Annual Report (ESEF) • Mar 11, 2022
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Download Source FileUntitled 2021 ANNUAL REPORT 2021 2021 ANNUAL REPORT For more information about the added value of Acomo CONTENTS OPERATING COMPANIES Catz International 72 Tovano 74 King Nuts & Raaphorst 76 Delinuts 78 Red River Commodities & Red River Global Ingredients 80 Red River-Van Eck 82 Food Ingredients Service Center Europe (FISCe) 84 SIGCO Warenhandelsgesellschaft 86 Tradin Organic 88 Royal Van Rees Group 90 Snick EuroIngredients 92 ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 3 HISTORY 6 AT A GLANCE 8 KEY DATA 10 CONSOLIDATED FIGURES 11 LETTER FROM THE CEO 12 THE ACOMO GROUP 16 • Group overview 16 • Structure 16 • Financial objectives 17 OUR VALUE CREATION MODEL 18 • What we do 18 • Our mission 18 • Our strategy 18 • Our values 21 • Our value creation model 22 ENVIRONMENT, SOCIAL AND GOVERNANCE 24 • General 24 • EU Taxonomy 26 • Our sustainability strategy 27 • ESG focus areas 27 • ESG foundational themes 28 • ESG performance 30 • ESG initiatives 34 CATZ CHARITY FOUNDATION 37 GOVERNANCE 38 THE BOARD OF DIRECTORS 39 CORPORATE GOVERNANCE 40 • Governance structure 41 • Statement by the Executive Directors 44 • Report of the Non-Executive Directors 44 • Declaration by the Board of Directors 46 RISK MANAGEMENT AND CONTROL 48 REMUNERATION REPORT 56 THE ACOMO SHARE 60 BUSINESS PERFORMANCE 62 • Group 62 • Operating segments 66 FINANCIAL STATEMENTS 94 • Consolidated nancial statements 94 • Company nancial statements 138 OTHER INFORMATION 146 • Appropriation of prot 146 • Independent auditor’s report 147 LIST OF ACRONYMS AND ABBREVIATIONS 158 EXPLANATION OF SOME CONCEPTS AND RATIOS 159 INFORMATION TAKEOVER DIRECTIVE DECREE 160 CONTACT DETAILS 161 Acomo's group companies enhance access to plant-based and natural food products and ingredients through sustainable supply chains. We provide peace of mind by working closely with our partners in food production, processing, and distribution to bridge the needs of customers and suppliers. GROUP ACOMO HISTORY How the global trade of food ingredients changed our everyday diet Many people think the medieval European diet was very limited and bland. That is not entirely true. Even throughout the Middle Ages, exotic spices like saron, cinnamon, cloves, nutmeg, ginger, and sugar reached Europe through Arabic traders. However, their astronomical prices limited their use to only the richest members of the aristocracy. Familiar ingredients In the sixteenth century, the Portuguese started to bring limited quantities of spices and ingredients from the Far East to Europe. The scarcity of these spices and the high value they demanded made them attractive commodities to Dutch merchants, and spices therefore became the primary focus of international trade. These products tended to make up more than half the cargo of every ship returning from the East Indies, with other commonly traded products including tropical lumber, tin, copper, saltpeter, indigo, and many dierent types of textiles. We can nd many familiar ingredients on the cargo lists of the seventeenth century, like the one depicted here, which includes spices that are still widely present in European kitchens, like white pepper, black pepper, nutmeg, and mace. From the handwritten notes next to the printed names and volumes of ingredients, we can derive the revenues associated with each individual commodity. Cargo list from the seventeenth century AMSTERDAM COMMODITIES N.V.6 ANNUAL REPORT 2021 Tefco EuroIngredients joins the Group New name: Acomo, short for Amsterdam Commodities N.V. RCMA is subject to a reverse take-over by Catz International Acomo’s predecessor, N.V. Rubber Cultuur Maat- schappij Amsterdam (RCMA), listed on the Amsterdam stock exchange 1908 1982 2000 Tovano joins the Group as a subsidiary of Catz International 2006 Snick EuroIngredients joins the Group 2009 ANNUAL REPORT 20216 AMSTERDAM COMMODITIES N.V. Democratization As time progressed, the food ingredients and products from the East Indies and the New World became increasingly democratized and widespread in dierent global regions. The spices from the East Indies were initially not only popular for their culinary qualities but were also associated with various medicinal powers. Many of these spices are still widely used in kitchens across the world today. Far from stagnating, the expansion and transformation of the Western diet and cuisine have only intensied since then. Today, consumers have access to a vast range of spices and food ingredients from all over the world, including many of the products traded by the companies in the Acomo Group. Health- conscious consumers are driving the rising popularity of plant-based and organically grown products. Spices also play a crucial role in reducing salt intake and the development of meat alternatives. The future is unpredictable as ever, but one thing we can be sure of is that our tastes will continue to evolve. Illustration of a pepper tree in a set of books in the Dutch National Archives, which contains descriptions of products originating from the East Indies that were traded around 1700. Pepper is part of the portfolio of Catz International. Snick and Tefco EuroIngredients integrated into a single EuroIngredients proposition SIGCO Warenhandels- gesellschaft joins the Group Red River Commodities, Red River-Van Eck, Van Rees Group and King Nuts & Raaphorst join the Group 2014 2015 Container Tea & Commodities joins the Group as a subsidiary of Van Rees Group 2016 Delinuts joins the Group 2017 2019 2020 Catz International celebrates 160 years of trading business 1856 Royal Van Rees Group celebrates 200 years 1819 2010 Tradin Organic joins the Group ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 7 AT A GLANCE >1,200 number of employees 31 nationalities 69% male 31% female 91% of operations GFSI certied 33% of products organic certied >98% plant-based products Tradin Organic became world’s 1st Regenerative Organic Certied cocoa producer Strong performance across all segments and a substantially enhanced ESG prole “The strong, broad foundation of the Group was highlighted by the professionalism of our teams, resulting in an impressive double-digit prot growth in all our traditional segments. Furthermore, we repaid one-sixth of our Tradin Organic acquisition term loan in this rst year well ahead of schedule. The Spices and Nuts segment delivered stellar, record performance, and the newly acquired Tradin Organic substantially contributed to the expansion of the Group in 2021. With respect to Environmental, Social and Governance (ESG), the Company took further steps in all three areas. With the acquisition of Tradin Organic, the ESG prole of the Company was further enhanced.” Allard Goldschmeding Chief Financial Ocer For examples of Acomo’s ESG impact, please refer to the case studies on page 35 and 36. “The strong, broad foundation of the Group was highlighted by the professionalism of our teams, resulting in an impressive double-digit prot growth in all our traditional segments. Furthermore, we repaid one-sixth of our Tradin Organic acquisition term loan in this rst year well ahead of schedule. The Spices and Nuts segment delivered stellar, record performance, and the newly acquired Tradin Organic substantially contributed to the expansion of the Group in Non-nancial highlights ANNUAL REPORT 20218 AMSTERDAM COMMODITIES N.V. 42% solvency ratio ALL Traditional segments achieved double-digit prot growth +93% increase earnings per share (adjusted) €0.60 proposed dividend per share €458M sales growth coming from Tradin Organic €2.10 earnings per share (adjusted) Financial highlights +110% EBITDA growth €105M in EBITDA €1.3B in sales ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 9 Per year (in € millions) Per year (in € millions) Annual average (in € millions) SALES EBITDA NET OPERATING ASSETS 99 107 710 700 52 50 84 85 701 2021 1 1 Including eect of IFRS 16 1 Including eect of IFRS 16 2 Excluding Tradin Organic SOLVENCY Per year 31 December (in €) EQUITY PER SHARE 53.5% 54.2% 7.52 7.85 56.6% 41.1% 8.23 9.74 2017 2018 2019 2020 2021 56 50 707 2017 2018 2019 1 2020 1 2021 1 2017 2018 2019 1 2020 1,2 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 1,254 211 42.2% 12.30 105 SALES EBITDA NET OPERATING ASSETS Per segment 2021 Per segment 2021 Per segment 2021 Tea Spices and Nuts Edible Seeds Food Ingredients Tea Spices and Nuts Edible Seeds Food Ingredients Tea Spices and Nuts Edible Seeds Food Ingredients Organic Ingredients Organic Ingredients Organic Ingredients Per year (in €) EARNINGS PER SHARE (adjusted) 31 December (in € millions) MARKET CAP 1.33 1.26 594 430 1.30 1.09 512 618 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 737 2.10 1% 12% 57% 15% 15% +97% CAGR +26% 4% 40% 7% 22% 27% +110% CAGR +19% 33% 2% 11% 36% 18% +77% CAGR +15% KEY DATA ANNUAL REPORT 202110 AMSTERDAM COMMODITIES N.V. CONSOLIDATED FIGURES (in € millions) 2021 2020 2019 2018 2017 Sales 1,254.4 707.4 701.4 700.2 709.7 Gross prot 170.2 94.7 99.3 89.3 92.3 EBITDA 1 104.8 49.9 55.6 50.4 52.1 EBIT 80.2 39.8 46.7 45.0 46.4 Financial income and expenses (7.1) (2.9) (4.6) (4.0) (3.0) Corporate income tax (19.1) (9.9) (10.0) (9.9) (10.9) Net prot 54.0 27.0 32.1 31.1 32.5 Net working capital (at year-end) 223.1 175.3 102.9 102.5 100.2 Net operating assets (annual average) 1 211.1 107.2 98.9 84.8 83.6 Shareholders’ equity (before nal dividend) 364.3 288.3 202.9 193.5 185.1 Total assets 1 866.8 704.4 358.6 357.2 346.0 Ratios Solvency 42.2% 41.1% 56.6% 54.2% 53.5% RONCE operating companies (excluding goodwill) 16.0% 20.6% 21.2% 21.5% 22.7% Dividend pay-out ratio 32.9% 36.5% 84.5% 79.2% 83.4% Net debt/total equity 0.92 0.95 0.34 0.47 0.42 Key performance indicators (in €) Earnings per share (adjusted) 2.10 1.09 1.30 1.26 1.33 Earnings per share 1.82 1.09 1.30 1.26 1.33 Dividend per share (2021: proposed) 0.60 0.40 1.10 1.00 1.10 Equity per share at year-end 12.30 9.74 8.23 7.85 7.52 Share price at year-end 24.90 20.90 20.75 17.44 24.11 Share price high 25.20 22.00 20.95 25.50 29.36 Share price low 20.10 12.50 16.86 16.28 20.25 Market capitalization as at 31 December (in millions) 737.3 618.3 511.5 429.9 593.6 Net cash ow from operating activities (in millions) (36.4) 35.0 59.8 19.3 50.1 Number of shares outstanding (in thousands) Weighted average 29,598 24,887 24,650 24,638 24,475 At year-end 29,610 29,582 24,652 24,649 24,624 Fully diluted at year-end 29,654 29,586 24,657 24,649 24,650 Exchange rates (against €1) US dollar at year-end 1.137 1.230 1.121 1.147 1.200 % change -7.6% 9.7% -2.3% -4.4% 14.1% Average US dollar 1.183 1.142 1.119 1.181 1.130 % change 3.6% 2.0% -5.2% 4.5% 2.1% 1 Including eect of IFRS 16 as of 2019 ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 11 NEW NON-EXECUTIVE DIRECTOR LETTER FROM THE CEO RESILIENT BUSINESS WITH GROWTH POTENTIAL “In turbulent times, customers rely on Acomo to ensure business continuity with resilient, global networks and value-added services throughout the supply chain. We full these expectations through our teams’ knowledge, experience, capabilities, and cooperation with partners. With the addition of Tradin Organic to the Group, we further diversied our portfolio and are advancing our mission of enhancing access to plant-based and natural food products and ingredients through sustainable supply chains worldwide. I am excited about the direction we are taking.” Kathy Fortmann Chief Executive Ocer Dear shareholders, I am pleased to present to you, on behalf of the Board of Acomo, this report on our nancial year 2021. It has been a challenging time for many companies in our industry, due to the ongoing impact of COVID-19, erratic weather, logistics issues, and rising energy costs. We were in a solid position to weather the storm, and I am proud to be able to share our strong results for the year. In addition, I would like to take this opportunity to introduce myself as Acomo’s CEO. I look forward to telling you a little more about what lies ahead for the Group. Strong consumer demand, resilient companies With the easing of lockdowns and COVID-19-related restrictions in most regions, the economy saw some recovery in 2021, and consumer demand for Acomo’s products was consistently high. On the other hand, higher commodity prices, labour shortages, shipping delays, and rising costs in the global logistics chain presented challenges. Our deep understanding of the market and global networks ensured that many of our companies started 2021 with a strong inventory position, which enabled us to help customers ensure their business continuity and to help with product development to meet changing consumer behaviour and buying patterns. Several of our companies started as family businesses and have retained that close-knit, value-driven culture to this day. In the time leading up to my appointment, and immediately thereafter, I visited Acomo’s group companies, and I was heartened by the drive and loyalty from our teams. That kind of commitment to our companies and their longevity is invaluable to our ability to attract, retain, and develop talent, and this shared culture empowers our employees to personally thrive and contribute to the success of the Group. Thanks to these advantages and capabilities, as well as growing demand for healthy, plant-based foods, several of Acomo’s companies are seeing their best commercial performance in recent history. All segments reported an improved performance relative to last year, and several of our companies outperformed full-year 2020 results by the end of the third quarter. Our companies in the Spices and Nuts segment delivered outstanding results, intensifying the sustained, positive momentum of the last few years with record performances at Catz, Delinuts, King Nuts & Raaphorst, and Tovano. Our Edible Seeds segment has also continued to do well, as did our Tea segment. Our Organic Ingredients segment, bolstered by Acomo’s acquisition of Tradin Organic last year, also performed in line with our expectations, and sales and margins showed positive operational results. Snick EuroIngredients had a particularly strong year with a 33% increase in earnings. As the team continues to transition the portfolio toward more value-added products and solutions, the company is intensifying business with existing clients and attracting new ones. I specically want to highlight a few companies that have improved performance as a result of strategic choices, laying the foundation for future growth. Red River Commodities, our Edible Seeds business in the U.S., returned to protability levels not seen in many years as the result of several key strategic decisions and process optimizations. Royal Van Rees Group implemented bold structural and leadership changes over the past few years, and by tapping into the Group’s team spirit and complementary strengths, this market leader in tea expanded its business and increased capabilities to enable growth in the speciality tea segment. Last, but not least, I also want to mention Delinuts for its outstanding performance and innovation in its marketing approach. This Nuts company’s excellent results were enabled by its strategy to increase focus on category marketing and product positioning in co-creation with retail partners. The acquisition of Qualino in early 2022 expands Delinuts’ footprint in packaged products with in-house production, setting the scene for new collaborative partnerships with clients and an impressive future growth potential. Introduction In September, I joined Acomo as the Group’s CEO. I have spent most of my professional life in the food and agriculture industry, a very conscious choice for me. Food is a profoundly meaningful part of people’s lives: we all eat every day, whether alone or in a wide range of social settings. Food is also an industry where the major cultural shifts of our time play out, including the current transition towards more health-conscious and increasingly plant- based nutrition. ‘Outstanding results and a clear vision for the future’ ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 13 As a vegetarian myself, I naturally embraced the opportunity to lead a company with such a distinctive plant-based focus and a strong organic segment with Tradin Organic. Business and leadership are always about more than the short-term, bottom line; it is my rm conviction that we deliver our best performance when we place ourselves in the service of a cause we personally believe in. That is why I am very excited to steward Acomo’s legacy of capabilities and robust, steady growth, and to make further progress enhancing access to plant- based and natural food products and ingredients through sustainable supply chains. Strategic ambitions for the Group New leadership also means a fresh pair of eyes for Acomo, and a new vision that aligns with its mission. During my time serving as CEO, there are three priorities that I intend to devote particular attention to. The rst of these is an even stronger focus on people and talent. Our Group is quite unique in the sense that each company’s managing director has full prot and loss responsibility. That means that there are many positions within the Group where talented leaders can develop and demonstrate their ability to deliver results. One of my goals is to ensure we take a holistic approach to talent development across the Group and secure its long-term ability to ll key vacancies with proven, experienced candidates. My second focus is collaboration across the Group’s companies. Our shared drive for performance and accountability binds Acomo together, and I see opportunities in critical areas where companies can learn more from each other and leverage one another’s strengths and capabilities. The holding company can play a larger role in facilitating the exchange of knowledge and expertise between our subsidiaries. As executive leader of the Group, I hope to encourage our companies to benet more from intensied collaboration. Last, but not least, is the overarching strategy and direction for the Group. As customers continue to expect more from suppliers, we will build upon our existing capabilities and expertise to meet increasing demand for more innovative, value-added services and solutions. Snick EuroIngredients, Delinuts, Tradin Organic, and Red River Commodities are good examples of companies that are distinctive in this respect, and many of our subsidiaries have untapped potential to leverage further client collaboration and growth in this direction. I will be happy to elaborate and discuss Acomo’s future with you in person at our Annual General Meeting, which will take place on 29 April 2022 at the Hilton Hotel in Rotterdam. More details will be published at a later date. Rotterdam, 10 March 2022 Kathy Fortmann, Chief Executive Ocer ANNUAL REPORT 202114 AMSTERDAM COMMODITIES N.V. Checking of allspice samples at the Catz International oce ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 15 Middenmeer Amsterdam Bodegraven Rotterdam Maasdijk Etten-Leur Ede Toronto Fargo, ND Colby, KS Lubbock, TX Scotts Valley, CA Syke Hamburg Varna Silistra Cairo Addis Ababa Yirgalem Mombasa Blantyre Kenema Dubai Moscow Coonoor Colombo Hanoi Taipei Ho Chi Minh City Jakarta OFFICES/FACILITIES WORLDWIDE 36 OFFICES/FACILITIES 10 Winkler 450 North America Europe Asia Africa GLOBAL WORKFORCE (FTE) > 1,200 500 75 175 IN THE NETHERLANDS Ruddervoorde Cavaillon THE ACOMO GROUP Group overview Amsterdam Commodities N.V. (‘Acomo’ or ‘the Company’) is the holding company of an international group of companies (collectively ‘the Acomo Group’ or ‘the Group’) active in the worldwide sourcing, trading, processing, packaging and distribution of conventional and organic food products and ingredients for the food and beverage industry. The product range comprises more than 600 plant-based conventional and organic products including spices, coconut products, nuts, dried fruits, edible seeds, tea, (organic) cocoa, (organic) coee, edible oils, food products and ingredients. The Group operates in 19 countries and trades with more than 100 countries. Acomo employs more than 1,200 people and has 36 oces and facilities worldwide. Structure Acomo is a public limited liability company listed on the Amsterdam stock exchange (AEX: ACOMO). Acomo is the holding company of the Group. It holds the shares in and has legal control over the Group’s subsidiaries. Acomo manages and nancially controls the Group's investments and assists its subsidiaries in the areas of nance, treasury, internal auditing, risk management, legal, tax, IT, business development, mergers and acquisitions, ESG, HR and other matters. Furthermore, the holding company provides and arranges the Group’s nancing. Large investment decisions require holding authorization. All obligations and legal responsibilities that apply to a listed company, including the preparation of semi-annual and annual reports and maintaining communications with shareholders, potential investors, AFM, Euronext, and other stakeholders, are part of the tasks of the holding company. ANNUAL REPORT 202116 AMSTERDAM COMMODITIES N.V. The holding company is the shareholder of and has legal control over the Group’s subsidiaries. The subsidiaries (see pages 72 to 93) are the operating companies of the Group. They are autonomous entities that perform trading and processing activities in their own name and for their own account, largely autonomously under the responsibility and nancial control of their own management. Specic trading and nancial guidelines and risk limits are in place by operating company, product and activity. More information on corporate governance can be found in the chapter Governance on page 41 and following. The subsidiaries perform the activities of the Group across ve segments: Spices and Nuts: The companies involved in this segment are Catz International, King Nuts & Raaphorst, Delinuts, and Tovano. The product range of this segment consists of tropical products such as pepper, nutmeg, desiccated coconut, shelled and unshelled nuts, dried fruits, dehydrated vegetables, herbs, chocolate, rice crackers, and snack products. The Acomo companies are mainly involved with the sourcing, trading, distributing, cleaning, blending, roasting, salting and packaging. Edible Seeds: The segment Edible Seeds is covered by the Acomo companies Red River Commodities, Red River Global Ingredients, Red River-Van Eck, FISCe, and SIGCO Warenhandel. These companies provide products for human and wildlife consumption, delivered on time and according to specication. Sunower (both in-shell and kernels), poppy, sesame, and other edible seeds are the core products within this segment. Acomo covers nearly the whole supply chain of confectionary sunower, from the selection of hybrids in collaboration with seed companies to the storage, processing, drying, cleaning, roasting, salting, blending, grinding and packaging of both kernels and in-shell seeds. Organic Ingredients: In addition to conventional agricultural products, Acomo oers an extensive range of premium, certied organic food products and ingredients. Acomo company Tradin Organic's portfolio covers more than 230 products across a wide range of categories, including cocoa, coee, fruit and vegetables, edible seeds, nuts and dried fruits, oils, and premium juice. Tea: Royal Van Rees Group has grown into one of the largest tea traders in the world. Through its global network, knowledge, and experience the company sources and supplies customers with their teas of choice. With optimal transport solutions, vendor managed inventories, and blending activities a total service concept is oered to customers. Food Ingredients: This segment is all about avours, functional additives and specialities. The activities in this segment are performed by the Acomo company Snick EuroIngredients. Snick produces and supplies culinary and functional ingredients, wet and dry blends, and spice mixes of the highest quality for food companies in Europe, tailor-made to customers’ specications. Financial objectives Acomo’s primary nancial objective is realizing long-term, sustainable growth of shareholders’ value by fullling the mission of the Company, allowing for consistent dividend pay-outs representing above-market dividend returns. Acomo’s operational and nancial selection criteria are strict, as we do not want to compromise our existing activities, other achievements, or the values of the Group. Among the nancial objectives of the Company and its subsidiaries are: • Achieving an annual net prot of more than 15% of shareholders’ equity in the long term; • Maintaining adequate credit lines to ensure the nancing of our subsidiaries’ activities at all times, regardless of price volatility; • Safeguarding and strengthening our capability to generate future prots by maintaining a strong balance sheet and healthy nancial ratios; and • Maintaining the Group’s consistent dividend policy, paying out a substantial portion of the annual net prot to our shareholders in cash every year. The pay-out ratio is subject to the free cash ow and solvency position of the Group. ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 17 What we do Acomo’s group companies source, trade, process, package and distribute conventional and organic food products and ingredients. Our product range has a clear focus on plant-based, natural and healthy products and comprises more than 600 items, including spices, coconut products, nuts, dried fruits, edible seeds, tea, (organic) cocoa, (organic) coee, edible oils, food products and ingredients. Our companies contract and purchase the products at the source for physical delivery and enrich them with value-added services. Through careful control of food safety, quality standards, and other requirements, we bridge the specic needs of multiple stakeholders and allow them to fully focus on their core activities. In order to optimize our global sourcing, we have regular contacts with growers and farmers and collect various types of information relevant to crops, the environment, and social conditions. We aggregate farmers, oer agricultural extension services, and organize post- harvest activities to facilitate certications, including organic, within our supply chains. This enables us to maintain high quality standards and keep buyers fully informed of market developments and product availability. In collaboration with our suppliers, we make use of innovative techniques to develop new products and promote responsible cultivation methods. We provide growers peace of mind by contracting to buy harvested products that meet our quality standards. We also bridge the entry to the market for small producers by opening our sales and marketing network for them. We help our customers reduce volatility in their end products by providing long-term pricing, meeting their need for price certainty. We also store our customers’ products and provide vendor-managed inventory solutions at multiple destinations. This allows us to ensure quality, secure the proper and timely execution of contracts, reduce price volatility, and holistically manage inventory. In collaboration with our customers, we also develop new products and tailor-made solutions according to their specications. To ensure the quality and safety of products, we maintain extensive communication with farmers and other suppliers, apply quality control programmes, work with certied partners, and continuously invest in our facilities. By bridging the distance between origin and destination of products, we are able to reliably supply high-quality products, on time, according to specications. Our mission Acomo's mission is to enhance access to plant-based and natural food products and ingredients through sustainable supply chains. We do this by working closely with our partners in food production, processing, and distribution. Acomo's keys to success are its strategic pillars and core values as described below. Our strategy Acomo's strategy is founded on ve strategic pillars, visualized by the tree on page 19. Long-term value creation: Acomo creates long-term, sustainable value for our stakeholders by maximizing opportunities and innovation. We seek to facilitate an optimal balance between independent drive for entrepreneurship and accountability on the one hand, and collaboration and synergy on the other. By facilitating the exchange of knowledge between our companies, we promote mutual learning and tap into the Group's collective strengths to improve both nancial and non-nancial results. Plant-based and natural food products and ingredients: Acomo accelerates the protein transition by promoting healthy, safe and natural plant-based food products and ingredients. Health consciousness and environmental awareness are the dominant trends in consumer demand within our target markets today. The vast majority of Acomo's products are plant-based and have many health and nutritional benets. OUR VALUE CREATION MODEL ANNUAL REPORT 202118 AMSTERDAM COMMODITIES N.V. OUR MISSION Our mission is to enhance access to plant-based and natural food products and ingredients through sustainable supply chains. We do this by working closely with our partners in food production, processing, and distribution. FOR THE BENEFIT OF OUR STAKEHOLDERS CUSTOMERS SHAREHOLDERS OUR PEOPLE SUPPLIERS SOCIETY PLANET OUR VALUES ENTREPRENEURSHIP RELIABILITY INTEGRITY ACCOUNTABILITY OUR STRATEGY Responsible & resilient supply chains Engaged & thriving employees L o n g - t e r m v a l u e c r e a t ion Plant-based & natural food products and ingredients Sustainable agriculture ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 19 Responsible and resilient supply chains: Acomo takes responsibility in its supply chains by fostering transparency and resilience and by ensuring compliance with legal and regulatory standards. We also invest in sustainable supply chains by honouring ethical business practices, labour standards, and social and environmental aspects when purchasing products and services. We are a reliable partner to our suppliers and customers. Sustainable agriculture: Acomo supports the protection, resilience and restoration of ecosystems by providing education, supporting innovations, and sourcing certied ingredients. We promote the use and development of sustainable agricultural methods, ensuring attention to biodiversity, soil health, water management, organic practices, and innovation. We work with external certication programmes in several of our segments to ensure sustainable sourcing. Engaged and thriving employees: Acomo recognizes and appreciates that people are our most important asset and that their capabilities, engagement and talent determine our success. We ensure a work environment where people can thrive by attracting, developing, and rewarding employees for their contribution and commitment. Acomo promotes the use of personal development plans and employee satisfaction evaluations in its companies to ensure that every person feels valued and respected. Acomo oers leadership talent early opportunities to demonstrate competence and pursue a well-dened path to future career growth within the Group. CUSTOMERS CONSUMERSDISTRIBUTIONTRADING PROCESSING POST-HARVEST ACOMO’S ROLE IN THE VALUE CHAIN Delivering We deliver high-quality and safe products to our customers in the food and beverage industry around the world. We help our customers by delivering on time and according to specications regardless of price volatility. Adding value In support of our trading activities and to create more options for our partners and ourselves, we provide services such as storage, blending, cleaning, heat treatment, processing and vendor-managed inventory solutions. Sourcing We source natural agricultural products from all over the world. Through our worldwide networks we reliably source the right quality and quantities. We aggregate farmers, oer agricultural extension services and organize post- harvest activities. We help our suppliers to sell their products by providing access to the world market. GROWING INPUT ANNUAL REPORT 202120 AMSTERDAM COMMODITIES N.V. Our values The Acomo Group and its companies observe four core values in their relationships with shareholders, customers, suppliers, and other partners. These values are the cornerstones of how we conduct our business. Entrepreneurship: Acomo's heritage lies with Dutch merchants who ventured across the world to seek new products and open up new markets in the 17th century. Acomo and its companies continue to channel their curiosity and commercial spirit, whilst also adhering to contemporary ideals of socially responsible entrepreneurship. Together with our partners we are continuously exploring new opportunities for improvement and expansion. Reliability: The purpose of Acomo is to bridge the needs of stakeholders within the value chains in which it operates and provide peace of mind to all partners. We maintain the highest standards of quality and food safety and keep buyers fully informed of market developments and product availability. Our philosophy denes the way we do business: always as a reliable and trustworthy partner. Integrity: The Acomo Group treats its business as it treats its products: with respect for integrity. We value honesty and respect, and we comply with all applicable laws. The Acomo Code of Conduct outlines our shared ethical standards for conducting business throughout the world, in alignment with international frameworks and guidelines for sustainable business such as the Organisation for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises. We count on one another to act as stewards of the organization. Accountability: Acomo believes in responsible, long-term growth. We strive for a balance between people, planet and prot. We believe that our food products and ingredients should be sustainably sourced and traceable to their origins, and we pursue accountability across the value chain. Our ESG objectives ensure that ecological sustainability, social responsibility and good governance are embedded throughout the operations of the Acomo companies. Our companies' leadership is accountable for their results, and we maintain straightforward incentives to reward entrepreneurship. Production of food ingredient blends at Snick EuroIngredients ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 21 VALUE CREATION MODEL INTELLECTUAL Our in-depth market knowledge, worldwide sourcing capabilities, and global network help us bridge the needs of our customers. FINANCIAL Our shareholders and banks supply funds that Acomo uses to create long-term value and drive growth. MANUFACTURED We maintain sites for food processing, blending, heat treatment and packaging, and also work with external parties. SOCIAL/ RELATIONSHIP We build valuable long-term relationships with our main stakeholders: employees, shareholders, customers, suppliers, banks, and NGOs. HUMAN We employ talented, skilled and dedicated people with exceptional trading knowledge. >1,200 number of employees (average) 31 nationalities 69% male 31% female 10 processing sites €7.8 million capital expenditures More than 600 agricultural food products 128,560 GJ energy used Stakeholder engagement Catz Charity Foundation €287.6 million net debt (average) €326.3 million shareholders’ equity (average) 200+ years of trading experience 2.6 training programmes per FTE NATURAL RESOURCES We aim for business innovation and more sustainable value chains. LONG-TERM VALUE CREATION On-the-job trainee programmes €1.0 million sales per employee €83.3 million employee benet expenses Skilled employees Exceptional trading knowledge 8.4% EBITDA as % of sales €211.1 million net operating assets €2.10 EPS (adjusted) €10.7 million corporate taxes paid €1.3 billion sales 289,722 MT million volume manufactured >98% plant-based products 33% of products organic certied Long-term relationships with stakeholders Partnership with National Archives € STRATEGY RISKS MISSION GOVERNANCE €72.4 million property, plant and equipment and right-of-use assets (average) 91% of operations GFSI-certied PLANT-BASED AND NATURAL FOOD PRODUCTS AND INGREDIENTS RESPONSIBLE AND RESILIENT SUPPLY CHAINS SUSTAINABLE AGRICULTURE SOCIAL ENVIRONMENT GOVERNANCE ENGAGED AND THRIVING EMPLOYEES CAPITAL INPUT 2021 The value creation model of Acomo, based on the International Integrated Reporting Council framework, gives an overview of how Acomo creates long-term value for its stakeholders. ANNUAL REPORT 202122 AMSTERDAM COMMODITIES N.V. INTELLECTUAL Our in-depth market knowledge, worldwide sourcing capabilities, and global network help us bridge the needs of our customers. FINANCIAL Our shareholders and banks supply funds that Acomo uses to create long-term value and drive growth. MANUFACTURED We maintain sites for food processing, blending, heat treatment and packaging, and also work with external parties. SOCIAL/ RELATIONSHIP We build valuable long-term relationships with our main stakeholders: employees, shareholders, customers, suppliers, banks, and NGOs. HUMAN We employ talented, skilled and dedicated people with exceptional trading knowledge. >1,200 number of employees (average) 31 nationalities 69% male 31% female 10 processing sites €7.8 million capital expenditures More than 600 agricultural food products 128,560 GJ energy used Stakeholder engagement Catz Charity Foundation €287.6 million net debt (average) €326.3 million shareholders’ equity (average) 200+ years of trading experience 2.6 training programmes per FTE NATURAL RESOURCES We aim for business innovation and more sustainable value chains. LONG-TERM VALUE CREATION On-the-job trainee programmes €1.0 million sales per employee €83.3 million employee benet expenses Skilled employees Exceptional trading knowledge 8.4% EBITDA as % of sales €211.1 million net operating assets €2.10 EPS (adjusted) €10.7 million corporate taxes paid €1.3 billion sales 289,722 MT million volume manufactured >98% plant-based products 33% of products organic certied Long-term relationships with stakeholders Partnership with National Archives € STRATEGY RISKS MISSION GOVERNANCE €72.4 million property, plant and equipment and right-of-use assets (average) 91% of operations GFSI-certied PLANT-BASED AND NATURAL FOOD PRODUCTS AND INGREDIENTS RESPONSIBLE AND RESILIENT SUPPLY CHAINS SUSTAINABLE AGRICULTURE SOCIAL ENVIRONMENT GOVERNANCE ENGAGED AND THRIVING EMPLOYEES OUTPUT 2021 ESG AREAS ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 23 General Our road to sustainable growth We are convinced that a balance between people, planet and prot is essential to long-term value creation. As a company operating internationally and working with suppliers in many developing countries, Acomo contributes to accelerating economic and social development in these areas of the world. We play a connecting role in the food value chain, empowering us to build bridges between suppliers and customers and improve sustainability whilst providing value-added solutions. Together with our partners, we invest in business innovation and build more sustainable value chains to achieve our goals of environmental protection, social equity and good governance. Our stakeholder dialogue While Acomo sees opportunities to create broad, positive impact, we also recognize the limitations of a single company in the face of social and environmental challenges. Hence, we seek collaboration with our stakeholders to maximize our impact and realize practical solutions. As an international group of companies operating in various supply chains, we work with a wide range of stakeholders who impact or are impacted by our business. With some of these stakeholders, we have direct and frequent contacts (e.g. employees, shareholders, suppliers, and customers), whilst others are engaged in dialogue on a thematic basis (e.g. governments, industry organizations, NGOs, and experts). We maintain an ongoing dialogue with our stakeholders to understand how they relate to the changing business environment and aect the long-term purpose and strategy of Acomo. The Board is closely involved in these stakeholder dialogues. Alignment with international frameworks, guidelines and standards The Acomo ESG eorts are grounded in our business strategy, conrmed with our stakeholders, and aligned with international frameworks and guidelines for sustainable business. Acomo reports its impact and performance based on the internationally recognized standards of the Global Reporting Initiative (GRI). Acomo complies with the ‘In accordance with’ – Core option. The GRI Content Index is available in the Responsibility section of our website. Sustainability frameworks and guidelines that govern Acomo's ESG eorts include the OECD’s Guidelines for Multinational Enterprises and the United Nations Sustainable Development Goals (SDGs). We contribute to the SDGs in an indirect way and through bridging the needs of various stakeholders. By creating long-term value we contribute to ‘Decent work and economic growth’ (SDG 8). By delivering plant-based and natural food products and ingredients we contribute to ‘Good health and well-being’ (SDG 3). Within the value chain we contribute to ‘No poverty’ (SDG 1), ‘Good health and well-being’ (SDG 3), and ‘Decent work and economic growth’ (SDG 8) by creating responsible and resilient supply chains. Our initiatives and eorts on sustainable agriculture enable ‘Responsible consumption and production’ (SDG 12), ‘Climate action’ (SDG 13), and ‘Life on land’ (SDG 13). In our own operations we contribute to ‘Decent work and economic growth’ (SDG 8) by ensuring a work environment that attracts, develops, rewards and retains highly competent and motivated people. By reducing our environmental footprint we contribute to ‘Aordable and clean energy’ (SDG 7), ‘Responsible consumption and production’ (SDG 12), and ‘Climate action’ (SDG 13). Within the foundational theme Social, we contribute to ‘Good health and well-being’ (SDG 3), and ‘Decent work and economic growth’ (SDG 8) by working on diversity and inclusion. Through our governance approach we contribute to ‘Partnerships for the goals’ (SDG 8). ENVIRONMENT, SOCIAL AND GOVERNANCE ANNUAL REPORT 202124 AMSTERDAM COMMODITIES N.V. Material topics Acomo has collaborated with Sustainalize, a prominent sustainability consulting rm, to identify the ESG topics where Acomo has impact. After extensive research, sixteen material topics were identied and conrmed through a survey and follow-up interviews with our main stakeholders: employees, shareholders, suppliers, customers, nancial institutions, and NGOs. Next, the material topics were plotted in our materiality matrix, contrasting relevance to stakeholders with the level of impact that Acomo has on each material topic. The outcomes of the materiality assessment enable us to further improve the eectiveness of ESG eorts and rene our sustainability strategy, as well as meeting stakeholders’ information needs. MATERIALITY MATRIX MATERIAL TOPICS 1 Product quality & food safety 2 Sustainable agriculture 3 Long-term value creation 4 Product traceability & transparency 5 Employee development & well-being 6 Human rights 7 Responsible corporate governance & ethics 8 Reputation & customer satisfaction 9 Health & nutrition 10 Occupational health & safety 1 1 Greenhouse gas (GHG) emissions 12 Sustainable packaging 13 Diversity & inclusion 14 Food waste management 15 Systemic risk management 16 Local development Relevance for stakeholders Impact of Acomo on economic, environmental and social themes Low High 13 10 8 5 1 4 3 2 12 9 7 6 15 16 14 11 Low High STRATEGIC PILLARS Long-term value creation Plant-based & natural food products and ingredients Responsible & resilient supply chains Sustainable agriculture Engaged & thriving employees ESG foundation ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 25 EU Taxonomy In 2021, Acomo enhanced its ESG strategy to align our own ambition and activities with the expectations of stakeholders. The new ESG strategy ensures alignment with (newly) developed legislation, such as the existing Non-Financial Reporting Directive (NFRD) and the upcoming Corporate Sustainability Reporting Directive (CSRD). The EU Taxonomy Regulation is a common classication system, establishing a list of environmentally sustainable economic activities, which entered into force in July 2020. The EU Taxonomy Regulation should play an important role helping the EU scale up sustainable investment and implement the European Green Deal. The EU Taxonomy Regulation establishes six environmental objectives: • Climate change mitigation; • Climate change adaptation; • Sustainable use and protection of water and marine resources; • Transition to a circular economy; • Pollution prevention and control; and • Protection and restoration of biodiversity and ecosystems. A rst Delegated Act on sustainable activities for climate change adaptation and mitigation objectives was adopted in June 2021. A second Delegated Act for the remaining objectives will be published in 2022. To achieve these objectives, a common language and a clear denition of what is ‘sustainable’ is provided. The results of this classication need to be reported annually on a company- specic basis. In the rst stage, companies must examine whether an activity is described in the Delegated Acts, as only those activities are 'eligible' for the EU Taxonomy. As a second step, an analysis needs to be conducted to determine whether the specied technical screening criteria in the Delegated Acts are ‘aligned’ with the Taxonomy. Alignment indicates whether the eligible activities are actually sustainable. This is planned for reporting year 2022. EU Taxonomy KPIs For the 2021 reporting year, only the share of taxonomy eligible and non-eligible activities contributing to the objectives of climate mitigation or climate adaptation in Revenue, CapEx, and OpEx need to be reported by Acomo. Revenue CapEx OpEx Taxonomy eligible activities (%) 0 4 5 Taxonomy non-eligible activities (%) 100 96 95 Total (x € million) 1,254 3 7 EU Taxonomy - Revenue None of the Group’s revenue-generating activities are as of yet described in the Delegated Acts. Hence, the EU Taxonomy eligible revenue for 2021 is 0%. When the specic economic activities for the Acomo companies are added to the Delegated Acts, the eligibility percentage for the Acomo turnover will increase signicantly. EU Taxonomy - Capital Expenditures (CapEx) Only a small part of the Acomo 2021 investments in the intangible assets, property, plant and equipment are currently described under the activities of the Delegated Acts. These are investments in emission-free and low- emission internal transport equipment and installation of energy ecient lighting in one of the warehouses. The investments in the vehicles and machinery category comprise 44% of the 2021 total, of which 4% qualies as 'eligible'. The other investments made in 2021 are not yet included in the regulations. Nevertheless, Acomo did make several investments to improve the sustainability of its assets and activities over the last years, which include solar systems and LED lighting. EU Taxonomy - Operating Expenses (OpEx) Only a small part of our total operating costs is currently described under the activities of the Taxonomy. According to the Delegated Acts, this should cover direct, non-capitalized costs related to research and development, measures for renovation of buildings, short-term leases, maintenance and repair, and all other direct expenses related to the day-to- day maintenance of tangible xed assets. The total costs of these activities amounted to €7 million in 2021, representing 1% of total operating expenses. Of these costs, 5% relates to assets or processes related to taxonomy-oriented economic activities, among which the lease and maintenance of electric forklifts and the operation of a biomass steam generator. ANNUAL REPORT 202126 AMSTERDAM COMMODITIES N.V. Our sustainability strategy Acomo's mission is to enhance access to plant-based and natural food products and ingredients through sustainable supply chains. Our Company strategy (see page 18) has ve strategic pillars: long-term value creation, plant-based and natural food products and ingredients, responsible and resilient supply chains, sustainable agriculture, and engaged and thriving employees. We have linked the most relevant material topics from the materiality matrix to these strategies. These 'ESG focus areas' are the material topics that Acomo will prioritize in its ESG eorts. The other material topics are termed 'ESG foundational themes', which are often linked to hygiene and compliance factors within Acomo's control. ESG focus areas Strategic pillar: Long-term value creation • Material topic 3: Long-term value creation. Acomo creates long-term, sustainable value for our stakeholders by maximizing opportunities and innovation. We seek to facilitate an optimal balance between independent drive for entrepreneurship and accountability on the one hand and collaboration and synergy on the other. By facilitating the exchange of knowledge between our companies, we promote mutual learning and tap into the Group's collective strengths to achieve both nancial and non-nancial results. Strategic pillar: Plant-based and natural food products and ingredients • Material topic 1: Product quality and food safety. We minimize food safety risks for our customers and consumers through strict control policies in all our facilities. Food safety begins at the farms that grow the products we source, process, and distribute. We therefore work closely with our suppliers to ensure that the products we buy are safe and compliant with relevant regulations. We add value for our customers by investing in equipment to improve the food safety level of microbacterially sensitive products. • Material topic 9: Health and nutrition. Food products have an undeniable impact on society and are closely linked to quality of life and health care. Providing healthy and nutritious food is both a social responsibility and a business consideration, as consumers worldwide are increasingly demanding healthier foods. Safeguard responsible business conduct by acting in line with our Code of Conduct and limiting our own environmental footprint Environment GovernanceSocial L o n g - t e r m v a l u e c r e a t ion Responsible & resilient supply chains Engaged & thriving employees Plant-based & natural food products and ingredients Sustainable agriculture ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 27 Acomo accelerates the protein transition by promoting healthy, safe, and natural plant-based food products and ingredients. We aim to increase transparency regarding the nutritional values of our products whilst further optimizing the health benets of our products. Together with suppliers and customers, we develop product innovations that lead to healthier alternatives and products that are safe for people with allergies. Strategic pillar: Responsible and resilient supply chains • Material topic 4: Product traceability and transparency. Acomo works together with suppliers, customers, NGOs, governments, and other partners towards building supply chains that are transparent, sustainable and resilient. By bridging the needs of suppliers and customers, we have a unique position that enables us to recognize and understand sustainability challenges and opportunities of both parties. Technology is at the top of our agenda, as we rmly believe it can play a transformative role in agriculture. • Material topic 6: Human rights: We source our products from all over the world, including countries with social and environmental issues of concern. Some of the main risks in the food supply chain are related to human rights and biodiversity. Human rights risks are present in the cultivation and farming as well as the post-harvest processing stages of agricultural production. It is our responsibility to honour ethical business practices, labour standards, and social and environmental aspects when purchasing products and services. The Acomo Code of Conduct and Supplier Code outline our shared ethical standards for conducting business. We assess and prioritize social and environmental risks in the supply chains through the execution of due diligence projects. Strategic pillar: Sustainable agriculture • Material topic 2: Sustainable agriculture. Acomo supports the protection, resilience and restoration of ecosystems by providing education, supporting innovations and by sourcing certied ingredients. We promote the use and development of sustainable agricultural methods, ensuring attention to biodiversity, soil health, water management, organic practices and innovation. We work with external certication programmes in several of our segments to ensure sustainable sourcing. Strategic pillar: Engaged and thriving employees • Material topic 5: Employee development and well-being. Acomo recognizes and appreciates that people are our most important asset and that their capabilities, engagement and talent determine our success. We ensure a work environment where people can thrive by attracting, developing and rewarding employees for their contribution and commitment. Acomo promotes the use of personal development plans and employee satisfaction evaluations in its companies to ensure that every person feels valued and respected. Acomo oers leadership talent early opportunities to demonstrate competence and pursue a well-dened path to future career growth within the Group. • Material topic 10: Occupational health and safety. To ensure a healthy and safe work environment for our employees, Acomo companies have developed and implemented a series of measures to ensure compliance with the highest standards. ESG foundational themes Environment • Material topic 11: GHG emissions. We operate in a world undergoing climate change and signicant environmental degradation. Greenhouse gas emissions are an important indicator for measuring the environmental impact. These emissions are categorized into three groups or 'scopes'. Scope 1 covers direct emissions from owned or controlled sources. Scope 2 covers indirect emissions from the generation of purchased electricity, steam, heating and cooling consumed by the reporting company. Scope 3 includes all other indirect emissions that occur in a company’s value chain. Whilst the direct environmental footprint of Acomo companies is relatively small, we make a conscious eort to further reduce it. We measure the energy consumption in our own processing facilities and have created baselines to understand our impact on the environment, to identify energy saving opportunities, and to communicate about improvements. • Material topic 12: Sustainable packaging. Resource scarcity and environmental pollution drive us to improve material eciency. We are determined to explore opportunities to make the packaging of our products more sustainable and limit the use of non-recyclable ANNUAL REPORT 202128 AMSTERDAM COMMODITIES N.V. plastics. We continuously seek to reduce waste and simultaneously improve the separation of waste to enhance recyclability. • Material topic 14: Food waste management. Acomo limits food waste in own operations and throughout the value chain by adhering to strict food safety standards. Our processes are designed to minimize food quality deterioration and contamination. We aim to reduce spillage at the source, often in partnerships within the supply chain. Social • Material topic 13: Diversity and inclusion. We promote a culture of mutual respect with no tolerance for discrimination or harassment. The organization and its people share a responsibility for a work environment that is safe, engaging, inclusive, and conducive to personal and professional growth. Diversity in the workforce is crucial in such an environment. The Acomo Board reports its diversity objectives and results annually in the Corporate Governance statement of the Company’s Annual Report. • Material topic 16: Local development. We actively contribute to local socio-economic development through development, education and stakeholder engagement. Governance • Material topic 7: Responsible corporate governance and ethics. The Acomo Group is committed to conducting its business with honesty, integrity and respect, and complies with all applicable laws. We safeguard responsible business conduct by acting in line with our Code of Conduct, which outlines our shared ethical standards for conducting business throughout the world. We monitor and assess our corporate governance structure to ensure compliance with the Dutch Corporate Governance Code. Our standards and principles align with international frameworks and guidelines for sustainable business such as the OECD Guidelines for Multinational Enterprises and apply to all employees of the Acomo Group worldwide. We count on one another to act as stewards of the organization. In line with the Code of Conduct, Acomo has a whistle-blower procedure that applies for all companies within the Group. This procedure ensures that all employees, interns, and temporary sta working at the Acomo Group have the possibility to condentially report any alleged irregularities. Acomo is subject to taxation in the many countries in which it operates. The tax the Company pays in dierent parts of the world contributes to its wider economic and social impact. Acomo acts in accordance with all applicable laws and always aims to comply with the spirit as well as the letter of the law. Acomo believes public trust in tax systems for companies is essential for social stability and does not use contrived or abnormal tax structures that are intended for tax avoidance. The Company pays an appropriate amount of tax according to where value is created within the normal course of commercial activity. Any transfer pricing is calculated using the arm’s-length principle. Acomo does not use so-called tax havens for tax avoidance. • Material topic 8: Reputation and customer satisfaction. We maintain our solid reputation as a listed company both through our corporate ethics and compliance and through reliable business performance. We foster accountability throughout our organization and give customers the assurance of quality and contract reliability they expect to safeguard their operations. • Material topic 15: Systemic risk management. We manage risks adequately through embedded response mechanisms to mitigate the impact. More details can be found in the chapter Risk Management and Control. ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 29 KPIs – Engaged & thriving employees Indicator 2021 2020 2019 2018 2017 Occupational health and safety 3 % of lost time injuries per FTE 1% 1% <1% <1% <1% Employee training 4 # of training programmes 179 107 115 89 127 # of training programmes per FTE 2.6 1.1 1.4 1.3 1.8 Performance and career development reviews % of employees 90% 76% 72% 73% 59% Employee satisfaction reviews % of employees 21% 32% - - - KPIs – Sustainable agriculture Indicator 2021 2020 2019 2018 2017 Sourcing of sustainable products % organic 33% 3% - - - % of tea certied (RA, UTZ or FT) 1 62% 60% 60% 42% 35% % of coee certied (RA, UTZ or FT) 1 42% - - - - % of cocoa certied (RA or UTZ) 1 8% - - - - % of palm oil certied (RSPO) 2 98% 98% 96% 96% 91% KPIs – Responsible and resilient supply chains Indicator 2021 2020 2019 2018 2017 Compliance suppliers with Code of Conduct % of suppliers 80% 48% 45% 44% 20% Suppliers’ social and environmental responsibility audit % of suppliers 14% 7% - - - KPIs – Long-term value creation Indicator 2021 2020 2019 2018 2017 Earnings per share (adjusted) € 2.10 1.09 1.30 1.26 1.33 KPIs – Plant-based and natural food products and ingredients Indicator 2021 2020 2019 2018 2017 Food safety own operations % of operations GFSI certied 91% 88% 82% 82% 81% Food safety third party operations % of operations GFSI certied 85% 74% 69% 69% 69% Plant-based products % of total volume 98% 98% 98% 98% 96% ESG PERFORMANCE 1 Raw materials level 2 Ingredient level 3 Only processing facilities covered 4 Both external and internal trainings, most trainings have multiple attendees ANNUAL REPORT 202130 AMSTERDAM COMMODITIES N.V. KPIs – Social Indicator 2021 2020 2019 2018 2017 Male to female ratio % male 69% 67% 70% 72% 74% % female 31% 33% 30% 28% 26% Age structure of employees % < 30 year 17% 18% 19% 20% 20% % 30 < 40 year 30% 28% 28% 28% 26% % 40 < 50 year 28% 28% 30% 28% 29% % 50+ year 25% 26% 23% 24% 25% Nationalities of employees # of nationalities 31 20 22 20 18 KPIs – Environment Indicator 2021 2020 2019 2018 2017 Energy consumption GJ 128,560 72,091 78,761 74,125 81,103 % of which renewable energy 3% 5% 4% 3% 1% Energy intensity GJ/MT product 0.44 0.33 0.35 0.32 0.35 Water consumption m 3 47,794 21,096 - - - Water intensity m 3 /MT product 0.16 0.10 - - - Greenhouse gas (GHG) emissions (scope 1 + scope 2) MT CO 2 14,516 9,689 10,100 9,820 10,190 Greenhouse gas (GHG) emissions intensity Kg CO 2 /MT product 50.10 43.98 44.86 42.46 44.54 Business travel & employee commuting (scope 3) MT CO 2 1,251 775 - - - Business travel & employee commuting intensity Kg CO 2 /FTE 1,090 1,101 - - - Total waste MT 2,302 2,117 1,936 2,298 2,230 Waste intensity Kg/MT product 7.94 9.61 8.60 9.94 9.75 Waste separation % of separation 20% 23% 16% 19% 19% Package-to-product ratio Kg primary packaging material/kg product 0.02 0.03 - - - Primary packaging material per type MT plastic 2,651 2,141 - - - MT paper 3,689 3,149 - - - MT metal 71 235 - - - MT glass 1 2 - - - MT mixed 9 8 - - - ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 31 KPIs – Governance Indicator 2021 2020 2019 2018 2017 Business integrity # of substantiated whistle-blower reports 1 2 - - - # of whistle-blower report investigations nalized 2 1 - - - KPIs – Social Indicator 2021 2020 2019 2018 2017 Employee turnover % outow 7% - - - - Workforce composition % permanent 95% - - - - % non-permanent 5% - - - - Long-term value creation – performance Acomo creates long-term sustainable value for its stakeholders by maximizing opportunities and innovation. Acomo and many of its subsidiaries have a long history and have built long-lasting relationships with partners. Through various acquisitions the Group dierentiated its product portfolio, sourcing network, and end markets over the years. Tradin Organic, acquired on 30 December 2020, was successfully integrated into the Group in 2021, contributing to the nancial results for the rst time. With over 50% of sales generated in North America and the rest in Europe and Asia, Tradin Organic adds signicant scale and diversication to Acomo’s core geographies and end markets. As sustainability is inextricably intertwined with the operations of Tradin Organic, the acquisition and integration are consistent with Acomo’s broader ESG strategy. Acomo is therefore well-positioned to serve growing and attractive markets in both conventional and organic plant-based food products and ingredients. Acomo plays an enabling role in value chains and accelerates sustainable food trends, such as those presented by Snick EuroIngredients in its 2021 trend report as published on its website. The Group met its nancial objectives in 2021, allowing continued investment in further value creation in the future. Acomo achieved an annual net prot of more than 15% of shareholders’ equity. It maintained adequate credit lines to ensure the nancing of its subsidiaries’ activities at all times, despite the increasing price levels of last year. By restarting payments of dividend after the acquisition of Tradin Organic, Acomo rearms the Group’s consistent dividend policy. In 2021, Acomo companies supplied customers with food products and ingredients with a total value of €1,254 million. Employees were paid €83.3 million for their services. Banks were paid €33.7 million in interest and loan repayments. Acomo paid €10.7 million in corporate income tax. Plant-based and natural food products and ingredients – performance Quality and food safety management: With the acquisition of Tradin Organic, several processing facilities were added to the Group. All these facilities are FSSC 22000-certied, which conrms that they meet the requirements of global food manufacturers and retailers under a GFSI-recognized food safety management system. The new speciality tea blending facility in North America became operational and was FSSC 22000-certied in 2021. With 91% of the operations GFSI-certied, almost all of the entities within the Acomo Group comply with GFSI-recognized food safety standards. Some companies also improved their audit score, with Snick EuroIngredients even achieving the AA rating for the BRC Global Standard for Food Safety. Last year, we organized the Acomo Quality & Food Safety training programme, after the 2020 edition was cancelled due to COVID-19 restrictions. In this programme, the food safety managers of the Group companies reviewed new regulations and developments and shared best practices within the Group. ANNUAL REPORT 202132 AMSTERDAM COMMODITIES N.V. Healthy and nutritious products: The vast majority (>98%) of the products sourced, traded, processed, packaged, and distributed by the Acomo companies are plant-based and natural, which is associated with many health and nutritional benets. The range of natural food products and ingredients was further expanded by the Tradin Organic portfolio, adding up to a total of more than 600 conventional and organic food products and ingredients. Product groups such as pulses and protein powders are an excellent t for the growing product range of vegetarian and vegan food applications. Last year, Acomo again supported the ReThink Protein student challenge, organized by Wageningen University & Research (WUR) in the Netherlands. In ReThink Protein, students from all over the world were challenged to develop a business idea or prototype that can help provide nine billion people access to sucient protein in a way that is healthy, aordable and sustainable for our planet. Responsible and resilient supply chains – performance Compliance with sustainability criteria within the supply chains of the Acomo companies starts with the Acomo Supplier Code. This Supplier Code is the statement of our expectations regarding business integrity, labour practices, associate health and safety, and environmental management. In 2019, we added a standard reference to the OECD Guidelines for Multinational Enterprises to our Code of Conduct as a starting point for the integration of human rights in our business policies and procedures. The number of suppliers that comply with our Code of Conduct increased signicantly in 2021 as the Acomo companies made the Supplier Code an integral part of the supplier approval procedures. We assess and prioritize social and environmental risks in the supply chains, including supplier questionnaires, audits and execution of due diligence projects encompassing the entire supply chain. The percentage of suppliers audited on social and environmental responsibility (by external parties) was limited in 2021 due to ongoing COVID-19 travel restrictions. Over the next years, Acomo will further develop its environmental and social supply chain due diligence programme, also in light of the upcoming EU legislation on corporate sustainability due diligence throughout global value chains. Sustainable agriculture – performance Acomo aims to build its partners’ capacity to cultivate and produce sustainably. In some product groups, certication programmes are established to protect natural ecosystems from harmful agricultural cultivation and ensure fair social circumstances for farmers and workers. With the acquisition of Tradin Organic, one third of our product portfolio is organic certied. Sustainability is not limited to certication. Examples of other initiatives and eorts implemented over the past year are agroforestry, regenerative agriculture projects, and projects aiming at the reduction of agrochemical usage. Tradin Organic became the world’s rst Regenerative Organic Certied cocoa producer, with a scope of 40,000 acres and over 15,000 farmers, all of whom received training in regenerative organic agriculture. Engaged and thriving employees – performance Training and development: Acomo recognizes the crucial importance of engaged and thriving employees for the success of the Group. In addition to attracting new talent, it is of the utmost importance to develop and retain talent within the Group. Sta across the Group has followed a variety of technical, educational, language and compliance training workshops and programmes in 2021. The number of trainings per employee increased versus previous years, driven in part by the lifting of COVID-19 restrictions during parts of the year. Occupational health and safety: The COVID-19 pandemic continued to aect Acomo companies and their operations in several areas. The Acomo companies limited oce presence and divided sta into smaller teams that could take turns in working at the oce, taking into account hygiene and social distancing measures. The percentage of lost time injuries per employee increased slightly in 2021. Several companies strengthened occupational health and safety systems, and this topic remains at the top of the agenda. Environment – performance Energy, water and GHG emissions: Both the absolute consumption of energy and water as well the intensity ratios based on the production volumes increased for the group companies. This is mainly the result of new energy intensive facilities, such as processing plants, becoming operational. Nevertheless, these facilities did also report on their eorts to improve energy eciency, followed by inspections by the competent authorities. The percentage ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 33 of renewable energy usage also decreased, due to the relatively high amount of natural gas consumed by the Group’s new processing plants. In 2021, investments were made to reduce emissions such as the replacement of gas forklifts by electric forklifts. In addition, energy saving projects were implemented, such as upgrading to LED lighting for one of the locations. Waste, packaging and circularity: In contrast to the increase of energy and water intensity, the waste intensity decreased. The package-to-product ratio also improved. The gures show that our packaging-to-product ratio is rather low and the packaging materials we use are almost exclusively mono-materials. Several projects were completed to reduce the material usage for consumer packaging in the nuts food service and retail segment. Social – performance Diversity and inclusion: The number of nationalities within the Group changed, mainly due to the addition of Tradin Organic. The diversity of the Group increased due to the new activities in several areas of the globe. The diversity of the Board composition also increased with two new female members: Mrs Fortmann joined Acomo as Group CEO, and Mrs Vandeputte joined as a Non-Executive Director, doubling the number of nationalities on the Board. Governance – performance Business integrity: Acomo’s principles for a responsible work environment are articulated in the Acomo Code of Conduct. Misconducts can be reported through Acomo’s whistle-blower procedure, available on the Acomo website. Acomo SPEAK UP! Hotline became operational, enabling reports to be submitted not just by e-mail but now also by phone. All reports made in 2021 were thoroughly examined by Internal Audit and the outcome reported to the Board. Risk management: Acomo has further strengthened its risk management by appointing an Audit Committee, which is responsible for monitoring the integrity and quality of the Company's nancial reporting and internal risk management and control systems. The addition of this committee ensures systematic evaluation of the Company's risk management relating to strategic, nancial, operational, commercial, tax control, and compliance matters of the Group. ESG initiatives The ESG performance of Acomo is reported both quantitatively, through the KPIs, as well as qualitatively. Several initiatives are ongoing within the Group to create ESG impact. On the next pages we highlight two of these iconic ESG initiatives: • Tradin Organic: Sustainable supply chains through regenerative agroforestry; and • Suntein TM : An innovative plant protein with a wide range of applications. These iconic initiatives link to the strategic pillars Sustainable agriculture and Plant-based & natural food products and ingredients. ANNUAL REPORT 202134 AMSTERDAM COMMODITIES N.V. TRADIN ORGANIC: SUSTAINABLE SUPPLY CHAINS THROUGH REGENERATIVE AGROFORESTRY Tradin Organic is a major global player in organic cocoa, sourcing organic cocoa beans from approximately 37,000 smallholder farmers in Sierra Leone. The growing demand for cocoa can provide an impetus for poor farmers to clear plots of rainforests to establish new plantations. In 2021, Tradin Organic began an extensive agroforestry programme in Sierra Leone, working with cocoa farmers to prevent deforestation and replant thousands of trees. In collaboration with its partner EcoTOP, Tradin Organic has established a smart regenerative agroforestry system, helping farmers improve and diversify the yield of their plantations. The system introduces a wider variety of economically benecial crops, such as fruit and timber trees, which also provide shade to the plantations. This mixture of crops facilitates a healthier ecosystem of insects, fungi, animals and plants, reducing vulnerability to diseases while helping farmers diversify their income and boost food security. Karst Kooistra, Sourcing Development Director at Tradin, said: “Regenerative organic agriculture can help combat climate change by storing, or ‘sequestering’, carbon in the soil. Our agroforestry programme is embedded in our broader eorts with partners to monitor and monetize this ecological value in the form of carbon credits. This empowers smallholder farmers to reap additional nancial benet from regenerative agricultural practices.” The agroforestry and regenerative organic trainings will be fully integrated in Tradin’s existing Farmer Field School and Farmer Service Centre model. Over the next few years, Tradin Organic intends to enable the planting of more than 200,000 cocoa trees and 40,000 other trees. ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 35 SUNTEIN TM : AN INNOVATIVE PLANT PROTEIN WITH A WIDE RANGE OF APPLICATIONS In October 2020, Red River Commodities launched the Suntein™ sunower protein ingredient line. Suntein™ Sunower Flour is a partially defatted and milled ingredient boasting 51% protein value. With its mild avor and functional properties, the ingredient is suitable for a wide variety of uses, including bakery, extruded snacks, and plant-based meat, seafood, and dairy alternatives. Suntein™ RTE, a 'ready-to-eat' pasteurized version of the product, was added to the portfolio in 2021, allowing this unique ingredient to be used in protein bars, beverages, and dry mixes as well. Suntein™ is a sustainable, non-GMO alternative to soy, wheat, or other allergenic plant-based proteins. As it is produced without the use of chemical solvents and because the product is partially defatted and has a low moisture content, the shelf life is a minimum of 18 months. The product contains all nine essential amino acids, a neutral sensory prole, along with nutritional properties that complement other plant-based proteins. Suntein™ has proven to be a successful ingredient in ketogenic, allergy- friendly or vegan lifestyle products, meeting a growing consumer demand. The launch of Suntein™ and Suntein™ RTE demonstrates Red River Commodities’ continued commitment to provide innovative, natural food ingredients of the highest quality standards, and further establishes the company as a premiere producer and supplier of value-added sunower products. Plant-Based Protein Top 8 Allergen Free Contains All 9 Essential Amino Acids • M A D E F R O M • S U N F L O W E R K E R N E L S 100 PERCENT ANNUAL REPORT 202136 AMSTERDAM COMMODITIES N.V. The Catz Charity Foundation was founded after the deadly tsunami in 2004 with the objective to channel individual initiatives of Catz International employees and other partners. The foundation focuses on small-scale projects with reliable partners and minimal overhead costs to ensure that all donations maximally benet those who need it. The Catz Charity Foundation supports several local organizations with nancial and material donations. The foundation aims to help vulnerable people in their most basic living conditions, such as shelter, food and education. Blessed Generation, a foundation that provides food, medicine and education to nearly 800 Kenyan children and young adults. A Wilde Ganzen project: training teachers to improve their skills in providing online education to primary and secondary schools in West Java, Indonesia. The Art of Charity foundation’s project Food for life, in which farmers in Malawi are trained in a modern method to grow maize that gives a much larger yield. Stichting Kansarmen Sri Lanka, in a project for clean drinking water and sanitary facilities at 4 schools in Cen- tral and UVA Province of Sri Lanka. A Wilde Ganzen project: training 12 nurses in dialysis care at the Habibie Kidney Hospital in Bandung, Indonesia. The international micronancing foundation Deki, in its work to create and support 17 new agricultural cooperatives involving 374 farmers in Togo. The Leprazending foundation, in providing ten young leprosy patients in India with medical and social care and access to education. Beautiful Kidz Namibia, for the ex- pansion of the Anusa needlework pro- ject. The project includes the purchase of a new embroidery machine and an investment to be able to print T-shirts. A Wilde Ganzen project: supporting the start of new economic activities within semi-permanent refugee camps created by the severe oods and major landslides in Sentani, Indonesia. In 2021 the Catz Charity Foundation was able to support the following: For more information: www.catzcharityfoundation.nl. For donations please transfer your funds to: IBAN NL79ABNA0439501385. The Catz Charity Foundation is a Dutch public benets organization (ANBI registered). CATZ CHARITY FOUNDATION ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 37 NEW NON-EXECUTIVE DIRECTOR GOVERNANCE ADDING VALUE THROUGH NEW FOOD SOLUTIONS "I am honoured to have been asked to join the Acomo Board as a non-executive member. I have a lifelong passion for food and a profound interest in the dierence that sustainable dietary habits can make in meeting the global challenges of climate change and food security. Consequently, it was a natural step to accept this new position at a company with a strong focus on natural and plant-based food ingredients and value-added products. I am condent that, given my 25 years of international management experience in innovation, strategy and business marketing within the European and North American food industry, I can bring value to Acomo. As Acomo’s new Non-Executive Director, I look forward to ensuring continued growth with innovative solutions that add value for our customers in new and creative ways." Victoria Vandeputte Non-Executive Director THE BOARD OF DIRECTORS Kathy Fortmann (1967, f, American) Chief Executive Ocer Executive Director since appointment at the EGM of 15 September 2021. End of current term: 2025. Former President and Executive Leadership Team Member at IFF, FrieslandCampina, and Cargill, former Non-Executive Director Finlay (U.K.) and CARE USA (NGO). Allard Goldschmeding (1964, m, Dutch) Chief Financial Ocer Executive Director since appointment at the AGM of 26 April 2016. End of current term: 2024. Former CFO Pork at VION Food (a.i.), former VP/ regional CFO at KraftHeinz, former Principal Archstone Consulting, former VP Corporate Control at Sara Lee Corp. Bernard Stuivinga 1,2 (1956, m, Dutch) Non-Executive Chairman Non-Executive Chairman since April 2017. Prior to this he served as Chairman of the Supervisory Board from 2002. End of current term: 2022. Attorney-at-law and tax advisor. Yoav Gottesman 2 (1952, m, British) Non-Executive Director Non-Executive Director since April 2017. Prior to this he served as member of the Supervisory Board from 2002. End of current term: 2022. Former director of various companies, predominantly in the commodity and food industry. Private investor in technology and private equity ventures. Machtelt Groothuis 2 (1970, f, Dutch) Non-Executive Director Non-Executive Director since April 2017. Prior to this she served as member of the Supervisory Board from 2013. End of current term: 2023. Entrepreneurial (impact) investor, currently at Rubio Impact Ventures, and boardroom advisor. Jan Niessen 1 (1963, m, Dutch) Non-Executive Director Non-Executive Director since April 2017. Prior to this he served as member of the Supervisory Board from 2011. End of current term: 2023. Managing Director of Mont Cervin Sarl. Victoria Vandeputte 1 (1971, f, Belgian) Non-Executive Director Non-Executive Director since appointment at the EGM of 15 September 2021. End of current term: 2025. Chief Innovation & Marketing Ocer at Diversi Foods and Non-Executive Director at Ackermans & van Haaren, former Global Director Category Management at CSM Bakery Solutions. 1 Audit Committee 2 Remuneration and Selection & Appointment Committee AMSTERDAM COMMODITIES N.V. 39ANNUAL REPORT 2021 NEW NON-EXECUTIVE DIRECTOR CORPORATE GOVERNANCE CORPORATE GOVERNANCE FOR FURTHER GROWTH "Our transformative acquisition of Tradin Organic in the last days of 2020 marked a major growth spurt for Acomo. That acquisition also resulted in a further expansion and internationalization of our shareholder base. The year 2021 was therefore a natural moment to expand our corporate governance to meet their high standards and expectations. We formalized structures within the Board with the installation of the following committees: the Audit Committee, providing additional high-quality oversight over our Company nances; and the Remuneration and Selection & Appointment Committee, which is concerned with the Company policies surrounding remuneration of the Board as well as the selection of new executive and non-executive Board members. We are also re-evaluating our long-term incentive plan to enable the granting of restricted shares. With these steps, Acomo has further professionalized its corporate governance to t its growing stature as a food ingredients company of global prominence." Bernard Stuivinga Non-Executive Chairman Governance structure Introduction Acomo is incorporated and based in the Netherlands. Consequently, its governance structure is based on the requirements of Dutch legislation and the Company’s Articles of Association, complemented by internal policies and procedures. Given the worldwide exposure of Acomo’s businesses, the international context is of vital importance, and international developments are closely monitored. Acomo has always sought to develop its governance in line with the Dutch Corporate Governance Code (‘the Code’, see www.mccg.nl) and international best practices. Any substantial changes in Acomo’s corporate governance structure will be submitted for approval to the Annual General Meeting of Shareholders (‘the AGM’). On 8 December 2016, the Corporate Governance Monitoring Committee published an update to the Code, replacing the previous version (2008). Acomo supports and ensures compliance with the principles and best practice provisions stated in the current Code while maintaining some of its departures from the Code (see page 43). An extensive assessment of the compliance with the individual principles of the Code can be found on the Acomo website. We continue to monitor and assess our corporate governance structure to ensure compliance with the Code, applicable laws and regulations, and relevant developments. Board of Directors The task of the Board is to manage the Company, which includes responsibility for the performance of the Group as well as the implementation of the Company’s role, objectives, and long-term strategy within the risk prole, and taking into account corporate social responsibility aspects that are relevant to the Company. The Board is a one-tier board and the responsibility of the directors is collective, considering their respective roles as executive directors and non-executive directors. The majority of directors are non-executive directors, who essentially have a supervisory role. The non-executive director prole can be found on the Acomo website. The Company currently has two Executive Directors, the Chief Executive Ocer (CEO) and the Chief Financial Ocer (CFO). A list of the current directors, with their dates of appointment and their other major appointments, is set out in the chapter The Board of Directors on page 39. The current Non-Executive Directors of the Board have delegated the operational running of the Group to the CEO and CFO with the exception of the following matters, which are joint Board responsibilities: structural and constitutional matters, corporate governance, approval of dividends, approval of overall strategy for the Company, approval of signicant transactions or arrangements in relation to mergers, acquisitions, joint ventures and disposals, capital expenditure, contracts, litigation, nancing, and pensions. The CEO and CFO report to the Board and are able to delegate any of their powers and discretions. The role of non-executive directors is to supervise the Group activities of executive directors and the general course of aairs of Acomo. Non-executive directors support executive directors with solicited and unsolicited advice. In the fullment of their task, non-executive directors look in the rst place to the interests of the Group, taking into consideration the fair interests of all parties concerned. The supervision of non-executive directors includes the following aspects: • Realization of the Company’s objectives and strategy with attention to the risks related to the Company’s activities, strategy, and consideration for its corporate social responsibility; • Process of nancial reporting; • Observance of laws and regulations; • Sound corporate governance; and • Relations with shareholders. Acomo pays close attention to diversity, including gender diversity, in the proles of new directors of the Board in accordance with section 166, subsection 2 of the Dutch Civil Code. On 1 January 2022, 'the Act' on a balanced ratio of men and women on management and supervisory boards has entered into force. The Act provides for a gender quota (at least 1/3 men and 1/3 women) for the non-executive directors of public limited liability companies listed on a regulated market in the Netherlands; and a self-imposed appropriate and ambitious target for the supervisory board, management board and sub-senior management of large (public) limited liability companies in the Netherlands, with an obligation to draw up a plan and to report on this in their management report and to the Social Economic Council in the Netherlands (SER). ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 41 For Acomo, both the non-executive directors’ quota and the target for the executive board and sub-senior management will apply. Acomo already adheres to the gender quota for the non-executive directors. Acomo will incorporate appropriate target numbers for the Board and sub-senior management in a new diversity policy in 2022. Non-executive directors are appointed for a term of six years with the possibility of re-appointment for consecutive six-year, or shorter, terms. The term is based on the requirement for experience and in-depth expertise in the sourcing, trading, processing, packaging and distribution of conventional and organic food products and ingredients. Reappointment of non- executive directors can take place at the end of each term after careful consideration of their past performance and the adequacy of their prole to the desired composition of the Board. Executive director appointments are for a maximum period of four years with the possibility of re-appointment for consecutive four-year terms, in line with best practice provision 2.2.1 of the Code. In compliance with this best practice provision, the Board of Directors has drawn up a rotation schedule in order to avoid, as much as possible, a situation in which multiple non-executive Board members retire at the same time. The rotation terms are included in The Board of Directors section as part of this report on page 39 and are also available on our corporate website. There has been no event of early retirement of a member of the Board of Directors that would have required Acomo to issue a press release mentioning the reasons for the departure. The Board is the authorized body to adopt resolutions to issue common shares and/or grant rights to acquire common shares up to a maximum of 10% of the issued share capital. The Board is the authorized body to adopt resolutions to restrict or exclude pre-emptive rights in relation to the issue of common shares and/or the granting of rights to acquire common shares. Shares held by board members of the Company on whose board of directors they serve are considered to be long-term investments. In accordance with provision 2.7.5 of the Code, we report that no transactions occurred in 2021 between the Company and legal or natural persons who hold at least 10% of the shares in the Company. Best practice provision 2.8.1 of the Code is not applicable to the Company as there were no takeover events or situations that occurred in 2021. Information following the Takeover Directive Decree is included on page 160. The rules regarding meetings, decision-making and working procedures of the Board of Directors can be found in the Articles of Association and the Board’s Rules of Procedure. Both documents are published on the Company’s website: www.acomo.nl/corporate-governance. Committees of the Board In 2021, Acomo installed an Audit Committee and a Remuneration and Selection & Appointment Committee. The committees have an advisory role based on a mandate from the Board. Only the Board has decision-making power. Each committee reports its deliberations, ndings and recommendations after each meeting to the full Board. The committees operate pursuant to terms of reference set by the Board in accordance with the law and the Code. The terms of reference are available on our website. Audit Committee The Audit Committee undertakes preparatory work for the Board’s decision-making regarding the supervision of the integrity and quality of the company’s nancial reporting and the eectiveness of the Company’s internal risk management and control systems. Among other things, it focuses on monitoring the executive directors of the Board with regard to: I. relations with the internal and external auditors, compliance with their recommendations and following up of comments; II. the funding of the Company; III. the application of information and communication technology by the Company, including risks relating to cyber security; and IV. the Company’s tax policy. The Audit Committee consists of at least two members. All members of the Audit Committee are non-executive directors of the Board. More than half of the members of the committee are independent within the meaning of best practice provision 2.1.8 of the Dutch Corporate Governance Code. ANNUAL REPORT 202142 AMSTERDAM COMMODITIES N.V. Remuneration and Selection & Appointment Committee The Remuneration and Selection & Appointment Committee assists and advises the Board in fullling its responsibilities with respect to determining the Company’s remuneration strategy and principles for directors of the Board, to draft proposals to the Board for the remuneration policy for directors of the Board, as well as the implementation of the remuneration policy for the directors of the Board and to report to stakeholders, through the Company’s Annual Report, on these matters. The committee also periodically assesses the executive directors compensation and participation in benet/incentive plans. The committee has overall responsibility for evaluating and proposing the Acomo Group’s executive director and employee compensation and benet and incentive plans, policies, and programmes. The committee further recommends individuals to the Board for selection and appointment as both executive and non- executive directors of the Board, as well as for selection and appointment of members of the committee. It also reviews the Group’s senior management development to help assure appropriate succession planning in the Company’s executive ranks and oversees Acomo’s activities in the areas of leadership and organisation development. The committee supports the Board in adopting appropriate standards and practices for the Company’s corporate governance structure, and leads the Board in its periodic performance review. Annual General Meeting of Shareholders Acomo’s shareholders meet at least once a year in a General Meeting, which normally takes place in Rotterdam, the Netherlands. When deemed necessary in the interests of the Company, an Extraordinary General Meeting may be convened by resolution of the Board. Important matters that require the approval of the General Meeting of Shareholders are: • Adoption of the annual accounts; • Adoption of prot appropriation and additions to reserves; • Adoption of the proposed dividends; • Remuneration policy of the executive directors of the Board following a proposal by the non-executive directors of the Board; • Remuneration of the non-executive directors of the Board; • Discharge from liability of the executive directors of the Board for their management; • Discharge from liability of the non-executive directors of the Board for their supervision; • Appointment of the external auditor; • Appointment, suspension or dismissal of the members of the Board; and • Adoption of amendments to the Articles of Association on a proposal by the Board. The minutes and the resolutions of the Annual General Meeting are recorded in writing and made available to the shareholders on our website no later than three months after the meeting. During 2021, two General Meetings were held, both as webinars due to COVID-19 restrictions: the Annual General Meeting of shareholders on 22 April 2021 and the Extraordinary General Meeting on 15 September 2021 to obtain shareholders’ approval for the appointment of Mrs Fortmann as CEO and Executive Director and the appointment of Mrs Vandeputte as Non-Executive Director of Acomo. Voting rights Each of Acomo’s ordinary shares is entitled to one vote. There are no voting restrictions, and there is no certication of shares. Shareholders may vote by proxy. The voting rights attached to any company shares held by the Company are suspended as long as they are held in treasury. Resolutions of the General Meeting are adopted by an absolute majority of votes cast, except where Dutch law or Acomo’s Articles of Association provide for a special majority. Departures from the Code Acomo complies with the relevant principles and best practice provisions of the Code, except for the following departures as stated and explained below. Principle 2.2.2 Appointment and reappointment periods – non-executive directors: Considering the requirement for experience and in-depth expertise in the sourcing, trading, processing, packaging and distribution of conventional and organic food products and ingredients, non-executive directors of the Board are appointed for a term of six years or less and no maximum number of terms has been determined. Non-executive directors can be reappointed at the end of each term after careful consideration of their past performance and the adequacy of their prole to the desired composition of the Board. Principle 2.3.7 Vice-chairman of the Board: Considering the size of the Board and the close cooperation of the Board members, the appointment of a Board vice-chairman is not deemed necessary. Hence, the tasks of a Board ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 43 vice-chairman are currently performed by the Non-Executive Directors of the Board collectively. Principle 2.3.10 Company secretary: According to the Code, the Board should be supported by the Company secretary. No Company secretary has been appointed. The Board considers itself adequately equipped to manage the responsibility and procedures of a Company secretary. Where required, outside experts and knowledgeable parties are consulted. Principle 3.1.2 Remuneration policy: With the new CEO, the Company established short-term objectives based on the performance of the Company. Furthermore, a new long-term incentive programme will be introduced and tied to both long-term individual and Company performance targets. For more details, please refer to the Remuneration Report. Statement by the Executive Directors Control and responsibility statement In accordance with best practice 1.4.3 of the Code of December 2016 the CEO and CFO conrm that: • This report provides sucient insights into any failings in the eectiveness of the internal risk management and control systems as set out in the Risk Management and Control section of this report, where no major failings were identied in the 2021 nancial year; • The internal risk management and control systems provide reasonable assurance that the 2021 nancial reporting does not contain any material inaccuracies. The Risk Management and Control section of this annual report provides further details; • Based on the current state of aairs, it is justied that the nancial reporting is prepared on a going concern basis. Compliance with the Code is evident in factors such as Acomo’s strong cash position, the available credit facilities, the Group’s risk management, and the Group’s ability to meet its obligations without substantial restructuring or selling of its assets. For more detailed information, please refer to the Business Performance section of this annual report together with Risk Management as set out in Note 3 of the notes to the Consolidated Financial Statements section of this annual report; • Management has assessed the going concern assumption in relation to COVID-19. Based on the latest available information, management concluded that there is no material uncertainty regarding the Group’s going concern as a consequence of COVID-19; and • This report states those material risks and uncertainties that are relevant to the expectation of Acomo’s continuity for the period of 12 months after the preparation of the report. The Risk Management and Control section of this annual report together with the Business Performance section provide a clear substantiation of the abovementioned statement. Corporate Governance Statement The information required to be included in this Corporate Governance Statement as described in articles 3, 3a and 3b of the Dutch Decree on the contents of Directors’ Report (‘the Decree’) is incorporated and published in the Corporate Governance section of the Acomo website. Report of the Non-Executive Directors This report provides further information on the way the Non-Executive Directors performed their duties in 2021. Board meetings Meetings of the Board are scheduled one year in advance. At least once a year the Group strategy is reviewed by the Board. Besides the regular agenda, the Board receives briengs and updates from key executives and senior management on developments and issues that concern or have an impact on the Group’s business. Further recurring agenda items for Board meetings are updates on nancials, HR, sustainability, internal audit and treasury topics. In its meetings, the Board additionally discusses the further development of the Group’s business activities through acquisitions and investment projects in line with Acomo’s long-term strategy. In addition to the scheduled meetings each year, the Board meets as and when warranted by particular circumstances and engages in informal discussions. ANNUAL REPORT 202144 AMSTERDAM COMMODITIES N.V. To ensure that the Board has an in-depth understanding of the Group’s business and activities, members of the Board visit the group companies regularly. Personal information Personal information about each Non-Executive Director, as required in principle 2.1.2 of the Code, can be found in chapter The Board of Directors on page 39. Independence The Board currently considers all Non-Executive Directors to be independent of Acomo as dened in the Code, except for Mr Niessen, since he indirectly owns more than 10% of Acomo shares. However, the Board has ascertained that Mr Niessen in fact acts critically and independently. Trading experience and expertise of the members of the Board are crucial for the eective functioning of the Board. The Company believes that maintaining continuity in its Board is fundamental to delivering long-term shareholder value. Evaluation accountability Every year, the Board evaluates its performance as a whole as well as that of its individual members and the functioning of the auditor. This review is conducted in the absence of executive directors, through collective and individual discussions between the Chairman and non- executive directors. In the opinion of the Board, the functioning of the Board as a whole and of its individual members as well as the functioning of the auditor were satisfactory in the light of the current structure, size and strategy of the Company. Following the evaluation, the Board proposes to the Annual Meeting of Shareholders to reappoint the auditor. Meetings of the committees Audit Committee The Audit Committee was installed in the fourth quarter of 2021 and met once in December. The composition of the Audit Committee is as follows: Mr Niessen (chairman), Mr Stuivinga and Mrs Vandeputte. In general, all meetings are attended by the CFO, Internal Audit manager, Group controller and the external auditor, PwC. The CEO attends the Audit Committee meetings when the half-year and full- year results are discussed. In 2021, the Audit Committee discussed reports from the Internal Audit function and the external auditor, including PwC’s audit plan and PwC’s interim ndings. The Audit Committee receives and discusses updates on integrity issues (including the fraud & whistle-blower report), claims and litigation, compliance, and any actions taken by management, if applicable. No material fraud-related incidents were reported in 2021. The external audit fees were discussed and approved. Remuneration and Selection & Appointment Committee The Remuneration and Selection & Appointment Committee was installed in the fourth quarter of 2021. The composition of the Remuneration and Selection & Appointment Committee is as follows: Mr Gottesman and Mrs Groothuis. There were two meetings scheduled in 2021 which were attended by both members. Since February 2022, Mr Stuivinga is a member of the Remuneration and Selection & Appointment Committee. Attendance All Non-Executive and Executive Directors were present at the 13 formal meetings held in 2021, except for one Board member for one call. The Board also convened without the presence of the Executive Directors, either before or after each meeting. 2021 Physical Board meetings Calls and virtual Board meetings Audit Committee Remuneration and Selection & Appointment Committee Stuivinga 4/4 9/9 1/1 Gottesman 4/4 9/9 2/2 Groothuis 4/4 8/9 2/2 Niessen 4/4 9/9 1/1 Vandeputte 1 2/2 2/2 1/1 1 Mrs Vandeputte was appointed on 15 September 2021 and attended all meetings held in 2021 from that date ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 45 Internal Audit function The Board of Directors regularly obtains input from the Internal Audit function on the adequacy of the risk management process and the eectiveness of internal controls in place to manage and mitigate the key risks. Certain elements also require continuous reporting to be available. The Group risk prole is taken into account when establishing the strategy and Internal Audit plan. During the reporting year, the Board of Directors received regular updates on work performed by the Internal Audit function (including whistle-blower reporting) and was kept up to date on the follow-up to the recommendations made by Internal Audit. Declaration by the Board of Directors In accordance with the Dutch Financial Supervision Act, section 5.25c, the Board of Directors declares that, to the best of its knowledge: • The nancial statements for 2021 provide, in accordance with IFRS as endorsed by the EU, a true and fair view of the consolidated assets, liabilities and nancial position as at 31 December 2021, and of the 2021 consolidated statement of income of Amsterdam Commodities N.V.; and • The annual report provides a true and fair view of the situation as at 31 December 2021 and the state of aairs during the nancial year 2021, together with a description of the principal risks faced by the Group. Rotterdam, 10 March 2022 The Board of Directors, K.L. Fortmann, Chief Executive Ocer A.W. Goldschmeding, Chief Financial Ocer B.H. Stuivinga, Non-Executive Chairman Y. Gottesman, Non-Executive Director M.E. Groothuis, Non-Executive Director J.G.H.M. Niessen, Non-Executive Director V. Vandeputte, Non-Executive Director ANNUAL REPORT 202146 AMSTERDAM COMMODITIES N.V. Raw material stock at the Red River-Van Eck warehouse ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 47 RISK MANAGEMENT AND CONTROL There were no major failings in the internal risk management and control systems as observed in the nancial year, nor were any signicant changes made to these systems or any major improvements planned. Reviews of the internal risk management and control systems were discussed with the Board of Directors on a quarterly basis. Internal Audit The Internal Audit function monitors the maintenance and eectiveness of the internal control framework and risk management relating to strategic, nancial, operational, commercial, tax control, and compliance matters of the Group. It employs a systematic approach that is supported by a risk identication and management process. The role and functioning of the Internal Audit function were regularly discussed and the internal audit plan for the reporting year was approved by the Board of Directors. This plan covered the key focus and key risk areas of the Group’s business and business developments, new projects/programmes, nancial performance and the geographical spread of Acomo oces, including compliance matters. The Internal Audit function cooperates and aligns closely with the external auditor. In consultation with senior management of the Group and in accordance with the considerations noted above, the Internal Audit function selects the areas of the Group to be audited during a reporting year. The Internal Audit function reports to the Board of Directors, has a direct reporting line to the Chairman of the Board, and is present at the Audit Committee meetings of the Board. Risk appetite Acomo’s willingness to assume risks and uncertainties (the risk appetite) is dierent for each risk category. The level of the Company’s risk appetite gives guidance as to whether Acomo should take measures to control such uncertainties. The risk overview table shows the risk appetite based on the expected impact on the Group’s achievement of its strategic, nancial and operational objectives if one or more of the main risks and uncertainties were to materialize. Introduction Risk management and control within the Group is carried out on the basis of procedures that have been approved by the Board. The Group’s overall risk management focuses primarily on the unpredictability of product price levels and nancial markets and is aimed at minimizing the potential impact of negative market developments on Acomo’s nancial position and results. Identifying, evaluating and hedging risks are primarily the responsibility of the operating companies. The Board and the operating companies’ management apply procedures that cover specic risk areas including exchange rate risks related to foreign currency, interest rate and credit risk exposure, liquidity management, and the use of nancial instruments such as derivatives. The most important risks arising from the Group’s trading activities and the Group’s risk management and control systems are described in this annual report. However, this description is not exhaustive and risk management and control systems do not oer an absolute guarantee against future losses or mistakes. The current assessment of Acomo’s risks, according to exposure and mitigating factors, is detailed on the following pages. To the extent that any of these risks materialize, they may aect the Group’s current and future business and prospects, nancial position, liquidity, asset values, growth potential, reputation and sustainable development (including the impact on food safety, the environment and aspects of social responsibility), among other matters. The diversication of Acomo’s food products and ingredients portfolio, geographies, currencies, assets and liabilities is a source of mitigation for many of the risks the Company faces. In addition, through Acomo’s governance processes and its proactive management approach, the Company seeks to mitigate the impact of certain risks should they materialize. In particular: • The Group’s nance policy requires Acomo to maintain sucient cash and cash equivalents and other sources of committed funding available to meet anticipated and unanticipated funding needs. • Acomo makes use of credit enhancement products, such as letters of credit, insurance policies and bank guarantees, and imposes limits on open accounts extended. ANNUAL REPORT 202148 AMSTERDAM COMMODITIES N.V. Risk impact ● Minor ● Moderate ● Major ● Severe Indicates change in 2021 EXTERNAL RISKS 1 ● Fluctuations in the supply, demand, or prices of commodities 2 ● Fluctuations in currency exchange rates 3 ● Agricultural developments 4 ● Sourcing, freight, storage, infrastructure and logistics 5 ● Geopolitical risks 6 ● Liquidity risks 7 ● Government – laws and regulations BUSINESS RISKS 8 ● Sustainability of our strategy 9 ● Increased competition and vertical integration 10 ● Inability to attract, develop and retain (trading) sta 11 ● Cyber risks 12 ● Fraud, corruption and bribery risks 13 ● Product integrity and certication risks 14 ● Acquisition and integration risks ESG RISKS 15 ● Climate change 16 ● Human rights 17 ● Food safety and recall risks 18 ● Health, safety and environmental risks Group risk prole Below is an overview of the risks that Acomo has identied as most relevant to the achievement of its strategy. The sequence of risks does not reect an order of importance, vulnerability or materiality. This overview is not exhaustive and should be considered in connection with forward looking statements. There may be risks not yet known to the Group or which are currently not deemed to be material. Nor can it be guaranteed that the activities will not be (materially) aected by one or more of the risk factors described on the following pages. Risk category Category description Risk appetite Strategic risk Risk relating to prospective earnings and capital arising from strategic changes in the business environment and from adverse strategic business decisions Moderate Operational risk Risk relating to current operational and nancial performance and capital arising from inadequate or failed internal processes, people and systems or external events Low to moderate Financial risk Risk relating to nancial loss due to the nancial structure, cash ows and nancial instruments of the business, which may impair its ability to provide an adequate return Low Compliance risk Risk of non-compliance with relevant laws and regulations (including food safety), internal policies and procedures Low Minor Moderate Major Severe Impact Unlikely Possible Likely Almost certain Probability 6 8 18 14 15 13 10 3 16 1 9 5 2 7 12 4 11 9 17 2021 OVERVIEW OF RISKS AND UNCERTAINTIES ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 49 Risk description Risk appetite and mitigating factors External risks 1. Fluctuations in the supply, demand, or prices of commodities Risk movement in 2021: increase Price volatility, both long-term and short-term, of the various food products, depending on supply and demand. Long- term or short-term price volatility, in terms of both scale and speed, has a direct impact on the value of the subsidiaries’ product positions (long or short). Counterparty risk and price uctuations also aect the behaviour of contract counter- parties, particularly with regard to the correct execution of signed, but not yet delivered contracts. • Diversication of purchases across many countries of origin and reliable suppliers • Long-term relations with suppliers and customers • Diversication of the product range • Diversication of markets served • Research of the solvency and/or the credit risk of customers • Credit limit management • Trading guidelines for each company and daily internal control of these, aimed at limiting positioning risks (overall and per product) and with regard to countries, suppliers and customers 2. Fluctuations in currency exchange rates Risk movement in 2021: stable Particularly uctuations of the US dollar, in which most of the world’s commodities are traded. The vast majority of our purchase transactions are denominated in US dollars, while operating costs are mainly in euros, the currency of which uctuates against the US dollar. • Hedging contracts, such as currency exchange contracts 3. Agricultural developments Risk movement in 2021: stable Agricultural developments, including weather conditions, harvests, long-term planting cycles and so on, may aect the availability, quantity and quality of the products. • Up-to-date and complete market information • Diversication of sourcing activities across many countries of origin and suppliers • Diversication of the product range Changes in principal risks The principal risks have remained the same, except for the categories ‘uctuations in the supply, demand, or prices of commodities’, ‘sourcing, freight, storage, infrastructure and logistics’, and ‘inability to attract, develop and retain (trading) sta’. The probability and severity of impact for these categories of risk have increased mainly due to operational and logistic disruptions in some supply chains as the result of COVID-19 and the continuing scarcity on the labour market. The risks as dened in 2021 relate largely to the same topics as those identied in the previous years. Early 2022, material developments impacted the geopolitical risks and increase the likelihood to 'almost certain' in the matrix. ANNUAL REPORT 202150 AMSTERDAM COMMODITIES N.V. Risk description Risk appetite and mitigating factors External risks 4. Sourcing, freight, storage, infrastructure and logistics Risk movement in 2021: increase Logistical factors relating to the availability and cost of transport and storage capacity. Increases in the costs of freight, storage, infrastructure and logistics support, or limitations or interruptions in the supply chain (including any disruptions, refusals or inabilities to supply) may adversely aect our business. • Long-term contracts with suppliers, customers and logistic service providers • Supplier Code 5. Geopolitical risks Risk movement in 2021: stable We operate in a number of geographic regions and countries, some of which are categorized as developing, complex or having unstable political or social climates. As a result, we are exposed to a wide range of political, economic, regulatory and tax environments. Some countries with more stable political environments may nevertheless change policies and laws, which can aect both the availability of products and the reliability of supply. We have no control over changes in policies, laws and taxes. • Maintaining a dialogue with authorities • Group-wide Acomo Code of Conduct • Keeping informed of new regulations and legal requirements, and proactively anticipating changes 6. Liquidity risks Risk movement in 2021: stable Availability of nancing and interest rate developments. Failure to access funds (liquidity) would severely limit our ability to engage in desired activities. While we adjust our minimum internal liquidity threshold from time to time in response to changes in market conditions, this minimum internal liquidity target may be breached due to circumstances beyond our control, such as general market disruptions, sharp movements in commodity prices or an operational problem that aects our suppliers, customers or ourselves. • Maintaining headroom under revolving credit facilities • As at 31 December 2021, the Group had available undrawn credit facilities and cash amounting to €88 million (31 December 2020: €173 million) 7. Government – laws and regulations Risk movement in 2021: stable New government measures, including increased regulations on food safety and regulations on sanctioned countries, may have a major impact on our business and nancial position, and can present a threat to activities within a relatively short time frame. • Monitoring and adapting to relevant (changes in) rules and regulations • Maintaining a dialogue with authorities • Supplier Code ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 51 Risk description Risk appetite and mitigating factors Business risks 8. Sustainability of our strategy Risk movement in 2021: stable Strong shifts in the success and credibility of our products in the niche segments we operate in, and Acomo’s ability to respond to these adequately. In case there are external or internal developments negatively aecting the credibility of our products and/or segments, Acomo’s strategy and reputation could be adversely aected, leading to a poorer overall nancial position. • Diversication of the product range and of the industries which are being supplied • Periodic assessment of our strategy by the Board with the management of our operating companies • Investigating market developments in order to identify opportunities for acquisitions, business development and diversication 9. Increased competition and vertical integration Risk movement in 2021: stable Competition and vertical integration of Acomo’s customers may put pressure on market share, volumes and prices, which could have an adverse eect. Attractive markets may attract new entrants. On the one hand this means our regions of operation receive more (customer and consumer) attention; on the other hand, increased competition can result in pressure on market share, and potentially aect revenue and protability. • Selective acquisitions • Oering of value-added services such as storage, blending, cleaning, heat treatment, processing and vendor-managed inventory solutions 10. Inability to attract, develop and retain (trading) sta Risk movement in 2021: increase Availability of experienced and professional traders and other sta. If we are unable to attract, develop and retain the right people, our ability to operate our business successfully may be signicantly impaired. • Human resources and remuneration policies aimed at rewarding talent and responsibility • Modern working environment, training and development plans and small teams • Increased focus on intra-Group professional development and succession of leadership positions • Several companies have initiated internship programmes to get in contact with potential employees 11. Cyber risks Risk movement in 2021: stable A cyber security breach, incident or failure of Acomo’s IT systems could disrupt our business, result in the disclosure of condential information, damage our reputation and create signicant nancial and legal exposures. • Autonomous group companies with own IT systems • Awareness training • Business continuity plan • Penetration testing ANNUAL REPORT 202152 AMSTERDAM COMMODITIES N.V. Risk description Risk appetite and mitigating factors Business risks 12. Fraud, corruption and bribery risks Risk movement in 2021: stable Fraud is a deception that is deliberately practiced to secure unfair or unlawful gain and include deceit, concealment, skimming, forgery or alteration of (electronic) documents. Acomo maintains a zero-tolerance approach for its companies, employees and business partners with regard to fraud. Bribery is illegal, and it can cripple Acomo’s long-standing reputation of conducting business with integrity. • The Acomo Code of Conduct outlines our shared ethical standards for conducting business throughout the world. Prevention of fraud, corruption and bribery are integral part of the Code. The standards and principles apply to all employees of the Acomo Group worldwide • Regular visits and interviews with key personnel to assess risks and behaviour • Four-eyes principle in key processes • Active follow-up on whistle-blower reports 13. Product integrity and certication risks Risk movement in 2021: new Recent highly publicized incidents of food fraud have shaken condence in the (organic) food value chain. Hence, it is of the utmost importance to provide assurance about the safety, authenticity and quality of food products (integrity). Food fraud can lead to decertication and negatively impact the business continuity. • Stringent supplier approval and assessment programmes • Laboratory sampling plans and monitoring schedules 14. Acquisition and integration risks Risk movement in 2021: new Acquisitions and investments involve risks, including inaccurate assumptions about revenues and costs, unknown liabilities and customer or key employee losses at the acquired businesses, potentially leading to impairment losses on intangible assets. • Applying strict selection criteria to potential targets • Operational, legal, nancial and tax due diligence investigations • Acquisition activities are driven centrally by an experienced management team supported by external consultants ESG risks 15. Climate change Risk movement in 2021: stable Changes in temperature and rainfall patterns, with an increase of droughts, are aecting yields, product quality and prices of natural food products. Food products such as spices, cocoa, nuts, tea and coee are highly sensitive to changes in growing conditions. These products can only be produced in narrowly dened agroecological conditions and, hence, in a limited number of countries. • Diversication of purchases of food products across many countries of origin in dierent parts of the world and reliable suppliers • Partnering in the supply chain on climate change adaptive innovations and solutions (e.g., irrigation projects) ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 53 Risk description Risk appetite and mitigating factors ESG risks 16. Human rights Risk movement in 2021: stable It is our responsibility as a company to respect human rights. Human rights infringements may lead to reputational damage and loss of customer condence. We aim to prevent and address any negative impacts we may have on the rights of those whom we employ, do business with or interact with along our supply chain. Labour rights – including child labour, excessive hours with low wages, and human tracking – are often the leading human rights concerns for agricultural companies. • Acomo has developed a Supplier Code to clarify our global expectations in the areas of business integrity, labour practices, associate health and safety, and environmental management. Acomo’s Supplier Code is intended to complement the Acomo Code of Conduct 17. Food safety and recall risks Risk movement in 2021: stable Food safety aspects and recall risks with regard to imported and delivered products. Our operations are subject to food safety and environmental laws, and comply with our corporate sustainability framework. Food safety laws may result in increased costs or, in the event of non-compliance or incidents, in signicant losses, including arising from (1) litigation and imposition of penalties and sanctions and (2) having licenses and permits withdrawn or suspended. • Following strict food and product safety procedures • Insurance contracts to manage potential nancial consequences • Traceability of the products and extensive, state-of-the-art laboratory testing (internal and external) in order to ensure food safety (all our subsidiaries are HACCP or GFSI certied, and also have various other certications related to their specic activities) • Supplier Code • Investments in pasteurization of products 18. Health, safety and environmental risks Risk movement in 2021: new It is our fundamental responsibility as a company to minimize the environmental impact where we operate and ensure the well-being of employees in the workplace. Non-compliance with health and safety or environmental standards may lead to severe reputational damage and loss of customer condence. • Group-wide Acomo Code of Conduct. The Code claries our expectations in the areas of business integrity, labour practices, associate health and safety, and environmental management. Acomo’s Supplier Code complements the Acomo Code of Conduct • Following strict health, safety and environmental procedures ANNUAL REPORT 202154 AMSTERDAM COMMODITIES N.V. Checking and preparing tea samples at the Van Rees oce ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 55 REMUNERATION REPORT Introduction The Non-Executive Directors of the Board are responsible for appointing the Company’s statutory directors (subject to the General Meeting’s approval) and setting their remuneration. The Company currently has two statutory (Executive) Directors. Remuneration Committee The Remuneration and Selection & Appointment Committee assists and advises the Board in fullling its responsibilities with respect to determining the Company’s remuneration strategy and principles for members of the Board. It drafts proposals to the Board for the remuneration policy, as well as for the implementation of the remuneration policy for the members of the Board, and reports through the Annual Report on these matters. The Committee currently consists of Mrs Groothuis (Chairwoman), Mr Gottesman (member) and Mr Stuivinga (member). Highlights of 2021 Key business highlights of 2021 include: • The transformational acquisition of Tradin Organic was successfully integrated, substantially increasing the size of the Group; • Double digit prot growth in all segments; EBITDA increased by +110%; • Adjusted net prot increases by +130% and adjusted EPS increased by +93%; and • New CEO and new Non-Executive Board member appointed on 15 September 2021. The transformational acquisition of Tradin Organic on 30 December 2020 marked a substantial change in the structure and size of the Group. The newly acquired company supplies organic food products, has multiple operations, sources across the globe, and sells mainly in Europe and the USA. The acquisition not only signicantly increased the size of the Group but also added to the diversity of the portfolio and further enhanced the ESG prole of the Group. Tradin Organic was successfully integrated in the Group on time and within budget. The traditional segments Spices & Nuts, Edible Seeds, Tea, and Food Ingredients performed strongly in 2021 and achieved double digit prot growth without exception. The combined prot of these segments increased by +45% versus the previous year, proving the strong fundamentals of the business and the professionalism of our teams. Mrs Fortmann joined the Group as CEO and Executive Board member per 15 September 2021 and per the same date Mrs Vandeputte joined as Non-Executive Board member. Remuneration 2021 The level and structure of remunerations within the Group are such that people with the required expertise and qualications can be eectively recruited, retained, motivated and guided. In determining the individual remunerations, the eect on the remuneration levels within the Group is taken into account. The remuneration policy has the objective to reward Executive members of the Board with a competitive remuneration package that is aligned with industry practices and with the goals and objectives of the Group. In determining the remuneration levels, the Group uses comparable national and international companies relevant from an industry and size perspective. In addition, it is considered how remuneration levels compare to those of key positions within the Group. In accordance with provision 3.2 of the Code, in the event that the employment of a member of the Board of Directors is terminated, whether at the initiative of the member or at the initiative of the Company, the Board member is entitled to a severance payment limited to one year’s annual base salary. Scenario analyses The Code requires that the Non-Executive Directors of the Board shall analyse possible outcomes of the variable income components on Executive Directors’ remuneration. A high-level scenario analysis is included in the annual determination of the variable element of Executive Directors’ remuneration by the Non-Executive Directors of the Board. Remuneration of the Board of Directors Key management includes the Executive Directors, Mrs Fortmann (Chief Executive Ocer) and Mr Goldschmeding (Chief Financial Ocer), who are the statutory directors of the Company, and the Non-Executive Directors, Mr Stuivinga, Mr Gottesman, Mrs Groothuis, Mr Niessen and Mrs Vandeputte. ANNUAL REPORT 202156 AMSTERDAM COMMODITIES N.V. The remuneration of the CEO and CFO consists of a xed and a variable element based on objective targets, which are evaluated each year by the Remuneration Committee and the Non-Executive Directors of the Board. For the CEO, 50% of the bonus is determined by the EPS increase, 25% by return on invested capital and 25% merit bonus determined by a number of business improvement targets focused on long-term value creation, including: • Optimizing existing group activities for performance improvement and future growth; • Talent and management development across the Group; • Driving the sustainability agenda; and • Future corporate development. For 2021, the total bonus for Mrs Fortmann amounts to €375,000, pro-rated for the period following her appointment. The bonus is based on the signicant EPS increase and the smooth transition into her role as Acomo’s CEO. The Non- Executive Board is very grateful to Mrs Fortmann for her contribution, and would like to congratulate her on the successful start in her new role. To ensure independence of the CFO role, the bonus of the CFO historically has not been directly linked to nancial results. From 2022 onward, the Board has specied that 25% of the bonus will be determined by the nancial performance of the Group, specically return on invested capital, and 75% of the merit bonus will be linked to business targets connected to the CFO role, including: • Orderly nancial & risk management with a focus on working capital; • Eective treasury management and nancing; • Driving the sustainability agenda; and • Future corporate development. For the year 2021, the CFO has received a bonus of €858,000, which is the maximum of three times base salary within Acomo’s remuneration policy. 2021 was an exceptional year for Acomo, and the bonus reects this. In the rst half of the year, the CFO successfully completed the acquisition of Tradin Organic, nearly doubling the size of the Company. Until Mrs Fortmann’s appointment mid of September, he was the sole Executive, and he has ensured and enabled the successful induction of the new CEO. From 2022 onward, the Board proposes to increase the base salary of the CFO to reect the increased responsibility of the position due to the increased size of the Group and the CFO’s contribution to the Group’s performance. The proposed increase of the base salary by 50% will be put on the agenda of the AGM for approval on 29 April 2022. The 2021 and 2020 remuneration to the Executive Directors is shown below (all amounts in € thousands): Short- Post- Share- Remuneration Executive Directors term employment based Total Fixed-variable 2021 Salary bonus benets compensation remuneration remuneration Fortmann 1 241 375 0 16 632 41%-59% Goldschmeding 286 858 25 26 1,195 28%-72% Total Executive Directors 527 1,233 25 42 1,827 1 Mrs Fortmann was appointed as CEO on 15 September 2021 2020 Goldschmeding 286 649 25 23 983 34%-66% Total Executive Director 286 649 25 23 983 2010 Share Option Plan Year of Outstanding Granted Exercised Outstanding Exercise Expiry Executive Directors grant 1 Jan 2021 2021 2021 31 Dec 2021 price (€) date Fortmann 2021 - 120,000 - 120,000 23.80 15-09-28 Goldschmeding 2015 50,000 - - 50,000 22.46 01-12-22 2020 50,000 - - 50,000 16.83 30-04-27 ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 57 The intrinsic value was zero on the vesting date for the 15,000 options that vested on 1 September 2018 (share price €20.20), the 7,500 options that vested on 1 September 2019 (share price €18.48) and the 12,500 options that vested on 1 September 2020 (share price €19.12). When using this value for share-based payment, Mrs Fortmann’s total remuneration for 2021 is €616. Mr Goldschmeding’s total remuneration for 2021 is €1,169 (2020: €960). Of the unvested options, 15,000 options vested on 1 September 2021. The options that were granted in 2020 will start vesting on 30 April 2027 (rst tranche). The options that were granted in 2021 will start vesting on 15 September 2028 (rst tranche). The options have a contractual option term of seven years. All options vest in a six-year period with the rst vesting three years after the granting of the options. Options are granted under the plan for no consideration and carry no dividend or voting rights. When exercisable, each option is convertible into one ordinary share. The Group has no legal or constructive obligation to repurchase or settle the options in cash. As at 31 December 2021, the following Board members directly or indirectly owned Acomo shares: Mr Stuivinga (40,595), Mrs Groothuis (3,000) and Mr Niessen (3,665,008). No loans, advances or guarantees were granted to the Board. No share options were granted to the Non-Executive Directors of the Board. Internal pay ratio 2021 The internal pay ratio is calculated as the total Executive Directors compensations divided by the average employee compensation (total personnel costs of all other Acomo employees divided by the average number of FTEs, excluding the Executive Directors). The internal pay ratio between the annual total compensation for the CEO and the average annual total compensation for an Acomo employee was 9.3:1 for the 2021 nancial year (2020: N.A.). The same ratio for the CFO was 17.6:1 for 2021 (2020: 13.9:1). Both annual total compensation gures include pension costs. Remuneration Non-Executive Directors 2021 2020 2019 2018 2017 Stuivinga 1 106 106 106 106 89 Gottesman 1 95 95 95 95 78 Groothuis 85 85 85 85 68 Niessen 85 85 85 85 68 Vandeputte 2 25 - - - - Total 396 371 371 371 303 1 Including €10 remuneration for being a member of the Supervisory Board of Catz International 2 Mrs Vandeputte was appointed as Non-Executive Director on 15 September 2021 Remuneration Executive Directors - summary 2021 2020 2019 2018 2017 Fortmann 1 632 - - - - % change n.a. - - - - Goldschmeding 1,195 983 750 710 754 % change 21.6% 31.1% 5.6% -5.8% 25.9% Company performance Net prot (in € millions) 54.0 27.0 32.1 31.1 32.5 Earnings per share (in €) 1.82 1.09 1.30 1.26 1.33 Average remuneration (on a full-time basis) Employees of the Group 68 71 71 66 68 Pay ratio CEO 1 9.3 - - - - Pay ratio CFO 17.6 13.9 10.6 10.8 11.1 1 Mrs Fortmann was appointed as CEO on 15 September 2021 ANNUAL REPORT 202158 AMSTERDAM COMMODITIES N.V. Remuneration policy update At the 2020 AGM, the shareholders approved the new Shareholder Rights Directive (SRD)-compliant remuneration policy. There were no adjustments to the remuneration policy in 2021. External developments and the increased size of the Group led the Board to update the remuneration policy. The Board intends to replace the existing Share Option Plan by a Restricted Stock Unit plan. The proposed plan, to be named 2022 Acomo Long-Term Incentive Plan, will be put on the agenda of the AGM for approval on 29 April 2022. The plan is intended to be eective as per the approval date and the earliest awards shall be granted over 2022. The new incentive plan will consist of two types of awards: (i) Performance-based Stock Units (PSUs) and (ii) Restricted Stock Units (RSUs). Both reward types are discretionary (one-o or annual) and are aimed at rewarding and stimulating exceptional performance of Executives, employees and key talent. The PSUs shall be granted annually to selected Executive Directors, (Managing) Directors of group companies and to key talent, subject to approval of the Non-Executive members of the Board. The PSUs shall be subject to an annual grant maximum of 20% of a recipient’s base salary, whereby the vesting of the PSUs shall take place over a period of three (3) years subject to the achievement of pre-set targets. The targets shall be a combination of individual and company performance, taking into account long-term development of earnings per share, return on invested capital and Group company/segment-specic targets. The RSUs shall be granted to selected employees who invest up to 50% of their annual short-term bonus. The amount of the bonus invested into RSUs will be matched one for one by the Group. The RSUs shall vest over a period of three (3) years and the maximum number of RSUs to be matched per employee per year shall be ve thousand (5,000). The new incentive plan will be limited to a maximum dilution of the issued share capital of 0.15% per year. The intention is for Executive Directors to have a shareholding of at least one time their base salary, to be built up in 5 years. Rotterdam, 10 March 2022 On behalf of the Remuneration and Selection & Appointment Committee, M.E. Groothuis, Chairwoman ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 59 THE ACOMO SHARE Shares and listings Shares in Amsterdam Commodities N.V. are listed on Euronext stock exchange in Amsterdam (ISIN code NL0000313286). The shares were included in the Amsterdam Small Cap Index (AScX) on 21 March 2011. The average number of shares outstanding in 2021 was 29,597,479. As at 31 December 2021 Acomo had 29,609,871 shares outstanding. Distribution of shares Under the Dutch Financial Markets Supervision Act, shareholdings of 3% or more in any Dutch company must be disclosed to the Dutch Authority for the Financial Markets (AFM). According to the register kept by the AFM the following shareholders had disclosed that they have a direct or indirect (potential) interest in Acomo’s total share capital as at 31 December 2021: • Mont Cervin Sarl (12.3%) • Fidelity Management & Research (Japan) Ltd. (8.6%) • Teslin Participaties Coöp UA (8.5%) • Kempen Capital Management N.V. (7.8%) • Mawer Investment Management Ltd. (6.9%) • Red Wood Trust (5.4%) • Invesco Ltd. (3.0%) Dividend Acomo aims to maintain the Group’s consistent dividend policy. This policy implies that a substantial share of the annual net prot is paid out to the shareholders in cash every year. The pay-out ratio is subject to the realized free available cash ow and solvency and also depends on investment opportunities of the Group. Investor relations Acomo is committed to maintaining a high level of transparency by engaging in regular and open dialogue with investors, analysts, nancial institutions, the press, and other stakeholders. This is done in order to provide timely, complete and consistent information to enable them to develop a clear understanding of the Company’s strategy and performance as well as other matters and developments that could be relevant to investors’ decisions, including the outlook for the future. Acomo has a policy on bilateral contacts in place which details how information is provided to investors, analysts, nancial institutions, the press and other stakeholders. This policy has been established in accordance with best practice provision 4.2.2 of the Dutch Corporate Governance Code. For this policy and all other relevant publications, see www.acomo.nl. Key Acomo share data 2021 2020 2019 2018 2017 Year-end price € 24.90 20.90 20.75 17.44 24.11 Year high € 25.20 22.00 20.95 25.50 29.36 Year low € 20.10 12.50 16.86 16.28 20.25 Number of shares 31 December (thousands) 29,610 29,582 24,652 24,649 24,624 Market capitalization 31 December (in millions) € 737.3 618.3 511.5 429.9 593.6 Earnings per share € 1.82 1.09 1.30 1.26 1.33 Dividend per share (2021: proposed) € 0.60 0.40 1.10 1.00 1.10 Equity per share € 12.30 9.74 8.23 7.85 7.52 15 20 DEC ‘20 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 25 30 24.90 Source: Euronext SHARE PERFORMANCE 2021 ANNUAL REPORT 202160 AMSTERDAM COMMODITIES N.V. Various SunButter ® products available on a supermarket shelf ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 61 Pepper (black) Vietnam (USD/kg) 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 01-01 2017 01-01 2018 01-01 2019 01-01 2020 01-01 2021 31-12 2021 4.49 Desiccated coconut Philippines (USD/kg) 1.80 2.00 2.20 2.40 2.60 2.80 3.00 3.20 2.75 01-01 2017 01-01 2018 01-01 2019 01-01 2020 01-01 2021 31-12 2021 Cashew kernels Vietnam (USD/kg) 7.00 8.00 9.00 12.00 10.00 11.00 7.94 01-01 2017 01-01 2018 01-01 2019 01-01 2020 01-01 2021 31-12 2021 BUSINESS PERFORMANCE Group Introduction The year 2021 was a year in which the Acomo Group proved its ability to successfully and eectively navigate through unchartered waters of substantial supply disruptions, COVID-19 lockdowns and cost ination, whilst at the same time successfully integrating the newly acquired Tradin Organic business. The size of the Group doubled to a total revenue of €1.25 billion, an EBITDA of €105 million and an adjusted net prot of €62 million. The doubling of the Group was not just the result of the acquisition but also due to double digit growth in prot in each and every segment. This is a truly remarkable achievement and shows the strength of the individual operating entities. The strong performance across the segments is testament to our market position and the talent and professionalism of our teams. Given the strong performance the Board decided to resume dividend distribution and to propose to the shareholders a dividend of €0.60 per share. General economic environment The economic situation in 2021, like 2020, was heavily impacted by the COVID-19 pandemic. Although the global recovery that started mid-2020 continued to progress, it remains imbalanced. Momentum from the strong rebound after reopening the economies was held back in many countries amidst persisting supply bottlenecks, rising input costs and the continued eects of the pandemic. Stronger and longer-lasting ination pressure emerged in several economies around the globe and labour shortages appeared within various sectors. Food and energy costs have risen sharply as well as prices in durable goods sectors where supply disruptions are most present. These factors make the outlook of the economic environment uncertain. Although food products and ingredients demand continued to be robust on 2021, supply chains were disrupted and impacted by COVID-19. The lockdown- driven spikes in demand that occurred in 2020 did not appear in 2021, leading to a more balanced demand Cocoa organic (USD/kg) 2.00 2.20 2.40 2.60 2.80 3.00 3.20 3.40 3.60 2.99 01-01 2017 01-01 2018 01-01 2019 01-01 2020 01-01 2021 31-12 2021 ANNUAL REPORT 202162 AMSTERDAM COMMODITIES N.V. In these unprecedented times the Acomo Group performed very strong. The EBITDA increased by +110% from €49.9 million to an impressive €104.8 million. The Spices and Nuts segment contributed €18.4 million to this increase, the Edible Seeds segment €4.3 million, the Organic Ingredients segment €30.0 million, the Tea segment €1.2 million, and the Food Ingredients segment €0.9 million. The net prot adjusted for amortization charges was €62.1 million, an increase of 130%. The amortization charges are related to the Tradin Organic acquisition and include intangible amortization charges for order book, customer relations and trade name. Total sales amounted to €1,254.4 million, an increase of +77%. All segments contributed to this growth. Reported gross prot was impacted by amortization charges in relation to the Tradin Organic orderbook (-€6.2 million) as foreign currency and commodity hedge results (+€3.6 million). Corrected for these eects, the gross prot percentage was 13.8%, which represents an increase of +10 bps versus 2020. General and administrative expenses increased mainly because of the newly acquired Tradin Organic business and some increase in personnel expenses in the traditional Financial performance (in € millions) 2021 2020 Change € Change % Sales 1,254.4 707.4 547.0 77.3% Operating expenses (1,149.6) (657.5) (492.1) -74.8% EBITDA 104.8 49.9 54.9 110.0% Depreciation and amortization (24.6) (10.1) (14.5) -143.6% Operating income (EBIT) 80.2 39.8 40.4 101.5% Financial income and expenses (7.1) (2.9) (4.2) -144.8% Corporate income tax (19.1) (9.9) (9.2) -92.9% Net prot 54.0 27.0 27.0 100.0% business. Interest expenses increased by €3.4 million and include costs for the term loan facility related to the acquisition of Tradin Organic in December 2020 (outstanding amount as at 31 December 2021 of €124.4 million), as well as costs linked to the increase in nancing needs as a result of business growth and higher commodity prices in general. The tax rate decreased from 26.7% to 26.1%, mainly due to a dierent country mix and non-tax-deductible expenses in 2020. development. The graphs on page 62 illustrate the price trends of some of our major products in 2021. In general, crop volumes were good. However, transport of these crops from country of origin to country of destination proved to be challenging. Where supply chains historically used to be predictable and ecient, COVID-19 led to disruptions, ranging from scarce shipping capacity and unavailability of containers to lockdowns in ports and shortages of truck drivers. Shipping rates from Asia to Europe and the USA soared by +900% for a substantial number of routes. Shipping rates out of Africa increased more moderately. The strong and diversied sourcing network of the Acomo group companies was instrumental in addressing these issues and provided suitable alternatives for sourcing in most cases, therefore securing supply to our customers. Our teams eectively anticipated the disruptions and secured availability of products in time. 52.1 50.4 55.6 49.9 104.8 40 20 80 60 100 120 REPORTED EBITDA (in € millions) 2017 2018 2019 1 2020 1 2021 1 1 Including eect of IFRS 16 ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 63 Balance sheet analysis In 2021 total capital amounted to €697.3 million, consisting of €261.3 million of xed capital (intangible assets, property, plant and equipment, right-of-use assets and other non-current receivables, less provisions), €432.7 million of working capital and other working capital- related assets and liabilities, and €3.3 million in cash and cash equivalents. Fixed capital decreased by €8.3 million compared to 2020, mainly due to depreciation and amortization of xed assets (€24.6 million), partly oset by investments in xed capital and the stronger year-end US dollar that aected the xed capital denominated in US dollar (mainly in the Edible Seeds, Organic Ingredients and Tea segments). Working capital and other working capital-related assets and liabilities increased by €137.7 million compared to 2020, mainly due to higher inventories (€127.5 million), trade receivables (€33.5 million) and other working capital assets and liabilities (€3.8 million), partly oset by higher trade payables (€27.1 million). Total equity increased by €76.2 million to €365.7 million as at 31 December 2021 (year-end 2020: €289.5 million). The main movements were: 2021 net prot of €54.0 million and a positive net currency translation eect of €21.1 million. Total debt outstanding (excluding lease liabilities) at the end of 2021 amounted to €314.0 million (2020: €261.1 million). Long-term debt of €104.1 million (2020: €136.4 million) is repayable in ve years on average. The short-term part of the long-term borrowings of €23.3 million, repayable in 2022, is included in other working capital-related assets and liabilities. Short-term debt consists of the short-term bank overdrafts of €209.9 million (2020: €124.7 million). Non-current lease liabilities amounted to €14.1 million (2020: €13.7 million) at the end of 2021. The current part of the lease liabilities was €3.5 million (2020: €3.7 million). Solvency as at 31 December 2021 was 42.2% (year-end 2020: 41.1%), which exceeded the minimum solvency levels required by Acomo’s nancial policies. Foreign exchange position All operating companies are required to hedge foreign exchange risks related to transactions against their functional currency. The consolidated accounts of Acomo are prepared in euros. Several operating companies (mainly in Edible Seeds, Organic Ingredients, and Tea) use the US dollar as their functional currency. The results of these subsidiaries are consolidated in the Group’s 2021 results against the average euro/US dollar rate of the year. The euro/US dollar exchange rate was very volatile during the rst months of the year. After June, the US dollar strengthened against the euro, resulting in a year-end euro/ US dollar exchange rate of 1.137 (1.230 in 2020). The average euro/US dollar exchange rate in 2021 was 1.183 100 0 200 300 400 500 600 20182017 2019 2020 USE OF FUNDS (in € millions) Fixed capital 1 Working capital 2 Cash 1 Including eect of IFRS 16 as of 2019 2 Including other assets and liabilities 280.3 2021 280.3 284.0 262.8 284.0 568.1 697.3 697.3 262.8 100 0 200 300 400 500 600 700 700 20182017 2019 2020 SOURCE OF FUNDS (in € millions) Long-term debt 1,2 Short-term debt 2 Equity and reserves 1 Excluding short-term portion long-term debt 2 Including eect of IFRS 16 as of 2019 2021 568.1 2.6 163.7 96.5 182.9 100.1 1.0 117.4 0.7 162.2 295.0 269.6 3.5 432.7 261.3 3.3 185.1 66.1 11.6 9.1 81.4 14.8 62.5 128.5 150.1 118.2 289.5 365.7 213.4 193.5 203.0 100 0 200 300 400 500 600 20182017 2019 2020 USE OF FUNDS (in € millions) Fixed capital 1 Working capital 2 Cash 1 Including eect of IFRS 16 as of 2019 2 Including other assets and liabilities 280.3 2021 280.3 284.0 262.8 284.0 568.1 697.3 697.3 262.8 100 0 200 300 400 500 600 700 700 20182017 2019 2020 SOURCE OF FUNDS (in € millions) Long-term debt 1,2 Short-term debt 2 Equity and reserves 1 Excluding short-term portion long-term debt 2 Including eect of IFRS 16 as of 2019 2021 568.1 2.6 163.7 96.5 182.9 100.1 1.0 117.4 0.7 162.2 295.0 269.6 3.5 432.7 261.3 3.3 185.1 66.1 11.6 9.1 81.4 14.8 62.5 128.5 150.1 118.2 289.5 365.7 213.4 193.5 203.0 ANNUAL REPORT 202164 AMSTERDAM COMMODITIES N.V. (2020: 1.142). The FX rate change contributed negatively to sales (-€21.3 million) and net prot (-€1.3 million) compared to the previous year. The future development of the euro/US dollar rate can have a positive or negative impact on the consolidated results reported in euros. The assets and liabilities of the US dollar functional currency operating companies of the Group are translated in euros at year-end rate for consolidation purposes. The 2021 year-end exchange rate of 1.137 reects the stronger US dollar against the euro when compared to the 2020 year-end rate of 1.230. As at 31 December 2021, this resulted in an increase in total assets of €21.4 million. Variations in the year-end rates on the net investment values of US dollar subsidiaries, after taking into account related long-term borrowings in US dollar, are accounted for directly in equity through the currency translation reserve and will impact total consolidated assets and net shareholders’ equity. Cash ow summary Net cash generated from operations decreased by €71.4 million, due to a higher working capital (total net cash eect of €120.6 million), mainly caused by the higher working capital at year-end and higher interest and tax payments, partly oset by a €56.9 million higher operating cash ow. Capital expenditures of €7.8 million were higher compared to 2020 (€5.3 million). The major capital expenditures were investments in oil press equipment in the Bulgarian sunower operations of the Organic Ingredients segment, tea blending equipment in the North American operations of the Tea segment, and investments and upgrades in plant equipment in the US operations of the Edible Seeds segment. The changes in nancial liabilities of €50.7 million were mainly due to a higher amount of cash drawn from our working capital bank facilities (net cash eect of €78.7 million), as a result of the increase in working capital at year-end, partly oset by repayments on the long-term borrowings of €28 million. (in € millions) 2021 2020 Change % Operating cash ow (before tax) 109.4 52.6 108.0% Net changes in working capital (129.4) (8.8) -1,370.5% Payments of interest and tax (16.4) (8.8) -86.4% Net cash generated by operating activities (36.4) 35.0 -204.0% Capex (7.8) (5.3) -47.2% Acquisition of subsidiaries (0.8) (266.0) - Other investing activities (2.7) 0.2 - Cash used in investing activities (11.3) (271.1) - Capital increases 0.5 94.8 -99.5% Changes in nancial liabilities 50.7 174.7 -71.0% Payment of leases (4.1) (3.4) -20.6% Dividends - (27.1) - Cash used in nancing activities 47.1 239.0 -80.3% 1.08 1.10 1.12 1.14 1.16 1.18 1.20 1.22 1.24 JAN MARFEB APR MAY JUN AUGJUL NOVOCTSEP DEC EURO/US DOLLAR RATE 2021 1.14 1,08 1,10 1,12 1,14 1,16 1,18 1,20 1,22 1,24 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec EUR / USD in 2021 ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 65 Treasury position Acomo maintained the strong liquidity position presented in the previous years, without any interruption in working capital nancing among or towards any entities. Reliance on external funding increased compared to previous year due to higher working capital levels (€133.9 million), driven not only by increasing business volumes and higher market prices, but also by the need for higher inventory levels to address supply chain disruptions. As a consequence Acomo has decided to execute the accordion option of €70 million included in the agreement, expanding the revolving credit facility (RCF) to a total amount of €345 million. In 2021, Acomo also decided to voluntarily repay €20 million of the original €150 million ve-year term loan raised in December 2020 to nance the acquisition of Tradin Organic. The outstanding amount is €124.4 million and the repayment schedule started in December 2021, with quarterly repayments of €5.6 million. At year-end, the Group’s working capital credit facilities including cash positions amounted to a total of €319.1 million (2020: €313.6 million), with €87.9 million of short-term nancing available, versus €172.8 million in December 2020. The Company and its subsidiaries were in full compliance with all bank covenants applicable to the facilities. Operating segments Spices and Nuts The Spices and Nuts segment achieved sales growth of 20% with increased sales across all product groups. Demand for products in the segment was stronger than ever, resulting in rmer pricing for most products. All operating companies in this segment successfully navigated challenging external conditions, including logistical disruptions due to container shortage, disruptive weather events, and lockdown-induced labour shortages, to report record performance. Prices of most products in this segment continued to recover with increasing price levels through the year. Many spices, including pepper, nutmeg, cloves, cumin, ginger, and garlic, increased substantially in price, whereas other spices, such as cardamom and onion, remained relatively stable. Prices of major nuts, including cashews, macadamias, walnuts, almonds, and pine nuts also increased, returning to more “normal” levels. Desiccated coconut prices rose 40% in comparison with previous year due to typhoon activity in the Philippines, the most important country of origin for desiccated coconut. Other countries of origin, such as Indonesia, dealt with similar uncertainties and were also impacted by the limited availability of raw material due to growing demand for coconut oil. Catz International in Rotterdam, the Netherlands, had an outstanding year. As a result of the team’s agility and in-depth knowledge of products and supply chains, Catz achieved a substantial increase in both sales and prot despite logistics challenges and container shortages. Tovano in Maasdijk, the Netherlands, active in packed nuts and dried fruits, reported substantially increased prots versus previous year due to good positions in the main nut categories and a focus on specic market segments. King Nuts & Raaphorst in Bodegraven, the Netherlands, active in nuts and rice crackers, also had an exceptional year with increased sales and prot versus previous year. By drawing on its team’s excellent market knowledge, focus, and dedication, the company was able to build upon its strong position in domestic and export markets. Delinuts in Ede, the Netherlands, active in nuts and dried fruits, continued to grow substantially in both sales and prot. The team developed new business channels through increased customer-focused category marketing and tailor- 66.1 0 50 100 150 200 250 300 350 2017 2018 2019 2021 FINANCING POSITION (in € millions) Total nancing capacity Overdrafts used 228.3 230.3 83.5 2020 229.0 66.2 313.6 319.1 140.7 231.1 ANNUAL REPORT 202166 AMSTERDAM COMMODITIES N.V. made solutions. At the end of the year, an agreement was signed to acquire the activities of Qualino, a specialist in nuts, dried fruits, and related products. With this acquisition, Delinuts obtains its own packaging lines in a modern BRC certied production facility in the Netherlands. EBITDA in this segment increased by 73% to €43.6 million, and invested capital increased by €26.2 million compared to 2020, due to an increase in working capital, attributable to inventory value and volume. Edible Seeds The Edible Seeds segment, with operations in both North America and Europe, realized improved performance versus prior year, with an increase in revenue of +7% versus prior year before currency translation eects; and actual result of +4% versus the prior year due to the lower annual average US dollar versus the euro rate in 2021. Similar to the nuts and spices, edible seed price levels increased signicantly in 2021, particularly sunower and pumpkin seeds. 0 15 30 45 EBITDA (in € millions) 25 0 50 75 100 125 150 INVESTED CAPITAL (in € millions) 24.4 0 100 200 300 400 2017 2018 2019 2017 2018 2019 1 2017 2018 2019 1 SALES (in € millions) 369.9 104.4 105.5 25.8 Fixed capital Working capital 2020 341.1 2021 2020 1 2021 1 2020 1 2021 1 329.0 27.1 114.5 118.2 144.4 418.5 349.6 1 Including eect of IFRS 16 25.2 43.6 1 Including eect of IFRS 16 23.4 81.0 26.9 29.2 89.0 28.6 115.8 87.6 19.5 86.0 0 15 30 45 EBITDA (in € millions) 25 0 50 75 100 125 150 INVESTED CAPITAL (in € millions) 24.4 0 100 200 300 400 2017 2018 2019 2017 2018 2019 1 2017 2018 2019 1 SALES (in € millions) 369.9 104.4 105.5 25.8 Fixed capital Working capital 2020 341.1 2021 2020 1 2021 1 2020 1 2021 1 329.0 27.1 114.5 118.2 144.4 418.5 349.6 1 Including eect of IFRS 16 25.2 43.6 1 Including eect of IFRS 16 23.4 81.0 26.9 29.2 89.0 28.6 115.8 87.6 19.5 86.0 0 15 30 45 EBITDA (in € millions) 25 0 50 75 100 125 150 INVESTED CAPITAL (in € millions) 24.4 0 100 200 300 400 2017 2018 2019 2017 2018 2019 1 2017 2018 2019 1 369.9 104.4 105.5 25.8 Fixed capital Working capital 2020 341.1 2021 2020 1 2021 1 2020 1 2021 1 329.0 27.1 114.5 118.2 144.4 500 SALES (in € millions) 418.5 349.6 1 Including eect of IFRS 16 25.2 44.5 1 Including eect of IFRS 16 23.4 81.0 26.9 29.2 89.0 28.6 115.8 87.6 19.5 86.0 0 10 20 30 EBITDA (in € millions) 25 0 50 75 100 125 150 INVESTED CAPITAL (in € millions) 50 100 150 200 2017 2018 2019 2017 2018 2019 1 2017 2018 2019 1 SALES (in € millions) Fixed capital Working capital 2020 2021 2020 1 2021 1 2020 1 2021 1 1 Including eect of IFRS 16 1 Including eect of IFRS 16 188.7 174.4 215.6 215.6 223.9 16.9 17.3 19.7 19.5 23.7 114.4 105.5 112.6 105.3 103.2 0 59.2 53.4 54.2 54.3 51.3 55.5 49.8 48.9 52.5 61.9 0 10 20 30 EBITDA (in € millions) 25 0 50 75 100 125 150 INVESTED CAPITAL (in € millions) 50 100 150 200 2017 2018 2019 2017 2018 2019 1 2017 2018 2019 1 SALES (in € millions) Fixed capital Working capital 2020 2021 2020 1 2021 1 2020 1 2021 1 1 Including eect of IFRS 16 1 Including eect of IFRS 16 188.7 174.4 215.6 215.6 223.9 16.9 17.3 19.7 19.5 23.7 114.4 105.5 112.6 105.3 103.2 0 59.2 53.4 54.2 54.3 51.3 55.5 49.8 48.9 52.5 61.9 0 10 20 30 EBITDA (in € millions) 25 0 50 75 100 125 150 INVESTED CAPITAL (in € millions) 50 100 150 200 2017 2018 2019 2017 2018 2019 1 2017 2018 2019 1 Fixed capital Working capital 2020 2021 2020 1 2021 1 2020 1 2021 1 300 SALES (in € millions) 1 Including eect of IFRS 16 1 Including eect of IFRS 16 188.7 174.4 215.6 215.6 223.9 16.9 17.3 19.7 19.5 24.3 114.4 105.5 112.6 105.3 103.2 0 59.2 53.4 54.2 54.3 51.3 55.5 49.8 48.9 52.5 61.9 Edible SeedsSpices and Nuts ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 67 The North American business grew substantially due to the strong performance of Red River Commodities in Fargo (ND), USA, which is active in processing, packaging and distribution of wildlife seeds, edible sunower seeds and sunower-based products. The Wildlife division realized strong sales growth due to increased demand with improved margins in the second half of the year. The SunGold division improved performance versus the previous year with better plant production eciencies, and the Processing division achieved increased volumes at stable margins. SunButter ® growth slowed as sales to schools were lower versus 2020, when schools ordered high volumes of the product for lunch kits supported by government COVID-19-related subsidies. SunButter ® , a healthy and allergen-free alternative to peanut butter, continues to be well positioned for growth as it ts perfectly with healthy nutrition trends. Red River Global Ingredients in Winkler, Canada, reported lower sales as import of products from Eastern Europe into North America was less attractive because of increased price levels at origin and logistics costs. The European business showed stable growth versus the previous year, in line with better market conditions related to further lifting of COVID-19 restrictions. Red River-Van Eck in Etten-Leur, the Netherlands, and SIGCO Warenhandel in Hamburg, Germany, showed stable growth, and the new state-of-the-art pasteurization facility of FISCe (Food Ingredients Service Center Europe) in Etten-Leur, the Netherlands, had a promising rst year of operations, serving both internal and external customers. EBITDA increased by €4.2 million (+22%). Invested capital increased by €11.2 million, due to higher working capital requirements for inventories, with increases in volumes and price. Organic Ingredients Tradin Organic, with its global headquarters in Amsterdam, the Netherlands, became part of Acomo on 30 December 2020. Founded in 1980’s, Tradin Organic is the global leader in supplying certied organic, plant- based ingredients, oering a full-service, diversied portfolio based upon its unique sourcing, process and distribution capabilities. Tradin brings to market an extensive product portfolio with over 230 products with full traceability, overseeing all aspects of sourcing, transport and storage, linking food manufacturers in Europe, North America and Asia to 100,000+ organic farmers in over 80+ countries. Tradin also operates four value-added processing facilities in Europe and Africa. Tradin was successfully integrated into Acomo in 2021 with the carve-out from the previous owner completed within the rst six months of the year. Despite global logistics challenges, the Tradin team managed to continue sourcing key organic ingredients from origin countries to meet customers’ demand and deliver upon expectations. 0 15 30 45 EBITDA (in € millions) 50 0 100 150 200 250 300 350 INVESTED CAPITAL (in € millions) 200 300 400 500 SALES (in € millions) Fixed capital Working capital 100 30.0 458.4 279.7 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 177.0 102.7 0 15 30 45 EBITDA (in € millions) 50 0 100 150 200 250 300 350 INVESTED CAPITAL (in € millions) 200 300 400 500 SALES (in € millions) Fixed capital Working capital 100 30.0 458.4 279.7 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 177.0 102.7 0 15 30 45 EBITDA (in € millions) 50 0 100 150 200 250 300 350 INVESTED CAPITAL (in € millions) 200 300 400 500 SALES (in € millions) Fixed capital Working capital 100 30.0 458.4 279.7 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 177.0 102.7 Organic Ingredients ANNUAL REPORT 202168 AMSTERDAM COMMODITIES N.V. year, an agreement was signed to sell the blending facility in Dongen, the Netherlands, to a logistics service provider, which is positioned to serve a broader portfolio of customers. A service agreement has been signed with the new owner to ensure continuity of blending activities in Europe. EBITDA increased by €1.2 million (+19%) compared to the previous year. Invested capital increased by €3.2 million, mainly due to higher working capital associated with inventories and the eect of the stronger year-end US dollar on xed capital. The Organic Cocoa business was able to increase yield and output at the Crown of Holland production facility located in Middenmeer, The Netherlands, successfully meeting increased demand for organic cocoa while maintaining overall margins, despite higher energy costs. The Fruit segment realized increased sales and margins in North America and Europe as compared to prior year, driven by increased consumer demand for healthy, natural products. Nuts and Dried Fruit was relatively at for the year overall, with more exposure in Europe due to challenging market conditions and increased freight costs. The Premium Juice business in the U.S., Big Basin Foods, continued to do well with strong demand, especially for organic orange juices. Margins were lower as existing long-term contracts caused delays in passing through price increases for packaging and transport. Tradin’s organic coee business, Trabocca, showed improvement in overall margins despite challenges with logistics. The Organic Oil segment did well in both North America and Europe, although production costs rose at the Ethiopian avocado processing facility. Tea Our Tea segment nished the year with higher volume and margins compared to the previous year with turnover up by +13% before currency translation eects. The team faced numerous challenges this year, similar to 2020, and yet, they continued to grow the business and improved performance. Tea pricing developments between the dierent regions showed lower prices in the rst half of the year, followed by signicant increases in prices for both Sri Lanka as well as African tea origins in the second half of 2021, following the usual trend in relation to supply and demand. Market volatility and instability of supply and demand in some regions required agility and exibility from the teams. Royal Van Rees Group showed continued focus on improving the portfolio, including expanding in the speciality tea category with excellent blends of tea with fruits, herbs and spices. This year, new blending equipment in Malawi became operational to serve customers with tea products meeting the highest quality and food safety standards. In North America, the new speciality tea blending facility was certied and became fully operational, giving Van Rees a larger footprint in this highly attractive market. At the end of the 0 2 4 6 8 EBITDA (in € millions) 15 0 30 45 60 75 90 INVESTED CAPITAL (in € millions) 50 100 150 200 2017 2018 2019 2017 2018 2019 1 2017 2018 2019 1 SALES (in € millions) Fixed capital Working capital 2020 2021 2020 1 2021 1 2020 1 2021 1 1 Including eect of IFRS 16 1 Including eect of IFRS 16 5.9 6.1 6.0 6.4 54.6 0 151.1 136.7 122.2 133.1 144.8 7.6 62.4 66.4 59.0 62.5 18.0 44.5 18.7 47.7 17.5 17.7 41.3 17.9 44.5 37.1 0 2 4 6 8 EBITDA (in € millions) 15 0 30 45 60 75 90 INVESTED CAPITAL (in € millions) 50 100 150 200 2017 2018 2019 2017 2018 2019 1 2017 2018 2019 1 SALES (in € millions) Fixed capital Working capital 2020 2021 2020 1 2021 1 2020 1 2021 1 1 Including eect of IFRS 16 1 Including eect of IFRS 16 5.9 6.1 6.0 6.4 54.6 0 151.1 136.7 122.2 133.1 144.8 7.6 62.4 66.4 59.0 62.5 18.0 44.5 18.7 47.7 17.5 17.7 41.3 17.9 44.5 37.1 0 2 4 6 8 EBITDA (in € millions) 15 0 30 45 60 75 90 INVESTED CAPITAL (in € millions) 50 100 150 200 2017 2018 2019 2017 2018 2019 1 2017 2018 2019 1 SALES (in € millions) Fixed capital Working capital 2020 2021 2020 1 2021 1 2020 1 2021 1 1 Including eect of IFRS 16 1 Including eect of IFRS 16 5.9 6.1 6.0 6.4 54.6 0 151.1 136.7 122.2 133.1 144.8 7.6 62.4 66.4 59.0 62.5 18.0 44.5 18.7 47.7 17.5 17.7 41.3 17.9 44.5 37.1 Tea ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 69 Food Ingredients The Food Ingredients segment performed well with higher sales and margins compared to the previous year. In line with the strategy to provide customers with innovative food concepts and solutions, the results were driven by strong performance in value-added dry and wet blends, which made up for lagging traded-product sales. Snick Euro- Ingredients works with customers to develop innovative solutions that are very well aligned with customer and consumer demand, particularly for healthier, plant-based products and alternative protein sources. EBITDA increased by €1.0 million (+29%) compared to the previous year. Invested capital increased slightly to 2020, as an increase in working capital for inventory was oset by lower xed capital. 0 2 4 6 EBITDA (in € millions) 2 0 4 6 8 10 12 14 INVESTED CAPITAL (in € millions) 10 15 20 25 2017 2018 2019 2017 2018 2019 1 2017 2018 2019 1 SALES (in € millions) Fixed capital Working capital 2020 2021 2020 1 2021 1 2020 1 2021 1 1 Including eect of IFRS 16 1 Including eect of IFRS 16 5 3.8 3.5 4.5 20.3 21.2 4.0 20.7 20.6 21.1 12.6 4.0 12.8 11.5 12.4 11.9 8.2 3.3 8.2 3.7 8.2 4.6 8.0 4.4 7.8 4.8 0 2 4 6 EBITDA (in € millions) 2 0 4 6 8 10 12 14 INVESTED CAPITAL (in € millions) 10 15 20 25 2017 2018 2019 2017 2018 2019 1 2017 2018 2019 1 SALES (in € millions) Fixed capital Working capital 2020 2021 2020 1 2021 1 2020 1 2021 1 1 Including eect of IFRS 16 1 Including eect of IFRS 16 5 3.8 3.5 4.5 20.3 21.2 4.0 20.7 20.6 21.1 12.6 4.0 12.8 11.5 12.4 11.9 8.2 3.3 8.2 3.7 8.2 4.6 8.0 4.4 7.8 4.8 0 2 4 6 EBITDA (in € millions) 2 0 4 6 8 10 12 14 INVESTED CAPITAL (in € millions) 10 15 20 25 2017 2018 2019 2017 2018 2019 1 2017 2018 2019 1 SALES (in € millions) Fixed capital Working capital 2020 2021 2020 1 2021 1 2020 1 2021 1 1 Including eect of IFRS 16 1 Including eect of IFRS 16 5 3.8 3.5 4.5 20.3 21.2 4.0 20.7 20.6 21.1 12.6 4.0 12.8 11.5 12.4 11.9 8.2 3.3 8.2 3.7 8.2 4.6 8.0 4.4 7.8 4.8 Food Ingredients ANNUAL REPORT 202170 AMSTERDAM COMMODITIES N.V. A Tradin Organic employee checking the quality of raw cashew material ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 71 Input suppliers | Denition of specications | Farmer aggregation | Agricultural extension services | Farming | Post-harvest activities Trading | Food processing | Food packaging | Transport, storage, logistics | Inventory management and control DISTRIBUTION GROWING POST-HARVEST INPUTS TRADING PROCESSING CATZ INTERNATIONAL A GLOBAL PLAYER WITH AN IMPRESSIVE SOURCING NETWORK AND CAREFULLY CONTROLLED SUPPLY CHAIN Checking of allspice samples prior to shipping at the Catz International oce ANNUAL REPORT 202172 AMSTERDAM COMMODITIES N.V. Food industry | Wholesale | Retail (schools, grocery stores and local open markets) | Foodservice (restaurants and catering) CUSTOMERS CONSUMERS Catz International has come a long way since its humble beginnings as a grocery store in the Dutch city of Groningen in 1856. The company started trading spices from Indonesia after moving to Rotterdam in 1910 and gradually expanded into the global player it is today, with a portfolio encompassing over 80 products and with suppliers and customers around the world. Third-party sampling and analysis ensure that Catz’ products consistently meet the highest standards of food safety, quality and regulatory compliance. The company’s enduring focus on maintaining these standards have earned Catz the BRC Global Standard for Agents and Brokers grade AA. All of Catz’ partners are GFSI-certied or operate at similar levels of compliance. By working with its worldwide network of partners, Catz is able to add value to products through a range of services including cleaning, grinding, heat treatment and climate-controlled storage. Catz’ focus on managing risks for clients and partners as well as its strong grip on the supply chain make the company a reliable partner for its global customers, who can count on a proven track record of timely and tailor- made deliveries of high-quality food ingredients. SCAN For more information about the added value of Catz International PRODUCTS Spices | Coconut products | Edible nuts | Dried fruits | Dehydrated vegetables and herbs ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 73 Distribution of nuts and dried fruits to customers at Tovano Input suppliers | Denition of specications | Farmer aggregation | Agricultural extension services | Farming | Post-harvest activities Trading | Food processing | Food packaging | Transport, storage, logistics | Inventory management and control DISTRIBUTION GROWING POST-HARVEST INPUTS TRADING PROCESSING TOVANO A FLEXIBLE WHOLESALER RENOWNED FOR QUALITY, SERVICE AND SPEED ANNUAL REPORT 202174 AMSTERDAM COMMODITIES N.V. Food industry | Wholesale | Retail (schools, grocery stores and local open markets) | Foodservice (restaurants and catering) CUSTOMERS CONSUMERS Tovano was founded by the Van Noort family in 1950 as a small business selling nuts to speciality stores and open markets. Today, the company has grown into a major wholesaler of nuts, seeds, dried subtropical fruits, and snack products in markets spanning the European continent, from Scandinavia to Spain. Tovano’s well-established reputation for quality, service and speed is built on its profound understanding of the value chain and its long-term relationships with trusted customers and partners. In addition to wholesaling and exporting nuts and dried fruits, Tovano adds distinctive value to the products with tailor-made packaging solutions that meet customers’ demand for attractive, food-safe, and increasingly sustainable packaging of every size, from compact consumer units to bulk-size containers. In addition, Tovano monitors food safety and compliance requirements across the value chain, giving customers total condence in the company’s ability to deliver high-quality products rapidly, reliably and responsibly. SCAN For more information about the added value of Tovano PRODUCTS Nuts and peanuts | Dried and tropical fruits | Kernels and seeds | Chocolate-coated products | Snack products ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 75 Input suppliers | Denition of specications | Farmer aggregation | Agricultural extension services | Farming | Post-harvest activities Trading | Food processing | Food packaging | Transport, storage, logistics | Inventory management and control DISTRIBUTION GROWING POST-HARVEST INPUTS TRADING PROCESSING KING NUTS & RAAPHORST RELIABLY MEETING A GROWING DEMAND ANNUAL REPORT 202176 AMSTERDAM COMMODITIES N.V. Food industry | Wholesale | Retail (schools, grocery stores and local open markets) | Foodservice (restaurants and catering) CUSTOMERS CONSUMERS King Nuts & Raaphorst is among the largest importers and wholesalers of nuts, dried tropical fruits and rice crackers in the Netherlands. In addition, the company arranges the supply of these increasingly popular products to repackers and wholesalers across the European continent from its warehouses in Bodegraven, the Netherlands. The company’s shipments are tailor- made to meet clients’ needs and may vary from a single box to a mixed pallet or a lorry load. As a family business with a no-nonsense culture, King Nuts & Raaphorst has grown to be a household name synonymous with a high level of service, reliability, and stringent product quality and food safety standards. Over the years, the company has contracted a range of partners that help maintain quality from source to delivery. As a result, the company stands out among its competitors as a exible and dependable partner, capable of ensuring secure supply of products under all circumstances. Receiving a container of Chilean dried plums at the King Nuts & Raaphorst warehouse SCAN For more information about the added value of King Nuts & Raaphorst PRODUCTS Nuts | Dried tropical fruits | Rice crackers ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 77 Input suppliers | Denition of specications | Farmer aggregation | Agricultural extension services | Farming | Post-harvest activities Trading | Food processing | Food packaging | Transport, storage, logistics | Inventory management and control DISTRIBUTION GROWING POST-HARVEST INPUTS TRADING PROCESSING DELINUTS CREATIVE CONCEPT DEVELOPMENT TO MATCH TOMORROW’S TRENDS Innovative product concepts, unique product combinations and distinctive packaging to meet customers’ needs ANNUAL REPORT 202178 AMSTERDAM COMMODITIES N.V. Food industry | Wholesale | Retail (schools, grocery stores and local open markets) | Foodservice (restaurants and catering) CUSTOMERS CONSUMERS Delinuts started out in 1994 selling nuts and tropical fruits directly from a lorry. Today, the company develops innovative, market-specic product concepts, and delivers unique product combinations and distinctive packaging to retail and food service customers throughout Europe. Delinuts ensures swift and reliable distribution across the continent from its facilities in Ede, the Netherlands. The quality and consistency of its products are guaranteed through intelligent supply chain management, supported by automated systems. These assets provide the company with valuable insight and a highly developed antenna to exibly meet customers’ changing needs. Delinuts’ thorough understanding of the market and consumer trends, such as the growing demand for convenient and healthier foods, drives the company’s capacity to develop creative concepts that help customers surprise consumers time and time again. SCAN For more information about the added value of Delinuts PRODUCTS Nuts | Tropical fruits | Rice crackers | Processed nuts | Chocolate-coated products ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 79 Input suppliers Denition of specications Input suppliers Denition of specications Input suppliers Denition of specications Input suppliers Denition of specications Input suppliers Denition of specications Farmer Farmer aggregation | aggregation | aggregation | gricultural extension services gricultural extension services gricultural extension services Farming | Post-harvest activities Farming | Post-harvest activities Farming | Post-harvest activities Trading | Food processing (including co-manufacturing) | Food packaging | Transport, storage, logistics | Inventory management and control DISTRIBUTION GROWING POST-HARVEST INPUTS TRADING PROCESSING RED RIVER COMMODITIES & RED RIVER GLOBAL INGREDIENTS INNOVATIVE LEADERS IN EDIBLE SEED PRODUCTS ANNUAL REPORT 202180 AMSTERDAM COMMODITIES N.V. Red River Commodities continuously pushes the boundaries of sunower and speciality seed processing. Healthy and allergen-free products like SunButter ® and Chocolate SunButter ® , a delicious-tasting sunower butter made with simple ingredients, and Suntein TM , a high- protein plant-based our, set the company apart as an innovative and solution-driven business that spots opportunities in unique markets. The company produces at seven manufacturing facilities in the US, ensuring the highest standards of food safety and traceability. Continuity in the supply of its top-quality products is also secured through close partnerships with contracted US farmers. Red River Commodities further manages supply chain risk by collaborating with Red River Global Ingredients, the company’s trading partner within the Acomo Group. Thanks to its long-term relationships with rst-class suppliers of sunower seeds and speciality crops around the world, Red River Global Ingredients ensures reliable sourcing at all times and shares valuable market intelligence to meet customer needs. Food industry | Wholesale | Retail Food industry | Wholesale | Retail Food industry | Wholesale | Retail Food industry | Wholesale | Retail (schools, grocery stores and local (schools, grocery stores and local (schools, grocery stores and local (schools, grocery stores and local open markets) | Foodservice open markets) | Foodservice open markets) | Foodservice open markets) | Foodservice (restaurants and catering) (restaurants and catering) (restaurants and catering) (restaurants and catering) CUSTOMERS CONSUMERS RRC RRGI SCAN For more information about the added value of Red River Commodities & Red River Global Ingredients PRODUCTS Sunower products | Wildlife foods | Roasted and avoured seeds | Bakery and birdfood ingredients | Speciality crops | SunButter ® | Suntein TM Cleaning of the harvested sunower raw material at the Fargo processing facility ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 81 Processing of poppy seeds according to ingredient specication at the Red River-Van Eck facility Input suppliers | Input suppliers | Denition of specications Denition of specications Denition of specications | Farmer aggregation | Agricultural extension services | Farmer aggregation | Agricultural extension services | Farmer aggregation | Agricultural extension services | Farmer aggregation | Agricultural extension services | Farmer aggregation | Agricultural extension services | Farming | Post-harvest activities Farming | Post-harvest activities Farming | Post-harvest activities Trading | Food processing (including cleaning and blending) | Food packaging | Transport, storage, logistics | Inventory management and control DISTRIBUTION GROWING POST-HARVEST INPUTS TRADING PROCESSING RED RIVER-VAN ECK STABILITY AND CONTINUITY THROUGHOUT THE CHAIN BY BRIDGING THE NEEDS OF SUPPLIERS AND CUSTOMERS ANNUAL REPORT 202182 AMSTERDAM COMMODITIES N.V. SCAN Food industry | Wholesale | Retail Food industry | Wholesale | Retail Food industry | Wholesale | Retail Food industry | Wholesale | Retail (schools, grocery stores and local (schools, grocery stores and local (schools, grocery stores and local (schools, grocery stores and local open markets) | Foodservice open markets) | Foodservice open markets) | Foodservice open markets) | Foodservice (restaurants and catering) (restaurants and catering) (restaurants and catering) (restaurants and catering) CUSTOMERS CONSUMERS Red River-Van Eck started out as a family trading business more than a century ago and subsequently specialized in the sourcing, importing, processing and distribution of edible seeds for the confectionery, spice and bakery industry. Today, the company has grown into a top player in the speciality seeds market. Through exclusive strategic partnerships with a limited number of long-term suppliers, Red River-Van Eck guarantees reliable and consistent supply to its customers. Customers can also rely on consistent eciency, quality, product safety and security due to Red River- Van Eck’s sophisticated processing equipment at its new state-of-the-art facility in Etten-Leur, the Netherlands. Through its network of trusted partners and highly advanced, fully-automated processes, the company bridges the needs of suppliers and customers, and oers stability and continuity to all parties in the value chain. SCAN For more information about the added value of Red River-Van Eck PRODUCTS Processing and distribution of seeds (mainly poppy) to the confectionary, spice and bakery industries ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 83 Input suppliers | Denition of specications | Farmer aggregation | Agricultural extension services | Farming | Post-harvest activities Trading | Food processing (heat treatment) | Food packaging | Transport, storage, logistics | Inventory management and control DISTRIBUTION GROWING POST-HARVEST INPUTS TRADING PROCESSING FOOD INGREDIENTS SERVICE CENTER EUROPE ADDING VALUE THROUGH ALL-NATURAL HEAT TREATMENT OF FOOD INGREDIENTS Heat treatment of black pepper to ensure food safety at Food Ingredients Service Center Europe ANNUAL REPORT 202184 AMSTERDAM COMMODITIES N.V. SCAN Food industry | Wholesale | Retail (schools, grocery stores and local open markets) | Foodservice (restaurants and catering) CUSTOMERS CONSUMERS The steam-vacuum pasteurization process is completely free of chemicals and radiation, leaving product qualities intact while mitigating microbiological hazards and thus assuring the reliability of food ingredients. FISCe’s 100% natural high-tech and homogeneous treatment is uniquely suited for products that are subject to strict regulatory requirements. Packaging takes place in a dedicated clean room, avoiding cross-contamination and safeguarding the required microbiological criteria of products. The entire process is compliant with the highest standards in food safety, without any compromises on product quality and with a minimal impact on the organoleptic characteristics. FISCe is certied for food safety by FSSC 22000 and for organic processing by Skal. The company guarantees the availability of all-natural and food-safe ingredients that meet both internal and external customers’ high expectations. SCAN For more information about the added value of FISCe PRODUCTS Heat treatment and packaging of low-moisture food ingredients Food Ingredients Service Center Europe (FISCe) is a trusted partner for the steam-vacuum pasteurization of food ingredients. The company oers a fully controlled treatment of delicate low-moisture and heat sensitive products such as spices, dehydrated herbs, edible seeds, cereals and grains, and dehydrated vegetables and pulses. ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 85 Input suppliers | Denition of specications | Farmer aggregation | Agricultural extension services | Farming | Post-harvest activities Trading | Food processing | Food packaging | Transport, storage, logistics | Inventory management and control DISTRIBUTION GROWING POST-HARVEST INPUTS TRADING PROCESSING SIGCO WARENHANDELSGESELLSCHAFT A RELIABLE LINK IN THE BAKERY INDUSTRY SUPPLY CHAIN Shipping of goods in the port of Hamburg ANNUAL REPORT 202186 AMSTERDAM COMMODITIES N.V. SCAN Food industry | Wholesale | Retail (schools, grocery stores and local open markets) | Foodservice (restaurants and catering) CUSTOMERS CONSUMERS SIGCO is the leading importer, distributor, and supplier of edible seeds to wholesalers and the bakery and confectionery industry in Germany. As a one-stop shop for its customers, the company ensures that their interest in terms of quality and contract performance is guaranteed. SIGCO sources quality products from all over the world and is well-placed to guarantee security of supply to its customers. Due to its extensive knowledge of suppliers at origin and high level of product know-how, the edible seed specialist complies with the ever-higher standards of food safety. From its base near the port of Hamburg, SIGCO delivers processed and unprocessed seeds to internal and external markets. Close relationships with logistics and warehousing partners guarantee adequate buer stocks and a safe ow of materials for just-in-time supply. The company oers custom- designed packaging, tailored to customer needs. SIGCO is a reliable partner that always honours its contracts. SCAN For more information about the added value of SIGCO Warenhandelsgesellschaft PRODUCTS Seeds: sunower, sesame, pumpkin, caraway, blue poppy, linseed, ax, millet, chia, quinoa ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 87 Input suppliers | Denition of specications | Farmer aggregation | Agricultural extension services | Farming | Post-harvest activities Trading | Food processing | Food packaging | Transport, storage, logistics | Inventory management and control DISTRIBUTION GROWING POST-HARVEST INPUTS TRADING PROCESSING TRADIN ORGANIC ENSURING BEST ORGANIC PRACTICES THROUGHOUT THE VALUE CHAIN Organic sugarcane farmer and Tradin Organic agronomist discussing the crop ANNUAL REPORT 202188 AMSTERDAM COMMODITIES N.V. Food industry | Wholesale | Retail (schools, grocery stores and local open markets) | Foodservice (restaurants and catering) CUSTOMERS CONSUMERS Tradin Organic is the global front runner in premium organic products and ingredients, adding value throughout the chain with its unique sourcing, processing and distribution capabilities. Through exceptional quality control and control of the value chain, Tradin Organic guarantees the integrity of its entire product range, while just-in-time deliveries and mixed, consolidated orders ensure the stable supply of organic ingredients to its customers. Tradin Organic is the leading global supplier of certied organic food ingredients, with a portfolio that comprises more than 230 products over 17 product categories. With its wide range of products, the company is able to meet the rapidly growing consumer demand for healthy, avourful and ethical food ingredients. Tradin Organic’s products are sourced through equitable supply chains and regenerative and resilient organic farming practices. By helping farmers to adopt more sustainable farming practices that build the quality of their soils, Tradin Organic lays a healthy foundation to grow nutritious and delicious food ingredients for today’s and future generations. SCAN For more information about the added value of Tradin Organic PRODUCTS Dry ingredients | Fruit ingredients | Cocoa | Oil | Coee | Premium juice products | Organic certied ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 89 Input suppliers | Denition of specications | Farmer aggregation | Agricultural extension services | Farming | Post-harvest activities Trading | Food processing (including cleaning and blending) | Food packaging | Transport, storage, logistics | Inventory management and control DISTRIBUTION GROWING POST-HARVEST INPUTS TRADING PROCESSING ROYAL VAN REES GROUP OVER 200 YEARS OF WORLD-CLASS TEA EXPERTISE ANNUAL REPORT 202190 AMSTERDAM COMMODITIES N.V. Production of speciality tea blends at the tea facility in North America Food industry | Wholesale | Retail (schools, grocery stores and local open markets) | Foodservice (restaurants and catering) CUSTOMERS CONSUMERS Royal Van Rees Group is a full-service provider with its own state-of-the-art, fully certied warehouses and blending facilities in many major tea-producing countries. The company adds value throughout the chain in a wide variety of ways, including customer-specic blends, vendor-managed inventory, just-in-time delivery, long-term contracts, supply chain nancing, and market advice. Quality and safety are guaranteed at every level by ensuring strict quality control, 100% traceability in a global ERP system and compliance with all major relevant certications. Royal Van Rees Group’s traders constantly monitor and analyse market developments and share insights with customers, laying the foundation for top-quality supply of food-safe and sustainably sourced products that meet both traditional consumer preferences and novel appetites for speciality teas. The story of the Royal Van Rees Group started in 1819, when a young man named Jan van Rees started a tea company in the Netherlands. Over the course of two centuries of success, the company grew into one of the world’s leading tea suppliers with oces around the globe. Thanks to its over 200 years of excellence, the company was awarded the designation “Royal” in 2019. SCAN For more information about the added value of Royal Van Rees Group PRODUCTS Tea, specialities and fruits & herbals | Blending | Tailor-made solutions for customers and suppliers, including vendor-managed inventory and just-in-time delivery ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 91 Input suppliers | Denition of specications | Farmer aggregation | Agricultural extension services | Farming | Post-harvest activities Trading | Food processing (including blending) | Food packaging | Transport, storage, logistics | Inventory management and control DISTRIBUTION GROWING POST-HARVEST INPUTS TRADING PROCESSING SNICK EUROINGREDIENTS FOOD TECHNOLOGISTS WITH AN UNWAVERING COMMITMENT TO EXCELLENCE ANNUAL REPORT 202192 AMSTERDAM COMMODITIES N.V. Development of new distinctive consumer food product concepts at Snick EuroIngredients Food industry | Wholesale | Retail (schools, grocery stores and local open markets) | Foodservice (restaurants and catering) CUSTOMERS CONSUMERS Snick EuroIngredients develops unique and innovative solutions for its customers in its professional innovation centre and production facility in Belgium, where each new product is thoroughly tasted and tested. Through exclusive partnerships with specialized suppliers, Snick has access to the latest innovations in raw ingredients and technology. The company produces and supplies culinary and functional ingredients, wet and dry blends, and spice mixes of the highest quality for food companies in Europe, tailor-made to customers’ specications. To meet the food industry’s rapidly growing demand for alternative sources of protein, Snick has developed a high-end range of plant-based solutions. Snick’s services include product development, manufacturing, packaging, distribution, and inventory management. The company adds value through its extensive knowledge of the possibilities of ingredients and passes this value on to customers’ products. The highest standards in quality, food safety and sustainability are guaranteed by certications. Snick’s food technologists have an unwavering commitment to excellence, to meet customer and consumer demand for healthy, avourful and sustainable food products that reect today’s trends. SCAN For more information about the added value of Snick EuroIngredients PRODUCTS Savoury, sweet and functional ingredients | Unique and innovative tailor-made solutions in concepts and blends ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 93 FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF INCOME STATEMENT OF COMPREHENSIVE INCOME BALANCE SHEET AS AT 31 DECEMBER STATEMENT OF CASH FLOWS STATEMENT OF CHANGES IN EQUITY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS All amounts are in thousands of euros, unless otherwise stated. CONSOLIDATED STATEMENT OF INCOME (in € thousands) Note 2021 2020 Sales 5 1,254,436 707,364 Cost of goods sold 6 (1,084,203) (612,643) Gross prot 170,233 94,721 General and administrative expenses 7 (90,002) (54,872) Operating income (EBIT) 80,231 39,849 Interest income 9 259 25 Interest expense 9 (7,666) (2,688) Other nancial income/(expenses) 9 263 (284) Financial income/(expenses) (7,144) (2,947) Prot before income tax 73,087 36,902 Corporate income tax 10 (19,100) (9,853) Net prot 53,987 27,049 Prot attributable to shareholders of the Company 53,956 27,035 Prot attributable to non-controlling interests 31 14 Earnings per share Basic 11 1.823 1.086 Diluted 11 1.820 1.086 The notes on pages 101 to 136 are an integral part of these consolidated nancial statements. ANNUAL REPORT 202196 AMSTERDAM COMMODITIES N.V. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (in € thousands) 2021 2020 Net prot 53,987 27,049 Other comprehensive income (OCI) OCI to be reclassied to prot or loss in subsequent periods Movement currency translation reserves 21,133 (9,249) Movement on cash ow hedges 220 (66) OCI to be reclassied to prot or loss in subsequent periods 21,353 (9,315) OCI not to be reclassied to prot or loss in subsequent periods Remeasurement gains/(losses) on dened benet plans 259 (169) OCI not to be reclassied to prot or loss in subsequent periods 259 (169) Total other comprehensive income 21,612 (9,484) Total comprehensive income 75,599 17,565 Total comprehensive income attributable to shareholders of the parent 75,414 17,557 Total comprehensive income attributable to non-controlling interests 185 8 The notes on pages 101 to 136 are an integral part of these consolidated nancial statements. Items in the statement above are disclosed net of income tax. The income tax relating to each component of other comprehensive income is disclosed in Note 10. ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 97 CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER (in € thousands) Assets 31 December 31 December Non-current assets Note 2021 2020 Intangible assets 13.1 204,417 207,245 Property, plant and equipment 13.2 53,495 57,356 Right-of-use assets 13.3 17,053 16,873 Other non-current receivables 12.2 1,370 1,658 Deferred tax assets 13.5 1,664 1,241 Total non-current assets 277,999 284,373 Current assets Inventories 13.4 393,201 265,707 Trade receivables 12.1 161,698 128,174 Other receivables 12.2 23,296 21,798 Derivative nancial instruments 12.3 4,384 867 Cash and cash equivalents 12.4 3,254 3,507 Total current assets 585,833 420,053 Assets held-for-sale 2,925 - Total assets 866,757 704,426 Equity and liabilities Shareholders’ equity Share capital 14.1 13,325 13,312 Share premium reserve 14.1 155,105 154,642 Other reserves 14.2 22,102 475 Retained earnings 119,773 92,794 Net prot for the year 53,956 27,035 Total shareholders’ equity 364,261 288,258 Non-controlling interests 1,393 1,208 Total equity 365,654 289,466 Non-current liabilities and provisions Bank borrowings 12.5 104,068 136,403 Lease liabilities 13.3 14,112 13,745 Deferred tax liabilities 13.5 14,565 12,499 Retirement benet obligations 13.6 1,928 2,114 Provisions 13.7 205 114 Other non-current liabilities - 1,565 Total non-current liabilities 134,878 166,440 Current liabilities Current portion long-term bank borrowings 23,290 16,025 Bank borrowings 12.5 206,421 124,715 Lease liabilities 13.3 3,517 3,726 Trade creditors 83,338 56,220 Tax liabilities 5,834 1,939 Derivative nancial instruments 12.3 730 4,521 Other current liabilities and accrued expenses 43,095 41,374 Total current liabilities 366,225 248,520 Total liabilities 501,103 414,960 Total equity and liabilities 866,757 704,426 The notes on pages 101 to 136 are an integral part of these consolidated nancial statements. ANNUAL REPORT 202198 AMSTERDAM COMMODITIES N.V. CONSOLIDATED STATEMENT OF CASH FLOWS (in € thousands) Cash ow from operating activities Note 2021 2020 Prot before income tax 73,087 36,902 Adjustments for: • Depreciation and amortization 13.1, 13.2 24,589 10,058 • Net increase/(decrease) in provisions 4,442 280 • Interest income 9 (259) (25) • Interest expense 9 6,320 2,529 • Other 1,272 2,834 Cash ow from operating activities excluding working capital 109,451 52,578 Changes in working capital • Inventories (115,139) (877) • Trade and other receivables (33,442) (9,094) • Derivatives (6,460) 235 • Trade and other payables 25,609 939 Total increase in working capital, net (129,432) (8,797) Cash generated from operations (19,981) 43,781 Interest paid (5,713) (2,156) Income tax paid (10,678) (6,656) Net cash generated from operating activities (36,372) 34,969 Cash ow from investing activities Investments in property, plant and equipment and intangible assets 13.1, 13.2 (7,768) (5,348) Acquisitions (765) (265,996) Other investing activities (2,738) 200 Net cash used for investing activities (11,271) (271,144) Cash ow from nancing activities Net proceeds from new shares issued 14.1 476 94,833 Proceeds from borrowings 34,987 260,165 Repayments of long-term borrowings 12.5 (28,003) (1,052) Net changes in bank nancing of working capital 12.5 43,792 (84,420) Payments of leases (4,131) (3,431) Dividends paid to shareholders - (27,120) Net cash used for nancing activities 47,121 238,975 Net increase/(decrease) in cash and cash equivalents (522) 2,800 Cash and cash equivalents at the beginning of the year 3,507 732 Exchange gains/(losses) on cash and cash equivalents 269 (25) Cash and cash equivalents at the end of the year 3,254 3,507 The notes on pages 101 to 136 are an integral part of these consolidated nancial statements. ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 99 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (in € thousands) Attributable to owners of the Company Net prot for the year Total share- holders equity Non- controlling interests Total equityNote Share capital Share premium reserve Other reserves Retained earnings Balance 1 January 2020 11,093 62,028 9,910 87,834 32,077 202,942 62 203,004 Net prot 2020 - - - - 27,035 27,035 14 27,049 Other comprehensive income 2020 - - (9,478) - - (9,478) (6) (9,484) Total comprehensive income 2020 - - (9,478) - 27,035 17,557 8 17,565 Appropriation of net prot - - - 32,077 (32,077) - - - New shares issued 14.1 2,219 92,614 - - - 94,833 - 94,833 Share based payments 14.2 - - 43 - - 43 - 43 Non-controlling interests - - - - - - 1,138 1,138 Dividends relating to 2019, nal - - - (17,256) - (17,256) - (17,256) Dividends relating to 2020, interim - - - (9,861) - (9,861) - (9,861) Transactions with shareholders 2,219 92,614 43 4,960 (32,077) 67,759 1,138 68,897 Balance 31 December 2020 13,312 154,642 475 92,794 27,035 288,258 1,208 289,466 Net prot 2021 - - - - 53,956 53,956 31 53,987 Other comprehensive income 2021 - - 21,458 - - 21,458 154 21,612 Total comprehensive income 2021 - - 21,458 - 53,956 75,414 185 75,599 Appropriation of net prot - - - 27,035 (27,035) - - - New shares issued 14.1 13 463 - - - 476 - 476 Share based payments 14.2 - - 169 (56) - 113 - 113 Transactions with shareholders 13 463 169 26,979 (27,035) 589 - 589 Balance 31 December 2021 13,325 155,105 22,102 119,773 53,956 364,261 1,393 365,654 The notes on pages 101 to 136 are an integral part of these consolidated nancial statements. ANNUAL REPORT 2021100 AMSTERDAM COMMODITIES N.V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1 General information Amsterdam Commodities N.V. (‘Acomo’ or ‘the Company’) and its subsidiaries (collectively ‘the Group’) are an international group of companies active in the sourcing, trading, processing, packaging and distribution of natural food products and ingredients for the food and beverage industry. The Group’s product portfolio broadly encompasses spices, coconut products, nuts, dried fruits, edible seeds, tea, (organic) cocoa, (organic) coee, edible oils, food products and ingredients. Acomo is a public limited liability company listed on the Amsterdam stock exchange (Euronext Amsterdam, AEX: ACOMO). The address of its registered oce is Beursplein 37, 3011 AA Rotterdam, the Netherlands, Chamber of Commerce number: 24191858. These nancial statements were approved by the Board of Directors on 10 March 2022. The Management Board report as dened by Article 391 of Book 2 of the Dutch Civil Code is constituted by the following parts of the annual report: At a Glance, Key Data, Consolidated Figures, Letter from the CEO, The Acomo Group, Our Value Creation Model, ESG, Governance, Risk Management and Control, Remuneration Report, The Acomo Share, Business Performance, and Information Takeover Directive Decree. 2 Summary of signicant accounting policies The principal accounting policies applied in the preparation of these consolidated nancial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. 2.1 Basis of preparation The consolidated nancial statements of Acomo have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. They also comply with the nancial reporting standards included in Title 9 of Book 2 of the Dutch Civil Code when applicable. The consolidated nancial statements are presented in thousands of euros unless otherwise stated and have been prepared under the historical cost convention unless otherwise stated. The consolidated nancial statements have been prepared on a going concern basis. The areas where assumptions and estimates are signicant to the consolidated nancial statements are disclosed in Note 4. 2.2 Accounting standards 2.2.1 New and amended standards adopted by the Group The Group has applied the following standards and amendments for the rst time for its annual reporting period commencing 1 January 2021: • COVID-19 Related Rent Concessions – amendments to IFRS 16, and • Interest Rate Benchmark Reform – Phase 2 – amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16. The Group also elected to adopt the following amendments early: • Annual Improvements to IFRS Standards 2018–2020, and • Deferred Tax related to Assets and Liabilities arising from a Single Transaction – amendments to IAS 12. The amendments listed above did not have any impact on the amounts recognized in prior periods and are not expected to signicantly aect the current or future periods. 2.2.2 New standards and interpretations not yet effective Certain new accounting standards and interpretations have been published that are not mandatory for 31 December 2021 reporting period and have not yet been adopted by the Group. These standards are not expected to have a material impact on the Group in the current or future reporting periods and on foreseeable future transactions. 2.3 Consolidation (a) Subsidiaries Subsidiaries are all those entities over which the Company has control. The Company controls an entity when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to aect those returns through its power over the entity. Subsidiaries are fully consolidated from the date that control is transferred to the Company until the date that control ceases. The Group uses the acquisition method of accounting to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 101 assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Acquisition-related costs are expensed as incurred. Intercompany transactions, balances and unrealized gains on transactions between group companies are eliminated. Unrealized losses are also eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. Transactions with non-controlling interests that do not result in a loss of control are accounted for as equity transactions. Gains or losses on disposals to non-controlling interests are also recorded in equity. (b) Associates Associates are all entities over which the Group has signicant inuence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Currently the Group has no associates. In the 2021 consolidated nancial statements, the Company and the following subsidiaries are included: Percentage of ownership Subsidiaries City and country of incorporation 2021 2020 Acomo European Nuts Holding B.V. Bodegraven, the Netherlands 100% 100% Acomo Food Ingredients Holding B.V. Rotterdam, the Netherlands 100% 100% Acomo Investments B.V. Rotterdam, the Netherlands 100% 100% Acomo North American Commodities B.V. Rotterdam, the Netherlands 100% 100% Acomo Seeds Holding B.V. Etten-Leur, the Netherlands 100% 100% Acomo US Holdings LLC Fargo (ND), USA 100% 100% Food Ingredients Service Center Europe B.V. Etten-Leur, the Netherlands 100% 100% Red River-van Eck B.V. Etten-Leur, the Netherlands 100% 100% Red River Bulgaria EOOD Varna, Bulgaria 100% 100% Red River Commodities Inc. Fargo (ND), USA 100% 100% Red River Global Ingredients Ltd. Winkler, Canada 100% 100% Red River Commodities International Inc. Fargo (ND), USA 100% 100% SunGold Foods Inc. Fargo (ND), USA 100% 100% SunButter LLC Fargo (ND), USA 100% 100% SIGCO Warenhandelsgesellschaft mbH Hamburg, Germany 100% 100% Snick EuroIngredients N.V. Ruddervoorde, Belgium 100% 100% Catz International B.V. Rotterdam, the Netherlands 100% 100% Catz International Dried Fruits B.V. Rotterdam, the Netherlands - 100% Delinuts B.V. Ede, the Netherlands 100% 100% King Nuts B.V. Bodegraven, the Netherlands 100% 100% Tovano B.V. Maasdijk, the Netherlands 100% 100% Van Rees Group B.V. Rotterdam, the Netherlands 100% 100% Van Rees India B.V. Rotterdam, the Netherlands 100% 100% P.T. Van Rees Indonesia Jakarta, Indonesia 100% 100% Van Rees Kenya Ltd. Mombasa, Kenya 100% 100% Van Rees B.V. Rotterdam, the Netherlands 100% 100% Van Rees North America Inc. Toronto, Canada 100% 100% Van Rees LLC Moscow, Russia 100% 100% ANNUAL REPORT 2021102 AMSTERDAM COMMODITIES N.V. Percentage of ownership Subsidiaries City and country of incorporation 2021 2020 Van Rees Ceylon Ltd. Peliyagoda, Sri Lanka 100% 100% Van Rees Ceylon B.V. Rotterdam, the Netherlands 100% 100% Van Rees Middle East Ltd. Dubai, United Arab Emirates 100% 100% Van Rees United Kingdom Ltd. London, United Kingdom 100% 100% Van Rees India Private Ltd. Coonoor, India 90% 90% The Organic Corporation B.V. Amsterdam, the Netherlands 100% 100% Crown of Holland B.V. Middenmeer, the Netherlands 100% 100% FOGO Coee Spirit LDA Mosteiros, Cape Verde 51% 51% Organic Development Services B.V. Amsterdam, the Netherlands 100% 100% Organic Land Corporation OOD Varna, Bulgaria 100% 100% Organic Raw Materials SAS Cavaillon, France 100% 100% Sanmark B.V. Amsterdam, the Netherlands 100% 100% Selet Hulling Corporation Plc Addis Ababa, Ethiopia 100% 100% Suncomo Foods Bulgaria EOOD Varna, Bulgaria 100% 100% SunAvo B.V. Amsterdam, the Netherlands 87.5% 87.5% SunVado Manufacturing Plc Addis Ababa, Ethiopia 100% 100% Supreme Smallholders Coee LLC Addis Ababa, Ethiopia 52% 52% Trabocca B.V. Amsterdam, the Netherlands 65% 65% Tradin Organic Agriculture B.V. Amsterdam, the Netherlands 100% 100% Tradin Organic Cocoa B.V. Amsterdam, the Netherlands 100% 100% Tradin Organics USA LLC Scotts Valley (CA), USA 100% 100% Tradin Sierra Leone Ltd. Kenema, Sierra Leone 100% 100% 2.4 Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the Acomo Board of Directors (‘The Board’). The Board is responsible for the allocation of the available resources, the assessment of the operational results and strategic decisions. The Board assesses the performance of the reporting segments based on a measure of adjusted prot before tax. This measurement basis excludes the eects of non-recurring expenditures from the operating segments such as restructuring costs, legal expenses and goodwill impairments when the impairment is the result of an isolated, non-recurring event. The Company has determined that Spices and Nuts, Edible Seeds, Organic Ingredients, Tea and Food Ingredients represent the reportable segments for the Group. These reportable segments have been determined by aggregation of a number of operating segments that meet the aggregation criteria as described in IFRS 8 (similar economic characteristics and similar nature of products) into reportable segments. The segment information is disclosed in Note 5. 2.5 Foreign currency translation (a) Functional and presentation currency Items included in the nancial 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’). The consolidated nancial statements are presented in euros, the Company’s functional and presentation currency. All nancial information presented in otherwise euros has been rounded to the nearest thousand unless otherwise stated. (b) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of income. ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 103 Translation dierences on non-monetary nancial assets are included in other comprehensive income (OCI). Foreign exchange gains and losses that relate to borrowings are presented in the statement of income, within nance costs. All other foreign exchange gains and losses are presented in the statement of income on a net basis within other income or other expenses. (c) Group companies The results and nancial position of all the Group’s entities (none of which has the currency of a hyper-inationary economy) that have a functional currency dierent from the presentation currency are translated into the presentation currency as follows: • Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet; • Income and expenses for each income statement are translated at average exchange rates unless this average is not a reasonable approximation of the cumulative eect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions; and • All resulting exchange dierences are recognized in OCI. On consolidation, exchange dierences arising from the translation of the net investment in foreign operations, and of borrowings designated as hedges of such investments, are taken to OCI. When a foreign operation is partially disposed of or sold, exchange dierences that were recorded in equity are recognized in the income statement as part of the gain or loss on sale. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. The resulting changes are recognized in OCI. 2.6 Intangible assets (a) Goodwill Goodwill represents the excess of the consideration transferred of an acquisition over the fair value of the Group’s share of the net identiable assets of the acquired business at the date of acquisition. For the purpose of impairment testing, goodwill is allocated to cash-generating units (CGUs), being the parts of the operating segments benetting from the business combination in which the goodwill arose. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level. Goodwill is not amortized, but goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. The carrying value of the CGU containing the goodwill is compared to the recoverable amount, which is the higher of value in use and fair value less costs of disposal. Any impairment is recognized immediately as an expense and is not subsequently reversed. (b) Software Costs related to the development and installation of software are capitalized at historical cost and amortized, using the straight-line method over the estimated useful life (3-5 years). (c) Other intangible assets Other intangible assets include acquired customer relations, order books and trade names/certicates. Intangible assets that are acquired through business combinations are initially valued at fair value. This fair value is subsequently treated as deemed cost. These identiable intangibles are then amortized using the straight-line method over the estimated useful life. The useful lives of the following categories are used for amortization purposes: Customer relations 10-20 years Order books 1-2 years Trade names/certicates 20-40 years 2.7 Property, plant and equipment Property, plant and equipment are valued at historical cost using a component approach less depreciation and impairment losses. In addition to the costs of acquisition, the Company also includes costs of bringing the asset to its working condition, handling and installation costs and the non-refundable purchase taxes. Under the component approach, each component of an item of property, plant and equipment with a cost that is signicant in relation to the total cost of the item is depreciated separately. Depreciation is calculated using the straight-line method based on the estimated useful life, taking into account any residual value. The asset’s residual value and useful life are reviewed and adjusted, if appropriate, at each balance sheet date. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset as appropriate, only if and when it is probable that future economic benets associated with the item will ow to ANNUAL REPORT 2021104 AMSTERDAM COMMODITIES N.V. the Company and the cost of the item can be measured reliably. Land is not depreciated. The useful lives of the following categories are used for depreciation purposes: Buildings 20-30 years Building improvements 5-10 years Machinery and equipment 5-15 years Vehicles 3-5 years Furniture, ttings and equipment 3-8 years An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount exceeds its estimated recoverable amount (Note 2.8). Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized in the income statement. 2.8 Impairment of non-nancial assets An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identiable cash ows (CGUs). An impairment loss will be reversed if there is a change in the estimates used to determine the recoverable amount of the assets since the last impairment loss was recognized. The net book amount of the asset will be increased to its recoverable amount. Goodwill is never subject to reversion of impairment losses recognized. 2.9 Derivative nancial instruments including hedge accounting Derivative nancial instruments include forward currency contracts and commodity futures. These are used to manage the Group’s exposure to risks associated with foreign currency and commodity price uctuations. Derivative nancial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative. Any gains or losses arising from changes in the fair value of derivatives are taken directly to prot or loss, except for the eective portion of cash ow hedges, which is recognized in OCI and later reclassied to prot or loss when the hedged item aects prot or loss. All operating companies are required to hedge their foreign exchange exposure related to transactions against their functional currency. The Group discontinues hedge accounting when the qualifying criteria for the hedged relationship are no longer met. At the moment only the Tea segment applies hedge accounting. For the purpose of hedge accounting, IFRS 9 has been applied. Hedges are classied as cash ow hedges when hedging the exposure to variability in cash ows that is either attributable to a particular risk associated with a recognized asset or liability or a highly probable forecast transaction or the foreign currency risk in an unrecognized rm commitment transaction (cash ow hedge). At the inception of a hedge relationship, the Group formally designates and documents the hedge relationship to which the Group wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. Hedges that are expected to be highly eective in achieving osetting changes in cash ows are assessed on an ongoing basis to determine if they actually have been highly eective throughout the nancial reporting periods for which they were designated. Hedges which meet the strict criteria for hedge accounting are accounted for as follows: • The eective portion of the gain or loss on the hedging instrument is recognized in OCI in the cash ow hedge reserve, while any ineective portion is recognized immediately in the statement of income within Cost of goods sold. • Amounts recognized as OCI are transferred to prot or loss when the hedged transaction aects prot or loss, such as when a forecast sale occurs. • When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss previously recognized in OCI remains separately in equity until the forecast transaction occurs. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the income statement. ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 105 2.10 Inventories Inventories are stated at the lower of cost and net realizable value. Cost is determined using the rst-in, rst- out (FIFO) method. The cost of nished goods and semi- nished products comprises raw materials, direct labour, other direct costs and related production overheads (based on normal operating capacity), but excludes borrowing costs. Net realizable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses. 2.11 Trade and other receivables and trade and other payables Trade receivables are amounts due from customers for goods sold in the ordinary course of business. Trade receivables and other receivables are recognized initially at fair value and subsequently measured at amortized cost using the eective interest method, less provision for impairment, taking into account expected credit losses. If collection is expected in one year or less, they are classied as current assets. If not, they are presented as non-current assets. The Group applies the IFRS 9 simplied approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables. Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade payables and other short-term monetary liabilities are initially recognized at fair value and subsequently carried at amortized cost using the eective interest method. If payment is due within one year or less, they are classied as current liabilities. If not, they are presented as non-current liabilities. 2.12 Cash and cash equivalents Cash and cash equivalents include cash at banks and on hand and short-term highly liquid investments with an original maturity of three months or less. Bank overdrafts are shown within Borrowings in current liabilities in the consolidated balance sheet. 2.13 Assets held-for-sale Non-current assets (or disposal groups) are classied as assets held for sale when their carrying amount is to be recovered principally through a sale transaction and a sale is considered highly probable. They are stated at the lower of the carrying amount and fair value less costs to sell. Assets held for sale are no longer amortised or depreciated from the date they are classied as such. 2.14 Share capital Ordinary issued shares are classied as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are charged to the share premium reserve as a deduction, net of tax, from the proceeds. 2.15 Borrowings Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently carried at amortized cost; any dierence between the proceeds (net of transaction costs) and the redemption value is recognized in the income statement over the period of the borrowings using the eective interest method. Fees paid in connection to new loan facilities are recognized as transaction costs of the loan. Borrowings are classied as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period. 2.16 Leases The Group assesses whether a contract is or contains a lease at inception of the contract. The Group recognizes a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases (dened as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the Group recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benets from the leased assets are consumed. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise: • Fixed lease payments (including in-substance xed payments), less any lease incentives receivable; • Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date; • The amount expected to be payable by the lessee under residual value guarantees; • The exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and ANNUAL REPORT 2021106 AMSTERDAM COMMODITIES N.V. • Payments of penalties for terminating the lease, if the lease term reects the exercise of an option to terminate the lease. Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The lease liability is subsequently measured by increasing the carrying amount to reect interest on the lease liability (using the eective interest method) and by reducing the carrying amount to reect the lease payments made. The Group remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever: • The lease term has changed or there is a signicant event or change in circumstances resulting in a change in the assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate; • The lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised lease payments using an unchanged discount rate (unless the lease payments change is due to a change in a oating interest rate, in which case a revised discount rate is used); and • A lease contract is modied and the lease modication is not accounted for as a separate lease, in which case the lease liability is remeasured based on the lease term of the modied lease by discounting the revised lease payments using a revised discount rate at the eective date of the modication. The Group did not make any such adjustments during the periods presented. The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day, less any lease incentives received and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses. Whenever the Group incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions of the lease, a provision is recognized and measured as described in Note 2.20. To the extent that the costs relate to a right-of-use asset, the costs are included in the related right-of-use asset, unless those costs are incurred to produce inventories. Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reects that the Group expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease. The Group applies IAS 36 to determine whether a right-of- use asset is impaired and accounts for any identied impairment loss as described in Note 2.8, Impairment of non-nancial assets. 2.17 Current and deferred corporate income tax Income tax comprises current and deferred tax. Income tax is recognized in the statement of income except to the extent that it relates to items recognized directly within equity or in OCI. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income, and any adjustment to tax payable in respect of previous years. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. Deferred income tax is recognized, using the liability method, on temporary dierences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated nancial statements. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill; deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction aects neither accounting nor taxable prot or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted at the balance sheet date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 107 Deferred income tax assets and liabilities are oset when there is a legally enforceable right to oset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or dierent taxable entities where there is an intention to settle the balances on a net basis. Deferred income tax assets are recognized only to the extent that it is probable that future taxable prot will be available against which the temporary dierences can be utilized. Deferred income tax is provided on temporary dierences arising on investments in subsidiaries and associates, except for deferred income tax liability where the timing of the reversal of the temporary dierence is controlled by the Group and it is probable that the temporary dierence will not reverse in the foreseeable future. Deferred tax liabilities for withholding taxes are recognized for subsidiaries in situations where the income is to be paid out as dividend in the foreseeable future to the extent that these withholding taxes are not expected to be refundable or deductible. Changes in tax rates are reected in the period when the change has been enacted or substantially enacted by the reporting date. 2.18 Employee benets Group companies operate various pension schemes. The schemes are generally funded through payments to insurance companies or trustee-administered funds, determined by periodic actuarial calculations. The Group has one dened benet plan and various dened contribution plans. A dened contribution plan is a pension plan under which the Group pays xed contributions into a separate entity. The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sucient assets to pay all employees the benets relating to employee service in the current and prior periods. The contributions are recognized as personnel expenses when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available. A dened benet plan typically denes an amount of pension benet that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. The dened benet obligation is calculated annually by independent actuaries using the projected unit credit method. Remeasurements, comprising of actuarial gains and losses, the eect of the asset ceiling, excluding net interest (not applicable to the Group) and the return on plan assets (excluding net interest), are recognized immediately in the statement of nancial position with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Remeasurements are not reclassied to prot or loss in subsequent periods. Past service costs are recognized in income on the earlier of the date of the plan amendment or curtailment, and the date that the Group recognizes restructuring-related costs. Net interest is calculated by applying the discount rate to the net dened benet liability or asset. Short-term employee benet obligations are measured on an undiscounted basis and are expensed as the related service is provided. The Group recognizes a liability and an expense for bonuses and prot sharing based on a percentage (generally 10% - 15%) of the prot before tax of the respective subsidiary. The Group recognizes a provision where contractually obliged or where there is a past practice that has created a constructive obligation. 2.19 Share-based payments On 1 September 2010, the Group introduced an equity- settled share-based compensation plan, under which the entity receives services from employees as consideration for equity instruments (options) of the Company. The fair value of the employee services received in exchange for the grant of the options is recognized as an expense in the income statement, with a corresponding adjustment to equity. The total amount to be expensed is determined by reference to the fair value of the options granted as measured at the date of grant. Non-market vesting conditions are included in assumptions about the number of options that are expected to vest. The total expense is recognized over the vesting period, which is the period over which all of the specied vesting conditions are to be satised. At the end of each reporting period, the entity revises its estimates of the number of options that are expected to vest based on the non-market vesting conditions. It recognizes the impact of the revision to original estimates, if any, in the income statement, with a corresponding adjustment to equity. ANNUAL REPORT 2021108 AMSTERDAM COMMODITIES N.V. When the options are exercised, the Company issues new shares. The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised. 2.20 Provisions Provisions are recognized when the Group has a legal or constructive obligation as result of a past event, when it is probable that an outow of economic benets will be required to settle the obligation and when a reliable estimate can be made of the amount of the obligation. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reects current market assessments of the time value of money and the risks specic to the obligation. The increase in the provision due to passage of time is recognized as interest expense (when the time value of money is material). An onerous contract is considered to exist where the Group has a contract under which the unavoidable costs of meeting the obligations under the contract exceed the economic benets expected to be received from the contract. Present obligations arising under onerous contracts are recognized and measured as provisions. 2.21 Revenue recognition and other income Revenue relates to the sale of goods and services in the ordinary course of the Group’s activities. Revenue is shown net of value-added tax, returns, rebates and discounts and after eliminating sales within the Group. Revenue is recognized when the performance obligations have been satised, which is once control of the goods and/or services has transferred from the Group to the buyer. Revenue is measured based on considerations specied in the contract with a customer and excludes amounts collected on behalf of third parties. (a) Sales of goods Sales of goods are recognized when a Group entity satises a performance obligation by transferring promised products to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfullled obligation that could aect the customer’s acceptance of the products. Delivery normally does not occur until the products have been shipped to the specied location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed or the Group has objective evidence that all criteria for acceptance have been satised. Sales are recorded based on the prices specied in the sales contracts. Revenue is recognized in the (limited) cases when certain client specic goods have been created by processing and packaging, that do not have an alternative use to the Group, even when the nished goods have not been physically shipped and invoiced yet, in accordance with IFRS 15. (b) Interest income Interest income is recognized using the eective interest method. When a loan or receivable is impaired, the Group reduces the carrying amount to its recoverable amount, being the estimated future cash ow discounted at the original eective interest rate of the instrument, and continues unwinding the discount as interest income. Interest income on impaired loans and receivables is recognized using the original eective interest rate. (c) Dividend income If applicable, dividend income is recognized when the right to receive payment has been established, which is generally when shareholders approve the dividend. 2.22 Cost of goods sold Cost of goods sold is recorded in the same period in which the sales are recognized. 2.23 Gross prot Gross prot represents the dierence between sales and cost of goods sold. 2.24 General and administrative expenses General and administrative expenses are allocated to the periods to which they relate. 2.25 Dividend distribution Dividend distribution to the Company’s shareholders is recognized as a liability in the Company’s nancial statements in the period in which the dividends are approved by the Company’s shareholders. 2.26 Cash ow statement The statement of cash ows is prepared using the indirect method. Cash ows in foreign currencies are translated into euros using the weighted average rates of exchange for the periods involved. ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 109 3 Risk management 3.1 Risk factors The Group is exposed to a variety of market and nancial risks (including foreign exchange risk, interest rate risk and price risk), credit risks and liquidity risks. The Group’s overall risk management focuses on the unpredictability of commodity and nancial markets and seeks to minimize potential adverse eects on the Group’s nancial performance. The Group uses derivative nancial instruments to hedge certain foreign currency risk exposures. Risk management is carried out under policies approved by the Board of Directors. Risks are identied, evaluated and hedged in close cooperation with the Group’s operating units. The Board and the operating companies’ management apply policies covering specic areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative nancial instruments and investment of excess liquidity. The food products in which the Group trades are not traded on commodity exchanges or spot markets. The group companies contract and purchase the products in general at the source for physical delivery. For further explanation on Risk Management and Control see page 48. 3.1.1 Market risks (a) Foreign exchange risk The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the US dollar. Foreign exchange risk arises from current and future commercial transactions, current and future costs, recognized assets and liabilities and net investments in foreign operations. The Board has set up a policy to require group companies to manage their foreign exchange risk against their functional currency. The group companies are required to hedge their foreign exchange risk exposure arising from sales and purchase transactions within the respective company in accordance with Group policies. To manage their foreign exchange risk arising from future commercial transactions and recognized assets and liabilities, entities in the Group use forward contracts, transacted with external banks and net borrowings in foreign currencies. Foreign exchange risk arises when future commercial transactions or recognized assets or liabilities are denominated in a currency that is not the entity’s functional currency. The Group has certain investments in foreign operations whose net assets are exposed to foreign currency translation risk. Currency exposure arising from the net assets of the Group’s foreign operations is managed primarily through borrowings denominated in the relevant foreign currencies. For the year 2021, if the average US dollar currency applied had weakened/strengthened by 5% against the euro with all other variables held constant, net prot for the year would have been approximately €1.4 million higher/lower (2020: €0.6 million), mainly as a result of foreign exchange results on translation of US-dollar-denominated income from the Tea, Edible Seeds and Organic Ingredients business. As at 31 December 2021, the total impact on shareholders’ equity of a 5% US dollar increase/decrease relating to equity of subsidiaries with a US dollar functional currency would have been approximately €11.0 million (2020: €7.1 million). Similarly, total assets would have increased/decreased by approximately €17.4 million (2020: €11.7 million) in case of the euro/US dollar rate being 5% higher/lower than the rate as at 31 December 2021 that has been used. The Group’s exposure to foreign currency changes for all other currencies is not material. (b) Price risk The Company’s results are sensitive to commodity market price movements. In order to manage the eects of price movements of commodities, the group companies apply internally determined trading guidelines including maximum positions per product group and overall positions. For certain organic products (cocoa and coee), where exchange-traded futures and options are available for the conventional equivalent, the Group purchases and sells primarily exchange-traded futures and options with the purpose of managing market exposure to adverse price movements in these commodities. From a nancing point of view, headroom available within bank facilities is closely monitored in order to be able to nance increased working capital requirements when commodity prices increase. (c) Interest rate risk The Group’s interest rate risk arises from long-term borrowings and working capital nancing. Borrowings and working capital nancing contracted at variable interest rates expose the Group to cash ow interest rate risk which is partially oset by cash held at variable interest rates. Borrowings issued at xed interest rates expose the Group to fair value interest rate risk. During 2021 and 2020, the Group’s borrowings at variable interest rates were ANNUAL REPORT 2021110 AMSTERDAM COMMODITIES N.V. denominated in euro and US dollar. The Group analyzes its interest rate exposure on a dynamic basis. Scenarios are simulated taking into consideration renancing, renewal of existing positions, alternative nancing and hedging. Based on these scenarios, the Group calculates the impact on prot and loss of a dened interest rate shift. For each simulation, the same interest rate shift is used for all currencies. The scenarios are run only for liabilities that represent the major interest-bearing positions. A sensitivity analysis has been made based on the exposure to interest rates for the bank borrowings and current nancial bank liabilities at the balance sheet date. If interest rates had been 0.5% (50 basis points) higher/lower and all other variables were held constant, the Group’s result before tax for the year ended 31 December 2021 would have been approximately €1.5 million (2020: €0.5 million) lower/higher respectively. 3.1.2 Credit risk Credit risk is managed at the subsidiary level. Each local subsidiary is responsible for managing and analyzing the credit risk for each of their customers before standard payment and delivery terms and conditions are oered. Credit risk arises from derivative nancial instruments and deposits with banks and nancial institutions, as well as credit exposures to customers, including outstanding receivables and committed transactions. As part of risk control the credit quality of the customer, taking into account its nancial position, past experience and other factors, are assessed. Individual risk limits are set based on internal or external ratings in accordance with limits set by management of the operating companies. The utilization of credit limits is regularly monitored. See Note 12.1 for further disclosure on credit risk. Management does not expect any undisclosed material losses from non- performance by these counterparties. The Group establishes an allowance for impairment that represents its estimate of expected losses in respect of trade receivables. The main components of this allowance are a specic loss component that relates to individually signicant exposures, and a collective loss component established for groups of similar assets in respect of losses that are expected but not yet identied. The collective loss allowance is determined based on historical data of payment statistics for similar nancial assets, adjusted for forward-looking information. To mitigate the counterparty risk with nancial institutions, the Group has the policy to make use of nancial institutions which are investment grade. The Group’s main nancial institutions are systemically important and operate under close supervision of their respective nancial regulatory bodies. 3.1.3 Liquidity risk Cash ow forecasting is performed in the operating entities of the Group and aggregated by Group treasury. Group treasury monitors rolling forecasts of the Group’s liquidity requirements and calculates ratios to ensure it has sucient funds to meet operational needs while maintaining sucient headroom on its undrawn committed borrowing facilities at all times, so the Group does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities (Note 12.5). Such forecasting takes into consideration the Group’s debt nancing plans, planned capital expenditures, covenant compliance, compliance with internal balance sheet ratio targets and, if applicable, external regulatory or legal requirements – for example, currency restrictions. Surplus cash held by the operating entities over and above balances required for working capital purposes are transferred to Group treasury. Group treasury invests surplus cash in interest bearing current accounts at rst class banks. 3.2 Capital risk management The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to ensure the continued nancing of the trading activities, to provide adequate long-term returns for shareholders and benets for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The Company monitors capital on the basis of the solvency ratio. This ratio is calculated as total equity plus subordinated debt divided by total assets. During 2021, the Company’s objective, which was unchanged from the previous year, was to maintain the solvency ratio at a minimum of 30% and preferably around 40%. The solvency ratios as at 31 December 2021 and 2020 were as follows: ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 111 31 December 31 December Solvency 2021 2020 Total equity 365,654 289,466 Total assets 866,757 704,426 Solvency ratio 42.2% 41.1% The solvency ratio as at 31 December 2021 indicates that the Group is able to continue as a going concern. 3.3 COVID-19 impact assessment Acomo continued to operate in a COVID-19-impacted environment throughout 2021. The Group realized a net prot of €54.0 million (2020: €27.0 million), despite continued COVID-19-related restrictions, supply chain disruptions, logistics challenges and container shortages. The Group assessed the impact of COVID-19 on its nancial estimates and judgments. All signicant estimates and judgments are disclosed in the notes to the consolidated nancial statements (if applicable). The most signicant estimates and judgements are referred to in Note 4. 4 Critical accounting estimates and judgments The Group makes estimates and assumptions. The resulting accounting estimates will, by denition, seldomly equal the related actual results. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a signicant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next nancial year are addressed below. (a) Impairment of goodwill The Group tests annually whether goodwill has suered any impairment, in accordance with the accounting policy stated in Note 2.8. The recoverable amounts of CGUs have been determined based on value-in-use calculations. These calculations require the use of estimates (Note 13.1). (b) Income taxes The Group is subject to income taxes in numerous jurisdictions. Signicant judgment is required in determining the worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is inherently uncertain. The Group recognizes liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the nal tax outcome of these matters is dierent from the amounts that were initially recorded, such dierences will impact the current and deferred income tax assets and liabilities in the period in which such determination is made. Additional information is disclosed in Note 10 and Note 13.5. (c) Pension benets The present value of the pension obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate, mortality rates and future pension increases. The mortality rate is based on publicly available mortality tables. Due to the complexities involved in the valuation and its long-term nature, a dened benet obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. The Group determines the appropriate discount rate at the end of each year. This is the interest rate that should be used to determine the present value of estimated future cash outows expected to be required to settle the pension obligations. In determining the appropriate discount rate, the Group considers the interest rates of high-quality corporate bonds that are denominated in the currency in which the benets will be paid and that have terms to maturity approximating the terms of the related pension obligation. Additional information is disclosed in Note 13.6. (d) Inventories Provisions are made for write-down of inventories to net realizable value based on management’s estimates using available market information. Where management has determined that the net realizable value is lower than the initial value, inventories are written down. Additional information is disclosed in Note 13.4. (e) Trade receivables Provisions are made for doubtful debts based on management’s estimates of the prospects of recovering the debt. Where management has determined that recovering is doubtful, the amount is provided for, based on the expected credit loss, also taking into account that historical write-os have been limited. Additional information is disclosed in Note 12.1. ANNUAL REPORT 2021112 AMSTERDAM COMMODITIES N.V. (f) Litigation and claims The Group is party to various legal proceedings, generally incidental, to its business. In connection with these proceedings and claims, management evaluated, based on the relevant facts and legal principles, the likelihood of an unfavourable outcome and whether the amount of the loss could be reasonably estimated. Subjective judgments were required in these evaluations, including judgments regarding the validity of asserted claims and the likely outcome of legal and administrative proceedings. The outcome of these proceedings, however, is subject to a number of factors beyond the Group’s control, most notably the uncertainty associated with predicting decisions by courts and administrative agencies. Additional information is disclosed in Note 13.7. (g) Provisions Provisions for onerous contracts are recognized at the balance sheet date at management’s best estimate of the expenditure required to settle the present obligation. Management has based its estimate on its current knowledge and expectations of the future price development of the underlying food products. Additional information is disclosed in Note 13.7. ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 113 The segment information for the reportable segments for the years ended 31 December 2021 and 2020 is as follows: 2021 Spices and Nuts Edible Seeds Organic Ingre- dients Tea Food Ingre- dients Holding and intra- Group Total Sales 418,469 223,862 458,404 133,130 21,107 (536) 1,254,436 Operating expenses (376,432) (200,116) (430,417) (125,524) (16,654) (4,036) (1,153,179) Eect discontinuation hedge accounting 1,544 - 2,019 - - - 3,563 EBITDA 43,581 23,746 30,006 7,606 4,453 (4,572) 104,820 Depreciation and amortization (1,911) (6,187) (14,606) (1,117) (536) (232) (24,589) Operating income (EBIT) 41,670 17,559 15,400 6,489 3,917 (4,804) 80,231 Interest income/(expense), net (7,144) Income tax expense (19,100) Net result 53,987 Additions intangibles 1 and PPE (net) 656 2,146 3,944 917 85 20 7,768 Additions right-of-use assets 138 353 296 - 110 - 897 Total intangibles and PPE 2,165 26,532 72,703 2,946 3,207 58 107,611 Total right-of-use assets 5,094 4,425 4,655 2,085 330 464 17,053 Total assets 196,388 133,593 328,696 64,568 11,089 132,423 866,757 Total liabilities 141,455 82,594 143,766 28,697 7,089 97,502 501,103 1 Excluding goodwill 2020 Spices and Nuts Edible Seeds Organic Ingre- dients Tea Food Ingre- dients Holding and intra- group Total Sales 349,550 215,583 - 122,179 20,553 (501) 707,364 Operating expenses (321,859) (196,104) - (115,733) (17,044) (4,217) (654,957) Eect discontinuation hedge accounting (2,500) - - - - - (2,500) EBITDA 25,191 19,479 - 6,446 3,509 (4,718) 49,907 Depreciation and amortization (2,009) (6,177) - (1,123) (497) (252) (10,058) Operating income (EBIT) 23,182 13,302 - 5,323 3,012 (4,970) 39,849 Interest income/(expense), net (2,947) Income tax expense (9,853) Net result 27,049 Additions intangibles 1 and PPE (net) 732 4,220 - 243 128 25 5,348 Additions right-of-use assets 101 747 - 2,141 228 - 3,217 Total intangibles and PPE 2,123 27,518 80,952 5,118 3,533 457 119,701 Total right-of-use assets 4,953 4,769 3,390 2,751 353 657 16,873 Total assets 136,828 108,735 267,157 53,393 11,202 127,111 704,426 Total liabilities 95,163 69,757 81,959 23,211 7,028 137,842 414,960 1 Excluding goodwill 5 Segment information The Board of Directors, consisting of the Non-Executive Directors and Executive Directors, examines the Group’s performance both from a product and geographic perspective and has identied ve reportable segments of its business: Spices and Nuts, Edible Seeds, Organic Ingredients, Tea and Food Ingredients. ANNUAL REPORT 2021114 AMSTERDAM COMMODITIES N.V. The amounts with respect to total assets are measured in a manner consistent with that of the nancial statements. These assets are allocated based on the operations of the segment and the physical location of the asset. Inter- segment sales are eliminated upon consolidation and reected in the Holding and intra-Group column. Sales per geography are as follows: Sales (in € millions) NL Europe other North America Other Total 2021 203.0 472.7 464.9 113.8 1,254.4 2020 154.6 245.4 198.3 109.1 707.4 6 Cost of goods sold The cost of goods sold of €1,084.2 million (2020: €612.6 million) includes the cost of products sold, changes in the provision for obsolete inventories, amortization and depreciation charges, and expenses related to purchase, production and selling. 7 General and administrative expenses The general and administrative expenses of €90.0 million (2020: €54.9 million) include IT, travel, oce, consulting, training, amortization and depreciation charges, and other general expenses. 8 Personnel costs Total personnel costs, included in the cost of sales and general and administrative expenses, are as follows: Note 2021 2020 Wages and salaries including prot sharing 70,564 41,809 Social security costs 7,238 4,577 Pension costs – dened contribution plans 13.6 3,262 2,013 Pension costs – dened benet plans 13.6 51 64 Share options – charge for the year 15 113 57 Other 2,075 1,434 Total personnel costs 83,303 49,954 On a full-time equivalent basis the total number of employees is: Number of employees 2021 2020 Average number 1,204 693 Number as at 31 December 1,209 1,212 The breakdown per function as at 31 December is as follows: 2021 2020 Production 600 606 General 609 606 Total 1,209 1,212 ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 115 9 Financial income/(expenses) 2021 2020 Interest income on short-term bank deposits 259 25 Interest expense on bank borrowings (5,752) (2,111) Interest expense on leases (570) (418) Amortization arrangement fees (1,344) (159) Net nancial income/(expenses) (7,407) (2,663) Other nancial income/(expenses) 263 (284) Total nancial income/(expenses) (7,144) (2,947) 10 Corporate income tax Current income tax expense Note 2021 2020 Current income tax on prots for the year 18,521 8,444 Provisions (releases) (189) (169) Adjustments in respect of prior years (84) 61 Total current income tax expense 18,248 8,336 Deferred income tax expense/(income) 13.5 852 1,517 Total corporate income tax expense 19,100 9,853 The eective tax rate on the Group’s prot diers from the theoretical amount that would arise using the weighted average tax rate applicable to prots of the consolidated entities as follows: Corporate income tax expense 2021 2020 Tax calculated at domestic tax rates applicable to prots in the respective countries 17,971 8,770 Tax eect of: • Non-taxable amounts and tax allowances 48 (361) • Non-deductible expenses 196 1,356 • Adjustments previous years (84) 61 • Provisions (releases) (189) (169) • Eect of changes in tax rates 291 - • Foreign currency translation dierences 879 - • Other items (12) 196 Total corporate income tax expense 19,100 9,853 Average eective tax rate 26.1% 26.7% The average eective tax rate decreased from 26.7% to 26.1%, mainly due to a dierent country mix and non-tax-deductible expenses in 2020. The weighted average applicable theoretical corporate income tax rate was 24.6% (2020: 23.8%). ANNUAL REPORT 2021116 AMSTERDAM COMMODITIES N.V. The tax (charge)/credit relating to components of OCI is as follows: Tax components OCI 2021 Before tax Tax After tax Cash ow hedges 293 (73) 220 Currency translation adjustments (CTA) 21,133 - 21,133 Remeasurement gains/(losses) on dened benet plans 345 (86) 259 Total 21,771 (159) 21,612 Tax components OCI 2020 Before tax Tax After tax Cash ow hedges (88) 22 (66) Currency translation adjustments (CTA) (9,249) - (9,249) Remeasurement gains/(losses) on dened benet plans (219) 50 (169) Total (9,556) 72 (9,484) Aggregate current tax arising in the reporting period and not recognized in the statement of consolidated income or other comprehensive income but directly credited to equity: Amounts recognized directly in equity 2021 2020 Current tax: share issue costs - 436 Total - 436 11 Earnings per share Basic earnings per share are calculated by dividing the prot for the year attributable to equity holders of the Company by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share are calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. For the share options, a calculation is made to determine the number of shares that could have been issued at fair value (determined as the average annual market share price of the Company’s shares) based on the monetary value of the subscription rights attached to outstanding share options. The number of shares calculated as above is compared with the number of shares that will be issued assuming the exercise of all issued share options. The excess number of shares is used for calculating diluted earnings per share. ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 117 Earnings used to calculate (diluted) earnings per share 2021 2020 Net prot attributable to shareholders 53,956 27,035 Share option plan cost, net 113 43 Basis for diluted prot 54,069 27,078 Number of shares, weighted and dilutive Weighted average number of ordinary shares issued 2021 2020 Issued, 1 January 29,581,871 24,651,560 New shares issued, weighted part 15,608 235,739 Total number of shares issued, weighted, 31 December 29,597,479 24,887,299 New shares issued, unweighted part 12,392 4,694,572 Total number of shares issued, 31 December 29,609,871 29,581,871 Share options deferred dilution eect 44,001 3,645 Total number of shares, dilutive, 31 December 29,653,872 29,585,516 12 Financial assets and nancial liabilities The Group holds the following nancial instruments: 31 December 31 December Financial assets 2021 2020 Financial assets at amortized cost Trade receivables 161,698 128,174 Other nancial assets at amortized cost 24,666 23,456 Cash and cash equivalents 3,254 3,507 Derivative nancial instruments Used for hedging 4,384 867 Total 194,002 156,004 31 December 31 December Financial liabilities 2021 2020 Liabilities at amortized cost Trade and other payables 1 122,916 99,159 Bank borrowings 337,296 277,143 Lease liabilities 17,629 17,471 Derivative nancial instruments Used for hedging 730 4,521 Total 478,571 398,294 1 All trade and other payables have a term of less than one year The Group’s exposure to various risks associated with the nancial instruments is discussed in Note 3.1. The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of nancial assets mentioned above. ANNUAL REPORT 2021118 AMSTERDAM COMMODITIES N.V. 12.1 Trade receivables 31 December 31 December 2021 2020 Trade receivables 164,560 129,574 Less: provision for impairment (2,862) (1,400) Total trade receivables, net 161,698 128,174 As at 31 December 2021, trade receivables were impaired for a total amount of €2.9 million (2020: €1.4 million). The individually (partly or fully) impaired receivables mainly relate to customers in the ordinary line of business which are in unexpectedly dicult economic or nancial situations. As at 31 December 2021, trade receivables of approximately €9.3 million were past due but without loss provision. The Group believes that the unimpaired amounts that are past due by more than 30 days are still collectable based on historic payment behaviour and analyses of the underlying customers’ creditworthiness. The ageing analysis of these trade receivables is as follows: 31 December 31 December Ageing receivables 2021 2020 Up to 1 month 152,378 121,117 1-2 months 6,053 3,068 2-3 months 1,552 1,453 Over 3 months 4,577 3,936 Total trade receivables, gross 164,560 129,574 The carrying amounts of the Group’s trade receivables are denominated in the following currencies: 31 December 31 December Trade receivables – currency 2021 2020 Denominated in euros 64,395 50,784 Denominated in US dollars 96,162 76,149 Denominated in UK pounds 1,527 486 Denominated in other currencies 2,476 2,155 Total trade receivables, gross 164,560 129,574 Movements in the provisions for impairment of trade receivables are as follows: Provision trade receivables 2021 2020 1 January 1,400 1,083 Write-os (8) (265) Charged to the income statement 1,447 52 Exchange dierences 23 (49) Acquisition of subsidiaries - 579 31 December 2,862 1,400 ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 119 Overdue receivables are generally fully written o when there is no expectation of recovering additional cash. The other classes within trade and other receivables do not contain material impaired assets. The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivables mentioned above. In general, the Group does not hold any collateral as security and delivery terms dictate that full title of ownership can be withdrawn for unpaid deliveries. 12.2 Other nancial assets 31 December 31 December Current 2021 2020 Prepayments 14,698 11,022 Tax and social securities 2,125 5,059 Other receivables 6,473 5,717 Other receivables 23,296 21,798 Non-current Issued loans 1,369 1,653 Other 1 5 Other non-current receivables 1,370 1,658 Total 24,666 23,456 Included in the issued loans is a loan of €1.2 million, ultimately due on 31 July 2026. The loan is secured by a mortgage on commercial real estate. 12.3 Derivative nancial instruments This section explains the judgments and estimates made in determining the fair values of the nancial instruments that are recognized and measured at fair value in the nancial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Group has classied its nancial instruments into the three levels prescribed under the accounting standards. An explanation of each level follows underneath the table. ANNUAL REPORT 2021120 AMSTERDAM COMMODITIES N.V. Recurring fair value measurements 31 December 2021 Level 1 Level 2 Level 3 Total Financial assets Hedging derivatives – foreign currency contracts - 3,331 - 3,331 Hedging derivatives – commodity contracts - 1,053 - 1,053 Total nancial assets - 4,384 - 4,384 Financial liabilities Hedging derivatives – foreign currency contracts - 709 - 709 Hedging derivatives – commodity contracts - 21 - 21 Total nancial liabilities - 730 - 730 Recurring fair value measurements 31 December 2020 Level 1 Level 2 Level 3 Total Financial assets Hedging derivatives – foreign currency contracts - 201 - 201 Hedging derivatives – commodity contracts - 666 - 666 Total nancial assets - 867 - 867 Financial liabilities Hedging derivatives – foreign currency contracts - 4,412 - 4,412 Hedging derivatives – commodity contracts - 109 - 109 Total nancial liabilities - 4,521 - 4,521 Level 1: The fair value of nancial instruments traded in active markets (such as publicly traded derivatives and equity securities) is based on quoted market prices at the end of the reporting period. These instruments are included in level 1. Level 2: The fair value of nancial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specic estimates. If all signicant inputs required to determine the fair value of an instrument are observable, the instrument is included in level 2. Level 3: If one or more of the signicant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities. Derivatives are only used for economic hedging purposes and not as speculative investments. However, where derivatives do not meet the hedge accounting criteria, they are classied as ‘held for trading’ for accounting purposes and are accounted for at fair value through prot or loss. They are presented as current assets or liabilities to the extent they are expected to be settled within 12 months after the end of the reporting period. Foreign exchange contracts relate for more than 95% to forward US dollar sales and purchases with a term of less than 12 months and relate to hedged items with a maturity of less than 12 months. Consequently, the net value of these derivatives is classied as a current asset or liability. Commodity contracts relate to coee and cocoa sales-and- purchases contracts with a term of less than 12 months, and relate to hedged items with a maturity of less than 12 months. The maximum exposure to credit risk at the reporting date is the fair value of the derivative assets in the consolidated balance sheet. Forward foreign exchange contracts The total notional principal amounts of the outstanding forward foreign exchange contracts as at 31 December 2021 were $124.2 million bought and $49.5 million sold, resulting in a total net amount of $74.7 million (2020: $69.7 million), and £0.7 million sold (2020: £0.0 million). Gains and losses recognized in the hedge reserve in equity (Note 14.2) on forward foreign exchange contracts as at 31 December 2021 are recognized in the income statement in the period or periods during which the hedged forecast transaction aects the income statement. ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 121 12.4 Cash and cash equivalents Cash and cash equivalents consist almost entirely of cash held in bank accounts. 12.5 Bank borrowings 31 December 31 December Non-current 2021 2020 Bank borrowings 106,056 140,734 Capitalized arrangement fees (1,988) (4,331) Total non-current 104,068 136,403 Current Bank overdrafts 207,839 124,715 Bank borrowings short-term part 23,290 16,025 Capitalized arrangement fees (1,418) - Total current 229,711 140,740 Total bank borrowings 333,779 277,143 The carrying amounts of bank borrowings approximate their fair value due to the variability of the interest rates. The bank borrowings are, to a large extent, borrowing base working capital facilities, with variable interest rates, secured by inventories and trade receivables. The movements in bank borrowings are as follows: Non-current Current 1 January 2021 140,734 140,740 Transfer to short term (23,290) 23,290 Proceeds from new borrowings - 34,987 Repayments long-term borrowings (11,978) (16,025) Net changes in short-term borrowings - 43,792 Translation and currency dierences 590 4,345 31 December 2021 106,056 231,129 Bank borrowings As at 31 December 2021, the Group had the following long-term bank borrowings: • A €3 million term loan (of which €1.8 million outstanding) repayable in 19 years, started at 1 January 2014. • A €150 million drawing (of which €124.4 million outstanding) under the €150 million acquisition term loan, repayable in ve years with repayments of 15% per year, with a nal payment of the remaining amount on 9 November 2025. • A €3.0 million and €1.6 million loan (€3.0 million of total outstanding), with a nal payment on 28 November 2027. ANNUAL REPORT 2021122 AMSTERDAM COMMODITIES N.V. The carrying amounts of the Group’s bank borrowings are denominated in the following currencies: 31 December 31 December Non-current bank borrowings 2021 2020 Denominated in euros 106,056 139,192 Denominated in US dollars - 1,436 Denominated in other currencies - 106 Total non-current bank borrowings 106,056 140,734 The maturity of bank borrowings is as follows: 31 December 31 December Contractual repayments 2021 2020 2021 - 16,025 2022 23,290 23,653 2023 23,150 23,569 2024 23,166 23,592 After 2024 59,740 69,920 Total contractual repayments 129,346 156,759 Total interest liabilities, based on current interest rates, contractual terms and year-end 2021 working capital nancial levels, are approximately €6.7 million for 2022 and approximately €26.8 million in total for the years 2023-2026. Bank overdrafts As at 31 December 2021, the Group had the following bank overdrafts: • A borrowing base consisting of a €275 million revolving credit facility with an additional accordion increase option of €70 million, maturing on 9 November 2023. The accordion option of €70 million has been approved and total revolving credit facility has been increased to €345 million, with an eective date of 28 February 2022. • Short-term local facilities with variable interest rates to nance working capital of subsidiaries, secured by the Acomo parent company or intermediary Group holdings, in total amounting to €13.2 million, $30.3 million and €1.0 million equivalent denominated in other currencies. Financial covenants remained unchanged compared to previous year, as follows: • Interest cover ratio must exceed 4.0x; • Solvency must be 30% or higher, or 25% in a limited number of cases; and • Leverage ratio, applicable only on the €150 million term loan, decreasing over the course of the years, started at 2.00:1.00 on 30 June 2021 and ending at 0.75:1.00 on 9 November 2025. The Company is in compliance with all covenants, with sucient headroom. The outstanding and undrawn amounts under the overdraft facilities as at 31 December 2021 are as follows: In local currencies Working capital overdraft facilities Total lines Outstanding Undrawn Available in € RCF 275,000 217,562 57,438 57,438 Local US dollar lines 30,328 7,984 22,344 19,646 Local euro lines 13,150 5,868 7,282 7,282 Local lines (other currencies in € equivalent) 981 678 303 303 Total in euro equivalent Total 315,797 231,129 84,669 84,669 ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 123 13 Non-nancial assets and liabilities This note provides information about the Group’s non- nancial assets and liabilities, including specic information about each type of non-nancial asset and non-nancial liability: • Intangible assets (Note 13.1) • Property, plant and equipment (Note 13.2) • Leases (Note 13.3) • Inventories (Note 13.4) • Deferred tax liabilities and assets (Note 13.5) • Retirement benet obligations (Note 13.6) • Provisions (Note 13.7). 13.1 Intangible assets 1 January 2020 Goodwill Software Under construction Other Total Cost or valuation 65,750 5,004 - - 70,754 Accumulated amortization - (2,401) - - (2,401) Net book amount 65,750 2,603 - - 68,353 2020 Opening net book amount 65,750 2,603 - - 68,353 Additions 82,194 169 53 9 82,425 Acquisition of subsidiaries - 332 217 59,849 60,398 Amortization - (756) - - (756) Exchange dierences (3,044) (130) - (1) (3,175) Closing net book amount 144,900 2,218 270 59,857 207,245 31 December 2020 Cost or valuation 144,900 5,375 270 59,857 210,402 Accumulated amortization - (3,157) - - (3,157) Net book amount 144,900 2,218 270 59,857 207,245 2021 Opening net book amount 144,900 2,218 270 59,857 207,245 Additions 765 165 435 1 1,366 Amortization - (918) - (10,825) (11,743) Intangibles taken into operation - 626 (626) - - Exchange dierences 4,636 147 - 2,766 7,549 Closing net book amount 150,301 2,238 79 51,799 204,417 31 December 2021 Cost or valuation 150,301 6,424 79 62,867 219,671 Accumulated amortization - (4,186) - (11,068) (15,254) Net book amount 150,301 2,238 79 51,799 204,417 The other intangible assets mainly consist of acquired customer relations, order books and trade names/ certicates. In 2021, the addition to goodwill of €0.1 million resulted from the nalization of the purchase price allocation of the acquisition of Tradin Organic. The 2021 amortization charge of total €11.7 million (2020: €0.8 million) has been included in cost of goods sold (€6.2 million) and in general and administrative expenses (€5.5 million). ANNUAL REPORT 2021124 AMSTERDAM COMMODITIES N.V. Goodwill A summary of the goodwill allocation by reportable segments is presented below. 31 December 31 December Goodwill 2021 2020 Spices and Nuts 21,474 21,474 Edible Seeds 28,277 26,576 Organic Ingredients 85,037 82,194 Tea 11,408 10,551 Food Ingredients 4,105 4,105 Total goodwill 150,301 144,900 Impairment tests for goodwill For the purpose of the annual impairment testing, goodwill is allocated to cash-generating units (‘CGUs’) or groups of CGUs, identied at the level of operating segments. The goodwill impairment test is based on the management judgment that the possible net realizable value of an operating segment will not be less than the sum of the goodwill amount plus the net assets of the operating segment. Given the nature of Acomo being a group of trading companies, the recoverable amounts of all CGUs have been determined as follows, based on the discounted cash ow (DCF) method: • The DCF method uses cash ow projections based on nancial budgets approved by management for 2022. The weighted average cost of capital (WACC) is based on the capital asset pricing model using a levered beta of 0.95. Based on the local tax rates, the applied WACC pre-tax for the dierent CGUs varies between 6.8% and 7.7%. • A ve-year forecast period is used (including approved 2022 budgets when applicable) followed by a terminal value based on perpetual 1.5% to 2.5% growth of revenues. Cash ows beyond 2022 are extrapolated using estimated growth rates. Cash ows beyond the ve-year period are extrapolated taking into account a long-term average growth rate. The discount rates used are pre-tax and reect specic risks relating to the relevant parts of the business. After conducting impairment tests on all CGUs within the Group, no impairment was deemed necessary since the discounted future cash ows from the CGUs exceeded the carrying value (including goodwill) for each CGU. It is inherent in the method of computation used that a change in the assumptions may lead to a dierent conclusion on the impairment required. If the discount rate is assumed to be one percentage point higher than assumed in the individual impairment tests, no impairment would be required. The impairment tests performed separately would also not indicate any impairment if the future cash ows were set 10.0% lower than assumed. The key assumptions used for value-in-use calculations in 2021 and 2020 are as follows: Spices Edible Organic Food Assumptions 2021 and Nuts Seeds Ingredients Tea Ingredients Average future growth rates 2022-2026 3.0% 2.5% 2.0% 2.3% 2.0% Long-term average growth rate (after 5 years) 2.5% 2.0% 2.0% 1.5% 1.5% Discount rate, pre-tax, average 7.3% 6.8% 7.7% 7.6% 7.6% Assumptions 2020 Average future growth rates 2021-2025 2.3% 2.5% - 2.3% 2.0% Long-term average growth rate (after 5 years) 2.0% 2.0% - 1.5% 1.5% Discount rate, pre-tax, average 7.3% 8.0% - 7.5% 7.9% ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 125 13.2 Property, plant and equipment The movements in property, plant and equipment are as follows: Furniture, Land and Vehicles and ttings and Assets under 1 January 2020 buildings machinery equipment construction Total Cost or valuation 29,691 44,974 3,617 467 78,749 Accumulated depreciation (10,452) (25,568) (1,931) - (37,951) Net book amount 19,239 19,406 1,686 467 40,798 2020 Opening net book amount 19,239 19,406 1,686 467 40,798 Acquisition of subsidiaries 3,657 14,861 224 1,759 20,501 Investments 538 2,177 581 1,821 5,117 Disposals - (48) (8) - (56) Depreciation charge (1,128) (4,643) (449) - (6,220) Assets taken into operation - 1,839 - (1,839) - Exchange dierences (1,213) (1,447) (94) (30) (2,784) Closing net book amount 21,093 32,145 1,940 2,178 57,356 31 December 2020 Cost or valuation 31,286 59,003 4,294 2,178 96,761 Accumulated depreciation (10,193) (26,858) (2,354) - (39,405) Net book amount 21,093 32,145 1,940 2,178 57,356 2021 Opening net book amount 21,093 32,145 1,940 2,178 57,356 Investments 305 3,136 212 3,514 7,167 Disposals (11) (242) (39) - (292) Depreciation charge (1,419) (7,103) (551) - (9,073) Assets taken into operation 395 2,716 102 (3,213) - Assets classied as held for sale (2,847) (78) - - (2,925) Exchange dierences (255) 1,459 48 10 1,262 Closing net book amount 17,261 32,033 1,712 2,489 53,495 31 December 2021 Cost or valuation 27,319 64,655 4,617 2,489 99,080 Accumulated depreciation (10,058) (32,622) (2,905) - (45,585) Net book amount 17,261 32,033 1,712 2,489 53,495 The 2021 depreciation charge of total €9.1 million (2020: €6.2 million) has been included in cost of goods sold (€7.9 million) and general and administrative expenses (€1.2 million). ANNUAL REPORT 2021126 AMSTERDAM COMMODITIES N.V. 13.3 Leases Amounts recognized in the balance sheet The balance sheet shows the following amounts relating to leases: 31 December 31 December Right-of-use assets 2021 2020 Buildings 15,883 15,701 Vehicles and machinery 718 692 Furniture, ttings and equipment 452 480 Total 17,053 16,873 Additions to the right-of-use assets during 2021 were €0.9 million (2020: €3.2 million, excluding the additions as a result of the acquisition of Tradin Organic (€3.4 million)). Lease liabilities The movement in the lease liabilities is as follows: 2021 1 January 17,471 New leases 897 Remeasurements 3,032 Payment of leases (4,131) Interest 570 Exchange dierences (210) 31 December 17,629 Of which: Current 3,517 Non-current 14,112 Total 17,629 The maturity analysis of lease liabilities is presented below. Maturity analysis Total 2022 3,518 2023 2,809 2024 2,238 2025 1,981 2026 1,869 Onwards 5,214 Total 17,629 ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 127 Amounts recognized in prot and loss Depreciation charge of right-of-use assets Note 2021 2020 Buildings 3,208 2,560 Vehicles and machinery 383 330 Furniture, ttings and equipment 182 191 Total 3,773 3,081 Interest expense (included in nance costs) 9 570 418 The total cash outow for leases in 2021 was €4.1 million (2020: €3.4 million). Expense relating to short-term leases and low-value assets in 2021 was €2.3 million (2020: €1.6 million). 13.4 Inventories 31 December 31 December 2021 2020 Raw materials 66,215 17,940 Semi-nished products 195 501 Finished goods 318,147 240,362 Packaging materials and supplies 8,644 6,904 Total inventories 393,201 265,707 The cost of inventories recognized as expense and included in cost of goods sold amounted to €990.9 million (2020: €606.7 million). As at 31 December 2021, the provision for write-down of inventories to net realizable value amounted to €4.7 million (2020: €4.4 million). 13.5 Deferred tax liabilities and assets 31 December 31 December Deferred income tax position 2021 2020 Deferred tax assets 1,664 1,241 Deferred tax liabilities (14,565) (12,499) Deferred tax liabilities, net (12,901) (11,258) The movement in the total deferred income tax position is as follows: Total deferred income tax position 2021 2020 1 January (11,258) (4,488) Recognized in OCI (159) 72 Recognized in income (852) (1,517) Currency translation eects (180) 189 Acquisition of subsidiaries - (5,514) Other movements (452) - 31 December (12,901) (11,258) ANNUAL REPORT 2021128 AMSTERDAM COMMODITIES N.V. The movement in deferred income tax assets and liabilities during the year, without taking into consideration the osetting of balances within the same tax jurisdiction, is as follows: Movements 2021 1 January 2021 Recog- nized in OCI Recog- nized in income Currency translation eects Acquisition subsidiaries Other movements 31 December 2021 Intangible assets (5,539) - 1,249 (46) - (452) (4,788) Property, plant and equipment (4,709) - 559 (308) - - (4,458) Inventories (659) - (3,230) 12 - - (3,877) Current assets and liabilities, net 437 (73) 91 118 - - 573 Pension provisions 566 (86) 7 48 - - 535 Other provisions (271) - 160 (4) - - (115) Long-term debt (1,083) - 312 - - - (771) Total (11,258) (159) (852) (180) - (452) (12,901) Movements 2020 1 January 2020 Recog- nized in OCI Recog- nized in income Currency translation eects Acquisition subsidiaries Other movements 31 December 2020 Intangible assets 201 - (41) 1 (5,683) (17) (5,539) Property, plant and equipment (5,332) - 396 548 (128) (193) (4,709) Inventories 91 - (740) (10) - - (659) Current assets and liabilities, net 472 22 (148) (388) 297 182 437 Pension provisions 505 50 (81) 2 - 90 566 Other provisions (417) - 172 36 - (62) (271) Long-term debt (8) - (1,075) - - - (1,083) Total (4,488) 72 (1,517) 189 (5,514) 0 (11,258) An amount of €1.3 million (2020: €0.4 million) is expected to be recovered within 12 months. ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 129 Deferred tax assets and liabilities relate to the balance sheet captions as at 31 December 2021 and 2020 as follows: 2021 Assets Liabilities Net Intangible assets 191 (4,979) (4,788) Property, plant and equipment - (4,458) (4,458) Inventories 97 (3,974) (3,877) Current assets and liabilities, net 734 (161) 573 Pension provisions 535 - 535 Other provisions - (115) (115) Long-term debt - (771) (771) Total 1,557 (14,458) (12,901) Set-o 107 (107) - Net position 1,664 (14,565) (12,901) 2020 Assets Liabilities Net Intangible assets 194 (5,733) (5,539) Property, plant and equipment 18 (4,727) (4,709) Inventories 92 (751) (659) Current assets and liabilities, net 437 - 437 Pension provisions 566 - 566 Other provisions 70 (341) (271) Long-term debt - (1,083) (1,083) Total 1,377 (12,635) (11,258) Set-o (136) 136 - Net position 1,241 (12,499) (11,258) As at 31 December 2021 deferred income tax liabilities of €1.5 million (2020: €1.5 million) have not been recognized for withholding tax and other taxes that would be payable on the unremitted earnings of certain subsidiaries. Such amounts are permanently reinvested. Unremitted earnings totalled €17.2 million as at 31 December 2021 (2020: €16.2 million). 13.6 Retirement benet obligations The retirement benet obligations are as follows: 31 December 31 December Balance sheet obligations 2021 2020 Pension benets – dened benet plans 1,819 2,022 Pension benets – dened contribution plans 109 92 Liability in the balance sheet 1,928 2,114 ANNUAL REPORT 2021130 AMSTERDAM COMMODITIES N.V. The pension costs in the income statement are as follows: Income statement charges Note 2021 2020 Pension costs – dened benet plans 8 51 64 Pension costs – dened contribution plans 8 3,262 2,013 Pension costs in the income statement 3,313 2,077 Pension benets – dened benet plans Since the acquisition of Royal Van Rees Group, Red River Commodities and Delinuts, the Group has operated dened benet pension plans in the Netherlands and the US based on employee pensionable remuneration and length of service. The Royal Van Rees Group plan was changed into a dened contribution plan in 2014. The pension plan in the US was closed in 2008, both for changes in salaries and for new entrants, and therefore serves as a pension fund for existing and former employees of Red River Commodities that were eligible up to mid-2008. The remaining dened benet plan in the US is externally funded. The Delinuts pension plan was changed into a dened contribution plan in 2018. Plan assets are held in trusts and at insurance companies, governed by local regulations and practice in each country. In addition, some relatively limited selected pension agreements have been arranged within the Group. The Group also operates dened contribution plans which receive xed contributions from group companies. The Group’s legal or constructive obligation for these plans is limited to the contributions. The amounts recognized in the balance sheet are determined as follows: 31 December 31 December Net pension liability 2021 2020 Present value of funded obligations 5,954 5,722 Fair value of plan assets (4,135) (3,700) Decit of funded plans 1,819 2,022 Other pension liabilities 109 92 Total net pension liability 1,928 2,114 The movement in the dened benet obligations over the year is as follows: Actuarial pension obligations 2021 2020 1 January 5,722 5,755 Interest cost 141 179 Benet payments (288) (312) Remeasurements (77) 644 Exchange dierences 456 (544) 31 December 5,954 5,722 Actuarial results mainly consist of changes in nancial assumptions. ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 131 The movement in the fair value of plan assets of the year is as follows: Value plan assets 2021 2020 1 January 3,700 3,621 Expected return on plan assets 90 115 Remeasurements 268 424 Employer contributions 58 202 Benet payments (288) (312) Exchange dierences 307 (350) 31 December 4,135 3,700 The plan assets mainly consist of equity instruments (€2.1 million) and debt instruments (€2.0 million). The amounts recognized in the income statement are as follows: Pension costs Note 2021 2020 Interest cost 141 179 Return on plan assets (90) (115) Total pension costs, included in personnel costs 8 51 64 The principal actuarial assumptions are as follows: Actuarial assumptions 31 December 2021 31 December 2020 Discount rate 2.8% 2.5% Mortality table Pri-2012 Pri-2012 Correction Scale MP-2021 Scale MP-2020 Actuarial calculations indicate that a 0.5% decrease in the discount rate used would aect the total liability by approximately 6.1%. Total employer contributions expected to be paid during 2022 are estimated at €0.2 million. 31 December 31 December 31 December 31 December Historical data 2021 2020 2019 2018 Dened benet obligations 5,954 5,722 5,755 5,061 Fair values of plan assets (4,135) (3,700) (3,621) (3,008) Decit of funded plans 1,819 2,022 2,134 2,053 Other pension liabilities mainly refer to provisions for retirement benets by law (gratuity) in various countries including Kenya and Sri Lanka. ANNUAL REPORT 2021132 AMSTERDAM COMMODITIES N.V. 13.7 Provisions Legal Other Total 1 January 2021 101 3,896 3,997 Used (22) (207) (229) Charged to the income statement 350 - 350 Released to the income statement - - - 31 December 2021 429 3,689 4,118 Analysis of total provisions Non-current 164 37 201 Current 1 265 3,652 3,917 Total provisions 429 3,689 4,118 1 Included in other current liabilities and accrued expenses Legal claims Included is a provision for certain claims brought against the Group by third parties, the outcome of which is uncertain. The provision charge is recognized in prot or loss within General cost. In management’s opinion, taken into account all known facts and circumstances as at 31 December 2021 and after taking appropriate legal advice, the outcome of these legal claims will not give rise to any signicant loss beyond the amounts provided as at 31 December 2021. Other Other provisions mainly relate to short positions outstanding at year-end of which contract prices of goods to be delivered were lower than the market price of the goods at year-end and to other onerous trading contracts. 14 Equity 14.1 Share capital and share premium reserve The total authorized number of ordinary shares is 66.7 million shares (2020: 66.7 million shares) with a par value of €0.45 per share (2020: €0.45 per share). All 29.6 million issued shares (31 December 2020: 29.6 million) are fully paid. During the year, the issued share capital increased by €13 and share premium by €463 due to issuance of 28,000 new ordinary shares of €0.45 each, as part of the exercise of share options (Note 15). New shares issued have the same rights as existing shares issued. The movements during 2021 and 2020 are as follows: Number of Share Share premium Share capital and share premium reserve shares capital reserve Total 1 January 2020 24,651,560 11,093 62,028 73,121 New shares issued 4,930,311 2,219 92,614 94,833 31 December 2020 29,581,871 13,312 154,642 167,954 New shares issued 28,000 13 463 476 31 December 2021 29,609,871 13,325 155,105 168,430 ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 133 14.2 Other reserves Currency translation Share Hedge Other reserve option plan reserve reserves Total 1 January 2020 10,360 129 (185) (394) 9,910 Cash ow hedges - - (66) - (66) Share based payments - 43 - - 43 Currency translation adjustments (CTA) (9,243) - - - (9,243) Remeasurement gains/(losses) on dened benet plans - - - (169) (169) 31 December 2020 1,117 172 (251) (563) 475 Cash ow hedges - - 220 - 220 Share based payments - 169 - - 169 Currency translation adjustments (CTA) 20,979 - - - 20,979 Remeasurement gains/(losses) on dened benet plans - - - 259 259 31 December 2021 22,096 341 (31) (304) 22,102 The currency translation reserve comprises all translation dierences arising from the translation of the net investment in group companies, including goodwill, in currencies other than the euro. The share option plan reserve comprises the value of vested rights in respect of the share option plan (Note 15) as far as stock options have not been exercised. The hedge reserve comprises the unrealized gains related to cash ow hedges. Pursuant to Dutch law, limitations exist relating to the distribution of shareholders’ equity of €35.4 million (2020: €14.6 million). Such limitations relate to share capital as well as to legal reserves required by Dutch law included under other reserves. 15 Share-based payment Share options are granted to management and to selected employees. The establishment of Acomo’s share option plan was approved by shareholders at the Annual General Meeting of 27 May 2010. The share option plan is aimed at retaining key managers and employees of the Company and its subsidiaries, including executive directors of the Board. Under the plan, participants are granted options which only vest and can be exercised on the continued employment of the participant in the Group. Participation in the plan is at the Board of Directors’ discretion. The options have a contractual option term of seven years. All options vest in a six-year period with the rst vesting three years after granting of the options. Options are granted under the plan for no consideration and carry no dividend or voting rights. When exercisable, each option is convertible into one ordinary share. The Group has no legal or constructive obligation to repurchase or settle the options in cash. Total 2021 share-based payment expenses charged to the consolidated statement of income amounted to €113 (2020: €57). The table right shows the movement of share options outstanding at the end of the year with their respective vesting dates, expiry dates and exercise prices. ANNUAL REPORT 2021134 AMSTERDAM COMMODITIES N.V. Movement of share options Year Outstanding Outstanding Exercise of Vesting Expiry 1 January Granted Exercised 31 December price per grant date date 2021 2021 2021 2021 option (€) 2014 1 December 2017 1 December 2021 12,000 - (12,000) - 17.00 1 December 2018 1 December 2021 6,000 - (6,000) - 17.00 1 December 2019 1 December 2021 10,000 - (10,000) - 17.00 2015 1 September 2018 1 December 2022 15,000 - - 15,000 22.46 1 September 2019 1 December 2022 7,500 - - 7,500 22.46 1 September 2020 1 December 2022 12,500 - - 12,500 22.46 1 September 2021 1 December 2022 15,000 - - 15,000 22.46 2018 1 April 2021 1 April 2025 10,500 - - 10,500 21.30 1 April 2022 1 April 2025 2,625 - - 2,625 21.30 1 April 2023 1 April 2025 4,375 - - 4,375 21.30 1 April 2024 1 April 2025 5,250 - - 5,250 21.30 2019 1 July 2022 1 July 2026 32,250 - - 32,250 18.74 1 July 2023 1 July 2026 16,125 - - 16,125 18.74 1 July 2024 1 July 2026 26,875 - - 26,875 18.74 1 July 2025 1 July 2026 32,250 - - 32,250 18.74 2020 30 April 2023 30 April 2027 15,000 - - 15,000 16.83 30 April 2024 30 April 2027 7,500 - - 7,500 16.83 30 April 2025 30 April 2027 12,500 - - 12,500 16.83 30 April 2026 30 April 2027 15,000 - - 15,000 16.83 2021 2 January 2024 2 January 2028 - 30,000 - 30,000 20.81 2 January 2025 2 January 2028 - 15,000 - 15,000 20.81 2 January 2026 2 January 2028 - 25,000 - 25,000 20.81 2 January 2027 2 January 2028 - 30,000 - 30,000 20.81 15 September 2024 15 September 2028 - 36,000 - 36,000 23.80 15 September 2025 15 September 2028 - 18,000 - 18,000 23.80 15 September 2026 15 September 2028 - 30,000 - 30,000 23.80 15 September 2027 15 September 2028 - 36,000 - 36,000 23.80 Total 258,250 220,000 (28,000) 450,250 The fair value at grant date is independently determined using the Black-Scholes model that takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the Acomo share, the expected dividend yield and the risk-free interest rate for the term of the option. The volatility measured at the standard deviation of continuously compound share returns is based on statistical analysis of the Acomo share, measured over a historic period equal to the expected life. ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 135 The model inputs are set out below: Fair value per option at grant date (€) Share Dividend Annual Year of grant price (€) Volatility yield risk-free rate 2013 2.31 16.34 18.0% 4.4% 1.90% 2014 1.96 18.64 22.5% 5.0% 0.30% 2015 1.87 22.46 22.5% 5.1% -0.10% 2018 1.25 21.30 17.5% 4.6% 0.19% 2019 0.95 18.74 17.5% 4.6% -0.60% 2020 1.89 19.64 20.0% 4.8% -0.70% 2021 1.87 20.90 22.5% 4.3% -0.75% 2021 1.87 23.50 22.5% 4.8% -0.61% 16 Contingencies and commitments The Group has contingent liabilities in respect of legal claims arising in the ordinary course of business. Besides the recognized provisions (Note 13.7), the Company is from time to time involved in liability disputes. Under certain circumstances, Acomo or its customers may be required to recall or withdraw products. This could result in signicant losses. The Group maintains product recall and general liability insurance levels that it believes to be adequate. However, Acomo cannot assure that no liability claims are incurred which are not covered by insurance policies. These claims could potentially have a materially adverse eect on the nancial position of the Company. Besides the claims provided for (Note 13.7), the Company cannot reasonably predict potential nancial losses to the Company arising from other disputes and/or claims. 17 Related party transactions Key management personnel disclosures are included in Note 1.7 of the Company nancial statements. 18 Subsequent events In early 2022 (after the end of the 2021 scal year), a military conict erupted between Ukraine and Russia. The Acomo Group does not have a presence in Ukraine, however Royal Van Rees Group has a sales oce in Moscow employing 19 people. Acomo subsidiaries also source raw materials from Ukraine, such as sunower seed kernels. The conict in Ukraine can limit access to these products, although alternative sources are available to the group companies. It is dicult to forecast the duration and economic consequences of the conict at this stage. The sanctions imposed on Russia by the EU and United States will impact operations in the area in the short term. Ukraine and Russia account for less than 4% of the Group’s total turnover and approximately 3% of the Group’s gross prot. Products sourced from the region represent less than 0.5% of the total procurement value of the Group. On 22 December 2021 the Group entered into an agreement to acquire the sales activities and packaging equipment of Qualino B.V., Ede, the Netherlands. The acquired assets and liabilities, including labour contracts, were eectively transferred on 1 January 2022. The transaction is non-material to the Group. ANNUAL REPORT 2021136 AMSTERDAM COMMODITIES N.V. Storage of tea samples of dierent origins and qualities at the Van Rees oce ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 137 FINANCIAL STATEMENTS COMPANY INCOME STATEMENT BALANCE SHEET AS AT 31 DECEMBER NOTES TO THE COMPANY FINANCIAL STATEMENTS All amounts are in thousands of euros, unless otherwise stated. Chamber of Commerce No. 24.191.858 COMPANY INCOME STATEMENT (in € thousands) Note 2021 2020 Other revenue 3,397 2,333 Total revenue 3,397 2,333 Personnel expenses (3,559) (2,266) Depreciation (232) (252) General and administrative expenses (2,475) (5,290) Total costs (6,266) (7,808) Operating income (2,869) (5,475) Financial income/(expenses) (156) (593) Result before income tax (3,025) (6,068) Corporate income tax 1,278 516 Result subsidiaries and aliates 1.1 55,703 32,587 Net prot 53,956 27,035 The notes on pages 142 to 145 are an integral part of these Company nancial statements. ANNUAL REPORT 2021140 AMSTERDAM COMMODITIES N.V. COMPANY BALANCE SHEET AS AT 31 DECEMBER (in € thousands, before prot appropriation) Assets 31 December 31 December Non-current assets Note 2021 2020 Other intangibles 19 41 Property, plant and equipment 39 43 Right-of-use assets 464 656 Investment in subsidiaries and aliates 1.1 530,718 482,561 Total non-current assets 531,240 483,301 Current assets Other receivables and prepayments 1.2 16,377 12,314 Total current assets 16,377 12,314 Total assets 547,617 495,615 Equity and liabilities Shareholders’ equity Share capital 13,325 13,312 Share premium reserve 155,105 154,642 Legal reserves 22,437 1,289 Other reserves 119,438 91,980 Net prot for the year 53,956 27,035 Total shareholders’ equity 1.3 364,261 288,258 Non-current liabilities and provisions Lease liabilities 280 476 Provisions for deferred income tax liabilities 1.2 4,747 2,034 Total non-current liabilities and provisions 5,027 2,510 Current liabilities Bank borrowings 7,148 4,551 Lease liabilities 175 203 Amounts owed to Group subsidiaries 1.2 166,295 194,698 Other liabilities and accrued expenses 4,711 5,395 Total current liabilities 178,329 204,847 Total equity and liabilities 547,617 495,615 The notes on pages 142 to 145 are an integral part of these Company nancial statements. ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 141 NOTES TO THE COMPANY FINANCIAL STATEMENTS Basis of preparation The Company nancial statements of Amsterdam Commodities N.V. (‘Acomo’) are prepared in accordance with generally accepted accounting principles in the Netherlands (Dutch GAAP) and compliant with the requirements included in Part 9 of Book 2 of the Dutch Civil Code. The Company prepares its consolidated nancial statements according to International Financial Reporting Standards (IFRS) as adopted by the European Union. The Company has made use of the possibility based on Article 362, paragraph 8, Part 9, Book 2 of the Dutch Civil Code to prepare the Company nancial statements based on the accounting policies used for the consolidated nancial statements. The accounting policies as described in the notes to the consolidated nancial statements also apply to the Company nancial statements unless indicated otherwise. Acomo is the parent company of the Group. Its revenue consists of management fee income from subsidiaries. Signicant accounting policies Investments in subsidiaries In accordance with section 2:362, subsection 8 of the Dutch Civil Code, all subsidiaries are presented using the equity method as identied by the Dutch Accounting Standards Board in accordance with the accounting principles applied in the consolidated accounts. The goodwill as identied in the consolidated nancial statements is subsumed in the carrying value of the investments in subsidiaries. 1.1 Financial xed assets Acomo and most of its Dutch subsidiaries form a scal unity for corporate income tax purposes. In accordance with standard conditions, the Company, along with the respective subsidiaries that are part of the scal unity, are wholly and severally liable for the tax liabilities of the scal unity. Corporate income tax expense on results of subsidiaries is reported as part of Results subsidiaries and aliates. For an overview of the subsidiaries of the Company, see Note 2.3 of the consolidated nancial statements. 1.2 Other receivables and prepayments – deferred tax liabilities – amounts owed to group companies Other receivables and prepayments consist of a receivable on a group company and prepaid income taxes 2020 and 2021, which will be charged to the related subsidiaries in 2022. The deferred tax liabilities are primarily related to temporary dierences of assets in Dutch subsidiaries that are part of the scal unity of which the Company is the head. The income taxes are determined per subsidiary and are settled through the inter-Company current accounts, with a subsequent payment by the Company to the tax authorities. The fair value of the other receivables and prepayments approximates the book value and falls due within one year. Investments in subsidiaries and aliates 2021 2020 1 January 482,561 216,524 Net prot for the year 55,703 32,587 Dividends paid out (29,769) (23,326) Currency translation dierences 20,979 (9,243) Pension movements through OCI 259 (169) Acquisition of subsidiaries 765 266,254 Other equity movements 220 (66) 31 December 530,718 482,561 ANNUAL REPORT 2021142 AMSTERDAM COMMODITIES N.V. 1.3 Shareholders’ equity Share capital Share premium reserve Legal reserves Other reserves Net prot for the year Total equity Balance 1 January 2020 11,093 62,028 10,489 87,255 32,077 202,942 Net prot 2020 - - - - 27,035 27,035 Dividends relating to 2019, nal - - - (17,256) - (17,256) Dividends relating to 2020, interim - - - (9,861) - (9,861) Currency translation adjustments (CTA) - - (9,243) - - (9,243) Appropriation of net prot - - - 32,077 (32,077) - New shares issued 2,219 92,614 - - - 94,833 Employee share option scheme eects - - 43 - - 43 Change in cash ow hedges - - - (66) - (66) Remeasurement gains/(losses) on dened benet plans - - - (169) - (169) Balance 31 December 2020 13,312 154,642 1,289 91,980 27,035 288,258 Net prot 2021 - - - - 53,956 53,956 Currency translation adjustments (CTA) - - 20,979 - - 20,979 Appropriation of net prot - - - 27,035 (27,035) - New shares issued 13 463 - - - 476 Employee share option scheme eects - - 169 (56) - 113 Change in cash ow hedges - - - 220 - 220 Remeasurement gains/(losses) on dened benet plans - - - 259 - 259 Balance 31 December 2021 13,325 155,105 22,437 119,438 53,956 364,261 The total authorized number of ordinary shares is 66.7 million shares with a par value of €0.45 per share. As at 31 December 2021, 29.6 million (2020: 29.6 million) shares were issued and fully paid. The issued share capital increased in 2021 by 28,000 shares (2020: 4,930,311) as a result of new shares issued relating to (former) employees exercising their vested options under the employee share option scheme. Included in the legal reserves are the currency translation reserve, which comprises all translation dierences arising from the translation of the net investment in group companies, including goodwill, in currencies other than the euro, and the share option plan reserve, which comprises the value of the vested rights in respect of the share option plan as far as stock options have not been exercised. 1.4 Employee information During 2021, the average number of employees employed by the Company was ten full-time equivalents (2020: nine), at year-end twelve (2020: nine). All employees were based in the Netherlands. 1.5 Audit fees The following amounts were paid to the Group auditor PwC as audit fees and included in other operating expenses: ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 143 Fees PwC 2021 In the Netherlands Network outside the Netherlands Total Audit 522 323 845 Audit-related 1 5 - 5 Tax 2 - 59 59 Total fees PwC 527 382 909 1 Agreed-upon procedures regarding compliance bank covenants and other nancial information 2 Relates to tax compliance services in Kenya and the USA In the Network outside the Fees PwC 2020 Netherlands Netherlands Total Audit 417 180 597 Audit-related 4 - 4 Tax - 60 60 Total fees PwC 421 240 661 The fees are included in the general costs of the consolidated accounts and relate to the procedures applied to the Company and its consolidated group entities by accounting rms and external auditors as referred to in Article 1 (1) of the Audit Firms Supervision Act (Dutch acronym: Wta) as well as by Dutch and foreign based accounting rms, including their tax services and advisory groups. The audit fees relate to the audit of the 2021 nancial statements, regardless of whether the work was performed during the nancial year. 1.6 Contingent liabilities Contingent liabilities are not expected to give rise to any material loss and include guarantees given for group companies. The Company has issued joint and several liability undertakings, some as dened in Article 403, Book 2 of the Dutch Civil Code, for almost all group companies in the Netherlands and for SIGCO Warenhandels- gesellschaft mbH, a German group company. The 2021 nancial gures of SIGCO Warenhandelsgesellschaft mbH, Hamburg, Germany, are included in the 2021 consolidated nancial statements of Amsterdam Commodities N.V. SIGCO Warenhandelsgesellschaft mbH makes use of the exemption provision of section 264 (3) of the German Commercial Code (HGB) in nancial year 2021. These written undertakings have been led with the Trade Register of the Chamber of Commerce in the respective seat the group company concerned has its registered oce. The Company is the head of a scal unity that includes most of the Dutch wholly-owned group companies. The Company is therefore jointly and severally liable for the tax liabilities of the scal unity as a whole. The 2021 and 2020 remuneration to the Executive Directors is shown below: Short- Post- Share- Remuneration Executive Directors term employment based Total Fixed-variable 2021 Salary bonus benets compensation remuneration remuneration Fortmann 1 241 375 0 16 632 41%-59% Goldschmeding 286 858 25 26 1,195 28%-72% Total Executive Directors 527 1,233 25 42 1,827 1 Mrs Fortmann was appointed as CEO on 15 September 2021 2020 Goldschmeding 286 649 25 23 983 34%-66% Total Executive Director 286 649 25 23 983 ANNUAL REPORT 2021144 AMSTERDAM COMMODITIES N.V. 1.7 Remuneration of the Board of Directors The remuneration of the Executive and Non-Executive Directors of the Board is determined in accordance with the remuneration policy as disclosed in the chapter Remuneration Report on page 56 and following. Key management includes the Executive Directors, Mrs Fortmann (Chief Executive Ocer) and Mr Goldschmeding (Chief Financial Ocer), who are the statutory directors of the Company, and the Non-Executive Directors, Mr Stuivinga, Mr Gottesman, Mrs Groothuis, Mr Niessen and Mrs Vandeputte. Mrs Fortmann and Mr Goldschmeding can earn a bonus when achieving specic targets in their roles as Chief Executive Ocer and Chief Financial Ocer. The bonuses shown are related to the performance in 2021 and will be paid out in 2022. Year of Outstanding Granted Exercised Outstanding Exercise Expiry Executive Directors grant 1 Jan 2021 2021 2021 31 Dec 2021 price (€) date Fortmann 2021 - 120,000 - 120,000 23.80 15-09-28 Goldschmeding 2015 50,000 - - 50,000 22.46 01-12-22 2020 50,000 - - 50,000 16.83 30-04-27 See Note 15 of the consolidated nancial statements for a description of the share option plan. Remuneration Non-Executive Directors 2021 2020 Stuivinga 1 106 106 Gottesman 1 95 95 Groothuis 85 85 Niessen 85 85 Vandeputte 2 25 - Total 396 371 1 Including €10 remuneration for being a member of the Supervisory Board of Catz International 2 Mrs Vandeputte was appointed as Non-Executive Director on 15 September 2021 As at 31 December 2021, the following Board members directly or indirectly owned Acomo shares: Mr Stuivinga (40,595), Mrs Groothuis (3,000) and Mr Niessen (3,665,008). No loans, advances or guarantees were granted to the Board. No share options were granted to the Non-Executive Directors of the Board. 1.8 Prot appropriation In accordance with the resolution of the Annual General Meeting held on 22 April 2021, the prot for 2020 has been appropriated in conformity with the proposed appropriation of prot stated in the 2020 nancial statements. The net prot for 2021 attributable to the shareholders amounting to €54.0 million shall be available in accordance with Article 24 of the Company’s Articles of Association. The Board of Directors proposes to distribute a 2021 nal dividend of €0.60 per share. The residual prot is proposed to be added to reserves. Rotterdam, 10 March 2022 The Board of Directors, K.L. Fortmann, Chief Executive Ocer A.W. Goldschmeding, Chief Financial Ocer B.H. Stuivinga, Non-Executive Chairman Y. Gottesman, Non-Executive Director M.E. Groothuis, Non-Executive Director J.G.H.M. Niessen, Non-Executive Director V. Vandeputte, Non-Executive Director ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 145 OTHER INFORMATION Appropriation of prot according to the Articles of Association Article 24 paragraph 1 of the Articles of Association stipulates: From the net prot as disclosed in the adopted income statement, such amounts are transferred to reserves as may be determined by the General Meeting of Shareholders and proposed by the Board of Directors. The remaining amount is at the disposal of the General Meeting of Shareholders. ANNUAL REPORT 2021146 AMSTERDAM COMMODITIES N.V. The nancial reporting framework applied in the preparation of the nancial statements is EU-IFRS and the relevant provisions of Part 9 of Book 2 of the Dutch Civil Code for the consolidated nancial statements and Part 9 of Book 2 of the Dutch Civil Code for the company nancial statements. The basis for our opinion We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. We have further described our responsibilities under those standards in the section ‘Our responsibilities for the audit of the nancial statements’ of our report. We believe that the audit evidence we have obtained is sucient and appropriate to provide a basis for our opinion. Independence We are independent of Amsterdam Commodities N.V. in accordance with the European Union Regulation on specic requirements regarding statutory audit of public-interest entities, the ‘Wet toezicht accountants- organisaties’ (Wta, Audit rms supervision act), the ‘Verordening inzake de onafhankelijkheid van accountants bij assuranceopdrachten’ (ViO, Code of Ethics for Professional Accountants, a regulation with respect to independence) and other relevant independence regulations in the Netherlands. Furthermore, we have complied with the ‘Verordening gedrags- en beroepsregels accountants’ (VGBA, Dutch Code of Ethics). Our audit approach Overview and context We designed our audit procedures in the context of our audit of the nancial statements as a whole. Our comments and observations regarding individual key audit matters, our audit approach regarding fraud risks and our audit approach regarding going concern should be read in this context and not as a separate opinion or conclusion on these matters. Independent auditor’s report To: the general meeting of Amsterdam Commodities N.V. Report on the nancial statements 2021 Our opinion In our opinion: • the consolidated nancial statements of Amsterdam Commodities N.V. together with its subsidiaries (‘the Group’) give a true and fair view of the nancial position of the Group as at 31 December 2021 and of its result and cash ows for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union (‘EU-IFRS’) and with Part 9 of Book 2 of the Dutch Civil Code; • the company nancial statements of Amsterdam Commodities N.V. (‘the Company’) give a true and fair view of the nancial position of the Company as at 31 December 2021 and of its result for the year then ended in accordance with Part 9 of Book 2 of the Dutch Civil Code. What we have audited We have audited the accompanying 2021 nancial statements of Amsterdam Commodities N.V., Rotterdam. The nancial statements include the consolidated nancial statements of the Group and the company nancial statements. The consolidated nancial statements comprise: • the consolidated balance sheet as at 31 December 2021; • the following statements for 2021: the consolidated statement of income, the consolidated statements of comprehensive income, cash ows and changes in equity; and • the notes to the consolidated nancial statements, comprising signicant accounting policies and other explanatory information. The company nancial statements comprise: • the company balance sheet as at 31 December 2021; • the company income statement for the year then ended; • the notes to the company nancial statements, comprising the accounting policies applied and other explanatory information. ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 147 Amsterdam Commodities N.V. is active in the sourcing, trading, processing, packaging and distribution of (non-quoted) conventional and organic food products and ingredients for the food and beverage industry. The Group is comprised of several components and therefore we considered our group audit scope and approach as set out in the section ‘The scope of our group audit’. We paid specic attention to the areas of focus driven by the operations of the Group, as set out below. As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the nancial statements. In particular, we considered where the board of directors made important judgements, for example, in respect of signicant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. In Note 4 of the nancial statements the Company describes the areas of judgement in applying accounting policies and the key sources of estimation uncertainty. Given the volatility in (non-quoted) commodity prices and exchange rates we considered valuation of the inventories, commodity trading positions and foreign exchange contracts to be a key audit matter. The credit risk of the debtors and uncertainty in the timing of the delivery of the products resulted in the collectability of trade receivables and recognition of revenue to be a key audit matter as well. As there are no signicant changes to the preliminary purchase price allocation from the prior year acquisition, the purchase price allocation is not considered a key audit matter for this year. The ongoing impact of the COVID-19 pandemic caused disruption in supply chains globally. This resulted in an increase in transportation costs, an increase in commodity market prices and unpredictability in supply chains. The Company responded with pricing initiatives to compensate for the increased costs and higher inventory levels to secure the product availability. The impact of COVID-19 on the business (including government support) was not considered as key audit matter as the nancial impact of COVID-19 on the result and the going concern of Acomo was not signicant and the level of government support was limited. There is increasing attention for climate change and its impact on companies and their operations, as well as the impact of companies on their environment. The Company assessed the possible eects of climate change on its nancial position. In the annual report sections “environment, social and governance” and “risk management and control”, the board of directors reects on the role of the Group and sustainability which includes climate-related risk and opportunities. We discussed management’s assessment and governance thereof and evaluated the potential impact on the nancial position including underlying assumptions and estimates. Management concluded that the climate change has no impact on the carrying amounts of assets and liabilities as of 31 December 2021. Management also concluded that, although the direct environmental footprint of Acomo companies is relatively small, the direct impact of climate change on its own operations could be severe as the products that Acomo is trading are highly sensitive to changes in growing conditions. Acomo mitigates the risk of reduced availability and quality of these products due to climate change by diversication of supply, among others. The impact of climate change is not considered a key audit matter. Other areas of focus, that were not considered as key audit matters were, fraud as explained below and goodwill impairment testing as the most recent acquisition performed in line with expectations and in the other operating segments there is signicant headroom, where any reasonable change in assumptions would not lead to an impairment. We ensured that the audit teams at both group and component level included the appropriate skills and competences which are needed for the audit of a commodity trading company. We therefore included experts and specialists in the areas of amongst others IT, share-based payments and valuations in our team. ANNUAL REPORT 2021148 AMSTERDAM COMMODITIES N.V. Materiality The scope of our audit was inuenced by the application of materiality, which is further explained in the section ‘Our responsibilities for the audit of the nancial statements’. Based on our professional judgement we determined certain quantitative thresholds for materiality, including the overall materiality for the nancial statements as a whole as set out in the table below. These, together with qualitative considerations, helped us to determine the nature, timing and extent of our audit procedures on the individual nancial statement line items and disclosures and to evaluate the eect of identied misstatements, both individually and in aggregate, on the nancial statements as a whole and on our opinion. We also take misstatements and/or possible misstatements into account that, in our judgement, are material for qualitative reasons. We agreed with the board of directors that we would report to them any misstatement identied during our audit above €175,000 (2020: €105,000) as well as misstatements below that amount that, in our view, warranted reporting for qualitative reasons. Overall group materiality €3.6 million (2020: €2.1 million). Basis for determining materiality We used our professional judgement to determine overall materiality. As a basis for our judgement we used 5% of prot before tax. Rationale for benchmark applied We used prot before tax as the primary benchmark, a generally accepted auditing practice, based on our analysis of the common information needs of users of the nancial statements. On this basis, we believe that prot before tax is an important metric for the nancial performance of the Company. Component materiality Based on our judgement, we allocate materiality to each component in our audit scope that is less than our overall group materiality. The range of materiality allocated across components was between €750,000 and €3 million. Materiality • Overall materiality: €3.6 million. Audit scope • We have audited the nancial information of seven components, including ve sub-components. For two other components and four sub-components we performed specied audit procedures. • Site visits were virtually conducted throughout the year with our component auditors. The audits and specied procedures of the Dutch components were all performed with involvement of the group engagement team. • Audit coverage: 90% of consolidated revenue, 90% of consolidated total assets and 90% of consolidated prot before tax. Key audit matters • Valuation of inventories, (non-quoted) commodity trading positions and foreign exchange contracts • Collectability of trade receivables and recognition of revenue Materiality Key audit matters Audit scope The outline of our audit approach was as follows: ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 149 The scope of our group audit Amsterdam Commodities N.V. is the parent company of a group of entities. The nancial information of this group is included in the consolidated nancial statements of Amsterdam Commodities N.V. We tailored the scope of our audit to ensure that we, in aggregate, provide sucient coverage of the nancial statements for us to be able to give an opinion on the nancial statements as a whole, taking into account the management structure of the Group, the nature of operations of its components, the accounting processes and controls, and the markets in which the components of the Group operate. In establishing the overall group audit strategy and plan, we determined the type of work required to be performed at component level by the group engagement team and by each component auditor. The group audit primarily focussed on the signicant components. In determining our scoping, we considered both nancial and the following qualitative factors as well as Acomo’s decentralized structure to be relevant: • Amsterdam Commodities N.V. is the holding company which role includes monitoring nancial performance, nancing, assessing and monitoring eective risk management, compliance and control systems with regard to the subsidiaries’ activities (as described on page 16 of the annual report) and we therefore determined this to be a signicant component. • The Group consists of a number of subsidiaries active in trading, international sourcing, processing and selling of niche food commodities and ingredients in the food industry. The subsidiaries operate to a great extent autonomously under the responsibility of their own management and nancial control. We therefore included a relatively large number of components in our audit scope. • Van Rees Group B.V. and The Organic Corporation B.V. are two subgroups within Amsterdam Commodities N.V., which each manage subsidiaries located across the globe. These two subgroups were in scope of our audit where an audit of nancial information or specied audit procedures were performed for subsidiaries of these two subgroups. Our group audit scoping and the involvement of the group audit team for components where we performed an audit of the nancial information (full scope audit) or specied audit procedures, is included in the table below. Specied audit procedures have been performed for two components to achieve the appropriate coverage on nancial line items in the consolidated nancial statements. In total, in performing these procedures, we achieved the following coverage on the nancial line items: Revenue 90% Total assets 90% Prot before tax 90% None of the remaining components represented more than 2% of total group revenue or total group assets. For those remaining components we performed, among other things, analytical procedures to corroborate our assessment that there were no signicant risks of material misstatements within those components. Component Signicant component Involvement from the group audit team Scoping Amsterdam Commodities N.V. V V Full scope audit Catz International B.V. V V Full scope audit Red River Commodities Inc. V V Full scope audit Van Rees Group B.V. (consolidated) V V Full scope audit The Organic Corporation B.V. (consolidated) V V Full scope audit Tradin USA LLC V Full scope audit Snick EuroIngredients N.V. V Full scope audit King Nuts B.V. V Specied audit procedures Delinuts B.V. V Specied audit procedures ANNUAL REPORT 2021150 AMSTERDAM COMMODITIES N.V. In the Netherlands, the audits of all components are performed by the Group audit team and we had video calls with all foreign components in 2021, as set out in this scoping paragraph above. For the audits of all components outside the Netherlands, we used component auditors who are familiar with the local laws and regulations in each of the locations to perform this audit work. Where component auditors performed the work, we determined the level of involvement we needed to have in their work to be able to conclude whether we had obtained sucient and appropriate audit evidence as a basis for our opinion on the consolidated nancial statements as a whole. We issued instructions to the component auditors in our audit scope. These instructions included amongst others our risk analysis and scope of the work. During the year, we had regular calls with all component auditors in which we discussed, amongst others, recent developments at the respective component, the scope of our audit, the reports of the component auditor, the ndings following their procedures, the need for any support or information from Group level and other matters which could be of relevance for the consolidated nancial statements. Furthermore, we attended all the closing meetings of the component audits (through video calls) and reviewed selected working papers for the components where a full scope audit is performed. The group engagement team performed the audit work on the group consolidation, nancial statement disclosures and a number of complex items at the head oce. These items include, but are not limited to the nalisation of the purchase price allocation for Tradin Organic, goodwill impairment testing, valuation of derivative nancial instruments, tax accounting, segmentation and share based payments. By performing the procedures outlined above at the components, combined with additional procedures exercised at group level, we have been able to obtain sucient and appropriate audit evidence on the Group’s nancial information, as a whole, to provide a basis for our opinion on the nancial statements. Audit approach fraud risks We identied and assessed the risks of material misstatements of the nancial statements due to fraud. During our audit we obtained an understanding of the Group and its environment and the components of the system of internal control, including the risk assessment process and management’s process for responding to the risks of fraud and monitoring the system of internal control and how the board of directors exercises oversight, as well as the outcomes. We refer to the sections “corporate governance” and “risk management and control” of the annual report where the board of directors reects on its response to fraud risk. We evaluated the design and relevant aspects of the system of internal control and including the fraud risk assessment, as well as among others the code of conduct, whistle blower procedures and incident follow up. We evaluated the design and the implementation and, where considered appropriate, tested the operating eectiveness, of internal controls designed to mitigate fraud risks. We performed inquiries with the board of directors and local management for actual or suspected fraud incidents noted within the Group through the whistle-blower process or otherwise. As part of our process of identifying fraud risks, we evaluated fraud risk factors with respect to nancial reporting fraud, misappropriation of assets and bribery and corruption. We evaluated whether these factors indicate that a risk of material misstatement due to fraud is present. As described in the auditing standards, management override of controls and risk of fraud in revenue recognition are presumed risks of fraud. We addressed the risk of management override of internal controls, including evaluating whether there was evidence of bias by the board of directors that may represent a risk of material misstatement due to fraud. We performed data analysis of high-risk journal entries and evaluated key estimates and judgements for bias by Amsterdam Commodities N.V., including retrospective reviews of prior year’s estimates. Where we identied instances of unexpected journal entries or other risks through our data analytics, we performed additional audit procedures to address each identied risk. These procedures also included testing of transactions back to source information. ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 151 With regards to the risk of fraud in revenue recognition, we instructed our components to perform procedures over this risk, including evaluate the design and implementation of relevant internal controls and tracing a sample of revenue transactions to the supporting documents and validating unusual journal entries. As described in the section ‘the scope of our group audit’ we reviewed the audit procedures performed by our component teams. Given the territories the Group operates in, we considered the risk of bribery and corruption taking into account the corruption perception index of the countries of operation and updated our understanding of the internal controls that the Group has in place to address and manage this risk when doing business in higher risk countries. We considered the possibility of fraudulent or corrupt payments made across various countries of operation determined by a risk-based process and included contracts with commission in our testing. We also reviewed payments made and received through cash transactions. We incorporated elements of unpredictability in our audit. We also considered the outcome of our other audit procedures and evaluated whether any ndings were indicative of fraud or non-compliance. We refer to the key audit matters below, that are examples of our approach related to areas of higher risk due to accounting estimates where the board of directors makes signicant judgements. Audit approach going concern Management prepared the nancial statements based on the assumption that the Company is a going concern and that it will continue its operations for the foreseeable future. Refer to paragraph 3.2 “capital risk management”[and 3.3] in the nancial statements. Our procedures to evaluate management’s going concern assessment include, amongst others: • Considerations whether management’s going concern assessment includes all relevant information of which we are aware as a result of our audit, inquiry with management and whether management has identied any events or conditions that may cast a signicant doubt on the Company’s ability to continue as a going concern (hereafter: going concern risks); • Analysing the nancial position per balance sheet date compared to prior year as well as the scenario analysis to asse the solvency and headroom of the nancing facilities of the company, to assess whether events or circumstances exist that may lead to a going concern risk; • Evaluating management’s current operating plan including cash ows in comparison with last year, current developments in the industry and all relevant information of which we are aware as a result of our audit; • Inquiry with management as to their knowledge of going concern risks beyond the period of management’s assessment. Our procedures did not result in outcomes contrary to management’s assumptions and judgments used in the application of the going concern assumption. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most signicance in the audit of the nancial statements. We communicated the key audit matters to the board of directors. The key audit matters are not a comprehensive reection of all matters identied by our audit and that we discussed. In this section, we described the key audit matters and included a summary of the audit procedures we performed on those matters. We addressed the key audit matters in the context of our audit of the nancial statements as a whole, and in forming our opinion thereon. We do not provide separate opinions on these matters or on specic elements of the nancial statements. Any comment or observation we made on the results of our procedures should be read in this context. ANNUAL REPORT 2021152 AMSTERDAM COMMODITIES N.V. Key audit matter Valuation of inventories, (non-quoted) commodity trading positions and foreign exchange contracts (note 2.10, 2.9, 2190, note 12.3, 13.4 and 13.7) It is the core business of Acomo to accept managed risks, by taking positions in dierent types of (non-quoted) commodities and contracts in dierent currencies. This is to a large extent done autonomously under the responsibility of local management with separate nancial and operational systems. Certain operating companies use derivative nancial instruments to hedge risks associated with foreign currency risk (mainly Euro/US Dollar exposures). In the Tea segment, hedge accounting is applied. Acomo’s approach in relation to foreign exchange risk is disclosed in note 3.1.1 to the nancial statements. The price and foreign currency volatilities of the (non- quoted) commodity markets have a direct impact on the value of the subsidiaries’ (non-quoted) commodity trading positions and could therefore result in signicant inventory write-downs to net realisable value and/or losses on onerous contracts. This assessment requires judgement based on historic trades, as there are no direct observable market prices available. The activities and processes as set out above are complex and require judgement, we therefore considered the valuation of inventories, (non-quoted) commodity trading positions and foreign exchange contracts a key audit matter. Our audit work and observations Our audit was largely substantive in nature. In some areas, we performed procedures, which allowed us to rely, to the extent possible, on internal controls at subsidiary and Group level for the purpose of our audit. We performed, amongst others, procedures designed to identify risks around segregation of duties for the trading activities between, authorization of trading transactions and accounting of these transactions in the nancial and operational systems. We assessed the Company’s hedging policies for their foreign exchange risk exposure. We tested the recognition at fair value of derivative nancial instruments based on market data together with our nancial instruments specialists and we investigated, for the Tea segment, whether the hedge accounting has been applied correctly. Based on these audit procedures performed, we noted no material exceptions. We tested inventory for their existence by obtaining third party warehouse conrmations, including attending inventory counts on signicant locations., We tested the inventory pricing through reconciliation with purchase contracts. For the eects of price movements, we assessed the Company’s trading guidelines, positions per product group and overall positions. We tested and challenged management’s analysis of the valuation of inventories and the economic trading positions with contracts and market prices. Furthermore, we tested the calculation and authorisation of onerous contract provisions and the net realisable value of inventories below cost through comparison with recent transactions and transactions subsequent to the year-end. Based on the aforementioned audit procedures performed, we found management’s judgement around the valuation of the inventories and trading positions reasonable and we noted no material exceptions. ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 153 Key audit matter Collectability of trade receivables and recognition of revenue (note 2.11 / 2.20, note 12.1) Trade receivable balances are signicant to Acomo as they represent 19% of the consolidated balance sheet (refer to note 12.1 to the nancial statements). The collectability of trade receivables is a risk as Acomo is trading with customers worldwide and judgement is involved in the assessment of the collectability of trade receivables. The collectability of trade receivables is a key element of Acomo’s working capital management, which is managed on an ongoing basis by local management. The Acomo board of directors supports operating companies in setting credit limits for customers and approve such limits above certain thresholds where applicable. Given the nature of the businesses with delivery, worldwide, frequent changes in planned delivery dates and requirements of customers, various shipping terms are in place, which impact the revenue recognition. Given the magnitude and judgement involved in the collectability, assessment of trade receivables and variety of shipping terms that impact revenue recognition, this is considered a key audit matter. Our audit work and observations We have challenged the assumptions used to calculate the trade receivables impairment amount based on the expected credit loss model, notably through assessing specic local risks, detailed analyses of ageing of receivables and assessment of individual signicant overdue trade receivables, combined with legal documentation, where applicable and testing of receipts after the year-end. We found management’s judgement around the collectability of trade receivables reasonable. We performed audit procedures on the recognition of revenue, which included but were not limited to control testing on sales transactions for the purpose of our audit and substantive audit procedures, such as tracing transactions back to shipping documents, contracts and performing subsequent receipt testing. We have tested management’s revenue recognition in accordance with EU-IFRS 15 based on the shipping terms agreed with customers. Furthermore, we have tested management’s cut-o testing procedures to assess that revenue was recognized in the correct period and have independently selected samples to test cut-o of revenue through verication of shipping documents, contracts and invoices. Based on the aforementioned audit procedures performed, we noted no material exceptions. Report on the other information included in the annual report The annual report contains other information. This includes all information in the annual report in addition to the nancial statements and our auditor’s report thereon. Based on the procedures performed as set out below, we conclude that the other information: • is consistent with the nancial statements and does not contain material misstatements; • contains all the information regarding the directors’ report and the other information that is required by Part 9 of Book 2 and regarding the remuneration report required by the sections 2:135b and 2:145 subsection 2 of the Dutch Civil Code. We have read the other information. Based on our knowledge and the understanding obtained in our audit of the nancial statements or otherwise, we have considered whether the other information contains material misstatements. By performing our procedures, we comply with the requirements of Part 9 of Book 2 and section 2:135b subsection 7 of the Dutch Civil Code and the Dutch Standard 720. The scope of such procedures was substantially less than the scope of those procedures performed in our audit of the nancial statements. The board of directors is responsible for the preparation of the other information, including the directors’ report and the other information in accordance with Part 9 of Book 2 ANNUAL REPORT 2021154 AMSTERDAM COMMODITIES N.V. of the Dutch Civil Code. The board of directors are responsible for ensuring that the remuneration report is drawn up and published in accordance with sections 2:135b and 2:145 subsection 2 of the Dutch Civil Code. Report on other legal and regulatory requirements and ESEF Our appointment We were appointed as auditors of Amsterdam Commodities N.V. This followed the passing of a resolution by the shareholders at the annual general meeting held on 30 April 2014. Our appointment has been renewed annually by shareholders and now represents a total period of uninterrupted engagement of 8 years. European Single Electronic Format (ESEF) Amsterdam Commodities N.V. has prepared the annual report, including the nancial statements, in ESEF. The requirements for this format are set out in the Commission Delegated Regulation (EU) 2019/815 with regard to regulatory technical standards on the specication of a single electronic reporting format (these requirements are hereinafter referred to as: the RTS on ESEF). In our opinion, the annual report prepared in XHTML format, including the partially tagged consolidated nancial statements as included in the reporting package by Amsterdam Commodities N.V., has been prepared in all material respects in accordance with the RTS on ESEF. The board of directors is responsible for preparing the annual report, including the nancial statements, in accordance with the RTS on ESEF, whereby the board of directors combines the various components into a single reporting package. Our responsibility is to obtain reasonable assurance for our opinion whether the annual report in this reporting package, is in accordance with the RTS on ESEF. Our procedures, taking into account Alert 43 of the NBA (Royal Netherlands Institute of Chartered Accountants), included amongst others: • Obtaining an understanding of the entity’s nancial reporting process, including the preparation of the reporting package. • Obtaining the reporting package and performing validations to determine whether the reporting package, containing the Inline XBRL instance document and the XBRL extension taxonomy les, has been prepared, in all material respects, in accordance with the technical specications as included in the RTS on ESEF. • Examining the information related to the consolidated nancial statements in the reporting package to determine whether all required taggings have been applied and whether these are in accordance with the RTS on ESEF. No prohibited non-audit services To the best of our knowledge and belief, we have not provided prohibited non-audit services as referred to in article 5(1) of the European Regulation on specic requirements regarding statutory audit of public-interest entities. Services rendered The services, in addition to the audit, that we have provided to the Company and its controlled entities, for the period to which our statutory audit relates, are disclosed in note 1.5 to the Company nancial statements. Responsibilities for the nancial statements and the audit Responsibilities of the board of directors The board of directors is responsible for: • the preparation and fair presentation of the nancial statements in accordance with EU-IFRS and Part 9 of Book 2 of the Dutch Civil Code; and for • such internal control as the board of directors determines is necessary to enable the preparation of the nancial statements that are free from material misstatement, whether due to fraud or error. As part of the preparation of the nancial statements, the board of directors is responsible for assessing the Company’s ability to continue as a going-concern. Based on the nancial reporting frameworks mentioned, the board of directors should prepare the nancial statements using the going-concern basis of accounting unless the board of directors either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so. The board of directors should disclose in the nancial statements any event and circumstances that may cast signicant doubt on the Company’s ability to continue as a going concern. ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 155 Our responsibilities for the audit of the nancial statements Our responsibility is to plan and perform an audit engagement in a manner that allows us to obtain sucient and appropriate audit evidence to provide a basis for our opinion. Our objectives are to obtain reasonable assurance about whether the nancial statements as a whole are free from material misstatement, whether due to fraud or error and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high but not absolute level of assurance, which makes it possible that we may not detect all material misstatements. Misstatements may arise due to fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to inuence the economic decisions of users taken on the basis of the nancial statements. Materiality aects the nature, timing and extent of our audit procedures and the evaluation of the eect of identied misstatements on our opinion. A more detailed description of our responsibilities is set out in the appendix to our report. Rotterdam, 10 March 2022 PricewaterhouseCoopers Accountants N.V. P.J. Robben RA ANNUAL REPORT 2021156 AMSTERDAM COMMODITIES N.V. Appendix to our auditor’s report on the nancial statements 2021 of Amsterdam Commodities N.V. In addition to what is included in our auditor’s report, we have further set out in this appendix our responsibilities for the audit of the nancial statements and explained what an audit involves. The auditor’s responsibilities for the audit of the nancial statements We have exercised professional judgement and have maintained professional scepticism throughout the audit in accordance with Dutch Standards on Auditing, ethical requirements and independence requirements. Our audit consisted, among other things of the following: • Identifying and assessing the risks of material misstatement of the nancial statements, whether due to fraud or error, designing and performing audit procedures responsive to those risks, and obtaining audit evidence that is sucient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the intentional override of internal control. • Obtaining 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 eectiveness of the Company’s internal control. • Evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the board of directors. • Concluding on the appropriateness of the board of directors’ use of the going-concern basis of accounting, and based on the audit evidence obtained, concluding whether a material uncertainty exists related to events and/or conditions that may cast signicant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the nancial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report and are made in the context of our opinion on the nancial statements as a whole. However, future events or conditions may cause the Company to cease to continue as a going concern. • Evaluating the overall presentation, structure and content of the nancial statements, including the disclosures, and evaluating whether the nancial statements represent the underlying transactions and events in a manner that achieves fair presentation. Considering our ultimate responsibility for the opinion on the consolidated nancial statements, we are responsible for the direction, supervision and performance of the group audit. In this context, we have determined the nature and extent of the audit procedures for components of the Group to ensure that we performed enough work to be able to give an opinion on the nancial statements as a whole. Determining factors are the geographic structure of the Group, the signicance and/or risk prole of group entities or activities, the accounting processes and controls, and the industry in which the Group operates. On this basis, we selected group entities for which an audit or review of nancial information or specic balances was considered necessary. We communicate with the board of directors regarding, among other matters, the planned scope and timing of the audit and signicant audit ndings, including any signicant deciencies in internal control that we identify during our audit. In this respect, we also issue an additional report to the audit committee in accordance with article 11 of the EU Regulation on specic requirements regarding statutory audit of public-interest entities. The information included in this additional report is consistent with our audit opinion in this auditor’s report. We provide the board of directors 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 actions taken to eliminate threats or safeguards applied. ANNUAL REPORT 2021AMSTERDAM COMMODITIES N.V. 157 LIST OF ACRONYMS AND ABBREVIATIONS AFM Dutch Authority for the Financial Markets AGM Annual General Meeting of shareholders AScX Amsterdam Small Cap Index BRC British Retail Consortium Global Standard for Food Safety CAGR Compound annual growth rate CGU Cash-generating unit CSRD Corporate Sustainability Reporting Directive CTA Currency translation adjustments DCF Discounted cash ow EBIT Earnings before interest and taxes (operating income) EBITDA Earnings before interest, taxes, depreciation and amortization EGM Extraordinary General Meeting EPS Earnings per share ERP Enterprise resource planning ESG Environmental, social and governance FIFO First in, rst out FSSC Food Safety System Certication FT Fair Trade FTE Full-time equivalent FX rate Foreign exchange rate GAAP Generally accepted accounting principles GFSI Global Food Safety Initiative GHG Greenhouse gas GRI Global Reporting Initiative HACCP Hazard analysis and critical control points HGB Handelsgezetsbuch IAS International accounting standards IFRS International Financial Reporting Standards ISIN International securities identication number NFRD Non-Financial Reporting Directive NGO Non-governmental organization OCI Other comprehensive income OECD Organisation for Economic Cooperation and Development PPA Purchase price allocation PPE Property, plant and equipment PSU Performance-based Stock Unit RA Rainforest Alliance RCF Revolving credit facility RONCE Return on net capital employed RSPO Roundtable on Sustainable Palm Oil RSU Restricted Stock Unit SDG Sustainable Development Goals Skal Dutch control authority for organic production SRD Shareholder Rights Directive The Code Dutch Corporate Governance Code UTZ UTZ certied WACC Weighted average cost of capital Wta Dutch Audit Firms Supervision Act ANNUAL REPORT 2021158 AMSTERDAM COMMODITIES N.V. EXPLANATION OF SOME CONCEPTS AND RATIOS Compound annual growth rate (CAGR) This rate is calculated as the value at the end of the period divided by the value at the beginning of the period, compounded to the respective period. Dividend pay-out ratio The dividend pay-out ratio is calculated as the sum of the interim and (proposed) nal dividend for the year as a percentage of the net prot for the year. Earnings per share The earnings per share are calculated as the total net prot for the period divided by the (weighted) average number of ordinary shares outstanding. Equity per share The equity per share reects the Company’s equity allocated to each outstanding share of common stock and is calculated by dividing the total shareholders’ equity by the total number of ordinary shares outstanding at year-end. Interest cover ratio The interest cover ratio is calculated by dividing the normalized EBITDA by the total of the interest expense minus interest income. Market capitalization Market capitalization reects the total market value of all the Company’s outstanding shares and is calculated by multiplying the total shares issued by the share price at period-end. Net capital employed Net capital employed consists of the total assets minus cash and banks, provisions, trade creditors and other liabilities. Net debt/total equity This ratio is calculated by dividing the net debt by the total equity. Net operating assets Net operating assets comprise the average total net assets adjusted for goodwill. Price/earnings ratio The price/earnings ratio is calculated by dividing the share price at year-end by the earnings per share. Return on net capital employed Return on net capital employed measures a company’s protability and the eciency with which its capital is employed. This indicator reects the EBIT as a percentage of the average net capital employed. Solvency Solvency reects the total equity as a percentage of the total assets. Total shareholders’ return The total shareholders’ return shows the performance of the Company’s shares over time using the change in share price at year-end and the total dividend paid during the year, divided by the year-end share price of prior year. ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 159 INFORMATION TAKEOVER DIRECTIVE DECREE Information following Article 10, Takeover Directive Decree, and section 391, subsection 5, Book 2 of the Dutch Civil Code: a. Capital structure and attached rights and duties The information on the capital structure of the Company can be found in chapter The Acomo Share, and information on the attached rights and duties (voting rights) can be found in chapter Governance. b. Statutory or contractual restrictions on share transfer Not applicable. c. Major shareholders See chapter The Acomo Share. d. Special rights of control Not applicable. e. Control mechanisms relating to options plans, share plans, and share purchase plans The Company has only one share-based payment arrangement in eect: a share option plan for key managers and employees of the Company and its subsidiaries, including executive directors. The relevant characteristics of the plan can be found in the notes to share-based payment. f. Voting limitations Not applicable. g. Agreements with shareholders that can limit the transfer of shares or voting rights Not applicable. h. Regulations concerning the appointment and dismissal of Board members and changes to the Articles of Association Members of the Board of Directors are appointed by, and may at any time be suspended or dismissed by, the Annual General Meeting of Shareholders. Resolutions with respect to appointment and dismissal are passed by an absolute majority of votes cast. If an amendment to the Articles of Association is proposed to the Annual General Meeting of Shareholders, this is always stated in the convening notice for that meeting. i. Authority of the Board, especially to issue and repurchase shares in the Company This information is disclosed in chapter Governance. j. Change of control arrangements Change of control provisions have been included in the Company’s arrangements with the nancial institutions that provide the credit facilities to the Company. k. Agreements with Executive Board members or employees The severance payment for the Executive Directors has been set at a maximum of one time the annual pay. ANNUAL REPORT 2021160 AMSTERDAM COMMODITIES N.V. CONTACT DETAILS GROUP COMPANIES Catz International H.C. (Henk) Moerman, Managing Director Boompjes 40 P.O. Box 180, 3000 AD Rotterdam The Netherlands T +31 10 411 34 40 E [email protected] www.catz.nl King Nuts & Raaphorst J. (Jaap) Klijn, Managing Director Spanjeweg 4 P.O. Box 1044, 2410 CA Bodegraven The Netherlands T +31 172 63 22 22 E [email protected] www.kingnuts-raaphorst.com Red River Commodities E. (Eric) Christianson, President & CEO 501, 42nd Street NW P.O. Box 3022, Fargo, North Dakota 58102, USA T +1 701 28 22 600 E [email protected] www.redriv.com Red River-Van Eck A.L. (Anton) van Eck, Managing Director Nijverheidsweg 148 4879 AZ Etten-Leur The Netherlands T +31 168 32 35 55 E [email protected] www.rr-ve.com SIGCO Warenhandelsgesellschaft L. (Lars) Reinecke, Managing Director Dammtorstraße 21b 20354 Hamburg Germany T +49 40 351 03 90 E [email protected] www.sigco.de Royal Van Rees Group R. (Rajith) De Mel, Managing Director Blaak 16 P.O. Box 914, 3000 AX Rotterdam The Netherlands T +31 10 402 17 50 E [email protected] www.vanrees.com Tovano R.J.A. (Richard) Strijbis, Managing Director Transportweg 47 2676 LM Maasdijk The Netherlands T +31 174 52 83 33 E [email protected] www.tovano.nl Delinuts K. (Koert) Liekelema, Managing Director Radonstraat 12 P.O. Box 8100, 6710 AC Ede The Netherlands T +31 318 555 000 E [email protected] www.delinuts.nl Red River Global Ingredients B. (Bruce) Wiebe, President & CEO 880 L-15th Street, Unit #4 Winkler, Manitoba R6W OH5 Canada T +1 204 325 5105 E [email protected] www.redrivglobal.com Food Ingredients Service Center Europe (FISCe) J.F. (John) van den Broek, Managing Director Nijverheidsweg 148 4879 AZ Etten-Leur The Netherlands T +31 168 372 325 E info@sce.eu www.sce.eu Tradin Organic G.J.M. (Gerard) Versteegh, Managing Director Stationsplein 61–65 1012 AB Amsterdam The Netherlands T +31 20 407 44 99 E [email protected] www.tradinorganic.com Snick EuroIngredients E.H.W. (Erik) Engbersen, Managing Director De Leiteweg 13 8020 Ruddervoorde Belgium T +32 50 36 16 85 E [email protected] www.snick.be ANNUAL REPORT 2021 AMSTERDAM COMMODITIES N.V. 161 National Archives The National Archives in The Hague are the largest public archives in the Netherlands. With a history of its own that dates back to the early 1800s, the organization covers 1,000 years of Dutch history in 137 kilometres of documents, 800 terabytes of digital les, 15 million photographs and 300,000 maps and drawings. It acts as the ocial archivist for the government of the Kingdom of the Netherlands and its predecessors, the Dutch Royal House and many other organizations and individuals of national importance. The National Archives are expert advisers in information and records management, as well as leaders in the art of making history accessible to a broad and diverse audience. The organization develops popular exhibitions, supports education and opens its doors to scholars and journalists for historical research. Captains of History The National Archives receive additional support from many individuals and companies. Individuals can register as friends of the National Archives, while options for companies include the partner programme ‘Captains of History’. The Captains of History are a group of leading Dutch companies which, in addition to their corporate interests, have a keen eye for the historical role that their company has played in Dutch history. Acomo supports the National Archives in their mission to preserve the nation’s cultural heritage for generations to come. For more information about the National Archives and options to become a supporter, please visit www.nationaalarchief.nl/captains or contact [email protected]. CONTACT DETAILS ACOMO Amsterdam Commodities N.V. WTC, Beursplein 37 P.O. Box 30156, 3001 DD Rotterdam The Netherlands T +31 10 405 11 95 E [email protected] www.acomo.nl Amsterdam Commodities N.V. Chamber of Commerce No. 24.191.858 ANNUAL REPORT 2021162 AMSTERDAM COMMODITIES N.V. Images Page 6 Cargo list from the seventeenth century (1691). National Archives, The Hague, The Netherlands. Access no. 1.10.48, inventory no. 17. Page 7 Illustration of a pepper tree in a set of books which contains descriptions of products originating from the East Indies (around 1710). National Archives, The Hague, The Netherlands. Access no. 1.11.01.01, inventory no. 150A. Special thanks to Ron Guleij of the National Archives for his input towards the History pages (6-7) Production Acomo Project coordination Scribo’nea Copywriting and editing Witold van Ratingen Graphic design and print Quantes, Rijswijk Photography Sjors Massar Paper cover sulphate cardboard 260 gsm, inside pages multi-oset white 100 gsm, FSC certied Bridging your needs The Acomo Group enhances access to plant-based and natural food products and ingredients through sustainable supply chains. Our companies source, trade, process, package and distribute conventional and organic food products and ingredients for the food and beverage industry in more than 100 countries across the world. The activities of our operating companies are bundled in ve product segments: Spices and Nuts, Edible Seeds, Organic Ingredients, Tea and Food Ingredients. Each segment features Acomo companies in various stages of the value chain. All companies within the Acomo Group strive to add value and to realize sustainable prots. Our global presence and long-standing history enable us to bridge the needs of our stakeholders and provide peace of mind to our suppliers, partners and customers. WTC, Beursplein 37 | 3011 AA Rotterdam, the Netherlands | T + 31 (0)10 405 11 95 | E [email protected] | www.acomo.nl 7245001M40ANG7IIS4372021-01-012021-12-317245001M40ANG7IIS4372020-01-012020-12-317245001M40ANG7IIS4372021-12-317245001M40ANG7IIS4372020-12-317245001M40ANG7IIS4372019-12-317245001M40ANG7IIS4372019-12-31ifrs-full:IssuedCapitalMember7245001M40ANG7IIS4372020-01-012020-12-31ifrs-full:IssuedCapitalMember7245001M40ANG7IIS4372020-12-31ifrs-full:IssuedCapitalMember7245001M40ANG7IIS4372019-12-31ifrs-full:SharePremiumMember7245001M40ANG7IIS4372020-01-012020-12-31ifrs-full:SharePremiumMember7245001M40ANG7IIS4372020-12-31ifrs-full:SharePremiumMember7245001M40ANG7IIS4372019-12-31ifrs-full:OtherReservesMember7245001M40ANG7IIS4372020-01-012020-12-31ifrs-full:OtherReservesMember7245001M40ANG7IIS4372020-12-31ifrs-full:OtherReservesMember7245001M40ANG7IIS4372019-12-31AMS:RetainedEarningsExcludingProfitLossForReportingPeriodMember7245001M40ANG7IIS4372020-01-012020-12-31AMS:RetainedEarningsExcludingProfitLossForReportingPeriodMember7245001M40ANG7IIS4372020-12-31AMS:RetainedEarningsExcludingProfitLossForReportingPeriodMember7245001M40ANG7IIS4372019-12-31AMS:RetainedEarningsProfitLossForReportingPeriodMember7245001M40ANG7IIS4372020-01-012020-12-31AMS:RetainedEarningsProfitLossForReportingPeriodMember7245001M40ANG7IIS4372020-12-31AMS:RetainedEarningsProfitLossForReportingPeriodMember7245001M40ANG7IIS4372019-12-31ifrs-full:EquityAttributableToOwnersOfParentMember7245001M40ANG7IIS4372020-01-012020-12-31ifrs-full:EquityAttributableToOwnersOfParentMember7245001M40ANG7IIS4372020-12-31ifrs-full:EquityAttributableToOwnersOfParentMember7245001M40ANG7IIS4372019-12-31ifrs-full:NoncontrollingInterestsMember7245001M40ANG7IIS4372020-01-012020-12-31ifrs-full:NoncontrollingInterestsMember7245001M40ANG7IIS4372020-12-31ifrs-full:NoncontrollingInterestsMember7245001M40ANG7IIS4372021-01-012021-12-31ifrs-full:IssuedCapitalMember7245001M40ANG7IIS4372021-12-31ifrs-full:IssuedCapitalMember7245001M40ANG7IIS4372021-01-012021-12-31ifrs-full:SharePremiumMember7245001M40ANG7IIS4372021-12-31ifrs-full:SharePremiumMember7245001M40ANG7IIS4372021-01-012021-12-31ifrs-full:OtherReservesMember7245001M40ANG7IIS4372021-12-31ifrs-full:OtherReservesMember7245001M40ANG7IIS4372021-01-012021-12-31AMS:RetainedEarningsExcludingProfitLossForReportingPeriodMember7245001M40ANG7IIS4372021-12-31AMS:RetainedEarningsExcludingProfitLossForReportingPeriodMember7245001M40ANG7IIS4372021-01-012021-12-31AMS:RetainedEarningsProfitLossForReportingPeriodMember7245001M40ANG7IIS4372021-12-31AMS:RetainedEarningsProfitLossForReportingPeriodMember7245001M40ANG7IIS4372021-01-012021-12-31ifrs-full:EquityAttributableToOwnersOfParentMember7245001M40ANG7IIS4372021-12-31ifrs-full:EquityAttributableToOwnersOfParentMember7245001M40ANG7IIS4372021-01-012021-12-31ifrs-full:NoncontrollingInterestsMember7245001M40ANG7IIS4372021-12-31ifrs-full:NoncontrollingInterestsMemberiso4217:EURiso4217:EURxbrli:shares
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