(17) Business segment report
The PCC Group currently has around 3,300 employees at 41 sites in 18 countries. The investment portfolio is divided into seven segments. The six segments Polyols & Derivatives, Surfactants & Derivatives,
Chlorine & Derivatives, Silicon & Derivatives, Trading & Services and Logistics are allocated full operational responsibility. Assigned to these six segments are a total of 17 business units that are managed by our international companies and entities. The seventh segment, Holding & Projects, includes not only the holding company PCC SE but also other companies and entities that either function as intermediate holding companies or are still in the project development stage. These include PCG PCC Oxyalkylates Sdn. Bhd. and PCC GulfChem Corporation.
The pooling of the businesses into the six operating segments strengthens synergy effects and sharpens the profile of the individual units and entities, very much in keeping with the PCC Group’s strategy of active investment portfolio management and ongoing optimization. The management of assets and investments, and the examination of further acquisitions with the aim of achieving competency- related diversification into new market segments are at the heart of Group policy. In the long term, this is intended to secure sustainable growth and continuously increase the enterprise value of PCC.
The pooling of the businesses into the six operating segments strengthens synergy effects and sharpens the profile of the individual units and entities, very much in keeping with the PCC Group’s strategy of active investment portfolio management and ongoing optimization. The management of assets and investments, and the examination of further acquisitions with the aim of achieving competency- related diversification into new market segments are at the heart of Group policy. In the long term, this is intended to secure sustainable growth and continuously increase the enterprise value of PCC.
The Polyols & Derivatives segment comprises the Polyols, Polyurethane Systems and Alkylphenols business units. Polyols are the basic ingredients of polyurethane (PU) foams. They have a wide range of
applications in a variety of sectors, from the PCC foam technology iPoltec® for high-comfort mattresses to PU foam systems for the effective and climate-friendly thermal insulation of buildings.
The Surfactants & Derivatives segment comprises the business units Anionic Surfactants, Non-ionic Surfactants, Amphoteric Surfactants (Betaines) and Household and Industrial Cleaners, Detergents and Personal Care Products. Because of their multiple effects in foaming, wetting, emulsifying and cleaning, surfactants are essential ingredients in many products. In toothpastes they generate the cleaning effect and foaming action, while in dishwashing products they ensure that dirt and grease are effectively dislodged from hard surfaces.
The Chlorine & Derivatives segment comprises the business units Chlorine, Chlorine Downstream Products, MCAA, and Phosphorus & Naphthalene Derivatives. Chlorine is not only one of the most widely used basic substances in the chemical industry, it is also an indispensable part of many people’s everyday lives: In a swimming pool, for example, it acts as a disinfectant to protect against pathogens. Produced by the environmentally compatible membrane process, chlorine and downstream chlorine products manufactured by the PCC Group are also used in water treatment and in the petrochemical industry.
The Silicon & Derivatives segment is divided into the business units Quartzite and Silicon Metal. Silicon metal is used, among other things, in the aluminum industry as an alloying element for automotive production purposes and in the chemical industry, e.g. for the production of silicones, silanes, and polysilicon, the basic material employed in the manufacture of the wafers used in solar photovoltaic panels. An appreciable long-term increase in demand is predicted for metallurgical-grade silicon due to the advent of new applications related to climate protection, such as the latest battery technology. The PCC Group uses electricity from 100 % renewable sources for silicon metal production, with the starting material quartzite being extracted by PCC SE in the Group’s own quartzite quarry in Zagórze, Poland.
The Trading & Services segment comprises the two business units Commodity Trading and Services. Its petrochemical and carbon commodities trading portfolio includes chemical raw materials, in particular coke oven by-products such as crude tar and crude benzene. The portfolio of the Services unit encompasses IT Services and the Conventional Energies business areas. The PCC Group’s combined heat and power plant at the Brzeg Dolny chemicals site supplies the production facilities there with electricity and process steam, while also providing large parts of the town with district heating energy.
The Logistics segment comprises the Intermodal Transport and Road Haulage business units. The PCC Group is one of the leading providers of container transport services in Poland. Its logistics network extends from Eastern Europe to the Benelux countries and, via the New Silk Road, to China and other Asian hubs. The PCC Group has five Group-owned container terminals and rail licenses in Poland and Germany. The PCC tanker fleet specializes in the Europe-wide road haulage of liquid chemicals.
The Holding & Projects segment is divided into the two business units, Portfolio Management and Project Development. Entities that are in the planning and construction phase, in particular chemical production facilities, are allocated to this segment. Such investment projects are not assigned to the respective operating segment until after the start of production. This relieves the prospective segment of the burden of project management while also making effective use of the project experience of the Group’s corporate management. The Holding & Projects segment is also responsible for management of our environmentally friendly small hydropower plants in the Renewable Energies business area.
The valuation principles for segment reporting are based on the valuation principles used in the consolidated financial statements. Intra-group / intercompany transactions are generally treated as if they were conducted between third parties. In accordance with IFRS 8, operating segments are defined on the basis of internal reporting on the Group’s business areas whose operating results are regularly reviewed by the chief operating decision-maker for the purposes of allocating resources to the segments and in order to assess their performance. Information reported to the main decision-makers for these purposes relates to the types of products manufactured and / or services provided.
The Surfactants & Derivatives segment comprises the business units Anionic Surfactants, Non-ionic Surfactants, Amphoteric Surfactants (Betaines) and Household and Industrial Cleaners, Detergents and Personal Care Products. Because of their multiple effects in foaming, wetting, emulsifying and cleaning, surfactants are essential ingredients in many products. In toothpastes they generate the cleaning effect and foaming action, while in dishwashing products they ensure that dirt and grease are effectively dislodged from hard surfaces.
The Chlorine & Derivatives segment comprises the business units Chlorine, Chlorine Downstream Products, MCAA, and Phosphorus & Naphthalene Derivatives. Chlorine is not only one of the most widely used basic substances in the chemical industry, it is also an indispensable part of many people’s everyday lives: In a swimming pool, for example, it acts as a disinfectant to protect against pathogens. Produced by the environmentally compatible membrane process, chlorine and downstream chlorine products manufactured by the PCC Group are also used in water treatment and in the petrochemical industry.
The Silicon & Derivatives segment is divided into the business units Quartzite and Silicon Metal. Silicon metal is used, among other things, in the aluminum industry as an alloying element for automotive production purposes and in the chemical industry, e.g. for the production of silicones, silanes, and polysilicon, the basic material employed in the manufacture of the wafers used in solar photovoltaic panels. An appreciable long-term increase in demand is predicted for metallurgical-grade silicon due to the advent of new applications related to climate protection, such as the latest battery technology. The PCC Group uses electricity from 100 % renewable sources for silicon metal production, with the starting material quartzite being extracted by PCC SE in the Group’s own quartzite quarry in Zagórze, Poland.
The Trading & Services segment comprises the two business units Commodity Trading and Services. Its petrochemical and carbon commodities trading portfolio includes chemical raw materials, in particular coke oven by-products such as crude tar and crude benzene. The portfolio of the Services unit encompasses IT Services and the Conventional Energies business areas. The PCC Group’s combined heat and power plant at the Brzeg Dolny chemicals site supplies the production facilities there with electricity and process steam, while also providing large parts of the town with district heating energy.
The Logistics segment comprises the Intermodal Transport and Road Haulage business units. The PCC Group is one of the leading providers of container transport services in Poland. Its logistics network extends from Eastern Europe to the Benelux countries and, via the New Silk Road, to China and other Asian hubs. The PCC Group has five Group-owned container terminals and rail licenses in Poland and Germany. The PCC tanker fleet specializes in the Europe-wide road haulage of liquid chemicals.
The Holding & Projects segment is divided into the two business units, Portfolio Management and Project Development. Entities that are in the planning and construction phase, in particular chemical production facilities, are allocated to this segment. Such investment projects are not assigned to the respective operating segment until after the start of production. This relieves the prospective segment of the burden of project management while also making effective use of the project experience of the Group’s corporate management. The Holding & Projects segment is also responsible for management of our environmentally friendly small hydropower plants in the Renewable Energies business area.
The valuation principles for segment reporting are based on the valuation principles used in the consolidated financial statements. Intra-group / intercompany transactions are generally treated as if they were conducted between third parties. In accordance with IFRS 8, operating segments are defined on the basis of internal reporting on the Group’s business areas whose operating results are regularly reviewed by the chief operating decision-maker for the purposes of allocating resources to the segments and in order to assess their performance. Information reported to the main decision-makers for these purposes relates to the types of products manufactured and / or services provided.
Group sales amounted to € 960.0 million in fiscal 2024, down € 33.6 million or 3.4 % on the previous year’s revenue figure of € 993.6 million. With sales of € 223.7 million, the Surfactants & Derivatives segment was the main revenue generator. Compared to the previous year’s sales of € 206.6 million, this represents an increase of € 17.1 million or 8.3 %. The segment’s share of Group sales increased to 23.3 % (previous year: 20.8 %). The Chlorine & Derivatives segment generated sales of € 209.7 million, down € 65.9 million or 23.9 % on the previous year’s figure of € 275.6 million. Its share of total sales of the PCC Group decreased by 5.9 percentage points to 21.8 % (previous year: 27.7 %). Sales of the Polyols & Derivatives segment amounted
to € 180.8 million, down € 10.3 million or 5.4 % on the prior-year figure of € 191.1 million, with its share of Group sales decreasing to 18.8 % (previous year: 19.2 %). Sales in the Silicon & Derivatives segment amounted to € 85.0 million, an increase of € 13.0 million or 18.1 % year on year (previous year: € 72.0 million). The segment’s share of Group sales amounted to 8.9 % (previous year: 7.2 %). In the Trading & Services segment, revenue fell by € 13.9 million or 11.8 % to € 103.8 million (previous year: € 117.6 million). Its share of total consolidated sales decreased by one percentage point to 10.8 %. The Logistics segment recorded a year-on-year increase in sales of € 26.9 million or 21.0 % to € 154.6 million in fiscal 2024 (previous year: € 127.7 million). The segment’s share of Group sales amounted to 16.1 % (previous year: 12.9 %).
download excelSales by segment
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Property, plant and equipment by segment
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Capital expenditures by segment
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Previous year’s figures by segment for interest and similar income, and interest and similar expenses, are not available.
(18) Regional report
Previous year’s figures by segment for interest and similar income, and interest and similar expenses, are not available.
As part of regular internal and external reporting, the business of
the PCC Group is divided geographically into seven regions (Germany,
Poland, Other EU Member States, Other Europe, USA, Asia and
Other Regions). In fiscal 2024, the Group generated 17.5 % of its sales
with customers in Germany (previous year: 19.5 %), while 39.4 % was
attributable to customers in Poland (previous year: 38.0 %). Overall,
the PCC Group generated 87.1 % of its sales with customers in the
member states of the European Union (previous year: 86.3 %), with
Poland and Germany as the primary markets.
At € 765.1 million (previous year: € 800.2 million), Poland accounted for 79.7 % of Group sales to third parties in 2024, as calculated by company location (previous year: 80.5 %). At € 378.3 million (previous year: € 378.0 million), the figure based on customer location was 39.4 % (previous year: 38.0 %). In Germany, sales decreased from € 193.5 million in the previous year to € 168.4 million in the reporting year, based on customer location. By company location, sales fell from € 80.1 million in the previous year to € 66.6 million in the
reporting year.
At € 765.1 million (previous year: € 800.2 million), Poland accounted for 79.7 % of Group sales to third parties in 2024, as calculated by company location (previous year: 80.5 %). At € 378.3 million (previous year: € 378.0 million), the figure based on customer location was 39.4 % (previous year: 38.0 %). In Germany, sales decreased from € 193.5 million in the previous year to € 168.4 million in the reporting year, based on customer location. By company location, sales fell from € 80.1 million in the previous year to € 66.6 million in the
reporting year.
Sales by region
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Capital expenditures by region
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Investments decreased in comparison to the previous year and totaled
€ 126.5 million (previous year: € 142.5 million). At € 102.2 million
(previous year: € 123.6 million), the largest share of these capital expenditures
in fiscal 2024 was invested in the Poland region. In addition
to the completion of the new ethoxylation plant, investments
were also made in the oxyalkylates facility under construction at the
Brzeg Dolny site. This was accompanied by investment in infrastructure,
for example in the local electricity grid. Investments were also
made in the purchase of additional locomotives, platforms and container
cranes.
