingredient. It is usually broadly available
equity accounted entities are eliminated to the extent of the Group’s interest. Unrealised losses are eliminated the same way as unrealised from several suppliers. Furthermore, the fibres which are used to reinforce some of our products are sourced from a limited number of
gain but only to the extent that there is no evidence of impairment. The investments accounted for using the equity method include the Japanese and Chinese companies. The Group has built long-term relationships and contracts with each of these businesses. For natural
carrying amount of any related goodwill. resources such as clay and gypsum, we either own raw material supplies or we secure them by means of long-term contracts.

E - Foreign operations Our energy costs are significant. This is true for the production of specific products as much as for the manufacturing of the raw materials we
receive from our suppliers. That is why we constantly review measures to reduce our energy consumption.
The individual financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in
which the entity operates (“the functional currency”). Income statements of foreign entities are translated into the Group’s reporting currency In the past, some Group companies regrettably used asbestos as a raw material. These businesses are exposed to claims from people having
at average exchange rates for the year. Assets and liabilities, including goodwill and fair value adjustments arising on consolidation are developed asbestos-related diseases. The Group is committed to ensuring fair compensation for those suffering from an illness caused by our
translated at exchange rates ruling on 31 December. The exchange differences arising on the translation are taken directly to a separate former use of asbestos. The compensation costs are covered by state social security schemes, insurance companies and our own resources.
component of equity. On disposal of a non euro entity, the cumulative amount recognised in equity relating to that particular foreign Given the long latency of some of these diseases, we will remain exposed to this risk in the medium term.
operation is released to the income statement. For the Group’s risks from business activities and the use of financial instruments, we refer to section ‘R- Risk management.

F - Transactions in foreign currencies

Foreign currency transactions are accounted for at the exchange rates prevailing at the date of the transactions. Gains and losses resulting
from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at
exchange rates on 31 December are recognised in the income statement. Non-monetary assets and liabilities in a foreign currency are
translated using the exchange rate at the date of the transaction.

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Annual Report 2020

Mineral reserves, which are presented as “lands” of property, plant and equipment, are valued at cost and are depreciated based on the
Si g n i fi c an t ac c o u n ti n g p o l i c i e s physical unit-of-production method over the estimated tons of raw materials to be extracted from the reserves.
The accounting policies have been applied consistently to all periods presented in the consolidated financial statements, and have been The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end.
applied consistently by all entities. Certain comparatives have been reclassified to conform to current year’s presentation.
B - Intangible assets
A - Property, plant and equipment
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business
Property, plant and equipment are measured at acquisition or construction costs less accumulated depreciation and impairment loss (see combination is the fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less accumulated
Note E). The cost of property, plant and equipment acquired in a business combination is the fair value as at the date of acquisition. After amortisation and accumulated impairment losses (see Note E).
recognition, the items of property, plant and equipment are carried at cost and not revaluated.
Internally generated intangible assets are capitalised if the product or process is technically and commercially feasible and the Group has
Costs include expenditures that are directly attributable to the acquisition of the asset; e.g. costs incurred to bring the asset to its working sufficient resources to complete development. Expenditure capitalised include the costs of materials, direct labour and an appropriate portion
condition and location for its intended use. It includes the estimated costs of dismantling and removing the assets and restoring the sites, to of overheads.
the extent that the liability is also recognised as a provision. The costs of self-constructed assets include the cost of material, direct labour and
an appropriate proportion of production overheads. Borrowing costs incurred and directly attributable to the acquisition or construction of an
asset that takes a substantial period of time to get ready for its intended use, are capitalised as incurred. When all the activities necessary to The useful lives of intangible assets are assessed to be either finite or indefinite on the following bases:
prepare this asset are completed, borrowing costs cease to be capitalised.
– Patents, trademarks and similar rights: Indefinite
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or
disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the – Software ERP: 10 years
carrying amount of the asset) is included in the operating income in the year the asset is derecognised. – Other software: 5 years
S ub s e q ue nt e x p e nd i t ur e s – Development costs: 15 years
The Group recognises in the carrying amount of an item of property, plant and equipment the cost of replacing part of such an item when that – Customer lists: 3 - 15 years
cost is incurred if it is probable that the future economic benefits embodied with the item will flow to the Group and the costs of the item can
be measured reliably. The carrying amount of the parts replaced is derecognised. All other costs are recognised in the income statement as an – Brands: 15 years
expense as incurred. – Technology and design: 15 years
A s s e t s h e l d u n d e r le a s e ( r ig h t - o f - u s e a s se t s ) – Rights to exploit and extract mineral resources: usage
The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right- Intangible assets with finite lives are amortised over the useful economic life using the straight-line method. The estimated useful lives are
of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease reviewed at least at each reporting date. Changes in the expected useful life or the expected pattern of consumption of future economic
liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments benefits embodied in the asset are accounted for by changing the amortisation period or method, as appropriate, and treated as changes in
made at or before the commencement date less any lease incentives received. accounting estimates by changing the amortisation charge for the current and future periods. The amortisation expense is recognised in the
Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognised right-of-use assets income statement in the expense category consistent with the function of the asset.
are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term. Right-of-use assets are subject to
impairment.
C - Goodwill
The Group applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12 months or Goodwill represents the excess of the cost of a business combination over the Group’s interest in the net fair value of the identifiable assets,
less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to liabilities and contingent liabilities of a subsidiary, equity accounted entities or joint venture at the date of acquisition. Goodwill on
leases that are considered of low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a acquisitions of equity accounted investee or joint ventures is included in the carrying amount of the investments. Goodwill on the acquisition
straight-line basis over the lease term. of subsidiaries is presented separately, and is stated at cost less accumulated impairment losses (see Note E).

The corresponding lease liabilities are included in non-current and current financial liabilities. If the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities exceeds the cost of the business
combination, this excess (frequently referred to as negative goodwill or badwill) is immediately recognised in the profit and loss statement,
De p r e ci at i on after a reassessment of the fair values.
Depreciation starts when an asset is available for use and is charged to the income statement on a straight-line basis over the estimated Additional investments in subsidiaries in which the Company already has control are accounted for as equity transactions; any premium or
useful life. The depreciable amount of each part of property, plant and equipment with a cost that is significant in relation to the total cost of discount on subsequent purchases of shares from minority interest are recognised directly in the Company’s shareholders equity.
the asset is depreciated separately over its useful life on a straight-line basis. Costs of major inspections are depreciated separately over the
period until the next major inspection. Temporarily idle assets continue to be depreciated. D - Investment property
Estimated useful lives of the major components of property, plant and equipment are as follows: Investment property is property held to earn rental income or for capital appreciation or for both and is valued at acquisition cost less
accumulated depreciation and impairment losses. The carrying amount includes the cost of replacing part of an existing investment property
– Lands (excluding lands with mineral reserves): nil
at the time that cost is incurred if the recognition criteria are met. Investment property is depreciated similar to owned property (see Note A).
– Lands with mineral reserves: exploitation lifetime
Investment properties are derecognised when either they have been disposed of or when the investment property is permanently withdrawn
– Lands improvements and buildings: 10 - 40 years from use and no future economic benefit is expected from its disposal. Any gains or losses on the retirement or disposal of an investment
property are recognised in the income statement in the year of retirement or disposal.
– Plant, machinery and equipment: 5 - 30 years
Transfers are made to investment property when there is a change in use, evidenced by ending of owner-occupation, commencement of an
– Furniture and vehicles: 3 - 10 years
operating lease to another party or ending of construction or development. Transfers are made from investment property when there is a
change in use, evidenced by commencement of owner-occupation.

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Government grants that are expected to be released within twelve months after the reporting date are classified as other current liabilities.
E - Impairment of assets The other government grants are classified as non-current liabilities.
At each reporting date, the Group assesses whether there is any indication that an asset, other than inventories and deferred taxes, may be
impaired. If any such indication exists, the recoverable amount of the asset (being the higher of its fair value less costs to sell and its value in
H - Inventories
use) is estimated. In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount Inventories are measured at the lower of cost and net realisable value. The cost of inventories is assigned by using the weighted average cost
rate that reflects the current market assessments of the time value of money and the risks specific to the asset. Where it is not possible to method. The cost of inventories comprises all costs of purchases and other costs incurred in bringing the inventories to their present location
estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the smallest cash-generating unit to and condition. For manufactured inventories, cost means full cost including all direct and indirect production costs required to bring the
which the asset belongs. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the inventory items to the stage of completion at the reporting date. Allocation of indirect production costs is based on normal operating
carrying amount of the asset or cash-generating unit is reduced to its recoverable amount. Impairment losses are recognised in the income capacity. Borrowing costs are expensed as incurred. The costs of inventories may also include transfers from equity of any gain or loss on
statement. Where an impairment loss subsequently reverses, the carrying amount of the asset or cash-generating unit is increased to the qualifying cash flow hedges on foreign currency purchases of inventory.
revised estimate of its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined had
no impairment loss been recognised for that asset or cash-generating unit in prior periods. A reversal of an impairment loss is recognised Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated
immediately in the income statement apart from goodwill for which no such reversal is allowed. costs necessary to make the sale.

I n t a n g i b l e a s s e t s with indefinite useful lives and intangible assets that are not yet available for use are tested for impairment annually either I - Trade and other receivables
individually or at the cash-generating unit level. The useful life of an intangible asset with an indefinite life is reviewed annually to determine
whether the indefinite life assessment continues to be adequate. If not, the change in the useful life assessment from indefinite to finite is Trade and other receivables are initially recognised at fair value which generally corresponds with the nominal value. Trade and other
made on a prospective basis. receivables are subsequently carried at amortised cost using the effective interest rate method. An impairment allowance is recognised for
any uncollectible amounts when there is objective evidence that the Group will not be able to collect the outstanding amounts. The Group
G o o d w i l l is tested annually for impairment, or more frequently if events or changes in circumstances indicate that the carrying value may be applies the simplified approach to measuring the expected credit losses which uses a lifetime expected loss allowance for all trade receivables
impaired. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each based on historical losses.
of the Group’s cash-generating units, or groups of cash-generating units, that are expected to benefit from the synergies of the combination.
J - Cash and cash equivalents
Impairment is determined by assessing the recoverable amount of the cash-generating unit (or group of cash-generating units) to which the
goodwill relates. Where the recoverable amount of the cash-generating unit (or group of cash-generating units) is less than the carrying Cash and cash equivalents are readily convertible into known amounts of cash. Cash and cash equivalents comprise cash at banks and on
amount, an impairment loss is recognised. hand and other short-term highly liquid investments with original maturities of three months or less. Bank overdrafts are not included in cash
and cash equivalents but classified as current financial liabilities. For the purpose of the consolidated statement of cash flows, cash and cash
Where goodwill forms part of a cash-generating unit (or group of cash-generating units) and part of the operation within that unit is disposed
equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts. Cash and cash equivalents are carried
of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or
in the statement of financial position at amortised cost.
loss on disposal of the operation. Goodwill disposed of in this circumstance is measured based on the relative values of the operation
disposed of and the portion of the cash-generating unit retained.
K - Share capital
F i n a n c i a l a s s e t s : When a decline in the fair value of a financial asset valued at fair value over OCI (FVOCI) has been recognised directly in
O r d i nar y s har e s
comprehensive income and there is objective evidence that the asset is impaired, the cumulative loss that has been recognised directly in
comprehensive income is recognised in the income statement even though the financial asset has not been derecognised. The amount of the Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares or share options are recognised
cumulative loss that is recognised in the income statement is the difference between the acquisition cost and the current fair value, less any as a deduction of equity, net of tax effects.
impairment loss on that financial asset previously recognised in the income statement. The reversal of an impairment loss in respect of an
T r e as ur y s har e s
investment in an equity instrument classified as financial asset FVOCI, following an event occurring after the recognition of the impairment
loss, is performed in comprehensive income. In the case of equity investments classified as financial asset FVOCI, objective evidence would Own equity instruments (treasury shares) are deducted from equity. No gain or loss is recognised in profit or loss on the purchase, sale, issue
include a significant or prolonged decline in fair value of the investment below its cost. or cancellation of the Group’s own equity instruments.

F - Investments in debt and equity securities D i v i d e nd s

Dividends are recognised as liabilities in the period in which they are declared.
All purchases and sales of investments are recognised on trade date, which is the date that the Group commits to purchase or sell the asset.

Investments in equity securities are undertakings in which the Group does not have significant influence or control. These investments are L - Provisions
designated as fair value through OCI financial assets, as they are not held for trading purposes. At initial recognition they are measured at fair
A provision is recognised when the Group has a legal or constructive obligation arising from past events for which it is probable the
value unless the fair value cannot be measured reliably in which case they are measured at cost. The fair value is determined by reference to
settlement will require an outflow of resources embodying economic benefits and a reliable estimate can be made on the amount of the
their quoted bid price at reporting date. Subsequent changes in fair value, except those related to impairment losses which are recognised in
obligation. Where the effect of the time value of money is material, the amount of the provision is the present value of the expenditure
the income statement, are recognised directly in comprehensive income. On disposal of an investment, the cumulative gain or loss previously
expected to be required to settle the obligation. The result of the yearly discounting of the provision, if any, is accounted for as financial
recognised in comprehensive income is recognised in the income statement.
result.
G - Government grants War r a nt y p r o v i s i o ns
Government grants are recognised where there is reasonable assurance that the grant will be received and all attaching conditions will be The Group recognises a provision to cover the costs arising from contractual obligation or established practice of repairing or replacing faulty or
complied with. When the grant relates to an asset, the grant value is recognised as a deferred income and is released to the income statement defective products sold on or before the reporting date. The estimate of warranty provision is based on past experience on the level of repairs,
as a reduction of the depreciation charge over the expected useful life of the relevant asset by equal annual instalments. When the grant applied to past period sales that are still under warranty.
relates to a compensation of an expense, it is recognised as income over the period necessary to match the grant on a systematic basis to the
Re s t r uct ur i ng p r o v i s i o ns
costs incurred.
Restructuring provisions are recognised when one of the following conditions is met:

– the decision to restructure is based on a detailed formal plan identifying at least: the business and the employees concerned, the
expected expenditures and the expected date of implementation,

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Consolidated financial statements Annual Report 2020

– there is a valid expectation that the plan will be carried out to those affected by it by the reporting date, The Group recognises the following changes in the net defined benefit obligation under :

– the restructuring has either commenced or has been announced publicly. - Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine settlements in
operating income before non-recurring items
Any restructuring provision only includes the direct expenditure arising from the restructuring which is necessarily incurred and is not
associated with the ongoing activities of the Group. - Net interest expense in interest expenses.
E m i s si o n r i g ht s The defined benefit liability is the aggregate of the present value of the defined benefits obligation reduced by past service cost not yet
recognised and the fair value of plan assets out of which the obligations are to be settled directly. If such aggregate is negative, a net pension
The initial allocation of emission rights granted is recognised at nominal amount (nil value) and is subsequently carried at cost. Where the
asset is recorded only to the extent that it does not exceed the present value of any economic benefits available in the form of refunds from
Group has emitted CO2 in excess of the emission rights granted, it will recognise a provision for the shortfall based on the market price at that
the plan or reductions in future contributions to the plan and any unrecognised past service costs.
date. The emission rights are held for compliance purposes only and therefore the Group does not actively trade these in the market.
D e f i ne d co nt r i b ut i o ns p l ans
O t he r p r ov i s i ons
In addition to the defined benefits plans described above, some Group companies sponsor defined contributions plans based on local
These captions include provisions for claims and litigation with customers, suppliers, personnel, tax authorities and other third parties. It also
practices and regulations. The Group’s contributions to defined contributions plans are charged to the income statement in the period in
includes provisions for onerous contracts, for guarantees given to secure debt and commitment of third parties when they will not fulfil their
which the contributions are due.
obligation and for site restoration costs.
O t h e r l o n g t e r m b e n e fi t s pl a n s
A provision for onerous contracts is recognised when the expected benefits to be derived by the Group from a contract are lower than the
unavoidable cost of meeting its obligations under the contract. Other long term obligations include the estimated costs of early retirement for which a constructive obligation exists at reporting date.
A provision for site restoration costs in respect of contaminated land is recognised whenever the Group has a legal obligation to clean the S h o r t t e r m b e n e f i ts
land or where there is an intention to sell the land.
Short term employee benefits are measured on an undiscounted basis and are expensed as the related service is provided. A provision is
Provisions that are expected to be settled within twelve months after the reporting date are classified as other current liabilities. The other recognised for the amount expected to be paid under short term cash-bonus plans if the Group has a present and constructive obligation to
provisions are classified as non-current liabilities. pay this amount as a result of past service provided by the employee and the obligation can be measured reliably.

M - Contingencies T e r m i nat i o n b e ne f i t s

A contingent liability is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or Termination benefits are recognised as an expense when the Group is demonstrably committed without realistic possibility of withdrawal, to a
non-occurrence of one or more uncertain future events not wholly within the control of the entity; or a present obligation that arises from formal detailed plan to terminate employment before the normal retirement date.
past events but is not recognised because:
O - Employee benefits – Share based payment transactions
– it is not probable that an outflow of resources embodying economic benefit will be required to settle the obligation,
The Group operates various share-based compensation plans which qualify as equity-settled transactions with a cash alternative. In addition to
– or the amount of the obligation cannot be measured with sufficient reliability. the shares options, beneficiaries receive put options which entitle them to a cash payment, and as management assumes that most of these put
options will be exercised, the Company accounts for the grants as a cash-settled transaction. The services received and the liability incurred are
Contingent liabilities are not recognised in the statement of financial position. They are disclosed in the notes to the financial statements,
measured initially at fair value at the grant date using the Black and Scholes method taking into account the terms and conditions upon which
unless the possibility of an outflow of resources embodying economic benefits is remote. Contingent assets are not recognised in the financial
the instruments were granted. The initial fair value is expensed over the period until vesting. The fair value of the liability is re-measured at each
statements but are disclosed if the inflow of economic benefits is probable.
reporting date up to and including the settlement. Any changes in fair value of the liability are recognised in the income statement.
N - Post employment benefits and other long-term employee benefits
P - Financial liabilities
D e f i n e d b e n e f it s p l a n s
Bank l o a ns and o t he r b o r r o w i ng s
Some Group companies provide pension or medical plans for their employees which qualify as defined benefits plans. The net obligation
Bank loans and other borrowings are recognised initially at the fair value of the consideration received, net of transaction costs incurred. In
resulting from these plans, which represents the amount of future benefits that employees have earned in return of their service in the current
subsequent periods, bank loans and other borrowings are stated at amortised cost, with any difference between costs and redemption value
and prior periods, are determined separately for each plan by a qualified actuary using the projected unit credit method. The calculations are
being recognised in the income statement, using the effective interest rate method. Gains and losses are recognised in the income statement
based on actuarial assumptions relating to mortality rates, rates of employee turnover, future salary levels and medical costs increase which
when the liabilities are derecognised as well as through the amortisation process.
reflect the economic conditions in each country or entity.
These liabilities are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least
Discount rates are determined by reference to the market yields at the reporting date on high quality corporate bonds or to the interest rates
twelve months after the reporting date.
at the reporting date on government bonds where the currency and terms of the bonds are consistent with the currency and estimated terms
of the defined benefit obligation. L e a s e l i a b il i t ie s

Re-measurements, comprising actuarial gains and losses (excluding net interest), are recognized immediately in the statement of financial At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be made
position with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable,
variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease
Re-measurements are not reclassified to profit or loss in subsequent periods.
payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for
Past service costs are recognised in profit or loss on the earlier of: terminating a lease, if the lease term reflects the Group exercising the option to terminate. Lease payments do not include payments allocated
to non-lease components of a contract. The variable lease payments that do not depend on an index or a rate are recognised as expense in
- the date of the plan amendment or curtailment, and
the period on which the event or condition that triggers the payment occur.
- the date that the Group recognises restructuring-related costs
The Group presents interests paid on its lease liabilities as financing activities in the cash-flow statement. Variable payments as well as
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. amounts paid for short-term and low-value leases are presented as operating activities.

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Consolidated financial statements Annual Report 2020

In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date if the Equities and securities risk
interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to
Equity price risk arises from financial asset valued at fair value through OCI. In general, the Group does not acquire any shares or options on
reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if
shares or other equity products, which are not directly related to the business of the Group.
there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to
purchase the underlying asset b . C r e d it r i s k

The lease payments due within twelve months are included in current financial liabilities. Credit risk is the risk of financial loss to the Group if a customer or finance counterparty to a deposit, lending or derivative instrument fails to
meet its contractual obligations. It arises principally from the Group’s receivables from customers and from bank deposits and investment
Q - Trade and other payables securities. It also includes the risk that a financial counterparty may fail to meet its obligation under a financial liability. The Group constantly
Trade and other payables are initially recognised at fair value which generally corresponds with the nominal value. They are subsequently monitors credit risk, and ensures that it has no excessive concentration of credit risk with any single counterparty or group of connected
carried at amortised cost using the effective interest rate method. counterparties.

To manage the risk of customer default, the Group periodically assesses the financial reliability of customers, and establishes purchase limits
R - Risk Management for each customer. The Group applies the simplified approach to measuring the expected credit losses which uses a lifetime expected loss
The Group has exposure to the following risks from its business activities and use of financial instruments in running and managing its allowance for all trade receivables based on historical losses. The main components of these allowances are a specific loss component that
business: relates to individually significant exposures, and a collective loss component established for groups of similar assets in respect of losses that
have been incurred but not yet identified. The collective loss allowance is determined based on historical data of payment statistics for similar
a. Market risk financial assets.
b. Credit risk Finance counterparties consist of a number of major financial institutions. The Group does not expect any counterparties to fail to meet their
c. Liquidity risk obligations, including their lending obligations, given their high credit risk ratings. Nevertheless, the Group seeks to spread its interactions
with the banking world on a sufficient number of market players to mitigate the risk of a potential default.
d. Capital risk
c . F u n d i n g a n d l o n g t e r m l i q u i d i t y ri s k
The Group’s risk management policies have been established to identify and analyse the risks faced by the Group, to set appropriate risk
limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly in the light of Funding risk is the risk that the Group will be unable to access the funds that it needs when it comes to refinance its debt or through the failure
market conditions and changes in the Group’s activities. to meet the terms of its main syndicated credit facility. A summary of the terms of the facility are to be found in note 23 on financial debts.
Refinancing risk is managed through developing and maintaining strong bank relationships with a group of financial institutions and through
As the COVID-19 pandemic continues to develop and an increasing number of countries are continuously reviewing their containment maintaining a strong and prudent financial position over time.
measures, companies around the world remain under pressure. Etex is no exception, and the impact of the virus outbreak on our business
continues to evolve. We have limited visibility when it comes to the potential impact of the virus on our markets in the coming months. Any Long term liquidity risk is the risk that the Group will encounter difficulty in meeting obligations associated with financial liabilities as they fall
disruption is uncertain, but we have robust governance and management tools in place to mitigate any potential impact and to closely monitor due. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities
the level of spending. when due, under both normal and stressed conditions, and so avoid incurring unacceptable losses or risking damage to the Group’s
reputation.
a. Marke t ri s k
Short term liquidity risk is managed on a daily basis with funding needs being fully covered through the availability of credit lines. Cash is
Market risk is the risk that changes in the market prices, such as foreign exchange rates, interest rates and equity prices, will (positively or maintained, where necessary, to guarantee the solvency and financial flexibility of the Group at all times. In 2015 a factoring and credit
negatively) affect the Group’s income or expenses or the value of its holdings of financial instruments. The objective of market risk insurance plan is set up for trade receivables (refer to note 14).
management is to manage and control market risk exposures within acceptable parameters, while optimising the return on risk.
d . C a p i t a l r is k
The Group creates financial assets and incurs financial liabilities in the ordinary course of business. It buys and sells derivatives in order to
manage market risk. Generally, the Group seeks to apply hedge accounting to allow it to offset, at maturity, the gains or losses on the hedging The Group’s primary objective when managing capital is to ensure that it maintains healthy capital ratios in order to support its business and
contracts against the value of costs and revenue. Hedge accounting enables it to manage volatility in the income statement. maximise shareholder value.

Currency risk The Group manages its capital structure and makes adjustments to it, in the light of changes in economic situations.

In its operations, the Group is exposed to currency risk on sales, purchases and borrowings. S - Derivative financial instruments
The translation of local statements of financial position and income statements into the Group reporting currency leads to currency The Group uses derivative financial instruments such as forward exchange contracts and interest rate swaps to hedge its risk associated with
translation effects. If the Group hedges net investments in foreign entities with foreign currency borrowings or other instruments, the hedges foreign currency and interest rate fluctuations. In accordance with its treasury policy, the Group does not hold derivative financial instruments
of net investments are accounted for similarly to cash flow hedges. All foreign exchange gains or losses arising on translation are recognised for trading purposes. Derivative financial instruments that do not qualify for hedge accounting are accounted for as financial assets and
in equity and included in cumulative translation differences. liabilities at fair value through profit and loss.
Due to the nature of the Group’s business, a high proportion of revenues and costs is in local currency, thus transaction risk is limited. Where Derivative financial instruments are initially recognised at fair value on the date a derivative contract is entered into. The fair value of
Group entities have expenditures and receipts in different foreign currencies, they enter into derivative contracts themselves or through the derivative financial instruments is either the quoted market price or is calculated using pricing models taking into account current market
Group’s treasury centre to hedge their foreign currency exposure over the following months (based on forecasted purchases and sales). rates and current creditworthiness of the counterparties.
These derivatives are designated either as cash flow hedges, fair value hedges or non hedging derivatives.
Subsequently to initial recognition, derivative financial instruments are stated at fair value at the reporting date. The fair value of forward
Interest rate risk exchange contracts is calculated by reference to current forward exchange rates for contracts with similar maturity profiles. The fair value of
interest rate swap contracts is determined by reference to market values for similar instruments.
The Group’s primary source of funding is floating rate bank debt. Therefore it is exposed to the risk of changes, beneficial or adverse, in
market interest rates. The Group’s long-term borrowings have been raised by companies in Belgium, Chile, and Germany. To manage its Derivative financial instruments are stated at cost if their fair value cannot be measured reliably.
interest costs, the Group has entered into interest rate swaps. The hedges ensure that the major part of the Group’s interest rate cost on
Gains or losses on re-measurement to fair value are recognised immediately in the income statement unless the derivative qualifies for hedge
borrowings is on a fixed rate basis. The timing of such hedges is managed so as to lock interest rates whenever possible.
accounting whereby recognition is dependent on the nature of the item being hedged. On the date a derivative contract is entered into, the
Group designates certain derivatives either as:

66
Financial report Etex
Consolidated financial statements Annual Report 2020

– a hedge of a particular risk associated with a recognised asset or liability or highly probable forecasted transaction, such as Deferred tax assets are recognised only when it is probable that taxable profits will be available in the coming 3 years, against which the
variability in cash flows of future interest payments on a floating rate debt (cash flow hedge), or deductible temporary difference or the tax loss to be carried forward can be utilised, except:

– a hedge of a net investment in a foreign entity. – where the temporary differences arise from the initial recognition of an asset or liability in a transaction that affects neither
accounting profit nor taxable profit on that date.
A derivative instrument is accounted for as a hedge, when:
– in respect of deductible temporary differences associated with investments in subsidiaries, equity accounted entities and interest in
– The hedging relationship is documented as of its inception.
joint ventures, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in
– The hedging is highly effective in achieving its objective. the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.

– The effectiveness can be reliably measured. Deferred tax assets are reviewed at each reporting date to assess the probability that sufficient taxable profit will be available to allow
deferred taxes to be utilised.
For a cash flow hedge, the forecasted transaction which is the subject of the hedge must be highly probable.
Deferred tax is recognised in the income statement, except when it relates to items credited or charged directly to equity, in which case the
Cas h f l o w he d g e
deferred tax is treated accordingly.
Changes in the fair value of derivatives that are designated and qualify as cash flow hedges and that are effective are recognised in equity.
Deferred tax assets and liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and
Where the firm commitment results in the recognition of a non-financial asset, for example property, plant equipment or inventory, or a non-
the deferred taxes relate to the same taxable entity and the same tax authority.
financial liability, the gains or losses previously recognised in equity are transferred from equity and included in the initial measurement of the
non-financial asset or liability. Otherwise, amounts recognised in equity are transferred to the income statement and classified as revenue or U - Revenue
expense in the same periods during which the cash flows, such as interest payments, or hedged firm commitments, affect the income
statement. Any ineffective portion is reported immediately in the income statement. When a hedging instrument is sold, or when a hedge no Revenue arising from contracts with customers is recognised applying the five-step model. Revenue is recognized at an amount that reflects
longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognised the consideration to which Group expect to be entitled in exchange for transferring goods or services to a customer.
when the committed transaction ultimately is recognised in the income statement. However, if a committed transaction is no longer expected
S al e s of g ood s
to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the income statement.
Contracts with customers to sell goods has only performance obligation. Revenue recognition (net of sales tax and discounts) occurs at
Ne t i nv e s t m e nt he d g e
a point in time, when control of the asset is transferred to the customer.
Foreign currency differences arising on the retranslation of a financial liability designated as a hedge of a net investment in a foreign
operation that are effective, are recognised in equity and included in cumulative translation differences. The amounts deferred in equity are
P r o j e ct - Co ns t r uct i o n c o nt r a ct s
transferred to the income statement on disposal of the foreign entity.
A limited number of activities of the Group (representing less than 1% of total revenues) are construction contract driven. Consequently
Certain derivative transactions, while providing effective economic hedges under the Group’s risk management policies, may not qualify for
contract revenue and contract costs are recognised in the income statement on the percentage-of-completion method, with the stage of
hedge accounting. Changes in the fair value of any derivative instruments that do not qualify for hedge accounting are recognised
completion being measured by reference to actual work performed to date. When the outcome of a construction contract cannot be
immediately in the income statement. The changes in fair value that are recognised in profit and loss of the period are classified in operating
estimated reliably, contract revenue is recognised only to the extent of the contract expenses that are recoverable. In the period in
result if the derivative relates to a non-financial asset and in financial result if the derivative relates to a financing transaction.
which it is determined that a loss will result from the performance of a contract, the entire amount of the estimated ultimate loss is
T - Income taxes charged to the income statement .

Income taxes include current and deferred income taxes. Re nt al i nc o m e

Cur r e nt i n co m e t ax e s Rental income arising on investment properties is accounted for on a straight-line basis over the lease terms on ongoing leases.

Current tax is the expected tax payable on taxable income for the year, and any adjustment to tax payable in respect of previous years. I nt e r e s t i nco m e
Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid Interest is recognised on a time proportion basis that reflects the effective yield on the asset.
to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the
reporting date. D i v i d e nd s

Additional income taxes that arise from the distribution of dividends are recognised at the same time as the liability to pay the related Dividends are recognised when the Group’s right to receive payment is established.
dividend.
V - Expenses
D e f e r r e d i ncom e t axe s
F i nan ce i nco m e and e x p e ns e s
Deferred income taxes are calculated, using the balance sheet liability method, on all temporary differences arising between the carrying
amounts of assets and liabilities in the consolidated statement of financial position and their tax base. The amount of deferred tax provided is Finance costs comprise:
based on the expected manner of realisation of the carrying amount of assets and liabilities, using the tax rates enacted or substantially enacted – interest payable on borrowings calculated using the effective interest rate method;
at the reporting date.
– foreign exchange gains and losses on financial assets and liabilities;
Deferred tax liabilities are recognised, except:
– gains and losses on hedging instruments that are recognised in the income statement;
– where the temporary differences arise from the initial recognition of goodwill or the initial recognition of an asset or liability in a
transaction that affects neither accounting profit nor taxable profit on that date. – the expected return on plan assets; and

– in respect of taxable temporary differences associated with investments in subsidiaries, equity accounted entities and interest in – interest costs with respect to defined benefit obligations.
joint ventures, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary The interest expense component of lease payments is recognised in the income statement using the effective interest rate method.
differences will not reverse in the foreseeable future.

67
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Consolidated financial statements Annual Report 2020

W - Non-current assets held for sale and discontinued operations - A m e nd m e n t s t o I F R S 9 , I A S 3 9 , I F R S 7 , I F R S 4 a nd I F R S 1 6 I nt e r e s t R a t e B e nc h m a r k R e f o r m – P ha s e 2 ( e f f e c t i v e 0 1 / 0 1 / 2 0 2 1 ) .

These amendments address issues that might affect financial reporting after the reform of an interest rate benchmark, including its
Non-current assets (or disposal groups) are classified as held for sale and stated at the lower of carrying amount and fair value less costs to
replacement with alternative benchmark rates. The amendments are effective for annual periods beginning on or after 1 January 2021, with
sell if their carrying amount is to be recovered principally through a sale transaction rather than through continuing use.
earlier application permitted.
A discontinued operation is a component of the Group business that represents a separate major line of business or geographical area of
operations or a subsidiary acquired exclusively with a view to resale. Classification as a discontinued operation occurs upon disposal or when - A m e nd m e n t t o I F R S 1 6 L e a s e s C o v i d 1 9 - R e l a t e d R e nt C o n c e s s i o ns ( e f f e c t i v e 0 1 / 0 6 / 2 0 2 0 , w i t h e a r l y a p p l i c a t i o n p e r m i t t e d ) .
the operations meet the criteria to be classified as held for sale, if earlier. A disposal group that is to be abandoned may also qualify. If certain conditions are met, the Amendment would permit lessees, as a practical expedient, not to assess whether particular covid-19-related
rent concessions are lease modifications. Instead, lessees that apply the practical expedient would account for those rent concessions as if
X – Non recurring items they were not lease modifications.

Income statement items that relate to significant restructuring measures and business transformations, health claims and environmental
- A m e nd m e n t s t o I F R S 4 I ns u r a n c e C o nt r a c t s – d e f e r r a l o f I F R S 9 ( e f f e c t i v e 0 1 / 0 1 / 2 0 2 1 ) .
remediation, major litigation, and goodwill impairment, income or expenses arising from disposal of businesses or non productive assets and
This amendment changes the fixed expiry date for the temporary exemption in IFRS 4 Insurance Contracts from applying IFRS 9 Financial
other significant one-off impacts such as those relating to long term employee benefits settlement.
Instruments, so that entities would be required to apply IFRS 9 for annual periods beginning on or after 1 January 2023.
Y - Hyperinflation
There are no other standards that are not yet effective and that would be expected to have a material impact on the entity in the current or
Following the categorization of Argentina as a country with a three-year cumulative inflation rate greater than 100%, the country is future reporting periods and on foreseeable future transactions.
considered highly inflationary in accordance with IFRS thereby triggering the requirement to transition to hyperinflation accounting as
prescribed by IAS 29 Financial Reporting in Hyperinflationary Economies.

Z - Future changes in accounting policies

New or amended standards and interpretations issued up to the date of issuance of the Group’s financial statements, but not yet effective for
2020 financial statements, which could be applicable to the Group are listed below:

- A m e nd m e n t s t o I A S 1 ‘ P r e s e n t a t i o n o f F i n a n c i a l S t a t e m e n t s : C l a s s i f i c a t i o n o f L i a b i l i t i e s a s c u r r e nt o r no n- c ur r e nt ’ ( e f f e c t i v e 1
J a n u ar y 2 02 2 )
It affects only the presentation of liabilities in the statement of financial position — not the amount or timing of recognition of any asset,
liability income or expenses, or the information that entities disclose about those items. The IASB has issued an exposure draft to defer the
effective date to 1 January 2023. They:
o Clarify that the classification of liabilities as current or non-current should be based on rights that are in existence at the end of the
reporting period and align the wording in all affected paragraphs to refer to the "right" to defer settlement by at least twelve months
and make explicit that only rights in place "at the end of the reporting period" should affect the classification of a liability;
o Clarify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability;
and make clear that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets or services

- I F R S 1 7 I ns ur a n c e c o n t r a c t s ( e f f e c t i v e 1 J a n ua r y 2 0 2 3 )
This standard replaces IFRS 4, which currently permits a wide variety of practices in accounting for insurance contracts. IFRS 17 will
fundamentally change the accounting by all entities that issue insurance contracts and investment contracts with discretionary participation
features.

- A m e nd m e n t s t o I F R S 3 B us i ne s s C o m b i n a t i o ns ; I A S 1 6 P r o p e r t y , P l a n t a n d E q ui p m e n t ; I A S 3 7 P r o v i s i o ns , C o nt i ng e nt L i a b i l i t i e s a nd
C o nt i n g e nt A s s e t s a s w e l l a s A n n u a l I m p r o v e m e nt s ( e f f e c t i v e 0 1 / 0 1 / 2 0 2 2 ) .
The package of amendments includes narrow-scope amendments to three Standards as well as the Board’s Annual Improvements, which are
changes that clarify the wording or correct minor consequences, oversights or conflicts between requirements in the Standards.
o Ame ndm en ts t o IF R S 3 B usi ne ss C ombi n at io ns update a reference in IFRS 3 to the Conceptual Framework for Financial Reporting
without changing the accounting requirements for business combinations.
o Ame ndm en ts t o I AS 1 6 Pr ope rt y , Pl a nt a nd E q uip me nt prohibit a company from deducting from the cost of property, plant and
equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a
company will recognise such sales proceeds and related cost in profit or loss.
o Ame ndm en ts t o I AS 37 P rov isi o ns, Co n ti nge nt L iab ilities a nd C o nti nge nt Asse ts specify which costs a company includes when
assessing whether a contract will be loss-making.
o A n n ual Impr ov eme n ts make minor amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 9
Financial Instruments, IAS 41 Agriculture and the Illustrative Examples accompanying IFRS 16 Leases.

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Financial report Etex
Consolidated financial statements Annual Report 2020

Explanatory Note 2 – Operating charges by nature

notes
The Group’s major operating charges by function in 2020 are as follows:

Explanatory notes In thousands of EUR

Cost of sales
Personnel & Depreciation &
temporary
-316,053
impairment
-131,763
Goods &
materials
-741,083
Energy

-172,771
Transport &
travel
-250,541
Others

-155,294
T o t al

-1,767,505
Distribution expenses -197,935 -27,412 - -580 -11,431 -109,588 -346,947
Administrative and general
-100,070 -9,291 - -606 -2,357 -58,931 -171,256
expenses
Note 1 – Revenue Other operating charges -11,708 -4,455 - -91 -742 -6,691 -23,687
Non recurring items -20,206 -23,079 - - - 4,659 -38,626
Revenue by activity
T o t al - 64 5, 97 2 - 196, 0 0 0 - 7 4 1,0 8 3 - 17 4 ,0 4 8 - 2 65, 0 7 2 - 3 2 5,8 4 6 -2 ,34 8 ,02 1
In thousands of EUR 2 01 9 2 02 0
Building Performance 1,782,666 1,639,285 The Group’s major operating charges by function in 2019 are as follows:

Exteriors 587,930 569,397 Personnel & Depreciation & Goods & Transport &
In thousands of EUR Energy Others T o t al
Residential Roofing 379,026 253,252 temporary impairment materials travel

Industry 178,988 143,659 Cost of sales -348,829 -148,505 -879,740 -189,382 -279,311 -198,434 -2,044,201
New Ways 11,473 10,299 Distribution expenses -207,879 -28,106 - -679 -20,075 -143,492 -400,231
T o t al 2 , 94 0 , 0 8 3 2 , 61 5 , 8 92 Administrative and general
-102,790 -12,523 - -588 -6,093 -63,376 -185,371
expenses
Other operating charges -14,021 -1,334 - -83 -1,934 -5,447 -22,819
Revenue by geographical area Non recurring items -19,116 -98,192 - - - 92,903 -24,405

In thousands of EUR 2 01 9 2 02 0 T o t al - 692 , 63 6 - 2 8 8 , 658 - 8 7 9, 7 4 0 - 190 , 7 3 3 - 3 0 7 ,4 14 - 3 17 ,8 4 6 - 2 , 67 7 , 0 2 7

France 522,538 488,589

The Group’s total personnel expenses, are made up of the following elements:
Germany 386,315 412,161
United Kingdom 470,186 339,926 In thousands of EUR 2 01 9 2 02 0
Benelux 190,589 171,685 Wages and salaries -506,688 -466,521
Poland 133,689 125,258 Social security contributions -108,746 -103,661
Spain 124,525 115,429 Contributions to defined contribution plans -11,662 -11,086
Other Europe 414,391 395,039 Charges for defined benefit plans (service cost) -14,654 -18,586
Chile 102,391 88,725 Restructuring and termination charges -19,116 -20,206
Argentina 71,662 54,795 Other employee benefits expenses -31,770 -25,912
Peru 73,044 60,047 T o t a l e m p l o y e e b e ne f i t s e x p e ns e s - 692 , 63 6 - 64 5, 97 2
Colombia 64,110 51,863
Nigeria 83,536 72,083 The number of the Group’s employees is split into the following categories:
South Africa 53,168 28,439
In thousands of EUR 2 01 9 2 02 0
Rest of the World 249,939 211,853
Production 8,566 7,869
T o t al 2 , 94 0 , 0 8 3 2 , 615, 8 92
Sales and marketing 3,901 3,548
Administration and research 1,371 1,361
Note that the sales in the United Kingdom for 2020 (€ 339,926 thousand) should be compared to €358,828 thousand the corresponding pro
forma value for 2019, excluding the sales realized by Marley in the United Kingdom, a business disposed in the course of 2019. A v e r a g e n um b e r o f p e r s o n ne l 13 ,8 3 8 12 ,7 7 8

69
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Consolidated financial statements Annual Report 2020

Note 3 – Other operating charges and income The impairment losses incurred in 2019 were relating to Residential Roofing division for both goodwill (€29,500 thousand) and property, plant
& equipment (€60,022 thousand).
In thousands of EUR 2 01 9 2 02 0
Restructuring charges in 2020 mainly relate to the following:
Research -20,539 -20,434
- the closure of the Bègles plasterboard-paper mill (charges €20,742 thousand and impairment of equipment for €13,756 thousand) and the
Other operating taxes -2,241 -2,205
re-location of a production line in France (charges €3,367 thousand, impairment of equipment for €596 thousand),
Direct expenses arising from investment properties -2 -35
- the centralisation of commercial processes of Industry division, including internal customer services and technical support (€2,569
Miscellaneous -37 -1,013
thousand),
T o t a l o t he r o p e r a t i ng c ha r g e s -22, 819 - 2 3 , 68 7
- the re-location of shared service centre roles to Lithuania (€ 1,368 thousand),
Click here to enter text.
- the remaining part of the restructuring charges include the further re-design of regional functions within the Etex Exteriors division (in Chile
In thousands of EUR 2 01 9 2 02 0
and in Ireland), specific restructuring measures made mainly in Central and Eastern Europe, partially offset by the reversal of some
Income from investment property 880 598 unnecessary restructuring provisions booked in prior year in the Residential Roofing division.
Government grant amortisation 1,461 1,497
In 2019, following restructuring measures were implemented:
Royalties and license income -37 -
- the closure of the clay tile plant in Malsch, Germany (charges €16,475 thousand and impairment of equipment for €4,474 thousand) and the
Miscellaneous 2,547 2,384
re-location of a production line in France (charges €2,092 thousand, impairment of equipment for €2,660 thousand),
T o t a l o t he r o p e r a t i ng i n c o m e 4 , 8 51 4, 479
- the re-design and centralisation of regional functions within the Etex Exteriors division as well as down-sizing sales and operations roles in
France, Denmark, Italy and Switzerland (€4,377 thousand),
Note 4 – Non recurring items
- the restructuring with Etex Residential Roofing management roles in disposed entities which took place prior to disposal of businesses
(€2,880 thousand),
In thousands of EUR 2019 2020
Gains / (losses) on disposal of assets 4,247 9,524 - other streamlining and centralisation of support roles (€ 3,381 thousand), in Belgium and in Germany.

Gains / (losses) on disposal of businesses 133,057 28,865 The health claims charges decrease in 2020 compared to prior year as Etex had, in 2019, to adjust the then experienced and expected increase
in future cost in specific geographies.
Total gains / (losses) on disposal of assets and businesses 137,304 38,389
Restructuring costs -36,340 -43,039 Environmental remediation charges cover various projects for which costs were exposed to renovate asbestos-containing sites and properties.
Health claims -9,518 -1,635 Other non recurring charges amount to €5,154 in 2020: this includes mainly one-off external advisors fees with respect to acquisition projects,
to non-operational assets disposals and more, as well as specific charges incurred in order to deeply transform the IT support processes within
Environmental remediation -18,100 -18,460
Etex gradually as from 2021. Favourable impact of reversed post-disposal provision not deemed necessary are also included. In 2019, other non
Asset impairment -61,558 -8,727 recurring (€ 6,694 thousand) charges were relating to acquisition and disposal projects mainly.
Impairment on goodwill -29,500 -
Others -6,694 -5,154
Note 5 – Finance income and expense
Total other non recurring items -161,709 -77,015
Non recurring items -24,405 -38,626 In thousands of EUR 2 01 9 2 02 0
Interest income from receivables, deposits and cash and cash equivalents (loans and receivables) 6,332 3,031
Etex has opted for a non recurring classification of significant one-off impacts on the income statement, both positive and negative impacts Positive impact of change in discount rate of long term provisions 48 -9
relating to significant restructuring measures and business transformation, gain and losses on disposal of assets or businesses and goodwill Other interest related income 22 4
impairments, settlements relating to post-employment liabilities or litigation not relating to current activities. Non recurring items also include
the impact of health claims and environmental remediation, as these health claims and environmental remediation impacts can fluctuate from I nt e r e s t i n c o m e 6, 4 0 2 3,02 6
one year to another and relate to the asbestos legacy of Etex. Interest expense on financial liabilities measured at amortised cost -22,379 -17,728

The 2020 gain on disposal of assets relates to disposal of non operational sites in Germany, in Mexico and in Chile. In 2019, it related mainly to Net interest expense on post-employment benefits -5,459 -4,534
additional compensation received triggered by development permit obtained by third party to which we sold, in 2005, a real property located Unwinding of discount long term provisions -433 -24
in the United Kingdom. Negative impact of change in discount rate of long term provisions -3,157 -966
In December 2020, Etex completed the disposal of the Creaton roofing business in Germany, Hungary, Poland and Belgium to the French Other interest related charges -1,036 -838
company Terreal. Earlier in 2020, the disposal of the South African Marley Roofing business and the associated company RBB (Belgium) took I nt e r e s t e x p e ns e - 3 2 , 4 64 - 2 4 , 0 90
place. Etex divested Marley in in the United Kingdom and Umbelino Monteiro in Portugal, two other businesses in the clay and concrete tile
segment, in 2019. Following the disposals of Marley, Umbelino and Creaton businesses over 2019 and 2020, Etex completely divested its clay Dividend income from shares in non consolidated companies 49 100
and concrete tile activities and its division Residential Roofing by the end of 2020. In another segment, Etex also disposed in 2020 its German Net foreign exchange gains (loans and receivables) 6,240 10,109
fire-resistant glass business part of the Industry division to AGC Glass Europe Other 38 240
Out of total gain on business disposals realised in 2020 (€ 28,865 thousand), a prominent part was generated by the disposal of the Creaton O t he r f i n a nc e i nc o m e 6, 3 2 7 10 ,4 4 9
business. In total, businesses sales transactions of 2020 generated a net disposal proceed of €108,623 thousand (mainly linked to the Creaton Net foreign exchange losses -10,139 -12,198
business) and a price adjustments of €10.567 thousand to be collected in 2021.
Impairment of shares in non consolidated companies - -763
The 2019 disposal of Marley Ltd in in the United Kingdom is the most significant part of the gain that was realised on the disposal of businesses. Hyperinflation Argentina -378 -1,314
Business disposals in 2019 in other segments related to the water-based paints joint-venture Rothenburg in Thailand and the disposal of the
Other -305 -291
Nidaplast business, French polypropylene honeycomb blocks and panels producer.
O t he r f i n a nc e e x p e ns e - 10 ,8 2 2 - 14 , 566
In 2020, impairment loss relates to the thermal insulation powder blanket line in Belgium (€4,951 thousand), to unused gypsum concession in
Ne t f i n a nc e c o s t s - 3 0,557 - 2 5,18 1
Cyprus (€2,264 thousand) and to some divested or poorly performing production lines in Chile, in France and in Germany (€1,512 thousand).

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Financial report Etex
Consolidated financial statements Annual Report 2020

The interest expense on financial liabilities measured at amortised cost decreased because of financing at lower cost and decreasing net Note 7 - Property, plant and equipment
financial debt position. It also includes the effect of interest rate swaps hedging the Group’s interest rate risk: €7,587 thousand paid in 2020
(€7,715 thousand paid in 2019). Those interest rates swaps have all matured in December 2020. L a n d a n d P l a n t , m a c h i n e r y, F u r n i tu r e ,
O t h er
U nde r
In thousands of EUR bui l di n gs e qui pme n t ve h i cl e s
p r o p er t y, p l a n t ,
co n s tr u cti o n
To ta l
The other interest related charges mainly include upfront fee expenses for €805 thousand (€662 thousand in 2019) in connection with eq u i p m en t

external financial debt which are amortised over the duration of the loan.
A t 3 1 D e ce m b e r 2 0 1 8
Foreign exchange gains and losses are presented net of the effect of foreign exchange derivative instruments. The net exchange loss is the Gross book value 1,144,799 2,511,616 223,868 25,287 118,151 4,023,721
result of the Group’s foreign exchange exposure in mainly Argentina, Indonesia, Russia, Ukraine and Nigeria on the current financial asset and
Accumulated depreciation -560,231 -1,563,378 -158,732 -26,782 - -2,309,123
liabilities in these countries.
Accumulated impairment loss -8,285 -60,201 -1,138 -78 -3,069 -72,771
The impact of hyperinflation in Argentina in 2020 is €-1,314 thousand (€-378 thousand in 2019). N e t b o o k va l u e 57 6, 2 8 3 8 8 8 ,037 63 , 998 - 1,57 3 115,0 8 2 1, 64 1, 8 2 7
Of which leased assets - 3,869 10 - - 3,879

Note 6 - Income tax expense IFRS 16 - opening balance correction 62,067 14,090 33,590 180 - 109,927
Additions 23,102 47,604 17,808 1,801 73,666 163,981
In thousands of EUR 2 01 9 2 02 0
Disposals -1,470 -802 -1,977 -114 -34 -4,397
Current income tax charge for the year -65,753 -75,901
Disposal of subsidiaries -27,554 -26,039 -346 - -5,266 -59,205
Adjustments to current income tax of previous years -5,213 1,065
Transfer between captions 13,407 45,442 2,107 535 -64,373 -2,882
C ur r e nt i nc o m e t a x e x p e ns e - 7 0 , 966 -7 4 ,8 36
Depreciation for the year -40,469 -101,248 -24,803 -1,858 - -168,378
Origination and reversal of temporary differences 23,363 29,954
Impairment loss of the year -30,510 -32,475 -1,565 -57 -450 -65,057
Net effect on deferred tax assets -13,038 -536
Reversal impairment loss 26 1 1 - - 28
Net effect of changes in tax rates on deferred tax 2,908 1,814
D e f e r r e d i nc o m e t a x e x p e ns e 13 ,2 3 3 3 1,2 3 2 Hyperinflation - opening balance
25 - -25 - - -
restatement through equity
T o t a l i n c o m e t a x e x p e ns e - 57 ,7 3 3 - 4 3 , 60 4
Hyperinflation - impact of the year 3,646 5,741 484 72 4,886 14,829

The reconciliation between the effective income tax expense and the theoretical income tax expense is summarised below. The theoretical Translation differences 2,416 -987 -643 2,466 -2,574 678
income tax expense is calculated by applying the domestic nominal tax rate of each Group entity to their contribution to the Group profit
before income tax and before share of the profit in equity accounted investees. A t 3 1 D e ce m b e r 2 0 1 9

In thousands of EUR 2 01 9 2 02 0 Gross book value 1,187,244 2,462,129 265,077 27,652 124,234 4,066,336

P r o f i t b e f o r e i n c o m e t a x a n d b e f o r e s h a r e o f p r o f i t i n e qu i t y a c c o u n t e d i n ve s t e e s 2 3 7 ,3 50 2 4 7 , 167 Accumulated depreciation -567,529 -1,534,685 -173,880 -26,063 - -2,302,157

Theoretical income tax expense (nominal rates) -40,520 -58,888 Accumulated impairment loss -38,746 -88,080 -2,482 -137 -3,297 -132,742

Weighted average nominal tax rate % 17.1% 23.8% N e t b o o k va l u e 58 0 , 96 9 8 3 9, 3 64 8 8 ,7 15 1,4 52 12 0 , 93 7 1, 63 1, 4 3 7

Of which leased assets 62,365 26,364 29,030 227 - 117,986
Tax impact of
Non deductible expenses -9,690 -7,982
Additions 15,635 40,360 13,163 1,596 31,961 102,715

Tax on profit distribution inside the Group -2,044 -3,306

Disposals -7,438 -193 -957 7 - -8,581

Tax-free gains/losses on investments 26,291 12,004

Acquisition of subsidiaries 2,814 1,554 92 - - 4,460

Other tax deductions 4,338 3,700

Disposal of subsidiaries -36,697 -46,391 -9,777 3 -2,064 -94,926

Unrecognised deferred tax assets on current year losses -15,706 -10,135

Transfer between captions 15,307 28,663 1,335 3,306 -56,962 -8,351

Recognition of previously unrecognised deferred tax assets 2,668 9,599

Depreciation of the year -36,853 -90,926 -20,164 -1,772 - -149,715

Net effect of changes in tax rates on deferred tax 2,908 1,814

Impairment loss of the year -4,568 -16,645 -25 - -768 -22,006

Adjustments to prior year income tax -5,213 1,065

Reversal of impairment loss 1,292 3 4 - - 1,299

Other tax adjustments -20,765 8,525

Hyperinflation - impact of the year 1,014 5,090 330 -3 3,303 9,734

I nc o m e t a x e x p e ns e r e c o g ni s e d i n t he i nc o m e s t a t e m e nt - 57 ,7 3 3 - 4 3 , 60 4
Translation differences -27,304 -38,232 -1,739 1,387 -7,805 -73,693

Effective tax rate % 24.3% 17.6%

A t 3 1 D e ce m b e r 2 0 2 0

The recognition of previously unrecognized deferred tax assets relates mainly to the structural changes being implemented that allow the Gross book value 1,005,734 2,064,355 217,226 29,232 92,203 3,408,750
future use on tax losses carried forward. Accumulated depreciation -491,491 -1,301,746 -145,680 -23,181 - -1,962,098

Income tax recognised directly in equity is related to: Accumulated impairment loss -10,072 -39,962 -569 -75 -3,601 -54,279
Ne t b o o k v a l ue 50 4 ,17 1 7 2 2 , 64 7 7 0 , 97 7 5, 97 6 8 8 , 60 2 1, 3 92 , 3 7 3
In thousands of EUR 2 01 9 2 02 0
Of which leased assets 57,578 25,709 20,636 274 - 104,197
Actuarial gains (losses) on post employment benefit plans 17,220 13,912
Gains (losses) on financial instruments - cash flow hedging -1,617 -2,299
T o t al 15 , 60 3 11, 613

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Financial report Etex
Consolidated financial statements Annual Report 2020

Despite the significant impact of COVID 19 on our investment’s projects, several investments were made in capacity increase, sustainability, C ur r e nt a s s e t s 7, 845 7, 845
health & safety and in some replacements, especially in France, Germany, UK and Belgium. There are no borrowing costs capitalised in 2020 Inventories 2,103 2,103
and 2019. Trade and other receivables 4,023 4,023
The disposal proceeds of property, plant and equipment in 2020 amount to €12,876 thousand, resulting in a net gain of € 4,295 thousand. In Cash and cash equivalents 1,719 1,719
2019, the proceeds amounted to €7,608 thousand with a net gain of €3,296 thousand. T O T AL AS S E T S 2 6, 0 5 4 2 6, 0 5 4

Acquisition of subsidiaries (€4,460 thousand) represents the impact of FSi as disclosed in note 8.2.
No n- c ur r e nt l i a b i l i t i e s 7, 243 7, 243
We refer to note 8.3 for the impairment testing of capital employed.
Loans and borrowings 4,523 4,523
of which leasing 2,885 2,885
Note 8 – Goodwill and business combinations Deferred tax liabilities 2,720 2,720
C ur r e nt l i a b i l i t i e s 6, 0 1 0 6, 0 1 0
8.1. Reconciliation of the carrying amount of goodwill
Trade and other liabilities 6,010 6,010
In thousands of EUR 2 01 9 2 02 0 T O T AL L I A BI L I T I E S 1 3 , 2 53 1 3 , 2 53
Gross book value 253,357 204,590
Accumulated impairment losses -51,924 -82,179 Ne t i d e nt i f i a b l e a s s e t s a nd l i a b i l i t i e s 1 2 , 8 01 1 2 , 8 01
Ne t b o o k v a l ue a t t he b e g i nni ng o f t he y e a r 2 01 , 4 3 3 122, 411 Group share 12,801 12,801
Additions through business combinations - 4,489
Translation differences -77 -3,453 A c q ui s i t i o n p r i c e s a t i s f i e d i n c a s h ( G r o up s h a r e ) 17, 289 17, 289
Changes in the scope of consolidation -49,445 - Goodwill generated 4,489 4,489
Impairment loss of the year -29,500 -
Ne t b o o k v a l ue a t t he e nd o f t he y e a r 122, 411 123, 447 The goodwill generated by this acquisition is explained by the synergies expected from this transaction.

Gross book value 204,590 141,087 8.3 Impairment testing of goodwill and capital employed
Accumulated impairment losses -82,179 -17,640
Impairment reviews were performed in 2020, by comparing the carrying value of capital employed including goodwill with the recoverable
amount of the cash-generating unit to which goodwill has been allocated.
The movements of the year are resulting from the acquisition of the FSi Limited, a UK company, in 2020 (see Note 8.2). In 2019, the
movements of the year are due to disposals of Roofing businesses (Marley UK and, to a lesser extent, Nidaplast) and from the impairment The capital employed and goodwill values tested in the global cash-generating unit Building Performance include the goodwill generated by
recognised on the remaining part of the Etex Residential Roofing division. the acquisition of the plasterboard business in Europe and in Brazil in 2011, of Pladur in 2017 and of the technical construction business, at the
time part of the Fire Protection and Insulation business, generated by the acquisition of Comais (1996, calcium silicate boards), Intumex
The main components of the carrying amount of goodwill are the following:
(2000, intumescent products) and Cafco (2007, paint and spray) as allocated in 2017 between the Etex Building Performance and the Etex
In thousands of EUR 2 01 9 2 02 0 Industry divisions. It also includes a portion of the goodwill impact of the 2020 acquisition of FSi Limited (passive fire protection).
Building Performance 85,789 81,858 Etex Industry capital employed value, consistently tested as one whole, include the above-mentioned goodwill values and the impact of the
Exteriors 11,290 11,325 acquisition of Microtherm (2011, high performance insulation). It also includes a portion of the goodwill impact of the 2020 acquisition of FSi
Industry 25,332 27,154 Limited (passive fire protection).

New Ways - 3,110 The global cash-generating unit for Etex Exteriors was tested: it covers fibre-cement façade and roofing business in Europe and in Americas
T o t al 122, 411 123, 447 and was tested for impairment on its capital employed including goodwill, mainly relating to the acquisition of business in Nordic countries
(2008).
Certain comparatives have been reclassified conform to current year’s presentation in line with current organisational structure. Etex New Ways capital employed value, to be consistently tested as one whole, include the goodwill generated by the acquisition of EOS
(2016, previously part of Building Performance).
8.2. Business combinations
The recoverable amount of the cash-generating units Etex Building Performance, Exteriors, Industry and New Ways was based on its value in
On 23 September 2020, Etex acquired 100% of the shares of FSi Limited, a UK company specialising in passive fire protection solutions with a use and exceeds by far the values of their respective capital employed. The value in use was determined by discounting the future cash flows
strong focus on fire stopping with a production facility in Measham (East Midlands) and a distribution centre within the Greater London area, generated from the continuing use of the unit and was based on the following key assumptions:
for a total consideration of €17.289 thousand (plus acquisition cost of €457 thousand).
- cash flows were projected based on actual operating results and the 3 year business plan,
The fair value of the identifiable assets and liabilities of the business acquired in 2020 as at the date of acquisition are disclosed in the - cash flows for further periods were extrapolated using a constant growth rate of 1.0% to 3.1% per annum depending on the countries
following table: involved and their inflation (1.5 % to 4.5% in 2019)
In thousands of EUR FSi Ltd 2 02 0 - cash flows were discounted using the weighted average cost of capital (WACC) in a range of 5.8 % to 9.4 % depending on the countries
involved (5.8 % to 8.7 % in 2019).
No n- c ur r e nt a s s e t s 1 8 , 2 09 1 8 , 2 09
In connection with the impairment testing process on the capital employed including goodwill, the future cash flows were subjected to stress
Property, plant and equipment 4,460 4,460
tests that included changes in individual macroeconomic parameters as part of a sensitivity analysis. Goodwill values are not sensitive to
Property, plant and equipment - owned 1,646 1,646
reasonable changes in assumptions (such as an increase of WACC by 1%).
Property, plant and equipment - leased 2,814 2,814
Etex management will closely monitor the impact of macro-economic evolution, including the potential impact of the Covid 19 virus.
Intangible assets 13,749 13,749

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Financial report Etex
Consolidated financial statements Annual Report 2020

Note 9 – Intangible assets other than goodwill Note 10 – Investment properties

In thousands of EUR C o nce s s i o ns S o ft w are B r a nd s T e chno l o g y C us t o m e r l is t O t he r s T o t al In thousands of EUR 2 01 9 2 02 0
A t 3 1 D e ce m b e r 2 0 1 8 Gross book value 39,254 42,788
Gross book value 85,474 104,026 103,814 75,885 60,339 14,683 444,221 Accumulated depreciation -18,136 -20,291
Accumulated amortisation -18,799 -78,763 -49,747 -32,832 -24,879 -12,389 -217,409 Accumulated impairment losses -7,534 -8,349
Accumulated impairment losses -4,540 -381 - - -991 -58 -5,970 Ne t b o o k v a l ue a t t he b e g i nni ng o f t he y e a r 1 3 , 58 4 14, 148
Ne t b o o k v a l ue 62 , 1 3 5 24, 882 5 4 , 0 67 4 3 , 053 3 4 , 4 69 2, 236 2 2 0, 8 4 2 Depreciation for the year -128 -283
Additions 182 3,688 - - - 1,047 4,917 Impairment losses -815 -
Disposal of subsidiaries -167 -46 -3,166 - - - -3,379 Reversal of impairment losses - 69
Transfer between captions -641 2,413 - -129 - 148 1,791 Additions 240 245
Amortisation for the year -264 -6,011 -6,127 -4,346 -4,445 -154 -21,347 Transfer between captions 1,091 -
Impairment loss of the year -1,535 -4 - -1,922 - - -3,461 Disposals -1 -659
Hyperinflation - impact of the year - 5 - - - - 5 Change in the scope of consolidation -137 -

Translation differences -115 -15 634 222 -2 300 1,024 Hyperinflation - impact of the year 492 150

A t 3 1 D e ce m b e r 2 0 1 9 Translation differences -178 -301

Ne t b o o k v a l ue a t t he e nd o f t he y e a r 14, 148 1 3 , 3 69
Gross book value 85,255 106,661 100,291 76,208 60,821 16,188 445,424
Gross book value 42,788 34,126
Accumulated amortisation -19,584 -81,602 -54,883 -37,408 -29,663 -12,611 -235,751
Accumulated depreciation -20,291 -12,477
Accumulated impairment losses -6,076 -147 - -1,922 -1,136 - -9,281
Accumulated impairment losses -8,349 -8,280
Ne t b o o k v a l ue 5 9, 5 95 2 4 , 91 2 4 5, 4 08 3 6, 8 7 8 3 0, 02 2 3 , 57 7 2 00, 3 9 2
Additions 75 3,877 1,090 - - 3,089 8,131
Investment properties comprise several pieces of land and buildings, mainly in France, Germany and Italy. The disposal amounting to
Disposals -35 -8 - - - -97 -140 €-539 thousand mainly related to investment properties in Germany, sold for a consideration of € 1,950 thousand.
Acquisition of subsidiaries - - - - 13,749 - 13,749
Disposal of subsidiaries - -737 - - - -1,301 -2,038 The fair value of the investment properties is estimated at €20,446 thousand (€21,023 thousand in 2019). Where external valuations were not
Transfer between captions 762 4,567 - 78 - - 5,407 available, best estimates have been used.

Amortisation for the year -643 -6,657 -6,865 -3,939 -4,704 -175 -22,983
Impairment loss of the year -2,264 -117 - - - - -2,381 Note 11 – Assets held for sale
Hyperinflation - impact of the year - -9 - - - - -9 In thousands of EUR 2 01 9 2 02 0
Gross book value 9,198 9,136
Translation differences -1,585 -852 -675 -295 211 -148 -3,344
Accumulated impairment losses -6,036 -5,921
A t 3 1 D e ce m b e r 2 0 2 0
Ne t b o o k v a l ue a t t he b e g i nni ng o f t he y e a r 3 , 1 62 3, 215
Gross book value 71,310 106,852 99,874 73,710 73,963 11,652 437,361
Disposals -50 -1,474
Accumulated amortisation -7,327 -81,651 -60,916 -40,988 -33,817 -6,707 -231,406
Additions - 1,092
Accumulated impairment losses -8,078 -225 - - -868 - -9,171
Transfer between captions - 2,944
Ne t b o o k v a l ue 55, 9 05 2 4 , 97 6 3 8 , 95 8 32, 7 22 3 9, 2 7 8 4 , 94 5 1 96, 7 8 4
Translation differences 103 -316
Ne t b o o k v a l ue a t t he e nd o f t he y e a r 3, 215 5 , 4 61
Acquisition of subsidiaries (€13,749 thousand) represents the impact of FSi as disclosed in note 8.2.
Gross book value 9,137 11,079
We refer to note 8.3 for the impairment testing of capital employed. Accumulated impairment losses -5,922 -5,618

Assets held for sale are mainly lands, buildings and machines that are not used in operations and for which the Group is actively looking for a
buyer. Most of these assets are located in Spain, the United Kingdom and Germany.

In 2020, a land located in Mexico was disposed. The transfer between captions for 2020 (€2,892 thousand) is the net of transferred assets
which are no longer used in operations with a gross carrying amounts for €26,468 thousand and accumulated depreciation for €-23,576
thousand from ‘Property, plant and equipment’. The additions booked in 2020 relate mainly to that specific asset.

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Financial report Etex
Consolidated financial statements Annual Report 2020

Note 12 – Investments in equity accounted entities Note 13 – Other non-current assets

In thousands of EUR 2 01 9 2 02 0 In thousands of EUR 2 01 9 2 02 0
A t t he b e g i nni ng o f t he y e a r 1 0, 3 09 9, 5 2 6 Trade and other receivables 3,754 3,366
Result for the year 1,118 -2,304 Impairment on trade and other receivables -1,344 -1,274
Dividends paid -927 -698 Net trade and other receivables 2,410 2,092
Acquisition - 3,601 Available-for-sale investments 628 617

Disposal -1,431 -2,079 Impairment on available-for-sale investments -128 -128

Net available-for-sale investments 500 489
Capital increases 397 12,127
Loans granted 739 888
Cumulative translation adjustments 60 -2,150
T o t al 3 , 64 9 3 , 4 69
A t t he e nd o f t he y e a r 9, 5 2 6 1 8 , 02 4

The non-current available-for-sale investments include unquoted equity instruments that are measured at cost for €489 thousand as their fair
In 2020, E2E (Chilean joint venture) acquired a majority stake in Tecverde Engenharia, a Brazilian innovative building company specialised in
value cannot be measured reliably (€500 thousand in 2019).
wood-frame construction systems; explaining the increase of the Group’s investments at equity accounted entities of €3,601 thousand.

The 2020 disposal value represents on the one hand the sale of RBB NV (Belgium) (€-1,622 thousand) for a total consideration of €750
thousand, and on the other hand the sale of Oberlausitzer Tonbergbau GmbH (Germany) (€-456 thousand) which forms part of the divestment Note 14 – Trade and other receivables and Other current assets
of the Creaton group.
Current trade and other receivables
The 2019 disposal value represents the sale of Rothenburg FAR Company Ltd. (€1,431 thousand) for a total consideration of €810 thousand.
In thousands of EUR 2 01 9 2 02 0
In 2020 and 2019 the Group’s share of the capital increase in E2E (Chilean joint venture) equals to respectively €6,511 thousand and €397
Trade receivables 245,618 219,429
thousand.
Impairment on trade receivables -17,419 -16,660
In 2020 the Group’s share of capital increase in Tecverde (Brazilian joint venture) equals to €5,616 thousand. Trade receivables 228,199 202,769
Summarised financial information of investments in equity accounted entities (Group’s share): Other receivables 82,295 74,498
T o t al 3 1 0 , 4 94 2 7 7 , 2 67
In thousands of EUR 2 01 9 2 02 0
Property plant and equipment 7,659 5,525 At 31 December 2020, an amount of €159.6 million (€153.7 million in 2019) has been received in cash under various non-recourse factoring and
Other non-current assets 420 6,069 credit insurance programs, whereby trade receivables are sold at their nominal value minus a discount in exchange for cash. Continuing
involvement for late payment risk is not significant. The net amount of sold trade receivables is derecognized from the balance sheet.
Current assets 8,094 13,729
Non-current liabilities -2,071 -2,258 Other receivables are mainly composed of:
Current liabilities -4,576 -5,041
In thousands of EUR 2 01 9 2 02 0
T o t a l ne t a s s e t s 9, 5 2 6 1 8 , 02 4 Income taxes recoverable 28,333 21,720
Revenue 21,398 20,395 Other taxes recoverable 41,616 25,432
Operating income 1,095 -823 Derivative financial instruments with positive fair values 298 439
Profit after tax 1,118 -2,304 Prepaid charges and accrued income 2,966 1,851
Advances due from customers for contracts in progress 1,396 1,179
Transactions between the Group and equity accounted entities can be summarised as follows: Advances to personnel 1,697 1,350
Others 5,989 22,527
In thousands of EUR 2 01 9 2 02 0 T o t al 8 2 , 2 95 7 4 , 4 98
T r a ns a c t i o ns
Purchases from associates 4,332 2,284 The other receivables of €22.527 thousand includes the price adjustment of €10.567 thousand on business disposal transactions as described in
Sales to associates 4,066 4,575 Note 4.

Dividends paid 927 698

O ut s t a nd i ng b a l a n c e s
Trade receivables 330 38
Other current receivables 1,490 -
Trade liabilities 215 -

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Financial report
P75 Etex
Consolidated financial statements Annual Report 2020

Exposure to credit risk – impairment losses Note 16 – Risk management and financial derivatives
The ageing of trade and other receivables at reporting date was as follows: 16.1 Risk management
In thousands of EUR 2019 2020
A. Market risk
Neither impaired nor past due at reporting date 395,871 382,804
Not impaired at reporting date and past due 68,306 53,455 E x p o s ur e t o cur r e ncy r i s k
Up to 30 days 50,081 36,015
Around 46% of the Group’s revenue is generated by subsidiaries with a functional currency other than the Euro (50% in 2019). The Group has
Between 31 and 60 days 5,505 9,716
its main foreign exchange exposure in the following foreign currencies: Argentinean peso, Chilean peso, Colombian peso, Nigerian naira,
Between 61 and 90 days 2,390 1,884
Peruvian nuevo sol and Pound sterling.
Between 91 and 120 days 2,619 868
Between 121 and 150 days 1,245 811 T r a n s l a t i o n c u r r e n c y s e n s i t i v i t y a n a l y s is
More than 150 days 6,466 4,161
On the basis of the volatility of these currencies against the Euro in 2020, the reasonably possible change of the exchange rate of these
Non-recourse factoring -153,683 -158,992
currencies against the Euro is estimated as follows:
Net carrying amount at the end of the year 310,494 277,267
Rates used for sensitivity analysis
The Group applied the IFRS 9 simplified approach to measuring the expected credit losses which uses a lifetime expected loss allowance for all
trade receivables based on historical losses. The Group analysed the impact of IFRS 9 and concluded there is no material impact on the
Closing rate Average rate Possible volatility Range of possible closing rates Range of possible average
impairment losses booked. The Group also assessed whether the historic pattern would change materially in the future and expects no
31 December 2020 2020 of rates in % 31 December 2020 rates 2020
significant impacts.
Argentinean peso 103.5297 103.5297 22 81,188 - 125,8714 81,188 - 125,8714
The movement in the allowance for impairment of current trade and other receivables was as follows: Chilean peso (000) 0.8724 0.9026 14 0,7535 - 0,9913 0,7796 - 1,0256
Colombian peso (000) 4.2120 4.2140 14 3,6232 - 4,8009 3,6249 - 4,8031
In thousands of EUR 2019 2020
Allowances at the beginning of the year -24,779 -17,419 Nigerian naira 503.4178 436.1916 18 411,5441 - 595,2915 356,5866 - 515,7965
Additions -1,943 -2,839 Peruvian nuevo sol 4.4470 4.0016 11 3,9605 - 4,9335 3,5638 - 4,4394
Use 6,413 2,064 Pound sterling 0.8990 0.8899 7 0,8359 - 0,9622 0,8274 - 0,9524
Reversal 1,859 786
Change in the scope of consolidation 1,031 748 As a comparison, the reasonably possible change of exchange rate of these currencies against the Euro was estimated as follows for 2019:
Allowances at the end of the year -17,419 -16,660
Rates used for sensitivity analysis

Other current assets Closing rate Possible volatility Range of possible closing rates Range of possible average
31 December 2019 Average rate 2019 of rates in % 31 December 2019 rates 2019
In thousands of EUR 2019 2020
Available-for-sale investments 807 3,551 Argentinean peso 67.0400 67.0400 21 53,2036 - 80,8764 53,2036 - 80,8764
Deposits 6,263 20,433 Chilean peso (000) 0.8365 0.7875 12 0,7372 - 0,9359 0,694 - 0,8811
Total 7,070 23,984 Colombian peso (000) 3.6815 3.6748 12 3,2344 - 4,1287 3,2285 - 4,1211
Nigerian naira 404.8980 343.3113 5 384,6531 - 425,1429 326,1457 - 360,4769
Note 15 – Inventories Peruvian nuevo sol 3.7238 3.7362 9 3,3913 - 4,0564 3,4026 - 4,0699

The different types of inventories are detailed below: Pound sterling 0.8508 0.8778 7 0,7927 - 0,9089 0,8178 - 0,9377

In thousands of EUR 2 01 9 2 02 0 If the Euro had weakened or strengthened during 2020 by the above estimated possible changes against the listed currencies with all other
Raw materials 113,843 104,279 variables held constant, the 2020 profit would have been €9,366 thousand (12%) higher or €6,876 thousand (-10%) lower while equity would
have been €63,133 thousand (5%) higher or €50,478 thousand (-4%) lower. In 2019, if the Euro had weakened or strengthened the profit
Work in progress 28,920 24,353
would have been €21,912 thousand (8%) higher or €18,562 thousand (-6%) lower while equity would have been €53,013 thousand (4%) higher
Finished goods 193,087 143,641
or €44,996 thousand (-4%) lower.
Spare parts and consumables 84,194 71,368
Goods purchased for resale 34,623 25,304 In thousands of EUR 2 02 0
Write-downs to net realisable value -51,248 -35,851 I f e ur o we ake ns I f e u r o s t re n g t h e n s

T o t al 4 03 , 4 1 9 3 3 3 , 0 94 P r of it E q u i ty P r of it E q u i ty

Argentinean peso 2,678 13,696 -1,727 -8,834

In 2020, the Group recognised inventory write-downs to net realisable value of €-11,426 thousand (€-7,123 thousand in 2019) as an expense, Chilean peso 1,010 11,613 -767 -8,826
and a reversal of prior year write-downs amounting to €13,586 thousand (€7,589 thousand in 2019) as an income. Reversals of write-downs
Colombian peso 99 6,991 -75 -5,276
without impact on the income statement amount to €720 thousand (€-2,356 thousand in 2019), mainly due to foreign currency conversions.
Nigerian naira 2,972 6,421 -2,055 -6,989
The net impact of scope changes on the total inventory equals to €-37,834 thousand; with an impact on the gross carrying amount of €-50,353
Peruvian nuevo sol 205 10,051 -165 -8,069
thousand, and €12,519 thousand on the write downs to net realisable value.
Pound sterling 2,402 14,361 -2,087 -12,484
T o t al 9, 3 66 63 , 13 3 - 6, 8 7 6 - 50,4 7 8

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Financial report Etex
Consolidated financial statements Annual Report 2020

In thousands of EUR 2 01 9 C. Funding and long term liquidity risk

I f e ur o we ake ns I f e u r o s t re n g t h e n s
M at ur i t y s che d ul e
P r of it E q u i ty P r of it E q u i ty
At 31 December 2020 the contractual maturities of financial liabilities, including interest payments, are the following:
Argentinean peso 2,061 11,479 -1,356 -7,590
Chilean peso 846 8,440 -666 -7,353 C a r r y i ng C o nt r a c t ua l More t h a n 5
Colombian peso 400 6,983 -313 -5,637 In thousands of EUR a m o unt ca s h f l o w s 1 y e ar o r l e s s 1 - 2 y e ar s 2 - 5 y e ar s y e ar s

Nigerian naira 591 2,709 -534 -2,453 No n- d e r i v a t i v e f i n a n c i a l l i a b i l i t i e s

Peruvian nuevo sol 518 8,790 -433 -7,672 Bank loans 187,575 192,388 78,893 714 112,781 -
Other financial loans 134,238 134,874 131,874 1,087 1,513 400
Pound sterling 17,496 14,612 -15,260 -14,291
Obligations under leases 107,327 129,144 23,636 21,279 32,642 51,587
T o t al 2 1, 912 53 ,0 13 - 18 , 5 62 - 4 4 , 996
Trade and other liabilities 641,050 630,441 630,441 - - -
D e r i v a t i v e f i na n c i a l l i a b i l i t i e s
I n t e r e s t r a t es s e n s it i v it y a n a l y s i s
Interest rates swaps - - - - - -
At the end of 2020 €128,170 thousand or 30% of the Group’s interest bearing financial liabilities, before offset of any surplus cash, bear a Commodity contracts 106 106 106 - - -
variable interest rate (€ 206,268 thousand or 39% at the end of 2019). This floating debt portion consists of debt instruments almost
Foreign exchange contracts 3,131 3,131 3,131 - - -
exclusively denominated in Euro apart from € 17,572 thousand that is denominated in Pound sterling (€13,414 thousand in 2019), €0 that is
T o t al 1 , 07 3 , 4 2 7 1 , 0 90 , 0 8 4 8 68 , 0 8 1 2 3 , 08 0 1 4 6, 93 6 5 1 , 98 7
denominated in Romanian Leu (€12,181 thousand in 2019) and € 607 thousand denominated in other currencies.

The total interest expense recognised in the 2020 income statement on the Group’s variable rate debt portion, net of the effect of interest Bank loans are shown according to their contractual maturity date, rather than their interest and roll-over date.
rate derivative instruments, amounts to € 10,229 thousand (€ 13,554 thousand in 2019). The total interest expense recognised on the fixed
At 31 December 2019 the contractual maturities of financial liabilities, including interest payments, were the following:
rate portion amounts to € 2,880 thousand (€ 4,205 thousand in 2019).

The reasonably possible change of the market interest rates applicable to the Group’s floating rate debt after hedging is as follows: Carrying Contractual More than 5
In thousands of EUR amount cash flows 1 year or less 1-2 years 2-5 years years
Rates used for sensitivity analysis Non-derivative financial liabilities
Possible rates Bank loans 214,668 221,718 14,358 84,728 122,423 209
Rates at 31 December 2020 Possible volatility of rates at 31 December 2020
Other financial loans 196,620 197,172 191,756 2,931 1,931 554
Euro -0.55% -0,12% - 0,27% -0,67% - -0,28%
Obligations under leases 120,067 145,637 27,722 23,648 40,727 53,540
Pound sterling 0.03% -0,26% - 0,51% -0,23% -0,54%
Trade and other liabilities 650,170 630,226 630,226 - - -
Romanian Leu 1.73% -0,41% - 0,85% 1,32% -2,58%
Derivative financial liabilities
Rates used for sensitivity analysis Interest rates swaps 7,487 7,487 7,487 - - -
Possible rates Commodity contracts 398 398 398 - - -
Rates at 31 December 2019 Possible volatility of rates at 31 December 2019 Foreign exchange contracts 5,995 5,995 5,995 - - -
Euro -0.38% -0,09% - 0,05% -0,47% --0,33% Total 1,195,405 1,208,633 877,942 111,307 165,081 54,303
Pound sterling 0.79% -0,05% - 0,12% 0,74% -0,91%
Romanian Leu 2.86% -0,26% - 0,27% 2,6% -3,13% D. Capital risk
Application of the reasonably possible fluctuations in the market interest rates mentioned above on the Group’s floating rate debt at The Group monitors capital using the debt covenant specifications as outlined in the latest syndicated loan agreement signed on
31 December 2020, with all other variables held constant and net of the effect of interest rate derivative instruments, would result in a 11 October 2018 (which was amended and restated into a sustainability linked loan in November 2019, without any impact on the debt
decrease of the 2020 profit by €388 thousand and an increase of € 178 thousand (a decrease of € 91 thousand and an increase of € covenant) and the Schuldschein loan. The Group targets to maintain a debt covenant ratio between 1.5 and 2.5 on the long term. The adjusted
115 thousand in 2019). Cash and cash equivalents in Euro of € 110,950 thousand (€ 20,073 thousand in 2019), Pound sterling balances of € net financial debt (for covenant purposes) to recurring EBITDA ratio amounts to -0.21 at 31 December 2020 (0.50 at
143,737 thousand (€ 153,333 thousand in 2019) and Romanian Leu balances of € 9,454 thousand (€ 6,339 thousand in 2019) generate interest 31 December 2019), well below the lowest covenant of 3.25. The net cash interest to recurring EBITDA ratio amounts to 37.90 at
that would partially offset any variations in interest payable. The cash pool balances are monthly netted (in euro). The fair value of the 31 December 2020 (35.04 at 31 December 2019), well above the covenant of 4.
Group’s interest rate hedging contracts would, on basis of the above possible change in interest rates, decrease by
€ 21 thousand / increase by € 50 thousand against an increase / decrease of equity for that amount (decrease by € 231 thousand and increase
by € 130 thousand in 2019).

B. Credit risk
At the reporting date the exposure to credit risk is represented by the carrying amount of each financial asset, including derivative financial
instruments, in the statement of financial position (refer to note 13 for investments, note 14 for trade and other receivables, and note 17 for
cash and cash equivalents).

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Consolidated financial statements Annual Report 2020

16.2 Financial derivatives At 31 December 2020:

The Group uses derivative financial instruments to hedge its exposure to currency risk, commodity prices and interest rate risk. In accordance
C a r r y i ng T o t a l e x p e c t e d c a s h More t h a n 5
with its treasury policy, the Group does not hold or issue derivative financial instruments for trading purposes. All derivatives are measured at
In thousands of EUR a m o unt f l ows 1 y e ar o r l e s s 1 - 2 y e ar s 2 - 5 y e ar s y e ar s
fair value.
F o r e i g n cu r r e n cy
The following table provides an overview of the outstanding derivative financial instruments at 31 December:
Foreign exchange contracts
2 01 9 2 02 0 Assets 205 205 205 - - -
In thousands of EUR F a i r v a l ue C a r r y i ng a m o u nt F a i r v a l ue C a r r y i ng a m o u nt Liabilities -2,296 -2,296 -2,296 - - -
F o r e i g n e x c ha ng e c o nt r a c t s Com m od i t y
Assets 298 298 439 439 Commodity contracts
Liabilities -5,995 -5,995 -3,131 -3,131 Assets - - - - - -
C o m m o d i t y c o nt r a c t s
Liabilities -106 -106 -106 - - -
Liabilities -398 -398 -106 -106
I nt e r e s t r a t e
I nt e r e s t r a t e s w a p s
Interest rate swaps
Liabilities -7,487 -7,487 - -
Assets - - - - - -
T o t al - 1 3 , 58 2 - 1 3 , 58 2 - 2 , 7 98 - 2 , 7 98

The following table indicates in which caption of total comprehensive income, the changes in fair value of the derivative financial instruments At 31 December 2019:
outstanding at 31 December 2020, have been recognised:
C a r r y i ng T o t a l e x p e c t e d c a s h More t h a n 5
P r o f i t f o r t he y e a r In thousands of EUR a m o unt f l ows 1 y e ar o r l e s s 1 - 2 y e ar s 2 - 5 y e ar s y e ar s
F o r e i g n cu r r e n cy
O t he r
Foreign exchange contracts
O t he r f i n a nc i a l O t he r f i n a nc i a l c o m p r e he ns i v e
In thousands of EUR C o s t o f s a l e s I nt e r e s t e x p e ns e i nc o m e ch a r g e s i nc o m e Assets 188 188 188 - - -
F o r e i g n e x c ha ng e c o nt r a c t s Liabilities -5,162 -5,162 -5,162 - - -

Assets 188 - - - -47 C o m m o d i t y c o nt r a c t s

Liabilities 188 - - - 2,677 Commodity contracts

Assets - - - - - -
C o m m o d i t y c o nt r a c t s
Liabilities -398 -398 -398 - - -
Liabilities - - - - 294
I nt e r e s t r a t e
I nt e r e s t r a t e s w a p s
Interest rate swaps
Liabilities - - - - 7,486
Assets - - - - - -
T o t al 37 6 - - - 1 0, 4 1 0
Liabilities -7,487 -7,487 -7,487 - - -

A. Cash flow hedges

B. Derivatives without hedging relationship
At 31 December 2020, the Group holds forward exchange contracts designated as hedges of expected future raw material purchases from
Certain derivative transactions, while providing effective hedges under the Group’s risk management policy, may not qualify for hedge
suppliers for purchases denominated in US Dollar and Japanese Yen, of expected future sales denominated in Polish Zloty, and of expected
accounting due to the complexity of the instruments. There are no such derivative transactions in 2020.
future purchases denominated in Euro by companies whose functional currency is the British Pound and Polish Zloty.

At 31 December 2020, the Group holds commodity swap agreements designated as hedges to cover a portion of the exposure of future price
changes on mainly fuel and other raw material.

During 2020, the Group had an interest rate swap agreements in place with a nominal amount of €250,000 thousand (€250,000 thousand in
2019) whereby it received a variable interest rate based on Euribor three or six months, as the case may be, and pays a fixed rate on the
notional amount. The swaps matured in December 2020 and were being used to hedge the exposure to interest rate risk on its floating debt.
The floating rate debt and the interest rate swaps had the same critical terms.

The Group did not recognise any ineffectiveness in 2020 and 2019.

The following tables indicate the period in which the undiscounted cash flows are or were expected to occur. This is the same period as the
period in which the cash flows are expected to impact the income statement (cost of sales if relating to forward exchange contracts covering
sales and purchases in foreign currencies and the commodity swap agreements, and interest expense if concerning interest rate swaps).

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Consolidated financial statements Annual Report 2020

16.3 Financial instruments – fair values 2 02 0

Fair values of the financial assets and liabilities approximate their carrying amounts. In thousands of EUR Lev el 1 Lev el 2 Lev el 3
A s s e t s m e a s ur e d a t f a i r v a l ue
In thousands of EUR 2 01 9 2 02 0
Derivatives – not used for hedging (held for trading at fair value through profit and loss) - 234 -
As s e t s 51 4 , 2 4 4 69 5 , 0 5 7
Derivatives – used for hedging (cash flow hedging) - 205 -
Other non current assets 3,649 3,469
L i a b i l i t i e s m e a s ur e d a t f a i r v a l ue
Trade and other receivables (loans and receivables) 2,410 2,092
Derivatives – not used for hedging (held for trading at fair value through profit and loss) - 835 -
Loans (loans and receivables) 739 888
Derivatives – used for hedging (cash flow hedging) - 2,402 -
Bonds (available-for-sale) 4 3
Other 496 486 During 2020 and 2019 there were no transfers between Level 1 and Level 2 fair value measurements, and no transfers into and out of Level 3
Trade and other receivables 310,494 277,267 fair value measurements.
Trade and other receivables (loans and receivables) 310,196 276,828
2 01 9
Derivatives – not used for hedging (held for trading at fair value through profit and loss) 110 234
Derivatives – used for hedging (cash flow hedging) 188 205 In thousands of EUR Lev el 1 Lev el 2 Lev el 3
Other current assets 7,070 23,984 A s s e t s m e a s ur e d a t f a i r v a l ue
Current financial assets – deposits (loans and receivables) 6,263 20,433 Derivatives – not used for hedging (held for trading at fair value through profit and loss) - 110 -
Shares (available-for-sale) 807 3,551 Derivatives – used for hedging (cash flow hedging) - 188 -
Cash and cash equivalents (loans and receivables) 193,031 390,337 L i a b i l i t i e s m e a s ur e d a t f a i r v a l ue
L i ab i l i t i e s 1 , 1 95 , 4 0 5 1 , 07 3 , 4 2 7 Derivatives – not used for hedging (held for trading at fair value through profit and loss) - 833 -
Financial liabilities (liabilities at amortised cost) 301,871 199,017 Derivatives – used for hedging (cash flow hedging) - 13,047 -
Other non-current liabilities 20,405 11,071
As stated in note 11, assets held for sale are measured at the lower of carrying amount and fair value less costs to sell in 2020 and 2019 since
Other non-current liabilities (liabilities at amortised cost) 20,405 11,071
no observable fair value could be obtained.
Current portion of financial liabilities (liabilities at amortised cost) 229,484 230,123
Trade and other liabilities 643,645 633,216 The investment properties are measured at amortised cost, we refer to note 10.

Trade and other payables (liabilities at amortised cost) 629,765 629,979

Derivatives – not used for hedging (held for trading at fair value through profit and loss) 833 835 Note 17 – Cash and cash equivalents
Derivatives – used for hedging (cash flow hedging) 13,047 2,402
Cash and cash equivalents per end of the year increased in 2020 compared to 2019. This was mainly due to a combination of (i) a strong cash
generation of the group throughout 2020 and (ii) the receipt of important proceeds from the sale of our clay and concrete tile activities in
Unquoted equity instruments are measured either at fair value using a valuation technique or at cost. Further explanation is provided in
Germany, Poland, Hungary and South-Africa. Only part of the cash generated could be used to pay back some of our outstanding debt without
note 13.
penalties such as some local external financing in Brazil, Indonesia and Romania. The use of commercial paper was also reduced in 2020. We
The fair value of trade and other receivables is estimated at the present value of future cash flows, discounted at the market interest rate at also refer to Note 23 ‘Loans & borrowings’ for further explanation. The different types of cash and cash equivalents are detailed below:
reporting date.
In thousands of EUR 2019 2020
The fair value of forward exchange contracts and the commodity swap agreements is based on their listed market price, if available. If a listed
Cash on hand and bank deposits 177,009 385,211
market price is not available, then the fair value is estimated by discounting the difference between the contractual forward price and the
current forward price for the residual maturity of the contract using a risk free interest rate (based on government bonds). Short-term deposits (less than three months) 16,022 5,126
Total 193,031 390,337
The fair value of interest rate swaps is calculated by discounting estimated future cash flows based on terms and maturity of each contract
and using market interest rates for a similar instrument at reporting date.
Note 18 – Equity
The fair value of interest bearing loans and borrowings has been calculated by discounting the expected future cash flows (principal and
interest cash flows) at prevailing interest rates at reporting date. Ordinary shares
The issued share capital (share premium included) of Etex N.V. amounts to €3,276 thousand at 31 December 2020. It is represented by
Fair value hierarchy 82,837,819 fully paid ordinary shares without par value.

The Group uses the following hierarchy to determine and disclose the fair value of financial instruments by valuation technique: 2 01 9 2 02 0
A t t he b e g i nni ng o f t he y e a r 82, 837 , 819 82, 837 , 819
Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities.
Movement of the year - -
Level 2: Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or A t t he e nd o f t he y e a r 82, 837 , 819 82, 837 , 819
indirectly.

Level 3: Techniques which use inputs which have a significant impact on the recorded fair value that are not based on observable market data.

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Financial report Etex
Consolidated financial statements Annual Report 2020

Treasury shares Note 19 – Provisions

At 31 December 2020 the Group owns 4,673,495 ordinary shares representing 5.64% of the total number of ordinary shares. In thousands of EUR Warranty Health claims Litigation Others Total
At 31 December 2019 43,517 72,915 14,479 53,473 184,384
2019 2020
Additional provisions made 5,037 1,725 1,656 33,820 42,238
At the beginning of the year 4,673,495 4,673,495
Amounts utilised during the year -5,343 -4,032 -2,344 -16,884 -28,603
At the end of the year 4,673,495 4,673,495
Unused amounts reversed -1,334 -1,873 -1,598 -7,210 -12,015
Changes in the scope of consolidation -8,182 - -15 -5,170 -13,367
Dividend
Translation differences -80 -566 -701 -282 -1,629
The 2020 dividend will be proposed for approval at the General Shareholders’ Meeting of Etex N.V. on 26 May 2021 (after issuance of the Discount rate adjustment 338 151 - 510 999
financial statements) and will amount to €0.70 per share representing a total dividend of €54,715 thousand. At 31 December 2020 33,953 68,320 11,477 58,257 172,007
In 2020, a dividend of €45,335 thousand has been paid out based on: Non-current at the end of the period 26,893 58,912 5,559 40,082 131,446
Current at the end of the period 7,060 9,408 5,918 18,175 40,561
- the decision of the General Shareholders’ Meeting of Etex N.V. on 27 May 2020 to allocate a dividend of EUR 0.29 per share;

- the resolution of the Extraordinary Shareholders’ meeting of Etex N.V. on 22 October 2020 to distribute an interim dividend of EUR 0.29 per
Warranty provisions
share.
The provisions for warranty costs are estimates of future payments for claims relating to sales of goods based on historical data; they cover
Number of shares EUR/share Dividend in EUR mainly roofing products in Europe for which a long warranty period is granted to customers. Increases of the provision during the year are
Ordinary shares 82,837,819 0.58 48,045,935 based on an estimate of the probability of future product claims applied to the sales figures of the year and specific claims exceeding
Treasury shares -4,673,495 0.58 -2,710,627 statistical estimates.
Dividend paid out 78,164,324 45,335,308
Health claims provision
Details changes in equity In the past, various Etex subsidiaries used asbestos as a raw material in their industrial process. The use of asbestos has been banned in the
entire Group for many years now, but some companies may still receive claims relating to past exposure to asbestos. The potential risk varies
depending on the legal situation in the relevant country, its national social security system and the insurance cover of the relevant company.
Post employment
Issued share The accounting approach is to provide for the costs of the settlement of claims which are both probable and can be reliably estimated. The
Issued share Share Post employment Financial benefits reserves
in thousands of EUR capital premiums
capital and share
benefits reserves instruments and financial
premiums provision at 31 December 2020 for the cost of asbestos claims comprises an amount of €25,883 thousand (€28,333 thousand in 2019) for the
instruments
expected costs of settling notified claims and a discounted amount of €42,437 thousand (€44,579 thousand in 2019) in respect of losses
arising from claims which have not yet been notified but which are both probable and can be reliably estimated. These future claims are
At December 31, 2018 2,533 743 3,276 -217,534 -12,593 -230,127 discounted at different rates from 0.00 % to 4.0 % depending on the country (the same range of rates in 2019).
Total comprehensive income - - - -64,138 2,904 -61,234
Most of the Etex’s subsidiaries work with external counsels and, if applicable, insurance companies to review the asbestos claims. If a
At December 31, 2019 2,533 743 3,276 -281,672 -9,689 -291,361
compensatory disease is proven and the causation can be established, the settlement is provided for an amount that reflects the type of
Total comprehensive income - - - -41,147 8,111 -33,036
disease, the seriousness of the injury, the age of the claimant and the particular jurisdiction of the claim.
Other equity movements - - - 14,462 - 14,462
At December 31, 2020 2,533 743 3,276 -308,357 -1,578 -309,935 The estimation of future claims is based on an up to 25-year cost estimate which takes into account the current level of claims as well as a
reduction of claims over time as the number of diseases is expected to decline. Whilst further claims are likely to arise after this up to 25-year-
period, the associated costs of resolution cannot be reliably estimated and no provision has been made to cover these possible liabilities. The
Other equity movements estimate of future liabilities takes into account a large number of variables such as the number of employees exposed, the likely incidence, the
The 2020 Other equity movements of €12,324 thousand mainly relate to the scope out impact post employment benefits reserves, linked to disease mix, the mortality rates, the legislative environment and the expected insurance coverage. As these assumptions may change over
the disposed companies during 2020; and the translation effects of IAS 29 (hyperinflation accounting) in Argentina impacting Other reserves time, there can be no guarantee that the provision for asbestos liabilities is an accurate prediction of the actual future costs. As a
and retained earnings consequence, the provision may have to be revised in the future as additional information becomes available or trends change. The provision
is reviewed at least once a year.
The 2019 Other equity movements of €7,031 thousand mainly relate to the translation effects of IAS 29 (hyperinflation accounting) in
Argentina impacting Other reserves and retained earnings. The number of new claims received during 2020 was 26 (43 in 2019), 23 cases were settled and 12 resolved without cost. The number of
outstanding cases for which a provision has been made at 31 December 2020, was 147 (156 in 2019).

Litigation provisions
Litigation provisions mainly include estimated future outflows relating to, various direct and indirect tax litigations, litigations with customers,
former employees, suppliers and other parties.

Other provisions
Other provisions include mainly estimated future outflows for environmental obligations and restructuring. The Group meets all obligations
imposed by relevant laws with respect to CO2 emission rights, land decontamination and site restoration. Where requested, necessary
expenses are made and provision for future estimated costs are set-up. At 31 December 2020, these provisions amount to €26,693 thousand
(€24,783 thousand in 2019). Restructuring provisions relate mainly to restructuring of companies in France. Further information is disclosed
under note 4.

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Consolidated financial statements Annual Report 2020

Note 20 – Commitments and contingencies In thousands of EUR 2019 2020

Present value of funded obligations 1,357,787 1,349,225
Health claims Fair value of plan assets 1,135,599 1,116,358
There has been a history of bodily injury claims resulting from exposure to asbestos being lodged against subsidiaries of the Group for a Plan (surplus) deficit of funded obligations 222,188 232,867
number of years. The Group’s approach is to provide for the costs of resolution which are both probable and reliably estimable (refer to Present value of unfunded obligations 131,881 121,461
note 19 on provisions). At present the provision for the costs which are both probable and can be reliably estimated cover up to 25 years of Net liability from funded and unfunded plans 354,069 354,328
estimated gross costs. Whilst further claims are likely to be resolved beyond this timeframe, the associated costs of resolution are not able to Other long term benefits 5,785 5,398
be reliably estimated and no provision has been made to cover these possible liabilities, which are considered contingent. Termination benefits 3,108 2,817

Legal claims Stock option plans 18,573 16,756

Net employee benefits liability 381,535 379,299
In the ordinary course of business, the Group is involved in lawsuits, claims, investigations and proceedings, including product liability, Employee benefit obligation 1,517,134 1,495,657
commercial, environment and health and safety matters, etc. The Group operates in countries where political, economic, social and legal
Fair value of plan assets 1,135,599 1,116,358
developments could have an impact on the Group’s operations. The Group is required to assess the likelihood of any adverse judgements or
Net liability at the end of the year 381,535 379,299
outcomes to these matters, as well as potential ranges of probable losses. The effects of such risks which arise in the normal course of
business are not foreseeable and are therefore not included in the accompanying consolidated financial statements. Net employee benefits liability (assets) 381,535 379,299
Employee benefits in the statement of financial position:
Guarantees Liabilities 392,303 385,976
At 31 December 2020, the Group issued the following guarantees to third parties: Assets 10,768 6,677

In thousands of EUR 2019 2020 Funded pension plans have been established in the United Kingdom, Ireland, Germany, Belgium, Indonesia and Brazil. They are all closed for
Guarantees issued after business disposals 322,361 328,016 new employees.
Guarantees issued by the Group to cover the fulfilment of Group companies obligations 372,947 295,736 Unfunded pension plans exist mainly in Germany and Chile, but also in Japan and Lithuania.
Guarantees issued by Third Parties to cover fulfilment of the Group companies obligations 606 606
Other post employment benefits such as medical plans, early retirement plans and gratuity plans are granted mainly in Belgium, the United
Secured debt 19,051 2,586
Kingdom, France, Germany, Austria and Italy. Other long term benefits consist mainly of “Jubileum” premiums in Germany and Poland. In
France it relates to long term profit sharing and “Medailles du travail”.
Guarantees issued by the Group to cover the fulfilment of Group companies’ obligations consists mainly of the joint and several cross
guarantees provided by the group and its affiliates relating to our outstanding syndicated credit facility (€600 million), commercial paper Termination benefit plans consist of specific early retirement plans, mainly in Germany and Chile.
program (€200 million), Schuldschein loan (€185 million), as well as securities issued to guarantee other commitments (€326 million). The
Stock options plans are detailed in note 22.
values disclosed in the above table are based on outstanding amounts.
The largest individual plans are in UK and Ireland. Together they account for 83% (79% in 2019) of the total Group defined benefit obligation,
Secured debt includes mortgages and pledges provided in Japan to cover local credit facilities in 2020. and 93% (92% in 2019) of its plan assets.

Commitments
U K P e n s i o n P la n s
In the ordinary course of business, the Group enters into purchase commitments for goods and services and capital expenditures, buys and
sells investments and Group companies or portions thereof. At 31 December 2020 Etex had purchase commitments of €21,713 thousand In the UK, the Group sponsors two defined benefit pension plans – the ML Pension Scheme (the “Scheme”) and the Eternit Pension Plan
(€6,214 thousand in 2019). (the “Plan”, together “the Plans”). The Plans were closed to future accrual on 31 December 2009 at which point all active members were
granted preserved benefits in the Plans with ongoing pension provision via a separate company sponsored defined contribution pension
Commitments relating to uncapitalized lease payments are disclosed in Note 23. scheme.

The Plans target a pension paid for life. The amount of pension depends on how long employees were active members of the Plans and their
Note 21 – Employee benefits salary when they left the Plans, revalued on a statutory basis until retirement.

The Plans are governed by boards of Trustees (the “Trustees”) that have control over the operation, funding and investment strategy. The
Defined contribution plans Trustees are comprised of nominees of the sponsoring employers and elected members of the Plans. The Trustees work together with the UK
sponsoring employers of the Plans (the UK sponsors).
For defined contribution plans Group companies pay contributions to pensions funds or insurance companies. Once contributions have been
paid, the Group companies have no further significant payment obligation. Contributions constitute an expense for the year in which they are UK legislation requires the Trustees to carry out valuations according to local funding requirements at least every three years and to target full
due. In 2020, the defined contribution plan expenses for the Group amounted to €11,086 thousand (€11,662 thousand in 2019). funding against a basis that prudently reflects the Plans’ risk exposure. The most recent valuations were carried out as at 31 March 2020 and the
results showed a deficit of £11.2million (funding level 98%) for the Scheme and a deficit of £2.4 million (funding level 99%) for the Plan against
Defined benefit plans the Trustees’ funding objective, agreed with the UK sponsors.

Some Group companies provide defined benefit pension plans to their employees as well as defined benefit medical plans and early During the 2017 actuarial valuation discussions, an agreement was reached with the UK Sponsors and the Trustees of the Plan agreed to take a
retirement plans. £43,975 thousand interest in an asset backed contribution (ABC) arrangement – the EPP ABC Limited Partnership (“the EPP ABC”), following
receipt of a contribution of the same amount from Eternit UK Limited on 28 March 2018. The agreement provides additional covenant support
The following tables reconcile the funded and unfunded status of defined benefit plans to the amounts recognised in the statement of for the Plan. The EPP ABC releases cash each quarter to the Plan of £1,025 thousand no later than 5 business days following 31 March, 30 June,
financial position: 30 September, 31 December each year starting on 30 June 2018 for a 14 year 6-month period with the last payment made no later than 5
business days following 31 December 2032. This agreement and term of the arrangement remains the same following completion of the 2020
funding valuation.

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Consolidated financial statements Annual Report 2020

The UK sponsors also agreed a similar agreement for the Scheme to take a £36,157 thousand interest in an asset backed contribution (ABC) The distribution of the employee benefit obligation per country, at the end of the year is as follows:
arrangement – the MPS ABC Limited Partnership (“the MPS ABC”), following receipt of a contribution of the same amount from Marley Eternit
Limited on 28 March 2018. The agreement provides additional covenant support for the Scheme. As with the EPP ABC, the MPS ABC releases In thousands of EUR 2 01 9 2 02 0
cash to the Scheme of £842 thousand each quarter no later than 5 business days following 31 March, 30 June, 30 September, 31 December each United Kingdom 1,110,269 1,134,433
year starting on 30 June 2018 for a 14 year 6-month period with the last payment made no later than 5 business days following 31 December
2032. This agreement and term of the arrangement remains the same following completion of the 2020 funding valuation. Germany 156,927 113,930
Ireland 93,710 99,797
In addition, the UK Sponsors agreed to meet all expenses going forward for both the Plan and the Scheme. Belgium 82,718 87,535

The approximate weighted average duration of the defined benefit obligation is approximately 16 years for the Scheme and 17 years for the France 19,241 19,123
Plan as at 31 December 2020. Others 54,269 40,839
E m p l o y e e b e ne f i t o b l i g a t i o n 1 , 51 7 , 1 3 4 1 , 4 95 , 65 7
The Plans hold a diversified portfolio of assets including multi-asset absolute return funds, property, private debt, infrastructure, insurance-
linked securities, liability driven investments, buy and hold credit funds, and cash. The investment strategy is reviewed regularly by the Trustees
in conjunction with the UK sponsors. The last review for both the Scheme and Plan was in 2020, and the changes introduced aim at improving The changes in the present value of the employee benefit obligations are as follows:
risk-adjusted returns by allocating to credit market opportunities that had been particularly impacted by COVID-19.
In thousands of EUR 2 01 9 2 02 0
There is a risk that changes in the assumptions for investment return, price inflation or life expectancy could result in deterioration in the E m p l o y e e b e ne f i t o b l i g a t i o n a t t he b e g i n ni ng o f t he y e a r 1, 342, 826 1 , 51 7 , 1 3 3
funding level of the Plans both on an accounting basis and the local funding basis. Other assumptions used to value the defined benefit Service cost 14,654 20,241
obligation are also uncertain. Other risks such as actions taken by the local regulators could result in stronger local funding standards, which Past service cost (gain)/loss -151 -236
could affect cash flow.
Settlements -188 -1,419
In order to mitigate risk and working together with the Trustees, the UK sponsors have carried out two risk management exercises since the Service cost 14,314 18,586
closure of the Plans. The first of these was a pension increase exchange exercise whereby members of the Plans were offered the opportunity to Interest cost 34,217 25,025
exchange non-statutory inflation linked pension increases for a higher initial pension, but one which did not then increase in payment thereby Actuarial (gains) and losses 145,685 125,626
reducing the inflation exposure of the Plans. A flexible pension option exercise took place at the end of 2013/start of 2014 in which preserved
pensioners aged 55 or over were reminded of their option to retire early or transfer out of the Plans with the offer of independent financial Benefits paid -72,622 -76,081
advice. To the extent members decide to transfer out of the Plans some of the risks described are reduced. Plan participants contribution 1,012 1,099
Derecognized plan - -11,344
I r eland Pensi on Pl ans Disposal of subsidiaries -773 -42,757
Translation differences 52,475 -61,630
In Ireland, the Group sponsors two defined benefit pension plans – The Tegral Group Pension Plan (the “Main Plan”) and the Tegral Group E m p l o y e e b e ne f i t o b l i g a t i o n a t t he e nd o f y e a r 1 , 51 7 , 1 3 4 1 , 4 95 , 65 7
Executives Pension Plan (the “Exec Plan”) together (“the Plans”). The Plans were closed to future accrual on 31 December 2010 at which point all
active members were granted preserved benefits in the Plans with ongoing pension provision via a separate company sponsored defined The table above includes the changes for the defined benefit obligations, stock option plans, termination benefits and other long term
contribution pension scheme (the DC Scheme).
benefits.
The Plans target a pension paid for life. The amount of pension depends on how long employees were active members of the Plans and their B e l g i a n p l a ns s ub j e c t t o m i ni m um g u a r a nt e e d r a t e o f r e t ur n
salary when they left the Plans, revalued on a statutory basis until retirement.
Etex offers defined contribution pension plans funded through group insurance to employees of its Belgian affiliates. The Belgian defined
The Plans are governed by boards of Trustees (the “Trustees”) that have control over the operation, funding and investment strategy. contribution plans are subject to the Law of 28 April 2003 on occupational pensions. According to article 24 of this Law, the employer has to
guarantee a minimum return (3.25% p.a. / 3.75% p.a. on employer / employee contributions paid before 1 January 2016 and 1.75% p.a. on employer
The Trustees are comprised of nominees of the sponsoring employers and elected members of the Plans. The Trustees work together with the /employee contributions paid as from 1 January 2016), therefore these plans are considered to be defined benefit plans under IAS 19. They induce
Irish sponsoring employer of the Plans (the Irish sponsors).
a financial risk for the group during periods of declining market interest rates when the returns guaranteed by the insurance companies are lower
Irish legislation requires the Trustees to carry out valuations according to local funding requirements at least every three years. The most recent than the minimum legal returns. The assets of these plans are entirely managed by external insurance companies referred to as "qualifying parties"
valuations were carried out as at 1 January 2018 and the next formal actuarial valuation of the Plans will be as of 1 January 2021. which do not have any link with the group.

O t h e r p l a n c o s t s a nd i n c o m e
The results of the 1 January 2018 valuations showed that both schemes satisfied the statutory minimum funding standard but there was a
combined deficit of €5.3 million (funding level 95%) against the Trustees’ funding objectives. The Irish sponsors have agreed to pay fixed Past service costs of € 54 thousand relate to plans in Germany and Netherlands. Past service gains of €205 thousand mainly relate to plans in
contributions of €1.32 million per annum over the period to the next formal valuations at 1 January 2021. France. Settlements of €187 thousand relate to Belgium. The changes in the fair value of the plan assets are as follows:

The combined approximate weighted average duration of the defined benefit obligation is 18 years for the Plans. In thousands of EUR 2 01 9 2 02 0
F a i r v a l ue o f p l a n a s s e t s a t t he b e g i nni ng o f t he y e a r 1 , 03 7 , 2 04 1 , 1 3 5 , 5 98
The Plans hold a diversified portfolio of assets including equities, bonds, property, cash and absolute return funds. The investment strategy is
reviewed regularly by the Trustees in conjunction with the Irish sponsors. Interest income 28,758 20,491
Actuarial gains and (losses) 64,158 70,568
There is a risk that experience being different to the assumptions for investment return, price inflation or life expectancy could result in
Employer contribution 17,083 13,141
deterioration in the funding level of the Plans. Other assumptions used to value the defined benefit obligation are also uncertain, although their
effect is less material. Plan participants contribution 1,012 1,099
Administration cost (excluding management of assets) -153 -161
Other risk such as actions taken by the local regulators could result in stronger local funding standards, which could affect cash flow. However,
Derecognized plan - -11,344
because the sponsor has a right to a refund of any surplus assets, there would be no further balance sheet effect.
Disposal of subsidiaries - -7,802
In order to mitigate this risk and working together with the Trustees, the Irish sponsors have controlled risk by closing the Plans to future Benefits paid -57,550 -54,442
accrual and reducing the investment risk of the Plans. Translation differences 45,087 -50,790
F a i r v a l ue o f p l a n a s s e t s a t t he e nd o f t he y e a r 1 , 1 3 5 , 5 99 1 , 1 1 6, 3 5 8

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Financial report Etex
Consolidated financial statements Annual Report 2020

The expense recognised in the income statement is detailed as follows: to be mitigated in part by an increase in asset values). The inflation assumption adopted is consistent with the discount rate used. It is used to
set the assumptions for pension increases and deferred revaluations used for preserved members’ benefits. An increase in the inflation rate of
In thousands of EUR 2 01 9 2 02 0 1.0% would result in a €20 million increase in the present value of the defined benefit obligation of the Plans (which is likely to be mitigated in
Service cost -14,314 -18,586 part by an increase in asset values). The increase in the present value of the defined benefit obligation due to a member living one year longer
Interest cost -34,217 -25,025 would be approximately €4.5 million.
Interest Income 28,758 20,491
There is also a risk of asset volatility leading to lower funding levels in the Plans.
Administration cost (excluding management of assets) -153 -161
T o t a l e m p l o y e e b e ne f i t e x p e ns e - 1 9, 92 6 - 23, 281
The employee benefit expense is included in the following line items of the income statement :
Note 22 – Share based payments
Operating income -14,467 -18,747 On 7 July 2009 the Board introduced a stock option plan to reward executives and senior staff. The plan authorises issuance of a maximum of
Financial result -5,459 -4,534 3,000,000 options over 5 year (SOP 2009, SOP 2010, SOP 2011, SOP 2012 and SOP 2013). On 18 December 2013 the Board extended this plan
by one year (SOP 2014) and authorised a maximum of 1,000,000 options to be granted.
The main weighted assumptions used in measuring the employee benefit liabilities are the following: On 19 December 2014, the Board introduced a new stock option plan on similar terms: the plan authorises the issuance of a maximum of
5,000,000 options to be granted annually over a 5-year period with an annual maximum of 1,000,000 options. In 2015, 2016, 2017, 2018 and
2 01 9 2 02 0
in 2019 grants were made under this plan (SOP 2015, SOP 2016, SOP 2017, SOP 2018 and SOP 2019).
Discount rate 1.78% 0.92%
Future salary increases 3.53% 5.03% On 22 October 2019, the Board introduced a new stock option plan on similar terms: the plan authorises the issuance of a maximum of
5,000,000 options to be granted annually over a 5-year period with an annual maximum of 1,000,000 options however if less distributed
Pension increase 2.54% 2.09%
over past years allocation could be higher in a certain year. In 2020 grants were made under this plan (SOP 2020).
Medical cost trend 5.40% 5.40%
Each option gives the beneficiary the right to buy one Etex N.V. share at an exercise price determined at grant date and is vested on a
The distribution of the plan assets is the following: monthly basis over 4 years. Each beneficiary of an option is also granted a put option whereby the shares acquired under the stock option
plan can be sold back to the Group at a price determined at each put exercise period, which is similar to the stock option plan exercise period.
2 01 9 2 02 0
Equity instruments 3% 7% Fair value of the options granted during the period
Debt instruments 35% 38% The fair value of the services received in return for share options is based on the fair value of the share options granted, measured using the
Real estate 10% 7% Black & Scholes model with the following inputs:
Etex shares (200,190 shares)
2 01 9 2 02 0
Cash and fixed deposits 7% 7%
Expected volatility (% pa) 20.00 20.00
Insurance 7% 7%
Risk-free interest rate (% pa) -0.04 -0.22
Other 38% 34%
Expected dividend increase (% pa) 10.00 10.00
T o t al 1 00% 1 00%
Rate of pre-vesting forfeiture (% pa) - -
The expected employer contributions to be paid in 2021 to defined benefit plans amount to €5,136 thousand. Rate of post-vesting leaving (% pa) 1.00 1.00
Share Price (as estimated) 29.35 28.69
Sensitivity analysis Expected early exercise of options 5-6 years 5-6 years
UK Fair value per granted instrument determined at grant date (€) 3.50 3.53

The measurement of the defined benefit obligation for the Plans in UK is particularly sensitive to changes in key assumptions, as described
The expected volatility is slightly lower than the industrial Belgian listed companies (25%), because the market ratios are fixed for the entire
below:
exercise period of the option.
The discount rate has been selected following actuarial advice and taking into account the duration of the liabilities. A decrease in the
Due to newly granted stock options in current year and due to the increase of the fair value of the options granted in the past and not
discount rate of 1.0% would result in a £190 million increase in the present value of the defined benefit obligations of the Plans (which is likely
exercised yet, Etex recognised a share-based payment expense of €9,090 thousand during the year (an expense of €7,328 thousand in 2019).
to be mitigated in part by an increase in asset values). The inflation assumption adopted is consistent with the discount rate used. It is used to
The total carrying amount of the liability related to the stock option plans amounts to €16,756 thousand (€18,573 thousand in 2019) and is
set the assumptions for pension increases and deferred revaluations used for preserved members’ benefits. An increase in the inflation rate of
disclosed under “Employee benefits liabilities” as described under note 21.
1.0% would result in a £118 million increase in the present value of the defined benefit obligation of the Plans (which is likely to be mitigated in
part by an increase in asset values). The increase in the present value of the defined benefit obligation due to a member living one year longer
would be approximately £46 million.

There is also a risk of asset volatility leading to lower funding levels in the Plans.

I r e l a nd

The measurement of the defined benefit obligation for the Plans in Ireland is particularly sensitive to changes in key assumptions, as described
below:

The discount rate has been selected following actuarial advice and taking into account the duration of the liabilities. A decrease in the
discount rate of 1.0% would result in a €20 million increase in the present value of the defined benefit obligations of the Plans (which is likely

82
Ete x Annual Report 2020 p. 49
Financial report Etex
Consolidated financial statements Annual Report 2020

Stock option plans granted by the company In 2020, Etex continued using its € 200 million non-recourse Factoring Program, through which customer receivables from 14 entities in 10
European countries are being sold to a pool of banks on a non-recourse basis. Per end of 2020, €184.7 million were financed through that
program, out of which €159 million was eligible for trade receivables derecognition.

C o nt r a c t ua l l i f e o f Nu m b e r o f o p t i o ns s t i l l t o The utilisations of the Syndicated Loan Facility may be in Euro or other freely available currencies, as agreed. The interest payable is
P l an an o p t i o n E x e r ci s e p e r i o d E x e r ci s e p r i ce b e e x e r ci s e d calculated at the relevant interbank rate for the period of the utilisation that has been chosen by the borrower, floored at 0%, plus the
SOP 2014 20.6.2021 Once a year as from 2018, between 1.6 and 20.6 30.09 7,000 applicable margin. The Credit Facility and Schuldschein contain a number of operating covenants, including restrictions on giving security to
SOP 2015 20.6.2022 Once a year as from 2019, between 1.6 and 20.6 32.83 32,000 lenders, on the amount of external subsidiary borrowings and restrictions on the acquisition and the disposal of material assets. They also
SOP 2016 20.6.2023 Once a year as from 2020, between 1.6 and 20.6 26.74 73,500 contain financial covenants which includes in particular a required ratio of consolidated net debt to consolidated EBITDA of the Group. We
also refer to Note 16.
SOP 2017 20.6.2024 Once a year as from 2021, between 1.6 and 20.6 33.23 735,153
SOP 2018 20.6.2025 Once a year as from 2022, between 1.6 and 20.7 33.65 848,499 Transaction costs on the Syndicated Loan of 2018 and on the Schuldschein Loan of 2016 have been deducted from the loan at initial
SOP 2019 20.6.2026 Once a year as from 2022, between 1.6 and 20.8 29.35 789,071 recognition and are being amortised over the life of the extended loan. The amount still to be amortized at the end of 2020 amounts to
SOP 2020 20.6.2027 Once a year as from 2023, between 1.6 and 20.8 28.69 754,625 €2,066 thousand (€2,149 thousand at the end of 2019).

Finally, for its local funding, the Group is relying on some long-term and short-term facilities with local banks for a total amount of €8.7 million
Details of the share options outstanding during the year end of 2020 (€38.2 million end of 2019). Pladur Gypsum Spain is financed via Spanish state subsidised loans for €4.3 million (€6.9 million at
the end of 2019); and Promat Japan has a local financing for €4.3 million (€2.8 million in 2019).
2 01 9 2 02 0
The local financing in Romania (€12.2 million at the end of 2019), Indonesia (€10.9 million at the end of 2019) and Brazil (€4.9 million at the
W e i g ht e d W e i g ht e d
Nu m b e r o f s h a r e a v e r a g e e x e r ci s e Nu m b e r o f s h a r e a v e r a g e e x e r ci s e end of 2019) have been reimbursed.
In thousands of EUR o p t i o ns p r i ce o p t i o ns p r i ce
The management of interest rate risk is described in Note 16.
O ut s t a nd i ng a t t he b e g i n ni ng o f t he y e a r 3 , 94 7 , 1 0 3 3 0. 8 1 3 , 94 6, 68 8 3 0. 8 3
Granted during the year 791,000 29.35 754,625 28.69 Net financial debt
Forfeited during the year -37,817 32.00 -13,315 31.13 The net financial debt position is calculated as follows:
Exercised during the year -740,098 29.16 -1,440,150 28.95
Expired during the year -13,500 24.22 -8,000 27.76 In thousands of EUR 2 01 9 2 02 0
O ut s t a nd i ng a t t he e nd o f t he y e a r 3 , 94 6, 68 8 3 0. 8 3 3 , 2 3 9, 8 4 8 31. 18 Non-current loans and borrowings 301,871 199,017
Of which exercisable at the end of the year 800,625 31.02 112,500 28.68 Current portion of loans and borrowings 229,484 230,123
Current financial assets -7,070 -23,984
For share put options exercised during the period, the weighted average share price was €36.52 (€33.54 in 2019). Cash and cash equivalents -193,031 -390,337
Ne t f i n a nc i a l d e b t 3 3 1 , 2 54 14, 819

Note 23 – Loans and borrowings

Lease liabilities
In thousands of EUR 2 01 9 2 02 0
The Group is leasing for various items of plant, property and equipment. At commencement date of the lease, the Group recognises the right-
Bank loans 200,442 109,559 of-use assets (refer to Note 7 – Property, plant and equipment) and the lease liability measured at the present value of lease payments to be
Other financial loans 5,418 3,056 made over the lease term. The Group presents interest paid on its lease liabilities as financing activities in the cash flow statement (refer to
Obligations under leases 96,011 86,402 Consolidated statement of cash flows) and as interest expense on financial liabilities measured at amortised cost in the income statement
T o t a l n o n- c ur r e nt f i n a nc i a l l i a b i l i t i e s 3 01 , 8 7 1 1 99, 0 1 7 (refer to Note 5 – Finance income and expenses). The future minimum lease payments, interest payments and present value of payments are
as follows:

In thousands of EUR 2 01 9 2 02 0 In thousands of EUR 2 01 9 2 02 0

Bank loans 13,705 77,689
Minimum lease Minimum lease
Bank overdrafts 521 327 payments Interest Present value payments Interest Present value
Other financial loans 191,202 131,182 Less than 1 year 27,722 -3,666 24,056 23,634 -2,709 20,925
Obligations under leases 24,056 20,925 Between 1 and 5 years 64,377 -8,744 55,633 53,923 -6,904 47,019
T o t a l c ur r e nt f i na nc i a l l i a b i l i t i e s 2 2 9, 4 8 4 2 3 0, 1 2 3 More than 5 years 53,540 -13,162 40,378 51,587 -12,204 39,383
T o t al 1 4 5 , 63 9 - 2 5, 57 2 1 2 0 , 0 67 1 2 9, 1 4 4 -21, 817 1 07 , 3 2 7
In October 2018, Etex signed the documentation for the refinancing of a €600 million Syndicated Credit Facility for a period of 5 years
(extendable to 7 years) with a pool of 12 core banks. That Syndicated Facility was drawn at €0 million per end of 2020 (drawn at €0 million
per end of 2019). The facility was used to a limited extent during the year to cope with any possible impact of Covid-19 in the second quarter Uncapitalized lease payments
of 2020, but the strong recovery and cash flow generation as form the third quarter enabled the Group to reimburse all outstanding amounts
The Group applies the short-term lease recognition exemption to its short-term leases (i.e. those leases that have a lease term of 12 months or
on this facility that same quarter.
less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption
Etex also uses a Schuldschein loan of €185 million (€185 million in 2019) and a Commercial Paper program of €200 million, drawn at €104.1 to leases that are considered of low value. Lease payments on short-term lease and leases of low-value assets are recognised as expense on a
million per end of 2020 (€153 million per end of 2019). The €48.9 million decrease in commercial paper versus 2019 was also possible thanks straight-line basis over the lease term. The variable lease payments that do not depend on an index or rate are recognised as expense in the
to the strong cash flow generation, as well as by using part of the proceeds from sale of our clay and concrete tile activities in Germany, period on which the event or condition that triggers the payment occur. The total expenses for uncapitalized lease payments recognised in
Poland, Hungary and South-Africa. the consolidated income statement for 2020 amount to €5,318 thousand. Future committed uncapitalized lease payments are as follows:

83
Financial report Etex
Consolidated financial statements Annual Report 2020

In thousands of EUR 2 01 9 2 02 0 The amount of deferred tax assets computed on tax losses carried forward is detailed below, before deduction of unrecognised deferred tax
assets, by year in which tax losses will expire:
Less than 1 Between 1 and More than 5 Less than 1 Between 1 and More than 5
year 5 years years Total year 5 years years Total E x p i r at i o n y e ar D e f e r r e d T ax As s e t
Short-term leases 2,653 - - 2 , 65 3 2,840 - - 2, 840 2021 1,026
Low-value leases 375 468 154 997 213 277 13 503 2022 3,650
T o t al 3 , 02 8 4 68 1 54 3 , 65 0 3 , 053 277 13 3, 343 2023 39
2024 760
Variable lease payments that do not depend on an index or a rate are not material. 2025 or later 874
Without expiration date 203,074
T o t al 2 0 9, 4 2 2
Note 24 – Deferred tax
In thousands of EUR As s e t s L i ab i l i t i e s Ne t Note 25 – Trade and other liabilities
Ne t c a r r y i ng a m o u nt a t 3 1 D e c e m b e r 2 0 1 9 98 , 0 3 3 7 6, 0 97 2 1 , 93 6
Non-current liabilities
Translation differences -5,706 -5,266 -440
Recognised in income statement 29,032 -2,200 31,232 In thousands of EUR 2 01 9 2 02 0
Recognised in equity - -11,613 11,613 Deferred income - Government grants 19,864 10,610
Change in scope of consolidation -24,430 -7,090 -17,340 Other liabilities 541 461
Hyperinflation - Impact of the year through financial result 619 - 619 T o t al 2 0, 4 05 1 1 , 07 1
Netting 16,670 16,633 37
Ne t c a r r y i ng a m o u nt a t 3 1 D e c e m b e r 2 0 2 0 114, 218 66, 5 61 4 7 , 65 7 The Group has been awarded a number of government grants related to investments in property, plant and equipment. These government
grants are recognised in the statement of financial position as deferred income for €10,610 thousand (€19,864 thousand in 2019) and
The amount of deferred tax assets and liabilities are attributable to the following items: amortised over the useful life of the assets. All conditions attached to these grants have been fulfilled.

In thousands of EUR 2 01 9 2 02 0 2 01 9 2 02 0 Current liabilities

As s e t s L i ab i l i t i e s As s e t s L i ab i l i t i e s Ne t Ne t V ar i a n ce
In thousands of EUR 2 01 9 2 02 0
Property, plant and equipment 5,992 138,604 1,135 114,981 -132,612 -113,846 18,766
Trade liabilities 452,502 437,363
Intangible assets 2,295 28,623 1,827 27,193 -26,328 -25,366 962
Other liabilities 191,143 195,853
Employee benefits assets 4,043 1,346 2,096 835 2,697 1,261 -1,436
T o t al 64 3 , 64 5 63 3 , 2 1 6
Inventories 5,432 1,315 5,000 1,066 4,117 3,934 -183
Trade & other receivables 4,755 646 3,218 586 4,109 2,632 -1,477 The other current liabilities include:
Other assets 7,973 1,358 13,066 1,110 6,615 11,956 5,341
Provisions 14,959 4,112 18,744 4,097 10,847 14,647 3,800 In thousands of EUR 2 01 9 2 02 0

Employee benefits liabilities 50,114 382 52,427 412 49,732 52,015 2,283 Income taxes payable 36,271 43,598
Loans and borrowings 11,005 1,683 9,986 684 9,322 9,302 -20 Other taxes payable 27,920 45,280
Other non-current liabilities 261 389 - 309 -128 -309 -181 Remuneration payable 69,922 64,819

Current liabilities 17,349 1,567 10,124 2,581 15,782 7,543 -8,239 Social security payable 22,731 21,035
Tax losses carried forward 197,874 - 209,422 - 197,874 209,422 11,548 Deferred income and accrued charges 12,494 10,985
Unrecognised deferred tax assets -120,091 - -125,534 - -120,091 -125,534 -5,443 Derivative financial instruments with negative fair values 13,880 3,237

Netting by taxable entity -103,927 -103,927 -87,293 -87,293 - - - Dividends payable 41 879
T o t al 98 , 0 3 4 7 6, 0 98 114, 218 66, 5 61 2 1 , 93 6 4 7 , 65 7 2 5, 7 2 1 Amount due to customers for construction contracts in progress - 34
Current cash guarantees received 804 931
Deferred taxes have not been recognised in respect of tax losses carried forward for an amount of €122,973 thousand (€119,307 thousand in Other 7,079 5,055
2019) and net deductible temporary differences for €2,561 thousand (€784 thousand in 2019) when it is not probable that future taxable T o t al 1 91 , 1 4 2 1 95 , 8 5 3
profit will be available against which the Group can utilise the benefits there from.

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Consolidated financial statements Annual Report 2020

Note 26 – Statement of cash flow details ( c) Cap i t al e xp e nd i t ur e

( a ) D e p r e ci a t i o n, a m o r t i s a t i o n a nd i m p a i r m e nt l o s s es In thousands of EUR 2 01 9 2 02 0

2020 Property, plant and equipment (note 7) 163,981 102,715

Intangibles assets (note 9) 4,917 8,131
P ro p e rt y , p lan t , I n ve s t m e n t Investment properties (note10) 240 245
In thousands of EUR e qu i p m e n t I nt a ng ib le a s s e t s p ro p e rt ie s A s s e t s he ld f o r s a le T o t al
Assets held for sale (note 11) - 1,092
(note 7) (note 8, 9) (note 10) (note 11)
T o t al 1 69, 1 3 8 112, 183
Depreciation 149,715 - 283 - 149,998
Amortisation - 22,983 - - 22,983
Property, plant and equipment - leased 34,245 21,544
Impairment losses 20,707 2,381 -69 - 23,019
T o t a l C a p i t a l e x p e nd i t u r e - l e a s e d 34, 245 2 1 , 54 4
T o t al 1 7 0, 4 2 2 2 5 , 3 64 214 - 1 96, 0 0 0

2019 Property, plant and equipment - owned 129,736 81,171

Intangibles assets - owned 4,917 8,131
P r o p e r t y , p l a nt , I nv e s t m e nt Investment properties - owned 240 245
In thousands of EUR e q ui p m e nt I nt a ng i b l e a s s e t s p rop e rt i e s A s s e t s he l d f o r s a l e T o t al
Assets held for sale - owned - 1,092
(note 7) (note 8, 9) (note 10) (note 11)
T o t a l C a p i t a l e x p e nd i t u r e - o w ne d 1 3 4 , 8 93 90 , 63 9
Depreciation 168,378 - 128 - 168,506
Amortisation - 21,347 - - 21,347 ( d ) C ha ng e s i n w o r k i ng ca p i t a l , p r o v i s i o ns a nd e m p l o ye e be ne f i t s
Impairment losses 65,029 32,961 815 - 98,805
T o t al 2 3 3 , 4 07 54 , 3 08 94 3 - 2 8 8 , 65 8 In thousands of EUR 2 01 9 2 02 0
Inventories 12,946 12,454
( b ) G a i ns ( l o s s e s ) o n s a l e a nd r e t i r e me nt o f i nt a ng i b l e a s s et s a nd p r o p e r t y , p l a nt a nd e q ui p m e nt Trade and other receivables, trade and other liabilities -5,431 62,872
Provisions -9,937 6,518
2020
Employee benefits -21,921 -17,610
P r o p e r t y , p l a nt , I nv e s t m e nt T o t al - 24, 343 64 , 2 3 3
In thousands of EUR e q ui p m e nt I nt a ng i b l e a s s e t s p rop e rt i e s A s s e t s he l d f o r s a l e T o t al
(note 7) (note 9) (note 10) (note 11) ( e ) I n t e r e st a n d d i v id e n d r e c e iv e d
Disposal proceeds 12,876 5 1,950 4,947 19,778
In thousands of EUR 2 01 9 2 02 0
Net book value disposals -8,581 -265 -659 -1,474 -10,979
Interest received 6,286 2,961
G a i ns ( l o s s e s ) o n d i s p o s a l 4 , 2 95 - 2 60 1 , 2 91 3, 47 2 8 , 7 99
Dividend received 49 100
Losses on retirement - - - - - Dividend Associates 927 698
T o t al 4 , 2 95 - 2 60 1 , 2 91 3, 47 2 8 , 7 99 T o t al 7 , 2 62 3 , 7 59

2019 ( f ) Re co nci l i at i o n I n co m e t ax e x p e ns e – i nco m e t ax p ai d

P r o p e r t y , p l a nt , I nv e s t m e nt
In thousands of EUR 2 01 9 2 02 0
In thousands of EUR e q ui p m e nt I nt a ng i b l e a s s e t s p rop e rt i e s A s s e t s he l d f o r s a l e T o t al
Income Tax expense -57,733 -43,604
(note 7) (note 9) (note 10) (note 11)
Changes in Deferred taxes -13,233 -31,232
Disposal proceeds 7,608 - 1 82 7,691
Changes in income tax payables/receivables 5,617 13,274
Net book value disposals -4,311 - -1 -50 -4,362
I nc o m e T a x p a i d - 65 , 3 4 8 - 61 , 5 62
G a i ns ( l o s s e s ) o n d i s p o s a l 3 , 2 97 - - 32 3, 329
Losses on retirement - - - - - ( g ) D i v i de nd p a i d
T o t al 3 , 2 97 - - 32 3, 329
In thousands of EUR 2 01 9 2 02 0
Dividend Etex N.V. -45,335 -45,335
Minority interest -2,039 -11,576
Changes dividend payable -5 838
Exchange difference -295 2,124
T o t a l d i v i d e nd p a i d - 4 7 , 67 5 - 5 3 , 94 9

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Financial report Etex
Consolidated financial statements Annual Report 2020

( h ) C h a n g e s i n l i a b i l i t ie s a r i si n g f r o m f i n a n c i a l l i a b i l i t i es Transactions with members of the Board of Directors and Executive Committee:

2020 In thousands of EUR 2 01 9 2 02 0

Board of Directors:
No n- c a s h c ha ng e s
Short term employee benefits 824 730
F o r e i gn Executive Committee:
e x ch a n g e
Short term employee benefits 4,541 5,140
In thousands of EUR J a n u a r y 0 1, C a s h f l o w s m o ve m e n ts N e w l e as e s Tr a n s f e r s Di s po s a l S co p e i n S co p e o u t D e ce m b e r 3 1,
Post employment benefits 590 460
2020 2 02 0
Share based payment 992 1,628
Bank loans 200,442 -14,627 -522 - -75,734 - - - 109,559 Number of stock options granted during the year 145,000 240,625
Other financial loans 5,418 -2,427 -1 - -1,271 - 1,337 - 3,056
Transactions with companies in which members of the Board of Directors are active, reflect third party conditions and are immaterial in
Non-current lease liability 96,011 -1,367 -4,777 21,544 -22,781 -1,624 3,300 -3,904 86,402 scope.
No n- c ur r e nt f i na nc i a l l i a b i l i t i e s 3 01 , 8 7 1 -18, 421 - 5, 3 00 2 1 , 54 4 - 99, 7 8 6 - 1 , 62 4 4 , 63 7 - 3 , 90 4 1 99, 0 1 7

Note 28 – Remuneration of statutory auditor

Bank loans 13,705 -9,785 -1,610 - 75,734 - -355 - 77,689
The world-wide audit remuneration for the statutory auditor totalled €2,053 thousand (€2,145 thousand in 2019). The fees paid to the
Bank overdrafts 521 295 - - - - - -489 327
statutory auditor for additional services amounted to €688 thousand (€757 thousand in 2019), of which €152 thousand Other
Other financial loans 191,202 -60,917 -968 - 1,271 - - 594 131,182 engagements (€63 thousand in 2019) and €536 thousand tax & advisory services (€694 thousand in 2019)

Current lease liability 24,056 -19,414 -4,250 - 22,781 -13 - -2,235 20,925
C ur r e nt f i na n c i a l l i a b i l i t i e s 2 2 9, 4 8 4 - 8 9, 8 2 1 - 6, 8 2 8 - 99, 7 8 6 -13 - 3 55 - 2, 130 2 3 0, 1 2 3 Note 29 – Etex companies
The major companies included in the consolidated financial statements are listed below. An exhaustive list of the Group companies with
T o t a l l o a ns a nd b o r r o w i ng s 53 1 , 3 55 - 1 08 , 2 4 2 -12, 128 2 1 , 54 4 - - 1 , 63 7 4, 282 - 6, 0 3 4 4 2 9, 1 4 0 their registered office will be filed at the Belgian National Bank together with the consolidated financial statements.

2019 % e q ui t y i nt e r e s t
2019 2020
No n- c a s h c ha ng e s E ur o p e
Austria Etex Building Performance GmbH 100% 100%
F o r e i gn
e x ch a n g e F i r s t A do p Belgium Comptoir du Bâtiment N.V. 100% 100%
In thousands of EUR J a n u a r y 0 1, C a s h f l o w s m o ve m e n ts N e w l e as e s Tr a n s f e r s Di s po s a l I F R S 16 S co p e o u t D e ce m b e r 3 1, Creaton Benelux N.V. 100% 0%
2019 2 01 9 Etergyp N.V. 100% 100%

Bank loans 512,095 -303,556 -211 - -7,886 - - - 200,442 Eternit N.V. 100% 100%
Etex Building Performance N.V. 100% 100%
Other financial loans 6,892 6 1 - -1,481 - - - 5,418
Etex N.V. 100% 100%
Non-current lease liability 3,852 -5,300 1,111 34,245 -24,078 - 86,823 -642 96,011 Etex Services N.V. 100% 100%
No n- c ur r e nt f i na nc i a l l i a b i l i t i e s 52 2 , 8 3 9 - 3 08 , 8 50 90 1 34, 245 - 33, 445 - 8 6, 8 2 3 - 64 2 3 01 , 8 7 1 Etexco N.V. 100% 100%
Euro Panels Overseas N.V. 100% 100%
Microtherm N.V. 100% 100%
Bank loans 19,947 -13,408 -720 - 7,886 - - - 13,705
Promat Research and Technology Center N.V. 100% 100%
Bank overdrafts 6,981 -6,458 -2 - - - - - 521
Bosnia Siniat Adria Gips LLC 100% 100%
Other financial loans 169,817 19,110 795 - 1,481 - - -1 191,202 Cyprus Asmad Alci Ltd STI 100% 100%
Czech Republic Promat s.r.o. 100% 100%
Current lease liability 181 -23,159 142 - 24,078 - 23,104 -290 24,056
Denmark Etex Nordic A/S 100% 100%
C ur r e nt f i na n c i a l l i a b i l i t i e s 1 96, 92 6 - 2 3 , 91 5 215 - 33, 445 - 2 3 , 1 04 - 2 91 2 2 9, 4 8 4
France Etermat S.A.S.U. 100% 100%
Eternit S.A.S.U. 100% 100%
T o t a l l o a ns a nd b o r r o w i ng s 7 1 9, 7 65 - 3 3 2 , 7 65 1, 116 34, 245 - - 1 0 9, 92 7 - 93 3 53 1 , 3 55 Etex Building Performance International S.A.S. 100% 100%
Etex France Building Performance S.A. 100% 100%
Note 27 – Transactions with related parties Etex France Exteriors 100% 100%

Transactions between Etex and its subsidiaries, which are related parties, have been eliminated in the consolidation and are accordingly Etex Materiaux de Construction S.A.S. 100% 100%
not included in the notes. Transactions with equity accounted investees and joint ventures are included in note 12. Papeteries de Bègles S.A.S. 100% 100%
Pladur France S.A.S. 100% 100%

86
Financial report Etex
Consolidated financial statements Annual Report 2020

% e q ui t y i nt e r e s t % e q ui t y i nt e r e s t
2019 2020 2019 2020
Germany Creaton GmbH 100% 0% Poland Creaton Polska Sp. z o.o. 100% 0%
Creaton Produktions GmbH 99.98% 0% Promat TOP Sp. z o.o. 100% 100%
El-Tec 51.00% 0% Siniat Polska Sp. z o.o. 100% 100%
Eternit Management Holding GmbH 100% 100% Siniat Sp. z o.o. 100% 100%
Etex Building Performance GmbH 100% 100% Portugal EPISA SL 100% 100%
Etex Germany Exteriors GmbH 100% 100% Romania Etex Building Performance S.A. 100% 100%
Etex Holding GmbH 100% 100% Russia Etex Russia 100% 100%
Promat Service GmbH 100% 100% Serbia Siniat Gips Beocin Ltd 100% 100%
Wanit Fulgurit GmbH 100% 100% Slovenia Promat d.o.o. 100% 100%
Hungary Creaton South-East Europe Kft. 100% 0% Spain Almería Gypsum S.A. 100% 100%
Italy Edilit S.r.l. 100% 100% Escayolas Marin SL 100% 100%
Etex Building Performance S.p.A. 100% 100% Euronit Fachadas y Cubiertas S.L. 100% 100%
Etex Italia 100% 100% Pladur Gypsum 100% 100%
Immogit S.r.l. 100% 100% Promat Ibérica S.A. 100% 100%
Promat S.p.A. 100% 100% Promat Inversiones S.L. 100% 100%
Siniat Holding Italy S.r.l. 100% 100% Switzerland Etex Switzerland & Austria GmbH 100% 100%
Ireland Etex Ireland Limited 100% 100% Polyfibre S.A. 100% 100%
Tegral Holdings Ltd. 100% 100% Ukraine Promat Ukraine 100% 100%
Lithuania UAB Eternit Baltic 100% 100% Siniat Gips ALC 100% 100%
Luxemburg EASA S.A. 100% 100% Siniat Gips Ukraine LLC 100% 100%
Eternit Investment S.à.r.l. 100% 100% United Kingdom Crucible Gypsum Recycling Ltd 100% 100%
Etex Asia S.A. 100% 100% EM Holdings UK Ltd. 100% 100%
Etex Finance S.A. 100% 100% EOS Framing Limited 100% 100%
Maretex S.A. 100% 100% EOS Offsite Solutions Limited 100% 100%
Merilux S.à.r.L. 100% 100% Eternit UK Ltd. 100% 100%
Poly Ré S.A. 100% 100% Etex (Exteriors) UK Limited 100% 100%
Netherlands Eternit B.V. 100% 100% Etex (U.K.) Limited 100% 100%
Eternit Holding B.V. 100% 100% Etex Building Performance UK Ltd. 100% 100%
Etex Building Performance B.V. 100% 100% FSi Limited 0% 100%
Nefibouw B.V. 100% 100% John Brash Ltd 100% 100%
ML UK Holding Limited 100% 100%
Promat Glasgow Ltd. 100% 100%
Promat UK Ltd. 100% 100%
L at i n Am e r i c a
Argentina Durlock S.A. 100% 100%
Eternit Argentina S.A. 99.44% 99.44%
Siniat Holding Argentina S.A. 100% 100%
Brazil Siniat Holding Brazil S.A. 100% 100%
Siniat S.A. Mineração Indústria e Comércio 100% 100%
Chile Centro de Servicios Compartidos SpA 99.79% 99.83%
Empresas Pizarreño S.A. 99.83% 99.83%
Inversiones Etex Chile Ltda. 100% 100%
Inversiones San Lorenzo Chile S.A. 99.79% 99.83%
Sociedad Industrial Pizarreño S.A. 99.66% 99.77%
Sociedad Industrial Romeral S.A. 99.83% 99.87%

87
Financial report Etex
Consolidated financial statements - Statutory auditor’s report Annual Report 2020

Statutory
% e q ui t y i nt e r e s t
2019 2020
Colombia Etex Colombia S.A. 99.95% 99.95%
Gyplac S.A. 100% 100%

Auditor’s Report
Shared Services Colombia S.A.S 100% 100%
Mexico Servicios de Gestion S.A. de C.V. 100% 100%
Servicios Atacama S.A. de C.V. 99.79% 99.79%
Peru Etex Peru S.A.C. 100% 100%
Fabrica Peruana Eternit S.A. 89.16% 89.16%
Uruguay Eternit Uruguaya S.A. 97.50% 97.50%
A f r i c a , A s i a , O c e a ni a , N o r t h A m e r i c a
Australia Promat Australia Pty Ltd. 100% 100%
China Eternit Guangzhou Building Systems Ltd. 66.65% 66.65%
Promat International (Asia Pacific) Ltd. 100% 100%
Promat Shangai Ltd. 100% 100% STATUTORY AUDITOR'S REPORT TO THE GENERAL SHAREHOLDERS’ MEETING OF THE COMPANY ETEX NV ON THE CONSOLIDATED
India Promat India 100% 100% ACCOUNTS FOR THE YEAR ENDED DECEMBER 31, 2020

Indonesia Etex BP Indonesia 92.62% 94.93%

Japan Promat Japan 100% 100%
We present to you our statutory auditor’s report in the context of our statutory audit of the consolidated accounts of Etex NV (the “Company”)
Malaysia Etex Malaysia 100% 100% and its subsidiaries (jointly “the Group”). This report includes our report on the consolidated accounts, as well as the other legal and regulatory
Nigeria Emenite Ltd. 56.87% 56.87% requirements. This forms part of an integrated whole and is indivisible.
Eternit Ltd. 60.00% 100%
Nigerite Ltd. 56.85% 56.85% We have been appointed as statutory auditor by the general meeting d.d. 23 May 2018, following the proposal formulated by the board of
Singapore Promat Building System Pte Ltd. 100% 100% directors, following the recommendation by the risk and audit committee. Our mandate will expire on the date of the general meeting which will
deliberate on the annual accounts for the year ended 31 December 2020. We have performed the statutory audit of the Company’s
South Africa Etex South Africa Building Systems 100% 100%
consolidated accounts for 3 consecutive years.
Marley SA (Pty) Ltd. 100% 0%
United Arab Emirates Promat Fire Protection LLC 100% 100% Re p o r t o n t he c o ns o l i d a t e d a c c o unt s
United States of America Promat Inc. 100% 100%
U nq u a l i f i e d o p i ni o n
Equity accounted entities
We have performed the statutory audit of the Group’s consolidated accounts, which comprise the consolidated statement of financial position
% e q ui t y i nt e r e s t as at 31 December 2020, the consolidated income statement, the consolidated statement of comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and explanatory notes to the consolidated financial
2019 2020
statements, including a summary of significant accounting policies and other explanatory information, and which is characterised by a
Belgium RBB N.V. 50% 0%
consolidated statement of financial position total of EUR’000 2,898,505 and a profit for the year of EUR’000 201,259.
Brazil Tecverde Egenharia 0% 45.14%
Chili E2E 50% 50% In our opinion, the consolidated accounts give a true and fair view of the Group’s net equity and consolidated financial position as at 31
Germany Lichtensteiner Brandschutzglas GmbH & Co. KG 50% 50% December 2020, and of its consolidated financial performance and its consolidated cash flows for the year then ended, in accordance with
International Financial Reporting Standards as adopted by the European Union and with the legal and regulatory requirements applicable in
Neuwieder Brandschutzglas GmbH 50% 50%
Belgium.
Oberlausitzer Tonbergbau GmbH 49.99% 0.00%
Poland Kopalnia Gipsu Leszcze S.A. 50% 50%
Nida Media Sp. z o.o. 50% 50% B a s i s f o r u nq u a l i f i e d o p i ni o n
Switzerland Promat AG 26% 26%
We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in Belgium. Furthermore, we have applied
the International Standards on Auditing as approved by the IAASB which are applicable to the year-end and which are not yet approved at the
Note 30 – Subsequent events national level. Our responsibilities under those standards are further described in the “Statutory auditor’s responsibilities for the audit of the
In January 2021, Etex acquired a majority stake in the French offsite construction company e-Loft, which has become part of the New Ways, consolidated accounts” section of our report. We have fulfilled our ethical responsibilities in accordance with the ethical requirements that are
representing a new step towards our ambition to shape the future of construction. relevant to our audit of the consolidated accounts in Belgium, including the requirements related to independence.

In February 2021, Etex finalized the acquisition of Knauf’s plasterboard business in Australia, expanding our geographical plasterboard footprint We have obtained from the board of directors and Company officials the explanations and information necessary for performing our audit.
and gaining access to a market that offers significant growth opportunities.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
The 2020 consolidated accounts are impacted by neither of these two acquisitions.

88
Financial report Etex
Statutory auditor's report Annual Report 2020

K e y A ud i t M a t t e r s P o s t - e m p l o y m e nt b e ne f i t o b l i g a t i o ns – No t e 2 1

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated accounts of
Description of the key audit matter
the current period. These matters were addressed in the context of our audit of the consolidated accounts as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
As described in Note 21, the Group has defined benefit pension plans of which the most significant are in the UK and Ireland. Through its defined
benefit pension plans, the Group is exposed to a number of risks, mainly being:
H e a l t h C l a i m s – No t e 1 9

• asset volatility, the pension plans hold significant investments in equities, bonds, cash, property and funds;
Description of the key audit matter
• actuarial assumptions including expected inflation, discount rate, future salary increases and mortality rates life expectancy.

As described in the Note 19, health claim provisions totalling mEUR 68.3 as at December 31, 2020 have been reported in the consolidated The procedures over the post-employment benefit provisions were of most significance to our audit because the assessment process is
financial statements of Etex Group. In the past, various Etex subsidiaries used asbestos as a raw material in their industrial process. Even though complex and involves significant management judgement. Actuarial assumptions are used in valuing the Group’s post-employment benefit
we understand the use of asbestos has been banned in the entire Group, some companies may still receive claims relating to past exposure to plans. Small changes in assumptions and estimates used to value the Group’s net post-employment benefit liability may have a significant effect
asbestos. The provisions reflect the costs of the settlement of claims which are both probable and can be reliably estimated. on the Group’s financial position. Technical expertise is required to determine these amounts.
The matter is of most significance to our audit because the assessment process is complex, the potential risk varies depending on the legal
situation in the relevant country, its national social security system and the insurance cover of the relevant company and involves significant The post-employment benefit provision as per 31 December 2020 in respect of both funded and unfunded plans consists out of defined benefit
management judgement. Assumptions and estimates used in valuing these provisions are, amongst others, related to: obligations (mEUR 1,471) offset by plan assets (mEUR 1,116).

• the number of employees involved; How our audit addressed the key audit matter
• the likely incidence, the disease mix and the mortality rates;
• expected insurance cover; We evaluated and challenged management’s key actuarial assumptions (both financial and demographic) by performing independent testing of
• legislative environment. those assumptions supporting the Group’s post-employment benefit obligation.

Changes in assumptions and estimates used to value the environmental provisions may have a significant effect on the Group’s financial
In performing the evaluation of the assumptions (being discount, inflation and salary increase rates and mortality / life expectancies), we
position.
utilized our internal specialists’ knowledge to assess the reasonableness of the assumptions used by management.

How our audit addressed the key audit matter

We tested the participant census data as included in the actuarial reports obtained by the company and we obtained the valuation reports of
the plan assets from the investment managers.
As part of our audit procedures, we have assessed management’s process to identify asbestos obligations and changes in existing obligations in
compliance with IAS 37 requirements.
We found the assumptions and data used to be reasonable and in line with our expectations, management’s methodology and estimates to be
We assessed the accuracy, valuation and completeness of health claim provisions as per 31 December 2020. This assessment included:
reasonable and company’s disclosures of post-employment benefit provisions appropriate.

• meetings with Group management;

• inquiries of in-house legal counsel;
• review of litigation reports;
• evaluate management’s assessment including consistency in assumptions;
• analysis and back testing of the cash outflow projections;
• tracing of corroborative evidence of the amounts spent.

We found the assumptions and data used to be reasonable and in line with our expectations, management’s methodology and estimates to be
reasonable and the related disclosures appropriate.

89
Financial report Etex
Statutory auditor's report Annual Report 2020

I m p a i r m e nt t e s t i ng o f g o o d w i l l , i nt a ng i b l e a s s e t s a nd p r o p e r t y , p l a nt a nd e q ui p m e nt – N o t e 7 , 8 a nd 9 Responsibilities of the board of dire ctors for the preparation of consolidated accounts

Description of the key audit matter The board of directors is responsible for the preparation of consolidated accounts that give a true and fair view in accordance with International
Financial Reporting Standards as adopted by the European Union and with the legal and regulatory requirements applicable in Belgium, and for
The carrying value of the Group’s goodwill, intangible assets & property, plant and equipment amounts to mEUR 1,713 as at 31 December 2020. such internal control as the board of directors determine is necessary to enable the preparation of consolidated accounts that are free from
material misstatement, whether due to fraud or error.
We consider this as most significant to our audit because the determination of whether or not an impairment charge for these assets is
necessary involves significant judgement by the Directors and management about the future results of the business. In preparing the consolidated accounts, the board of directors is responsible for assessing the Group’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the board of directors either
The impairment assessment holds a comparison of the recoverable amount of the Cash Generating Unit (CGU) and its specific assets to its intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
carrying value: the CGU’s were defined in compliance with the organizational structure as described in Note 8.
S t a t ut o r y a ud i t o r ’ s r e s p o ns i b i l i t i e s f o r t he a ud i t o f t he c o ns o l i d a t e d a c c o unt s
In particular, we focused on the reasonableness and impact of key assumptions including:
Our objectives are to obtain reasonable assurance about whether the consolidated accounts as a whole are free from material misstatement,
• cash flow forecasts derived from internal forecasts and the assumptions around the future performance; whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is
• the discount rate and the long term growth rate including assessment of risk factors and growth expectations of the relevant territory; not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
How our audit addressed the key audit matter economic decisions of users taken on the basis of these consolidated accounts.

We evaluated management’s assessment of the indicators of impairment and challenged impairment calculations by assessing the future cash In performing our audit, we comply with the legal, regulatory and normative framework applicable to the audit of the consolidated accounts in
flow forecasts used in the models and the process by which they were drawn up, including comparing them to the latest internal forecasts Belgium. A statutory audit does not provide any assurance as to the Group’s future viability nor as to the efficiency or effectiveness of the board
presented to the Board of Directors. of directors’ current or future business management at Group level.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We
We understood and challenged: also:

• assumptions used in the Group’s internal forecasts and the long term growth rates by comparing them to economic and industry • Identify and assess the risks of material misstatement of the consolidated accounts, whether due to fraud or error, design and perform
forecasts; audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our
• the historical accuracy of forecasts to actual results to determine whether cash flow forecasts are reliable based on past experience; opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud
• the discount rate by assessing the cost of capital and other inputs including benchmarking with comparable organizations; may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;
• the mathematical accuracy of the underlying calculations. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control;
In performing the above work, we utilized our internal valuation experts to provide challenge and external market data to assess the
reasonableness of the assumptions used by management. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by the board of directors;
We performed sensitivity analysis around the key drivers within the cash flow forecasts to ascertain the extent of change in those assumptions
• Conclude on the appropriateness of the board of directors’ use of the going concern basis of accounting and, based on the audit
and also considered the likelihood of such a movement in those key assumptions arising.
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the
Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in
Whilst recognizing that cash flow forecasting and impairment modelling are both inherently judgmental, we found that the assumptions used
our statutory auditor’s report to the related disclosures in the consolidated accounts or, if such disclosures are inadequate, to modify
by management were within an acceptable range of reasonable estimates and company’s disclosures of impairment assessment appropriate.
our opinion. Our conclusions are based on the audit evidence obtained up to the date of our statutory auditor’s report. However,
future events or conditions may cause the Group to cease to continue as a going concern;

• Evaluate the overall presentation, structure and content of the consolidated accounts, including the disclosures, and whether the
consolidated accounts represent the underlying transactions and events in a manner that achieves fair presentation;

• Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the
Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and
performance of the Group audit. We remain solely responsible for our audit opinion.

We communicate with the board of directors and the risk and audit committee regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the board of directors and the risk and audit committee with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, related safeguards.

From the matters communicated with the board of directors and the risk and audit committee, we determine those matters that were of most
significance in the audit of the consolidated accounts of the current period and are therefore the key audit matters. We describe these matters
in our auditor’s report unless law or regulation precludes public disclosure about the matter.

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Financial report Etex
Statutory auditor's report - Non-consolidated accounts of Etex NV Annual Report 2020

O t he r l e g a l a nd r e g ul a t o r y r e q ui r e m e nt s
Non-consolidated
Non consolidated
accounts
accounts of of
Responsibilities of the board of dire ctors

The board of directors is responsible for the preparation and the content of the directors’ report on the consolidated accounts and the other
information included in the annual report on the consolidated accounts.

Etex N.V.
Etex N.V.
S t a t ut o r y a ud i t o r ’ s r e s p o ns i b i l i t i e s

In the context of our mandate and in accordance with the Belgian standard which is complementary to the International Standards on Auditing
(ISAs) as applicable in Belgium, our responsibility is to verify, in all material respects, the directors’ report on the consolidated accounts, and the
other information included in the annual report on the consolidated accounts and to report on these matters.

A s p e c t s r e l a t e d t o t he d i r e c t o r s ’ r e p o r t o n t he c o ns o l i d a t e d a c c o u nt s
The annual accounts of Etex N.V. are presented below in a summarised form.
In our opinion, after having performed specific procedures in relation to the directors’ report on the consolidated accounts, this directors’ report In accordance with the Belgian Company Code, the annual accounts of Etex N.V., together with the management report and the auditor’s
is consistent with the consolidated accounts for the year under audit and is prepared in accordance with article 3:32 of the Companies' and report, will be registered at the National Bank of Belgium.
Associations' Code.
These documents are also available upon request at:
In the context of our audit of the consolidated accounts, we are also responsible for considering, in particular based on the knowledge acquired E t e x N. V.
resulting from the audit, whether the directors’ report on the consolidated accounts and the other information included in the annual report on Group Finance Department
the consolidated accounts, containing: Passport Building | Luchthaven Brussel Nationaal | Gebouw 1K
1930 Zaventem
- Consolidated Key Figures and information ‘About Etex’ (Chapter 1);
- Social and environmental report (Chapter 3);
- Governance report (Chapter 4); The auditors have expressed an unqualified opinion on the annual statutory accounts of Etex N.V.

is materially misstated or contains information which is inadequately disclosed or otherwise misleading. In light of the procedures we have
Summarised balance sheet
performed, there are no material misstatements we have to report to you.
in thousands of EUR 2 01 9 2 02 0
F i x e d as s e t s 1 , 7 0 4 , 97 9 1 , 7 1 2 , 7 61
Tangible and intangible assets 4,166 1,861
Financial assets 1,700,813 1,710,900
C ur r e nt a s s e t s 1 2 , 990 4 1 , 4 57
S t a t e m e nt r e l a t e d t o i nd e p e nd e n c e T O T AL AS S E T S 1 , 7 1 7 , 969 1 , 7 54 , 2 1 8

- Our registered audit firm and our network did not provide services which are incompatible with the statutory audit of the
C a p i t a l a nd r e s e r v e s 1 , 0 96, 1 3 4 1 , 4 8 5, 53 8
consolidated accounts, and our registered audit firm remained independent of the Group in the course of our mandate.
Capital 2,533 2,533
- The fees for additional services which are compatible with the statutory audit of the consolidated accounts referred to in article 3:65
of the Companies' and Associations' Code are correctly disclosed and itemized in the notes to the consolidated accounts. Share premium 743 743
Reserves 1,092,858 1,482,262
P r o v i s i o ns 9, 4 2 7 7 , 65 7
Sint-Stevens-Woluwe, April 2, 2021 Cr e d i t or s 61 2 , 4 0 8 2 61 , 0 2 3
The statutory auditor T O T A L E Q U I T Y A ND L I A B I L I T I E S 1 , 7 1 7 , 969 1 , 7 54 , 2 1 8
PwC Reviseurs d'Entreprises SRL / PwC Bedrijfsrevisoren BV
Represented by

Peter Van den Eynde

Réviseur d’Entreprises / Bedrijfsrevisor

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Financial report Etex
Non-consolidated accounts of Etex NV - Glossary Annual Report 2020

Glossary
Definitions below relate to alternative
Summarised income statement
in thousands of EUR 2 01 9 2 02 0
performance measures.
Operating income 49,189 46,528
Operating charges -45,651 -47,044
O p e r a t i ng r e s ul t 3 , 53 8 - 51 6 Capital employed Non recurring items Recurring operating income
Financial result -272 471,758 Non-cash working capital plus property, Income statement items that relate to (REBIT)
P rof i t / < l os s > b e f ore t a xe s 3 , 2 67 471, 242 plant and equipment, goodwill and significant restructuring measures and Income from operations, before non
Income taxes -338 172 intangible assets, investment properties business transformations, health claims recurring items and before financial
P r o f i t / < l o s s > f o r t he y e a r 2 , 92 8 471, 414 and non-current assets held for sale. and environmental remediation, major charges and income, share of result in
Release of tax free reserves - - litigation, and goodwill impairment, income investments accounted for using the equity
Profit / <loss> for the year to be appropriated 2,928 471,414 Capital expenditure or expenses arising from disposal of method and income tax expenses.
Acquisition of property, plant and businesses or non productive assets and
The financial result includes non-recurring items for €5,387 thousand in 2020, and €3,785 thousand in 2019. equipment, intangible assets and other significant one-off impacts such Recurring operating cash flow
Profit distribution investment properties, excluding as those relating to long term employee (REBITDA)
acquisitions through business combination. benefits settlement. Recurring operating income before
The Board of Directors will propose at the General Shareholders’ Meeting on 26 May 2021 a net dividend of €0.4900 per share. The proposed charges of depreciations, impairment or
gross dividend is €0.70 per share. Effective income tax rate Operating income or EBIT (earnings amortization on tangible and intangible
Income tax expense divided by the profit before interest and taxes) fixed assets.
Appropriation account before income tax and before share Income from operations, before financial
in thousands of EUR 2 01 9 2 02 0
of result in investments accounted for charges and income, share of result in Return on capital employed (ROCE)
using the equity method, expressed as investments accounted for using the equity Operating income divided by the average
P r o f i t / < l o s s > t o b e ap p r o p r i at e d 2 , 92 8 471, 414
a percentage. method and in-come tax expenses. capital employed (at the beginning of the
Profit / <loss> for the year to be appropriated 2,928 471,414
year plus at the end of the year divided by
A p p r o p r i a t i o n o f t he r e s ul t 2 , 92 8 471, 414
Free Cash Flow Operating cash flow or EBITDA two), expressed as a percentage.
Transfer to/from reserve 21,095 -413,427 Free cash flow is the sum of the cash (earnings before interest, taxes,
Profit to be distributed -24,023 -57,986 flow from operating activities, interest depreciation and amortisation) Theoretical income tax expenses
paid and received, dividend received less Operating income before charges of Country-based nominal tax rate applied to
Statutory nominations capital expenditure. depreciation, impairment or amortisation the profit before taxes of each entity.
on tangible and intangible fixed assets.
The director mandates of Messrs. Jean-Louis de Cartier de Marchienne, Paul Van Oyen, Teodoro Scalmani, Christian Simonard, Caroline Thijssen,
Jo Van Biesbroeck, Pascal Emsens, and Guillaume Voortman will expire at the end of the Annual General Shareholders’ Meeting of May 26, 2021. Net financial debt Weighted average nominal tax rate
The Remuneration and Nomination Committee is assisting the Board in preparing the proposals for election by the Annual General Shareholders’ Current and non-current financial Net profit (Group share) Country-based nominal tax rate applied
Meeting. liabilities, including capital leases, less Profit for the year attributable to the to the profit before taxes of each entity
current financial assets and cash or cash shareholders of the Group. divided by the Group’s profit before
The auditor mandate of PricewaterhouseCoopers Bedrijfsrevisoren B.V., represented by its permanent representative Mr. Peter Van den Eynde,
equivalents. income tax and before share of result in
will expire at the end of the Annual General Shareholders’ Meeting of May 26, 2021. The Board proposes to the Annual General Shareholders’
Meeting to renew the mandate for a period of three years expiring at the end of the 2024 Annual General Shareholders’ Meeting. Recurring distribution rate investments accounted for using the equity
Net recurring profit (Group Share) Gross dividend per share divided by the net method, expressed as a percentage.
Net profit for the year before non recurring recurring profit (Group share) per share,
items, net of tax impact and attributable to expressed as a percentage. Weighted average number of shares
the shareholders of the Group. Number of issued shares at the
beginning of the period adjusted for the
Revenue number of shares cancelled or issued
Includes the goods delivered and services during the period multiplied by a time-
provided by the Group during the period, weighting factor.
invoiced or to be invoiced, net of discounts,
rebates and allowances.

92
 Etex
Photo credits
Annual Report 2020

Photo credits
Cover > Top left: picture provided by Cedral – Top right: p.14 > Promat: picture provided by Christophe Grilhe – p.26 > Pictures provided by Etex p.41 > Pictures provided by Shutterstock
picture by Jef Boes – Left center: picture provided by Durlock: picture provided by Durlock – Gyplac:
Etex Akmene Lithuania – Bottom left: picture provided by picture provided by Oscar Coral / Manet – Siniat: p.27 > Picture provided by Etex – p.43 > Picture provided by Shutterstock
Jef Boes - Bottom right: picture provided by Etex Dubai picture provided by Siniat – Kalsi: picture provided by Kalsi Portrait provided by Greg Smolders
– Superboard: picture provided by Superboard – p.44 > Picture provided by Etex Akmene Lithuania
p.2 > Picture provided by Etex Peru Cedral: picture provided by Etex – Eternit: picture provided p.28 > Big picture provided by Etex Akmene Lithuania –
by Eternit – Equitone: picture provided by Equitone – Small picture provided by Equitone p.45 > Left: Pictures provided by Etex –
p.3 > From left to right and top to bottom pictures provided Promat: picture provided by Promat – E2E: picture provided Right: pictures provided by Etex Dubai
by: 1. Etex Local town hall Enugu, Nigeria – 2. Etex Akmene by E2E – EOS: picture provided by EOS – Tecverde: picture p.29 > Pictures provided by Etex
Lithuania - 3. Etex Emenite Nigeria - 4. Etex Local town hall provided by Tecverde p.46 > Picture provided by Shutterstock
Turceni, Romania - 5. Etex Dubai - 6. Etex Emenite Nigeria p.30 > Pictures provided by Etex
p.15 > Picture provided by Etex Dubai p.47 > Picture provided by Shutterstock
p.4 > Picture provided by De Machine p.31 > Pictures provided by Shutterstock –
p.16 > picture provided by Tim Coppens Portrait by Greg Smolders p.48 > Picture provided by Tim Coppens
p.5 > Picture provided by Etex Dubai
p.17 > pictures provided by Shutterstock p.32 > Pictures provided Etex Dubai p.49 > Award: picture provided by Gutzandglory –
p.6-7 > Pictures provided by Greg Smolders Portraits provided by Etex
p.18 > Picture provided by Etex Local p.33 > Left: Picture provided by Shutterstock –
p.9 > From left to right and top to bottom pictures Townhall Melbourne Australia Right: pictures provided by Etex p.50 > Picture provided by Etex
provided by: 1. Etex Local town hall Enugu, Nigeria -
2. Etex Akmene Lithuania - 3. Shutterstock - 4-7. Etex - p.19 > Picture provided by De Machine p.34 > Pictures provided by Etex p.51 > From left to right and top to bottom pictures provided
8. Etex Dubai - 9. Etex - 10. Shutterstock by: 1. Etex Akmene Lithuania – 2-5. Etex
p.20 > Picture provided by Etex Peru p.35 > Picture provided by Etex –
p.10 > From left to right pictures provided by: Portrait provided by Cristian Montes p.52 > Picture provided by De Machine
1. Tim Coppens – 2-5. Etex p.21 > Picture provided by Greg Smolders
p.36 > Pictures provided by Etex p.53 > Picture provided by Etex Dubai
p.11 > Picture provided by De Machine p.22 > Picture provided by Etex Peru
p.37 > Pictures provided by Etex p.54 > Pictures provided by Greg Smolders
p.12 > Picture provided by Etex Emenite Nigeria p.23 > Picture provided by Siniat Romania –
Portrait provided by Greg Smolders p.38 > Pictures provided by Etex p.55 > Pictures provided by Greg Smolders –
p. 13 > Picture provided by Etex Local town hall Christophe David: picture provided by Christophe David –
Turceni, Romania p.24 > Pictures provided by Etex Emenite Nigeria p.39 > Picture provided by De Machine Background: Shutterstock

p.25 > Pictures provided by Etex p.40 > Picture provided by EOS p.57 > Picture provided by Etex Emenite Nigeria

Back cover > Picture provided by Etex Local town hall Dubai

93
Caring
makes
it work
Annual Report 2020

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