16 34 3.1 Milestones Progroup’s success is based on entrepreneurial courage, a well-devised strategy and clear commitment to growth ____________________________________________________________________________ 8 CON TEN TS Editorial _________________________________________________________________________________________ 3 Outlook Be conscious. Act consciously. _____________________ _ 66 Legal information ________________________________________________ 67 4 3.2 When Industry 4.0 was still science fiction Innovative customer/supplier relationships at Progroup _________________________________________________________________________________________________________________ 14 3.3 Dare to take risks and delight in success Jürgen Heindl on Progroup's consistent growth strategy ____________________________________________________________________________________________________ 16 3.4 “He revolutionised the industry with his vision” Long-standing companions on Jürgen Heindl __________________________________________________________________________________________________________ 22 3.5 Touring the world offroad “Once in a lifetime” time and again ____________________________________ 26 INSPIRING P A S T

The Progroup story is as inspiring and thrilling as a captivating tale from the movies. What makes it so special is that all genres are combined in an absorbing and entertaining motion picture. Starting with a thrilling documentation of the milestones, and a gripping science fiction classic all about Industry 4.0, portraits of a fascinating character and his companions, through to an entertaining road movie recounting the adventure along the fascinating Spice Road.

MILE STONES Progroup’s history has been shaped by a clear vision, great entrepreneurial courage and a well-devised strategy. It is based on a clear commitment to growth and the aspiration to lead the way on innovations and technology. 1991 FOUNDING OF THE COMPANY LAUNCH WITH PASSION, VISION AND COURAGE Start of a success story: Jürgen Heindl founded Prowell and set himself no less a goal than revolutionising the corrugated board market. His strategy was based on two pillars. Firstly, consistently implementing his greenfield strategy, so ensuring that all production facilities and machines were state-of-the-art and built on greenfield sites. And secondly, having consistent links with customers and suppliers. Right from day one, the system that was installed was connected to an online ordering service and was the forerunner to the 4.0. approach that Progroup has today: Jürgen Heindl wanted to manufacture corrugated board sheets – and 8 Inspiring Past 11

2001 CONSTRUCTION OF THE FIRST PAPER MACHINE UNIQUE PAPER PRODUCTION SETS NEW STANDARDS Backward integration as a winning formula: The construc- tion of the first paper machine PM1 and the establishment of the new company Propapier was further evidence of Jürgen Heindl’s entrepreneurial courage and true vision. He recognised early on that he needed to make himself more independent from an ever more volatile paper market. After all, paper accounts for around 70 per cent of the costs of corrugated board production. As ever, Jürgen Heindl did not do things by halves. In Burg near Magdeburg, he constructed what was at the time the world's fastest liner paper machine with a speed of 1,300 to 1,500 metres per minute and an annual capacity of 450,000 tonnes of containerboard. This form of paper production using a closed water cycle, which was unique at the time, enabled Progroup to extend its technological leadership. It set completely new standards when it came to sustainability in the production of containerboard based on recovered paper. Progroup now operates three paper machines. Besides the machine in Burg, there is also one in Eisenhüttenstadt and, since July 2020, in Sandersdorf-Brehna, Saxony Anhalt as well. 10 Inspiring Past 33

STRYKOW TRZCINICA ROKYCANY55 ENTERING THE MARKET IN POLAND IMPORTANT LOCATION IN THE HEART OF EUROPE Another key point in Progroup’s growth story: Although Poland was not the first country in Eastern Europe that Progroup invested in, it has now developed to become one of Progroup’s most important sites outside of Germany. The corrugated sheetfeeder plant in Stryków, which started operating in 2009, was at the time the biggest in Poland and one of the most productive in Europe, today producing up to 170,000 tonnes of corru- gated board with a working width of 3.35 metres and an operating speed of 400 metres per minute. Just in time to mark Progroup's 25th anniversary, Jürgen Heindl established the second production site in south-west Poland: Trzcinica. The emphasis here was on quickly establishing a packaging park II model. This site saw ambitious championing of digitisation and networking with the partner company. The success of this is reflected in the long-standing and extremely successful working relationship with the customer Janmar (see page 42). Energy efficiency and conserving the environment have also played a central role in all considerations here. Along with the site in Rokycany in the Czech Republic, Progroup is thus able to supply corrugated board sheets to the whole of the Eastern European market but also southern Germany and Austria. By supplying the markets in Eastern Europe, the company has also been able to expand its business activities throughout Central Europe. 12 Inspiring Past 2009

WHEN INDUSTRY 4.0 WAS STILL SCIENCE FICTION DIGITAL NETWORKING The foundation of Progroup, known as Prowell at the time, not only changed the system for corrugated board production, but also the customer/supplier relationship. The crucial factor was the consistent networking of machines, processes and planning systems right through to the customers. it like that?” recounts Weilguni. The pair then developed the system by scrutinising and understanding the production processes. The mutual challenge was evidently highly productive – Wepaform became Progroup’s ERP software and Weilguni became the company’s IT manager. He switched to his customer in the Palatinate region in 1996, continued to develop the software and today is Head of Integration Manage- ment. Prokom was developed for the specific integration of customers, and exchanging data between the customer and supplier, for example: There was now transparency over what quantity was being commissioned in what format, when it was being produced and delivered. In 1991, the year the company was founded, an efficient form of company management was really important for Jürgen Heindl. His ERP software was not just available off the shelf; it had to be developed. In the software house which was commissioned to do this, Heindl met Marc Weilguni – and he would go on to play a significant role in developing the Wepaform, Prokom and E-Box tools. Marc Weilguni is the developer of Wepaform, Prokom and E-Box. Initially, the emphasis was on linking together all the machines and pro- cesses in the best way possible and ultimately establishing the commer- cial element. Jürgen Heindl relied on digital networking from day one in this area too. Wepaform was developed following this ambitious approach, other tools were gradually added, and the possibilities for the program expanded. UNDERSTANDING PROCESSES, DEVELOPING SOLUTIONS CUSTOMER #1 HAD BEEN WAITING FOR SOMEONE LIKE JÜRGEN HEINDL ERP: For the project to be as successful as it was, the cooperation between the client and service provider had to be right: “Jürgen Heindl said, ‘This is my vision’. And I wanted to know: Why does he want ABBREVIATION FOR ENTERPRISE RESOURCE PLANNING, IS A TOOL FOR CONTROLLING ALL THE PRODUCTION PROCESSES OF A COMPANY THAT ALSO INCORPORATES CUSTOMERS AND SUPPLIERS. Jan Lichtenberger is customer number 1 at Progroup. When at the start of the 1990s Heindl showed him his pro- duction that was based on optimising benefits, he was thrilled: “What this meant for us in practice was that we could purchase significantly smaller quantities.” But that was just one of the aspects that made the new supplier attractive to him. Another feature was the ability to communicate via an interface with Progroup and send orders digitally. “Previously, this all had to be done by fax and before this even by telex and phone. And all the data then had to be re-entered in the ERP

DARE TO TAKE RISKS IN CONVERSATION WITH JÜRGEN HEINDL Thanks to its long-term, sustainable growth strategy, in just 30 years Progroup has succeeded in becoming a market leader in its segment in Central Europe. Shortly before the change of the generations, founder and CEO Jürgen Heindl reveals how the company plans to operate in the highly competitive business segment of paper and corrugated board manufacturing in the future, and what advice he is giving to his son Maximilian. AND DELIGHT IN SUCCESS Constantly scrutinising your approach, review ing your decisions and then acting decisively. Jürgen Heindl does this every day. His growth strategy is based on reflection, courage and true vision. 16 Inspiring Past

structure and making all the decisions and taking all the actions yourself, teamwork initially means slowing down; but it is also an opportunity for self-reflection. Although my knowledge and experience of markets and the business means I’ve always retained the authority to make decisions, the process is now different. I appre- ciate the input from my colleagues and am really thrilled that my son and successor is such a valuable sparring partner. Looking back: Over the three de cades of your career, what per- centage of the decisions you made do you think were correct or wrong? I would claim that over 90 per cent of the big decisions were correct, other- wise our business model would not have proved its worth in the market for so long. This is because, although I took big risks in founding and estab- lishing the business, before I did so I gave a lot of thought to whether I could really manage these risks. It was existential. You know, if you want to construct a paper factory, a project like this takes five to six years to get off the ground. But you can’t know how the market is going to evolve over this period of time. So you have to be confi- dent about the fundamental decision. Did things sometimes work out differently to what you had planned? Of course. For example, in 2007 we were planning to build the PM2 paper factory in Eisenhüttenstadt including a CHP plant by making an investment of 750 million euros. Then came the financial and economic crisis followed by the euro crisis – they were chal- lenging times. This was a real test of the business model. We learned a great deal back then because we had to make improvements. This made our com- pany stronger overall. To this extent, the crisis challenged us to reconsider existing structures. In hindsight, we benefited from this. 20 Inspiring Past “ What matters is that you’re in the moment and you always devote your full attention to the activity you’re engaged in at the time.” You will soon be stepping back from the operational running of the company. What areas should your successor – your son – focus on? We always have a rolling ten-year plan. So we already know today exactly what we’ll be doing in 2030. There is a strategic logic to this. We do not just make opportunistic investments. Last year, when our industry was booming because of coronavirus, everyone was instinctively investing in expanding capacity. By contrast, we adopt a very strategic approach. For the next gen- eration of manager, it’s incredibly exciting and at the same time chal- lenging to take over the running of a company that has been led and above all shaped by their parents’ genera- tion. It’s always a balancing act to retain the old things that work and at the same time dare to try new things. I’m confident that within our strategy my son will succeed in following his own path and continuing to write our success story with his own style and personal priorities. What advice will you be giving your son Maximilian on how to handle challenges from a business and personal perspective? First and foremost of course, to look after your own health and family. But also to remain true to yourself. What- ever you do should always be done wholeheartedly and with conviction. This makes it easier to back decisions in full. In addition, I think it’s helpful to find a balance. Whether it’s sport, travel or family time – what matters is that you’re in the moment and you always devote your full attention to the activity you’re engaged in at the time. This means you not only expe- rience things in greater depth, but also enjoy quality time. By the way, this is equally true in your work and private life. Do you have your own personal ten-year plan? Once I leave the operational side of the business, I will continue to contribute my expertise on the Supervisory Board. In addition, I will be leading the holding com - pany. It is Progroup’s majority shareholder. It includes other units that support our customers, for example a Customer Academy. With this we are creating a plat- form for our customers that offers opportunities to engage on issues specific to the industry and family- run companies. That doesn’t sound like more leisure time. I reckon in fact I won’t have much more spare time than I did before. We might travel a little more though. And my wife and I definitely want to spend more time with our grand children. Maximilian’s daughter is already delighted and is always saying: When Grandpa stops and Daddy becomes the boss, then Grandpa will have more time for me.

REVOLUTIONISED HE THE INDUSTRY WITH HIS VISION Three long-standing companions of Jürgen Heindl have very different stories to tell about him – what they all unanimously portray is the picture of an entrepreneur who knew exactly what he wanted right from the start, and who implemented this consistently throughout a long managerial career. A portrait in quotations. RDRAINER DIETMANNis a partner at the prestigious Rittershaus law firm and has been Chairman of the Super­visory Board of Progroup AG since 2007. Since the company was founded at the end of 1991, he has shared a close business relationship and friendship with Jürgen Heindl.If you want to appreciate a businessman, the best people to ask are those who worked closely alongside him for many years. One person who very much falls into this category is Rainer Dietmann. He is the long­standing legal adviser and Chairman of the Supervisory Board and over the years has also become a close confidant and good friend of the Progroup CEO. Bernhard Schön has actually known Jürgen Heindl even longer. He was a customer right at the start and is still one to the present day. This business relationship has also grown into a private friendship based on trust and reliability. Jürgen Heindl is also considered to be a good friend by Prof. Dr. Rudolf Wimmer. The respected professor and business consultant has been a highly valued source of advice and discussion partner for many years – not just in business matters. They have all got to know Jürgen Heindl from different perspectives and some of them have followed his career since the company was first founded. All three speak about being on the same wavelength as Jürgen Heindl, they all praise the vision that he showed 30 years ago in identifying a gap in the market which his company filled and then became the market leader. “I don’t know anyone else with such a good sense of how to handle risks,” says Rudolf Wimmer about Jürgen Heindl. At the same time, he calls him “visionary and reflective”, Rainer Dietmann talks about him being the “world champion in networking”, and Bernhard Schön praises his fairness and honesty. It is precisely this combination of an awareness of risk, sound reflection, fairness and networking that makes Progroup the success that it is.HE’S THE WORLD CHAMPION OF NETWORKING.

Jürgen Heindl’s vision has been and still is to change the industry and break the standard business model. He's ab- solutely succeeded in doing this. For example, he developed the packaging parks concept. They provide mediumzsized packaging suppliers with very good opportunities for growth that they would struggle to obtain otherwise. They are the logical consequence of the pressure of costs and Jürgen Heindl and Progroup have revolutionised corrugated board production in Germany and Europe. Otherwise the ² emissions. There is no doubt that suppliers would still be small and quaint and niche players. the need to reduce CO H C U S D S N Y L L A E R L D N I E H T ’ N A C E H A S S E U T R I E . Y V N T L N E G R Ü J S E U L A V R S I A F S A E N O H R O N O I T A T I S E H D N A T S . N O I T A N I T S A R C O R P Our packaging park is a complete success story. We provide 80 per cent of the work for Progroup's plant in Plößberg. We have grown together here as equal partners. This is a very special thing. Progroup caters for 99.9 per cent of our demand. We very rarely procure products that Jürgen Heindl does not manufacture from elsewhere. He told me all about his plans in 1992 shortly before the launch of Prowell, as the company was known at the time. Prowell was in the middle of the construction phase and we were already good friends. So it didn’t take me long to make up my mind – it was clear to me that I would follow him from his previous employer to his own company. We’re on the same wavelength, his ideas excite me: Specialisation benefits both parties. JÜRGEN HEINDL IS NOT MANIPULABLE. SUCH A STRONG PERSONALITY CANNOT BE MANIPULATED. LOTS OF PEOPLE TALK BUT DON’T KNOW WHAT THEY’RE TALKING ABOUT. THIS IS NOT THE CASE WITH JÜRGEN HEINDL. 24 Inspiring Past HE CAN’T STAND HESITATION OR PROCRASTINATION.APNBERNHARD SCHÖN is Managing Director of Liebensteiner Kartonagenwerk GmbH and of Smartbox Pro GmbH. He was one of Progroup's first customers. It is a business relationship that has gradually grown over the years and has also led to a very trusting private affiliation.BS

TOURING THE “ONCE IN A LIFETIME” TIME AND AGAIN What makes a successful trip? For Jürgen Heindl there’s only one answer: It needs to offer everything he values in life – excitement, balance, challenges, recognition, solidarity, foreign cultures, contrasts, openness, humility, simplicity, and satisfaction. After a two-year break enforced by coronavirus, this spring he was finally able to go on another big trip with customers, business partners and employees. In his last active year as CEO of Progroup, he embarked on the final stage of his “Next Story” and “Spice Road” trip. WORLD OFFROAD 26 Inspiring Past

L.H. Dear guys, the bikes are ready, in the moment they came in from south Africa to Arusha 09:23 am T.R. I want the blue one 10:01 am V.H. We got stuck in Zanzibar 12:30 pm T.R. Hello! We have a technical problem with a moped. We’re here. 01:26 pm J.H. We’re coming with the spare bike. Will take about 1 h. 01:34 pm M.D. 3 riders waiting for you guys with the broken bike alongside the road … But how to load the second bike … 02:20 pm T.G. Nothing’s working 😊… 02:51 pm T.G. But still in a good mood 02:53 pm businessman. He chose a quotation by John Steinbeck as the motto for Next Story: “We do not take a trip; a trip takes us.” OVERCOMING DIFFICULTIES TOGETHER Jürgen Heindl was keen to explore the big wide world from an early age. Ever since his childhood, he’s been wants to experience what a country is genuinely like, be open to trying new things, get away from well-trodden paths and take carefully calculated risks – that has always been his mantra in his business decisions as well. START OF A NEW ERA A new era of travel began in 2014 with the Next Story Tour. Jürgen Heindl and his team planned this tour based on the model of the “ Expédition Citroën Centre-Asie”, in which from 1931 to 1932 people crossed Asia in vehicles along the Silk Road for the first time and which is still regarded today as one of the greatest expeditions of the 20th century. The journey on motorbikes and in all-ter- rain vehicles crossed two continents to the place where paper was first made: In three separate stages and over three years in total, the journey took the partici pants from Istanbul to Hong Kong – which is essentially the reverse of the route traditionally taken by goods along the Silk Road. The idea behind this was that Progroup is well-known among its customers and employees for being a leading inno- vator in the paper and corrugated board industry. All along the legendary Silk Road route, the tradition of papermaking right through to state- of-the-art paper factories can be expe- rienced up close. “I always wanted to retrace the origins of paper,” says the 28 Inspiring Past

J.K. Hi cars…how far away from gas stop are u? 11:23 pm J.H. It will take us another 40 mins … Tell us where we can join you for lunch! 11:25 pm J.K. We’re ordering food for everyone; chambo rice and veggies … 12:02 pm J.H. We need to find the right filling station because the recommended one has no Diesel …!… 02:03 pm V.H. Where are you guys? Is there any way we can support you? 02:05 pm journey.” But of course it is not always easy to reconcile so many different characters from different cultures. “We now know which guests will always turn up to the daily briefing a few minutes late,” he smiles. FULLY FOCUSED AT EVERY SECOND The only event in his life that has pre- vented Jürgen Heindl from travelling was the outbreak of the coronavirus pandemic. This is why he was so happy that he was finally able to resume travelling in his last active year as CEO and thus the return trip for the legendary “Next Story Tour” as part of the “Spice Road Tour” could be completed. In May 2022, two years later than planned, a group of 26 set out with six motorbikes and three all-terrain vehicles on the third and final stage of the trip which took them along the Spice Route to South Africa from Arusha in Tanzania to the Cape of Good Hope. As always, the passionate motorcyclist took A.S. It’s been an honor to travel with you guys. I wish you all a pleasant and – most important – safe journey. All the best and cheers! … 5:47 pm J.H. Thanks guys for your great camaraderie and team spirit – it shows, that we can achieve goals together, even if we have to overcome some difficulties. See you soon – latest on 5th of November! 05:56 pm

Alongside a good storyline, a promising film also always needs an impressive lead character to turn it into a blockbuster. Progroup can offer this with Maximilian Heindl. As a creative shaper of the future and a team player, he is very keen that his employees should also be co-creators of change. His ensemble also features long-standing partners such as the renowned consultant Tom Rüsen, Janmar, a giant of the industry in Poland, and the super-heroes of the future: Progroup’s ambitious apprentices.

SUSTAINABLE MANAGEMENT The turn of 2022/2023 will have a special significance for Progroup. And for Maximilian Heindl personally. After a history stretching back 30 years, this will mark not just the start of a new decade for the company. It will also herald a new era with Maximilian Heindl because he is taking over the role of CEO of Progroup AG from his father. He defined his mission some time ago: Building on the strengths of the family company. Openly confronting the challenges of a new age. Actively shaping change together with his employees. Sustainable business practices and social responsibility are now an integral part of modern business management. In the case of family­run companies, they have always been one of the key aspects of how they operate. “From a historical perspective, entre­ preneurship was always a family matter. In this context, responsibility means handing your own company over to the next generation,” says Prof. Tom A. Rüsen. He is the managing 34 Promising Future director of the Witten Institute for Family Businesses and a long­standing companion of Progroup. Among other things, he advises the founding family on how to implement generational change. “Leading and passing on a family business also always means taking on an administrative, overarch­ ing role over time. You need to treat the people that you are entrusted to look after during this time with great care. You need to adopt the same approach with resources and funds. This is the only way to create a solid foundation for the next generation.” EARLY SUCCESSION PLANNING AT ALL LEVELS Transferring responsibility, the suc­ cession process, is a very challenging issue in family companies. “These companies operate according to tradi­ tional models that have become very CHANGE MAKER

concentrating solely on the corrugated board sheets, and extended through to focusing on the Family2Family business,” says Heindl in summarising what makes the company so special. “Continuing to successfully combine this stability and dynamism in the future will be the challenge,” he says in explaining the demanding task which he will take on when he succeeds the company’s founder Jürgen Heindl. What may at first glance appear like a contradiction is not a contradiction to him. On the contrary: Continuity and change are things that are already implemented at Progroup. The compa- ny thinks long-term and consistently champions innovations. Maximilian Heindl’s aspiration is to carry on pursuing this successful business model. To continue down the established path – and yet still make his own mark. He will rely on his own vision and ability to get things done. For him, both of these attributes are essential for managing a company successfully. You need to be visionary and have a clear image of the future. You must regularly ask yourself where you are heading and what you want to achieve in the next ten years. Maximilian Heindl is convinced: “A good plan is not worth much if you have no idea how to implement it.” 36 Promising Future

38 Promising Future

can provide even more support to its customers in the future. Open communication and maintain­ ing the network remain a key topic in internal relations too. Heindl stresses the great importance of transparency and appreciation for successful busi­ ness management: Employees want to know how the company is doing, what plans and goals it has, and what their prospects are. Good communication, dialogue with employees and giving people freedom help to shape the world of work collaboratively. “Today there is an increasing focus on the capabilities that allow us to respond quickly to changes and unforeseen events,” acknowledges Heindl. “Interpersonal skills are as much a part of a person’s core expertise as integrated, strategic thinking.” Here too, time as a factor plays a cru­ cial role for Maximilian Heindl. “We have always offered stability and will continue to do so in the future.” Alongside the focus on values, this is one of the key factors that helps to make Progroup such an attractive employer. At the same time, we want to impress our colleagues, and inspire them to take delight in em­ bracing change.” EVOLUTION FROM CO-WORKER TO CO-CREATOR This change, which is increasingly being seen in modern business management, is confirmed by Prof. Rüsen: “Today's managers have to contend with very different demands to the generations that preceded them. We are seeing a clear move towards post-patriarchal man- agement, away from one central leader at the top of the tree. As assignments become ever more com- plex, much more thought is being given to team structures. Companies rely on group intelligence. Tasks are conceived within teams.” And this has repercussions for the definition of leadership: “Companies tradition- ally used to be organised into profit centres which had their own period earnings. In this case, the divisional managers operate almost like inde- pendent entrepreneurs,” says Rüsen. But this created a silo mentality. “In these structures, everyone just thinks about their own division and loses sight of the overall group. Nowa- days, quality leadership means oper- ating in team structures. This means working together to come up with decisions – and supporting them.” Prof. Rüsen thinks that Progroup is very well prepared for the change at the top. “Jürgen Heindl founded the company. His task 30 years ago was quite different to that of his succes- sor, who will lead the company into the future. They have both worked together very hard over the years to reconfigure the organisation and 40 Promising Future

42 Promising Future

employees From one family entrepreneur to another In 2015, Janmar Centrum processed around 60 million square metres of corrugated board. “At the time, we were deciding on which direction the com- pany should take to develop further,” recalls Gatner. “The volume was so large that the deliveries of corrugated board by truck were becoming too expensive and cumbersome. However, our volume was not big enough for us to produce our own corrugated board.” Gatner was aware of Progroup’s packa- ging park concept and expressed an interest. The decisions were made quickly and with a very short pathway – namely between Jürgen Heindl and him. “The fact that two family entre- preneurs were talking to each other played a major role,” says Gatner. “It was an easy decision for us because a great deal of mutual trust has built up over the years.” The packaging park in Trzcinica started operating on 30 January 2017. For Janmar Centrum, it has since offered valuable benefits and it immediately had a positive impact on the business. “The close cooperation with Progroup has enabled us to secure strong custo- mers,” says Gatner looking back. “For many large industrial enterprises, it is important for their packaging supplier to have its own corrugator machine.” The packaging park fulfils this require- ment: Janmar Centrum has full access to corrugated board production 44 Promising Future Networked, efficient and sustainable: The packaging park of Progroup and Janmar Centrum provides valuable benefits to both partners. Janmar Centrum was founded in 2000 in Trzcinica. The founder Marcin Gatner, born in 1975, is still the managing director of the family-run company today. without needing to operate this itself. At the same time, efficiency is increased and costs are reduced. And the fact that there is no need for trucks to transport goods between the factories also greatly benefits both partners’ environmental footprint. Janmar Centrum’s customers today include both large and small com- panies, mainly in Poland, but also in Germany, the Czech Republic and Scandinavia. The company is proud to supply international brand-name companies that manufacture their goods in Poland, including the Bahlsen bakery group. Marcin Gatner is convinced: “The packaging park is the right decision for growth.” per cent of production goes to Polish customers mill. m² of corrugated board output in 2021

STRONG PARTNER FOR A STABLE SUPPLY CHAIN LOGISTICS AS SUCCESS FACTOR The foundation of Progroup Logistics is a key milestone in the family-run company’s success story. Having its own logistics company allows Progroup to offer its customers and partners the flexibility they require at all times. The key factor to its success is the around 100 employees. They ensure that processes run smoothly. Every move has to be perfectly coordinated. The Profil editorial team spent a day out “on the road”. “I KNOW PRETTY MUCH EVERY ROAD.” “I know pretty much every road,” says Michael Wolter (57). The professional driver has spent 14 years working for Progroup Logistics in Burg. The company is celebrating its 20th anniversary in 2022. Transport is the crucial factor in delivering a stable value chain at Progroup. To secure this, the Logistics team makes a key contribution: Wolter and his colleagues reliably transport recovered paper as the raw material to the paper factories, supply the corrugated 46 Promising Future sheetfeeder plants with the containerboard they need, and deliver the corrugated board end product to the packaging manufacturers. Today Wolter’s itinerary “only” starts at 7 am, two hours later than the day before. His task is to transport corrugated board from Progroup’s PW03 corrugated sheetfeeder plant in Burg to a regular customer in Coswig near Leipzig.

At 8.30 am he hears a beep. Repeatedly. “This is the FleetBoard. This will be the assignment for the colleague on the next shift who will take over the truck in the afternoon,” says Wolter. The driver uses this on­board computer, which is fitted in a similar way to a sat nav, to communicate digitally with the dispatcher in the office who allocates the routes. There’s no need to make phone calls. Wolter will later confirm the assignment by pressing a button and indicate that he’s arrived at today’s destination. The FleetBoard support issues instructions to make it easier for the driver to drive efficiently. FleetBoard also acts as the transport management interface between head office and the driver. Route planning and monitoring, navigation and all of the order management are secured via the built­in telematics solution. Two trucks that were previously travelling behind the Progroup truck approach and gradually overtake. There is a loud beep: The vehicle’s lane assistant is indicating that the vehicle is travelling too close to colleagues. Wolter does not get stressed, either about overtaking manoeuvres or about parked cars on the tight village roads that might make the odd driver break out in a cold sweat. “This calm, relaxed attitude comes with experience,” he says. “And in any case, the modern truck virtually drives itself.” It is kitted out with state­of­the­art telematics, driver assistance systems and other safety features as well as the latest emission standard. “The fleet of vehicles is replaced every three years – this ensures that the very latest standards are met,” says freight forwarding manager Mytyzek. Arrival at the customer’s site. Wolter puts on his safety equipment, climbs out of the cab, rings the bell at goods receipt and registers his arrival. He releases the fasteners on the truck tarpaulin, opens it up and climbs onto the loading area. He then removes the side boards and unbuckles the lashing straps. These actions might look easy, but they require strength. While this is happening, the forklift driver turns up, accepts the delivery note and starts gradually unloading the corrugated board. An hour later, the truck is empty, so Wolter resecures the tarpaulin. The forklift driver hands back to him the signed delivery note. It’s time to enjoy the coffee and a sandwich he’s brought with him. “ THE MODERN TRUCK VIRTUALLY DRIVES ITSELF.” 48 Promising Future

E M B R A C I N G T H E F U T U R E E M B R A C I N G T H E F U T U R E W I T H S U P E R - P O W E R W I T H S U P E R - P O W E R ... how I found my way to Progroup I've always been fascinated by technology. After sitting my school-leaving examination in Landau in 2018, I also completed my year of voluntary social work at my old school and assisted the computer science teacher. He recommended that I should go and listen to a lecture at the university in Karlsruhe. I quickly realised that I’d rather do something practical first, so undertake some training in a technical field. When I then applied to Progroup for an apprenticeship to train as an IT specialist in system integration, I was won over straight away at my first interview. Everything really just felt right, through to the final exam this summer. As a family company, Progroup also very much thinks about the next generations of employees. Giving young people the best possible training to prepare them for bigger assignments to come – this is the mission. At any rate, there are lots of attractive prospects for a long- term future within the company. Three junior recruits give an insight into their career path. ... what I really liked during my training I had and still have a fixed point of contact for any issue that I can contact at any time, and I was also able to visit other sites, for example. My former schoolmates did not have anywhere near as many opportunities at the companies where they did their apprenticeships. But P O L Y G L O T W O M A N C A P T A I N I N Q U I S I T I V E A P P R E N T I C E I N O F F I C E M A N A G E M E N T ... why I see my future career being here I am currently supporting the company assistant, taking on organisational tasks such as the monthly financial statements. I really enjoy this work. What’s more, we are a bit like the good-hearted souls at the plant and a point of contact for many employees. I will soon also be learning all about accounting and purchasing at the site in Landau; I’m already looking forward to this. Progroup has already offered me everything I’ve wanted, which I think is great. For example, I’ve already been able to spend time at the corrugated board plant in England and I could well imagine going abroad again to gain even more international experience. ... what the family-based structures mean to me The Board often drops by, and you notice that Jürgen Heindl and his family are very keen to talk to the employees in person. I think it’s really great to have such close contact with the management. I’m sure this will continue after the generational change and that there are plenty of challenges ahead for me, so I am very positive about the future. S O F I E K O N I N G S O F I E K O N I N G 20 YEARS OLD ... how I ended up at Progroup As a Dutch woman who went to school in Germany, I’ve always been interested in languages. But I really wanted to embark on a commercial career. This is why after leaving school in 2018 I chose to train as a foreign language assistant in a school (English and Spanish). I enjoyed that, but I still wanted to try something new. This is when I came across a job advertisement from Progroup on the internet. When I did some work experience, I felt at home right away. It was clear to me – this was where I want to be. I am now completing an apprenticeship as an office manager through until summer 2023 at the PW05 corrugated sheetfeeder plant in Schüttorf. 50 Promising Future

The success of any film project depends on having a strong, creative crew that really believes in the shared project. This is a given at Progroup. The Progroup movie is a family concern in which Maximilian and Vinzenz Heindl play leading roles. It is also essential to have a breathtaking setting. In this case, it is the Palatinate town of Landau very close to Hambach Castle, the birthplace of democracy in Germany. A successful film also relies on having lots of international workers who work together smoothly and efficiently to make sure the film really is top quality – and young, enthusiastic fans. This combination will ensure that Progroup continues to say: “And Action” for an inspiring future together. 52

PROGROUP IS A FAMILY CONCERN IN CONVERSATION WITH MAXIMILIAN AND VINZENZ HEINDL In an interview, Maximilian and Vinzenz Heindl tell us what role Progroup plays within the family and how important the family is to the company’s success. Progroup is celebrating its 30th anniversary this year. What was your experience as a child of the period around when the company was founded? Your father had many obligations as a young company founder and he must have spent a lot of time travelling as well. How did he like to spend time with you? MAXIMILIAN HEINDL: I used to accom­ pany my father even before Progroup started, and I spent the weekends with him at corrugated sheetfeeder plants. Later on, he took me along with him to the Progroup construction sites. Even as a child, I was keen on technology and always found his work exciting. For me as a child, the formation of the company was an abstract topic. But we were able to experience the growth up close during the visits and opening ceremonies at the plants. VINZENZ HEINDL: I was still very young at the time, but I do remember my father developing his strategies and ideas sitting at his desk at home. VH: We always made the very most of our time together. I recall fantastic ho li- days with hikes and the regular barge trips in France with our father and our uncle. I learned how to play skat back then. We still like to do this today when we spend evenings or holidays together as a family. I've travelled a great deal with my father, and during these trips I had the opportunity to really broaden my mind in a special way. My parents think it is very important to use these trips to think outside the box. This is why I’m still passionate about travelling to foreign countries today. My father rightly calls this a learning journey – it's all about getting to know foreign cultures, experiencing other people’s real lives and thus gaining a greater understanding of other people and your own situation. One very positive memory that I have, for example, is when we went sailing with my father we always took school friends with us who were then just naturally “part of the crew”. MH: When my father is working, he focuses entirely on the job. But when he's with us, all of his energy has always been devoted to his family. The emphasis in particular is on quality family time. So I wouldn’t say that my father was not around. I found the visits we made together to the museums of technology in Speyer and Munich particularly fascinating. This is also where we encountered paper- making. The love of nature that I share with my father was formed at an early age. I still love recalling our 54 Fascinating Group

TAKING THE TIME TO SHARE THE IMPORTANT THINGS IN LIFE, ... shared experiences of being outdoors, for example how we used to build huts and my treehouse or conquer castles. Progroup has grown rapidly right from day one. How did you expe- rience this development as a child and teenager? VH: It was a continuous process. The physically tangible events for me as a child, and for Maximilian too, were the opening ceremonies for the new plants. They’re still great events today, and I love attending them. You can expe­ rience the company growing before your eyes. I have attended all the plant openings. We always loved to cele- brate these occasions together. And 56 Fascinating Group ... ENJOYING PURE NATURE AND THE SPIRIT OF PALATINATE LIFE, ... VINZENZ HEINDL, born in 1990, is Managing Director of Professionals Academy SPO GmbH. The Professionals Academy is a platform for engaging on issues specific to the industry and family-run companies. It is part of JH Holding GmbH, the principal partner of Progroup AG. Vinzenz Heindl studied psychology and philosophy. MA XIMILIAN HEINDL, born in 1983, is Deputy CEO of Progroup AG. At the turn of 2022/2023, he will take over the role of CEO as the second generation of his family. The industrial engineer, who is a family man with two children, joined the company in 2016 as Head of Production and Technology Paper.

VH: For me as a small child, my mother was of course first and foremost my mum. But I’m aware that her commu- nicative and open-minded character has shaped the company. She asks employees how they are and embodies a values system of caring and taking responsibility. MH: Yes, we all share this attitude within the family and are keen to see it applied in the company too. We all have our mother to thank for leading the way. Every year, you spend several days together in the Palatinate Forest. Without any family, just the two of you. How did this tradition come about? VH: It started about eight years ago. I wanted to give my brother a very spe- cial birthday present. So I thought I’d spend some time with him and we’d go hiking together for a few days – in our region, right on our doorstep. “ The emphasis is on enjoying the countryside and chatting. The main focus is on our family, but we do also talk about the family business.” Vinzenz Heindl 58 Fascinating Group MH: This was how we came up with the idea of going hiking together once a year. It's really all about close contact and engaging with each other. How does a trip like this work? Which things are discussed there? VH: Maximilian’s position and family with two children means he has slightly less time than I do, so I’m usually the one who plans the trips. I choose a route and the accommo- dation and we swiftly arrange a date, which is often a weekend. Apart from this, we don't need an itinerary. The emphasis is on enjoying the country- side and chatting. The main focus is on our family, but we do of course also talk about the family business. MH: We mostly talk about our pri- vate lives. But we also give each other advice if we need it. We will listen to each other’s concerns. I’m very keen to continue doing this in the future. We are naturally very different characters; I’m more of a scientist, Vinzenz is more of an arts scholar. The exchanges we have are always beneficial because he presents a different point of view. What advice would you give to young, potential family succes- sors who don’t yet know whether they actually want to work in the company? VH: My advice would be to talk to others who are in a similar situation. You can always benefit from other people’s experiences. MH: That is an important aspect. You should always look to engage with others who are one step ahead of you in their career. And consider the decision you make at an early stage. For example, can I get an insight first, during an internship? I spent many years working at Progroup before and alongside my degree before I finally decided what to do. I’d advise not joining the family company too soon, but first taking the opportunity to gain experience in another field as well. What really matters is that you follow your own path and choose an apprenticeship or degree that you enjoy. Since as a family successor you generally have a managerial position, you should be aware that this role is demanding before you accept it. You should be all the more certain that you are passionate about performing the role. Making a decision out of a sense of duty is wrong. This will not produce a successful outcome. Please complete this sentence. For the next generations of our family, I would like… MH: … them to find their way in life without any restrictions or a miscon- ceived sense of duty in just the same way as my brother and I have been able to. VH: … them to be able to retain their freedom to be and do what they want and have a system of values to back them up. I would like the family to provide a strong backbone and give them the opportunity to progress on their own merits. What do you wish for your brother for the years ahead? VH: That we continue to manage to complement each other and show that we appreciate each other. That we continue to respect our particular position. That we’re able to use our skills to benefit the next generations. MH: We are both actively engaged in the company’s success, albeit in different ways but always with the same aim: To ensure that Progroup continues to thrive and is future- proof. As we complement each other very well with the current set-up, this presents a great opportunity. An opportunity for us as brothers and for the future of Progroup.

MORE THAN A PAYCHECK TRAVEL INCENTIVES An “incentive” is something to motivate or drive people. Measures like this play a major role in a company positioning itself as an attractive employer. Ultimately, every company wants to make itself as appealing as possible to highly coveted skilled workers. Incentive trips are a good tool for not only motivating employees, but also showing them that they are valued. It’s no wonder that Progroup has been offering them for 28 years. NOR WAY Rémy Weigel’s eyes still light up when he recalls the adventures that he and his colleagues have experienced together. “Travelling over a frozen lake on a sled pulled by huskies was a truly extraordinary experience,” recounts the Progroup internal sales clerk. “What is more, on a trip through Norway we helped to construct a hotel out of large blocks of ice. We used power saws to cut them out of the frozen lake first.” Although this took a huge amount of effort, we did it by working together. Similarly impressive experiences were also a feature of the other incentive trips that Progroup CEO Jürgen Heindl organised for his employees from 1994 onwards in order to reward them for the tremendous effort they had put in and motivate them to continue to 60 Fascinating Group Adventure in the snow: A ride on a dog sledge. MO RO CCO Exciting desert trip: Experiencing extremes of nature up close and seeing diverse fauna and flora.

LAKE FLEE SEN EMOTIONAL AND ENDURING TIES And what finer reward could there be than to go on an exciting trip with your colleagues. Incentive trips are therefore not just regarded by Progroup as an effective tool for establishing emo- tional and enduring ties between the company and its employees. Another factor that cannot be underestimated in this context is the fact that the com- pany has a clear system of values and communicates this to its staff. “We generally make sure that we deploy incentives with good sense and pur- pose,” says Mike Ellrich, who is the head of HR support at Progroup. This is because firstly they need to fit with the company’s culture, mindset and value system, but secondly they need to be perceived by the employees as some- thing special. With today’s incentives, it is the individual plants that decide where each trip should go. There are just three indicators to consider: the number of nights away, the costs and the holding of team events that have a positive impact on team spirit. A firm focus on the target: The Progroup team demonstrated its precision during archery. question,” reckons Vogelsang from the Frankfurt School. “Ultimately, it very much depends on the characteristics of each individual employee.” This view is shared by Judith Lehr, who is a consultant at KOFA, the Competence Centre for Securing Skilled Workers. Her main areas of focus include digital collaboration, (virtual) human resources management, and strategic personnel work. “I personally think that praise and any rewards that motivate employees to get out of their comfort zone are extremely important.” Team-building while climbing: Achieving a shared goal with mutual support and great trust. SAXON SWITZERLAND Test of courage: A high-wire act above the cliffs and sea creates a real adrenaline rush. CHALLENGING ESTABLISHED THINKING Among the incentives, the trips are a proven way of showing appreciation and also have a very personal link to Progroup’s founders. However, this is a company that has grown rapidly and will continue to grow. The key thing is to be open to new approaches, to chal- lenge established thinking, and to con- sider which of the existing measures will achieve their aim in the future. Also in relation to the company’s posi- tion as an employer and personnel

You can have wonderful conversations with children. They ask questions that make us adults pause and reflect. This is why Jürgen Heindl is delighted to make time for them. WHAT DID YOU WANT TO BECOME WHEN YOU WERE A CHILD? Thea,฀7฀years฀old As a child, I wanted to become a forest ranger. I loved roaming through the Odenwald mountains with my uncle. I also grew up on a farm. You’re always very close to nature here. DO YOU HAVE CHILDREN YOURSELF? Finn Luca, years old I have two sons and two grandchildren. I’m very proud of my sons and enjoy the close bond that we have with one another. The fact that I’m able to watch my grandchildren growing up is a great thrill and makes me happy. 64 Fascinating Group DO YOU DELIVER THE PARCELS TO SANTA CLAUS? Ophelia, 5 years old Not directly. In our corrugated board plants, we manufacture corrugated board. Our customers then turn this into packaging which may then be used, for example, to transport your Christmas presents to you. But whether Santa Claus will bring them? Who knows.

BE CONSCIOUS. ACT CONSCIOUSLY. As a family company, we very much think about the generations to come. Thinking and acting sustainably is part of our DNA: As the leader on technology and innovation in our industry. As a strong and reliable partner to our customers and employees. As a company that supports social causes. As a manufacturer of recycled products such as containerboard and corrugated board sheets. We are not just interested in short-term commercial success, but are instead focused on the long-term development of the company with a focus on growth. For us. For our children. For all the generations to come. We will therefore be dedicating the next edition of the Progroup magazine Profil to the key topic of “sustainability”. It will be published in September / October 2023. 66

EN Progroup AG Horstring 12 76829 Landau Germany info@progroup.ag www.progroup.ag